Khiron Reports Q3 Results - Revenue Increased 83% YoY, 26% QoQ

Published: November 25, 2021

Khiron Reports Q3 Results - Revenue Increased 83% YoY, 26% QoQ

Khiron Life Sciences Corp., a vertically integrated cannabis leader with core operations in Latin America and Europe, today announces its financial results for the quarter ended September 30, 2021. 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.

Third Quarter 2021 Highlights

  • Medical cannabis revenue of $1.2 million, represents 34% of total revenue
  • Europe represents 31% of medical cannabis revenue
  • Increased gross margin for clinic services segment of 26%, compared to 12% in Q3 2020 and 15% in Q2 2021
  • Over 50% year-over-year reduction in net loss of –$3.3 million, compared to –$6.7 million in Q3 2020
  • $15.4 million in cash as of September 30,2021

Summary of Key Financial Results

3 Months Ended
Sept 30 2021

3 Months Ended
Sept 30 2020

9 Months Ended
Sept 30 2021

9 Months Ended
Sept 30 2020

Canadian dollars

$

$

$

$

Revenues (‘000s)

3,519

1,928

9,159

5,499

Medical Cannabis

1,208

110

2,596

136

Gross profit before fair value adjustments (‘000s)

1,693

323

3,829

1,079

Gross profit from Medical Cannabis

1,079

100

2,311

120

General and administrative costs (‘000s)

-4,647

-5,341

-14,667

-15,719

Net loss (‘000s)

-3,337

-6,715

-13,641

-21,665

Adjusted EBITDA (1) (‘000s)

-3,772

-4,706

-11,730

-14,426

Net loss per share (basic and diluted)

0.02

0.06

0.09

0.19

Weighted average shares outstanding (‘000s)

177,029

117,644

159,688

116,937

(1)

Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization or in this case loss) is a non-International
Financial Reporting Standards (“IFRS“) measure calculated as net loss before tax as reported under IFRS and adding back
share-based compensation expense, transaction fees, unrealized gain on changes in fair value of biological assets,
depreciation and non-recurring items. Refer to the “Non-IFRS Measures” note below for further information and the
Company’s MD&A for a reconciliation.

Key Operating Statistics

3 Months Ended
Sept 30 2021

3 Months Ended
Sept 30 2020

9 Months Ended
Sept 30 2021

9 Months Ended
Sept 30 2020

Canadian dollars

Medical Cannabis

Revenue generating countries (#)

4

2

4

2

Latin America (Units)

15,621

380

34,899

2,231

Europe (Sell-out Grams)

33,265

N/A

52,785

3,810

Health Services

Patient interactions (#)

38,900

27,788

104,215

73,415

Wellness

Units (#)

2,322

3,688

8,253

13,241

“In Q3, we achieved strong results and broke revenue and profitability milestones, surpassing our first million dollars in medical cannabis revenues and gross profits. Prescription growth were driven by our patient-focused operations in Colombia and Germany. In the first 9 months of 2021, we have already exceeded 2020 medical cannabis sales by more than 600% while maintaining medical cannabis margins of over 89%. ” comments Alvaro Torres, Chief Executive Officer and Director of the Company.

Mr. Torres continues, “As expected, Europe is becoming a more significant region for Khiron, representing 31% of our medical cannabis revenue. With the opening of ZereniaTM Clinics in the UK, we have now established an international clinic footprint that will continue to drive sustainable growth in the future. A year ago, our Company was just starting medical cannabis sales in Colombia, and now we have 15 clinics, in 5 countries, and soon in Mexico. We are very excited about our quarterly growth rate, and the growing evidence that Khiron is fulfilling its mission to improve the quality of life of our patients.”

About Khiron Life Sciences Corp.
Khiron is a leading vertically integrated international medical cannabis company with core operations in Latin America and Europe. Leveraging wholly-owned medical health clinics and proprietary telemedicine platforms, Khiron combines a patient-oriented approach, physician education programs, scientific expertise, product innovation, and agricultural infrastructure to drive prescriptions and brand loyalty with patients worldwide. The Company has a sales presence in ColombiaPeruGermany, UK, and Brazil and is positioned to commence sales in Mexico. 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.

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