Avicanna Inc. (0NN.MU) Earnings Call Transcript & Summary

Well, good morning, everyone. Thank you for joining us for the year-end review and corporate update of Avicanna Inc. It's a pleasure to be hosting you this year. Giving you an update on another very exciting and progressive year. I'll be presenting this morning. My name is Aras Azadian, I'm the CEO and Founder of Avicanna Inc. I'm joined by Dr. Karolina Urban, who is leading our research and medical affairs, essentially scientific affairs here at Avicanna. We'll take about 25 minutes or so to provide a corporate update, and we'll cover a bunch of the -- a number of the topics that are included within various business pillars. And at the end, we'll save about 5 to 10 minutes for Q&A, which you can actually start adding your questions throughout the presentation in the tab below. So customary disclaimer notice regarding forward-looking statements. This will be all available, we'll provide the presentation to the attendees. Just a bit of an overview on Avicanna for some of you that may not be as familiar with the company or sort of its evolution. We started in 2016 originally as a pharmaceutical drug development and drug delivery company out here in Toronto in the MaRS Discovery District, part of a Johnson & Johnson incubator. We spent the first few years focused on pharmaceutical development. We had a number of drug candidates. And because we were taking a pharmaceutical pathway, we focus on proprietary drug delivery systems and patentable technologies that we can then take through clinical development. In 2021, we pivoted strategically to actually take some of these formulations and products into medical cannabis to generate revenue, to commercialize but also had the benefit of developing and earning insights related to medical cannabis throughout the process. Today, we have 4 commercial business pillars that we will expand on. This includes RHO Phyto, which is our medical finished products that are within the Canadian market and some international markets as a medical formulary. We have our MyMedi platform, which is a medical cannabis Complete Care platform. This includes patient support, medical affairs and delivering -- providing access to patients to medical cannabis in a structured way. Karolina will expand on that, and we'll talk about some of our medical affairs. Then there's our pharmaceutical pipeline. So a lot of what you see and a lot of the combination of really the first 2 business pillars is allowing us to still maintain our pharmaceutical pipeline, our pharmaceutical development. We've now obtained our first drug approval but we continue to pave the pathway for pharmaceutical trials and pharmaceutical products that will ultimately come into the market from those learnings. Finally, Aureus is our API or raw material division based out of Colombia. This is originally designed to be our supply chain. But today, it is actually delivering cannabinoid API and raw materials to a number of other international CPG and pharmaceutical companies. With that, we've established so far up to 50 -- 52 specifically products in the Canadian market. For us, the Canadian market is a test market, but I will expand on that, and we are addressing a global market opportunity. What's important is all of this is really built on what we believe is an industry-leading scientific platform. The scientific platform includes not just our drug delivery systems and our patents, but our ability to conduct real-world evidence, clinical trials, obtain insights on this evolving and new industry to ultimately build our pharmaceutical pipeline, and this is something that we take a lot of pride in. And we've been able to do so with leading academic and clinical institutions in Canada, where we've conducted over 30 R&D preclinical and clinical trials to date. As for today, the focus is really to highlight the various business pillars of Avicanna. This includes our Canadian commercial development, including our pipeline, this includes our international development, our international trials and international commercialization efforts. This includes MyMedi.ca in the medical efforts that we've been able to really expand and scale during 2025. This also includes R&D and clinical advancements that we made throughout the year. In addition to that, it includes the intellectual property advances we made, including patents that we've now obtained. In addition to that, we're able to highlight some of the strategic collaborations that we've been able to not only bring into the Avicanna ecosystem, but also to develop, expand and scale as well. This includes a number of Fortune 100, Fortune 500 companies and some of the leading cannabis companies in the world as well. We've had some financial improvements in terms of performance. We're going to highlight some of the improvements. We're going to highlight some of the weaknesses as well. And then finally, I'd like to take some time to give you an overview of what we believe is really exciting and what you can expect in terms of 2026. Starting with the portfolio, it's really important to understand that Canada really is our core market so while we are not a licensed producer and we operate in an asset-light model, we are actually working with 10 different license producers that are then licensed our technology formulations and of course, our brands to bring these products into the market. Given that we have MyMedi and we have access to other channels, specifically 15 commercial channels, we're able to consistently test these products to see not only what products do well within particular consumer or customer segments, but also to understand how these products perform within particular medical segments, more specifically clinical indications and symptoms. Karolina will expand into that as we cover Morpheus. But overall, we've been able to continue to improve and optimize this portfolio within the Canadian market. We've increased the number of commercial SKUs from the end of 2024 to the 9-month period of 2025 from 42 to 52 an increase of 24%, and we've been able to increase our commercial listings. So commercial listing is a product that is available within an adult-use or medical channel. For example, a product on the Ontario Cannabis store is one listing, a product on MyMedi is one listing. So this has been really another fruitful year for us. Though we're working with limited resources, we've been able to, again, consistently optimize our portfolio, grow it, expand it from a distribution perspective and really prepare for what should be a scale-up year next year. This also included expanding into 3 new medical channels. So even though we have our own MyMedi channel, we're actually supplying our finished products to competitors, even the likes of Spectrum by Canopy Growth, which allows us to then really take advantage of our proprietary products that the general market does not have access to and the more sophisticated platforms realize those type of products or delivery mechanisms are necessary for their patients. In terms of the RHO Phyto portfolio, we're really excited about what has to come in terms of RHO. RHO is really our gold standard. RHO has really been our flagship. It's been something that we've established early on about 4 years ago, which was our first pharmaceutical pipeline delivering into medical cannabis originally with Shoppers Drug Mart. And RHO is a number of about 30 SKUs of proprietary drug delivery systems with a range of cannabinoid ratios. This now includes minor cannabinoids as well, including CBG and CBN but these ratios are really designed to provide the medical community and therefore, patients a complete kit of cannabinoid-based products that can be then utilized for various treatment plans. For example, MyMedi, our pharmacists are trained and are educating patients on what product may work the best. For example, on MyMedi, our medical affairs team is working with physicians to also be able to prescribe and recommend specific products for their patients as well. A simple example is a deep tissue gel for localized inflammatory pain, a patient that is suffering from that type of pain may potentially benefit from this type of product but smoking a joint may not necessarily be the right solution. So this is really about delivering the right delivery mechanisms, the right ratio of cannabinoids and to do so through education and training within the medical community. So very excited about RHO Phyto, very excited about where RHO Phyto is going. RHO Phyto was also enrolled in a number of real-world evidence, preclinical and clinical trials. Karolina will expand on that as well. But again, in Canada, we're able to not only commercialize these products, and generate insights, learning surveys, but we're also able to conduct very important clinical development opportunities for us to then obtain key data and, of course, patent the formulations. I'm very excited about the expansion of RHO Phyto in Canada. So during 2025, we further conducted expansion of our R&D efforts. This included a number of translations from our lab to what is now commercialization. These includes 3 major technologies. One is our deep penetrating technology that has been patented within a deep tissue gel. That has now been transformed also into a line extension into what we call the deep tissue spray. This is meant to be more of a metered dose, more of an easy application for patients that are utilizing cannabinoids. In this case, it's a 1:1 ratio of CBD THC for local inflammatory delivery. So this is a product we're quite excited about, and we believe it's going to be coming into the market in early Q1. Our second line of products that I want to allude to is backed by our Influid technology. The Influid technology is our proprietary Self-Emulsifying Drug Delivery system. Again, Karolina will expand on that. But this product -- this technology has already been commercialized within 1 of our SKUs under the Nano Drops, but is now being expanded into the carrier or what we call the precursor liquid going into a number of other finished products. Specifically, something I'm quite excited about, given the market opportunity is nano-emulsion or fast-acting gummies. So these products are going to be offered across a number of different brands under the Avicanna umbrella under a number of different ratios, and I believe there is opportunities for licensing this technology to some of our industry partners within the sector as well. This also extends into a line extension, which is going to be our nano sachets. These are going to be oral pouches that can be used as single-serve products going into various channels as well. Finally, we'll talk about the PwdRx technology. We're excited about the recent patent submission there and the recent preclinical data that was very exciting and promising. This information has been already in press release, but this is going to lead to a number of our control release tablets. So we believe, again, this technology has a number of utilities, which Karolina will expand on, but one that I'm quite excited about is a controlled release pharmaceutical form of a tablet initially being launched under medical cannabis. In terms of international, while Canada is still our base while Canada still is our proof of concept, we are slowly and surely building our footprint within various markets. So in addition to the pharmaceutical products, the cosmetics and medical, we do have the Aureus division, something that is very exciting for us and has already established its initial proof of concept is the recent capabilities we added in terms of Aureus where we are now producing GACP in organic certified flower. This flower is coming out of our facilities in Santa Marta, Colombia, and we are able to produce CBD, CBG, THC and actually a pipeline of rare cannabinoids or minor cannabinoid strains that we will be exporting as finished premium flower. Our initial export was completed 2 months ago into Switzerland. Since then, we've been able to have a second export into Switzerland, and we believe by early Q1, we're going to complete our first exports of THC flower into various markets within Europe and Australia as well. This is very important because right now in today's medical market, flower still is a major contributor to revenue within the European Union, within Australia and the U.K., those are earlier-stage markets. And therefore, for us to be able to supply this from a low-cost jurisdictions such as Colombia and being really one of the only credible sources of a low-cost developing market source of flower is going to provide Avicanna and more specifically, Santa Marta Golden Hemp, our majority-owned subsidiary, an opportunity to generate positive cash flow and be a bit of a cash cow in the earlier years. We believe as we move forward, Aureus will have other opportunities going into GMP products as well. In addition to sort of the commodity side, of course, our focus has always been on proprietary finished products. Two great examples of that is re+PLAY in the United States where we have a collaboration with Harrington Wellness and Al Harrington, which we've launched products within the Viola brand in Canada. We are helping them with the commercialization in the United States, where we've launched 2 of our leading products, these 2 specific products have done quite well within the Canadian market and a number of international markets, and we are now expanding into the United States. We've conducted our soft launch as a learning exercise and plan to further activations going into 2026 where we expect to scale those efforts. What's specifically exciting for me about this opportunity is that these products are manufactured in Colombia, which means we're taking advantage of the low-cost jurisdiction for manufacturing. These products are also utilizing Aureus branded CBD and CBG from our own facilities. So this is a very good proof of concept where our own cannabinoids are manufacturing and our capabilities out of Latin America is allowing us to put these proprietary but cost-competitive products into international markets, in this case, under the cosmetic regulations, which is where these type of products will be allowed to commercialize in Europe, South America and parts of North America, including the United States. Finally, in Colombia, we finally were able to commercialize Trunerox. So for those of you that are new to the company, Trunerox is our first pharmaceutical approved product. This is an indication-specific drug that was approved by INVIMA in Colombia. For Lennox Gastaut and Dravet Syndrome, these are catastrophic epilepsy conditions. The product is a 10% CBD proprietary formulation by Avicanna but once again, the exciting fact is this is our manufacturing using our own CBD from Santa Marta Golden Hemp under the Aureus brand. We are, again, taking a baby step in terms of a soft launch within the Colombian market, expect to have a significant amount of learnings from that experience and look to scale that in 2026, both in Colombia, but hopefully in other South American markets, where the INVIMA approval has expected reciprocal approval processes. I'll now hand it over to Karolina to give you an update on MyMedi and some of the medical affairs and R&D efforts. Karolina?

Thank you, Aras. During the first half of 2025, we focused heavily on engagement with the medical community and a broad range of stakeholders, including health care professionals, medical institutions and patient advocacy groups. The goal is to help further legitimize medical cannabis and to reinforce the appropriate medical channels for patients to safely access treatment. During the second half of the year, our focus shifted towards conversion and scale, and that strategy worked. We saw meaningful growth across prescribers, institutional engagement and patient growth. This was supported by our expanded educational initiatives, partnerships and platform enhancements. At the same time, we continued to improve the patient journey through enhancements to several key programs, including discount programs such as compassionate pricing and first responder discounts. While enhancing insurance and veterans program and a number of medical affairs led initiatives, which I will expand on in the next slide. Overall, we believe MyMedi is now the most complete medical cannabis platform in the industry covering the patient journey from optimized access and education through treatment support, data insights and long-term continuity of care. Next slide. This slide provides an overview of our expanded medical efforts during 2025. As mentioned, our objective is not only to expand access to medical cannabis but also to engage more deeply with the medical community to support the appropriate integration of cannabinoids into standard of care. Very briefly, each of these initiatives supports education, evidence generation and clinical confidence. We included increased training sessions for cannabis experience and cannabis-naive health care professionals. We launched a series of webinars with key opinion leaders in the space to disseminate knowledge of prescribing medical cannabis. We enhanced collaborations with professional organizations. We completed our first patient advocacy group summit, where we learned how patients access cannabis for medical purposes and how we can enhance that access to health care providers and the medical system, and we conducted advisory boards to better understand both treatment and clinical research needs in chronic pain and posttraumatic stress disorders and associated symptom clusters. I do want to highlight the Avicanna symposium, where we hosted over 400 medical professionals in person and virtually. The symposium had both national and international key opinion leaders presenting on various topics. This event has quickly become an industry standard forum for advancing cannabinoid research, clinical evidence and responsible medical practice. Taken together, we believe that the complete MyMedi platform is now ready for scale, both within Canada and as a model that can be expanded on into international markets. Next slide. We have also spent considerable efforts on the growth of Avicenna Academy, which is not a typo, but rather intentionally named after Avicenna, an 11th century Polymath often referred to as the prince of physicians who is best known for the canon of medicine, which served as a standard medical textbook for more than 600 years. During 2025, we significantly improved and expanded Avicenna Academy's educational and training programs. This included updated prescribing guides, indication-specific studies, guest lectures and webinars. And we also expanded access to our symposium recordings and research summaries. The focus continues to be practical evidence-based education that will support clinicians in real-world practice and spans across medical cannabis innovations, patient access, pain and harm reduction and application of medical cannabis into treatment plans. We will continue to grow this hub for medical education. And today, we have over 25 different presentations by key opinion leaders and our medical team. We also put considerable efforts into using automations to create Morpheus patient intelligence platform. MPI, as I'll call it, allows us to evaluate multifaceted metrics across patient, product and clinical parameters and gives us a comprehensive review of how medical cannabis is being used in real-world settings. It also enables bidirectional assessments so we can understand how specific variables influence outcomes and how those outcomes in turn shape patient behavior and treatment decisions. The platform provides us deep insight through targeted data searches and supports event and database tracking. It also allows us to see how patient and purchasing trends evolve over time or in response to key clinical or program changes. Overall, MPI has become a critical tool for optimizing patient treatment plans, generating real-world evidence and informing our product pipeline and pharmaceutical development strategy. Next slide. It is important to highlight the continued progress we are making across clinical development type programs and pipeline. Today, I will highlight 2 studies, both conducted in collaboration with some of the most prestigious medical institutions, including the University Health Network. First, our national real-world evidence study is a prospective non-interventional observational study, evaluating patient-reported outcomes, including pain, sleep, anxiety, depression and epilepsy. This is being completed through my MyMedi our medical platform. This study is led by Dr. Hance Clarke and has now enrolled approximately 450 patients with a target of 1,000. Recently, a manuscript was submitted, and we are awaiting publication of early pilot results. In parallel, we are advancing our first -- to our first randomized controlled trial, this is a Phase II randomized, blinded, placebo-controlled 3-arm parallel study evaluating oral cannabinoid extracts for osteoarthritic pain. This is using our proprietary Avicanna solid SEEDS capsule. The study is also led by Dr. Hance Clarke, and we are ready to initiate at the end of the month. Together, these studies reflect a balanced clinical strategy, combining large-scale real-world evidence with gold-standard randomized controlled trials, reinforcing the scientific rigor of our platform and pipeline. Next slide. Finally, as Aras, alluded to early on, we have focused on our intellectual property and trade secrets and are happy to be expanding our patent and trademark portfolio. We believe that as an industry matures, evidence and IP protection will become pillars to our success. During 2025, we obtained another U.S. PTO patent on one of our drug delivery systems and formulations. This time for our dermatology topical with respect to acne. Additionally, we continue to file other provisional patents, this time for our proprietary PwdRx technology, which I will expand on in the next slide. PwdRx is our self-emulsifying powder drug delivery technology. It has been designed for stability, adaptability and enhanced bioavailability and is really there to help address some of the challenges that cannabinoids have in absorption. This advanced delivery system is superior to what is currently available to patients and the medical community and is delivered across a wide range of final formats and release profiles. This includes oral pouches, capsules and multiple tablet formats, several which are part of our near-term Canadian pipeline and our longer-term pharmaceutical strategy. We recently reported very exciting results from a preclinical pharmokinetic study. PwdRx demonstrated significantly higher bioavailability compared to standard MCT oil-based formulations, which are the standard today. Along with an extremely fast uptake, which was reflected in our reduced Tmax. This profile is particularly attractive for patients seeking faster onset to effect and supports a broader harm reduction effort by providing noninhalable alternatives of rapid action, which is more synonymous with physicians and how they wish to prescribe medical cannabis. Influid is our liquid self-emulsifying drug delivery system designed to overcome the limitations of hydrophobic molecules such as cannabinoids similar to PwdRx. This technology has already been successfully launched in the Canadian market and has performed well across multiple commercial channels. Looking ahead to 2026, we plan to further leverage the Influid matrix to expand our portfolio with fast-acting higher bioavailability products, including Nano Gummies and Nano beverages. Now I'll pass the presentation back to Aras, and we'll remain to answer some of your questions at the end.

Thanks, Karolina. That was wonderful. I'll get into the financials. Of course, financials are important, and I know we have a number of shareholders that have been extremely supportive of the company over the last 9 years. So while we strive for self-sufficiency and expect to achieve that early next year, it's important to highlight some of the wins and some of the losses within finance, but I do want to allude to the number of initiatives that the company has been able to execute on beyond the financials that are not necessarily reflected in the slide some of which Karolina has talked about in terms of pipeline, clinical development patents and of course, establishing a proof of concept that prepares us for scale up going into next year, whether that's in Canada, in terms of scale or its expansion internationally. We're quite excited about what's the comp. In terms of revenue, some modest growth in terms of revenue year-over-year. This is reflected -- this does reflect some of the revenue recognition changes that were made in terms of our Canadian products. So while the product revenue seems reduced, in fact, we did sell more products in Canada, but part of the asset-light model is revenue recognition. We have seen improved margins across the board, and that is, again, a function of the revenue recognition, but also the improved or increased revenue from some of the services and licensing projects that we have with some of our international partners. Excited to see that scale. We believe our sort of -- what I believe is industry-leading margins is more in line with really a biotech or intellectual property focused company rather than a cannabis company, though unfortunately, we are still positioned as a cannabis company within the capital markets. We've seen modest reduction in SG&A. This is really a result of the efficiency efforts and optimization of some of the projects, but also as we continue to scale and we continue to raise our efficiencies, we expect further improvements in that realm in 2026 and this is all resulting in adjusted EBITDA improvements, again, modest, but we are really -- we have really achieved or approaching self-efficiency or breakeven status even though we are still very much in the sort of a proof-of-concept development stage company, I do believe that with scale, with modest growth in 2026, we're going to be able to achieve profitability and be able to still conduct this level of exciting value creation, specifically in terms of intellectual property and clinical development. Our cash position remains relatively weak. Our balance sheet is still relatively weak. We've been able to keep diluted financings to a limit in 2024, for example, we raised about $4 million previous year for higher amounts than that during 2025, we were able to complete the year with only $1 million of capital raised, which is important. But this limited balance sheet has limited our ability to then focus on marketing and growth as well. But with that said, our working capital has also significantly improved. As we look into 2026, I've never been more excited. 9 years into this project, I often joke with friends and family that Avicanna has been an ugly unicorn. Why I call it a unicorn is because what we have done works. We're able to help patients across a number of different clinical indications. We're able to really establish credibility within the medical community. We've been able to build the supply chain in a developing market that has achieved great proof of concept in terms of entering to 19 countries. We've established a portfolio of products and a pipeline of drug candidates and drug delivery systems that I think is worth on its own, substantially more than our market cap. However, the industry sentiment, specifically our dispositioning as a cannabis company has limited our ability to create value for the organization. And this is something that I'm going to speak about in terms of our long-term strategy and our long-term U.S. sort of opportunity to unlock value for our shareholders and supporters. But first, speaking about Canada, MyMedi during 2025, further established itself as really the leading platform in Avicanna really as the undisputed leader within cannabinoid-based medicine taking a very serious research, evidence based, patient support and medical affairs approach, which we believe is unique solely to Avicanna, which is why the medical community and the number of medical institutions and stakeholders are working very closely with Avicanna. So I believe during 2026, our scale and our expansion plans will reach fruition. Some of that we saw in the second half of 2025. I also believe in the scale of our finished products. I believe that our finished products that have now been further optimized, tested and further segmented into various channels and various patients even groups are going to be scaled further in 2025. That's a function of marketing, medical affairs, MyMedi growth, but it's also a function of us being able to license these technologies and products to some of our peers and some of our partners within the industry as well as really an IP powerhouse within the industry. While we don't have the commercial platform of some of our industry partners, we believe that we can work with them to deliver these products. Internationally, I think we are now ready. We've now further optimized MyMedi, we've further optimized RHO Phyto. We know what a complete medical cannabis package should look like, especially as more and more countries are emerging in terms of regulations from a medical side, potentially even in the United States, we believe that the combination of RHO Phyto and MyMedi does provide the most complete medical cannabis package. For that, of course, we're going to require GMV certification of RHO Phyto products. So far, we've been able to do that with 2 SKUs and plan to do more in 2026 and to be able to expand that into various international markets. We are in discussions with several companies to also be able to expand MyMedi. Of course, the CA part will be falling off, but that's another very exciting opportunity for us. Aureus has really after 7 years of development, working very closely with our partners in Colombia. We have built what I believe is the most efficient organic, sustainable supply chain for cannabinoid API and flower. Again, proof of concept has been conducted. The pharmaceutical products in Brazil are relying on Aureus formulations or Aureus API. We have been able to use Aureus API to various other finished products in other markets and then have actually exported API and flower in these markets as the rest of the globe further expands and regulations further improve towards cannabis, we believe Aureus and SMGH are destined to be very successful in being its own profit center and a cash cow for Avicanna to then leverage for its commercialization expansion. Topicals. We're excited about our proprietary RHO Phyto products that have now been commercialized in several countries as cosmetics. We believe those are going to further scale in Europe, which is in a partnership with a multinational pharmaceutical company and in the United States with re+PLAY that we discussed earlier. And then, of course, pharmaceutical Trunerox domestic market is going to be a very interesting case study. It is the same formulation that is a 10% CBD micro drop in Canada that has done quite well with the epilepsy community here in Canada and neurologists. So we do expect similar results and better going in as a pharmaceutical with an actual claim. In terms of R&D, there's always -- for those of you who know me for a very long time, I still believe in intellectual property patents and proprietary products with entry barriers. I believe that the industry has gone through its commodification phase and now more sophisticated players are realizing the value and the importance of intellectual property. We do expect a number of publications. We do expect the number of patents to be filed, we do expect further intellectual property protection and development throughout 2026, which is something that I'm quite excited about and hope to invest more in 2026 when the company is further sub-sufficient. We expect to see our first RCT, our first randomized controlled trial in arthritic pain with UHN further advance and potentially finish the early phase of that, which will provide us with our first proof-of-concept Phase II clinical drug that we can then hopefully identify a co-development pharmaceutical partner for. And then, of course, advancing the rest of our drug candidates. So through RHO Phyto, MyMedi, the Morpheus patient intelligence platform, we've really understood what is our leading drug candidates. Some of these products have gone through real world evidence studies as well, specifically our EB drug candidate or inflammatory localized pain drug candidate. We are now ready to take these products into GMP manufacturing pilot stage and then into another low-cost efficient Phase II trial where we would expect optimize clinical protocols and perhaps better results, considering that, again, we've already tested these products, both in the market and within the real world evidence setting. Strategic opportunities. So this year, we were able to announce one of the partnerships with what is now called Aspeya, Vectura Fertin Pharma, which is a medical affairs partnership and a number of other projects. We are working with other Fortune 100, Fortune 500 and again, industry-leading cannabis companies, which I believe is going to provide us strategic scale opportunities with emphasis on our intellectual property and our positioning. But in addition to that, we have been looking at M&A opportunities. During 2025, we did also invest in M&A opportunities, and we will look for other opportunities during 2026 particularly companies that will have synergistic assets to Avicanna being physical manufacturing, GMP, international distribution, et cetera, but we are looking at those opportunities. And then finally, and I imagine this is in an exciting phase for the MSOs in the United States, a pathway to the U.S. So first, whether U.S. rescheduling or legalization of medical cannabis happens or not, because we only operate at a federal jurisdictional level, we are from a prerequisite perspective, qualify to enter the U.S. capital markets on a more senior exchange. We already have a U.S. listing with AVCNF on the OTCQX, and we plan to ultimately during 2026 to be able to increase the company valuation and move that on to Nasdaq. I believe the only real value opportunity for value creation for shareholders of Avicanna as a biotech pharma intellectual property clinical company is going to be in a stock exchange that has an appreciation for all of the above. Unfortunately, in Canada, again, we're dealing with a different type of industry. I think that plays quite well into the potential rescheduling and some of the exciting opportunities that are rising in the United States because rescheduling is going to provide opportunities for research, drug development, clinical trials, all of which we believe we are certainly industry leaders when it comes to Canada. So this is a very exciting year ahead. Again, I think, during 2025, we did improve essentially on every single business pillar. We did expand every business pillar. And we're, I believe, primed for again, scale and international expansion from a commercialization perspective. But we're also primed for really taking our intellectual property into the next stage, whether that's clinical development, co-development or opportunities for strategic partnerships. And we'll stop here in terms of the presentation to provide a couple of minutes' time for Q&A.

So Aras, I'll provide you the first question. It comes from [ Mark Merritt ]. Can you discuss how MyMedi is different from other Canadian medical platforms?

It's a great question, Mark. So MyMedi was originally built by Shoppers Drug Mart. It was a division of Shoppers Drug Mart called Medical Cannabis by Shoppers that we acquired so there are 6 years of development optimization with very much a focus on a pharmaceutical approach and a pharmacist-led approach that we acquired. From there on, Karolina and the team have been able to completely improve this platform from a patient experience perspective. Today, MyMedi has a more diverse portfolio of products that have embedded specifically for the medical community and the medical patients. We carry about 50 brands or so, where most medical platforms only sell their own brands. MyMedi is designed from a back end to be able to conduct insurance adjudication and insurance processing. We do facilitate that for a number of patients. And are actually a preferred vendor for some of the largest provincial boards, such as a work safety Board of Ontario and BC. MyMedi is providing a substantial patient support platform. So we are not just conducting customer service, but we're actually going as far as doing treatment planning and clinical guidelines for patients. So if a patient calls MyMedi and has his medical document transferred to MyMedi, Karolina's team will actually go through the process as pharmacists and provide treatment planning, we'll consider things like the drug-to-drug interaction as well. And then finally, medical affairs. So not only are we conducting real-world evidence and clinical studies out of MyMedi where we're conducting a number of medical affairs projects that is really designed to help facilitate and incorporate medical cannabis into standard of care. That's education, training, webinars, all of the stuff that Karolina went over in terms of Avicenna Academy. This is why some of the larger companies in the world are now looking at MyMedi as a pilot looking at MyMedi as a place for insights and learnings. And in my opinion, MyMedi is going to be an opportunity to scale beyond just veterans in terms of medical cannabis, but to target a number of other indications or other patient groups.

Thanks, Aras. Can you talk about the market size potential for Trunerox and even in terms of just South America largely and where you think we could be in 1 to 2 years?

It's a tough question. And I think this is why we're testing it, and we're investing a little bit into the soft launch. But epilepsy is a massive clinical indication, depending on the country, it's anywhere between 1% to 2% of the population that suffers from it because Trunerox is produced using our low-cost manufacturing and API, the product cost is about 1/10 of Epidiolex, which in a sense, this is a generic of -- and Epidiolex is doing $1 billion plus in sales in just in the United States. So I think the market opportunity is vast. The question is how that responds within the South American market. It's complex. So exciting, good proof of concept, good learning for us, something that we can then build the pipeline around as well. But it's too early to be able to provide, I think, market estimates in terms of South America at this stage. However, I do believe, again, we know the product works. We've tested it in Canada. We know Epidiolex works, it's done quite well in the U.S. and Western Europe. So if the product is commercialized successfully, we believe the opportunity could be vast.

And Aras, we have a question here that is asking about our presence in Europe and the opportunity for Avicanna into the Europe market that keeps scope opening up medically.

Yes, another great question. I think, first of all, we have now entered the European market. However, we've done so with Aureus. So we have entered with Aureus API and flower, and we're working with a number of the leading companies within the European market and Australia, in fact, to be able to export substantially higher volumes of that going into 2026. That's sort of the Aureus market opportunity. We've also launched our cosmetics with a pharmaceutical company that we announced in terms of topicals. Those products are now in the market. They're initially in Germany, and we expect them to expand as well in terms of those functional products that are now regulated under cosmetics. Where I think the real value in the midterm will come will be the combination of RHO Phyto and MyMedi. I think this is going to be vast like what we've collectively done in Canada in terms of establishing our leadership position to have this comprehensive medical cannabis package, I think, is going to do quite well in Europe, especially in markets where recreational does not exist. It's worth noting that in Canada, we are competing with adult use. We're competing with patients that can walk into a dispensary and we're saying no, we need to go through a treatment plan and we need to go through real medical channels. Medical in the European unit is the only real opportunity today within the U.K. as well. So we think the RHO Phyto MyMedi opportunity is great. There were some entry barriers in terms of GMP manufacturing, in terms of having -- if it's MyMedi, having a company that has enough infrastructure and a base to be able to then transfer the intellectual opportunity and really the platform of MyMedi. So it is an exciting opportunity is one that we expect to be able to tackle finally in 2026, but this is something that we'll be working on in the first quarter, which is to establish our pathway, whether it's a strategic relationship or we are doing this on our own.

Thanks, Aras. And final question is related to Canada Medical. Recently, Health Canada came out with the numbers that medical has stabilized and even has seen some growth in Canada. Where do you think that positions MyMedi and the potential opportunity for Avicanna and as well as what -- where do you believe all the efforts that you have been doing in medical affairs and as well across the platform could do in terms of Canada market.

Yes. I think over the last several years, we've established ourselves really as the leaders in cannabinoid research, medical, Karolina alluded, our symposium is one where our industry partners and competitors even come to. So we sort of built that proof of concept. But also the most important thing we've done is to legitimize medical cannabis to a very large extent. And that's because over the last few years, with recreational emerging many physicians, many patients sort of blurring the lines between recreational and medical. So really, what we've done since the takeover from Shoppers Drug Mart is to reestablish or reaffirm the importance of medical cannabis especially for patients and for particular patient groups that are at higher risk, and we've been successful at that. I think now we can scale that. And by scaling, I don't mean just veterans. I don't mean transferring patients from other medical cannabis platforms to MyMedi, I mean really getting out there to the naive patients to the naive physicians that whether it's stigma, whether it's the prescriber that doesn't want to prescribe it, whether they have limitations on access to allow them to understand the potential value of medical cannabis. Today, only about 10% of people that are utilizing cannabis for medical purposes are doing so through the appropriate medical channels. We want to fix that. And this is something that we believe is very important but I'd like to actually turn it back to Karolina because this is her initiative. So Karolina, how do you think we're going to be able to really scale from what we've been able to accomplish during 2025 in terms of MyMedi?

Yes, great question. An exciting one for us. As I mentioned in the presentation, we've had a lot of great conversations and also have really started to understand the challenges that exist today for patients to be able to access medical cannabis. And by doing so now, we're better prepared to help patients come to our platform and also give the assets as well as the learning opportunities for non-prescribing physicians, non-prescribing cannabis physicians to be able to send their patients to trusted physicians across the country. And I think that's really where the challenge has been is that patients will go to physicians and say, "Hey, I'm interested in medical cannabis and it's not that they don't want to have that discussion." It's just they don't know how to prescribe, and they don't know where to send their patients. So we've been working on a lot of efforts to help reposition that and make sure that those patients aren't just left to the wayside and going to the recreational channels but rather to go to the medical route that's proper. So some of those things, we'll see in early 2026. And one really exciting thing that we haven't seen in medical cannabis over the years is direct approaches to health care providers and as well as education for patients. It's been really silent on dispersion of the evidence and as well as how to treat patients. So with our ongoing key opinion leader efforts, we continue to see growth in new prescribers coming over and listening and understanding on what medical cannabis does and how they can help their patients. And on the flip side, also patients understanding that they do benefit from going to the medical cannabis channel over recreational. So we're very excited for 2026 and to continue these efforts that we've seen over the past year. One last question, Aras that just came in, is related to the United States. I know you touched on a little bit on the potential implications of Schedule 3. But perhaps you can also touch on how that could implicate Avicanna and as well as partnership with re+PLAY and Al Harrington.

Yes. Thanks. I think, first and foremost, it's another legitimizing factor for the industry. And I think the United States has not only the largest capital pool, but has some of the largest pharmaceutical companies into the industry that are sort of been in the sidelines. So I think the rescheduling will open pathways for IP focus companies like Avicanna that have not only the patents, but also the products, the formulations, the supply chain, the proof-of-concept, the medical platforms. Shoppers Drugs Mart medical cannabis division that is now MyMedi was a nationwide platform in the country's largest pharmacy chain. If there's going to be a pharmacy dispensing model in the United States in the near future, I think what we've established and built on, it could be an easy sort of transition to the United States. So I think the investment community is going to be a little bit more open to cannabis, more specifically to IP-focused medical R&D pharmaceutical companies like Avicanna. I believe that in addition to investors and pharmaceutical companies being more open, there's going to be further opportunities for Avicanna's products, Avicanna's platforms such as MyMedi to enter. So it's exciting. Immediately, those benefits are not immediate or very easily demonstrated to the market because the immediate impact is going to be on potentially MSOs that are going to have some tax benefits on their costs and potential easier banking. But I think really, the high value change is going to be from a medical research and pharmaceutical side, which we're very excited to be able to hopefully enter the United States with.

Awesome. Thank you, Aras. So that is everything for today. If anyone has any further questions, please feel free to e-mail info at Avicanna.com and we'll be willing to answer any of your questions and really appreciate all the support. And thank you for joining us today.

Thanks, everyone. Looking forward to next year. Cheers.