Khiron Life Sciences Corp.

Q3 2021 Earnings Conference Call

11/22/2021

spk_0: good morning and welcome to the key long life sciences reports third quarter of fiscal you're twenty one financial with as conference call ah participants will be emotionally mode should you need assistance to signal carpet brush with person is dark he followed by zero after today's reputation the will be opportunity to ask questions to ask questions you michael jordan line telephone keep out to withdraw your question please got started to please notice that has been recorded on like that and costs over robert bloom please go ahead
spk_1: i thank you very much i am pretty good morning everyone and thank you for joining us today i brought up mom and with me on the call today are elbow torres chief executive officer swap and kaka manu chief financial officer and francisco quarterback europe president your region please note the following caution respecting forward looking statements which has made on behalf of hi run life sciences and all of it's representatives on is called the statements made on this call will contain forward looking information that it involved risks and uncertainties including those introduced by the coven nineteen pandemic actual results could differ materially from a conclusion forecast or projection in the forward looking statements information certain material factors or assumptions were applied and drawing a conclusion or making a forecast or projection as reflected in the forward looking information additional information about the material for factors that could cause actual results to differ materially from the conclusions forecasts or projections in the forward looking information and the material factors or assumption that were applied and drawing a conclusion or making a forecast or projection as reflected in the board looking information are contained in cairo life sciences filings with canadian and provincial securities regulators which are available on the seat our website at as e d a r dot com to provide a brief agenda will start with a discussion of the quarter were overall walk through some of the key highlights before he turns it over to swap and run through the guy ron financial results after that we'll dive into key catalyst and each market that will drive growth and will wrap up with a q and a session now that my pleasure trying to call railroad torres ceo and director please proceed
spk_2: thank you rather than the thank you everybody for joining us today today will be discussing what financial results for the third quarter
spk_0: these results of the to show problems unique and stronger what page of book by the geez
spk_2: you were breaking significant in your gross profit milestones this is been five straight for of continues to gonna be sweating use we more than eighty five percent gonna drop in latin america that isn't that we are compared to show up very strong global medical services business that will continue to attract and retain basis the i think we are you just the first think it's more potential than cause i'm very proud of the key who hasn't been accomplished acknowledgements arbitrary between he recalled circumstances worldwide me i think what we've been able to chiefs of always plays a guy them at the top of these new made
spk_0: medical industry at the america and europe i hope that the today's you'll be able to see the catalyst over the take us to the next page a next quarter and be
spk_2: i had to go to them going to ask swap on they were see a book to provide more details of the financials and then myself under and i'm cheating because he the bureau will return to calculate you about the operational highlights or what we're looking at the next the new that are going to could you could feel peace a tremendous get out the be able to show his what did you sort of please
spk_3: take your though
spk_4: that morning everyone and johns colds morning money the soccer talk about the chief financial officer for tehran just wouldn't give you a little bit of update on them use was margin extensions and either side of the balance sheet picture overall revenue or in cute three to eight anyone the computer called revenue three point five million an increase of twenty six percent sequentially and eighty percent year over year
spk_3: medical cannabis revenue increased twenty six percent for the prior quarter reaching or one point two million in total medical cannabis products complicated thirty four percent of total revenues and eighty percent of the gross margin their gross profit
spk_4: given by growth in medical cannabis the company achieved a gross profit margin before fair market value judgments or forty eight percent or one point seven million reflected rejecting of over twenty five percent increase from cute three twenty twenty mainly due to the contributions for medical cannabis sales with a margin of hundred percent
spk_5: in the quarter
spk_4: gross profits for medical cannabis are mainly a result of sales in colombia where prices has been stable and pesos while approximately purpose in of medical cannabis gross profit a cute you try to anyone will contributed by european operations which are accounted for on that basis contributing gross margin of hundred percent now let me just go a little bit of details between medical cannabis and health services first medical cannabis medical cannabis revenues increased for six percent sequentially and nine hundred and ninety six percent year over year you're europe represented thirty one percent of medical cannabis revenue an increase of central presents you currently medical cannabis sales increase due to continued growth in colombia supportive of the company's expansion
spk_2: standing clinic or that work and the continued support from insurance coverage
spk_4: which began in december two twenty along with the continued growth tell the uk and germany or latin america represented sixty percent of medical cannabis seven years of the region's going to be an increase of thirty six percent sequentially and to closer to seven percent year to year now health services are looking at are also says segment which includes a revenues and cause for the last and virginia health centers are reminiscent you to twenty twenty one increase twenty eight percent from two three to twenty two two point three million as a result of the reduced impacts from call it
spk_2: my team literate sections which limited operation significant to out que three twenty twenty
spk_4: but after a certain surgeries could not be pro provided in current period you to restrictions this has gotta be a job luck but backlog of services which we expect to see contribute to operating activities or the coming quarters oliver than the gross profits or this girl in more detail to the gross profit or the gross profits continue to benefit from growth and the are higher margin medical cannabis segments as mentioned a moment ago thirty for percent of the total to three revenues were attributed this like that quite significant medical cannabis contributes to a percent of gross profits little fair value of the quarter in the ninety percent range of medical cannabis margins you mean high and were consistent with the previous two quarters gross profits or before fair value of the games of one point seven million cute you to a genuine slightly higher than two to twenty twenty one which had a significant decrease due to the help those segments limited to reduce complex surgery as roots are coordinating a dark the mentioned above and the impact of foreign exchange a to the limitations of offset by hi contributions for the medical kind of the segment the doing a net affair adjustment also it about one million and and one point three million the gross profit recognition eighty three and nine months and it's up to look at literally twenty one a one point eight million and five point two million respectively the present the increase of ninety five percent and hundred nineteen percent respectively compared to the prior year period which include which included the temptation to the company accounting for bandage could accept a fair value follow commercialization despite weakness in the clinic segment i want to highlight that are we still achieved consolidated gross margins in line with our highest levels to date you to the growth of medical cannabis rebels of groupie touch and expenses are expenses which is listening to engineer sales and marketing or the at shepard's compensation put together in the tree and nine months ended september thirty or twenty twenty one decreased by forty percent and sixty percent respectively from the prior year compared a periods as a result of reduction in all categories of what with exception of research and development which we have considered a little bit more cute you to twenty twenty one of the company continues two prudently manager sources with the ongoing pandemic or total expenses for the quarter have remained consistent with que to twenty twenty one slightly urge you to twenty twenty
spk_2: totally one of by decreasing by one percent the the previous quarter to to play to one compared to twenty to one expected reduce their one percent are evident net loss our adjusted ebitda loss for cute you to a jury one was nor at three point eight million compared to last a four point seven million for example
spk_4: we're in twenty twenty and and adjusted ebitda loss was look at level twenty eight million for the nine months ended september thirty two twenty compared to a loss of what it's like formula for nine months period of twenty twenty let loss for you to talk to anyone was lower at two point three million compared to a net loss of six point seven million for the same quarter and twenty twenty and the lower it net loss of good point six million for the nine months ended september thirty two twenty one compare to enact laws of twenty one point seven million for the same period into a twenty or quickly on the balance sheet looking at all she'd are reproduced a quarter with the fifteen point four million cash
spk_2: the non obligations of columbia continue to reduce in line would be a payment obligations i'm creating opportunities to leverage or balance sheet to support continued god's going forward or with that in mind i will ask allow ceo and francisco or your president or to provide more details
spk_4: on up you to be operational highlights and countless why rem
spk_6: about you
spk_2: thank you swap i'm like you put to that
spk_0: the officer before i think these results
spk_2: the and we have been able to accomplish he first nine months continue to show that we have a very unique strategy gets all day and old month capture more patients converting them to cannabis and retaining and daddy what's gonna continue to drive our growth in the martyrs lucky america and europe every day we
spk_0: he more patient no team challenge just more medical cannabis worldwide that we get the day before did he have any because we have a commitment to i just for patients in a bit of jewellery and we're certainly becoming i want to be leaders or the leader in this category in the market the were diary the lucky america long we sold over fifty thousand medical gonna unique each which she's almost three times as much as we sold thirty thousand twenty and we still my a very strong gross margins about eighty five percent which archetypal good as large you don't see him like american market get exactly came on so we're very excited
spk_2: that we've been able to accomplish decent the worse right now selling gonna get it would assume that the american city mexico i mean you don't know medical cannabis in the uk and germany in be at you know by our main course you're ready your health services and medical cannabis we compete increase the total number of asian interactions that we see
spk_0: the first nine months of this year we've already exceeded the total number face a comfort or cleavage from two thousand and twenty and will continue to do they work of competing insurance companies to cover medical cannabis for the patients they all that work has been that over fifty five percent accumulated of the prescriptions are covered by insurance
spk_2: there right now what can we do major companies we will add more insurance companies to be more evidence on the economics and had a child benefits of gotta be stuck to show up and really just create a huge potential outside to the beach of them were really doing and the more outcomes we can show where the more better the patients are you are getting with monica calif the more wreckage began half dozen cute three alone sixty three percent of the patients that we seek medical care for returning patients and this means that our could all be sustainable and that are aware that way to we look at the future it be very bright more page a mean the more like sticky we can make our revolution on our girls broken arm and of course how to distribute improved a lot of stability and increasing the reached a new base because of these we are planning to open to more mid sized health centers around three thousand square feet each by eldridge you one the here we are going to be located in very large shopping malls in order neighborhoods a bullet that which are becoming she was killed care hard for insurance company flags and this expansion would allow us to be closed patient neither a power sharing your flash so we can focus on the out of pocket patients and expand our capacity by more than what we have
spk_0: today and peace will continue to drive the revenues and profits of more that shelves and can establish that your efficient that we haven't columbia that we are baby or should we be able to clean slate in other countries have lucky america and you this expansion probably at the request of our client we wee to find this weapon was mentioning this expansion to respond could be fine with tools with colombian banks could be leaving a model and i'm looking at how fast we are actually growing on how much you're selling and our bridge decalogue get becoming a more casual neutral or so the movie expanding we will add more patients are more insurance companies where we need to boost your brother to the pipeline and of course the group or pejic i'm partial because i'm meet today almost one of the patient but go to a came to connect with the kind of prescription and more than fifty percent of those a does get insulted you can he was so concerts and sixty percent of the patients like prescriptions were returning to base and there is no terrestrial number or i looking at that the held increasing day today if they let you go we began fail to without fear into each quarter hour or so celtic reached fifty percent from get the to go to be forty two i was actually more than two hundred patients served you expect
spk_2: we the first one of operations were kinda gives it a new september we could have already lost their that a doctor in our clearly he said amia prescribes eleven times as much as an external doctor use the tradition traditional farm approached with from things to showcase that these a strategy of the last two years of building three weeks he became patch for me
spk_0: what track with a patience either way to we're going to have been doing i would girl and that same model the amount of sporting more context just two years ago we had only the locations to they we have no other people were exporting these model motion to get up is gradually get on i'm in a few we are going to focus on building our first immediately get really nato we will they be selected the location we started for for construction and were looking to be able to begin operations in there with you one of to talk to one i think we will see great success and dirty with that little strategy we have the right been the right product i gotta it the right march you have now working on the portal filed for
spk_2: just project would be would she be and we feel that this will allow us to expand the product offering that lack of last new mexico and don't just poking we're that lucky american
spk_0: there is a marked a guy with very close to an even though we are not able to provide more details on a girl hurt us we have done what i can say that were what do they put patients medical can lead to the county which nobody has be able to achieve yet a we are bouncing and and created alliances with hospitals and health centres all across the country so we can to me so much to be the a brand that locations actually people who are we continue to to can doctors a medical care is not only in theory but also practice wearing a doctor symmetrical to cologne get further because they can get trade in our flagship saying and more with and dad which will allow us to please the wheeling of those doctors to prescribe once you have to throw up in makes a young baby circle will be electrical very soon and we barely very confident that once you get there we will be technique she did mark tip because a his company knows how to prescribe medical cannabis we know how to convert a patients to use medical cannabis as possible possibly we know how between a complete stop there's a matter of regulations are and we're closer than ever to getting those for sale and i couldn't you know the phone give it to france he would be detrimental jordan european abrasions you're becoming a more significant or about this it to that represents more than thirty percent of america gun sales that we just started barrier no not too long ago i'm even be fairly stages we see how these glowing a wifi tremendous got them for that but i would ask a friend feed you can either be back on a but we're in europe next got the least on why we are so born in chicago european market and our strategy that's be paying out lately types of growth and profits
spk_7: country yes thank the alberto hello been a fan of that and gotten pack to everyone we cannot be more excited about the market where we can be very compatible bring out directly into countries like the uk and germany in here three car and up recorded gruff profit for european medical fair kind of a failed of more than three hundred seventy thousand canadian dollar and to our business strategy in the region and the recent quarter or failed in the uk and germany increase significantly quarter of a quarter by seventy percent of the uk and more than hundred percent in germany this with many supported by the continue training of prescribers with a what in feel they have fourth and are online trading platform car and academy as a result europe accounted for over thirty percent of the que three medical cannabis help europe is becoming and will still continue to be a major driver for growth and profitability in europe you might have free and that we just recently about the opening of cairo render are connected you play with the hybrid clinic model which means that we can both to fully online combo patients for patients but also in in person appointment with medical cannabis passionate which helps with hybrid model to be able to serve each patient meet you could throw it has been from day one very important that the patient me big pay what we're going to to one of the key aspect to our strategy of taken all the real world evidence regenerating in columbus columbia in order to persuade doctor stop the benefit of medical cannabis and turned them into medical cannabis prescribed we're all very excited about our first publication on medical cannabis side to the outcome which will be published very soon on a index journal this not create an even greater ability then the doctors community in the uk germany which will then drive more evident on our product
spk_0: oh now i want to take a closer look at germany in two or three we called approximately twenty three thousand grams of dry flower took them germany
spk_7: proud to say that our high cbd flower our car when one fourteen became the leading product in the german high cbd flowers fact but
spk_0: before water are our future cabinet for germany we will definitely continue to press grain be trained prescribers i the are expanding infield feel point on top of that love to introduce new product and different categories very soon including you can have a reputable from our colombian varieties
spk_7: last but not for youth i want to share wonder recent updates which i'm sure many of you already read the future government of germany just excited to legalize adult you of cannabis so what does that mean for kind you're up for as it has been great news while we still have to wait to see how the find about lovely looks like we will still continue to establish an and bill that our president and germany and our brand and wow we've to execute we increase our medical field for it and of your if the market for new development and opportunity and what just lived relief mean threat that it's bill that is that migration of the park itself which we think can tremendously dry future a medical field script because we have to keep in mind germany of my kids were the product for medical use fully reimbursed by the government now even germany let's move north to the uk into three of the few we sold over ten thousand grams of dried flowers with are too kind of a fly by it is in the uk weird may have to be able to say that we've captured almost fifty percent of the high thc flower market in project twenty twenty one during the quarter we also continued to maintain an excellent patient feedback back on our quality of product leading to a buyback rate of seventy seven percent also our recent launch all grown up in the uk will facilitate for the script for current product finally carbon academy which is not for online medical cannabis he learning platform for doctor had been completed by hundreds of doctors than that pam adults also in europe and the certainly broadens our troops by debate coming now to our it uk cabinet we will continue to train independent voters and in the uk through our kyle academy in addition we will also deployed the very same medical product categories for us and europe which we do in germany so we can cater the growing up patient
spk_8: we have also expanded our clinic footprint to in the uk with our the read the alcoholic the uk and we have the ability to picnics it can be improved the quality of reliable care and medication that a lot of kind of of patients in the uk i simply unable to find anywhere else
spk_0: don't thank you all very much welcome lot of capital of coming to continue quite in europe and to my kira one of the few truly global medical cannabis companies like in the last quarter's our main focus is on execution to build out or marketeer thank you we will now begin the q and a session the a question humor star than one your telephone keypad
spk_8: if using a speakerphone please pick up your hands of before pressing the keys
spk_9: to withdraw your question please post starting to a good time will pardon amateur from here roster our first question comes from aaron gray with a line google partners you may go ahead i got more thing for the question think that on the corner
spk_2: i'm so first question for me i'm so want to start with colombia talked about enough to insurance companies re looking to add more legit and contract of the timeline of or maybe were you on our seasons to adding more insurance companies and then maybe to provide maybe you the market share
spk_0: those two insurance companies you currently have how the toi market and may be be to op could you haven't terms of adding ah no additional charge companies to get know
spk_2: the opportunity get patients in colombia that nothing about that kind of in own damn an opportunity with in the market thing
spk_0: thank you adam
spk_2: so insurance company said in a in okay
spk_0: already worked with each teach teenagers company for our regular service the conversation for mostly about showing departmental economic benefits gonna be before the and a cordless other okay that we can we can of the drop of blood with the political gabi pandemic been such an important part five insurance companies thought but i can say that day
spk_2: large the agency to be able to add at least one more id by two three and continue with an original every quarter starting next year in i'm so would you asking about what what that means to spur growth on not to be a would say that when we look at been insurance me
spk_10: market and what because in a lot of the a boost they believe he sure and throw i would say with confidence that titled certainly had more than eighty five percent of the total colombian approved you shouldn't product of medical cannabis knife in your puppy different grow older are great because what loads of do
spk_2: we have out of pocket patients were coming up paying on the own and also helping us to provide a job in what pressure for insurance companies to accept those trousers and i get these distractions going on much but am i think the more information able to sure will be shamed companies the more positive outcomes were able to show
spk_9: that tweet make it the conversation a lot easier now of course being as one of the to ones that she had conversations with they can you be more more time look at the be outraged and be good just week with dangerous weapons we have today the week we had no we are both certain that we will continue to exceed one on water or on the revenue sales columbia so a older gentleman will be a shoe shop say for us
spk_0: the flacco that's really helpful on earth and quest for me i just wanted to columbia
spk_2: it's really ridiculous as you guys have the maybe some of the other line american arm copies or don't read my think of when it first thing of line america cannabis arbitraging about maybe some the barriers you might have to entry you know if others were to take more of a formulated products strategy on or order and a birth of a life and date and time i think
spk_0: maybe do more the clinic's amadeu antonio product of a patient's i'm speaking about moved on the bears and you might have been competitive advantage we have today and how they could all be for how many off the kind of paper route thank you
spk_2: where are the i think the bigger for provide bounties the title has and week showed the love that year the hobby that we are extremely focused on generating the man and greeting access so that means the we're constantly creating more both some thought of a pity because if your title beijing that only do have a stroke sure you get
spk_0: illegal really quickly you have a and thirsty for a quality we have patience for the watched a short for the patients comfortable with that talking about cannabis we don't do we do follow up and be on the appointments with the doctors are we'll do i would say a very good job of showing that those patients are been well treated at the same time we're providing oh old is amount of information and data on the evidence of canopies that we can get better conversation with insurance companies a and i would say that even though they would be a time when we can start looking at ready to blow which of course we are speaking about the main challenge that we have and that patients don't know they needed and
spk_9: doctors don't know how to prescribe anti german sentiment a because we're still get area stages so that is to say that i think that advantage that we have built the beginning of the a be guilty but we have expanded it's getting a more difficult to try to catch up with a company that moving so fast now
spk_2: we we cannot get complacent on be some because it usually need to continue thinking how do we waste products out we trade more doctors how do we start stepping outside our kids but even today even to be on i'm donald duck of guide or can prescribe twenty times as much for mark has endured and of doctors because he began
spk_0: applied trying to help the patient to get the the prescription have to buy insurance company had that takes a lot of know how on databases so i would say that they would be able to feel because that would destroy the company from the beginning on are likely we will complete my babies news for many years
spk_11: alright they grew to to the gonna go on jump back and give
spk_7: thank you very
spk_2: our next question comes i'm jack feuding with research capital you may go ahead tyrone budgeting our questions well done this quarter my first question relates to mexico and whether you and you mention that you're preparing for regulation and i was wondering if you have any update on regulation of mexico and it's timing am hijack they like you so much for your for your question and so when we did but mixed with two separate there's two types of regulation medical i'm get don't use a i would start with i don't use there's been several conversations lately the past couple of weeks of maybe more really dude timeline on getting fashion is built up loop i go to mexico
spk_0: the conversations you here but we'll keep that they want to get approved be here that could change because he the and we all the trial it for for congress always and we'll be there keeping a even if i were to happen to still be some time required to actually a very late don't loss but of course for sure i think that would be a huge marketing in either way
spk_2: won't economy went when adultery gets legalize but i got paid the outcomes of that would be nice or the media he made it out i think they'd be the challenge today and i think what's what
spk_0: interesting for as he got even though it's a lady our legal for medical a be regulations for import quality controls the sensation and require very deep understand that we can talk to the up authorities and show them what the fat piece but i i think that the
spk_2: way we've been able to approach the mexican authorities we work manufactured partners and to show that we have a unique understanding of the regulation
spk_0: we gonna get it in the very good position or at least a man first mover advantage
spk_12: i made two or three much i'm a guide on what the first company to ever so like a job is he columbia
spk_7: porn or the first company to sleep at all first company to actually people cannot listen to scotland so we have a very good
spk_13: regular korean spamming i only mexico would be the exception
spk_7: great you this cause my be for francisco but i was wondering if she can hide the biggest your biggest competitors and europe right now and whether you have any market share data yes bank so i i think the biggest competitor certainly come out from canada
spk_13: who came in when the legalization happened five what we're seeing as that even the big ones are losing some market share and we grow or a market share through europe and the last we've had it and germany our first product sales in march this year
spk_2: and since then we build our market share to almost percent of the dried flowers
spk_0: right flower market and within the last six months so this is the that i can share and in the uk were part of the project twenty twenty one and their recaptured about fifty percent off the how cute she tried flower awesome thank you i'm bar question the ad for twenty twenty two as wonder if you are considering scanning to any new international markets
spk_2: mm jack i think that even though they are your marketers go to open up to fix countries we have chosen to be mexico columbia do but a few you can germany are a provided him and this opportunity so we will look at peace other market or opening our put on that case by case basis but to be honest i was to focus a tree to get a building is dominant
spk_13: of them are building columbia the rest of these countries that maybe other of industry has played the without them is called the quote unquote destruction ah but i think it made me want to able to be leaders are you sick markets
spk_14: you basically
spk_0: doesn't seem to be yours my to be open about so that's that's what we're thinking right noncommittal exposure began that
spk_15: okay great thanks so much while don't score
spk_16: thank you jack our next question comes from federico gomez with a p b capital markets
spk_2: you may go ahead i more guys the congressional a quarter or think for for getting my question i just the about the margin to the medical cannabis stagnant know over a five percent of gross margins are really impressive but the did you see any risk of margin compression happening nor direct orders me
spk_0: google competition on colombia or iraq or get back those markets remain at adult levels thanks
spk_2: hi only go on
spk_0: i think those largest woman in thirty
spk_2: because you look about what business today billion the next two quarters
spk_0: in particular calling from the love your local neuropathy let your make up a we held ninety six percent the lower a woman or comes to our own network we had of course the got to be been caught and advantage that we're selling out i'd buy the product but now being covered by insurance what we think about privacy
spk_2: we take more about it in terms of how do we make sure that the out of pocket patients can continue the program so we do location discounts on or longer term a type of patients but bad he's a because we went out could be to make sure that they like a baby that beijing increases the we think about last year when
spk_13: we just started let's call it the ambulance lot and been buffet she would have been out with the dogs today we're talking and we're looking at an average lifetime value published about four hundred fifty dollars so
spk_16: that's the that we see eighty and i think the more we think about a medic our own can you translate what do you the uk where we can actually have had a better conversation with patients understand what those needs our i don't think that had to global be see any significant price compression and of course of the market expanded could be the dropping dad in two thousand twenty twenty three a beyond by also the same time we've already be a a very big position was trying to expand it more market share
spk_0: okay no thanks strength our that for that hundred color and then in terms of raw i your presence in brazil and that was now so you get you're planning to open that many to regulate you one ah you're when you're failed their to start to really become a to your to your financial them and max gonna get you touched on it but that should be expect you know a failed
spk_2: coming out of bear in now twenty twenty two as well thanks solyndra he a we've already started selling cannabis to the compassionate care is to actually say we have a reporter specific fields the old but i feel and feel these are becoming more meaningful we were planning to expand to start to be slaughtered by the you know currently doing and getting the right that when be able to get all the way the vanguard decent we can have those musician that because i'm a bit longer than we expected just got on your machine but we have mount right beside each other on drugs weapons and people are which started
spk_0: the disciples and build up at the way the we're doing the or beat everybody personally gonna be able to start a data breach of those chemicals to be multiple regression know early part of to one
spk_2: and i think that's gonna show up that know you to will will start to see meaningful results out of the sea and the if he perfume the follows the feedback of columbia which every copy that will do i think by the end of next year for will start out about a lot more he doesn't make you got i say if you know we are working on on briefings and
spk_16: one how to put the product they're i think we have very good idea of how close we can read but there's of course like donkey by recognition and paperwork and look limitations on there are still some knows that but and i think that knowledge on the timing whether use the months of too much not on their with way
spk_8: we are going to be able to do it at the same died were like compared with you study mexico the first granted we were when and fun she said we can that should i knew there were many have the doctors were played were asking us when he's coming and so i think that for sure that people will start generating sales
spk_17: two thousand twenty two most likely to start talking about and more me it you to of next year ah thanks i can get the going and a quarter of her back to you
spk_0: thanks
spk_2: our next question cause i'm greg the last would knock on securities you may go ahead my guys thanks for taking the question and our congrats on the results
spk_0: you didn't you mentioned strong results or peru i'm just wondering how we should think about changes their argued help us maybe understand how many doctors have been trained in peru and maybe what that looks like the and twenty point you yes hygienic so you know we started it all with got so do you have educated external doctors
spk_2: i would say that god what's been happening in the rules you started get this year
spk_0: we had more than yeah me neither six doctors prescribing alter i'll be dear watch tell you one hundred seventy five go to describe the gear each one prescribing almost ten or speeches by month and recently opened the king it because we know that in our own unbearably we can be proved that like consistently and if you look at the first monday september we have three doctors prescribing almost been lines as much per month or some external don't we just by get that get i'm very excited about been able to be totally of model successfully in a country like we do what we know there was more women based complications to be trial medical cannabis now i think it will be looking at you while google start to showcase and i'll be able to be more detail in terms of our operations reports or uplift are we going on the way i look at these we have to get the good old that is happening at how to be my favorite close get a good in colombia
spk_17: but we started selling into one or two thousand and twenty but carefully they can extract be very important factor for these are which he that the first month and i don't believe that we can do best effort to try to educate old it up as possible while we know that will be able to develop an ecosystem that be able
spk_10: to be exported and all of these guardians of the calculus to be able to say how can we prove that the in couldn't like next congress a because she still smokes arabia and i in the uk as well as if she tells radio shows is that we know how to the doctors in that in those places and we know how to get patients comfortable around town
spk_8: to be some how to improve the quality of life so they don't we put you to show those results garden mostly do we buy drinks
spk_18: i'm david is excited to be able to school to show that the strategies watching more than one country before out because we are lacking any and the cases in mexico for a field in the uk a different formats but it's really about how to be a kid themselves to capture those beasts okay great appreciate the color thanks thank you greg again if you have a question please post card and warner our that caution caution pablo zoo and neck with cantor fitzgerald you may go ahead good morning other i'm just just to try to put things in perspective right because i understand early days
spk_2: ah you know the secret were a lot of people make claims on and you're talking about be a global leader and your me you're gonna be shows at one point two million right side by know that we analysed for investors have to look forward to potential but mean a couple of questions here such a first when i look at your login american feels about a hundred and thirty three thousand
spk_0: on eighteen dollars would reporter right and you talk about also hundred units okay that's about fifty dollars per unit i'm just trying to get an understanding of for the quarter right how many patients are gonna be if you're gonna be surprising that in america
spk_2: and then if we can give you can help us figure we project that going forward and i mean special spending fifty dollars or to remind them in how many units per month just different job there with with with with with i'm feeling the standard it that the potential thank you thank you paul know just how are you absolutely right here to the barrier and stages i think go for the were coming down at the will be bolstered and he's work out is going to be done if i will check today but i think the way to were looking our business we're going to be something you're cheating those numbers quarter over quarter when we look up with a
spk_0: columbia we teach i now the biggest they said there are a motor a those complaint around the corner three we sold almost a you'll be beyond a shit thousand seven hundred patients or little yeah that means that the average kid at the average bottled water patients wrong one point five or one point six pages so the average monkey ticket increasing from and fifty dollars to somewhere around seventy five eighty dollars that me that age of buying more in the monthly basis and he doesn't happen because we are able to have more a patient occasion was sixty percent of these sixty seven have a big as well we totally patients and when we look at that projection we all have to think about what he did monthly new push new patient at the she she was today we are looking at penn
spk_2: and twelve fifteen percent per month and computer monday that people to to keep i personally think that month which is now buying one of the had one or the sheets but one of the how the one point six units they're not they're been found that fifty dollars baby are we looked so much expansion of the clinic's because we continue to see how many out
spk_0: god is based upon i've been with acoustics are we started last year he was one out of twenty patients them were being with a prescription at least one out of to be a bit more weeks span to st luke's of the more we have more patient their actions you can start the sense that it more conversion we need you to countenance a more
spk_18: what's happening that have were mostly a projecting our growth in the in colombia and think they can as are happening if they do actually have what they were returning a quickie the monthly a ticket some people prefer increasing because they are be charged coverage as well and because the product works so it's all about how many patients receive conversion to canada mutation a profusion of vegetation and that we turning into a bigger ticket sales per month and that's how we're making our our wedding so
spk_0: i think for makes water column it would continue to show that the opera double digit type of girl because we keep we keep adding new base and young to have to be pathogen retention and that will increase as we get one chance coverage as well but until from that point on figure that radio collared shirt those six hundred patients the or old covered it up our patients in colombia from a regular you know maybe not using kind of these are my aware in all be a public knowledge that insurance coverage covers are kind of yours or you know er doctors prescribing as a last resort i'm just astounded of the interaction directors of gardening those patients to come in how you market to them away people are aware that doctors can prescribe gonna use and under the insurance is available i know it's it's this a lot there but i'm just don't understand from just it the normal consumer point of view how much awareness you there about this is available and you may be covered by insurance thanks well on the so i would say anything that in our teenage you our clinics we have to types of face one the bigger population which are patient are coming to do arab chronic pain neurological services surgeries on the clip disorders and side
spk_2: that's that's a debate club the peace with a decent health services and that being said to us by the insurance companies are when looking at the it to be able to provide services for them which is why we also badly the because our division getting cooler the have no the opener just basically check you out of pocket
spk_0: agents are they're come to the king because they're seeing police began to facebook posts from people were going to have can we can have no a belly for reforms were willing to talk about probably and build we both got to the killing these clinics game in with the ethical for the balkans he or she may not be looking for a chance covers but every doctor tied are not every family support infrastructure that we hadn't the and the receptionist that is always a part of the conversation you know you can get it for free agent shows companies not going to covering it you can ask you wreckage teachers company to do that and that creates pressure insurance companies more and more to go back and call say how do we get this done hundred patients were coming regularly for know they're paying puzzled options what we have created for the be to educate those patients lord your gardens are also on the did you actually it on every doctor in the from the company understand canada and understand yet
spk_2: gasoline he had been tracking every day
spk_0: did you have believed people uneasy conversation
spk_18: we don't consider cannabis to be a turbine alternate i think the evidence that will be able to provide with our doctors understand that comedy's can be a first or second or third land treatment and that's a very big changing and wp because any doctor columbia can prescribe cabbage any doctor there's no requirements were dug the not to be able to do that it's really more about their understanding of he watch are not what out the dosage patients a specific defeated by patience and if you think about surrender bad information and that build them shopping on back so we the recently expanded clinton people former considerably can reach those out of pocket patients are coming we can offer insurance company seventy four seasons and keeping those patients that way he never ecosystem are really understand how to prescribe it on how to guide the patience for that they get that congress if you bought have any case sitting at the bake the wrong with asian dolls have to getting the prescription for about of education i'm also them the route of how do we make that throw the covered by the column and gorman be shows how do we believe they do at home and make that experience as easy as possible which was get more actress we can provide to the patients the more barrels of it and we can create another company want to replicate a month
spk_0: and as a thank you for my i just i went on and europe so i guess is a two part question one if you can remind us of your supply chain in your two percent i flowering germany or share and then you're sitting hypotheses lowering the uk is that your own for like going for own be out that to be and was from football party people just just a reminder on that
spk_7: the seven footer wishing he said yes we're all going to get excited about germany legalizing recreational cannabis potentially you'll be in position as american company there you know how you made a decision you know how much better you the to make i understand it's early days but it just seems to me that you know some companies it may or may or may not right be better prepared than others who doesn't benefiting from that opportunity germany and and i will let them stand better hope i'm not saying is not but how cairo would benefit based on what you have on the ground or into serving opportunity in germany but it's are we to for squish on the supply chain thank you and at all i'm not trying to get it may be better to he had to answer that a yeah so it'll currently behalf are both in the uk and in germany to product on high pitched you try flour and one high cbd power which are with source within europe and our plan is to broaden our product food but we also at x x and for their right flower product whatever is needed on the market i think our baggage fear that we were operating them country for it from years now we have a good understanding what's needed though we're more involved than are as at night model on the dumpster in part by convincing doctor to prescribe make them feel comfortable showing them evidence that kind of the to eight and the thick of the treatment and also book on the supply and the supplies beer so there's lots of grow within europe where we can force on different supplier of our product that answers your question when the and we're not acknowledge that our our product range will not be either flower or extra and will be both thank think
spk_0: and on your second question or very early park and about that
spk_19: i think we're a medical company for our group focused on the medical dumpster and pop your focus on opening channel got an act of the we're medical cannabis axis complete
spk_20: we have not a clear picture on how the law will look like and what will come what we can just say is that we have a close eye on that and one to come from we can definitely a fact if it makes sense that we also go into that market but without knowing how the novel look like it's just trust graphic positive view because cannot be still
spk_17: to certain extent big with high and when the german government has already paying for medical cannabis like when the german government is putting out that that the i say that oh we we think and looking into and making it out of you well it was just positive route because we just have to remember the patients will still be reimbursed if he got medical
spk_21: so i don't the
spk_17: a problem by either back again medical medical will with be there because i'm sure and paying for that
spk_21: right think
spk_19: or next question cause mark george with accord capital management you may go ahead
spk_2: yes can you hear me folks
spk_22: gifts mark
spk_2: good morning on congratulations on a fantastic quarter
spk_0: congratulations on fantastic growth i was hoping that someone or both of you are all three of you could speak to your thoughts on your revenue mix are you have multiple lines of revenue
spk_2: from surgeries which i know on hold to cannabis to medical treatments in general with or without cannabis and guy clearly the diamond in the rough is the cannabis margins and i'm just wondering how can you speak it all to your vision for
spk_0: are your future revenue mix between all those sources thank you
spk_2: thank you mark thank you mark if you look up
spk_0: our about for with no medical services on medicare talents i'm looking at cairo need the last year the how what one could play that disease or revenues and i'll go to going to be focused more on the health issues that it is really a platform for out to be able to
spk_2: watch more than that you look at last year last year he attributes of eight and a half million dollars to so we don't most part two thousand dollars worth of medical cannabis geez i think be that we've been live than five percent among limits this year to date ah we have already a by the end of the few
spk_0: will be reaching a number of autumn residence that's going to be around the be a little higher than twelve million dollars of in canadian dollars or were at least for million of that will be medical cannabis to be at a time inputs from what we have left here today he scored thirty five posts and the ourselves can pump damage at that rate of growth between a competing in the future i am and that means that looking at twenty two a big yawn you will start feeling that our revenues will be somewhere equaling dumps with medical cannabis on services our services read news will not knowing each he society that we go probably and fifty percent per year well as medical cannabis going to be fantastic wave of growth and mood moving beyond to complete would be done twenty three then you will we will start to continue to see that medical cannabis revenues are going to be the primary force behind were a little better but because we luca
spk_19: our services as a platform to be able to capture man them be able to generate you cycles probably be stupid you have since i will be intertwined in that guess today we think about the new surgery to to give up receive years because they're still have you become part of our business them to be all the reviews but look
spk_0: about twenty two and beyond abu have less exposure for company to those type of anomalies it goes up to seek that the seven wake up call me because nobody know how much candidates are now out of that three i'm happy for me that will be ending failed by the end of the here today germany will be a youtube will be around thirty percent of that but next year we're looking at a little conducting america to provide us almost ppp hm revenues are between those two reasons you have get banned to in europe were talking about you know european the evidence and uk pounds and latin america we have to think about people and currencies and they think that people became should have a bit of patience is gonna get a slap on the cellphone so if you look at just what we will think you
spk_2: put the in a big yard be able to grow forty five percent of the top nine and more than thirty local of profits which have driven by medical is what we really been doing the about you and have to build up clattenburg that generating high value
spk_0: i was really go shirtless providers a profit of twenty to twenty five percent ah but that really allows me to reduce the costs of up with each interview based what you're really going behind it be generating a lot more high by the sales and so the company so we'd be looked at you look at the last year from the show they sell certain to be so you know canada
spk_2: and the today that were saying well be they'll glowing their services but while the double the amount of calendar selling on the way that is going on you will see more that can be the health services or a platform that we're gonna continue to grow got to be able to generate a lot more kind of between use and of course very hyper that each the the next year
spk_0: thank you and thanks for taking my question other oh thank you mark so we're running out of time i went to er regina everybody for them for their time we just like you and by saying that a you can expect our brains to the growing who had looking at a be the year without and you'll be don't overcrowd me though canadian revenues that would be a year year growth of at least twenty five percent or more than
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