While Avicanna Inc.‘s (TSX: AVCN) (OTCQX: AVCNF) (FSE: 0NN) revenues this quarter are its best so far, the firm will need to raise more funds to keep operations going.
On Friday, the Canadian biopharmaceutical company released its third-quarter earnings for the three months ended Sept. 30, with gross revenue reaching a new record as Avicanna expands into new markets.
Sales went up 24 per cent since last quarter to $1 million from $0.8 million, with most revenue coming from the firm’s propriety products in the Canadian market.
Avicanna sold 27,041 units of its cannabis 2.0 products branded as RHO Phyto and Pura Earth, up 61 per cent from 16,767 units last quarter.
Net loss for the period was $2.6 million, down 3 per cent from $2.7 million in the last quarter and down 65 per cent year-over-year.
“We are proud to present the meaningful progress we have made across all divisions in what is evidently our most successful quarter to date. We have evolved the organization from R&D stage to a rapidly expanding and truly global commercial-stage company with several business units now generating revenue across several markets,” CEO Aras Azadian said in a statement.
“We have successfully established a strong footprint with our proprietary cannabis formulations in Canada across 3 channels including medical, clinical, and adult use, which is attributed to our scientific platform and evidence-based non-inhalation products.”
By the end of the period, the firm added eight more product listings in Canada, for 25 in all, and is selling in 12 international markets.
Cash on hand totalled $523,448 at the end of the period.
The firm said it will need to raise additional financing to conduct operations, product development and clinical research.
“Although [Avicanna] has been successful in the past in obtaining financing and it believes that it will continue to be successful, there is no assurance that it will be able to obtain adequate financing in the future or that such financing will be available on terms that are advantageous to the company. These material uncertainties may cast significant doubt as to the company’s ability to continue as a going concern.”
On Friday, company stock went up nearly 3 per cent to $0.77 on the Toronto Stock Exchange.
On Sept. 24, Aviacanna filed a provisional patent application in the U.S. for a cannabinoid formulation for reducing the incidence of seizures and sudden unexpected death in patients with epilepsy.