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The Hydroponics Company Limited ACN: 614 508 039 (ASX:THC)
Level 2, 131 Macquarie Street, Sydney, NSW, Australia. 2000
p: +61 2 9251 7177
www.thcl.com.au
ASXRELEASE(16thMay2017)
PROACTIVEINVESTORPRESENTATION The Hydroponics Company Limited (ASX: THC) is pleased to advise that Dr Andrew Beehag, Chief Executive Officer of Canndeo Limited, THC’s medicinal cannabis division, will be presenting at Proactive Investors’ Spotlight CEO Sessions Series in Melbourne today.
In accordance with ASX Listing Rule 3.1 please see the attached updated Investor Presentation.
Dr Beehag will also be presenting to investors in Sydney tomorrow, Wednesday 17th May.
Henry Kinstlinger Company Secretary
The Hydroponics Company Limited Level 2, 131 Macquarie Street, Sydney, NSW 2000 Australia
P: +61 2 9251 7177 M: +61 418 613 028 E: [email protected]
A l e a d i n g , g l o b a l c a n n a b i s b u s i n e s s
InvestorPresentationMay2017
ASX:THC
DISCLAIMER
2
Thematerialinthispresentation(material)isnotanddoesnotconstituteanoffer,invitationorrecommendationtosubscribefor,orpurchaseanysecurityinTheHydroponicsCompanyLimited(THC)nordoesitformthebasisofanycontractorcommitment.THCmakesnorepresentationorwarranty,expressorimplied,astotheaccuracy,reliabilityorcompletenessofthismaterial.THC,itsdirectors,employees,agentsandconsultantsshallhavenoliability,includingliabilitytoanypersonbyreasonofnegligenceornegligentmisstatement,foranystatements,opinions,informationormatters,expressorimplied,arisingoutof,containedinorderivedfrom,orforanyomissionsfromthismaterialexceptliabilityunderstatutethatcannotbeexcluded.Statementscontainedinthismaterial,particularlythoseregardingpossibleorassumedfutureperformance,costs,dividends,productionlevelsorrates,prices,resources,reservesorpotentialgrowthofTHC,industrygrowthorothertrendprojectionsare,ormaybe,forwardlookingstatements.
Suchstatementsrelatetofutureeventsandexpectationsand,assuch,involveknownandunknownrisksanduncertainties.Actualeventsandresultsmaydiffermateriallyfromthoseexpressedorforecastedinforward-lookingstatementsduetoanumberoffactors.TheprincipalimportantriskfactorsthatcouldcauseTHC’sactualperformanceandfutureeventsandactionstodiffermateriallyfromsuchforward-lookingstatements,include,butarenotlimitedto,continuingvolatilityinthecapitalorcreditmarketsandotherchangesinthesecuritiesandcapitalmarkets,changesinmarketpricesofTHC’sinvestments,theoccurrenceofoneormorecatastrophicevents,suchasanearthquake,hurricane,oractofterrorism,changesinlawsorregulations,changesinincometaxlaws,andchangesingeneraleconomicandmarketfactorsthataffectthepricesofsecuritiesortheindustriesinwhichitdoesbusiness.
Thispresentationincludescertainstatements,estimatesandprojectionsthatrelyuponvariousassumptions.Thoseassumptionsmayormaynotprovetobecorrect.ThePresentationdoesnotpurporttocontainalltheinformationthataprospectiveinvestormayrequire.Theinformationmaynotbeappropriateforallpersons,anditisnotpossibleforTheHydroponicsCompanyLimitedtohaveanyregardtotheinvestmentobjectives,financialsituationandparticularneedsofeachrecipientwhoreadsorusesthisinformation.
THE HYDROPONICS COMPANYCANNABIS IS THE WORLD’S NEW HIGH GROWTH SECTOR
Medicinalcannabisdivision–pharmaceuticalmodelforAustralia
targetingest.$100mmarket
Newtechnologyinwaterpumps,waterpurificationandcannabisgenetics
Hydroponicsdivisionwithmorethan5yearsprofitabletrading
End-to-endcoverageofcannabismarketswithsignificantsynergies
Greenhousedivisionenablingnext-generationindoorfarming
Morethan17yearsofcannabisgrowingexperience
3
Positionedforfutureacquisitionsinternationally
SHARE STRUCTURE
SharePrice SharesonIssue FreeTradingShares
EscrowedShares MarketCap Top20% NumberofShareholders
THC:34cTHCO:11.5c
104.1million
47.1million
57.0million
$35.4million
46.3% 1450(IPO:752)
TheHydroponicsCompanyLimitedat15May2017
ASX:THC
4
PORTFOLIO APPROACH TO CANNABIS
5
WhyDiversify?
Multiplebusinesstypesincannabisspace
Manylistedcompanieshavenorevenue
Optionsfordiversification• Selfmanageddiversified
portfolio• ETFinmedicalmarijuana
Cannabisisanewinvestmentsector
Growthopportunitiesareglobalanduneven
PORTFOLIO APPROACH TO CANNABISContinued
Separatedivisionsforfarmestablishment,growingsupplies
andmedicinalcannabis
Multiplesectorexposure,eachwithhighgrowthpotential
ExposuretoUSA,Canada,CentralAmerica,Europe,
AustraliaExpansionthroughnewtechnologyintroduction
6
Profitablehydroponicsdivision
Positionedforfutureacquisitionandfurtherpositivediversification
CANNABIS IS A THRIVING OPPORTUNITY
7
USALegalCannabismarket(medicinal+recreational)
estimated
US$20Bby 2021
USCannabis-relatedestimatedindustryrevenues
US$24B-US$44Bin2020
89%oftheUSsupportdoctorrecommended
medicinalcannabis
US
29USStates+DCmedicinalcannabislegalised7USStatesrecreationalmarijuanalegalised
Canada
Medicinalcannabislegalised
1July2018legislationofrecreationalmarijuana
Australia
Greatdemandpotential
1.8mpatientswithneuropathicpain
CANNDEO
Thisdivisionaimstoleadthedevelopmentoftherapeuticallysuperior,paramountqualityandcosteffectivemedicinesderivedfromCannabissativa.
Growing&ExtractionTechnology
ProductDevelopmentDeliveryMethods
AustralianManufacturing
SalesofProprietaryMedicines
FutureIPResearch
8
ConvertinguniqueintellectualpropertyincannabisbreedsandextractiontechnologytoapprovedproductsfortheAustralianmarket
A NEW CLASS OF MEDICINAL PRODUCTSAustralia
Clearstrategyforbringingmedicinalcannabistothe
Australianmarket,estimatedat$100-400m
+17yearsofCannabissativabreeding,varietyselectionand
growthmanagement
CollaborativeR&D discovery projects formedicinalcannabis
Target multiple markets withhighpuritycannabidiol (CBD)
ProductionunderGovernmentlicensing program
Anewclassofmedicinalproductstargetingdementia,neurological,epilepsyandotherdisorders
Pursuingapharmaceuticalmodel
9
EP IGENET IC T ECHNOLOGY I PInnovativePlantBreedingforacceleratedgrowthandhigherreturn
NoforeignDNAintroduced
Non GMO
Quickerandhigherreturnstobreeders
Grows 33% to 40% faster
Thriveundermyriadenvironmentalstressors
Selectively bred
Idealcandidatesforgenesilencing
Stable
10
HYDROPONICS DIVISIONHydroponicequipmentandnutrients
11
ThecornerstoneofTHC’s
acquisitions
NewdistributionacrossUSAandEurope
Tradingprofitablyfor5+years
acrossCanada,UK,EUandUSA
22%increaserevenue1stQtr 2017
Over600products,9trademarks
Strongdistributionnetworks
DISTRIBUTION
Proprietarytrademarkedproductsinclude:
• Lightingandpowersupplies
• LightingrelaysandClimatecontrol
• VentilationandTrimming
• Extractionbags
• Plantrotationsystems
• Eyewear
• Nutrientsandaccessories
100%owned byTHC
WholesalenetworkintheUS,CanadaandUK
StrongsourcingandqualitycontrolteaminChina
FastpacedandinnovativeR&DDivisionwithincreasedresourcesofferingconsiderablegrowth
potential
12
MANUFACTURING
Exclusivelicenseforhydroponicsmarketdistribution
INNAWATER WATER STERILISATION AND CONDITIONER SYSTEMS
SUPA-STELTH WATER PUMPS
Innovativepumpsthatminimiseelectricityconsumption
Exclusiveinternationalmarketinganddistributionrightsfor
hydroponicandindoorfarming
Awardwinningchemicalfreewaterpurificationsystems
NEW PRODUCTS IN 2017
13
Awardwinningsystems,exclusiveworldwidelicence,internationaldistributionrights
ADVANCED HYDROPONIC GREENHOUSES
A&BHydroponicsisaworldleaderinthefieldofhydroponics,specializinginthedesignand
manufactureofthefinestcommercialhydroponicgreenhousesandgrowingsystemsavailableforany
typeofenvironment
THC hasalsosecuredtheexclusiveservicesofagronomistJimBarlowtorepresentTHCthroughouttheAmericastodeveloplarge
commercialhydroponicgreenhouses
14
OUR EXPERIENCED BOARD
15
MaryVerschuerNon-ExecutiveDirector
Experiencednon-executivedirectorwithmorethan20yearsinseniormanagementincludinginitiating,executingandintegratingacquisitions
AlanBeasleyChairman
Morethan30yearsininvestmentbankingandmanagement,withseniorrolesatBankersTrustAustralia,GoldmanSachsandBNPParibas
IanMuttonNon-ExecutiveDirector
Practicingdirectorofalawfirmspecialisingincontractrelatedmatters,competitionandproductliabilitylaws.Ianalsoassistslistedcompaniestoimplementsystemsthatareintendedtoensureongoingcompliancewiththelistingrulesandregulations
PeterWallaceNon-ExecutiveDirector
Morethan30yearsexperienceasacompanydirector,withacareerthatspansprivateequity,corporateadvice,non-executivedirectorshipsandfinancialcontrol.
HamishMacDonaldChiefExecutiveOfficer
Extensivebiotechnologyexperience.Spearheadeda500MWHIndianofftakeagreementwithClenergen Ltd,formingajointventurewithLinc EnergyLtd
JohnHallExecutiveDirector
Over30yearsinplantbreeding,cropmanagementandmonitoringsystems,includingmajorAustralianinnovations
THANK YOUTheHydroponicsCompanyLimitedwww.thcl.com.auwww.crystalmountainproducts.comwww.canndeo.com
HamishMacDonald- CEOLevel2,131MacquarieSt,Sydney2000+61-9251-7177HenryKinstlinger – CompanySecretary+61-418-613-028