Avicanna Reports Second Quarter 2019 Financial Results
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TORONTO, Aug. 14, 2019 /CNW/ – Avicanna Inc. (“Avicanna” or the “Company) (TSX: AVCN) a biopharmaceutical company focused on the development, manufacturing and commercialization of plant-derived cannabinoid-based products announces results for the second quarter ended June 30, 2019.
Aras Azadian, Chief Executive Officer of Avicanna, commented “We are pleased to report our second quarter financials, which provide insight into our strong infrastructure and the maturity of our various business units as we near commercialization. Within the last quarter we have validated our cultivation projects with commercial crops, extraction and preparation of active pharmaceutical ingredients, completion of a pilot production run for our finished products and the start of our first clinical trial. Additionally, we are proud to have listed on the Toronto Stock Exchange, senior board, as a research and development issuer, which we aim to leverage for our future growth.”
Approval of Genetics
- During the second quarter ended June 30, 2019, Santa Marta Golden Hemp S.A.S., a subsidiary of the Company, obtained genetic registration from the Colombian Agricultural Institute (ICA) for three tetrahydrocannabinol (“THC“) dominant genetic strains, one cannabidol (“CBD“) dominant genetic strain, and is currently cultivating its registered CBD dominant genetic for extraction and commercial sale of CBD products while it seeks to obtain quotas for its THC dominant genetics.
- The Company, through its subsidiaries, has submitted an application with the Colombian regulatory authorities to register an additional 25 genetics, of which six would be CBD dominant and 19 would be THC dominant.
Research and Development
- The Company, through its subsidiaries, has commenced phase I clinical trials on three of its derma-cosmetic products in Colombia with the Centro de Atención e Investigatión Médica CAIMED S.A.S. (CAIMED), which are expected to be complete in the fourth quarter of 2019, prior to the Colombian commercial launch of the Company’s derma-cosmetic line.
- The Company has received interest for sample orders for its CBD isolates. The Company is awaiting final regulatory approvals to export its CBD isolates before it can pursue any firm orders.
- The Company anticipates it will have up to 120 kilograms of CBD isolate available for distribution at the end of 2019.
Expansion in Cultivation and Extraction
- Currently the Company’s subsidiaries have a total of 290,000 square feet of cultivation space, which is expected to yield approximately 15,000 kilograms of dried flower annually.
- The Company’s subsidiaries are currently expanding their cultivation footprint to approximately 410,000 square feet, which is expected to yield approximately 22,800 kilograms of dried flower annually. The Company anticipates this expansion to be completed by the end of 2019.
- The Company’s subsidiaries have current extraction facilities capable of processing approximately 300 kilograms of dried flower per day into plant-derived cannabinoid extracts and purified cannabinoids including distillates and isolates.
- The Company is expecting to manufacture approximately 82,000 units of its derma-cosmetic products by the end of the third quarter of 2019, which are expected to be slated for distribution in the Colombian market.
- The Company added significant liquidity to its balance sheet from the second closing of its special warrant financing and from a transaction involving Sativa Nativa S.A.S., positioning it well for its planned commercial efforts. The Company had approximately $12.9 million of cash and cash equivalents on hand at June 30, 2019, compared with $69,295 at December 31, 2018.
- The Company’s costs increased for the six months ending June 30, 2019 as a result of scaling up operations and the significant costs associated with the listing of its common shares on the Toronto Stock Exchange.
Unaudited Summary of Operations ($CDN)