TORONTO – Avicanna Inc. (TSX: AVCN) (OTCQX: AVCNF) (FSE: 0NN) a biopharmaceutical company focused on the development, manufacturing and commercialization of plant-derived cannabinoid-based products reported that its majority owned Colombian subsidiary, Santa Marta Golden Hemp S.A.S., has executed a three year master supply agreement with a leading Brazilian pharmaceutical company to supply industrial volumes of high THC and high CBD full spectrum psychoactive cannabis resin.
The Cannabis Extracts will be used in the production of several products which will be registered and commercialized in Brazil through RDC 327/19 that regulates manufacturing, registration, importation and dispensing of cannabis-derived products.
Fulfillment of purchase orders under the agreement is expected to commence in 2021 for pilot batches. Fulfillment of purchase orders for commercial batches in 2022, based on initial forecasts made by the Brazilian pharmaceutical company pursuant to the agreement, is expected to generate approximately CAD$4 million in revenue for Avicanna.
The Cannabis Extracts are cultivated, extracted and manufactured by SMGH pursuant to US and European pharmacopeia standards, the leading standards for the quality of products that may be used as active pharmaceutical ingredients. SMGH’s product offerings include Cannabis Extracts as well as isolated CBD, THC, and CBG and standardized seeds, which are marketed under the Company’s brand, Aureus™.
Aras Azadian, CEO of Avicanna, commented: “This first of its kind partnership for Avicanna further validates the company’s competitive advantages and capability of producing sustainable, standardized and economical source cannabinoid API for our own product pipeline in addition to supplying our global pharmaceutical partners.”
Avicanna is a diversified and vertically integrated Canadian biopharmaceutical company focused on the research, development and commercialization of plant-derived cannabinoid-based products for the global consumer, medical, and pharmaceutical market segments.
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