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MicroStrategy Announces First Quarter 2019 Financial Results
Reading Time: 10 minutes
TYSONS CORNER, Va.–(BUSINESS WIRE)–lt;a href=”https://twitter.com/search?q=%24MSTR&src=ctag” target=”_blank”gt;$MSTRlt;/agt; lt;a href=”https://twitter.com/hashtag/MSTR?src=hash” target=”_blank”gt;#MSTRlt;/agt;–MicroStrategy®
Incorporated (Nasdaq: MSTR), a leading worldwide provider of enterprise
analytics and mobility software, today announced financial results for
the three-month period ended March 31, 2019 (the first quarter of its
2019 fiscal year).
MicroStrategy adopted Accounting Standards Update No. 2016-02, Leases
(Topic 842), and its subsequent amendments (“ASU 2016-02”),
effective January 1, 2019. Comparative prior period consolidated
financial statements have not been restated and are not directly
comparable to the current period consolidated financial statements.
First quarter 2019 revenues were $115.4 million versus $123.0 million
for the first quarter of 2018, a 6.2% decrease. Product licenses and
subscription services revenues for the first quarter of 2019 were $25.4
million versus $25.0 million for the first quarter of 2018, a 1.9%
increase. Product support revenues for the first quarter of 2019 were
$71.5 million versus $74.4 million for the first quarter of 2018, a 4.0%
decrease. Other services revenues for the first quarter of 2019 were
$18.5 million versus $23.6 million for the first quarter of 2018, a
21.7% decrease. Foreign currency effects had an unfavorable impact on
revenues for the first quarter of 2019.
Operating expenses for the first quarter of 2019 were $99.6 million
versus $97.1 million for the first quarter of 2018, a 2.6% increase.
Loss from operations for the first quarter of 2019 was $10.4 million
versus income from operations of $0.7 million for the first quarter of
2018. Net loss for the first quarter of 2019 was $7.9 million, or $0.77
per share on a diluted basis, as compared to net income of $1.7 million,
or $0.15 per share on a diluted basis, for the first quarter of 2018.
Non-GAAP loss from operations, which excludes share-based compensation
expense, was $7.4 million for the first quarter of 2019 versus non-GAAP
income from operations of $5.5 million for the first quarter of 2018.
The tables at the end of this press release include a reconciliation of
(loss) income from operations to non-GAAP (loss) income from operations
for the three months ended March 31, 2019 and 2018. An explanation of
this non-GAAP financial measure is also included under the heading
“Non-GAAP Financial Measure” below.
As of March 31, 2019, MicroStrategy had cash and cash equivalents and
short-term investments of $551.1 million, as compared to $576.1 million
as of December 31, 2018, a decrease of $25.1 million. During the first
quarter of 2019, MicroStrategy repurchased 362,148 shares of its class A
common stock for an aggregate purchase price of approximately $48.2
million. As of March 31, 2019, MicroStrategy had 8.2 million shares of
class A common stock and 2.0 million shares of class B common stock
outstanding.
MicroStrategy uses its Intelligent Enterprise
platform across the
enterprise and has created an interactive dossier with quarterly
financial performance data. Anyone can access the
MSTR Financials dossier via a web browser, or by downloading the
MicroStrategy Library app on an iOS or Android device. To download the
native apps, visit MicroStrategy
Library for iPad, MicroStrategy
Library for iPhone, or MicroStrategy
Library for Android tablet and smartphone.
Conference Call
MicroStrategy will be discussing its first quarter 2019 financial
results on a conference call today beginning at approximately 5:00 p.m.
EDT. To access the conference call, dial (844) 824-7425 (domestically)
or (716) 220-9429 (internationally) and use conference ID 7634017. A
live and archived webcast will be available under the “Events” section
on MicroStrategy’s investor relations website at http://ir.microstrategy.com/events.cfm.
A replay of the conference call will be available beginning
approximately two hours after the call concludes until May 7, 2019 at
(855) 859-2056 (domestically) or (404) 537-3406 (internationally) using
the passcode 7634017.
Recent Business Highlights
-
MicroStrategy announced the general availability
of MicroStrategy 2019
, the industry’s first and only enterprise
platform for Federated Analytics, Transformational Mobility, and
HyperIntelligence. MicroStrategy 2019 delivers modern analytics on an
enterprise platform that can be deployed on-premises or on multiple
private and public cloud platforms. MicroStrategy customers on
MicroStrategy 2019 platform can get started on HyperIntelligence by
downloading the MicroStrategy HyperIntelligence extension at the Chrome
Web Store. Customers can provision MicroStrategy 2019 in the cloud
with the MicroStrategy for AWS and MicroStrategy for Azure
provisioning consoles. A 30-day free trial is available for MicroStrategy
2019 on AWS and Microsoft Azure. -
MicroStrategy was recognized by industry analysts in the following
published research:-
Recognized by Gartner, Inc. as the sole Challenger in the “2019
Magic Quadrant for Analytics and Business Intelligence Platforms”
(1) -
Named a Technology Innovation Leader by Dresner Advisory Services
for the second consecutive year -
Ranked the #1 Overall Value Index Leader in Embedded Analytics and
Business Intelligence by Ventana Research -
Ranked the #1 Overall Value Index Leader in Mobile Analytics and
Business Intelligence by Ventana Research
-
Recognized by Gartner, Inc. as the sole Challenger in the “2019
-
MicroStrategy held its 22nd annual user conference,
MicroStrategy World 2019, which brought together thousands of product
experts, thought leaders and MicroStrategy users for three days of
inspirational keynotes, educational workshops, and customer
presentations on how analytics can transform the way people use
information to make each organization a more Intelligent Enterprise.
Attendees also learned about MicroStrategy’s new platform, robust
partner network, and services offerings as well as how they can employ
new digital strategies to increase the adoption of analytics across
the enterprise.-
MicroStrategy announced the ability of customers to leverage
MicroStrategy 2019 on Microsoft Azure and Amazon Web Services,
which allows customers to launch fully-configured analytics,
mobility, and HyperIntelligence projects on Azure and AWS. -
MicroStrategy presented Customer Awards to American Express Global
Business Travel, The Coca-Cola Company, Hilton, Ola, and TAP Air
Portugal for their outstanding enterprise analytics and mobility
applications. -
MicroStrategy hosted its second annual Datathon at MicroStrategy
World 2019, challenging participants to create innovative
analytics, AI, big data, or mobile applications using
MicroStrategy 2019 with aggregated data from CharityBase, a free,
open source charity data portal with public information on the
activities, locations, and finances of thousands of charities
registered in England and Wales.
-
MicroStrategy announced the ability of customers to leverage
Non-GAAP Financial Measure
MicroStrategy is providing a supplemental financial measure for (loss)
income from operations that excludes the impact of share-based
compensation arrangements. This supplemental financial measure is not a
measurement of financial performance under generally accepted accounting
principles in the United States (“GAAP”) and, as a result, this
supplemental financial measure may not be comparable to similarly titled
measures of other companies. Management uses this non-GAAP financial
measure internally to help understand, manage, and evaluate business
performance and to help make operating decisions. MicroStrategy believes
that this non-GAAP financial measure is also useful to investors and
analysts in comparing its performance across reporting periods on a
consistent basis because it excludes a significant non-cash expense that
MicroStrategy believes is not reflective of its general business
performance. In addition, accounting for share-based compensation
arrangements requires significant management judgment and the resulting
expense could vary significantly in comparison to other companies.
Therefore, MicroStrategy believes the use of this non-GAAP financial
measure can also facilitate comparison of MicroStrategy’s operating
results to those of its competitors.
About MicroStrategy Incorporated
MicroStrategy (Nasdaq: MSTR) is a leading worldwide provider of
enterprise analytics and mobility software and services. Our mission is
to make every enterprise a more Intelligent Enterprise. MicroStrategy
2019 delivers modern analytics on an open, comprehensive enterprise
platform designed to drive business results with Federated Analytics,
Transformational Mobility, and HyperIntelligence. To learn more, visit MicroStrategy
online, and follow us on LinkedIn,
Twitter
and Facebook.
MicroStrategy, Intelligent Enterprise, MicroStrategy Library,
MicroStrategy 2019, HyperIntelligence, and MicroStrategy World are
either trademarks or registered trademarks of MicroStrategy Incorporated
in the United States and certain other countries. Other product and
company names mentioned herein may be the trademarks of their respective
owners.
This press release may include statements that may constitute
“forward-looking statements,” including estimates of future business
prospects or financial results and statements containing the words
“believe,” “estimate,” “project,” “expect” or similar expressions.
Forward-looking statements inherently involve risks and uncertainties
that could cause actual results of MicroStrategy Incorporated and its
subsidiaries (collectively, the “Company”) to differ materially from the
forward-looking statements. Factors that could contribute to such
differences include: the extent and timing of market acceptance of
MicroStrategy’s new offerings, including MicroStrategy 2019; the
Company’s ability to recognize revenue or deferred revenue through
delivery of products or satisfactory performance of services; continued
acceptance of the Company’s other products in the marketplace;
fluctuations in tax benefits or provisions, including as a result of
changes to U.S. federal tax laws; the timing of significant orders;
delays in or the inability of the Company to develop or ship new
products; competitive factors; general economic conditions; currency
fluctuations; and other risks detailed in the Company’s registration
statements and periodic reports filed with the Securities and Exchange
Commission. The Company undertakes no obligation to update these
forward-looking statements for revisions or changes after the date of
this release.
MSTR-F
(1) Gartner, Magic Quadrant for Analytics and Business
Intelligence Platforms, Cindi Howson, James Richardson, Rita Sallam,
Austin Kronz, 11 February 2019. Gartner does not endorse any vendor,
product or service depicted in its research publications, and does not
advise technology users to select only those vendors with the highest
ratings or other designation. Gartner research publications consist of
the opinions of Gartner’s research organization and should not be
construed as statements of fact. Gartner disclaims all warranties,
express or implied, with respect to this research, including any
warranties of merchantability or fitness for a particular purpose.
| MICROSTRATEGY INCORPORATED | ||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||
| (in thousands, except per share data) | ||||||||||
| Three Months Ended | ||||||||||
| March 31, | ||||||||||
| 2019 | 2018 | |||||||||
| (unaudited) | (unaudited) | |||||||||
| Revenues | ||||||||||
| Product licenses | $ | 18,291 | $ | 17,301 | ||||||
| Subscription services | 7,144 | 7,662 | ||||||||
| Total product licenses and subscription services | 25,435 | 24,963 | ||||||||
| Product support | 71,450 | 74,415 | ||||||||
| Other services | 18,481 | 23,589 | ||||||||
| Total revenues | 115,366 | 122,967 | ||||||||
| Cost of revenues | ||||||||||
| Product licenses | 519 | 2,211 | ||||||||
| Subscription services | 3,598 | 3,249 | ||||||||
| Total product licenses and subscription services | 4,117 | 5,460 | ||||||||
| Product support | 7,067 | 4,796 | ||||||||
| Other services | 14,989 | 14,929 | ||||||||
| Total cost of revenues | 26,173 | 25,185 | ||||||||
| Gross profit | 89,193 | 97,782 | ||||||||
| Operating expenses | ||||||||||
| Sales and marketing | 48,760 | 51,335 | ||||||||
| Research and development | 28,215 | 23,560 | ||||||||
| General and administrative | 22,604 | 22,172 | ||||||||
| Total operating expenses | 99,579 | 97,067 | ||||||||
| (Loss) income from operations | (10,386 | ) | 715 | |||||||
| Interest income, net | 2,566 | 2,034 | ||||||||
| Other expense, net | (596 | ) | (1,594 | ) | ||||||
| (Loss) income before income taxes | (8,416 | ) | 1,155 | |||||||
| Benefit from income taxes | (510 | ) | (518 | ) | ||||||
| Net (loss) income | $ | (7,906 | ) | $ | 1,673 | |||||
| Basic (loss) earnings per share (1): | $ | (0.77 | ) | $ | 0.15 | |||||
|
Weighted average shares outstanding used in computing basic (loss) earnings per share |
10,328 | 11,447 | ||||||||
| Diluted (loss) earnings per share (1): | $ | (0.77 | ) | $ | 0.15 | |||||
|
Weighted average shares outstanding used in computing diluted (loss) earnings per share |
10,328 | 11,488 | ||||||||
| (1) |
Basic and fully diluted (loss) earnings per share for class A and class B common stock are the same. |
|
| MICROSTRATEGY INCORPORATED | ||||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||||
| (in thousands, except per share data) | ||||||||||
| March 31, | December 31, | |||||||||
| 2019 | 2018* | |||||||||
| (unaudited) | ||||||||||
| Assets | ||||||||||
| Current assets | ||||||||||
| Cash and cash equivalents | $ | 258,743 | $ | 109,924 | ||||||
| Restricted cash | 922 | 862 | ||||||||
| Short-term investments | 292,314 | 466,186 | ||||||||
| Accounts receivable, net | 133,922 | 171,359 | ||||||||
| Prepaid expenses and other current assets | 32,511 | 30,068 | ||||||||
| Total current assets | 718,412 | 778,399 | ||||||||
| Property and equipment, net | 54,832 | 51,919 | ||||||||
| Right-of-use assets | 87,743 |
0 |
||||||||
| Deposits and other assets | 8,374 | 8,134 | ||||||||
| Deferred tax assets, net | 18,983 | 17,316 | ||||||||
| Total Assets | $ | 888,344 | $ | 855,768 | ||||||
| Liabilities and Stockholders’ Equity | ||||||||||
| Current liabilities | ||||||||||
| Accounts payable, accrued expenses, and operating lease liabilities | $ | 37,227 | $ | 33,684 | ||||||
| Accrued compensation and employee benefits | 36,713 | 48,045 | ||||||||
| Deferred revenue and advance payments | 190,070 | 176,540 | ||||||||
| Total current liabilities | 264,010 | 258,269 | ||||||||
| Deferred revenue and advance payments | 4,539 | 6,469 | ||||||||
| Operating lease liabilities | 106,661 | 0 | ||||||||
| Other long-term liabilities | 34,793 | 61,262 | ||||||||
| Deferred tax liabilities | 35 | 37 | ||||||||
| Total Liabilities | 410,038 | 326,037 | ||||||||
| Stockholders’ Equity | ||||||||||
|
Preferred stock undesignated, $0.001 par value; 5,000 shares authorized; no shares issued or outstanding |
0 | 0 | ||||||||
|
Class A common stock, $0.001 par value; 330,000 shares authorized; 15,850 shares issued and 8,202 shares outstanding, and 15,837 shares issued and 8,552 shares outstanding, respectively |
16 | 16 | ||||||||
|
Class B convertible common stock, $0.001 par value; 165,000 shares authorized; 2,035 shares issued and outstanding, and 2,035 shares issued and outstanding, respectively |
2 | 2 | ||||||||
| Additional paid-in capital | 581,429 | 576,957 | ||||||||
| Treasury stock, at cost; 7,648 shares and 7,285 shares, respectively | (634,405 | ) | (586,161 | ) | ||||||
| Accumulated other comprehensive loss | (9,964 | ) | (10,217 | ) | ||||||
| Retained earnings | 541,228 | 549,134 | ||||||||
| Total Stockholders’ Equity | 478,306 | 529,731 | ||||||||
| Total Liabilities and Stockholders’ Equity | $ | 888,344 | $ | 855,768 | ||||||
| * | Derived from audited financial statements. | |
| MICROSTRATEGY INCORPORATED | ||||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||
| (in thousands) | ||||||||||
| Three Months Ended | ||||||||||
| March 31, | ||||||||||
| 2019 | 2018 | |||||||||
| (unaudited) | (unaudited) | |||||||||
| Operating activities: | ||||||||||
| Net (loss) income | $ | (7,906 | ) | $ | 1,673 | |||||
|
Adjustments to reconcile net (loss) income to net cash provided by operating activities: |
||||||||||
| Depreciation and amortization | 3,664 | 3,298 | ||||||||
| Bad debt expense | 827 | 165 | ||||||||
| Net realized loss on short-term investments | 41 |
0 |
||||||||
| Deferred taxes | (1,694 | ) | (2,662 | ) | ||||||
| Share-based compensation expense | 3,017 | 4,743 | ||||||||
| Changes in operating assets and liabilities: | ||||||||||
| Accounts receivable | 10,266 | 422 | ||||||||
| Prepaid expenses and other current assets | (3,070 | ) | (3,783 | ) | ||||||
| Deposits and other assets | (134 | ) | 228 | |||||||
| Accounts payable and accrued expenses | (3,108 | ) | (6,016 | ) | ||||||
| Accrued compensation and employee benefits | (12,195 | ) | (8,085 | ) | ||||||
| Deferred revenue and advance payments | 38,502 | 19,570 | ||||||||
| Operating lease liabilities | (2,074 | ) |
0 |
|||||||
| Other long-term liabilities | 320 | 9,164 | ||||||||
| Net cash provided by operating activities | 26,456 | 18,717 | ||||||||
| Investing activities: | ||||||||||
| Proceeds from redemption of short-term investments | 314,403 | 195,820 | ||||||||
| Purchases of property and equipment | (6,011 | ) | (1,294 | ) | ||||||
| Purchases of short-term investments | (138,099 | ) | (483,440 | ) | ||||||
| Net cash provided by (used in) investing activities | 170,293 | (288,914 | ) | |||||||
| Financing activities: | ||||||||||
|
Proceeds from sale of class A common stock under exercise of employee stock options |
1,507 |
0 |
||||||||
| Purchases of treasury stock | (48,244 | ) |
0 |
|||||||
|
Payments on capital lease obligations and other financing arrangements prior to the adoption of ASU 2016-02 |
0 |
(7 | ) | |||||||
| Net cash used in financing activities | (46,737 | ) | (7 | ) | ||||||
|
Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash |
(1,133 | ) | 2,202 | |||||||
|
Net increase (decrease) in cash, cash equivalents, and restricted cash |
148,879 | (268,002 | ) | |||||||
| Cash, cash equivalents, and restricted cash, beginning of period | 110,786 | 421,182 | ||||||||
| Cash, cash equivalents, and restricted cash, end of period | $ | 259,665 | $ | 153,180 | ||||||
| MICROSTRATEGY INCORPORATED | |||||||||
| REVENUE AND COST OF REVENUE DETAIL | |||||||||
| (in thousands) | |||||||||
| Three Months Ended | |||||||||
| March 31, | |||||||||
| 2019 | 2018 | ||||||||
| (unaudited) | (unaudited) | ||||||||
| Revenues | |||||||||
| Product licenses and subscription services: | |||||||||
| Product licenses | $ | 18,291 | $ | 17,301 | |||||
| Subscription services | 7,144 | 7,662 | |||||||
| Total product licenses and subscription services | 25,435 | 24,963 | |||||||
| Product support | 71,450 | 74,415 | |||||||
| Other services: | |||||||||
| Consulting | 16,603 | 21,287 | |||||||
| Education | 1,878 | 2,302 | |||||||
| Total other services | 18,481 | 23,589 | |||||||
| Total revenues | 115,366 | 122,967 | |||||||
| Cost of revenues | |||||||||
| Product licenses and subscription services: | |||||||||
| Product licenses | 519 | 2,211 | |||||||
| Subscription services | 3,598 | 3,249 | |||||||
| Total product licenses and subscription services | 4,117 | 5,460 | |||||||
| Product support | 7,067 | 4,796 | |||||||
| Other services: | |||||||||
| Consulting | 12,985 | 13,321 | |||||||
| Education | 2,004 | 1,608 | |||||||
| Total other services | 14,989 | 14,929 | |||||||
| Total cost of revenues | 26,173 | 25,185 | |||||||
| Gross profit | $ | 89,193 | $ | 97,782 | |||||
| MICROSTRATEGY INCORPORATED | ||||||||||||
| DEFERRED REVENUE DETAIL | ||||||||||||
| (in thousands) | ||||||||||||
| March 31, | December 31, | March 31, | ||||||||||
| 2019 | 2018* | 2018 | ||||||||||
| (unaudited) | (unaudited) | |||||||||||
| Current: | ||||||||||||
| Deferred product licenses revenue | $ | 555 | $ | 1,768 | $ | 3,064 | ||||||
| Deferred subscription services revenue | 15,641 | 13,508 | 16,742 | |||||||||
| Deferred product support revenue | 166,306 | 152,501 | 173,156 | |||||||||
| Deferred other services revenue | 7,568 | 8,763 | 8,756 | |||||||||
| Total current deferred revenue and advance payments | $ | 190,070 | $ | 176,540 | $ | 201,718 | ||||||
| Non-current: | ||||||||||||
| Deferred product licenses revenue | $ | 479 | $ | 542 | $ | 843 | ||||||
| Deferred subscription services revenue | 247 | 2,384 | 385 | |||||||||
| Deferred product support revenue | 3,231 | 3,091 | 3,854 | |||||||||
| Deferred other services revenue | 582 | 452 | 586 | |||||||||
| Total non-current deferred revenue and advance payments | $ | 4,539 | $ | 6,469 | $ | 5,668 | ||||||
| Total current and non-current: | ||||||||||||
| Deferred product licenses revenue | $ | 1,034 | $ | 2,310 | $ | 3,907 | ||||||
| Deferred subscription services revenue | 15,888 | 15,892 | 17,127 | |||||||||
| Deferred product support revenue | 169,537 | 155,592 | 177,010 | |||||||||
| Deferred other services revenue | 8,150 | 9,215 | 9,342 | |||||||||
| Total current and non-current deferred revenue and advance payments | $ | 194,609 | $ | 183,009 | $ | 207,386 | ||||||
| * | Derived from audited financial statements. | |
| MICROSTRATEGY INCORPORATED | |||||||||
| RECONCILIATION OF GAAP TO NON-GAAP MEASURE | |||||||||
| (in thousands) | |||||||||
| Three Months Ended | |||||||||
| March 31, | |||||||||
| 2019 | 2018 | ||||||||
| (unaudited) | (unaudited) | ||||||||
| Reconciliation of non-GAAP (loss) income from operations: | |||||||||
| (Loss) income from operations | $ | (10,386 | ) | $ | 715 | ||||
| Share-based compensation expense | 3,017 | 4,743 | |||||||
| Non-GAAP (loss) income from operations | $ | (7,369 | ) | $ | 5,458 | ||||
| MICROSTRATEGY INCORPORATED | |||||||||||||||
| WORLDWIDE EMPLOYEE HEADCOUNT | |||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||
| 2019 | 2018 | 2018 | 2018 | 2018 | |||||||||||
| Subscription services | 54 | 56 | 55 | 54 | 57 | ||||||||||
| Product support | 224 | 202 | 194 | 184 | 182 | ||||||||||
| Consulting | 429 | 452 | 458 | 443 | 441 | ||||||||||
| Education | 50 | 47 | 44 | 39 | 42 | ||||||||||
| Sales and marketing | 675 | 707 | 699 | 687 | 667 | ||||||||||
| Research and development | 733 | 716 | 688 | 651 | 604 | ||||||||||
| General and administrative | 329 | 348 | 326 | 322 | 313 | ||||||||||
| Total headcount | 2,494 | 2,528 | 2,464 | 2,380 | 2,306 | ||||||||||
Contacts
MicroStrategy Incorporated
Investor Relations
Claudia Cahill
[email protected]
(703)
848-8600
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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
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
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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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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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