Cann Group Ltd. · ASX:CAN
Cann — Shareholder Meeting (November 2024)
24 slides from Cann's shareholder meeting presentation, Nov 6, 2024
Slide 1: AGM Presentation
ASX ANNOUNCEMENT 6 November 2024 AGM Presentation 6 November 2024 – In advance of this morning’s Annual General Meeting of shareholders to be held at 10:00am, and in accordance with ASX Listing Rule 3.13.3, Cann Group Limited (CAN:ASX) is pleased to provide a copy of the presentation that will be ma
Slide 2: Annual General Meeting
ANNUAL GENERAL MEETING 6 NOVEMBER 2024
Slide 3: CEO & Managing Director's Address – Jenni Pilcher
5 CEO & MANAGING DIRECTOR’S ADDRESS – JENNI PILCHER 5
Slide 4: Disclaimer: Important notice
Disclaimer: Important notice This presentation (Presentation) has been prepared by Cann Group Limited (ABN 25 603 949 739) (Cann). Summary information This Presentation contains summary information about Cann and its activities which is current as at the date of this Presentation. The information pr
Slide 5: FY2024 Financial Performance Recap
FY2024 FINANCIAL PERFORMANCE RECAP *FY 2024 Loss of $51.2M REVENUE PRODUCTION included: • $20.1M write down of $15.73M 4.4 TONNES Mildura facility to latest valuation 11.6% YOY 100% YOY • $6.8M Finance charges (including non-cash interest relating to the EBITDA* LOSS OPERATING EXPENSE RATIO conv
Slide 6: Valuable learnings since 2022
Valuable learnings since 2022 Cann has come a long way since the first harvest at Cann’s Mildura facility in June 2022. More specifically, we have experienced and taken away valuable learnings from the following activities over the past couple of years: • We have now experienced all 4 growing season
Slide 7: 3 Phase Plan following Strategic Review (March 2024)
3 Phase Plan following Strategic Review (March 2024) In light of the learnings outlined on the previous slide, in March 2024 the Company embarked on a 3 Phase Plan following a strategic review of its operations. We have completed Phase 1 and are now in Phase 2 PHASE 1 PHASE 2 PHASE 3 Objective(s) Ef
Slide 8: Cann's three unique advantages
Cann’s three unique advantages World Class, full GMP, cultivation and production facility • 1 Year-round production Cutting edge, innovation & breeding program with established partners • 2 Dedicated R&D facility in Well-positioned “Botanitech”& “Satipharm” Brands 3 Diversified revenue portfolio via
Slide 9: GMP Facility
CANN GROUP LIMITED 1.GMP FACILITY . — a ———
Slide 10: Mildura facility secures strong competitive advantage
1. Mildura facility secures strong competitive advantage Cann Group’s Mildura facility is arguably the most technologically advanced indoor, full GMP medicinal cannabis cultivation & manufacturing facility in the southern hemisphere • A microclimate-controlled glasshouse with manufacturing and wareh
Slide 11: GMP facility
GMP facility Production Target 5.5t FY2025 Stable production (Q1 1t), now ramping up over warmer months, longer daylight hours 12-14 cultivars in production (will reduce) ~46 employees (50% Perm / 50% Casual) No longer using expensive contract labour 420 days – “Loss Time Injury” Free Ne
Slide 12: Automated packing via new multi-head filler
Automated packing via new multi-head filler New Multihead Filler validated & commissioned August 2024 • Transitioned from labour intensive hand packing to automated Multi Head Filler • Capacity for 9,000 units per day • 3 x jar size options (10g, 15g, 28g) • Labour efficiencies are significant – app
Slide 13: Introduction of Hang Drying Technique
Introduction of Hang Drying Technique Cann has responded to market preferences with both tray and hang dry capability This caters for all markets using temperature and humidity controlled drying rooms Benefits of hang drying include: • Leaving the plant intact whilst drying resulting in retention of
Slide 14: Contract services offered at cGMP facility
Contract services offered at cGMP facility Contract Contract Contract Growing Packing Laboratory • ODC permit for genetic stock, cultivation • Contract biomass packing with both • Onsite cGMP (TGA) certified laboratory and production of medicinal cannabis hand fill and mechanical fill capabilities •
Slide 15: Innovative Breeding Program
2. INNOVATIVE BREEDING PROGRAM 19
Slide 16: Established in-house breeding program
2. Established in-house breeding program 1 2 3 4 5 6 Bud aesthetics Target Flavour Genetic lineage Total terpene trichome coverage, bud Bud consistency cannabinoid aroma & taste structure, bud size, colour “the story” percentage potency Breeding program Cann’s shortlisting Second short-listing for f
Slide 17: Botanitech (own-brand) heads up a diverse product range
3. Botanitech (own-brand) heads up a diverse product range Local manufacture and Botanitech dried flower, oil Bulk dried flower Satipharm – CBD, THC & supply of dried flower and vapes (sold to manufacturers & balanced* capsules featuring & oils (white label) compounders) patented Gelpell technology
Slide 18: Outlook
CANN GROUP LIMITED OUTLOOK
Slide 19: Market overview
Market overview • 2-2.4 million Australians use more than 650 tonnes of cannabis each year both legally and illegally • Legal Medicinal Cannabis (MC) market is now exceeding 100 tonnes per year • Current MC value is estimated to be between $500-$700 million at a patient level, growing around 25% YoY
Slide 20: Growth drivers
Growth drivers Improved Increasing perception Regulation Targeting number of & locally & law export delivery grown changes markets forms quality • Improving perception of • Recent changes to driving • Alternative forms to E.g. role of MC for treating a laws allowing prescribed inhalable flower and o
Slide 21: Cann poised to seize growing market opportunity
Cann poised to seize growing market opportunity Established Cutting edge R&D Expertise GMP facility customer base & program commercial pathways • Strong knowledge of, and • Full cultivation and GMP • Established pathways to • Long-term affiliation with reputation with, regulatory manufacturing capab
Slide 22: Path to profitability
Path to profitability Increasing production to 10 tonnes per annum by FY2027 will ensure strong revenue growth and profitability at an average selling price of $3.45 per gram (FY2024). Facility expansion into remaining zones will further accelerate revenue growth. DRIED FLOWER WEIGHT (KGS) PRODUCED
Slide 23: FY2025 growth plan to deliver positive EBITDA is underway
FY2025 growth plan to deliver positive EBITDA is underway Maximise margins with Focus on quality Move from 3 cultivars to a Enhance non-inhalable Expand Botanitech range efficiencies & cost inhalable flower to meet 10-12 cultivar portfolio flower product range control market expectations • Cultivati
Slide 24: Non-Renounceable Rights Issue
NON-RENOUNCEABLE RIGHTS ISSUE C L O S I N G D AT E : 2 5 N O V E M B E R 2 0 2 4 ( 5 : 0 0 P M ) AUD Use of funds millions Cultivation costs for dried flower 1.56 Importation program for Botanitech curated 1.00 range Manufacturing costs for Botanitech oil range 0.75 Offer Price 4 cents per share Wor