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Avicanna Inc (TSE:AVCN)
:AVCN
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Avicanna (AVCN) AI Stock Analysis

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TSE:AVCN

Avicanna

(OTC:AVCN)

Rating:50Neutral
Price Target:
C$0.50
▲(78.57%Upside)
The overall stock score reflects Avicanna's strong corporate progress and revenue growth, offset by financial instability and valuation concerns. The recent profitability milestone and positive corporate developments signal potential, but financial restructuring and improved cash flow are necessary for sustainable growth.

Avicanna (AVCN) vs. iShares MSCI Canada ETF (EWC)

Avicanna Business Overview & Revenue Model

Company DescriptionAvicanna Inc., a commercial-stage biopharmaceutical company, engages in the research and development of evidence-based products for consumer medical and pharmaceutical segments worldwide. The company collaborates with Canadian academic and medical institutions. Its scientific platform includes research and development, and clinical development that leads to the commercialization of approximately twenty products across four main market segments. The company provides medical and wellness products containing cannabidiol, cannabigerol, and tetrahydrocannabinol under the RHO Phyto brand; functional CBD consumer derma-cosmetic and topical products under the Pura H&W and Pura Earth brand names; and cannabis dried flowers, standardized seeds, full spectrum extracts, cannabinoid distillates, isolated cannabinoids, and bulk formulations derived from hemp and cannabis cultivars under the Aureus brand. It also develops pharmaceutical products for epidermolysis bullosa, dermatology, chronic pain, and various neurological disorders. The company has research collaboration with Dr. Christine Allen'sResearch Group for the development of a cannabinoid-based treatment for lung inflammation associated with COVID19. Avicanna Inc. was incorporated in 2016 and is headquartered in Toronto, Canada.
How the Company Makes MoneyAvicanna generates revenue through the sale of its cannabinoid-based products, which include both prescription and over-the-counter formulations. The company's revenue streams are primarily derived from its pharmaceutical products, which are sold through partnerships with healthcare providers and distributors, and its consumer products, which are marketed directly to consumers through various retail and online channels. Avicanna also engages in strategic partnerships and collaborations with other companies in the biotechnology and cannabis sectors to expand its product offerings and access new markets, contributing to its revenue growth.

Avicanna Earnings Call Summary

Earnings Call Date:May 14, 2025
(Q4-2024)
|
% Change Since: 16.67%|
Next Earnings Date:Aug 18, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong revenue growth, successful platform performance, and significant advancements in R&D and international expansion. However, challenges such as a filing delay and continued net loss were noted. Overall, the positive achievements outweigh the lowlights.
Q4-2024 Updates
Positive Updates
Record Revenue Growth
The company achieved record revenues of $25.5 million, representing a 52% growth from the previous year. Gross profits were $12.9 million, a 94% increase from the previous year, with gross margins rising to 51%, a 40% increase from 2023.
Successful MyMedi Platform Performance
The MyMedi platform generated $21.7 million of gross revenue, reflecting strong adoption and a central role within the Canadian commercial strategy.
R&D and Pharmaceutical Advancements
Significant progress in R&D, including the first pharmaceutical approval with Trunerox in Colombia and advancements in the pharmaceutical pipeline with positive clinical results.
International Expansion
Completed transactions in 22 international markets and plans for further expansion, including the upcoming launch of Trunerox in Colombia and other South American markets.
Improved Financial Position
Narrowed EBITDA loss to $1.4 million from $4.3 million in 2023. Decreased liabilities and improved working capital deficit from $3.9 million to $1.6 million.
Negative Updates
Filing Delay
The company experienced a delay in filing its 2024 financial statements due to an internal jurisdictional licensing issue with auditors, requiring a management cease trade order.
Continued Net Loss
Despite improvements, the company still reported a net loss of $1.4 million for the year.
Company Guidance
In the recent call, Avicanna provided a comprehensive overview of its 2024 financial performance and strategic initiatives. The company reported record revenues of $25.5 million, marking a 52% increase from the previous year, with the MyMedi platform contributing approximately $21 million. Gross profits reached $12.9 million, reflecting a 94% increase, and gross margins improved to 51% from 40% in 2023. The adjusted EBITDA loss narrowed significantly to $1.4 million from $4.3 million, indicating progress toward profitability. Avicanna also highlighted its achievements in research and development, including its first pharmaceutical approval in Colombia and advancements in its pharmaceutical pipeline. Looking ahead, the company aims for further international expansion and plans to enhance its position in the cannabinoid-based medicine market, with a strategic focus on the European market and potential listing in the United States.

Avicanna Financial Statement Overview

Summary
Avicanna displays strong revenue growth but faces significant challenges in profitability and financial stability, with negative profit margins and high financial leverage. Improving cash flow and restructuring debt are crucial for enhancing its financial health.
Income Statement
45
Neutral
Avicanna has shown significant revenue growth in recent years, with a TTM revenue of $25.46M compared to $16.79M in the previous year, indicating a strong growth trajectory. However, the company continues to operate at a loss with a negative net profit margin and negative EBIT and EBITDA margins, reflecting ongoing profitability challenges. The gross profit margin has improved, suggesting some operational efficiencies, but the negative net income highlights the need for cost management.
Balance Sheet
35
Negative
The balance sheet reveals a challenging financial position with negative stockholders' equity in recent periods, indicating potential solvency risks. The debt-to-equity ratio is not applicable due to negative equity, suggesting high financial leverage. The equity ratio is low, showing a high reliance on debt financing. These metrics highlight the need for capital restructuring to improve financial stability.
Cash Flow
40
Negative
The cash flow statement shows negative operating cash flow and free cash flow, reflecting cash outflows and potential liquidity challenges. Although the company has managed to secure financing, the negative free cash flow to net income ratio indicates inefficiencies in converting earnings into cash. The need for improving operational cash generation is crucial for future sustainability.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue25.46M16.79M4.05M3.27M1.57M
Gross Profit12.90M6.66M1.11M2.83M-570.00K
EBITDA-2.43M-7.36M-12.18M-15.13M-33.70M
Net Income-3.62M-8.74M-14.73M-16.77M-32.86M
Balance Sheet
Total Assets20.12M21.97M17.62M22.30M30.16M
Cash, Cash Equivalents and Short-Term Investments448.03K477.20K1.19M31.00K2.52M
Total Debt109.23K1.80M3.21M1.66M1.94M
Total Liabilities10.38M14.00M14.16M15.39M16.25M
Stockholders Equity2.31M-112.50K-383.56K1.15M6.02M
Cash Flow
Free Cash Flow-2.95M-1.96M-7.50M-12.45M-15.43M
Operating Cash Flow-2.55M-1.40M-7.44M-11.66M-13.97M
Investing Cash Flow-402.57K-3.05M810.24K760.83K-2.71M
Financing Cash Flow3.41M3.55M9.90M10.06M17.39M

Avicanna Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.28
Price Trends
50DMA
0.26
Positive
100DMA
0.27
Negative
200DMA
0.29
Negative
Market Momentum
MACD
<0.01
Negative
RSI
54.01
Neutral
STOCH
86.90
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:AVCN, the sentiment is Positive. The current price of 0.28 is above the 20-day moving average (MA) of 0.26, above the 50-day MA of 0.26, and below the 200-day MA of 0.29, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 54.01 is Neutral, neither overbought nor oversold. The STOCH value of 86.90 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:AVCN.

Avicanna Peers Comparison

Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
$44.56M-24.12%18.82%-9328.57%
68
Neutral
$57.67M4.2620.78%-15.44%
56
Neutral
$29.22M-2.68%29.78%68.83%
52
Neutral
$7.61B0.04-62.94%2.44%16.14%0.33%
51
Neutral
C$26.98M-16.22%16.24%46.47%
50
Neutral
C$30.20M-203.40%14.82%64.51%
44
Neutral
C$28.94M-31.24%44.21%21.93%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:AVCN
Avicanna
0.27
-0.07
-20.59%
TSE:LABS
MediPharm Labs
0.07
0.00
0.00%
TSE:DB
Decibel Cannabis Company
0.10
0.04
72.73%
TSE:ROMJ
Rubicon Organics
0.44
-0.04
-9.37%
TSE:VEXT
Vext Science
0.18
-0.06
-25.00%
TSE:GWAY
Greenway Greenhouse Cannabis Corp.
0.26
0.00
0.00%

Avicanna Corporate Events

Private Placements and FinancingBusiness Operations and Strategy
Avicanna Closes $1 Million Private Placement to Boost Operations
Positive
Jul 16, 2025

Avicanna Inc. has successfully closed a non-brokered private placement, raising $1,000,000 through the issuance of 4,000,000 units. The proceeds will be used for general working capital, administrative expenses, and further production and research efforts, potentially enhancing Avicanna’s operational capabilities and market position in the cannabinoid-based product industry.

Executive/Board ChangesShareholder Meetings
Avicanna Secures Board Election and Auditor Reappointment at AGM
Positive
Jun 30, 2025

Avicanna Inc. announced the successful election of all management’s nominees as directors at its Annual General Meeting. The company also secured the reappointment of its auditors, indicating stability and continuity in its operations. This development underscores Avicanna’s commitment to maintaining its strategic direction in the cannabinoid-based product market, potentially strengthening its position and reassuring stakeholders of its governance and operational consistency.

Business Operations and Strategy
Avicanna Sponsors Phase II Clinical Study on Osteoarthritis Pain
Positive
May 20, 2025

Avicanna Inc. has announced its sponsorship of a Phase II clinical study to evaluate the effectiveness of oral cannabis extracts for osteoarthritic pain. This multi-centre, blinded, randomized, placebo-controlled study, led by Dr. Hance Clarke at the University Health Network, aims to assess the feasibility of a larger trial. The study is funded by a Canadian Institutes of Health Research grant, with Avicanna providing its proprietary CBD and THC capsules. This initiative underscores Avicanna’s commitment to advancing cannabinoid-based therapeutics and could enhance its positioning in the medical cannabis industry.

Business Operations and StrategyFinancial Disclosures
Avicanna Achieves First Profitable Quarter in Q1 2025
Positive
May 15, 2025

Avicanna Inc. has reported its first profitable quarter in Q1 2025, marking a significant milestone driven by cost efficiencies and margin improvements. The company achieved a net income of $74,154 and comprehensive income of $876,092, with adjusted positive EBITDA of approximately $431,000. Despite a slight 2% decrease in revenue compared to Q1 2024, Avicanna expanded its Canadian portfolio and announced a collaboration with Aspeya to enhance medical cannabis access in Canada. This strategic focus positions Avicanna for further growth in Canadian operations, international expansion, and advancement of its R&D pipeline.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 22, 2025