Cann Group Ltd. · ASX:CAN
Cann — Investor Presentation (April 2019)
23 slides from Cann's investor presentation, Apr 26, 2019
Slide 1: Investor presentation April 2019
GROUP LIMITED Investor presentation April 2019 1 Shining light on medicinal cannabis
Slide 2: Disclaimer
Disclaimer This investor presentation (Presentation) has been prepared by Cann Group Limited (ABN 25 603 Future performance 949 739) (Cann) and comprises written material regarding Cann. This Presentation contains certain ‘forward looking statements’, including but not limited to projections, guidan
Slide 3: Disclaimer
Disclaimer Affiliates All rights reserved None of Cann’s respective advisers or any of their respective affiliates, related bodies corporate, directors, Several photographs contained in this Presentation are the property of Cann and are protected officers, partners, employees and agents, have author
Slide 4: Vision
Vision To consolidate Cann Group’s position as Australia’s leading, fully-integrated medicinal cannabis company, with a growth platform serving domestic, regional & global markets 4 Shining light on medicinal cannabis
Slide 5: Cann Group is an industry leader in Australia
Cann Group is an industry leader in Australia • First Australian recipient of research & medicinal cannabis cultivation licences & permits • Two cultivation & R&D facilities currently operational in Victoria • Site purchased for major Stage 3 expansion near Mildura, Victoria – shipping date set for
Slide 6: Major expansion program comprising world class facility
Major expansion program comprising world class facility • Mildura site purchased for $10.75m for construction of facility comprising world scale greenhouse & associated support areas • Expected production capacity of up to 50,000kg of dry flower per annum • $130m construction cost – to be funded usi
Slide 7: Major expansion program comprising world class facility
Major expansion program comprising world class facility Facility revised $78m capital to 23,500m² Facility raising completed (14,000m² Facility Mildura facility proposed for to be fully based on flowering) revised to construction in Mildura facility 16,000m² facility 34,000m² Stage 1 commissioned Mi
Slide 8: Mildura facility provides a clear pathway to sustained profitability
Mildura facility provides a clear pathway to sustained profitability Specialised components/ Design & materials engineering delivered Operating completed at full Stage 1 capacity Site works Greenhouse, Mother room GACP/GMP underway irrigation & table commissioning Packaging systems installations Sta
Slide 9: Offtake agreement with Aurora Cannabis Inc.
Offtake agreement with Aurora Cannabis Inc. •Aurora is one of the world’s largest cannabis companies with sales & operations in 24 countries across five continents •Five-year offtake agreement underpins Cann’s investment risk in its major expansion program •Covers Cann’s total current & planned futu
Slide 10: Manufacturing partnership with IDT Australia
Manufacturing partnership with IDT Australia • IDT Australia (ASX:IDT) providing manufacturing support in relation to cannabis-based product formulations • Intended for supply to patients in Australia & overseas • IDT brings excellent capabilities & experience in the manufacture of cGMP quality phar
Slide 11: Existing facilities add critical long term value
Existing facilities add critical long term value Southern Facility Northern Facility • Proven capability to produce medicinal grade cannabis • Combining commercial & research cultivation • Continues to operate at full-capacity capabilities • Harvested material is being supplied for manufacture of •
Slide 12: Proven cultivation capability & accelerated breeding program
Proven cultivation capability & accelerated breeding program • Most experienced cultivator in Australia – continuous since May 2017 • 38 crops now harvested • Accelerated breeding program focused on delivering independent genetics • From a base of 24 imported varieties • Provides Cann with a key int
Slide 13: Supply agreement with Victorian DHHS
Supply agreement with Victorian DHHS • Contract with Victorian DHHS for the supply of cannabis plant extract (resin) • For use in Victorian Government’s compassionate access scheme for children with severe & intractable epilepsy • Agreement term – April 2019-30 June 2020 • Revenue stream for Cann –
Slide 14: Key partnerships complement in-house skills & capabilities
Key partnerships complement in-house skills & capabilities • Research collaboration agreement with CSIRO • Accelerated breeding program underway with Agriculture Victoria • Collaborating with New South Wales Department of Primary Industries as industry partner for medicinal cannabis research program
Slide 15: Strategic investment in New Zealand's PureCann
Strategic investment in New Zealand’s PureCann • Cann secures strategic ownership stake in Pure Cann New Zealand Limited • NZ$6 million investment secures a 20% ownership stake - 10% on or before 30/8/19 - 10% upon earlier of new NZ regulations coming into force and Pure Cann’s approval of construct
Slide 16: Cann's patient access pathways
Cann’s patient access pathways Paths to market Clinical trial involvement 16 Shining light on medicinal cannabis
Slide 17: Substantial & rapidly growing global market
Substantial & rapidly growing global market • Estimated global legal market – US$20 billion¹ (~US$232 billion projected by 2027²) • More than 50 countries have legalised medicinal cannabis – momentum continues with another ~10 expected this year³ • Recreational use in markets such as Canada placing
Slide 18: Australian opportunity
Australian opportunity • Access legalised in 2017, state hurdles being removed • Special Access Scheme (SAS) allowing patient prescription – patient approval rates seeing rapid growth with 1,042 approvals in March 2019 • SAS applications rarely being rejected • 32 medicinal cannabis clinical trials
Slide 19: Export opportunity
Export opportunity • 342,103 registered patients¹ + recreational use in Canada (forecast demand 650,000kg²) means shortage it has available for export • European markets opening up – cannabis an authorised medicine in more than 25 European countries • Germany has legalised & is reimbursing patients
Slide 20: Blue-chip board & management with extensive, broad experience
Blue-chip board & management with extensive, broad experience • Allan has extensive experience in the agribusiness • Experienced public company director sector as well as significant tenures with biotechnology • Co-founded Premier Artists & Frontier Touring Company companies • Very strong financial
Slide 21: Corporate structure
Corporate structure METRIC VALUE (26/4/19) Share price $2.36 Shares on issue (fully diluted) 142.65m Market capitalisation $336.7m Cash $62.9m (31/3/19) Enterprise value $273.8m 21 Shining light on medicinal cannabis
Slide 22: Outlook
Outlook News flow over the coming months includes: • Debt funding progressing • Supply of resin to Victorian Department of Health • IDT manufacturing (pending ODC approval) • Clinical study involvement • Focus on Australian patient supply • Testing of export pathways with Aurora • Progress Mildura f
Slide 23: Contacts
GROUP LIMITED CONTACTS: Clive Fanning Head of Investor Relations Cann Group Limited +61 (0)498 000 762 contact@canngrouplimited.com Matthew Wright Investor / Media Relations NWR Communications +61 (0)451 896 420 matt@nwrcommunications.com.au 23 Shining light on medicinal cannabis