Slide 1: Investor Presentation May 2017
For personal use only INVESTOR PRESENTATION MAY 2017
Slide 2: Disclaimer
DISCLAIMER This investor presentation (Presentation) has been prepared by Cann Group Limited (ABN 25 Investment risk 603 949 739) (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 Several photographs contained in this Presentation are the property of Cann and are this Presentation, is given for illustrative purposes only and cannot be
Slide 4: Transaction Overview
TRANSACTION OVERVIEW 4 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 manufact
Slide 5: Board & Management Team
BOARD & MANAGEMENT TEAM 5 For personal use only • Allan has extensive experience in the agribusiness • Experienced public company director sector as well as significant tenures with • Co-founded Premier Artists & Frontier Touring biotechnology companies Company • Chairman of Tassal Group (ASX:TGR),
Slide 6: Cornerstone Investor: Aurora Cannabis Inc.
CORNERSTONE INVESTOR: AURORA CANNABIS 6 INC. Aurora Cannabis Inc. (TSXV:ACB), one of Canada’s largest publicly-listed cannabis companies, For personal use only subscribed for 19.9% of Cann as a cornerstone investor to the IPO at the offer price of $0.30 ($6.5m in total) FINANCIAL METRIC Share price
Slide 7: Our Focus
OUR FOCUS 7 For personal use only Rapidly developing market with Regulatory A clear substantial growth pathway now Australian focus potential defined CANN IS UNIQUELY FOCUSED ON BUILDING A WORLD-CLASS AUSTRALIAN- BASED MEDICINAL CANNABIS COMPANY R&D facilities/program Key industry Licenced to undert
Slide 8: Business Model & the Industry Value Chain
BUSINESS MODEL & THE INDUSTRY VALUE CHAIN 8 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 Manufa
Slide 9: Research & Development
RESEARCH & DEVELOPMENT 9 Established Operations For personal use only • Cann is using its own experience & capabilities, & collaborating with research bodies & commercial entities to develop optimal breeding, cultivation, extraction & analysis programs • Cann was granted a three year “Authority for
Slide 10: Cultivation & Production
CULTIVATION & PRODUCTION 10 For personal use only Existing Capability • Secure Cultivation Rooms fitted with requisite lighting, irrigation, climate control & other equipment to grow cannabis for medicinal & research related purposes • Secure Cultivation Rooms consistently hold optimal environmental
Slide 11: Manufacturing
MANUFACTURING 11 For personal use only Building on the IP Portfolio • Harnessing the biochemical variation that exists between different cannabis strains, producing a wide variety of cannabinoids is a major focus for Cann Group • Significant opportunity to develop specialised extraction & product ha
Slide 12: Key Industry Relationships
KEY INDUSTRY RELATIONSHIPS 12 For personal use only As well as Aurora Cannabis Inc., Cann has forged relationships and agreements with leading organisations that add to the business model across various components of the industry value chain Clinical Evaluation Partner Cann expanding into Relationsh
Slide 13: The Cann Business Model
THE CANN BUSINESS MODEL 13 For personal use only Having secured relevant These select varieties will Cann to collaborate with & With the necessary licenses & permits Cann yield cannabinoid oils supply a variety of third regulatory approvals, Cann will breed & grow certain suitable in specific partie
Slide 14: Size of Australian Opportunity
SIZE OF AUSTRALIAN OPPORTUNITY 14 • Initial demand of up to 8,000kg – more than A$100m potential revenue in For personal use only year one – growing to A$380m by 2018 & A$1.3bn in 2026 • Office of Drug Control (ODC) estimates 20,000m² required for first two years production • Cann’s new facility 600
Slide 15: Supportive Regulatory Environment in Australia
SUPPORTIVE REGULATORY ENVIRONMENT IN AUSTRALIA 15 Legal for doctors to prescribe, under strict conditions. For personal use only Awaiting NSW testing results before conducting trials Cultivation of medicinal cannabis falls under federal legislation: Legal for medical specialists Narcotic Drugs to
Slide 16: Milestones & Newsflow
MILESTONES & NEWSFLOW 16 For personal use only Development 2018 of IP portfolio Targeting & securing research grants with various NGOs & industry bodies, such as Pain First revenues with commencement of Australia, AFAO clinical trial evaluating efficacy against (AIDS/HIV), Epilepsy pain in dementia
Slide 17: Capital Structure & Use of Funds
CAPITAL STRUCTURE & USE OF FUNDS 17 For personal use only NO. OF TOTAL TOTAL ESTIMATED DESCRIPTION DESCRIPTION SHARES UNDILUTED DILUTED SPEND ($M) Founding Shares 20,000,000 18.5% 18.1% Construction of purpose-built 1.8 facility Pre-IPO Issued Shares 19,986,668 18.4% 18.1% Feasibility / scoping stud
Slide 18: Business Model & Valuation Comparison
BUSINESS MODEL & VALUATION COMPARISON 18 For personal use only MARKET COMPANY BRAND CAPITALISATION DOMICILE BUSINESS MODEL (TICKER) (A$M EQV.)* • Nutraceutical products businesses that also engages in pharmaceutical research Medlab Clinical 156.4 • Develops biotherapeutics for chronic kidney disease
Slide 19: Competitive Environment: Canadian Comps
COMPETITIVE ENVIRONMENT: CANADIAN COMPS 19 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 20: Investment Summary
INVESTMENT SUMMARY 20 Business Model For personal use only • Advanced player in the industry – long established & first in Australia with licences secured, creating first mover advantage • Numerous & high barriers to entry – licences create incumbency & in time hold substantial tangible value • Part
Slide 21: 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 22: Appendices
For personal use only APPENDICES
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: The Opportunity: An Emerging New Global Industry
THE OPPORTUNITY: AN EMERGING NEW GLOBAL 24 INDUSTRY European jurisdictions that permit medicinal use (in some form) include Czech Republic, Finland, Germany, Italy, the For personal use only Netherlands and Spain MPR and ACMPR regulations govern commercial producers Israel very advanced in Canada. C
Slide 25: Legalised Cannabis: A New Industry Too Big to Ignore
LEGALISED CANNABIS: A NEW INDUSTRY TOO BIG 25 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 COMMISSION REPORT AUGUST 2015 the crop legally in A
Slide 26: The Opportunity: Australian Market Size
THE OPPORTUNITY: AUSTRALIAN MARKET SIZE 26 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 • Methodology 1 assumes
Slide 27: Cannabis Spot Price: USA
CANNABIS SPOT PRICE: USA 27 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 28: US Market Trends
US MARKET TRENDS 28 For personal use only While the US market operates under a different regulatory regime than Australia, growth trends illustrate a rapidly growing domestic market that will likely present opportunities to Australian medicinal cannabis producers in time GROWTH OF LEGAL MEDICAL & AD
Slide 29: Understanding the Compounds: CBD vs THC
UNDERSTANDING THE COMPOUNDS: CBD VS THC 29 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 30: Benefits of Medicinal Cannabis
BENEFITS OF MEDICINAL CANNABIS 30 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 POST
Slide 31: For personal use only
GROUP LIMITED = = < .*) ..c51) (CUOSISd Io