Ecs Botanics Holdings Ltd · ASX:ECS
Ecs Botanics — Investor Presentation (February 2024)
27 slides from Ecs Botanics's investor presentation, Feb 23, 2024
Slide 1: ECS Botanics Holdings Ltd Equity Raising Presentation
For personal use only E Q U I T Y R A I S I N G P R E S E N T A T I O N ECS Botanics Holdings Ltd A large-scale organic cultivator and manufacturer of GMP medicinal cannabis products ASX : ECS FEBRUARY 2024
Slide 2: Disclaimer
Disclaimer For personal use only E Q U I T Y This presentation has been prepared by ECS Botanics recommendation in relation to the purchase or sales of contractors or agents about the accuracy, completeness Holdings Limited (“Company”). shares or other securities in any jurisdiction. or fairness of
Slide 3: Table of Contents
E C S B O T A N I C S H O L D I N G S L T D Table of Contents For personal use only 1 Investment Highlights & Growth Strategy 2 Equity Raising Overview 3 Appendix
Slide 4: Executive Summary
Executive Summary For personal use only • ECS Botanics Holdings Ltd (“ECS” or the “Company”) is an Australian medicinal E Q U I T Y cannabis cultivator and manufacturer located in Northwest Victoria. ECS produces quality medicine in a sustainable way, adopting regenerative and Company overview organ
Slide 5: Investment Highlights
Investment Highlights For personal use only • The Cannabis market globally is still in an emerging phase with strong growth potential. • Australian Medical Cannabis market is anticipated to reach A$696 million in Growth opportunity in a 2024 with an annual growth of 20.4%. large addressable • Austra
Slide 6: Growth Strategy: Building on Strong Momentum
Scale Revenue Improve Productivity • Contracted ~ A$60m in 18 months, • Heating and Lighting for year-round with further expansion required to growth meet market demand • Recent successful R&D project Growth Strategy • Potential to increase production capability to current licensed leads to investme
Slide 7: Strategic Roadmap
Strategic Roadmap Delivering on a Clear Strategy to Drive Value. For personal use only E Q U I T Y 2018-2020 2021-2023 2024-2026 2027-2029 Developing Capability Focused, Expanding Drive Profitability, Top 2 in Medicinal R A I S I N G and Confidence and Growing Revenue Innovation and Expansion Cannab
Slide 8: ECS Model: Profitable Operations
ECS Model Profitable Operations. Key FY23 Comparative Metrics For personal use only E Q U I T Y Ideal Location Leveraging the sun and soil reducing Competitors Financial Performance (in A$ million) energy and fertiliser costs R A I S I N G $19.6 Asset Lite $15.4 $13.8 $15.0 High return on capital em
Slide 9: Strong Foundations With Significant Potential for Expansion
Strong Foundations With Significant Potential for Expansion. For personal use only E Q U I T Y ECS is focused on expanding its production capacity to 13 tonnes, enabling ECS to innovate and offer unique varieties to new and existing offtake partners, maintaining a competitive advantage as a market l
Slide 10: Resilient B2B Customer Base Reduces Risk
Resilient B2B Customer Base Expanding European ECS footprint presents access to 16b AUD market1 Reduces Risk. For personal use only E Q U I T Y ECS supplies some of Australia’s, New Zealand’s and UK’s largest cannabis brands R A I S I N G New contracts commencing in early 2024: Koyi (Poland) Agree
Slide 11: The ECS Competitive Advantage
The ECS Competitive Advantage. For personal use only E Q U I T Y In House Genetics Organic Certification VESIsorb® Dedicated Breeding facility focused NASAA Organic Scientific evaluation of VESIsorb® as a on strain development best suited to Certification Number 30046 delivery system confirms the: R
Slide 12: Why Now? The Timing is Right
Why Now? The Timing is Right. For personal use only E Q U I T Y ECS has a validated, proven and profitable model but cannot meet customer demand for its products Export regulatory compliance has been achieved, opening R A I S I N G up new large European markets Australian customers are expanding and
Slide 13: Table of Contents
E C S B O T A N I C S H O L D I N G S L T D Table of Contents For personal use only 1 Investment Highlights & Growth Strategy 2 Equity Raising Overview 3 Appendix
Slide 14: Equity Raising Overview
Equity Raising Overview For personal use only E Q U I T Y Equity raising of approximately A$4.0 million consisting of: Offer size and structure • An Institutional Placement (“Placement”) to raise approximately A$4.0 million to institutional and sophisticated investors under the Company’s ASX Listing
Slide 15: Sources & Uses of Funds
Sources & Uses of Funds Sources of Funds (A$m) % of Total Organic Growth For personal use only E Q U I T Y Proceeds from Placement $4.0m 80.0% • Production Expansion Funds from existing cash and debt facilities $1.0m 20.0% • Procure and construct up to 9 new PCE’s to increase premium Total sources1
Slide 16: Offer Timetable
Offer Timetable For personal use only E Q U I T Y Event Date (Sydney, Australia time) Trading halt Tuesday, 20 February 2024 Placement results announced Thursday, 22 February 2024 Trading halt lifted R A I S I N G Trade Date of New Shares Friday, 23 February 2024 Settlement of New Shares under Place
Slide 17: Pro Forma Capital Structure
Pro Forma Capital Structure For personal use only E Q U I T Y No. of securities Securities proposed No. of securities % Issued share capital % (pre-equity raising) to be issued in Offer (post-equity raising) (on an undiluted basis) Fully paid ordinary shares 1,106,730,667 96.4% 181,818,900 1,288,549
Slide 18: Table of Contents
E C S B O T A N I C S H O L D I N G S L T D Table of Contents For personal use only 1 Investment Highlights & Growth Strategy 2 Equity Raising Overview 3 Appendix
Slide 19: Financials and Key Metrics
Financials And Key Metrics. For personal use only E Q U I T Y FY24 Quarterly Financial Metrics Quarterly revenue and cash receipts (A$m) Q1 Q2 YTD 8.0 22.5 Financial Metrics (A$m) FY24 FY24 FY24 Revenue & Cash receipts (A$m) 7.0 6.5 20.0 Revenue 4.1 7.3 11.4 LTM Revenue (A$m) 6.0 5.2 17.5 R A I S I
Slide 20: Our Customer Brands
Our Customer Brands Avani Own Brand B2B. B2C. For personal use only E Q U I T Y R A I S I N G P R E S E N T A T I O N incomplete Launching in 2024 Samples of white label brands 20
Slide 21: Authorised Prescriber data TGA report
Authorised Prescriber data THC dominant TGA report. 31% CBD dominant 46% For personal use only E Q U I T Y Balanced THC/CBD 23% R A I S I N G Dosage Form prescribed by Authorised Prescriber Patient Approvals through Authorised Prescriber 18000 16000 P R E S E N T A T I O N 16000 14000 14000 12000 12
Slide 22: Medical Cannabis: A Large and Growing Market
Medical Cannabis A Large and Growing Market. For personal use only E Q U I T Y Approximately 2.5% of Australians have already accessed medicinal cannabis R A I S I N G Canada1 Australia2 At $100 per capita P R E S E N T A T I O N Australia would be $20b 38m $526 Mature $594m 26m $22 Establishing Leg
Slide 23: Doctors Looking For Alternatives
Doctors Looking For Alternatives. “ One of the world’s worst public health crises ” For personal use only E Q U I T Y Opioids and Benzodiazepines not only cause deaths but also destroy lives. John Ryan Pennington 6 Australians lose their life to overdose everyday Institute CEO THC and CBD is a safer
Slide 24: ESG Credentials
ESG Credentials. For personal use only E Q U I T Y Regenerative, organic Location reduces farming means lower energy required for R A I S I N G fertilizer and soil Cannabis production amendments as soil due to high daylight regenerates and intervals. captures carbon. P R E S E N T A T I O N Strong C
Slide 25: Key Risks
Key Risks ECS Botanics is licenced by the Therapeutic Goods Administration, the Federal Office of Drug Control and the For personal use only E Q U I T Y Regulatory Risk Victorian Department of Health and Human Services. Failure to comply with our licence terms and conditions could result in a fine,
Slide 26: International Offer Restrictions
International Offer Restrictions For personal use only E Q U I T Y Applicants outside Australia consents are required or whether any other formalities b) meets the investment activity criteria specified in need to be considered and followed. clause 38 of Schedule 1 of the FMC Act; This document does
Slide 27: Contact Us
E C S B O T A N I C S H O L D I N G S L T D Contact Us For personal use only Call us today at Email us at 1300 833 988 info@ecs-botanics.com VISIT US E C S - B O T A N I C S . C O M ECS BOTANICS HOLDINGS LTD
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