SAN ANTONIO, TX, March 7, 2018 /CNW/ - Alternate Health Corp. ("Alternate Health" or the "Company") (CSE:AHG) (OTC:AHGIF), an international, vertically-integrated company providing software solutions and laboratory services to the medical cannabis industry, today announced the release of revised revenue projections for 2018 demonstrating a positive outlook for the next 12 months.
"Alternate Health experienced two main delays at the end of 2017, which prevented the company from reaching our anticipated revenue targets," says Dr. Michael Murphy, Chairman and CEO of Alternate Health. "However, we have had a bright start to 2018 and we expect we will reach a $75 million revenue target by the end of this fiscal year with only a one quarter delay."
After the comments made by U.S. Attorney General Jeff Sessions prior to recreational legalization in California, beta testing and contract negotiations for Alternate Health's software business were delayed for a month as stakeholders adjusted to the new market conditions. Following this delay, Alternate Health is moving ahead with its software rollout, recently beginning beta-testing with MedMen dispensaries across New York.
The Company's laboratory business also experienced a significant delay in transitioning to a full-service clinical lab, receiving its Medicare license two months later than expected on Dec. 1, 2017. With the laboratory transition complete, sample processing has resumed with consistently strong volumes and a wider referral base.
"As a result of the delays, I believe Alternate Health's current stock price in no way reflects the underlying value of the company," says Dr. Murphy. "I am showing my confidence, personally buying 367,300 shares on the open market over the past several months, including 250,000 shares in the last three days."
*The above projections assume that Alternate Heath Labs, Inc. continues to grow its rep base which refers physician patient blood and toxicology samples to our lab for testing. It also assumes maintaining and developing partner/consulting arrangements related to hospital referrals. In addition, the projections assume the successful growth of CanaPass and its FlorPass and StatePass variants across Canada and the United States. NAC currently has over 10,000 patients registered its clinics and that number is expected to grow as additional clinics are added and as they pursue retail expansion in recreational markets. Also, based on work with the AMMPA and state approved US licensed producers, these projections assume initial software installation by users in these states providing capacity for transaction fees from an initial US customer base estimated to be 100,000 with significant growth potential in those and other states. Failing these assumptions, including a stagnant or shrinking rep base, lack of further hospital relationships, cessation of the relationships with NAC, MedMen and the AMMPA these projections could be materially wrong. Associated risks include changing government regulations related to US federal marijuana laws and for clinical laboratories and Medicare reimbursement rates. Competition factors could also impact these projections.
About Alternate Health
Alternate Health Corp. (CSE: AHG, OTCQB: AHGIF) Alternate Health has established multiple arms-length operations within the medical cannabis industry, each of which drives consumers, data and strategic opportunities to the company's other verticals. This sophisticated cross-integration of the company's enterprises has positioned Alternate Health as one of the only cannabis companies that delivers consistent revenue and intellectual property without growing, manufacturing or distributing the cannabis plant. Through its software solutions, data analytics, and patented delivery systems, Alternate Health's goal is to be the global authority on scientific and clinical support for cannabis in regulated markets. Alternate Health is well positioned to reinvest internal operating cash flow in its platform over the long term, creating an attractive investment profile for its shareholders.
Alternate Health resides in the cannabis sector along with companies like GW Pharmaceuticals, AXIM Biotechnologies Inc., Canopy Growth Corporation, and Aphria Inc. Alternate Health is differentiated from other cannabis companies by its focus on ancillary services for patients, healthcare professionals and regulatory providers rather than selling a commodity. For more information about Alternate Health Corp., visit www.alternatehealth.ca.
Neither the CSE nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release. Statements included in this announcement, including statements concerning our plans, intentions and expectations, which are not historical in nature are intended to be, and are hereby identified as "forward-looking statements". Forward-looking statements may be identified by words including "anticipates", "believes", "intends", "estimates", "expects" and similar expressions. The Company cautions readers that forward-looking statements, including without limitation those relating to the Company's future operations, business prospects and financing plans, are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward looking statements. EBITDA as reported in this news release is a non-IFRS measure and therefore may not be comparable or compatible to similar measures presented by other companies. Please refer to the Company's Management Discussion & Analysis for additional information about the Company's non-IFRS financial measures and IFRS in accordance with the Company's financial statements.