- 2021 total revenue increased over 60% YoY to $12.8 million compared to the previous year
- Corporation's medical cannabis sales in 2021 increased to
$4.6 million, representing 36% of
total revenue
- The Corporation forecasts Q1 2022 sales revenue of ~
$4.5 million for the quarter
- Gross profit increased over 230% YoY to $4.9 million, driven by the continuous growth of
the highly profitable medical cannabis segment
- Germany and the U.K. now
represents more than 30% of the Corporation's medical cannabis
sales as of Q4 2021
TORONTO, May 2, 2022
/CNW/ - Khiron Life Sciences Corp. ("Khiron" or the "Corporation")
(TSXV: KHRN) (OTCQX: KHRNF) (Frankfurt: A2JMZC), the global medical
cannabis leader expanding throughout Latin America and Europe, announced today its financial results
for the year ended and quarter ended December 31, 2021. These filings are available
for review on the Corporation'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 Financial Results:
|
3 Months Ended
Dec 31 2021
|
3 Months Ended
Dec 31 2020
|
Year Ended in
Dec 31 2021
|
Year Ended in
Dec 2020
|
Canadian dollars
('000s)
|
|
$
|
$
|
$
|
$
|
Revenues
|
3,636
|
2,518
|
12,795
|
8,017
|
Medical Cannabis
|
2,011
|
234
|
4,608
|
370
|
Gross profit before
fair value adjustments
|
1,083
|
402
|
4,912
|
1,481
|
Gross profit from Medical Cannabis before fair
value adjustments
|
1,068
|
60
|
3,379
|
180
|
General and
administrative costs
|
5,304
|
5,842
|
22,539
|
26,593
|
Net loss (2)
|
(19,502)
|
(2,374)
|
(33,129)
|
(24,039)
|
Adjusted
EBITDA (1)
|
(5,649)
|
(4,336)
|
(17,379)
|
(18,762)
|
Net loss per share
(basic and diluted)
|
0.11
|
0.02
|
0.20
|
0.20
|
Weighted average shares
outstanding
|
179,144
|
130,292
|
164,517
|
120,294
|
(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 Corporation's MD&A for a
reconciliation.
|
(2)
|
In 2021, the
Corporation has reported a one-time, non-cash write-off of the
intangible asset associated with the Uruguay cultivation license
and will continue to focus on export of finished product from
Colombia into Brazil and generating demand through its Zerenia™
clinics and external doctor education. The Corporation has taken
the appropriate inventory write-downs in 2021 and is discontinuing
sales of the Kuida™ product line, focusing on its high growth/ high
margin medical cannabis products and expansion of its medical
cannabis clinic network in LatAm and Europe.
|
Annual 2021 Highlights:
- The Corporation continues to benefit from increasing patient
awareness and favorable regulatory progress internationally.
- Gross margins, before fair value adjustments of 73% on its
medical cannabis revenue stream in 2021 compared to 49% for the
previous year 2020.
- The Corporation continues to prudently manage expenses, with
2021 general and administrative ("G&A") expenses declining over
15% year-over-year.
Key Operating Statistics
|
3 Months Ended
Dec 31 2021
|
3 Months Ended
Dec 31 2020
|
Year Ended in
Dec 31 2021
|
Year Ended in
Dec 2020
|
|
Medical
Cannabis
|
|
|
|
|
Revenue generating countries (#)
|
5
|
2
|
5
|
2
|
Latin America (Bottles)
|
19,752
|
3,370
|
54,651
|
4,130
|
Europe (Grams)
|
45,905
|
3,870
|
133,140
|
6,870
|
Health
Services
|
|
|
|
|
Patient interactions (#)
|
36,700
|
28,457
|
140,915
|
99,145
|
Management commentary, subsequent
events and 2022 Highlights:
Alvaro Torres, Khiron CEO and
Director, comments, "2021 was a transformational year for the
Corporation, using a unique patient-oriented strategy has allowed
us to continue demonstrating quarterly growth, with a strong
commitment to improving the quality of patients' lives. Khiron's
focus includes creating a meaningful brand that resonates with
patients and doctors, selling highly profitable products, creating
unique real-world data demonstrating the positive effects of
cannabis for medical usage, and finally, diversifying our
geographic revenue streams."
Mr. Torres added, "The success we have experienced in
Europe so far is due to Khiron's
ability to leverage our novel understanding of medical cannabis in
Latin America, driven by our
health services strategy and validated by the extraordinary
evidence we build every day from the data generated in our clinics.
Khiron is currently one of the top-selling brands of medical
cannabis in the UK, and we have grown our market share rapidly in
Germany. We recently opened our
first hybrid Zerenia™ clinic in the UK, and we have received
excellent adoption from both patients and doctors."
Mr. Torres continues, "In Colombia, growth was partly due to our efforts
to ensure insurance coverage for patients by the country's
principal insurance companies. To date, in Colombia, our Zerenia™ Clinics have served
more than 20,000 individual patients with medical cannabis. In
Peru, we obtained key final
product registrations ("Alixen"), and we will continue to grow as
we introduce new THC-based formulations to the Peruvian market.
During the second half of the year, we sold our first
Khiron-branded product in Brazil,
a market of more than 230 million people. We are currently
completing construction of our first clinic in Rio de Janeiro, and introducing THC-based
medications, which will position us as one of the top companies in
medical cannabis in this country. As we focus on our B2C medical
cannabis strategy, Khiron has also decided to discontinue sales of
our KuidaTM CBD-based cosmetics product line. Although
we are very proud of the brand we created, it is clear that our
biggest growth opportunities are within the medical cannabis
sector, where revenue is increasing quickly. In addition, the
Company no longer requires our cannabis cultivation license in
Uruguay as we are currently
exporting our products directly from Colombia. The Uruguay asset was purchased in 2019 for a
total consideration of approximately 8.5 million shares."
"These significant efforts from our team at Khiron provide
confidence that 2022 will continue to be a very positive year for
our entire corporation, as we support the well-being of our
patients across the globe, and fuel Khiron's continued
international expansion." comments Alvaro
Torres, Chief Executive Officer and Director of the
Corporation.
Webcast Details:
Khiron invites individual and institutional investors, as well
as advisors and analysts, to attend the Corporation's Year End and
Fourth Quarter 2021 Conference Call, followed by a Q&A
session.
Conference Call Date: May
2nd, 2022
Time 10:00 a.m. Eastern time
Toll-free dial-in number: 1-888-664-6383
International dial-in number: 1-416-764-8650
About Khiron Life Sciences
Corp.
Khiron is a leading vertically integrated international medical
cannabis corporation with core operations in Latin America and Europe. Leveraging medical health clinics and
proprietary telemedicine platforms, Khiron combines a
patient-oriented approach, physician education programs,
scientific, product innovation, and cannabis operations expertise
to drive prescriptions and brand loyalty with patients worldwide.
The Corporation has a sales presence in Colombia, Peru, Germany, UK, and Brazil and is positioned to commence sales in
Mexico. The Corporation 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
Linkedin
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.