Avicanna Announces Closing of Non-Brokered Private Placement of Non-Convertible Debenture Units

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TORONTO, Oct. 29, 2026 (GLOBE NEWSWIRE) -- Avicanna Inc. (“Avicanna” or “Company”) (TSX: AVCN) (OTCQB: AVCNF) (FSE: 0NN), a biopharmaceutical company focused on the development, manufacturing and commercialization of plant-derived cannabinoid-based products, is pleased to announced that it has closed a non-brokered private placement (“Offering”) of 2,000 non-convertible debenture units of the Company (“Units”) at a price of $1,000 per Unit for aggregate gross proceeds of approximately $2,000,000. Each Unit consists of an aggregate of $1,000 principal amount of unsecured non-convertible debentures (“Debentures”) and 2,000 common share purchase warrants (each, a “Warrant”). The Debentures will mature one year following the closing of the Offering (“Maturity Date”).

“We have made progress, and continue to make progress, in developing, commercializing and optimizing our diversified portfolio of products through various platforms and business units. This financing provides additional working capital and financial flexibility to support our continued growth, strengthening our domestic and international commercial and operational endeavors, and expanding our roadmap for the future, while at the same time maintaining our focus on operational efficiencies and disciplined capital allocation” stated Aras Azadian, CEO of Avicanna.

The Debentures will bear interest at a rate of 13% per annum, payable monthly. Company paid each subscriber a one-time administrative fee equal to 2% of the aggregate principal amount of the Debentures subscribed for. Each Warrant is exercisable into one common share in the capital of the Company (each a “Warrant Share”) at a price of $0.20 per share for a period of three years from the closing of the Offering. The Company shall have the right at any time and from time to time during the period commencing on the date that is six months from the closing of the Offering and the Maturity Date, to repay up to 100% of the principal amount of the then outstanding Debentures. The Debentures will rank pari passu in right of payment of principal with all other Debentures issued under the Offering. The Debentures will initially be unsecured obligations of the Company, and the Company has agreed to enter into a general security agreement with the holders of Debentures, granting a security interest to secure the obligations of the Company under the Debentures, on or before the date that is one month following the closing of the Offering. The Company intends to use the proceeds from the Offering for general working capital purposes, general and administrative expenses, 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 on March 1, 2027.

The Offering is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the Toronto Stock Exchange (the “TSX”).

About Avicanna Inc
Avicanna is a commercial-stage international biopharmaceutical company focused on the advancement and commercialization of cannabinoid-based products and formulations for the global medical and pharmaceutical market segments. Avicanna has an established scientific platform including R&D and clinical development leading to the commercialization of more than thirty proprietary, evidence-based finished products and supporting four commercial stage business pillars.

• Medical Cannabis formulary (RHO Phyto™): The formulary offers a diverse range of proprietary products including oral, sublingual, topical, and transdermal deliveries with varying ratios of cannabinoids, supported by ongoing patient and medical community education. RHO Phyto is an established brand in Canada currently available nationwide across several channels and expanding into new international markets.
  
• Medical cannabis care platform (MyMedi.ca): MyMedi.ca is a medical cannabis care platform formed with the aim to better serve medical cannabis patients’ needs and enhance the medical cannabis patients’ journey. MyMedi.ca is operated by Northern Green Canada Inc. and features a diverse portfolio of products and bilingual pharmacist-led patient support programs. MyMedi.ca also provides specialty services to distinct patient groups such as veterans and collaborates with public and private payers for adjudication and reimbursement. MyMedi.ca provides educational resources to the medical community to facilitate the incorporation of medical cannabis into health care regimens.
  
• Pharmaceutical pipeline: Leveraging Avicanna’s scientific platform, vertical integration, and real-world evidence, Avicanna has developed a pipeline of proprietary, indication-specific cannabinoid-based candidates that are in various stages of clinical development. These cannabinoid-based candidates aim to address unmet needs in the areas of dermatology, chronic pain, and various neurological disorders.
  
• Active pharmaceutical ingredients (Aureus Santa Marta™): Active pharmaceutical ingredients supplied by the Company’s majority owned subsidiary Santa Marta Golden Hemp SAS (“SMGH”) is a commercial-stage business dedicated to providing various forms of high-quality CBD, THC and CBG to the Company’s international partners for use in the development and production of food, cosmetics, medical, and pharmaceutical products. SMGH also forms part of the Company’s supply chain and is a source of reliable input products for its consumer retail, medical cannabis, and pharmaceutical products globally.
  

SOURCE Avicanna Inc. 

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For more information about Avicanna, visit our website or contact Ivana Maric by email at ir@avicanna.com. 

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 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, 2026, filed with the Canadian securities regulators and available under the Company’s profile on SEDAR+ at www.sedarplus.ca. 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.