Q2-2023 highlights:
- Financial highlights: Q2 2023 revenue of
$3.3 million , an increase of 183% over Q1 2023 and 200% over the comparable quarter which was mainly attributed to the takeover of certain operational responsibilities and sales-revenue rights related to acquisition of the Medical Cannabis by Shoppers business. General and administrative expenses increased by 6% over the same period resulting in a 26% improvement in adjusted EBITDA over the comparable quarter of the prior year and an improvement of 18% over the first quarter of 2023. - Canadian commercial advancements: 26 commercial SKUs and 118 total commercial listings that resulted in a 120% growth in listings and 70% growth in finished goods sold compared to the comparable quarter 2022, with43% gross margins in its North American operations compared to 20% gross margins in the comparable quarter 2022.
- Medical Cannabis By Shoppers: On
May 29, 2023 , the Company announced that the definitive Asset Purchase Agreement withShoppers Drug Mart Inc. forAvicanna to acquire the Medical Cannabis By Shoppers business was fully executed. OnMay 4, 2023 ,Avicanna announced the execution of the definitive Master Service Agreement with Northern Green Canada (“NGC”). NGC is a Canadian licensed producer that is tasked with providing logistics and fulfilment services for Avicanna’s cannabis care platform, MyMedi.ca. OnMay 29, 2023 , NGC andAvicanna successfully acquired the inventory for Medical Cannabis by Shoppers and transitioned inventory and fulfilment services to NGC. - Proprietary SEDDS Capsules: On
June 25, 2023 ,Avicanna announced the expansion of the Strategic Manufacturing Agreement (“SMA”) with MediPharm Labs Corp. (“MediPharm”), adding the manufacturing and commercialization of Company’s proprietary SEDDS capsules to the SMA. Avicanna’s proprietary SEDDS capsules are to be manufactured by MediPharm to GPP and GMP standards to meet product channel requirements in Canadian and international markets. The capsules are expected to be launched under the RHO Phyto™ brand in Canadian medical cannabis channels during the second half of 2023. - New Medical Cannabis Education and Training Campaign and sponsorship of
Canadian Consortium for the Investigation of Cannabinoids ("CCIC"). Through a Sponsorship Agreement, CCIC’s Canadian Cannabis Syllabus (“CCS”) will be made available to the medical community. The CCS provides foundational information for healthcare professionals interested in learning more about cannabis and cannabinoid products in clinical practice. - Research Collaboration with
Langara College and NSERC Grant. Through a Research Collaboration led by Dr.Jessica Kalra and Dr. Kalra’s research team, research will be conducted focusing on characterization of Avicanna’s proprietary products and drug pipeline formulations through in vitro and in vivo models. This Research Collaboration was awarded a two-year grant by theNatural Sciences and Engineering Research Council of Canada .
Other highlights subsequent to
- Launch of MyMedi.ca. MyMedi.ca is Avicanna’s medical cannabis care platform to serve the needs of medical cannabis patients. MyMedi.ca features diverse and scientifically curated products from leading Canadian licensed producers in addition to pharmacist-led patient support programs and educational resources to support the incorporation of medical cannabis into health care regimens. MyMedi.ca also provides specialty services to distinct patient groups such as veterans, and collaborating with public and private providers for adjudication and reimbursement. The platform is now available nationwide in
Canada to tens of thousands of patients who have obtained medical cannabis authorization from healthcare providers with an initial product portfolio including 35 brands and over 200 SKUs selected from various Canadian licensed producers - Closed acquisition of Medical Cannabis by
Shoppers Drug Mart business.Avicanna acquired specific assets of the Medical Cannabis byShoppers Drug Mart business, including inventory and equipment, for approximately$2.6M and will payShoppers Drug Mart an earnout, based on net revenues, for a period of two years. First launched inOntario inJanuary 2019 , Medical Cannabis by Shoppers provided patients access to medical cannabis products from more than 30 licensed cannabis brands. Over the past four years, the legacy Medical Cannabis by Shoppers business supported tens of thousands of patients and worked with patient groups to facilitate access to medical cannabis.
About
- Medical Cannabis & Wellness Products (RHO Phyto™): The formulary offers a diverse range of proprietary formulations including oral, sublingual, topical, and transdermal deliveries with varying ratios of cannabinoids and is supported with ongoing patient, and medical community education. RHO Phyto has been established as a leading medical brand in
Canada and is currently available nationwide to patients across several medical channels and continues to expand into new international markets. - Pharmaceutical Preparations and Pipeline: Leveraging Avicanna’s scientific platform, vertical integration, and real-world evidence,
Avicanna has developed an extensive a pipeline of patent-pending drug candidates that are indication-specific and in various stages of clinical development and commercialization. These cannabinoid-based drug candidates look to address unmet medical needs in the areas of dermatology, chronic pain, and various neurological disorders. Avicanna’s first pharmaceutical preparation (Trunerox™) is in the drug registration stage inSouth America . - MyMedi.ca Medical Cannabis Care Portal: MyMedi.ca is Avicanna’s medical cannabis care platform that is formed with the aim to better serve medical cannabis patients’ needs and enhance the patient journey. MyMedi.ca features diverse and scientifically curated products from leading Canadian licensed producers in addition to pharmacist led patient support programs and educational resources to facilitate the incorporation of medical cannabis into health care regimens. MyMedi.ca also provides specialty services to distinct patient groups such as veterans and collaborating with public and private providers for adjudication and reimbursement.
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