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Cable ONE Reports First Quarter 2019 Results
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PHOENIX–(BUSINESS WIRE)–Cable One, Inc. (NYSE: CABO) (the “Company” or “Cable ONE”) today
reported financial and operating results for the quarter ended March 31,
2019.
First Quarter 2019 Highlights:
-
Total revenues were $278.6 million in the first quarter of 2019
compared to $265.8 million in the first quarter of 2018, an increase
of 4.8%. Residential data revenues increased 8.3% and business
services revenues increased 25.1% year-over-year. -
Net income was $38.7 million in the first quarter of 2019, a decrease
of 4.7% year-over-year. Adjusted EBITDA(1) was $133.1
million, an increase of 8.0% year-over-year. Net profit margin was
13.9% and Adjusted EBITDA margin(1) was 47.8%. -
Net cash provided by operating activities was $104.4 million in the
first quarter of 2019, an increase of 10.2% year-over-year. Adjusted
EBITDA less capital expenditures(1) was $86.5 million in
the first quarter of 2019, an increase of 5.1% year-over-year. -
Residential data primary service units (“PSUs”) grew approximately
11,000, or 1.8%, in the first quarter of 2019 compared to the fourth
quarter of 2018. Residential data PSUs grew approximately 19,000, or
3.3%, year-over-year. -
In January 2019, the Company completed the acquisition of Clearwave
Communications, a facilities-based service provider that owns and
operates a high-capacity fiber network offering dense regional
coverage in Southern Illinois (“Clearwave”).
Other Highlights:
-
In April 2019, the Company announced that it had entered into an
agreement with Fidelity Communications Co. to acquire its data, video
and voice business and certain related assets (collectively,
“Fidelity”) for $525.9 million in cash, subject to customary
post-closing adjustments. -
Following the end of the first quarter, the Company established a new
$325.0 million senior secured delayed draw term loan B-3 facility (the
“Term Loan B-3”), a new $350.0 million senior secured revolving credit
facility (the “Revolving Credit Facility”), a new $250.0 million
senior secured term loan A facility (the “Term Loan A”) and a new
$450.0 million senior secured delayed draw term loan A facility (the
“Delayed Draw Term Loan A” and, together with the Term Loan B-3, the
Revolving Credit Facility and the Term Loan A, the “New Credit
Facilities”). The Company applied certain of the net proceeds from the
New Credit Facilities to refinance its previous senior secured
revolving credit facility and senior secured term loan A facility in
May 2019, and it intends to use the remaining net proceeds of the New
Credit Facilities, together with cash on hand, to redeem its
outstanding 5.75% senior unsecured notes due 2022 (the “Notes”) on or
after June 15, 2019 when the call premium steps down, to finance the
pending Fidelity acquisition and for other general corporate purposes.
(1) |
Adjusted EBITDA, Adjusted EBITDA margin and Adjusted EBITDA less |
||
First Quarter 2019 Financial Results Compared to First Quarter 2018
Revenues increased $12.8 million, or 4.8%, to $278.6 million for the
first quarter of 2019, including a $6.1 million contribution from
Clearwave operations. The remaining increase was driven primarily by
residential data and business services revenue growth, partially offset
by decreases in residential video and voice and advertising sales
revenues. For the first quarter of 2019 and 2018, residential data
revenues comprised 46.6% and 45.1% of total revenues and business
services revenues comprised 16.9% and 14.2% of total revenues,
respectively.
Operating expenses (excluding depreciation and amortization) were $94.5
million in the first quarter of 2019 compared to $94.7 million in the
first quarter of 2018. As a percentage of revenues, operating expenses
were 33.9% for the first quarter of 2019 compared to 35.6% for the
year-ago quarter.
Selling, general and administrative expenses were $61.4 million for the
first quarter of 2019 and increased $10.5 million, or 20.6%, compared to
the first quarter of 2018. The increase was primarily attributable to
acquisition-related costs incurred during the first quarter of 2019, an
increase in marketing costs and additional expenses related to Clearwave
operations. Selling, general and administrative expenses as a percentage
of revenues were 22.1% and 19.2% for the first quarter of 2019 and 2018,
respectively.
Depreciation and amortization expense was $53.8 million for the first
quarter of 2019 and increased $5.1 million, or 10.4%, compared to the
first quarter of 2018. The increase was due primarily to new assets
placed in service since the first quarter of 2018 and additional
depreciation and amortization related to Clearwave operations, partially
offset by assets that became fully depreciated since the first quarter
of 2018. The Company recognized $1.1 million and $6.6 million of net
losses on asset disposals during the first quarter of 2019 and 2018,
respectively. The first quarter of 2019 included a gain on the sale of a
non-operating property that housed the Company’s former headquarters,
while the prior year quarter included more asset disposals.
Interest expense increased $3.4 million, or 22.9%, to $18.1 million,
driven by additional outstanding debt and an increase in interest rates
year-over-year.
Income tax provision was $12.7 million in the first quarter of 2019
compared to $9.9 million in the prior year quarter. The increase
primarily related to a $1.4 million decrease in income tax benefits
attributable to equity-based compensation and a $0.9 million increase in
income tax expenses attributable to state effective tax rate changes
during the first quarter of 2019.
Net income was $38.7 million in the first quarter of 2019 compared to
$40.7 million in the prior year quarter.
Adjusted EBITDA was $133.1 million and $123.3 million for the first
quarter of 2019 and 2018, respectively, an increase of 8.0%. Capital
expenditures totaled $46.6 million and $41.0 million for the first
quarter of 2019 and 2018, respectively. Adjusted EBITDA less capital
expenditures for the first quarter of 2019 was $86.5 million, an
increase of $4.2 million, or 5.1%, from the prior year quarter.
Liquidity and Capital Resources
At March 31, 2019, the Company had $187.6 million of cash and cash
equivalents on hand compared to $264.1 million at December 31, 2018. The
Company’s debt balance was approximately $1.4 billion and $1.2 billion
at March 31, 2019 and December 31, 2018, respectively. The Company also
had $195.9 million available for borrowing under its revolving credit
facility as of March 31, 2019.
During the first quarter of 2019, the Company repurchased 5,984 shares
for $5.1 million and paid $11.4 million in dividends to stockholders.
In January 2019, the Company borrowed $250.0 million of new term B-2
loans maturing in January 2026 to finance, in part, the Clearwave
acquisition. In April 2019, the Company established the new $325.0
million Term Loan B-3 maturing in January 2026, and on May 8, 2019, the
Company entered into the new $350.0 million Revolving Credit Facility,
$250.0 million Term Loan A and $450.0 million Delayed Draw Term Loan A
described above, each maturing in May 2024. This press release is not,
and shall not be deemed to be, a notice of optional redemption of the
Notes.
During the first quarter of 2019, the Company also entered into two
interest rate swap agreements in order to convert the Company’s interest
payment obligations with respect to an aggregate of $1.2 billion of the
Company’s variable rate LIBOR indebtedness to a fixed rate. Under the
first swap agreement, with respect to a notional amount of $850.0
million, the Company’s monthly payment obligation is determined at a
fixed base rate of 2.653% beginning in March 2019. Under the second swap
agreement, which is a forward-starting interest rate swap with respect
to a notional amount of $350.0 million, the Company’s monthly payment
obligation beginning in June 2020 is determined at a fixed base rate of
2.739%. Both interest rate swap agreements are scheduled to mature in
the first quarter of 2029 but may be terminated prior to their scheduled
maturity at the election of the Company or the financial institution
counterparty as provided in each swap agreement.
Conference Call
Cable ONE will host a conference call with the financial community to
discuss results for the first quarter of 2019 on Thursday, May 9, 2019,
at 5 p.m. Eastern Time (ET).
Shareholders, analysts and other interested parties may register for the
conference in advance at http://dpregister.com/10131059.
Those unable to pre-register may join the call via the live audio
webcast on the Cable
ONE Investor Relations website or by dialing 1-844-378-6483 (Canada:
1-855-669-9657/International: 1-412-542-4178) shortly before 5 p.m. ET.
A replay of the call will be available from Thursday, May 9, 2019 until
Thursday, May 23, 2019 on the Cable
ONE Investor Relations website.
Additional Information
The information in this press release should be read in conjunction with
the condensed consolidated financial statements and notes thereto
contained in the Company’s Quarterly Report on Form 10-Q for the period
ended March 31, 2019, which will be posted on the “SEC Filings” section
of the Cable ONE Investor Relations website at ir.cableone.net when it
is filed with the U.S. Securities and Exchange Commission (the “SEC”).
Investors and others interested in more information about Cable ONE
should consult the Company’s website, which is regularly updated with
financial and other important information about the Company.
Certain amounts in the tables within this press release may not foot due
to rounding.
Use of Non-GAAP Financial Measures
The Company uses certain measures that are not defined by generally
accepted accounting principles in the United States (“GAAP”) to evaluate
various aspects of its business. Adjusted EBITDA, Adjusted EBITDA
margin, Adjusted EBITDA less capital expenditures and capital
expenditures as a percentage of Adjusted EBITDA are non-GAAP financial
measures and should be considered in addition to, not as superior to, or
as a substitute for, net income, net profit margin or net cash provided
by operating activities reported in accordance with GAAP. Adjusted
EBITDA and Adjusted EBITDA less capital expenditures are reconciled to
net income, Adjusted EBITDA margin is reconciled to net profit margin
and capital expenditures as a percentage of Adjusted EBITDA is
reconciled to capital expenditures as a percentage of net income.
Adjusted EBITDA less capital expenditures is also reconciled to net cash
provided by operating activities. These reconciliations are included in
the “Reconciliations of Non-GAAP Measures” tables within this
press release.
“Adjusted EBITDA” is defined as net income plus interest expense, income
tax provision, depreciation and amortization, equity-based compensation,
severance expense, (gain) loss on deferred compensation,
acquisition-related costs, (gain) loss on asset disposals, system
conversion costs, rebranding costs, other (income) expense and other
unusual operating expenses, as provided in the “Reconciliations of
Non-GAAP Measures” tables within this press release. As such, it
eliminates the significant non-cash depreciation and amortization
expense that results from the capital-intensive nature of the Company’s
business as well as other non-cash or special items and is unaffected by
the Company’s capital structure or investment activities. This measure
is limited in that it does not reflect the periodic costs of certain
capitalized tangible and intangible assets used in generating revenues
and the Company’s cash cost of debt financing. These costs are evaluated
through other financial measures.
“Adjusted EBITDA margin” is defined as Adjusted EBITDA divided by total
revenues.
“Adjusted EBITDA less capital expenditures,” when used as a liquidity
measure, is calculated as net cash provided by operating activities
excluding the impact of capital expenditures, interest expense, income
tax provision, changes in operating assets and liabilities, change in
deferred income taxes and other unusual operating expenses, as provided
in the “Reconciliations of Non-GAAP Measures” tables within this
press release.
“Capital expenditures as a percentage of Adjusted EBITDA” is defined as
capital expenditures divided by Adjusted EBITDA.
The Company uses Adjusted EBITDA, Adjusted EBITDA margin, Adjusted
EBITDA less capital expenditures and capital expenditures as a
percentage of Adjusted EBITDA to assess its performance, and it also
uses Adjusted EBITDA less capital expenditures as an indicator of its
ability to fund operations and make additional investments with
internally-generated funds. In addition, Adjusted EBITDA generally
correlates to the measure used in the leverage ratio calculations under
the Company’s credit facilities and senior unsecured notes to determine
compliance with the covenants contained in the credit agreement and the
ability to take certain actions under the indenture governing the notes.
Adjusted EBITDA and capital expenditures are also significant
performance measures used by the Company in its annual incentive
compensation program. Adjusted EBITDA does not take into account cash
used for mandatory debt service requirements or other non-discretionary
expenditures, and thus does not represent residual funds available for
discretionary uses.
The Company believes Adjusted EBITDA, Adjusted EBITDA margin and capital
expenditures as a percentage of Adjusted EBITDA are useful to investors
in evaluating the operating performance of the Company. The Company
believes that Adjusted EBITDA less capital expenditures is useful to
investors as it shows the Company’s performance while taking into
account cash outflows for capital expenditures and is one of several
indicators of the Company’s ability to service debt, make investments
and/or return capital to its shareholders.
Adjusted EBITDA, Adjusted EBITDA margin, Adjusted EBITDA less capital
expenditures, capital expenditures as a percentage of Adjusted EBITDA
and similar measures with similar titles are common measures used by
investors, analysts and peers to compare performance in the Company’s
industry, although the Company’s measures of Adjusted EBITDA, Adjusted
EBITDA margin, Adjusted EBITDA less capital expenditures and capital
expenditures as a percentage of Adjusted EBITDA may not be directly
comparable to similarly titled measures reported by other companies.
About Cable ONE
Cable One, Inc. (NYSE: CABO) is a leading broadband communications
provider serving more than 800,000 residential and business customers in
21 states. Cable ONE provides consumers with a wide array of
connectivity and entertainment services, including high-speed internet
and advanced Wi-Fi solutions, cable television and phone service. Cable
ONE Business provides scalable and cost-effective products for
businesses ranging in size from small to mid-market, in addition to
enterprise, wholesale and carrier customers.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
This communication may contain “forward-looking statements” that involve
risks and uncertainties. These statements can be identified by the fact
that they do not relate strictly to historical or current facts, but
rather are based on current expectations, estimates, assumptions and
projections about the Company’s industry, business, financial results
and financial condition. Forward-looking statements often include words
such as “will,” “should,” “anticipates,” “estimates,” “expects,”
“projects,” “intends,” “plans,” “believes” and words and terms of
similar substance in connection with discussions of future operating or
financial performance. As with any projection or forecast,
forward-looking statements are inherently susceptible to uncertainty and
changes in circumstances. The Company’s actual results may vary
materially from those expressed or implied in its forward-looking
statements. Accordingly, undue reliance should not be placed on any
forward-looking statement made by the Company or on its behalf.
Important factors that could cause the Company’s actual results to
differ materially from those in its forward-looking statements include
government regulation, economic, strategic, political and social
conditions and the following factors:
-
uncertainties as to the timing of the anticipated acquisition of
Fidelity and the risk that the transaction may not be completed in a
timely manner or at all; -
the possibility that any or all of the various conditions to the
consummation of the anticipated acquisition of Fidelity may not be
satisfied or waived, including failure to receive any required
regulatory approvals (or any conditions, limitations or restrictions
placed in connection with such approvals); -
the effect of the announcement or pendency of the Fidelity transaction
on the Company’s and Fidelity’s ability to retain and hire key
personnel and to maintain relationships with customers, suppliers and
other business partners; -
risks related to management’s attention being diverted from the
Company’s ongoing business operations; -
uncertainties as to the Company’s ability and the amount of time
necessary to realize the expected synergies and other benefits of the
Fidelity transaction; - the Company’s ability to integrate Fidelity’s operations into its own;
-
rising levels of competition from historical and new entrants in the
Company’s markets; - recent and future changes in technology;
-
the Company’s ability to continue to grow its business services
products; - increases in programming costs and retransmission fees;
-
the Company’s ability to obtain hardware, software and operational
support from vendors; - the effects of any new significant acquisitions by the Company;
-
risks that the Company’s rebranding may not produce the benefits
expected; - adverse economic conditions;
-
the integrity and security of the Company’s network and information
systems; -
the impact of possible security breaches and other disruptions,
including cyber-attacks; -
the Company’s failure to obtain necessary intellectual and proprietary
rights to operate its business and the risk of intellectual property
claims and litigation against the Company; - the Company’s ability to retain key employees;
-
legislative or regulatory efforts to impose network neutrality and
other new requirements on the Company’s data services; - additional regulation of the Company’s video and voice services;
- the Company’s ability to renew cable system franchises;
- increases in pole attachment costs;
-
changes in local governmental franchising authority and broadcast
carriage regulations; -
the potential adverse effect of the Company’s level of indebtedness on
its business, financial condition or results of operations and cash
flows; -
the possibility that interest rates will rise, causing the Company’s
obligations to service its variable rate indebtedness to increase
significantly; - the Company’s ability to incur future indebtedness;
- fluctuations in the Company’s stock price;
- the Company’s ability to continue to pay dividends;
-
dilution from equity awards and potential stock issuances in
connection with acquisitions; -
provisions in the Company’s charter, by-laws and Delaware law that
could discourage takeovers; and -
the other risks and uncertainties detailed from time to time in the
Company’s filings with the SEC, including but not limited to its
latest Annual Report on Form 10-K as filed with the SEC.
Any forward-looking statements made by the Company in this communication
speak only as of the date on which they are made. The Company is under
no obligation, and expressly disclaims any obligation, except as
required by law, to update or alter its forward-looking statements,
whether as a result of new information, subsequent events or otherwise.
CABLE ONE, INC. | |||||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME |
|||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||
(dollars in thousands, except per share data) |
2019 | 2018 |
$ Change |
% Change | |||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Residential data | $ | 129,812 | $ | 119,859 | $ | 9,953 | 8.3 | % | |||||||||||||||
Residential video | 83,802 | 88,760 | (4,958 | ) | (5.6 | )% | |||||||||||||||||
Residential voice | 9,624 | 10,671 | (1,047 | ) | (9.8 | )% | |||||||||||||||||
Business services | 47,143 | 37,688 | 9,455 | 25.1 | % | ||||||||||||||||||
Advertising sales | 4,729 | 5,241 | (512 | ) | (9.8 | )% | |||||||||||||||||
Other | 3,495 | 3,542 | (47 | ) | (1.3 | )% | |||||||||||||||||
Total Revenues | 278,605 | 265,761 | 12,844 | 4.8 | % | ||||||||||||||||||
Costs and Expenses: | |||||||||||||||||||||||
Operating (excluding depreciation and amortization) | 94,518 | 94,739 | (221 | ) | (0.2 | )% | |||||||||||||||||
Selling, general and administrative | 61,443 | 50,949 | 10,494 | 20.6 | % | ||||||||||||||||||
Depreciation and amortization | 53,844 | 48,778 | 5,066 | 10.4 | % | ||||||||||||||||||
Loss on asset disposals, net | 1,103 | 6,634 | (5,531 | ) | (83.4 | )% | |||||||||||||||||
Total Costs and Expenses | 210,908 | 201,100 | 9,808 | 4.9 | % | ||||||||||||||||||
Income from operations | 67,697 | 64,661 | 3,036 | 4.7 | % | ||||||||||||||||||
Interest expense | (18,096 | ) | (14,723 | ) | (3,373 | ) | 22.9 | % | |||||||||||||||
Other income, net | 1,802 | 617 | 1,185 | 192.1 | % | ||||||||||||||||||
Income before income taxes | 51,403 | 50,555 | 848 | 1.7 | % | ||||||||||||||||||
Income tax provision | 12,664 | 9,902 | 2,762 | 27.9 | % | ||||||||||||||||||
Net income | $ | 38,739 | $ | 40,653 | $ | (1,914 | ) | (4.7 | )% | ||||||||||||||
Net Income per Common Share: | |||||||||||||||||||||||
Basic | $ | 6.83 | $ | 7.13 | $ | (0.30 | ) | (4.2 | )% | ||||||||||||||
Diluted | $ | 6.78 | $ | 7.08 | $ | (0.30 | ) | (4.2 | )% | ||||||||||||||
Weighted Average Common Shares Outstanding: | |||||||||||||||||||||||
Basic | 5,674,120 | 5,702,539 | (28,419 | ) | (0.5 | )% | |||||||||||||||||
Diluted | 5,716,585 | 5,742,648 | (26,063 | ) | (0.5 | )% | |||||||||||||||||
Deferred gain (loss) on cash flow hedges and other, net of tax | $ | (29,069 | ) | $ | 1 | $ | (29,070 | ) | NM | ||||||||||||||
Comprehensive income | $ | 9,670 | $ | 40,654 | $ | (30,984 | ) | (76.2 | )% | ||||||||||||||
NM = Not meaningful. | |||||||||||||||||||||||
CABLE ONE, INC. | |||||||||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||||||||||||
(Unaudited) | |||||||||||||||||||
(dollars in thousands, except par values) |
March 31, 2019 | December 31, 2018 | |||||||||||||||||
Assets | |||||||||||||||||||
Current Assets: | |||||||||||||||||||
Cash and cash equivalents | $ | 187,559 | $ | 264,113 | |||||||||||||||
Accounts receivable, net | 28,410 | 29,947 | |||||||||||||||||
Income taxes receivable | 4,658 | 10,713 | |||||||||||||||||
Prepaid and other current assets | 21,742 | 13,090 | |||||||||||||||||
Total Current Assets | 242,369 | 317,863 | |||||||||||||||||
Property, plant and equipment, net | 965,396 | 847,979 | |||||||||||||||||
Intangible assets, net | 1,039,427 | 953,851 | |||||||||||||||||
Goodwill | 355,347 | 172,129 | |||||||||||||||||
Other noncurrent assets | 21,698 | 11,412 | |||||||||||||||||
Total Assets | $ | 2,624,237 | $ | 2,303,234 | |||||||||||||||
Liabilities and Stockholders’ Equity | |||||||||||||||||||
Current Liabilities: | |||||||||||||||||||
Accounts payable and accrued liabilities | $ | 92,216 | $ | 94,134 | |||||||||||||||
Deferred revenue | 24,096 | 18,954 | |||||||||||||||||
Current portion of long-term debt | 24,892 | 20,625 | |||||||||||||||||
Total Current Liabilities | 141,204 | 133,713 | |||||||||||||||||
Long-term debt | 1,385,475 | 1,142,056 | |||||||||||||||||
Deferred income taxes | 269,816 | 242,127 | |||||||||||||||||
Other noncurrent liabilities | 58,707 | 9,980 | |||||||||||||||||
Total Liabilities | 1,855,202 | 1,527,876 | |||||||||||||||||
Stockholders’ Equity | |||||||||||||||||||
Preferred stock ($0.01 par value; 4,000,000 shares authorized; none issued or outstanding) |
– | – | |||||||||||||||||
Common stock ($0.01 par value; 40,000,000 shares authorized; 5,887,899 shares issued; and 5,699,330 and 5,703,402 shares outstanding as of March 31, 2019 and December 31, 2018, respectively) |
59 | 59 | |||||||||||||||||
Additional paid-in capital | 41,919 | 38,898 | |||||||||||||||||
Retained earnings | 877,644 | 850,292 | |||||||||||||||||
Accumulated other comprehensive loss | (29,165 | ) | (96 | ) | |||||||||||||||
Treasury stock, at cost (188,569 and 184,497 shares held as of March 31, 2019 and December 31, 2018, respectively) |
(121,422 | ) | (113,795 | ) | |||||||||||||||
Total Stockholders’ Equity | 769,035 | 775,358 | |||||||||||||||||
Total Liabilities and Stockholders’ Equity | $ | 2,624,237 | $ | 2,303,234 | |||||||||||||||
Contacts
Trish Niemann
Corporate Communications Director
602-364-6372
Steven Cochran
Chief Financial Officer
602-364-6210
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Innocan
Innocan Pharma Submits Investigational New Animal Drug Application to FDA’s Veterinary Center
![innocan-pharma-submits-investigational-new-animal-drug-application-to-fda’s-veterinary-center](https://grassnews.net/wp-content/uploads/2024/07/61449-innocan-pharma-submits-investigational-new-animal-drug-application-to-fdas-veterinary-center.jpg)
HERZLIYA, Israel and CALGARY, AB, July 26, 2024 /PRNewswire/ — Innocan Pharma Corporation (CSE: INNO) (FSE: IP4) (OTCQB: INNPF) (“Innocan” or the “Company”), a pioneer in the pharmaceutical and biotechnology industries, is pleased to announce that the FDA’s Center for Veterinary Medicine (CVM) has granted the Company a sponsor fee waiver and assigned an Investigational New Animal Drug (INAD) number for its LPT-CBD (Liposome Platform Technology-Cannabidiol) product. This represents a significant step for the Company, as an INAD designation facilitates correspondence and data exchange with CVM to support LPT-CBD development as a new veterinary drug.
The Company further announced that following the assessment of LPT-CBD’s scientific package, the CVM recognized Innocan’s contribution to pursuing innovative animal drug products and technology and granted the company a sponsor fee waiver for fiscal year 2024.
Innocan’s LPT-CBD is a proprietary drug delivery platform designed to provide prolonged-release CBD for chronic pain and well-being management in animals. Over the past year, repeated administration of LPT-CBD in dogs and other animals has demonstrated both efficacy and tolerability, providing sufficient evidence for the INAD application.
“We are thrilled by CVM’s response,” said Prof. Chezy Barenholz, CSO of Innocan Pharma. “The granted INAD will allow us to advance the investigational studies of LPT-CBD and share knowledge to support future discussions with CVM on LPT-CBD’s development plan. Moreover, the fee waiver, granted by CVM, supports our development and pursuit of innovative animal drug products and technology, further validating our approach and potential impact in veterinary medicine.”
Dr. Eyal Kalo, R&D Director at Innocan, added, “LPT-CBD is a unique technology that has proven itself worthy of the INAD fee waiver granted by CVM. This will streamline our efforts to deliver a unique solution for chronic pain management to the animal market.”
About Innocan Pharma:
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 comprises with 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 two indications: Epilepsy and 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 developing on advanced targeted online sales. https://innocanpharma.com/
Contact Information:
For Innocan Pharma Corporation:
Iris Bincovich, CEO
+1 5162104025
+972-54-3012842
+442037699377
info@innocanpharma.com
NEITHER THE CANADIAN SECURITIES EXCHANGE NOR ITS REGULATION SERVICES PROVIDER HAVE REVIEWED OR ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
Caution Regarding Forward-Looking Information
Certain information set forth in this news release, including, without limitation, the Company’s plans for human trials of its LPT-CBD platform, 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 production and distribution arrangements.
Forward-looking information is subject to various risks and uncertainties that 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: global and local (national) economic, political, market and business conditions; governmental and regulatory requirements and actions by governmental authorities; and potential disruption of 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). 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. A comprehensive discussion of other risks that impact Innocan can be found in Innocan’s public reports and filings which are available under Innocan’s profile at www.sedarplus.ca.
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.
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View original content:https://www.prnewswire.co.uk/news-releases/innocan-pharma-submits-investigational-new-animal-drug-application-to-fdas-veterinary-center-302207435.html
Cannabis
Verano Announces the Opening of Zen Leaf Fairless Hills, the Company’s Newest Affiliated Dispensary in Pennsylvania, in Prime New Location
![](https://grassnews.net/wp-content/uploads/2024/07/verano-announces-the-opening-of-zen-leaf-fairless-hills-the-companys-newest-affiliated-dispensary-in-pennsylvania-in-prime-new-location.gif)
- Zen Leaf Fairless Hills, the Company’s newest affiliated dispensary in Pennsylvania, relocated from its former home in Chester to 203 Lincoln Highway, a busy thoroughfare with daily traffic of over 17,000 vehicles per day1
- As the first medical cannabis dispensary in the city, Zen Leaf Fairless Hills will offer an elevated experience for area patients, including increased convenience and accessibility with numerous point-of-sale stations and kiosks for seamless in-store browsing and ordering
- Verano’s active operations span 13 states, comprised of 142 dispensaries and 13 cultivation and processing facilities with more than 1 million square feet of cultivation capacity
CHICAGO, July 26, 2024 (GLOBE NEWSWIRE) — Verano Holdings Corp. (Cboe CA: VRNO) (OTCQX: VRNOF) (“Verano” or the “Company”), a leading multi-state cannabis company, today announced the opening of Zen Leaf Fairless Hills in Pennsylvania on Friday, July 26th, following a ceremonial ribbon cutting at 11 a.m. local time. Zen Leaf Fairless Hills is located at 203 Lincoln Highway and will be open Monday through Saturday from 9 a.m. to 8 p.m. and Sunday from 10 a.m. to 6 p.m. local time.
The dispensary is located in Bucks County, the fourth largest county in the Commonwealth with a total population of over 630,0002 residents. To increase accessibility and convenience, Zen Leaf Fairless Hills features large in-store kiosks and numerous point-of-sale stations to enhance the browsing and ordering experience for patients. To celebrate the grand opening of Zen Leaf Fairless Hills and following a ceremonial ribbon cutting, patients will be greeted with complimentary deals and doorbusters on featured branded products.
“We are excited to bring the Zen Leaf experience to local patients in Fairless Hills, where our talented team members will continue to deliver hospitality-driven care and top-quality products for local patients,” said George Archos, Verano Founder and Chief Executive Officer. “As the Pennsylvania medical cannabis patient population continues to grow, we are grateful for the opportunity to deepen our roots in Bucks County at our newest Zen Leaf location in the Commonwealth, and look forward to providing a warm and welcoming environment for current and future patients.”
Zen Leaf Fairless Hills adds another convenient outlet for Philadelphia area patients, and solidifies Verano’s footprint in the state as one of the Company’s 18 affiliated Pennsylvania dispensaries. Verano’s Pennsylvania operations also include a state-of-the-art 62,000 square foot cultivation and processing facility in Chester, where the Company produces its signature Verano Reserve flower and Troches, concentrates and vapes; (the) Essence and Savvy flower and extracts; and Avexia RSO cannabis oil and topicals. For additional convenience and accessibility, patients can choose to order ahead at ZenLeafDispensaries.com for express in-store pickup.
About Verano
Verano Holdings Corp. (Cboe CA: VRNO) (OTCQX: VRNOF), one of the U.S. cannabis industry’s leading companies based on historical revenue, geographic scope and brand performance, is a vertically integrated, multi-state operator embracing a mission of saying Yes to plant progress and the bold exploration of cannabis. Verano provides a superior cannabis shopping experience in medical and adult use markets under the Zen Leaf™ and MÜV™ dispensary banners, including Cabbage Club™, an innovative annual membership program offering exclusive benefits for cannabis consumers. Verano produces a comprehensive suite of high-quality, regulated cannabis products sold under its diverse portfolio of trusted consumer brands including Verano™, (the) Essence™, MÜV™, Savvy™, BITS™, Encore™, and Avexia™. Verano’s active operations span 13 U.S. states, comprised of 13 production facilities with over 1,000,000 square feet of cultivation capacity. Learn more at Verano.com.
Contacts:
Media
Verano
Steve Mazeika
VP, Communications
Steve.Mazeika@verano.com
Investors
Verano
Julianna Paterra, CFA
VP, Investor Relations
Julianna.Paterra@verano.com
Forward Looking Statements
This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Such forward-looking statements are not representative of historical facts or information or current condition, but instead represent only the Company’s beliefs regarding future events, plans, strategies, or objectives, many of which, by their nature, are inherently uncertain and outside of the Company’s control. Generally, such forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “future”, “scheduled”, “estimates”, “forecasts”, “projects,” “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases, or may contain statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “will continue”, “will occur” or “will be achieved”. Forward-looking statements involve and are subject to assumptions and known and unknown risks, uncertainties, and other factors which may cause actual events, results, performance, or achievements of the Company to be materially different from future events, results, performance, and achievements expressed or implied by forward-looking statements herein, including, without limitation, the risk factors described in the Company’s annual report on Form 10-K for the year ended December 31, 2023, its quarterly report on Form 10-Q for the quarter ended March 31, 2024 and any subsequent quarterly reports on Form 10-Q, in each case, filed with the U.S. Securities and Exchange Commission at www.sec.gov. The Company makes no assurances and cannot predict the outcome of all or any part of the on-going litigation with Goodness Growth referenced in this press release, including whether the Company will prevail on its Notice of Application and its counterclaim, or whether Goodness Growth will prevail on its claim for damages against the Company. The forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake to update any forward-looking information or forward-looking statements that are contained or referenced herein, except as may be required in accordance with applicable securities laws. All subsequent written and oral forward-looking information and statements attributable to the Company or persons acting on its behalf is expressly qualified in its entirety by this notice regarding forward-looking information and statements.
###
1 Pennsylvania Department of Transportation
2 United States Census Bureau
Cannabis
Unlocking New Horizons in Health: TNR, The Niche Research Reveals the Transformative Power of Minor Cannabinoids
![](https://grassnews.net/wp-content/uploads/2024/07/unlocking-new-horizons-in-health-tnr-the-niche-research-reveals-the-transformative-power-of-minor-cannabinoids.gif)
Wilmington, Delaware, July 25, 2024 (GLOBE NEWSWIRE) — Minor cannabinoids refer to the lesser-known compounds found in the cannabis plant, distinct from the well-known THC (tetrahydrocannabinol) and CBD (cannabidiol). While THC and CBD dominate the market, minor cannabinoids such as CBG (cannabigerol), CBC (cannabichromene), and CBN (cannabinol) are gaining attention for their potential therapeutic benefits. These compounds are extracted from both marijuana and hemp plants, with varying legal restrictions depending on their THC content. The minor cannabinoids market is poised for significant growth, driven by increasing consumer awareness and demand for alternative health and wellness products. As regulatory environments around cannabis products evolve, companies are exploring the potential of minor cannabinoids in various applications, including pharmaceuticals, nutraceuticals, cosmetics, and food and beverages.
Minor cannabinoids are being researched for their potential therapeutic effects, including anti-inflammatory, analgesic, and neuroprotective properties. This versatility facilitates product diversification in various industries. Companies are investing in research and development to create novel formulations and delivery methods for minor cannabinoids. This includes nano-emulsions, encapsulation technologies, and controlled-release systems to enhance bioavailability and efficacy. For example, in January 2022, CBDA + CBGA Tincture a new product was launched by Hometown Hero CBD. This 30ml tincture contains 600mg each of CBGA, CBDA, CBG, and CBD. Derived from hemp, the cannabinoids in this tincture comply with legal requirements across all 50 states in the USA. There is an increasing consumer preference for natural as well as plant-based remedies, which in turn is driving the demand for cannabinoid-infused products. This trend is particularly strong among younger demographics seeking alternatives to traditional pharmaceuticals. Evolving regulatory frameworks, particularly in regions like North America and Europe, are creating opportunities for legal market expansion. Regulatory clarity is crucial for market participants to navigate compliance and market entry.
Global Minor Cannabinoids Market: Key Datapoints
Market Value in 2023 |
US$ 17.8 Bn |
Market Value Forecast by 2034 |
US$ 42.3 Bn |
Growth Rate
|
8.2% |
Historical Data
|
2016 – 2022 |
Base Year
|
2023 |
Forecast Data
|
2024 – 2034 |
Increasing consumer interest in health and wellness products, coupled with the perceived therapeutic benefits of cannabinoids, is a major driver of market growth. Progressive cannabis legalization in various parts of the world, including the United States and parts of Europe, is expanding the addressable market for minor cannabinoids. Significant investments in research and development by pharmaceutical and biotechnology companies are accelerating product innovation and clinical trials. The market remains fragmented with opportunities for new entrants and niche players to introduce specialized products catering to specific consumer needs.
The COVID-19 pandemic initially disrupted supply chains and retail channels for minor cannabinoids products. However, the crisis also underscored the importance of health and wellness, leading to increased interest in natural remedies, including cannabinoids. As economies recover, the market is expected to rebound stronger.
The geopolitical tensions, such as the Russia-Ukraine conflict, have also affected global markets, including the minor cannabinoids sector. Fluctuating currency values, supply chain disruptions, and geopolitical uncertainty have impacted production and distribution channels. However, the long-term impact will depend on geopolitical developments and their influence on global trade and regulatory environments.
The minor cannabinoids market presents significant opportunities for growth and innovation, driven by evolving consumer preferences, regulatory advancements, and expanding research initiatives. Companies that can navigate regulatory complexities, invest in research and development, and respond to shifting consumer trends are well-positioned to capitalize on this emerging market. As the market matures, collaboration across sectors and regions will be crucial in unlocking the full potential of minor cannabinoids in various industries worldwide.
Global Minor Cannabinoids Market: Key Takeaways of the Report
- Cannabigerol (CBG) segment by product type is expected to grow at a CAGR of 6.7% in the minor cannabinoids market due to increasing research highlighting its potential therapeutic benefits, including anti-inflammatory, antimicrobial, and neuroprotective properties. As consumer awareness grows and regulatory environments become more favorable, there is heightened interest in CBG-based products for their diverse health applications, ranging from skincare to pharmaceutical formulations, driving sustained market demand and expansion.
- Pharmaceutical segment by application, leads the minor cannabinoids market with a significant revenue share of 35.8% owing to growing recognition of cannabinoids’ potential in therapeutic applications. Cannabinoids like CBD, CBG, and others show promise in treating conditions such as epilepsy, chronic pain, and anxiety disorders, backed by increasing clinical research and favorable regulatory developments. Pharmaceutical companies are investing heavily in cannabinoid-based drug development, driving market growth as they seek to capitalize on these compounds’ efficacy and market potential in addressing unmet medical needs.
- In 2023, Latin America is anticipated as fastest growing region in the global minor cannabinoids market due to evolving regulatory landscapes favoring cannabis legalization and cultivation. This shift is fostering a burgeoning industry infrastructure for cannabis extraction and product development. Additionally, increasing consumer acceptance of cannabinoid-based products for medicinal and wellness purposes is driving market expansion. With a vast potential consumer base and supportive regulatory frameworks, Latin America presents significant growth opportunities for companies seeking to enter or expand within the minor cannabinoids market.
Key Development:
- In December 2023, Rare Cannabinoid Company introduced Uplift Gummies infused with THC and THCV. These gummies combine the relaxing properties of Delta-9-THC with the energizing and appetite-controlling effects of CBD and THCV.
- In October 2022, High Tide Inc., a cannabis retailer, announced that its Colorado-based subsidiary, NuLeaf Naturals, had launched plant-based softgels and full-spectrum multicannabinoid oil in Manitoba. The products feature CBC, CBD, CBG, Delta-9 tetrahydrocannabinol (Delta 9), and CBN.
Browse Related Category Reports
Global Minor Cannabinoids Market:
- Aurora Europe GmbH
- BulKanna
- CBD. INC.
- Fresh Bros Hemp Company
- GCM Holdings, LLC (Global Cannabinoids)
- GenCanna.
- High Purity Natural Products.
- Laurelcrest
- Mile High Labs
- PBG Global
- Rhizo Sciences
- ZERO POINT EXTRACTION, LLC
- Other Industry Participants
Global Minor Cannabinoids Market
By Product Type
- Cannabigerol (CBG)
- Cannabichromene (CBC)
- Cannabinol (CBN)
- Cannabidivarin (CBDV)
- Tetrahydrocannabutol (THCB)
- Tetrahydrocannabivarin (THCV)
- Tetrahydrocannabiphorol (THCP)
- Others
By Application
- Pharmaceutical
- Pain Management
- Mental Health
- Sleep Disorders
- Anti-inflammatory
- Others
- Nutraceuticals
- Cosmetics and Personal Care
- Food and Beverages
- Others
By Region
- North America (U.S., Canada, Mexico, Rest of North America)
- Europe (France, The UK, Spain, Germany, Italy, Nordic Countries (Denmark, Finland, Iceland, Sweden, Norway), Benelux Union (Belgium, The Netherlands, Luxembourg), Rest of Europe)
- Asia Pacific (China, Japan, India, New Zealand, Australia, South Korea, Southeast Asia (Indonesia, Thailand, Malaysia, Singapore, Rest of Southeast Asia), Rest of Asia Pacific)
- Middle East & Africa (Saudi Arabia, UAE, Egypt, Kuwait, South Africa, Rest of Middle East & Africa)
- Latin America (Brazil, Argentina, Rest of Latin America)
Consult with Our Expert:
Jay Reynolds
The Niche Research
Japan (Toll-Free): +81 663-386-8111
South Korea (Toll-Free): +82-808- 703-126
Saudi Arabia (Toll-Free): +966 800-850-1643
United Kingdom: +44 753-710-5080
United States: +1 302-232-5106
Email: askanexpert@thenicheresearch.com
Website: www.thenicheresearch.com
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