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Investor Presentation January/February 2018
TSX-V: ABCN
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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 operating performance 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; the expected future evolution of the cannabis industry, including w respect of consumer touch, branding and promotion; ABcann’s product differentiation; expected market growth and market scope; ABcann’s proposed capacity expansion plan; ABcann’s proposed acquisition of Harvest Medicine Inc., the expected benefits of such acquisition, and the expected increase in 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 in respect of product lines, geographic expansion, building of capabilities and capacity and development of key strategies; and ABcann’s potential future revenue drivers. In addition, this presentation contains future oriented financial information (“FOFI”), including statements regarding expected capital expenditures and revenue projections, which speaks only as of the date 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 its business 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 provide prospective 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-looking statements 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 differ materially 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 of which 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 are not 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 on favourable 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 of Harvest 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 is not exhaustive. When reviewing the Company’s forward-looking statements and FOFI, readers should carefully consider the foregoing factors and other uncertainties and potential events. 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 information or 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 health benefits 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 and conclusions 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 in Canada 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 required by 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 Identification Number (DIN).
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Cannabis Industry Overview
Cannabis has great therapeutic potential and has been used for centuries for medicinal purposes.
Over 100 Cannabinoids Identified:
• Best known cannabinoids: THC and CBD• Sourced botanically (complex process) or synthetically
(simple process)• Effective as stand-alone therapies or in combination
(the ‘entourage effect’)
Significant Health Benefits:
• Over a thousand medical papers have been published related to cannabinoid use
• Pain, Multiple Sclerosis, Spasticity, Epilepsy, Parkinson’s Disease
• Cancer treatment, Cancer pain, Cancer-induced Nausea and Vomiting (CINV)
• Anti-inflammatory (e.g. Inflammatory Bowel Disease, Arthritis)
• Dermatological Indications (e.g. psoriasis)• Psychiatric Disorders (e.g. Anxiety, PTSD,
Sleep, Addiction)
Brightfield Group predicts the regulated market will grow globally to over $40B by 2021
- Forbes Magazine (Nov 2017)
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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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Business Foundation
VISIONTo be a top 5 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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Revenue Projections
2017 2019 2021+
ABcann Revenue$1M $500M
Global Market Opportunity $2B $40B
30%
20%
50%
$500M Revenue *
75 TonsVolume *
Presence established in 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
ABcann Global in 60 Seconds
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Barry FishmanProven Business Builder
• Led Merus Labs (TSX, NASDAQ) for 3 years resulting in a compound annual growth rate above 50% and culminating in a cash sale for $342 million in July 2017
• Former CEO of Teva Canada ~$1B Revenue, ~5 billion capsules/tablets of GMP production -Generics and Specialty Pharmaceuticals
• Experience serving as a Director of public companies in the Cannabis Industry
• Past Chair of the Canadian Generic Manufacturers Association - a $5 billion dollar industry
• Track record of success as the CEO of 3 complex, highly-regulated organizations with international operations
• Significant deal-making, M&A and capital raising experience
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Outstanding Board & Advisors
Former Canadian CEOs: Capital Market Experts: Leading Scientists:
1010
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
Napanee17 tons
Domestic Greenhouse
23 tons
3rd Party Supply35 tons
Well-capitalized balance sheet with $70M in cash to fund future growth
75 tons in 2021 = $500 million in revenue
Capacity Phases(Tons at Year End)
Phase 1 (2018): 15
Phase 2 (2019): 35
Phase 3 (2020): 55
Phase 4 (2021): 75
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Go-to-Market Differentiators
Medical Science Premium Classic
Medical Clinics(scalable expansion)
Innovative Therapeutics (indoor controlled & GMP)
Craft Organic(indoor controlled grow)
Traditional Line(3rd party & domestic
greenhouse)
Regulated cannabis is a disruptive global industry and companies that continuously innovate will emerge as winners
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Medical Cannabis Clinic Acquisition
• 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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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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Creating theFoundation
Scaling-upfor growth
Growth Plan
2016 2017 2018 2019 2020 2021+2014 2015
1• Pilot scale capabilities• Initial product line • Improved balance sheet• Strengthened team
2• Product line expansion • Geographic expansion• Build capabilities and capacity • Develop key strategic partners
Phase 1 Phase 2
Building the platform Growth and scale
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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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Geographic Expansion
Domestic Medical
In February 2016 ABcann started selling medicinal cannabis in Canada.
ABcann Global is well positioned to grow internationally.
In January 2018 ABcann was granted an Australian Import License
Foothold established in Canada, Germany, Australia and Israel
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Current Common Shares Outstanding 156.0
Current Debentures (1.39 w/average exercise price) 22.3
Warrants (0.51 w/average exercise price) 15.6
Options/RSU’s 13.8
Total Issued and Outstanding 207.7
Daily Volume 2.0
Market Cap 273.0
Cash Balance $70.0
As of January 2, 2018 – Millions (CAD)
Financial Summary
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Our Real Competitive Advantage
Nimble. Responsive. Focused.
Talented Team
Entrepreneurial Spirit
Thank You!
2020
Chief Financial Officer
Michael [email protected]
Headquarters
126 Vanluven RoadNapanee, ON K7R 3L2Canada
Chief Executive Officer
Barry [email protected]
Contact InformationTSX-V: ABCN
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AppendixTeam Bios
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Executive Team
Barry FishmanChief Executive Officer
20 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, and
was VP Marketing at Eli Lilly Canada and past Chair of the Canadian
Generic Manufacturers Association.
Dr. Michael BumbyChief Financial Officer
20 years of experience in pharmaceuticals, previously CFO of
three publicly held Canadian companies - most recently as CFO of
Merus Lab. Key roles at Eli Lilly, including leading international BD activities for early and late stage
assets at Lilly’s 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 as General Counsel, drafting and submitting the initial Health Canada license application
Sung KangChief Marketing Officer
Over 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.
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Executive Team (continued)
Jenny GuanVP, Napanee Operations
An initial team member at ABcannwith over 15 years experience in various key leadership roles in
business operations and finance
Neil KappVP, Business Development
30 years managing businesses in commercial development and recreation. Previously served as a managing partner
and CFO of several companies.
Randy UensVP, Product Development
A serial entrepreneur who successfully developed the Rhinobag/Bagster, an
alternative to using metal waste bins, and sold to Waste Management Inc.
John MolloyExecutive Consultant
Former CEO of PARTEQ Innovations at Queen's University. Led to the
formation of 48 companies based on Queen's research.
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Board of Directors
Ken ClementVisionary founder of ABcann
with a large network of global cannabis contacts
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
