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Salem Media Group, Inc. Announces First Quarter 2019 Total Revenue of $60.5 Million
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CAMARILLO, Calif.–(BUSINESS WIRE)–Salem Media Group, Inc. (Nasdaq: SALM) released its results for the
three months ended March 31, 2019.
First Quarter 2019 Results
For the quarter ended March 31, 2019 compared to the quarter ended March
31, 2018:
Consolidated
- Total revenue decreased 5.2% to $60.5 million from $63.8 million;
-
Total operating expenses increased 5.7% to $61.5 million from $58.1
million; -
Operating expenses, excluding gains or losses on the disposition of
assets, stock-based compensation expense, depreciation expense and
amortization expense (1) decreased 1.0% to $53.0 million from $53.6
million; -
Operating income decreased to a $1.0 million operating loss from $5.7
million operating income; -
Net income decreased 61.1% to $0.3 million, or $0.01 net income per
diluted share from $0.8 million, or $0.03 net income per diluted share; - EBITDA (1) decreased 64.1% to $3.7 million from $10.2 million;
-
Adjusted EBITDA (1) decreased 25.4% to $7.6 million from $10.2
million; and -
Net cash provided by operating activities decreased 30.3% to $9.0
million from $12.9 million.
Broadcast
-
Net broadcast revenue decreased 4.1% to $46.1 million from $48.1
million; -
Station Operating Income (“SOI”) (1) decreased 21.6% to $9.6 million
from $12.3 million; -
Same Station (1) net broadcast revenue decreased 2.9% to $45.5 million
from $46.8 million; and -
Same Station SOI (1) decreased 22.7% to $9.9 million from $12.8
million.
Digital Media
-
Digital media revenue decreased 1.5% to $10.2 million from $10.4
million; and -
Digital Media Operating Income (1) increased 8.0% to $2.2 million from
$2.0 million.
Publishing
-
Publishing revenue decreased 22.7% to $4.1 million from $5.4 million;
and -
Publishing Operating Loss (1) increased to $0.7 million from $0.2
million.
Included in the results for the quarter ended March 31, 2019 are:
-
A $4.0 million ($2.4 million, net of tax, or $0.09 per share) net loss
on the disposition of assets including a $3.8 million estimated
pre-tax loss for the sale of WSPZ-AM in Washington, D.C., a $0.2
million pre-tax loss on the sale of Mike Turner’s line of investment
products and a $0.2 million pre-tax loss on the sale of
HumanEvents.com offset by a $0.1 million pre-tax gain on the sale of
Newport Natural Health; -
A $0.4 million gain ($0.3 million, net of tax, or $0.01 per diluted
share) on early redemption of long-term debt due to the repurchase of
the company’s 6.75% senior secured notes due 2024; -
A $0.2 million one-time expense associated with the adoption of ASC
842 ($0.1 million, net of tax) and -
A $176,000 non-cash compensation charge ($106,000, net of tax) related
to the expensing of stock options and restricted stock consisting of:-
$107,000 non-cash compensation charge included in corporate
expenses; -
$39,000 non-cash compensation charge included in broadcast
operating expenses; -
$26,000 non-cash compensation charge included in digital media
operating expenses; and -
the remaining $4,000 non-cash compensation charge included in
publishing operating expenses.
-
$107,000 non-cash compensation charge included in corporate
Included in the results for the quarter ended March 31, 2018 are:
-
A $46,000 non-cash compensation charge ($28,000, net of tax) related
to the expensing of stock options and restricted stock consisting of:-
$24,000 non-cash compensation charge included in corporate
expenses; -
$13,000 non-cash compensation charge included in broadcast
operating expenses; -
$5,000 non-cash compensation charge included in digital media
operating expenses; and -
the remaining $4,000 non-cash compensation charge included in
publishing operating expenses.
-
$24,000 non-cash compensation charge included in corporate
Per share numbers are calculated based on 26,193,307 diluted weighted
average shares for the quarter ended March 31, 2019, and 26,304,891
diluted weighted average shares for the quarter ended March 31, 2018.
Balance Sheet
As of March 31, 2019, the company had $231.9 million outstanding on the
6.75% senior secured notes due 2024 and $16.0 million outstanding under
the Asset Based Revolving Credit Facility (“ABL Facility”) as of March
31, 2019.
Acquisitions and Divestitures
The following transactions were completed since January 1, 2019:
-
On March 21, 2019, the company sold Newport Natural Health, an
e-commerce website operated by Eagle Wellness for $0.9 million in
cash. The company recognized a pre-tax gain of $0.1 million associated
with the sale reflecting the sales price as compared to the carrying
value of the assets and the closing costs. -
On March 18, 2019, the company acquired the pjmedia.com website for
$0.1 million in cash. -
On February 28, 2019, the company sold Mike Turner’s line of
investment products, including TurnerTrends.com and other domain names
and related assets. The company received no cash from the buyer who
assumed all deferred subscription liabilities for Mike Turner’s
investment products. The company recognized a pre-tax loss of
approximately $0.2 million associated with the sale reflecting the
sales price as compared to the carrying value of the assets and the
closing costs. -
On February 27, 2019, the company sold HumanEvents.com, a conservative
opinion website, for $0.3 million in cash. The company recognized a
pre-tax loss of approximately $0.2 million associated with the sale
reflecting the sales price as compared to the carrying value of the
assets and the closing costs.
Pending transactions:
-
On April 29, 2019 the company entered into an agreement to exchange FM
Translator W276CR, in Bradenton, Florida with FM Translator W262CP in
Bayonet Point, Florida. No cash will be exchanged for the assets. -
On March 19, 2019, the company entered into an agreement to sell radio
station WSPZ-AM (previously WWRC-AM) in Washington D.C. for $0.8
million. The company recorded an estimated pre-tax loss of assets of
$3.8 million as of March 31, 2019, which reflected the sales price as
compared to the carrying value of the assets and the estimated costs
of the sale. The sale is expected to close in the second quarter of
2019. On April 3, 2019, the company entered into a Time Brokerage
Agreement (“TBA”) effective April 12, 2019, under which radio station
WSPZ-AM, is operated by the buyer pending the sale of the station. -
In December 2018, Word Broadcasting notified the company of their
intent to purchase its Louisville radio stations. They began operating
the stations under a Time Brokerage Agreement beginning on January 3,
2017 that will continue until the purchase agreement is executed and
the transaction closes. -
On April 26, 2018, the company entered an agreement to exchange radio
station KKOL-AM, in Seattle, Washington for KPAM-AM in Portland,
Oregon. The transaction is expected to close in the first half of 2019.
Conference Call Information
Salem will host a teleconference to discuss its results on May 10, 2019
at 12:00 p.m. Pacific Time. To access the teleconference, please dial
(877) 524-8416, and then ask to be joined into the Salem Media Group
First Quarter 2019 call or listen via the investor relations portion of
the company’s website, located at investor.salemmedia.com.
A replay of the teleconference will be available through May 24, 2019
and can be heard by dialing (877) 660-6853, passcode 13688917 or on the
investor relations portion of the company’s website, located at investor.salemmedia.com.
Second Quarter 2019 Outlook
For the second quarter of 2019, the company is projecting total revenue
to be between a decrease of 1% and an increase of 1% from second quarter
2018 total revenue of $66.3 million. Excluding the impact of political
revenue and recent acquisitions and dispositions, the company is
projecting total revenue to increase between 1% and 3%. The company is
also projecting operating expenses before gains or losses on the
disposition of assets, stock-based compensation expense, changes in the
estimated fair value of contingent earn-out consideration, impairments,
depreciation expense and amortization expense to be between flat and an
increase of 3% compared to the second quarter of 2018 non-GAAP operating
expenses of $55.1 million.
A reconciliation of non-GAAP operating expenses, excluding gains or
losses on the disposition of assets, stock-based compensation expense,
changes in the estimated fair value of contingent earn-out
consideration, impairments, depreciation expense and amortization
expense to the most directly comparable GAAP measure is not available
without unreasonable efforts on a forward-looking basis due to the
potential high variability, complexity and low visibility with respect
to the charges excluded from this non-GAAP financial measure, in
particular, the change in the estimated fair value of earn-out
consideration, impairments and gains or losses from the sale or disposal
of fixed assets. The company expects the variability of the above
charges may have a significant, and potentially unpredictable, impact on
its future GAAP financial results.
About Salem Media Group, Inc.
Salem Media Group is America’s leading multimedia company specializing
in Christian and conservative content, with media properties comprising
radio, digital media and book and newsletter publishing. Each day Salem
serves a loyal and dedicated audience of listeners and readers numbering
in the millions nationally. With its unique programming focus, Salem
provides compelling content, fresh commentary and relevant information
from some of the most respected figures across the Christian and
conservative media landscape. Learn more about Salem Media Group, Inc.,
at www.salemmediagroup.com,
Facebook and Twitter (@SalemMediaGrp).
Forward-Looking Statements
Statements used in this press release that relate to future plans,
events, financial results, prospects or performance are forward-looking
statements as defined under the Private Securities Litigation Reform Act
of 1995. Actual results may differ materially from those anticipated as
a result of certain risks and uncertainties, including but not limited
to the ability of Salem to close and integrate announced transactions,
market acceptance of Salem’s radio station formats, competition from new
technologies, adverse economic conditions, and other risks and
uncertainties detailed from time to time in Salem’s reports on Forms
10-K, 10-Q, 8-K and other filings filed with or furnished to the
Securities and Exchange Commission. Readers are cautioned not to place
undue reliance on these forward-looking statements, which speak only as
of the date hereof. Salem undertakes no obligation to update or revise
any forward-looking statements to reflect new information, changed
circumstances or unanticipated events.
(1) Regulation G
Management uses certain non-GAAP financial measures defined below in
communications with investors, analysts, rating agencies, banks and
others to assist such parties in understanding the impact of various
items on its financial statements. The company uses these
non-GAAP financial measures to evaluate financial results, develop
budgets, manage expenditures and as a measure of performance under
compensation programs.
The company’s presentation of these non-GAAP financial measures
should not be considered as a substitute for or superior to the most
directly comparable financial measures as reported in accordance with
GAAP.
Regulation G defines and prescribes the conditions under which
certain non-GAAP financial information may be presented in this earnings
release. The company closely monitors EBITDA, Adjusted EBITDA,
Station Operating Income (“SOI”), Same Station net broadcast revenue,
Same Station broadcast operating expenses, Same Station Operating
Income, Digital Media Operating Income, Publishing Operating Income
(Loss), and operating expenses excluding gains or losses on the
disposition of assets, stock-based compensation, changes in the
estimated fair value of contingent earn-out consideration, impairments,
depreciation and amortization, all of which are non-GAAP financial
measures. The company believes that these non-GAAP financial
measures provide useful information about its core operating results,
and thus, are appropriate to enhance the overall understanding of its
financial performance. These non-GAAP financial measures are
intended to provide management and investors a more complete
understanding of its underlying operational results, trends and
performance.
The company defines Station Operating Income (“SOI”) as net broadcast
revenue minus broadcast operating expenses. The company defines Digital
Media Operating Income as net Digital Media Revenue minus Digital Media
Operating Expenses. The company defines Publishing Operating
Income (Loss) as net Publishing Revenue minus Publishing Operating
Expenses. The company defines EBITDA as net income before
interest, taxes, depreciation, and amortization. The company
defines Adjusted EBITDA as EBITDA before gains or losses on the
disposition of assets, before changes in the estimated fair value of
contingent earn-out consideration, before changes in the fair value of
interest rate swap, before impairments, before net miscellaneous income
and expenses, before gain on bargain purchase, before (gain) loss on
early retirement of long-term debt and before non-cash compensation
expense. SOI, Digital Media Operating Income, Publishing
Operating Loss, EBITDA and Adjusted EBITDA are commonly used by the
broadcast and media industry as important measures of performance and
are used by investors and analysts who report on the industry to provide
meaningful comparisons between broadcasters. SOI, Digital Media
Operating Income, Publishing Operating Loss, EBITDA and Adjusted EBITDA
are not measures of liquidity or of performance in accordance with GAAP
and should be viewed as a supplement to and not a substitute for or
superior to its results of operations and financial condition presented
in accordance with GAAP. The company’s definitions of SOI,
Digital Media Operating Income, Publishing Operating Loss, EBITDA and
Adjusted EBITDA are not necessarily comparable to similarly titled
measures reported by other companies.
The company defines Adjusted Free Cash Flow as Adjusted EBITDA less
cash paid for capital expenditures, less cash paid for income taxes, and
less cash paid for interest. The company considers Adjusted Free
Cash Flow to be a liquidity measure that provides useful information to
management and investors about the amount of cash generated by its
operations after cash paid for capital expenditures, cash paid for
income taxes and cash paid for interest. A limitation of Adjusted
Free Cash Flow as a measure of liquidity is that it does not represent
the total increase or decrease in its cash balance for the period. The
company uses Adjusted Free Cash Flow, a non-GAAP liquidity measure, both
in presenting its results to stockholders and the investment community,
and in its internal evaluation and management of the business. The
company’s presentation of Adjusted Free Cash Flow is not intended to be
considered in isolation or as a substitute for the financial information
prepared and presented in accordance with GAAP. The company’s
definition of Adjusted Free Cash Flow is not necessarily comparable to
similarly titled measures reported by other companies.
The company defines Same Station net broadcast revenue as broadcast
revenue from its radio stations and networks that the company owns or
operates in the same format on the first and last day of each quarter,
as well as the corresponding quarter of the prior year. The
company defines Same Station broadcast operating expenses as broadcast
operating expenses from its radio stations and networks that the company
owns or operates in the same format on the first and last day of each
quarter, as well as the corresponding quarter of the prior year. The
company defines Same Station SOI as Same Station net broadcast revenue
less Same Station broadcast operating expenses. Same Station
operating results include those stations that the company owns or
operates in the same format on the first and last day of each quarter,
as well as the corresponding quarter of the prior year. Same
Station operating results for a full calendar year are calculated as the
sum of the Same Station-results for each of the four quarters of that
year. The company uses Same Station operating results, a non-GAAP
financial measure, both in presenting its results to stockholders and
the investment community, and in its internal evaluations and management
of the business. The company believes that Same Station operating
results provide a meaningful comparison of period over period
performance of its core broadcast operations as this measure excludes
the impact of new stations, the impact of stations the company no longer
owns or operates, and the impact of stations operating under a new
programming format. The company’s presentation of Same Station
operating results are not intended to be considered in isolation or as a
substitute for the financial information prepared and presented in
accordance with GAAP. The company’s definition of Same Station
operating results is not necessarily comparable to similarly titled
measures reported by other companies.
For all non-GAAP financial measures, investors should consider the
limitations associated with these metrics, including the potential lack
of comparability of these measures from one company to another.
The Supplemental Information tables that follow the condensed
consolidated financial statements provide reconciliations of the
non-GAAP financial measures that the company uses in this earnings
release to the most directly comparable measures calculated in
accordance with GAAP. The company uses non-GAAP financial
measures to evaluate financial performance, develop budgets, manage
expenditures, and determine employee compensation. The company’s
presentation of this additional information is not to be considered as a
substitute for or superior to the directly comparable measures as
reported in accordance with GAAP.
Salem Media Group, Inc. | |||||||||
Condensed Consolidated Statements of Operations | |||||||||
(in thousands, except share and per share data) | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2018 | 2019 | ||||||||
(Unaudited) | |||||||||
Net broadcast revenue | $ | 48,050 | $ | 46,093 | |||||
Net digital media revenue | 10,394 | 10,240 | |||||||
Net publishing revenue | 5,351 | 4,136 | |||||||
Total revenue | 63,795 | 60,469 | |||||||
Operating expenses: | |||||||||
Broadcast operating expenses | 35,750 | 36,449 | |||||||
Digital media operating expenses | 8,374 | 8,058 | |||||||
Publishing operating expenses | 5,587 | 4,822 | |||||||
Unallocated corporate expenses | 3,921 | 3,871 | |||||||
Depreciation and amortization | 4,487 | 4,229 | |||||||
Net (gain) loss on the disposition of assets | 5 | 4,024 | |||||||
Total operating expenses | 58,124 | 61,453 | |||||||
Operating income (loss) | 5,671 | (984) | |||||||
Other income (expense): | |||||||||
Interest income | 2 | 1 | |||||||
Interest expense | (4,518) | (4,425) | |||||||
Gain on early retirement of long-term debt | — | 426 | |||||||
Net miscellaneous income and expenses | 75 | 1 | |||||||
Net income (loss) before income taxes | 1,230 | (4,981) | |||||||
Provision for (benefit from) income taxes | 402 | (5,303) | |||||||
Net income | $ | 828 | $ | 322 | |||||
Basic earnings per share Class A and Class B common stock | $ | 0.03 | $ | 0.01 | |||||
Diluted earnings per share Class A and Class B common stock | $ | 0.03 | $ | 0.01 | |||||
Basic weighted average Class A and Class B common stock shares outstanding |
26,171,539 | 26,186,112 | |||||||
Diluted weighted average Class A and Class B common stock shares outstanding |
26,304,891 | 26,193,307 | |||||||
Salem Media Group, Inc. | ||||||||
Condensed Consolidated Balance Sheets | ||||||||
(in thousands) | ||||||||
December 31, 2018 | March 31, 2019 | |||||||
(Unaudited) | ||||||||
Assets | ||||||||
Cash | $ | 117 | $ | 4 | ||||
Trade accounts receivable, net | 33,020 | 30,405 | ||||||
Other current assets | 10,500 | 9,423 | ||||||
Property and equipment, net | 96,344 | 95,546 | ||||||
Operating and financing lease right-of-use assets | 164 | 63,339 | ||||||
Intangible assets, net | 414,646 | 408,386 | ||||||
Deferred financing costs | 381 | 338 | ||||||
Other assets | 3,856 | 4,826 | ||||||
Total assets | $ | 559,028 | $ | 612,267 | ||||
Liabilities and Stockholders’ Equity | ||||||||
Current liabilities | $ | 52,878 | $ | 66,440 | ||||
Long-term debt | 234,030 | 227,683 | ||||||
Operating and financing lease liabilities, less current portion | 105 | 62,003 | ||||||
Deferred income taxes | 35,272 | 29,968 | ||||||
Other liabilities | 14,874 | 5,508 | ||||||
Stockholders’ Equity | 221,869 | 220,665 | ||||||
Total liabilities and stockholders’ equity | $ | 559,028 | $ | 612,267 | ||||
SALEM MEDIA GROUP, INC. |
|||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY |
|||||||||||||||||||||||||||||||||||
(Dollars in thousands, except share and per share data) |
|||||||||||||||||||||||||||||||||||
Class A | Class B | ||||||||||||||||||||||||||||||||||
Common Stock | Common Stock | Additional | |||||||||||||||||||||||||||||||||
Paid-In | Retained | Treasury | |||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Capital | Earnings | Stock | Total | ||||||||||||||||||||||||||||
Stockholders’ |
22,950,066 | $ | 227 | 5,553,696 | $ | 56 | $ | 245,220 | $ | 10,372 | $ (34,006 | ) | $ | 221,869 | |||||||||||||||||||||
Stock-based |
— | — | — | — | 176 | — | — | 176 | |||||||||||||||||||||||||||
Cash distributions | — | — | — | — | — | (1,702 | ) | — | (1,702 | ) | |||||||||||||||||||||||||
Net income | — | — | — | — | — | 322 | — | 322 | |||||||||||||||||||||||||||
Stockholders’ |
22,950,066 | $ | 227 | 5,553,696 | $ | 56 | $ | 245,396 | $ | 8,992 | $ (34,006 | ) | $ | 220,665 | |||||||||||||||||||||
Distributions per |
$ | 0.065 | $ | 0.065 | |||||||||||||||||||||||||||||||
Class A | Class B | ||||||||||||||||||||||||||||||||||
Common Stock | Common Stock | Additional | |||||||||||||||||||||||||||||||||
Paid-In | Retained | Treasury | |||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Capital | Earnings | Stock | Total | ||||||||||||||||||||||||||||
Stockholders’ |
22,932,451 | $ | 227 | 5,553,696 | $ | 56 | $ | 244,634 | $ | 20,370 | $ (34,006 | ) | $ | 231,281 | |||||||||||||||||||||
Stock-based |
— | — | — | — | 46 | — | — | 46 | |||||||||||||||||||||||||||
Options exercised | 8,125 | — | — | — | 19 | — | — | 19 | |||||||||||||||||||||||||||
Cash distributions | — | — | — | — | — | (1,701 | ) | — | (1,701 | ) | |||||||||||||||||||||||||
Net income | — | — | — | — | — | 828 | — | 828 | |||||||||||||||||||||||||||
Stockholders’ |
22,940,576 | $ | 227 | 5,553,696 | $ | 56 | $ | 244,699 | $ | 19,497 | $ (34,006 | ) | $ | 230,473 | |||||||||||||||||||||
Distributions per |
$ | 0.065 | $ | 0.065 |
SALEM MEDIA GROUP, INC. |
||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||||
(Dollars in thousands) | ||||||||||
(Unaudited) | ||||||||||
Three Months Ended | ||||||||||
March 31, |
||||||||||
2018 | 2019 | |||||||||
OPERATING ACTIVITIES | ||||||||||
Net income | $ | 828 | $ | 322 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||||
Non-cash stock-based compensation | 46 | 176 | ||||||||
Depreciation and amortization | 4,487 | 4,229 | ||||||||
Amortization of deferred financing costs | 270 | 258 | ||||||||
Non-cash lease expense | — | 2,267 | ||||||||
Accretion of acquisition-related deferred payments and contingent consideration |
16 | 1 | ||||||||
Provision for bad debts | 146 | 320 | ||||||||
Deferred income taxes | 382 | (5,304 | ) | |||||||
Gain on early retirement of long-term debt | — | (426 | ) | |||||||
Net (gain) loss on the disposition of assets | 5 | 4,024 | ||||||||
Changes in operating assets and liabilities: | ||||||||||
Accounts receivable and unbilled revenue | 1,176 | 1,758 | ||||||||
Inventories | (78 | ) | (256 | ) | ||||||
Prepaid expenses and other current assets | (69 | ) | 1,387 | |||||||
Accounts payable and accrued expenses | 6,629 | 3,449 | ||||||||
Deferred rent expense | (119 | ) | — | |||||||
Operating lease liabilities | — | (3,458 | ) | |||||||
Contract liabilities | (938 | ) | 133 | |||||||
Deferred rent income | (23 | ) | (43 | ) | ||||||
Income taxes payable | 115 | 130 | ||||||||
Net cash provided by operating activities | 12,873 | 8,967 | ||||||||
INVESTING ACTIVITIES | ||||||||||
Cash paid for capital expenditures net of tenant improvement allowances |
(2,472 | ) | (2,404 | ) | ||||||
Capital expenditures reimbursable under tenant improvement allowances and trade agreements |
(4 | ) | — | |||||||
Escrow deposits paid related to acquisitions | (240 | ) | — | |||||||
Escrow deposits received related to radio station sale | 500 | — | ||||||||
Purchases of digital media businesses and assets | — | (100 | ) | |||||||
Proceeds from sale of assets | 1 | 1,255 | ||||||||
Other | (170 | ) | (139 | ) | ||||||
Net cash used in investing activities | (2,385 | ) | (1,388 | ) | ||||||
FINANCING ACTIVITIES | ||||||||||
Payments to repurchase 6.75% Senior Secured Notes | — | (6,123 | ) | |||||||
Proceeds from borrowings under ABL Facility | 10,334 | 22,189 | ||||||||
Payments on ABL Facility | (19,334 | ) | (25,849 | ) | ||||||
Refund (payments) of debt issuance costs | 41 | (13 | ) | |||||||
Proceeds from the exercise of stock options | 19 | — | ||||||||
Payments on financing lease liabilities | (31 | ) | (21 | ) | ||||||
Payment of cash distribution on common stock | (1,701 | ) | (1,702 | ) | ||||||
Book overdraft | 187 | 3,827 | ||||||||
Net cash used in financing activities | (10,485 | ) | (7,692 | ) | ||||||
Net increase (decrease) in cash and cash equivalents | 3 | (113 | ) | |||||||
Cash and cash equivalents at beginning of year | 3 | 117 | ||||||||
Cash and cash equivalents at end of period | $ | 6 | $ | 4 | ||||||
Contacts
Evan D. Masyr
Executive Vice President & Chief Financial Officer
(805)
384-4512
evan@SalemMedia.com
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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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