Bio-Gate and Avicanna complete first phase of development on CBD and Micro Silver BG™ based skin care products for global commercialization

Bio-Gate and Avicanna complete first phase of development on CBD and Micro Silver BG™ based skin care products for global commercialization

Nuremberg/Bremen, June 29th 2021 – Bio-Gate AG (ISIN DE000BGAG981), a leading provider of innovative technologies and individual solutions for health and hygiene, has completed the initial development phase for prospective products through a licensing and development agreement with Avicanna Inc. (TSX: AVCN), a Canadian bio-pharmaceutical company, to enter the rapidly growing cannabidiol (CBD) market.

As part of the collaboration, Bio-Gate is developing active cosmetic and dermatology products in collaboration with Avicanna that combine MicroSilver BG™ and CBD (hemp derived) to deliver synergistic anti-inflammatory and antimicrobial effects. Following the development and initial success of in vitro studies, the products will be available for human applications shortly. Target indications and cosmetic benefits of the products include acne, eczema andatopic dermatitis.  The products will be initially marketed in Europe and North America.  The newly developed products comply with current EU regulations under cosmetic designation and will be made available to existing clients of Bio-Gate in Europe and North America who have expressed significant interest. 

Avicanna has extensive experience with cannabinoid product development and has commercialized CBD based skin care products across several markets including North and South America where they will lead commercial efforts on the newly developed products as well. Bio-Gate is primarily responsible for sales and commercialization in European markets. The cooperation with Avicanna follows Bio-Gate's strategy of gradually transferring technologies to new business and application areas, thus opening new markets with new product applications.

Marc Lloret-Grau, CEO of Bio-Gate AG, on the new cooperation: "We are delighted to have Avicanna as our strategic partner as a leading cannabinoid biopharmaceutical company that focuses on cosmetics, skincare and medical based product applications. The collaboration represents a bridge for Bio-Gate to further new technologies. We are once again expanding our product range and thus tapping into a new and extremely high-growth market."

Aras Azadian, CEO of Avicanna Inc stated “ We thrilled to announce our partnership and achievement of our initial milestones with Bio-Gate, a European bio-medical company with focus on health technologies like dermatology and skin care as well. We are also optimistic about the potential combination of Avicanna’s intellectual property with that of Bio-Gate’s in addition to the market access and expertise that the two companies can provide in this collaboration.

Disclaimer: This publication constitutes neither an offer to sell nor an invitation to buy securities. The shares in Bio-Gate AG (the "Shares") may not be offered or sold in the United States or to or for the account or benefit of "U.S. persons" (as such term is defined in Regulation S under the U.S. Securities Act of 1933, as amended (the "Securities Act")). The securities have already been sold.