- Q3 2021 revenue increased 83% YoY to $3.5 million compared to the previous year
- Gross profit before changes in FV in Q3 2021 increased 62%
sequentially to $1.7 million
- Medical cannabis revenues increased 46% sequentially to
$1.2 million
- Continued strong gross margins for medical cannabis segment at
89%
TORONTO, Nov. 22, 2021 /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, 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
|
Management Commentary
"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."
Khiron invites individual and institutional investors, as well
as advisors and analysts, to attend the Company's Third Quarter
2021 Conference Call, followed by a Q&A session.
Conference Call Date: November 22,
2021
Time 10:00 a.m. Eastern
time
Toll-free dial-in number: 1-877-270-2148
International dial-in number: 1-412-902-6510
Please call the conference telephone number 5-10 minutes prior
to the start time. An operator will register your name and
organization. If you have any difficulty connecting with the
conference call, please contact Khiron Investor Relations team at
(647) 556-5750
A telephonic replay of the conference call will also be
available after 8:00 p.m. Eastern
time on the same day through November
29, 2021.
Toll-free replay number: 1-877-344-7529
International replay number: 1-412-317-0088
Canada Toll Free: 855-669-9658
Replay ID: 10162133
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.
Visit Khiron online at investors.khiron.ca and on Linkedin
at https://www.linkedin.com/company/khiron-life-sciences-corp/
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.