- LOI with Copservir Ltda, Colombia's largest pharmacy chain with over
900 pharmacies across 200 cities and municipalities across the
country, and sales of over CAD 500
Million per year
- 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
- Upon execution of a definitive agreement, Khiron expects to
establish Colombia's most advanced
distribution platform for medical cannabis products
- Provides ease of access at pharmacy stores and virtual sales
channels including www.lopido.com and www.larebajavirtual.com,
enabling patients to choose the most convenient and compliant way
to obtain their medical cannabis prescriptions
TORONTO, April 29, 2019 /CNW/ - Khiron Life Sciences Corp.
("Khiron" or the "Company") (TSXV: KHRN),
(OTCQB: KHRNF), (Frankfurt:
A2JMZC), an integrated cannabis company with its core operations in
Latin America, announced today
that the Company has signed an LOI with Copservir Ltda.,
Colombia's largest pharmacy chain,
to distribute Khiron's medical cannabis products across the
country. The companies have agreed to initial discounting and
commercial fees and will work towards establishing a definitive
commercial contract and detailed distribution plan to begin sales
in the second half of 2019.
As Colombia's largest pharmacy
chain, Copservir Ltda., operates over 900 stores across 200 cities
and municipalities with a traditional brick and mortar presence
representing 75% of its CAD 500
Million / year sales. In addition, a growing virtual
presence represents 25% of its sales with an annual growth rate of
over 20%. The company combines its retail and virtual presence with
a strong distribution and logistics platform with four distribution
centres in the main cities of Colombia and a home delivery service in 120
cities. This makes the Colombian Government-administered company
the largest by store-count pharmacy chain in the country.
On completion of the agreement, Khiron will have established a
compliant and secure distribution platform for its medical products
across Colombia, starting with its
custom-made pharmacy compound strategy. Copservir's extensive
brick-and-mortar presence, virtual channel and distribution
capability will allow Khiron to offer patients across the country
the option for pick-up or home delivery of their medical cannabis
formulations. Coupled with Khiron's ongoing medical education
platform to educate and engage doctors and physicians across the
country, this distribution strategy will allow Khiron to reach more
patients in a safe, compliant and innovative matter.
Alvaro Torres, Khiron CEO and
Director commented, "The proposed agreement with Copservir Ltda.
represents a significant development for Khiron, offering the
opportunity to leverage our first mover advantage to distribute
medical cannabis products across Colombia and service the more than 5 million
potential patients in the country. We also view Copservir entering
the medical cannabis market as a milestone validation of the market
opportunity in Colombia. By
offering a platform that makes it easier for patients to access
their formulations in a compliant and safe manner, Khiron
establishes a leadership position in the medical cannabis market in
Colombia."
The companies will work towards establishing definite commercial
and distribution agreements to begin sales in the second half of
2019.
About Copservir Ltda.
Copservir Ltda., commercializes products and services under the
commercial brand La Rebaja across a network of strategically
located points of sales across the entire Colombian territory, with
903 points of sales in 200 municipalities, with more than 6,500
employees. Established in 1995, it is the largest pharmacy chain in
Colombia in terms of retail
presence and has developed strong virtual channels
through www.lopido.com and www.larebajavirtual.com.
Further information can be found
at http://www.copservir.com
About Khiron
Khiron Life Sciences Corp. is positioned to be the dominant
integrated cannabis company in Latin
America. Khiron 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. In May 2018, Khiron
listed on the TSX Venture Exchange, becoming the first Colombian
based medical cannabis company to trade on any exchange
globally.
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/
To be added to the distribution list, please email
khiron@kcsa.com with "Khiron" in the subject line.
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 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 anticipated benefits of the distribution agreements,
including online and physical retail consumer exposure, and
potential expansion into other jurisdictions, among others. 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.
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SOURCE Khiron Life Sciences Corp.