Avicanna Announces Closing of Non-Brokered Private Placement of Debenture Units
03 August 2023 - 9:50AM
Avicanna Inc. (“
Avicanna” or the
“
Company”) (TSX: AVCN) (OTCQX: AVCNF) (FSE: 0NN),
an innovative, commercial stage, and international
biopharmaceutical company focused on the development advancement,
and commercialization of evidence-based, cannabinoid-based
products, is pleased to announce that it has closed a non-brokered
private placement (the “
Offering”) of 1,455,000
debenture units of the Company (the “
Units”) at a
price of $1 per Unit, for aggregate gross proceeds of approximately
$1,455,000. Each Unit consists of an aggregate of $1 principal
amount of secured subordinated debentures (the
“
Debentures”) and 1 common share purchase warrant
(each, a “
Warrant”).
The Debentures will mature one year following
the closing of the Offering (the “Maturity Date”)
and are not convertible into equity securities of the Company. The
Debentures will bear interest at a rate of 18% per annum until the
Maturity Date. The Debentures are subject to a 2% administration
fee. The Company may prepay the Debentures at any time prior to the
Maturity Date subject to a one-time prepayment fee of 1.5% of the
principal amount.
The Debentures will rank pari passu in right of
payment of principal with all other Debentures issued under the
Offering and will be subordinated to the then currently
outstanding convertible debentures issued on January 28, 2022, as
amended on January 28, 2023 (the “Senior
Debentures”).
Each Warrant is exercisable into one common
share in the capital of the Company (each a “Warrant
Share”) at a price of $0.35 per share for a period of
three years from the closing of the Offering.
The Company intends to use the proceeds from the
Offering for the ongoing development of the Company’s business
model and for general working capital purposes, general and
administrative expenses, repayment of debt, expenditures related
to production and manufacturing, and research and clinical
development. All securities issued under the Offering, including
securities issuable on exercise thereof, are subject to a hold
period expiring four months and one day from the date hereof.
The Offering is subject to certain conditions
including, but not limited to, the receipt of all necessary
approvals, including the approval of the TSX.
The Company has also entered into amending
agreements with certain holders of Senior Debentures bearing an
outstanding principal amount of $562,000 (the “Amending
Agreements”). Pursuant to the Amending Agreements, the
term of the Senior Debentures has been extended to October 28,
2023, the Company will pay to the holders of Senior Debentures a
one-time extension fee equal to 5% of the principal amount of
Senior Debentures outstanding, and the Senior Debentures will bear
interest at a rate of 20% per annum from and after July 28, 2023.
If the Debentures are not repaid by the Maturity Date or if there
is a default under the Senior Debentures, there will be a one-time
penalty fee of 5% of the outstanding principal amount and the
Debentures will bear interest at a rate of 22% per annum.
About AvicannaAvicanna is a
commercial-stage international biopharmaceutical company focused on
the advancement and commercialization of evidence-based
cannabinoid-based products for the global medical and
pharmaceutical market segments. Avicanna has an established
scientific platform including R&D and clinical development that
has led to the commercialization of more than thirty products
across various market segments:
- 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 in South America.
- MyMedi.ca Medical
Cannabis Care: 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.
Click to watch Avicanna’s Corporate Video
2022
SOURCE Avicanna Inc.
Stay Connected
For more information about Avicanna, visit
www.avicanna.com, contact Ivana Maric by email at info@avicanna.com
or follow us on social media on LinkedIn, Twitter, Facebook or
Instagram.
If you are a Healthcare Professional and would
like to learn more about using medical cannabis in your practice,
please visit Avicenna Academy.
The Company posts updates through videos from
the official Company YouTube channel.
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 news 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
news release includes, without limitation, statements related to
the Offering, including the use of proceeds, the receipt of all
approvals of the Toronto Stock Exchange in connection with the
Offering, statements with respect to the Company's future business
operations, the opinions or beliefs of management and future
business goals. 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, and the risk
factors set out in the Company’s annual information form dated
March 31, 2023 and final short form prospectus dated November 27,
2020, filed with the Canadian securities regulators and available
under the Company’s profile on SEDAR at www.sedar.com. The
statements in this news release are made as of the date of this
release. The Company disclaims any intent or obligation to update
any forward-looking information, whether as a result of new
information, future events or results or otherwise, other than as
required by applicable securities laws.
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