Earnings call transcript: AbiCana Q4 2024 shows record revenue growth

AbiCana Inc. (ABCN) announced its financial results for the fourth quarter of 2024, reporting record revenues and a significant narrowing of its net loss. The company achieved a 52% increase in revenue year-over-year, reaching $25.5 million, while gross profits surged by 94% to $12.9 million. According to InvestingPro analysis, the company appears undervalued at current levels, with a "GOOD" overall financial health score. Despite these impressive figures, AbiCana’s stock experienced a 16.92% decline in after-hours trading, closing at $0.27 from a previous $0.325. This movement comes amid broader market volatility and investor reactions to the company’s strategic outlook and profitability targets.

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Key Takeaways

• AbiCana reported a 52% increase in revenue, reaching $25.5 million.
• Gross profits rose by 94% to $12.9 million, improving gross margins to 51%.
• The net loss was reduced to $1.4 million from $4.3 million in the previous year.
• Stock price fell 16.92% in after-hours trading following the earnings release.
• The company aims for profitability in 2025 with strategic international expansions.

Company Performance

AbiCana’s performance in Q4 2024 marked a significant improvement over the previous year, driven by robust growth in its MyMedi platform, which generated $21.7 million in gross revenue. The company maintains an impressive 5-year revenue CAGR of 173% and a healthy gross margin of 50.66%. The company has focused on reducing its working capital deficit and has successfully paid down all external debt, now operating with a moderate debt level of just $80,000. This financial discipline, alongside strong revenue growth, positions AbiCana favorably within the competitive Canadian medical cannabis market.

Financial Highlights

• Revenue: $25.5 million, up 52% year-over-year
• Gross profits: $12.9 million, up 94% year-over-year
• Gross margin: 51%, a 40% increase from 2023
• Net loss: $1.4 million, narrowed from $4.3 million in 2023
• Working capital deficit reduced from $3.9 million to $1.6 million

Market Reaction

Following the earnings announcement, AbiCana’s stock dropped 16.92% in after-hours trading. The stock’s current price of $0.18 represents a 43% decline from its 52-week high of $0.40 but sits 17% above its 52-week low of $0.14. InvestingPro data shows analyst consensus remains strongly positive, with a "Buy" recommendation despite recent market volatility. This decline reflects investor concerns over the company’s ability to achieve its profitability targets amid broader market uncertainties.

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Outlook & Guidance

AbiCana is targeting profitability in 2025, with plans to expand its international operations, particularly in Europe. InvestingPro analysts forecast positive earnings per share of $0.02 for FY2025, supporting management’s profitability timeline. The company is also preparing to advance its pharmaceutical pipeline and explore potential strategic exits or scaling opportunities within the next two to three years. The upcoming launch of Trunarex in Colombia is expected to further bolster its market presence.

Executive Commentary

CEO Aras emphasized the company’s strategic focus, stating, "We believe we’re going to be able to achieve [profitability] as long as we have some marginal growth this year." He also highlighted the potential of the medical cannabis market globally, noting, "The potential of medical cannabis on its own globally is billions."

Risks and Challenges

• Market Volatility: Fluctuations in the broader market could impact investor sentiment and stock performance.
• Regulatory Environment: Changes in cannabis regulations could affect market dynamics and company operations.
• Profitability Targets: Achieving profitability by 2025 requires sustained growth and effective cost management.
• International Expansion: Entering new markets involves risks related to local competition and regulatory compliance.
• Supply Chain Stability: Ensuring a stable supply chain is crucial for maintaining product availability and quality.

Q&A

During the earnings call, analysts inquired about the company’s strategic initiatives and profitability timeline. AbiCana confirmed the exit of David Nixon/EI Ventures from equity holdings and reiterated confidence in achieving profitability by 2025. The planned launch of Trunarex in Colombia and potential collaborations with ASPEIA in medical research were also discussed, highlighting the company’s forward-looking strategies.

Full transcript - Avicanna Inc (AVCN) Q4 2024:

Aras, CEO, AbiCana: So good morning, everyone.

Thank you for joining our 2024 earnings and corporate update. I’m joined here with Phil Cardella, who’s our CFO. And together, we’ll be providing an overview of our 2024 results, a brief look into the future. And at the end of the presentation, we’ll leave some time to take direct questions, from the audience as well. I’ll now hand it over to Phil to provide a brief administrative note.

Phil Cardella, CFO, AbiCana: Thanks, Aras. Before we begin, just a quick disclaimer. We may refer to forward looking statements that are subject to risks and uncertainties that may differ from the actual results. We list risk, uncertainties, and other factors that may cause our results to differ materially on slide two. These statements are based upon current information, beliefs, and assumptions, and we disclaim any obligation to update them except where required by law.

Although we believe the current information, beliefs, and assumptions underlying these forward looking statements are reasonable, they may prove to be incorrect. Given these risks, uncertainties, and assumptions, you should not place undue reliance on forward looking statements. We cannot guarantee future results, events, levels of activities, performance, or achievements. We may also refer to non IFRS measures, the reconciliations as well as additional information as to risks, uncertainties, and other factors we may face may be found in our financial statements, management’s discussion analysis, and our annual information form, all of which was filed on 04/11/2025, and may be available on SEDAR plus sedar plus dot c a. I will now turn the call over to Aras to begin the presentation.

Aras, CEO, AbiCana: Thank you, Phil. We are pro we’re proud to report our most successful year to date. This was marked by financial results, continued advancements our commercial platform, but also in our R and D and clinical programs that we’ve been able to reinvest, and dedicate resources to. In 2024, we strengthened our financial foundation. We achieved what is near self sufficiency and have established a solid basis for growth, international expansion, and something that’s very exciting to us is innovation.

We achieved record revenues, and Phil will dive into the financials in in deeper levels, but 25,500,000.0, which is a 52% growth from previous year, and we actually achieved our highest ever quarter in q four twenty twenty four. Our gross profits recorded to date were 12,900,000.0, which represents a 94% increase from the previous years. Our gross margins have risen to 51% during 2024, which is a 40% increase from 2023. The improvement in gross margins attributed to optimization efforts and increased licensing and service revenue, but I believe it also counts as a very good example of the differentiation between AbiCana and other companies within the cannabinoid space. Our adjusted EBITDA and annual EBITDA improvements improved by 68% from 2023.

We narrowed our loss to about 1,400,000.0 in 2024 as compared to 4,300,000.0 in 2023. In 2024, overall, we made significant strides in strengthening our commercial platform, both domestically and internationally, which we will expand on. More importantly, it was our most progressive year to date in terms of research and development. We achieved meaningful advancements in our pharmaceutical pipeline, including our first pharmaceutical approval with Trunerx in Colombia under Abikena LATAM. We made advancements in our r and d pipeline where we delivered positive clinical results that can now set the stage for our pharmaceutical development, and we further fortified intellectual property with several patents that were issued.

All of this, I will elaborate further as we go on. In terms of Canada, which continues to be our primary focus and strategic market, it’s important that we’ve successfully established our scientific and commercial platform, and we firmly believe that the progress and insights gained in Canada do serve as a proof of concept for a future scale up in Canada, but also internationalization. Over the past nine years, our r and d clinical programs have conducted were conducted exclusively in Canada with some of the most important academic and clinical institutions, leveraging off of the regulatory framework in Canada where we are able to conduct such research. Our consistent focus has resulted in what we consider to be an industry leading scientific platform. This is supported by robust portfolio of products, many of which are commercial, patents, and continued investments and advancements in our advanced bay evidence based approach to cannabinoid based medicine.

In parallel, over the last three years, we’ve built out our commercial infrastructure in Canada. This includes a portfolio of what is now 40 commercial SKUs in the Canadian market. These are proprietary unique formulations that Evican has developed. This platform operates as an asset light model, meaning we are actually not manufacturing any of the products ourselves, but we’re leveraging off what is 10 strategic manufacturing agreements in Canada through licensed producers. In Canada, we continue to demonstrate growth in product sales, active SKUs, commercial listings across adult use in in retail, and our commercial listings to date have now increased to about a 40, 90 six of which are across seven different medical platforms, including MyMedi.

In 2024, we executed the first full year of this synergistic model of Abikenna’s MyMediflat4 plus Rofido, which I believe to be one of the the most complete packages of medical cannabis today. This includes proprietary formulations from Rofido, which I will expand on, our online medical platform, which is essentially a pharmacy and a patient support program, and ongoing medical education for the medical community. I’ll dive into RoFido. This is our our our flagship brand of medical products. This is a key point or focus for the Canadian operations.

So Roe Fido Line has undergone extensive r and d, clinical development, preclinical development validation to deliver an optimized experience for patients while meeting quality and consistency standards that health care practitioners and patients should demand and and want. These advanced formulations span between various ratios of CBD, CBG, and THC and are offered in various delivery formats, including oil drops, sublingual sprays, topical gels, creams, capsules, and edibles. These various drug delivery systems are then better designed for various needs of the patients. What you will notice is that none of these formulations are inhalable. So this is contrary to the expectations or the the the norm within the cannabis industry.

In addition to being available on MyMedi platform, the MyMedi the the Rolfyto formulations are also now available to other medical platforms within Canada, but also are the first brand to be available in major Canadian hospitals. This first in kind initiative enables health care providers to access dedicated and educated training platform products, but also provide patients personalized support and on online, guidance through their treatment journey. Providing access to these standardized formulations across both medical clinical community setting has generated meaningful feedback from our patients, but also from the health care practitioners. This has also allowed us to generate real world evidence and insights into validating the approach or formulations, but also giving us guidelines towards our pharmaceutical pipeline, which we believe we could further invest in. This is really bridging the gap between cannabinoid based medicine and the traditional pharmaceutical development that we always envisioned.

In 02/2023, we successfully launched mymedy.ca, which is our medical cannabis platform. This was acquired or this was completed through an acquisition from Shoppers Drug Mart in their medical cannabis division called Medical Cannabis by Shoppers. This platform is operated by Northern Green Canada in Canada and is now established within the entire nation of Canada as a nationwide platform. MyMedis positioned as a leader within the Canadian medical cannabis sector. Together with Northern Green’s help, we’ve built a comprehensive patient support, comprehensive patient centric platform that offers proprietary products, robust patient support programs, and a growing presence within the medical community.

Throughout 2024, we focus on further enhancing the platform across several areas. We expanded and optimized our product portfolio. We are now working with 20 different licensed producers and have about have over 50 brands within the platform. We’ve enhanced our patient support and customer service. This is with emphasis on education, onboarding, harm reduction, and insurance navigation.

Over 70% of our patients are now, relying on insurance coverage for their product sales. We’ve advanced our medical affairs initiatives, which is laying the foundation for expanded physician facing programs that we will expand within 2025, and I will allude to some of that during the call today as well. And we’ve improved the financial aspects of the platform. We’ve improved margins. We’ve we’ve we’ve had cost reduction initiatives to bring the platform into the much most efficient state it’s ever been.

During 2024, MyMedi generated $21,700,000 of gross revenue. This includes about 85,000 units of AbiCana’s own proprietary products that were also directly sold to patients. So the results reflect the platform’s strong adoption and underscore central role within the Canadian commercial strategy for AbiCana, but also the role and need for medical cannabis as a comprehensive package within the Canadian population. A really important role for us in terms of the scale and growth of MyMedie, our own vision within the cannabinoid industry, but also what we intend to do internationally is medical affairs. I I truly believe this has not been conducted in a full comprehensive way by by anyone yet in Canada, so I’ll speak to a little bit of about some of our our efforts.

Our medical affairs division plays a critical role in advancing cannabinoid based medicine through education, training, and clinical support. We’ve established a dedicated medical affairs team and platform focused on the Canadian medical community and scientific community with the objective of bridging the gap between research and clinical applications. Our efforts include collaborations with academic institutions, research organizations, clinical institutions to generate data and expand scientific understanding for medical cannabis or cannabinoid based medicine. Key efforts today include health care provider clinic and hospital outreach with tailored education and training programs, development and dissemination of harm reduction strategies for both health care professionals and patients, support for observational real world evidence studies, which we’re conducting through MyMEDI, several of which we’ve announced and we will continue to do so, and I will spend a couple of minutes on today, and then strategic collaborations with patient advocacy groups to support evidence driven and a full, again, comprehensive medical cannabis care program to potentially enhance patient outcomes. In 2024, we continue to fulfill our mission of enhancing education across Canadian health care system.

Our medical affairs team engaged with thousands of health care professionals through various initiatives, including our flagship symposium on cannabinoid based medicine. The twenty twenty four symposium was an absolute success. We we convened leading clinicians, researchers, and then shared the latest scientific evidence, clinical practices, and collaborative opportunities in in what was, again, a very successful event. I’m happy to discuss that we’re going to have our twenty twenty five symposium. So we’re proud to announce the 2020 ’5, which will be our fifth annual symposium that’s going to also take place in Mars Discovery District in Toronto.

This will place take place in June 6. Some of the the viewers today can can join virtually. This is open strictly to health care professionals and researchers, in in at the space, and the event will feature distinguished lineup of Canadian and international speakers, including key opinion leaders, clinicians, scientists, academic researchers, and and key opinion and and other Canadian researchers at the event. The agenda will cover a wide range of topics from emerging clinical evidence, but also the practical applications of cannabinoid based medicine and patient care within Canada. A quick update and look into our international expansion.

So internationally, we continue to focus on operations and development of our, of advancements of our strategic product candidates, including our pharmaceutical pipeline, as we believe the emerging market and the opportunities within the global marketplace are going to provide opportunities for us to scale and, again, internationalize what we’ve successfully implemented in Canada. We’ve leveraged our regulatory expertise and to date have completed transactions in 22 international markets. This is quite difficult. As in many of these markets, we’ve been the first to do so. So we’ve been able to navigate complex frameworks, to understand the regulatory landscape and complete these transactions.

Our internationals operation our our international operations are also focusing on manufacturing commercialization of a particular proprietary products, including our cosmetic topicals, but also Trunarex, which received its marketing authorization from Colombia in early twenty twenty four. Trunarex, which is approved, under the Enviva, which is the the Colombian regulatory agency, is expected to launch this year in Colombia and expand into its other South American markets. Churrex is not approved by Health Canada, but it is approved again by Enviva for Lennox Gastaut Gervais syndrome, which are catastrophic epilepsy conditions similar to Epidiolex. We’re also continuing to expand our active ingredient business. So Santa Marta Golden Hemp, which is our majority owned subsidiary, it has historically been producing active pharmaceutical ingredients, including CBD, CBG, and THC, which been exported to various markets.

In 2024, we actually made substantial improvements and advancements in agronomy and post harvest infrastructure and capabilities as well. This has now enabled us to expand our Arias branded portfolio of API to include premium, organic, and sustainable flour as well, which is now an emerging opportunity within the European market and Australia. So we really look forward to to to gen to having this business also turn into its own profit center, really, in addition to being Avicana’s supply chain. In terms of r and d, with eight years plus of R and D preclinical and clinical development of cannabinoids, Avocado has a history and an established scientific platform that we continue to develop. Our pharmaceutical pipeline, which comprises of a range of indication specific drug candidates and proprietary formulations that are in various stages of development and regulatory registration, are are demonstrated here in the slide, and I will I will allude to a few of these.

These drug candidates are strategically designed to address unmet medical needs in key therapeutic areas, including neurology, mood disorders such as depression, sleep disorders, and and also dermatological conditions. It’s important to note we’re learning a lot from Rophyto products within our platform and the patient population of mymedi.ca to help us really prioritize and guide our clinical pipeline. Our development efforts are underpinned by a robust r and d platform and, as I mentioned, complemented by real world evidence. This is to help us inform in decision making and validate validate our therapeutic approach. Several of these preparations are currently progressing through submission application registration phase in in Latin America, more specifically Trunarex, where the regulatory infrastructure allows that.

Some of the key developments within 2024 in terms of our R and D clinical platform include the real world evidence study that we’ve initiated for Mai Medhi through the Canadian Consortium of Investigation, CCIC. This is a 1,000 patient study that’s that’s led by doctor Hans Clark, who’s the president of the Canadian Pain Society. We also completed a dermatological condition study at SickKids, a clinical study that evaluated our three percent CBD topical in patients with EB or epidermolysis bullosa, which is an orphan disease. This was led by doctor Elena Pope, who’s head of dermatologist at SickKids. The the early results showed notable improvements in wound healing, which is a major endpoint that we were looking for in that study.

We also completed an observational study on on inflammatory pain. This was a real world study where we assess our proprietary CBD and CBG gel. We had, again, positive improvements in outcomes reported across pain, physical function, but also daily activity domains. We also had significant improvements within our IP. We were able to obtain two US patents from the US patent and trademark office for two of our proprietary formulations, including our deep penetrating, topical formulation and the second one for our SEDS self emulsifying drug delivery system, which is broad and covers a range from our oral formulations that include liquid drops, our SETS capsules, and now moving into SETS powders.

I’ll now move it over transfer it over to Phil to provide an update on our financials.

Phil Cardella, CFO, AbiCana: Thanks, Aras. Good morning, everyone. I’m happy to provide an update on the financial results and improvements during 2024. As discussed earlier, 2024 has been a great year for the company with record revenues, margins, and record low net loss. We finished the year with revenue of 25,500,000.0, an increase of 52% over 2023 revenue.

The majority of our revenue has come from the success of the MyMedi platform, which generated revenue of approximately 21,000,000 in 2024 compared to approximately $99,000,000 in the previous year. In addition, the company entered into a multiple strategic licensing IP and supply agreements providing exclusive rights to sell our products in specific markets as well as joint projects to develop and market new products. These agreements brought in licensing and service revenue of approximately 2,400,000.0 in 2024, a large improvement from 530,000 in 2023. Our gross profit was 12,900,000.0 in 2024, representing a gross profit margin of 51, a substantial increase from our 2023 gross profit margin of 40%. Our increase our increased growth margin is supported through our large increase in service revenue as well as management’s efforts to renegotiate supplier contracts and identify cost saving alternatives where available.

In addition, the company continues to increase the quantity of our own in house products sold on the MyMedie platform. Currently, sales of Avicana products on MyMedie make up about 17% of all sales. The company has driven cost control measures in an effort to improve earnings and reduce reliance on external financing for operations. During the year, operating expenses increased by only 17% over 2023. Given that this is the company’s first full year operating the MyMedie platform, the increases were directly related to those operations, with the largest increases being in salaries and marketing expenses.

The combination of these improvements has resulted in an improvement to our adjusted EBITDA loss of of 1,400,000.0, pending a substantial increase from adjusted EBITDA of 4,300,000.0 in 2023. In addition to improvements in our income statement, we continue to manage and build our cash flow and working capital position. In 2024, we have substantially decreased our liabilities by continuing to pay down aged vendor payables and external debt. As a result, we have decreased our accounts payable by over $1,000,000 and paid down all external debt during the year. Our working capital deficit has fallen from 3,900,000.0 at the end of twenty twenty three to 1,600,000.0 at the end of this year.

The company produced positive results in 2024, and we continue to see additional opportunities to grow our revenue and scale our business to further improve our financials and work towards a path of greater profitability. Finally, I wanted to address the delay in our 2024 filings. As disclosed in the press release issued on 03/31/2025, we were unfortunately unable to file our audited financial statements by the statutory deadline due to internal jurisdictional licensing matter with our auditors. Despite being substantially complete with our audit and our quality review, our auditors could not issue the audit report in Ontario until their licensing requirements were met. And to facilitate the additional time needed to resolve this matter, Abikenna applied for a management cease trade order, which was granted on 04/04/2025 by the OSC.

On April 11, the company’s auditors were able to resolve the internal licensing requirement and issued the signed audit report. The MCTO was lifted on April 16. I’d like to thank our auditors and my team for their speed and diligence in resolving this matter. Missing a crucial filing deadline is extremely stressful, and our teams dealt with the matter professionally and very swiftly. Thank you very much.

I’ll pass it back to Aras.

Aras, CEO, AbiCana: Thank you, Phil. As we look ahead into 2025, we are now operating from a position of strength. Some some of the the folks in the audience have been with us for many years, and they’ve seen the consistent evolution of the company. So I like to I I personally believe we’re we’re operating from the position of strength and stability. This gives us the opportunity to think strategically, allocate resources strategically, and continue to innovate.

I believe that as we progress towards our clinical evidence and pharmaceutical pipeline and the scale of our business, we’re gonna be able to do this at a at a much more comfortable level, but we’ll be able to do that in a much more productive way as well. In Canada, we’re committed to our leadership within the cannabinoid based medicine, and we’re deepening our engagement with the medical community. We believe our work with patient advocacy groups, payers, the medical community will allow us to scale the MyMEDI plus Rophyto combination within the Canadian market and believe that we can continue to advance cannabinoid based medicine into really the standard of care. Internationally, we’re positioned to replicate and integrate our business model globally into the emerging markets with particular emphasis at least at an earlier stage within the European market. Importantly, after years of focused r and d and generation of meaningful real evidence, we are now poised to also advance our pharmaceutical pipeline and initiate next phase of pharmaceutical development, which I think are going to be key as we build our strategy to ultimately list in The United States.

I think that’s a big part of our plan to prepare for that this year, and the reason for that is to have access to, really an investment community and and a marketplace that is more open to the pharmaceutical positioning and the pharmaceutical DNA of this company. So overall, very exciting 2025. Appreciate the consistent and ongoing support of many of our shareholders as we navigate the complexities of, you know, being associated to the cannabis industry. But very, very successful year, and we believe 2025 will be bigger. Like to open it up for questions, if that’s allowed within this platform.

Ioannis, or

Ioannis, Moderator/Host, AbiCana: Hello, everyone. Yeah. Apologies. I think we’re having a few technical difficulties. If you can please raise your hand, we’ll be able to unmute you so that you can ask your question.

Hey, Ross. We’ve got a question from Lauren Gould.

Aras, CEO, AbiCana: Good.

Ioannis, Moderator/Host, AbiCana: Lauren, please go ahead. I think you’re on mute. You just have to unmute yourself.

Lauren Gould, Shareholder/Analyst: Yeah. Excuse me. Yes. Good morning. Thank you for allowing questions.

For some years now, we’ve come in a a friend of mine and I have come in through what I’ll call the David Nixon orthogonal pipeline. And we were given to understand that there is some sort of percentage of ownership within Avocado. And no matter how I’ve asked a question, I’ve never received an answer. And so I’m wondering if you can address that, please. We’d like to know what percentage of our shares we own.

So so David Nixon address at all, please.

Aras, CEO, AbiCana: Sure. I’m happy to address. So David Nixon and EI Ventures were investors of Avicana a few years ago. There were some announcements that we made with respect to that investment. From what I know, they’ve liquidated their entire position.

So this was this they they in the marketplace, they liquidated their entire position, and they don’t have any any equity or warrants within the Avicana, cap structure today. So this is something I think you would have to take up with EI Ventures, David Nixon, that entire, sort of ecosystem.

Ioannis, Moderator/Host, AbiCana: Are there any more questions? We’ve got one from Barbara Hickson.

Aras, CEO, AbiCana: Yeah. You have to unmute, Barbara.

Ioannis, Moderator/Host, AbiCana: Yeah. I’m assuming you see profitability in 2025?

Aras, CEO, AbiCana: Hi, Barbara. Yes. We’re quite confident within that. I mean, Barbara, you’ve with us for several years. I’m sure you’ve noticed the progression and the advancements we’ve made in terms of the revenue, margins and gross profits, but also from an EBITDA loss perspective, we’re we’re really close.

As long as we have some marginal growth this year, which we expect, we believe we’re going to be able to achieve that. So I think in terms of optimization and cost structures, we’ve we’ve completed what what what can be done. So, really, this year, the focus is on scale and growth, and we we do believe we’re going to achieve that. K.

Ioannis, Moderator/Host, AbiCana: We’ve got one more from Mark Merritt. There we go. Good morning, Aras.

Aras, CEO, AbiCana: Hey, Mark.

Ioannis, Moderator/Host, AbiCana: I’m curious if you can talk at all about the timing of Trunarex in Central America and South America this year.

Aras, CEO, AbiCana: Yeah. We’re we’re actually in production. So as expected, things tend to take a little bit longer when you’re dealing with regulatory agencies, but we’re actually in production. We’re going to be producing and launching a product, sometime during early q three. The initial launch will be in Colombia, but we’re also in discussions with several other regulatory agencies to to expand that.

I think Trunarex has really an interesting opportunity considering the size of or size of the market opportunity that we’ve seen, for example, with Epidiolex in The US. Trunarex is really designed to be sort of the potentially the similar solution with the developing markets. It’s going to take time, but, you know, epilepsy, especially pediatric epilepsy, especially catastrophic pediatric epilepsy is a massive market opportunity and something that I think we should be able to to help various populations and get the product out to. So I think this year will be more of a soft launch within the Colombian market, for us to learn more and have more of a proof of concept and then from there on expanding into other, initially South American markets, but I do also see the potential for it to enter other developing markets as well.

Ioannis, Moderator/Host, AbiCana: And, Aras, we’ve got one more from David Gordon.

Aras, CEO, AbiCana: Hi, David. You’re on mute, David.

David Gordon, Shareholder/Analyst: Thanks. I I missed the I missed the symbol. Apologies if you discussed this earlier, I missed it. But I’m curious about your work with Victoria Fertin and, you know, by by extension, PMI.

Aras, CEO, AbiCana: Yeah. So, you know, we at this stage, we’re sort of, limited in terms of disclosure, but we so far have initiated a collaboration with them within the medical affairs part in Canada. So we’re conducting some research, some medical and clinical collaborations, but, really, they’re also launched their product, which is a CBD format of of tablets within the MyMedI platform where they’re assessing and learning from sort of the the experience in the Canadian marketplace. There are other strategic discussions and initiatives that we will be, sort of expanding and providing more insight as as the year goes on. But, yeah, they are now, the name is ASPEIA.

That’s the name of the company. They just rebranded, but they are a sub of of PMI.

David Gordon, Shareholder/Analyst: Thank you.

Ioannis, Moderator/Host, AbiCana: There’s also another question. Yep.

Aras, CEO, AbiCana: I I I believe you’re on mute.

Ioannis, Moderator/Host, AbiCana: Maybe we can come back to this one for now. K. There’s also one one more question. Oh, maybe not. Oh, there’s one more question from Barbara.

Aravaz, if you were to put your crystal ball on, what would you see for the company five years from now?

Aras, CEO, AbiCana: Oof. That’s a tough one, Barbara. As you know, things are complex within this industry. I believe that because we’re somewhat stigmatized because of the cannabinoid base or, let’s say, association that we will, there’s really two paths. There’s a path that we make maintain on our own.

You know, we we continue to grow. We continue to scale. We continue to internationalize. And I think over the last nine years, we’ve built really a platform that demonstrates the potential utility of cannabinoid based medicine when conducted the right way with proprietary, you know, advanced drug delivery systems and evidence and patient support. So if we stay on our own, I really do see this scaling and internationalizing.

And if we’re generating, you know, twenty five, thirty million dollars in Canada from medical at an early stage with very little investment in r and d, I think the potential of medical cannabis on its own globally is is billions. And then in parallel with that, taking pharmaceutical pipeline, you know, candidates and taking those into into into real drug delivery, real drug development is is massive. And that’s us staying on our own. So I do believe that there’s a potential for this company to be a billion dollar company. But there’s also a world in which we are seeing Fortune 100 companies enter.

You know, we’re we’re starting to work and collaborate with several. There’s probably a world in which within the next two to three years, one of these companies, tries to acquire AbiCanada. So I think there’s an opportunity for for less than five years from now, a meaningful exit, or meaningful opportunity for an exit for for the shareholders of the company. And that’ll likely that I believe is somewhere within the next twenty four months as well. But I think that that we’re we’re we’ve gone over the the hill.

You know, we feel like the next few years for us to scale this is going to be, substantially more exciting and less difficult as than what the last few years has been. But I do see this again either you’re you’ve, you know, exited to a pharmaceutical company for a meaningful valuation in the next three years, or we’re really scaling this thing into into into a multinational, potentially multibillion dollar opportunity.

Ioannis, Moderator/Host, AbiCana: I think we might have time for one more question. This individual who’s trying to speak as well.

Aras, CEO, AbiCana: Oh, the the hand wave is gone, but the the mute’s still there.

Ioannis, Moderator/Host, AbiCana: I think that’s it.

Aras, CEO, AbiCana: Alright, folks. Thank you very much. Ivana, thank you for hosting. Phil, thank you for joining. Everyone, thank you very much for your time.

If you have any further questions, most of you know how to reach me. I’m happy to answer more. And, yeah, looking forward to exciting 2025.

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