Avicanna Secures Nearly $2M In Private Placement Deal Amid US Patent Win For Cannabinoid Topical Formula

Avicanna Inc. AVCN AVCNF 0NN announced on Thursday that it has closed a non-brokered private placement offering of its 6,620,692 ‎‎units at $0.30 per unit for aggregate gross proceeds of $1,986,207.

The news comes on the heels of the company's announcement that the United States Patent and Trademark Office (USPTO) has issued U.S. Patent No. US 20230025693A1, covering the company's deep penetrating topical cannabinoid composition and methods for treating musculoskeletal inflammation and pain.

The Details

Under the offering, each unit is comprised of one common share in the capital of the company and one-half of one common share purchase warrant.

Each warrant entitles the holder to acquire one common share in the capital of the company at an exercise price of $0.40 per share, subject to adjustment in certain events, until August 28, 2027.

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The unit shares and warrants, and any securities that are issuable upon conversion or exercise thereof, are subject to a four-month hold period under applicable ‎securities laws in Canada.

The offering is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the Toronto Stock Exchange (TSX).

Read Also: Avicanna Q2 Revenue Improves 85% YoY, Cannabis Company Touts Two Successful Trials On Drug Candidates

Why It Matters

The company plans to use the proceeds from the offering for general working capital purposes, general and administrative expenses, expenditures related to production and manufacturing, and research and clinical development, and repayment of debt.

In the meantime, the Canadian biopharmaceutical company recently announced the successful export of its Aureus-branded cannabigerol (CBG) products to Denmark via its Santa Marta Golden Hemp SAS subsidiary, marking the 19th international market for Aureus-branded products and the 22nd market overall for Avicanna’s product range.

Last month Avicanna completed the commercial export of Aureus-branded purified cannabigerol (CBG) products into Singapore through its subsidiary.

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