Release Date: April 22, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Avicanna Inc (AVCNF, Financial) reported record revenues of $25.5 million in 2024, marking a 52% growth from the previous year.
- The company's gross profit increased by 94% to $12.9 million, with gross margins rising to 51%, attributed to optimization efforts and increased licensing and service revenue.
- Avicanna Inc (AVCNF) achieved significant advancements in its pharmaceutical pipeline, including the first pharmaceutical approval with Trunerox in Colombia.
- The MyMedi platform generated $21.7 million in gross revenue, reflecting strong adoption and a central role in Avicanna's Canadian commercial strategy.
- The company has successfully expanded its international operations, completing transactions in 22 international markets and advancing its proprietary products like Trunerox and cosmetic topicals.
Negative Points
- Despite improvements, Avicanna Inc (AVCNF) reported an adjusted EBITDA loss of $1.4 million in 2024.
- Operating expenses increased by 17% over 2023, primarily due to the first full year of operating the MyMedi platform.
- The company faced a delay in its 2024 filings due to an internal jurisdictional licensing matter with its auditors.
- Avicanna Inc (AVCNF) continues to operate with a working capital deficit, although it has decreased from $3.9 million to $1.6 million.
- The launch of Trunerox in Central and South America is expected to take longer due to regulatory challenges, with a soft launch planned for early Q3 in Colombia.
Q & A Highlights
Q: Can you clarify the ownership status of David Nikzad and EI Ventures in Avicanna?
A: David Nikzad and EI Ventures were investors in Avicanna a few years ago. They have since liquidated their entire position and currently hold no equity or warrants in Avicanna's capital structure. This matter should be addressed with EI Ventures and David Nikzad directly. - Aras Azadian, CEO
Q: Do you anticipate Avicanna achieving profitability in 2025?
A: Yes, we are confident about achieving profitability in 2025. We've made significant progress in revenue, margins, and gross profits. With expected marginal growth this year, we believe we can achieve profitability. Our focus is on scaling and growth. - Aras Azadian, CEO
Q: What is the timeline for the launch of Trunerox in Central and South America?
A: We are currently in production and expect to launch Trunerox in early Q3, starting in Colombia. We are also in discussions with other regulatory agencies to expand into additional South American markets. This year will serve as a soft launch to learn and establish proof of concept. - Aras Azadian, CEO
Q: Can you provide details on your collaboration with Victoria Furton and PMI?
A: We have initiated a collaboration with them in the medical affairs sector in Canada, conducting research and clinical collaborations. Their product, a CBD tablet, is available on the MyMedi platform. Further strategic initiatives will be disclosed as the year progresses. - Aras Azadian, CEO
Q: What is your vision for Avicanna in the next five years?
A: We see two potential paths: continuing to grow and internationalize independently, potentially becoming a multibillion-dollar company, or being acquired by a Fortune 100 company. We anticipate a meaningful exit opportunity for shareholders within the next 24 months. - Aras Azadian, CEO
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
