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Central European Media Enterprises Ltd. Reports Results for the Three Months Ended March 31, 2019

Published

5 years ago

April 30, 2019

Zoltan_Tundik

Reading Time: 11 minutes

– Net revenues decreased 7% at actual rates but increased 2% at
constant rates to US$ 146.6 million –

– Operating income increased 12% at actual rates and 23% at constant
rates to US$ 27.6 million –

– OIBDA increased 8% at actual rates and 18% at constant rates to US$
38.1 million –

HAMILTON, Bermuda–(BUSINESS WIRE)–Central European Media Enterprises Ltd. (“CME” or the “Company”)
(NASDAQ/Prague Stock Exchange – CETV) today announced financial results
for the three months ended March 31, 2019.

Operational and financial highlights:

TV advertising revenues decreased 10% at actual rates and 2% at
constant rates in the quarter. In the first four months of 2019, which
normalizes the phasing of spending around Easter, TV ad revenues are
estimated to have increased 3% at constant rates compared to the same
period in 2018.
Carriage fees and subscription revenues increased 4% at actual rates
and 12% at constant rates in the first quarter.
Costs charged in arriving at OIBDA decreased 11% at actual rates and
3% at constant rates.
OIBDA margin increased by 360 basis points to 26%.
Cash generated from continuing operating activities increased 34% at
actual rates to US$ 96.0 million.
Unlevered free cash flow increased 33% at actual rates to US$ 94.7
million.
CME repaid EUR 60 million of debt from cash generated by the business,
which together with the improvement in our operations reduced our net
leverage ratio to 3.0x at the end of March from 3.5x at the start of
the year.

Michael Del Nin, Co-Chief Executive Officer, commented: “The year has
gotten off to an outstanding start, exceeding our previous expectations
to such an extent that we are raising our guidance for 2019. With the
highest Q1 margin in more than a decade, an 18% improvement in
like-for-like OIBDA, and a more than 30% surge in unlevered free cash
flow, these are among the best Q1 results in the history of the company.
Furthermore, they are bolstered by around 20% growth in TV ad revenues
in our two largest markets in April, pushing year-to-date sales well
into positive territory after the first quarter was impacted by both
sector taxes in Romania and the phasing of spending related to the
timing of Easter this year.”

Christoph Mainusch, Co-Chief Executive Officer, added: “With the
successful launch of the spring season during the first quarter, our
main channel in four countries increased year-to-date audience share in
both prime time and all day. Carriage fees have transformed the
predictability and profitability of several of our businesses, with four
segments now seeing margins of more than 25% in Q1. Facing various
headwinds in the quarter, we grew our TV ad revenues in three segments,
and we increased market share in four of five countries.”

In this release we refer to several non-GAAP financial measures,
including OIBDA, OIBDA margin, free cash flow, unlevered free cash flow
and constant currency percentage movements. Please see “Non-GAAP
Financial Measures” below for additional information, including
definitions and reconciliations to US GAAP financial measures.

Consolidated results for the three months ended March 31, 2019 and 2018
were:

(US$ 000’s, except per share data)	For the Three Months Ended March 31,
(unaudited)		2019			2018		% Actual	% Lfl ⁽¹⁾
Net revenues	$	146,559		$	156,709		(6.5)%	1.6%
Operating income	27,637			24,581			12.4%	23.2%
Operating margin	18.9		%	15.7		%	3.2 p.p.	3.3 p.p.
OIBDA	38,057			35,324			7.7%	17.7%
OIBDA margin	26.0		%	22.5		%	3.5 p.p.	3.6 p.p.
Income from continuing operations	11,751			6,756			73.9%	96.6%
Income from continuing operations per share – basic	0.03			0.02			86.9%	127.0%
Income from continuing operations per share – diluted	$	0.03		$	0.01		144.8%	197.3%

⁽¹⁾ % Lfl (like-for-like) variance reflects the impact of
applying the current period average exchange rates to the prior
period revenues and costs.

Teleconference and Audio Webcast Details

CME will host a teleconference and audio webcast to discuss its first
quarter results on Tuesday, April 30, 2019 at 9 a.m. New York time (2
p.m. London and 3 p.m. Prague time). The audio webcast and
teleconference will refer to presentation slides which will be available
on CME’s website at www.cme.net
prior to the call.

To access the teleconference, U.S. and international callers may dial
+1-647-689-5402 ten minutes prior to the start time and reference
conference ID 2273725. The conference call will also be audio webcasted
via www.cme.net.
It can be heard on iPads, iPhones and a range of devices supporting
Android and Windows operating systems.

A digital audio replay of the webcast will be available for two weeks
following the call at www.cme.net.

Forward-Looking and Cautionary Statements

This press release contains forward-looking statements. For all
forward-looking statements, we claim the protection of the safe harbor
for forward-looking statements contained in the Private Securities
Litigation Reform Act of 1995. Forward-looking statements are inherently
subject to risks and uncertainties, many of which cannot be predicted
with accuracy or are otherwise beyond our control and some of which
might not even be anticipated. Forward-looking statements reflect
our current views with respect to future events and because our business
is subject to such risks and uncertainties, actual results, our
strategic plan, our financial position, results of operations and cash
flows could differ materially from those described in or contemplated by
the forward-looking statements.

Important factors that contribute to such risks include, but are not
limited to, those factors set forth under “Risk Factors” in our
Quarterly Report on Form 10-Q for the period ended March 31, 2019 as
well as the following: the effect of changes in global and regional
economic conditions; the impact of ending the quantitative easing
program implemented by the European Central Bank; the economic,
political and monetary impacts of Brexit in our markets; the outcome of
our strategic review and its impact on our business; the impact of
changes in local tax legislation and the timing of public holidays on
advertising spending; levels of television advertising spending and the
rate of development of the advertising markets in the countries in which
we operate; our ability to refinance our existing indebtedness; the
extent to which our debt service obligations and covenants may restrict
our business; our exposure to additional tax liabilities as well as
liabilities resulting from regulatory or legal proceedings initiated
against us; our success in continuing our initiatives to diversify and
enhance our revenue streams; our ability to make cost-effective
investments in our television businesses, including investments in
programming; our ability to develop and acquire necessary programming
and attract audiences; and changes in the political and regulatory
environments where we operate and in the application of relevant laws
and regulations.

The foregoing review of important factors should not be construed as
exhaustive. For a more detailed description of these uncertainties and
other factors, please see the “Risk Factors” and “Forward-looking
Statements” sections in CME’s Quarterly Report on Form 10-Q for the
period ended March 31, 2019. We undertake no obligation to publicly
update or review any forward-looking statements, whether as a result of
new information, future developments or otherwise.

This press release should be read in conjunction with our Quarterly
Report on Form 10-Q for the period ended March 31, 2019, which was filed
with the Securities and Exchange Commission on April 30, 2019.

We make available free of charge on our website at www.cme.net
our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current
Reports on Form 8-K and amendments to those reports as soon as
reasonably practicable after we electronically file such material with,
or furnish it to, the Securities and Exchange Commission. Please note
that we may announce material information using SEC filings, press
releases, public conference calls, webcasts and posts to the Investors
section of our website, www.cme.net.
In the future, we will continue to use these channels to communicate
important information about CME and our operations. Information that we
post on our website could be deemed material. Therefore, we encourage
investors, the media, our customers and others interested in CME to
review the information we post at www.cme.net.

CME is a media and entertainment company operating leading businesses in
five Central and Eastern European markets with an aggregate population
of approximately 45 million people. CME’s operations broadcast 30
television channels in Bulgaria (bTV, bTV Cinema, bTV Comedy, bTV
Action, bTV Lady and Ring), the Czech Republic (Nova, Nova 2, Nova
Cinema, Nova Sport 1, Nova Sport 2, Nova International, Nova Action and
Nova Gold), Romania (PRO TV, PRO 2, PRO X, PRO GOLD, PRO CINEMA, PRO TV
International and PRO TV Chisinau), the Slovak Republic (TV Markíza,
Markíza International, Doma and Dajto) and Slovenia (POP TV, Kanal A,
Brio, Oto and Kino). CME is traded on the NASDAQ Global Select Market
and the Prague Stock Exchange under the ticker symbol “CETV”.


CENTRAL EUROPEAN MEDIA ENTERPRISES LTD. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (US$ 000’s, except share and per share data) (unaudited)

	For the Three Months Ended March 31,
		2019			2018
Net revenues	$	146,559		$	156,709
Operating expenses:
Content costs	70,360			78,460
Other operating costs	13,248			14,467
Depreciation of property, plant and equipment	8,226			8,387
Amortization of broadcast licenses and other intangibles	2,194			2,356
Cost of revenues	94,028			103,670
Selling, general and administrative expenses	24,894			28,458
Operating income	27,637			24,581
Interest expense	(8,242		)	(17,818		)
Other non-operating (expense) / income, net	(3,097		)	4,208
Income before tax	16,298			10,971
Provision for income taxes	(4,547		)	(4,215		)
Income from continuing operations	11,751			6,756
Income from discontinued operations, net of tax	—			316
Net income	11,751			7,072
Net loss attributable to noncontrolling interests	7			178
Net income attributable to CME Ltd.	$	11,758		$	7,250

PER SHARE DATA:
Net income per share:
Continuing operations — basic	$	0.03		$	0.02
Continuing operations — diluted	0.03			0.01
Discontinued operations — basic	—			0.00
Discontinued operations — diluted	—			0.00
Attributable to CME Ltd. — basic	0.03			0.02
Attributable to CME Ltd. — diluted	$	0.03		$	0.01

Weighted average common shares used in computing per share amounts (000’s):
Basic	264,199			158,039
Diluted	265,211			241,905


CENTRAL EUROPEAN MEDIA ENTERPRISES LTD. CONDENSED CONSOLIDATED BALANCE SHEETS (US$ 000’s) (unaudited)

	March 31, 2019			December 31, 2018
ASSETS
Cash and cash equivalents	$	80,032		$	62,031
Other current assets	263,098			312,062
Total current assets	343,130			374,093
Property, plant and equipment, net	110,347			117,604
Goodwill and other intangible assets, net	968,225			984,256
Other non-current assets	23,967			12,408
Total assets	$	1,445,669		$	1,488,361

LIABILITIES AND EQUITY
Accounts payable and accrued liabilities	$	127,222		$	120,468
Current portion of long-term debt and other financing arrangements	5,802			5,545
Other current liabilities	38,453			13,679
Total current liabilities	171,477			139,692
Long-term debt and other financing arrangements	700,694			782,685
Other non-current liabilities	81,526			67,293
Total liabilities	$	953,697		$	989,670

Series B Convertible Redeemable Preferred Stock	$	269,370		$	269,370

EQUITY
Common Stock	$	20,262		$	20,228
Additional paid-in capital	2,004,188			2,003,518
Accumulated deficit	(1,566,318		)	(1,578,076		)
Accumulated other comprehensive loss	(235,961		)	(216,650		)
Total CME Ltd. shareholders’ equity	222,171			229,020
Noncontrolling interests	431			301
Total equity	222,602			229,321
Total liabilities and equity	$	1,445,669		$	1,488,361


CENTRAL EUROPEAN MEDIA ENTERPRISES LTD. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (US$ 000’s) (unaudited)

	For the Three Months Ended March 31,
		2019			2018
Net cash generated from continuing operating activities	$	96,009		$	71,495
Net cash used in continuing investing activities	(4,359		)	(5,353		)
Net cash used in continuing financing activities	(71,736		)	(60,526		)
Net cash provided by discontinued operations	—			9,554
Impact of exchange rate fluctuations on cash and cash equivalents	(1,913		)	2,515
Net increase in cash and cash equivalents	$	18,001		$	17,685

Supplemental disclosure of cash flow information:
Cash paid for interest (including guarantee fees)	$	3,093		$	4,883
Cash paid for income taxes, net of refunds	$	6,318		$	4,120

Supplemental disclosure of non-cash financing activities:
Accretion on Series B Convertible Redeemable Preferred Stock	$	—		$	2,447

Segment Data

We manage our business on a geographical basis, with five reporting
segments: Bulgaria, the Czech Republic, Romania, the Slovak Republic and
Slovenia. These segments reflect how CME Ltd.’s operating performance is
evaluated by our chief operating decision makers, who we have identified
as our co-Chief Executive Officers, how operations are managed by
segment managers, and the structure of our internal financial reporting.

We evaluate our consolidated results and the performance of our segments
based on net revenues and OIBDA. Intersegment revenues and profits have
been eliminated in consolidation.

Below are tables showing our net revenues and OIBDA by segment for the
three months ended March 31, 2019 and 2018:

(US$ 000’s)	For the Three Months Ended March 31,
(unaudited)		2019			2018		% Actual		% Lfl ⁽¹⁾
Net revenues
Bulgaria	$	19,293		$	19,433		(0.7	)%	6.9	%
Czech Republic	50,316			51,534			(2.4	)%	6.4	%
Romania	38,810			45,961			(15.6	)%	(7.5	)%
Slovak Republic	21,332			22,953			(7.1	)%	0.1	%
Slovenia	17,850			17,530			1.8	%	9.6	%
Intersegment revenues	(1,042		)	(702		)	NM ⁽²⁾		NM ⁽²⁾
Total net revenues	$	146,559		$	156,709		(6.5	)%	1.6	%

(US$ 000’s)	For the Three Months Ended March 31,
(unaudited)		2019			2018		% Act		% Lfl ⁽¹⁾
OIBDA
Bulgaria	$	6,121		$	2,981		105.3	%	121.2	%
Czech Republic	14,947			15,370			(2.8	)%	6.1	%
Romania	17,533			18,893			(7.2	)%	1.7	%
Slovak Republic	1,729			1,103			56.8	%	71.5	%
Slovenia	4,931			4,653			6.0	%	14.1	%
Elimination	48			16			NM ⁽²⁾		NM ⁽²⁾
Total Operating Segments	45,309			43,016			5.3	%	14.9	%
Corporate	(7,252		)	(7,692		)	5.7	%	(2.2	)%
Total OIBDA	$	38,057		$	35,324		7.7	%	17.7	%

⁽¹⁾ % Lfl (like-for-like) variance reflects the impact of
applying the current period average exchange rates to the prior
period revenues and costs.

⁽²⁾ Number is not meaningful.

Non-GAAP Financial Measures

In this release we refer to several non-GAAP financial measures,
including OIBDA, OIBDA margin, free cash flow and unlevered free cash
flow. We believe that each of these metrics is useful to investors for
the reasons outlined below. Non-GAAP financial measures may not be
comparable to similar measures reported by other companies. Non-GAAP
financial measures should be evaluated in conjunction with, and are not
a substitute for, US GAAP financial measures.

We evaluate our consolidated results and the performance of our segments
based on net revenues and OIBDA. We believe OIBDA is useful to investors
because it provides a meaningful representation of our performance, as
it excludes certain items that do not impact either our cash flows or
the operating results of our operations. OIBDA and unlevered free cash
flow are also used as components in determining management bonuses.

OIBDA includes amortization and impairment of program rights and is
calculated as operating income / loss before depreciation, amortization
of intangible assets and impairments of assets and certain unusual or
infrequent items that are not considered by our co-Chief Executive
Officers when evaluating our performance. Our key performance measure of
the efficiency of our consolidated operations and our segments is OIBDA
margin. We define OIBDA margin as the ratio of OIBDA to net revenues.

Following a repricing of our Guarantee Fees in March 2017 and April
2018, we pay interest and related Guarantee Fees on our outstanding
indebtedness in cash. In addition to this obligation to pay Guarantee
Fees in cash, we expect to use cash generated by the business to pay
certain Guarantee Fees that were previously paid in kind. These cash
payments are all reflected in free cash flow; accordingly we believe
unlevered free cash flow, defined as free cash flow before cash payments
for interest and Guarantee Fees, best illustrates the cash generated by
our operations when comparing periods. We define free cash flow as net
cash generated from continuing operating activities less purchases of
property, plant and equipment, net of disposals of property, plant and
equipment and excluding the cash impact of certain unusual or infrequent
items that are not included in costs charged in arriving at OIBDA
because they are not considered by our co-Chief Executive Officers when
evaluating performance. For additional information regarding our
business segments, see Item 1, Note 19, “Segment Data” in our Form 10-Q.

While our reporting currency is the dollar, our consolidated revenues
and costs are divided across a range of European currencies and CME
Ltd.’s function currency is the Euro. Given the significant movement of
the currencies in the markets in which we operate against the dollar, we
believe that it is useful to provide percentage movements based on
actual percentage movements (“% Act”), which includes the effect of
foreign exchange, as well as like-for-like percentage movements (“%
Lfl”). The like-for-like percentage movement references reflect the
impact of applying the current period average exchange rates to the
prior period revenues and costs. Since the difference between
like-for-like and actual percentage movements is solely the impact of
movements in foreign exchange rates, our discussion in this release
includes constant currency percentage movements in order to highlight
those factors influencing operational performance. The incremental
impact of foreign exchange rates is presented in the tables accompanying
such analysis.


(US$ 000’s)	For the Three Months Ended March 31,
(unaudited)	2019			2018
Operating income	$	27,637		$	24,581
Depreciation of property, plant and equipment	8,226			8,387
Amortization of intangible assets	2,194			2,356
Total OIBDA	$	38,057		$	35,324

(US$ 000’s)	For the Three Months Ended March 31,
(unaudited)	2019			2018
Net cash generated from continuing operating activities	$	96,009		$	71,495
Capital expenditures, net of proceeds from disposals	(4,359		)	(5,353		)
Free cash flow	91,650			66,142
Cash paid for interest (including mandatory cash-pay guarantee fees)	3,093			4,883
Unlevered free cash flow from continuing operating activities	$	94,743		$	71,025

Contacts

For additional information, please visit www.cme.net
or contact:
Mark Kobal
Head of Investor Relations
Central
European Media Enterprises
+420 242 465 576
[email protected]

Cannabis

Cannabis Capsule Global Analysis Report 2024: Market to Reach $79.2 Billion in 2028 – Forecast to 2033 Featuring GW Pharmaceuticals, Trulieve Cannabis, Green Thumb Industries, Tilray, Columbia Care

Published

12 hours ago

April 23, 2024

GlobeNewswire

Innocan

Innocan Pharma Initiates FDA Approval Process for Liposome Injection Therapy for Chronic Pain

Published

23 hours ago

April 22, 2024

CISION (PR Newswire)

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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Curaleaf

Curaleaf Completes Acquisition of Northern Green Canada

Published

1 day ago

April 22, 2024

CISION (PR Newswire)

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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