Canada NewsWire
TORONTO, May 25, 2020
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TORONTO, May 25, 2020 /CNW/ - Avicanna Inc. ("Avicanna" or the "Company) (TSX: AVCN) (OTCQX: AVCNF) (FSE: 0NN) a biopharmaceutical company focused on the development, manufacturing and commercialization of plant-derived cannabinoid-based products announces results for the first quarter ended March 31, 2020.
Aras Azadian, Chief Executive Officer of Avicanna, commented "Our management team demonstrated incredible execution ability by first ensuring the safety of our team and in parallel reducing costs, all while continuing to advance our commercial activities. We are also pleased to demonstrate the maturity of the company's global vertical integrated commercial infrastructure which is exhibited through significantly reduced capex and increased efficiencies in our global operations."
First Quarter Operational Highlights
Financial Highlights
Recent Developments
Summary of Operations ($CDN)
Three Months Ended | |||
March 31, 2020 | March 31, 2019 | ||
$ | $ | ||
Revenues | 260,903 | 24,023 | |
Cost of Sales | 100,807 | - | |
Fair value changes in biological assets | 1,887,452 | - | |
General and administrative | 3,185,943 | 2,687,206 | |
Share-based compensation | 338,193 | 1,044,639 | |
Depreciation and amortization | 509,143 | 56,295 | |
Total Expenses | 4,033,278 | 3,788,140 | |
Other income (loss) | (123,806) | (121,359) | |
Net loss before taxes | (2,109,536) | (3,885,476) | |
Future income tax recovery | - | - | |
Net loss after taxes | (2,109,536) | (3,885,476) | |
Weighted average number of Common Shares outstanding – basic and diluted | 22,970,463 | 15,885,863 | |
Loss per share – basic and diluted | (0.12) | (0.25) |
Summary of Balance Sheet ($CDN)
As at March 31, 2020 | As at December 31, 2019 | ||
Assets | $ | $ | |
Cash | 76,568 | 441,757 | |
Amounts receivable | 670,497 | 1,202,924 | |
Prepaid assets | 1,129,470 | 704,632 | |
Biological assets | 2,110,703 | 117,367 | |
Inventory | 1,774,354 | 1,484,371 | |
Right to use asset | 490,646 | 539,710 | |
Property and equipment | 20,938,344 | 22,622,322 | |
Intangible assets | 10,864,475 | 11,063,900 | |
Derivative asset | 3,780,000 | 3,780,000 | |
Investments | 72 | 72 | |
Goodwill | 3,207,227 | 3,207,227 | |
Total Assets | 45,042,357 | 45,164,282 | |
Liabilities and Equity | |||
Amounts payable | 5,271,444 | 5,177,634 | |
Due to related party | 3,428,114 | 3,319,116 | |
Convertible debentures | 728,946 | 715,626 | |
Derivative liability | - | 23,434 | |
Lease liability | 510,473 | 555,339 | |
Term loan | - | - | |
Deferred revenue | 3,315,430 | 3,323,518 | |
Deferred tax liability | 2,173,834 | 2,173,834 | |
Total Liabilities | 15,428,241 | 15,288,501 | |
Shareholder's equity | 29,614,116 | 29,875,781 | |
Total Liabilities and Shareholder's Equity | 45,042,357 | 45,164,282 |
About Avicanna
Avicanna is an Ontario, Canada based corporation focused on the development, manufacturing, and commercialization of plant-derived cannabinoid-based products through its two main business segments, cultivation and research and development.
Avicanna's two majority-owned subsidiaries, Sativa Nativa S.A.S. and Santa Marta Golden Hemp S.A.S., both located in Santa Marta, Colombia are the base for Avicanna's cultivation activities. These two companies are licensed to cultivate and process cannabis for the production of cannabis extracts and purified cannabinoids including cannabidiol (CBD) and tetrahydrocannabinol (THC).
Avicanna's research and development business is primarily conducted out of Canada at its headquarters in the Johnson & Johnson Innovation Centre, JLABS @ Toronto. Avicanna's scientific team develops products, and Avicanna has also engaged the services of researchers at the Leslie Dan Faculty of Pharmacy at the University of Toronto for the purpose of optimizing and improving upon its products.
Avicanna's research and development and cultivation activities are focused on the development of its key products, including plant-derived cannabinoid pharmaceuticals, phyto-therapeutics, derma-cosmetics, and Extracts (defined as plant-derived cannabinoid extracts and purified cannabinoids, including distillates and isolates), with a goal of eventually having these products manufactured and distributed through various markets.
Stay Connected
For more information about Avicanna, visit www.avicanna.com, call 1-647-243-5283, or contact Setu Purohit, President by email [email protected].
Cautionary Note Regarding Forward-Looking Information and Statements
This press release contains certain "forward-looking information" within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute "forward-looking statements" within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Such forward-looking information and forward-looking statements are not representative of historical facts or information or current condition, but instead represent only Avicanna's beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of Avicanna's control. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or may contain statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "will continue", "will occur" or "will be achieved". The forward-looking information and forward-looking statements contained herein may include, but is not limited to, the minority partners of SMGH and SN continuing to make capital contributions on an ongoing basis, the Company's ability to continue not carrying full cash burden of operations or capital expenditures, the Company's revenues to continue to increase through fiscal 2020, the Company's ability to export, and Cannvalate's ability to import, cannabis-based products for distribution in Australia, the Company's ability to keep the Cannabis Research License issued by Health Canada in good standing, and the Company's continuing to export seeds from Colombia.
By identifying such information and statements in this manner, Avicanna is alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Avicanna to be materially different from those expressed or implied by such information and statements. In addition, in connection with the forward-looking information and forward-looking statements contained in this press release, Avicanna has made certain assumptions.
Among others, the key factors that could cause actual results to differ materially from those projected in the forward-looking information and statements are the following: decreases in the prevailing prices for cannabis and cannabis products in the markets in which the Company operates; adverse changes in applicable laws; adverse changes in the application or enforcement of current laws, including those related to taxation; increasing costs of compliance with extensive government regulation; changes in general economic, business and political conditions, including changes in the financial markets and in particular in the ability of the Company to raise debt and equity capital in the amounts and at the costs that it expects; risks related to licensing, including the ability to obtain the requisite licenses or renew existing licenses for the Company's proposed operations; dependence upon third party service providers, skilled labor and other key inputs; risks inherent in the agricultural and retail business; intellectual property risks; risks related to litigation; dependence upon senior management; and the other risks disclosed in the Company's long form final prospectus dated July 8, 2019 and the Company's annual information form date April 15, 2020. Should one or more of these risks, uncertainties or other factors materialize, or should assumptions underlying the forward-looking information or statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected.
Although Avicanna believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements. Key assumptions used herein are that the Company will not need to expand current infrastructure to meet its commercial milestones, the Company will be able to increase efficiencies in its operations, the Company will be able to continue to earn revenue, the Company will not encounter any delays in the launch of its phyto-therapeutic and derma-cosmetic product lines in Australia and Canada, the Company will not encounter any delays with the CTA for Epidermolysis Bullosa, the Company's CBG seeds are considered premium within the global seed market, and the Company will not be subject to any unforeseen delays or regulatory or contractual actions that will prevent it from completing research on cannabinoids in the MaRS Discovery District.
SOURCE Avicanna Inc.
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