Mr. Aras Azadian reports

AVICANNA WELCOMES INITIAL U.S. RESCHEDULING OF MEDICAL CANNABIS & PROVIDES SCIENTIFIC UPDATE

Avicanna Inc. has applauded the announcement by the U.S. Department of Justice and U.S. Drug Enforcement Administration to reschedule certain cannabinoid-based products from Schedule I to Schedule III under the U.S. federal Controlled Substances Act, in furtherance of President Trump's executive order of Dec. 18, 2025. The company applauds this development as a meaningful step toward advancing scientific research, improving regulatory clarity and expanding patient access. The company is pleased to provide an update of its scientific, research and development, clinical development, and medical affairs initiatives and programs, while continuing to evaluate strategic opportunities in the United States.

Management commentary

"We are encouraged by actions and announcements of the current U.S. administration toward a more evidence-based and pragmatic framework for cannabinoid-based products," said Aras Azadian, chief executive officer of Avicanna. "This milestone reinforces the importance of rigorous scientific development and aligns closely with Avicanna's long-standing strategy of advancing pharmaceutical-grade cannabinoid products alongside standardized medical cannabis platforms. As the regulatory landscape evolves, we believe Avicanna is well positioned to leverage its intellectual property portfolio, pipeline and vertically integrated capabilities to support our strategic road map toward participation in the U.S."

Scientific and medical highlights (year-to-date 2026)

Clinical development

Avicanna continues to advance a robust clinical development strategy supported by both real-world evidence and randomized controlled trials:

• A continuing real-world evidence study evaluating physician-authorized medical cannabis has published findings demonstrating improvements in pain-related outcomes, mental health measures and quality of life (Canadian Journal of Pain);
• Initiation of a phase 1 randomized, double-blind, placebo-controlled dose-finding study in collaboration with the University of Calgary's Cumming school of medicine, evaluating dose-dependent effects of oral tetrahydrocannabinol on anxiety and stress using Avicanna's proprietary capsule formulations;
• Progress in a previously announced phase 2 randomized controlled trial evaluating cannabinoid-based formulations for arthritic pain, with initial patient enrolment commenced in early 2026.

Research and development

The company continues to make meaningful progress across its proprietary R&D pipeline. Continued advancement, commercialization and optimization of Avicanna's proprietary delivery technologies, including the QUIX rapid onset nanotechnology platform, supporting both pharmaceutical and medical cannabis applications.

Medical affairs and scientific engagement

Avicanna continues to expand engagement with health care professionals through targeted education and collaboration, including the growth of Avicenna Academy, which supports evidence-based clinical decision making, alongside the MyMedi.ca platform, which enhances patient access through pharmacist-led support programs, reimbursement initiatives and specialized care pathways. The company recently announced its sixth annual Clinical Symposium on Cannabinoid Therapeutics, a leading forum for clinical dialogue, patient outcomes and emerging therapeutic applications, to be held in an expanded two-day format, both in person and virtually, bringing together clinicians, researchers and key stakeholders.

Strategic outlook

The evolving U.S. regulatory framework represents a significant milestone in the integration of cannabinoid-based therapeutics within a pharmaceutical framework. Avicanna will continue to monitor regulatory developments and assess pathways to leverage its scientific platform, proprietary formulations and clinical data in support of future U.S. market entry, with a focus on:

• Pharmaceutical development and Food and Drug Administration-aligned pathways including clinical development in the United States;
• Evidence-driven and federal- or state-level medical cannabis models;
• Strategic partnerships and licensing opportunities.

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 30 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 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 is a commercial-stage business dedicated to providing various forms of high-quality cannabidiol, tetrahydrocannabinol and cannabigerol 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.

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