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TORONTO, August 19, 2021 (GLOBE NEWSWIRE) – Avicanna Inc. (the “Society” Where “Avicanna“) (TSX: AVCN) is pleased to announce the closing of the previously announced secured term debt financing (the”Term loan”) In a principal amount of $ 2,118,000. The term loan is subject to an initial issue discount of approximately 15%, so that $ 1,800,000 has been advanced by the lender thereof (the “200Lender“) to the society. The term loan matures on October 19, 2022.
The terms of the term loan are in accordance with those previously disclosed in the Company’s press release dated August 3, 2021 (the “”Prior release“). As contemplated in the prior press release, in connection with the term loan, the Company intends to issue common share subscription warrants (the “”Mandates“) to the lender following a complete revocation of the cease trade order (the”FFCTO“) Issued by the Ontario Securities Commission (the”CSO“) on June 11, 2021 in respect of the Company and the resumption of trading of the ordinary shares of the Company (the”Ordinary actions“) on the Toronto Stock Exchange (the”TSX“).
As previously announced, the OSC issued an order dated July 30, 2021 partially revoking the FFCTO, which allowed the Company to complete the transactions contemplated by the term loan, including the issuance of the warrants. The FFCTO continues to apply in all other respects.
The warrants to be issued and all common shares issued on their exercise will be subject to a legal hold period of four months and one day following the issuance of the warrants in accordance with applicable securities laws. Additional resale restrictions may apply under the laws of other jurisdictions.
The term loan and the issuance of warrants are subject to certain conditions, including, but not limited to, receipt of all necessary approvals, including final approval from the TSX.
About Avicanna Inc.
Avicanna is a diversified and vertically integrated Canadian biopharmaceutical company focused on the research, development and commercialization of plant-derived cannabinoid products for the global consumer, medical and pharmaceutical market segments.
Avicanna is an established leader in cannabinoid research and development, which it conducts primarily at its R&D headquarters at the Johnson & Johnson Innovation Center, JLABS @ Toronto, Canada and in collaboration with leading Canadian academic and medical institutions. In addition to its developing pharmaceutical pipeline, Avicanna’s team of experts has developed and marketed several cutting-edge product lines, including:
- RHO Phyto ™: an advanced line of medical cannabis products containing varying proportions of CBD and THC currently available nationally in Canada through medical channels in partnership with Medical Cannabis by Shoppers ™, a subsidiary of Shoppers Drug Mart, and in adult usage channels through provincial retailers. RHO Phyto is the first medical form of advanced “Cannabis 2.0” products, containing oils, sprays, capsules, creams and gels, all developed with scientific rigor, manufactured to GMP standards and supported by preclinical data; and,
- Pura H & W ™: An advanced and clinically tested line of functional CBD dermo-cosmetic products for consumers currently available nationally in Canada through medical channels in partnership with Medical Cannabis by Shoppers ™, a subsidiary of Shoppers Drug Mart, in adult use channels through provincial retailers in Canada and nationally across Colombia.
With ongoing clinical studies on its dermo-cosmetic (Pura H&W), medical cannabis (RHO Phyto) and a pharmaceutical pipeline, Avicanna’s commitment to research the important role cannabinoids play in a range of products. increasingly broad has been at the heart of the company’s vision since its inception. Additionally, Avicanna’s commitment to education is demonstrated through its annual medical symposium, the Avicanna Academy educational platform, and the My Cannabis Clinic patient program through its affiliate.
Avicanna manages its own supply chain, including cultivation and extraction, through its two majority-owned subsidiaries, Sativa Nativa SAS and Santa Marta Golden Hemp SAS, both located in Santa Marta, Colombia. Through these sustainable, economical and industrial subsidiaries, Avicanna grows, processes and markets a range of cannabis and hemp cultivars dominating CBD, CBG, THC and other cannabinoids for use as active pharmaceutical ingredients. Avicanna’s Avesta Genetica program specializes in the development and optimization of rare cultivars for commercial production as well as feminized seeds for global export. In June 2020, Avicanna made history with a shipment of hemp seeds to the United States of America by making the very first export of hemp seeds from Colombia.
SOURCE Avicanna Inc.
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For more information on Avicanna, visit www.avicanna.com, call 1-647-243-5283 or contact Setu Purohit, President, by email at [email protected]
The company posts updates via videos from the company’s official YouTube channel https://www.youtube.com/channel/UCFXPBGdKSxOUOf_VZoSFSUA.
Caution regarding forward-looking information and statements
This press release contains “forward-looking information” within the meaning of applicable securities laws. Forward-looking information contained in this press release may be identified by the use of words such as “could”, “would”, “could”, “,” intention “,” plan “,” forecast “,” project “. “,” Estimate “,” outlook “and other similar expressions, and includes statements regarding the use of the proceeds of the term loan, the intention of the Company to obtain a full revocation of the FFCTO, the reinstatement of trading on the TSX and the ability to obtain necessary approvals in connection with the term loan and the issuance of warrants. Forward-looking information is not a guarantee of future performance and is based on a number of management’s estimates and assumptions in light of management’s experience and perception of trends, current conditions and trends. expected developments, as well as other factors relevant in the circumstances, including assumptions regarding current and future market conditions, the current and future regulatory environment; and the availability of licenses, approvals and permits. Although the Company believes that the expectations and assumptions on which this forward-looking information is based are reasonable, one should not place undue reliance on forward-looking information as the Company cannot guarantee that it 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. These risks and uncertainties include, without limitation, current and future market conditions, including the price of the Company’s common shares, and the risk factors set out in the Company’s annual information form dated April 15, 2020 and the final short version prospectus dated November 27, 2020, filed with the Canadian securities regulatory authorities and available under the Company’s profile on SEDAR at www.sedar.com. The statements contained in this press release are made as of the date of this press release. The Company disclaims any intention 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.