INVESTOR PRESENTATION - abcannglobal.com Presentation_April... · This presentation also includes...
Transcript of INVESTOR PRESENTATION - abcannglobal.com Presentation_April... · This presentation also includes...
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DisclaimerCertain information included in this presentation, which was prepared on January 8, 2018 speaks only as of such date, including any information as to future financial or operatingperformance and other statements that express expectations or estimates of the future performance of ABcann Global Corporation and its subsidiaries (collectively, “ABcann” or the“Company”), constitute “forward-looking statements”. The words “may”, “will”, “could”, “should”, “would”, “suspect”, “outlook”, “believe”, “plan”, “anticipate”, “estimate”,“expect”, “intend”, “forecast”, “objective” and “continue” (or the negative thereof), and words and expressions of similar import, are intended to identify forward-looking statements.Forward-looking statements in this presentation include statements regarding: potential health benefits of cannabis; expected future growth of the regulated cannabis market; theexpected future evolution of the cannabis industry, including w respect of consumer touch, branding and promotion; ABcann’s product differentiation; expected market growth andmarket scope; ABcann’s proposed capacity expansion plan; ABcann’s proposed acquisition of Harvest Medicine Inc., the expected benefits of such acquisition, and the expected increasein clinic locations and patients; ABcann’s proposed brands; the expected success and timing of ABcann’s product development activities; ABcann’s proposed growth plan, including inrespect of product lines, geographic expansion, building of capabilities and capacity and development of key strategies; and ABcann’s potential future revenue drivers. In addition, thispresentation contains future oriented financial information (“FOFI”), including statements regarding expected capital expenditures and revenue projections, which speaks only as of thedate of this presentation. The FOFI has been prepared by management based on assumptions including that the Company will be able to obtain necessary approvals to proceed with itsbusiness plan; that the Company will follow regulatory requirements, and that management will be able to execute the Company’s business plan as expected. FOFI is intended to provideprospective investors with an outlook on the Company’s activities and information pertaining to the Company’s longer-term objectives, and may not be appropriate for other purposes.
By their very nature, forward-looking statements and FOFI involve inherent risks and uncertainties, both general and specific, which give rise to the possibility that forward-lookingstatements and FOFI will not be achieved. Certain material factors or assumptions are applied in FOFI and making forward-looking statements and FOFI, and actual results may differmaterially from those expressed or implied in such statements. The Company cautions readers not to place undue reliance on these statements, as many important factors, many ofwhich are beyond the Company’s control, could cause actual results to differ from the expectations expressed in such forward-looking statements or FOFI. These factors include, but arenot limited to, risks related to: the future evolution of the regulated cannabis market; industry, competition, customer, legal, taxation and accounting matters; adverse industry events;general economic conditions; loss of potential markets; future legislative and regulatory developments; inability to access sufficient capital in order to pursue business objectives onfavourable terms or at all; the ability of the Company to implement its business plan; the risk that the Company will not obtain necessary regulatory approvals for the acquisition ofHarvest Medicine Inc.; competition; product liability; crop failure; and other factors beyond the control of the Company. The foregoing lists of factors that may be affect future results isnot exhaustive. When reviewing the Company’s forward-looking statements and FOFI, readers should carefully consider the foregoing factors and other uncertainties and potentialevents. The Company does not intend, and disclaims any obligation, to update any forward-looking statements or FOFI, whether written or oral, or whether because of new informationor otherwise, except as may be required by law.
This presentation also includes information obtained by the Company from third parties, including, but not limited to, information regarding market data and the potential healthbenefits of cannabis. The Company believes such information to be accurate but has not independently verified such information. There is a risk that the assumptions made andconclusions drawn by the Company based on such third-party information are not accurate. Further, Health Canada has advised that cannabis is not an approved therapeutic drug inCanada and that, at present, while pointing to some potential therapeutic benefits, the scientific evidence does not establish the safety and efficacy of cannabis to the extent requiredby the Food and Drug Regulations for marketed drugs in Canada unless a specific cannabis product has received a notice of compliance from Health Canada and a Drug IdentificationNumber (DIN).
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Cannabis Industry Evolution
Consumer Touch
Branding & Promotion
Product Differentiation
Market Growth
Improved Industry Profitability
Range of Possible Outcomes
Government
Restricted
Commodity
Static
Private
Creative
Innovative
Legalized
Market Scope Local Global
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Well-Positioned for Growth
Over $130 million in cash, with the following priorities:
Niche focused rebranding and go-to-market
Scale-up proven Harvest Medicine
platform
Increased product innovation and
supply
Strategic investment fund for
cannabis sector
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Revenue Projections
2017 2019 2021+
Company Revenue$1M $500M
Global Market Opportunity $2B $40B
30%
20%
50%
$500M Revenue *
75 TonsVolume *
International market focus:Germany, Australia and Israel
$6.67 GramNet Price *
Management forecast –see Disclaimer on slide 2*
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Experienced Leadership Capacity Expansion
Customer-Focused Culture Local & Global Focus
Proprietary Technology
Go-to-Market Initiatives
2018 Priorities at a Glance
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Barry FishmanProven Business Builder
• Led European-focused Specialty Pharmaceutical Company Merus Labs (TSX, NASDAQ) - CAGR above 50%, and sold in July 2017 for $342M in cash
• Former CEO of Teva Canada: $1B Revenue, 5 billion doses GMP production
• Experience serving as a Director of 4 public companies in the Cannabis Industry
• Past Chair of the Canadian Generic Manufacturers Association - a $5B industry
• Significant deal-making, M&A and capital raising experience
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Every variable is precisely monitored and controlled to produce high–quality, consistent cannabis product
CO2 levels
Temp. and
humidity
Oxygen levels
Plant nutrition
Water quality
and volume
Climate controlled
curing process
Air quality
Light spectrum
and cycles
Organically GrownPesticide FreeHigh-Yielding
Advanced TechnologyComputer-ControlledPharmaceutical-Grade
Precisely Controlled Cultivation
Exclusive Cannabis Partnership
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Capacity Expansion Plan
Napanee32 tons
Other & 3rd Party
43 tons
Well-capitalized balance sheet with over $130M in cash to fund future growth
75 tons in 2021 = ~$500 million in revenue
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Expanding Capacity to over 32 Tons in Napanee
Kimmett – 2 Phases (including GMP for extraction, formulation, packaging)
Vanluven – 2 Phases (including GMP for extraction, formulation, packaging)
Seasonal Greenhouse320,000 Square Feet14,000 Kilos OutputFirst Harvest - 2018Extracted Products
Capital Cost: $6 million
Current Indoor Facility30,000 Square Feet1,500+ Kilos Output
First Harvest – 2016/2018Premium Bud & Extracted
Includes R&D (Guelph University)
Hybrid (Multipurpose) Facility150,000 Square Feet17,000 Kilos OutputFirst Harvest - 2019
Premium Bud & ExtractedCapital Cost: $50 million
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Our Roadmap to Commercial Success
Great People&
Proprietary Insights
Target Unmet Needs with
Stronger Branding & Positioning
Innovative New Product Development
Sales Execution &
Market Access
Profitable Growth+ + +
PatientsBring in New Patients
UtilizationIncreased Compliance
LoyaltyServices & Experience
Sales Execution
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Go-to-Market Differentiators
Clinics Medical Wellness Lifestyle
Medical Clinics Innovative Therapeutics Individual Relaxation Social Enhancement
Regulated cannabis is a disruptive global industry and companies that continuously innovate will emerge as winners
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Product Development Focus
$$$ Novel
$$ Value Added
$ Commodities
First-to-Market
Unique
Oils & Capsules
Dried FlowerIncr
easi
ng P
rofi
ts
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Product Development Roadmap
2016/2017 H1/18 H2/18 2019+
Dried cannabis hand-trimmed buds,Dried flower – patient ready
Oils, caps and sprays
Transdermal, sublingual tabs, essential oils
Inhaled, softgels, combo products, edibles, beverages
A robust pipeline of products has been approved for development
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Key Improvements Will Drive Results
More Patients More Products
More Promotions Stronger Brands
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Medical Cannabis Clinic Business
• Education focused, patient-centric, cannabis discovery center and clinic
• Acquiring over 1,200 new patients monthly from a single location
• One of Canada’s most successful and fastest growing cannabis clinics
• Expand the highly-rated and scalable initial location to add over 15,000 active patients per year
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Scaling-Up Harvest Medicine
FOUR NEW LOCATIONSPLANNED BY YE 2019
Criteria Includes:• Population size • Existing cannabis clinics• Population of veterans• Regulatory environment• Availability of
prescribing physicians
Edmonton
London
HamiltonWaterloo
Saskatoon
Regina Winnipeg
OttawaHalifax
Moncton
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Customer-Focused Culture
• Key driver to maximize shareholder value
• A lean integrated model ensures optimal business results
• Creating the right culture is an imperative
• A trusted source for medical and scientific information on cannabis
• Data and insights will drive innovative products and services
Customer Focused
Products & Service
Discipline & Speed
Leadership & Partnerships
Quality & Cost
Capacity & Capability
Science & Innovation
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Adult-Use: Strategic Retail Partnerships
Choom™ was inspired by the Choom Gang; a group of buddies in Honolulu during the 1970’s who loved to smoke weed—or as the locals called it,“Choom”.
Choom™ will provide an amazing experience for customers, and bring style, sophistication and fun to the cannabis market in Canadian Choom™ stores.
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Geographic Expansion
• In February 2016 ABcannstarted selling medicinal cannabis in Canada.
• ABcann Global is well positioned to grow internationally.
• In January 2018 ABcannwas granted an Australian Import License.
Foothold established in Canada, Germany, Australia and Israel
Legal in Some Form Decriminalized Inconsistently
EnforcedIllegal or No Data
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International Update
Q3/18 Q4/18
Australian approval and initial shipments
GMP & stability testing for Germany
Obtain distribution license in Germany
Initial shipments to Germany
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Current Common Shares Outstanding 192.6
Current Debentures ($4.00 w/average exercise price) 8.6
Warrants ($1.66 w/average exercise price) 20.2
Options/RSU’s 13.8
Total Issued and Outstanding 235.3
Daily Volume 2.2
Market Cap $396.8
Cash Balance $139.3
As of March 1, 2018 – Millions (CAD)
Capitalization Summary
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Our Real Competitive Advantage
Nimble. Responsive. Focused.
Talented Team
Entrepreneurial Spirit
Thank You!
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Chief Financial Officer
Dr Michael [email protected]
Headquarters
126 Vanluven RoadNapanee, ON K7R 3L2Canada
Chief Executive Officer
Barry [email protected]
Contact InformationTSX-V: ABCN
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Business Foundation
VISIONTo be an internationally respected cannabis company recognized for high-quality, trusted and innovative products and services
MISSIONTo supply high-quality, trusted and innovative cannabis products and services that make people feel better.
VALUESCreativityAccountabilityRespectExcellenceSpeedA Balance of Entrepreneurial
Spirit & Corporate Discipline
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Executive Team
Barry FishmanChief Executive Officer20 years of experience as a business leader, most recently as CEO of international specialty pharmaceutical company Merus Labs. Previously served as CEO of both Teva Canada and Taro Canada, VP Marketing at Eli Lilly Canada and past Chair of the Canadian Generic Manufacturers Association.
Dr. Michael BumbyChief Financial Officer20 years of experience in pharmaceuticals, previously CFO of three publicly held Canadian companies - most recently as CFO of Merus Labs. Key roles at Eli Lilly, including leading international BD activities for early and late stage assets at the Global Headquarters, and serving as regional CFO in Prague.
Andrew LaCroixVP, International and General CounselOver 20 years of legal experience starting at Stikeman Elliott and then managing his own practice. Andrew has been involved with ABcann since its inception, drafting and submitting the initial Health Canada license application
Sung KangChief Marketing OfficerOver 15 years of marketing experience, has held senior marketing leadership roles at companies including General Mills and Novartis Consumer. Formerly the Head of Marketing for the Mike’s Beverage Company, a Division of Labatt Breweries.
Jenny GuanVP, Napanee OperationsAn initial team member at ABcann with over 15 years experience in various key leadership roles in business operations and finance. Strong knowledge of production operations, process improvement and operational efficiency.
Shekhar ParmarCEO, Harvest Medicine and Chief Strategy OfficerOver 10 years of experience as an entrepreneur, lawyer, and design thinker. Most recently as CEO of Harvest Medicine, led the company to become one of the fastest growing, highest rated, cannabis clinics in the country attractive over 12,000 patients in under a year.
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Board of Directors
Daryl KrampFormer Member of Parliament,
Municipal Counsellor, and successful entrepreneur
Aaron KeayCreative capital markets
expert with deep experience M&A and take-public
transactions
Andrew LaCroix20 Years of legal experience starting at Stikeman Elliott
John EassonCorporate finance and M&A
Advisor – experiences ranging from start-ups to Canada’s largest public companies
Richard FitzgeraldFormer CEO & Chairman of
Diageo Canada – broad leadership experience in alcohol
and tobacco industries
Barry Fishman (CEO)Former CEO of Merus Labs, Teva Canada and Taro Canada, Vice President of Marketing at Eli
Lilly Canada
Paul Lucas (Chairman)Former CEO of Glaxo Canada with
significant board experience in for-profit & non-profit sectors
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Advisory Board
Raphael Mechoulam, PhDThe world-renowned cannabis scientist that discovered tetrahydrocannabinol
(THC) and cannabidiol (CBD).
Donald I. Abrams, MDCo-Author of The Chapter
Cannabinoids and Cancer in the Oxford University Press.
Chris Hudalla, PhDRecognized Leader in
analytical chemistry and method development.
Mike Dixon, PhDLeading plant scientist –specializing in controlled environmental systems.
Michael E. Shannon, MDAccomplished Medical Advisor and Former Deputy Surgeon
General for Canada.
Paul Daeninck, MDMedical Oncologist and
Palliative Medicine Consultant with Cancer Care Manitoba.
W. Brett WilsonSuccessful investor, Dragon on Dragon’s Den, Order of
Canada recipient.