Avicanna Reports Q1 2024 and First Positive Adjusted EBIDTA Quarter

Best Quarterly Results in Company’s History from a Financial Perspective.
EBITDA Improvements Driven by Record Revenues, Record Margins and Operational Efficiencies.
Marketing Authorization of Trunerox in Colombia by INVIMA for Patients with LGS and DS in Colombia.

TORONTO, May 14, 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 the results of Q1 2024.

“We are pleased to report our first EBITDA positive quarter and a critical milestone in our path to self sufficiency. During our best quarter we also delivered record gross margins credited to the proprietary nature of products and services we offer in Canada and made advancements in our international pillars with our first pharmaceutical marketing authorization in Colombia and into two new agreements with two different multinational pharmaceutical companies,” stated Aras Azadian, CEO.

Financial highlights:

• Adjusted EBITDA of approximately $17k for Q1 2024, marking the first adjusted EBITDA positive quarter in the Company’s history and a significant year-over-year improvement compared to EBITDA loss of $1.28 million in Q1 2023.
• Record quarterly revenue of $6.45 million representing a year-over-year increase of 451% compared to Q1 2023 and representing an increase 6.5% from Q4 2023. Revenue growth was achieved with a 32% increase in year-over-year operational expenses. 
• Consolidated gross margins, before fair value changes in bio-assets, of 51% during Q1 2024, representing a 21% improvement compared to 42% during Q1 2023. 
• Cash provided from operations during Q1 2024 was $122k, representing a substantial improvement compared to cash used in operations during Q1 2023 of approximately $2.05 million.

Phil Cardella, CFO added, “Avicanna’s first EBITDA positive quarter is the results of consistent growth in our revenues which are mainly driven by our medical cannabis business unit including the steadying of the MyMedi.ca platform combined with our operational efficiencies and asset light model in Canada.”