Pathway Health (TSX-V:PHC) Corp has said it is optimistic about its business headed into the new year despite experiencing coronavirus (COVID-19) pandemic related challenges during the third quarter.
For the period ended September 30, 2021, the Toronto-based healthcare company which treats patients suffering from chronic pain, reported it had $4.2 million in cash, compared to $0.001 million in cash as of December 31, 2020.
Pathway chalked up the increase in cash to $13.8 million in gross proceeds form a private placement, offset by $4.9 million paid to a related party for an asset acquisition which closed on January 18, 2021, $0.6 million used in professional fees for the reverse takeover transaction and asset acquisition, and funds used in operating activities.
READ: Pathway Health speeds up rollout of Medical Cannabis Management System at Sobeys locations in Canada
During the quarter, Pathway completed the acquisition of O Cannabis We Stand On Guard For Thee Corp to gain access to around 4,000 new active patients and expand its telemedicine footprint in several provinces.
Pathway said products, provincially non-insured physician services and cannabis education revenue held “steady quarter-over-quarter in spite of ongoing pandemic challenges.”
The company remained focused on the development of Cannabis Health Products (CHPs) to gear up for the next round of Health Canada changes to the Cannabis Act.
Pathway reported total revenue for the three and nine months ended September 30, 2021, of $2.7 million and $8.2 million respectively. Revenues were impacted during the 3Q by physician summer vacations and the continued impact of the pandemic, said the firm.
Furthermore, Pathway pointed out that if the operating assets of the company were acquired on January 1, 2021, instead of January 18, 2021, and it consolidated the results of a jointly-owned subsidiary, revenue for the three and nine months ended September 30, 2021, would have actually totaled $2.8 million and $8.9 million respectively.
The firm’s gross margins were $1.4 million and $4.4 million for the three and nine months ended September 30, 2021, respectively, showing consistent positive results.
For the quarter, Pathway incurred a net loss of $1.6 million, or a basic and diluted loss per share of $0.02. Earnings before interest, tax, depreciation, and amortization (EBITDA) logged a loss of $1.3 million.
"While Pathway did experience ongoing COVID-19 pandemic-related challenges which hampered growth during this period, we are optimistic about the business headed into the new year," Pathway CEO Ken Yoon said in a statement. "We continue to execute on our growth through acquisition strategy and work with partners in the development of Cannabis Health Products, or CHPs, as we continue to add new services and products to better serve our patients."
Pathway Health has established a network of nine specialized medical clinics across four provinces in Canada to treat patients with chronic pain. Pathway ’s Virtual Clinic division also boasts the largest medical cannabis telemedicine network in Canada. It also partners with pharmacy companies to deliver medical cannabis services to its customers.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
Follow her on Twitter: @UttaraProactive