AI assistant
Pharmocann Global Ltd. — Investor Presentation 2020
Aug 23, 2020
6981_rns_2020-08-23_88973ef6-a580-4086-bccb-781899f84ba1.pdf
Investor Presentation
Open in viewerOpens in your device viewer


Pharmocann Investors Presentation
August 2020
Forward Looking Statement
This presentation was prepared by Pharmocann Global Ltd. (the "Company") and should not be considered as solicitation or an offering for the purchase or sale securities and/or investing in the Company. This presentation's sole purpose is informative. The information included in the presentation and any other information provided within the course of the presentation (the "Information") shall not be deemed a basis for investment decisions and does not constitute a recommendation, an opinion nor a substitute to the investor's discretion and judgement, to nor investor's independent and separate actions of diligence, review and analysis. The Company is not responsible, nor shall it be liable for any damages and/or any loss that might result from using the Information.
In addition, this presentation may include forward-looking statements, as defined in the Israeli Securities Law, 5729- 1968 ("Forward-looking statements"). Forward-looking statements are not a proven fact and are based on the Company's current subjective assumptions, estimations and forecasts.
The realization or non-realization of the Forward-looking statements may be affected from risk factors that characterize the Company's operations, as well as from developments in the competitive and business environment and from external factors that influence the Company's operations, which cannot be foreseen and which are not controlled by the Company. Forward-looking statements are not provided as facts, accurate, and is based on speculations, assumptions and subjective forecasts of the Company on the date hereto. Therefore, Forward-looking statements, in whole or in part, might differ substantially at any time as a result of the influence of various factors, including but not limited to changes in market conditions and/or in the business environment and/or in market competition. The results and achievements of the Company in the future may be materially different than those presented in this presentation. In addition, Forward-looking statements and evaluations are based on current information and data which the Company possess on the date hereto, and the Company does not commit to update such evaluations in order to take into account events and/or circumstances occurring after the preparation of this presentation.
Mission & Vision
Led by deep know-how and passion for serving its patients and consumers, Pharmocann's mission is to be a key player both in the domestic and global cannabis industry.
Through an unrelenting commitment to our people, product quality and innovation, develop a large-scale growth and long-term, sustainable profitability.

"Pharmocan is one of the leaders cannabis companies in Israel and it is an honor for us to work with them and I am confident that this collaboration will lead to great achievements and commercialization of few products".
Prof. Dedi Meiri
Why Us?
It's our DNA
One stop shop
360° holistic experience – from genetics, through cultivation to end products and patients/consumers

Unique IP
innovation platform Inhouse products formulation. Unique strains.

Israeli veteran Cannabis company
12 years of proven experience, with a solid patients data base
Our Team

Dan Gillerman Chairman of the Board

Gil Hovesh Chief Executive Officer

Dan Edelman Chief Strategy Officer

Avital Perlestein Chief Financial Officer

Roei Hovesh Chief Operation Officer

Tsahi Cohen VP Business Development

Pharmocann In Numbers

Pharmocann is a Leading Cannabis Producer and Product Innovator

Global Expansion
Israeli Market Pioneer & Leader

Pharmocann is a Leading Cannabis Producer and Product Innovator

Both Medical & Wellness Industry Listed in TASE ("PMCN")

Pharmocann's Journey
| 2008 | 2010 | 2013 | 2019 | 2020 |
|---|---|---|---|---|
| § Cultivation license received § First facility established |
§ Inhouse development of first strains |
§ New, and current facility establishment, located in the north of Israel § Formulations for First wellness products |
§ IMC-GAP certification § Start trading at Tel Aviv stock market (TASE) § Tissue culture first batch § Joint venture for Astaxanthin based addons to food supplements and cosmetics products § Supply to pharmacies, align with new regulation. § Cooperation with Max Stern Yezreel Valley College |
§ Successful tissue culture flowering § Agreement with Ein Hatseva farm and Bazelet § Kickoff mushrooms research with Shamir Research Institute § Progress on a research with the Technion using Pharmocann's strains § Establishment of Joint venture in Australia - agreement signoff |
Leading Through The Value Chain
Since its establishment 12 years ago Pharmocann accumulated unprecedent database, gathered through direct feedback from its thousands of recurring patients. This highly valued data base has significant R&D and strategic advantages.

Tissues lab & new innovative strains development

Cultivation & manufacturing

Vast extraction & production* know-how

Proven distribution and patients support capabilities
*manufacture by sub contractor (IMC-GMP certificate authority)
Leading Through The Value Chain
Since its establishment 12 years ago Pharmocann accumulated unprecedent database, gathered through direct feedback from its thousands of recurring patients. This highly valued data base has significant R&D and strategic advantages.

High end products development

International projects

Cooperation with leading Cannabis research institutes


Our Portfolio

Medical Cannabis Products




Oils
Suitable for kids, elderly and non-smoking patients
Semi-Firm Oil*
Contains active cannabinoids. Evident values for relief of bedsores and diabetic soresfast, pain relief & skin disease treatment
Pre-rolled Cigarettes Precise weight
per each cigarette
Dry Flowers 13 strains, for smoking/vaporizing
*Currently due to medical cannabis regulation it is prohibited for sell in Israel subject to regulatory clarifications of the updated Israeli cannabis export regulation it could be possible to manufacture the product in Israel solely for export. The products can contain CBD or hemp seed oil in accordance with the local regulation in each destination country as of June 2020 in Israel only usage of hemp seed oil is allowed in cosmetic products.
Wellness Products Cosmetics and skin care line
Unique in house formulated products, based also on our experience and accumulated knowhow in producing and administering to patients in Israel skin care semi -firm oil medical products. Containing CBD/Hemp seed oil, terpenes and only natural ingredients


Cosmetics Products Line* For both men & women
Derma-cosmetics Product Line*
Series of products, aimed at relieving symptoms of Atopic Dermatitis & Eczema
*Currently due to medical cannabis regulation it is prohibited for sell in Israel subject to regulatory clarifications of the updated Israeli cannabis export regulation it could be possible to manufacture the product in Israel solely for export. The products can contain CBD or hemp seed oil in accordance with the local regulation in each destination country as of June 2020 in Israel only usage of hemp seed oil is allowed in cosmetic products.
Astaxanthin (Red Algae) based products

Astaxanthin is a product of red algae and has benefits among others, with regard to skin protection and wrinkle reduction. Through a process of trial and error, Pharmocann's formulators were able to reach a balanced combination between the Astaxanthin and CBD and produce well textured products. this line of products contains face serum, acne, stretch treatment, sunscreen and burns, relaxation gel products.



Partner With Us Unique Business Opportunity


Partnerships

Ein Hatseva Farm
- Cooperation to grow Pharmocann's genetics in a 18 dunam farm, located in Southern part of Israel
- 3 years contract, where all of the farm's yield will be solely sold to Pharmocann & Bazelet Nehushtan
- An important milestone, that will allow Pharmocann increase its yield capacity, and strengthen its position, both in the local and global markets
- The expected revenues for the first year of the cooperation estimated at approx. 30M NIS.

Shamir Research Institute

- Cooporation to develop medicines, based on the active ingredients Psilocin and Psilocybin, contained in Psilocibae mushrooms family
- 10 strains of mushrooms, will be used for the research, as well as its medical Cannabis strains
- As part of the research, the effectiveness of mushrooms, combined with medical Cannabis treatment will be explored
- Aiming to perform researches in several indications, such as: Alzheimer, depression and antibiotics substances.

For additional information please refer to the announcement released on August 16th, 2020 (2020-01-088863)
Technion Israel Institute of Technology

- Long term cooperation with the Cannabis research lab of the Technion, headed by professor Dedi Meiri
- As part of a Technion Israeli database project, Pharmocann's genetics/strains are used for researches in the fields of cancer, multiple sclerosis, sleep disorders, epilepsy and more
- As provided to the Company, According to initial indications, Pharmocann strains are more effective on multiple sclerosis and sleep disorders. (based on test performed on mouse)

For additional information please refer to the announcement released on July 22th, 2020 (2020-01-077544)
Joint Venture In Australia
- Cann Global LTD Traded in Australia stock market under the symbol: "CGB"
- Australian license, for cultivation, production and exporting medical Cannabis
- Distribution operation of CBD/Hemp seed oil based cosmetics in Australia, China and the Far East region
- Branded as Pharmocann
- Initial financing for manufacturing & marketing CGB (up to 2M\$) and 50K\$ by Pharmocann
- 35% equity of the partnership company
- Phase #1 production of hemp seeds oil based skin care and Derma-cosmetics products is planned in Q4/2020

- Israeli based company
- Puremocann Engages in research, development and manufacturing, creating a variety of Cannabis & Red Algae based products
- Engaged in the process of applying for a cultivation license in Utterekand, India
- 50% equity of the partnership company




Innovation Platform as a Growth Engine


Tissues Culture Lab
- Established 2018
- Deep know-how, leveraged by cooperation with world known domain leaders
- Using innovative methods for producing a sterile clones, which significantly reduces the risk of diseases, and as a result, allows TCO reduction
- First batch produced during 2019
- First full flowering in a lab setup* Targeting pharmaceutical industry supply
- Produced both for internal use, as well as commercial offering to other farms


Clinical Research - Cooperation with Leading Research Institutes in Cannabis Domain
Potential joint research with the Technion Institute and Rambam Hospital
Treat "Atopic Epidermis" (skin eczema) about to start a clinical research, per the Helsinky edited protocol, introduced to the "Israel Medical Cannabis authority", as a joint venture with Rambam Hospital Plastics Department
Potential derma cosmetic clinical trial
Process of conducting cosmetic clinical trials on the product aimed at relieving atopic dermatitis symptoms
with the Technion and Rambam hospital as well as laboratories in Europe

Financial Data P&L Results (Non-GAAP*)
| H1 2020 | 2019 Thousand NIS |
H1 2019 | |
|---|---|---|---|
| Revenues | 13,872 | 20,880 | 8,933 |
| Gross profit | 10,299 | 12,027 | 5,495 |
| % gross margin | 74% | 58% | 62% |
| Operating profit | 5,264 | 5,618 | 3,388 |
| Net profit | 4,215 | 4,217 | 2,654 |
| % Net profit | 30% | 20% | 30% |
* Excluding profits from change in fair value measurement, one-time M&A expanses and share base payments

Pharmocann Constant Growth Momentum

CAGR - 31%


Thank you
Pharmocann.com
