Khiron Life Sciences Corp. (TSXV: KHRN), (OTCQX: KHRNF), (Frankfurt: A2JMZC), a vertically integrated cannabis leader with core operations in Latin America and Europe, has released its financial results for the first quarter (Q1) ended March 31, 2020, showing strong opportunity for growth despite increasing losses.
The Company recorded a net loss of $9.2 million in Q1 2020. This compares to a net loss of $8.0 million in Q1 2019. Adjusted EBITDA is comparable between periods at $5.9 million.
Revenues decreased in Q1 2020 compared to Q1 2019 due to the impact of COVID 19, the appreciation of the Canadian dollar by an average 6% relative to the Colombian peso and the suspension of surgical procedures at the Company’s health centres after the Colombian government declared a national emergency in March 2020, which required suspension of invasive surgeries. Effective May 26, 2020 the health centres have resumed these surgical procedures, and the Company expects to fill the backlog of suspended surgeries throughout the year. Notwithstanding, the health services operating segment increased its gross margin to 21% in Q1 2020, compared to 18% in Q1 2019.
Alvaro Torres, Khiron CEO and director, commented: “During Q1 2020, Khiron achieved major milestones that position Khiron as the leading medical cannabis company in Latin America. Most importantly, we achieved these milestones in the middle of an extraordinary global health and social crisis, which speaks to the Company’s resilience and ability to innovate and adapt to the changing environment. As of today, Khiron is the first and only company to sell low- and high-THC medical cannabis in Colombia, and we have achieved significant milestones in our other target countries, which position us to enter the execution phase of our business strategy.
With the dramatic global impact from the COVID-19 pandemic in the quarter we acted swiftly, securing authorization to remain operational in Colombia as an essential service while adjusting our global priorities and spending to appropriately reflect the anticipated revenue impact. The health of all our staff and their families remain a priority for us in this challenging time and as we emerge from the pandemic, we will continue to provide support for their wellbeing and for our community.”
Khiron Life Sciences Corp. is the dominant integrated medical cannabis company in Latin America. The Company is fully authorised to manufacture and fill prescriptions for high- and low-THC medical cannabis in Colombia and has the first approved line of CBD cosmetic products on shelf in Colombia, and available in the United States and the United Kingdom.
Corporate Financial Highlights
Source | Khiron Life Sciences Corp.