Cann Group Ltd. · ASX:CAN
Cann — Shareholder Meeting (November 2020)
30 slides from Cann's shareholder meeting presentation, Nov 24, 2020
Slide 1: AGM Presentation ASX Announcement
ASX ANNOUNCEMENT 24 November 2020 For personal use only AGM Presentation 24 November 2020: In advance of this morning’s Annual General Meeting of shareholders to be held at 10:00am, Cann Group Limited (CAN:ASX) is pleased to provide a copy of the presentation that will be made to shareholders at the
Slide 2: AGM presentation
For personal use only AGM presentation 10:00am Tuesday, 24 November 2020 Allan McCallum, AO – Chairman Peter Crock – CEO 1
Slide 3: Disclaimer
Disclaimer For personal use only This AGM 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 inform
Slide 4: Chairman's address
Chairman’s address For personal use only Allan McCallum AO Chairman Refer to ASX Announcement lodged 24 November 2020 3
Slide 5: Strategy & focus
Strategy & focus For personal use only • Continued focus on robust, vertically integrated business- to-business (B2B) model that meets growing Australian demand & building export opportunities • Despite COVID-related disruptions, Cann has continued to meaningfully progress cultivation, manufacturing
Slide 6: Industry status
Industry status For personal use only • Australian momentum continues to be positive - Consistent growth in SAS approvals – now more than 6,000 per month - Level of demand expected to require 40,000kg of dry flower production within five years - Proposed regulatory reform, including CBD becoming ava
Slide 7: Debt finance, capital raising & sell-down
Debt finance, capital raising & sell-down For personal use only • Completed $40.2m institutional placement & SPP in July 2020 • Credit approval received from NAB for $50m secured debt facility - Construction facility – amortising 8-year loan • Strong financial position to execute on the company’s ex
Slide 8: Outlook
Outlook For personal use only • Primary focus remains execution of growth strategy & delivery on commercial offtake contracts & revenue target • Consolidation & rationalisation of the sector expected • Cann monitoring sector & potential M&A opportunities • Intention to firmly establish Cann as an Au
Slide 9: CEO's address
CEO’s address For personal use only Peter Crock CEO Refer to ASX Announcement lodged 24 November 2020 8
Slide 10: Regulatory & commercial progress
Regulatory & commercial progress • COVID-19 causing regulatory delays locally & overseas For personal use only - Has pushed some sales revenues from H1 into H2 FY21 - As expected, projected revenues weighted to H2 • More than 10,000 bottles due to ship to Germany & the UK in the next two months – su
Slide 11: Consolidated European approach
Consolidated European approach For personal use only • Collaboration with German partner iuvo to streamline export pathway into Europe • iuvo is a German pharmaceutical distribution company focusing on medicinal cannabis • iuvo to spearhead business development activities into European markets • Rem
Slide 12: GMP certified production capability
GMP certified production capability For personal use only • Vision to be Australia’s leading scaled producer of GMP certified medicinal cannabis for supply to domestic & overseas markets • Vertically integrated business-to-business (B2B) model supports business case for Mildura expansion - Potential
Slide 13: Debt funding & Mildura expansion
Debt funding & Mildura expansion For personal use only • Cann has received debt financing from NAB for construction of the Mildura project - $50m amortising facility over a term of 8 years - Validation of Cann’s strategic growth plans • Stage 1a proposed to include capacity to produce 12,500kgs of d
Slide 14: Financials & operating costs
Financials & operating costs For personal use only • Various actions taken to reduce base operating costs • Equity raising costs & accumulated manufacturing costs were considerable in calendar year to date • Current monthly expenditure ~$1.65m excluding cap ex - Monthly corporate/overheads – ~$665k
Slide 15: Strategic partnerships & R&D
Strategic partnerships & R&D For personal use only Partner Key Outcomes to date Impact for company Agriculture Victoria Utilisation of chemotypic, genotypic and phenotypic data to optimise the • Novel cultivars with improved yields accelerated breeding project and/or chemotypic profiles ARC Research
Slide 16: A vertically integrated medicinal cannabis producer
A vertically integrated medicinal cannabis producer, supplying markets in Australia & overseas For personal use only Production Manufacturing Distribution Existing facilities currently provide Arrangements for the manufacture of Active Pharmaceutical Ingredients Distribution agreements in place in 1
Slide 17: Formal business of AGM
For personal use only FORMAL BUSINESS OF AGM 16
Slide 18: Formal business of AGM
Formal business of AGM For personal use only Item 1 – Financial Statements and Reports To receive the financial report, directors’ report and auditor’s report for the Company and its controlled entities for the financial year ended 30 June 2020. 17
Slide 19: Resolutions for voting
For personal use only RESOLUTIONS FOR VOTING Items 2 to 9 18
Slide 20: Resolution – Adoption of Remuneration Report
Resolution 2 – Adoption of Remuneration Report That, pursuant to and in accordance with section 250R(2) of the Corporations Act, the For personal use only Remuneration Report for the financial year ending 30 June 2020 as set out in pages 19 to 25 (inclusive) of the Annual Report be adopted. Proxy vo
Slide 21: Resolution – Re-election of Director
Resolution 3 – Re-election of Director That Mr Geoffrey Ronald Pearce, a Director who retires from office in accordance with Rule 50.2 For personal use only of the Company’s Constitution and being eligible for re-election, be re-elected a Director of the Company. Proxy votes For Open Against Total V
Slide 22: Resolution – Re-election of Director
Resolution 4 – Re-election of Director That Ms Jennifer Lee Pilcher, a Director who was appointed to fill a casual vacancy in For personal use only accordance with Rule 49.1 of the Company’s Constitution until this Annual General Meeting and being eligible for re-election, be re-elected a Director o
Slide 23: Resolution – Approval of issue of New Shares to CSIRO
Resolution 5 – Approval of issue of New Shares to CSIRO That, for the purposes of Listing Rule 7.1, Shareholders approve the issue to the Commonwealth Scientific For personal use only and Industrial Research Organisation (CSIRO) up to a maximum of 90,000 fully paid ordinary shares in the capital of
Slide 24: Resolution – Approval of Long-Term Incentive Plan
Resolution 6 – Approval of Long-Term Incentive Plan That pursuant to and in accordance with Listing Rule 7.2 (Exception 13) and sections 259B(2) For personal use only and 260C(4) of the Corporations Act, the Cann Group Limited 2020 Long-Term Incentive Plan ("Long-Term Incentive Plan"), and the grant
Slide 25: Resolution – Approval of Employee Share Contribution Plan
Resolution 7 – Approval of Employee Share Contribution Plan For personal use only That pursuant to and in accordance with Listing Rule 7.2 (Exception 13) and sections 259B(2) and 260C(4) of the Corporations Act, the Cann Group Employee Share Contribution Plan ("Employee Share Contribution Plan"), an
Slide 26: Resolution – Approval of Employee Share Gift Plan
Resolution 8 – Approval of Employee Share Gift Plan That pursuant to and in accordance with Listing Rule 7.2 (Exception 13) and sections 259B(2) For personal use only and 260C(4) of the Corporations Act, the Cann Group Employee Share Gift Plan ("Employee Share Gift Plan"), and the grant of and issue
Slide 27: Resolution – Approval of additional 10% placement capacity
Resolution 9 – Approval of additional 10% placement capacity for 12 months That, for the purpose of Listing Rule 7.1A and for all other purposes, approval is given for the For personal use only issue of Equity Securities, as that term is defined in the Listing Rules, totalling up to 10% of the issue
Slide 28: Questions
For personal use only 27 QUESTIONS
Slide 29: Voting
For personal use only 28 VOTING
Slide 30: Meeting close
MEETING CLOSE For personal use only CONTACTS: Clive Fanning Head of Investor Relations Cann Group Limited +61 3 9095 7088 contact@canngrouplimited.com Matthew Wright Investor / Media Relations NWR Communications +61 (0)451 896 420 matt@nwrcommunications.com.au 29