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 |
3 Months Ended |
9 Months Ended |
9 Months Ended |
|
|
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 |
Key Operating Statistics
|
3 Months Ended |
3 Months Ended |
9 Months Ended |
9 Months Ended |
|
|
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 Colombia, Peru, Germany, 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.
