Elixinol Wellness Ltd · ASX:EXL
Elixinol Wellness — Elixinol Global — Investor Presentation (May 2020)
34 slides from Elixinol Wellness's investor presentation, May 5, 2020
Slide 1: Trading Update and Capital Raising
www.elixinolglobal.com For personal use only Trading Update and Capital Raising Elixinol Global Limited May 2020 ASX: EXL, OTC: ELLXF www.elixinolglobal.com Not for release to US wire services or distribution in the United States EXL TRADING UPDATE AND CAPITAL RAISING
Slide 2: Disclaimer
For personal use only Disclaimer This investor presentation (Presentation) has been prepared by Elixinol Global Limited (ACN 621 479 794) (Elixinol or Company) in relation to an accelerated non-renounceable entitlement offer under section 708AA of the Corporations Act 2001 (Cth) (Corporations Act) a
Slide 3: Disclaimer (cont'd)
For personal use only Disclaimer (cont’d) Summary information The information contained in this Presentation should not be considered to be comprehensive or to comprise all the information that a shareholder or potential investor in Elixinol may require in order to determine whether to deal in New S
Slide 4: Disclaimer (cont'd)
For personal use only Disclaimer (cont’d) Pro forma financial information Recipients of this Presentation should specifically note that this Presentation contains pro forma financial information (bei ng the pro forma cash disclosure). Investors should also note that the pro forma financial informati
Slide 5: Executive summary
For personal use only Executive summary • Elixinol branded CBD nutraceuticals consumer strategy, becomes key revenue channel focus • More focused branded business model geared towards margin accretion • Continuation of brand relaunch in March 2020 driving distribution and consumer awareness Refined
Slide 6: Agenda
www.elixinolglobal.com For personal use only 1 HIGHLIGHTS & BUSINESS UPDATE 4 2 CAPITAL RAISING 13 3 KEY RISKS 17 4 INTERNATIONAL OFFER RESTRICTIONS 20 Agenda EXL TRADING UPDATE AND CAPITAL RAISING 6
Slide 7: Highlights & Business Update
FY2019 CANNABIS WHO RESULTS BUSINESS FINANCIAL DEFINITION WE ARE OVERVIEW OVERVIEW RESULTS OUTLOOK Q+A For personal use only HIGHLIGHTS & BUSINESS UPDATE 1 Calm Before, During & After the Storm. Kind of Amazing EXL TRADING UPDATE AND CAPITAL RAISING 7
Slide 8: Business update and continued strategy implementation
HIGHLIGHTS & CAPITAL RAISING KEY RISKS INTERNATIONAL OFFER BUSINESS UPDATE RESTRICTIONS For personal use only Business update and continued strategy implementation Building a global Elixinol branded CBD nutraceuticals business to enhance margins • Continued global Elixinol brand re-launch with benef
Slide 9: Elixinol – Americas region
HIGHLIGHTS & CAPITAL RAISING KEY RISKS INTERNATIONAL OFFER BUSINESS UPDATE RESTRICTIONS For personal use only Elixinol – Americas region Continued focus on selling hemp derived Elixinol branded CBD products Cost base optimisation • Focus on cost-out and efficiency initiatives to expand margins and r
Slide 10: Elixinol – UK / Europe
HIGHLIGHTS & CAPITAL RAISING KEY RISKS INTERNATIONAL OFFER BUSINESS UPDATE RESTRICTIONS For personal use only Elixinol – UK / Europe Building momentum in the UK and Europe UK / Europe business • Continued development of global distribution strategy, prioritising pharmacy, home TV shopping and e-comm
Slide 11: Regulatory frameworks
HIGHLIGHTS & CAPITAL RAISING KEY RISKS INTERNATIONAL OFFER BUSINESS UPDATE RESTRICTIONS For personal use only Regulatory frameworks US UK / Europe Australia • On 5 March 2020, the US Food and Drug • Novel Food defined by any product not • As of 24 April 2020, the Therapeutic Goods Administration (FD
Slide 12: Refined Elixinol branded product mix
HIGHLIGHTS & CAPITAL RAISING KEY RISKS INTERNATIONAL OFFER BUSINESS UPDATE RESTRICTIONS For personal use only Refined Elixinol branded product mix Optimised, customer-led range, with products launched March 2020 Consumer Products Dietary Supplements Topicals • Tinctures • Elixinol Skin • Capsules •
Slide 13: Elixinol branded products – the new breed
HIGHLIGHTS & CAPITAL RAISING KEY RISKS INTERNATIONAL OFFER BUSINESS UPDATE RESTRICTIONS For personal use only Elixinol branded products – the new breed New Elixinol branded CBD • Elixinol’s focus is on hemp derived CBD formats that are purposely positioned to what consumers in our key markets recogn
Slide 14: New product development
HIGHLIGHTS & CAPITAL RAISING KEY RISKS INTERNATIONAL OFFER BUSINESS UPDATE RESTRICTIONS For personal use only New product development New immune booster range – capsules Elixinol Skin – launching H2 FY2020 Full range of CBD-infused skincare EXL TRADING UPDATE AND CAPITAL RAISING 14
Slide 15: Revenue breakdown by channel
HIGHLIGHTS & CAPITAL RAISING KEY RISKS INTERNATIONAL OFFER BUSINESS UPDATE RESTRICTIONS For personal use only Revenue breakdown by channel Branded / co-branded products Revenue by channel (Q4 FY2019 to Q1 FY2020)(1) (e-commerce, Retail, UK & Europe)(1) $ million • Increased contribution of total rev
Slide 16: Capital Raising
FY2019 CANNABIS WHO RESULTS BUSINESS FINANCIAL DEFINITION WE ARE OVERVIEW OVERVIEW RESULTS OUTLOOK Q+A For personal use only CAPITAL RAISING 2 A Better Way to Feel Better. Kind of Amazing EXL TRADING UPDATE AND CAPITAL RAISING 16
Slide 17: Offer details
HIGHLIGHTS & CAPITAL RAISING KEY RISKS INTERNATIONAL OFFER BUSINESS UPDATE RESTRICTIONS For personal use only Offer details • 1 for 2.51 pro-rata accelerated non-renounceable entitlement offer to raise gross proceeds of up to $11.0 million (Offer) Structure and size • The Offer is not underwritten •
Slide 18: Sources and uses of funds
HIGHLIGHTS & CAPITAL RAISING KEY RISKS INTERNATIONAL OFFER BUSINESS UPDATE RESTRICTIONS For personal use only Sources and uses of funds Sources $m Comments Offer proceeds 11.0 Entitlement offer, excluding costs Total sources 11.0 Uses $m Comments Working capital 10.0 Support operating cash flow, con
Slide 19: Capital raising timetable
HIGHLIGHTS & CAPITAL RAISING KEY RISKS INTERNATIONAL OFFER BUSINESS UPDATE RESTRICTIONS For personal use only Capital raising timetable Event Date (2020) Announcement of Offer (in trading halt) Tuesday, 5 May Institutional Entitlement Offer opens Tuesday, 5 May Institutional Entitlement Offer closes
Slide 20: Key Risks
FY2019 CANNABIS WHO RESULTS BUSINESS FINANCIAL DEFINITION WE ARE OVERVIEW OVERVIEW RESULTS OUTLOOK Q+A For personal use only KEY RISKS 3 Action for Your Bodies Reaction. Kind of Amazing EXL TRADING UPDATE AND CAPITAL RAISING 20
Slide 21: Key risks
HIGHLIGHTS & CAPITAL RAISING KEY RISKS INTERNATIONAL OFFER BUSINESS UPDATE RESTRICTIONS For personal use only Key risks Introduction • There are risks involved with participating in the Offer and holding Shares in Elixinol Global Limited (the “Company”, “Elixinol”, "we" or "us"). Certain of these ri
Slide 22: Risks specific to Elixinol's business
HIGHLIGHTS & CAPITAL RAISING KEY RISKS INTERNATIONAL OFFER BUSINESS UPDATE RESTRICTIONS For personal use only Risks specific to Elixinol’s business Agricultural risk and climate change risk The Group is exposed to agricultural risk as the businesses are reliant on agricultural products with Elixinol
Slide 23: Risks specific to Elixinol's business (cont'd)
HIGHLIGHTS & CAPITAL RAISING KEY RISKS INTERNATIONAL OFFER BUSINESS UPDATE RESTRICTIONS For personal use only Risks specific to Elixinol’s business (cont’d) Change to laws or regulations Elixinol’s operations are highly regulated and Elixinol could be adversely affected by changes in laws, regulatio
Slide 24: Risks specific to Elixinol's business (cont'd)
HIGHLIGHTS & CAPITAL RAISING KEY RISKS INTERNATIONAL OFFER BUSINESS UPDATE RESTRICTIONS For personal use only Risks specific to Elixinol’s business (cont’d) Compliance with laws and regulation; risk of litigation and regulatory investigations Elixinol operates in a highly regulated and rapidly growi
Slide 25: Risks specific to Elixinol's business (cont'd)
HIGHLIGHTS & CAPITAL RAISING KEY RISKS INTERNATIONAL OFFER BUSINESS UPDATE RESTRICTIONS For personal use only Risks specific to Elixinol’s business (cont’d) Reputational risk There is a risk that incidents beyond the control of the Group entities could occur which would have the effect of reducing p
Slide 26: Risks specific to Elixinol's business (cont'd)
HIGHLIGHTS & CAPITAL RAISING KEY RISKS INTERNATIONAL OFFER BUSINESS UPDATE RESTRICTIONS For personal use only Risks specific to Elixinol’s business (cont’d) Counterparty risks Elixinol has entered, and may enter, into several commercial agreements and arrangements (including licences) with third par
Slide 27: General investment risks
HIGHLIGHTS & CAPITAL RAISING KEY RISKS INTERNATIONAL OFFER BUSINESS UPDATE RESTRICTIONS For personal use only General investment risks Coronavirus (COVID-19) The ongoing COVID-19 pandemic has had a significant impact on the global economy and the ability of individuals, businesses, and governments t
Slide 28: General investment risks (cont'd)
HIGHLIGHTS & CAPITAL RAISING KEY RISKS INTERNATIONAL OFFER BUSINESS UPDATE RESTRICTIONS For personal use only General investment risks (cont’d) General risks associated with investments in equity capital Investors should be aware that there are risks associated with any investments in equity capital
Slide 29: General investment risks (cont'd)
HIGHLIGHTS & CAPITAL RAISING KEY RISKS INTERNATIONAL OFFER BUSINESS UPDATE RESTRICTIONS For personal use only General investment risks (cont’d) The Company may not have settlement support from its Lead Manager (cont’d) (j) either: (i) an application is made by ASIC for an order under Part 9.5 of the
Slide 30: General investment risks (cont'd)
HIGHLIGHTS & CAPITAL RAISING KEY RISKS INTERNATIONAL OFFER BUSINESS UPDATE RESTRICTIONS For personal use only General investment risks (cont’d) Non-underwritten offer risk The Offer is not underwritten, and accordingly there is no certainty that Elixinol will raise sufficient funds under the Offer t
Slide 31: International Offer Restrictions
FY2019 CANNABIS WHO RESULTS BUSINESS FINANCIAL DEFINITION WE ARE OVERVIEW OVERVIEW RESULTS OUTLOOK Q+A For personal use only INTERNATIONAL OFFER RESTRICTIONS 4 Works as Hard as You Do. Kind of Amazing EXL TRADING UPDATE AND CAPITAL RAISING 31
Slide 32: International offer restrictions
HIGHLIGHTS & CAPITAL RAISING KEY RISKS INTERNATIONAL OFFER BUSINESS UPDATE RESTRICTIONS For personal use only International offer restrictions This document does not constitute an offer of entitlements ("Entitlements"), new ordinary shares ("New Shares") or additional ordinary shares (“Additional Ne
Slide 33: International offer restrictions (cont'd)
HIGHLIGHTS & CAPITAL RAISING KEY RISKS INTERNATIONAL OFFER BUSINESS UPDATE RESTRICTIONS For personal use only International offer restrictions (cont’d) New Zealand This document has not been registered, filed with or approved by any New Zealand regulatory authority under the Financial Markets Conduc
Slide 34: For more information
www.elixinolglobal.com For personal use only For more information: Investor relations and media please contact: Ron Dufficy Chief Financial Officer ron.dufficy@elixinolglobal.com www.elixinolglobal.com EXL TRADING UPDATE AND CAPITAL RAISING