Cann Group Ltd. · ASX:CAN
Cann — Investor Presentation (July 2021)
29 slides from Cann's investor presentation, Jul 26, 2021
Slide 1: Investor Presentation July 2021
CONFIDENTIAL Investor Presentation July 2021 * *Overseas product - not available in Australia
Slide 2: Disclaimer: important notice
CONFIDENTIAL Disclaimer: important notice IMPORTANT: You must read the following before continuing. This notice and disclaimer applies to this investor presentation (Presentation) and you are therefore advised to read this carefully before reading or making any other use of this Presentation or any
Slide 3: Disclaimer: important notice
CONFIDENTIAL Disclaimer: important notice Not investment advice Each recipient of this Presentation should make its own enquiries and investigations regarding all information in this Presentation including but not limited to the assumptions, uncertainties and contingencies which may affect the exist
Slide 4: Disclaimer: important notice
CONFIDENTIAL Disclaimer: important notice Disclaimer Neither PAC Partners Securities Pty Ltd, nor its or Cann’s respective advisers or any of their respective affiliates, related bodies corporate, directors, officers, partners, employees and agents (Relevant Parties), have authorised, permitted or c
Slide 5: Executive summary
CONFIDENTIAL Executive summary • Cann continues to pursue a strategy of consolidating its leadership in the Australian medicinal cannabis industry and leveraging a combination Strategy gaining of technology and scale to be a significant supplier to markets around the world momentum • Executing this
Slide 6: Key investment highlights
CONFIDENTIAL Key investment highlights 1 Proven capability to produce & supply to international cGMP standard Commissioning of large scale, state of the art production and extraction (manufacturing) facility now 2 underway with cultivation activity scheduled to commence end of CY21 – expected to
Slide 7: Achievements / progress over past 12 months
CONFIDENTIAL Achievements / progress over past 12 months July - August 2020 November 2020 January 2021 March 2021 $40.2m capital raising to Mildura licences granted from Strategic investment in German Partners with ONJ Cancer Research support near-term growth the Office of Drug Control iuvo Therapeu
Slide 8: Mildura – Significant progress
Mildura – Significant progress 8
Slide 9: Mildura – Significant progress
Mildura – Significant progress 9
Slide 10: Mildura – Significant progress
Mildura – Significant progress 10
Slide 11: Mildura: On schedule; initial commissioning stages underway
CONFIDENTIAL Mildura: On schedule; initial commissioning stages underway February 2021 June 2021 August 2021* November 2021* Building works recommence and Laboratory Pilot scale extraction equipment Planned TGA analytical lab refit commences commissioning begins installation inspection of Gelpell co
Slide 12: New funding will help deliver substantial cost savings and de-risk and accelerate growth
New funding will help deliver substantial cost savings CONFIDENTIAL and de-risk and accelerate growth Enables expansion to include THC products Provides immediate ability to produce Gelpell Potentially >60% COGS saving per Gelpell pack by Southern facility manufacturing line cGMP packed flower
Slide 13: Satipharm products include cannabis oils and capsules containing small beads
CONFIDENTIAL • Satipharm products include cannabis oils and capsules containing small beads (microspheres) of cannabinoids • Patents granted in US, Canada, Australia, New Zealand and several European countries for Satipharm capsule products • Products distributed through major pharmacy groups and re
Slide 14: Satipharm platform to capitalise on the growing CBD market
CONFIDENTIAL platform to capitalise on the growing CBD market • Satipharm platform provides Cann with a foothold in the high growth retail CBD market • Branded, IP protected product gaining sales traction in the European market, positioned for global distribution Immediate global market opportunity
Slide 15: POS & product placement
CONFIDENTIAL POS & product placement* 15 * United Kingdom POS only – products not available in Australia
Slide 16: Global medicinal cannabis market remains significant opportunity
CONFIDENTIAL Global medicinal cannabis market remains significant opportunity • Satipharm platform underpins Cann’s strategy to become a leading player in the medicinal cannabis industry • Developing registrable, differentiated & IP protected medicinal cannabis products for global distribution Austr
Slide 17: Summary
CONFIDENTIAL Summary 1 Executing on a strategy to build world-class capability; a globally competitive cost position; and a pipeline of proprietary products that access significant and growing markets around the world 2 Investing in an integrated supply chain Expanding market access via supply
Slide 18: Equity raising
CONFIDENTIAL Equity raising 18
Slide 19: Key details of the equity raise
CONFIDENTIAL Key details of the equity raise • $10.0m Placement Equity raising size and • Approximately 36.3m New Shares (equivalent to 13.1% of current issued capital) structure • Subject to shareholder approval, a SPP of $10m with New Shares under the proposed SPP, to be issued at $0.275 per share
Slide 20: Sources and uses of Equity Raising proceeds
Sources and uses of Equity Raising proceeds Sources • $20m capital raising by way of a Placement and SPP Placement $10.0m • Capital expenditure of $6.4m relates to: SPP $10.0m • Extraction capabilities at Mildura Total Sources $20.0m • Installation / construction of Gelpell manufacturing equipment a
Slide 21: Pro forma impact of offer
CONFIDENTIAL Pro forma impact of offer Capital raise provides support for Cann’s momentum in FY22 Equity Impact Summary Pro Forma Balance Sheet Post-equity raise pro forma Statutory Impact of $20m ($m) (unaudited) Pro Forma Pre-raise ordinary shares 277.9m 79.3% Placement & SPP 30-Jun-21 Pre-raise m
Slide 22: Offer timetable
CONFIDENTIAL Offer timetable Indicative timetable Date Trading halt and announcement of Equity Raising Thursday 22 July 2021 Institutional Placement opens Thursday 22 July 2021 Institutional Placement closes Friday 23 July 2021 Trading Halt lifted and announcement to ASX of results of Institutional
Slide 23: Appendix
CONFIDENTIAL CANN GROUP LIMITED Appendix a CAN)
Slide 24: Key risks
CONFIDENTIAL Key risks Topic Summary Cann is in the process of building its third facility (being at an undisclosed location in the vicinity of Mildura) (Mildura Facility), by way of a staged construction and commissioning process, comprising three stages. Once the first stage (1A) is commissioned,
Slide 25: Key risks
CONFIDENTIAL Key risks Topic Summary Cann’s business operates in a highly regulated industry, which brings a number of industry risks common amongst those businesses that operate in this space. These include those described below, and each risk (if not mitigated successfully or appropriately) may ha
Slide 26: Key risks
CONFIDENTIAL Key risks Topic Summary Cann’s ability to continue the production of cannabis and/or the manufacture of products derived from cannabis at the same pace as it is currently producing or at all, and its ability to continue to increase both its production capacity and actual production, may
Slide 27: Key risks
CONFIDENTIAL Key risks Topic Summary Part of the funds that Cann is seeking from investors are to be used by Cann to become more vertically integrated, including by installing and commissioning extraction and Gelpell manufacturing at the Mildura Facility, and Vertical integration building cGMP capab
Slide 28: Key risks
CONFIDENTIAL Key risks General risks Topic Summary There are inherent risks associated with investment in any listed company. The New Shares under the Offer do not guarantee payment of dividends, return on capital or maintenance of capital or value. No Nature of investment assurances can be given th
Slide 29: 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 29