Khiron Life Sciences Expands to Second Latin America Cultivation Jurisdiction on Closing of Agreement with Dayacann to Enter Chilean Medical Cannabis Market
Khiron Life Sciences Corp. (TSXV:KHRN), an integrated medical cannabis company with its core operations in Colombia, announced today that the Company has closed the previously announced MOU with Dayacann, holder of Chile’s first medical cannabis cultivation license. As the dominant medical cannabis company in Latin America, this agreement expands on Khiron’s multi jurisdiction cultivation strategy, securing access to cannabis cultivation for the Company’s use in Chile, participation in clinical trials, and access to commercialize products to meet the needs of a market of 1.8 Million patients across the country.
As previously announced on September 27, 2018, by entering into an MOU with Dayacann, Khiron identified its intent to operate in the Chilean market with all applicable regulatory approvals and cultivation capacity, to participate in clinical trials and to develop and distribute medical cannabis products in Chile. The Company has now completed an agreement with Dayacann to deliver on this strategy, encompassing clinical trials, cultivation and the commercialization of Khiron products to serve the Chilean market, all under an initial 2-year agreement, which gives the Company access to a cultivation capacity that can meet the needs of more than 45.000 patients annually. This agreement is subject to TSX approval.
Alvaro Torres, Co-founder and Chief Executive Officer, Khiron life Sciences, commented; ” As part of our multi-jurisdiction cultivation strategy, the closing of this important agreement gives Khiron a first mover advantage in meeting legislative cultivation requirements, and commercializing medical cannabis products. Partnering with Dayacann allows us to accelerate entry into this market and to further our stated objective to be the medical cannabis market leader in Latin America.”
Nicolás Dormal, Chief Executive Officer, Dayacann Spa, added, “It’s extremely important that Khiron chose Chile for their expansion. This agreement will create quality jobs in our country and boost research on cannabinoid medicines, contributing to science and an emerging therapy that is bringing relief to many people. The Chilean public is already accessing medicinal cannabis through home growing and select formulations in the market. However, new and lower-cost alternative medicines will help diversify options for Chilean patients, giving greater and more equal access to meet their health needs.”
Chile is located on the western portion of South America and has a population of 18 million people. With a GDP of over US$24,000 per capita, Chile has the strongest economy in Latin America and is considered the most stable and prosperous nation in the region. The market has an established cannabis culture and represents a medical cannabis market of 1.8 million potential patients (Source: Quintiles IMS). Chile was the first country in Latin America to adopt legislation to allow the cultivation of cannabis for medicinal purposes.
Dayacann is a joint venture entity established by Fundacion Daya and its Australian partner AusCann Group Holdings Ltd. Dayacann has been cultivating for 2 years and holds the only medical cannabis cultivation license to be issued in Chile.
Khiron Life Sciences Corp. is positioned to be the dominant integrated medical cannabis company in Latin America. Khiron has core operations in Colombia and is fully licensed in the country for the cultivation, production, domestic distribution, and international export of both THC (tetrahydrocannabinol) and CBD (cannabidiol) medical cannabis. In May 2018, Khiron listed on the TSX Venture Exchange, becoming one of the first Colombian based medical cannabis companies to trade on any exchange globally.
With a focused regional strategy and patient oriented approach, the Company combines global scientific expertise, agricultural advantages, branded product market entrance experience and education to drive prescription and brand loyalty to address priority medical conditions such as chronic pain, epilepsy, depression and anxiety in the Latin American market of over 620 million people. Khiron is led by Co-founder and Chief Executive Officer, Alvaro Torres, together with an experienced executive team, and a knowledgeable Board of Directors that includes former President of Mexico, Vicente Fox.
Further information on Khiron Life Sciences can be found at https://investors.khiron.ca/
Market and Industry Data
This press release contains market and industry data and forecasts that were obtained from third-party sources, industry publications and publicly available information. Third-party sources generally state that the information contained therein has been obtained from sources believed to be reliable, but there can be no assurance as to the accuracy or completeness of included information. Although management believes it to be reliable, the Company has not independently verified any of the data from third-party sources referred to in this press release, or analyzed or verified the underlying studies or surveys relied upon or referred to by such sources, or ascertained the underlying economic assumptions relied upon by such sources.
This press release may contain certain “forward-looking information” and “forward-looking statements” within the meaning of applicable Canadian securities legislation. All information contained herein that is not historical in nature may constitute forward-looking information. Forward-looking statements may be identified by statements containing the words “believes”, “anticipates”, “plans”, “intends”, “will”, “should”, “expects”, “continue”, “estimate”, “forecasts” and other similar expressions. Forward-looking statements herein include, but are not limited to, statements regarding the final acceptance of the TSXV and the commencement of sales in Mexico. 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 statements in this press release are reasonable, such forward-looking statement 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 Annual Information Form 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.
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this press release.
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Avicanna Inc. (“ Avicanna ” or the “ Company “) (TSX: AVCN) (OTCQX: AVCNF) (FSE: 0NN), a biopharmaceutical company focused on the development, manufacturing and commercialization of plant-derived cannabinoid-based products announces that Janet Giesselman has resigned from her role as an independent director of the Company to pursue other opportunities.
The Company thanks Ms. Giesselman for her service and her contributions and wishes her all the best in her future endeavours. The board of directors of the Company is actively engaged in the search for a suitable candidate to fill the vacancy.
About Avicanna Inc.
Avicanna is a diversified and vertically integrated Canadian biopharmaceutical company focused on the research, development, and commercialization of plant-derived cannabinoid-based products for the global consumer, medical, and pharmaceutical market segments.
SOURCE Avicanna Inc.
For more information about Avicanna, visit www.avicanna.com, call 1-647-243-5283, or contact Setu Purohit, President by email at firstname.lastname@example.org .
Cautionary Note Regarding Forward-Looking Information and Statements
This news release contains “forward-looking information” within the meaning of applicable securities laws. Forward-looking information contained in this press release may be identified by the use of words such as, “may”, “would”, “could”, “will”, “likely”, “expect”, “anticipate”, “believe, “intend”, “plan”, “forecast”, “project”, “estimate”, “outlook” and other similar expressions, and includes statements with respect to the Company’s ability find and appoint a suitable candidate for its board of directors. Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management in light of management’s experience and perception of trends, current conditions and expected developments, as well as other factors relevant in the circumstances, including assumptions in respect of current and future market conditions, the current and future regulatory environment; and the availability of licenses, approvals and permits.
Although the Company believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because the Company can give no assurance that they will prove to be correct. Actual results and developments may differ materially from those contemplated by these statements. Forward-looking information is subject to a variety of risks and uncertainties that could cause actual events or results to differ materially from those projected in the forward-looking information. Such risks and uncertainties include, but are not limited to current and future market conditions, including the market price of the common shares of the Company, and the risk factors set out in the Company’s annual information form dated April 15, 2020 and final short form prospectus dated November 27, 2020, filed with the Canadian securities regulators and available under the Company’s profile on SEDAR at www.sedar.com .
The statements in this press release are made as of the date of this release. The Company disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.
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A renowned global bank with wealth management options has elected to block some cannabis trades from clients as part of its de-risking efforts after recent issues.
Also this week, a Canadian cannabis producer announced its intention to buy a retail operator managing nearly 100 stores in the country.
Keep reading to find out more cannabis highlights from the past five days.
Credit Suisse de-risking efforts leave cannabis out
Credit Suisse Group (NYSE:CS) clients have been unable to make some cannabis trades since March, a report from Reuters shows. The firm moved forward with a new risk management strategy after losing billions as a result of a blunder with Archegos Capital Management.
The initial list of cannabis companies blocked by Credit Suisse includes popular multi-state operators (MSOs) based in the US. These companies operate primarily out of the US, but are public on Canadian exchanges due to current American federal restrictions on the cannabis business.
Bloomberg reported that cannabis exchange-traded funds, and the shares of Canadian licensed producers Canopy Growth (NASDAQ:CGC,TSX:WEED), Aurora Cannabis (NASDAQ:ACB,TSX:ACB) and Tilray (NASDAQ:TLRY), were not on the list of blocked trades.
Experts have previously told the Investing News Network that US cannabis is the currently the most exciting aspect of the industry. At the same time, the federal status of the drug continues weigh down these names even as federal cannabis policy regulation in the country looks closer than ever.
So far it remains unclear whether the cannabis names already trading on senior US exchanges, mostly Canada-based operators, will be able to fully capitalize on any federal changes to cannabis rules.
Many experts do not expect sweeping cannabis legalization in the US, and are instead anticipating a piecemeal adjustment that would make it possible for MSOs to graduate to American exchanges.
Cannabis M&A keeps sizzling with producer buying retailer
Inner Spirit manages the Spiritleaf network of retail stores and currently oversees 86 stores across Canada. According to the firm, it will hold over 100 stores by the summer.
“Inner Spirit has successfully created a franchise-based retail network that has grown from coast to coast and offers a differentiated and premium in-store experience to consumers,” Sundial CEO Zach George said in a statement after the news was released.
The two companies expect to see the transaction close sometime in Q3 of this year. Per each share held, Inner Spirit investors will get a combination of $0.30 in cash and 0.0835 of a Sundial common share.
Cannabis company news
- Organigram Holdings (NASDAQ:OGI,TSX:OGI) confirmed a change in management, saying Greg Engel will stop being CEO of the company. Chairman Peter Amirault will now serve as executive chairman and will oversee the company while the search for a new CEO goes on.
- PharmaCielo (TSXV:PCLO,OTCQX:PCLOF) issued its financial results for Q4 2020 as well as the full 2020 year. CEO Henning von Koss highlighted that the company has streamlined operations after a tumultuous 2020, alongside completing an extraction center.
- High Tide (TSXV:HITI,OTCQB:HITIF) announced the purchase of an 80 percent stake in hemp-derived CBD product manufacturer FABCBD. The firm touts an ecommerce platform with direct sales to consumers representing approximately 124,000 orders in 2020.
- Bhang (CSE:BHNG,OTCQX:BHNGF) obtained a management cease trade order as the firm anticipates a delay to its year-end financial filings.
Don’t forget to follow us @INN_Cannabis for real-time updates!
Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.
– Lexaria recently announced favorable data on its first animal study, as well as the commencement of its first human clinical study, under its 2021 hypertension R&D program
Kelowna, British Columbia TheNewswire – May 7, 2021 Lexaria Bioscience Corp. (Nasdaq:LEXX) (Nasdaq:LEXXW) (CSE:LXX) (CNSX:LXX.CN) (the “Company” or “Lexaria”), a global innovator in drug delivery platforms, today announced that CEO Chris Bunka is presenting at the Benzinga Global Small Cap Conference to be held on May 13-14, 2021. Complimentary investor registration can be accessed through the conference link below.
Presentation date: Thursday, May 13, 2021
Presentation time: 3:50 p.m. ET / 12:50 p.m. PT
Event registration link: Benzinga Global Small Cap Conference
Mr. Bunka will provide an overview of the Company, including its DehydraTECH™ drug delivery technology that improves the way active pharmaceutical ingredients enter the bloodstream. He will also discuss Lexaria’s applied R&D programs that are evaluating the delivery effectiveness of DehydraTECH-processed cannabidiol (CBD) for hypertension, antiviral applications for SARS diseases and other infectious diseases, and multiple new markets, as well as provide updates on the progress of these studies.
The Benzinga Global Small Cap Conference, a showcase for small-cap investing, will be held in an entirely virtual setting. Designed to bridge the gap between small-cap companies, investors and traders, the Conference will enable executive leadership of companies to network and communicate with a broad and diverse global investor audience.
About Lexaria Bioscience Corp.
Lexaria Bioscience Corp.’s proprietary drug delivery technology, DehydraTECH™, improves the way active pharmaceutical ingredients (APIs) enter the bloodstream by promoting healthier oral ingestion methods and increasing the effectiveness of fat-soluble active molecules, thereby lowering overall dosing. The Company’s technology can be applied to many different ingestible product formats, including foods, beverages, oral suspensions, tablets, and capsules. DehydraTECH has repeatedly demonstrated since 2016 with cannabinoids and nicotine the ability to increase bio-absorption by up to 5-10x, reduce time of onset from 1 – 2 hours to minutes, and mask unwanted tastes; and is planned to be further evaluated for orally administered bioactive molecules, including anti-virals, cannabinoids, vitamins, non-steroidal anti-inflammatory drugs (NSAIDs), and nicotine. Lexaria has licensed DehydraTECH to multiple companies including a world-leading tobacco producer for the development of smokeless, oral-based nicotine products and for use in industries that produce cannabinoid beverages, edibles, and oral products. Lexaria operates a licensed in-house research laboratory and holds a robust intellectual property portfolio with 18 patents granted and approximately 60 patents pending worldwide. For more information, please visit www.lexariabioscience.com .
This press release includes forward-looking statements. Statements as such term is defined under applicable securities laws. These statements may be identified by words such as “anticipate,” “if,” “believe,” “plan,” “estimate,” “expect,” “intend,” “may,” “could,” “should,” “will,” and other similar expressions. Such forward-looking statements in this press release include, but are not limited to, statements by the company relating the Company’s ability to carry out research initiatives, receive regulatory approvals or grants or experience positive effects or results from any research or study. Such forward-looking statements are estimates reflecting the Company’s best judgment based upon current information and involve a number of risks and uncertainties, and there can be no assurance that the Company will actually achieve the plans, intentions, or expectations disclosed in these forward-looking statements. As such, you should not place undue reliance on these forward-looking statements. Factors which could cause actual results to differ materially from those estimated by the Company include, but are not limited to, government regulation and regulatory approvals, managing and maintaining growth, the effect of adverse publicity, litigation, competition, scientific discovery, the patent application and approval process, potential adverse effects arising from the testing or use of products utilizing the DehydraTECH technology, the Company’s ability to maintain existing collaborations and realize the benefits thereof, delays or cancellations of planned R&D that could occur related to pandemics, and other factors which may be identified from time to time in the Company’s public announcements and periodic filings with the US Securities and Exchange Commission on EDGAR. There is no assurance that any of Lexaria’s postulated uses, benefits, or advantages for the patented and patent-pending technology will in fact be realized in any manner or in any part. No statement herein has been evaluated by the Food and Drug Administration (FDA). Lexaria-associated products are not intended to diagnose, treat, cure or prevent any disease. Any forward-looking statements contained in this release speak only as of the date hereof, and the Company expressly disclaims any obligation to update any forward-looking statements contained herein, whether as a result of any new information, future events, changed circumstances or otherwise, except as otherwise required by law.
Copyright (c) 2021 TheNewswire – All rights reserved.
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Harvest Announces Settlement with Pennsylvania Department of Health Regarding Grower Processor Permittee AGRiMED Industries LLC
Harvest Health & Recreation Inc. (“Harvest”) ( CSE: HARV OTCQX: HRVSF ), a vertically integrated cannabis company and multi-state operator in the U.S., today announced a settlement agreement has been reached for Agrimed Industries of PA, LLC (“AGRiMED”). The membership interests of AGRiMED are owned by Harvest Health and Recreation Inc.
On May 6, 2021 , the Pennsylvania Department of Health, Office of Medical Marijuana and AGRiMED reached a settlement agreement concerning the operation of AGRiMED, a medical marijuana grower processor facility in Southwestern Pennsylvania. The settlement agreement allows for the conditional renewal of AGRiMED’s permit and will allow for the increased production of medical marijuana in Southwestern Pennsylvania , which will help serve patients across the Commonwealth.
About Harvest Health & Recreation Inc.
Headquartered in Tempe, Arizona , Harvest Health & Recreation Inc. is a vertically integrated cannabis company and multi-state operator. Since 2011, Harvest has been committed to expanding its retail and wholesale presence throughout the U.S., acquiring, manufacturing, and selling cannabis products for patients and consumers in addition to providing services to retail dispensaries. Through organic license wins, service agreements, and targeted acquisitions, Harvest has assembled an operational footprint spanning multiple states in the U.S. Harvest’s mission is to improve lives through the goodness of cannabis. We hope you’ll join us on our journey: https://harvesthoc.com
This press release may contain “forward-looking statements” regarding Harvest’s business strategies or prospects, which may be identified by the use of words such as, “may”, “would”, “could”, “will”, “likely”, “expect”, “anticipate”, “believe, “intend”, “plan”, “forecast”, “project”, “estimate”, “outlook” and other similar expressions. Such statements include, but are not limited to, the following: our ability to resolve existing and future litigation, regulatory actions and arbitrations on acceptable terms; our growth potential in our core cannabis markets and the sustainability of such growth; our ability to successfully and timely execute our business and operational plans; the development of favorable federal and state cannabis regulatory frameworks in the United States applicable to multi-state cannabis operators; and adverse changes in the public perception of cannabis. Forward-looking statements are not a guarantee of future performance and are based upon a number of estimates and assumptions of management in light of management’s experience and perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances, including assumptions in respect of current and future market conditions. Actual results, performance or achievement could differ materially from that expressed in, or implied.
View original content to download multimedia: http://www.prnewswire.com/news-releases/harvest-announces-settlement-with-pennsylvania-department-of-health-regarding-grower-processor-permittee-agrimed-industries-llc-301286364.html
SOURCE Harvest Health & Recreation Inc.
View original content to download multimedia: http://www.newswire.ca/en/releases/archive/May2021/07/c1095.html
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Receives processing license for the commercial production and sale of cannabinoids using biosynthesis
Announces plans to launch Spinach™ branded edibles to the Canadian adult-use market
Launches transformative Lord Jones™ brand campaign entitled, “A Higher Order”
Cronos Israel expands PEACE NATURALS™ brand into the pre-roll category in the Israeli medical market
Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) (“Cronos Group” or the “Company”), today announces its 2021 First Quarter business results.
“This quarter for Cronos Group would not have been possible without the tenacious and innovative efforts put forward by every Cronos employee across our organization. In the first quarter of 2021 our results in Canada were impacted by market dynamics due to the COVID-19 pandemic and ensuing stay-at-home orders and various other restrictions. Despite this, we continued to push forward our innovation pipeline and execute on our strategy, which was a true testament to the strength of our team,” said Kurt Schmidt, President and CEO, Cronos Group.
“In March, we were recognized as one of Fast Company’s Most Innovative Companies for our joint venture with Ginkgo Bioworks to produce cannabinoids using biosynthesis. Our partnership with Ginkgo is critical to executing our Company’s vision: to transform industries through cannabinoid innovation. A critical component to commercializing fermented cannabinoids is a Health Canada processing license, which Cronos Fermentation received in April. Receiving this license is a great accomplishment and I am looking forward to bringing our innovative product pipeline to market over time utilizing this technology. This partnership is a global effort for our organization, and it is a great demonstration of how our research and development and innovation teams across regions work together to push critical projects forward. Last month, we also announced our U.S. Cronos Employees Political Action Committee as well as a robust Marketing Code of Conduct that all of our brands and employees have pledged to uphold. We’re proud to be on the record supporting responsible legalization efforts in the United States.”
|(in thousands of U.S. dollars)||Three months ended March 31,||Change|
|Rest of World||10,170||6,256||3,914||63||%|
|Consolidated net revenue||12,611||8,432||4,179||50||%|
|Gross profit (loss)||$||(2,963||)||$||(6,476||)||$||3,513||(54||)||%|
|Adjusted EBITDA ( i )||$||(37,075||)||$||(37,055||)||$||(20||)||—||%|
|Cash and cash equivalents (ii)||$||1,024,450||$||1,128,396||$||(103,946||)||(9||)||%|
|Short-term investments (ii)||214,925||206,230||8,695||4||%|
( i ) See “Non-GAAP Measures” for more information, including a reconciliation of adjusted earnings (loss) before interest, taxes, depreciation and amortization (“Adjusted EBITDA”)
(ii) Dollar amounts are as of the last day of the period indicated
First Quarter 2021
- Net revenue of $12.6 million in Q1 2021 increased by $4.2 million from Q1 2020. The increase year-over-year was primarily driven by continued growth in the adult-use Canadian cannabis market, sales in the Israeli medical cannabis market, and an increase in sales in the U.S. segment driven by new U.S. hemp-derived CBD products introductions, partially offset by strategic price reductions on various adult-use cannabis products in Canada in the second half of 2020.
- Gross loss of $3.0 million in Q1 2021 decreased by $3.5 million from Q1 2020. The decrease in losses year-over-year was primarily driven by an increase in net revenue and a decrease in inventory write-downs in the Rest of World (“ROW”) segment.
- Adjusted EBITDA loss of $37.1 million in Q1 2021 increased marginally from Q1 2020. The marginal increase in losses year-over-year was primarily driven by an increase in sales and marketing costs due to brand development in the U.S. segment, and an increase in research and development (“R&D”) costs driven by increased spending on product development and developing cannabinoid intellectual property. Partially offset by decreases in sales and marketing spend in the ROW segment, gross loss and general and administrative expenses.
Brand and Product Portfolio
In April 2021, Cronos Group announced that its Lord Jones™ brand launched a brand campaign entitled, “A Higher Order”. The campaign features new creative assets along with a mix of market activations including out-of-home advertising and television spots in select U.S. test markets. This new Lord Jones™ campaign reaffirms the Company’s commitment to robust, breakthrough marketing and brand building that aims to bring high-quality U.S. hemp-derived CBD products to adult consumers.
In the coming weeks, Cronos Group’s mainstream adult-use brand, Spinach™, intends to launch edibles, a new product category for Cronos Group, in the Canadian adult-use market. This product has been developed by the Company’s world class innovation and R&D teams in partnership with various teams throughout the organization such as consumer insights, marketing, and sales. Cronos Group approaches product launches with an aim to be the best, not necessarily the first. The adult-use edibles are differentiated from what is currently on the market and seeks to provide an elevated experience for the consumer. The Company’s new edible capabilities will serve as a platform for future innovation that is expected to provide Cronos Group with a robust competitive advantage.
In April 2021, the Lord Jones™ brand launched a new product, the Lord Jones™ CBD Bump & Smooth Body Serum, which is designed to deliver non-abrasive chemical exfoliation that reduces bumpiness to reveal smoother, brighter looking skin. The product is available on the Lord Jones™ website and is expected to be on Sephora’s website and in their retail outlets in the coming weeks.
In the first quarter of 2021, Cronos Israel successfully launched PEACE NATURALS™ branded pre-rolls into the Israeli medical cannabis market. This launch follows the successful launch of dried flower and oils to the Israeli medical cannabis market in 2020. Cronos Israel continues to execute in Israel’s rapidly growing market.
Global Supply Chain
In the first quarter of 2021, Natuera, the Company’s joint venture in Latin America, successfully exported THC cannabis derivatives from Colombia to the U.S. for R&D purposes. The import was conducted under a U.S. Drug Enforcement Administration (“DEA”) permit for R&D purposes. Additionally, Natuera’s wholly owned subsidiary has been granted quotas by Colombia’s Ministry of Justice and Law and Ministry of Health and Social Protection for the cultivation and manufacture of psychoactive cannabis into THC products for commercial export.
In the first quarter of 2021, Cronos GrowCo, the Company’s joint venture in Canada, continued to become operational in phases, completing its first harvest in the first quarter of 2021. In addition to having a cultivation license for the operations contemplated by the first phase of the project, Cronos GrowCo has received a processing license, allowing it to sell into the Canadian cannabis wholesale market.
Intellectual Property Initiatives
In April 2021, Cronos Fermentation, Cronos Group’s GMP-standard fermentation and manufacturing facility in Winnipeg, Manitoba, received its processing license. This is a significant milestone not just for Cronos Group, but for the evolution of the industry and advancements in science that will be applied in an effort to elevate the consumer experience.
In April 2021, Cronos Group announced the launch of its U.S. Cronos Employees Political Action Committee (the “Employees PAC”). The Employees PAC was established to support and educate legislators who are open to responsibly advancing legislation and regulation for U.S. hemp-derived CBD products in the U.S. market and supporting a regulated, safe and legal federal cannabis industry in the U.S.
In May 2021, Cronos Group released a robust Marketing Code of Conduct (“Marketing Code”) as a commitment to consumers and a resource for employees, industry peers, partners and policy makers. The Company recognizes that there is a clear need for standards, which is why Cronos proactively created its own guidelines. The principles outlined in the Marketing Code apply to all marketing activities for all brands globally. The Marketing Code represents Cronos Group’s commitment to responsible marketing standards – from our leadership team to our external agencies, Cronos Group expects all such individuals to understand and follow these principles.
Rest of World Results
Cronos Group’s Rest of World reporting segment includes results of the Company’s operations for all markets outside of the U.S.
|(in thousands of USD)||Three months ended March 31,||Change|
|Gross profit (loss)||$||(4,139||)||$||(7,558||)||$||3,419||(45||)||%|
|Adjusted EBITDA ( i )||$||(22,184||)||$||(29,010||)||$||6,826||(24||)||%|
( i ) See “Non-GAAP Measures” for more information, including a reconciliation of Adjusted EBITDA
First Quarter 2021
- Net revenue of $10.2 million in Q1 2021 increased by $3.9 million from Q1 2020. The increase year-over-year was primarily driven by continued growth in the adult-use cannabis flower market in Canada and sales in the Israeli medical cannabis market. Partially offset by strategic price reductions on various adult-use cannabis products in Canada in the second half of 2020 and a decrease in cannabis extract sales in Canada primarily due to fluctuating provincial demand.
- Gross loss of $4.1 million in Q1 2021 decreased by $3.4 million from Q1 2020. The decrease in losses year-over-year was primarily driven by an increase in net revenue and a decrease in inventory write-downs.
- Adjusted EBITDA loss of $22.2 million in Q1 2021 decreased by $6.8 million from Q1 2020. The improvement year-over-year was primarily driven by a decrease in gross loss and a decline in general and administrative expenses. Partially offset by increased R&D costs.
United States Results
Cronos Group’s U.S. reporting segment includes results of the Company’s operations for all brands and products in the U.S.
|(in thousands of USD)||Three months ended March 31,||Change|
|Gross profit (loss)||$||1,176||$||1,082||$||94||9||%|
|Adjusted EBITDA ( i )||$||(9,510||)||$||(5,782||)||$||(3,728||)||64||%|
( i ) See “Non-GAAP Measures” for more information, including a reconciliation of Adjusted EBITDA.
First Quarter 2021
- Net revenue of $2.4 million in Q1 2021 increased by $0.3 million from Q1 2020. The increase year-over-year was primarily driven by the introduction of new U.S. hemp-derived CBD products.
- Gross profit of $1.2 million in Q1 2021 increased by $0.1 million from Q1 2020.
- Adjusted EBITDA loss of $9.5 million in Q1 2021 increased by $3.7 million from Q1 2020. The increase in losses year-over-year was primarily driven by an increase in sales and marketing costs related to brand development.
The Company will host a conference call and live audio webcast on Friday, May 7, 2021, at 8:30 a.m. EDT to discuss First Quarter 2021 business results and outlook. The call will last approximately one hour. An audio replay of the call will be archived on the Company’s website for replay. Instructions for the conference call are provided below:
- Live audio webcast: https://ir.thecronosgroup.com/events-presentations
- Toll-Free from the U.S. and Canada dial-in: (866) 795-2258
- International dial-in: (409) 937-8902
- Conference ID: 3586688
About Cronos Group
Cronos Group is an innovative global cannabinoid company with international production and distribution across five continents. Cronos Group is committed to building disruptive intellectual property by advancing cannabis research, technology and product development. With a passion to responsibly elevate the consumer experience, Cronos Group is building an iconic brand portfolio. Cronos Group’s portfolio includes PEACE NATURALS ™, a global wellness platform, two adult-use brands, COVE ™ and Spinach ™, and three U.S. hemp-derived CBD brands, Lord Jones ™, Happy Dance ™ and PEACE+ ™. For more information about Cronos Group and its brands, please visit: www.thecronosgroup.com .
This press release may contain information that may constitute forward-looking information and forward-looking statements within the meaning of applicable securities laws (collectively, “Forward-Looking Statements”), which are based upon our current internal expectations, estimates, projections, assumptions and beliefs. All information that is not clearly historical in nature may constitute Forward-Looking Statements. In some cases, Forward-Looking Statements can be identified by the use of forward-looking terminology such as “expect”, “likely”, “may”, “will”, “should”, “intend”, “anticipate”, “potential”, “proposed”, “estimate” and other similar words, expressions and phrases, including negative and grammatical variations thereof, or statements that certain events or conditions “may” or “will” happen, or by discussion of strategy. Forward-Looking Statements include estimates, plans, expectations, opinions, forecasts, projections, targets, guidance or other statements that are not statements of historical fact.
Forward-Looking Statements include, but are not limited to, statements with respect to:
- the uncertainties associated with the COVID-19 pandemic, including our ability, and the abilities of our joint ventures and our suppliers and distributors, to effectively deal with the restrictions, limitations and health issues presented by the COVID-19 pandemic, the ability to continue our production, distribution and sale of our products, and demand for and the use of our products by consumers;
- laws and regulations and any amendments thereto applicable to our business and the impact thereof, including uncertainty regarding the application of United States (“U.S.”) state and federal law to U.S. hemp (including CBD) products and the scope of any regulations by the U.S. Food and Drug Administration, the DEA, the U.S. Federal Trade Commission, the U.S. Patent and Trademark Office (the “PTO”) and any state equivalent regulatory agencies over U.S. hemp (including CBD) products;
- the laws and regulations and any amendments thereto relating to the U.S. hemp industry in the U.S., including the promulgation of regulations for the U.S. hemp industry by the U.S. Department of Agriculture and relevant state regulatory authorities;
- the grant, renewal and impact of any license or supplemental license to conduct activities with cannabis or any amendments thereof;
- our international activities and joint venture interests, including required regulatory approvals and licensing, anticipated costs and timing, and expected impact;
- our ability to successfully create and launch brands and further create, launch and scale U.S. hemp-derived consumer products, and cannabis products;
- the benefits, viability, safety, efficacy, dosing and social acceptance of cannabis including CBD and other cannabinoids;
- expectations regarding the implementation and effectiveness of key personnel changes;
- the anticipated benefits and impact of the Altria’s C$2.4 billion (approximately $1.8 billion) investment in us (the “Altria Investment”);
- the potential exercise of the warrant held by Altria, pre-emptive rights and/or top-up rights in connection with the Altria Investment, including proceeds to us that may result therefrom;
- expectations regarding the use of proceeds of equity financings, including the proceeds from the Altria Investment;
- the legalization of the use of cannabis for medical or adult-use in jurisdictions outside of Canada, the related timing and impact thereof and our intentions to participate in such markets, if and when such use is legalized;
- expectations regarding the potential success of, and the costs and benefits associated with, our joint ventures, strategic alliances and equity investments, including the strategic partnership (the “Ginkgo Strategic Partnership”) with Ginkgo Bioworks, Inc.;
- our ability to execute on our strategy and the anticipated benefits of such strategy;
- expectations of the amount or frequency of impairment losses, including as a result of the write-down of intangible assets, including goodwill;
- the ongoing impact of the legalization of additional cannabis product types and forms for adult-use in Canada, including federal, provincial, territorial and municipal regulations pertaining thereto, the related timing and impact thereof and our intentions to participate in such markets;
- the future performance of our business and operations;
- our competitive advantages and business strategies;
- the competitive conditions of the industry;
- the expected growth in the number of customers using our products;
- our ability or plans to identify, develop, commercialize or expand our technology and R&D initiatives in cannabinoids, or the success thereof;
- expectations regarding acquisitions and dispositions and the anticipated benefits therefrom, including the proposed sale of our Original B.C. Ltd. (“OGBC”) production facility;
- expectations regarding revenues, expenses and anticipated cash needs;
- expectations regarding cash flow, liquidity and sources of funding;
- expectations regarding capital expenditures;
- the expansion of our production and manufacturing, the costs and timing associated therewith and the receipt of applicable production and sale licenses;
- the expected growth in our growing, production and supply chain capacities;
- expectations regarding the resolution of litigation and other legal and regulatory proceedings, reviews and investigations;
- expectations with respect to future production costs;
- expectations with respect to future sales and distribution channels and networks;
- the expected methods to be used to distribute and sell our products;
- the anticipated future gross margins of our operations;
- accounting standards and estimates;
- our ability to timely and effectively remediate any material weaknesses in our internal control over financial reporting; and
- expectations regarding the costs and benefits associated with our contracts and agreements with third parties, including under our third-party supply and manufacturing agreements.
Certain of the Forward-Looking Statements contained herein concerning the industries in which we conduct our business are based on estimates prepared by us using data from publicly available governmental sources, market research, industry analysis and on assumptions based on data and knowledge of these industries, which we believe to be reasonable. However, although generally indicative of relative market positions, market shares and performance characteristics, such data is inherently imprecise. The industries in which we conduct our business involve risks and uncertainties that are subject to change based on various factors, which are described further below.
The Forward-Looking Statements contained herein are based upon certain material assumptions that were applied in drawing a conclusion or making a forecast or projection, including: (i) our ability, and the abilities of our joint ventures and our suppliers and distributors, to effectively deal with the restrictions, limitations and health issues presented by the COVID-19 pandemic and the ability to continue our production, distribution and sale of our products and customer demand for and use of our products; (ii) management’s perceptions of historical trends, current conditions and expected future developments; (iii) our ability to generate cash flow from operations; (iv) general economic, financial market, regulatory and political conditions in which we operate; (v) the production and manufacturing capabilities and output from our facilities and our joint ventures, strategic alliances and equity investments; (vi) consumer interest in our products; (vii) competition; (viii) anticipated and unanticipated costs; (ix) government regulation of our activities and products including but not limited to the areas of taxation and environmental protection; (x) the timely receipt of any required regulatory authorizations, approvals, consents, permits and/or licenses; (xi) our ability to obtain qualified staff, equipment and services in a timely and cost-efficient manner; (xii) our ability to conduct operations in a safe, efficient and effective manner; (xiii) our ability to realize anticipated benefits, synergies or generate revenue, profits or value from our recent acquisitions into our existing operations; (xiv) our ability to complete planned dispositions, including the sale of OGBC, and, if completed, obtain our anticipated sales price; and (xv) other considerations that management believes to be appropriate in the circumstances. While our management considers these assumptions to be reasonable based on information currently available to management, there is no assurance that such expectations will prove to be correct.
By their nature, Forward-Looking Statements are subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities will not be achieved. A variety of factors, including known and unknown risks, many of which are beyond our control, could cause actual results to differ materially from the Forward-Looking Statements in this press release and other reports we file with, or furnish to, the SEC and other regulatory agencies and made by our directors, officers, other employees and other persons authorized to speak on our behalf. Such factors include, without limitation, the risk that the COVID-19 pandemic may disrupt our operations and those of our suppliers and distribution channels and negatively impact the demand for and use of our products; the risk that cost savings and any other synergies from the Altria Investment may not be fully realized or may take longer to realize than expected; the risk that we will not complete planned dispositions, including the sale of OGBC, or, if completed, obtain our anticipated sales price; the implementation and effectiveness of key personnel changes; future levels of revenues; consumer demand for cannabis and U.S. hemp products; our ability to manage disruptions in credit markets or changes to our credit ratings; future levels of capital, environmental or maintenance expenditures, general and administrative and other expenses; the success or timing of completion of ongoing or anticipated capital or maintenance projects; business strategies, growth opportunities and expected investment; the adequacy of our capital resources and liquidity, including but not limited to, availability of sufficient cash flow to execute our business plan (either within the expected timeframe or at all); the potential effects of judicial, regulatory or other proceedings, or threatened litigation or proceedings, on our business, financial condition, results of operations and cash flows; volatility in and/or degradation of general economic, market, industry or business conditions; compliance with applicable environmental, economic, health and safety, energy and other policies and regulations and in particular health concerns with respect to vaping and the use of cannabis and U.S. hemp products in vaping devices; the anticipated effects of actions of third parties such as competitors, activist investors or federal (including U.S. federal), state, provincial, territorial or local regulatory authorities or self-regulatory organizations, changes in regulatory requirements in relation to our business and products; and the factors discussed under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 and subsequent reports on Form 10-Q. Readers are cautioned to consider these and other factors, uncertainties and potential events carefully and not to put undue reliance on Forward-Looking Statements.
Forward-Looking Statements are provided for the purposes of assisting the reader in understanding our financial performance, financial position and cash flows as of and for periods ended on certain dates and to present information about management’s current expectations and plans relating to the future, and the reader is cautioned that the Forward-Looking Statements may not be appropriate for any other purpose. While we believe that the assumptions and expectations reflected in the Forward-Looking Statements are reasonable based on information currently available to management, there is no assurance that such assumptions and expectations will prove to have been correct. Forward-Looking Statements are made as of the date they are made and are based on the beliefs, estimates, expectations and opinions of management on that date. We undertake no obligation to update or revise any Forward-Looking Statements, whether as a result of new information, estimates or opinions, future events or results or otherwise or to explain any material difference between subsequent actual events and such Forward-Looking Statements. The Forward-Looking Statements contained in this press release and other reports we file with, or furnish to, the SEC and other regulatory agencies and made by our directors, officers, other employees and other persons authorized to speak on our behalf are expressly qualified in their entirety by these cautionary statements.
As used in this press release, “CBD” means cannabidiol and “U.S. hemp” has the meaning given to the term “hemp” in the U.S. Agricultural Improvement Act of 2018, including hemp-derived CBD.
Cronos Group Inc.
Condensed Consolidated Balance Sheets
As of March 31, 2021 and December 31, 2020
(In thousands of U.S. dollars, except share amounts)
|As of March 31, 2021||As of December 31, 2020|
|Cash and cash equivalents||$||1,024,450||$||1,078,023|
|Accounts receivable, net||6,997||8,928|
|Current portion of loans receivable, net||6,717||7,083|
|Prepaids and other current assets||15,053||11,161|
|Total current assets||1,320,344||1,372,172|
|Advances to joint ventures||487||467|
|Investments in equity accounted investees, net||19,221||19,235|
|Loan receivable, net||90,953||87,191|
|Property, plant and equipment, net||192,123||187,599|
|Intangible assets, net||70,085||69,720|
|Accounts payable and other liabilities||$||29,213||$||42,102|
|Current portion of lease obligation||1,130||1,322|
|Total current liabilities||302,643||206,834|
|Due to non-controlling interests||2,129||2,188|
|Commitments and contingencies|
|Additional paid-in capital||32,090||34,596|
|Accumulated other comprehensive income||58,144||42,999|
|Total equity attributable to shareholders of Cronos Group||1,570,649||1,711,364|
|Total shareholders’ equity||1,568,279||1,708,168|
|Total liabilities and shareholders’ equity||$||1,881,282||$||1,925,682|
See notes to consolidated financial statements.
Cronos Group Inc.
Condensed Consolidated Statements of Net Income (Loss) and Comprehensive Income (Loss)
For the three months ended March 31, 2021 and 2020
(In thousands of U.S. dollars, except share amounts, unaudited)
|Three months ended March 31,|
|Net revenue, before excise taxes||$||14,654||$||9,344|
|Cost of sales||15,574||6,946|
|Gross profit (loss)||(2,963||)||(6,476||)|
|Sales and marketing||10,254||7,112|
|Research and development (“R&D”)||5,102||4,590|
|General and administrative||21,906||23,759|
|Depreciation and amortization||735||687|
|Total operating expenses||40,496||38,584|
|Other income (loss)|
|Interest income, net||2,329||7,751|
|Gain (loss) on revaluation of derivative liabilities||(116,874||)||113,368|
|Impairment loss on property, plant and equipment and right-of-use assets||(1,741||)||—|
|Total other income (loss)||(118,145||)||120,741|
|Income (loss) from continuing operations||(161,604||)||75,681|
|Loss from discontinued operations||(21||)||—|
|Net income (loss)||$||(161,625||)||$||75,681|
|Net income (loss) attributable to:|
|Other comprehensive income (loss)|
|Foreign exchange gain (loss) on translation||$||16,284||$||(113,692||)|
|Total other comprehensive income (loss)||16,284||(113,692||)|
|Comprehensive income (loss) attributable to:|
|Net income (loss) per share|
|Basic – continuing operations||$||(0.44||)||$||0.22|
|Diluted – continuing operations||(0.44||)||0.20|
|Weighted average number of outstanding shares|
See notes to consolidated financial statements.
Cronos Group Inc.
Condensed Consolidated Statements of Cash Flows
For the three months ended March 31, 2021 and 2020
(In thousands of U.S. dollars, except share amounts, unaudited)
|Three months ended March 31,|
|Net income (loss)||$||(161,625||)||$||75,681|
|Items not affecting cash:|
|Depreciation and amortization||1,880||1,162|
|Gain (loss) on revaluation of derivative liabilities||116,874||(113,368||)|
|Impairment loss on property, plant and equipment and right-of-use assets||1,741||—|
|Expected credit losses on financial assets and non-cash charges to inventory||681||2,068|
|Other non-cash operating activities, net||1,749||643|
|Changes in non-cash working capital:|
|Accounts receivable, net||1,931||472|
|Prepaids and other current assets||(3,737||)||(2,439||)|
|Accounts payable and other liabilities||(12,675||)||2,039|
|Cash flows used in operating activities||(46,002||)||(38,898||)|
|Proceeds from (purchase of) short-term investments, net||—||80,333|
|Purchase of property, plant and equipment||(6,680||)||(6,411||)|
|Purchase of intangible assets||(392||)||(1,105||)|
|Advances on loans receivable||(2,645||)||(14,512||)|
|Other non-cash investing activities, net||—||781|
|Cash flows provided by (used in) investing activities||(9,717||)||59,086|
|Repayment of lease obligations||(613||)||(448||)|
|Withholding taxes paid on share-based awards||(8,673||)||—|
|Other non-cash investing activities, net||10||—|
|Cash flows provided by (used in) financing activities||(9,276||)||(448||)|
|Effect of foreign currency translation on cash and cash equivalents||11,422||(91,037||)|
|Net change in cash and cash equivalents||(53,573||)||(71,297||)|
|Cash and cash equivalents, beginning of period||1,078,023||1,199,693|
|Cash and cash equivalents, end of period||$||1,024,450||$||1,128,396|
|Supplemental cash flow information|
|Income taxes paid||624||—|
See notes to consolidated financial statements.
Cronos Group reports its financial results in accordance with Generally Accepted Accounting Principles in the U.S. (“US GAAP”). This press release refers to measures not recognized under US GAAP (“non-GAAP measures”). These non-GAAP measures do not have a standardized meaning prescribed by US GAAP and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these non-GAAP measures are provided as a supplement to corresponding US GAAP measures to provide additional information regarding our results of operations from management’s perspective. Accordingly, non-GAAP measures should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with US GAAP. All non-GAAP measures presented in this press release are reconciled to their closest reported US GAAP measure.
Management reviews Adjusted EBITDA, a non-GAAP measure which excludes non-cash items or items that do not reflect management’s assessment of on-going business performance. Management defines Adjusted EBITDA as net income (loss) before interest, tax expense, depreciation and amortization adjusted for: impairment loss on property, plant and equipment and right-of-use assets, loss (gain) on revaluation of derivative liabilities, other loss (income), loss from discontinued operations, share-based payments and review costs related to the restatement of the Company’s 2019 interim financial statements, the Company’s responses to the reviews of such interim financial statements by various regulatory authorities and legal costs defending shareholder class action complaints brought against the Company as a result of the restatement (see Part II, Item 1 “Legal Proceedings” of our Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2021 for a discussion of the regulatory reviews and shareholder class action complaints relating to the restatement of the 2019 interim financial statements).
Management believes that Adjusted EBITDA provides useful insight into underlying business trends and results and provides a more meaningful comparison of period-over-period results. Management uses Adjusted EBITDA for planning, forecasting and evaluating business and financial performance, including allocating resources and evaluating results relative to employee compensation targets.
Adjusted EBITDA by segment
Management also reviews adjusted earnings (loss) before interest, tax, depreciation and amortization by segment (“Adjusted EBITDA by segment”), a non-GAAP measure which excludes non-cash items or items that do not reflect management’s assessment of on-going business performance. Corporate expenses are removed from Adjusted EBITDA by segment. Corporate expenses are expenses that relate to the consolidated business. The Company’s method of allocating corporate expenses is refined periodically. Management defines Adjusted EBITDA by segment as net income (loss) by segment before interest, tax expense, depreciation and amortization adjusted for the same items that are adjusted in consolidated Adjusted EBITDA.
Management believes that Adjusted EBITDA by segment provides useful insight into underlying segment trends and results and provides a more meaningful comparison of period-over-period segment results. Management uses Adjusted EBITDA by segment for planning, forecasting and evaluating business and financial performance, including allocating resources and evaluating results relative to employee compensation targets.
Adjusted EBITDA and Adjusted EBITDA by segment is reconciled to net income (loss) as follows for the three months ended March 31, 2021 and 2020:
|(In thousands of U.S. dollars)||Three months ended March 31, 2021|
|Net income (loss)||$||(12,092||)||$||(142,147||)||$||(7,386||)||$||(161,625||)|
|Interest income, net||(3||)||(2,326||)||—||(2,329||)|
|Impairment loss on property, plant and equipment and right-of-use assets||1,741||—||—||1,741|
|Loss on revaluation of derivative liabilities||—||116,874||—||116,874|
|Loss from discontinued operations||—||21||—||21|
|Review costs related to restatement of 2019 interim financial statements||—||—||2,005||2,005|
|Depreciation and amortization||99||1,781||—||1,880|
|(In thousands of U.S. dollars)||Three months ended March 31, 2020|
|Net income (loss)||$||(6,516||)||$||88,867||$||(6,670||)||$||75,681|
|Interest income, net||(7||)||(7,744||)||—||(7,751||)|
|Gain on revaluation of derivative liabilities||—||(113,368||)||—||(113,368||)|
|Review costs related to restatement of 2019 interim financial statements||—||—||4,407||4,407|
|Depreciation and amortization||35||1,127||—||1,162|
Other items affecting the comparability of net income (loss) during Q1 2021 and Q1 2020
Interest income, net
For Q1 2021, we reported interest income, net of $2.3 million representing a decrease of $5.4 million from Q1 2020. Net interest income in the first quarter of 2021 decreased compared to the first quarter of 2020 primarily due to a lower interest earning account during the three months ended March 31, 2021 compared to the interest earning accounts during the three months ended March 31, 2020.
Gain/loss on revaluation of derivative liabilities
For Q1 2021, we reported a loss on revaluation of derivative liabilities of $116.9 million representing a decrease of $230.2 million from Q1 2020. The valuation of derivative liabilities is based on inputs such as the Company’s share price and volatility, expected term and expected risk-free interest rate which have in the past, and may in the future, fluctuate significantly period-to-period. The Company expects continued changes in derivative valuations. For further information, see Note 5. Derivative Liabilities to the Company’s condensed consolidated financial statements under Item 1 “Financial Statements” of the Company’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2021.
Review costs related to restatement of 2019 interim financial statements
For Q1 2021, we reported review costs related to the restatement of 2019 interim financial statements of $2.0 million, which are included within general and administrative expenses in the consolidated statements of net income (loss) representing a decrease of $2.4 million from Q1 2020. These financial statement review costs include costs related to the restatement of the Company’s 2019 interim financial statements, costs related to the Company’s responses to requests for information from various regulatory authorities relating to such restatement and legal costs defending shareholder class action complaints brought against the Company as a result of the restatement.
Impairment loss on property, plant and equipment and right-of-use assets
For Q1 2021, we reported an impairment loss on property, plant and equipment of $1.0 million related to leasehold improvements located within leased premises, encompassing approximately 6,000 square feet, in Los Angeles, California, which the Company determined it no longer had plans to use. An impairment loss on the associated right-of-use asset of $0.7 million was also recorded during Q1 2021. No impairment loss was recognized on leasehold improvements or right-of-use assets during Q1 2020.
Foreign currency exchange rates
All currency amounts in this Press Release are stated in U.S. dollars (“USD”), which is our reporting currency, unless otherwise noted. All references to “dollars” or “$” are to USD. The assets and liabilities of the Company’s foreign operations are translated into USD at the exchange rate in effect as of March 31, 2021, December 31, 2020, and March 31, 2020. Transactions affecting shareholders’ equity are translated at historical foreign exchange rates. The consolidated statements of net income (loss) and comprehensive income (loss) and the consolidated statements of cash flows of the Company’s foreign operations are translated into USD by applying the average foreign exchange rate in effect for the reporting period using Bloomberg.
The exchange rates used to translate from USD to Canadian dollars (“C$”) is shown below:
|(Exchange rates are shown as C$ per $)||As of|
| March 31, 2021
|| March 31, 2020
|| December 31, 2020
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