Cann Group Ltd. · ASX:CAN
Cann — Investor Presentation (October 2024)
23 slides from Cann's investor presentation, Oct 16, 2024
Slide 1: Investor Update Webinar Presentation
ASX ANNOUNCEMENT 16 October 2024 Investor Update Webinar Presentation 16 October 2024 – Cann Group Limited (ASX: CAN) (Cann or the Company) is pleased to provide an investor presentation providing investors with information on the Company’s strategic growth plans and investment opportunity and provi
Slide 2: Cann Group Limited Investor Webinar
CANN GROUP LIMITED ASX:CAN Investor Webinar 1 7 O C T O B E R 2 0 2 4 – 11 : 0 0 a m AT T H E F O R E F R O N T O F M E D I C I N A L C A N N A B I S I N A U S T R A L I A S I N C E 2 0 1 7
Slide 3: 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 4: Presenting today
Presenting today Jenni Pilcher Carlyn Villani CEO and Managing Director Head of Commercial
Slide 5: Cann Group
Cann Group is proud to be the first Australian company to have been issued with CANN GROUP a Cannabis Research Licence and Cannabis Cultivation Licence to grow and Est. 2014 in Australia produce cannabis for medicinal purposes by the Australian Government’s Office of ASX:CAN Drug Control in February
Slide 6: Mildura facility secures strong competitive advantage
Mildura facility secures strong competitive advantage Cann Group’s Mildura facility is arguably the most technologically advanced indoor, full GMP medicinal cannabis cultivation & manufacturing facility in the southern hemisphere • A microclimate-controlled glasshouse with manufacturing and warehous
Slide 7: Breeding program
Breeding program First-round of seven shortlisted Cann Group breeding candidates developed in collaboration with Ag-VIC as part of the “CRADA” program are currently in the final stages of commercial assessment at Cann’s Mildura Facility. A selection of these shortlisted candidates became available f
Slide 8: Imported strains
Imported strains Cann’s breeding program sits The first import of 17 new strain lots The second import of 20 new strain alongside an aggressive seed has now all completed phenotyping lots has been germinated at Cann’s importation and phenotyping and awaiting final chemotyping Northern Facility and i
Slide 9: Botanitech (own-brand) heads up a diverse product range
Botanitech (own-brand) heads up a diverse product range Local manufacture and Botanitech dried flower, oil Bulk dried flower Satipharm – CBD, THC & supply of dried flower & and vapes (sold to manufacturers & balanced* capsules featuring oils (white label) compounders) patented Gelpell technology Mul
Slide 10: Contract services offered at cGMP facility
Contract services offered at cGMP facility Contract growing Contract packing services Contract laboratory services • ODC permit for genetic stock, cultivation and • cGMP manufacturing facility • Onsite cGMP (TGA) certified laboratory production of medicinal cannabis • Licensed to produce Active Phar
Slide 11: Market overview
Market overview • 2-2.4 million Australians use more than 650 tonnes of cannabis each year both legally and illegally • Legal Medicinal Cannabis (MC) market is now exceeding 100 tonnes per year • Current MC value is estimated to be between $500-$700 million at a patient level, growing around 25% YoY
Slide 12: Growth drivers
Growth drivers Improved Increasing perception Regulation number of Export & locally & law delivery markets grown changes forms quality • Improving perception of • TGA regulation changes • Alternative forms to E.g. role of MC for treating a could restrict cheaper inhalable flower and oils – • UK vari
Slide 13: Cann poised to seize growing market opportunity
Cann poised to seize growing market opportunity Established Expertise GMP facility customer base & Cutting edge R&D program commercial pathways • Strong knowledge of, and • Full cultivation and GMP • Established pathways to market • Long-term affiliation with reputation with, regulatory manufacturin
Slide 14: FY2024 Highlights
FY2024 HIGHLIGHTS REVENUE PRODUCTION $15.73M 4.4 TONNES 11.6% YOY 100% YOY EBITDA LOSS OPERATING EXPENSE RATIO ($13.2M) 128% 24.1% IMPROVEMENT YOY 10% POINTS IMPROVEMENT YOY
Slide 15: FY2025 growth plan to deliver positive EBITDA is underway
FY2025 growth plan to deliver positive EBITDA is underway Maximise margins with Focus on quality Move from 3 cultivars to Enhance non-inhalable Expand Botanitech range efficiencies & cost inhalable flower to meet a 10-12 cultivar portfolio flower product range control market expectations Cultivation
Slide 16: Path to profitability & beyond
Path to profitability & beyond Increasing production to 10 tonnes per annum by FY2027 will ensure strong revenue growth and profitability at an average selling price of $3.45 per gram (FY2024). Facility expansion into remaining zones will further accelerate revenue growth. DRIED FLOWER WEIGHT (KGS)
Slide 17: Outlook
Outlook Increased revenue opportunity medium term via expansion into Mildura facility additional 8 zones Progressing the scale and Extending portfolio range to Continuing our path towards quality of production. Aim to meet market demands, via our EBITDA profitability meet 9-10 tonne of production ex
Slide 18: Investment highlights
Investment highlights Research & development Mildura GMP facility Board & management Local genetic breeding, and seed Cann’s GMP indoor facility has unique Management with multi-industry importation and phenotyping, year-round, multiple production run, & experience and results driven programs in our
Slide 19: Non-renounceable rights issue
NON-RENOUNCEABLE RIGHTS ISSUE C L O S I N G D AT E : 2 4 O C TO B E R 2 0 2 4 ( 5 : 0 0 P M ) Offer Price 4 cents per share Entitlement 1 share for every 3 shares held Options 1 option for every 3 shares subscribed for Raise (max) $6.25 million (before costs) 18
Slide 20: Use of funds (if offer is fully subscribed)
Use of funds (if offer is fully subscribed) Use of funds AUD millions Importation program for Botanitech curated range 1.00 Manufacturing costs for Botanitech oil range 0.75 Cultivation costs for dried flower 1.56 Repayment of partial principal & interest on loans 1.97 Costs (approximate) of the off
Slide 21: Offer timetable
Offer timetable Date Event Monday, 7 October 2024 Entitlement offer is announced Wednesday, 9 October 2024 Ex date Thursday, 10 October 2024 Record date Personalised entitlement form dispatched to Eligible Shareholders and Entitlement Tuesday, 15 October 2024 Offer opens Thursday, 24 October 2024 En
Slide 22: Offer summary
Offer summary Cann Group is conducting a one (1) for three (3) non-renounceable rights issue with one (1) free attaching Offer structure and size option for every three (3) shares purchased ("Offer") to raise up to $6.25m before associated costs. Offer price $0.04 per share Option exercise price $0.
Slide 23: Thank you
THANK YOU QUESTIONS? Jenni Pilcher CEO & Managing Director jenni.pilcher@canngrouplimited.com Carlyn Villani Head of Commercial carlyn.villani@canngrouplimited.com