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Graham Corporation Reports Fiscal 2019 Fourth Quarter and Full Year Results

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  • Revenue grew 18% to $92 million for fiscal 2019; loss per share
    was $0.03, adjusted EPS was $0.51
  • Backlog remains strong at $132 million; Fiscal 2019 book-to-bill
    ratio was 1.1x
  • Expecting fiscal 2020 revenue between $95 million and $100
    million; represents 14% to 20% growth, excluding commercial nuclear
    utility business which is for sale

BATAVIA, N.Y.–(BUSINESS WIRE)–Graham
Corporation
(NYSE: GHM), a global business that designs,
manufactures and sells critical equipment for the oil refining,
petrochemical, power and defense industries, today reported financial
results for its fourth quarter and year ended March 31, 2019 (“fiscal
2019”).

Net sales in the fourth quarter of fiscal 2019 were $23.6 million, up 7%
compared with the fourth quarter of the fiscal year ended March 31, 2018
(“fiscal 2018”). Net loss in the fiscal 2019 fourth quarter was $4.6
million, or $0.46 loss per diluted share. Excluding non-cash charges for
goodwill and intangible and other long-lived asset impairments, adjusted
net income and adjusted EPS, both of which are non-GAAP measures, for
the fourth quarter of fiscal 2019 were $0.8 million, and $0.08,
respectively. Net income and earnings per share (“EPS”) in the fiscal
2018 fourth quarter were $0.8 million and $0.09, respectively. Excluding
the impact of the U.S. Tax Cuts and Jobs Act tax reform legislation
passed in December 2017, adjusted net income and adjusted EPS, both of
which are non-GAAP measures, for the fourth quarter of fiscal 2018 were
$0.6 million and $0.07, respectively. Refer to the Company’s disclosures
regarding the use of non-GAAP measures later in this release.

Net sales for fiscal 2019 were $91.8 million, up 18% compared with $77.5
million in fiscal 2018. Fiscal 2019 net loss was $0.3 million, or a loss
of $0.03 per diluted share, compared with a net loss of $9.8 million, or
$1.01 per diluted share, in fiscal 2018. Excluding unusual charges,
adjusted net income for fiscal 2019 was $5.0 million, or $0.51 per
diluted share, compared with adjusted net income of $1.8 million, or
$0.18 per diluted share, in fiscal 2018, all on a non-GAAP basis. Refer
to the Company’s disclosures regarding the use of non-GAAP measures
later in this release.

James R. Lines, Graham’s President and Chief Executive Officer,
commented, “We had solid revenue growth in the quarter and the year, as
expected. However, the mix of projects and performance of our commercial
nuclear utility business dampened gross margins throughout the year.
While disappointing, we remain focused on solid execution and quality
service for our customers, and strong cost discipline to strengthen our
earnings potential. Likewise, we will continue to invest in our business
in line with our strategy to drive our long-term future.”

He added, “Our investments in personnel for our strategy are affecting
margins in the near term but remain important as we identify and capture
opportunities to achieve our growth and profitability goals. We are
encouraged by our solid order activity and strong backlog, which give us
confidence in a healthy outlook for the coming fiscal year and beyond.”

Fourth Quarter Fiscal 2019 Sales Summary
(See
accompanying financial tables for a breakdown of sales by industry and
region)

Consolidated net sales were up $1.4 million, or 7%, driven by $3.8
million and $1.7 million increases in sales to the
chemical/petrochemical and refining industries, respectively. These
increases were partially offset by $2.8 million and $1.2 million of
lower sales to the Company’s other commercial, industrial and defense
markets, and the power industry, respectively.

From a geographic perspective, U.S. sales represented 70% of
consolidated sales in the fiscal 2019 fourth quarter compared with 66%
in the fourth quarter of fiscal 2018. International sales were 30% of
consolidated sales in the fiscal 2019 quarter, compared with 34% in the
prior-year comparable period. U.S. based sales were driven by the
chemical/petrochemical and refining markets noted above.

Fluctuations in Graham’s sales among geographic locations and
industries can vary measurably from quarter-to-quarter based on the
timing and magnitude of projects.
Graham does not believe that
such quarter-to-quarter fluctuations are indicative of business trends,
which it believes are more apparent on a trailing twelve month basis.

Fourth Quarter Fiscal 2019 Operating Performance Review

     
($ in millions except per share data) Q4 FY19 Q4 FY18 Change
Net sales $ 23.6 $ 22.2 $ 1.4
Gross profit $ 4.8 $ 5.0 $ (0.1 )
Gross margin 20.3 % 22.4 %
Operating (loss) profit $ (5.8 ) $ 0.7 $ (6.5 )
Operating margin (24.7 %) 3.3 %
Net (loss) income $ (4.6 ) $ 0.8 $ (5.4 )
Diluted EPS $ (0.46 ) $ 0.09 $ (0.55 )
 
Non-GAAP financial measures:
Adjusted operating profit $ 0.6 $ 0.7 $ (0.1 )
Adjusted operating margin 2.6 % 3.3 %
Adjusted net income $ 0.8 $ 0.6 $ 0.2
Adjusted diluted EPS $ 0.08 $ 0.07 $ 0.01
Adjusted EBITDA $ 1.4 $ 1.4 $ (0.0 )
Adjusted EBITDA margin 5.8 % 6.3 %
 

Refer to pages 11 and 12 of this press release.

Graham believes that, when used in conjunction with measures prepared in
accordance with GAAP, adjusted operating profit, adjusted operating
margin (adjusted operating profit as a percentage of sales), adjusted
net income, adjusted diluted EPS, adjusted EBITDA and adjusted EBITDA
margin (adjusted EBITDA as a percentage of sales), which are non-GAAP
measures, help in the understanding of its operating performance.
Moreover, Graham’s credit facility also contains ratios based on EBITDA. See
the attached tables for additional important disclosures regarding
Graham’s use of adjusted operating profit, adjusted operating margin,
adjusted net income, adjusted diluted EPS, adjusted EBITDA
and
adjusted EBITDA margin as well as reconciliations of operating (loss)
profit to adjusted operating profit and reconciliations of net (loss)
income to adjusted net income and adjusted EBITDA.
This
disclosure regarding Graham’s use of non-GAAP measures for the fourth
quarters also applies to fiscal year data reflected later in this
release.

The results for the fiscal 2019 and 2018 fourth quarters were relatively
comparable on a non-GAAP basis, with adjusted EPS of $0.08 in the fiscal
2019 fourth quarter compared with $0.07 in the fiscal 2018 fourth
quarter. While gross margin was lower in the fiscal 2019 quarter, net
income benefited from higher interest and other income.

Fourth quarter fiscal 2019 gross profit and margin were unfavorably
impacted by project mix, including the commercial nuclear utility
business.

Selling, general and administrative (“SG&A”) expenses were $4.2 million
in the fourth quarters of both fiscal 2019 and 2018. SG&A as a percent
of sales was approximately 18% and 19% in the fourth quarters of fiscal
2019 and fiscal 2018, respectively.

Given ongoing challenges in the nuclear industry faced by relatively
small market participants, during the fourth quarter of fiscal 2019 the
Company decided to divest its commercial nuclear utility business,
Energy Steel. Upon evaluating the potential market value of the Energy
Steel business, Graham determined that the intangible assets, goodwill,
and other long-lived assets were impaired. Accordingly, the Company
recorded a $6.4 million impairment charge, $5.3 million net of tax, in
the fiscal 2019 fourth quarter.

Jeffrey Glajch, Graham’s Vice President and Chief Financial Officer,
noted, “While Energy Steel was successful in prior years, the changes in
the commercial nuclear utility industry over the last several years have
caused significant erosion of this business. Accordingly, we have
decided that it has more potential with a different partner and we are
in discussions to sell the business.”

During the fourth quarter of fiscal 2019, Graham’s effective tax rate
was not meaningful due to the non-deductibility of the goodwill portion
of the commercial nuclear utility business write down. The prior year’s
fourth quarter effective tax rate benefited from the impact of adopting
the 2017 U.S. Tax Cuts and Jobs Act.

Fourth quarter fiscal 2019 adjusted net income and adjusted diluted EPS
excluded $5.3 million of net-of-tax impairment charges. Fourth quarter
fiscal 2018 adjusted net income and adjusted diluted EPS excluded a $0.2
million tax benefit for adoption of the new federal tax rates as a
result of the tax reform legislation adopted in December 2017.

Adjusted EBITDA (defined as consolidated net (loss) income before net
interest income, income taxes, depreciation and amortization, goodwill
and other impairments and other charges associated with the revaluation
of the commercial nuclear utility business, and a nonrecurring
restructuring charge, where applicable) was approximately the same
during the fiscal 2019 and fiscal 2018 fourth quarters.

Full Year Fiscal 2019 Review

     
($ in millions except per share data) FY19 FY18 Change
Net sales $ 91.8 $ 77.5 $ 14.3
Gross profit $ 21.9 $ 17.0 $ 4.9
Gross margin 23.9 % 21.9 %
Operating loss $ (2.4 ) $ (13.9 ) $ 11.5
Operating margin (2.6 %) (18.0 %)
Net loss $ (0.3 ) $ (9.8 ) $ 9.5
Diluted EPS $ (0.03 ) $ (1.01 ) $ 0.98
 
Non-GAAP financial measures:
Adjusted operating profit $ 4.0 $ 1.5 $ 2.5
Adjusted operating margin 4.4 % 1.9 %
Adjusted net income $ 5.0 $ 1.8 $ 3.2
Adjusted diluted EPS $ 0.51 $ 0.18 $ 0.33
Adjusted EBITDA $ 7.1 $ 4.2 $ 2.9
Adjusted EBITDA margin 7.7 % 5.4 %
 

Refer to pages 11 and 12 of this press release.

The improvement in operating loss, operating margin, net loss and
diluted EPS during fiscal 2019 compared with fiscal 2018 was primarily
driven by the change in impairment charges for goodwill and intangible
and other long-lived assets. Adjusted net income and adjusted EPS
exclude such charges as well as other items, resulting in a $3.2 million
and $0.33 improvement over the prior year, respectively, driven by
higher sales and improved operating performance.

International sales grew 27% to $32.4 million in fiscal 2019 and
represented 35% of total sales, compared with $25.6 million, or 33% of
sales in the prior year. Sales to the U.S. grew 14% to $59.4 million, or
65% of fiscal 2019 net sales, compared with $51.9 million, or 67% of
fiscal 2018 net sales.

The increase in gross profit and margin were driven by higher volume
stemming from the 18% increase in sales when compared with the prior
year, as well as ongoing improvement to backlog quality and project mix,
partially offset by higher production costs.

SG&A in fiscal 2019 was $17.9 million, up 13%, or $2.1 million. The
increase in SG&A was primarily due to higher compensation costs for new
personnel, higher sales-related costs, and higher performance-based
compensation. As a percent of sales, SG&A was 20% for both fiscal 2019
and 2018.

Similar to the fourth quarter, Graham’s effective tax rate for fiscal
2019 was not meaningful due to the non-deductibility of the goodwill
portion of the commercial nuclear utility business write down. Fiscal
2018 results were impacted by a $0.8 million favorable adjustment to
income taxes upon implementation of the 2017 U.S. Tax Cuts and Jobs Act,
which also had a beneficial impact on the fiscal 2019 overall effective
tax rate.

Fiscal 2019 adjusted net income and adjusted diluted EPS excluded $5.3
million of net-of-tax impairment charges. Fiscal 2018 adjusted net
income and adjusted diluted EPS excluded $12.0 million of net-of-tax
impairment charges, $0.2 million of net-of-tax bad debt charges
associated with the revaluation of the Company’s commercial nuclear
utility business, $0.2 million for a net-of-tax nonrecurring
restructuring charge and a $0.8 million tax benefit for adoption of the
new federal tax rates as a result of the 2017 U.S. Tax Cuts and Jobs Act.

Adjusted EBITDA for fiscal 2019 benefited from higher revenue and gross
margin improvement, partially offset by investments in SG&A.

Balance Sheet Strength Supports Growth

Cash, cash equivalents and investments at March 31, 2019 were $77.8
million, up from $76.5 million at March 31, 2018.

Fiscal 2019 cash provided by operations was $7.9 million, compared with
$8.5 million in fiscal 2018. The decrease was primarily the result of
timing of changes in working capital, partially offset by higher
adjusted net income.

Capital expenditures were $2.1 million in fiscal 2019, approximately the
same level as the prior year. The Company expects capital expenditures
for fiscal 2020 to be between $2.5 million and $2.8 million, the
majority of which are expected to be used for productivity enhancements.

Dividend payments were $3.8 million and $3.5 million in fiscal 2019 and
fiscal 2018, respectively.

Graham had neither borrowings under its credit facility, nor any
long-term debt outstanding, at March 31, 2019.

Backlog Level Indicates Continued Growth

Backlog at the end of fiscal 2019 was $132.1 million, near its record
level of $133.6 million at the end of the third quarter, and up 12% from
$117.9 million at the end of the prior fiscal year. Excluding the
commercial nuclear utility business which is held for sale, backlog at
the end of fiscal 2019 was $124.1 million.

The Company believes that its backlog mix by industry highlights the
success of its diversification strategy to increase sales to the U.S.
Navy. Backlog by industry at March 31, 2019 was approximately:

  • 49% for U.S. Navy projects
  • 22% for refinery projects
  • 19% for chemical/petrochemical projects
  • 7% for power projects, including commercial nuclear utility (of which
    89% is for the business held for sale)
  • 3% for other industrial applications

The expected timing for the Company’s backlog to convert to sales is as
follows:

  • Within next 12 months: 55% to 60%
  • Within 12 to 24 months: 10% to 15%
  • Beyond 24 months: 25% to 35%

Orders were $21.6 million in the fourth quarter of fiscal 2019, driven
by the refining and chemical/petrochemical industries in North America.
In the fiscal 2019 fourth quarter, orders from U.S. and international
customers were nearly evenly split with $11.1 million from the U.S and
$10.5 million from international markets. This compares with total
orders of $43.5 million in the fourth quarter of fiscal 2018, of which
81% were from the U.S. and 19% were from international markets. The
fiscal 2018 fourth quarter orders included $24.5 million, or 56% of the
total, from other commercial, industrial and defense markets, which
includes the U.S. Navy.

Orders for fiscal 2019 were $101.2 million, compared with $112.2 million
in fiscal 2018. Excluding orders from the Company’s other commercial,
industrial and defense markets which benefited from significant U.S.
Navy orders in fiscal 2018, orders from the Company’s other markets
increased by $15.9 million in fiscal 2019, driven by orders from the
chemical/petrochemical industry which were up $20.8 million. Orders from
U.S. customers were $62.2 million, or 61% of the total, and orders from
international markets were $39 million, or 39% of the total, in fiscal
2019. Approximately 35% of international orders were from the Middle
East, 27% were from Canada and 27% were from Asia. In fiscal 2018, 69%
of orders were from U.S. customers and 31% were international. The
fiscal 2019 book-to-bill ratio was 1.1x.

Graham expects that the balance between domestic and international
orders, as well as orders by industry, will continue to be variable
between quarters.

Introducing FY 2020 Guidance

Graham is also announcing its fiscal 2020 guidance, as follows:

  • Revenue anticipated to be between $95 million and $100 million,
    excluding the commercial nuclear utility business which is held for
    sale. For fiscal 2019, consolidated revenue excluding that business
    was $83.5 million.
  • Gross margin expected to be between 23% and 24%
  • SG&A expense expected to be between $17 million and $18 million
  • Effective tax rate anticipated to be approximately 20%

Mr. Lines concluded, “I believe that the energy cycle continues to show
signs of recovery, which is embedded in our fiscal 2020 expectation for
14% to 20% revenue growth for our ongoing business. Our strong pipeline
of projects combined with the Navy work currently in backlog provides us
solid confidence in our outlook for the year. Additionally, we remain
very active in the pursuit of strategic opportunities to put our capital
to work and complement our organic growth initiatives.”

Webcast and Conference Call

Graham’s management will host a conference call and live webcast today
at 11:00 a.m. Eastern Time to review its financial condition and
operating results for the fourth quarter and full year fiscal 2019, as
well as its strategy and outlook. The review will be accompanied by a
slide presentation which will be made available immediately prior to the
conference call on Graham’s website at www.graham-mfg.com
under the heading “Investor Relations.” A question-and-answer session
will follow the formal presentation.

Graham’s conference call can be accessed by calling (201) 689-8560.
Alternatively, the webcast can be monitored on Graham’s website at www.graham-mfg.com
under the heading “Investor Relations.”

A telephonic replay will be available from 2:00 p.m. ET today through
Thursday, June 6, 2019. To listen to the archived call, dial (412)
317-6671 and enter conference ID number 13689951. A transcript of the
call will be placed on Graham’s website, once available.

ABOUT GRAHAM CORPORATION

Graham is a global business that designs, manufactures and sells
critical equipment for the energy, defense and chemical/petrochemical
industries. Energy markets include oil refining, cogeneration, and
alternative power. For the defense industry, the Company’s equipment is
used in nuclear propulsion power systems for the U.S. Navy. Graham’s
global brand is built upon world-renowned engineering expertise in
vacuum and heat transfer technology, responsive and flexible service and
unsurpassed quality. Graham designs and manufactures custom-engineered
ejectors, vacuum pumping systems, surface condensers and vacuum systems.
Graham’s equipment can also be found in other diverse applications such
as metal refining, pulp and paper processing, water heating,
refrigeration, desalination, food processing, pharmaceutical, heating,
ventilating and air conditioning. Graham’s reach spans the globe and its
equipment is installed in facilities from North and South America to
Europe, Asia, Africa and the Middle East.

Graham routinely posts news and other important information on its
website, www.graham-mfg.com,
where additional comprehensive information on Graham Corporation and its
subsidiaries can be found.

Safe Harbor Regarding Forward Looking Statements

This news release contains 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.

Forward-looking statements are subject to risks, uncertainties and
assumptions and are identified by words such as “expects,” “estimates,”
“confidence,” “projects,” “typically,” “outlook,” “anticipates,”
“believes,” “appears,” “could,” “opportunities,” “seeking,” “plans,”
“aim,” “pursuit,” “look towards” and other similar words. All statements
addressing operating performance, events, or developments that Graham
Corporation expects or anticipates will occur in the future, including
but not limited to, expected expansion and growth opportunities within
its domestic and international markets, anticipated revenue, the timing
of conversion of backlog to sales, market presence, profit margins, tax
rates, foreign sales operations, its ability to improve cost
competitiveness, customer preferences, changes in market conditions in
the industries in which it operates, changes in commodities prices, the
effect on its business of volatility in commodities prices, changes in
general economic conditions and customer behavior, forecasts regarding
the timing and scope of the economic recovery in its markets, its
acquisition and growth strategy and the expected performance of Energy
Steel & Supply Co. and its operations in China and other international
locations, are forward-looking statements. Because they are
forward-looking, they should be evaluated in light of important risk
factors and uncertainties. These risk factors and uncertainties are more
fully described in Graham Corporation’s most recent Annual Report filed
with the Securities and Exchange Commission, included under the heading
entitled “Risk Factors.”

Should one or more of these risks or uncertainties materialize, or
should any of Graham Corporation’s underlying assumptions prove
incorrect, actual results may vary materially from those currently
anticipated. In addition, undue reliance should not be placed on Graham
Corporation’s forward-looking statements. Except as required by law,
Graham Corporation disclaims any obligation to update or publicly
announce any revisions to any of the forward-looking statements
contained in this news release.

FINANCIAL TABLES FOLLOW.

 
Graham Corporation
Fourth Quarter Fiscal 2019
Consolidated Statements of Operations

(Amounts in thousands, except per share data)

 
  Three Months Ended   Year Ended
March 31, March 31,
       
2019 2018 % Change 2019 2018   % Change
Net sales $ 23,641 $ 22,178 7 % $ 91,831 $ 77,534 18 %
Cost of products sold   18,843     17,218   9 %   69,922     60,559   15 %
Gross profit 4,798 4,960 (3 %) 21,909 16,975 29 %
Gross margin 20.3 % 22.4 % 23.9 % 21.9 %
 
Other expenses and income:
Selling, general and administrative 4,123 4,171 (1 %) 17,641 15,533 14 %
Selling, general and administrative – amortization 59 59 0 % 237 236 0 %
Goodwill and other impairments 6,449 N/A 6,449 14,816 (56 %)
Restructuring charge         N/A       316   (100 %)
Operating (loss) profit   (5,833 )   730   N/A   (2,418 )   (13,926 ) (83 %)
Operating margin (24.7 %) 3.3 % (2.6 %) (18.0 %)
 
Other income (205 ) (120 ) N/A (823 ) (478 ) 72 %
Interest income (418 ) (151 ) 177 % (1,462 ) (606 ) 141 %
Interest expense   4     4   0 %   12     12   0 %
(Loss) income before provision for income taxes (5,214 ) 997 N/A (145 ) (12,854 ) (99 %)
(Benefit) provision for income taxes   (661 )   164   N/A   163     (3,010 ) N/A
Net (loss) income $ (4,553 ) $ 833   N/A $ (308 ) $ (9,844 ) (97 %)
 
Per share data:
Basic:
Net (loss) income $ (0.46 ) $ 0.09   N/A $ (0.03 ) $ (1.01 ) (97 %)
Diluted:
Net (loss) income $ (0.46 ) $ 0.09   N/A $ (0.03 ) $ (1.01 ) (97 %)
 
Weighted average common shares outstanding:
Basic 9,837 9,772 9,823 9,764
Diluted 9,837 9,781 9,823 9,764
 
Dividends declared per share $ 0.10   $ 0.09   $ 0.39   $ 0.36  
 
 
 
N/A: Not Applicable
 
 
Graham Corporation
Fourth Quarter Fiscal 2019
Consolidated Balance Sheets

(Amounts in thousands, except per share data)

 
March 31,
2019 2018
Assets
Current assets:
Cash and cash equivalents $ 15,021 $ 40,456
Investments 62,732 36,023
Trade accounts receivable, net of allowances ($33 and $339
at March 31, 2019 and 2018, respectively) 17,582 17,026
Unbilled revenue 7,522 8,079
Inventories 24,670 11,566
Prepaid expenses and other current assets 1,333 772
Income taxes receivable 1,073 1,478
Assets held for sale   4,850      
Total current assets 134,783 115,400
Property, plant and equipment, net 17,071 17,052
Prepaid pension asset 4,267 4,369
Goodwill 1,222
Permits 1,700
Other intangible assets, net 3,388
Other assets   149     202  
Total assets $ 156,270   $ 143,333  
Liabilities and stockholders’ equity
Current liabilities:
Current portion of capital lease obligations $ 51 $ 88
Accounts payable 12,405 16,151
Accrued compensation 5,126 4,958
Accrued expenses and other current liabilities 2,933 2,885
Customer deposits 30,847 13,213
Liabilities held for sale   3,525      
Total current liabilities 54,887 37,295
Capital lease obligations 95 55
Deferred income tax liability 1,056 1,427
Accrued pension liability 662 565
Accrued postretirement benefits   604     642  
Total liabilities   57,304     39,984  
Stockholders’ equity:
Preferred stock, $1.00 par value, 500 shares authorized
Common stock, $.10 par value, 25,500 shares authorized

10,650 and 10,579 shares issued and 9,843 and 9,772 shares
outstanding
at March 31, 2019 and 2018,

respectively 1,065 1,058
Capital in excess of par value 25,277 23,826
Retained earnings 93,847 99,011
Accumulated other comprehensive loss (8,833 ) (8,250 )
Treasury stock (807 shares at each of March 31, 2019 and 2018)   (12,390 )   (12,296 )
Total stockholders’ equity   98,966     103,349  
Total liabilities and stockholders’ equity $ 156,270   $ 143,333  
 

Contacts

For more information:
Jeffrey F. Glajch
Vice
President – Finance and CFO
Phone: (585) 343-2216
jglajch@graham-mfg.com

Deborah K. Pawlowski / Karen L. Howard
Kei Advisors LLC
Phone:
(716) 843-3908 / (716) 843-3942
dpawlowski@keiadvisors.com
/ khoward@keiadvisors.com

Read full story here

Cannabis

One Year of Medical Cannabis in the UK, Data by Grow Biotech

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Photo source: southeusummit.com

 

The 1st of November 2019 will mark the one year anniversary of the legalisation of medical cannabis in the United Kingdom. A year after Charlotte Caldwell’s tireless campaign to obtain life-saving medication for her son Billy catapulted medical cannabis onto the public agenda, the cost of prescriptions has dropped substantially while the number of scripts written has increased, but more needs to be done before it can be more widely offered by the National Health Service (NHS).

The average price of a month’s supply of medical cannabis imported through Logist has dropped from £750 to £550, reducing the average monthly prescription cost by 27%, while the average price per gram has also fallen by 25%. The reduction in cost is a combination of increased volume (meaning the costs associated with importing products is lower per prescription) and the increased availability of different products.

The type of medical specialist consultants writing prescriptions for medical cannabis has also diversified to include pain, oncology and neurology. There has also been a broadening in the delivery method for medical cannabis requested by specialist consultants to include different cannabis oils, pills and flowers, which is largely a result of the greater range of products available. Since February, Logist has imported approximately 1.5kg of flower to the UK.

The vast majority of medical cannabis has made its way to the UK thanks to Logist, a joint-venture formed between specials importer IPS Pharma, and Grow Biotech, the UK’s leading medical cannabis market access specialists.

Timeline of Events

  • 1st November 2018 – New regulations introduced, which allowed for the import and prescription of cannabis-based medicines
  • 14 February 2019 – The first bulk import of medical cannabis in the UK and first patients to receive medication from Logist
  • May 2019 – EU based bio-pharmaceutical company MGC Pharma appoints Logist
  • August 2019 – NICE publish interim report on medical cannabis
  • August 2019 – American medical cannabis giant Columbia Care announces that it will fund and provide medicine for clinical trials in the UK
  • September 2019– Leading Canadian company Aurora appoints IPS Pharma and Grow Biotech as importer and distributor for the UK market
  • September 2019 – Medical cannabis consultant informs Logist that a patient is no longer using opioids to manage their condition following treatment with medical cannabis

Looking forward to the near future, Chief Operating Officer of Grow Biotech, Hari Guliani, said, “Over the next twelve months we expect the UK’s medical community as a whole to take on the challenge of understanding how cannabis might help their patients. We are expecting leading consultants to publish papers on the impact they have seen on their patients, as well as evidence gathered through MHRA-approved trials. This will significantly improve the data available to regulators, policymakers and NICE.”

At present, it is only available on the NHS in extremely limited circumstances and is only obtainable through a prescription written by a specialist consultant in the private sector. NICE (The National Institute of Health Care Excellence) has advised that more clinical trials need to be undertaken in the UK and overall costs of medication need to be reduced before medical cannabis can be prescribed by NHS consultants. However, new medical trials are now underway and prices associated with the import of medical cannabis are falling dramatically, giving hope to the thousands of patients who are still struggling to access life-changing medication.

Another major change which cannot be overlooked is funding for the UK’s young medical cannabis industry. Ben Langley, Chief Executive Officer of Grow Biotech explained that, “We have seen a massive increase in funding for UK businesses operating within the medical cannabis space, especially from North America. In addition to the £5m Grow Biotech has raised over the last two years, there have been notably well received fundraises for Emmac Life Sciences PLC (£11m raised in March 2019) and for Oxford Cannabinoid Therapeutics ($10m in April 2019). This trend is likely to accelerate as European medical cannabis gradually establishes itself as an attractive asset class for global capital and European equity exchanges start to open their doors to cannabis companies.

Both Ben Langley and Hari Guliani are available for comment and interview.

 

SOURCE Grow Biotech

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Cannabis

GNCC Capital, Inc. – Pending Transaction

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GNCC Capital, Inc. (OTC: GNCP) (“The Company” or “GNCC”) advises that the new Board of Directors is in the process of consummating a further transaction in the Cannabis Sector and in South Africa.

Given that this is a related party transaction; they are awaiting ratification from an Independent party.

Upon consummation of this transaction; the new GNCC Directors will actively engage with shareholders. This decision was taken given that this transaction materially affects the size and scope of the Company’s South African Cannabis interests.

We reiterate that both Ms. Allen and Mr. Cox have recognized the need to; and have committed to expend the next two to three weeks in shareholder engagement. This is to ensure that all shareholders and investors become familiar with the Company’s new business operations, opportunities, Licensing and the Cannabis Industry in South Africa.

Forward-Looking Statements:-This press release may contain forward-looking statements. The words “believe,” “expect,” “should,” “intend,” “estimate,” “projects,” variations of such words and similar expressions identify forward-looking statements, but their absence does not mean that a statement is not a forward-looking statement. These forward-looking statements are based upon the Company’s current expectations and are subject to a number of risks, uncertainties and assumptions. The Company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. Among the important factors that could cause actual results to differ significantly from those expressed or implied by such forward-looking statements are risks that are detailed in the Company’s filings, which are on file with the OTC Markets Group.

SOURCE GNCC Capital, Inc.

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Cannabis

Empower Clinics Provides Corporate Updates Highlighting Triple Digit Patient Growth and Subsidiary Sun Valley Health Launches New Modalities and Patient Services

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EMPOWER CLINICS INC. (CSE: CBDT) (OTC: EPWCF) (Frankfurt 8EC) (“Empower” or the “Company“), a vertically integrated and growth-oriented CBD life sciences company, a multi-state operator of medical health & wellness clinics, a CBD product producer and operator of an extraction facility in Oregon, is pleased to announce it is launching seven new modalities and services for patients in the Sun Valley Health clinics commencing Monday October 14th, 2019.

The Company also has patient visits in corporate clinics increase by triple digits, with September 2019 patients seen increasing by 307% to 1,884 versus September 2018 with 614 patients seen.

“The tremendous year-over-year increase in patient visits is a testament to the operating strengths and patient management demonstrated by our clinic team members, each and every day,” said Steven McAuley, CEO of Empower. “Their passion for patient wellbeing and the use of numerous communication tools ensures world-class service is provided throughout the entire patient journey.”

As part of the Company’s continued expansion of our health & wellness clinic model, we have already set up retail CBD product sales in-clinic, and now we have launched expanded physician based services.

New Modalities and Services

  • Physician’s CBD Enhanced Massage, Acupuncture, or Cupping Sessions
  • CBD-Cannabis-Supplement Consumption & Coaching Consultation
  • Introduction to Alternative Health and Cannabinoid Therapies by a Physician
  • Comprehensive Naturopathic Patient Analysis & Consultation
  • Dietary Antigen Testing, Physician Consultation/Action Plan, & Concierge Blood Draw
  • Neurotransmitter (urine) Profile & Physician Consultation/Action Plan
  • Spectracell Micronutrient Test & Physician Consultation/Action Plan

“By offering our new suite of laboratory testing, alternative health consulting, and CBD therapies we are able to address the needs of our current patients and serve the community outside of cannabis that are seeking alternative health care,” states Dustin Klein, Director & VP Business Development. “Incorporating our new modalities, high quality vitamins, supplements, and CBD products into our network of clinics is a natural progression toward our goal of becoming the nation’s premier alternative healthcare provider.”

Additional UPDATES

  • New Modalities and Patient Services The Company continues to see patient visits in corporate clinics increase by triple digits, with September 2019 patients seen increasing by 307% to 1,884 over July 2018 614 patients seen.

  • Sun Valley Health Franchise Sun Valley Health www.sunvalleyhealth.com has been actively participating in various franchise and cannabis expos in St. LouisChicago and Houston to market the Sun Valley Health franchise program, attracting numerous qualified candidates for available territory locations. The Company has accepted many applications and has provided the Franchise Disclosure Document (FDD) to qualified applicants in anticipation of completing the first initial territory sales.

 

SOURCE Empower Clinics Inc.

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