Avicanna's Shares Jump On $3.2M Export Deal With Brazilian Pharmaceutical Company

Avicanna Inc. AVCN AVCNF finalized a supply agreement with a Brazilian pharmaceutical company via its majority-owned Colombian subsidiary, Santa Marta Golden Hemp S.A.S. Under the three-year master supply agreement, the company will supply industrial volumes of THC and CBD-rich full spectrum psychoactive cannabis resin.

First orders for the pilot batches under the deal are projected to start in 2021. The first orders for commercial batches in 2022 are projected to yield around CA$4 million ($3.2 million) in revenue for Avicanna, according to the Brazilian pharmaceutical company.

“This first of its kind partnership for Avicanna further validates the company’s competitive advantages and capability of producing sustainable, standardized and economical source cannabinoid API for our product pipeline in addition to supplying our global pharmaceutical partners,” Aras Azadian, CEO of Avicanna, stated.

The cannabis extracts will be produced by Santa Marta Golden Hemp S.A.S. under the US and European Pharmacopeia standards, which means they can be used as active pharmaceutical ingredients. Santa Marta Golden Hemp S.A.S portfolio of products includes CBD, THC, CBG and standardized seeds under its brand Aureus.

They will be used in the manufacturing of various products to be registered and commercialized in Brazil via RDC 327/19, which is in charge of all the regulations for cannabis-derived products operations.

Price Action 

Avicanna’s shares were trading 10.39% higher at 85 cents per share at the time of writing Wednesday morning.

Photo: Courtesy of Andre Taissin on Unsplash