Avicanna Stock Down On Announcing $2.12M Raise Via Secured Term Loan Financing

Avicanna Stock Down On Announcing $2.12M Raise Via Secured Term Loan Financing

Avicanna Inc. AVCN AVCNF has raised roughly $2.12 million by closing the previously announced secured term loan financing.

The term loan, which is due October 19, 2022, is subject to an original issue discount of roughly 15%, such that $1.8 million advanced by the lender thereof to the Toronto-based company.

In addition, Avicanna plans to issue common share purchase warrants to the lender following a full revocation of the failure-to-file cease trade order issued by the Ontario Securities Commission on June 11.

In July, the company wrapped up a supply agreement with a Brazilian pharmaceutical company through its majority-owned Colombian subsidiary, Santa Marta Golden Hemp S.A.S.

The three-year master supply agreement binds Avicanna to supply industrial volumes of THC and CBD-rich full spectrum psychoactive cannabis resin, with the pilot batches projected to start in 2021.

Shortly after, the company partnered with Heritage Cannabis Holdings Corp. HERTF to commercialize a wide range of its CBD products under Heritage’s medical cannabis brand.

Pursuant to an exclusive intellectual property licensing and royalty agreement, Avicanna’s products will be offered to registered medical marijuana patients in Canada under Heritage’s brand.

Price Action: Avicanna’s were trading 16.67% lower at $0.75 per share at the time of this writing, Friday mid-morning.

Photo: Courtesy of Ryan Lange on Unsplash

Posted In: CannabisNewsPenny StocksFinancingMarkets

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