Avicanna sales flat in the third quarter, cash concerns persist
The drugmaker’s Colombian licensing deals helped drive a sevenfold jump in South American revenue.
Avicanna Inc. (TSX: AVCN) (OTCQX: AVCNF) managed to lift its margins while posting flat revenue in the third quarter as summer sales slowed.
Revenue reached C$6.3 million for the three months ended Sept. 30, a marginal 0.34% increase from C$6.25 million in the same period last year, according to the results Thursday.
The Toronto-based company saw its gross margin percentage climb to 57% during the quarter, up from 46% a year earlier, reflecting what CEO Aras Azadian called “progressive improvements” across operations.
“We are now better positioned to turn our attention towards our international growth initiatives,” Azadian said in a statement.
The company’s adjusted EBITDA loss narrowed to C$293,931 in the third quarter, marking a 38% improvement from a C$473,650 loss in the year-ago quarter. Operating expenses ticked up slightly to C$4.35 million versus C$4.21 million.
North American operations, which include the MyMedi.ca platform acquired from Shoppers Drug Mart last year, generated C$5.53 million in the third-quarter revenue. The company noted slower summer sales in August and September versus 2023. South American revenue, primarily from Colombian operations, jumped to C$740,328 from C$105,613 a year earlier.
During the third quarter, Avicanna fully repaid approximately C$1.3 million in outstanding principal on non-convertible debentures. However, liquidity remains tight with C$812,068 in cash as of quarter-end.
The company completed a private placement in August, raising net proceeds of C$1.93 million through the sale of units at C$0.30 each. The funds were earmarked for general working capital and the MyMedi.ca platform.
