Avicanna closes $500,000 private placement with pharma investor

Avicanna Inc. (TSX: AVCN) (OTCQX: AVCNF) has closed a non-brokered private placement raising $500,000, according to a press release from the cannabinoid-focused biopharmaceutical company.

The offering consisted of 3,333,334 units priced at $0.15 per unit. Each unit includes one common share and one-half of a common share purchase warrant. Each whole warrant allows the holder to purchase one additional common share at $0.20, expiring Aug. 18, 2029.

The investor is Michael W. Porter, Founder and Managing Partner at PG Equity Group I, LLC. Porter previously co-founded Covis Pharma Group, where he served as CEO. He currently serves as Executive Chairman of AltaNova Pharma Group AG and sits on several public and private company boards.

"Having spent my career building and investing in specialty-pharmaceutical and life-sciences platforms, I was impressed by Avicanna's scientific depth, pharmaceutical operating discipline and clear focus on patient outcomes," Porter said in the statement.

Avicanna said it intends to use the proceeds for general working capital, administrative expenses, production and manufacturing, and research and clinical development. The unit shares and warrants are subject to a four-month hold period under Canadian securities laws. The offering remains subject to approval from the Toronto Stock Exchange.

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