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Avicanna Inc. Announcement: Audit Delays and Future Expectations

Update on Audit Delay

Auditor Licensing & Personnel Issues Affect Issuance of Audit Opinion
The Company expects to file within two weeks.

Company Overview

In a recent announcement from Avicanna Inc. (“Avicanna” or “Company”) based in Toronto, the company has informed stakeholders that they will fail to meet the March 31, 2025 deadline. This deadline pertains to the filing of the company’s audited consolidated financial statements for the fiscal year ending December 31, 2024. The filing is mandated by National Instrument 51-102, along with the Management’s Discussion & Analysis (MD&A) for the same period. Avicanna is publicly traded on the Toronto Stock Exchange under the ticker symbol AVCN and on the OTCQX under AVCNF.

Audit Progress and Challenges

According to the firm’s auditor, Ramirez Jimenez International CPAs (“RJI”), although the audit is almost complete and they are ready to issue the audit opinion, unforeseen issues regarding internal personnel and jurisdictional licensing have arisen. These issues have impeded RJI’s ability to release the audit report by the established deadline. RJI is actively working to resolve these challenges and expects that the matter will be settled within two weeks. Upon resolution, the firm will issue the audit opinion, allowing the Company to submit the required MD&A and Annual Information Form concurrently.

Communication with Regulatory Authorities

In light of this situation, Avicanna has proactively communicated with the Ontario Securities Commission (OSC) about the anticipated filing delay. To ensure compliance with regulatory requirements, the Company has sought a Management Cease Trade Order (MCTO) from the OSC under Part 4 of National Policy 12-203 – Management Cease Trade Orders (“NP 12-203”). The MCTO will restrict the Company’s management from trading securities until the necessary documents are filed.

Possible Outcomes and Compliance Strategy

Currently, the OSC has yet to make a decision regarding the MCTO application. The organization may either grant the request or decide on imposing an issuer cease trade order instead. It remains uncertain whether a MCTO will ultimately be issued.

To mitigate the situation and keep stakeholders informed, Avicanna has committed to following the alternative information guidelines outlined in Section 9 of NP 12-203. The Company plans to file bi-weekly default status reports via press releases, maintaining transparency throughout this process. They expect to have the necessary documents submitted by April 15, 2025.

Future Conference Call Postponement

Additionally, the Company has announced that the 2024 Full Year Earnings Conference Call, originally scheduled for April 1, 2025, will be postponed to a later date, reflecting the urgency of the current situation.

About Avicanna

Avicanna is an international biopharmaceutical company specializing in developing and commercializing cannabinoid-based products for the medical and pharmaceutical markets. The Company boasts a robust scientific platform that includes extensive research and development leading to the commercialization of over thirty proprietary products across several therapeutic areas.

Product Offerings

• RHO Phyto™ Medical Cannabis Formulary:
  Avicanna offers a diverse formulary of proprietary cannabinoid-based products delivered in various forms, including oral, sublingual, topical, and transdermal. This established brand is available across Canada and is expanding into new international markets.

• MyMedi.ca Medical Cannabis Care Platform:
  Operated by Northern Green Canada Inc., this platform is designed to enhance medical cannabis patients’ experiences through a comprehensive portfolio of products, pharmacist-led support, and educational resources aimed at health care integration.

• Pharmaceutical Pipeline:
  Avicanna leverages its scientific expertise to develop proprietary cannabinoid-based candidates targeted at unmet medical needs, particularly in dermatology, chronic pain, and neurology.

• Active Pharmaceutical Ingredients (Aureus Santa Marta™):
  Through its subsidiary, Santa Marta Golden Hemp SAS, Avicanna supplies high-quality CBD, THC, and CBG to international partners, reinforcing its position in the global supply chain for medical, cosmetic, and pharmaceutical products.

How AI legalese decoder Can Assist

Navigating complex regulatory frameworks and legal documentation can be particularly challenging for companies like Avicanna during periods of uncertainty. The AI legalese decoder tool can provide essential assistance by simplifying intricate legal jargon into understandable language, enabling stakeholders to grasp critical information about company obligations, compliance requirements, and the implications of any potential cease trade orders. Additionally, it can offer timely insights into the expected outcomes of legal matters, thus helping management make informed decisions that adhere to regulatory requirements.

With the support of AI-powered tools, Avicanna can enhance its communication strategies and stakeholder engagement, ensuring that all parties are adequately informed and reducing misunderstandings as it maneuvers through this challenging period. This capability can foster greater transparency and confidence among investors and regulatory bodies alike.

Staying Connected

For more comprehensive information about Avicanna Inc. and its initiatives, please visit [our website](insert link) or contact Ivana Maric at info@avicanna.com.

Cautionary Note Regarding Forward-Looking Information

This news release includes "forward-looking information" as defined by applicable securities laws and involves various risks and uncertainties. It is essential for stakeholders to understand that actual results may differ from anticipated ones, and undue reliance should not be placed on the forward-looking statements contained herein. The Company disclaims any obligation to update forward-looking information except as required by applicable laws.

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