Toronto-based biopharmaceutical company Avicanna has recently completed its acquisition of the Medical Cannabis by Shopper’s Business unit from one of Canada’s major pharmacy chains, Shoppers Drug Mart. The acquisition was made for 2.6 million Canadian dollars ($1.9 million), with additional earnout payments based on net revenue over a two-year period. This acquisition marks a significant milestone for Avicanna, showcasing its commitment to the cannabinoid-based products sector.
The New Medical Cannabis Care Platform: MyMedi.ca
Alongside the acquisition, Avicanna announced the launch of MyMedi.ca, a new medical cannabis care platform that takes over the services previously offered by Shoppers Drug Mart. With this new platform, Avicanna aims to cater to the needs of its growing patient base, providing enhanced medical cannabis care and personalized services.
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Avicanna’s CEO, Aras Azadian, Expresses Enthusiasm
Avicanna’s CEO, Aras Azadian, expressed his enthusiasm for the acquisition, hailing it as a transformative moment for the company. He is optimistic about the opportunities the acquisition presents and the positive impact it will have on patients accessing medical cannabis through the platform.
Patient Count and Market Impact
While Avicanna did not disclose the exact number of registered patients using the platform, it is clear that the company is poised to serve a significant patient base. As of March 2023, Canada had over 230,000 active medical cannabis registrations with federal license holders, indicating the size of the potential market for Avicanna’s services.
Private Placement to Fund Growth
To support its ongoing development, Avicanna recently completed a private placement of 1,455,000 debenture units, raising CA$1.5 million. These debentures will bear interest at an annual rate of 18% until their maturity date, set for one year from the time of issuance. The company plans to use the raised funds for various purposes, including general working capital, administrative expenses, debt repayment, production and manufacturing, and research and clinical development.
Financial Performance and Revenue Growth
Avicanna’s financial performance for the three months ended March 31, 2023, reported a loss of CA$2.5 million. However, the company experienced a 15% increase in total revenue, reaching CA$1.2 million for the quarter compared to the same period in the previous year. This revenue growth reflects the company’s dedication to expanding its product offerings and enhancing customer experience.
Avicanna’s Presence on the Toronto Stock Exchange
Avicanna’s shares are publicly traded on the Toronto Stock Exchange under the ticker symbol AVCN. This listing provides investors and stakeholders with an opportunity to participate in the growth of the burgeoning medical cannabis industry.
Conclusion
Avicanna’s successful acquisition of the Medical Cannabis by Shopper’s Business unit and the launch of MyMedi.ca signify a pivotal moment for the company. As it moves forward, Avicanna is well-positioned to leverage its expanded platform and offerings to better serve its patients and advance its standing in the cannabinoid-based products sector.
FAQs
- How does Avicanna’s acquisition benefit the company? Avicanna’s acquisition of the Medical Cannabis by Shopper’s Business unit enhances its product portfolio and market presence, providing new growth opportunities for the company.
- What is MyMedi.ca, and how does it differ from the previous platform? MyMedi.ca is a medical cannabis care platform launched by Avicanna to replace the services previously offered by Shoppers Drug Mart. It aims to provide improved medical cannabis care and personalized services to patients.
- Is Avicanna publicly traded? Yes, Avicanna’s shares are traded on the Toronto Stock Exchange under the ticker symbol AVCN.
- How many registered patients does Avicanna serve through the platform? The exact number of registered patients is not disclosed, but as of March 2023, Canada had over 230,000 active medical cannabis registrations with federal license holders.
- What are the plans for Avicanna’s raised funds from the private placement? Avicanna intends to utilize the proceeds for various purposes, including general working capital, administrative expenses, debt repayment, production and manufacturing, and research and clinical development.
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