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BlackRock Capital Investment Corporation Reports Financial Results for the Quarter Ended March 31, 2019, Declares Quarterly Distribution of $0.18 per Share
-
GAAP Net Investment Income (NII) of $0.17 per share providing first
quarter distribution coverage of approximately 92%. -
Net Asset Value (NAV) per share increased 1.1% or $0.08 per share to
$7.15 per share on a quarter-over-quarter basis. -
Net leverage of 0.37x was slightly up reflecting a net increase in
investments. Total liquidity for portfolio company investments,
including cash, was approximately $268.8 million, subject to leverage
and borrowing base restrictions. -
Under our existing share repurchase program, we repurchased 85,543
shares of common stock for $0.5 million at an average price of $5.49,
including brokerage commissions, via open market purchases in the
first quarter.
NEW YORK–(BUSINESS WIRE)–BlackRock Capital Investment Corporation (NASDAQ:BKCC) (“BCIC” or the
“Company,” “we,” “us” or “our”) announced today that its Board of
Directors declared a quarterly distribution of $0.18 per share, payable
on July 9, 2019 to stockholders of record at the close of business on
June 18, 2019.
“Our deployment pipeline remains robust heading into the second quarter,
reflecting the increased capabilities of our platform following the
integration of Tennenbaum Capital Partners LLC, or TCP, with the
Company’s adviser, BlackRock Capital Investment Advisors, LLC. Two of
the new investments made by the Company during the quarter were driven
by BlackRock-managed funds being able to provide a holistic financing
solution to our borrowers. For the second quarter, we anticipate
investments in new companies to trend higher based on our current
pipeline and completed investments thus far in the second quarter.
Additionally, we believe that our ability to co-invest with TCP
affiliated funds allows us to mitigate portfolio risk by increasing
issuer and sector diversity,” commented James E. Keenan, Chairman and
Interim CEO of the Company.
“Our net unrealized and realized gains of $6.6 million were a result of
net portfolio valuation increases, primarily driven by appreciation in
our equity investment in US Well Services, Inc. (“USWS”). We anticipate
that the valuation of our USWS investment will continue to shift in line
with the quarter-end closing prices of the USWS stock. Substantially all
of our investment in USWS is subject to lock-ups, half of which expire
in May 2019 and the other half in November 2019.
“Under BlackRock’s management of BCIC, from March 6, 2015 to March 31,
2019, we have deployed capital of approximately $1 billion, of which
$387 million has been exited with a realized IRR of 14.1%. With
liquidity at approximately $269 million and no debt maturities until
2022, we have significant operating flexibility and deployment capacity.”
Financial Highlights
Q1 2019 | Q4 2018 | Q1 2018 | |||||||||||||||||||||||||||
($’s in millions, except per share data) |
Total |
Per Share |
Total |
Per Share |
Total |
Per Share | |||||||||||||||||||||||
Net Investment Income/(loss) | $ | 11.4 | $ | 0.17 | $ | 11.8 | $ | 0.17 | $ | 11.6 | $ | 0.16 | |||||||||||||||||
Net realized and unrealized gains/(losses) | $ | 6.6 | $ | 0.09 | $ | (46.4 | ) | $ | (0.66 | ) | $ | (12.5 | ) | $ | (0.17 | ) | |||||||||||||
Deferred taxes | — | — | $ | 2.2 | $ | 0.03 | — | — | |||||||||||||||||||||
Basic earnings/(losses) | $ | 18.0 | $ | 0.26 | $ | (32.4 | ) | $ | (0.46 | ) | $ | (0.9 | ) | $ | (0.01 | ) | |||||||||||||
Distributions declared | $ | 12.4 | $ | 0.18 | $ | 12.6 | $ | 0.18 | $ | 13.2 | $ | 0.18 | |||||||||||||||||
Net Investment Income/(loss), as adjusted1 | $ | 11.4 | $ | 0.17 | $ | 11.8 | $ | 0.17 | $ | 11.6 | $ | 0.16 | |||||||||||||||||
Basic earnings/(losses), as adjusted1 | $ | 18.0 | $ | 0.26 | $ | (32.4 | ) | $ | (0.46 | ) | $ | (0.9 | ) | $ | (0.01 | ) |
($’s in millions, except per share data) |
March 31,
2019 |
December 31,
2018 |
March 31,
2018 |
|||||||
Total assets | $721.8 | $693.6 | $887.1 | |||||||
Investment portfolio, at fair market value | $680.4 | $671.7 | $870.1 | |||||||
Debt outstanding | $208.8 | $186.4 | $310.1 | |||||||
Total net assets | $492.1 | $487.0 | $553.1 | |||||||
Net asset value per share | $7.15 | $7.07 | $7.65 | |||||||
Net leverage ratio2 | 0.37x | 0.36x | 0.56x |
Business Updates
-
Under our existing share repurchase program, during the first quarter
of 2019, 85,543 shares were repurchased for $0.5 million at an average
price of $5.49 per share, including brokerage commissions. The
cumulative repurchases since BlackRock entered into the investment
management agreement with the Company in early 2015 totaled
approximately 7.3 million shares for $50.4 million, representing 80.4%
of total share repurchase activity, on a dollar basis, since
inception. Since the inception of our share repurchase program through
March 31, 2019, we have purchased 9.0 million shares at an average
price of $6.94 per share, including brokerage commissions, for a total
of $62.7 million. As of March 31, 2019, 3,320,309 shares remained
authorized for repurchase. -
The non-core legacy asset book comprised 33% of our total portfolio by
fair market value as of March 31, 2019. This is further broken down
into income-producing investments, non-earning equities and
non-accrual investments at 25%, 7% and 1% of the total portfolio,
respectively, by fair market value. Our investments in Vertellus
Holdings, AGY Holding, Sur La Table, US Well Services and related
issuers comprise 73% of the non-core book by fair market value.
___________________________ |
1 Non-GAAP basis financial measure. See Supplemental Information on page 8. |
2 Calculated as the ratio between (A) debt, excluding unamortized debt issuance costs, less available cash and receivable for investments sold, and (B) net asset value. |
Portfolio and Investment Activity*
($’s in millions) |
Three Months
|
Three Months
|
Three Months
|
|||||||||||||
Investment deployments | $ | 58.0 | $ | 32.0 | $ | 144.6 | ||||||||||
Investment exits | $ | 55.7 | $ | 94.7 | $ | 17.2 | ||||||||||
Number of portfolio company investments at the end of period | 28 | 27 | 31 | |||||||||||||
Weighted average yield of debt and income producing equity securities, at fair market value |
11.7 | % | 11.5 | % | 11.3 | % | ||||||||||
% of Portfolio invested in Secured debt, at fair market value | 47 | % | 47 | % | 59 | % | ||||||||||
% of Portfolio invested in Unsecured debt, at fair market value | 23 | % | 23 | % | 16 | % | ||||||||||
% of Portfolio invested in Equity, at fair market value | 30 | % | 30 | % | 25 | % | ||||||||||
Average investment by portfolio company, at amortized cost
(excluding investments below $5.0 million) |
$ | 32.5 | $ | 34.1 | $ | 33.6 | ||||||||||
*Balance sheet amounts above are as of period end
-
We deployed $58.0 million during the quarter while exits of
investments totaled $55.7 million, resulting in a $2.3 million net
increase in our portfolio due to investment activity.-
Our deployments were primarily concentrated in three new portfolio
company investments and one investment into an existing portfolio
company.-
$7.5 million funded L + 6.75% first lien term loan (with an
additional $2.5 million unfunded at close) to
FinancialForce.com, a provider of cloud ERP and Professional
Service Automation (“PSA”) software; -
$4.7 million funded L + 7.25% first lien term loan (with a
$0.4 million unfunded revolver) to CareATC, Inc., a
tech-enabled provider of employer-sponsored health and
wellness clinics; -
$21.0 million funded L + 8.50% second lien term loan to
Paragon Films, a leading manufacturer or stretch films
servicing the storage and distribution pallet unitization
market; and -
$23.9 million of incremental L + 11.0% unsecured debt to
Gordon Brothers Finance Company (“GBFC”) to fund portfolio
growth.
-
$7.5 million funded L + 6.75% first lien term loan (with an
-
Our repayments were primarily concentrated in one portfolio
company exit and two partial repayments:-
$25.0 million repayment of Paragon Films second lien term
loan. The exit of this investment occurred pursuant to a sale
of the company to a new sponsor and accompanying
recapitalization. The aforementioned $21.0 million investment
in Paragon Films was an investment in the post-sale capital
structure; - $26.1 million partial repayment of unsecured debt to GBFC;
-
$3.0 million partial repayment of NorthStar Financial second
lien term loan; and
-
$25.0 million repayment of Paragon Films second lien term
-
A $3.0 million revolver commitment to Bankruptcy Management
Solutions was terminated resulting in a complete exit from this
investment. The revolver was unfunded.
-
Our deployments were primarily concentrated in three new portfolio
-
Our $96.3 million equity investment in BCIC Senior Loan Partners
(“SLP”) is generating a yield of greater than 12%. During the first
quarter, SLP made investments into one new portfolio company and four
existing portfolio companies totaling $11.9 million of new capital
deployments during the quarter. Total committed capital and
outstanding investments, at par, amounted to $369.7 million and $354.5
million, respectively, to 28 borrowers. The new investment, at par,
was a $3.1 million first lien term loan to Research Now Group, LLC, a
global leader in data collection through online, mobile, and offline
surveys. Incremental investments to existing portfolio companies
primarily included an additional $4.1 million investment in Protective
Industrial Products, Inc., and an additional $3.6 million investment
in MSHC, Inc. (Service Logic Acquisition). -
As of March 31, 2019, there were three non-accrual investment
positions, representing approximately 1.6% and 7.0% of total debt and
preferred stock investments, at fair value and cost, respectively, as
compared to non-accrual investment positions of approximately 1.6% and
7.1% of total debt and preferred stock investments at fair value and
cost, respectively, at December 31, 2018. Our average internal
investment rating at fair market value at March 31, 2019 was 1.49 as
compared to 1.44 as of the prior quarter end. -
During the quarter ended March 31, 2019, net realized and unrealized
gains were $6.6 million, primarily due to appreciation in portfolio
valuations during the quarter.
First Quarter Financial Updates
-
GAAP net investment income (“NII”) was $11.4 million, or $0.17 per
share, for the three months ended March 31, 2019. Relative to
distributions declared of $0.18 per share, our NII distribution
coverage was 92% for the quarter. -
As previously disclosed, our base management fee rate was reduced from
an annual rate of 2.00% of total assets to 1.75%, effective March 7,
2017, and incentive management fees based on income were waived by our
investment adviser until June 30, 2019. For the quarter ended March
31, 2019, we incurred base management fees of $2.9 million. Incentive
management fees based on income of $2.3 million were earned and waived
by our adviser during the current quarter. Additionally, $18.8 million
of incentive management fees have been waived on a cumulative basis.
For incentive management fees based on gains, there was no accrual as
of March 31, 2019. -
Tax characteristics of all 2018 distributions were reported to
stockholders on Form 1099 after the end of the calendar year. Our 2018
distributions of $0.72 per share were comprised of $0.70 per share
from various sources of income and $0.02 per share of return of
capital. Our return of capital distributions totaled $1.98 per share
from inception to December 31, 2018. At our discretion, we may carry
forward taxable income in excess of calendar year distributions and
pay a 4% excise tax on this income. We will accrue excise tax on
estimated undistributed taxable income as required. There was no
undistributed taxable income carried forward from 2018.
Liquidity and Capital Resources
-
At March 31, 2019, we had $27.1 million in cash and cash equivalents
and $241.7 million of availability under our credit facility, subject
to leverage restrictions, resulting in approximately $268.8 million of
availability for portfolio company investments. -
Net leverage, adjusted for available cash, receivables for investments
sold, payables for investments purchased and unamortized debt issuance
costs, stood at 0.37x at quarter-end, and our 328% asset coverage
ratio provided the Company with available debt capacity under its
asset coverage requirements of $274.7 million. Further, as of
quarter-end, approximately 77% of our portfolio was invested in
qualifying assets, exceeding the 70% regulatory requirement of a
business development company.
Conference Call
BlackRock Capital Investment Corporation will host a
webcast/teleconference at 10:00 a.m. (Eastern Time) on Thursday, May 2,
2019, to discuss its first quarter 2019 financial results. All
interested parties are welcome to participate. You can access the
teleconference by dialing, from the United States, (800) 458-4148, or
from outside the United States, +1-720-543-0206, 10 minutes before 10:00
a.m. and referencing the BlackRock Capital Investment Corporation
Conference Call (ID Number 3027722). A live, listen-only webcast will
also be available via the Investor Relations section of www.blackrockbkcc.com.
Both the teleconference and webcast will be available for replay by 1:00
p.m. on Thursday, May 2, 2019 and ending at 1:00 p.m. on Thursday, May
16, 2019. To access the replay of the teleconference, callers from the
United States should dial (888) 203-1112 and callers from outside the
United States should dial (719) 457-0820 and enter the Conference ID
Number 3027722.
Prior to the webcast/teleconference, an investor presentation that
complements the earnings conference call will be posted to BlackRock
Capital Investment Corporation’s website within the Presentations
section of the Investors page (http://www.blackrockbkcc.com/news-and-events/disclaimer).
About BlackRock Capital Investment Corporation
BlackRock Capital Investment Corporation is a business development
company that provides debt and equity capital to middle-market companies.
The Company’s investment objective is to generate both current income
and capital appreciation through debt and equity investments. The
Company invests primarily in middle-market companies in the form of
senior and junior secured and unsecured debt securities and loans, each
of which may include an equity component, and by making direct
preferred, common and other equity investments in such companies.
BlackRock Capital Investment Corporation Consolidated Statements of Assets and Liabilities |
|||||||||||
March 31,
2019 |
December 31,
2018 |
||||||||||
Assets | |||||||||||
Investments at fair value: | |||||||||||
Non-controlled, non-affiliated investments (cost of $253,938,127 and $233,331,450) |
$ | 218,148,636 | $ | 200,569,644 | |||||||
Non-controlled, affiliated investments (cost of $114,252,403 and $130,892,674) |
99,991,510 | 111,727,234 | |||||||||
Controlled investments (cost of $387,251,367 and $388,870,375) | 362,234,127 | 359,356,068 | |||||||||
Total investments at fair value (cost of $755,441,897 and $753,094,499) |
680,374,273 | 671,652,946 | |||||||||
Cash and cash equivalents | 27,107,015 | 13,497,320 | |||||||||
Receivable for investments sold | 2,002,968 | 1,691,077 | |||||||||
Interest, dividends and fees receivable | 9,945,510 | 4,084,001 | |||||||||
Prepaid expenses and other assets | 2,368,966 | 2,707,036 | |||||||||
Total Assets | $ | 721,798,732 | $ | 693,632,380 | |||||||
Liabilities | |||||||||||
Debt (net of deferred financing costs of $2,997,396 and $3,227,965) | $ | 208,835,348 | $ | 186,397,728 | |||||||
Interest and credit facility fees payable | 2,576,255 | 722,841 | |||||||||
Distributions payable | 12,390,525 | 12,552,212 | |||||||||
Base management fees payable | 2,923,149 | 3,494,520 | |||||||||
Payable for investments purchased | — | 989,460 | |||||||||
Accrued administrative services | 739,812 | 376,507 | |||||||||
Other accrued expenses and payables | 2,204,539 | 2,078,958 | |||||||||
Total Liabilities | 229,669,628 | 206,612,226 | |||||||||
Net Assets | |||||||||||
Common stock, par value $.001 per share, 200,000,000 common shares authorized, |
|||||||||||
77,861,287 and 77,861,287 issued and 68,836,255 and 68,921,798 outstanding |
77,861 | 77,861 | |||||||||
Paid-in capital in excess of par | 853,248,794 | 853,248,794 | |||||||||
Distributable earnings (losses) | (298,528,296 | ) | (304,106,473 | ) | |||||||
Treasury stock at cost, 9,025,032 and 8,939,489 shares held | (62,669,255 | ) | (62,200,028 | ) | |||||||
Total Net Assets | 492,129,104 | 487,020,154 | |||||||||
Total Liabilities and Net Assets | $ | 721,798,732 | $ | 693,632,380 | |||||||
Net Asset Value Per Share | $ | 7.15 | $ | 7.07 | |||||||
BlackRock Capital Investment Corporation Consolidated Statements of Operations |
|||||||||||
Three Months |
Three Months |
||||||||||
Investment Income: | |||||||||||
Non-controlled, non-affiliated investments: | |||||||||||
Cash interest income | $ | 5,942,016 | $ | 7,144,027 | |||||||
PIK interest income | 240,184 | — | |||||||||
Fee income | 475,407 | 465,206 | |||||||||
Total investment income from non-controlled, non-affiliated investments |
6,657,607 | 7,609,233 | |||||||||
Non-controlled, affiliated investments: | |||||||||||
Cash interest income | 1,222,251 | 2,214,613 | |||||||||
PIK interest income | — | 690,960 | |||||||||
PIK dividend income | 220,480 | 189,026 | |||||||||
Fee income | — | 35,000 | |||||||||
Total investment income from non-controlled, affiliated investments | 1,442,731 | 3,129,599 | |||||||||
Controlled investments: | |||||||||||
Cash interest income | 6,900,738 | 5,085,705 | |||||||||
PIK interest income | — | 766,466 | |||||||||
Cash dividend income | 4,191,703 | 3,126,861 | |||||||||
PIK dividend income | — | 731,516 | |||||||||
Fee income | 121,862 | 387,058 | |||||||||
Total investment income from controlled investments | 11,214,303 | 10,097,606 | |||||||||
Total investment income | 19,314,641 | 20,836,438 | |||||||||
Expenses: | |||||||||||
Base management fees | 2,923,149 | 3,312,369 | |||||||||
Incentive management fees | 2,280,836 | 1,735,195 | |||||||||
Interest and credit facility fees | 3,392,434 | 3,708,958 | |||||||||
Professional fees | 473,043 | 733,164 | |||||||||
Administrative services | 363,305 | 553,764 | |||||||||
Director fees | 193,000 | 187,000 | |||||||||
Investment advisor expenses | 87,500 | 87,500 | |||||||||
Other | 478,029 | 630,737 | |||||||||
Total expenses, before incentive management fee waiver | 10,191,296 | 10,948,687 | |||||||||
Incentive management fee waiver | (2,280,836 | ) | (1,735,195 | ) | |||||||
Expenses, net of incentive management fee waiver | 7,910,460 | 9,213,492 | |||||||||
Net Investment Income | 11,404,181 | 11,622,946 | |||||||||
Realized and Unrealized Gain (Loss): | |||||||||||
Net realized gain (loss): | |||||||||||
Non-controlled, non-affiliated investments | 325,489 | (50,515,956 | ) | ||||||||
Non-controlled, affiliated investments | (269,226 | ) | — | ||||||||
Controlled investments | — | (26,118,432 | ) | ||||||||
Net realized gain (loss) | 56,263 | (76,634,388 | ) | ||||||||
Net change in unrealized appreciation (depreciation) on: | |||||||||||
Non-controlled, non-affiliated investments | (2,684,053 | ) | 43,690,517 | ||||||||
Non-controlled, affiliated investments | 4,560,914 | 1,422,575 | |||||||||
Controlled investments | 4,497,067 | 19,156,544 | |||||||||
Foreign currency translation | 134,330 | (173,911 | ) | ||||||||
Net change in unrealized appreciation (depreciation) | 6,508,258 | 64,095,725 | |||||||||
Net realized and unrealized gain (loss) | 6,564,521 | (12,538,663 | ) | ||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 17,968,702 | $ | (915,717 | ) | ||||||
Net Investment Income Per Share-basic | $ | 0.17 | $ | 0.16 | |||||||
Earnings (Loss) Per Share-basic | $ | 0.26 | $ | (0.01 | ) | ||||||
Average Shares Outstanding-basic | 68,837,612 | 72,991,828 | |||||||||
Net Investment Income Per Share-diluted | $ | 0.16 | $ | 0.15 | |||||||
Earnings (Loss) Per Share-diluted | $ | 0.24 | $ | (0.01 | ) | ||||||
Average Shares Outstanding-diluted | 85,831,349 | 89,985,565 | |||||||||
Distributions Declared Per Share | $ | 0.18 | $ | 0.18 | |||||||
Supplemental Information
The Company reports its financial results on a GAAP basis; however,
management believes that evaluating the Company’s ongoing operating
results may be enhanced if investors have additional non-GAAP basis
financial measures. Management reviews non-GAAP financial measures to
assess ongoing operations and, for the reasons described below,
considers them to be effective indicators, for both management and
investors, of the Company’s financial performance over time. The
Company’s management does not advocate that investors consider such
non-GAAP financial measures in isolation from, or as a substitute for,
financial information prepared in accordance with GAAP.
Until March 6, 2017, the Company recorded its liability for incentive
management fees based on income as it became legally obligated to pay
them, based on a hypothetical liquidation at the end of each reporting
period. The Company’s obligation to pay incentive management fees with
respect to any fiscal quarter until March 6, 2017 was based on a formula
that reflects the Company’s results over a trailing four-fiscal quarter
period ending with the pro-rated period until March 6, 2017. The Company
is legally obligated to pay the amount resulting from the formula less
any cash payments of incentive management fees during the prior three
quarters. The formula’s requirement to reduce the incentive management
fee by amounts paid with respect to such fees in the prior three
quarters caused the Company’s incentive management fee expense to become
concentrated in the fourth quarter of each year. Management believes
that reflecting incentive management fees throughout the year, as the
related investment income is earned, is an effective measure of the
Company’s profitability and financial performance that facilitates
comparison of current results with historical results and with those of
the Company’s peers. The Company’s “as adjusted” results reflect
incentive management fees based on the formula the Company utilizes for
each trailing four-fiscal quarter period until March 6, 2017, with the
formula applied to each quarter’s incremental earnings and without any
reduction for incentive management fees paid during the prior three
quarters. The resulting amount represents an upper limit of each
quarter’s incremental incentive management fees that the Company may
become legally obligated to pay at the end of the year. Prior year
amounts are estimated in the same manner. These estimates represent
upper limits because, in any calendar year, subsequent quarters’
investment underperformance could reduce the incentive management fees
payable by the Company with respect to prior quarters’ operating
results. After March 6, 2017, incentive management fees based on income
have been calculated for each calendar quarter and are paid on a
quarterly basis if certain thresholds are met. The Company records its
liability for incentive management fees based on capital gains by
performing a hypothetical liquidation at the end of each reporting
period. The accrual of this hypothetical capital gains incentive
management fee is required by GAAP, but it should be noted that a fee so
calculated and accrued is not due and payable until the end of the
measurement period, or every June 30. The incremental incentive
management fees disclosed for a given period are not necessarily
indicative of actual full year results. Changes in the economic
environment, financial markets and other parameters used in determining
such estimates could cause actual results to differ and such differences
could be material. In addition, on March 7, 2017, BlackRock Advisors, in
consultation with the Company’s Board of Directors, agreed to waive
incentive fees based on income after March 6, 2017 to December 31, 2018,
which was extended to June 30, 2019. BCIA has agreed to honor such
waiver. For a more detailed description of the Company’s incentive
management fee, please refer to the Company’s Annual Report on Form 10-K
for the fiscal year ended December 31, 2018, on file with the Securities
and Exchange Commission (“SEC”).
Computations for the periods below are derived from the Company’s
financial statements as follows:
Three months
|
Three months
|
||||||||
GAAP Basis: | |||||||||
Net Investment Income | $ | 11,404,181 | $ | 11,622,946 | |||||
Net Investment Income per share | 0.17 | 0.16 | |||||||
Addback: GAAP incentive management fee expense based on Gains | — | — | |||||||
Addback: GAAP incentive management fee expense based on Income | — | — | |||||||
Pre-Incentive Fee 1 : | |||||||||
Net Investment Income | $ | 11,404,181 | $ | 11,622,946 | |||||
Net Investment Income per share | 0.17 | 0.16 | |||||||
Less: Incremental incentive management fee expense based on Income | — | — | |||||||
As Adjusted 2 : | |||||||||
Net Investment Income | $ | 11,404,181 | $ | 11,622,946 | |||||
Net Investment Income per share | 0.17 | 0.16 | |||||||
Note: The Net Investment Income amounts for the three months ended March 31, 2019 and 2018 are net of incentive management fees based on income and a corresponding incentive management fee waiver in the amounts of $2,280,836 and $1,735,195, respectively. For the periods shown, there is no difference between the GAAP and as adjusted figures; however, there may be a difference in future periods. |
1 Pre-Incentive Fee: Amounts are adjusted to |
2 As Adjusted: Amounts are adjusted to remove |
Contacts
Investor Contact:
Nik Singhal
212.810.5427
Press
Contact:
Brian Beades
212.810.5596
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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
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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