Cann Group Ltd. · ASX:CAN
Cann — Investor Presentation (July 2024)
28 slides from Cann's investor presentation, Jul 24, 2024
Slide 1: Investor update presentation (ASX announcement)
ASX ANNOUNCEMENT Investor update presentation 24 July 2024 – Cann Group Limited (ASX: CAN) (Cann or the Company) is pleased to provide an investor update presentation providing investors with information on the Company’s strategic growth plans and investment opportunity. In addition, the investor pr
Slide 2: Cann Group Limited Investor Deck
CANN GROUP LIMITED ASX:CAN INVESTOR DECK 2 4 J U LY 2 0 2 4 AT T H E F O R E F R O N T O F M E D I C I N A L C A N N A B I S I N A U S T R A L I A S I N C E 2 0 1 7
Slide 3: Disclaimer
Disclaimer 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 provided in this Pre
Slide 4: Cann Group
CANN GROUP Cann Group is proud to be the first company in Australia to have been issued with a Cannabis Research Licence by the Australian Government’s Office of Drug Control in February 2017. Est. 2014 in Australia Cann was issued with Australia’s first Medicinal Cannabis Cultivation Licence to gro
Slide 5: Investment highlights
Investment highlights Large producer in Australia Revenue growth year on year Mildura GMP facility Cann has the only GMP production Cann has been growing its revenue for Cann’s facility in Mildura has year- facility in Australia producing high the past 5 years and with clear line of round, multiple
Slide 6: Large, local producer of medicinal cannabis
LARGE, LOCAL PRODUCER OF MEDICINAL CANNABIS “ Cann Group’s Mildura facility is the most technologically advanced indoor, full GMP medicinal cannabis cultivation & manufacturing facility in the southern hemisphere.”
Slide 7: 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 • A microclimate-controlled glasshouse with manufacturing and warehouse space •
Slide 8: Commercial products
COMMERCIAL PRODUCTS “ Cann has a diverse product portfolio, including dried flower, oils, vapes, & capsules - led by its own “Botanitech” brand, supplemented with white label. Cann also offers a variety of contract services at its Mildura GMP facility.”
Slide 9: Botanitech (own-brand) heads up a diverse product range
Botanitech (own-brand) heads up a diverse product range Local dried flower & oils Botanitech flower, oil, vapes Bulk dried flower (sold to Satipharm – CBD (sold white label) wholesalers, distributors capsules featuring & compounders) patented Gelpell technology
Slide 10: Contract services offered at cGMP facility
Contract services offered at cGMP facility Contract growing Contract packing services Contract laboratory services • ODC permit for genetic stock, cultivation and • cGMP manufacturing facility • Onsite cGMP (TGA) certified laboratory production of medicinal cannabis • Licensed to produce Active Phar
Slide 11: Research & Development
RESEARCH & DEVELOPMENT Our R&D team is focused on identifying “ new cultivars with optimal growth characteristics which can be transferred to our Mildura facility to enhance our product portfolio. Cann’s breeding program continues to support the Company’s goal of being a global supplier of choice.”
Slide 12: Breeding program
Breeding program First-round of seven shortlisted Cann Group breeding candidates developed in collaboration with Ag-VIC as part of the “CRADA” program are currently in the final stages of commercial assessment at Cann’s Mildura Facility. A selection of these shortlisted candidates became available f
Slide 13: Imported strains
Imported strains Cann’s breeding program sits The first import of 17 new strain lots The second import of 20 new strain alongside an aggressive seed has now all completed phenotyping lots has been germinated at Cann’s importation and phenotyping and awaiting final chemotyping Northern Facility and i
Slide 14: Highly experienced team
HIGHLY EXPERIENCED TEAM “ Cann Group’s executive team boasts unique skillsets across pharmaceutical research, biotechnology, finance and M&A, big-pharma management, marketing, a best-in-market legal and regulatory affairs team and agronomy.”
Slide 15: Board & management team
Board & management team • Strong knowledge of, and reputation with, regulatory agencies (e.g. TGA, ODC) Chairman • Experienced staff from cultivation, Dr Julian Chick manufacturing and commercial • Preferred employer in Sunraysia region with local TAFE/Uni connections Managing Director & Non-executi
Slide 16: Mission, Vision & Values
Mission, Vision & Values Our Mission The mission of Cann Group is to develop TRUST & excellent Australian medicinal cannabis products ACCOUNTABILITY to improve the quality of life of more patients We deliver on our promise Vision Statement To be known as the leading Australian producer, by all stake
Slide 17: Cann's opportunity
CANN’S OPPORTUNITY “ Cann is well placed with its leading brand “Botanitech” and dried-flower customer relationships to take advantage of the ~$700m MC market opportunity - given the growing demand for locally produced, high quality product at attractive price points.”
Slide 18: 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% Y
Slide 19: Market opportunity
Market opportunity • Australian market strong and growing increased need for higher volume and greater variety • Increased number of prescribers is providing greater patient access • Improving perception of role of MC for treating a variety of medical conditions • Improving reputation of Australia
Slide 20: Cann poised to seize growing market opportunity
Cann poised to seize growing market opportunity Established Expertise GMP facility customer base & Cutting edge R&D program commercial pathways • Strong knowledge of, and • Full cultivation and GMP • Established pathways to market • Long-term affiliation with reputation with, regulatory manufacturin
Slide 21: Strategy for growth
STRATEGY FOR GROWTH “ Cann expects to achieve positive EBITDA in FY2025, and cash flow positive in FY2026 onwards which will be used to repay debt.”
Slide 22: The evolution of Cann's focus so far
The evolution of Cann’s focus so far 2017- 2021 - (H2) 2022 2023 2024 2021 2022 The vision Laying the foundation Growing into the Scaling up Continued growth • Project management • Practical completion of facility • Increasing all areas to • Increased revenue and construction to the Mildura site • F
Slide 23: Cann's growth strategy going forward
Cann’s growth strategy going forward FY2025 FY2026 FY2027 FY2028 • Expand Botanitech range • Production target 9-10 • Facility expansion, fit-out • Facility expansion with new genetics & forms tonne (close to full capacity) extra 2-4 bays (capital completes (e.g. vapes) • Revenue growth, investment
Slide 24: FY2025 growth plan to deliver positive EBITDA is underway
FY2025 growth plan to deliver positive EBITDA is underway Focus on inhalable Maximise margins with Move from 3 cultivars to Enhance non-inhalable flower and boost quality Expand Botanitech range efficiencies & cost a 10-12 cultivar portfolio flower product range to meet market control expectations C
Slide 25: Dried flower production at Mildura ~65%-75% of revenue FY25
Dried flower production at Mildura ~65%-75% of revenue FY25 Increasing production to 10 tonnes per annum by FY2027 will ensure strong revenue growth and profitability at today’s average selling price of $3.45 per gram. REVENUE COMPOSITION FY2025 (est) 12,000.00 10,000 26% 10,000.00 EBITDA Cashflow p
Slide 26: Outlook
OUTLOOK “ Cann expects to achieve positive EBITDA in FY2025, and Cash Flow Positive in FY2026.”
Slide 27: Strategic outlook
Strategic outlook Progressing the scale and Extending portfolio range to Continuing our path towards quality of production. Aim to meet market demands EBITDA profitability and meet 10 tonne of production per cash flow positive annum FY2027.
Slide 28: Contact
CONTACT Jenni Pilcher CEO & Managing Director Jenni.pilcher@canngrouplimited.com