CANN GROUP LIMITED — AGM Information 2019

Nov 28, 2019

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GROUP LIMITED
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Annual General Meeting
29 November 2019
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Chairman’s address

Allan McCallum Refer to ASX Announcement lodged 29 November 2019

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CEO’s address

Peter Crock Refer to ASX Announcement lodged 29 November 2019

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Fully integrated & globally competitive medicinal cannabis company

• Cann is combining in-house capabilities with strategic partnerships to undertake

• Industry-leading research & product development

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• Cost-efficient cultivation on a large scale

• Manufacturing of GMP grade medicinal products

• Sales & marketing to meet both Australian demand & valuable export opportunities

• Objective to provide all Australian patients with reliable, locally produced, GMP verified medicinal cannabis products. Cann’s aim is to secure & maintain a leadership position across the entire medicinal cannabis value chain & be successful on a global scale

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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

• Licenses & Permits – Holds all required licences & permits for cultivation, production, manufacturing, import & export

• Track-Record – 51 successful harvests in existing facilities

• At-Scale Facility – Construction of large scale facility to be developed on staged basis, with stage 1 commissioning targeted to start by late CY2020*

• Domestic Distribution – National wholesale & distribution agreement with Symbion to deliver Cann finished product through pharmacies & hospitals across Australia

• Aurora Offtake – Five year offtake agreement with Aurora for product in excess of Australian requirements

• Global market development – Ongoing development of marketing & supply opportunities in other overseas markets

• Products – Expanding range of locally produced & imported products ready for Australian patients

• Team – Experienced Board, management team & value-adding partnerships

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• Subject to completion of detailed design & construction review, funding & necessary approvals

Large scale 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

• Detailed design; scheduling; & cost now being determined, with preliminary target to develop initial stage with up to 25,000kgs in capacity & commissioning to start by late CY2020*

• Timetable for stages 2 & 3 to be determined based on ongoing analysis of product demand

• Mildura expenditure to date – ~$47m

• Site acquisition & preparation

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Image of Mildura facility – construction well underway

• Repurposing of original buildings

• Glasshouse structure erected

• Glass installed

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6 * Subject to completion of detailed design & construction review, funding & necessary approvals

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Proven cultivation & production model

• Ongoing cultivation & harvest cycle utilising Southern & Northern facilities

• 51 harvests completed including Aurora sourced cultivars

• 24 imported varieties of medicinal cannabis currently being evaluated

• First harvests of internationally sourced genetics completed

• Production from Southern facility servicing domestic supply initiatives & testing of export pathways

• Production from Northern facility supporting several research programs including La Trobe University ARC Medicinal Agriculture Research Hub & the NSW DPI CRCp research program – Cann is the lead commercial partner for both

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Experienced pharmaceutical partner with product validation underway

• IDT Australia (ASX:IDT) for manufacturing support in relation to cannabis-based product formulations

• IDT brings excellent capabilities & experience in the manufacture of cGMP quality pharmaceuticals

• Partnership with IDT provides Cann an integrated pathway through the full supply chain

• Supercritical CO2 extraction equipment, owned by Cann, installed & currently undergoing commissioning for full GMP compliance

• Production validation program underway

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Existing pharmaceutical equipment at IDT Australia

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Both local & imported products ready to launch

• Product development & validation on track for domestic launch of locally made Cann products by Q1 CY2020

• New imported product from Aurora received with first orders secured

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• Wholesale & distribution agreement with Symbion (4,000 pharmacies, 1,300 hospitals nationally) to carry Cann’s full range of imported & locally manufactured products within Australia

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Regulatory approvals

• Manufacturing licences received for Cann’s Southern & Northern facilities

• Cann holds all necessary cultivation, production & manufacturing licences in addition to import & export licences

• May 2019 – IDT Australia granted manufacturing licence

• June 2019 – Aurora receives import permit from Health Canada for cannabis cultivated by Cann

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• Mildura licence in process

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Strong relationship with Aurora Cannabis Inc

• Offtake agreement secured with Aurora for Cann’s TGA/GMP quality product. Aurora has an established presence in 24 countries

• Agronomic support & access to cultivation & manufacturing related IP

• Technical Services Agreement between Cann & Aurora – provides for exchange of key information & support across cultivation, processing, extraction, manufacturing & analysis

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• Aurora’s leading global greenhouse design firm Aurora Larssen Projects engaged for Cann’s Mildura facility

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A growing domestic & export market

Australian patient approvals continue momentum

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SAS Category B approvals by month
4000
3594
3500
28872913
3000
2500 2207
2000
1370 [1566]
1500
1038 [1109]
1000 [738]
567 490 [670]
331
500
0
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Source: Therapeutic Goods Administration / Australian Pharmaceutical Publishing

Export potential growing across worldwide

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Medicinal cannabis market size forecast
Region Market Value 2024 (US$b)
Africa 1.3
Asia 10.7
Europe 22.3
Latam 6.6
North America 20.2
Oceania 1.5
Total 62.6
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Source: Prohibition Partners

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Clinical trials involving cannabis – 2019

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Source: US National Library of Medicine/ Prohibition Partners
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ITEM 1

Financial statements and reports

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ITEM 2

Adoption of Remuneration Report

Proxy’s For Against Abstain Discretion 38,243,153 2,556,257 900,103 176,576

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ITEM 3

Re-election of Director – Mr Allan McCallum

Proxy’s For Against Abstain Discretion 44,985,890 2,234,764 76,971 158,464

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ITEM 4

Re-election of Director – Mr Douglas Rathbone

Proxy’s For Against Abstain Discretion 44,983,086 2,234,263 81,125 157,615

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ITEM 5

Ratification of prior issue of shares

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Proxy’s
For Against Abstain
Discretion
44,237,776 2,555,484 521,761 141,068
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ITEM 6

Ratification of prior issue of shares

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Proxy’s
For Against Abstain
Discretion
43,912,437 2,717,816 517,348 149,786
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ITEM 7

Approval of long-term incentive plan

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Proxy’s
For Against Abstain
Discretion
38,304,817 2,390,207 887,606 134,757
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ITEM 8

Approval of 10% placement capacity for 12 months

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Proxy’s
For Against Abstain
Discretion
43,730,163 2,404,488 1,172,905 148,533
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GROUP LIMITED
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CONTACTS:

Clive Fanning Head of Investor Relations Cann Group Limited +61 (0)498 000 762 contact@canngrouplimited.com

Matthew Wright Investor / Media Relations NWR Communications +61 (0)451 896 420 matt@nwrcommunications.com.au

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