Acquisition of Medical Cannabis by Shoppers assets leading to the launch of MyMedi.ca.
Record revenue of $6.27M, representing an increase of 90% over Q2, and 713% year-over-year.
Improvements in performance including 46% consolidated gross margins and adjusted EBITDA of ($400k)
TORONTO, NOVEMBER 14, 2023 (GLOBE NEWSWIRE) – Avicanna Inc. (“Avicanna” or the “Company) (TSX: AVCN) (OTCQX: AVCNF) (FSE: 0NN) a biopharmaceutical company focused on the commercialization of proprietary cannabinoid-based products and medical cannabis care platform is pleased to announce the results of Q3 2023.
“We had the boldness to take on the challenge of acquiring the Medical Cannabis by Shoppers business and executed on integrating it into the newly developed MyMedi.ca to with a goal of being able to offer a comprehensive medical cannabis care platform and improve access for Canadian patients. We have remained dedicated and focused on evidence based medical application of cannabinoids and during this quarter we have solidified our business model and our capability to scale the business” stated Aras Azadian, CEO of Avicanna Inc.
Financial highlights:
- Record revenue of $6.27M, representing an increase of 90% over the previous quarter and 713% over the same period last year.
- A 9-month revenue of $10.7M, representing a major milestone in the Company’s history a 269% growth from the same period last year.
- Scalability of the business model was demonstrated with a comparable increase of 23% in SG&A for the nine-month period.
- Best three-month financial performance in the Company’s history with an adjusted EBITDA loss of $473,000 or loss of $0.01 per share during the third quarter.
- Improved consolidated gross margins of 47% through developments in operational efficiencies.
Phil Cardella, CFO added “We are extremely proud to have turned the corner and accomplished the major milestone of an eight-digit revenue figure for the first time in the Company’s history. The substantial increase in high margin revenue, coupled with improvements in our working capital, and balance sheet are a testament to the Company’s innovation and commercial platforms delivering a great portfolio of products and services. We look forward to our own going efforts towards sustainable growth, profitability, and self-reliance.”
Launch of MyMedi.ca medical cannabis care platform: Launch of MyMedi.ca saw over 96% of active patients from Medical Cannabis by Shoppers business transitioned to the Company’s new medical cannabis care platform and has since increased its new medical patient base by approximately 10%. The Company developed infrastructure to offer insurance reimbursement services for patients through several private insurance providers and public institutions including eight provincial worker safety boards which combined account for over 60% of the platform’s revenue.
The integration of MyMedi.ca’s platform and patient support programs, improved access and enhanced education have resulted an 40% increase of the Company’s product sales on the platform when compared to the previous quarter.
Canadian commercial advancements: The launch of new proprietary formulations totalling 27 commercially active SKUs in Canada across 131 listings in medical and adult use channel. Access to the Company’s proprietary medical products improved for patients with availability on new medical platforms such as Canna Farms and Spectrum Therapeutics.
About Avicanna Inc.
Avicanna is a commercial-stage international biopharmaceutical company focused on the advancement and commercialization of evidence-based cannabinoid-based products for the global medical and pharmaceutical market segments. Avicanna has an established scientific platform including R&D and clinical development that has led to the commercialization of more than thirty products across various market segments:
- Medical Cannabis & Wellness Products (RHO Phyto™):The formulary offers a diverse range of proprietary formulations including oral, sublingual, topical, and transdermal deliveries with varying ratios of cannabinoids and is supported with ongoing patient, and medical community education. RHO Phyto has been established as a leading medical brand in Canada and is currently available nationwide to patients across several medical channels and continues to expand into new international markets.
- Pharmaceutical Preparations and Pipeline: Leveraging Avicanna’s scientific platform, vertical integration, and real-world evidence, Avicanna has developed an extensive a pipeline of patent-pending drug candidates that are indication-specific and in various stages of clinical development and commercialization. These cannabinoid-based drug candidates look to address unmet medical needs in the areas of dermatology, chronic pain, and various neurological disorders. Avicanna’s first pharmaceutical preparation (Trunerox™) is in the drug registration stage in South America.
- Medical Cannabis Care: MyMedi.ca is Avicanna’s medical cannabis care platform that is formed with the aim to better serve medical cannabis patients’ needs and enhance the patient journey. MyMedi.ca features diverse and scientifically curated products from leading Canadian licensed producers in addition to pharmacist led patient support programs and educational resources to facilitate the incorporation of medical cannabis into health care regimens. MyMedi.ca also provides specialty services to distinct patient groups such as veterans and collaborating with public and private providers for adjudication and reimbursement.
Click to watch Avicanna’s Corporate Video 2022
SOURCE Avicanna Inc.
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This news release contains “forward-looking information” within the meaning of applicable securities laws. Forward-looking information contained in this news release may be identified using words such as, “may”, “would”, “could”, “will”, “likely”, “expect”, “anticipate”, “believe, “intend”, “plan”, “forecast”, “project”, “estimate”, “outlook” and other similar expressions. Although the Company believes that the expectations and assumptions on which such forward looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because the Company can give no assurance that they will prove to be correct. Actual results and developments may differ materially from those contemplated by these statements. Forward-looking information is subject to a variety of risks and uncertainties that could cause actual events or results to differ materially from those projected in the forward-looking information. Such risks and uncertainties include but are not limited to current and future market conditions, including the market price of the common shares of the Company, and the risk factors set out in the Company’s annual information form dated March 31, 2023 filed with the Canadian securities regulators and available under the Company’s profile on SEDAR at www.sedar.com. The statements in this news release are made as of the date of this release. The Company disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.