Elixinol Wellness Ltd · ASX:EXL
Elixinol Wellness — Merger or Acquisition (February 2024)
33 slides from Elixinol Wellness's merger presentation, Feb 12, 2024
Slide 1: Acquisition & Capital Raising Presentation
Acquisition & Capital Raising Presentation 12 February 2024 1
Slide 2: Important Notice and Disclaimer
Important Notice and Disclaimer The following material is for general information purposes only and should not be relied on for the making of any investment decision. Any investment in Elixinol Wellness Limited ACN 621 479 794 (Elixinol Wellness) is subject to a number of investment risks including
Slide 3: Vision
Vision To create healthier everyday lives through the power of plant-based products. Quality & True Natural & Efficacy Heritage Sustainable Strategic Objective: Enhanced Scale and Profitability The acquisition of Ananda Food provides Elixinol Wellness with enhanced scale and profitability. This ceme
Slide 4: Table of Contents
Table of Contents 1. Executive Summary 2. Ananda Food Overview 3. Strategic Rationale 4. Revenue Breakdown & Guidance 5. Equity Raising Overview 6. Next Steps & Growth Strategies Appendix 44 4
Slide 5: 1. Executive Summary
1. Executive Summary 5
Slide 6: Elixinol Wellness Overview
Well positioned in global Pioneer and early leader in consumer wellness trend hemp and other plant-based Elixinol Wellness for natural and plant-based food superfoods and developing a robust native ingredients supply model. and nutraceuticals. Overview New product development $13.0m revenue pipeline
Slide 7: Executive Summary – Corporate Overview
1. Executive Summary – Corporate Overview Elixinol Wellness Limited (ASX: EXL) is a pioneer in the global hemp, plant-based food, skincare, and nutraceutical product industries operating a vertically integrated business which produces, manufactures, and distributes a range of highly complementary pr
Slide 8: Executive Summary – Board and Management
1. Executive Summary – Board and Management David Fenlon Ron Dufficy Pauline Gately Josephine Lorenz Independent Chair and Non- Group CEO and Managing Non-Executive Director Group CFO and Joint Company Executive Director Director Secretary ● 30+ years experience in the ● Previously held the role of
Slide 9: Executive Summary – Acquisition Overview
1. Executive Summary – Acquisition Overview • Elixinol Wellness has entered into a binding agreement to acquire 100% of Ecofibre Limited’s wholly owned subsidiary (“Acquisition”), Acquisition Overview Ananda Food Pty Ltd (“Ananda Food”). Overview of Ananda • Ananda Food is a prominent hemp producer
Slide 10: 2. Ananda Food Overview
2. Ananda Food Overview 10
Slide 11: Ananda Food – Business Snapshot
2. Ananda Food – Business Snapshot • Ananda Food is a large-scale producer of Australian grown hemp seeds, protein Major Scale Producer and hemp seed oil. • Operating as one of Australia’s eminent hemp producers. Ananda Food is Low-Cost Production & focused on low-cost, high-quality production of he
Slide 12: Ananda Food – Product Overview
2. Ananda Food – Product Overview Ananda Food Woolworths Coles Retailer Product • BRC registered facility in Newcastle, NSW • Sells bulk seed, protein • Product developed XX and • XXoil to Woolworths, following proactive Owned retail brand • Seed, oil and protein sold under “Macro” engagement with a
Slide 13: Ananda Food – Financial Summary
2. Ananda Food – Financial Summary CY2022 CY2023 $m1 FY FY Revenue 2.5 2.1 Balance Sheet as at 31 December 2023: Cost of goods sold (2.3) (1.8) Gross profit 0.2 0.3 Net Tangible Assets of $2.3m GP% 8% 16% comprising: Operating expenses (1.4) (1.4) - Inventory $2.1m, Fixed Assets $0.6m, Non-oper
Slide 14: 3. Strategic Rationale
3. Strategic Rationale 14
Slide 15: Strategic Rationale
3. Strategic Rationale Building a leading plant-based • Strengthens and broadens the EXL hemp ingredients portfolio. EXL will become one of food, health and wellness the largest suppliers of hemp ingredients in Australia across both branded and private company label products • Capability to produce
Slide 16: Expanded Complimentary Product Range
3. Expanded Complimentary Product Range Products delivered across four verticals Human Nutrition Human Wellness Pet Wellness Superfood Ingredients New! New! 16
Slide 17: Combined Distribution Network and Customer Base
3. Combined Distribution Network and Customer Base Immediately broadens the distribution network Retail E-commerce Wholesale 17
Slide 18: House of Brands
3. House of Brands We help our customers feel better Positioning: delicious, nutritious and convenient health products that improve & enrich our customers' lives Consumers: have a lifestyle focused on living well and prioritise health & wellness Retail Channels: grocery, independents, health, pharma
Slide 19: B2B Ingredients
3. B2B Ingredients Business Australian natives and Units superfoods Positioning: plant-based, clean, nutritious, Australian grown (preferred) Customers: B2B (trade) XXXX Food Beverage Beauty Pet Food Manufacturers & Drink Manufacturers & Beauty Animal Food Hospitality Hospitality Manufacturers & Bra
Slide 20: 4. Revenue Breakdown & Guidance
4. Revenue Breakdown & Guidance 20
Slide 21: Revenue Breakdown & Guidance
4. Revenue Breakdown & Guidance CY2023 Pro-forma Revenue: Cost Synergies: • EXL: $10.7m¹ • $1.0m immediate cost synergies • Ananda Food: $2.1m² • Improved production yields driving gross margin Combined CY2023 Pro-forma Revenue: $12.8m Forecast EBITDA breakeven from mid-CY2024 CY2024 Revenue Guidanc
Slide 22: Key Outcomes from the Equity Raise and Acquisition
Key Outcomes from the Equity Raise and Acquisition Implied Outcomes from the Equity Raise and Acquisition • Increase in revenue streams through the new product range from the Acquisition of Ananda Food, with consolidated revenue guidance of $16-20m, representing a circa 50 - 87% increase from EXL’s
Slide 23: 5. Equity Raising Overview
5. Equity Raising Overview 23
Slide 24: Equity Raising Summary
5. Equity Raising Summary • Elixinol is undertaking a fully underwritten non-renounceable entitlement offer to raise approximately $3.16 million via the issue of approximately 632 million shares (“New Shares”) on the basis of one (1) New Share for every one (1) Offer Size and Structure existing shar
Slide 25: Indicative Capital Structure and Use of Funds
5. Indicative Capital Structure and Use of Funds • The Equity Raise provides existing shareholders with the opportunity provide continued support for the Company, whilst inviting new shareholders to join the Elixinol Wellness register (via sub-underwriting) which will aid in increasing market liquid
Slide 26: Indicative Timetable
5. Indicative Timetable Indicative Timetable Date Trading Halt Pre-Market Monday, 12 February 2024 Resume Trading on the ASX Wednesday, 14 February 2024 Lodgement of Prospectus with ASIC Monday 19 February 2024 Record Date Thursday, 22 February 2024 Entitlement Issue Open Monday, 26 February 2024 En
Slide 27: 6. Next Steps and Growth Strategies
6. Next Steps and Growth Strategies 27
Slide 28: Growth Strategies
6. Growth Strategies 9- Key Growth Drivers: 1. Capitalising on the transition of hemp-based consumer products moving from the health channel into mainstream channels, with a particular focus on the high-margin sports Focus on core brands in the nutrition and vitamin sectors. Australian market 2. Sig
Slide 29: Appendix
Appendix 29
Slide 30: Key Risks
Key Risks Risk Summary Acquisition Risk Completion of the Acquisition is conditional on the Equity Capital Raising and the satisfaction of a number of customary conditions. Sufficiency of The Company has limited financial resources and will need to raise additional funds from time to time to finance
Slide 31: EXL Income Statement
EXL Income Statement1 $m CY2022 CY2023 Revenue 7.1 8.3 Cost of goods sold (3.8) (4.9) Gross profit 3.3 3.4 GP% 46% 41% Operating expenses (12.3) (8.5) Non-operating income 0.5 0.6 Adjusted EBITDA (8.5) (4.6) Depreciation (0.7) (0.6) Impairment of assets (1.0) (1.7) Share-based payments (0.2
Slide 32: Thank you
Thank you for more information, please contact: Ron Dufficy Group CEO & Managing Director Email: ron.dufficy@elixinolwellness.com Mobile: +61 428881718 Website: www.elixinolwellness.com 32
Slide 33: References
References Business Units 1. CMA "Australia's Complimentary Medicines Industry Audit " 2021. 2. Australian Industrial Hemp Alliance (Agrifutures RD&E plan 2022). 3. Global Data Report - "Australia Baking Mixes (Bakery and Cereals) Market Size, Growth and Forecast Analytics, 2021-2026" (published: Se
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