Avicanna Announces Q1 2024 and First Positive Adjusted EBITDA

Avicanna Inc., a biopharmaceutical company specializing in cannabinoid-based products, has reported its Q1 2024 results, marking its most successful financial quarter to date. This achievement includes becoming EBITDA positive for the first time. The company's success is attributed to record revenues and improved operational efficiencies.

CEO Aras Azadian expressed satisfaction with the company's performance, highlighting that the proprietary nature of their products and services in Canada contributed to record gross margins. The company also made significant international strides, obtaining its first pharmaceutical marketing authorization in Colombia and securing agreements with two multinational pharmaceutical companies.

Key financial highlights for Q1 2024 include an adjusted EBITDA of approximately $17,000, a substantial improvement from a loss of $1.28 million in Q1 2023. The company also reported record quarterly revenue of $6.45 million, a 451% increase compared to Q1 2023, with a 6.5% rise from Q4 2023. Operational expenses rose by 32% year-over-year. Consolidated gross margins before fair value changes in bio-assets improved to 51% during Q1 2024, up from 42% in Q1 2023. Cash provided from operations was $122,000, a significant turnaround from a cash usage of $2.05 million in Q1 2023.

CFO Phil Cardella attributed the positive EBITDA to consistent revenue growth, primarily from the medical cannabis business unit and the stabilization of the MyMedi.ca platform, combined with operational efficiencies in Canada.

In Canada, Avicanna expanded access to its medical cannabis products by introducing two new SKUs and six new medical listings on MyMedi.ca and Spectrum Therapeutics during Q1 2024. The company sold 57,911 units across 135 commercial listings on six provincial channels and seven medical platforms. These commercial results, particularly on MyMedi.ca, contributed to improved margins.

Internationally, Avicanna achieved a milestone with the approval of Trunerox™ in Colombia by INVIMA for treating severe seizures associated with Lennox-Gastaut Syndrome and Dravet Syndrome. This approval enables Avicanna to manufacture and commercialize Trunerox™ in Colombia. The proprietary oral formulation contains 10% cannabidiol (CBD) and is produced under Good Manufacturing Practices.

Avicanna also entered into a supply and licensing agreement with a multinational pharmaceutical company for two proprietary topical products, RHO Phyto™ Ultra CBD Topical Cream and CBG Transdermal Gel. These products are set to launch in six European countries in 2024.

Additionally, Avicanna announced a new research collaboration with a European-based pharmaceutical company. The collaboration aims to assess Avicanna’s SEDDS technology in combination with the partner's drug delivery formats to enhance the bioavailability of cannabinoids.

Avicanna Inc. is an international biopharmaceutical company focused on advancing and commercializing cannabinoid-based products for medical and pharmaceutical markets. Its scientific platform supports the development of over thirty proprietary products. Avicanna's business pillars include medical cannabis formulations, the MyMedi.ca care platform, pharmaceutical products like Trunerox™, and active pharmaceutical ingredients supplied by Santa Marta Golden Hemp SAS.

The company continues to expand its product offerings and international presence, aiming to address unmet medical needs in dermatology, chronic pain, and neurological disorders.