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NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF UNITED STATES SECURITIES LAWS

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TORONTO, Oct. 29, 2026 (GLOBE NEWSWIRE) — Avicanna Inc. (“Avicanna” or “Company”) (TSX: AVCN) (OTCQB: AVCNF) (FSE: 0NN), a biopharmaceutical company focused on the development, manufacturing and commercialization of plant-derived cannabinoid-based products, is pleased to announced that it has closed a non-brokered private placement (“Offering”) of 2,000 non-convertible debenture units of the Company (“Units”) at a price of $1,000 per Unit for aggregate gross proceeds of approximately $2,000,000. Each Unit consists of an aggregate of $1,000 principal amount of unsecured non-convertible debentures (“Debentures”) and 2,000 common share purchase warrants (each, a “Warrant”). The Debentures will mature one year following the closing of the Offering (“Maturity Date”).

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“We have made progress, and continue to make progress, in developing, commercializing and optimizing our diversified portfolio of products through various platforms and business units. This financing provides additional working capital and financial flexibility to support our continued growth, strengthening our domestic and international commercial and operational endeavors, and expanding our roadmap for the future, while at the same time maintaining our focus on operational efficiencies and disciplined capital allocation” stated Aras Azadian, CEO of Avicanna.

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The Debentures will bear interest at a rate of 13% per annum, payable monthly. Company paid each subscriber a one-time administrative fee equal to 2% of the aggregate principal amount of the Debentures subscribed for. Each Warrant is exercisable into one common share in the capital of the Company (each a “Warrant Share”) at a price of $0.20 per share for a period of three years from the closing of the Offering. The Company shall have the right at any time and from time to time during the period commencing on the date that is six months from the closing of the Offering and the Maturity Date, to repay up to 100% of the principal amount of the then outstanding Debentures. The Debentures will rank pari passu in right of payment of principal with all other Debentures issued under the Offering. The Debentures will initially be unsecured obligations of the Company, and the Company has agreed to enter into a general security agreement with the holders of Debentures, granting a security interest to secure the obligations of the Company under the Debentures, on or before the date that is one month following the closing of the Offering. The Company intends to use the proceeds from the Offering for general working capital purposes, general and administrative expenses, expenditures related to production and manufacturing, and research and clinical development.

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All securities issued under the Offering, including securities issuable on exercise thereof, are subject to a hold period expiring on March 1, 2027.

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The Offering is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the Toronto Stock Exchange (the “TSX”).

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About Avicanna Inc
Avicanna is a commercial-stage international biopharmaceutical company focused on the advancement and commercialization of cannabinoid-based products and formulations for the global medical and pharmaceutical market segments. Avicanna has an established scientific platform including R&D and clinical development leading to the commercialization of more than thirty proprietary, evidence-based finished products and supporting four commercial stage business pillars.

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