Canada NewsWire
TORONTO, May 1, 2019
TORONTO, May 1, 2019 /CNW/ - Khiron Life Sciences Corp. ("Khiron" or the "Company") (TSXV: KHRN), (OTCQB: KHRNF), (Frankfurt: A2JMZC), is pleased to report its financial results for the year ended December 31, 2018. Khiron has filed today its audited consolidated financial statements and related management's discussion and analysis, both of which are available on Khiron's profile at www.sedar.com. All financial information in this press release is reported in Canadian dollars, unless otherwise indicated.
Quarterly Summary of Financial Results
Q1 2018 | Q2 2018 | Q3 2018 | Q4 2018 | |||||
Revenues | $ | - | $ | - | $ | - | $ | 891,677 |
Comprehensive Loss | 2,031,848 | 6,203,970 | 5,829,913 | 6,165,034 | ||||
Weighted avg. shares | 33,042,295 | 40,566,495 | 49,851,687 | 70,187,318 | ||||
Total assets | 2,345,202 | 8,601,765 | 18,775,679 | 40,348,817 | ||||
Total non-current | - | - | - | 2,353,080 |
December 31, 2018 | ||
Revenues | $ | 891,677 |
Comprehensive Loss | 20,230,765 | |
Weighted avg. shares | 48,518,873 | |
Total assets | $40,348,817 | |
Total non-current financial liabilities | 2,353,080 |
Financial Highlights
Khiron achieves first sales during the fourth quarter of fiscal 2018. Sales totalled $891,677 and were attributable to the commercialization of Kuida branded cosmeceutical products, and the acquisition of ILANS, a network of medical clinics in Bogota, Colombia. These initial sales represent an initial market entrance in advance of any other licenced producer in Colombia. Gross margin on sales was 33.3%. Management anticipates gross margin to increase with the introduction of higher margin medical cannabis products.
Operating costs were consistent with management expectations and totalled to $20,093,697. The majority of these expenditures were comprised of general and administrative expenses of $9,560,797. The total comprehensive loss for the period was $20,230,765.
Cash and cash equivalents as at year-end were $18,963,272. These amounts are reflective of equity capital and warrant exercises completed during the period. Cash resources have enabled the Company to accelerate its business plan and expand its team across markets. Subsequent to the reporting period, the Company also completed a bought deal financing for gross proceeds of $28,842,000 in Q1 2019.
Year-end accounts receivable and accounts payable were, respectively, $4,323,771 and $6,817,235. These amounts are directly attributable to the commercial operations of the Company, including accounts receivable and payables associated with the ILANS acquisition. The Company had total working capital of $17,493,835 as at December 31, 2018.
Management Commentary
Alvaro Torres, Khiron CEO and Director, commented: "Fiscal 2018 marked an important year for Khiron as we accomplished a number of significant objectives towards delivering on our strategy of becoming an internationally recognized, market-leading cannabis company. From a start-up to a team over 250, we have established operations and activity in multiple jurisdictions, acquired medical clinics, developed a market-leading skincare brand, entered into research partnerships, set up educational programs and received patient association endorsements."
Mr. Torres continued, "We operate in a complex, fast-moving industry, and I would like to recognize our incredible team who have worked hard to bring the Khiron vision to life. It has been their passion and commitment that has made our significant progress possible."
Mr. Torres concluded, "We have much work to do in growing the Company and remain focused on executing all aspects of our business to generate value for our shareholders and bring medical cannabis products to people in Latin America and globally."
2018 Highlights
Listing
Capital
Geographic Expansion
Patient Association Endorsements
Product Development and Portfolio
Revenue Generation and Product Distribution
Grow Status – Regulatory and Capacity
Merger and Acquisitions
Key Board and Management Appointments
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 [email protected] with "Khiron" in the subject line.
Cautionary Note Regarding Forward-Looking Statements
This news release contains forward-looking information within the meaning of applicable Canadian and United States securities laws. Often, but not always, forward-looking information can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "estimates", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Khiron or its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information contained in this news release. Examples of such statements include statements with respect the future market share, product development, build out of facilities, the proposed acquisitions of NettaGrowth and CanapaLife Group, and additional market and product expansion, among others. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information, including risks contained in the Company's annual information form filed with Canadian securities regulators available on the Company's issuer profile on SEDAR at www.sedar.com. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information and no assurance can be given that such events will occur in the disclosed time frames or at all. The forward-looking information included in this news release are made as of the date of this news release and the Company does not undertake an obligation to publicly update such forward-looking information to reflect new information, subsequent events or otherwise unless required by applicable securities legislation.
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.
SOURCE Khiron Life Sciences Corp.
View original content to download multimedia: http://www.newswire.ca/en/releases/archive/May2019/01/c0943.html