Avicanna Announces Closing of Strategic Private Placement

Avicanna Inc. (“Avicanna” or the “Company”) (TSX: AVCN) (OTCQX: AVCNF) (FSE: 0NN), a biopharmaceutical company focused on the development, manufacturing and commercialization of plant-derived cannabinoid-based products, is pleased to announce that it will be expanding its RHO Phyto Formula Collection in Canada with Cannabigerol (“CBG”) formulations to medical and adult use channels across Canada.

Avicanna is expanding its trusted RHO Phyto brand with multiple CBG formulations that will be available through various medical cannabis channels, including Medical Cannabis by Shoppers TM and adult-use channels, beginning with its two Ontario Cannabis Store (“OCS “) in Q3 2022 As the Canadian cannabis market continues to expand, Avicanna is leveraging its R&D capabilities to deliver differentiated medical and wellness products, including rare cannabinoid formulations, into established commercial channels. The initial CBG formulations include:

RHO Phyto Rapid Act THC:CBG Spray: A combination of THC and CBG in a lemon-mint flavored spray that utilizes Avicanna’s sublingual delivery technology to provide a rapid onset of effects.

RHO Phyto Micro Drop THC:CBG:CBD Oil: A combination of THC, CBG and CBD in a blood orange flavored oil that utilizes Avicanna’s inverted emulsion technology to ensure enhanced absorption and shelf life stability.

RHO Phyto CBG Transdermal Relief Gel: A combination of CBG and CBD in a fast-absorbing, water-based gel. Harnessing Avicanna’s proven deep-tissue technology, the gel combines cannabinoids with synergistic natural ingredients and terpenes, including menthol and beta-caryophyllene.

About CBG

CBG is a rare and non-psychoactive cannabinoid that acts as a precursor to other more well-known cannabinoids such as CBD and THC. CBG interacts with multiple receptors in the skin and body that are known to be targets for inflammation, infection, pain, etc., as well as neurological and mood disorders. In particular, modern research has examined CBG and its potential role in analgesic, anti-inflammatory, antibacterial and neuroprotective properties 1-5 . In particular, the use of CBG in topical formulations offers local applications for various conditions such as arthritis, muscle aches and pains due to its anti-inflammatory properties. In addition, oral applications of CBG such as the Rapid Act sublingual spray or Micro Drops oils are expected to have systemic effects.

Avicanna’s research on CBG

Avicanna continues to explore the potential therapeutic areas of CBG with its academic and clinical partners, including ongoing studies with Thompson River University evaluating CBG’s potential antimicrobial and anti-inflammatory abilities. The results of these studies will provide further guidance for product development and clinical trials, while supporting existing commercial efforts. In addition, the new additions to the RHO phyto formulary will be included in Avicanna’s Medical Cannabis – Real World Evidence Trial (“MC-RWE”) conducted by the University Health Network (UHN). This longitudinal study evaluates the effectiveness of medicinal cannabis in relation to patient-reported effects on pain, anxiety, sleep and depression.

Additionally , Avicanna has conducted research on CBG as part of its cultivation projects in Colombia, where the Company has developed a genetic cannabis strain that expresses up to 17% CBG in its biomass. Proprietary genetics have also been extracted and are likely the first local source of pure CBG available in Colombia, from where it has also been exported to the United States and Czech Republic.

1. G. Navarro, K. Varani, I. Reyes-Resina, VS. Medina, RR. Santisteban, CSC. Callado, F Vincenzi, S Casano, CF Vera, EI Canela, PA Borea, X Nadal, R Franco (2018) Cannabigerol action at cannabinoid CB1 and CB2 receptors and at CB1-CB2 heteroreceptor complexes. Front Pharmacol 9:632

2. Perez E, Fernandez JR, Fitzgerald C, Rouzard K, Tamura M, Savile C. In vitro and clinical evaluation of cannabigerol (CBG) produced by yeast biosynthesis: a cannabinoid with a broad spectrum of anti-inflammatory and skin health-promoting properties Properties. molecules. 2022; 27(2):491. https://doi.org/10.3390/molecules27020491

3. Nachnani, R.; Raup Konsavage, WM; Vrana, KE The pharmacological case for cannabigerol. J. Pharmacol. Adult Ther. 2021, 376, 204-212.

4. Schuetz MA, Savile CK, Webb C, Rouzard K, Fernández JR, & Pérez E (2021). 480 Cannabigerol: The mother of cannabinoids exhibits a broad spectrum of anti-inflammatory and antimicrobial properties important to the skin. Journal of Investigative Dermatology, 141.

5. Kogan NM, Lavi Y, Topping LM, Williams RO, McCann FE, Yekhtin Z, Feldmann M, Gallily R, Mechoulam R. Novel CBG derivatives may reduce inflammation, pain and obesity. molecules. 2021; 26(18):5601. https://doi.org/10.3390/molecules26185601

About Avicanna Inc.

Avicanna is an international commercial-stage biopharmaceutical company focused on the development, advancement and commercialization of evidence-based cannabinoid products for the global consumer, medical and pharmaceutical market segments. As a leading global cannabinoid advancement company, the Company is actively collaborating with renowned Canadian academic and medical institutions in research and commercialization. Avicanna has built an industry-leading scientific platform that encompasses advanced R&D and clinical development and has resulted in the commercialization of more than thirty products in its key market segments:

Medicinal Cannabis & Wellness Products: These medicinal and wellness products, marketed under the RHO Phyto™ brand, are an advanced line of pharmaceutical-grade cannabinoid products containing varying levels of cannabidiol (“CBD”) and tetrahydrocannabinol (“THC”). The product portfolio includes a full formulation of products, including oral, sublingual, topical and transdermal delivery, featuring controlled dosing, enhanced absorption and stability studies supported by pre-clinical data. The advanced formulation is marketed with education and training for consumers, patients and the medical community.

Pharmaceutical pipeline: Leveraging its scientific platform, vertical integration and real-world evidence, Avicanna has created a pipeline of patent-pending drug candidates that are indication-specific and at various stages of clinical development and commercialization. These cannabinoid-based drug candidates offer solutions to unmet medical needs in the areas of dermatology, chronic pain and various neurological disorders. Avicanna’s first pharmaceutical compound (Trunerox™) is in drug approval phase in South America.

SOURCE Avicanna Inc.
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For more information about Avicanna, visit www.Avicanna.com, email Ivana Maric at [email protected], or follow us on social media on LinkedIn, Twitter, Facebook or Instagram.

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Cautionary Note Regarding Forward-Looking Information and Statements

This press release contains “forward-looking information” within the meaning of applicable securities laws. Forward-looking information 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. Forward-looking information contained in this press release includes, but is not limited to, statements regarding expected financial and/or operating results and prospects, including forecast Revenues, projected sales growth, anticipated expansion of product lists, anticipated application of its products by the company, projected growth, anticipated geographic expansion, receipt of authorizations and regulatory approvals, success of clinical trials, scientific advances and developments, successful commercialization of products, our priorities, goals and Strategies of the Company, Branch trends and their expected impact, the expected impact of current market conditions on each of our segments and ne long-term expectations, components and supply chain constraints, and the estimates and assumptions used in the Company’s financial statements. Although the Company believes that the expectations and assumptions upon which such forward-looking information is based are reasonable, undue reliance should not be placed on forward-looking information as the Company cannot guarantee that it will prove to be accurate. Actual results and developments could differ materially from those contained in 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. These risks and uncertainties include, among other things, current and future market conditions, including the market price of the Company’s common stock, and the risk factors set forth in the Company’s annual information form dated September 3, 2021 and in the final short-form prospectus dated November 27, 2020, filed with Canadian securities regulators and available under the Company’s profile on SEDAR at www.sedar.com. The statements in this press release are as of the date of this press release. The Company disclaims any intention or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise, except as required by applicable securities laws.

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