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

Benjamin A. Smith

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.

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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