Achieves Record Quarterly Revenues -- Knight Therapeutics Inc. a leading Pan-American specialty pharmaceutical company, today reported financial results for its third quarter ended September 30, 2021. All currency amounts are in thousands except for share and per share amounts. All currencies are Canadian unless otherwise specified. Q3 2021 Highlights Financials Revenues were $73,340, an increase of $28,101 or 62% ...

-- Achieves Record Quarterly Revenues --

Knight Therapeutics Inc. (TSX: GUD) ("Knight" or "the Company"), a leading Pan-American (ex-US) specialty pharmaceutical company, today reported financial results for its third quarter ended September 30, 2021. All currency amounts are in thousands except for share and per share amounts. All currencies are Canadian unless otherwise specified.

Q3 2021 Highlights

Financials

  • Revenues were $73,340, an increase of $28,101 or 62% over the same period in prior year.
  • Gross margin of $37,766 or 51% compared to $19,533 or 43% in the same period in prior year.
  • Adjusted EBITDA 1 was $17,334, an increase of $13,118 or 311% over the same period in prior year.
  • Net loss on financial assets measured at fair value through profit or loss of $21,301 for the three-month period ended September 30, 2021.
  • Net gain on financial assets measured at fair value through profit or loss of $16,644 for the nine-month period ended September 30, 2021.
  • Net loss was $8,586, compared to $17,492 net income in the same period in prior year.
  • Cash inflow from operations was $10,321, compared to a cash outflow from operations of $8,412 in prior year.

Corporate Developments

  • Re-launched a normal course issuer bid ("NCIB") in July 2021 and purchased 2,963,022 common shares for an aggregate cash consideration of $15,361.
  • Hired Monica Percario as Global VP Scientific Affairs, Daniela Marino as Global VP Legal and Compliance and Susan Emblem as Global VP Human Resources.

Products

  • Entered into exclusive supply and distribution agreement with Incyte Biosciences International Sàrl ("Incyte") for tafasitamab and pemigatinib in Latin America

Strategic Investments

  • Received distributions of $2,042 from strategic fund investments and realized a gain of $1,634.

Key Subsequent Events

  • Received $9,243 (US$7,460) as part of the final distribution from the liquidation of New Emerging Medical Opportunities Fund II Ltd.
  • Re-financed Bancolombia loan extending the maturity date from December 14, 2021 to October 26, 2026.
  • Purchased an additional 1,009,725 common shares through NCIB for an aggregate cash consideration of $5,258.

"I am excited to announce that for a second consecutive quarter, Knight achieved record quarterly results despite the ongoing challenges posed by the pandemic. During the last 9 months we executed on multiple fronts with our business development team closing Exelon ® , entering into an exclusive supply and distribution agreement with Incyte while the commercial team continuing to deliver on strong growth of our key brands and the operational teams executing on integration and systems implementation. Furthermore, we strengthened Knight's management team by adding a Global VP Scientific Affairs, a Global VP Legal and Compliance and a Global VP Human Resources, to continue delivering on growth and operational excellence," said Samira Sakhia, President and Chief Executive Officer of Knight Therapeutics Inc.

__________________________________________________________________________________

1
Adjusted EBITDA is not a defined term under IFRS, refer to the definition s below for additional details .


SELECT FINANCIAL RESULTS REPORTED UNDER IFRS
[In thousands of Canadian dollars]

Change Change
Q3-21 Q3-20 $ 1 % 2 YTD-2 YTD-2 $ 1 % 2
Revenues 73,340 45,239 28,101 62 % 185,205 144,328 40,877 28 %
Gross margin 37,766 19,533 18,233 93 % 87,217 61,630 25,587 42 %
Selling and marketing 9,990 7,763 (2,227 ) 29 % 26,787 26,928 141 1 %
General and administrative 8,763 10,835 2,072 19 % 25,296 27,424 2,128 8 %
Research and development 3,793 2,967 (826 ) 28 % 9,196 8,035 (1,161 ) 14 %
Amortization of intangible assets 11,199 5,703 (5,496 ) 96 % 24,136 17,546 (6,590 ) 38 %
Operating income (loss) 4,021 (7,735 ) 11,756 152 % 1,802 (18,303 ) 20,105 110 %
Interest income (1,402 ) (3,188 ) (1,786 ) 56 % (5,186 ) (11,515 ) (6,329 ) 55 %
Interest expense 959 822 (137 ) 17 % 2,287 3,070 783 26 %
Foreign exchange (gain) loss (7,143 ) 703 7,846 1,116 % 252 9,666 9,414 97 %
Net (loss) income (8,586 ) 17,492 (26,078 ) 149 % 23,976 23,527 449 2 %
Basic net (loss) earnings per share (0.07 ) 0.14 (0.21 ) 150 % 0.19 0.26 (0.07 ) 27 %
EBITDA 3 17,334 131 17,203 13,132 % 31,765 8,592 23,173 270 %
Adjusted EBITDA 3 17,334 4,216 13,118 311 % 32,309 15,065 17,244 114 %
1 A positive variance represents a positive impact to net income (loss) and a negative variance represents a negative impact to net income (loss)
2 Percentage change is presented in absolute values
3 EBITDA and adjusted EBITDA are non-IFRS measures, refer to section "Non-IFRS measures and reconciliation to adjusted EBITDA" below for additional details


SELECT FINANCIAL RESULTS AT CONSTANT CURRENCY
[In thousands of Canadian dollars]

Q3-21 Q3-20 Variance YTD-21 YTD-20 Variance
Excluding impact of IAS 29
Constant
Currency
3
$ 1 % 2 Constant Currency 3 $ 1 % 2
Revenues 71,613 44,235 27,378 62 % 182,880 137,000 45,880 33 %
Cost of goods sold 33,202 23,725 (9,477 ) 40 % 92,685 72,163 (20,522 ) 28 %
Gross margin 38,411 20,510 17,901 87 % 90,195 64,837 25,358 39 %
Gross margin (%) 54 % 46 % 49 % 47 %
Expenses
Selling and marketing 9,666 7,501 (2,165 ) 29 % 26,345 25,699 (646 ) 3 %
General and administrative 8,100 9,914 1,814 18 % 23,935 25,547 1,612 6 %
Research and development 3,585 3,040 (545 ) 18 % 8,993 7,996 (997 ) 12 %
Amortization of intangible assets 10,262 5,466 (4,796 ) 88 % 22,469 15,923 (6,546 ) 41 %
Operating income (loss) 6,798 (5,411 ) 12,209 226 % 8,453 (10,328 ) 18,781 182 %
EBITDA 3 17,334 (695 ) 18,029 2,594 % 31,764 6,315 25,449 403 %
Adjusted EBITDA 3 17,334 3,697 13,637 369 % 32,309 12,481 19,828 159 %
1 A positive variance represents a positive impact to net income and a negative variance represents a negative impact to net income
2 Percentage change is presented in absolute values
3 Financial results at constant currency, EBITDA and adjusted EBITDA are non-IFRS measures, refer to section "Non-IFRS measures and reconciliation to adjusted EBITDA" below for additional details


SELECT BALANCE SHEET ITEMS
[In thousands of Canadian dollars]

Change
09-30-21 12-31-20 $
% 1
Cash, cash equivalents and marketable securities 156,029 392,225 (236,196 ) 60 %
Trade and other receivables 134,065 116,510 17,555 15 %
Inventory 74,912 56,505 18,407 33 %
Financial assets 189,743 193,955 (4,212 ) 2 %
Accounts payable and accrued liabilities 77,040 44,828 32,212 72 %
Bank loans 36,328 51,770 (15,442 ) 30 %
1 Percentage change is presented in absolute values

Revenue: For the quarter ended September 30, 2021 revenues increased by $28,101 or 62% compared to the same prior year period. On a constant currency basis, revenues increased by $27,378 or 62%. The growth in revenues on a constant currency basis is explained as following:

  • An estimated increase in revenues of approximately $9,200 to $11,500 driven by the increased demand of certain of our infectious diseases products to treat invasive fungal infections associated with COVID-19. Of this amount, Knight estimates approximately $3,200 to $4,200 was not utilized during the quarter.
  • An increase in revenues of $9,905 driven by the acquisition of Exelon ® .
  • An increase in revenues of $6,047 or 76%, from $7,918 to $13,965, driven by the growth of our recently launched products, including Cresemba ® , Lenvima ® , Halaven ® , Nerlynx ® , Trelstar ® and certain BGx products.

Gross margin: For the quarter ended September 30, 2021 gross margin increased from 43% to 51% explained by a change in product mix, lower inventory provision recorded in Q3-21 compared to Q3-20 offset by the re-negotiation of certain license agreements and the depreciation of the LATAM currencies. The gross margin would have been 54%, an increase of 3%, from 51% after excluding the adjustment of hyperinflation accounting in accordance with IAS 29.

Selling and marketing: For the quarter ended September 30, 2021, selling and marketing increased by $2,227 or 29% and on a constant currency basis by $2,165 or 29% as compared to the same prior year period. Excluding, the allowance for expected credit losses, S&M increased by $1,857 or 25% due to increase in certain variable costs such as distribution and compensation as well as an increase in selling and marketing activities related to product launches and Exelon ® .

General and administrative: For the quarter ended September 30, 2021, general and administrative expenses decreased by $2,072 or 19% and on a constant currency basis by $1,814 or 18% as compared to the same period in prior year. Excluding the non-recurring costs incurred in Q3-20 related to the Unified Tender Offer of $3,490, G&A increased by $1,676 or 17%. The increase is driven by an increase in the variable compensation and certain professional fees.

Amortization of intangible assets: For the quarter ended September 30, 2021, amortization of intangible assets increased by $5,496, or 96%, mainly explained by the amortization of Exelon® acquired during Q2-21 partially offset by the depreciation of LATAM currencies.

Interest income: Interest income is the sum of interest income on financial instruments measured at amortized cost and other interest income. For the quarter ended September 30, 2021, interest income was $1,402, a decrease of $1,786 or 56%, compared to the same prior year period, due to a decrease in interest rates, the average cash and marketable securities balances and a lower average loan balance.

Interest expense: The interest expense relates to interest incurred on bank loans. For the quarter ended September 30, 2021 interest expenses was $959, an increase of $137 or 17% compared to the same period in the prior year due to higher interest rates.

Adjusted EBITDA : For the quarter ended September 30, 2021 adjusted EBITDA increased by $13,118 or 311% and on a constant currency basis by $13,637 or 369%, compared to Q3-20. The growth in adjusted EBITDA is driven by an increase in gross of margin of $17,901 offset by an increase in operating expenses adjusted for acquisition and transaction costs as well as non-recurring expenses.

Net loss or income: For the quarter ended September 30, 2021, net loss was $8,586 compared to net income of $17,492 for the same period last year. The variance mainly resulted from the above-mentioned items as well as a net loss on the revaluation of financial assets measured at fair value through profit or loss of $21,301 in the third quarter of 2021 versus a net gain of $12,873 in the prior year period mainly due to unrealized losses and gains on revaluation of the strategic fund investments.

Cash, cash equivalents and marketable securities : As at September 30, 2021, Knight had $156,029 in cash, cash equivalents and marketable securities, a decrease of $236,196 or 60% as compared to December 31, 2020. The variance is primarily due to cash outflows related to the acquisition of Exelon®, the shares repurchased through NCIB and the repayments of bank loans offset by cash generated from operating activities.

Financial assets: As at September 30, 2021, financial assets were at $189,743, a decrease of $4,212 or 2%, as compared to the prior period, mainly due to an increase of $17,063 due to mark-to-market adjustments offset by decrease of 16,652 due to net distributions in Knight's fund investments, loan repayments of $2,494 and disposal of equity investments of $2,624 during the period. Given the nature of the fund investments there could be significant fluctuations in the fair value of the underlying assets. During the quarter ended September 30, 2021, the Company recorded an unrealized loss of $20,629, as a result of the share price decrease of Singular Genomics Systems, Inc. ("SGS"), an investment held within Domain Associated LLC. Should the share price of SGS remain at this level, the Company would record a life to date unrealized gain of approximately $12,929 [USD 10,550] on this investment.

Bank Loans: As at September 30, 2021, bank loans were at $36,328, a decrease of $15,442 or 30% as compared to the prior period, mainly due to loan repayment of $14,911.

Product Updates

On September 22, 2021, Knight entered into a definitive agreement with Incyte Biosciences International Sàrl, for the exclusive rights to distribute tafasitamab (sold as Monjuvi ® in the United States and Minjuvi ® in Europe) and pemigatinib (Pemazyre ® ) in Latin America. Under the terms of the agreement Knight will be responsible for seeking the necessary regulatory approvals and distributing both products in Latin America.

Knight expects to submit tafasitamab and pemigatinib in key LATAM countries in the second half of 2022.

NCIB

During the three-month and nine-month periods ended September 30, 2021, the Company purchased 2,963,022 and 7,844,438 common shares for $15,361 and $40,907, respectively.

Subsequent to quarter-end, the Company purchased an additional 1,009,725 common shares for an aggregate cash consideration of $5,258.

Conference Call Notice

Knight will host a conference call and audio webcast to discuss its third quarter results today at 8:30 am ET. Knight cordially invites all interested parties to participate in this call.

Date: Thursday, November 11, 2021
Time: 8:30 a.m. ET
Telephone : Toll Free: 866-269-4264 or International 1-647-792-1240
Webcast: www.gud-knight.com or Webcast
This is a listen-only audio webcast. Media Player is required to listen to the broadcast.

Replay: An archived replay will be available for 30 days at www.gud-knight.com

________________________________________________________________________________________

About Knight Therapeutics Inc.

Knight Therapeutics Inc., headquartered in Montreal, Canada, is a specialty pharmaceutical company focused on acquiring or in-licensing and commercializing innovative pharmaceutical products for Canada and Latin America. Knight owns Biotoscana Investments S.A., a pan-Latin American specialty pharmaceutical company. Knight's Latin American subsidiaries operate under United Medical, Biotoscana Farma and Laboratorio LKM. Knight Therapeutics Inc.'s shares trade on TSX under the symbol GUD. For more information about Knight Therapeutics Inc., please visit the company's web site at www.gud-knight.com or www.sedar.com .

Forward-Looking Statement

This document contains forward-looking statements for Knight Therapeutics Inc. and its subsidiaries. These forward-looking statements, by their nature, necessarily involve risks and uncertainties that could cause actual results to differ materially from those contemplated by the forward-looking statements. Knight Therapeutics Inc. considers the assumptions on which these forward-looking statements are based to be reasonable at the time they were prepared but cautions the reader that these assumptions regarding future events, many of which are beyond the control of Knight Therapeutics Inc. and its subsidiaries, may ultimately prove to be incorrect. Factors and risks, which could cause actual results to differ materially from current expectations are discussed in Knight Therapeutics Inc.'s Annual Report and in Knight Therapeutics Inc.'s Annual Information Form for the year ended December 31, 2020 as filed on www.sedar.com . Knight Therapeutics Inc. disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information or future events, except as required by law.

CONTACT INFORMATION:

Investor Contact:
Knight Therapeutics Inc.
Samira Sakhia Arvind Utchanah
President & Chief Executive Officer Chief Financial Officer
T: 514.484.4483 T. 514.484.4483
F: 514.481.4116 F. 514.481.4116
Email: info@knighttx.com Email: info@knighttx.com
Website: www.gud-knight.com Website: www.gud-knight.com



IMPACT OF HYPERINFLATION

[In thousands of Canadian dollars]

The Company applies IAS 29, Financial Reporting in Hyperinflation Economies, as the Company's Argentine subsidiaries used the Argentine Peso as their functional currency. IAS 29 requires that the financial statements of an entity whose functional currency is the currency of a hyperinflationary economy be adjusted based on an appropriate general price index to express the effects of inflation. If the Company did not apply IAS 29, the effect on the Company's operating income would be as follows:

Q3-21 YTD-21
Reported
under
IFRS

Excluding
impact of
IAS 29

Variance Reported
under
IFRS

Excluding
impact of
IAS 29

Variance
$ 1 % 2 $ 1 % 2
Revenues 73,340 71,613 1,727 2 % 185,205 182,880 2,325 1 %
Cost of goods sold 35,574 33,202 (2,372 ) 7 % 97,988 92,685 (5,303 ) 6 %
Gross margin 37,766 38,411 (645 ) 2 % 87,217 90,195 (2,978 ) 3 %
Gross margin (%) 51% 54% 47% 49%
Expenses
Selling and marketing 9,990 9,666 (324 ) 3 % 26,787 26,345 (442 ) 2 %
General and administrative 8,763 8,100 (663 ) 8 % 25,296 23,935 (1,361 ) 6 %
Research and development 3,793 3,585 (208 ) 6 % 9,196 8,993 (203 ) 2 %
Amortization of intangible assets 11,199 10,262 (937 ) 9 % 24,136 22,469 (1,667 ) 7 %
Operating Income 4,021 6,798 (2,777 ) 41 % 1,802 8,453 (6,651 ) 79 %
1 A positive variance represents a positive impact to net income due to the application of IAS 29 and a negative variance represents a negative impact to net income due to the application of IAS 29
2 Percentage change is presented in absolute values


NON-IFRS MEASURES AND RECONCILIATION TO ADJUSTED EBITDA

[In thousands of Canadian dollars]

Non-IFRS measures

The Company discloses non-IFRS measures that do not have standardized meanings prescribed by IFRS. The Company believes that shareholders, investment analysts and other readers find such measures helpful in understanding the Company's financial performance and in interpreting the effect of the GBT Transaction on the Company. Non-IFRS financial measures do not have any standardized meaning prescribed by IFRS and may not have been calculated in the same way as similarly named financial measures presented by other companies.

The Company uses the following non-IFRS measures:

Financial results at constant currency: Financial results at constant currency are obtained by translating the prior period results from the functional currencies to CAD using the conversion rates in effect during the current period. Furthermore, with respect to Argentina, the Company excludes the impact of hyperinflation and translates the results at the average exchange rate in effect for each of the periods.

Financial results at constant currency allow results to be viewed without the impact of fluctuations in foreign currency exchange rates thereby facilitating the comparison of results period over period. The presentation of results under constant currency is considered to be a non-GAAP measure and does not have any standardized meaning under GAAP. As a result, the information presented may not be comparable to similar measures presented by other companies.

EBITDA: Operating income (loss) adjusted to exclude amortization and impairment of intangible assets, depreciation, PPA accounting adjustments, and the impact of IAS 29 (accounting under hyperinflation) but to include costs related to leases. In addition, EBITDA does not reflect the portion of GBT's results attributable to the non-controlling interests.

Adjusted EBITDA: EBITDA adjusted for acquisition costs and non-recurring expenses.

Adjustments include the following:

  • With the adoption of IFRS 16, the lease payments of Knight are not reflected in operating expenses. The IFRS 16 adjustment approximates the cash outflow related to leases of Knight.
  • Acquisition costs relate to costs incurred on legal, consulting and advisory fees for the acquisition of GBT and the acquisition of products.
  • Other non-recurring expenses relate to expenses incurred by Knight that are not due to, and are not expected to occur in, the ordinary course of business.

For the three and nine-month periods ended September 30, the Company calculated EBITDA and adjusted EBITDA as follows:

Change Change
Q3-21 Q3-20 $ 1 %
2 YTD-21 YTD-20 $ 1 % 2
Operating income (loss) 4,021 (7,735 ) 11,756 152 % 1,802 (18,303 ) 20,105 110 %
Adjustments to operating (loss) income:
Amortization of intangible assets 11,199 5,703 5,496 96 % 24,136 17,546 6,590 38 %
Depreciation of property, plant and
equipment and ROU assets
1,796 1,382 414 30 % 4,778 4,916 (138 ) 3 %
Lease costs (IFRS 16 adjustment) (744 ) (820 ) 76 9 % (2,141 ) (2,405 ) 264 11 %
Impact of PPA accounting 0 % 865 (865 ) 100 %
Impact of IAS 29 1,062 1,601 (539 ) 34 % 3,189 5,973 (2,784 ) 47 %
EBITDA 3 17,334 131 17,203 13,132 % 31,764 8,592 23,172 270 %
Acquisition and transaction costs 3,490 (3,490 ) 100 % 432 3,810 (3,378 ) 89 %
Other non-recurring expenses 595 (595 ) 100 % 113 2,663 (2,550 ) 96 %
Adjusted EBITDA 3 17,334 4,216 13,118 311 % 32,309 15,065 17,244 114 %
1 A positive variance represents a positive impact to net income (loss) and a negative variance represents a negative impact to net income (loss)
2 Percentage change is presented in absolute values
3 EBITDA and adjusted EBITDA are non-IFRS measures, refer above for additional details


INTERIM CONSOLIDATED BALANCE SHEETS
[In thousands of Canadian dollars]
[Unaudited]



As at
September 30, 2021 December 31, 2020
ASSETS
Current
Cash and cash equivalents 92,490 229,592
Marketable securities 63,539 147,316
Trade receivables 69,003 62,515
Other receivables 21,356 12,413
Inventories 74,912 56,505
Prepaids and deposits 2,840 2,214
Other current financial assets 13,878 34,431
Income taxes receivable 5,052 7,115
Total current assets 343,070 552,101
Marketable securities 15,317
Prepaids and deposits 3,443 4,208
Right-of-use assets 3,861 4,035
Property, plant and equipment 24,142 22,127
Investment properties 1,385 1,539
Intangible assets 359,432 156,547
Goodwill 75,999 77,725
Other financial assets 175,865 159,524
Deferred income tax assets 4,295 2,432
Other long-term receivables 43,706 41,582
692,128 485,036
Assets held for sale 2,416 2,539
Total assets 1,037,614 1,039,676



INTERIM CONSOLIDATED BALANCE SHEETS (continued)

[In thousands of Canadian dollars]
[Unaudited]



As at
September 30, 2021 December 31, 2020
LIABILITIES AND EQUITY
Current
Accounts payable and accrued liabilities 76,792 44,512
Lease liabilities 1,472 1,875
Other liabilities 2,040 1,291
Bank loans 36,328 51,770
Income taxes payable 11,389 13,559
Other balances payable 4,532 1,053
Total current liabilities 132,553 114,060
Accounts payable and accrued liabilities 248 316
Lease liabilities 2,718 2,543
Other balances payable 11,208 14,900
Deferred income tax liabilities 18,290 21,616
Total liabilities 165,017 153,435
Shareholders' Equity
Share capital 652,681 694,351
Warrants 117 117
Contributed surplus 21,470 18,731
Accumulated other comprehensive loss (1,202) (1,503)
Retained earnings 199,531 174,545
Total shareholders' equity 872,597 886,241
Total liabilities and shareholders' equity 1,037,614 1,039,676



INTERIM CONSOLIDATED STATEMENTS OF INCOME (LOSS)

[In thousands of Canadian dollars, except for share and per share amounts]
[Unaudited]

Three months ended September 30,
Nine months ended September 30,
2021 2020 2021 2020
Revenues 73,340 45,239 185,205 144,328
Cost of goods sold 35,574 25,706 97,988 82,698
Gross margin 37,766 19,533 87,217 61,630
Expenses
Selling and marketing 9,990 7,763 26,787 26,928
General and administrative 8,763 10,835 25,296 27,424
Research and development 3,793 2,967 9,196 8,035
Amortization of intangible assets 11,199 5,703 24,136 17,546
Operating income (loss) 4,021 (7,735) 1,802 (18,303)
Interest income on financial instruments measured at amortized cost (188) (1,754) (1,721) (7,477)
Other interest income (1,214) (1,434) (3,465) (4,038)
Interest expense 959 822 2,287 3,070
Other expense (income) 286 (243) 193 (133)
Net loss (gain) on financial instruments measured at fair value through
profit or loss
21,301 (12,873) (16,644) (22,642)
Net gain on mandatory tender offer liability (10,502) (12,072)
Realized gain on sale of asset held for sale (2,948)
Realized gain on automatic share purchase plan (4,168)
Foreign exchange (gain) loss (7,143) 703 252 9,666
(Gain) loss on hyperinflation (92) 401 (214) 1,205
(Loss) income before income taxes (9,888) 17,145 21,114 21,234
Income tax
Current 1,351 (3,079) 1,293 1,386
Deferred (2,653) 2,732 (4,155) (3,679)
Income tax recovery (1,302) (347) (2,862) (2,293)
Net (loss) income for the period (8,586) 17,492 23,976 23,527
Attributable to:
Shareholders of the Company (8,586) 18,094 23,976 33,834
Non-controlling interests (602) (10,307)
Attributable to shareholders of the Company
Basic net (loss) earnings per share (0.07) 0.14 0.19 0.26
Diluted net (loss) earnings per share (0.07) 0.14 0.19 0.26
Weighted average number of common shares outstanding
Basic 123,059,239 130,867,769 125,946,921 132,346,922
Diluted 123,059,239 131,051,220 125,970,589 132,614,809



INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS

[In thousands of Canadian dollars]
[Unaudited]

Three months ended September 30,
Nine months ended September 30,
2021 2020 2021 2020
OPERATING ACTIVITIES
Net (loss) income for the period (8,586) 17,492 23,976 23,527
Adjustments reconciling net income to operating cash flows:
Depreciation and amortization 12,995 7,085 28,914 22,462
Net gain on financial instruments 21,301 (12,873) (16,644) (22,642)
Unrealized foreign exchange loss (6,443) 703 (1,087) 9,666
Other operating activities (1,366) (5,398) 689 (17,220)
17,901 7,009 35,848 15,793
Changes in non-cash working capital and other items (7,580) (15,421) 4,089 (32,295)
Cash inflow (outflow) from operating activities 10,321 (8,412) 39,937 (16,502)
INVESTING ACTIVITIES
Purchase of marketable securities (662) (47,895) (37,778)
Proceeds on maturity of marketable securities 32,440 146,896 226,999
Investment in funds (5,359) (2,010) (10,963) (15,010)
Acquisition of shares through mandatory tender offer (170,855) (170,855)
Proceeds from distribution of funds 2,042 14,887 13,412 26,996
Purchase of intangible assets (1,705) (1,191) (220,198) (14,024)
Proceeds on sale of asset held for sale 77,000
Other investing activities (688) (844) 4,000 (175)
Cash (outflow) inflow from investing activities (5,710) (128,235) (114,748) 93,153
FINANCING ACTIVITIES
Repurchase of common shares through Normal Course Issuer Bid (17,864) (3,736) (40,907) (35,001)
Principal repayment on bank loans (701) (14,911) (8,219)
Proceeds from bank loans 2,325 2,325 10,998
Other financing activities (668) (711) (1,931) (1,636)
Cash outflow from financing activities (16,207) (5,148) (55,424) (33,858)
(Decrease) increase in cash and cash equivalents during the
period
(11,596) (141,795) (130,235) 42,793
Cash and cash equivalents, beginning of the period 102,582 359,593 229,592 174,268
Net foreign exchange difference 1,504 293 (6,867) 1,030
Cash and cash equivalents, end of the period 92,490 218,091 92,490 218,091
Cash and cash equivalents 92,490 218,091
Short-term marketable securities 63,539 158,944
Long-term marketable securities 15,317
Total cash, cash equivalents and marketable securities 156,029 392,352

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Leveljump Q3 Earnings and Results; Record Quarterly Revenues

Leveljump Q3 Earnings and Results; Record Quarterly Revenues

LevelJump Healthcare Corp. (TSXV: JUMP) (OTCQB: JMPHF) (FSE: 75J) ("Leveljump" or the "Company"), a Canadian leader in B2B telehealth solutions, is pleased to announce today it has reported financial results for the third fiscal quarter ended September 30th, 2021. All amounts are expressed in Canadian dollars.

Financial and Operational Highlights

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Thermo Fisher Scientific Confirms Detection of SARS-CoV-2 in Samples Containing the Omicron Variant with its TaqPath COVID-19 Tests

- Thermo Fisher Scientific Inc. (NYSE:TMO), the world leader in serving science, today confirmed that its polymerase chain reaction (PCR) TaqPath COVID-19 Combo Kit *, and TaqPath COVID-19 CE-IVD RT-PCR Kit *, which test for the presence of SARS-CoV-2, are not impacted by the emerging B.1.1.529, or Omicron variant, enabling accurate test results.

The Omicron variant, which was designated a " variant of concern " by the World Health Organization (WHO), has more than 30 mutations in the spike protein alone. The WHO has reported that preliminary evidence suggests an increased risk of transmission compared to other variants of concern. This designation and information are leading to renewed travel restrictions and research to examine the variant's impact on efficacy of existing vaccines and tests. The WHO and European Centers for Disease Control have both reported that using S-gene target failure (SGTF) of the PCR assays as a proxy for the variant helped to identify Omicron. Cases of the variant were first identified in South Africa and have now been reported in at least a dozen countries around the world.

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UPDATED - Leveljump Healthcare Corp. Announces 14.6% Minority Investment in Real Time Medical

UPDATED - Leveljump Healthcare Corp. Announces 14.6% Minority Investment in Real Time Medical

LevelJump Healthcare Corp. (TSXV: JUMP) (OTCQB: JMPHF) (FSE: 75J) ("Leveljump" or the "Company"), a Canadian leader in B2B telehealth solutions, is pleased to announce that, subject to regulatory approval, it has agreed to acquire an outstanding 14.6% minority equity interest in Real Time Medical Inc. ("RTM"), a private Ontario company, in exchange for 2,494,576 units (a "Unit") of Leveljump. Each Unit will be issued at a price of $0.66 per Unit with each Unit being comprised of three (3) Leveljump common shares at a deemed price of $0.22 per share and one (1) share purchase warrant of Leveljump, each warrant entitling the holder to acquire one additional common share of Leveljump at a price of $0.35 per common share on or before December 31, 2023.

The equity interest in RTM was acquired through a mini-tender offer to the shareholders of RTM dated November 1, 2021 whereby JUMP offered to acquire up to 19.9% of RTM in exchange for the Units. The holders of the RTM shares who have tendered are all accredited investors.

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