- Impression Healthcare (IHL) has announced it will be discontinuing the sales of its oral devices from June 30
- The company will instead be focusing on cannabinoid sales and development activities
- This comes as many sporting codes cancel the season due to COVID-19 and mouthguards are no longer needed
- Additionally, Impression is looking to change its name to Incannex Healthcare to reflect its cannabinoid product brand, Incannex
- Impression is up a slight 3.92 per cent on the market and shares are currently trading for 5.3 cents each
Impression Healthcare (IHL) has announced it will be discontinuing the sales of its oral devices from June 30.
The company will instead be focusing on cannabinoid sales and development activities.
Due to the cancellation of some sporting seasons as a result of COVID-19, Impression believes that sales for its oral devices will not recover soon enough to justify continuing this business.
Ultimately, this decision allows the company to save money on oral devices and focus its time on the dominant revenue drivers.
Even though sales of oral devices have decreased, Impression believes that revenue for the current quarter will be significantly higher than the previous period.
This is due to the increasing sales of the company’s Incannex cannabinoid products.
“This move allows us to really focus on the part of the business which will drive value for our shareholders,” CEO Joel Latham commented.
“The opportunities in the medicinal cannabis sector are significant and Impression has assembled a world class team in this space, with four clinical assets undergoing assessment,” he said.
“In the current climate, continuing with oral devices would consume vital management time and take capital away from Incannex, which is an outcome we do not want for our shareholders,” he added.
Additionally, Impression is expecting that its GICS (Global Industry Classification Standard) to change from Health Care Equipment & Services to Pharmaceuticals, Biotechnology and Life Sciences.
To go with this change the company is also looking to change its name to Incannex Healthcare, but will still retain the current ASX code of IHL.
This will be discussed at the upcoming shareholder meeting.
Impression is up a slight 3.92 per cent on the market and shares are trading for 5.3 cents each at 11:01 am AEST.