Auxly Cannabis Group Inc. · TSX:XLY
Auxly Cannabis — Investor Presentation (October 2020)
25 slides from Auxly Cannabis's investor presentation, October 2020
Slide 1: Investor Presentation October 2020
INVESTOR PRESENTATION October 2020
Slide 2: Legal Disclaimer
Legal Disclaimer Thereafter, all references should be to “forward- looking statements. Forward-looking information The information provided herein is not intended to looking information”. This corporate document may use contained in this presentation is based on the provide financial, tax, legal or
Slide 3: Vision
VISION Auxly Cannabis Group Investor Presentation 3
Slide 4: Auxly Snapshot: Asset Overview
AUXLY SNAPSHOT Asset Overview Our key assets include owned processing and manufacturing facilities, research and development and joint-venture cultivation projects. Asset Research & Cultivation Processing & Development Manufacturing Dosecann LD Inc. ✔ ✔ Market Capitalization: Employees: Robinsons ✔
Slide 5: Highly Experienced and Skilled Team
HIGHLY EXPERIENCED AND SKILLED TEAM Hugo Alves,JD Mike Lickver,JD,MBA Brian Schmitt, CPA,CFA Ian Rapsey Jeff O’Neill,MBA Alan Cooke Chief ExecutiveOfficer President Chief Financial Officer Chief CreativeOfficer Chief CommercialOfficer VP, Operations GregBoone Peter Crooks Dr. Bob Chapman Najla Guthr
Slide 6: 2.0 Launch: Dominating Product Listings
2.0 LAUNCH: DOMINATING PRODUCT LISTINGS Auxly Cannabis Group Investor Presentation 6 1) Except Quebec
Slide 7: National 2.0 Product Launch Overview
NATIONAL 2.0 PRODUCT LAUNCH OVERVIEW1 Foray #2 brand with 22% market share in PEI #2 brand with 21% market share in Nova Scotia #3 brand with 14% market share in Ontario Kolab Project #4 brand with 16% market share PEI #5 brand with 7% market share in Nova Scotia #5 brand with 6% market share in Ont
Slide 8: Q2 2020 Highlights
Q2 2020 HIGLIGHTS • Launched Robinsons brand in Ontario and Nova Scotia1, with H1 2020 Cannabis Revenue: $15.9M four distinctive strains, all grown with care at the Robinsons H1 2020 Research Revenue2: $2.7M indoor facility in Kentville, Nova Scotia • Auxly’s joint venture partner Sunens, received i
Slide 9: Our Products
OUR PRODUCTS Soft Chews: Chocolates: Oils: Dried Flower** Grapefruit Hibiscus Dark Chocolate Squares Oil in a bottle Available Lemon Lavender Dark Chocolate Bars Oil in a spray Apple Green Tea Salted Caramel Squares Now Vanilla Chai Squares Vapes: Pre-rolls: Sativa Sativa Soft Chews: Vapes: Indica I
Slide 10: Cultivation Platform
CULTIVATION PLATFORM ▪ Portfolio of cultivation assets provides expected supply of over 100,000 kg per annum SUNENS ▪ Mitigates operational risk of single-source of raw cannabis ▪ Canadian cultivation is diversified across high- efficiency, automated greenhouse, strategic outdoor grows and ultra-pre
Slide 11: Dosecann: Auxly's Heartbeat of Product Innovation and Manufacturing
DOSECANN: AUXLY’S HEARTBEAT OF PRODUCT INNOVATION AND MANUFACTURING Applying best practices and exceeding requiredstandards Consumer safety is our top priority; Safety Board oversees entire product development pathway Delivering effective, consistent products backed by science and innovation Facilit
Slide 12: Leading with Science and Innovation
LEADING WITH SCIENCE AND INNOVATION Auxly Cannabis Group Investor Presentation 12
Slide 13: Strategic Partners
STRATEGIC PARTNERS IMPERIALBRANDS CAPSUGEL/LONZA NATURES CROPS INNER SPIRIT KINDRED Imperial Brands PLC is an Capsugel Inc., a subsidiary of Natures Crops is a vertically Parent of Spirit Leaf Inc, Kindred, a wholly owned international fast-moving Lonza Group Ltd., designs, integrated grower and Inn
Slide 14: Imperial Brands Partnership Continues to Drive Value
IMPERIAL BRANDS PARTNERSHIP CONTINUES TO DRIVE VALUE Combining capabilities to drive significant future growth Establishing consumer Combining extensive Enhancing capabilities to Collaborating on the Engaging in consumer safety governance vape IP with leading rapidly commercialize design and sourcin
Slide 15: A Consumer-Centric Approach to Building a Winning Portfolio
A CONSUMER-CENTRIC APPROACH TO BUILDING A WINNING PORTFOLIO Our brands were designed to target specific consumer segments representing the largest current user segments and those with the greatest future growthpotential. Cannabis Enthusiast Cannabis Connoisseur % Share of current % Share of future %
Slide 16: Diverse Brand Platform
DIVERSE BRAND PLATFORM Auxly Cannabis Group Investor Presentation 16
Slide 17: Kolab Project
KOLAB PROJECT ABOUT: CONSUMER PROFILE: Kolab Project’s mission is to Consumers are highly experienced with cannabis and represent the largest provide Canadians with a group of current consumers and future cannabis consumers. They are hip, carefully curated selection of young or young-at-heart, urban
Slide 18: Foray
FORAY ABOUT: CONSUMER PROFILE: Foray is an accessible entry Curious but less knowledgeable about cannabis, these novice point for anybody—at any stage consumers are increasingly interested in both the physical and of their cannabisjourney. mental benefits from cannabis. They are slightly older, more
Slide 19: Dosecann
DOSECANN ABOUT: CONSUMER PROFILE: Backed by science and Older and more established, these consumers are primarily seeking advanced research and cannabis for functional pain relief rather than the mental intoxicating development, Dosecann effects. They are interested in the health & wellness benefits
Slide 20: Robinsons
ROBINSONS ABOUT: CONSUMER PROFILE: Small-batch, hand-tended and These consumers tend to skew male in their mid to late 30s and they live in driven by an unwavering urban cities with their families. They’re experts in their field of work and commitment to craftsmanship, have a general appreciation fo
Slide 21: Path to Profitability
PATH TO PROFITABILITY Moving towards positive adjusted EBITDA and cash slows by H1 2021 ✓ ✓ ✓ ✓ ✓ Auxly Cannabis Group Investor Presentation 21 1) Expected to be achieved after completion of Dosecann’s expansion and resulting increase in production capacity.
Slide 22: Path to Profitability: Creating Shareholder Value
PATH TO PROFITABILITY Creating shareholder value ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ Auxly Cannabis Group Investor Presentation 21 1) Expected to be achieved after completion of Dosecann’s expansion and resulting increase in production capacity.
Slide 23: Capitalization Table
CAPITALIZATION TABLE As of June 30,2020 AMOUNT ($ MILLIONS) AMOUNT (UNIT) PERCENTAGE Common Shares Outstanding1 $186.44 642.90M 72.4% Stock Options (weighted average exercise price of $0.881)2 $38.85 44.10M 5.0% Warrants (weighted average exercise price of $0.914)3 $21.95 24.02M 2.7% Imperial Brands
Slide 24: Board of Directors
BOARD OF DIRECTORS Genevieve Young Hugo Alves Troy Grant Vikram Bawa Conrad Tate Chair CEO and Director Independent Director Independent Director Director Genevieve is the President and Chief Hugo has played a key role in Since 2000, Troy has held senior Vikram is a senior global marketing Conrad jo
Slide 25: Auxly Cannabis Group Contact
Auxly Cannabis Group 777 Richmond St W Unit002 Toronto Ontario M6J0C2 Investor Relations Direct Line 1 6478120121 Facsimile Line 1 6478120120 Email info@auxly.com
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