- Company surpassed 5,600 patient prescriptions for its medical
cannabis products in Colombia.
Prescriptions filled increased over 450% in Q3 2020 over Q2
2020
- Khiron declared a National Strategic Project by the Government
of Colombia, simplifying and
accelerating administration and processes for the Company in
executing strategic projects in Colombia and for export
- Subsequent to the quarter, the Company completed a bought deal
financing on November 26, 2020,
selling 32,200,000 units at a price of $0.45 per unit for aggregate gross proceeds of
$14,490,000 CAD
- Khiron signed partnerships with 15 clinics and health centres
in Colombia, extending education
and sales reach further across the country
- As a result of the Company's Doctor ZereniaTM
telehealth platform more than 25% of the Company's medical cannabis
prescriptions came from outside of Bogota, expanding geographic presence of its
Colombian clinics
- Company achieved first sales of High CBD medical cannabis
through private pharmacies in Peru. Additional approval received from
Peru's drug regulatory authority
for Company's High THC cannabis, with first prescriptions
anticipated in Q1 2021
- Expanded medical cannabis E-Learning platform to UK market in
partnership with Medical Cannabis Clinicians Society ("MCCS")
- Entered an exclusive partnership with Rappi SAS, Latin America's largest home multi-vertical
app platform to distribute the Company's CPG product portfolio,
introducing Kuida products to Rappi users across the LatAm
region
- Signed agreement to distribute the Company's KuidaTM
CBD skincare brand through pharmacy, beauty retail and online
markets serving the Hong Kong
territory, with first orders expected in Q4 2020
- Prudent cash use of $5 million in
Q3 2020, compared with $4 million in
Q2 2020, $12 million in Q1 2020 and
$10 million in Q4 2019
TORONTO, Nov. 30, 2020 /CNW/ - Khiron Life Sciences
Corp. ("Khiron" or the "Company") (TSXV: KHRN), (OTCQX: KHRNF),
(Frankfurt: A2JMZC), a vertically
integrated cannabis leader with core operations in Latin America and Europe, announced today its financial results
for the quarter ended September 30,
2020. These filings are available for review on the
Company's SEDAR profile at www.sedar.com All financial
information in this press release is reported in Canadian dollars,
unless otherwise indicated.
Summary of Key Quarterly Financial Results
Canadian
dollars
|
3 Months
ended Sept
30 2020
|
3 Months
Ended Sept 30
2019
|
9 Months
ended Sept
30 2020
|
9 Months
Ended Sept 30
2019
|
|
$
|
$
|
$
|
$
|
Revenues
('000s)
|
1,928
|
2,773
|
5,499
|
7,072
|
Gross profit before
fair value adjustments ('000s)
|
323
|
593
|
1,079
|
1,388
|
General and
administrative costs ('000s)
|
(5,341)
|
(4,330)
|
(15,719)
|
(12,264)
|
Net loss
('000s)
|
(6,715)
|
(10,621)
|
(21,665)
|
(28,143)
|
Adjusted
EBITDA (1) ('000s)
|
(4,706)
|
(5,438)
|
(14,426)
|
(18,162)
|
Net loss per share
(basic and diluted)
|
(0.06)
|
(0.09)
|
(0.19)
|
(0.29)
|
Weighted average
shares outstanding ('000s)
|
117,644
|
113,997
|
116,937
|
97,448
|
1.
|
Adjusted EBITDA
(earnings before interest, taxes, depreciation and amortization or
in this case loss) is a non-IFRS measure calculated as net loss
before tax as reported under International Financial Reporting
Standards and adding back share-based compensation, fair value
adjustments on biological asset, transaction fees, depreciation,
interest expense and non-recurring items. Refer to the Company's
MD&A for a reconciliation.
|
Discussion of Operations for the Three Months Ending
September 30, 2020
The Company
recorded a net loss of $6.7 million
in the third quarter of 2020. This compares to a net loss of
$10.6 million in the prior year third
quarter. On an adjusted EBITDA basis Q3 2020 was a $4.7 million loss compared to the adjusted loss
of $5.4 million in Q3 2019 (see
Adjusted EBITDA for calculation).
Q3 2020 and the impact of COVID-19 – starting in
March 2020, the Company's health
centres experienced a decline in patient visits due to the
Colombian government's strict quarantine regulations which required
the Company to limit the number of patient visits and suspend
surgeries. During Q3 2020, following the launch of teleconsultation
services in April 2020 and the
resumption of surgeries in May 2020,
the number of patient services increased and have now surpassed
levels observed at the beginning of the year, including complex
services such as surgeries. The Company experienced a 12% increase
in service revenues from Q2 2020. The Company experienced a 34%
decline in service revenues in Q3 2020 compared to Q3 2019. The
Company has maintained the cost cutting measures implemented during
the second quarter.
Throughout Q3 2020, the Company sold increasing levels of both
low- and high-THC medical cannabis through its health centres in
Colombia and pharmacy partners.
Revenue contributions were $0.1
million in the quarter, a 514% increase from Q2 2020 as
prescriptions and sales accelerated on a weekly basis. Cultivation
is increasingly focused on growing for commercial sales purposes
and less on research and development. In Q3 2020, the Company
capitalized $0.3 million in operating
costs to inventory and recorded its fair value gain on biological
assets of $0.6 million.
Management Commentary
"We have remained fully focused
on our sales execution strategy in Q3, while continuing to
prudently manage our cash position. Despite the significant impact
of the global COVID-19 pandemic we have been able to advance across
key sales metrics with our Colombian clinic services returning to
pre-pandemic levels of 9,500 monthly consultations and surpassing
5,600 Khiron medical cannabis prescriptions filled. We welcome
the rapid adoption of our
Doctor ZereniaTM telehealth services which
accounted for 55% of prescriptions through the end of October,
including 25% from outside of Bogota. These are significant advancements in
our Colombian business and provide us with proprietary data and
experiences that we can adopt as we increase revenue opportunities
and utilize towards improving the quality of lives of patients in
Latin America," comments
Alvaro Torres, Khiron CEO and
Director.
Webcast and Q&A
Khiron invites individual and
institutional investors, as well as advisors and analysts, to
attend a webcast and Q&A to discuss the Company's Q3 2020
financial statements and further activities.
DATE: Tuesday, December 1,
2020
TIME: 10:00am EST/7:00am PST
PRESENTERS: Alvaro Torres,
CEO and Director, Joel Friedman,
CFO, and Chris Naprawa, Chairman
FORMAT: Live 20 minutes presentation and Q&A session
REGISTER LINK:
https://event.on24.com/wcc/r/2819768/9328DB919FFBB024F2CF5F4F5119285E
About Khiron Life Sciences Corp.
Khiron is a
vertically integrated medical and CPG cannabis company with core
operations in Latin America, and
operational activity in Europe and
North America. Khiron is the leading cannabis company in
Colombia and the first company
licensed in Colombia for the
cultivation, production, domestic distribution, and international
export of both low and high THC medical cannabis products. The
Company has presence in Mexico,
Peru, Uruguay, Brazil, UK, Spain and Germany, where it is positioned to begin sales
of medical cannabis.
Leveraging its first-mover advantage, and patient oriented
approach, Khiron combines global scientific expertise, product
innovation, agricultural infrastructure, wholly-owned medical
clinics, and online doctor education programs to drive prescription
and brand loyalty to address priority medical conditions. Its
Wellbeing unit launched the first branded CBD skincare brand in
Colombia, with KuidaTM
now marketed in multiple jurisdictions in Latin America, the US and UK. The Company is
led by Co-founder and Chief Executive Officer, Alvaro Torres, together with an experienced and
diverse executive team and Board of Directors.
Visit Khiron online at www.khiron.ca, investors.khiron.ca and on
Instagram @khironlife.
Cautionary Notes
Forward-Looking Statements
This press release may contain certain "forward-looking
information" and "forward-looking statements" within the meaning of
applicable securities legislation. All information contained herein
that is not historical in nature may constitute forward-looking
information. Khiron undertakes no obligation to comment on
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 is 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.
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.