Ecs Botanics Holdings Ltd · ASX:ECS
Ecs Botanics — Shareholder Meeting (November 2019)
28 slides from Ecs Botanics's shareholder meeting presentation, Nov 20, 2019
Slide 1: November 2019 – AGM Presentation
For personal use only NOVEMBER 2019 – AGM PRESENTATION ASX:ECS 1 ecsbotanics.com.au @ecsbotanics
Slide 2: Disclaimer
DISCLAIMER For personal use only “This Presentation may contain forward looking statements, opinions or should consider the forward looking statements contained in this estimates. Any forward looking statements, opinions or estimates Presentation in light of those disclosures. The forward looking st
Slide 3: ECS Botanics Overview
ECS BOTANICS OVERVIEW For personal use only Targeting the burgeoning Australian hemp industry with a range of retail & ECS farm now certified organic (in conversion) wholesale hemp food products Tasmania focus – farm acquired for hemp cultivation & Medicinal cannabis – Manufacturing Licence site of
Slide 4: Capital Structure & Board of Directors
CAPITAL STRUCTURE & BOARD OF DIRECTORS For personal use only CORPORATE SNAPSHOT Share on issue 507.59m Options 20.38m Performance Rights 131.25m Market Capitalisation $24.9m Share Price (19/11/2019) $0.049 Cash (30/9/19) $5.3m BOARD OF DIRECTORS Alexander Keach Managing Director David McCredie Non-E
Slide 5: History of Hemp
HISTORY OF HEMP For personal use only HISTORICALLY CURRENT OUTLOOK Common staple (food, fibre, medicine) “ Two of my favourite things are sitting on 2020 – New Zealand – referendum on whether for thousands of years until the 1930s my front porch to legalise Recreational Cannabis smoking a pipe of 20
Slide 6: Hemp vs Marijuana
HEMP VS MARIJUANA For personal use only Hemp Marijuana Low THC High THC Hemp has less Contains up to 30% THC than 1% THC & has strong psychoactive effects Uses Thousands of uses including food, medicine, skin-care, VS Uses Medical & recreational clothing, fuel, paper, building purposes material, bio
Slide 7: Why Hemp – Mega Trend & Highly Disruptive
WHY HEMP – MEGA TREND & HIGHLY DISRUPTIVE For personal use only HEMP PLANT USES “Why use up forests which were centuries in the making and the mines which required ages to lay down, if we can get the equivalent of forest and mineral products in the annual growth of the hemp fields?” ESSENTIAL OILS M
Slide 8: Industrial Hemp – Uses
INDUSTRIAL HEMP – USES For personal use only Grain Processing: • Drying Seed Stock Food – Retail Grain • Cleaning Genetics, Seed Stock Harvesting • Pressing & Plant Breeding • Dehulling Food – Wholesale Food Services • Milling Flower Processing: Cannabinoids Terpenes Seed Supply Flower • Curing Harv
Slide 9: Market Opportunity – Global Stats
MARKET OPPORTUNITY – GLOBAL STATS For personal use only Hemp-based foods industry is expected to grow at a "I don’t know if hemp is going to save the CAGR of ~24% in next three years¹ world, but it’s the only thing that can." Activist Jack Herer "The Hemperor" IT IS ESTIMATED THAT BY 2025: Plant bas
Slide 10: An Industry in Transformation – WHO Recommendations & Narcotic Drugs Act Review
AN INDUSTRY IN TRANSFORMATION – W.H.O RECOMMENDATIONS & AUSTRALIAN NARCOTIC DRUGS ACT REVIEW For personal use only The World Health Organisation (WHO) Expert Committee on Drug Dependence (ECDD) has played a central role in the international drug control system. Its main task is to carry out medical
Slide 11: ECS Botanics Company Structure
ECS BOTANICS COMPANY STRUCTURE For personal use only 28.4% 100% ECS BOTANICS HOLDINGS LTD 11 11
Slide 12: Why Tasmania?
WHY TASMANIA? For personal use only Based on its history of Farms in Tasmania produce producing high quality food approximately 50% of the & plant-based pharmaceuticals, world's licit poppy straw that is Tasmania is the perfect location later refined into opiates to support a burgeoning & ECS’s (pre
Slide 13: Business Model
BUSINESS MODEL For personal use only ECS Botanics is a vertically integrated hemp food business (insourcing & outsourcing along the supply chain) that is taking advantage of growth in the hemp industry, supplying retail & wholesale products in Australia, with its sights set on overseas opportunities
Slide 14: Licensing
LICENSING For personal use only “OVER THE NEXT 20 YEARS THE TASMANIAN GOVERNMENT HAS SET A TARGET TO INCREASE RURAL VALUE TO $10BN. THIS SECTOR WILL NEED TO GROW AT MORE THAN DOUBLE THE GROWTH RATE EXPERIENCED OVER THE PAST 20 YEARS.” UNDER APPLICATION Tasmania – Industrial National – Hemp License f
Slide 15: Retail Products
RETAIL PRODUCTS For personal use only ECS RETAIL PRODUCT RANGE INCLUDES BOTTLED HEMP SEED OIL, OIL CAPSULES, HEMP HEART POUCHES, CURRY SAUCES, SOUPS, PROTEIN & PROTEIN MIX 15 15
Slide 16: Wholesale Products
WHOLESALE PRODUCTS For personal use only ECS WHOLESALE PRODUCT RANGE INCLUDES HEMP HEARTS, PROTEIN, FLOUR & OIL 16 16
Slide 17: Hemp Food – Distribution & Agreements
HEMP FOOD – DISTRIBUTION & AGREEMENTS For personal use only ECS has established key relationships & agreements across numerous layers of the value chain Using a simple distribution strategy (Eden & Just Foods) ECS has access to major & independent ecsbotanics.com.au retail groups 17 17
Slide 18: Medicinal Cannabis
MEDICINAL CANNABIS For personal use only Regulatory progress with Proposed medicinal Office of Drug Control (ODC): ECS has engaged leading cannabis facility at ECS medicinal cannabis site in Tasmania - Manufacturing Licence – consultancy group granted 8/11/19 PharmOut, to assist with project feasibi
Slide 19: CBD Strategy
CBD STRATEGY For personal use only Long Term Aim: Supply organic, safe & trusted Australian manufactured cannabinoids to Europe & Asia, establishing ECS as the cannabis equivalent to Australia’s vitamins, baby formula, food & beverage companies who have achieved similar export success • Work in prog
Slide 20: ECS Farm
ECS FARM For personal use only Proposed site of 50,000ft² Medical Cannabis Cultivation and Manufacturing Facility Manufacturing Licence granted, Cultivation Licence pending 70 acres of irrigated land for 70 commercial hemp cultivation & trials Water security – 64ML water licence DO WE NEED TO BE CAR
Slide 21: Organic Hemp
ORGANIC HEMP For personal use only • ECS Farm now certified organic (in transition) by Southern Cross Certified • Working with contract grower base to increase organic supply • Expected to become Australia's first & largest organic hemp supplier • Premium price for organic hemp • Management expects
Slide 22: TAP Agrico
TAP AGRICO For personal use only • 28.4% stake in TAP AgriCo • Option to acquire further 6.2% • TAP AgriCo processing ECS offtake • Alvan Blanch hemp seed drier arrived on site – foundations laid (pictured lower right) • Seed cleaner ordered 22 22
Slide 23: Strategic Collaborations
STRATEGIC COLLABORATIONS For personal use only • Significant shareholder in Food, • Plant breeding Fibre & Land International • Data sharing • Research & development, information • Sharing of any future plant sharing etc breeder rights (PBR’s) and seed • Plant varieties bank • Leading edge agronomy
Slide 24: Cultivation
CULTIVATION For personal use only “FARMING LOOKS MIGHTY EASY WHEN YOUR PLOW IS A PENCIL, AND YOU’RE A THOUSAND MILES FROM A FIELD” -- US PRESIDENT DWIGHT D. EISENHOWER Planting season commenced The ECS team has the Significant increase in capability to deliver cultivation area grassroots agriculture
Slide 25: Future Opportunities – Full Plant Utilisation & Outdoor Grow of CBD
FUTURE OPPORTUNITIES – Targeting full plant utilisation & outdoor grow of CBD For personal use only * PLEASE NOTE THIS IS FORWARD LOOKING & NOT ALL FACETS ARE CURRENTLY LEGAL IN AUSTRALIA INDUSTRIAL SCALE HEMP CBD CROP HEMP EXTRACTS CO2 EXTRACTION Future opportunities are reliant on industrial hemp
Slide 26: Milestones & Newsflow
MILESTONES & NEWSFLOW For personal use only Potential for strategic acquisitions Reporting on Updates to in the highly sales & Strategic regulatory fragmented hemp distribution partnerships framework industry Planting Medical CBD strategy Harvest of next Sales of season cannabis implementation crop
Slide 27: Investment Summary
INVESTMENT SUMMARY For personal use only Participating in a rapidly Hemp provides clear path to ECS management has Wholesale & retail Distribution agreements growing market, ECS is market – lower regulatory a high degree of product range with Eden & Just Foods becoming one of scrutiny than medicinal
Slide 28: Contacts
For personal use only CONTACTS Alexander Keach Jason Hine Managing Director Chief Operations Officer alex@ecsbotanics.com.au jason@ecsbotanics.com.au +61 419 323 059 +61 419 922 259 28 ecsbotanics.com.au @ecsbotanics
ECS Botanics Holdings — Shareholder Meeting (November 2019) on 6ix