Equity Raises:

• On July 16, 2025, Avicanna Inc. (AVCN: TSX)(AVCNF: OTC) closed a $ 0.73 million private placement of equity units.
• Each unit, sold at $ 0.183, consisted of one common share and 1/2 share of 3-year warrants with a 20% exercise premium. The warrants reduced the net share price to $0.166, an 11.68% discount to the preannouncement price.
• The issue implies a market cap of $19.4M and an enterprise value of $23.9M, representing a valuation of 1.35x annualized revenue.
• Avicanna has virtually no debt, but it continues to have marginal liquidity, even after adjusting for the proceeds of the issue. Pro forma free cash flow adjusted current ratio of .90x indicates a likely need for additional financing over the next twelve months.

Public vs. Private Raises: 

• All three capital raisers were public companies that trade in Canada (two on the TSX and one on the Cboe) and in the U.S. (on OTCQX, OTCQB, and Nasdaq)

Equity vs. Debt Cap Raises:

• Debt accounted for 97% of trailing 8-week capital raises. The ratio may go down if companies are able to utilize favorable regulatory-induced stock price increases to complete equity issues. However, equity pricing has remained stubbornly low while the cannabis debt capital markets have reopened.