Cann Group Ltd. · ASX:CAN
Cann — Investor Presentation (February 2021)
18 slides from Cann's investor presentation, Feb 22, 2021
Slide 1: Half year results presentation February 2021
*UK range – not available in Australia Half year results presentation February 2021 1
Slide 2: 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 3: Financial results
Financial results 1H 2021 1H 2020 • Cann Group held cash at the Revenue 1.1M 0.6M end of the half year of $27.7M, and no debt utilised R&D Grant Income 3.2M 0 Operating Expenses 8.6M 7.5M • Increased OPEX for H1 FY2021 due to ramp up of EBITDA (4.3M) (7.3M) manufacturing for second half Finance Cost
Slide 4: Summary of operations – H1 FY21
Summary of operations – H1 FY21 • Debt & equity funding secured – $40.2m placement & SPP + $50m debt facility for Mildura project secured with NAB • Strategic alliance with key European commercial partner iuvo Therapeutics • First substantial purchase orders secured • Mildura project remains a prior
Slide 5: Outlook for H2 FY21
Outlook for H2 FY21 • Revenue – revised guidance of $8-10m for the full year • Sales – execution on both new & existing sales opportunities • Mildura – focus on construction & commissioning by end of 2021 • COVID-19 – active management / risk mitigation • Cyber security incident – investigation ongo
Slide 6: 1. Strategic M&A to accelerate revenues & bolster product pipeline
1. Strategic M&A to accelerate revenues & bolster product pipeline 6
Slide 7: Share Sale Agreement executed for Cann to acquire Satipharm
Share Sale Agreement executed for Cann to acquire Satipharm • Satipharm is exclusively licensed to develop and distribute cannabis-based products utilising proprietary Gelpell® micro-encapsulation technology • Gelpell® is supported with data that indicates increased bio-availability and superior sta
Slide 8: Strong strategic rationale, securing both existing and future market opportunities
Strong strategic rationale, securing both existing and future market opportunities Existing and future opportunities in quickly Fast-tracked opportunities in prescription and over developing low dose CBD market the counter medicinal cannabis segment • Includes existing commercial supply agreements w
Slide 9: 2. Update to revenue guidance
2. Update to revenue guidance 9
Slide 10: Updated FY21 revenue forecast – market demand remains strong
Updated FY21 revenue forecast – market demand remains strong • COVID has led to regulatory delays, both in Australia & international markets, that have limited Cann’s ability to ship product to customers • Forecast revised to $8-10m, remains subject to receipt of necessary regulatory approvals • New
Slide 11: 3. Mildura expansion program recommences
3. Mildura expansion program recommences 11
Slide 12: Mildura remains a critical part of Cann’s expansion plans
Mildura remains a critical part of Cann’s expansion plans • Stage 1a proposed to include capacity to produce 12,500kg of dry flower per annum • Expected timeline: - Construction restarted February 2021 - Planned commissioning by end of 2021 - First material planned to be processed & ready for releas
Slide 13: Executive summary
Executive summary • Cann has agreed terms for the acquisition of Satipharm, a European based business with proprietary cannabinoid delivery technology • The acquisition secures proprietary micro-encapsulation delivery technology, enabling Cann to immediately access UK and some European low dose CBD
Slide 14: Q&A
Q&A *UK range – not available in Australia 14
Slide 15: Corporate structure (at 19/2/21)
Corporate structure (at 19/2/21) Share price $0.695 ASX code CAN Market capitalisation $190.2m Shares on issue 274m Options 21.1m Cash at bank (31/12/20) $27.74m 15
Slide 16: Industry status
Industry status • 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 per annum of dry flower production within five years - Regulatory reform, including CBD becoming available over-the-count
Slide 17: Multiple pillars of growth
Multiple pillars of growth Supply/offtake agreements Strategic M&A Product pipeline Mildura expansion supporting revenue growth • Cann has multiple supply/offtake • Cann Group continues to review • Cann is developing a range of • Cann remains committed to Mildura agreements in place with both strate
Slide 18: Contacts
CONTACTS: Clive Fanning Head of Investor Relations Cann Group Limited +61 (0) 3 9095 7088 contact@canngrouplimited.com Peter Crock CEO Cann Group Limited +61 (0) 3 9095 7088 contact@canngrouplimited.com 18