Canada’s Avicanna Inc. (TSX: AVCN) (OTCQX: AVCNF) (FSE: 0NN) a biopharmaceutical company focused on the development, manufacturing and commercialization of plant-derived cannabinoid-based products has announced results for the three and six months ended June 30, 2020.
The Company continued to make strides in its strategic commercial initiatives, leading to an increase in revenues of 172% from $260,903 in the first quarter of 2020 to $709,468 in the second quarter of 2020, and an increase of 4,181% from $16,571 in the second quarter of 2019. In addition, the Company was able to reduce general and administrative costs by approximately 8% from $3,185,943 in the first quarter of 2020 to $2,924,462 in the second quarter of 2020 and a decrease of 31% from $4,243,276 in the second quarter of 2019.
During the period the Company announced the co-development of a cannabinoid-based product for treatment of COVID-19 related lung inflammation in partnership with the University of Toronto, with additional support and funding from the Mitacs Accelerate Program grant. Dr. Christine Allen is a global leader in the research and development of pharmaceutical formulations and for the past three years, Avicanna and Dr. Christine Allen’s research group (“CARG”) have developed novel cannabinoid-based products for commercialization. The combined expertise of Avicanna and CARG will fast-track the development of advanced pharmaceutical formulations of cannabinoids and their route to market.
The Company also successfully registered its initial line of products for its CBD-based derma-cosmetic product line, Pura H&W, in the European Union. The Company is anticipating the commercial launch of its Pura H&W line in the United Kingdom in the third quarter of 2020. Avicanna successfully met all regulatory requirements of the European Commission’s Cosmetic Product Notification Portal (the “CPNP”). In addition to the clinical studies conducted on two of the registered products, Avicanna has provided the CPNP with long-term stability studies on these initial SKUs along with primary skin irritation evaluations for the entire portfolio in order to certify the safety and stability of the Pura H&W formulations.
Through its genetics and seed division, Avesta Genetica, Avicanna completed its first industrial-scale seed harvest in Colombia. Approximately 80 million premium and feminized cannabigerol (“CBG”) dominant seeds were successfully harvested. The seeds have been tested for germination and attained feminization rates of 99%, which are considered premium within the global seed market. The seeds will be utilized for sales, exports, and local production. Additionally, the Company’s first ever export of hemp seeds (genetics) was approved by the Colombian government, which was also the first export of cannabis or hemp seeds in Colombian history.
Aras Azadian, Chief Executive Officer of Avicanna, commented “We continued to make strategic, scientific and commercial progress during the quarter while optimizing our global operations, which is demonstrated through quarter to quarter revenue increases and cost reductions. We are at an inflection point where our differentiated and advanced product lines are commencing sales in major markets and we are demonstrating evidence of our diversified business model which is comprised of seeds, API, advanced finished products, and royalties from intellectual property. Furthermore, we continue to fortify our thought leadership position within the medical community in Canada with various world class research collaborations, which now include the strategically significant real-world evidence trials on our RHO Phyto products available in the Canadian market.”
Khiron Life Sciences Corp. (TSXV: KHRN), (OTCQX: KHRNF), (Frankfurt: A2JMZC), has announced its financial results for the quarter ended June 30, 2020.
The Company recorded a net loss of $5.7 million in the second quarter of 2020. This compares to a net loss of $9.5 million in the prior year second quarter. On an adjusted EBITDA basis Q2 2020 was a $3.9 million loss compared to the adjusted loss of $7.1 million in Q2 2019.
“I am proud to report that despite the global impact of COVID-19, we have been able to responsibly move our business forward and continue building a strong position in the medical cannabis space to ensure sales growth in Colombia, and sales entry into new markets in the UK, Peru, and Germany. In Q2 the Company focused sales activity on our higher margin medical businesses, while ensuring prudent cash management across all operations. Our clinics remained operational through the pandemic as a designated essential service, allowing us to generate medical cannabis sales and conduct revenue generating medical procedures, subject to pandemic restrictions,” comments Alvaro Torres, Khiron CEO and Director.
“The pandemic has been an extraordinary health and economic event, but at Khiron we moved quickly to shift our strategic approach to limit global expansion, alter marketing methods and conserve cash while maintaining an overall strategic direction to improve the quality of life of our patients and consumers. This has enabled us to continue to make progress under difficult conditions and positions us to be a global cannabis leader. This progress would not be possible without our remarkable global team, partners and stakeholders who I would like to thank for their continued dedication and commitment,” continued Alvaro Torres.
Key milestones from the announcements: