Avicanna Announces Closing of Non-brokered Private Placement

TORONTO, April 18, 2024 (GLOBE NEWSWIRE) -- 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 is pleased to announce that it has closed a non-brokered private placement offering of 5,313,959 ‎‎units of the Company (the “Units”) at a price of $0.40 per Unit for aggregate gross proceeds of approximately of $2,125,000.

“We are very grateful to have the continued confidence of our shareholders and to have completed this financing at a very exciting time for the Company. We are confident that this financing sets us on the path to deliver on our expansion and commercialization plans and to move towards achieving self-sufficiency during this year,” stated Aras Azadian, CEO.

The Company intends 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.

Each Unit is comprised of one common share in the capital of the Company (each, a “Unit Share”) and one-half of one (0.5) common share purchase warrant of the Company (each whole warrant, a “Warrant”); and, each Warrant shall entitle the holder thereof to acquire one (1) common share in the capital of the Company at an exercise price of $0.55 per share, subject to adjustment in certain events, until April 18, 2027. The Company has paid an aggregate total of $31,499.98 in cash finders' fees and issued an aggregate total of 78,750 finder's warrants (each a “Finder Warrant”) in connection with the Offering to certain finders in connection with subscriptions for Units made by purchasers introduced to the Company by such finders. Each Finder Warrant entitles the holder thereof to acquire one common share in the capital of the Company at an exercise price of $0.55 per share, subject to adjustment in certain events, until April 18, 2027.

The Unit Shares and Warrants, and any securities 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.

About Avicanna Inc. 

Avicanna is a commercial-stage international biopharmaceutical company focused on the advancement and commercialization of cannabinoid-based products and formulations for the global medical and pharmaceutical market segments. Avicanna has an established scientific platform including R&D and clinical development leading to the commercialization of more than thirty proprietary, evidence-based finished products and supporting four commercial stage business pillars.