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Insperity Announces Record First Quarter Results
Reading Time: 12 minutes
HOUSTON–(BUSINESS WIRE)–Insperity,
Inc. (NYSE: NSP), a leading provider of human
resources and business performance solutions for America’s best
businesses, today reported results for the first quarter ended Mar. 31,
2019:
- Q1 WSEE growth of 15% on strong sales and client retention
-
Q1 net income and EPS up 53% and 57%, to $76 million and $1.85,
respectively - Q1 adjusted EPS up 40% to $1.98
- Q1 adjusted EBITDA up 21% to $101 million
First Quarter Results
First quarter 2019 net income and diluted earnings per share of $76.3
million and $1.85 represented increases of 53% and 57%, respectively,
compared to the first quarter of 2018. Adjusted EPS was $1.98, a 40%
increase over the first quarter of 2018. Adjusted EBITDA increased 21%
over the first quarter of 2018 to $101.4 million.
“Our record first quarter results reflect the strength of our business
model and continued excellent execution of our strategic plan,” said
Paul J. Sarvadi, Insperity chairman and chief executive officer. “These
results further demonstrate the sustainability of our rapid growth and
profitability experienced over the last several years into 2019.”
Revenues increased 14% over the first quarter of 2018 to $1,153.0
million on a 15% increase in the average number of worksite employees
(“WSEEs”) paid per month. The continued double-digit worksite employee
growth was the result of the enrollment of new clients coming off a
successful 2018 fall sales campaign and a high level of client retention
during our heavy first quarter client renewal period. Additionally, we
experienced net hiring in our client base during the first quarter of
2019, although at lower levels than experienced during the first quarter
of 2018.
Gross profit increased 14% over the first quarter of 2018 to $226.7
million, and included favorable workers’ compensation and benefit cost
trends and stronger pricing. Operating expenses increased 5% over the
first quarter of 2018, while adjusted operating expenses increased 12%
to $141.3 million, and included continued investments in our growth,
technology and product and service offerings.
“Worksite employee growth in the mid-teens, combined with effective
management of pricing, direct cost programs and operating costs,
produced adjusted EBITDA and cash flow at record levels,” said Douglas
S. Sharp, senior vice president of finance, chief financial officer and
treasurer. “We ended the first quarter with $141 million of adjusted
cash, up from $129 million at December 31, 2018, after the repurchase of
230,000 shares at a cost of $29 million and the payment of our regular
cash dividend totaling $12 million.”
2019 Guidance
The company also announced its updated guidance for 2019, including the
second quarter of 2019. Please refer to the accompanying financial
tables at the end of this press release for the reconciliation of
non-GAAP financial measures to the comparable GAAP financial measures.
| Q2 2019 | Full Year 2019 | ||||||||||||||
| Average WSEEs paid | 232,500 | — | 234,500 | 238,400 | — | 242,600 | |||||||||
| Year-over-year increase | 14.0% | — | 15.0% | 14.0% | — | 16.0% | |||||||||
| Adjusted EPS | $0.81 | — | $0.86 | $4.55 | — | $4.80 | |||||||||
| Year-over-year increase | 19% | — | 26% | 21% | — | 28% | |||||||||
| Adjusted EBITDA (in millions) | $55 | — | $58 | $276 | — | $289 | |||||||||
| Year-over-year increase | 18% | — | 24% | 15% | — | 21% | |||||||||
Definition of Key Metrics
Average WSEEs paid – Determined by calculating the company’s cumulative
worksite employees paid during the period divided by the number of
months in the period.
Adjusted EPS – Represents diluted net income per share computed in
accordance with GAAP, excluding the impact of non-cash stock-based
compensation and costs associated with a one-time tax reform bonus paid
to corporate employees.
Adjusted EBITDA – Represents net income computed in accordance with
GAAP, plus interest expense, income taxes, depreciation and amortization
expense, non-cash stock-based compensation and costs associated with a
one-time tax reform bonus paid to corporate employees.
Insperity will be hosting a conference call today at 10 a.m. ET to
discuss these results, provide guidance for the second quarter and an
update to the full year guidance, and answer questions from investment
analysts. To listen in, call 877-651-0053 and use conference i.d. number
2122429. The call will also be webcast at http://ir.insperity.com.
The conference call script will be available at the same website later
today. A replay of the conference call will be available at
855-859-2056, conference i.d. 2122429. The webcast will be archived for
one year.
About Insperity
Insperity, a trusted advisor to America’s best businesses for more than
33 years, provides an array of human resources and business solutions
designed to help improve business performance. Insperity® Business
Performance Advisors offer the most comprehensive suite of products and
services available in the marketplace. Insperity delivers administrative
relief, better benefits, reduced liabilities and a systematic way to
improve productivity through its premier Workforce Optimization®
solution. Additional company offerings include Traditional Payroll and
Human Capital Management, Time and Attendance, Performance Management,
Organizational Planning, Recruiting Services, Employment Screening,
Expense Management, Retirement Services and Insurance Services.
Insperity business performance solutions support more than 100,000
businesses with over 2 million employees. With 2018 revenues of $3.8
billion, Insperity operates in 74 offices throughout the United States.
For more information, visit http://www.insperity.com.
Forward-Looking Statements
The statements contained herein that are not historical facts are
forward-looking statements within the meaning of the federal securities
laws (Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934). You can identify such forward-looking
statements by the words “expects,” “intends,” “plans,” “projects,”
“believes,” “estimates,” “likely,” “possibly,” “probably,” “goal,”
“opportunity,” “objective,” “target,” “assume,” “outlook,” “guidance,”
“predicts,” “appears,” “indicator” and similar expressions.
Forward-looking statements involve a number of risks and uncertainties.
In the normal course of business, Insperity, Inc., in an effort to help
keep our stockholders and the public informed about our operations, may
from time to time issue such forward-looking statements, either orally
or in writing. Generally, these statements relate to business plans or
strategies, projected or anticipated benefits or other consequences of
such plans or strategies, or projections involving anticipated revenues,
earnings, unit growth, profit per worksite employee, pricing, operating
expenses or other aspects of operating results. We base the
forward-looking statements on our expectations, estimates and
projections at the time such statements are made. These statements are
not guarantees of future performance and involve risks and uncertainties
that we cannot predict. In addition, we have based many of these
forward-looking statements on assumptions about future events that may
prove to be inaccurate. Therefore, the actual results of the future
events described in such forward-looking statements could differ
materially from those stated in such forward-looking statements. Among
the factors that could cause actual results to differ materially are:
- adverse economic conditions;
-
regulatory and tax developments and possible adverse application of
various federal, state and local regulations; -
the ability to secure competitive replacement contracts for health
insurance and workers’ compensation insurance at expiration of current
contracts; -
cancellation of client contracts on short notice, or the inability to
renew client contracts or attract new clients; -
vulnerability to regional economic factors because of our geographic
market concentration; -
increases in health insurance costs and workers’ compensation rates
and underlying claims trends, health care reform, financial solvency
of workers’ compensation carriers, other insurers or financial
institutions, state unemployment tax rates, liabilities for employee
and client actions or payroll-related claims; -
failure to manage growth of our operations and the effectiveness of
our sales and marketing efforts; -
the impact of the competitive environment and other developments in
the human resources services industry, including the PEO industry, on
our growth and/or profitability; -
our liability for worksite employee payroll, payroll taxes and
benefits costs; - our liability for disclosure of sensitive or private information;
-
our ability to integrate or realize expected returns on our
acquisitions; - failure of our information technology systems;
-
an adverse final judgment or settlement of claims against Insperity;
and -
disruptions to our business resulting from the actions of certain
stockholders.
These factors are discussed in further detail in Insperity’s filings
with the U.S. Securities and Exchange Commission. Any of these factors,
or a combination of such factors, could materially affect the results of
our operations and whether forward-looking statements we make ultimately
prove to be accurate.
Except to the extent otherwise required by federal securities law, we do
not undertake any obligation to update our forward-looking statements to
reflect events or circumstances after the date they are made or to
reflect the occurrence of unanticipated events.
|
Insperity, Inc. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) |
||||||||||
| (in thousands) | March 31, 2019 | December 31, 2018 | ||||||||
| Assets | ||||||||||
| Cash and cash equivalents | $ | 398,936 | $ | 326,773 | ||||||
| Restricted cash | 44,705 | 42,227 | ||||||||
| Marketable securities | 53,599 | 60,781 | ||||||||
| Accounts receivable, net | 421,297 | 400,623 | ||||||||
| Prepaid insurance | 24,928 | 8,411 | ||||||||
| Other current assets | 36,616 | 27,721 | ||||||||
| Total current assets | 980,081 | 866,536 | ||||||||
| Property and equipment, net | 116,131 | 117,213 | ||||||||
| Right of use leased assets | 50,259 | — | ||||||||
| Prepaid health insurance | 9,000 | 9,000 | ||||||||
| Deposits | 177,105 | 172,674 | ||||||||
| Goodwill and other intangible assets, net | 12,723 | 12,726 | ||||||||
| Deferred income taxes, net | 145 | 8,816 | ||||||||
| Other assets | 5,534 | 4,851 | ||||||||
| Total assets | $ | 1,350,978 | $ | 1,191,816 | ||||||
| Liabilities and stockholders’ equity | ||||||||||
| Accounts payable | $ | 7,854 | $ | 10,622 | ||||||
| Payroll taxes and other payroll deductions payable | 308,062 | 261,166 | ||||||||
| Accrued worksite employee payroll cost | 363,862 | 329,979 | ||||||||
| Accrued health insurance costs | 45,832 | 35,153 | ||||||||
| Accrued workers’ compensation costs | 47,973 | 45,818 | ||||||||
| Accrued corporate payroll and commissions | 27,562 | 60,704 | ||||||||
| Other accrued liabilities | 49,244 | 28,890 | ||||||||
| Total current liabilities | 850,389 | 772,332 | ||||||||
| Accrued workers’ compensation cost, net of current | 186,624 | 187,412 | ||||||||
| Long-term debt | 144,400 | 144,400 | ||||||||
| Operating lease liabilities, net of current | 50,371 | — | ||||||||
| Other accrued liabilities, net of current | — | 9,996 | ||||||||
| Total noncurrent liabilities | 381,395 | 341,808 | ||||||||
| Stockholders’ equity: | ||||||||||
| Common stock | 555 | 555 | ||||||||
| Additional paid-in capital | 33,833 | 36,752 | ||||||||
| Treasury stock, at cost | (376,097 | ) | (357,569 | ) | ||||||
| Retained earnings | 460,903 | 397,938 | ||||||||
| Total stockholders’ equity | 119,194 | 77,676 | ||||||||
| Total liabilities and stockholders’ equity | $ | 1,350,978 | $ | 1,191,816 | ||||||
|
Insperity, Inc. CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) |
||||||||||||
|
Three Months Ended March 31, |
||||||||||||
| (in thousands, except per share amounts) | 2019 | 2018 | Change | |||||||||
| Operating results: | ||||||||||||
| Revenues(1) | $ | 1,153,010 | $ | 1,014,372 | 13.7 | % | ||||||
| Payroll taxes, benefits and workers’ compensation costs | 926,293 | 814,652 | 13.7 | % | ||||||||
| Gross profit | 226,717 | 199,720 | 13.5 | % | ||||||||
| Salaries, wages and payroll taxes | 83,380 | 87,186 | (4.4 | )% | ||||||||
| Stock-based compensation | 6,040 | 3,135 | 92.7 | % | ||||||||
| Commissions | 6,952 | 6,066 | 14.6 | % | ||||||||
| Advertising | 5,031 | 3,565 | 41.1 | % | ||||||||
| General and administrative expenses | 33,162 | 29,852 | 11.1 | % | ||||||||
| Depreciation and amortization | 6,691 | 5,213 | 28.4 | % | ||||||||
| Total operating expenses | 141,256 | 135,017 | 4.6 | % | ||||||||
| Operating income | 85,461 | 64,703 | 32.1 | % | ||||||||
| Other income (expense): | ||||||||||||
| Interest income | 3,245 | 1,456 | 122.9 | % | ||||||||
| Interest expense | (1,681 | ) | (1,070 | ) | 57.1 | % | ||||||
| Income before income tax expense | 87,025 | 65,089 | 33.7 | % | ||||||||
| Income tax expense | 10,736 | 15,098 | (28.9 | )% | ||||||||
| Net income | $ | 76,289 | $ | 49,991 | 52.6 | % | ||||||
|
Less distributed and undistributed earnings allocated to participating securities |
(1,031 | ) | (585 | ) | 76.2 | % | ||||||
| Net income allocated to common shares | $ | 75,258 | $ | 49,406 | 52.3 | % | ||||||
| Net income per share of common stock | ||||||||||||
| Basic | $ | 1.86 | $ | 1.20 | 55.0 | % | ||||||
| Diluted | $ | 1.85 | $ | 1.18 | 56.8 | % | ||||||
| ____________________________________ | ||
| (1) |
Revenues are comprised of gross billings less WSEE payroll costs as follows: |
|
| Three Months Ended March 31, | ||||||||||||
| (in thousands) | 2019 | 2018 | ||||||||||
| Gross billings | $ | 6,871,670 | $ | 5,923,356 | ||||||||
| Less: WSEE payroll cost | 5,718,660 | 4,908,984 | ||||||||||
| Revenues | $ | 1,153,010 | $ | 1,014,372 | ||||||||
|
Insperity, Inc. KEY FINANCIAL AND STATISTICAL DATA (Unaudited) |
||||||||||||||
| Three Months Ended March 31, | ||||||||||||||
| 2019 | 2018 | Change | ||||||||||||
| Average WSEEs paid | 225,525 | 195,683 | 15.3 | % | ||||||||||
| Statistical data (per WSEE per month): | ||||||||||||||
| Revenues(1) | $ | 1,704 | $ | 1,728 | (1.4 | )% | ||||||||
| Gross profit | 335 | 340 | (1.5 | )% | ||||||||||
| Operating expenses | 209 | 230 | (9.1 | )% | ||||||||||
| Operating income | 126 | 110 | 14.5 | % | ||||||||||
| Net income | 113 | 85 | 32.9 | % | ||||||||||
| ____________________________________ | ||
| (1) |
Revenues per WSEE per month are comprised of gross billings per WSEE per month less WSEE payroll costs per WSEE per month follows: |
|
| Three Months Ended March 31, | ||||||||||||
| (per WSEE per month) | 2019 | 2018 | ||||||||||
| Gross billings | $ | 10,157 | $ | 10,090 | ||||||||
| Less: WSEE payroll cost | 8,453 | 8,362 | ||||||||||
| Revenues | $ | 1,704 | $ | 1,728 | ||||||||
|
Insperity, Inc. Non-GAAP Financial Measures (Unaudited) |
|
Non-GAAP financial measures are not prepared in accordance with GAAP and may be different from non-GAAP financial measures used by other companies. Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of the non-GAAP financial measures used to their most directly comparable GAAP financial measures as provided in the tables below. |
| Non-GAAP Measure | Definition | Benefit of Non-GAAP Measure | ||||
| Non-bonus payroll cost |
Non-bonus payroll cost is a non-GAAP financial measure that excludes the impact of bonus payrolls paid to our WSEEs.
Bonus payroll cost varies from period to period, but has no direct |
Our management refers to non-bonus payroll cost in analyzing, reporting and forecasting our workers’ compensation costs.
We include these non-GAAP financial measures because we believe |
||||
| Adjusted cash, cash equivalents and marketable securities |
Excludes funds associated with:
• federal and state income tax withholdings, • employment taxes, • other payroll deductions, and • client prepayments. |
We believe that the exclusion of the identified items helps us reflect the fundamentals of our underlying business model and analyze results against our expectations, against prior period, and to plan for future periods by focusing on our underlying operations. We believe that the adjusted results provide relevant and useful information for investors because they allow investors to view performance in a manner similar to the method used by management and improves their ability to understand and assess our operating performance. |
||||
| Adjusted operating expense |
Represents operating expenses excluding the impact of the following:
• costs associated with a one-time tax reform bonus paid to |
|||||
| EBITDA |
Represents net income computed in accordance with GAAP, plus:
• interest expense, • income tax expense, and • depreciation and amortization expense. |
|||||
| Adjusted EBITDA |
Represents EBITDA plus:
• non-cash stock based compensation, and
• costs associated with a one-time tax reform bonus paid to |
|||||
| Adjusted Net Income |
Represents net income computed in accordance with GAAP, excluding:
• non-cash stock based compensation, and
• costs associated with a one-time tax reform bonus paid to |
|||||
| Adjusted EPS |
Represents diluted net income per share computed in accordance with GAAP, excluding: • non-cash stock based compensation, and
• costs associated with a one-time tax reform bonus paid to |
|||||
Following is a reconciliation of payroll cost (GAAP) to non-bonus
payroll costs (non-GAAP):
| Three Months Ended March 31, | ||||||||||||||||||
| (in thousands, except per WSEE per month) | 2019 | 2018 | ||||||||||||||||
| $ | WSEE | $ | WSEE | |||||||||||||||
| Payroll cost | $ | 5,718,660 | $ | 8,453 | $ | 4,908,984 | $ | 8,362 | ||||||||||
| Less: Bonus payroll cost | 990,578 | 1,465 | 830,861 | 1,415 | ||||||||||||||
| Non-bonus payroll cost | $ | 4,728,082 | $ | 6,988 | $ | 4,078,123 | $ | 6,947 | ||||||||||
| % Change period over period | 15.9 | % | 0.6 | % | 15.9 | % | 3.3 | % | ||||||||||
Following is a reconciliation of cash, cash equivalents and marketable
securities (GAAP) to adjusted cash, cash equivalents and marketable
securities (non-GAAP):
| (in thousands) | March 31, 2019 | December 31, 2018 | |||||||
| Cash, cash equivalents and marketable securities | $ | 452,535 | $ | 387,554 | |||||
| Less: | |||||||||
| Amounts payable for withheld federal and state income taxes, | |||||||||
| employment taxes and other payroll deductions | 279,641 | 224,487 | |||||||
| Client prepayments | 32,388 | 34,177 | |||||||
| Adjusted cash, cash equivalents and marketable securities | $ | 140,506 | $ | 128,890 | |||||
Following is a reconciliation of operating expenses (GAAP) to adjusted
operating expenses (non-GAAP):
| Three Months Ended March 31, | ||||||||||||||||||
| (in thousands, except per WSEE per month) | 2019 | 2018 | ||||||||||||||||
| $ | WSEE | $ | WSEE | |||||||||||||||
| Operating expenses | $ | 141,256 | $ | 209 | $ | 135,017 | $ | 230 | ||||||||||
| Less: | ||||||||||||||||||
| One-time tax reform bonus | — | — | 9,306 | 16 | ||||||||||||||
| Adjusted operating expenses | $ | 141,256 | $ | 209 | $ | 125,711 | $ | 214 | ||||||||||
| % Change period over period | 12.4 | % | (2.3 | )% | 18.8 | % | 5.9 | % | ||||||||||
Following is a reconciliation of net income (GAAP) to EBITDA (non-GAAP)
and adjusted EBITDA (non-GAAP):
| Three Months Ended March 31, | ||||||||||||||||||
| (in thousands, except per WSEE per month) | 2019 | 2018 | ||||||||||||||||
| $ | WSEE | $ | WSEE | |||||||||||||||
| Net income | $ | 76,289 | $ | 113 | $ | 49,991 | $ | 85 | ||||||||||
| Income tax expense | 10,736 | 16 | 15,098 | 26 | ||||||||||||||
| Interest expense | 1,681 | 2 | 1,070 | 2 | ||||||||||||||
| Depreciation and amortization | 6,691 | 10 | 5,213 | 9 | ||||||||||||||
| EBITDA | 95,397 | 141 | 71,372 | 122 | ||||||||||||||
| Stock-based compensation | 6,040 | 9 | 3,135 | 5 | ||||||||||||||
| One-time tax reform bonus | — | — | 9,306 | 16 | ||||||||||||||
| Adjusted EBITDA | $ | 101,437 | $ | 150 | $ | 83,813 | $ | 143 | ||||||||||
| % Change period over period | 21.0 | % | 4.9 | % | 33.6 | % | 19.2 | % | ||||||||||
Following reconciliation of net income (GAAP) to adjusted net income
(non-GAAP):
| Three Months Ended March 31, | ||||||||||
| (in thousands) | 2019 | 2018 | ||||||||
| Net income | $ | 76,289 | $ | 49,991 | ||||||
| Non-GAAP adjustments: | ||||||||||
| Stock-based compensation | 6,040 | 3,135 | ||||||||
| One-time tax reform bonus | — | 9,306 | ||||||||
| Total non-GAAP adjustments | 6,040 | 12,441 | ||||||||
| Tax effect | (745 | ) | (2,886 | ) | ||||||
| Adjusted net income | $ | 81,584 | $ | 59,546 | ||||||
| % Change period over period | 37.0 | % | 54.1 | % | ||||||
Following is a reconciliation of diluted EPS (GAAP) to adjusted EPS (non-GAAP):
| Three Months Ended March 31, | ||||||||||
| 2019 | 2018 | |||||||||
| Diluted EPS | $ | 1.85 | $ | 1.18 | ||||||
| Non-GAAP adjustments: | ||||||||||
| Stock-based compensation | 0.15 | 0.07 | ||||||||
| One-time tax reform bonus | — | 0.22 | ||||||||
| Total non-GAAP adjustments | 0.15 | 0.29 | ||||||||
| Tax effect | (0.02 | ) | (0.06 | ) | ||||||
| Adjusted EPS | $ | 1.98 | $ | 1.41 | ||||||
| % Change period over period | 40.4 | % | 53.3 | % | ||||||
The following is a reconciliation of GAAP to non-GAAP financial measures
for second quarter and full year 2019 guidance:
| (in millions, except per share amounts) |
Q2 2019 Guidance |
Full Year 2019 Guidance |
|||||||
| Net income | $28 – $30 | $167 – $178 | |||||||
| Income tax expense | 11 – 12 | 48 – 50 | |||||||
| Interest expense | 2 | 7 | |||||||
| Depreciation and amortization | 7 | 28 | |||||||
| EBITDA | 48 – 51 | 250 – 263 | |||||||
| Stock-based compensation | 7 | 26 | |||||||
| Adjusted EBITDA | $55 – $58 | $276 – $289 | |||||||
| Diluted net income per share of common stock | $0.68 – $0.73 | $4.06 – $4.31 | |||||||
| Non-GAAP adjustments: | |||||||||
| Stock-based compensation | 0.18 | 0.63 | |||||||
| Total non-GAAP adjustments | 0.18 | 0.63 | |||||||
| Tax effect | (0.05 | ) | (0.14 | ) | |||||
| Adjusted EPS | $0.81 – $0.86 | $4.55 – $4.80 | |||||||
Contacts
Investor Relations Contact:
Douglas S. Sharp
Senior
Vice President of Finance,
Chief Financial Officer and Treasurer
(281)
348-3232
[email protected]
News Media Contact:
Suzanne Haugen
Public
Relations Manager
(281) 312-3543
[email protected]
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Cannabis
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Innocan
Innocan Pharma Initiates FDA Approval Process for Liposome Injection Therapy for Chronic Pain
With its submission of a Pre-IND Meeting Request Letter, Innocan initiates the regulatory process with the U.S. Food and Drug Administration (FDA) for the approval of its prolonged CBD release technology for human use
HERZLIYA, Israel and CALGARY, AB, April 22, 2024 /PRNewswire/ — Innocan Pharma Corporation (CSE: INNO) (FSE: IP4) (OTCQB: INNPF) (“Innocan” or the “Company”), is pleased to announce that is has reached a key milestone: the Company submitted its letter of application for a Pre-IND meeting, the first phase in the FDA approval process in the United States for Innocan’s Liposome-Cannabidiol (LPT-CBD) injectable treatment of chronic pain.
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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