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TORONTO, Nov. 12, 2020 /CNW/ - Avicanna Inc.
("Avicanna", or the "Company") (TSX:
AVCN) (OTCQX: AVCNF) (FSE: 0NN) is pleased to announce that it
has filed and has been receipted for a preliminary short form
prospectus with the securities commissions in Alberta, British
Columbia, Manitoba,
Ontario and Saskatchewan (the "Canadian
Jurisdictions") in connection with a marketed public offering
(the "Offering") of units (the "Units") of the
Company.
Each Unit will consist of one common share of the Company (each
a "Common Share") and one-half of one common share purchase
warrant (each full warrant, a "Warrant" and collectively the
"Warrants"). Each Warrant will be exercisable for one Common
Share (each a "Warrant Share") at any time for a period of
24 months following closing of the Offering. Final pricing of the
Units, the Warrant exercise price and the determination of the
number of Units to be sold pursuant to the Offering will be
determined in the context of the market prior to the filing of the
final short form prospectus in respect of the Offering. The
Offering will be conducted on a "best efforts" basis by a syndicate
of agents led by Echelon Wealth Partners Inc., as lead agent and
sole-bookrunner, and including Beacon Securities Limited and
Canaccord Genuity Corp. (collectively, the "Agents").
The Company has granted the Agents an option, exercisable in
whole or in part, at the sole discretion of the Agents, at any time
for a period of 30 days from and including the closing of the
Offering, to purchase from the Company up to an additional 15% of
the Units sold under the Offering, on the same terms and conditions
of the Offering to cover over-allotments, if any, and for market
stabilization purposes (the "Over-Allotment
Option"). The Over-Allotment Option may be exercised by
the Agents to purchase additional Units, Common Shares, Warrants or
any combination thereof.
The Offering will be completed (i) by way of a short form
prospectus to be filed in the Canadian Jurisdictions (ii) on a
private placement basis to "accredited investors" meeting one or
more of the criteria in Rule 501(a) of Regulation D
("Regulation D") under the United States Securities Act
of 1933, as amended (the "U.S. Securities Act") pursuant
to Rule 506(b) of Regulation D and/or Section 4(a)(2) thereof
and similar exemptions under applicable state securities laws,
Qualified Institutional Buyers in the
United States pursuant to the registration exemptions
provided by Rule 144A of the US Securities Act, and (iii) outside
Canada and the United States on a basis which does not
require the qualification or registration of any of the Company's
securities under domestic or foreign securities laws.
The Offering is expected to close on or about December 3, 2020, or such other date as the
Company and the Agents may agree. Closing of the Offering is
subject to customary closing conditions, including, but not limited
to, the execution of an agency agreement and the receipt of all
necessary regulatory approvals, including the approval of the
securities regulatory authorities and the Toronto Stock
Exchange.
The Company intends to use the net proceeds of the Offering for
product development, working capital and general corporate
purposes.
The preliminary short form prospectus is available on SEDAR at
www.sedar.com.
This news release does not constitute an offer to sell or a
solicitation of an offer to sell any of securities in the United States. The securities have not
been and will not be registered under the U.S. Securities Act or
any state securities laws and may not be offered or sold within
the United States or to U.S.
Persons unless registered under the U.S. Securities Act and
applicable state securities laws or an exemption from such
registration is available.
About Avicanna Inc.
Avicanna is a diversified and vertically integrated Canadian
biopharmaceutical company focused on the research, development, and
commercialization of plant-derived cannabinoid-based products for
the global consumer, medical, and pharmaceutical market
segments.
Avicanna is an established leader in cannabinoid research and
development, which it primarily conducts at its R&D
headquarters in the Johnson & Johnson Innovation Centre, 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 have developed and
commercialized several industry leading product lines,
including:
- Pura H&W™: an advanced and clinically tested line of CBD
consumer derma-cosmetic products; and,
- RHO Phyto™: an advanced line of medical cannabis products
containing varying ratios of CBD and THC currently available
nation-wide across Canada in
partnership with Medical Cannabis by Shoppers™, a subsidiary of
Shoppers Drug Mart. RHO Phyto is the first strictly medical
formulary of advanced "Cannabis 2.0" products, containing oils,
sprays, capsules, creams, and gels, all 2 developed with scientific
rigour, manufactured under GMP standards and supported by
pre-clinical data.
With ongoing clinical trials on its derma-cosmetic (Pura
H&W), medical cannabis (RHO Phyto) and a pipeline of
pharmaceutical products, Avicanna's dedication to researching the
important role that cannabinoids play in an increasingly wider
scope of products has been at the core of the Company's vision
since its inception. Furthermore, 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 subsidiary company.
Avicanna manages its own supply chain including cultivation and
extraction through its two majority-owned subsidiaries, Sativa
Nativa S.A.S. and Santa Marta Golden Hemp S.A.S., both located in
Santa Marta, Colombia. Through these sustainable,
economical, and industrial scale subsidiaries, Avicanna cultivates,
processes, and commercializes a range of cannabis and hemp
cultivars dominant in 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 along with feminized seeds for
global export. In June 2020, Avicanna
made history with a shipment of hemp seeds to the United States of America by completing the
first ever export of hemp seeds from Colombia.
Stay Connected
For more information about Avicanna, visit www.avicanna.com,
call 1-647-243-5283, or contact Setu
Purohit, President by email at info@avicanna.com.
Cautionary Note Regarding Forward-Looking Information and
Statements
This news 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, "may", "would", "could", "will",
"likely", "expect", "anticipate", "believe, "intend", "plan",
"forecast", "project", "estimate", "outlook" and other similar
expressions. The forward-looking information contained in this news
release is based on certain key expectations and assumptions made
by the Company, including expectations and assumptions regarding
the terms, timing and potential completion of the Offering,
satisfaction of regulatory requirements in various jurisdictions
and the use of proceeds from the Offering.
Forward-looking information is not a guarantee of future
performance and is based upon a number of estimates and assumptions
of management in light of management's experience and
perception of trends, current conditions and expected developments,
as well as other factors relevant in the circumstances, including
assumptions in respect of 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 such forward-looking
information is based are reasonable, undue reliance should not be
placed on the forward-looking information because the Company can
give no assurance that they 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. Such risks and uncertainties
include, but are not limited to current and future market
conditions, including the market price of the common shares of the
Company, the delay or failure to receive regulatory approvals, and
the risk factors set out in the Company's annual information form
dated April 15, 2020, filed with the
Canadian securities regulators and available under the Company's
profile on SEDAR at www.sedar.com.
SOURCE Avicanna Inc.