Khiron Life Sciences Is A South American Cannabis Play That Is Flying Under The Radar

Although Latin American cannabis companies have been an underappreciated vertical of the global cannabis industry, we believe that some of these operators are flying under the radar and represent attractive long-term growth opportunities. 

Khiron Life Sciences Corp. (TSX Venture: KHRN) (OTCQX: KHRNF) (Frankfurt: A2JMZC) represents a leading Latin American cannabis company which is also levered to burgeoning markets in the European Union (EU). 

Earlier this week, Khiron announced the opening of its 4th Zerenia-branded medical cannabis clinic in Bogota and we are favorable on how the management team has been opening new clinic locations. We expect the additional openings to serve as a growth catalyst for the business and will monitor how the story continues to advance. 

A reason for our favorable view on the new clinic is related to the size of it. The new facility is approx. 4,000 square feet, has 11 consults rooms, and has the capacity for up to 40,000 consults per year. The new clinic could increase capacity by 20% and we are bullish on the amount of value that can be generated through the clinic. 

Another reason for our bullish view on the opening of the new clinic is related to the strategic location of it. With a population of 8+ million, we consider Bogata to be an attractive market and are favorable on the amount of patients that can be treated via Khiron’s Zerenia™ clinic network. The new clinic is located in one of Bogota’s busiest shopping centers (attracts more than 150,000 visitors per month) and we consider this to be an important aspect of the story. 

The new clinic is adjacent to referral locations of four of the largest insurance companies in Colombia. We will monitor how the new clinic supports the growth of the business and believe our readers should be aware of the growth prospects that are associated with it. 

The opening of the new clinic is a testament to the strength of the management team and its focus on executing on a multi-faceted patient acquisition strategy. Last year, Khiron sold more than 51,800 medical cannabis units in Colombia, which represents a more than 900% from 2020. We expect the company to surpass its numbers from 2021 and believe the market is discounting the amount of value that can be generated via its Zerenia™ clinic network.

A Growth Story that is Flying Under the Radar

Following the opening of the new clinic, Khiron will have more than 13 locations in Colombia, Peru, and the United Kingdom (UK). Last year, the company’s medical cannabis sales in Colombia increased by more than 900% and we believe the business is well positioned to continue to record strong growth. By focusing on increasing patient conversion and retention rates, we expect the platform to build on its momentum from 2021 and believe our readers should be aware of this. 

During the last quarter, Khiron has been under considerable pressure and the stock has fallen more than 20% from its highs. We believe the recent developments improve the company’s risk-reward profile and are bullish on its potential catalysts for growth. 

If you are interested in learning more about how Khiron is positioned to capitalize on Latin America and the EU, please send an email to support@technical420.com with the subject “Khiron is Capitalizing on Latin America and the EU” to be added to our distribution list. 

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Michael Berger is Managing Partner of StoneBridge Partners LLC. SBP continues to drive market awareness for leading firms in the cannabis industry throughout the U.S. and abroad.

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