MEDICAL CANNABIS - 'The Next Big Billion Dollar Market Investors Are Rushing To - MEDICAL CANNABIS - Avise Analytics
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The Next Big Billion Dollar Market Investors Are Rushing To
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MEDICAL CANNABIS
Now Legal MEDICAL
in Australia
CANNABIS
Now Legal in Australia
1
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OVERVIEW
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Global medical marijuana market size was valued at US$11.4bn in 2015 and is projected to grow with CAGR of
17.1 % to ~US$55bn by 2025 (Grand View Research) whereas legal cannabis sales in the US reached
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US$7.4bn in 2016 and are projected to grow at a CAGR of 30% to ~US$21bn by 2020 (ArcView Market
Research).
13.1mn
89%
Of Americans Support
People Cannabis The Legalization Of
Dependent Globally Marijuana For Medical
On 30 October 2016, Australia legalizes cultivation and the use of medical marijuana, although it will remain Treatment
strictly controlled. The new importation rules introduced in February are making medicinal cannabis products
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more readily accessible to Australian doctors.
9 Cannabis Stocks Soar >
Cannabis products made from Australian grown medicinal cannabis crop could be in use as early as 2017. The medical cannabis 130% in Australia during
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government has received applications from 25 companies to grow and manufacture medical cannabis product. companies are now Listed
in ASX versus 2 in 2015.
1Q CY17
Aussie cannabis companies can even target rapidly growing international market. As of Apr’17, Cannabis is
allowed for medical use in countries including 29 US states, France, Canada, Germany, the Netherlands,
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Uruguay, Chile, the Czech Republic and Israel. 8000Kg ~700
Estimated yearly demand
Number medicinal use of
for legalised medical
Cannabis.
In May, the first 2 imports of medicinal cannabis arrived in Australia. Children suffering from epilepsy and cannabis
patients dealing with side effects caused by cancer treatment are most likely to benefit from these products.
MEDICAL CANNABIS 2
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WHAT IS MEDICAL CANNABIS? 55%
THE #1 REASON PEOPLE
USE CANNABIS FOR
RELAXATION
The term medical marijuana refers to using the whole, unprocessed marijuana plant or its basic extracts 40%
to treat symptoms of illness andSample
otherbyconditions.
Avise Analytics
The Private
U.S.Limited
Food and Drug Administration (FDA) has not OF PEOPLE WANT TO
recognized or approved the marijuana plant as medicine. However, scientific study of the chemicals in RELIEVE STRESS OR
marijuana, called cannabinoids, has led to two FDA-approved medications that contain cannabinoid ENJOY SOCIAL
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chemicals in pill form. Continued research may lead to more medications.
EXPERIENCE
Because the marijuana plant contains chemicals that may help treat a range of illnesses and symptoms, 39%
many people argue that it should be legal for medical purposes. In fact, a growing number of states in the OF PEOPLE WANT TO
US and many other countries including Australia have legalized marijuana for medical use. REDUCE ANXIETY
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DIFFERENT WAYS TO CONSUME MEDICAL CANNABIS
29%
1. Smoking medical cannabis 2. Vaporizing medical cannabis
WANT TO IMPROVE
3. Edible medical cannabis 4. Tinctures and tonics 5. Topical Products SLEEP QUALITY
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HOW MIGHT CANNABINOIDS BE USEFUL AS MEDICINE?
The two main cannabinoids from the marijuana plant that are of medical interest are: 26%
Δ9-Tetrahydro-cannabinol (THC) and Chemical Cannabidiol (CBD). USE CANNABIS FOR
PAIN MANAGEMENT
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UNDERSTANDING THE MEDICAL BENEFIT OF THESE COMPOUND?
THC – Psychoactive Chemical CBD– Non-psychoactive Chemical 16%
WANT
• EASES PAIN • REDUCES DRAVET SEIZURE TO
• HELPS WITH RELAXATION • KILLS CANCER CELLS STIMULATE
• SUPPRESSES PAIN FROM NERVE DAMAGES • STIMULATE BONE GROWTH CREATIVITY
• REDUCES RISK OF NERVE DAMAGE • ANTI-INFLAMATORY PROPERTIES
• SUPRESSES MUSCLE SPASMS AND CONVULSIONS • ANTI-OXIDANT PROPERTIES 26%
• ANTI-PSYCHOTIC WANT TO TREAT A
MEDICAL CONDITION
Source: New Frontier Data
MEDICAL CANNABIS 3
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MEDICINAL CANNABIS TREATMENTS
The table summarises the conditions which THC and CBD are known to be able to treat. This list is neither exhaustive nor
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definitive. It is here only to provide a snapshot of the current state of cannabis research.
CONDITIONS TREATMENT SOURCE OF TREATMENT WHY PEOPLE USE CANNABIS (BY
GENDER)
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CBD Limited
THC Both
Strength of
evidence Stress Relief 45%
37%
Pain Reduction Sativex High
Aids/HIV 38%
Appetite Stimulation And Weight Gain Dronabinol (Marinol) High Reduce Anxiety 25%
Alzheimer’s Disease Inhibition Of Neurodegeneration Injected (still in experimental phase) High
Arthritis
Sample byJointAvise Analytics
Destruction Suppression
Private
Oral Or Limited High
Pain Management 23%
31%
Injected
Improve Sleep 35%
Nausea And Vomiting Due To Quality 25%
Reduce Nausea And Vomiting Oral: Nabilone & dronabinol (Marinol) Sativex High
Chemotherapy
Cancer Pain Reduction Smoked Nabiximols High 14%
Nausea Suppression
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6%
Diabetic Peripheral Neuropathy Pain Reduction
Aerosolized, Oral: Nabilone High
Source: New Frontier Data Female Male
Multiple Sclerosis Improve Spasticity Oral: Dronabinol (Marinol) & Nabilone Sativex High
Anxiety And Depression Improvement In Mood Scale Dronabinol (marinol) & Nabilone Sativex High TOP 10 TRACKED CANNABIS
THEREPIES (WORLDWIDE)
Arthritis Symptomatic Relief Of Joint Pain. Oral Moderate
Sample
Chronic Non-cancer Pain byPainAvise
Reduction Analytics Private Limited
Oral mucosal cannabis
spray
Moderate Pain 43%
Anxiety & Depression 28%
CBD-enriched
Epilepsy Reduction In Seizure Frequency Moderate Migraines 18%
cannabis oil
Orally, intravenously, or Nausea 15%
Glaucoma Ocular Therapeutic Support Moderate
inhalation PTSD 14%
Schizophrenia Reduced Psychotic Symptoms Oral Low
Bipolar Disorder 13%
Tourette Syndrome Improvement In Tic Severity Capsules: Dronabinol & Nabilone Sativex Moderate Anorexia 12%
Decrease Crohn’s Disease Activity
Inflammatory Bowel Disease Smokeable Low ADD/ADHD 11%
Index (CDAI) Scores
Arthritis 6%
Sleep Disorders Improvement In Insomnia Nabilone Sativex Moderate
Source: MYDX Presentation
MEDICAL CANNABIS 4
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DISEASES AND PATIENTS
The table summarises the total number of patients worldwide and in Australia for different diseases. Each
Sample by
condition and disease possess certain Avise Analytics
benefit Private Limited
from medical cannabis.
NUMBER OF PATIENTS THE UNRELENTING MARCH OF DIABETES
% prevalence and number of adults with diabetes by WHO region
DISEASES WORLDWIDE PERCENTAGE (%)* AUSTRALIA PERCENTAGE (%)*
Sample by Avise
Depression Analytics Private
322 million 5% Limited
>2 million (2012) (2011-12) 9.70%
in 1980 and 2014*
Diabetes 415 million (2015) 8.50% 1.2 million (2014-15) 5.10%
Cancer (new cases) 14.1 million (2012) 0.20% 0.12 million (2012) 0.5%
Neuropathic - 7-8% 1.8 million (2010) 7-8%
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Chronic Pain 1.5 billion (2011) 21% 3.2 million (2007) 15%
Sclerosis 2.5 million - 23.7k (2009) 0.10%
Epilepsy 39 million (2015) 0.50% 0.25 million -
Insomnia - 35% (2014) 2.1 million (2014-15) 12%
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Autism 24.8 million (2015) 0.3% 0.23 million (2015) 1.0%
Alzheimer 46.8 million (2015) 0.6% 0.413 million (2016) 1.7%
HIV/Aids 36.7 million (2015) 0.5% 25.3K (2015) 0.11%
* Million of people and % of total regional population
Arthritis - - 3.5 million (2014-15) 15.30% Source: World Health Organization
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* As a percentage of regional population
NUMBER OF PEOPLE LIVING WITH HIV AND
SOME IMPORTANT FACTS: ACCESSING TREATMENT GLOBALLY (MILLIONS)
35.9 36.7
§ By 2030, depression will be highest level of disability of any (WHO). 25mn U.S. adults had daily chronic pain, and 23mn more 34.5 35.2
28.9 31.8 33.3 33.9
physical or mental disorder. Only 35% of Australians with anxiety reported severe pain.
and depression access treatment; § The number of reported sclerosis cases is increasing by 4% each
§ In 2015, 1 in 11 adults has diabetes and by 2040, 1 adult in 10 will year in Australia.
have diabetes (642mn) globally; whereas it is the fastest growing § Nearly 14% of people with epilepsy have used cannabis products
chronic condition in Australia; as a way to manage seizures.
2.2
§ 21.7mn number of new cancer cases expected to be diagnosed § By 2025, the number of people with dementia is expected to reach 0.77 7.5 9.1 11 13 15 17
globally in 2030. In Australia, 134k (2017) new cancer cases 536,164 in Australia and 131.5mn worldwide by 2050; 2000 2005 2010 2011 2012 2013 2014 2015
estimated will be diagnosed in Australia and 150k by 2020; § An estimated 1.1mn people died from AIDS-related illnesses in People receiving treatment People living with HIV
§ Chronic disease prevalence is expected to rise by 57% by 2020 2015.
Source: New Frontier Data
MEDICAL CANNABIS 5
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GLOBAL MARKET
A new report from Grand View Research, Inc. estimates that the global medical marijuana market will reach a GROWTH OF LEGAL MEDICAL & ADULT USE
MARIJUANA SALES IN US (2016-2025)
value of $55.8 billion by 2025.Sample by Avise industry
The global Analytics Private
was Limited
valued at $11.4 billion in 2015, and the market
research and consulting company projects it will grow at a compound annual growth rate of 17.1 percent 24.08
CAGR: 16% 21.46 22.88
during the forecast period. 18.36 19.89
16.02 10.55 10.86
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USA
$ in Billion
6.56 7.97
10.82
4.75
13.38
6.5
8.22
9.46 9.83 10.2
2.65 13.22
1.89
7.8 8.9 10.06 11.26 12.33
The legalisation of medical cannabis is the key force behind the increasing attractiveness of the US market and also 4.67 5.32 6.07 6.88
with direct influence on the global markets. The current size of the medical cannabis market is approximately USD 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
4.67 billion (2016), while the recreational market in states that have regulated recreational cannabis is estimated at Medical Recreational
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USD 1.89 billion. For the market potential indication only, unofficially, the size of the US black market for marijuana is
estimated USD 50-65 billion.
Source: New Frontier Data
According to the latest report by New Frontier Data, medical cannabis sales in 2017 are forecast to grow to $5.3 29 LEGAL MEDICAL MARIJUANA STATES
AND DC in UNITED STATED
billion, which is 67% of total cannabis sales. The report projects that by 2025, medical sales in current legal states
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are forecast to grow to $13.2 billion, which will account for 55% of total cannabis sales.
According to Green Wave Research, 730,000 patients have received medical recommendations to use cannabis in
Source: New Frontier Data Research
2014-15, with the reported total over one million registered patients. Currently, there are ~2.3 million of medical
marijuana patients in all states as compared to ~1.25 million in March 2016.
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CANADA
Canada legalized medical marijuana in 2001. Since then, the industry has evolved in a staid way. The market for
medicinal use is estimated at $144 million in 2014 is projected to grow to $3 billion by 2024 in annual sales alongside
a projected $6 billion in annual sales from the recreational market. (Source: VII Capital estimates). Health Canada
estimates that at the end of 2016, there were 0.13 million qualified patients in Canada and that patient population is
expected to grow to 0.77 million by 2024 (24.9% CAGR). Authorised licensed producers in Canada has drastically
increased in three years from 7 producers during January 2014 to 37 producers in Jan 2017.
EUROPE
Medical cannabis is currently importing (in small quantities) from the Netherlands and used by patients in 10
European countries. The largest markets are: France, Italy, Netherland and Romania.
MEDICAL CANNABIS 6
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KEY FINDINGS
USA
Sample
Chronic Pain by Avise
Patients are theAnalytics Private Limited
Majority in REDUCING PRESCRIPTION DRUG USE & COSTS AS AVG. PRICE PER SINGLE GRAM FALLS, MONTHLY SALES HAVE SOARED
100 million+ MMJ Programs
Annual Number of Daily Doses Prescribed $44.50
Americans suffering from 81% Per Physician
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CHRONIC PAIN 76%
67%
63%
59%
95,672
85,148
2 million+
Source: New Frontier Data
Americans ADDICTED to Arizona Hawaii Colorado Nevada Oregon States Without a Medical States With a Medical Cannabis
prescription pain killers Cannabis Law Law
Sample
$1.96 Billion
by Avise
25%
Analytics
8,300
Private Limited
REDUCING OPIOID RELATED DEATHS
11% $220 million $12.77
Medicare Opioids top 3 pain FEWER OPIOID OVERDOSE FEWER OPIOID OVERDOSE REDUCTION IN DAILY POTENTIAL MEDICAID
medication cost (OxyContin, DEATHS IN MEDICAL DEATHS IN MEDICAL PHARMACEUTICAL DOSES SAVINGS IN OPIOID
Hydrocodone, Fentanyl) CANNABIS STATES CANNABIS STATES PRESCRIBED PRESCIRPTIONS
CANADA Sample by Avise Analytics Private Limited
CANNABIS FOR MEDICAL PURPOSES (IN Total number of clients registered at end
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DOMESTIC MARKET
Initial demand of upto 8000kg for medicinal marijuana in Australia could top A$100 million a SUMMARY OF REFORMS
year, a University of Sydney report estimated. If cannabis-derived pharmaceuticals become The following table (as published on the TGA website www.tga.gov.au/medicinal-cannabis-products-
Sample by Avise Analytics Private Limited overview-regulation) provides an overview of how the new legislative requirements regarding
more mainstream within the decade, demand could grow to A$380 million by 2018 and A$1.3
medicinal cannabis work together:
billion in 2026, the report’s author Michael Katz said. That’s still a tiny fraction of the U.S.
States &
market, which could be worth nearly $21 billion by 2020, Morgans Financial Ltd. said, citing Process Step
Therapeutic Goods Act Narcotic Drugs Act
Territories
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ArcView Market Research. (Tga) (Odc)
Involved
Current Australian use of medicinal cannabis
The Victorian law reform report estimates that 750,000
Australians use cannabis every week and that 35% of
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Australians over the age of 14 have used it within their
life time. It is difficult to accurately estimate the total
user base of medicinal cannabis within this estimate,
but the Medicinal Cannabis Users Association of
Australia (MCUA), an online advocacy and an
educational group, recently claimed that their membership was increasing by 150 people a
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week. Increasing discussion of the therapeutic properties of medicinal cannabis has created a
surge of interest in Australia for its use as an alternative to conventional treatments for a range
of health conditions. On top of this, recent surveys have shown that cannabis use by
Australians over 50 has increased dramatically, even exceeding the use of cannabis by young
Australians, and this could be due to the fact that older people tend to suffer more from
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conditions such as cancer and chronic pain.
Flooding with new iPOs
Although medicinal cannabis in Australia is still very new, several major players have already
emerged including domestic and international cultivators and manufacturers such as AusCann,
Bedrocan Australia, CANN Group, MGC Pharmaceuticals, MMJ Phytotech and Tilray. 2016 has
seen a flurry of new share offerings, joint ventures and reverse takeovers. Some of these
businesses are planning on an import-heavy strategy, allowing them to leverage already-
established cultivation and manufacturing facilities overseas, while others are focusing primarily
on domestic production for both local consumption and potential future export. While they wait
for the regulatory green light, several firms are engaged in discussions with major Australian
universities to test and develop new treatments and products. 1 These access arrangements apply unless an appropriate medicinal cannabis product is on the ARTG and available.
2 Access requirements still apply.
MEDICAL CANNABIS 8
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FORECASTING DOMESTIC MARKET
Demand for medicinal cannabis in Australia will depend on which conditions and symptoms are approved for medicinal cannabis treatment, recommended dosages, range and type
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of approved medicinal cannabis products.
Study conducted by “The University of Sydney Community Placement Program” in partnership with “MGC Pharmaceuticals” discussed two appropriate demand estimates based on
two possible regulatory outcomes.
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FIRST METHOD: BASED ON NUMBER OF PATIENTS (scaling them up to the size of the Australian population)
EPILEPSY CANCER HIV / AIDS MS
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Pharmacoresistant Epilepsy
Pain Private Limited Wasting
• A 15 year longitudinal study from • Forecast for the likely demand for • Estimated demand has not been • In 2009, 23,700 Australians were
France showed the rate of epilepsy medicinal cannabis by Australians forecast. living with MS
per 1,000 people aged 16 and older living with severe cancer pain has not
Pain • In 2011, 84.3% of MS patients live
Sample by Avise Analytics Private Limited •
was 5.4 = 101,520 Australian been attempted here.
Chronic pain currently presents in 39-
with muscle spasticity = 83% of
• Of these, 22.5% were classified as Nausea 23,700 or 19,979 patients
having ‘pharmacoresistant epilepsy’= 85% of people living with HIV/AIDS.
• In 2013-2014, there were 621,239 • In 2004, it was found that of those MS
22,842 Australians
treatment sessions (or ‘events’) for • Assuming, 39% of people living with patients living with muscle spas city,
• Sample HIV/AIDS experience severe pain.
by Avise Analytics
Of this group, 16.7% had tried at least
4 epileptic medicines without relief = hospitals.
Private Limited THIS IS 10,588 PEOPLE.
radiation oncology in Australian 53% exhibited moderate to severe
spas city= 53% of 19,979 or 10,588
3,814 Australians
• In 2012-13, Australian patients • On an average, 67% of MS patient
Severe Childhood Epilepsy underwent a total of 374,588 experience chronic pain = 67% of
‘treatment days’ for chemotherapy. 23,700
• 18.8% of Australians are aged 0-14.
Of these .00324% children having This Is 995,827 TREATMENT DAYS This is 15,879
Severe childhood epilepsy = 135.2 PER ANNUM.
Australians.
This is 3,957 patients (3,814+135).
MEDICAL CANNABIS 9
Now Legal in Australia` FORECASTING DOMESTIC MARKET CONTINUED…
CONCLUSION
Combining the aggregate amounts for these three conditions gives us a total annual demand of 166.6 kg THC and 404.7 kg CBD.
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CONDITION HIV/AIDS MS EPILEPSY CONDITION CANCER
Patients 10,588 15,875 3,957 Dosage per treatment session 3 mg (THC)
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Dossage per day, per patient
Analytics
10 mg THC
Private
20 mg CBD
Limited
21.6 mg THC 300 mg CBD Treatment sessions per annum 995,827
Demand per annum 38.6 kg THC 115.9 kg CBD 125.1 kg THC 288.8 kg CBD Demand per annum 2.9 kg THC
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SECOND METHOD: BASED ON CASE STUDY COUNTRIES
ISRAEL THE NETHERLANDS CANADA
Based on a rough numbers, if Australia were
Number of patients 22,000 25,000 30,537 to emulate the medicinal cannabis regulations
Sample by Avise Analytics1.4Private
Average daily consump on per patient
g Limited
0.68 g 1.1 g of the Netherlands or Canada, it would initially
National daily consumption 31 kg 17 kg 33.5 kg need to provide at least 8,000 kg of cannabis
to patients per annum. Patient numbers in all
National annual consumption 11,242 kg 6,205 kg 12,260 kg
of the given countries have been growing and
Sample by
Population of country
Avise
Per capita, per annum consumption
Analytics Private
1.33 g
Limited
84,00,000
0.369 g
1,68,00,000 3,51,00,000
0.349 g
are likely to grow further. Any more accurate
estimate would have to be on the basis of a
Projected Australian demand 31,450 kg 8,679 kg 8,208 kg specific proposed regulatory framework.
THE EFFICIENCY AT WHICH THESE PURE CANNABINOIDS COULD BE EXTRACTED FROM HERBAL CANNABIS WOULD VARY
GREATLY AND BE DEPENDENT ON THE QUALITY AND COMPOSITION OF THE PLANTS AND THE METHOD OF EXTRACTION AND
PURIFICATION USED.
MEDICAL CANNABIS 10
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METHODOLOGY OF EXTRACTION
COST ESTIMATES FOR AUSTRALIAN MEDICAL CANNABIS PRODUCERS
There are three main ways in which medicinal-grade cannabis can be grown: outdoors, greenhouses, and indoors. The variation in costs is largely because of
Sample by Avise Analytics Private Limited
material cost for cultivation. The share of
SHARE OF ANNUALISED COSTS BY CULTIVATION REGIME
individual components for material and
0% Broadacre 2% Greenhouse 2% 0%
Indoor utilities costs are detailed below
1%
Sample by Avise Analytics Private Limited
1%
10% 4%
0%
6% 5% 6%
Materials & Utilities
Components
Broadacre Greenhouse Indoor
7%
Seeds/cultivars 70.6% 2.9% 1.2%
37% Utilities 1.5% 79.3% 92.3%
46%
44% 51% Insurance 23.5% 0.9% 0.4%
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78%
Nutrients/pesticides 4.4% 16.8% 6.2%
Most Of The Medical Cannabis Cultivator
Capital, land and infrastructure Security design and infrastructure Labour for cultivation Materials for cultivation Costs of compliance Direct fees and charges
Prefer Either Greenhouse Or Indoor
Source: Deloitte Access Economics
Cultivation As Shown Below:
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ANNUAL COST OF CULTIVATION & OUTPUT Australian Companies Cultivation Method
Cost Of Cultivation Crops Yields Startup Costs for CANN Group Greenhouse
Cultivation Harvest per MGC Pharmaceuticals Greenhouse
$ per Kg Dried flowers per Cultivators ($ per
Methods $ per sqm annum AusCann Group Greenhouse + Indoor
Dried Flower sqm (in grams) Sqft)
MMJ Phytotech Greenhouse
Sample by Avise Analytics Private Limited
Broadacre
Greenhouse
75
1108
888
1539
84
180
1
4
10
50
Hydroponics Greenhouse
Canadian Companies Cultivation Method
Indoor 2291 1909 300 4 75 Canopy Growth Corp. Greenhouse + Indoor
Source: Deloitte Access Economics Aurora Cannabis Inc. Greenhouse + Indoor
OrganiGram Holdings Indoor
Aphria Greenhouse
WHY GREENHOUSE CULTIVATION?
Supreme Pharma Hybrid Greenhouse
Emblem Corp Indoor
Most applications to grow medical cannabis are for greenhouse growing in Australia, rather than as a broad acre
crop out in the open like sunflowers. The main reason for using greenhouses is security whilst protecting in-house
crops from adverse weather events.
MEDICAL CANNABIS 11
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COMPETITIVE ENVIRONMENT: CANADIAN COMPS
COST ESTIMATES FOR CANADIAN MEDICAL CANNABIS PRODUCERS
COMPARISON OF EXTRACTION COSTS FOR CANADIAN MEDICAL CANNABIS LICENCED PRODUCERS
Sample by Avise Analytics Private Limited Cash Costs Per
Market Area Under Grams Production All-in Costs Per FY17F Revenue FY17F
Gram (C$)(most
Company (Ticker) Capitalisation Cultivation Produced Costs (C$) Gram (C$) (Consensus EBITDA(Consensus
Recent
(C$m Eqv.) In Sqft (Cumulative) (Cumulative) (Cumulative) Estimates) Estimates)
Sample by Avise Analytics Private Limited
Quarterly)
Canopy Growth Corp. (TSX:WEED) 1,264 472,000 8,067,045 29,012,000 3.60 2.66 39.5 (4.0)
Aurora Cannabis Inc. (TSXV:ACB) 822 55,200 441,000 725,852 1.77 1.67 33.9 13.8
Aphria Inc. (TSX:APH) 753 100,000 2,338,798 4,402,376 1.88 1.23 22.5 6.3
OrganiGram Holdings (TSXV:OGI)
Sample by Avise Analytics
287
Private
227,500
Limited2,210,220
1,018,303 2.17 1.29 16.0 4.3
Acquired by Canopy
Mettrum Health Corp. Growth - 3,102,718 8,040,221 2.59 2.00 23.0 (2.2)
Source: CapitalIQ, Company reports
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PRICING OF ALL STRAINS AND BLENDS OF DRIED CANNABIS FROM LICENSED PRODUCERS IN THE MMPR
Avg. Selling Price per gram (in C$)
12
10.9
11 10.5 10.2
10.0 9.9
10 9.2 9.1
9 8.3 8.3
Sample by Avise Analytics Private Limited
8.0 7.8 7.9 7.8 8.1
8 7.5
7.1
7
5.9
6
5
Canna Farms
Broken
CanniMed
Canntrust
Delta-9
MariCann
MedReleaf
Peace Naturals
Redecan
AB CANN
Aphria
Aurora
Emblem
Emerald
Tilray
Tweet MS
Organigram
18-Nov'16 16-Dec'16 11-Jan'17 22-Feb'17 17-Mar'17 22-Apr'17 Linear (22-Apr'17)
Source: Cannstandard
As the nearest comparable market to Australia with respect to regulation and demographics, Canada’s publicly-listed peers provide data points regarding
how the Australian market, and its participants, may evolve and perform over time
MEDICAL CANNABIS 12
Now Legal in Australia`
COMPANIES IN FOCUS
MEDICAL CANABIS COMPANIES IN AUSTRALIA
Australia is quickly becoming a home base for cannabis companies looking to take advantage of recently legalized medical marijuana. Coupled with favorable opportunities for listing on the
Australian Securities Exchange (ASX), and Australia is rapidly becoming a hot spot for cannabis innovation and investment.
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MARKET
COMPANY (TICKER) BUSINESS MODEL CAPITALISATION
Sample by Avise Analytics Private Limited (A$M EQV.)
• Nutraceutical products businesses that also engages in pharmaceutical research
Medlab Clinical
(ASX:MDC)
• Develops biotherapeutics for chronic kidney diseases, pre-diabetes/obesity, depression, musculoskeletal muscle loss associated 75.6
with ageing and non-opioid pain management
MGC Pharmaceuticals • RTO of MGC into Erin Resources in December 2015
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(ASX:MXC) • Medicinal and cosmetics cannabis company with licenses to grow, extract and sell Cannabis Sativa in Slovenia
43.2
AusCann Group • RTO of AusCann into TW Holdings in December 2016
(ASX:AC8) • Focus on the cultivation, manufacture and sale of cannabis medicines for a range of conditions and symptoms
51.1
MMJ Phytotech • Cultivations limited to Canada and clinical development limited to Israel. Attempting to develop and control all processes from
69.5
Sample
(ASX:MMJ)
Creso Pharma
by Avise Analytics Private Limited
farming through to pharmacy sales, however focus is entirely on the Canadian market (incl. recreational)
• Swiss-domiciled company seeking to sell products into Slovakia and The Czech Republic with a focus on the food supplements
(ASX:CPH) market for humans and animals
24.5
Zelda Therapeutics • RTO of Zelda into Gleneagle Gold in November 2016
(ASX:ZLD) • Research-focused company in partnership with AusCann
24.7
Sample
CANN GROUP
by •Avise Analytics
Cultivator, processor Private
and manufacturer of medicinalLimited
cannabis products in Australia
(ASX:CAN)
• Experienced Board and team who partnered with experts across the value chain (AgVic, etc) to create true Australian “blue chip” 40.1
offering
Botanix Pharmaceuticals • Dedicated to develop next generation therapeutics for the treatment of serious skin diseases. 17.0
(ASX:BOT) • Preparing for the first human trials delivering synthetic cannabidiol to the skin.
• Secured strategic alliance with US-based pharmaceutical company, Phoenix Life Sciences, to develop, manufacture and sell
Hydroponics
(ASX:THC)
medicinal cannabis in Australia and internationally 14.4
• Acquired Australia’s leader in breeding and technology for Cannabis, Canndeo Ltd
Source: Company
MEDICAL CANNABIS 13
Now Legal in Australia` COMPANIES IN FOCUS CONTINUED…
ASX LISTED MEDICAL CANABIS STOCKS IN AUSTRALIA – KEY STATS
ASX listed Medical Marijuana players, each at different stages of development and offering various risk/return profiles, are attracting investors’ attention.
Sample by Avise Analytics Private Limited
KEY STATISTICS & STOCK PERFORMANCE SINCE ASX LISTING
AusCann
CANN Group Medlab Clinical MGC MMJ Zelda Botanix Hydroponics
Sample by Avise Analytics Private Limited
Limited Limited Pharmaceuticals
Group
Holdings Ltd
Phytotech
Creso Pharma
Therapeutics Pharmaceuticals Company Ltd.
ASX Code CAN MDC MXC AC8 MMJ CPH ZLD BOT THC.AX
Date Listed May-17 Jul-15 Feb-16 Feb-17 Feb-15 Oct-16 Nov-16 Jul-16 May'17
IPO Size (A$ in Million) 13.50 9.00 0.01**** 5 .00* 5.00 5.00 4.00** 3.00*** 8.00
IPO Price (A$) Sample by Avise Analytics
0.30 0.20 Private Limited0.20
0.04 0.20 0.20 0.05 0.02 0.20
CMP (As on May 31, 2017) 0.53 0.79 0.04 0.37 0.34 0.40 0.07 0.04 0.31
% Gain since listing 76.7% 295.0% 0.0% 85.0% 70.0% 100.0% 40.0% 100.0% 55.0%
Sample
Market Cap (A$ in M)
Revenue (TTM) (A$ in M)
by Avise Analytics
- 3.59
Private Limited
-
40.09
-
75.6 43.17 51.06 69.46
-0.019
24.47
-
24.71
-
17.01 14.37
CFO (MRQ) (A$ in M) -0.88 -1.568 -0.635 -1.8 -2.08 -0.973 -1.135 -0.833 0.219
Price to Book (MRQ) 66.78 24.2 3.78 - 3.25 - 1,921.62 8.92 -
Sample by Avise Analytics
Price to Sales (TTM) - 21.67 Private Limited
246.93 7,211.40 6,502.69 - 10.85 1,555.02 -
Cash (MRQ) (A$ in M) 0.45 2.75 13.58 4.49 5.26 10.64 2.64 1.53 0.89##
Est. R&D Exp. for next qtr (A$ M) 0.55 0.04 0.15 0.30 0.05 0.34 0.39
Funding Raised Post IPO (A$ in M) - 4.4 17.5 17 15.8 9 6 5.4# -
*relisting
**listing via reverse takeover
***Bone Medical Limited (ASX:BNE) acquired Botanix Pharmaceuticals Inc., a US-based medical dermatology company and following conclusion of the acquisition, and subject to shareholder approval, changed its name to Botanix Pharmaceuticals Limited
****MGC Pharmaceuticals was a backdoor listing through the Perth gold explorer Erin Resources
#
Under Tranche 2 of the Placement, the Company is expected to raise A$2.0 million, subject to shareholder approval to be sought at a general meeting to be held on or about 15 May 2017
##
this balance is before the $8 million capital raising in May’17)
Source: Company, Reuters
MEDICAL CANNABIS 14
Now Legal in Australia`
Closing Share Price (in A$)
Closing. Share Price (in A$)
0
1
2
3
4
5
6
0.02
0.04
0.06
0.08
0.10
0.12
0.10
0.30
0.50
0.70
0.90
1.10
07/15
12/15 07/15
08/15
10/15 09/15
02/16
11/15 11/15
12/15 04/16
01/16
(millions)
01/16
03/16 06/16 03/16
04/16
MXC
MDC
08/16 05/16
05/16
07/16
MDC
07/16 10/16
08/16 09/16
09/16 12/16
VOLUME TRADED
11/16
11/16
12/16 02/17 01/17
01/17 03/17
04/17
03/17
Now Legal in Australia
0.051 05/17 0.76
04/17 (25 May, 2017) (25 May, 2017)
05/17
PRICE PERFORMANCE (A$)
Closing Share Price (in A$) Closing Price (in A$)
0
0.3
0.6
0.9
1.2
1.5
1.8
2.1
0
20
40
60
80
100
120
140
0.00
0.20
0.40
0.60
0.80
1.00
0.45
0.55
0.65
12/15 05/17
MEDICAL CANNABIS
02/17
Sample
01/16 05-17
05/17 02/17 05-17
by
03/16
02/17 05-17
04/16 05/17
03/17 05-17
05/16
05/17 05-17
07/16 03/17
05-17
AC8
AviseCAN
08/16 05/17 03/17 05-17
CAN
MXC
09/16 04/17 05-17
05/17 05-17
11/16 04/17
05-17
Analytics
12/16 05/17 04/17
05-17
01/17 05/17 05-17
03/17 05/17
05/17 05-17
04/17 0.475 05-17
05/17 05/17 (25 May, 2017)
05/17
ASX LISTED MEDICAL CANABIS STOCKS IN AUSTRALIA
Closing Share Price (in A$)
Closing Share Price (in A$)
Private Limited
0
2
4
6
8
10
12
14
16
0
20
40
60
80
100
0.00
0.02
0.04
0.06
0.08
0.10
0.12
0.14
0.16
02/17
0.15
0.35
0.55
0.75
0.95
11/16 11/16
02/17 07/15
12/16
02/17
COMPANIES IN FOCUS CONTINUED…
12/16 09/15
02/17 12/16
03/17 12/16 11/15
03/17 01/17 01/16
01/17
03/17 01/17
03/16
ZLD
03/17 02/17
MMJ
05/16
AC8
03/17
ZLD
02/17 02/17
04/17 03/17 07/16
Sample by Avise Analytics Private Limited
Sample by Avise Analytics Private Limited
Sample by Avise Analytics Private Limited
Sample by Avise Analytics Private Limited
04/17 09/16 03/17
03/17
04/17
03/17 11/16
04/17
04/17 01/17 04/17
05/17
05/17 04/17
03/17
05/17 05/17 05/17
05/17 0.38 0.076
05/17 05/17 (25 May, 2017)
(25 May, 2017)
Closing Share Price (in A$)
Closing Share Price (in A$)
0
5
10
15
20
25
0
20
40
60
80
07/15 08/16
0.03
0.04
0.05
0.06
0.07
0.00
0.20
0.40
0.60
0.80
1.00
08/15
09/15 09/16 08/16
10/16
10/15
11/15 10/16 09/16
11/16
12/15
01/16 10/16 10/16
11/16
02/16 11/16
03/16 11/16 12/16
04/16 11/16
05/16 12/16 01/17
BOT
06/16 12/16
MMJ
CPH
BOT
01/17 01/17
07/16
08/16 01/17 01/17
09/16 02/17
10/16 02/17 02/17
11/16 03/17
12/16 03/17 03/17
01/17 03/17
04/17 04/17
02/17 04/17
03/17 04/17
04/17 05/17 05/17
05/17 05/17 0.044
05/17 (25 May, 2017)
0
2
4
6
8
0
5
10
15
20
Closing Share Price (in A$)
10/16 05/17
ZLD
AC8
THC
BOT
CPH
CAN
MMJ
MXC
MDC
0.28
0.30
0.32
0.34
0.36
0.38
10/16 05/17
YIELD
11/16 05/17
05/17
11/16 05/17
12/16 05/17 05/17
12/16
05/17
12/16 05/17
01/17 05/17
01/17 05/17
05/17
02/17 05/17
CPH
THC
THC
02/17 05/17 05/17
(27%)
(18%)
(37%)
(28%)
(19%)
(34%)
(26%)
(6%)
(18%)
1-M
02/17 05/17
03/17 05/17
05/17
03/17
04/17 05/17
05/17
(9%)
(7%)
(7%)
3-M
81%
6%
19%
1%
NA
NA
04/17 05/17
Source: yahoo finance
04/17 05/17 05/17
05/17 05/17
05/17 05/17 0.285
(5%)
(8%)
44%
74%
57%
60%
0%
NA
NA
YTD
05/17 (25 May, 2017)
15
As on 31 May, 2017` COMPANIES IN FOCUS CONTINUED…
ASX LISTED MEDICAL CANABIS STOCKS IN AUSTRALIA – PROGRESS STATUS
SPECIALIZATION & PROGRESS TOWARDS COMMERCIALIZATION – Most of the companies are expected to start their in-house production by next year.
CAN MDC MXC AC8 MMJ CPH ZLD BOT THC
Sample by Avise Analytics Private Limited
STATUS • Received • Patent Pending. • Products Ready for • Secured a Licence • Phase II Clinical • Imported first • Pre-Clinical Stage • Phase I Clinical • Application for
Australia’s first • Awaiting a final Launch to Cultivate Trial medicinal cannabis Trial research license
Medicinal Cannabis shipment clearance Medicinal Cannabis • Imported first products into lodged
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Cultivation Licence. from Canadian
health authorities,
in Australia. shipment of
medicinal products
Australia under the
new Government
to import cannabis from the its Swiss- Legislation from
material from subsidiary, Canadian medical
Canada. Satipharm AG, cannabis group,
(“Satipharm”) in CanniMed.
May'17
Sample by Avise Analytics Private Limited
PRODUCTION /
COMMERCIALIZATION NA Q3 2017 NA NA Q3 2017 2018 NA 2018
TIMELINE (Expected)
SPECIALIZATION • Advanced Cancer • Seborrheic • Neuropathic & • Gastric • Neuropathic & • Insomnia • Acne • Dementia
AREA Sample by Avise Analytics Private Limited
Pain
• Cardiovascular
dermatitis
• Psoriasis
Chronic Pain • Multiple Sclerosis
• Refractory Epilepsy
Chronic Pain • Breast Cancer
• Brain Cancer
• Psoriasis
• Atopic dermatitis
• Neurological
• Epilepsy
Diesases • Acne prone skin (in children) • Pancreatic Cancer
• Depression
• Diabetes & Obesity
Sample by Avise Analytics Private Limited
STRATEGIC
PARTNERSHIPS CO.
1. Aurora Cannabis 1. Aphria Inc.
Inc.
- 1. Canopy Growth
Corporation
- 1. LeafCann 1. AusCann Group
Holdings Ltd.
- 1. Phoenix Life
Sciences
2. Anandia 2. Tasmanian 2. Aunt Zelda's
Laboratories Alkaloids Pty Ltd 3. Complutense
Commonwealth 3. JV with DayaCann University of
Scientific and 4. Phytoplant Madrid
Industrial Research S.L. 4. Curtin University
Research 5. Zelda 5. CannPal
Organisation Therapeutics 6. Telethon Kids
3. Agriculture Victoria 6. Murdoch Insititute
Services Pty Ltd University
Source: Company
MEDICAL CANNABIS 16
Now Legal in Australia`
GLOBAL PEERS
FINANCIAL AND STOCK PERFORMANCE GLOBAL
Sample by Avise Analytics PEERS
Private Limited
GW Pharmaceuticals, Canopy Growth Aurora Cannabis Inc. OrganiGram Holdings Aphria Inc. Insys Therapeutics Inc. CanniMed
PLC Corporation TSX Venture Inc. TSX: APH NASDAQ GM : INSY Therapeutics Inc.
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NASDAQ GM : GWPH TSX: WEED Exchange: ACB TSX Venture
Exchange: OGI
TSX: CMED
Currency USD CAD CAD CAD CAD USD CAD
Market Cap 2,733.42 1,263.95 821.65 286.6 753.12 1,024.90 205.63
Performance YTD -5.03% -12.47% -4.96% -13.45% 12.30% 53.39% -25.60%
Sample by Avise Analytics Private Limited
Performance 1-Year
Price to Sales (TTM)
17.30%
275
212.50%
41.75
8.26%
61.54
120.18%
53.85
310.14%
43.04
-11.47%
4.71
-13.49%
25.3
Price to Book (MRQ) 5.94 3.76 5.29 3.04 3.58 3.83 10.94
Gross Margin (TTM) 62.35 -46.36 43.34 -3.62 74.41 88.34 22.89
Sample by Avise Analytics Private Limited
150 $134.44 150 C$125.71 150 C$124.74 40
30
C$37.86 50
40
C$43.21 250
200
$213.12
$155.30
$207.52 50
40
C$41.35
100 100 100 30
30 C$17.51 C$20.12 150 C$18.3
20
Actual & Expected 50
$10.08 $10.39
50 C$30.27 C$42.18
50 10 C$5.33
C$10.2 20 100 20 C$9.13
C$24.1 10 50 10
Sales (in millions) 0 0
C$13.35
0 0 0 0
TTM FY17 E FY18 F TTM FY17 E FY18 F 0 TTM FY17 E FY18 F TTM FY17 E FY18 F TTM FY17 E FY18 F TTM FY17 E FY18 F
(Ending (Ending TTM (Mar FY17 E FY18 F (Ending (Ending
Sample by Avise Analytics Private Limited
(Ending (Ending
Mar 17) Dec 16) 17) Feb 17) Mar 17) Mar 17) Jan 17)
Source: Company, Reuters, yahoo finance
We have compared top 7 global medical cannabis companies, located either in US or Canada. The US and Canada are by far the largest and most dynamic
markets for medicinal cannabis. Although initially legalised at the State level in California in the mid-1990s, the conflict between State and Federal legislation
has been a severe hindrance to its progress. Since then, more than half the States and Districts have legalised medicinal cannabis.
MEDICAL CANNABIS 17
Now Legal in Australia` COMPANIES IN FOCUS CONTINUED…
ASX LISTED MEDICAL CANABIS STOCKS IN AUSTRALIA – STOCK PERFORMANCE
The performance of the Viridian Cannabis Stock Index, as a whole and by sector, as well as in comparison to several
major market indices, is detailed in the table below:
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VIRIDIAN INDEX YTD THERE’S A BUZZ IN AUSTRALIA’S STOCK MARKET
2013 2014 2015 Q1'16 Q2'16 Q3'16 Q4'16 2016
PERFORMANCE (03/31/17) Performance of All ASX Listed Medical Cannabis Stock Index
Viridian Cannabis Stock
Sample by Avise Analytics Private Limited
120%
77.5% 383.5% -32.4% 0.7% 0.0% 30.8% 155.0% 236.1% 17.8% ASX Medical Cannabis Stocks soars more
Index 103.39%
100% than 100% during 1Q’17 making it top
MARKET INDEX PERFORMANCE performing industry globally in terms of
DJIA 26.5% 7.5% -2.2% 1.5% 1.4% 2.1% 7.9% 13.4% 4.6% 80% growth%. That’s five times higher than their
peers in the U.S. and Canada. The surge
S&P 500 29.6% 11.4% -0.7% 0.8% 1.9% 3.3% 3.3% 9.5% 5.5% 60% was sparked by Australia easing restrictions
on imports of cannabis to treat illnesses
NASDAQ 38.3% 13.4% 5.7% -2.7% -0.6% 9.7% 1.3% 7.5% 9.8% 40% from epilepsy to cancer.
RUSSELL 2000
Sample by Avise Analytics
37.0%
Private
3.5%
SECTOR PERFORMANCE
Limited-5.7% -1.9% 3.4% 8.7% 8.4% 19.5% 2.1% 20%
0%
Ancilliary Products &
2-Jan
12-Jan
22-Jan
1-Feb
11-Feb
21-Feb
3-Mar
13-Mar
23-Mar
NM NM -60.0% -2.7% -1.2% 24.4% 118.3% 161.2% 22.8%
Services -20%
Agriculture Technology NM NM -29.1% 5.6% 1.1% -1.7% 46.9% 54.2% -10.8%
Sample by Avise Analytics Private Limited
ALL ORDINARIES INDEX (XAO) Medical Cannabis Eq. Weighted Portfolio DJIA S&P500 NASDAQ
Ancilliary Cultivation &
77.7% 214.1% NM NM NM NM NM NM NM Source: yahoo finance, PAC
Retail
Consulting Services 75.9% 983.9% -64.3% 8.5% 16.0% 81.6% 266.2% 737.3% -25.2% The Viridian Cannabis Stock Index - Year-to-Date (YTD) and Historical Performance
Consumption Devices -77.8% 450.7% -82.3% -54.5% 2.5% -17.1% 460.3% 116.5% 3.8%
Potential "greater enforcement" by
Investment/M&A 31.1% 141.3% -73.1% -8.7% 21.4% 108.7% 101.5% 366.1% 51.3% the Federal government on state-
legal recreational (adult-use)
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Miscellaneous Ancillary
Physical Security
NM
NM 222.9%
NM -72.3%
-65.4%
23.3%
-25.6%
-17.4%
NM
23.3%
NM
-17.4%
NM
-9.1%
NM
95.3%
-40.1%
cannabis markets, said on 24th Feb
has pulled the market down but still
outpaced other index.
Real Estate 11.0% -24.7% -51.2% -37.2% -33.7% -36.5% -2.2% -74.1% -7.8%
Software/Media 722.2% -26.8% -16.1% 14.5% -31.7% -53.3% 156.2% -6.4% 3.0%
"Touching Plant" NM NM 20.0% 3.0% 1.1%% 36.2% 186.3% 306.0% 13.7%
Biotech/Pharma 97.5% 766.6% -49.6% 2.0% -6.8% 15.0% 432.9% 482.3% 41.1%
Cultivation & Retail -71.9% 388.5% 167.4% 4.4% 21.6% 93.6% 57.5% 287.0% 0.6%
Hemp NM NM -41.9% 14.1% -19.7% 3.8% 23.6% 17.5% -19.4%
Infused Products &
-98.1% 307.4% 17.9% -0.8% -16.5% -18.7% 17.0% -21.3% 0.9%
Extracts
MEDICAL CANNABIS 18
Now Legal in AustraliaMEDICAL CANNABIS
Now Legal in Australia
`
Sample by Avise Analytics Private Limited
Sample by Avise Analytics Private Limited
Sample by Avise Analytics Private Limited
Sample by Avise Analytics Private Limited
Sample by Avise Analytics Private Limited
AUSTRALIA’S FIRST MAJOR
DOMESTIC CROP IS COMING
MEDICAL CANNABIS 19
Now Legal in AustraliaAUSTRALIA’S FIRST MAJOR DOMESTIC CROP IS COMING
`
INVESTMENT RATIONALE
LISTIING DATE: MAY 2017
First Australian company to secure the necessary licences to undertake research and to cultivate cannabis for human TICKER CANN
medicinal and research purposes under the Australian Government's new medicinal cannabis regulatory system. It has PRICE (JUN 02, 2017) A$0.52
been given the official go-ahead to startSample bythe
growing Avise Analyticsfirst
country’s Private Limited
major domestic crop of medicine.
MCAP (JUN 02, 2017) A$39.33 M
The first Australian buds are expected to be ready this August to the benefit of Aussie patients. The permits allow this EQUITY A$15.73 M
Sample by Avise Analytics Private Limited
pioneering producer to breed plants for propagation, supply them for manufacturing into medical products, and conduct
research to develop extracts.
CASH A$15.23 M
BUILT STRATEGIC RELATIONSHIPS WITH
The company entered into various partnerships with tier one organisations/experts across the value chain. This will LEADING ORGANISATIONS TO ADD
help the Company to quickly establish its market and brand. OPERATIONAL SYNERGIES
Sample by Avise Analytics Private Limited ANANDIA LABS
To work on Breeding programs that will create next-
Low cost production; continuous cropping cycle (equivalent to 4-6 crops per year); 250+ plants per week; (150g generation cannabis strains optimized to address grower
flowering head per plant selling between $5-8 per gram); initially sufficient for approx. 4,000 patient per year. and patient challenges. Anandia’s Dr Jonathan Page is the
first scientist to have sequenced the cannabis genome and
make fundamental discoveries about THC biosynthesis.
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One of Canada’s largest publicly-listed cannabis companies, Aurora Cannabis Inc. (TSXV:ACB), subscribed for 19.9%
of Cann as a cornerstone investor to the IPO at the offer price of $0.30 (or $6.5m in total). Aurora brings a wealth of
experience, networks and knowledge to Cann that will fast-track and maximise Cann’s growth strategy in Australia Clinical Evaluation Partner
To undertake clinical evaluation of medicinal cannabis for
pain in aged care patients
USES OF FUND
Sample by Avise Analytics Private Limited
The company plans to use the funds, $13.5 million, raised through the IPO to expand into a second facility within
Melbourne and add its cultivation capacity. The funds will also be used to support clinical studies.
Agriculture Victoria
ABOUT CANN GROUP To provide Cann with access to elite cannabis genetics, as
well as cultivation & extraction technology.
Cann Group Ltd. (CAN) is the first Australian company to secure the necessary licences to undertake research and to
cultivate cannabis for human medicinal and research purposes under the Australian Government's new medicinal
cannabis regulatory system. Cann has established facilities and systems which can cultivate medicinal cannabis in
accordance with the requirements under the Narcotic Drugs Act 1967. Cann's vision is to be a leading developer and Commonwealth Scientific And Industrial Research
supplier of cannabis, cannabis resin and medicinal cannabis products into the Australian market, and to supply Organisation (CSIRO)
overseas markets as those opportunities become available. To undertake cannabis extract analysis of samples of
materials cultivated by Cann
MEDICAL CANNABIS 20
Now Legal in AustraliaAUSTRALIA’S FIRST MAJOR DOMESTIC CROP IS COMING
`
AURORA CANNABIS INC (TSXV:ACB)
KEY HIGHLIGHTS
Sample by Avise Analytics Private Limited
• Canada’s 2nd largest publicly-listed licenced medicinal cannabis grower / FINANCIAL METRIC
manufacturer
PRICE (JUN 02, 2017) CAD2.22
Sample by Avise Analytics Private Limited
• Targeting one of the largest production footprints, Aurora Sky, with a purpose-build, state-of-the-art
production facility specifically designed for growing & cultivating cannabis
MCAP (JUN 02, 2017) CAN724.12 M
• Existing 55,200 sq foot facility
• Current expansion of additional 800,000 sq foot facility underway SHARES ON ISSUE 317.18 M
Sample by Avise Analytics Private Limited
• On completion in late 2017, capacity will scale up ~100,000 kg of cannabis a year FY18F / FY19F
122.2 / 241.5
• Acquired CanvasRx in August 2016, a company that provides counselling services to patients who Revenue (CAD M)*
have received a prescription for cannabis from a physician – providing strong end-user / patient FY18F / FY19F
44.9 / 102.1
access. EBITDA (CAD M)*
•
Sample by Avise Analytics Private Limited
Completed the acquisition of a 40,000 square foot facility from Peloton Pharmaceuticals one month ago Cash (31 Dec 17)
54.9
(April’17), and the facility, which was in the late stages of construction when purchased, should be (CAD M)
capable of up to 3,900 kg of high-quality cannabis production by the second half of this year.
Sample by Avise Analytics Private Limited
• Recently (in May’17), the Company announced an acquisition of a German company, Pedanios GmbH,
which wholesales medical cannabis to more than 750 pharmacies in the EU
SHARE PRICE AS ON 2 JUN 2017
ABOUT AURORA CANNABIS INC.
Aurora's wholly-owned subsidiary, Aurora Cannabis Enterprises Inc., is a licensed producer of medical cannabis
pursuant to Health Canada's Access to Cannabis for Medical Purposes Regulations (ACMPR). The Company operates 1-YR PERFORMANCE
a 55,200 square foot, state-of-the-art production facility in Mountain View County, Alberta with the capacity to produce
~8,000KG of cannabis per year
MEDICAL CANNABIS 21
Now Legal in AustraliaYou can also read
