PriceSensitive

Avicanna hits commercialisation in Q4 2019

Cannabis
TSX:AVCN
16 April 2020 12:41 (EDT)
Avicanna Inc - CEO, Aras Azadian

Source: Small Cap Power

Avicanna (TSX:AVCN) has reported strong results for the quarter ending December 31, 2019, as it moves into commercial operations.

The Ontario-based cannabis company is currently focussed on cultivation, through its subsidiaries in Colombia, and research and development.

The last quarter of calendar 2019 was a transformational period for Avicanna, moving away from years of product development and into a new phase of commercialisation.

This included the completion of its 480,000 square foot cultivation site, which in turn bumps its annual dried flower production up to 31,000kg.

Most importantly, Avicanna began revenue generation through the launch of two business lines.

The CBD-based derma-cosmetic range from Pura Earth is now distributed to 59 retail locations across Colombia, while the company’s Aureus B-B brand of raw material cannabinoids is distributed in Colombia, the UK, South Africa and Argentina.

As a result, revenue for the quarter totalled C$122,715, compared to $24,142 in the fourth quarter of 2018.

The company says that all major capital projects have now been completed, including the build out of facilities and infrastructure, and Avicanna can now turn its attention to full-scale commercial activities.

Aras Azadian, CEO of Avicanna, said that the company has broken out of its research and development phase, and is now able to focus on revenue generation.

He also noted that efficiencies have been raised across all the company’s platforms, and that leadership positions in research and development are now stronger than ever.

While he further acknowledged that much more work needs to be done, he concluded by saying that Avicanna is well on its way to becoming a vertically integrated, data driven company “positioned to set the standards in the medical cannabis industry.”

Avicanna (AVCN) is currently up 6.4 per cent to $1.33 per share at 12:03pm EST.

Related News