Pathway Health (TSX-V:PHC) Corp said it had achieved "stable" second quarter and first half results despite the impact of the pandemic as it outlined plans to continue to grow the business via acquisitions, partnerships and creating new products.
The firm, which provides out-of-hospital pain management services in Canada and has a focus on medicinal cannabis, said it ended the period to June 30 this year with $6.4 million in cash after raising $13.8 million gross from a private placing, giving it the firepower to execute on operational and expansion plans.
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"For the remainder of 2021 and for 2022, we will remain focused on three key initiatives to grow the business," Ken Yoon, CEO of Pathway told investors. "The first is to continue expanding our business through acquisition or partnership in Canada and explore opportunities in the U.S. In Canada, we are primarily targeting pain clinics and patients as we continue to look to expand our national footprint but we also see opportunities for Pathway in the US. The second initiative involves our pharmacy partnerships," he said.
The third initiative, he said, involved adding new products and services to its existing clinics to expand the 'circle of care' and create new revenue opportunities.
Pathway, he added, also wanted to capitalize on the anticipated next round of Health Canada changes to the Cannabis Act and the introduction of cannabis health products (CHPs) by developing proprietary, national distribution channels; accessing proprietary formulation technology.
It has also added Dr. Jordan Silver as Senior Director of Product Development to the Pathway team, the firm said.
The company started trading on the Toronto venture exchange on June 17 this year. Revenue for the three and six months ended June 30, 2021, was $2.9 million and $5.6 million, respectively, while gross margins were $1.5 million and $3 million for the three and six months.
The net loss came in at $3.1 million and $4.1 million for the three and six months respectively.
"We remain excited about the growth opportunities for Pathway and look forward to sharing our progress over the coming months ahead," said Yoon.
Contact the author at giles@proactiveinvestors.com