October 2013

Dear shareholders and prospective shareholders,

Earlier this week we disclosed our third quarter 2013 results by press release and hosted a conference call to talk with the Street about what those results mean to our business.

For those who have not had the time to listen to the call or read the press release, you can access a replay of the call by dialing 1.855.859.2056 and using conference ID 91550522. The phone replay will be available through November 12, 2013.

The press release is available through this link:


Among the highlights for the third quarter:

  • Revenue was $1,851,000 compared to $1,726,000 for the same period last year, representing a 7 percent increase;
  • For the nine months ended September 30, 2013, revenue was $5,636,000 compared to $5,106,000 during the same period last year, which represents a 10 percent increase;
  • As of September 30, 2013 the Company had trained 1,575 physicians to use the O’Regan System, representing 556 clinical practices compared to 1,332 physicians trained representing 451 clinical practices as of December 31, 2012;
  • As of September 30, 2013, more than 432,000 procedures had been performed with the O’Regan System. At the same time last year, approximately 319,000 procedures had been performed.


It’s encouraging to see a sizable increase in the number of procedures performed during the past year because it validates three things for us:

First, it confirms our position that our single-use disposable CRH O’Regan System is the gold standard for hemorrhoid treatment.

Second, it reinforces our conviction that our comprehensive support program for trained physicians and their staff is valued by our doctors and their practices.

Third, the increase is further evidence of our market opportunity.

We also talked about the goodwill we are continuing to build with the gastroenterology community and how we intend to leverage that goodwill by providing current and prospective clients with additional products and/ or services that could be complementary to the O’Regan System.

We have been looking for new assets for several quarters. We are comfortable with the time it’s taking to do proper due diligence because we believe the right deal has the potential to build significant shareholder value.


American College of Gastroenterology Conference

Much of the goodwill that we build with the GI community comes from face-to-face interaction.

In mid-October, we attended the American College of Gastroenterology Annual Scientific Meeting in San Diego, and interacted with hundreds of professionals in the field of gastroenterology.

The ACG is one of the largest conferences that we attend each year. It brings together gastroenterologists from across the U.S., many of whom are keenly interested in building and diversifying their revenue streams.

From an economic perspective, hemorrhoid ligation – the basic principle behind the O’Regan System – pays GIs 16 percent more revenue per minute than colonoscopy does.

At the ACG, in addition to having a booth in the exhibit hall, we also demonstrated our banding technique at hands-on workshops. In one of these scheduled sessions, Dr. Harry Sarles who is the current President of the ACG, and Dr. David Johnson, a past President, advocated the use of the CRH O’Regan System in GI practices, and offered attendees the opportunity to learn more about the technology.

Through these sessions and discussions at our booth, we were able to gather a solid number of prospective client leads and initiate conversations with physicians who had yet to be introduced to the CRH O’Regan System.


Capital Markets Progress

One of the investments bankers who we know and respect likes to say that for public companies, if cash is king, liquidity is queen.

Since the beginning of the year, our cash position has increased by about 37 percent.

In terms of CRH’s liquidity, our average daily volume – OTCQX and TSX combined – is about 82,000 for the year to date. That’s a significant improvement compared to the same period last year. For those who are really interested in our liquidity, we tend to trade about twice as much on the TSX.


We look forward to sharing the November edition of the CRH Investor Bulletin with you, and as always, we appreciate your interest and support.

Adam Peeler, Media and Investor Relations
TMX Equicom
416.815.0700 x 225

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