Cann Group Ltd. · ASX:CAN
Cann — Investor Presentation (June 2023)
31 slides from Cann's investor presentation, Jun 15, 2023
Slide 1: Medicinal cannabis products to improve quality of life
Medicinal cannabis products to improve quality of life June 2023
Slide 2: Disclaimer | important notice
Disclaimer | important notice 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 p
Slide 3: Disclaimer | important notice
Disclaimer | important notice This presentation (Presentation) has been prepared by Cann Group Limited (ABN 25 603 949 739) (Cann). Investment risk An investment in Cann shares is subject to known and unknown risks, some of which are beyond the control of Cann and its directors. Cann does not guaran
Slide 4: Who we are
Who we are Vision to be Australia’s largest & most innovative medicinal cannabis cultivator and supplier to a rapidly growing market State-of-the-art Experienced New leadership Strong & building Fully licensed and Heritage and local facility, Mildura, cultivation & in place customer base TGA approve
Slide 5: Strong board with global, leading agri, biotech, pharmaceutical and medtech experience
Strong board with global, leading agri, biotech, pharmaceutical and medtech experience Mr Allan McCallum, AO Mr Doug Rathbone, AM Ms Jenni Pilcher Mr Robert Barnes Dr Julian Chick Chairman Non-executive Director Non-executive Director Non-executive Director Non-executive Director Agribusiness, healt
Slide 6: Strong and experienced management
Strong and experienced management • Commenced January 16, 2023 • 30 years of experience in biopharmaceutical commercial leadership Mr Peter Koetsier roles, including General Management and Global Marketing Chief Executive Officer • Previous role as Head of Asia Pacific & ANZ for French biopharmaceut
Slide 7: Strong and experienced management
Strong and experienced management Ms Deborah Ambrosini Ms Liz Pepper Mr Russell McGifford Mr Sam Chester Chief Financial Officer General Manager – Operations General Manager – Mildura Head of Business Development & Company Secretary Cashflow management, General Management, operational Manufacturing
Slide 8: Mildura facility secures strong competitive advantage
Mildura facility secures strong competitive advantage Cann Group’s Mildura facility is the most technologically advanced indoor, full GMP medicinal cannabis cultivation & manufacturing facility in the southern hemisphere A microclimate- Automated plant In-house analytical GMP licence for Satipharm®
Slide 9: From Capex to Opex
From Capex to Opex Seeking to increase production to reach 12.5 tonnes on an annualised basis 2017 – 2022 2023 and beyond START UP AND BUILD SCALE AND SELL Agri & engineering innovation Commercial leadership • Establish core build of Mildura facility • Operationalise Mildura facility • Ensure agricu
Slide 10: Cann is immediately scaling production at Mildura facility
Cann is immediately scaling production at Mildura facility Expected to deliver scale benefits, substantial cost savings and improved supply chain security PLANNED DRY BIOMASS (TONNES) PRODUCED FOR SALE BY FINANCIAL YEAR* 14 12.5 TONNES 12 6.25 9 TONNES 10 5 8 6 6 3 TONNES 4 4 1 TONNE 1.8 2 1.3 0 0.3
Slide 11: Revenue already rapidly growing
Revenue already rapidly growing REVENUE GROWTH TO MARCH 2023 $12,000 + APR-JUN ‘23 sales pending $10,000 $8,000 • Dried flower sales have increased 267% in the 000's current financial year $6,000 • Oil sales have remained $4,000 strong with a 76% increase from the previous financial year $2,000 $0 F
Slide 12: Australian medicinal cannabis market is growing rapidly
Australian medicinal cannabis market is growing rapidly and reached an estimated $245 million in 2022 ESTIMATED AUSTRALIAN MEDICINAL CANNABIS MARKET A$ $1,800,000,000 Legislative change could $1,600,000,000 Growth faster than see acceleration 2022 (60%/HY) $1,400,000,000 $1,200,000,000 $1,000,000,00
Slide 13: Quality local supply opportunity driven by increasing demand
Quality local supply opportunity driven by increasing demand, lack of consistent quality and increased import regulations Users demand Quality when inhaling Only ~20% of brands in Amendments in July will make 2/3 of all units sold are for inhalable flower Australia are locally grown overseas supply
Slide 14: Cann is ready to meet local market demand and quality
Cann is ready to meet local market demand and quality Market Challenges Cann Solutions High use of inhaled flower means quality and Proven controlled environment growing of appearance must be very high excellent current and future genetics Local production not meeting current growing Ready to scale
Slide 15: Cann has short and long-term opportunities for revenue growth
Cann has short and long-term opportunities for revenue growth Drivers of revenue Increase customer Future export Increase total Increase inhaled flower Further development GMP contract number and opportunities, production volume yield of Satipharm® platform packaging penetration including Satipharm®
Slide 16: Optimising business operations
Optimising business operations Cost Reduction Strategy 1 Cann Group has executed on a number of key initiatives to reduce operational expenditure and will Realise economies continue to deliver on a cost reduction strategy to of scale move business to a more sustainable cost base 2 Cost Initiatives E
Slide 17: Satipharm platform provides significant incremental potential
Satipharm® platform provides significant incremental potential Registerable, differentiated & patent protected medicinal cannabis product • Pharmaceutical presentation • Active substances embedded in microsphere technology • Higher Bioavailability1 • Opportunity to build pharmaceutical brand • Poten
Slide 18: Export esp. Germany adds incremental opportunity
Export esp. Germany adds incremental opportunity • Cann flower and oil has already successfully been exported to Europe • The Medical Cannabis market in Europe estimated at USD 22 billion in 2024 • Germany is the largest medicinal cannabis market in Europe having legalised medical cannabis in 2017 o
Slide 19: Five years of strong R&D partnerships & our R&D hub in Bundoora, Victoria
Five years of strong R&D partnerships & our R&D hub in Bundoora, Victoria • Genotyping, phenotyping, genetic diversity, predictive breeding • Tissue culture, drying and extraction capabilities 19 Cann Group Limited | Capital Raising Document | June 2023
Slide 20: Key takeaways
Key takeaways Cann: Medicinal cannabis products to improve quality of life Demand for Expected COGS Cann Group Medicinal cannabis Cann has the ability Strong board and Australian-grown, reduction with continuing to take market is rapidly to immediately scale management with GMP, quality product incr
Slide 21: Equity raising
Equity raising CANN GROUP LIMITED
Slide 22: Offer summary
Offer summary Cann Group is conducting a one (1) for four (4) non-renounceable rights issue with a free attaching option exercisable at Offer structure $0.22 per share for every 2 shares purchased ("Offer") to raise up to $11.7m before associated costs. and size Approximately 97 million New Shares a
Slide 23: Use of funds
Use of funds Use of funds AUD millions Enhanced automation for GMP manufacturing facilities 3.5 Accelerated staffing levels 2.8 Laboratory and Quality Control enhancements 1.3 Environmental feasibility projects including solar and waste 0.3 Research and Development – THC containing Capsules 2.3 Cost
Slide 24: Offer timetable
Offer timetable Date Event Thursday, 15 June 2023 Entitlement offer is announced Monday, 19 June 2023 Ex date Tuesday, 20 June 2023 (7:00pm AEST) Record date Prospectus (and personalised entitlement form) dispatched to Eligible Shareholders and Entitlement Friday, 23 June 2023 Offer opens. Tuesday,
Slide 25: Detail of risk factors
Detail of risk factors The New Securities are considered highly speculative and carry no guarantee with respect to the payment of dividends or returns of capital. An investment in the Company is not risk free and the Directors strongly recommend that potential investors consult their professional ad
Slide 26: Detail of risk factors (continued)
Detail of risk factors (continued) Risks specific to the Company continued (d) Import risks Some of CAN’s operations depends on its ability to import cannabis products, particularly flower, from foreign jurisdictions. If overseas suppliers are unable to meet the requirements to enable CAN to import
Slide 27: Detail of risk factors (continued)
Detail of risk factors (continued) Risks specific to the Company continued (i) Compliance with licence conditions A licence to cultivate, produce and/or manufacture under the Narcotic Drugs Act 1967 (Cth) is subject to a number of conditions, which if not maintained may result in a suspension or rev
Slide 28: Detail of risk factors (continued)
Detail of risk factors (continued) 2. Industry risks (a) General regulatory risk Companies which operate in the medicinal cannabis industry are subject to a highly regulated environment and numerous laws and regulations. Changes to such laws, regulations and directives may cause adverse effects on a
Slide 29: Detail of risk factors (continued)
Detail of risk factors (continued) General Risks continued (f) Privacy A company may collect or be provided with information which is considered personal or sensitive, and the company is responsible for protecting that information from privacy breaches and mandatory reporting obligations under the N
Slide 30: GROUP'LIMITED
GROUP'LIMITED CANN
Slide 31: Contact
Contact Peter Koetsier Chief Executive Officer peter.koetsier@canngrouplimited.com Deborah Ambrosini Chief Financial Officer deborah.ambrosini@canngrouplimited.com canngrouplimited.com | +61 3 9095 7188 Cann Group Limited Quality, Reliability, Innovation