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THE UNITED STATES. ANY FAILURE TO
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UNITED STATES SECURITIES LAWS/
TORONTO, ON, Dec. 8, 2020 /CNW/ - Avicanna Inc.
("Avicanna", or the "Company") (TSX:
AVCN) (OTCQX: AVCNF) (FSE: 0NN) is pleased to announce the
closing of its previously announced marketed public offering of
5,966,900 units (the "Units") of the Company at a price of
$0.85 per Unit, for gross proceeds of
$5,071,865 (the "Offering").
Each Unit is comprised of one common share of the Company (each a
"Common Share") and one-half of one common share purchase
warrant of the Company (each full warrant, a "Warrant" and
collectively the "Warrants"). Each Warrant is exercisable
for one Common Share at a price of $1.20 per share at any time for a period of 36
months following closing of the Offering.
The Offering was 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").
Aras Azadian, CEO of Avicanna,
commented: "The completion of our first prospectus offering and
substantial capital raise since our IPO is a confirmation of the
on-going support from our existing and new shareholders during a
difficult time in the market. This also coincides with further cost
reductions and with the launch of our medical products and several
other commercial initiatives across several markets where we intend
to use the use the proceeds of this raise to pave the way to
sustainability and profitability."
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 Company intends to use the net proceeds of the Offering for
product development, working capital and general corporate
purposes.
The securities described in this press release have not been and
will not be registered under the United States Securities Act of
1933, as amended ("U.S. Securities Act") or any state
securities laws. Accordingly, the securities may not be offered or
sold in the United States (as such
term is defined in Regulation S under the U.S. Securities Act) or
to, or for the account or benefit of, a U.S. person (as such
term is defined in Regulation S under the U.S. Securities Act)
except pursuant to transactions exempt from registration under the
U.S. Securities Act and under the securities laws of any applicable
state. 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.
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 satisfaction of regulatory requirements
in various jurisdictions, exercise of the Over-Allotment Option 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.