CANN GROUP LIMITED — Investor Presentation 2017

May 3, 2017

DISCLAIMER

This investor presentation (Presentation) has been prepared by Cann Group Limited (ABN 25 603 949 739) (Cann) and comprises written material regarding Cann.

Summary information

This Presentation contains summary information about Cann and its activities which is current as at the date of this Presentation. The information in this Presentation is of a general nature and does not purport to be complete nor does it contain all the information which a prospective investor may require in evaluating a possible investment in Cann or that would be required in a prospectus or product disclosure statement prepared in accordance with the requirements of the Corporations Act.

Cann's historical information in this Presentation is, or is based upon, information that has been released via a prospectus, dated on or around April 2017. This Presentation should be read in conjunction with Cann's other announcements, which are available at www.canngroup.com.au, and the prospectus.

Not an offer

This Presentation is not a prospectus, product disclosure statement or other offering document under Australian law (and will not be lodged with ASIC) or any other law. This Presentation is for information purposes only and is not an invitation or offer of securities for subscription, purchase or sale in any jurisdiction (and will not be lodged with the U.S Securities and Exchange Commission). Any decision to purchase New Shares must be made on the basis of the information to be contained in the offer document to be prepared and issued to eligible investors.

This Presentation does not constitute investment or financial product advice (nor tax, accounting or legal advice) or any recommendation to acquire entitlements or New Shares and does not and will not form any part of any contract for the acquisition of entitlements or New Shares.

This Presentation does not constitute an offer to sell, or a solicitation of an offer to buy, any securities in the United States. The New Shares have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the U.S. Securities Act) or the securities laws of any state or other jurisdiction of the United States and may not be offered or sold, directly or indirectly, in the United States or to persons that are acting for the account or benefit of persons in the United States, unless they have been registered under the U.S Securities Act, or are offered and sold in a transaction exempt from, or not subject to, the registration requirements of the U.S. Securities Act and any other applicable securities laws. Accordingly, this Presentation is not to be distributed in the United States to persons other than institutional "accredited investors" within the meaning of Rule 501(a)(1), (2), (3) or (7) of Regulation D under the U.S. Securities Act ("IAIs") and to "qualified institutional buyers" (as defined in Rule 144A under the U.S. Securities Act)("QIBs"). This information is being provided on a confidential basis in the United States to a limited number of persons qualifying as IAIs or QIBs, each of whom agrees not to communicate such information to any other person and to return such information and any other related material regarding Cann to it or any of its authorized agents.

Not investment advice

Each recipient of this Presentation should make its own enquiries and investigations regarding all information in this Presentation including but not limited to the assumptions, uncertainties and contingencies which may affect future operations of Cann and the impact that different future outcomes may have on Cann.

This Presentation has been prepared without taking account of any person's individual investment objectives, financial situation or particular needs. Before making an investment decision, prospective investors should consider the appropriateness of the information having regard to their own investment objectives, financial situation and needs and seek legal, accounting and taxation advice appropriate to their jurisdiction. Cann is not licensed to provide financial product advice in respect of Cann shares.

Investment risk

An investment in Cann shares is subject to known and unknown risks, some of which are beyond the control of Cann. Cann does not guarantee any particular rate of return or the performance of Cann. Investors should have regard to the risk factors outlined in this Presentation when making their investment decision.

Financial data

All dollar values are in Australian dollars (\$ or AUD) unless otherwise stated. Investors should note that this Presentation contains pro forma and forecast financial information. The pro forma and other financial information, and the past information, provided in this Presentation is for illustrative purposes only and is not represented as being indicative of Cann's views on its future financial condition and/or performance.

The pro forma financial information has been prepared by Cann in accordance with the measurement and recognition requirements, but not the disclosure requirements, of applicable accounting standards and other mandatory reporting requirements in Australia. Investors should also note that the pro forma financial information does not purport to be in compliance with Article 11 of Regulation S-X of the rules and regulations of the U.S. Securities and Exchange Commission.

Future performance

This Presentation contains certain 'forward looking statements', including but not limited to projections, guidance on future revenues, earnings, margin improvement, other potential synergies and estimates and the future performance of Cann. Forward looking statements can generally be identified by the use of forward looking words such as, 'expect', 'anticipate', 'likely', 'intend', 'should', 'could', 'may', 'predict', 'plan', 'propose', 'will', 'believe', 'forecast', 'estimate', 'target' 'outlook', 'guidance', 'potential' and other similar expressions within the meaning of securities laws of applicable jurisdictions and include, but are not limited to the outcome and effects of the Offer and the use of proceeds.

The forward looking statements contained in this Presentation are not guarantees or predictions of future performance and involve known and unknown risks and uncertainties and other factors, many of which are beyond the control of Cann, and may involve significant elements of subjective judgement and assumptions as to future events which may or may not be correct. There can be no assurance that actual outcomes will not differ materially from these forward-looking statements. A number of important factors could cause actual results or performance to differ materially from the forward looking statements, including the risk factors set out in this Presentation. Investors should consider the forward looking statements contained in this Presentation in light of those disclosures. The forward looking statements are based on information available to Cann as at the date of this Presentation.

Except as required by law or regulation (including the ASX Listing Rules), Cann undertakes no obligation to provide any additional or updated information whether as a result of new information, future events or results or otherwise. Indications of, and guidance or outlook on, future earnings or financial position or performance are also forward looking statements.

DISCLAIMER

Past performance

Investors should note that past performance, including any pro forma historical information in this Presentation, is given for illustrative purposes only and cannot be relied upon as an indicator of (and provides no guidance as to) future Cann performance including future share price performance. The pro forma historical information is not represented as being indicative of Cann's views on its future financial condition and/or performance.

Disclaimer

None of Cann's respective advisers or any of their respective affiliates, related bodies corporate, directors, officers, partners, employees and agents, have authorised, permitted or caused the issue, submission, dispatch or provision of this Presentation and, except to the extent referred to in this Presentation, none of them makes or purports to make any statement in this Presentation and there is no statement in this Presentation which is based on any statement by any of them. For the avoidance of doubt, the advisers and their respective affiliates, related bodies corporate, directors, officers, partners, employees and agents have not made or purported to make any statement in this Presentation and there is no statement in this Presentation which is based on any statement by any of them.

To the maximum extent permitted by law, Cann, its advisers and their respective affiliates, related bodies corporate, directors, officers, partners, employees and agents exclude and disclaim all liability, including without limitation for negligence or for any expenses, losses, damages or costs incurred by you as a result of your participation in the Offer and the information in this Presentation being inaccurate or incomplete in any way for any reason, whether by negligence or otherwise. To the maximum extent permitted by law, Cann, its advisers and their respective affiliates, related bodies corporate, directors, officers, partners, employees and agents make no representation or warranty, express or implied, as to the currency, accuracy, reliability or completeness of information in this Presentation and, with regards to each adviser, their affiliates, related bodies corporate, directors, officers, partners, employees and agents take no responsibility for any part of this Presentation or the Offer.

The advisers and their respective affiliates, related bodies corporate, directors, officers, partners, employees and agents make no recommendations as to whether you or your related parties should participate in the Offer nor do they make any representations or warranties to you concerning the Offer, and you represent, warrant and agree that you have not relied on any statements made by any of the advisers, affiliates, related bodies corporate, directors, officers, partners, employees or agents in relation to the Offer and you further expressly disclaim that you are in a fiduciary relationship with any of them. Statements made in this Presentation are made only as the date of this Presentation. The information in this Presentation remains subject to change without notice. Cann reserves the right to withdraw the Offer or vary the timetable for the Offer without notice. The advisers, together with their affiliates, are full service financial institutions engaged in various activities, which may include trading, financing, financial advisory, investment management, investment research, principal investment, hedging, market making, brokerage and other financial and non-financial activities and services including for which they have received or may receive customary fees and expenses. In the ordinary course of their various business activities, the advisers and their affiliates may purchase, sell or hold a broad array of investments and actively trade securities, derivatives, loans, commodities, currencies and other financial instruments for their own account and for the accounts of their customers, and such investment and trading activities may involve or relate to assets, securities and/ or instruments of Cann, its affiliates and/ or persons and entities with relationships with Cann and/ or its affiliates. The advisers and/or their affiliates are acting as lead managers, underwriters and/or bookrunners to the Offer. The advisers are acting for and providing services to Cann in relation to the Offer. The advisers have been engaged solely as independent contractors and are acting solely in a contractual relationship on an arm's length basis with Cann. The engagement of the advisers by Cann is not intended to create any agency, fiduciary or other relationship between the advisers and Cann, its security holders or any other investors. The advisers, in conjunction with their affiliates, are acting in the capacity as such in relation to the Offer and will receive fees and expenses for acting in this capacity.

All rights reserved

Several photographs contained in this Presentation are the property of Cann and are protected under copyright laws. No part of this Presentation may be reproduced, distributed, or transmitted in any form or by any means, including photocopying, recording, or other electronic or mechanical methods, without the prior written permission of the Company, except in the case of brief quotations embodied in critical reviews and certain other noncommercial uses permitted by copyright law.

Third parties

This Presentation references contractual arrangements between Cann and Agriculture Victoria Services, Anandia Laboratories and the Commonwealth Scientific and Industrial Research Organisation (CSIRO). These parties, their personnel and advisers, do not take any responsibility for the contents of this Presentation, including without limitation the accuracy and completeness of any representation made, or the merits of the investment to which it relates nor infer any endorsement of the offer contained with this Presentation by virtue of being referred to in the Presentation. The references to research and development activities in the Presentation appear as a matter of record only.

TRANSACTION OVERVIEW

Cann is a vertically-integrated Australian agribusiness company focused on breeding, cultivating & manufacturing medicinal cannabis for sale in Australia FOCUSED ON BREEDING & CULTIVATING MEDICINAL CANNABIS High profile & experienced agribusiness board & management team EXPERIENCED AGRIBUSINESS BOARD AgVic cannabis industry PATHWAY Canaccord Genuity & PAC Partners joint lead managers to the equity raising & IPO JOINT LEAD MANAGERS Fully underwritten raising of \$13.5m at \$0.30 per share in IPO to list on the ASX – pre-money valuation of \$18m FULLY UNDERWRITTEN \$13.5M INITIAL PUBLIC OFFERING FIRST AUSTRALIAN COMPANY TO BE LICENCED

Australian Government Office of Drug Control (ODC) issues first two licences to Cann for research & cultivation

LEADING RESEARCH & TECHNOLOGY

Agreements with leading research & technology organisations across the medicinal cannabis value chain – including CSIRO &

CLEAR REGULATORY

Australia now has a clear regulatory pathway which facilitates a legal medicinal

BOARD & MANAGEMENT TEAM

• Allan has extensive experience in the agribusiness sector as well as significant tenures with biotechnology companies
• Chairman of Tassal Group (ASX:TGR), Non Executive Director of Medical Developments International (ASX:MVP), Former Chairman of Vicgrain, Former Director of Grain Growers Association
• Former President of Australian Oilseeds Federation, Chairman of Nugrain, Access Genetics & Farm Horizons
• ALLAN MCCALLUM, CHAIRMAN & Director of IncitecPivot (ASX:IPL)

• Doug is an Industrialist with vast experience in chemicals & agrochemicals industry / international business. He has expertise in specific functional areas & has chemical engineering & commerce background
• Formerly CEO & Managing Director at Nufarm (ASX:NUF), & earlier, Managing Director of Nufarm Australia, with over 35 years in total with the company

DOUG RATHBONE, NON-EXECUTIVE DIRECTOR

• Former Director of Commonwealth Scientific & Industrial Research Organisation (CSIRO) • Formerly a Non-independent Non-Executive Director at Excel Crop Care
• Non-Executive Director of Leaf Resources (ASX:LER)

The team has deep experience in the Australian agribusiness, biotech & pharma sectors, along with proven entrepreneurial & business development expertise

PHILIP JACOBSEN, NON-EXECUTIVE DIRECTOR / DEPUTY CHAIRMAN

GEOFF PEARCE, NON-EXECUTIVE DIRECTOR

PETER CROCK, CHIEF EXECUTIVE OFFICER

• Experienced public company director

• Co-founded Premier Artists & Frontier Touring Company
• Very strong financial management background & success in building businesses in evolving & competitive markets
• Director of Liberation Music, Premier Artists, The Harbour Agency, former Chairman of MCM Entertainment
• More than 40 years' experience, including owning & growing Scental Pacific Pty Ltd which was sold to the Smorgon family Geoff created & built a contract manufacturing business Beautiworx Australia Pty Ltd, (sold to BWX Limited in January 2014). CEO of Beautiworx & director of BWX in the lead-up to ASX listing in 2015
• Chairman of Probiotec (ASX:PBP)
• Geoff owns The Continental Group, which provides raw materials, cosmetic & pharmaceutical packaging, roto-molded cooler boxes & other leisure goods to businesses around the globe
• Proven experience in business development & an in-depth knowledge of manufacturing, packaging & distribution
• Peter is an experienced senior manager with strong skills in marketing & technology development
• Twenty-eight years with Nufarm Group, most recently working in the rapidly evolving "Ag Tech" space. Other senior management roles covering R&D, IT, marketing & business development
• Project manager on several newly acquired businesses, extensive experience working with regulators locally & overseas

CORNERSTONE INVESTOR: AURORA CANNABIS INC.

Aurora Cannabis Inc. (TSXV:ACB), one of Canada's largest publicly-listed cannabis companies, subscribed for 19.9% of Cann as a cornerstone investor to the IPO at the offer price of \$0.30 (\$6.5m in total)

• Canada's 2nd largest publicly-listed licenced medicinal cannabis grower / manufacturer
• Targeting one of the largest production footprints with a purpose-built, state-of-the-art production facility specifically designed for growing & cultivating cannabis
• Existing 55,200 sq foot facility
• Current expansion of additional 650,000 sq foot facility underway
• On completion, capacity of approx 30,000 kg / year
• Acquired CanvasRx in August 2016, a company that provides counselling services to patients who have received a prescription for cannabis from a physician, providing strong end-user / patient access

FINANCIAL METRIC
Share price (\$)	2.73
Shares on issue (m)	319.34
Market capitalisation (\$m)	874.993
Strong balance sheet

Aurora brings a wealth of experience, networks & knowledge to Cann that will fast-track and maximise Cann's growth strategy in Australia

BUSINESS MODEL & THE INDUSTRY VALUE CHAIN

FEDERAL & STATE GOVERNMENT REGULATED

RESEARCH & DEVELOPMENT

Established Operations

• Cann is using its own experience & capabilities, & collaborating with research bodies & commercial entities to develop optimal breeding, cultivation, extraction & analysis programs
• Cann was granted a three year "Authority for Low–THC Cannabis" by the Victorian Government authorising cultivation of low-THC cannabis for research purposes
• With the granting of the first licence by the Australian Government's ODC, Cann's focus moves to research on the use of cannabis for medicinal purposes

Partnerships with Experts

• Cann is accessing elite genetics within Australia & from overseas to support its breeding programs

Building an Intellectual Property (IP) Portfolio

• R&D is focused on several areas:
• ─ Understanding the influence of growing conditions on the cannabinoid profile of the plant using Cann's Secure Cultivation Rooms
• ─ Maximising the cannabinoid oil production from suitable cannabis varieties & reducing the cost of production, while delivering a consistent quality & quantity of medicinal cannabinoid oil with scientifically defined properties
• ─ Developing optimal blends of THC, CBD & other cannabinoid oils to treat specific conditions, leveraging its access to unique strains and in-house developed IP

CULTIVATION & PRODUCTION

facility in

year licence from the Victorian

Existing Capability

• Secure Cultivation Rooms fitted with requisite lighting, irrigation, climate control & other equipment to grow cannabis for medicinal & research related purposes
• Secure Cultivation Rooms consistently hold optimal environmental conditions & thus provide the capability to produce multiple harvests per year & optimise crop yield
• 'Seed-to-sale' plant tracking software allows full traceability of plants & plant products – important in achieving relevant regulatory approvals
• Extensive security provisions including CCTV, biometric access, risk register & appropriate security management plan

Regulatory Support

• Cann is leveraging its experience with low THC cannabis to cultivate various medicinal cannabis varieties as it continues to secure receipt of necessary permits

Partnerships with Experts

• Technical service agreements with Agriculture Victoria, which has established the first medicinal cannabis cultivation facility in Australia
• Cann will expand into state-of-the-art facilities in Q2 2017 760m² PC2 accredited glasshouse including tissue culture, cell biology & extraction laboratory areas

MANUFACTURING

Building on the IP Portfolio

• Harnessing the biochemical variation that exists between different cannabis strains, producing a wide variety of cannabinoids is a major focus for Cann Group
• Significant opportunity to develop specialised extraction & product handling techniques, to be kept as a trade secret, or patent protected as appropriate

Board & Management Expertise

• Cann's board & management experience will be significant in incorporating advanced cultivation techniques, superior extraction & analysis technologies

GMP Facilities

• Cann's new facilities are PC2 certified (Physical Containment Level 2) & the laboratory certification upgraded/registered to a GMP facility
• The GMP laboratory will be used for plant extraction, cannabinoid analysis, product formulation development &, in some cases, patient dose preparation

Future Revenue Opportunity

• Cann has the opportunity to provide contract cultivation & manufacturing services (extraction &/or dosage preparation) to other parties

KEY INDUSTRY RELATIONSHIPS

As well as Aurora Cannabis Inc., Cann has forged relationships and agreements with leading organisations that add to the business model across various components of the industry value chain

Clinical Evaluation Partner

Cann expanding into world-class greenhouse facilities in 2017 to facilitate access to additional technical resources

Relationship with Canadabased Anandia Labs, a global leader in cannabis genetics. Anandia's Dr Jonathan Page is the first scientist to have sequenced the cannabis genome & make fundamental discoveries about THC biosynthesis. Cann will work with Anandia on breeding programs that will create next-generation cannabis strains optimised to address grower & patient challenges

Agreement to be an exclusive supplier of medicinal cannabis (cannabinoid oil &/or specific formulations) to an Australian based biotechnology company which plans to undertake clinical evaluation of medicinal cannabis for pain in aged care patients

Agreement with Agriculture Victoria to provide Cann with access to elite cannabis genetics, as well as cultivation & extraction technology. Agriculture Victoria is currently growing cannabis & will produce medicinal cannabis treatments to be evaluated in clinical trials that will commence in 2017

Agreement with the Commonwealth Scientific & Industrial Research Organisation (CSIRO)* to undertake cannabis extract analysis of samples of materials cultivated by Cann

THE CANN BUSINESS MODEL

Having secured relevant licenses & permits Cann will breed & grow certain cannabis varieties

These select varieties will yield cannabinoid oils suitable in specific treatments for diseases & medical conditions

Cann to collaborate with & supply a variety of third parties involved in clinical evaluation of medicinal cannabis

With the necessary regulatory approvals, Cann will supply product to the broader patient population

SIZE OF AUSTRALIAN OPPORTUNITY

• Initial demand of up to 8,000kg more than A\$100m potential revenue in year one – growing to A\$380m by 2018 & A\$1.3bn in 2026
• Office of Drug Control (ODC) estimates 20,000m² required for first two years production
• Cann's new facility 600-700m² (3.0-3.5% ODC estimate) with intention to later expand further
• Cann's assessment of patient pools, based on industry body (by condition) data:

CONDITION	PATIENT NUMBERS (TOTAL POOL)
Arthritis	3,850,000
Cancer	130,000
Chronic pain	4,855,000
Epilepsy	146,000
Multiple Sclerosis	24,300
Osteoporosis	652,500
Parkinson's	69,400

• Using current average Canadian pricing & dosage as a guide, with 20% penetration & 30 treatment days per year – total future market value ~A\$1.3bn

Source: Deloitte Access Economics, Modelling the cost of Medicinal Cannabis, Department of Health – Office of Drug Control (23 September 2016) University of Sydney Business School White Paper

SUPPORTIVE REGULATORY ENVIRONMENT IN AUSTRALIA

15

prescribe the drug to those suffering serious & chronic illness from 2017

MILESTONES & NEWSFLOW

CAPITAL STRUCTURE & USE OF FUNDS

DESCRIPTION	NO. OF SHARES	TOTAL UNDILUTED	TOTAL DILUTED
Founding Shares	20,000,000	18.5%	18.1%
Pre-IPO Issued Shares	19,986,668	18.4%	18.1%
Options	13,486,668	12.4%	12.4%
Performance Rights	7,180,000	6.6%	6.5%
New IPO Shares	45,000,000	41.5%	40.8%
Underwriter Fees Paid in Shares	2,700,000	2.6%	2.5%
Total Issued Capital 1	108,353,336	100.0%
Total Options on issue at completion of the IPO: • Underwriter Options	2,000,000		1.8%
Total issued capital on a diluted basis ¹Based on \$13.5m IPO raising, assumes all options are exercised	110,353,336		100.%

DESCRIPTION	ESTIMATED SPEND (\$M)
Construction of purpose-built facility	1.8
Feasibility / scoping study for purpose-built facility	0.5
Construction of grow infrastructure	1.0
Cultivation, manufacturing & other plant & equipment	0.4
Research & Development	2.2
Cultivation	4.2
Participation in clinical studies	0.5
Commercial costs of medical liaison & TGA consultants	0.3
Facilities lease costs	1.1
Administration & working capital	3.0
Balance of expenses of the Offer	0.4
TOTAL	15.52

2 Includes \$2m existing cash

~31m Shares, representing 51% of the fully-diluted pre-IPO register, will be subject to escrow of up to 24 months from Official Quotation on the ASX

BUSINESS MODEL & VALUATION COMPARISON

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BRAND	COMPANY (TICKER)	MARKET CAPITALISATION (A\$M EQV.)*	DOMICILE	BUSINESS MODEL
	Medlab Clinical (ASX:MDC)	156.4		• Nutraceutical products businesses that also engages in pharmaceutical research • Develops biotherapeutics for chronic kidney diseases, pre-diabetes/obesity, depression, musculoskeletal muscle loss associated with ageing and non-opioid pain management
	MGC Pharmaceuticals (ASX:MXC)	65.5		• RTO of MGC into Erin Resources in December 2015 • Medicinal and cosmetics cannabis company with licenses to grow, extract and sell Cannabis Sativa in Slovenia
	AusCann Group (ASX:AC8)	141.7		• RTO of AusCann into TW Holdings in December 2016 • Focus on the cultivation, manufacture and sale of cannabis medicines for a range of conditions and symptoms
	MMJ Phytotech (ASX:MMJ)	122.9		• Cultivations limited to Canada and clinical development limited to Israel. Attempting to develop and control all processes from farming through to pharmacy sales, however focus is entirely on the Canadian market (incl. recreational)
	Creso Pharma (ASX:CPH)	58.3		• Swiss-domiciled company seeking to sell products into Slovakia and The Czech Republic with a focus on the food supplements market for humans and animals
	Zelda Therapeutics (ASX:ZLD)	98.1		• RTO of Zelda into Gleneagle Gold in November 2016 • Research-focused company in partnership with AusCann
	Tilray (Lafitte Ventures)	Private		• Backed by VC, Privateer Holdings (Seattle), focused on building a portfolio of global brands that will lead, legitimise and define the future of cannabis • Partnering with the University of Sydney, NSW Government and Chris O'Brien Lifehouse to conduct a clinical trial studying how cannabinoids can benefit patients with chemotherapy-induced nausea and vomiting (CINV)
	GW Pharmaceuticals (NasdaqGM:GWPH)	3,861		• GW Pharmaceuticals engages in discovering, developing, and commercialising cannabinoid prescription medicines • Global benchmark for medicinal cannabis R&D
	Cann Group (ASX:CAN)	18 (pre-money)		• Cultivator, processor and manufacturer of medicinal cannabis products in Australia • Experienced Board and team who partnered with experts across the value chain (AgVic, etc) to create true Australian "blue chip" offering

* Fully diluted (incl. restricted and escrowed securities, options and performance rights)

Source: CapitalIQ, Company reports

COMPETITIVE ENVIRONMENT: CANADIAN COMPS

As the nearest comparable market to Australia with respect to regulation and demographics, Canada's publicly-listed peers provide data points regarding how the Australian market, and its participants, may evolve and perform over time

BRAND	COMPANY (TICKER)	MARKET CAPITALISA TION (A\$M EQV.)	DOMICILE	KGS PRODUCED (CUMULATIV E)	PRODUCTIO N COSTS (C\$) (CUMULATIV E)	ALL-IN COSTS PER GRAM (C\$) (CUMULATIV E)	CASH COSTS PER GRAM (C\$)(MOST RECENT QUARTERLY)	FY17F REVENUE (CONSENSUS ESTIMATES)	FY17F EBITDA (CONSENSUS ESTIMATES)
	Canopy Growth Corp. (TSX:WEED)	1,572		8,067,045	29,012,000	3.60	2.66	39.5	(4.0)
	Aurora Cannabis Inc. (TSXV:ACB)	868		441,000	725,852	1.77	1.67	33.9	13.8
	Aphria Inc. (TSX:APH)	823		2,338,798	4,402,376	1.88	1.23	22.5	6.3
	OrganiGram Holdings Inc. (TSXV:OGI)	281		1,018,303	2,210,220	2.17	1.29	16.0	4.3
	Mettrum Health Corp. (TSXV:MT)	334*		3,102,718	8,040,221	2.59	2.00	23.0	(2.2)
				Average sale price in Canada is C\$16.12/gram

(with a price range of C\$4.62–\$35.89/gram)

INVESTMENT SUMMARY

Business Model

• Advanced player in the industry long established & first in Australia with licences secured, creating first mover advantage
• Numerous & high barriers to entry licences create incumbency & in time hold substantial tangible value
• Partnerships with tier one organisations/experts across the value chain
• Supportive legislative environment (federal/state/bipartisan support)
• End user market defined clinical trials create immediate revenue opportunity & patients by indication to evolve over time
• Clearly identified steps to fully integrate the value chain

Financial Imperatives

• Low cost production; continuous cropping cycle (equivalent to 4-6 crops per year); 250+ plants per week; (100 - 150g flowering head per plant)
• R&D benefits include increased margin on sales, patient specificity, IP portfolio creation & tax rebate support
• Financial & cash flow imperatives production expansion drives EBITDA, product mix through R&D drives margin

Market Dynamics & Growth

• Rapidly growing market by indication/patient – supported by international trends

People

• Top-class, experienced board & management team

Peter Crock Cann Group Limited Ph: +61 (0)3 9095 7088 E: contact@canngrouplimited.com

INVESTOR / MEDIA RELATIONS Matthew Wright

NWR Communications Pty Ltd Ph: +61 (0)451 896 420 E: matt@nwrcommunications.com.au

CANN GROUP: THE FIRST CANNNABIS LICENCEE IN AUSTRALIA

European jurisdictions that permit medicinal use (in some form) include Czech Republic, THE OPPORTUNITY: AN EMERGING NEW GLOBAL INDUSTRY

MPR and ACMPR regulations govern commercial producers in Canada. Currently medicinal use only, however plans are evolving to open the recreational use market

8 US states (plus District of Columbia) have legalised recreational and medicinal cannabis use; 12 States medicinal use & decriminalisation, 12 States (plus Guam & Puerto Rico) legalised psychoactive (THC), 12 States legalised nonpsychoactive (CBD) only, 1 State (plus US Virgin Islands) decriminalised possession; 5 States possession & sales illegal &

Israel very advanced with respect to legalisation. Significant world-leading cannabis research and product development / enhancement

Regulations now in force for medicinal cannabis use

Finland, Germany, Italy, the Netherlands and Spain

Cannabis legal and / or market well-advanced

Cannabis decriminalised and / or legalisation imminent

Cannabis illegal or limited information

24

Source: The State of Marijuana Markets – 4th Edition, Arcview Market Research & New Frontier

LEGALISED CANNABIS: A NEW INDUSTRY TOO BIG TO IGNORE!

VARIOUS COMMENTS FROM THE LAW REFORM COMMISSION REPORT AUGUST 2015

"Patients' access to cannabis under any regulated scheme is vital to its success. If patients are unable to practically access cannabis, they will not embrace the system and return to buying their medicine from the illicit market. This has been the experience overseas. This has been an important issue in the various iterations of the Canadian medicinal cannabis scheme. In Italy, eligible patients were permitted in 2013 to access imported medicinal cannabis from the Netherlands. However, the imported cannabis was priced at ten times the cost of products purchased on the illicit market, at €38 per gram, or €1,000 per month for a typical patient. As a result, only a 'few dozen' Italian patients signed up for the program. Italy now produces its own medicinal cannabis."

"On 2 December 2015, Victorian Health Minister Jill Hennessy said the state would continue to push ahead with planned state laws to establish a cannabis "cultivation trial" next week, ahead of any national regulatory scheme: "Given the Commonwealth's timelines on this continue to change, we are not prepared to delay the introduction of our legislation at the expense of the Victorian families and children that are desperately awaiting this much need reform.""

A copy of the report can be found here:

http://lawreform.vic.gov.au/projects/medicinal-cannabis/medicinal-cannabis-report-pdf

Forbes: Marijuana Sales Totaled \$6.7 Billion In 2016

North American marijuana sales grew by an unprecedented 30% in 2016 to \$6.7 billion as the legal market expands in the U.S. and Canada, according to a new report by Arcview Market Research.

North American sales are projected to top \$20.2 billion by 2021 assuming a compound annual growth rate of 25%....

To put this in perspective, this industry growth is larger and faster than even the dot-com era. During that time, GDP grew at a blistering pace of 22%. Thirty percent is an astounding number especially when you consider that the industry is in early stages.

Arcview's new editor-in-chief Tom Adams said, "The only consumer industry categories I've seen reach \$5 billion in annual spending and then post anything like 25% compound annual growth in the next five years are cable television (19%) in the 1990's and the broadband internet (29%) in the 2000's."

Source: http://www.forbes.com/sites/debraborchardt/2017/01/03/marijuanasales-totaled-6-7-billion-in-2016/#187a9f3d1871

Medicinal cannabis crops now legal in Australia

AAP 30 October 2016 - Budding cannabis producers can now apply for a licence to grow the crop legally in Australia, for medicinal use only. The Narcotic Drugs Amendment Act 2016, which came into effect on Sunday, allows businesses to apply for a licence to cultivate cannabis or manufacture cannabis products for medicinal purposes, or to conduct related research. Minister Minister Sussan Ley said the changes would give patients and doctors access to a safe, reliable and legal source of cannabis for medicinal use.

"Until now, it has been difficult for patients to access medicinal cannabis products from overseas sources," Ms Ley said in a statement on Sunday. "These new laws change that situation by providing for a domestic supply of medicinal cannabis products that are not readily available for import." She stressed the changes do not decriminalise recreational cannabis use. Licence applicants must pass a security test and meet strict requirements, and individual states and territories will still decide who can use medicinal cannabis. Source: http://www.smh.com.au/national/health/medicinal-cannabis-crops-now-legal-inaustralia-20161030-gse52t.html

Source: http://www.nytimes.com/2015/11/12/technology/marijuana-start-ups-seean-industry-on-the-cusp-of-a-breakthrough.html?\_r=1

"I have no problem with the medical use of cannabis, just as I have no problem with the medical use of opiates," Mr Abbott wrote in a letter dated August 23 2014.

"If a drug is needed for a valid medicinal purpose though and is being administered safely there should be no question of its legality. And if a drug that is proven to be safe abroad is needed here it should be available."

"My basic contention is that something that has been found to be safe in a reliable jurisdiction shouldn't need to be tested again here."

Source: http://www.smh.com.au/federal-politics/political-news/tony-abbott-backslegalisation-of-medical-cannabis-20140917-10i6eb.html#ixzz3tUz9EXio

AFR MAGAZINE Apr 29 2016 at 12:15 AM Why millionaire Barry Lambert invested \$34 million in medicinal cannabis

Source: http://www.afr.com/brand/afr-magazine/why-millionaire-barry-lambertinvested-34-million-in-medicinal-cannabis-20160313-gni315#ixzz4RGshSR84

THE OPPORTUNITY: AUSTRALIAN MARKET SIZE

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Forecasting the potential size of the Australian medicinal cannabis market can be roughly determined using two methodologies

• Methodology 1 assumes Australia only allows for a relatively small number of patients to access highly-refined, pharmaceutical cannabis products
• Such a patient pool would includes those suffering from muscle spasms, seizures, severe vomiting/nausea, wasting and/or severe pain relating to Multiple Sclerosis (MS), HIV/AIDS, cancer, epilepsy or other causes of chronic pain – where it is the view of two medical practitioners that medicinal cannabis may assist in pain management that is superior to what can be provided by other options / treatments
• Based on the recommended THC/CBD dosage for each condition (using currently-available data), an estimate is made for these for the total national demand for these pharmaceuticals based on THC and CBD

content Condition	Patients	Dosage/day/patient	Demand/annum
HIV/AIDS	10,588	10mg THC	38.6kg THC
MS	15,875	20mg CBD, 21.6mg THC	115.9kg CBD, 125.1kg THC
Epilepsy	3,957	300mg CBD	288.8kg CBD
Condition	Dosage/treatment	Treatments/annum	Demand/annum
Cancer	3mg THC	995,827	2.9kg THC

• This equates to 166.6kg THC and 404.7kg CBD demand per annum – however the efficiency at which pure cannabinoids can be extracted from herbal cannabis varies greatly depending on quality of plants, strain, growing condition, extraction methodology, etc, hence it is difficult to predict how this relates to cannabis plant demand

Methodology 1: Demand-Driven by Condition Methodology 2: Peer Country Comparable Usage

• If Australia were to emulate the medicinal cannabis regulations of the Netherlands or Canada, the industry would need to supply at least 8,000kgs of cannabis to patients per annum
• This forecast is based to current patient numbers, which are likely to grow significantly over time – hence, 8,000kg should be assumed to be today's demand and this would be expected to increase

	Israel	Netherlands	Canada
No. Patients	22,000	25,000	30,537
Average daily consumption per patient	1.4g	0.68g	1.1g
National daily consumption	31kg	17kg	33.5kg
National annual consumption	11,242kg	6,205kg	12.260kg
Population of country	8,400,000	16,800,000	35,100,000
Per capita, annual consumption	1.33g	0.369g	0.349g
Projected Australian demand	31,450kg	8,679kg	8,208kg

CANNABIS SPOT PRICE: USA ²⁷

In the US, the average price of cannabis, as illustrated in the Overall Index (which includes pricing data for 7,346 different products), is US\$11.22/gram (A\$14.96/gram)*

The Overall Index displays the mean average price across all currently tracked cannabis Flower products (variously known as Flowers, Indica, Sativa, or Hybrid) which were advertised for retail sale in the specified quantity, location and period, along with historical statistics. For those retailers which offer a multi-tiered pricing structure, all prices used for calculations are Member prices.

5 Highest Prices (of 2,971 products) in the USA (US\$/gram) 5 Lowest Prices (of 2,971 products) in the USA (US\$/gram)

Price	Product	Vendor	Location	Price	Product	Vendor	Location
21.00	7 Points Moon Puppies	Eugene OG	Eugene, OR	4.00	Sherbet Cookies B Buds	Bridge City Collective – North	Portland, OR
21.00	So Fresh Betty Hayes	Eugene OG	Eugene, OR	4.00	Huckleberry Kush [B Nugs]	New Vanserdam Medical – Beaverton	Portland, OR
21.00	So Fresh Black Betty	Eugene OG	Eugene, OR
				4.00	GSC B-Buds	Bridge City Collective – North	Portland, OR
20.00	Banana OG	Herbal Solutions	Ann Arbor, MI
				4.00	Blue Dream B-Buds	Bridge City Collective – North	Portland, OR
20.00	Betty Hayes sofresh farms	Oregon's Finest	Portland, OR	5.00	TRAINWRECK by LIFTED	Emerald City Medicinal	Eugene, OR

US MARKET TRENDS

While the US market operates under a different regulatory regime than Australia, growth trends illustrate a rapidly growing domestic market that will likely present opportunities to Australian medicinal cannabis producers in time

GROWTH OF LEGAL MEDICAL & ADULT USE MARIJUANA SALES 2014-2020

GROWTH IN US LEGAL MARIJUANA SALES

Source: The State of Legal Marijuana Markets – 4 th Edition, Arcview Market Research & New Frontier

UNDERSTANDING THE COMPOUNDS: CBD VS THC

THE TWO MAIN INGREDIENTS OF CANNABIS ARE CANNABINOL (CBD) AND TETRAHYDROCANNABINOL (THC); EACH WITH DIFFERING ACTIONS

Cannabinol (CBD) and tetrahydrocannabinol (THC) are the two main ingredients in the cannabis plant; a unique class of compounds known as cannabinoids. High-CBD strains are less common

1. The High

• THC is probably best known for being the psychoactive ingredient in cannabis. CBD, however, is non-psychoactive. In other words, CBD can't get you high. While disappointing to recreational users, this unique feature of CBD is what makes it so appealing as a medicine.
• Doctors usually prefer treatments with minimal side effects, which has been a major barrier to the acceptance of THC. Likewise, CBD has been used to treat younger children with various ailments

2. Anxiety

• THC is known to cause some people to feel anxious or paranoid. But CBD is believed to have the opposite effect. In fact, studies show that CBD works to counteract the anxiety caused by ingesting THC. A number of studies also suggest that CBD can reduce anxiety when administered on its own

3. Antipsychotic

• In addition to being nonpsychoactive, CBD seems to have antipsychotic properties
• Researchers believe that CBD may protect cannabis users from getting too high by reducing the psychosislike effects of THC. However, regulating the mind-altering activity of THC isn't all that CBD is good for
• On its own, CBD is being tested as an antipsychotic medicine for people with schizophrenia

4. Sleep

• One of the most common uses of cannabis is as a sleep aid. THC is believed to be responsible for most of cannabis' sleep-inducing effects. On the other hand, studies suggest CBD acts to promote wakefulness, making CBD a poor choice as a sleep medicine

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• The opposite effects of CBD and THC on sleep may explain why some strains of cannabis cause users to feel

BENEFITS OF MEDICINAL CANNABIS