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KEW MEDIA GROUP Reports First Quarter 2019 Financial Results
Reaffirms Full Year 2019 Outlook
TORONTO–(BUSINESS WIRE)–KEW MEDIA GROUP INC. (“KEW MEDIA”, “KEW” or the “Company”) (TSX:KEW and
KEW.WT) today released its financial results for the three month period
ended March 31, 2019 (“Q1 2019”). KEW MEDIA’s audited annual financial
statements along with its Management’s Discussion and Analysis for Q1
2019 are available on the Company’s investor relations website at https://investors.kewmedia.com
and under the Company’s profile at www.sedar.com.
All financial results are reported in Canadian dollars unless otherwise
stated.
Q1 2019 Highlights
- Revenue of $52.0 million (2018: $39.8 million)
- Gross Profit1 of $14.1 million (2018: $12.8 million)
-
General and Administrative expenses2 (“G&A”) of $14.0
million (2018: $10.5 million) - Adjusted EBITDA3 of ($0.1) million (2018: $2.5 million)
- Net Loss of ($7.9) million (2018: ($0.2) million)
-
Adjusted Net Loss4 after tax5 of ($3.2) million
(2018: $2.5 million) -
Reaffirmed full year 2019 outlook of mid to high single digit
percentage organic growth over the annualized Pro forma 2018 Adjusted
EBITDA of $31.9 million6
|
|
Three months ended | |||||||||||||
|
(in millions of Canadian dollars, except  |
March 31, |
March 31, |
% Chg | |||||||||||
| Revenue | ||||||||||||||
| Production | $ | 33.5 | $ | 24.5 | 36.7 | % | ||||||||
| Distribution | $ | 18.5 | $ | 15.3 | 20.9 | % | ||||||||
| Total | $ | 52.0 | $ | 39.8 | 30.7 | % | ||||||||
| Gross Profit | ||||||||||||||
| Production | $ | 9.0 | $ | 6.5 |
38.5 |
% | ||||||||
| Distribution | $ | 5.0 | $ | 6.3 |
(20.1 |
) | % | |||||||
| Total | $ |
14.1 |
$ | 12.8 | 9.4 | % | ||||||||
| Gross Profit Margin – Production | 26.9 | % | 26.5 | % | ||||||||||
| Gross Profit Margin – Distribution | 27.0 | % |
41.2 |
% | ||||||||||
| Gross Profit Margin Total | 26.9 | % | 32.2 | % | ||||||||||
| Adjusted EBITDA | $ | (0.1 | ) | $ | 2.5 | N.M. | ||||||||
| Net Loss | $ | (7.9 | ) | $ | (0.2 | ) | N.M. | |||||||
| Adjusted Net Income (Loss) after tax | $ | (3.2 | ) | $ | 2.5 | N.M. | ||||||||
| Net Loss Per Share | $ | (0.64 | ) | $ | (0.06 | ) | N.M. | |||||||
| Adjusted Earnings (Loss) Per Share | $ | (0.24 | ) | $ | 0.21 | N.M. | ||||||||
Steven Silver, Chief Executive Officer of KEW MEDIA, said, “Our first
quarter results were in line with our expectations as the group saw a
meaningful increase in revenues and gross profits, which were offset by
higher levels of budgeted G&A. The difference in profitability in the
first quarter compared to the prior year period is due to timing
differences related to revenue recognition and product mix. Our sales
momentum is strong and we have made excellent progress with our full
year product pipeline. We remain focused on enhancing our quality of
revenues and driving greater margins and profitability across the group.”
Peter Sussman, Executive Chairman of KEW MEDIA, added, “These are
exciting times for KEW with a mountain of content being produced, both
internally and by third party producers which is being sold around the
world by our distribution teams. The demand for content and the
proliferation of streaming players coming to market continues to be a
significant tailwind for our business.”
Financial Highlights for the Three Months Ended
March 31, 2019
KEW MEDIA’s results in any given quarter or year can be affected by
seasonality and/or specific product mix timing. Typically, production
occurs over the summer and starts delivering in the fall and winter
months. Q1 2019’s revenue of $52.0 million was comprised of $33.5
million from Production and $18.5 million from Distribution. Gross
Profit of $14.1 million included $9.0 million from Production and $5.0
million from Distribution. Gross Profit Margin was 26.9%, with segmented
Gross Profit Margin of 26.9% for Production and 27.0% for Distribution.
Overall margins met management’s expectations for the quarter. Inside
the Production segment, Gross Profit Margins were higher due to improved
margins in the quarter, including the introduction of Essential. Inside
the Distribution segment, margin percentages met management’s
expectations and were lower than in previous periods due to product mix
and revenue recognition timing. Adjusted EBITDA was ($0.1 million), the
Net Loss was ($7.9 million), or ($0.64) per share and Adjusted Net Loss
after tax was ($3.2 million), or ($0.24) per share.
Segment Information
Production
During the first quarter, Revenues were $33.5 million, an increase of
36.7%, Gross Profit was $9.0 million, an increase of 38.5%, and the
Gross Margin percentage was 26.9% (2018: 26.5%). G&A increased by 38.7%
to $7.2 million. All of these increases were predominantly due to the
inclusion of Essential in the quarter. Adjusted EBITDA increased by $0.2
million to $1.0 million. The titles that were produced across the
segment included: Texas Flip and Move 12-13, Death Row Stories
4 for CNN in the US, Dance Moms 8 for A&E in the US, Dirty
Money 2 for Netflix, Stats of Life 2 for CBC, Backyard
Builds 2 for Corus, Fire Masters for Corus, and The Brigade
for Outdoor Network.
Distribution
During the first quarter, Revenues were $18.5 million, an increase of
20.6%, Gross Profit was $5.0 million, a decrease of 20.1%, and the Gross
Margin percentage was 27.0% (2018: 41.3%). G&A increased by 32.4% to
$4.5 million. Adjusted EBITDA decreased by $2.4 million to $0.5 million.
The segment’s revenues benefitted from the delivery in the quarter of
some high revenue/low margin titles. Consequently, whilst revenues
increased, gross profit decreased compared to Q1 last year, which had a
product mix with comparatively higher margin titles. Additionally, we
have budgeted for higher G&A in this segment this year to drive its
growth. The titles that were distributed across the segment included: Slasher
3, Paranormal 911, Republic of Doyle, Leaving
Neverland, Egypt’s Unexplained Files, and Abandoned
Engineering.
Gross Profit and G&A
KEW MEDIA focuses on Gross Profit as a performance indicator given that
the Company has a diverse product range with some low revenue items
attracting 100% Gross Profit Margins and other high revenue items having
Gross Profit Margins as low as 5%. Gross Profit for Q1 2019 was $14.1
million compared to $12.8 million last year, an overall increase of 9.4%.
G&A was in line with our expectations, with an increase of $3.5 million
in the quarter compared to last year. This was predominantly due to the
inclusion of Essential in this year’s Q1 results, together with an
increased investment in our distribution platform and the addition of
centralized infrastructure costs.
Developments in the Quarter
Across the Group there have been a number of positive developments in Q1
that have contributed to our confidence in the full year result. These
include:
-
Leaving Neverland became one of the industry’s most prominent
documentaries attracting front page coverage and some of the highest
ratings seen for a documentary in particular territories. Some of the
revenues for this title were recognized in Q1 and will continue in Q2
and throughout the year -
The highly awaited reboot of Dance Moms, one of the largest
series in the Group, went into full production and will start
delivering in Q2 with a forecast first broadcast date in June. Several
specials in relation to the series have been ordered and ongoing
revenues are anticipated throughout the year -
Jigsaw delivered The Inventor: Out for Blood in Silicon Valley,
the highly anticipated documentary on Elizabeth Holmes and the
Theranos scandal for HBO in the US -
Several major series have been renewed in the Distribution segment,
including Frankie Drake Mysteries 3 and Abandoned Engineering
4 -
In the Production segment, there have been renewals for Best Cake
Wins 2, Paranormal Survivor 5 and Haunted Hospitals
2, and new series were commissioned including Backyard Beats as
well as several new documentaries from Jigsaw
Balance Sheet and Net Debt
As of March 31, 2019, the Company had cash and cash equivalents of $23.6
million, approximately $3.6 million in loan availability and Net Debt7
of $103.9 million.
Adjusted Net Debt8 as of March 31, 2019 was $84.7 million.
This figure takes into account material foreign exchange movements since
the beginning of the year and amounts expended by KEW MEDIA’s treasury
on interim production financing.
The Adjusted Net Debt of $84.7 million to Pro forma 2018 Adjusted EBITDA
of $31.9 million is 2.7:1. The Company continues to anticipate that this
ratio will reduce further into 2019 with an overall target of 2:1 or
below, reflecting the projected growth in our Adjusted EBITDA for the
year, together with the expected benefits from positive cash flow
generation.
Free Cash Flow (FCF)91
FCF before movements in working capital and before movements in film and
television rights was ($3.0 million) compared to $1.1 million last year.
FCF after movements in working capital but before investments in film
and television rights was $6.2 million compared to ($2.0 million) last
year. After movements in both working capital and investments in film
and television rights, FCF was ($2.0 million) compared to ($2.2 million)
last year.
At the segment level, Production FCF before movements in working capital
and investments in film and television rights was $0.6 million. FCF
after movements in working capital but before movements in investments
in film and television rights was $5.4 million. After movements in both
working capital and investments in film and television rights, FCF was
($1.1 million).
Distribution FCF before movements in working capital and movements in
investments in film and television rights was $0.5 million. FCF after
movements in working capital but before movements in investments in film
and television rights was $3.9 million. After movements in both working
capital and investments in film and television rights, FCF was $2.2
million.
7Net Debt is debt less any cash and cash equivalent balances. 8Adjusted
Net Debt is Net Debt less interim production loans provided by KEW MEDIA
treasury less effect of foreign exchange movements. See “Non-IFRS
Measures” and “Forward-Looking Statements” below in this press release.9Free
Cash Flow is Adjusted EBITDA adjusted for additions to Property and
Equipment, Interest and cash taxes. 10The statements set out
in this Outlook section are based on management’s assumptions, current
strategies and assessment of the outlook for the business. Given the
seasonal and other fluctuations in KEW MEDIA’s business, the Company may
not be in a position to provide periodic updates on its progress in
meeting its expectations. These statements constitute forward looking
information for purposes of applicable Canadian securities legislation
and readers are cautioned that KEW MEDIA’s actual result may vary from
these forward looking statements and that variation could be material.
See “Forward Looking Statements” for a description of the assumptions
and risks associated with these forward looking statements.
Outlook9
For the full year 2019, KEW MEDIA continues to expect a range of mid to
high single digit growth on full year 2018 Pro forma Adjusted EBITDA of
$31.9 million. KEW MEDIA’s results in any given quarter or year can be
affected by seasonality and/or specific product delivery timing.
Typically, production occurs over the summer and starts delivering in
the fall and winter months. As reflected in our 2018 performance, our
2019 results are expected to be heavily weighted in the fourth quarter.
Conference Call
KEW MEDIA will host a conference call to discuss the first quarter 2019
financial results on Wednesday, May 15, 2019 at 9:00 a.m. ET. The
conference call can be accessed live over the phone by dialing
877-407-0784 (USA and Canada) or 201-689-8560 (International). A replay
will be available from 12:00 p.m. ET on May 15, 2019 through May 22,
2019, and can be accessed by dialing 844-512-2921 (USA and Canada) or
412-317-6671 (International). The replay passcode will be 13689714.
The call will also be webcast live from KEW MEDIA’s investor relations
website at https://investors.kewmedia.com.
Following completion of the call, a recorded replay of the webcast will
be available on the website.
About KEW MEDIA GROUP INC.
KEW MEDIA GROUP is a leading publicly-listed content company that
produces and distributes multi-genre content worldwide. Companies
included in the KEW family are the production companies: Architect
Films, Awesome Media & Entertainment, Bristow Global Media, Collins
Avenue Productions, Essential Media Group, 4East Media, Frantic Films,
Jigsaw Productions, Media Headquarters, Our House Media, Sienna Films,
Spirit Digital Media, and Two Rivers Media; and the distribution
companies: KEW Media Distribution and TCB Media Rights.
With primary offices in London, Los Angeles, New York, Sydney and
Toronto, the KEW MEDIA GROUP companies develop, produce and distribute
more than 2,000 hours of content every year, as well as manage a library
of more than 14,000 hours of content, for almost every available viewing
platform worldwide. KEW aspires to offer great content from all over the
world to viewers of all ages and tastes. KEW promotes transparency,
equality, respect, and inclusiveness and plans to grow with the benefit
of people from a wide range of perspectives and backgrounds.
Forward-Looking Statements
This news release may include forward-looking statements. All such
statements constitute forward looking information within the meaning of
securities law and are made pursuant to the “safe harbour” provisions of
applicable securities laws. Forward-looking statements may include, but
are not limited to, statements about anticipated future events or
results including comments with respect to the Company’s objectives and
priorities for 2019 and beyond, and strategies or further actions with
respect to the Company, its business operations, financial performance
and condition. Forward-looking statements are statements that are
predictive in nature, depend upon or refer to future events or
conditions and are identified by words such as “will”, “expects”,
“anticipates”, “intends”, “plans”, “believes”, “estimates” or similar
expressions concerning matters that are not historical facts. Such
statements are based on current expectations of the Company’s management
and inherently involve numerous risks and uncertainties, known and
unknown, including economic factors.
In particular, the statements set out in the Outlook section of this
press release regarding our expected Adjusted EBITDA for the year ending
December 31, 2019, our expected financial performance for the remainder
of 2019 and our expectations regarding the performance of our production
and distribution segments for the remainder of 2019, constitute
forward-looking statements. These statements are based on management’s
current strategies, assumptions concerning growth and assessment of the
outlook for the business. In particular, such statements assume that:
(i) our production companies will continue to develop, produce and
deliver successful productions in a manner consistent with past
experience and on expected delivery schedules as outlined under
“Outlook” in the press release; (ii) the product mix of the Company’s
revenues will continue to be skewed towards higher margin titles; (iii)
we will continue to acquire and distribute content in a manner
consistent with past experience; (iv) our operating and overhead costs
will be within budget; and (v) that the companies we have acquired will
meet or exceed our performance expectations. We consider the foregoing
assumptions to be reasonable in the circumstances given the time period
for such outlook. However, readers are cautioned that KEW’s
actual results may vary from these forward-looking statements and that
variation could be material. The forward-looking information contained
in this news release is presented for the purpose of assisting readers
in understanding the Company’s business and strategic priorities and
objectives as at the periods indicated and may not be appropriate for
other purposes. A number of risks, uncertainties and other factors may
cause actual results to differ materially from the forward-looking
statements contained in this news release, including, among other
factors, those referenced in the section entitled “Risk Factors” in the
Company’s annual information form for the year ended December 31, 2018,
a copy of which is available on the SEDAR website at www.sedar.com
under the Company’s profile. In particular, KEW’s results of operations
fluctuate significantly quarter to quarter depending on the number and
timing of content delivered or made available to various media. As in
past years, KEW anticipates that its 2019 financial results will be
heavily weighted in the fourth quarter and as a result, KEW may not have
visibility on its ability to meet the 2019 guidance until the end of the
fourth quarter of 2019.
Forward-looking statements contained in this news release are not
guarantees of future performance and, while forward-looking statements
are based on certain assumptions that the Company considers reasonable,
actual events and results could differ materially from those expressed
or implied by forward-looking statements. Readers are cautioned to
consider these and other factors carefully when making decisions with
respect to the Company and not place undue reliance on forward-looking
statements. Circumstances affecting the Company may change rapidly.
Except as may be expressly required by applicable law, KEW does not
undertake any obligation to update publicly or revise any such
forward-looking statements, and as a result of new information, future
events or otherwise.
Non-IFRS Measures
This news release contains references to certain measures that do not
have a standardized meaning under International Financial Reporting
Standards (“IFRS”) as prescribed by the International Accounting
Standards Board and are therefore unlikely to be comparable to similar
measures presented by other companies. Rather, these measures are
provided as additional information to complement IFRS measures by
providing a further understanding of operations from management’s
perspective. Accordingly, non-IFRS measures should not be considered in
isolation nor as a substitute for analysis of financial information
reported under IFRS. This news release makes reference to Gross Profit,
Gross Profit Margin, Adjusted Net Income, Adjusted EBITDA, Free Cash
Flow, Net debt, and Adjusted Net Debt, each of which is a non-IFRS
financial measure. The Company believes these non-IFRS financial
measures are frequently used by securities analysts, investors and other
interested parties as measures of financial performance and it is
therefore helpful to provide supplemental measures of operating
performance and thus highlight trends that may not otherwise be apparent
when relying solely on IFRS financial measures.
The Company’s definitions of non-IFRS financial measures are as
follows:
- Gross Profit is revenue less cost of sales.
- Gross Profit Margin is gross profit as a percentage of revenue.
-
Adjusted Net Income is Income (Loss) before income tax recovery
then includes add-back adjustments for items such as transaction
costs, reorganization and exceptional costs, share-based compensation,
deferred compensation, other intangibles amortization, gain on change
in fair value of financial liabilities, and (gain) loss on sale of
subsidiary. -
Adjusted EBITDA is also provided to better analyze trends in
performance and present a truer economic representation on a
comparative basis. Adjusted EBITDA is Adjusted Net Income including
additional add-back adjustments for Interest Expense, net of Interest
Income, Depreciation and any non-cash amortization (to the extent not
added back to Adjusted Net Income). -
Free Cash Flow is Adjusted EBITDA adjusted for additions to
Property and Equipment, Interest and cash taxes. -
Adjusted Free Cash Flow is Free Cash Flow adjusted for additions to
film and television rights, net of amortization. -
Adjusted Net Income after tax is adjusted net income less income
tax recovery. -
Adjusted Net Debt is Net Debt less intra-group interim production
financing and adjusted for the impact of foreign exchange -
Adjusted Earnings Per Share is Adjusted Net Income divided by
weighted average number of common shares in the capital of the Company
Please see the Company’s management’s discussion and analysis for the
three months ended March 31, 2019 for a detailed description of these
measures and a reconciliation of these measures to the nearest IFRS
measure.
Selected Comparative Information
Below is selected information from the consolidated statements of loss
for the three months ended March 31, 2019 and the three months ended
March 31, 2018.
|
Three months |
Three months |
||||||
| Revenue | |||||||
| Production and distribution revenue | 52,001 | 39,782 | |||||
| Cost of sales | 37,995 | 26,982 | |||||
| Gross profit (1) | 14,006 | 12,800 | |||||
| Expenses | |||||||
| General and administrative expenses | 14,056 | 10,544 | |||||
| Amortization of other intangible assets | 2,157 | 2,168 | |||||
| Amortization of right-of-use asset | 1,322 | – | |||||
| Transaction costs | – | 932 | |||||
| Deferred compensation | 902 | – | |||||
| Share-based compensation | 923 | 45 | |||||
| Interest expense, net of interest income, on long term borrowings | 2,175 | 1,158 | |||||
| Interest expense on lease obligations | 326 | – | |||||
| Depreciation | 375 | 190 | |||||
| (Gain) loss on change in fair value of financial liabilities | 34 | (1,897) | |||||
| Foreign exchange on financial liabilities | (39) | 451 | |||||
| Total expenses | 22,231 | 13,591 | |||||
| Loss before income tax recovery | (8,225) | (791) | |||||
| Income tax recovery | 341 | 612 | |||||
| Net loss for the period | (7,884) | (179) | |||||
| Net income (loss) attributable to: | |||||||
| Equity holders of the parent | (8,562) | (690) | |||||
| Non-controlling interest | 678 | 511 | |||||
| (7,884) | (179) | ||||||
| Loss per share attributable to equity holders of the parent: | |||||||
| Loss per share | |||||||
| – basic and diluted | (0.64) | (0.06) | |||||
| Weighted average number of Common Shares outstanding | |||||||
| – basic and diluted | 13,438,866 | 11,818,646 | |||||
|
Calculation of Adjusted net income (loss) (1) and Adjusted EBITDA: (1) |
|||||||
| Loss before income tax recovery | (8,225) | (791) | |||||
| Amortization of other intangible assets | 2,157 | 2,168 | |||||
| Transaction costs | – | 932 | |||||
| Deferred compensation | 902 | – | |||||
| Share-based compensation | 923 | 45 | |||||
| (Gain) loss on change in fair value of financial liabilities | 34 | (1,897) | |||||
| Foreign exchange on financial liabilities | (39) | 451 | |||||
| Corporate reorganization costs (2) | – | 315 | |||||
| Exceptional costs (2) | 664 | 639 | |||||
| Adjusted net income (loss) for the period | (3,584) | 1,862 | |||||
| Depreciation | 375 | 190 | |||||
| Amortization of right-of-use asset | 1,322 | – | |||||
| Interest expense, net of interest income, on long-term borrowings | 2,175 | 1,158 | |||||
| Interest expense on lease obligations | 326 | – | |||||
| Adjusted EBITDA before NCI | 614 | 3,210 | |||||
| Non-controlling interest | (760) | (733) | |||||
| Adjusted EBITDA after NCI | (146) | 2,477 | |||||
| (1) | Refer to the “Use of Non-IFRS Financial Measures” section of the MD&A | |
| (2) | Included in general and administrative expenses | |
| (3) |
On January 1, 2019, Kew adopted IFRS 16, Leases. No adjustment was made to the three-month period ended March 31, 2018. The amounts reflected in the three months ended March 31, 2019 reflect the relevant changes under the standard. As noted in the interim condensed consolidated financial statements, payments made under lease obligations were $1,185 in the quarter. |
|
Revenue, Cost of Sales, Gross Profit and Segmental Analysis
|
Three months |
Three months |
||||||
| Revenue | |||||||
| Production and distribution revenue | 52,001 | 39,782 | |||||
| Cost of sales | 37,995 | 26,982 | |||||
| Gross profit(1) | 14,006 | 12,800 | |||||
The Company’s business activities are conducted through two segments.
| Three months ended March 31, 2019 | Production | Distribution | Corporate | Consolidated | |||||||||
| Revenues | 33,542 | 18,459 | – | 52,001 | |||||||||
| Cost of sales | 24,514 | 13,481 | – | 37,995 | |||||||||
| Gross profit(1) | 9,028 | 4,978 | – | 14,006 | |||||||||
| General and administrative expenses | 7,243 | 4,501 | 2,312 | 14,056 | |||||||||
| Segment profit (loss) | 1,785 | 477 | (2,312) | (50) | |||||||||
| Exceptionals | – | 68 | 596 | 664 | |||||||||
| NCI | (760) | – | – | (760) | |||||||||
| Adjusted EBITDA(1) | 1,025 | 545 | (1,716) | (146) | |||||||||
Contacts
Investor Relations:
Steven Silver
Chief Executive
Officer
647-957-2194
investors@kewmedia.com
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Innocan
Innocan Pharma Submits Investigational New Animal Drug Application to FDA’s Veterinary Center
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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Cannabis
Verano Announces the Opening of Zen Leaf Fairless Hills, the Company’s Newest Affiliated Dispensary in Pennsylvania, in Prime New Location
- 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
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
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Email: askanexpert@thenicheresearch.com
Website: www.thenicheresearch.com
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