Little Green Pharma Ltd. · ASX:LGP
Little Green Pharma — Investor Presentation (June 2021)
28 slides from Little Green Pharma's investor presentation, Jun 22, 2021
Slide 1: Denmark Acquisition and Capital Raise
Denmark Acquisition and Capital Raise 22 JUNE 2021
Slide 2: Disclaimer
Disclaimer Disclaimer Forward looking statements Certain information in this presentation refers to the intentions of LGP, but these are not intended to be This presentation contains summary information about Little Green Pharma Ltd (ACN 615 586 forecasts, forward looking statements or statements ab
Slide 3: Executive Summary
Executive Summary Little Green Pharma Ltd (“LGP”) has acquired 100% of the issued shares of Canopy Growth Denmark A.p.S Transaction (“LGP Denmark”) which owns a medicinal cannabis production facility in Denmark (EU) (“Denmark Facility”) summary Acquisition price C$20 million (~A$21.4m1) World class
Slide 4: Executive Summary (cont’d)
Executive Summary (cont’d) LGP will optimise production between new Denmark Facility and existing West Australian Facility Integration success Primary focus on ramping up sales from Denmark Facility LGP has acquired LGP Denmark (including the Denmark Facility) for C$20 million (A$21.4 million1) paya
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Slide 6: Our Business Model Captures Value
Our Business Model Captures Value LGP operates across the entire medicinal cannabis supply chain Cultivation & Manufacturing Product Patient Access Sales & Production Innovation & Education Distribution EU GACP cultivation facility in EU-recognised GMP R&D pipeline includes three Sponsor of QUEST In
Slide 7: Growth Strategy
Growth Strategy Little Green Pharma has a track record of sales growth with a clear pathway to increasing margins and driving significant revenue growth in Australia and offshore markets 1 Patient 2 Clear pathway to 3 Product and drug acquisition in international sales delivery Australia innovations
Slide 8: Acquisition
Acquisition
Slide 9: Denmark Facility - Overview
Denmark Facility - Overview • World class cannabis cultivation and manufacturing facility in Denmark – Meets GACP cultivation standards and holds EU-recognised GMP manufacturing licence – Previous exports to Australia, Germany and Czech Republic Denmark Facility • Capable of producing >20 tonnes p.a
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Slide 11: Acquisition Strategic Rationale
Acquisition Strategic Rationale LGP was already planning to expand its cultivation and manufacturing capacity to meet growing market Accelerates planned demand – decision point was build vs buy capacity expansion Decision taken to buy and market • Significantly accelerates planned capacity expansion
Slide 12: Acquisition Strategic Rationale (cont’d)
Acquisition Strategic Rationale (cont’d) Efficiency gains through greater scale of operations Denmark Facility expected to produce GMP medicinal cannabis flower at superior economics (cost per gram) Increased to the West Australian Facility economies of scale Further cost efficiencies driven by manu
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Slide 14: Capacity Expansion Strategy
Capacity Expansion Strategy LGP’s West Australian Facility near 100% capacity for finished flower as result of orders received to date • Expansion of West Australian Facility to 6 tonnes p.a. expected to require $8 million investment and require one to two years to build out (construction and permit
Slide 15: Post Acquisition Integration
Post Acquisition Integration Fundamental post integration elements for synergy and value SALES & OPERATIONS MARKETING Ramp up operations from 25% Develop EU sales and to 50% capacity using existing marketing capability resources Integrate LGP brands into Target cash generation - sales facility ramp-
Slide 16: Post Acquisition Integration (cont’d)
Post Acquisition Integration (cont’d) How we will increase sales Why we are confident: • Previous owners were only selling within SALES & corporate group MARKETING Develop Asset EU • Previous owners had multiple external inbound sales and marketing sales enquiries capability • Management were pursui
Slide 17: Post Acquisition Integration (cont’d)
Post Acquisition Integration (cont’d) Phased and capital conservative approach to facility capex Phased approach to capex investment and facility upgrade: SALESOPERATIONS & 1. Upgrade production capacity from 25% to 50%, requiring automated flower packaging MARKETING Develop EU sales equipment ($2m
Slide 18: Clear Pathway to International Sales
Clear Pathway to International Sales Medezin Sp. z o.o., a subsidiary of Pelion SA, appointed as exclusive distributor in Poland - Pelion SA is the largest operator in the Polish and Lithuanian healthcare sector Poland Medezin targets to sell Products equivalent to ≥20% of the market for cannabi
Slide 19: Capital Raising
Capital Raising
Slide 20: Capital Raising Overview
Capital Raising Overview Institutional LGP has raised A$27.2 million by issuing approximately 45.3 million new fully paid ordinary shares in the placement Company (“New Shares”) under the Placement Offer price of $0.60 per New Share under the Placement: • 7.7% discount to last close of $0.65 on 18 J
Slide 21: Acquisition Terms
Acquisition Terms LGP has acquired LGP Denmark (including the Denmark Facility) for C$20 million (A$21.4 million1) payable in cash as follows: • C$10 million (A$10.7 million1) Initial Consideration paid on Completion; and Acquisition consideration • C$10 million (A$10.7 million1) payable in 12 month
Slide 22: Corporate Overview (pre-Placement)
Corporate Overview (pre-Placement) Capital Structure Register Breakdown4 Current Share Price1 $0.65 Institutional, 22% Shares Outstanding2,3 187,274,615 Options and Performance Rights on Issue 12,008,746 Market Capitalisation (undiluted)1,3 ~$121.7 million Others, 62% Board, 15% Cash Reserves (31 Ma
Slide 23: Key Risks
Key Risks • LGP Denmark is unable to either meaningfully reduce current working capital requirements or place adequate sales into global markets resulting in additional capital requirements • Denmark Facility optimisation capex projects are significantly delayed or do not result in additional capaci
Slide 24: Market Opportunity
Market Opportunity
Slide 25: Total Addressable Market
Total Addressable Market LGP’s total addressable market is estimated at ~$24bn1 at maturity • The global medicinal cannabis is experiencing dramatic growth and LGP is one of a few companies world-wide with the capability to deliver into these new and emerging markets • The following countries have b
Slide 26: Track Record of Patient Access
Track Record of Patient Access Strong growth in sales and patients using LGP products in Australia TOTAL REVENUE AUSTRALIAN REVENUE $2.46m $2.45m 31 DEC 20 $1.81m $2.3m 31 MAR 21 31 DEC 20 31 MAR 21 UNITS SOLD TOTAL PATIENTS CASH AT BANK AUSTRALIA 11,900 $28.5m 54,700 9,500 37,700 $4.4m 31 DEC 20 31
Slide 27: Key Points
Key Points Accelerated growth strategy Greater production capacity Enables faster market penetration Close to our markets Efficient use of capital 27
Slide 28: LGP Head Office
LGP Head Office PO Box 690, West Perth Western AUSTRALIA 6872 1300 703 999 | +61 8 6280 0050 info@littlegreenpharma.com.au
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