Alternate Health Reports $3.1 Million in Third Quarter 2019 Revenue
Toronto, Ontario--(Newsfile Corp. - November 14, 2019) - Alternate Health Corp., (CSE: AHG) (OTCQB: AHGIF) ("Alternate Health" or the "Company"), an international leader in CBD product development and distribution, announced today that the Company generated $3.1 million in revenue in the third quarter of 2019.
"Alternate Health's third quarter results demonstrate the Company's commitment to increasing revenues, expanding margins and developing new business opportunities," says Howard Mann, CEO of Alternate Health. "We have developed a strong foundation for achieving both sustained growth and profitability in the CBD industry."
- Alternate Health reported revenue of $3.1 million, up 61% from Q2.
- The Company's gross margins increased to 72.2% from 68.2% in Q2.
- Alternate Health moved towards profitability with a loss per share of only $0.004.
The Company reported a year-over-year increase in third quarter revenue, from $520,000 in 2018 to $3.2 million in 2019. The large increase is mainly due to Alternate Health's acquisition of Blaine Labs Inc. ("Blaine Labs"), a licensed pharmaceutical manufacturer of FDA-registered products with over 50 SKUs available from major retailers across the United States.
Alternate Health has also significantly lowered operating expenses from $4.9 million in Q3 2018 to $2.3 million in Q3 2019. The Company has taken action to eliminate redundancies following the acquisition of Blaine Labs with the aim of greater investment into product manufacturing and distribution. With the transition largely complete, Alternate Health is focusing on launching new product lines while maximizing Blaine Labs' existing portfolio of assets.
In the Q3 2019, the Company took major steps forward in its CBD strategy. After completing the acquisition of Blaine Labs in Q2 2019, Alternate Health has focused on building on the Company's FDA experience and credibility to launch wholesale CBD sales and develop white label relationships with established brands.
With this goal in mind, Alternate Health launched Alternate CBD in September 2019. The new business unit specializes in wholesale CBD extraction, packaging and distribution from the Company's licensed, cGMP-certified facilities. Subsequently, in Q4 the company announced an agreement to acquire Mr. Custom White Label, a cGMP private label manufacturer of over 200 CBD products.
"Alternate Health's acquisition of Blaine Labs was a huge step forward for the Company as we position ourselves in the growing CBD industry - but it's just the beginning," says Howard Mann. "With Alternate CBD and Mr. Custom White Label, we are adding real revenue potential to complement our core operations."
About Alternate Health
Alternate Health is an international leader in the hemp-derived CBD industry, including extraction, product development, and distribution. Through Alternate Health's subsidiary, Blaine Labs, the Company has 23 years of experience in FDA-registered and cGMP medical product manufacturing and distribution, with over 50 product SKUs available from major retailers, including Walmart, Amazon, CVS and Walgreens. For more information about Alternate Health Corp., visit www.alternatehealth.com.
Investor ContactScott Holtby | Investor Relations
Jim Tykoliz | Company Director
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, including with respect to the closing of the letter of intent, 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 are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward-looking statements.
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