Slide 1: Investor Presentation June 2017
For personal use only INVESTOR PRESENTATION JUNE 2017
Slide 2: Disclaimer
DISCLAIMER This investor presentation (Presentation) has been prepared by Cann Group Limited (ABN 25 603 Investment risk 949 739) (Cann) and comprises written material regarding Cann. An investment in Cann shares is subject to known and unknown risks, some of which are beyond the control of Cann. Ca
Slide 3: Disclaimer
DISCLAIMER Past performance All rights reserved Investors should note that past performance, including any pro forma historical information in this Several photographs contained in this Presentation are the property of Cann and are protected Presentation, is given for illustrative purposes only and
Slide 4: Company Snapshot
COMPANY SNAPSHOT 4 For personal use only 1.00 8.00mm Volume traded Share price ($) METRIC VALUE 0.90 7.00mm Share price $0.51 0.80 6.00mm 0.70 Shares on issue (fully 110.4 0.60 5.00mm diluted) 0.50 4.00mm Market capitalisation $56.3m 0.40 3.00mm IPO Price ($0.30) 0.30 Cash $15.5m 0.20 2.00mm 1.00mm
Slide 5: Recent Progress
RECENT PROGRESS 5 For personal use only • $13.5m raised in heavily supported IPO; listed on ASX 4 May • Southern facility expansion underway • Northern facility lease executed; commissioning due by end 2017 • Cann team growing to meet increase in operational activities • First permits (R&D & cultiva
Slide 6: Company Overview
COMPANY OVERVIEW 6 For personal use only FOCUSED ON BREEDING & EXPERIENCED CULTIVATING MEDICINAL CANNABIS AGRIBUSINESS BOARD Cann is a vertically-integrated High profile & experienced Australian agribusiness company agribusiness board & focused on breeding, cultivating & management team manufacturin
Slide 7: Board & Management Team
BOARD & MANAGEMENT TEAM 7 For personal use only • Allan has extensive experience in the agribusiness • Experienced public company director sector as well as significant tenures with biotechnology • Co-founded Premier Artists & Frontier Touring Company companies • Very strong financial management bac
Slide 8: Capital Structure & Use of Funds
CAPITAL STRUCTURE & USE OF FUNDS 8 For personal use only NO. OF TOTAL TOTAL ESTIMATED DESCRIPTION DESCRIPTION SHARES UNDILUTED DILUTED SPEND ($M) Founding Shares 20,000,000 18.5% 18.1% Construction of purpose-built facility 1.8 Feasibility / scoping study for Pre-IPO Issued Shares 19,986,668 18.4% 1
Slide 9: R&D & Cultivation Program
R&D & CULTIVATION PROGRAM 9 PROGRESSING AHEAD OF SCHEDULE For personal use only Cann is progressing a three phase growth strategy to builds its cultivation capability, with adequate funding to complete Phases 1 & 2 Southern facility Northern facility secured Phase 3 three additional indoor & commiss
Slide 10: Our Focus
OUR FOCUS 1 0 For personal use only Rapidly developing Regulatory A clear market with substantial pathway now Australian focus growth potential defined CANN IS UNIQUELY FOCUSED ON BUILDING A WORLD-CLASS AUSTRALIAN-BASED MEDICINAL CANNABIS COMPANY Accelerating cultivation Key industry Licences & perm
Slide 11: Business Model & the Industry Value Chain
BUSINESS MODEL & THE INDUSTRY VALUE CHAIN 1 1 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 12: The Opportunity: Australian Market Size
THE OPPORTUNITY: AUSTRALIAN MARKET SIZE 12 Forecasting the potential size of the Australian medicinal cannabis market can be roughly determined using two methodologies For personal use only Methodology 1: Demand-driven by condition Methodology 2: Peer country comparable usage • Australia only – allo
Slide 13: Australian Industry Leader
AUSTRALIAN INDUSTRY LEADER 1 3 Established operations For personal use only • Secure Cultivation Rooms fitted with requisite lighting, irrigation, climate control & other equipment to grow cannabis for medicinal & research related purposes Expansion underway Cultivating low • Licence variation to br
Slide 14: Cornerstone Investor: Aurora Cannabis Inc.
CORNERSTONE INVESTOR: AURORA CANNABIS 1 INC. 4 Aurora Cannabis Inc. (TSXV:ACB), one of Canada’s largest publicly-listed cannabis companies, For personal use only holds a 19.9% shareholding in Cann after investing A$6.5m in the IPO METRIC VALUE Share price C$2.21 • Canada’s 2nd largest (by market cap
Slide 15: Milestones & Newsflow
MILESTONES & NEWSFLOW 15 For personal use only 2018 Development of IP portfolio Targeting & securing research grants with various NGOs & industry First revenues with commencement bodies, such as Pain of clinical trial evaluating efficacy Australia, AFAO (AIDS/HIV), against pain in dementia patients
Slide 16: Contacts
CONTACTS For personal use only INVESTOR / MEDIA RELATIONS Peter Crock Matthew Wright Cann Group Limited NWR Communications Pty Ltd Ph: +61 (0)3 9095 7088 Ph: +61 (0)451 896 420 E: contact@canngrouplimited.com E: matt@nwrcommunications.com.au
Slide 17: Appendices
For personal use only APPENDICES
Slide 18: The Opportunity: An Emerging New Global Industry
THE OPPORTUNITY: AN EMERGING NEW GLOBAL 18 INDUSTRY European jurisdictions that permit medicinal use (in some form) include Czech Republic, Finland, Germany, Italy, the Netherlands and Spain For personal use only MPR and ACMPR regulations govern commercial producers in Israel very advanced with Cana
Slide 19: Cannabis Spot Price: USA
CANNABIS SPOT PRICE: USA 19 In the US, the average price of cannabis, as illustrated in the Overall Index (which includes For personal use only pricing data for 7,346 different products), is US$11.22/gram (A$14.96/gram)* The Overall Index displays the mean average price across all currently tracked
Slide 20: Business Model & Valuation Comparison
BUSINESS MODEL & VALUATION COMPARISON 20 For personal use only MARKET COMPANY BRAND CAPITALISATIO DOMICILE BUSINESS MODEL (TICKER) N (A$M EQV.)* Nutraceutical products businesses that also engages in pharmaceutical research Medlab Clinical • 131.3 • Develops biotherapeutics for chronic kidney diseas
Slide 21: Competitive Environment: Canadian Comps
COMPETITIVE ENVIRONMENT: CANADIAN COMPS 21 For personal use only As the nearest comparable market to Australia with respect to regulation and demographics, Canada’s publicly-listed peers provide data points regarding how the Australian market, and its participants, may evolve and perform over time A
Slide 22: Supportive Regulatory Environment in Australia
SUPPORTIVE REGULATORY ENVIRONMENT IN AUSTRALIA 22 Legal for doctors to prescribe, under strict conditions. Awaiting For personal use only NSW testing results before conducting trials Cultivation of medicinal cannabis falls under federal legislation: Legal for medical specialists Narcotic Drugs Ame
Slide 23: Cann Group: The First Cannabis Licensee in Australia
CANN GROUP: THE FIRST CANNNABIS LICENCEE IN 23 AUSTRALIA For personal use only Source: https://www.odc.gov.au/news-media/news/office-drug-control-grants-first-commercial-medicinal-cannabis-licence
Slide 24: Legalised Cannabis: A New Industry Too Big to Ignore
LEGALISED CANNABIS: A NEW INDUSTRY TOO BIG 24 TO IGNORE! For personal use only VARIOUS COMMENTS FROM THE LAW REFORM Medicinal cannabis crops now legal in Australia AAP 30 October 2016 - Budding cannabis producers can now apply for a licence to grow the COMMISSION REPORT AUGUST 2015 crop legally in A
Slide 25: US Market Trends
US MARKET TRENDS 25 While the US market operates under a different regulatory regime than Australia, growth trends For personal use only illustrate a rapidly growing domestic market that will likely present opportunities to Australian medicinal cannabis producers in time GROWTH OF LEGAL MEDICAL & AD
Slide 26: Understanding the Compounds: CBD vs THC
UNDERSTANDING THE COMPOUNDS: CBD VS THC 26 For personal use only THE TWO MAIN INGREDIENTS OF CANNABIS ARE CANNABINOL (CBD) AND TETRAHYDROCANNABINOL (THC); EACH WITH DIFFERING ACTIONS Cannabinol (CBD) and tetrahydrocannabinol (THC) are the two main ingredients in the cannabis plant; a unique class of
Slide 27: Benefits of Medicinal Cannabis
BENEFITS OF MEDICINAL CANNABIS 27 For personal use only MULTIPLE SCLEROSIS – treatment of ALTERNATIVE TREATMENT – relief after pain & other prescribed treatments have failed, muscle spasms using cannabis oil while also avoiding potential side-effects & addiction EPILEPSY – dramatic reduction in symp
Slide 28: For personal use only
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