Medical Cannabis Innovator Khiron Continues Global Expansion as Industry Leader in Europe and Latin America

Khiron is serving a record number of patients with Khiron products globally at its medical treatment clinics

TORONTO, June 28, 2022 /CNW/ – Khiron Life Sciences Corp. (TSXV: KHRN) (OTCQX: KHRNF) (Frankfurt: A2JMZC), the world leader in medical cannabis, continues to expand the end-to-end solution Khiron through Latin America and Europe. Khiron’s growth aligns with its mission to improve consumers’ quality of life through its global network of medical cannabis treatment clinics.

Khiron Life Sciences Corp. (CNW Group/Khiron Life Sciences Corp.)

Khiron is serving a record number of patients treated with Khiron products worldwide. The company recently reached a cumulative stock of over 100,000 bottles of medical cannabis sold. This network of medical treatment clinics allows Khiron to collect evidence and conduct studies on the use of medical cannabis. Breakthrough analysis of medical cannabis benefits sets Khiron apart from all other cannabis companies in today’s market

Khiron released record numbers for the first quarter of 2022 which included revenue of $4.6 millionan increase of 65% compared to the first quarter of 2021, as well as a record turnover in medical cannabis of more than $2.6 million in the first quarter of 2022, an increase of 470% compared to the previous year. The first quarter of 2022 showed an operational cash outflow of 2.8 million against a total receivable of 4.4 million. Khiron continues to grow thanks to the infrastructure the company has built and some of the newer operations are already becoming profitable and EBITDA is positive. Khiron is cutting expenses, selling high-margin products and being disciplined in its approach to expansion.

In countries like Colombia and Germany, Khiron benefits from the ability of patients to use their health insurance for treatment at its medical cannabis clinics. This illustrates the opportunity on the way forward for a global cannabis company like Khiron to take advantage of expanding health insurance that will continue to cover more and more markets.

Below is a status of Khiron’s business developments in 2022, marking a year of growth for Khiron’s expansion in both Europe and Latin America:

State on Europe (the UK and Germany):

  • Khiron has established market leadership in the UK with its first two products on the market, and its THC-dominant KHIRON 20/1 strain is one of the best-selling medically prescribed products on the UK market.

  • Europe, where Khiron is currently growing through an asset light strategy, represents a big market opportunity for Khiron as other countries beyond the UK legalize medical cannabis. The UK has a potential of at least 1 million medical cannabis patients and Germany has the potential for over one million patients by 2024. Additionally, Germany offers comprehensive insurance coverage for medical cannabis.

  • Khiron acquired Pharmadrug GmbH. The acquisition provides Khiron with a European manufacturing and distribution center for cannabinoid medicines with EU-GMP certification. This will have a direct positive impact on revenue and higher gross margins allowing Khiron to keep wholesale fees in-house. These fees vary between 20 and 30%. The long-established German company will help expand Khiron’s product portfolio with new dosage formats and bring Khiron’s full-spectrum extracts to Germany and the UK to develop the patient base

  • In Q1 2022, Europe (the UK and Germany) accounted for 53% of all medical cannabis revenue, up from 10% in Q1 2021.

  • Europe accounted for 33% of Khiron’s medical cannabis revenue, at more than CAD 1.5 million during 2021.

  • Khiron also announced a new product, KHIRIOX 25/1 THC Dominant Full Spectrum Extract, which will be available to pharmacies and patients in Germany and the UK in the near future. KHIRIOX 25/1 combines the medicinal properties and areas of application of established THC isolate formulations (dronabinol) with the specific advantages of a full-spectrum extract, which may have fewer side effects and is better tolerated by the patients.

State on Latin America:

Colombia

  • Khiron foresees a positive environment with the election of the new president of Colombia, Gustavo Petrowhich reiterated its commitment to the consolidation of the medical cannabis industry and recognizes the potential of medical cannabis to reduce costly therapies already in place.

  • Khiron is the leader in medical cannabis in Latin America with its unique vertically integrated approach and leverage of insurance coverage on its clinics.

  • Colombia is the only country in Latin America with universal health insurance coverage for medical cannabis. Over 82% of Khiron sales were sold through insurance coverage and over 84% of sales were sold to returning patients.

  • On May 31st 2022, Khiron broke the record of 10,000 units of cannabis per month, achieving a positive net profit in its Colombian clinic business.

  • Khiron owns and operates 6 Zerenia clinics in Colombia who have the capacity to assist more than 1,000 patients per day through physical and virtual appointments.

  • In June 2022, Khiron opened its first retail pharmacy, fully licensed to dispense medical cannabis products to patients outside of the company’s clinic network. Three weeks after it opened, it sold 197 prescriptions.

Peru

  • Khiron owns and operates two Zerenia Clinics in Peru and by the end of July 2022Khiron will open two additional clinics.

  • Sales of Khiron products in Peru have been growing steadily and Khiron is expanding access to Khiron products in pharmacies and pharmacies. Sales increased by more than 75% between the fourth quarter of 2021 and the first quarter of 2022.

  • Khiron has obtained the health records for Khiriox, THC-rich products that will soon be launched on the market. These products will be available on pharmacy shelves across the country, allowing quick and safe access to all patients.

  • With the soon-to-be-launched CBD ointment, Khiron is positioning itself in Peru by offering the broadest and most comprehensive portfolio of registered products containing CBD and THC derived from a full-spectrum extract.

Mexico

  • In March 2022Khiron has signed a partnership with Teleton, allowing it to establish its medical cannabis clinics, Zerenia, within Teleton’s network across Mexico and to distribute Khiron products in Teleton pharmacies. Teleton has 24 medical centers (22 rehabilitation centers, 1 autism center and 1 children’s cancer hospital) located across the country, and approximately 600,000 patients with disability, cancer and autism.

  • Khiron also has a partnership with from Mexico best university, Tecnologico de Monterrey, where Khiron provides medical training for the ethical and safe prescription of medical cannabis, is launching its third course this year. To date, nearly 1,000 doctors have been trained through this partnership.

Brazil

  • Brazil is the newest market for Khiron’s Latin American expansion. Between the end of the second quarter and the beginning of the third quarter of 2022, Khiron will open its first Zerenia clinic in Rio de Janeiro.

  • The company also expects to achieve its first high THC import in Q3 2022.

About Khiron Life Sciences Corp.

Khiron is one of the world’s leading medical cannabis companies with expanding operations in Latin America and Europe. Leveraging wholly-owned medical health clinics and proprietary telemedicine platforms, Khiron offers an end-to-end solution combined with a patient-centric approach, physician training programs, scientific expertise and product innovation, focusing on creating access to drive prescriptions, brand loyalty with patients worldwide, Khiron is growing its business through Colombia, GermanyUK, Peruand Braziland is well placed to begin operations in Mexico. Khiron is led by Co-Founder and Managing Director, Alvaro Torreswith an experienced and diverse management team and board of directors, headquartered in Bogata, Colombia.

Visit Khiron online at https://investors.khiron.ca

LinkedIn https://www.linkedin.com/company/khiron-life-sciences-corp/

Caution Regarding Forward-Looking Statements

This press release may contain “forward-looking information” within the meaning of applicable securities laws. All information contained in this document that is not historical in nature constitutes forward-looking information. The forward-looking information and statements contained herein reflect management’s current beliefs and are based on information currently available and on assumptions that management believes are reasonable. These assumptions include, but are not limited to, assumptions regarding future regulatory developments and economic conditions, the Company’s ability to continue to grow and reduce costs. The Company undertakes no obligation to update or revise any forward-looking information, whether as a result of new information, estimates or opinions, future events or results or otherwise, or to explain any material differences between subsequent actual events and such forward-looking information, except as required by applicable law.

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SOURCEKiron Life Sciences Corp.

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Mary I. Bruner