Khiron Life Sciences (CVE:KHRN) LATAM-Only Focus Makes It Unique

Benjamin A. Smith
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After a 257% rise year-to-date, Khiron Life Sciences Corp (CVE:KHRN) (OTCMKTS:KHRNF) (FRA:4KH) is among the best performing major Canadian LPs. But can it continue? While overall market sentiment will play a dominant hand in determining the answer, KHRN has a major advantage most don’t have.

It’s something I like to call the “differentiator” advantage. While most licensed producers claim to have some edge over their competitors, how many do really? How many products or services or business models really differentiate themselves from the pack? The answer is, quite obviously, not many.

After all, there’s only so many ways you can cultivate, brand, refine, distribute and engineer unique cannabis cultivars. One can make the argument that biosynthesis will be the next vanguard of cannabis compound productivity—cannabis 2.0 if you will—but we’re not there yet. That’s a longer-cycle industry for which much R&D still must take place. Perhaps Khiron Life Sciences will delve into that realm somewhere down the line.

But for now, the company has enough on its plate to carve out it own unique niche. Its not that Khiron is re-inventing the wheel or growing some Limitless cannabis that’s light years ahead of the competition. It’s about focusing, operating and exploiting markets that most LPs have under-addressed.

I’m talking about Khiron’s intense focus on the LATAM and Central American markets.

While many Tier-1 LPs have set-up shop by purchasing assets and assembling field staffs in a conceptual idea of who-knows-what-comes-next, Khiron is already executing. The company is setting up cannabis clinics in key cities, keynoting world-renowned cannabis conferences and wooing former presidents to its Board of Directors. Operating in LATAM isn’t just an afterthought or a subsidiary arm of an LP with core operations 10,000 km away. LATAM is Khiron Life Sciences’ core market—its only backyard where it focuses operationally. That alone makes them unique among its competitors.

Of course, I could write a separate article of all the good things going on at Khiron Life Sciences. There’s the recent joint venture with Dixie Brands called Dixie Khiron JV Corp., which will combine Dixie’s portfolio of more than 100 cannabis-infused products with Khiron’s established footprint throughout Latin America. There’s the acquisition of NettaGrowth, securing the first medical THC and CBD cannabis licence and cultivation capacity in Uruguay. There’s the company’s new Kuida Cosmeceutical brand, geared towards the global skincare market expected to reach US$131 Billion in 2019.

Dixie Brands designs and manufactures cannabis relief products. CEO Chuck Smith shares details of Dixie’s joint venture with Khiron Life Sciences

But all of this is a known commodity. The key takeaway is not details which are recognized and accounted for in the marketplace, but those which are not. That is, of all the licensed producers operating in Canada today, very few have the “differentiator” qualities that Khiron possesses. In this case, laser-like focus and operating precision few others can rival in South America.

And being different is very valuable commodity indeed.

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Notice for Forward-Looking Information

Certain statements in this press release are forward-looking statements and are prospective in nature. Forward-looking statements are not based on historical facts, but rather on current expectations and projections about future events, and are therefore subject to risks and uncertainties which could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements. Such forward-looking information includes that Khiron Life Sciences Corp will be a big, successful company in the cannabis sector; that cannabis use and sales will grow and KHIRON’s sales along with it; KHIRON’s intended acquisition of various foreign companies and expansion into the European and South and North American markets; that cosmeceuticals is and will continue to be a fast growing and profitable sector of the cannabis industry; and that it will be able to carry out its business plans.

 

Readers are cautioned to not place undue reliance on forward-looking information. Forward looking information is subject to a number of risks and uncertainties that may cause actual results or events to differ materially from those contemplated in the forward-looking information, and even if such actual results or events are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on KHIRON. Such risks and uncertainties include, among other things: that a regulatory approval that may be required for the intended acquisitions and subsequent sales are not obtained or are obtained subject to conditions that are not anticipated; growing competition for intended acquisitions in the cannabis industry; potential future competition in the markets KHIRON operates for sales; competitors may quickly enter the industry; general economic conditions in the US, Canada and globally; the inability to secure financing necessary to carry out its business plans; competition for, among other things, capital and skilled personnel; the possibility that government policies or laws may not permit legal cannabis sales or growth or that favorable laws in place may change; KHIRON not adequately protecting its intellectual property; interruption or failure of information technology systems; the cannabis market may not grow as expected; KHIRON’s technology may not achieve the expected results and its accomplishments may be limited; even if it is granted patents, it may not have success at licensing its technologies or sell its products at the rate expected; planned acquisitions and partnerships may not materialize because of inability to agree on terms with prospective partners or targets; KHIRON’s business plan also carries risk, including its ability to comply with all applicable governmental regulations in a highly regulated business; incubator risk investing in target companies or projects which have limited or no operating history and are engaged in activities currently considered illegal under US federal and foreign laws; and other regulatory risks relating to KHIRON’s business, financings and strategic acquisitions, including securities laws, trade rules, and foreign country regulation that is not the same as Canadian or US regulations.

 

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Benjamin A. Smith

Benjamin A. Smith

Ben is a research analyst and capital markets professional with nearly 20 years of experience. His areas of expertise are broad-based, and include extensive knowledge of macro economics, stock/derivative trading, commodity complexes, cryptocurrencies and technical/quant analysis. He also maintains an particular affinity for U.S. politics and the macro-regulatory environment facing...
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