Demonstrates scalability and recurring revenue potential in the Colombian and Latin American markets
TORONTO, June 14, 2018 /CNW/ - Khiron life Sciences Corp. ("Khiron" or the "Company") (TSXV: KHRN), a Canadian integrated medical cannabis company with its core operations in Colombia, announced today that the Company has formed an exclusive strategic alliance with Latin American Institute of Neurology and the Nervous System ("ILANS"), one of the most respected, fastest growing, and largest health service provider networks in Colombia and Latin America. ILANS represents an estimated 100,000 patients, with the majority of these patients being located in Colombia.
Alvaro Torres, Chief Executive Officer of Khiron, stated, "This exclusive strategic alliance with ILANS represents a significant increase in the size of the potential patient base for Khiron. From the beginning, Khiron's core focus has been to address the medical needs of patients by supplying high-grade medical cannabis products and forming strategic alliances to build and educate our patient base with the objective of developing and scaling recurring revenue streams.
In combination with the recently announced alliances with the Colombian Association of Internal Medicine (ACMI) and the Colombian Association of Neurology (ACN), we conservatively estimate that our distribution network can access over 500,000 patients, or 9% of the addressable 5.6 million total potential patients in Colombia (source: QuintilesIMS). We will continue to rapidly expand our patient network through these alliances and will evaluate further cultivation and production expansion based on the greater than initially forecasted market demand."
The alliance provides for research, technological product development, and evaluation and commercialization of products related to all aspects of medical cannabis.
Key commercial elements of the alliance with ILANS include:
- Collaborative research projects, consultancies, and advice on medical, pharmacological and educational processes related to psychoactive and non-psychoactive medical cannabis.
- Referral arrangements for treatment of patients with chronic pain, epilepsy, post-chemotherapy nausea, sleep disorders, Parkinson's disease, Tourette's syndrome, and multiple sclerosis. The parties will also evaluate programs for additional diseases or pathologies.
- Sale and supply agreements for medical grade cannabis for patients by Khiron.
- ILANS has provided Khiron an exclusivity for eight years. The parties will have mutual access and ownership of all intellectual property created.
Liquidity Service Providers
The Company has retained Trapeze Capital Corp. ("Trapeze") and Integral Wealth Securities Limited ("Integral") both of Toronto, Canada to provide market-making services in accordance with the policies of the TSX Venture Exchange ("TSX-V"). Under the terms of their agreements, Trapeze and Integral will each receive cash compensation of $5,500 per month and will not receive any common shares or options of Khiron. Trapeze and Integral do not own any securities of Khiron. However, Trapeze and Integral and their clients may acquire a direct interest in the securities of Khiron. The parties are unrelated and unaffiliated entities. Trapeze and Integral are members of the Investment Industry Regulatory Organization of Canada, participating organizations of the Toronto Stock Exchange and members of TSX-V. The capital and securities required for any trade undertaken by Trapeze and Integral as principals will be provided by Trapeze and Integral. The agreement with Trapeze is for an initial term of 180 days, with automatic renewals for a further 180 days unless terminated. The agreement with Integral is for an initial term of 90 days.
About the Latin American Institute of Neurology and the Nervous System
Latin American Institute of Neurology and the Nervous System ("ILANS") is a network of health service providers. In 2017, ILANS treated 100,000 patients with neurological, psychiatric, respiratory, urological and orthopedic diseases, among others. ILANS patients are serviced by the Colombian health system and other countries.
Services are provided through programs with content, objectives and budgets. ILANS has various clinics, which bring together specialists and technicians from specific neurosciences and related specialties. The activities of each clinic provide for medical and surgical treatments. Patient clinical information is utilized develop diagnostic studies from which medical and surgical treatments are derived.
About Khiron Life Sciences Corp.
Khiron is a Canadian integrated medical cannabis company with its core operations in Colombia, and is fully licenced in Colombia for the cultivation, production, domestic distribution, and international export of both tetrahydrocannabinol (THC) and cannabidiol (CBD) medical cannabis. Khiron combines leading international scientific expertise, agricultural advantages, and branded product market entrance experience to address the unmet medical needs in a market of over 620 million people in Latin America.
Further information on Khiron Life Sciences can be found at www.khiron.ca.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This press release may contain certain forward-looking information and statements ("forward-looking information") within the meaning of applicable Canadian securities legislation, that are not based on historical fact, including without limitation statements containing the words "believes", "anticipates", "plans", "intends", "will", "should", "expects", "continue", "estimate", "forecasts" and other similar expressions. Readers are cautioned to not place undue reliance on forward-looking information. Actual results and developments may differ materially from those contemplated by these statements. Khiron undertakes no obligation to comment analyses, expectations or statements made by third-parties in respect of Khiron, its securities, or financial or operating results (as applicable). Although Khiron believes that the expectations reflected in forward-looking information in this press release are reasonable, such forward-looking information has been based on expectations, factors and assumptions concerning future events which may prove to be inaccurate and are subject to numerous risks and uncertainties, certain of which are beyond Khiron's control, including the risk factors discussed in Khiron's Filing Statement which is available on Khiron's SEDAR profile at www.sedar.com. The forward-looking information contained in this press release is expressly qualified by this cautionary statement and are made as of the date hereof. Khiron disclaims any intention and has no obligation or responsibility, except as required by law, to update or revise any forward-looking information, whether as a result of new information, future events or otherwise.
SOURCE Khiron Life Sciences Corp.
For further information: Contacts: Darren Collins, Chief Financial Officer, T: +1 (705) 527-3564, E: [email protected]; Canada Investor Relations: Nicole Marchand, GRIT Capital, T: +1 (416) 428-3533, E: [email protected]; U.S. Investor Relations: Lisa Wilson, In-Site Communications, Inc., T: +1 (917) 543-9932, E: [email protected]