Avicanna's CEO Touts Q3 As 'Most Successful Quarter To Date' As It Posts Record Results, Expands Into 12th International Market

CBD-focused biopharmaceutical company Avicanna Inc. AVCN AVCNF (FSE:0NN) reported its third-quarter financial results Friday, revealing a gross revenue increase of 24% sequentially and 260% compared to the first three months of 2021 to roughly CA$1,007,033 ($987,967).

The reported revenue represents cannabis-only sales, with the majority being new or recurring orders from proprietary finished products in the Canadian medical and adult-use channels, the Toronto-based company said.

Loss per share for the nine months ended September 31, 2021, was negative CA$0.29 per share, compared with negative CA$0.82 per share for the nine months ending September 30, 2020, representing an improvement of 64% from the same period in the previous year.

In addition, Avicanna also reported delivering 27,041 units of its cannabis 2.0 products branded as RHO Phyto and Pura Earth, compared to 16,767 units in the second and 8,855 units in the first quarter of 2021, up by 61% sequentially and 205% over the first three months of 2021.

As of September 31, the company had a total of 25 product listings across medical and adult-use channels in Canada, compared to 17 in the second quarter and 6 in the first quarter of 2021, representing a 96% sequential growth.

Strategic Highlights Post Q3

• Debut in new global markets and expansion of Aureus-branded products with high CBD and THC cannabis extracts exports to Austria, Peru and Brazil. The Aureus Santa Marta brand's cannabinoids and standardized genetics offerings were exported to 11 countries.
• Multi-year supply agreement with a Brazilian pharmaceutical company to supply industrial volumes of high THC and high CBD full-spectrum cannabis extracts.
• Filing of a US Patent Application for a novel cannabinoid formulation for reducing or eliminating seizures and sudden death in epilepsy.
• Closing of a non-brokered private placement raising CA$3.9 million ($3.16 million). Under the offering, the company issued an aggregate of 4.59 million units at a price of CA$0.85 per unit.
• The Canadian launch of Viola-branded products in partnership with Medical Cannabis by Shoppers.
• Earlier this month, the company announced that its Colombian subsidiary, Santa Marta Golden Hemp S.A.S., has met global conformity standards of Good Agricultural and Collection Practices for its 360,000 square foot cultivation project in Santa Marta.

Aras Azadian, the company’s CEO, said he is “proud to present the meaningful progress we have made across all divisions in what is evidently our most successful quarter to date.”

“We advanced our global business model by opening our 12th market and, more importantly, have successfully connected our proprietary formulations with our low-cost API and manufacturing infrastructure in Colombia to deliver advanced products to the global marketplace,” Azadian said.

Photo: Courtesy of Avicanna Inc.