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voxeljet AG Reports Financial Results for the First Quarter Ended March 31, 2019
Reading Time: 13 minutes
FRIEDBERG, Germany–(BUSINESS WIRE)–voxeljet AG (NYSE: VJET) (the “Company”, or “voxeljet”), a leading
provider of high-speed, large-format 3D printers and on-demand parts
services to industrial and commercial customers, today announced
consolidated financial results for the first quarter ended March 31,
2019.
Highlights – First Quarter 2019(1)
-
Total revenues for the first quarter increased 10.2% to kEUR 5,565
from kEUR 5,052 -
Gross profit margin decreased to 34.4% from 42.2% to kEUR 1,913 from
kEUR 2,133 - Systems revenues increased 75.6% to kEUR 2,415 from kEUR 1,375
- Services revenues decreased 14.3% to kEUR 3,150 from kEUR 3,677
- Reaffirm full year 2019 guidance
(1)Certain comparative figures for the 3-month
period ended March 31, 2018 were restated for immaterial
errors. For further information, see Note 9 of the Q3-2018 condensed
consolidated interim financial statements.
Dr. Ingo Ederer, Chief Executive Officer of voxeljet, commented, “We had
a strong first quarter with results that confirm why we are so excited
about our potential to establish a new manufacturing standard. Just
recently, we installed the first print engine into VJET X: This print
engine is the heart of our new additive mass manufacturing solution and
I firmly believe one of the most advanced piece of technology in the
whole additive manufacturing industry. The shifts we have made to our
business and our deeper focus on the three core areas of innovation,
integration and speed are igniting the next phase of growth and
profitability for voxeljet.”
First Quarter 2019 Results
Revenues for the first quarter of 2019 increased by 10.2% to kEUR 5,565
compared to kEUR 5,052 in the first quarter of 2018.
Revenues from our Systems segment, which focuses on the development,
production and sale of 3D printers, increased 75.6% to kEUR 2,415 in the
first quarter of 2019 from kEUR 1,375 in last year’s first quarter. The
Company delivered two new and one used and refurbished 3D printer in the
first quarter of 2019, compared to two used and refurbished printers
delivered in last year’s first quarter. Systems revenues also include
all Systems-related revenues from consumables, spare parts and
maintenance. The increase of revenues from our Systems segment was
mainly due to higher revenues from Systems-related revenues, while
revenue from the sale of 3D printers slightly increased. The increase of
Systems-related revenues reflects the higher installed base of 3D
printers in the market and the associated growth in aftersales
activities. Systems revenues represented 43.4% of total revenues in the
first quarter of 2019 compared to 27.2% in last year’s first quarter.
Revenues from our Services segment, which focuses on the printing of
on-demand parts for our customers, decreased 14.3% to kEUR 3,150 in the
first quarter of 2019 from kEUR 3,677 in the comparative period of 2018.
This was mainly due to lower revenue contributions from our German
operation. We received a lower number of orders mainly reflecting a
lower demand from the automotive industry. This was partially offset by
increased revenue contributions from our subsidiary voxeljet America
Inc. (“voxeljet America”). The increase in revenue at our American
service center was mainly attributable to a volume contract which we
entered into during the second quarter of 2018.
Cost of sales was kEUR 3,652 for the first quarter of 2019 compared to
kEUR 2,919 for the first quarter of 2018.
Gross profit and gross profit margin were kEUR 1,913 and 34.4%,
respectively, in the first quarter of 2019 compared to kEUR 2,133 and
42.2%, respectively in the first quarter of 2018.
Gross profit for our Systems segment increased to kEUR 829 in the first
quarter of 2019 from kEUR 381 in the first quarter of 2018. Gross profit
margin for this segment increased to 34.3% in the first quarter of 2019
compared to 27.7% in the first quarter of 2018. This was mainly due to
higher gross profit margin contributions from Systems-related revenues
resulting from a more favorable ratio of revenues to fixed costs
compared to last year’s first quarter.
Gross profit for our Services segment significantly decreased to
kEUR 1,084 in the first quarter of 2019 compared to kEUR 1,752 in the
first quarter of 2018. The gross profit margin for this segment
decreased to 34.4% in the first quarter of 2019 from 47.6% in the first
quarter of 2018. This was mainly related to lower gross profit margin
from the German service center as a result of lower utilization. Our
subsidiary voxeljet America also contributed lower gross profit margin
due to higher depreciation expense, as we added additional 3D printers
to our American service center during the third quarter of 2018,
including one VX4000 system.
Selling expenses remained nearly unchanged at kEUR 1,676 for the first
quarter of 2019 compared to kEUR 1,736 in the first quarter of 2018,
despite an increase in revenues. We incurred higher shipping and
packaging expenses, which vary from quarter to quarter depending on
quantity and types of products, as well as the destinations where those
goods are being delivered.
Administrative expenses were kEUR 1,439 for the first quarter of 2019
compared to kEUR 1,232 in the first quarter of 2018. This was mainly due
to an increase in headcount resulting in higher personnel expenses as
part of management’s remediation efforts on the material weakness
identified in the prior year. In addition, we incurred higher consulting
fees as part of our project to expand our Enterprise Resource Planning
(“ERP”) system. We have hired additional employees in the IT-Team for
the management of SAP ERP system related tasks.
Research and development (“R&D”) expenses increased to kEUR 1,705 in the
first quarter of 2019 from kEUR 1,597 in the first quarter of 2018. The
increase of kEUR 108 was mainly due to higher personnel expenses as a
result of a slight increase in headcount.
Other operating expenses in the first quarter of 2019 were kEUR 13
compared to kEUR 358 in the prior year period. This was mainly due to
lower losses from foreign currency transaction for the first quarter of
2019 compared to the first quarter of 2018.
Other operating income was kEUR 978 for the first quarter of 2019
compared to kEUR 402 in the first quarter of 2018. The increase was
mainly due to higher gains from foreign currency transactions.
The changes in foreign currency gains and losses were primarily driven
by the valuation of the intercompany loans granted by the parent company
to our UK and US subsidiaries.
Operating loss was kEUR 1,942 in the first quarter of 2019, compared to
an operating loss of kEUR 2,388 in the comparative period in 2018. The
improvement was primarily related to a significant increase of other
operating income partially offset by a lower gross profit.
Financial result was negative kEUR 858 in the first quarter of 2019,
compared to a financial result of positive kEUR 678 in the comparative
period in 2018. The significant decrease was mainly driven by the
revaluation of the derivative financial instruments in connection with
the European Investment Bank loan.
Net loss for the first quarter of 2019 was kEUR 2,788 or EUR 0.57 per
share, as compared to net loss of kEUR 1,716, or EUR 0.46 per share, in
the first quarter of 2018.
Based on a conversion rate of five American Depositary Shares (“ADSs”)
per ordinary share, net loss was at EUR 0.11 per ADS for the first
quarter of 2019, compared to a net loss of EUR 0.09 per ADS for the
first quarter of 2018. Earnings per share is computed by dividing net
income attributable to stockholders of the parent by the
weighted-average number of ordinary shares outstanding during the
periods. Earnings per ADS is calculated by dividing the above earnings
per share by five as each ordinary share represents five ADSs.
Business Outlook
Our revenue guidance for the second quarter of 2019 is expected to be in
the range of kEUR 5,000 to kEUR 5,250.
We reaffirm our guidance for the full year ending December 31, 2019:
-
Full year revenue is expected to be in the range of kEUR 27,000 to
kEUR 30,000 - Gross margin is expected to be above 40%
-
Operating expenses for the full year are expected as follows: selling
and administrative expenses are expected to be in the range of
kEUR 12,000 to kEUR 12,500 and R&D expenses are projected to be
between approximately kEUR 5,500 and kEUR 6,000. Depreciation and
amortization expense is expected to be between kEUR 3,750 and
kEUR 4,000. -
Adjusted EBITDA for the second half of the year ending December 31,
2019 is expected to be neutral-to-positive. Adjusted EBITDA is defined
as net income (loss), as calculated under IFRS accounting principles
before interest (income) expense, provision (benefit) for income
taxes, depreciation and amortization, and excluding other operating
(income) expense resulting from foreign exchange gains or losses on
the intercompany loans granted to the subsidiaries. -
Capital expenditures are projected to be in the range of kEUR 2,000 to
kEUR 2,500, which primarily includes ongoing investments in our global
subsidiaries.
Our total backlog of 3D printer orders at March 31, 2019 was kEUR 3,422,
which represents six 3D printers. This compares to a backlog of kEUR
3,392 representing six 3D printers, at December 31, 2018. As production
and delivery of our printers is generally characterized by lead times
ranging between three to nine months, the conversion rate of order
backlog into revenue is dependent on the equipping process for the
respective 3D printer as well as the timing of customers’ requested
deliveries.
At March 31, 2019, we had cash and cash equivalents of kEUR 8,482 and
held kEUR 8,924 of investments in bond funds and kEUR 1,253 in one note
receivable, which are included in current financial assets on our
consolidated statements of financial position.
Webcast and Conference Call Details
The Company will host a conference call and webcast to review the
results for the first quarter on Friday, May 17, 2019 at 8:30 a.m.
Eastern Time. Participants from voxeljet will include its Chief
Executive Officer, Dr. Ingo Ederer, and its Chief Financial Officer,
Rudolf Franz, who will provide a general business update and respond to
investor questions.
Interested parties may access the live audio broadcast by dialing
1-877-705-6003 in the United States/Canada, or 1-201-493-6725 for
international, Conference Title “voxeljet AG First Quarter 2019
Financial Results Conference Call”. Investors are requested to access
the call at least five minutes before the scheduled start time in order
to complete a brief registration. An audio replay will be available
approximately two hours after the completion of the call at
1-844-512-2921 or 1-412-317-6671, Replay Conference ID number 13690018.
The recording will be available for replay through May 24, 2019.
A live webcast of the call will also be available on the investor
relations section of the Company’s website. Please go to the website https://event.webcasts.com/starthere.jsp?ei=1241565&tp_key=90fb6173de
at least fifteen minutes prior to the start of the call to register,
download and install any necessary audio software. A replay will also be
available as a webcast on the investor relations section of the
Company’s website.
Non-IFRS Measure
The Company uses Adjusted EBITDA as a supplemental financial measure of
its financial performance. Adjusted EBITDA is defined as net income
(loss), as calculated under IFRS accounting principles, interest
(income) expense, provision (benefit) for income taxes, depreciation and
amortization, and excluding other (income) expense resulting from
foreign exchange gains or losses on the intercompany loans granted to
the subsidiaries. Management believes Adjusted EBITDA to be an important
financial measure because it excludes the effects of fluctuating foreign
exchange gains or losses on the intercompany loans granted to its
subsidiaries. We are unable to reasonably estimate the potential
full-year financial impact of foreign currency translation because of
volatility in foreign exchange rates. Therefore, we are unable to
provide a reconciliation our forward-looking guidance for non-GAAP
Adjusted EBITDA without unreasonable effort as certain information
necessary to calculate such measure on an IFRS basis is unavailable,
dependent on future events outside of our control and cannot be
predicted without unreasonable efforts by the Company.
Management regularly uses both IFRS and non-IFRS results and
expectations internally to assess its overall performance of the
business, making operating decisions, and forecasting and planning for
future periods. Management believes that Adjusted EBITDA is a useful
financial measure to the Company’s investors as it helps investors
better understand and evaluate the projections our management board
provides. The Company’s calculation of Adjusted EBITDA may not be
comparable to similarly titled financial measures reported by other peer
companies. Adjusted EBITDA should not be considered as a substitute to
financial measures prepared in accordance with IFRS.
Exchange rate
This press release contains translations of certain U.S. dollar amounts
into euros at specified rates solely for the convenience of readers.
Unless otherwise noted, all translations from U.S. dollars to euros in
this press release were made at a rate of USD 1.1235 to EUR 1.00, the
noon buying rate of the Federal Reserve Bank of New York for the euro on
March 31, 2019.
About voxeljet
voxeljet is a leading provider of high-speed, large-format 3D
printers and on-demand parts services to industrial and commercial
customers. The Company’s 3D printers employ a powder binding, additive
manufacturing technology to produce parts using various material sets,
which consist of particulate materials and proprietary chemical binding
agents. The Company provides its 3D printers and on-demand parts
services to industrial and commercial customers serving the automotive,
aerospace, film and entertainment, art and architecture, engineering and
consumer product end markets. For more information, visit http://www.voxeljet.de/en/.
Cautionary Statement on Forward-Looking Statements
This press release contains forward-looking statements concerning our
business, operations and financial performance. Any statements that are
not of historical facts may be deemed to be forward-looking statements.
You can identify these forward-looking statements by words such as
‘‘believes,’’ ‘‘estimates,’’ ‘‘anticipates,’’ ‘‘expects,’’ ‘‘projects,’’
‘‘plans,’’ ‘‘intends,’’ ‘‘may,’’ ‘‘could,’’ ‘‘might,’’ ‘‘will,’’
‘‘should,’’ ‘‘aims,’’ or other similar expressions that convey
uncertainty of future events or outcomes. Forward-looking statements
include statements regarding our intentions, beliefs, assumptions,
projections, outlook, analyses or current expectations concerning, among
other things, our results of operations, financial condition, business
outlook, the industry in which we operate and the trends that may affect
the industry or us. Although we believe that we have a reasonable basis
for each forward-looking statement contained in this press release, we
caution you that forward-looking statements are not guarantees of future
performance. All of our forward-looking statements are subject to known
and unknown risks, uncertainties and other factors that are in some
cases beyond our control and that may cause our actual results to differ
materially from our expectations, including those risks identified under
the caption “Risk Factors” in the Company’s Annual Report on Form 20-F
and in other reports the Company files with the U.S. Securities and
Exchange Commission, as well as the risk that our revenues may fall
short of the guidance we have provided in this press release. Except as
required by law, the Company undertakes no obligation to publicly update
any forward-looking statements for any reason after the date of this
press release whether as a result of new information, future events or
otherwise.
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
| Notes | 3/31/2019 | 12/31/2018 (1) | ||||
| (€ in thousands) | ||||||
| unaudited | ||||||
| Current assets | 36,519 | 37,936 | ||||
| Cash and cash equivalents | 7 | 8,482 | 7,402 | |||
| Financial assets | 7 | 10,177 | 12,905 | |||
| Trade receivables, net | 4,857 | 6,030 | ||||
| Inventories | 4 | 11,156 | 10,064 | |||
| Income tax receivables | 37 | 13 | ||||
| Other assets | 1,810 | 1,522 | ||||
| Non-current assets | 35,371 | 31,416 | ||||
| Financial assets | 7 | 1,632 | 2,234 | |||
| Intangible assets | 1,404 | 1,420 | ||||
| Property, plant and equipment, net | 2, 5 | 32,255 | 27,675 | |||
| Investments in joint venture | 32 | 33 | ||||
| Other assets | 48 | 54 | ||||
| Total assets | 71,890 | 69,352 | ||||
| Notes | 3/31/2019 | 12/31/2018 (1) | ||||
| Current liabilities | 6,732 | 6,302 | ||||
| Trade payables | 7 | 2,507 | 2,945 | |||
| Contract liabilities | 7 | 1,027 | 817 | |||
| Financial liabilities | 2, 7 | 1,377 | 850 | |||
| Other liabilities and provisions | 6 | 1,821 | 1,690 | |||
| Non-current liabilities | 20,780 | 16,575 | ||||
| Deferred tax liabilities | 63 | 76 | ||||
| Financial liabilities | 2, 7 | 20,539 | 16,321 | |||
| Other liabilities and provisions | 6 | 178 | 178 | |||
| Equity | 44,378 | 46,475 | ||||
| Subscribed capital | 4,836 | 4,836 | ||||
| Capital reserves | 87,572 | 86,803 | ||||
| Accumulated deficit | (49,184) | (46,400) | ||||
| Accumulated other comprehensive income | 907 | 1,201 | ||||
| Equity attributable to the owners of the company | 44,131 | 46,440 | ||||
| Non-controlling interest | 247 | 35 | ||||
| Total equity and liabilities | 71,890 | 69,352 |
See accompanying notes to unaudited condensed consolidated interim
financial statements.
(1)The Company has initially applied IFRS 16 as of January 1,
2019, using the modified retrospective approach. Under this approach,
comparative information is not restated and the cumulative effect of
initially applying IFRS 16 is recognized in retained earnings at the
date of initial application. For further information, see Note 2 of the
condensed consolidated interim financial statements.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (UNAUDITED)
| Three months ended March 31, | ||||||
| Notes | 2019 | 2018 (1) (2) | ||||
| (€ in thousands except share and share data) | ||||||
| Revenues | 9, 10 | 5,565 | 5,052 | |||
| Cost of sales | (3,652) | (2,919) | ||||
| Gross profit | 9 | 1,913 | 2,133 | |||
| Selling expenses | (1,676) | (1,736) | ||||
| Administrative expenses | (1,439) | (1,232) | ||||
| Research and development expenses | (1,705) | (1,597) | ||||
| Other operating expenses | (13) | (358) | ||||
| Other operating income | 978 | 402 | ||||
| Operating loss | (1,942) | (2,388) | ||||
| Finance expense | 8 | (917) | (268) | |||
| Finance income | 8 | 59 | 946 | |||
| Financial result | 8 | (858) | 678 | |||
| Loss before income taxes | (2,800) | (1,710) | ||||
| Income taxes | 12 | (6) | ||||
| Net loss | (2,788) | (1,716) | ||||
| Debt investment at FVOCI – net change in fair value | 106 | (15) | ||||
| Foreign currency translation differences | (400) | (64) | ||||
| Other comprehensive income | (294) | (79) | ||||
| Total comprehensive loss | (3,082) | (1,795) | ||||
| Loss attributable to: | ||||||
| Owners of the Company | (2,784) | (1,710) | ||||
| Non-controlling interests | (4) | (6) | ||||
| (2,788) | (1,716) | |||||
| Total comprehensive loss attributable to: | ||||||
| Owners of the Company | (3,078) | (1,789) | ||||
| Non-controlling interests | (4) | (6) | ||||
| (3,082) | (1,795) | |||||
| Weighted average number of ordinary shares outstanding | 4,836,000 | 3,720,000 | ||||
| Loss per share – basic/ diluted (EUR) | (0.58) | (0.46) | ||||
See accompanying notes to unaudited condensed consolidated interim
financial statements.
(1)The Company has initially applied IFRS 16 as of January 1,
2019, using the modified retrospective approach. Under this approach,
comparative information is not restated and the cumulative effect of
initially applying IFRS 16 is recognized in retained earnings at the
date of initial application. For further information, see Note 2 of the
condensed consolidated interim financial statements.
(2)Certain comparative figures for the 3-month period ended
March 31, 2018 were restated for immaterial errors. For further
information, see Note 9 of the Q3-2018 condensed consolidated interim
financial statements.
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED)
| Attributable to the owners of the company | ||||||||||||||
| Accumulated | ||||||||||||||
| other | ||||||||||||||
| Subscribed | Capital | Accumulated | comprehensive | Non-controlling | ||||||||||
| (€ in thousands) | capital | reserves | deficit | gain (loss) | Total | interests | Total equity | |||||||
| Balance at December 31, 2017 (2) | 3,720 | 76,227 | (37,480) | 1,380 | 43,847 | 71 | 43,918 | |||||||
| Adjustment on initial application of IFRS 15 | — | — | (100) | — | (100) | — | (100) | |||||||
| Adjustment on initial application of IFRS 9 | — | — | (63) | — | (63) | — | (63) | |||||||
| Adjusted balance at January 1, 2018 (2) | 3,720 | 76,227 | (37,643) | 1,380 | 43,684 | 71 | 43,755 | |||||||
| Loss for the period | — | — | (1,710) | — | (1,710) | (6) | (1,716) | |||||||
| Net changes in fair value of debt investments at FVOCI | — | — | — | (15) | (15) | — | (15) | |||||||
| Foreign currency translations | — | — | — | (64) | (64) | — | (64) | |||||||
| Equity-settled share-based payment | — | 129 | — | — | 129 | — | 129 | |||||||
| Balance at March 31, 2018 (2) | 3,720 | 76,356 | (39,353) | 1,301 | 42,024 | 65 | 42,089 | |||||||
| Attributable to the owners of the company | ||||||||||||||
| Accumulated | ||||||||||||||
| other | ||||||||||||||
| Subscribed | Capital | Accumulated | comprehensive | Non-controlling | ||||||||||
| (€ in thousands) | capital | reserves | deficit | gain (loss) | Total | interests | Total equity | |||||||
| Balance at December 31, 2018 (1) | 4,836 | 86,803 | (46,400) | 1,201 | 46,440 | 35 | 46,475 | |||||||
| Loss for the period | — | — | (2,784) | — | (2,784) | (4) | (2,788) | |||||||
| Net changes in fair value of debt investments at FVOCI | — | — | — | 106 | 106 | — | 106 | |||||||
| Foreign currency translations | — | — | — | (400) | (400) | — | (400) | |||||||
| Equity-settled share-based payment | — | 165 | — | — | 165 | — | 165 | |||||||
|
Share-based payment transaction with the non-controlling shareholder of a subsidiary |
— | 604 | — | — | 604 | 216 | 820 | |||||||
| Balance at March 31, 2019 | 4,836 | 87,572 | (49,184) | 907 | 44,131 | 247 | 44,378 | |||||||
See accompanying notes to unaudited condensed consolidated interim
financial statements.
(1)The Company has initially applied IFRS 16 as of January 1,
2019, using the modified retrospective approach. Under this approach,
comparative information is not restated and the cumulative effect of
initially applying IFRS 16 is recognized in retained earnings at the
date of initial application. For further information, see Note 2 of the
condensed consolidated interim financial statements.
(2)Certain comparative figures for the 3-month period ended
March 31, 2018 were restated for immaterial errors. For further
information, see Note 9 of the Q3-2018 condensed consolidated interim
financial statements.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
| Three months ended March 31, | ||||
| 2019 | 2018 (1) (2) | |||
| (€ in thousands) | ||||
| Cash Flow from operating activities | ||||
| Loss for the period | (2,788) | (1,716) | ||
| Depreciation and amortization | 1,050 | 841 | ||
| Foreign currency exchange differences on loans to subsidiaries | (769) | (61) | ||
| Share-based compensation expense | 165 | 129 | ||
| Change in impairment of trade receivables | (28) | 10 | ||
| Non-cash interest expense on long-term debt | 205 | 189 | ||
| Change in fair value of derivative equity forward | 602 | (941) | ||
| Change in inventory allowance | (9) | (226) | ||
| Other | — | 9 | ||
| Change in working capital | (265) | 1,578 | ||
| Trade and other receivables, inventories and current assets | 61 | (901) | ||
| Trade payables | (586) | (260) | ||
| Other liabilities, contract liabilities and provisions | 284 | 2,739 | ||
| Income tax payable/receivables | (24) | — | ||
| Net cash used in operating activities | (1,837) | (188) | ||
| Cash Flow from investing activities | ||||
|
Payments to acquire property, plant and equipment and intangible assets |
(173) | (234) | ||
| Proceeds from disposal of financial assets | 4,081 | 2,526 | ||
| Payments to acquire financial assets | (1,235) | (6,170) | ||
| Proceeds from disposal of property, plant and equipment | 22 | — | ||
| Net cash from (used in) investing activities | 2,695 | (3,878) | ||
| Cash Flow from financing activities | ||||
| Repayment of bank overdrafts and lines of credit | — | (58) | ||
| Repayment of sale and leaseback obligation | — | (118) | ||
|
Repayment of lease liabilities (2018: Repayment of finance lease obligations) |
(77) | (12) | ||
| Repayment of long-term debt | (250) | (197) | ||
| Proceeds from issuance of long-term debt | 500 | 40 | ||
| Net cash from (used in) financing activities | 173 | (345) | ||
| Net increase (decrease) in cash and cash equivalents | 1,031 | (4,411) | ||
| Cash and cash equivalents at beginning of period | 7,402 | 7,569 | ||
| Changes to cash and cash equivalents due to foreign exchanges rates | 49 | (18) | ||
| Cash and cash equivalents at end of period | 8,482 | 3,140 | ||
| Supplemental Cash Flow Information | ||||
| Interest paid | 66 | 47 | ||
| Interest received | 43 | 1 | ||
Contacts
Investors and Media
Johannes Pesch
Director Investor
Relations and Business Development
[email protected]
Office:
+49 821 7483172
Mobile: +49 176 45398316
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With the global market for pain therapeutics widely expected to exceed US$100 billion by 2032[1], LPT therapy which requires only one single monthly subcutaneous injection, is positioned as a highly attractive alternative to opioid-based approaches. Opioids have and continue to take a significant human toll in recent years, with more than three-quarters of drug overdose deaths in the United States involving opioids, according to the United States Center for Disease Control and Prevention[2].
Innocan’s therapy has shown consistent efficacy in multiple pre-clinical trials in recent years of it’s LPT-CBD injectable treatment through prolonged and controlled release of CBD in animals with chronic pain conditions. Innocan’s Pre-IND Meeting Request Letter to the FDA is a key milestone and important first step in seeking approval of its LPT-CBD therapy for use in humans. At the Pre-IND meeting, the objective will be to obtain guidance from the FDA on the preclinical and clinical development plan, enabling the initiation of an Investigational New Drug (IND) program in the United States.
Iris Bincovich, CEO of Innocan, commented: “We are extremely excited to embark on this next stage in the development of LPT-CBD injectables, this is a major Milestone for Innocan Pharma. We have invested significant effort and many thousands of person-hours in its research and development, accumulating a wealth of preclinical data that will serve as the foundation for our participation in the FDA process. This is a key milestone for Innocan and marks our first step towards the FDA’s recognition of our technology. We see significant potential for our therapy, with an addressable market for pain management therapeutics expected to exceed US $100 billion by 2032, and we look forward to tapping that.“
Dr. Joseph Pergolizzi, Innocan’s FDA Advisory Board Member, added:
“We have worked hard to catalogue the data collected as part of our animal LPT therapy testing program and prepare it for the FDA. We look forward to working under FDA guidance, with the goal of completing the review process as quickly and efficiently as possible. We believe that Innocan’s unique treatment method, if and when it should become FDA-approved has the potential of being a highly valuable non-opioid addition in the medical arsenal of the management of chronic pain.”
About Innocan
Innocan is a pharmaceutical tech company that operates under two main segments: Pharmaceuticals and Consumer Wellness. In the Pharmaceuticals segment, Innocan focuses on developing innovative drug delivery platform technologies based on advanced cannabinoids science, to treat various conditions to improve patients’ quality of life. This segment involves two drug delivery technologies: (i) LPT CBD- loaded liposome platform facilitating exact dosing and the prolonged and controlled release of CBD into the blood stream. The LPT delivery platform research is in the preclinical trial phase for: Pain Management. In the Consumer Wellness segment, Innocan develops and markets a wide portfolio of innovative and high-performance self-care products to promote a healthier lifestyle. Under this segment, Innocan has established a joint venture by the name of BI Sky Global Ltd. that focuses on advanced targeted online sales. https://innocanpharma.com/
For further information, please contact:
For Innocan Pharma Corporation:
Iris Bincovich, CEO
+1-516-210-4025
+972-54-3012842
+442037699377
[email protected]
NEITHER THE CANADIAN SECURITIES EXCHANGE NOR ITS REGULATION SERVICES PROVIDER HAVE REVIEWED OR ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
Cautionary note regarding forward-looking information
Certain information set forth in this news release, including, without limitation, information regarding research and development, collaborations, the filing of potential applications with the FDA and other regulatory authorities, the potential achievement of future regulatory milestones, the potential for treatment of conditions and other therapeutic effects resulting from research activities and/or the Company’s products, requisite regulatory approvals and the timing for market entry, is forward-looking information within the meaning of applicable securities laws. By its nature, forward-looking information is subject to numerous risks and uncertainties, some of which are beyond Innocan’s control. The forward-looking information contained in this news release is based on certain key expectations and assumptions made by Innocan, including expectations and assumptions concerning the anticipated benefits of the products, satisfaction of regulatory requirements in various jurisdictions and satisfactory completion of requisite production and distribution arrangements.
Forward-looking information is subject to various risks and uncertainties which could cause actual results and experience to differ materially from the anticipated results or expectations expressed in this news release. The key risks and uncertainties include but are not limited to: general global and local (national) economic, market and business conditions; governmental and regulatory requirements and actions by governmental authorities; and relationships with suppliers, manufacturers, customers, business partners and competitors. There are also risks that are inherent in the nature of product distribution, including import / export matters and the failure to obtain any required regulatory and other approvals (or to do so in a timely manner) and availability in each market of product inputs and finished products. The anticipated timeline for entry to markets may change for a number of reasons, including the inability to secure necessary regulatory requirements, or the need for additional time to conclude and/or satisfy the manufacturing and distribution arrangements. As a result of the foregoing, readers should not place undue reliance on the forward-looking information contained in this news release concerning the timing of launch of product distribution. A comprehensive discussion of other risks that impact Innocan can also be found in Innocan’s public reports and filings which are available under Innocan’s profile at www.sedar.com.
Readers are cautioned that undue reliance should not be placed on forward-looking information as actual results may vary materially from the forward-looking information. Innocan does not undertake to update, correct or revise any forward looking information as a result of any new information, future events or otherwise, except as may be required by applicable law.
[1] https://www.gminsights.com/industry-analysis/pain-management-drugs-market
[2] https://www.cdc.gov/opioids/data/index.html
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View original content:https://www.prnewswire.co.uk/news-releases/innocan-pharma-initiates-fda-approval-process-for-liposome-injection-therapy-for-chronic-pain-302122779.html
Bolsters Company’s Advantage in Several Key Emerging Markets, including Australia, New Zealand, Germany, Poland and the United Kingdom
NEW YORK, April 22, 2024 /PRNewswire/ — Curaleaf Holdings, Inc. (TSX: CURA) (OTCQX: CURLF) (“Curaleaf” or the “Company”), a leading international provider of consumer cannabis products, announced today the closing of its acquisition of Northern Green Canada (“NGC”), a vertically integrated Canadian licensed cannabis producer focused primarily on expanding in the international market through its EU-GMP certification. The accretive acquisition amplifies the Company’s strategic advantage in established European markets including Germany, Poland and the United Kingdom and provides a foothold in the emerging markets of Australia and New Zealand.
Integrating NGC’s international operation will equip Curaleaf with a secure and consistent high quality, non-irradiated, indoor EU-GMP flower supply, essential to maintaining its leading positions in Germany, the United Kingdom and Poland.
“We are thrilled to welcome NGC formally to the Curaleaf family of global brands,” said Boris Jordan, Founder and Executive Chairman of Curaleaf. “This is an incredibly important deal for our international expansion strategy, as we’ll be able to bolster our supply of high quality EU-GMP certified flower immediately to key European markets as well as enter the fast-growing markets of Australia and New Zealand.”
The global cannabis market is projected to generate $55 billion in sales by 2027. Emerging markets beyond the United States and Canada, including Germany, Australia and New Zealand are expected to contribute $6.3 billion of the $55 billion projection.
Terms of the acquisition of NGC include an initial payment at closing of the Company’s Subordinate Voting Shares valued at approximately US $16 million, subject to a typical post-closing adjustment. An earnout may also be paid in 2025 based upon 2024 performance of NGC’s operations, up to 50% of which will be cash and the rest paid in additional Subordinate Voting Shares. The issuance of Subordinate Voting Shares in connection with the acquisition of NGC has been conditionally approved by the Toronto Stock Exchange, subject to fulfilling customary listing conditions.
About Curaleaf Holdings
Curaleaf Holdings, Inc. (TSX: CURA) (OTCQX: CURLF) (“Curaleaf”) is a leading international provider of consumer products in cannabis with a mission to enhance lives by cultivating, sharing and celebrating the power of the plant. As a high-growth cannabis company known for quality, expertise and reliability, the Company and its brands, including Curaleaf, Select, Grassroots, JAMS, Find and Zero Proof provide industry-leading service, product selection and accessibility across the medical and adult use markets. Curaleaf International is the largest vertically integrated cannabis company in Europe with a unique supply and distribution network throughout the European market, bringing together pioneering science and research with cutting-edge cultivation, extraction and production. Curaleaf is listed on the Toronto Stock Exchange under the symbol CURA and trades on the OTCQX market under the symbol CURLF. For more information, please visit https://ir.curaleaf.com.
Forward Looking Statements
This media advisory contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. These statements relate to future events or future performance. All statements other than statements of historical fact may be forward–looking statements or information. Generally, forward-looking statements and information may be identified by the use of forward-looking terminology such as “plans”, “expects” or, “proposed”, “is expected”, “intends”, “anticipates”, or “believes”, or variations of such words and phrases, or by the use of words or phrases which state that certain actions, events or results may, could, would, or might occur or be achieved. More particularly and without limitation, this news release contains forward-looking statements and information concerning the expected benefits of the acquisition of NGC, and the Company’s planned expansion on internal markets, the Company’s anticipated strategic advantages in European markets and emerging markets, the integration of NGC’s internal operations, the anticipated global cannabis market, and the listing of shares issuable in connection with the acquisition on the Toronto Stock Exchange. Such forward-looking statements and information reflect management’s current beliefs and are based on assumptions made by and information currently available to the Company with respect to the matters described in this new release, including the Company’s ability to successfully realize the expected benefits of the acquisition, and the Company’s ability to fulfil the listing conditions imposed by the Toronto Stock Exchange. Forward-looking statements involve risks and uncertainties, which are based on current expectations as of the date of this release and subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements, including the failure to realize the expected benefits of the acquisition, or the Company’s failure to fulfil the listing conditions imposed by the Toronto Stock Exchange. Additional information about these assumptions and risks and uncertainties is contained under “Risk Factors and Uncertainties” in the Company’s latest annual information form filed on March 6, 2024, which is available under the Company’s SEDAR profile at http://www.sedar.com, and in other filings that the Company has made and may make with applicable securities authorities in the future. Forward-looking statements contained herein are made only as to the date of this press release and we undertake no obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law. We caution investors not to place considerable reliance on the forward-looking statements contained in this press release. The Toronto Stock Exchange has not reviewed, approved or disapproved the content of this news release.
INVESTOR CONTACT
Curaleaf Holdings, Inc.
Camilo Lyon, Chief Investment Officer
[email protected]
MEDIA CONTACT
Curaleaf Holdings, Inc.
Tracy Brady, SVP Corporate Communications
[email protected]
View original content:https://www.prnewswire.co.uk/news-releases/curaleaf-completes-acquisition-of-northern-green-canada-302123010.html
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