Cann Group Ltd. · ASX:CAN
Cann — Corporate Update (January 2020)
14 slides from Cann's corporate update, Jan 29, 2020
Slide 1: Market Update
CANN GROUP LIMITED Market Update January 2020
Slide 2: Disclaimer
Disclaimer IMPORTANT: You must read the following before continuing. Summary Information This Market Update (“MU”) has been prepared by Cann Group Limited (ACN 603 949 739) (the “Company”). The following disclaimer applies to this document and any information provided regarding the information conta
Slide 3: What’s changed?
What’s changed? Cann Group’s previous plan to proceed with a 70,000 kg annual capacity production facility near Mildura was revised late last year • Significant market disruption in Canada was driven by a supply-demand imbalance - Producers increased cultivation in response to higher demand followin
Slide 4: Key building blocks in place
Key building blocks in place • Cultivars – International genetics program has allowed Cann to test, identify & focus on strains with the most compelling attributes for cultivation at scale, including profiling strains required by Aurora • Licences & Permits – Holds all required licences & permits fo
Slide 5: Updated business plan delivers greater certainty & less risk
Updated business plan delivers greater certainty & less risk The Board & Management have developed an updated business plan that focuses on: • Initially meeting Australian domestic demand while export markets continue to be developed • A staged expansion of capacity at Cann’s Mildura site. 25,000 kg
Slide 6: Mildura Funding & Financial Metrics
Mildura Funding & Financial Metrics • Design and costing parameters set for both phases of Stage 1 • Discussions progressing with Tier 1 Australian bank on loan facility to help fund Stage1A expansion. Bank is focused on full year FY22 EBITDA • Expect to finalise Stage 1A funding package (anticipate
Slide 7: Mildura facility to be completed on staged basis
Mildura facility to be completed on staged basis • State-of-the-art facility, incorporating world-leading design/technology • Revised construction plan more closely aligns capacity with anticipated demand & lowers capital investment risk • Stage 1 will provide 25,000 kgs of annual production capacit
Slide 8: Near term revenue opportunities
Near term revenue opportunities • Domestic/Australian sales- Supporting Australian patients • Cann expects to supply locally grown & manufactured medicinal cannabis value-added products by late Q1 CY2020 • Distribution agreement in place with Symbion (4,000 pharmacies, 1,300 hospitals nationally) to
Slide 9: Product manufacturing underway at IDT Australia
Product manufacturing underway at IDT Australia • Significant progress is being made • First large scale production runs of Australian grown & manufactured value-added GMP products • First batches of cannabis resin extract have now been processed from Cann’s dried flower material, utilising existing
Slide 10: Ongoing relationship with Aurora Cannabis Inc
Ongoing relationship with Aurora Cannabis Inc • Aurora has reaffirmed its support of Cann as strategically important • Aurora continues to have the ability to appoint a new Director to Board of Cann* • Offtake agreement in place with Aurora for Cann’s TGA/GMP quality product. Aurora has an establish
Slide 11: A growing domestic & export market
A growing domestic & export market Australian patient approvals continue momentum Export potential growing across worldwide 4000 Medicinal cannabis market size forecast 3500 3000 Region Market Value 2024 (US$B) 2500 Africa 1.3 2000 1500 Asia 10.7 1000 Europe 22.3 500 Latin America 6.6 0 North Americ
Slide 12: Meeting Australian demand for medicinal products
Meeting Australian demand for medicinal products • Supply agreements being finalised with a number of Australian medicinal cannabis companies • Current indicative domestic demand >10,000kg per annum • A wide range of value-added and other products being requested including: • Crude resin • Finished
Slide 13: Meeting global demand for medicinal products
Meeting global demand for medicinal products • Domestic & international demand for GMP medicinal products remains high • Canadian licensed producers continue to have difficulty meeting the EU requirements for GMP medical products • The Cann/IDT partnership provides first mover advantage for Cann to
Slide 14: CONTACTS:
CONTACTS: Clive Fanning Head of Investor Relations Cann Group Limited +61 (0)498 000 762 contact@canngrouplimited.com Peter Crock CEO Cann Group Limited +61 (0) 419 307 467 contact@canngrouplimited.com 14