/home/grassnews/public_html/wp-content/themes/zox-news/parts/post-single.php on line 153
">
Warning: Undefined array key 0 in /home/grassnews/public_html/wp-content/themes/zox-news/parts/post-single.php on line 153
Warning: Attempt to read property "cat_name" on null in /home/grassnews/public_html/wp-content/themes/zox-news/parts/post-single.php on line 153
Carter Validus Mission Critical REIT, Inc. First Quarter 2019 Results
TAMPA, Fla.–(BUSINESS WIRE)–Carter Validus Mission Critical REIT, Inc., or the Company, a public,
non-traded real estate investment trust focused on mission critical
healthcare properties, today announced operating results for the first
quarter ended March 31, 2019.
Quarter Ended March 31, 2019 and Subsequent
Highlights
- Net income attributable to common stockholders totaled $2.1 million.
-
Net operating income from continuing operations, or NOI, totaled $19.3
million. -
Funds from operations, or FFO, attributable to common stockholders
equaled $10.9 million. -
Modified funds from operations, or MFFO, attributable to common
stockholders equaled $6.6 million. -
During the three months ended March 31, 2019, the Company repurchased
approximately 3.7 million shares of common stock for approximately
$19.6 million, or $5.33 per share. -
On April 11, 2019, the Company announced it had entered into a
definitive agreement to merge with Carter Validus Mission Critical
REIT II, Inc, or REIT II. See further discussion in “Agreement and
Plan of Merger” section below.
Michael Seton, Chief Executive Officer and President of the Company
stated, “We are pleased that on April 11th the Company entered into a
merger agreement to merge with Carter Validus Mission Critical REIT II,
Inc. In addition to providing a combination of cash and stock
consideration to stockholders of the Company in connection with the
closing of the merger, we anticipate the combined company would provide
an increased opportunity to maximize stockholder value through greater
portfolio diversification, enhanced size and scale, and increased
optionality for potential liquidity in the future.”
An explanation of FFO, MFFO, NOI and Tenant Reimbursements, as well
as reconciliations of such non-GAAP financial measures to the most
directly comparable U.S. GAAP measures, are included at the end of this
release.
Financial Results
Quarter Ended March 31, 2019, Compared to Quarter Ended March 31,
2018
-
Net income attributable to common stockholders was $2.1 million for
the quarter ended March 31, 2019, compared to net loss attributable to
common stockholders of $17.2 million for the quarter ended March 31,
2018. -
FFO attributable to common stockholders was $10.9 million for the
quarter ended March 31, 2019, compared to negative FFO attributable to
common stockholders of $7.0 million for the quarter ended March 31,
2018. -
MFFO attributable to common stockholders was $6.6 million for the
quarter ended March 31, 2019, a decrease of 16.5%, compared to MFFO
attributable to common stockholders of $7.9 million for the quarter
ended March 31, 2018.
The increase in net income attributable to common stockholders during
the period presented above primarily was the result of one-time write
offs in the first quarter of 2018. The Company wrote-off straight-line
rent and an in-place lease intangible asset related to one of the
Company’s former tenants, Bay Area Regional Medical Center, LLC, or Bay
Area, which experienced financial difficulties and ultimately ceased
operations. The write-offs were partially offset by a gain on the sale
of two data center properties during the quarter ended March 31, 2018.
The increase in FFO during the period presented above was the result of
the same factors, except for the gain on sales, which is removed when
calculating this metric. The decrease in MFFO during the periods
presented above primarily relates to legal and professional fees
incurred in connection with the merger transaction, as discussed below.
The straight-line rent and in-place lease intangible write-offs, which
are a part of overall straight-line rent and depreciation and
amortization line items, respectively, as well as gain on sales are
removed when calculating MFFO.
Operating Results
Quarter Ended March 31, 2019, Compared to Quarter Ended March 31,
2018
-
NOI from continuing operations was $19.3 million for the quarter ended
March 31, 2019, compared to net operating loss of $1.5 million for the
quarter ended March 31, 2018. -
Total revenue from continuing operations was $20.9 million for the
quarter ended March 31, 2019, compared to $1.5 million for the quarter
ended March 31, 2018.
The increases in NOI from continuing operations, total revenue from
continuing operations and same store rental revenue and tenant
reimbursements during the quarter ended March 31, 2019, are primarily
the result of write-offs in straight-line rent and tenant reimbursements
related to Bay Area during the first quarter of 2018. The Company
terminated the lease with Bay Area on August 13, 2018, and re-leased the
property to a new tenant, the Board of Regents of the University of
Texas System on October 24, 2018.
Portfolio Overview
The Company’s operating portfolio had a weighted average occupancy of
91.2% as of March 31, 2019, with two properties vacant, and a weighted
average remaining lease term of 11.9 years.
As of March 31, 2019, the Company owned 61 properties, located in 32
markets, comprised of approximately 2.4 million of leased rentable
square feet.
Balance Sheet and Liquidity
As of March 31, 2019, the Company had total principal debt outstanding
of $235.8 million, and a net debt leverage ratio, which is the ratio of
principal debt outstanding less cash to fair value of real estate, of
18.2%. The Company’s outstanding debt was comprised of 24% debt fixed
through the use of interest rate swaps and 76% variable rate debt.
At March 31, 2019, the Company had liquidity of $105.9 million,
consisting of $28.0 million in cash and cash equivalents and $77.9
million in borrowing base availability on the unsecured credit facility.
Distributions
During the first quarter of 2019, the Company paid aggregate
distributions of $14.3 million ($7.8 million in cash and $6.5 million
reinvested in shares of common stock pursuant to the Company’s
Distribution Reinvestment Plan, or DRIP.
The Company declared weighted average distributions per share of common
stock in the amount of $0.08 and $3.14 in the first quarters ended March
31, 2019 and 2018, respectively. During the three months ended March 31,
2018, the Company paid the special cash distribution of $3.00 per share
of common stock in connection with the disposition of certain real
estate properties between December 2017 and January 2018.
Agreement and Plan of Merger
On April 11, 2019, the Company, along with REIT II, Carter/Validus
Operating Partnership, LP, or REIT I OP, Carter Validus Operating
Partnership II, LP, or REIT II OP, and Lightning Merger Sub, LLC, a
wholly owned subsidiary of REIT II, or the Merger Subsidiary, entered
into an Agreement and Plan of Merger, or the Merger Agreement.
Pursuant to the terms and conditions of the Merger Agreement, Carter
Validus Mission Critical REIT, Inc., will merge with and into the Merger
Subsidiary, and will be the surviving entity of the transaction.
Post-merger, the Merger Subsidiary will continue to operate as a wholly
owned subsidiary of REIT II.
At the time of the merger, and subject to the terms and conditions of
the Merger Agreement, each issued and outstanding share of the Company’s
common stock (or a fraction thereof), $0.01 par value per share, or REIT
I common stock, will be converted into the right to receive:
(i) $1.00 in cash; and
(ii) 0.4681 shares of REIT II Class A common stock, par value $0.01 per
share.
In order for the merger to be completed, among other conditions, the
Company’s stockholders must approve the merger and the other
transactions contemplated by the Merger Agreement, which requires the
affirmative vote of holders of a majority of the outstanding shares of
the Company’s common stock.
This is a summary of the terms and conditions of the Merger Agreement.
For a full description, see the Current Report on Form 8-K filed with
the Securities and Exchange Commission on April 11, 2019, and the
exhibits thereto.
Suspension of Distribution Reinvestment Plan
and Shift to Cash Distributions
In connection with the merger, on April 10, 2019, the Company’s board of
directors approved the suspension of the DRIP, and, therefore, suspended
the DRIP beginning with distributions that accrued in April 2019. All
stockholders now receive their distributions in cash.
Third Amended and Restated Share Repurchase
Program
In connection with entering into the Merger Agreement, on April 10,
2019, the Company’s board of directors approved the Third Amended and
Restated Share Repurchase Program, or the Third Amended & Restated SRP,
which became effective on May 11, 2019, and will apply beginning with
repurchases made on the 2019 third quarter repurchase date. Pursuant to
the Third Amended & Restated SRP, the Company will only repurchase
shares of common stock in connection with the death, qualifying
disability, or involuntary exigent circumstance (as determined by the
Company’s board of directors, in its sole discretion) of a stockholder,
subject to certain terms and conditions specified in the Third Amended &
Restated SRP. Further, pursuant to the Third Amended & Restated SRP, if
the Company does not repurchase all of the shares for which repurchase
requests were submitted in any quarter, outstanding repurchase requests
will not automatically roll over to the subsequent quarter.
Supplemental Information
The Company routinely announces material information to investors and
the marketplace using press releases, SEC filings and the Company’s
website at www.cvmissioncriticalreit.com.
The information that the Company posts to its website may be deemed
material. Accordingly, the Company encourages investors and others
interested in the Company to routinely monitor and review the
information that the Company posts on its website, in addition to
following the Company’s press releases and SEC filings. A glossary of
definitions and other supplemental information may be found attached to
the Current Report on Form 8-K filed May 17, 2019. A comprehensive
listing of the Company’s properties is also available at www.cvmissioncriticalreit.com.
About Carter Validus Mission Critical REIT, Inc.
Carter Validus Mission Critical REIT, Inc. is a public, non-traded
corporation headquartered in Tampa, Florida, that has elected to be
taxed as a real estate investment trust and invests in mission critical
healthcare real estate assets located throughout the United States.
Mission critical real estate assets are purpose-built facilities
designed to support the most essential operations of tenants.
This communication shall not constitute an offer to sell or the
solicitation of an offer to buy any securities, nor shall there be any
sale of securities in any jurisdiction in which such offer, solicitation
or sale would be unlawful prior to registration or qualification under
the securities laws of any such jurisdiction. No offering of securities
shall be made except by means of a prospectus meeting the requirements
of the federal securities laws. The Company and REIT II expect to
prepare and file with the SEC a Registration Statement on Form S-4
containing a proxy statement/prospectus. WE URGE INVESTORS TO READ THE
PROXY STATEMENT/PROSPECTUS AND ANY OTHER RELEVANT DOCUMENTS FILED BY THE
COMPANY AND REIT II IN CONNECTION WITH THE PROPOSED MERGER WHEN THEY
BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT
THE COMPANY, REIT II AND THE PROPOSED MERGER. INVESTORS ARE URGED TO
READ THESE DOCUMENTS CAREFULLY AND IN THEIR ENTIRETY. Investors will be
able to obtain these materials and other documents filed with the SEC
free of charge at the SEC’s website (www.sec.gov).
In addition, these materials will also be available free of charge by
accessing the Company’s website (www.cvmissioncriticalreit.com)
or by accessing REIT II’s website (www.cvmissioncriticalreitii.com).
Participants in the Proxy Solicitation
Information regarding the Company’s directors and executive officers is
available in its Annual Report on Form 10-K filed with the SEC on March
22, 2019, and information regarding REIT II’s directors and executive
officers is available in its Annual Report on Form 10-K filed with the
SEC on March 22, 2019. Certain directors and executive officers of the
Company and/or REIT II and other persons may have direct or indirect
interests in the merger due to securities holdings, pre-existing or
future indemnification arrangements and rights to severance payments and
retention bonuses if their employment is terminated prior to or
following the merger. If and to the extent that any of the participants
will receive any additional benefits in connection with the merger, the
details of those benefits will be described in the proxy
statement/prospectus relating to the merger. Investors and security
holders may obtain additional information regarding the direct and
indirect interests of the Company and REIT II and their respective
executive officers and directors in the merger by reading the proxy
statement/prospectus regarding the merger when it becomes available.
Forward-Looking Statements
Certain statements contained herein, other than historical fact, may be
considered “forward-looking statements” within the meaning of Section
27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended, and are intended to be
covered by the safe harbor provided by the same. These statements are
based on management’s current expectations and beliefs regarding
operational strategies, anticipated events and trends, the economy, and
other future conditions and are subject to a number of trends and
uncertainties. No forward-looking statement is intended to, nor shall
it, serve as a guarantee of future performance. You can identify the
forward-looking statements by the use of words such as “anticipate,”
“believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,”
“outlook,” “plan,” “potential,” “predict,” “project,” “seek,” “should,”
“will” and other similar terms and phrases, including references to
assumptions and forecasts of future results. Forward-looking statements
are subject to various risks and uncertainties, and factors that could
cause actual results to differ materially from the Company’s
expectations include, but are not limited to, the risk that the merger
will not be consummated within the expected time period or at all; the
occurrence of any event, change or other circumstances that could give
rise to the termination of the Merger Agreement; the inability of the
Company to obtain stockholder approval of the merger or the failure to
satisfy the other conditions to completion of the merger; risks related
to disruption of management’s attention from the ongoing business
operations due to the merger; availability of suitable investment
opportunities; changes in interest rates, the availability and terms of
financing; general economic conditions; market conditions; legislative
and regulatory changes that could adversely impact the business of the
Company; and other factors, including those described under the section
entitled “Risk Factors” in the Company’s Annual Report on Form 10-K for
the year ended 2018, and subsequent quarterly reports filed on Form 10-Q
with the SEC, copies of which are available at www.sec.gov.
The Company undertakes no obligation to publicly update or revise any
forward-looking statement, whether as a result of new information,
future events, or otherwise, except as required by law.
|
Balance Sheet (amounts in thousands, |
||||||||||
|
(Unaudited) March 31, 2019 |
December 31, 2018 | |||||||||
| ASSETS | ||||||||||
| Real estate: | ||||||||||
| Land | $ | 72,700 | $ | 72,700 | ||||||
|
Buildings and improvements, less accumulated depreciation of $106,906 and $100,897, respectively |
801,260 | 806,637 | ||||||||
| Total real estate, net | 873,960 | 879,337 | ||||||||
| Cash and cash equivalents | 28,015 | 43,133 | ||||||||
|
Acquired intangible assets, less accumulated amortization of $24,056 and $23,822, respectively |
55,907 | 59,681 | ||||||||
| Right-of-use assets – operating leases | 10,001 | — | ||||||||
| Other assets, net | 43,465 | 40,964 | ||||||||
| Assets of discontinued operations, net | 393 | 401 | ||||||||
| Total assets | $ | 1,011,741 | $ | 1,023,516 | ||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||
| Liabilities: | ||||||||||
|
Notes payable, net of deferred financing costs of $70 and $75, respectively |
$ | 17,749 | $ | 36,214 | ||||||
| Credit facility | 218,000 | 190,000 | ||||||||
| Accounts payable due to affiliates | 1,550 | 1,329 | ||||||||
| Accounts payable and other liabilities | 12,188 | 16,703 | ||||||||
|
Intangible lease liabilities, less accumulated amortization of $5,118 and $5,712, respectively |
11,132 | 16,537 | ||||||||
| Operating lease liabilities | 13,765 | — | ||||||||
| Liabilities of discontinued operations, net | 12 | 13 | ||||||||
| Total liabilities | 274,396 | 260,796 | ||||||||
| Stockholders’ equity: | ||||||||||
|
Preferred stock, $0.01 par value per share, 50,000,000 shares authorized; none issued and outstanding |
— | — | ||||||||
|
Common stock, $0.01 par value per share, 300,000,000 shares authorized; 204,348,165 and 203,114,678 shares issued, respectively; 180,644,686 and 183,081,839 shares outstanding, respectively |
1,806 | 1,831 | ||||||||
| Additional paid-in capital | 1,600,015 | 1,612,969 | ||||||||
| Accumulated distributions in excess of earnings | (864,615 | ) | (852,505 | ) | ||||||
| Accumulated other comprehensive income | 139 | 425 | ||||||||
| Total stockholders’ equity | 737,345 | 762,720 | ||||||||
| Total liabilities and stockholders’ equity | $ | 1,011,741 | $ | 1,023,516 | ||||||
|
Quarterly Income Statement (amounts in |
||||||||||
|
Three Months Ended |
||||||||||
| 2019 | 2018 | |||||||||
| Revenue: | ||||||||||
| Rental revenue | $ | 20,916 | $ | 1,535 | ||||||
| Expenses: | ||||||||||
| Rental expenses | 1,609 | 3,000 | ||||||||
| General and administrative expenses | 2,891 | 1,609 | ||||||||
| Asset management fees | 2,404 | 2,465 | ||||||||
| Depreciation and amortization | 8,793 | 28,821 | ||||||||
|
Total expenses |
15,697 | 35,895 | ||||||||
| Income (loss) from operations | 5,219 | (34,360 | ) | |||||||
| Other expense: | ||||||||||
| Interest expense, net | (3,071 | ) | (2,214 | ) | ||||||
| Provision for loan losses | — | (1,190 | ) | |||||||
| Total other expense | (3,071 | ) | (3,404 | ) | ||||||
| Income (loss) from continuing operations | 2,148 | (37,764 | ) | |||||||
| Income from discontinued operations | — | 20,533 | ||||||||
| Net income (loss) attributable to common stockholders | $ | 2,148 | $ | (17,231 | ) | |||||
| Other comprehensive (loss) income: | ||||||||||
| Unrealized (loss) income on interest rate swaps, net | $ | (286 | ) | $ | 636 | |||||
| Other comprehensive (loss) income | (286 | ) | 636 | |||||||
| Comprehensive income (loss) attributable to common stockholders | $ | 1,862 | $ | (16,595 | ) | |||||
| Weighted average number of common shares outstanding: | ||||||||||
| Basic | 180,618,895 | 185,673,400 | ||||||||
| Diluted | 180,641,395 | 185,673,400 | ||||||||
|
Net income (loss) per common share attributable to common stockholders: |
||||||||||
| Basic: | ||||||||||
| Continuing operations | $ | 0.01 | $ | (0.20 | ) | |||||
| Discontinued operations | — | 0.11 | ||||||||
| Net income (loss) attributable to common stockholders | $ | 0.01 | $ | (0.09 | ) | |||||
| Diluted: | ||||||||||
| Continuing operations | $ | 0.01 | $ | (0.20 | ) | |||||
| Discontinued operations | — | 0.11 | ||||||||
| Net income (loss) attributable to common stockholders | $ | 0.01 | $ | (0.09 | ) | |||||
| Distributions declared per common share | $ | 0.08 | $ | 3.14 | ||||||
Use of Non-GAAP Information
Net operating income, a non-GAAP financial measure, is defined as total
revenues, less rental expenses, which excludes depreciation and
amortization, general and administrative expenses, acquisition related
expenses, asset management fees and interest expense, net. The Company
believes that net operating income serves as a useful supplement to net
income because it allows investors and management to measure unlevered
property-level operating results and to compare operating results to the
operating results of other real estate companies between periods on a
consistent basis. Net operating income should not be considered as an
alternative to net income determined in accordance with GAAP as an
indicator of financial performance, and accordingly, the Company
believes that in order to facilitate a clear understanding of the
consolidated historical operating results, net operating income should
be examined in conjunction with net income as presented in the condensed
consolidated financial statements and data included on the Company’s
Quarterly Report on Form 10-Q filed with the SEC on May 15, 2019.
The following is a reconciliation of net income (loss) attributable to
common stockholders, which is the most directly comparable GAAP
financial measure, to net operating income (loss) from continuing
operations for the three months ended March 31, 2019 and 2018 (amounts
in thousands):
|
Three Months Ended March 31, |
||||||||||
| 2019 | 2018 | |||||||||
| Revenue: | ||||||||||
| Rental revenue | $ | 20,916 | $ | 1,535 | ||||||
| Expenses: | ||||||||||
| Rental expenses | 1,609 | 3,000 | ||||||||
| Net operating income (loss) from continuing operations | 19,307 | (1,465 | ) | |||||||
| Expenses: | ||||||||||
| General and administrative expenses | 2,891 | 1,609 | ||||||||
| Asset management fees | 2,404 | 2,465 | ||||||||
| Depreciation and amortization | 8,793 | 28,821 | ||||||||
| Income (loss) from operations | 5,219 | (34,360 | ) | |||||||
| Other expense: | ||||||||||
| Interest expense, net | (3,071 | ) | (2,214 | ) | ||||||
| Provision for loan losses | — | (1,190 | ) | |||||||
| Income (loss) from continuing operations | 2,148 | (37,764 | ) | |||||||
| Income from discontinued operations | — | 20,533 | ||||||||
| Net income (loss) attributable to common stockholders | $ | 2,148 | $ | (17,231 | ) | |||||
The Company generates almost all of the net operating income from
property operations. In order to evaluate the overall portfolio,
management analyzes the net operating income of same store properties.
The Company defines “same store properties” as operating properties that
were owned and operated for the entirety of both calendar periods being
compared and excludes properties under development. By evaluating the
property net operating income of the same store properties, management
is able to monitor the operations of the Company’s existing properties
for comparable periods to measure the performance of the current
portfolio and determine the effects of new acquisitions on net income.
The following table presents same store and non-same store components of
net operating income (loss) from continuing operations for the three
months ended March 31, 2019 and 2018 (amounts in thousands):
|
Three Months Ended March 31, |
||||||||||
| 2019 | 2018 | |||||||||
| Revenue: | ||||||||||
| Same store rental revenue | $ | 20,109 | $ | 2,721 | ||||||
| Non-same store rental revenue | — | 50 | ||||||||
| Same store tenant reimbursements | 801 | (1,240 | ) | |||||||
| Non-same store tenant reimbursements | 2 | — | ||||||||
| Other operating income | 4 | 4 | ||||||||
| Total revenue | 20,916 | 1,535 | ||||||||
| Expenses: | ||||||||||
| Same store rental expenses | 1,608 | 2,983 | ||||||||
| Non-same store rental expenses | 1 | 17 | ||||||||
| Net operating income (loss) from continuing operations | $ | 19,307 | $ | (1,465 | ) | |||||
One of the Company’s objectives is to provide cash distributions to its
stockholders from cash generated by the Company’s operations. The
purchase of real estate assets and real estate-related investments, and
the corresponding expenses associated with that process, is a key
operational feature of the Company’s business plan in order to generate
cash from operations. Due to certain unique operating characteristics of
real estate companies, the National Association of Real Estate
Investment Trusts, or NAREIT, an industry trade group, has promulgated a
measure known as FFO which the Company believes is an appropriate
supplemental measure to reflect the operating performance of a REIT. The
use of FFO is recommended by the REIT industry as a supplemental
performance measure. FFO is not equivalent to the Company’s net income
as determined under GAAP.
The Company defines FFO, consistent with NAREIT’s definition, as net
income (computed in accordance with GAAP), excluding gains (or losses)
from sales of property and asset impairment write-downs, plus
depreciation and amortization of real estate assets, and after
adjustments for unconsolidated partnerships and joint ventures.
Adjustments for unconsolidated partnerships and joint ventures will be
calculated to reflect FFO on the same basis.
The Company, along with others in the real estate industry, consider FFO
to be an appropriate supplemental measure of a REIT’s operating
performance because it is based on a net income analysis of property
portfolio performance that excludes non-cash items such as depreciation
and amortization and asset impairment write-downs, which the Company
believes provides a more complete understanding of its performance to
investors and to its management, and when compared year over year,
reflects the impact on the Company’s operations from trends in occupancy.
Contacts
Investor Relations Contact:
Miranda
Davidson
[email protected]
Warning: Undefined array key 0 in /home/grassnews/public_html/wp-content/themes/zox-news/parts/post-single.php on line 493
Warning: Attempt to read property "cat_ID" on null in /home/grassnews/public_html/wp-content/themes/zox-news/parts/post-single.php on line 493
Cannabis
Cannabis Capsule Global Analysis Report 2024: Market to Reach $79.2 Billion in 2028 – Forecast to 2033 Featuring GW Pharmaceuticals, Trulieve Cannabis, Green Thumb Industries, Tilray, Columbia Care
Innocan
Innocan Pharma Initiates FDA Approval Process for Liposome Injection Therapy for Chronic Pain
With its submission of a Pre-IND Meeting Request Letter, Innocan initiates the regulatory process with the U.S. Food and Drug Administration (FDA) for the approval of its prolonged CBD release technology for human use
HERZLIYA, Israel and CALGARY, AB, April 22, 2024 /PRNewswire/ — Innocan Pharma Corporation (CSE: INNO) (FSE: IP4) (OTCQB: INNPF) (“Innocan” or the “Company”), is pleased to announce that is has reached a key milestone: the Company submitted its letter of application for a Pre-IND meeting, the first phase in the FDA approval process in the United States for Innocan’s Liposome-Cannabidiol (LPT-CBD) injectable treatment of chronic pain.
With the global market for pain therapeutics widely expected to exceed US$100 billion by 2032[1], LPT therapy which requires only one single monthly subcutaneous injection, is positioned as a highly attractive alternative to opioid-based approaches. Opioids have and continue to take a significant human toll in recent years, with more than three-quarters of drug overdose deaths in the United States involving opioids, according to the United States Center for Disease Control and Prevention[2].
Innocan’s therapy has shown consistent efficacy in multiple pre-clinical trials in recent years of it’s LPT-CBD injectable treatment through prolonged and controlled release of CBD in animals with chronic pain conditions. Innocan’s Pre-IND Meeting Request Letter to the FDA is a key milestone and important first step in seeking approval of its LPT-CBD therapy for use in humans. At the Pre-IND meeting, the objective will be to obtain guidance from the FDA on the preclinical and clinical development plan, enabling the initiation of an Investigational New Drug (IND) program in the United States.
Iris Bincovich, CEO of Innocan, commented: “We are extremely excited to embark on this next stage in the development of LPT-CBD injectables, this is a major Milestone for Innocan Pharma. We have invested significant effort and many thousands of person-hours in its research and development, accumulating a wealth of preclinical data that will serve as the foundation for our participation in the FDA process. This is a key milestone for Innocan and marks our first step towards the FDA’s recognition of our technology. We see significant potential for our therapy, with an addressable market for pain management therapeutics expected to exceed US $100 billion by 2032, and we look forward to tapping that.“
Dr. Joseph Pergolizzi, Innocan’s FDA Advisory Board Member, added:
“We have worked hard to catalogue the data collected as part of our animal LPT therapy testing program and prepare it for the FDA. We look forward to working under FDA guidance, with the goal of completing the review process as quickly and efficiently as possible. We believe that Innocan’s unique treatment method, if and when it should become FDA-approved has the potential of being a highly valuable non-opioid addition in the medical arsenal of the management of chronic pain.”
About Innocan
Innocan is a pharmaceutical tech company that operates under two main segments: Pharmaceuticals and Consumer Wellness. In the Pharmaceuticals segment, Innocan focuses on developing innovative drug delivery platform technologies based on advanced cannabinoids science, to treat various conditions to improve patients’ quality of life. This segment involves two drug delivery technologies: (i) LPT CBD- loaded liposome platform facilitating exact dosing and the prolonged and controlled release of CBD into the blood stream. The LPT delivery platform research is in the preclinical trial phase for: Pain Management. In the Consumer Wellness segment, Innocan develops and markets a wide portfolio of innovative and high-performance self-care products to promote a healthier lifestyle. Under this segment, Innocan has established a joint venture by the name of BI Sky Global Ltd. that focuses on advanced targeted online sales. https://innocanpharma.com/
For further information, please contact:
For Innocan Pharma Corporation:
Iris Bincovich, CEO
+1-516-210-4025
+972-54-3012842
+442037699377
[email protected]
NEITHER THE CANADIAN SECURITIES EXCHANGE NOR ITS REGULATION SERVICES PROVIDER HAVE REVIEWED OR ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
Cautionary note regarding forward-looking information
Certain information set forth in this news release, including, without limitation, information regarding research and development, collaborations, the filing of potential applications with the FDA and other regulatory authorities, the potential achievement of future regulatory milestones, the potential for treatment of conditions and other therapeutic effects resulting from research activities and/or the Company’s products, requisite regulatory approvals and the timing for market entry, is forward-looking information within the meaning of applicable securities laws. By its nature, forward-looking information is subject to numerous risks and uncertainties, some of which are beyond Innocan’s control. The forward-looking information contained in this news release is based on certain key expectations and assumptions made by Innocan, including expectations and assumptions concerning the anticipated benefits of the products, satisfaction of regulatory requirements in various jurisdictions and satisfactory completion of requisite production and distribution arrangements.
Forward-looking information is subject to various risks and uncertainties which could cause actual results and experience to differ materially from the anticipated results or expectations expressed in this news release. The key risks and uncertainties include but are not limited to: general global and local (national) economic, market and business conditions; governmental and regulatory requirements and actions by governmental authorities; and relationships with suppliers, manufacturers, customers, business partners and competitors. There are also risks that are inherent in the nature of product distribution, including import / export matters and the failure to obtain any required regulatory and other approvals (or to do so in a timely manner) and availability in each market of product inputs and finished products. The anticipated timeline for entry to markets may change for a number of reasons, including the inability to secure necessary regulatory requirements, or the need for additional time to conclude and/or satisfy the manufacturing and distribution arrangements. As a result of the foregoing, readers should not place undue reliance on the forward-looking information contained in this news release concerning the timing of launch of product distribution. A comprehensive discussion of other risks that impact Innocan can also be found in Innocan’s public reports and filings which are available under Innocan’s profile at www.sedar.com.
Readers are cautioned that undue reliance should not be placed on forward-looking information as actual results may vary materially from the forward-looking information. Innocan does not undertake to update, correct or revise any forward looking information as a result of any new information, future events or otherwise, except as may be required by applicable law.
[1] https://www.gminsights.com/industry-analysis/pain-management-drugs-market
[2] https://www.cdc.gov/opioids/data/index.html
Logo – https://mma.prnewswire.com/media/2046271/3968398/Innocan_Pharma_Corporation_Logo.jpg
View original content:https://www.prnewswire.co.uk/news-releases/innocan-pharma-initiates-fda-approval-process-for-liposome-injection-therapy-for-chronic-pain-302122779.html
Bolsters Company’s Advantage in Several Key Emerging Markets, including Australia, New Zealand, Germany, Poland and the United Kingdom
NEW YORK, April 22, 2024 /PRNewswire/ — Curaleaf Holdings, Inc. (TSX: CURA) (OTCQX: CURLF) (“Curaleaf” or the “Company”), a leading international provider of consumer cannabis products, announced today the closing of its acquisition of Northern Green Canada (“NGC”), a vertically integrated Canadian licensed cannabis producer focused primarily on expanding in the international market through its EU-GMP certification. The accretive acquisition amplifies the Company’s strategic advantage in established European markets including Germany, Poland and the United Kingdom and provides a foothold in the emerging markets of Australia and New Zealand.
Integrating NGC’s international operation will equip Curaleaf with a secure and consistent high quality, non-irradiated, indoor EU-GMP flower supply, essential to maintaining its leading positions in Germany, the United Kingdom and Poland.
“We are thrilled to welcome NGC formally to the Curaleaf family of global brands,” said Boris Jordan, Founder and Executive Chairman of Curaleaf. “This is an incredibly important deal for our international expansion strategy, as we’ll be able to bolster our supply of high quality EU-GMP certified flower immediately to key European markets as well as enter the fast-growing markets of Australia and New Zealand.”
The global cannabis market is projected to generate $55 billion in sales by 2027. Emerging markets beyond the United States and Canada, including Germany, Australia and New Zealand are expected to contribute $6.3 billion of the $55 billion projection.
Terms of the acquisition of NGC include an initial payment at closing of the Company’s Subordinate Voting Shares valued at approximately US $16 million, subject to a typical post-closing adjustment. An earnout may also be paid in 2025 based upon 2024 performance of NGC’s operations, up to 50% of which will be cash and the rest paid in additional Subordinate Voting Shares. The issuance of Subordinate Voting Shares in connection with the acquisition of NGC has been conditionally approved by the Toronto Stock Exchange, subject to fulfilling customary listing conditions.
About Curaleaf Holdings
Curaleaf Holdings, Inc. (TSX: CURA) (OTCQX: CURLF) (“Curaleaf”) is a leading international provider of consumer products in cannabis with a mission to enhance lives by cultivating, sharing and celebrating the power of the plant. As a high-growth cannabis company known for quality, expertise and reliability, the Company and its brands, including Curaleaf, Select, Grassroots, JAMS, Find and Zero Proof provide industry-leading service, product selection and accessibility across the medical and adult use markets. Curaleaf International is the largest vertically integrated cannabis company in Europe with a unique supply and distribution network throughout the European market, bringing together pioneering science and research with cutting-edge cultivation, extraction and production. Curaleaf is listed on the Toronto Stock Exchange under the symbol CURA and trades on the OTCQX market under the symbol CURLF. For more information, please visit https://ir.curaleaf.com.
Forward Looking Statements
This media advisory contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. These statements relate to future events or future performance. All statements other than statements of historical fact may be forward–looking statements or information. Generally, forward-looking statements and information may be identified by the use of forward-looking terminology such as “plans”, “expects” or, “proposed”, “is expected”, “intends”, “anticipates”, or “believes”, or variations of such words and phrases, or by the use of words or phrases which state that certain actions, events or results may, could, would, or might occur or be achieved. More particularly and without limitation, this news release contains forward-looking statements and information concerning the expected benefits of the acquisition of NGC, and the Company’s planned expansion on internal markets, the Company’s anticipated strategic advantages in European markets and emerging markets, the integration of NGC’s internal operations, the anticipated global cannabis market, and the listing of shares issuable in connection with the acquisition on the Toronto Stock Exchange. Such forward-looking statements and information reflect management’s current beliefs and are based on assumptions made by and information currently available to the Company with respect to the matters described in this new release, including the Company’s ability to successfully realize the expected benefits of the acquisition, and the Company’s ability to fulfil the listing conditions imposed by the Toronto Stock Exchange. Forward-looking statements involve risks and uncertainties, which are based on current expectations as of the date of this release and subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements, including the failure to realize the expected benefits of the acquisition, or the Company’s failure to fulfil the listing conditions imposed by the Toronto Stock Exchange. Additional information about these assumptions and risks and uncertainties is contained under “Risk Factors and Uncertainties” in the Company’s latest annual information form filed on March 6, 2024, which is available under the Company’s SEDAR profile at http://www.sedar.com, and in other filings that the Company has made and may make with applicable securities authorities in the future. Forward-looking statements contained herein are made only as to the date of this press release and we undertake no obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law. We caution investors not to place considerable reliance on the forward-looking statements contained in this press release. The Toronto Stock Exchange has not reviewed, approved or disapproved the content of this news release.
INVESTOR CONTACT
Curaleaf Holdings, Inc.
Camilo Lyon, Chief Investment Officer
[email protected]
MEDIA CONTACT
Curaleaf Holdings, Inc.
Tracy Brady, SVP Corporate Communications
[email protected]
View original content:https://www.prnewswire.co.uk/news-releases/curaleaf-completes-acquisition-of-northern-green-canada-302123010.html
-
transfer1 week agoIMC to transfer its Oranim Pharmacy shares back to the seller
-
Cannabis1 week ago
Right on Brands Announces Major Product Line Expansion via HONEY® Brands
-
Cannabis7 days ago
Sannabis, Inc. (OTC: USPS) Unveils Innovative NO LICK! Terpene Spray for Cannabis Products to Enhance CBD and THC to Achieve the Entourage Effect
-
Cannabis1 week ago
Cannabis Concentrate Market to Cross US$2.4 Billion by 2030 amid Rising Medical and Recreational Demand
-
CCELL®2 weeks agoCCELL Launches Environmentally Conscious Eco Star AIO Vaporizer
-
Innocan3 days agoInnocan Pharma Initiates FDA Approval Process for Liposome Injection Therapy for Chronic Pain
-
Curaleaf4 days agoCuraleaf Completes Acquisition of Northern Green Canada
-
Cannabis3 days agoCannabis Capsule Global Analysis Report 2024: Market to Reach $79.2 Billion in 2028 – Forecast to 2033 Featuring GW Pharmaceuticals, Trulieve Cannabis, Green Thumb Industries, Tilray, Columbia Care
