Toronto-based Avicanna mentioned it paid off $1.4 million in debt from August 2023 after closing on a virtually $2 million non-brokered personal placement of its 6.6 million shares.
Avicanna is a biopharmaceutical firm centered on cannabinoid-based merchandise.
Along with paying off the debt, Avicanna mentioned in a information launch that it plans to make use of the proceeds from the providing for basic working capital and administrative bills and prices associated to manufacturing and manufacturing in addition to analysis and scientific growth.
The unit shares and warrants, and any securities which might be issuable upon conversion, are topic to a four-month maintain interval underneath Canada’s securities legal guidelines.
The providing is also topic to the approval of the Toronto Inventory Change, the place shares of Avicanna are traded as AVCN.
Final August, Avicanna acquired Medical Hashish by Shopper’s Enterprise from Canadian pharmacy chain Customers Drug Mart.
Avicanna paid 2.6 million Canadian {dollars} ($1.9 million) plus earnout funds primarily based on internet income for a two-year interval.
The corporate reported 2023 income progress of 314%, growing from $2 million in 2022 to $16.8 million final yr.
The rise was largely pushed by the Medical Hashish Customers acquisition and the launch of MyMedi.ca.
Consolidated gross earnings elevated by 500% from $1.1 million in 2022 to $6.7 million in 2023.
