International cannabis company Khiron Life Sciences Corp. (TSXV: KHRN) (OTCQX: KHRNF) (Frankfurt: A2JMZC) posted a $2.6 million loss for the quarter that ended Sept. 30, primarily due to a downturn in medical marijuana sales in Colombia.
Revenues were down by 24% for the quarter overall, Khiron reported, to $2.5 million from $3.3 million in Q2, “due to an interruption in insurance-covered prescriptions for Colombian patients during the new change of government.”
That situation is temporary, Khiron emphasized, and reported that the new Colombian government is “reviewing the protocols for use of medical cannabis … to create a more robust financing framework” within the country’s universal health care system, suggesting there could be more market opportunities in the South American nation.
CEO Alvaro Torres said in a news release that the quarter held “transitional challenges” in both Colombia and Germany for the business, but he said Khiron will continue “to evaluate all strategic opportunities and financing options.”
Khiron also secured a $521,000 loan from a Colombian bank to continue operations there and entered the Brazilian market in October with the opening of a medical cannabis clinic in Rio de Janeiro.
In Europe, by contrast, Khiron reported that revenues skyrocketed by 141% year-over-year, primarily thanks to market reforms in the United Kingdom.
Khiron also noted positive developments in Germany, where Khiron acquired Pharmadrug GmbH. that deal will allow the company to sell cannabis products directly to pharmacies. The acquisition also enabled Khiron to enter the Switzerland medical cannabis market.