Cann Group Ltd. · ASX:CAN
Cann — Investor Presentation (July 2023)
23 slides from Cann's investor presentation, Jul 5, 2023
Slide 1: ASX Announcement: Investor Presentation
ASX ANNOUNCEMENT 5 July 2023 Investor Presentation 5 July 2023 – As announced on 15 June 2023, Cann Group Limited (ASX:CAN) (Cann or the Company) will be presenting an investor update webinar and Q&A, hosted by CEO, Peter Koetsier. The webinar will be held today, Wednesday, 5 July 2023 at 11:00am (A
Slide 2: Webinar Presentation: Sharing plans to accelerate production and reach profitability
Sharing plans to accelerate For personal use only production and reach profitability Medicinal cannabis products to improve quality of life WEBINAR PRESENTATION 5 July 2023
Slide 3: 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 p
Slide 4: Video slide
For personal use only THIS SLIDE REPRESENTS A VIDEO WHICH IS NOT ABLE TO BE VIEWED IN THIS FORMAT 3
Slide 5: Sharing plans to accelerate production and reach profitability
Sharing plans to accelerate For personal use only production and reach profitability Medicinal cannabis products to improve quality of life WEBINAR PRESENTATION 5 July 2023
Slide 6: Australian medicinal cannabis market is growing rapidly
Australian medicinal cannabis market is growing rapidly reaching an estimated $245 million in 2022 ESTIMATED AUSTRALIAN MEDICINAL CANNABIS MARKET A$ $1,800,000,000 Legislative change could For personal use only $1,600,000,000 Growth faster than see acceleration $1,400,000,000 2022 (60%/HY) $1,200,00
Slide 7: Quality local supply driven by increasing demand and import regulations
Quality local supply driven by increasing demand, lack of consistent quality and increased import regulations Users demand Quality when inhaling Only ~20% of brands in Amendments in July will make 2/3 of all units sold are for inhalable flower Australia are locally grown overseas supply more heavily
Slide 8: Who we are
Who we are Vision to be Australia’s largest & most innovative medicinal cannabis cultivator and supplier to a rapidly growing market For personal use only State-of-the-art Experienced New leadership Strong & building Fully licensed and Heritage and local facility, Mildura, cultivation & in place cus
Slide 9: Strong and experienced management executing now
For personal use only Strong and experienced management executing now Mr Peter Koetsier Ms Deborah Ambrosini Ms Liz Pepper Mr Russell McGifford Mr Sam Chester Chief Financial Officer Chief Executive Officer General Manager – Operations General Manager – Mildura Head of Business Development & Company
Slide 10: Mildura facility secures strong competitive advantage
Mildura facility secures strong competitive advantage Cann Group’s Mildura facility is the most technologically advanced indoor, full GMP medicinal cannabis cultivation & manufacturing facility in the southern hemisphere For personal use only A microclimate- Automated plant In-house analytical GMP l
Slide 11: From Capex to Opex
From Capex to Opex Shifting from capital intensity to operational with production to reach 12.5 tonnes on an annualised basis and reach EBITDA profitability COMPLETED START UP AND BUILD NOW SCALING AND SELLING Past annual Capex ~$25m Current annual Capex <$5m For personal use only Agri & engineering
Slide 12: Cann is scaling production
Cann is scaling production Expansion to 12.5t is expected to deliver scale benefits, substantial unit cost savings, improved supply chain and deliver EBITDA profitability PLANNED STAGE 1 DRY BIOMASS (TONNES) PRODUCED FOR SALE BY FINANCIAL YEAR* 14 For personal use only 12.5 TONNES 12 6.25 10 9 TONNE
Slide 13: Scaled production to deliver efficiency and margin benefits
Scaled production to deliver efficiency and margin benefits and drive operating leverage Scaled production to drive operating leverage • A significant proportion of overheads are fixed For personal use only Security and IT Base electricity loads Laboratories Administration and regulatory Aut
Slide 14: Strong revenue momentum
Strong revenue momentum $14,000 $12,000 • Dried flower sales For personal use only have increased $10,000 approximately 500% in the FY2023 $8,000 financial year 000's • Unaudited operating $6,000 revenue expected to be approximately $4,000 $13.5 million, up 111% or 2.1 times FY2022 revenue $2,000 $0
Slide 15: Short and long-term opportunities for revenue growth
Short and long-term opportunities for revenue growth Drivers of revenue For personal use only Increase customer Future export Increase total Increase inhaled flower Further development GMP contract number and opportunities, production volume yield of Satipharm® platform packaging penetration includi
Slide 16: Satipharm platform provides significant incremental potential
Satipharm® platform provides significant incremental potential Registerable, differentiated & patent protected medicinal cannabis product • Pharmaceutical presentation For personal use only • Active substances embedded in microsphere technology • Higher Bioavailability1 • Opportunity to build pharma
Slide 17: Investment Case: Key messages
Investment Case: Key messages 1. First mover and competitive advantage with state of the art, fully licensed facility able to scale quality supply 2. Substantial unmet demand for reliable, locally produced quality product 3. Executing strategy with business shifting to operational expenditure from c
Slide 18: Equity raising
For personal use only 17 Equity raising
Slide 19: Offer summary
Offer summary Cann Group is conducting a one (1) for four (4) non-renounceable rights issue with a free attaching option exercisable at Offer structure $0.22 per share for every 2 shares purchased ("Offer") to raise up to $11.7m before associated costs. and size Approximately 97 million New Shares a
Slide 20: Offer timetable
Offer timetable Date Event Thursday, 15 June 2023 Entitlement offer is announced For personal use only Monday, 19 June 2023 Ex date Tuesday, 20 June 2023 (7:00pm AEST) Record date Prospectus (and personalised entitlement form) dispatched to Eligible Shareholders and Entitlement Friday, 23 June 2023
Slide 21: Use of funds
Use of funds Use of funds AUD millions Enhanced automation for GMP manufacturing facilities 3.5 For personal use only Accelerated staffing levels 2.8 Laboratory and Quality Control enhancements 1.3 Environmental feasibility projects including solar and waste 0.3 Research and Development – THC contai
Slide 22: Q&A
For personal use only 21 Q&A
Slide 23: Contact
For personal use only Contact Peter Koetsier Chief Executive Officer peter.koetsier@canngrouplimited.com Deborah Ambrosini Chief Financial Officer deborah.ambrosini@canngrouplimited.com canngrouplimited.com | +61 3 9095 7188 Cann Group Limited Quality, Reliability, Innovation