Avicanna reports Q2 2026 financial results

Gross margin improves to 57%, supported by 48% quarterly growth in proprietary product sales QUIX™ rapid-onset portfolio prepared for Q3 launch with more than 35 commercial listings secured

TORONTO, Aug. 14, 2026 (GLOBE NEWSWIRE) -- Avicanna Inc. (“Avicanna” or the “Company”) (TSX: AVCN) (OTCQX: AVCNF) (FSE: 0NN), a biopharmaceutical company focused on the development, manufacturing and commercialization of plant-derived cannabinoid-based products, is pleased to announce its financial results for Q2 2026, including the related financial statements and management’s discussion and analysis.

“We are encouraged by the continued improvement in the fundamentals of our business and particularly proud of how our team navigated the significant Veterans Affairs reimbursement changes while maintaining underlying patient and order growth,” said Aras Azadian, Chief Executive Officer of Avicanna. “We also continued to grow our proprietary products, expand gross margins and make progress toward profitability, while preparing for the next phase of growth and scale-up across our medical cannabis and pharmaceutical pipelines. The translation of our proprietary QUIX™ technology from research and development into a commercial portfolio launching in the third quarter demonstrates our ability to convert scientific capabilities and intellectual property into differentiated commercial products. With a stronger underlying business, an expanding portfolio and advancing clinical programs, we believe we are well positioned for a stronger second half of 2026 and long-term growth.”

Financial Highlights:

Revenue: The Company generated revenue of $5.64 million and $12.32 million for the three- and six-month periods ended June 30, 2026, representing decreases of 8% and 1%, respectively, compared to the corresponding periods in 2025. The second-quarter decline was primarily attributable to the April 1, 2026, reduction in Veterans Affairs Canada (“VAC”) reimbursement rates, together with the timing of revenue from SMGH and other growing business units, which can vary between reporting periods. Despite these headwinds, the Company’s underlying operations demonstrated positive momentum, including growth in Avicanna proprietary product sales and increases in patients and orders through MyMedi.ca.

Gross Profit: Gross profit was $3.19 million for the second quarter and $7.03 million for the six-month period, representing improved gross margins of 57% for both periods, compared to 51% and 54% for the respective periods in 2025. The 600-basis-point year-over-year improvement in second-quarter gross margin was primarily driven by a greater contribution from higher-margin proprietary Avicanna-branded products, including a 42% year-over-year increase in sales of Avicanna-branded products through MyMedi.ca, reflecting continued execution of the Company’s portfolio and commercialization strategy.

Adjusted EBITDA: The Company reported a narrow-adjusted EBITDA loss of $0.36 million for the second quarter and $0.60 million for the six-month period, compared to an adjusted EBITDA loss of $0.25 million and adjusted EBITDA of $0.18 million, respectively, in the corresponding periods in 2025. The year-over-year change was primarily attributable to the second-quarter revenue decline, the impact of which was partially mitigated by continued operating efficiencies and cost-management initiatives. Management expects revenue recovery, continued growth initiatives and further operating efficiencies to support positive adjusted EBITDA during the second half of 2026.

Working Capital: The Company improved its working capital position, reducing its working capital deficit to $0.28 million as of June 30, 2026, compared to a deficit of $1.28 million as of December 31, 2025.

Canadian Commercial Advancements: Sales of Avicanna’s proprietary products increased from 50,681 units to 67,174 units, representing year-over-year growth of 33% across all channels. Proprietary product sales also increased 48% quarter-over-quarter, from 45,419 units in the first quarter of 2026 to 67,174 units in the second quarter. At quarter end, the Company had 56 commercial SKUs and 172 commercial listings across medical and adult-use channels, representing increases of 12% and 27%, respectively, compared to the second quarter of 2025. The Company expects continued portfolio expansion during the third quarter, supported by new product launches, including the QUIX™ portfolio.

MyMedi.ca: Following four consecutive quarters of growth, MyMedi.ca experienced its first sequential quarterly revenue decline, primarily due to the VAC reimbursement changes effective April 1, 2026. Despite an approximately 30% reduction in the maximum VAC reimbursement rate and an associated 11.3% decline in average patient cart size, the Company substantially mitigated the impact through portfolio optimization, increased penetration of Avicanna-branded products and operating efficiencies. The number of active patients and total orders increased during the second quarter demonstrating a positive trend despite the reimbursement change.

Avicanna Introduces QUIX™ Rapid-Onset Medical Cannabis Portfolio: The initial QUIX™ medical cannabis SKUs, including rapid-onset capsules and soft chews, are planned for commercial launch during the third quarter, with more than 35 commercial listings already secured. The portfolio reflects the Company’s continued focus on treatment optimization and the evolution of medical cannabis toward standardized, accurately dosed and non-combustible product formats. QUIX™ is Avicanna’s proprietary, evidence-based self-emulsifying drug delivery designed to address inherent challenges associated with cannabinoid delivery by producing nano-sized cannabinoid droplets intended to support rapid onset, enhanced cannabinoid absorption and consistent product performance.

U.S. Regulatory and Scientific Advancements: During the quarter, the Company welcomed initial steps by U.S. federal authorities toward the rescheduling of certain cannabinoid-based products from Schedule I to Schedule III, which management believes represents an important development for cannabinoid research, pharmaceutical development and the Company’s potential participation in the U.S. market. The evolving regulatory framework aligns with Avicanna’s evidence-based strategy and may provide opportunities to leverage its intellectual property, proprietary formulations, clinical pipeline and scientific capabilities through pharmaceutical development, medical cannabis initiatives and strategic partnerships. During the period, the Company also continued to advance its scientific programs, including its Phase I THC dose-finding study with the University of Calgary, its Phase II osteoarthritis pain study, real-world evidence initiatives and the continued development and commercialization of proprietary drug-delivery technologies, including QUIX™.

6th Annual Clinical Symposium on Cannabinoid Therapeutics: In June 2026, the Company successfully hosted its 6th Annual Clinical Symposium on Cannabinoid Therapeutics at the MaRS Discovery District in Toronto. Expanded to a two-day format, the symposium brought together leading clinicians, researchers and healthcare professionals from across Canada to discuss emerging evidence, real-world outcomes and the integration of cannabinoid-based therapies into clinical practice. The successful execution of the symposium further strengthened Avicanna’s medical affairs platform, healthcare professional engagement and position as a contributor to evidence-based cannabinoid education and research.

Changes in the Board of Directors: During the second quarter and in connection with the Company’s Annual General Meeting, changes were made to Avicanna’s Board of Directors with the additions of Ozgur Kilic and Lisa McCormack. Mr. Kilic brings more than 20 years of global executive experience across public and private equity-backed pharmaceutical companies, including senior leadership roles as Chief Executive Officer, Chief Financial Officer and Chief Operating Officer across the U.S. and Europe. Ms. McCormack, Founder and Chief Executive Officer of Northern Green Canada, brings more than 25 years of leadership experience in highly regulated industries, with expertise in pharmaceutical-grade cannabis operations, EU-GMP standards, international commercialization, capital formation and regulatory strategy. These changes broaden the Board’s pharmaceutical, operational, financial and international expertise as the Company continues to advance its commercial and biopharmaceutical growth strategy.

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 thirty proprietary, evidence-based finished products and supporting four commercial stage business pillars.

Medical Cannabis Formulary (RHO Phyto™): The scientifically backed formulary offers a diverse range of proprietary products including oral, sublingual, topical, and transdermal delivery formats with varying ratios of cannabinoids, and release profiles that are supported by ongoing 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 designed to better serve medical cannabis patients’ needs and enhance the patient 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™): 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.

SOURCE Avicanna Inc .

Stay Connected For more information about Avicanna, visit our website or contact Ivana Maric by email at ir@avicanna.com.

Cautionary Note Regarding Forward-Looking Information and Statements This news release contains “forward-looking information” within the meaning of applicable securities laws. Forward-looking information contained in this news release may be identified by the use of words such as, “may”, “would”, “could”, “will”, “likely”, “expect”, “anticipate”, “believe”, “intend”, “plan”, “forecast”, “project”, “estimate”, “outlook” and other similar expressions. Forward-looking information contained in this news release includes, without limitation, statements with respect to the Company’s future business operations, the opinions or beliefs of management and future business goals. Although the Company believes that the expectations and assumptions on which such forward looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because the Company can give no assurance that they will prove to be correct. Actual results and developments may differ materially from those contemplated by these statements. Forward-looking information is subject to a variety of risks and uncertainties that could cause actual events or results to differ materially from those projected in the forward-looking information. Such risks and uncertainties include, but are not limited to current and future market conditions, including the market price of the common shares of the Company, and the risk factors set out in the Company’s annual information form dated March 31, 2026, filed with the Canadian securities regulators and available under the Company’s profile on SEDAR+ at www.sedarplus.ca. The statements in this news release are made as of the date of this release. The Company disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.

Globe Newswire

August 14, 2026 - 3:30 PM PDT

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