Mr. Aras Azadian reports

AVICANNA REPORTS FULL YEAR 2025 AUDITED FINANCIAL STATEMENTS

Avicanna Inc.'s full year 2025 results, audited financial statements, with management's discussion and analysis, have been filed.

"Throughout the year, we strengthened our leadership in cannabinoid-based medicine by advancing our research and development programs, progressing clinical initiatives, and deepening engagement with the Canadian medical community. We delivered the strongest financial performance in our history, reflecting operational discipline, optimization and efficiencies.

"We also made targeted investments across our platforms to support commercial scalability, advanced product development and enhanced the capabilities of the MyMedi.ca platform. These initiatives position Avicanna to scale efficiently, expand internationally, and unlock the full value of our business units and intellectual property globally," stated Aras Azadian, chief executive officer of Avicanna.

Earnings call: Management will host an earnings call and corporate update on Tuesday, April 7, 2026, at 8 a.m. Eastern Time. Presenters will include Mr. Azadian, Nick Hillborn, interim chief financial officer, and Dr. Karolina Urban, executive vice-president, medical affairs. Register for the call on-line.

Financial highlights

Revenue and gross profit: Revenue totalled $6.6-million in Q4 (fourth quarter) 2025 and $25.48-million for the year ended Dec. 31, 2025, consistent with $6.6-million and $25.46-million, respectively, in the prior year. Gross margin expanded to 53 per cent in 2025 from 51 per cent in 2024, driving gross profit to $13.4-million, compared with $12.9-million in the prior year. Margin expansion reflects continued optimization of product mix and cost efficiencies.

Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization): The company generated positive adjusted EBITDA of $310,000 in Q4 2025, compared with negative $790,000 in Q3 (third quarter) 2025, reflecting improved operating leverage. For the year ended Dec. 31, 2025, the company achieved near break-even adjusted EBITDA with negative $290,000, representing a 76-per-cent improvement compared with negative $1.01-million in 2024. The year-over-year improvement was primarily attributable to higher gross margins and a 10-per-cent reduction in operating expenses.

Highlights and advancements during 2025

Canadian commercial advancements: During 2025, the company further advanced its Canadian commercial platform across new SKUs (stock-keeping units), channels and listings. Additionally, the company's MyMedi.ca platform recovered from a modest Q1 (first quarter) performance of decreased sales, with three consecutive quarters of growth, combined with consistent increases in the proportion of sales attributed to Avicanna's proprietary products. This resulted in 211,090 units of proprietary products sold during 2025, an increase of approximately 5 per cent from 2024. At the end of the fourth quarter, the company had 52 commercial SKUs and 174 commercial listings across medical and adult-use channels, representing 27-per-cent growth in proprietary commercial SKUs and a 32-per-cent growth in total listings from Q4 2024.

Initiation of pilot phase II clinical study for osteoarthritis pain with UHN: The multicentre, blinded, randomized placebo-controlled investigator-initiated study will be led by Dr. Hance Clarke and conducted at University Health Network. The study will analyze the effectiveness of Avicanna's proprietary oral cannabis extracts for osteoarthritic pain and is the company's first placebo controlled, blinded randomized multicentre trial RCT. The study is funded by a Canadian Institutes of Health Research (CHIR) grant and is sponsored by Avicanna, which is providing its proprietary CBD (cannabidiol) and THC (tetrahydrocannabinol) capsules produced under good manufacturing practices (GMP) for the trial.

Promising preclinical data supporting enhanced absorption and patent filing for novel oral delivery platform: The PwdRx technology was designed to address key formulation challenges associated with highly lipophilic cannabinoids, which often exhibit poor water solubility, low and variable bioavailability, and delayed onset of action. The technology demonstrated positive results in recent in-vitro study, including 74 per cent higher bioavailability (AUC), 63 per cent faster peak plasma levels (TMAX) and a 134 per cent higher peak plasma concentration (CMAX) when compared with an MCT oil formulation. The company also filed a provisional patent application on the novel drug delivery platform, which can be incorporated into products such as tablets, capsules, sachets and pouches.

Scientific and medical affairs collaboration with Aspeya Switzerland SA: The scientific and medical affairs collaboration with Aspeya Switzerland (formerly Vectura Fertin Pharma), a subsidiary of Philip Morris International, aims to facilitate research and medical affairs initiatives related to medical cannabis in Canada. The scientific and medical affairs collaboration will prioritize engagement with the Canadian medical community, patients, patient advocacy groups and insurers to gain insights into the challenges associated with accessing medical cannabis. The scientific and medical affairs collaboration will leverage Avicanna's medical cannabis platform, including MyMedi.ca, with the aim of improving patient access and patient support.

Symposium on cannabinoid-based medicine (June, 2025): Held at the MaRS discovery district in Toronto, Avicanna's fifth symposium brought together leading key opinion leaders and health care professionals to explore advancements in cannabinoid-based research, medicine and clinical adoption. The event's attendees included health care practitioners and researchers, and featured discussions on emerging evidence and practical clinical applications of cannabinoid-based medicine. The program showcased insights from prominent clinicians, researchers, scientists and industry experts representing a range of academic, clinical and research institutions.

First commercial exports of premium and organic cannabis flower: Santa Marta Goldan Hemp SAS (SMGH), the company's majority owned subsidiary, completed its first export of organic certified flower into Switzerland during Q3 2025 and its first commercial export of organic flower to Australia in Q1 2026. The accumulated exports represent the 22nd international market for SMGH and 24 market for Avicanna. These new commercial opportunities are the result of improvements to the SMGH infrastructure and expansion of the Aureus portfolio to meet the growing demand of medical cannabis flower in Europe and Australia.

Avicanna LATAM SAS launches re+PLAY CBD wellness brand topicals with Harrington Wellness Brands in the United States: re+PLAY is a CBD wellness brand founded by NBA veteran Al Harrington that features Avicanna's patented and proprietary CBD and CBG (cannabigerol) topical formulations. Initial product offerings include a 3 per cent CBD localized cream and the 2 per cent CBD and 1 per cent CBG transdermal gel employing Avicanna's patented deep tissue technology. The CBD and CBG used in the formulations are derived from USDA organic certified hemp cultivated in Avicanna's subsidiary SMGH and manufactured by the Avicanna LATAM SAS team in Colombia.

About Avicanna Inc.

Avicanna is an international biopharmaceutical company specializing in the commercialization of proprietary and evidence-based cannabinoid-based products for the global medical and pharmaceutical market segments. Avicanna has established scientific and medical affairs platforms that support its four commercial stage business pillars and have resulted in the commercialization of more than 550 finished products.

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 continuing 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.

We seek Safe Harbor.