Cann Group Ltd. · ASX:CAN
Cann — FY2020 Earnings Presentation
21 slides from Cann's earnings presentation, Aug 27, 2020
Slide 1: FY20 Results Investor Presentation and Webinar Details
ASX ANNOUNCEMENT 27 August 2020 FY20 RESULTS INVESTOR PRESENTATION AND WEBINAR DETAILS 27 August 2020 – Cann Group Limited (ASX: CAN) (Cann of the Company) is pleased to announce it will hold an investor webinar on Thursday, 27 August 2020 at 1:00pm AEST with CEO Peter Crock and COO Shane Duncan to
Slide 2: Full year results presentation
Full year results presentation August 2020 Peter Crock – CEO Shane Duncan – COO 1
Slide 3: Peter Crock
Peter Crock CEO 2
Slide 4: Disclaimer
Disclaimer This investor presentation (Presentation) has been prepared by Cann Group Limited (ABN 25 603 Future performance 949 739) (Cann) and comprises written material regarding Cann. This Presentation contains certain ‘forward-looking statements’, including but not limited to projections, guidan
Slide 5: Disclaimer
Disclaimer Affiliates All rights reserved None of Cann’s respective advisers or any of their respective affiliates, related bodies corporate, directors, Several photographs contained in this Presentation are the property of Cann and are protected officers, partners, employees and agents, have author
Slide 6: Financial results
Financial results Revenue 647,222 2,347,668 Other income 1,215,735 1,904,975 Administration, corporate and manufacturing costs (16,007,484) (13,466,524) Research and development costs (1,283,128) (1,047,608) Fair value adjustment of biological assets (640,701) (465,919) Loss before transaction costs
Slide 7: Strategy
Strategy Cann is developing a robust, vertically integrated business-to-business (B2B) model which is focused on meeting Australian demand and building export opportunities as overseas markets continue to develop. Four key growth pillars to the Cann Group strategy: • Supply agreements to support rev
Slide 8: A vertically integrated medicinal cannabis producer, supplying markets in Australia & overseas
A vertically integrated medicinal cannabis producer, supplying markets in Australia & overseas Production Manufacturing Distribution Existing facilities currently provide Arrangements with IDT Australia Ltd to manufacture Active Pharmaceutical National distribution agreement with 1,200kg p.a. in cap
Slide 9: Cultivation
Cultivation • Existing Southern & Northern facilities in Melbourne continue to operate at capacity (1,200kg p.a) • More than 70 harvests successfully completed • Cann Group continues to analyse potential strains for cultivation at scale • Strong experience & IP position • Mildura expansion to provid
Slide 10: Industry status
Industry status • Australian momentum continues to be positive - Consistent growth in SAS approvals – now more than 5,000 per month - Level of demand expected to require 40,000kg of dry flower production within five years - Proposed regulatory reform could improve patient access • Global market expa
Slide 11: Strategic partnerships & research
Strategic partnerships & research • Accelerated breeding / genomics research capability • MOU with Agriculture Victoria for additional medicinal cannabis research across cultivation, extraction, strain genome analysis & identification • Three-year R&D collaboration with CSIRO to investigate opportun
Slide 12: Shane Duncan
Shane Duncan COO 11
Slide 13: Manufacturing
Manufacturing • Cann’s manufacturing agreement with IDT Australia facilitates finished product formulations under GMP conditions • Large scale production runs of Australian grown & manufactured value-added GMP products now completed 12
Slide 14: Product development
Product development • Value added products / formulations include: - Finished oil products - Bulk extract (API) - Finished dose dried flower - Bulk dried flower • Cann’s advanced genetics program is aimed at delivering multiple cannabis strains to address specific conditions 13
Slide 15: Commercial
Commercial • Cann continues to execute on a B2B strategy • Cann has multiple supply/offtake agreements in place with both Australian domestic and overseas based medicinal cannabis companies: - Seven executed contracts - Further contracts under negotiation • Based on customer forecasts, Cann is proje
Slide 16: Peter Crock
Peter Crock CEO 15
Slide 17: Successful capital raise
Successful capital raise • Institutional placement and SPP strongly supported Capital raise Funds raised Uses component Working capital $20.1m Institutional Placement $14,300,000* Product development $0.9m R&D $1.3m Shape Purchase Plan $25,900,000 Market development $0.6m Total (inclusive of costs)
Slide 18: Mildura expansion plans
Mildura expansion plans • Cann remains committed to Mildura expansion plans • Mildura facility will provide substantial technology & efficiency gains • Expansion provides scale & cost base to enable Cann to be globally competitive • Substantial uplift in margins as Cann transitions from using import
Slide 19: Outlook
Outlook • Forecasting FY21 revenues of $15 million • Continued focus on expansion of supply agreements with B2B customers • Expect to secure external funding options for Mildura expansion • Strong cash position of ~$40m 18
Slide 20: Questions
Questions 19
Slide 21: Contacts
CONTACTS: Clive Fanning Head of Investor Relations Cann Group Limited +61 (0)498 000 762 contact@canngrouplimited.com Matthew Wright Investor / Media Relations NWR Communications +61 (0)451 896 420 matt@nwrcommunications.com.au 20