CEO, Jeppe Krog Rasmussen, comments:
Financials: Record revenue and positive EBITDA
DanCann Pharma closed Q2-2024 with a record revenue of DKK 3.86 million. For H1-2024, this resulted in a further record revenue of approximately DKK 4.55 million. Comparing this to the revenue of DKK 2.90 million for H1-2023, we have amassed an increase of 56.9% year on year for the first six months.
Translating this into actual packages of medicine sold, H1-2024 sales amounted to approximately 9,700 packages of medicine, an increase of approximately 40% versus the approximately 6,900 packages of medicine sold in H1-2023.
It is worth noting that we could have achieved even higher revenue if not for some minor supply issues with one of our products.
The Q2-2024 resulted in a positive EBITDA of 0.10 million. This is a strong development versus approximately DKK -2.30 million in the same period in 2023. This is positive and demonstrates the effectiveness of our revised strategy and new cost base. Also worth noting is that this development happens before the planned launches of new medicines.
For the H1-2024, EBITDA stands at approximately DKK -2.15 million (compared to approximately DKK -7.08million for the same period in 2023).
Capital structure: Zero debt and clean balance sheet
The Company completed its rights issue at the end of Q2-2024. This was expensive to execute, with bridge loans and our more extensive loan agreements terminated in exchange for conversion.
Net proceeds were slightly below expectations (approximately DKK 6.9 million subscribed before costs - excluding the top-down guarantors and costs associated with the conversion for shares) but manageable according to the Company's plans.
In the long run, this is positive as the Company now has a clean balance sheet free of debt and similar instruments.
Pipeline: Two new submissions
Two new submissions for two new medicines (FLS04 and FLS05) were made to the Danish Medicines Agency during Q2-2024.
The Company now has three applications under review with the Danish Medicines Agency (EXT02, FLS04, and FLS05). Unfortunately, EXT02 (submitted in December 2023) is delayed due to longer processing times at the Danish Medicines Agency, which is experiencing high demand and, therefore, has longer response times.
However, the Company remains optimistic about its approval (EXT02), expecting it to occur during H2-2024. The same applies to FLS04 and FLS05, submitted in June 2024 and expected to be approved by Q4-2024 before the end of 2024.
Adjusted guidance: Now, with intervals
To enhance the clarity of the Company's guidance, the management and the Board of Directors have decided to present it as a range rather than a fixed number. This approach establishes an upper and lower bound for the Company's guidance.
Furthermore, the guidance has been adjusted due to delays in the processes of the Danish Medicines Agency, which have also affected the Company's ongoing product approvals. As a result, the Company has slightly revised down its revenue expectations for 2024.
On the other hand, it has become evident that the Company has now achieved strong control over its cost base, leading to an upward adjustment at the EBITDA level.
Consequently, the adjusted guidance for 2024 is set at an EBITDA range of DKK -3.0 to -3.5 million, adjusted from the previous DKK -4.0 million, and a revenue range of DKK 11.0 to 12.0 million, adjusted from the previous DKK 13.3 million. We continue to anticipate a minor negative EBITDA in Q3-2024, followed by a positive EBITDA in Q4- 2024.
DanCann Pharma: Updated guidance for 2024
+--------+----------------+----------------+
|        |Lower range     |Upper range     |
+--------+----------------+----------------+
|Revenue:|DKK 11.0 million|DKK 12.0 million|
+--------+----------------+----------------+
|EBITDA: |DKK -3.5 million|DKK -3.0 million|
+--------+----------------+----------------+
Conclusion: H1-2024 showcasing the implemented strategic revisions
We concluded Q2-2024 with some positive achievements and several records, including:
-           Achieved the highest quarterly revenue in the Company's history
-           Delivered a positive quarterly EBITDA for the first time
-           Completed our rights issue, resulting in a clean balance sheet with zero debt
A necessary rights issue has marked Q2-2024 to restructure our capital base and balance sheet, which is now reset, giving the Company a fresh start.
Additionally, the Company achieved record revenue of approximately DKK 3.9 million in Q2-2024 and positive EBITDA. This, combined with two additional new submissions (FLS04 and FLS05), has led to many positive developments overall.
Step by step, the right foundations are being laid towards something great as part of the new revised strategy, with the Company well on its way to meeting its guidance and demonstrating strong execution in Q2-2024.
All the best,
Jeppe Krog Rasmussen
CEO, DanCann Pharma A/S
About DanCann Pharma A/S
DanCann Pharma A/S (SS: DANCAN) was founded in 2018 and is a Danish biopharmaceutical Company powered by cannabinoids.
DanCann Pharma A/S (SS: DANCAN) is listed on the Spotlight Stock Market in Copenhagen/Stockholm.
For more information, visit:www.dancann.com
For further information, please contact:
Jeppe Krog Rasmussen, CEO
E-mail:jkr@dancann.com
Forward-looking-statement:
Some statements in this release may contain forward-looking information. All statements, other than of historical fact, that address activities, events, or developments that the Company believes, expects, or anticipates will or may occur in the future (including, without limitation, statements regarding potential acquisitions and financings) are forward-looking statements. Forward-looking statements are generally identifiable by use of the words "may", "will", "should", "continue", "expect", "anticipate", "estimate", "believe", "intend", "plan" or "project" or the negative of these words or other variations on these words or comparable terminology.
Forward-looking statements are subject to several risks and uncertainties, many of which are beyond the Company's ability to control or predict, that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements. Factors that could cause actual results or events to differ materially from current expectations include, among other things, without limitation, the inability of the Company, to obtain sufficient financing to execute the Company's business plan; competition; regulation and anticipated and unanticipated costs and delays, the success of the Company's research strategies, the applicability of the discoveries made therein, the successful and timely completion and uncertainties related to the regulatory process, the timing and outcomes of regulatory or intellectual property decisions and other risks disclosed in the Company's public disclosure record on file with the relevant securities regulatory authorities.
Although the Company has attempted to identify important factors that could cause actual results or events to differ materially from those described in forward-looking statements, there may be other factors that cause results or events not to be as anticipated, estimated or intended. Readers should not place undue reliance on forward-looking statements. The forward-looking statements included in this presentation are made as of the date of this presentation and the Company does not undertake an obligation to publicly update such forward-looking statements to reflect new information, subsequent events or otherwise unless required by applicable securities legislation.