- Colombia commercial production
anticipated to be commercialized in Q3. All cultivation, extraction
and testing facilities operating and in optimal condition
- Potential addressable patient network of over 1 million
individuals, represented by over 5,000 doctors through six medical
association endorsements
- Core medical cannabis distribution channels secured with
arrangement for over 900 retail locations
- Wellness line secured distribution agreements with largest
retails of product category throughout Colombia, across 176 points of sale. Commenced
jurisdictional and product portfolio expansion
- Current cultivation capacity of 25,000 kilograms and total
potential modular capacity on licensed lands of 158,000 kilograms.
Cultivation capacity in Colombia,
Uruguay and Chile provides for variety of extractions and
flower product mix targeted at domestic and international
markets
TORONTO, July 15, 2019 /CNW/ - Khiron Life Sciences
Corp. ("Khiron" or the "Company") (TSXV: KHRN),
(OTCQB: KHRNF), (Frankfurt:
A2JMZC), a vertically integrated cannabis leader with core
operations in Latin America, is
pleased to provide a corporate update on core commercial and
operational activities. The update includes a synopsis of the
Company's position related to commercial revenue generating
activities as well as an operational update on the status of the
cultivation, extraction and testing facilities. As a result of the
ILANS acquisition and launch of the Kuida® cosmeceutical
brand, Khiron remains the only Colombian company to be generating
cannabis revenues derived from legally approved
production.
Khiron is pleased to report all activities are advancing with
the objective of commercializing medical cannabis products in
Colombia in accordance and
adherence to all legal requirements. In doing so, the Company has
progressed in the fastest timeframe possible from the issuance of
new licenses, and leveraged the pre-established commercial
distribution channels developed to generate scalable revenue
generation and profit. These activities are focused on establishing
consistent channels of education and engagement, building sustained
relationships and generating scientific data. This data and these
channel relationships are being utilized to develop and advance
cannabis product availability in the market. This is achieved in
coordination with government, medical and financial organizations
to increase market awareness and knowledge. The overall goal being
to continue to enhance Khiron's robust business model while working
to improve access for patients, and make medical cannabis available
and affordable throughout the markets in which the Company
operates.
Additional filings relating to the Company's progress and
milestones can be found on the Company investor website
at www.investors.khiron.ca and all filings are available for
review on the Company's SEDAR profile at www.sedar.com.
Medical Cannabis Products
- Khiron has endorsements from six leading Latin American medical
associations, which represent over 5,000 doctor relationships and
approximately 1 million patients. Based on the Company's market
research, this positions Khiron with the most established potential
addressable patient network in Latin
America and one of the largest established networks on a
global basis. Medical endorsements have been achieved within
Colombia and Mexico. Khiron continues to advance current
relationships with these associations and seeks to expand medical
association endorsements outside these initial countries. This
network provides Khiron a competitive and defensible advantage,
which has been established in advance of commercializing its
medical cannabis products. It is anticipated the Company will
commercialize its medical cannabis products in the third
quarter.
- Khiron was the first company to launch medical cannabis trials
for product development initiatives targeted at key indications
within the Latin American market. The activities are focused on
providing patients access to the highest quality products. These
efforts will be completed in coordination with Khiron's ILANS
neuropathic clinics in Bogota,
which includes over 119,000 patients and over 60 in-house
physicians and clinicians. This integrated approach to product
development and research allows Khiron to quickly develop and
customize products to meet the needs of patients. The ILANS
acquisition integration has been advancing and the Company has
continued to strengthen the platform, with the addition of new
employees, integration of systems and controls, and training of
doctors.
- Khiron remains focused on working with medical, government and
financial organizations within the Latin American market, with the
objective of increasing access and affordability of medical
cannabis products. This includes ongoing discussions to provide
broad based product distribution and financial reimbursement. In
the context of advancing this initiative, Khiron secured an LOI
with Copservir Ltda, a Colombian government administered pharmacy
chain, which is the largest in the Colombian pharmacy network based
on its 900 stores throughout the country. It is anticipated that
the arrangement will ensure critical infrastructure for Khiron to
distribute its made-to-order pharmaceutical compounds to more than
5 million potential patients (Source: Quintiles IMS) in
Colombia.
Wellness Products
- Khiron the first company to introduce CBD skin care products in
the Colombian market. Since the initial exclusive launch of the
product with Colombian retailer Farmatodo, Khiron has secured
distribution arrangements with many of the largest retailers in the
Colombian market. These include Farmatodo, Fedco, Linio, Droguerias
Cafam, Habib, Galenos, and Salud
Market. Collectively, these companies represent over 176
retail points of sales as well as significant online distribution
platforms. Khiron continues to advance discussions with other top
retailers in Colombia with the
objective of reaching 700 points of distribution in Colombia by the end of 2019. The Company has
also launched six pop-up stores in key retail malls within four
priority cities. The Company plans to have 20 pop-up stores by the
end of 2019.
- To complement the retail distribution strategy, Khiron has
launched a broad-based marketing strategy including billboards in
major high traffic areas throughout Colombia, print and online circulations, and
radio advertisements. The Company has also increased the social
influencers supporting the Kuida brand, with the addition of six
highly relevant influencers that combined represent over 3 million
active social media followers.
- Khiron continues to expand the breadth and scope of its
wellness product lines, with additional product development
activities underway and new international product markets
identified. New product development initiatives including expanding
the wellness portfolio to include products specifically for men.
These products will also be positioned within North American,
European and Latin American markets outside Colombia. As a result of the INVIMA approval
Khiron has received for Kuida, the Company anticipates a continued
streamlined process for the approval of additional products, and
the entry of Kuida or similar products into new global
markets.
Cultivation, Extraction and Testing Facilities
- Khiron has established cultivation activities within
Colombia, Uruguay and Chile. These cultivation sites allow the
company to provide cannabis consumers and patients with a full
variety of flower and extract-based products for domestic and
international consumption. These cultivation areas will facilitate
upwards of approximately 25,000 kilograms of annual dried flower
production capacity. At full capacity under the modular model, on
completion of full construction of all licenced cultivation areas,
the Company would have internally sourced capacity of producing
upwards of 158,000 kilograms of annual dried flower at its disposal
when needed.
- The Colombian operations are near commercialization and the
strains, all of which are fully registered, have responded well to
the grow environment, as anticipated. This includes an absence of
any mold, fungus or parasites detrimental to cannabis plants. The
testing results of the plants also verify an absence of any
pesticides or other harmful compounds. As previously announced, the
Colombian testing and extraction facilities have been completed and
are currently operational, and are positioned for significant
expansion of extraction and purification capabilities. The Company
is currently working on GMP certification for the extraction
facilities. Full commercialization of the grow site is anticipated
in the third quarter. This will enable the Company to integrate its
production into the established medical cannabis product
distribution channels.
Management Commentary
Mr. Alvaro Torres, CEO and
Director of Khiron, comments: "I am pleased to share an update on
the commercial and operational status of the Company, as well as
provide a statement on our current initiatives and future
objectives. In this interim corporate progress update, my goal is
to assure all our stakeholders that Khiron is on schedule for
meeting its goals, and committed to going beyond the highest
standards in the industry, from regulatory compliance, cultivation,
extraction, production QAQC, innovation, market entrance and
distribution support, education and shareholder value
creation."
About Khiron
Khiron Life Sciences Corp strives to be the dominant integrated
cannabis company in Latin America.
The Company has core operations in Latin
America and is fully licensed for the cultivation,
production, domestic distribution, and international export of both
THC (tetrahydrocannabinol) and CBD (cannabidiol) medical cannabis.
The company delivers best in class regulatory compliance, has the
first approved CBD cosmetic products on shelf, while it facilitates
testing to meet and surpass all license requirements for commercial
cannabis derived products.
With a focused regional strategy and patient oriented
approach, the Company combines global scientific expertise,
agricultural advantages, branded product market entrance
experience and education to drive prescription and brand
loyalty to address priority medical conditions such as chronic
pain, epilepsy, depression and anxiety in the Latin American
market of over 620 million people. Khiron is led by Co-founder and
Chief Executive Officer, Alvaro
Torres, together with an experienced executive team,
and a knowledgeable Board of Directors that includes former
President of Mexico, Vicente Fox.
Further information on Khiron Life Sciences can be found
at https://investors.khiron.ca/
Cautionary Notes
Market and Industry Data
This press release contains market and industry data and
forecasts that were obtained from third-party sources, industry
publications and publicly available information. Third-party
sources generally state that the information contained therein has
been obtained from sources believed to be reliable, but there can
be no assurance as to the accuracy or completeness of included
information. Although management believes it to be reliable, the
Company has not independently verified any of the data from
third-party sources referred to in this press release, or analyzed
or verified the underlying studies or surveys relied upon or
referred to by such sources, or ascertained the underlying economic
assumptions relied upon by such sources.
Forward-Looking Statements
This press release may contain certain "forward-looking
information" and "forward-looking statements" within the meaning of
applicable Canadian securities legislation. All information
contained herein that is not historical in nature may constitute
forward-looking information. Forward-looking statements may be
identified by statements containing the words "believes",
"anticipates", "plans", "intends", "will", "should", "expects",
"continue", "estimate", "forecasts" and other similar expressions.
Forward-looking statements herein include, but are not limited to,
statements regarding the final acceptance of the TSXV and the
commencement of sales in Mexico.
Readers are cautioned to not place undue reliance on
forward-looking information. Actual results and developments may
differ materially from those contemplated by these statements.
Khiron undertakes no obligation to comment analyses, expectations
or statements made by third-parties in respect of Khiron, its
securities, or financial or operating results (as applicable).
Although Khiron believes that the expectations reflected in
forward-looking statements in this press release are reasonable,
such forward-looking statement has been based on expectations,
factors and assumptions concerning future events which may prove to
be inaccurate and are subject to numerous risks and uncertainties,
certain of which are beyond Khiron's control, including the risk
factors discussed in Khiron's Annual Information Form which is
available on Khiron's SEDAR profile at www.sedar.com. The
forward-looking information contained in this press release is
expressly qualified by this cautionary statement and are made as of
the date hereof. Khiron disclaims any intention and has no
obligation or responsibility, except as required by law, to update
or revise any forward-looking information, whether as a result of
new information, future events or otherwise.
United States Disclaimer
This news release does not constitute an offer to sell or a
solicitation of an offer to buy any of the securities
in the United States. The securities have not been and
will not be registered under the United States Securities Act of
1933, as amended (the "U.S. Securities Act") or any state
securities laws and may not be offered or sold within the
United States or to U.S. Persons
(as such term is defined in Regulation S under the U.S. Securities
Act) unless registered under the U.S. Securities Act and applicable
state securities laws or an exemption from such registration is
available
Neither the TSXV nor its Regulation Services Provider (as that
term is defined in the policies of the TSXV) accepts responsibility
for the adequacy or accuracy of this press release.
Neither the TSXV nor its Regulation Services Provider (as
that term is defined in the policies of the TSXV) accepts
responsibility for the adequacy or accuracy of this press
release.
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SOURCE Khiron Life Sciences Corp.