Cann Group Ltd. · ASX:CAN
Cann — Investor Presentation (November 2017)
31 slides from Cann's investor presentation, Nov 30, 2017
Slide 1: Growth Initiative & Equity Raising Investor Presentation
For personal use only GROWTH INITIATIVE & EQUITY RAISING Not for distribution to US newswire services or distribution in the United States INVESTOR PRESENTATION 30 NOVEMBER 2017
Slide 2: Disclaimer
DISCLAIMER Financial data This investor Presentation (Presentation) has been prepared by Cann Group Limited (ABN 25 603 949 739) (Cann or the Company) and comprises written material regarding Cann. All dollar values are in Australian dollars ($ or AUD) unless otherwise stated. Investors should note
Slide 3: Disclaimer (Continued)
DISCLAIMER None of its advisers nor any of their related bodies corporate and affiliates, nor any of their respective directors, officers, partners, employees, representatives or agents make any recommendations as to whether you or your related parties should participate in the Placement or Disclaim
Slide 4: Company Snapshot – November 2017
COMPANY SNAPSHOT – 29 November 2017 4 For personal use only Since listing on the ASX in May 2017 at an IPO of $0.30 per share, Cann’s share price has performed strongly & rewarded its investors METRIC VALUE Share trading volume & closing price 8 $4.00 Millions Share price $3.00 7 $3.50 6 $3.00 Share
Slide 5: Key Highlights & Growth Initiative
KEY HIGHLIGHTS & GROWTH INITIATIVE 5 For personal use only • Since Cann’s IPO in May 2017, the Company has been executing its growth strategy to build cultivation capacity & develop a more integrated business model • The Company has decided to increase the capacity of its Phase 3 expansion plans, wi
Slide 6: 2017 Achievements
2017 ACHIEVEMENTS 6 For personal use only Regulatory • Secured first licences (research & cultivation) in Australia from ODC • First permits (R&D & cultivation) secured on 30 May 2017 • Licence to import/export cannabis genetics & medicinal cannabis products for analytical testing – granted 27 Octob
Slide 7: Placement and SPP Details
PLACEMENT AND SPP DETAILS 7 For personal use only Institutional • An underwritten institutional placement (including sophisticated and professional investors and Cann’s Directors’ participation) of 20 million New Shares Placement (representing ~18.5% of shares on issue prior to the Placement) to rai
Slide 8: Cornerstone Investor: Aurora Cannabis Inc.
CORNERSTONE INVESTOR: AURORA CANNABIS 8 INC. (TSXV:ACB) One of Canada’s largest publicly-listed cannabis companies; has committed to For personal use only invest ~ $19M+ in the Placement to increase its shareholding in Cann to 22.9% • Canada’s 2nd largest (by market capitalisation) publicly-listed l
Slide 9: Phase 3 Expansion – A world class facility
Phase 3 Expansion – A world class facility to meet projected 9 domestic & potential export demand For personal use only Cann has committed to develop a ~16,000m2 state-of-the-art greenfield facility which includes GMP manufacturing operations Larssen Ltd artists impression of large-scale • ~ 9,600m2
Slide 10: The Australian Opportunity
THE AUSTRALIAN OPPORTUNITY 10 Estimating the potential size of the Australian medicinal cannabis market can be calculated using two methodologies For personal use only Methodology 1: Demand-driven by condition Methodology 2: Peer country comparable usage • Australia only – allows for a relatively sm
Slide 11: The Export Opportunity – Subject to Regulatory Approval
THE EXPORT OPPORTUNITY – SUBJECT TO 11 REGULATORY APPROVAL The export market opportunity for quality approved Australian medicinal cannabis For personal use only The Canadian Opportunity – demand expected to European Medicinal Cannabis Opportunities outpace supply1 • Canada is providing the “lead” f
Slide 12: Company Overview
COMPANY OVERVIEW 1 2 For personal use only FOCUSED ON BREEDING & EXPERIENCED CULTIVATING MEDICINAL CANNABIS AGRIBUSINESS BOARD Cann aims to be a vertically-integrated High profile & experienced Australian agribusiness company focused agribusiness board & on breeding, cultivating & manufacturing mana
Slide 13: Board & Management Team
BOARD & MANAGEMENT TEAM The team has deep experience in the Australian and Canadian agribusiness, 1 3 biotech & pharma sectors, along with proven entrepreneurial & business development expertise For personal use only • Allan has extensive experience in the agribusiness • Experienced public company d
Slide 14: Business Model & the Industry Value Chain
BUSINESS MODEL & THE INDUSTRY VALUE CHAIN 1 4 For personal use only FEDERAL & STATE GOVERNMENT REGULATED …with a clear pathway to secure Cann’s competitive strengths lie in these segments of the value chain… involvement in these segments Clinical Cultivation & Packaging & Research & Development Manu
Slide 15: Our Focus
OUR FOCUS 1 5 For personal use only Rapidly developing Regulatory market with substantial pathway now A clear growth potential defined Australian focus CANN IS UNIQUELY FOCUSED ON BUILDING A WORLD-CLASS AUSTRALIAN-BASED MEDICINAL CANNABIS COMPANY Licences & permits Accelerating cultivation Key indus
Slide 16: R&D & Cultivation Program Progressing Ahead of Schedule Plus Expanded Phase 3 Strategy
R&D & CULTIVATION PROGRAM PROGRESSING AHEAD OF 16 SCHEDULE PLUS EXPANDED PHASE 3 STRATEGY For personal use only Cann is progressing a three phase growth strategy to build its cultivation capability, with adequate funding to complete Phases 1 & 2 & an accelerated Phase 3 strategy Southern facility’s
Slide 17: Cann at the Forefront of Medicinal Cannabis Sector Leadership
CANN AT THE FOREFRONT OF MEDICINAL CANNABIS SECTOR LEADERSHIP 1 7 OPERATING WITHIN A COMPLEX LEGISLATIVE FRAMEWORK For personal use only Source: Australian Government Department of Health / Therapeutic Goods Administration
Slide 18: Growth Cycle – The Driver to Maximising Production & Revenue
GROWTH CYCLE – THE DRIVER TO MAXIMISING PRODUCTION 1 8 & REVENUE THROUGH A CONTROLLED ENVIRONMENT For personal use only 18-24 hours light per day Less than 12 hours light per day 6-9 week duration Cuttings every two weeks Mother plants Flowering Propagation Vegetative Re-pot 10-14 days 21-28 days Re
Slide 19: Australian Industry Leader
AUSTRALIAN INDUSTRY LEADER 1 9 Established operations For personal use only Various images from recent propagation, cultivation & • “Southern Facility” fitted with requisite lighting, irrigation, climate control & harvest at Cann’s other equipment to grow cannabis for medicinal & research related pu
Slide 20: Sources & Use of Placement Funds & SPP
SOURCES & USE OF PLACEMENT FUNDS & SPP 2 0 For personal use only Estimated Amounts Institutional Placement & SPP ($M)^ Aurora 19 Existing & new institutional, professional & sophisticated investors 29 Directors (subject to shareholder approval) 2 SPP 10 Estimated Amounts Use of Funds ($M) Investment
Slide 21: Offer Timetable
OFFER TIMETABLE^ 2 1 For personal use only Institutional Placement Date^ Trading halt and Placement announced Wednesday, 29 November 2017 Announce completion of Placement (first stage of Placement) and resume trading Monday, 4 December 2017 Placement (first stage of Placement) settlement Monday, 11
Slide 22: Risks Overview
Risks overview This section discusses the key risks attaching to an investment in shares in Cann, which may affect the future operating and financial performance of Cann and the value of Cann shares. Before investing in Cann shares, you should consider whether this investment is suitable for you hav
Slide 23: Risks Overview (Cont'd)
Risks overview (Cont’d) Further, the initial two licences for the Southern Facility are granted for a period of one year each, consistent with the ODC’s current policy. There is no assurance or guarantee that these two licences will be renewed, or renewed on terms desirous to or expected by Cann and
Slide 24: Risks Overview (Cont'd)
Risks overview (Cont’d) Agriculture/Growing Risk and Oil Yield Subject to compliance with all applicable laws and satisfying all applicable regulatory requirements, the growing of cannabis plants to produce medicinal cannabis using the Secure For personal use only Cultivation Room model is inherentl
Slide 25: Risks Overview (Cont'd)
Risks overview (Cont’d) Counterparty Risk Cann has executed and expects in the normal course of business to execute several commercial agreements and arrangements in the future with third parties that are or may be material For personal use only to the financial performance and prospects of the busi
Slide 26: Risks Overview (Cont'd)
Risks overview (Cont’d) Trading and Liquidity of Shares There can be no guarantee that there will be a market for New Shares. There may be relatively few potential buyers or sellers of the New Shares at any given time. This may reduce the For personal use only market price of the New Shares. It may
Slide 27: Offer Jurisdictions
Offer Jurisdictions Foreign selling restrictions This Presentation does not constitute an offer of New Shares of the Company in any jurisdiction in which it would be unlawful. This Presentation may not be distributed to any person, and the New Shares may not be offered or sold, in any country outsid
Slide 28: Offer Jurisdictions (Cont'd)
Offer Jurisdictions (Cont’d) Section 138 of the Securities Act (Ontario) provides that no action shall be commenced to enforce these rights more than (a) in the case of any action for rescission, 180 days after the date of the transaction that gave rise to the cause of action or (b) in the case of a
Slide 29: Offer Jurisdictions (Cont'd)
Offer Jurisdictions (Cont’d) Where New Shares are subscribed or purchased under Section 275 of the SFA by a relevant person which is: (a) a corporation (which is not an accredited investor (as defined in Section 4A of the SFA)) the sole business of which is to hold investments and the entire share c
Slide 30: Contacts
CONTACTS For personal use only Salmon Giles Corporate Peter Crock CORPORATE ADVISER INVESTOR / MEDIA RELATIONS CEO Hamish Giles Matthew Wright Cann Group Limited Salmon Giles Corporate NWR Communications Pty Ltd Ph: +61 (0)3 9095 7088 Ph: +61 (0)3 9682 2966 Ph: +61 (0)451 896 420 E: contact@canngrou
Slide 31: For personal use only
srsonal use only. ‘NY =Ok CANN