Avicanna (AVCN) AI Stock Analysis

• Market Cap: C$30.20M
• Dividend Yield: N/A
• Average Volume (3M): 83.44K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.22
• Revenue Growth: 14.82%
• EPS Growth: 64.51%
• Country: CA
• Employees: 87
• Sector: Healthcare
• Sector Strength: 40
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): N/A
• Shares Outstanding: 111,860,725
• 10 Day Avg. Volume: 117,304
• 30 Day Avg. Volume: 83,445
• PEG Ratio: -0.16
• Price to Book (P/B): 10.60
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -9.29
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$0.49
• Price Target Upside: 76.14% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 50 Neutral
• 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 Business Overview & Revenue Model

Company Description

Avicanna 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 Money

Avicanna 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 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

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

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

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.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	25.46M	16.79M	4.05M	3.27M	1.57M
Gross Profit	12.90M	6.66M	1.11M	2.83M	-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 Assets	20.12M	21.97M	17.62M	22.30M	30.16M
Cash, Cash Equivalents and Short-Term Investments	448.03K	477.20K	1.19M	31.00K	2.52M
Total Debt	109.23K	1.80M	3.21M	1.66M	1.94M
Total Liabilities	10.38M	14.00M	14.16M	15.39M	16.25M
Stockholders Equity	2.31M	-112.50K	-383.56K	1.15M	6.02M
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	-3.05M	810.24K	760.83K	-2.71M
Financing Cash Flow	3.41M	3.55M	9.90M	10.06M	17.39M

Avicanna Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.28
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VEXT	68 Neutral	$44.56M	―	-24.12%	―	18.82%	-9328.57%
DB	68 Neutral	$57.67M	4.26	20.78%	―	-15.44%	―
ROMJ	56 Neutral	$29.22M	―	-2.68%	―	29.78%	68.83%
Sector *	52 Neutral	$7.61B	0.04	-62.94%	2.44%	16.14%	0.33%
LABS	51 Neutral	C$26.98M	―	-16.22%	―	16.24%	46.47%
AVCN	50 Neutral	C$30.20M	―	-203.40%	―	14.82%	64.51%
GWAY	44 Neutral	C$28.94M	―	-31.24%	―	44.21%	21.93%

Avicanna Corporate Events

Avicanna Closes $1 Million Private Placement to Boost Operations

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.

Avicanna Secures Board Election and Auditor Reappointment at AGM

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.

Avicanna Sponsors Phase II Clinical Study on Osteoarthritis Pain

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.

Avicanna Achieves First Profitable Quarter in Q1 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.