Series A2 Investor Deck (Summary) - PRIVATE AND CONFIDENTIAL FOR ADDRESSEE ONLY 06/09/2019 - Cannaray
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PRIVATE AND CONFIDENTIAL FOR ADDRESSEE ONLY
Series A2 Investor Deck (Summary)
06/09/2019
CONTENTS
Disclaimer 3
Executive Summary 4
Strategy
Building A Market Leading European Cannabis Company 5
The Team
Highly Experienced Management Team with Corporate and Start-up Success 6
Non-Executive Directors 7
Scientific Advisory Board 8, 9
Medicinal Cannabis
Uniquely Positioned At The Forefront Of Adoption 11
Market Size 12
Comparables 13
Wellness CBD
Fast Growing Retail Sector 14
Provide The Most Effective Products 16
Bozy Pet Products 17
Comparables 18
Contact Us 19
2 | CONFIDENTIAL: FOR ADDRESSEE ONLY
DISCLAIMER
This business plan has been prepared by Cannaray Certain parts of the business plan may contain This business plan was intended only for the party
Limited solely for information purposes and is not to “forward-looking statements”. All statements that or parties to whom it was directed. If you have
be used as a basis to form an investment decision. address expectations or projections about the received the business plan in error or by other
The business plan is neither an offering document future, including statements about Cannaray means, it must be destroyed and by no means
nor for public distribution. Distribution of this Limited’s strategy for growth, product circulated, copied or otherwise duplicated without
material without the written consent of Cannaray development, market position, expenditures and the express permission of Cannaray Limited.
Limited may result in a violation of corporate and financial results, are forward-looking statements. Nothing in the contents transmitted should be
securities laws and is therefore prohibited. Some of Actual results could differ materially from those in construed as an investment advisory, nor should it
the entities listed may be formation pending. the forward-looking statements due to a number of be used to make investment decisions.
risks and uncertainties. To the extent that the
The information contained in this business plan does uncertainties do or do not occur, the outcome may
not purport to be all-inclusive or to contain all of the vary substantially from anticipated or projected
information that a prospective investor may require. results, and accordingly, no opinion is expressed on
This business plan includes certain statements, the achievability of those forward-looking
estimates, projections and assumptions that reflect statements.
management’s subjective views regarding the
anticipated future performance of Cannaray No assurance can be given that any of the
Limited. Such statements, estimates and projections assumptions relating to the forward-looking
reflect various assumptions concerning projected statements specified in the enclosed material are
results, which may or may not prove to be correct, accurate, and Cannaray Limited assumes no
and there can be no assurance that any projected obligation to update any such forward-looking
results will be achieved. statements.
3 | CONFIDENTIAL: FOR ADDRESSEE ONLY
EXECUTIVE SUMMARY BUSINESS STRATEGY
A. Our Current Platform
Management team with successful • £7.8M Series A1 raise, closed and oversubscribed (July 30)
• Therismos Limited, acquired (July 30)
track record has developed a market - Licences for import, handling, and distribution of controlled drugs
- Long term relationships with UK regulatory authorities (MHRA, Home Office)
leading European cannabis business - Annualized revenues £19M (2019 estimate)
• Cannaray is one of the highest revenue generating European cannabis companies
to help people lead healthier lives • Newey Limited, seed investor in Cannaray (exclusive alliance for growing cannabis)
- UK’s largest horticulture company with four million square feet of greenhouses
• Bridgethorne, leading category, shopper and sales specialists (exclusive partnership)
• Outstanding Board of Directors, Key Opinion Leaders, and Scientific Advisory Board
B. 12 Month Plan
Medical Cannabis Business
• Application for cannabis growing license (in-process)
• Equip research lab to develop novel delivery and formulations of CBD and THC
• Launch in German market (Q4 2019)
• Launch in the UK market (Q4 2019)
• Launch in Poland market (H1 2020)
• Acquire Elite Healthcare Distribution Limited, EU GMP supply contracts
CBD Plan
• Launch latest generation CBD prodcuts
• Give back a portion of revenue to charities
C. Prepare for IPO
INVESTMENT PROPOSITION
• Series A1: We have raised £7.8M (now closed)
• Series A2: Raising up to £3.5M to fund UK cannabis production and German medical
sales team (now open)
4 | CONFIDENTIAL: FOR ADDRESSEE ONLY
STRATEGY – BUILDING A MARKET LEADING EUROPEAN CANNABIS COMPANY
Wellness CBD Medical Cannabis
BARRIER TO ENTRY • Low • High
LEGAL STATUS • Legal as food supplements, cosmetics, and vapes • Legalised in the UK from 1 November 2018
in UK • Legalised in Germany March 2017
ACCESS TO SUPPLY • EU compliant supply secured • Pharmaceutical standard supply secured
NEXT STEPS • Launch the leading lifestyle CBD brand and • Import into UK, Germany, Poland with valid licences:
products in the UK with superior quality featuring * ACQUIRED THERIMOS LIMITED, EU LICENSES:
the latest technology: - CONTROLLED DRUGS
- MANUFACTURER’S SPECIALS
• CBD CAPSULES
- WHOLESALE DISTRIBUTION AUTHORISATION
• CBD TINCTURES
* ACQUIRING EHD SUPPLY CONTRACTS
• CBD SKINCARE
• BOZY CBD FOR PETS • Partner with patient advocacy groups and
influential medical practitioners to help shape the
• Launch marketing and social campaigns future of medicinal cannabis
• Launch Scientific Advisory Board (SAB) to establish
credentials within the medical community
• Partner with online pharmacies
EU MARKET SIZE
£50B 2
£650M 1
£6.9B 2
£140M 1
2018 2028 2018 2028
1 Canaccord Genuity UK Equity Research January 2019.; 2 Prohibition Partners 4th Edition of The European Cannabis Report Jan 2019
5 | CONFIDENTIAL: FOR ADDRESSEE ONLY
TEAM – HIGHLY EXPERIENCE MANAGEMENT WITH CORPORATE & START-UP SUCCESS
M. Scott Maguire Clive Sharpe David Hogg Leah Park Joshua Roberts Liam McGreevy
Chief Executive Officer Chairman Chief Financial Officer Chief Creative Officer Chief Business Officer Cannabis Insight Officer
Expertise in starting and building Highly experienced, successful Experienced CFO, qualified Serial entrepreneur with brand, Investor and entrepreneur with Progressive entrepreneur with
businesses. Scott has played a key chairman in NED roles and former Chartered Accountant and board- design, and advertising expertise. experience in institutional investment expertise in the cannabis industry.
role as an executive in building five CEO positions, across various food level director with a demonstrated Leah has experience starting, funding and trading, international real estate Liam has a unique skill set across
companies or divisions of larger manufacturing sectors, in blue-chip history of developing and growing and exiting businesses as well as investment, and private market sales, business development,
companies from concept to high corporates and private equity- service businesses leading to taking on roles as creative director, investment. Joshua worked for compliance testing, horticultural
value including trade sales and IPO. backed businesses, with particular improved shareholder value. Highbridge Capital Management for equipment distribution, medicine
UX/UI designer for web/mobile/app
Scott has built a company from two skills in deal-making, turnarounds Numerous M&A activities including over a decade in London and New production and distribution, and
programs, product management,
York and established the European
patents to a NASDAQ listing (ticker: and transformation, and building the successful exit of a private production, traditional advertising, regulatory engagement. Liam has
trading desk for the StatArb team in
XBIO) and has also built a dialysis great teams with specific focus on equity-owned business. Developed editorial art direction, press, media, built businesses offering technical,
London. He started angel investing in
clinic chain from scratch to the UK’s executional excellence, meeting or significant improvements in and social media content curation. business development and market
2010 and cannabis has been his
second-largest private provider of exceeding the needs of all management reporting, controls and Leah was a founding member of Gilt access services in highly regulated
investment focus since early 2017 in
dialysis services. He has assisted in stakeholders, particularly value strong financial reporting acting as a Groupe where she was responsible sectors, as well as building brands
both the public and private markets.
building National Medical Care’s creation for shareholders. business partner for the for the vision, design, brand, voice, through healthcare product
fledging international business from Chairman/CEO of companies with development of the organisations. customer journey, and internal ad VP & Head of European Trading, distribution and representation in
$15M to $350M in revenues. Scott also transaction values of $1.5B. Lead several refinancings with agency for all business verticals and Statistical Arbitrage Desk, Europe.
built a healthcare corporate finance strong banking relationship projects. Leah has managed Highbridge Capital Management,
practice from scratch to 35 Chairman of Janan Meat Ltd experience. customer bases of over two million London Managing Director of Wholesale
professionals globally. and was responsible for the daily Horticultural Group UK
Chairman of First Milk Ltd Executive Director of Bridge Farm operation for every customer VP & Head of Operations,
Chair & CEO of Xenetic Biosciences Group touchpoint. Statistical Arbitrage Desk, Founder & CEO of Elite Healthcare
(NASDAQ: XBIO) Chairman of Peters Food Service Highbridge Capital Management, Distribution (EHD)
Managing Director of ABM UK Founder of Park Brand Agency NYC
Co-Founder of Renal Services Chairman of Quorn Foods Founder & CEO of Ethnopharm Group
CFO & Managing Director of 8 Co-Founder & Chief Design Officer of Commodities Trader, Statistical
Co-Founder of Healthcare Capital Non-Executive Director of F Duerr Solution Ltd Project September Arbitrage Desk, Highbridge Founder of European Cannabinoid
Partners & Sons Ltd Capital Management NYC Therapy Association
Financial Director of May Gurney Founder & CEO of Vaunte, Inc
Co-Founder & Director of Arthur Chairman of Burton’s Biscuit UK Financial Director of Chubb Fire Serial Angel Investor Founder & Director of Agri Tech Solutions
Andersen-Healthcare Corporate Company & Security VP of Creative & Brand at Gilt
Finance Groupe Public & Private Cannabis Investor Lab Supervisor at Cemex National
Chairman & CEO of WT Foods, Head of Finance of Associated Technical Centre
Head of Global Corporate CEO of Golden Wonder British Ports Senior Art Director at Bergdorf
Development of National Medical Care Goodman Lab Manager at Bureau Veritas
Group Financial Director of Commercial testing
Nationwide Accident Repair Services Senior Designer at Landor Associates
6 | CONFIDENTIAL: FOR ADDRESSEE ONLY
TEAM – NON-EXECUTIVE DIRECTORS
Chris Sullivan Sir Nigel Knowles Michael Freedman Stanton Maclean
Ex-Deputy Group CEO of RBS Ex-Global Co-Chairman of DLA Piper CEO of Alchemy Media Ex-Managing Director, JPMorgan
Ex-CEO Corporate Banking of Santander Chairman of DWF Group PLC Entrepreneur in the USA Cannabis Sector Non-Executive Director
Non-Executive Director Non-Executive Director Non-Executive Director
E. Stanton McLean retired as Managing Director, Head
Chris recently retired from his role as Chief Executive Sir Nigel Knowles is Chairman of global legal business In addition to Mike’s entrepreneurial activities in the of European Loan Sales at JPMorgan at the end of
of the Corporate & Investment Bank at Santander UK DWF. media space over the past 30 years, Mike was an early 2018. A leveraged finance specialist, Stanton spent
at the end of October 2018, having successfully built mover in the U.S. domestic medical cannabis business more than 20 years with JPMorgan in New York and
and grown the business over the last 3 years to He is former Global Co-Chairman and Senior Partner dating back to late 2013 with his involvement in the London. Having begun his career in banking, Stanton
comply with the UK Banking Reform standards. Prior of DLA Piper, having previously served as Global Co- founding of Advanced Grow Labs LLC (“AGL”) a worked in the Global Syndicated Finance Group –
to joining Santander, Chris had spent 40 years with CEO and Managing Partner for nearly twenty years. Sir Connecticut limited liability company. In 2014, AGL originating and structuring some of the largest and
the Royal Bank of Scotland and NatWest in various Nigel is credited with DLA Piper’s remarkable growth, and team received the first of the four medicinal most complex debt financings for corporate
CEO roles with 11 years on the Group ExCo which leading the firm through a series of mergers and marijuana grow licenses issued by the State of acquisitions and sponsor buyouts.
included heading up Corporate Banking, Retail taking the firm from its regional origins to the global Connecticut.
Banking, Direct Line/Insurance businesses and Retail firm it is today. In 2003, Stanton moved to London to help establish
Direct Division culminating in appointment to his final From licensing, through the buildout of a state of the and grow the European institutional investor market in
role with the Group as the Deputy Group Chief Sir Nigel received a Knighthood in 2009 in recognition art medicinal grow facility in West Haven, CT AGL conjunction with the rapid growth of the European
Executive in March 2014. of his services to the legal industry. grew rapidly both in Connecticut, and latterly into the leveraged finance market. In addition to running
Commonwealth of Massachusetts through a venture Primary Distribution, Stanton took over as Head of
From 2009 for 5 years in his role as the CEO of RBS Legal Business awarded Sir Nigel a "Lifetime established following on the passing of Massachusetts’ Secondary Loan Sales in 2009 and oversaw the sales
Corporate Banking Division, Chris rebuilt the bank to Achievement" award" in 2015 and Sir Nigel was given recreational cannabis laws. Along the way the AGL and trading of par, stressed and distressed loan
create the largest Corporate Bank, Commercial Bank, the Financial News "Editor's Choice" award for team organized, funded and bid on de novo medicinal assets.
Invoice Finance business, Asset Finance business Lifetime Achievement (2016). licenses in New York and Pennsylvania. With AGL’s
(Lombard) and Transaction Services/Payment highly successful exit to GTI in February 2019, Mike Stanton received his MBA from Columbia Business
business in the UK. As part of this role Chris also had Sir Nigel was Chairman of Sheffield City Region LEP has had a front row seat in the lifecycle of an early School and his undergraduate degree from
responsibility for Ulster Bank. During his time in this from 2015 to 2018 and now is a special advisor to the mover, first generation cannabis company. Georgetown University.
role he championed the return to professional Mayor, Dan Jarvis and a Trustee of The Prince's Trust.
qualified bankers and introduced new propositions for Sir Nigel was High Sheriff of Greater London from As a Director, Mike brings to the Cannaray board, the
Entrepreneurs and Women in Business. 2016-2017. deep experience of having already tread the path that
Cannaray has embarked on.
Throughout his career, Chis has focussed on building Sir Nigel is a Fellow of Harris Manchester College,
new propositions and businesses, e.g. WorldPay, Oxford University and is a Visiting Professor of the
Direct Line Group, RBS Aviation Capital and Lombard University of Sheffield having received an Honorary
– businesses sold and valued in excess of £20B. Doctorate of Civil Law from the University in July 2011.
7 | CONFIDENTIAL: FOR ADDRESSEE ONLY
TEAM – SCIENTIFIC ADVISORY BOARD
Ben Thomas Dr David Moorhouse Dr Tom Jenkins Emily Collins
MBBS FRCA FFPRMCA MB, BCh, BAO, MRCPI MBChB, MRCP, PhD MBChB BSc MA FRCP
Scientific Advisory Board Scientific Advisory Board Scientific Advisory Board Scientific Advisory Board
Pain Specialist General Neurologist Neurologist Palliative Medicine
Dr Thomas is a Consultant in Anaesthesia and Pain Dr David is a general neurologist specializing in Dr Tom Jenkins is a Senior Clinical Lecturer in Dr Emily Collis is a Consultant in Palliative
Medicine based in West London. He provides neurophysiology whose clinical practice sees an Neurology and Consultant Neurologist based in Medicine at University College London Hospital
assessment and treatment options for chronic pain average of 100 patients per week. Many of his Sheffield, UK. He obtained his degree in Medicine NHS Foundation Trust. She leads the UCLH
conditions, and also leads locally on acute patients have conditions like movement disorders, at the University of Manchester in 1999, and his Transforming End of Life Care Team and is the
inpatient care managing complex post operative epilepsy, headaches and multiple sclerosis. He also PhD in Clinical Neuroscience from University Palliative Medicine Lead for the UCLH Medicine
and medical conditions. His goal is pain reduction has a specific interest in peripheral College, London in 2010. In addition to twenty Board. She provides palliative care for adults and
and improved function. He regularly lectures neuropathology including radiculopathies, years of clinical experience, he has expertise in children with a wide range of medical conditions,
domestically and internationally. Ben has peripheral neuropathies and mononeuropathies as conducting longitudinal neurological research including treatment of the symptoms of pain,
undertaken roles as principle investigator for NIHR well as treating various neuropathic pain studies, and is Principal Investigator for several nausea and intractable seizures, across inpatient
trials investigating novel analgesic medications as syndromes. He is interested in finding new ongoing commercially sponsored studies in motor and community settings. Her aim is to take a
a result of his interest in both neuropathic pain medication to treat these disorders. neuron disease. patient centred approach to quality of life in the
and the assessment of innovative technology setting of life limiting and life threatening disease.
aimed at assisting in management of difficult to Neurology Residency, University of California, San Co-Director of the Sheffield Motor Neurone
treat conditions. Diego Disease Care Centre BSc (hons) Neuroscience, Edinburgh
Fellow of the Royal College of Anaesthetists, UK Diplomat, American Board of Electrodiagnostic MA in Clinical Education, Institute of Education,
Medicine DABEM London
Fellow of the Faculty of Pain Medicine, UK
Diplomat, American Board of Psychiatry/ Fellow of the Royal College of Physicians, London
Neurology DAPN (Board Certified 1998)
Fellowship, Electromyography at the University of
California, San Diego
Membership, Royal College of Physicians of
Ireland, MRCPI
SAB Member, Irish Neurological Society
8 | CONFIDENTIAL: FOR ADDRESSEE ONLY
TEAM – SCIENTIFIC ADVISORY BOARD CONT.
Dr Andrew Aswani Dr Peter Laing Simon Tallett Richard Davey
MB, ChB, MRCP, FRCA, EDIC, BSc, PhD BSc, MPharm, ABPI, GPhC BSc (Hons), Dip Acc. & Fin, CEng,
FFICM, PhD MIChemE
Scientific Advisory Board Scientific Advisory Board
Scientific Advisory Board Drug Delivery Specialist Pharmacist Scientific Advisory Board
Intensive Care and Anesthesiologist Pharmaceutical Distribution
Dr Laing is an expert in drug delivery and Simon is a healthcare and life science expert
Dr Andrew Aswani is a Consultant in Intensive immunology. Before joining the biotech Industry specializing in the fields of pharmacology, clinical Richard is the Managing Director of Therismos
Care Medicine and Anaesthesia at Guy’s and St he served as a Lecturer in Immunology at the development as well as business development for Limited, having founded the company in 2011. He
Thomas’ NHS Foundation Trust. He is responsible University of Nottingham, later joining Peptide the healthcare sectors. Simon’s combined has extensive knowledge of Good Distribution
for treating a wide range of critically unwell Therapeutics plc as Director of Research through connections in the medicinal cannabis and Practice (GDP) in the UK and across the EU, and
patients, including managing complex pain needs their main board listing on the London Stock financial sectors allow him to establish profitable its application to new and innovative areas such as
in the post operative, sickle cell crisis and acute on Exchange. He has since served CSO/COO and collaborations. His passion and belief that orphan drug products, controlled drugs, ATMP
chronic pain patient populations. similar roles at several biotech companies in the medicinal cannabis has a rightful place in modern and unlicenced medicines. Richard has worked as
UK, notably Lipoxen plc through their AIM listing, therapeutics, drives him to seek out novel projects a Responsible Person (RP) on several Wholesale
Membership of the Royal College of Physicians, and at United Therapeutics Europe Ltd. where he to help companies realize the true potential of Licences and is experienced in the design and
London was responsible for drug delivery projects. their ideas. operation of agile and efficient supply chains for
delivering medicines from manufacturing through
Fellow of the Royal College of Anaesthetists, UK CEO of Excivion Ltd, a company developing novel CEO, Perceptive Edge to patients.
vaccines and diagnostics for infectious diseases
European Diploma of Intensive Care, UK and cancer Scientific Consultant, GRW-group LTD Chartered Engineer, Institute of Chemical
Engineers, UK
Dual Certificate of Completion of Training in PhD in Endocrinology from the University of Bath, Pharmacist/Clinical Development, Skills Alliance
Intensive Care and Anaesthesia, London UK
Member of the Institute of Chemical Engineers,
Clinical Pharmacists Specialist, Paydens UK
Fellow of Faculty of Intensive Care Medicine, UK Postdoctoral Research in Autoimmunity at The
University of Otago, NZ Pharmacist, Great Ormond Street Hospital for BSc (Hons) in Chemical Engineering, UK
PhD in Translational Medicine and Therapeutics, Children NHS Foundation Trust
London Postdoctoral Research in Autoimmunity at Bristol
Diploma in Accounting & Finance ACCA, UK
University, UK
Postdoctoral Research in Autoimmunity at NIH/
NIMH, USA
10 | CONFIDENTIAL: FOR ADDRESSEE ONLY
MEDICAL CANNABIS
Patients suffering from chronic pain and
other serious neurological or psychiatric
conditions have been crying out for this
kind of life-changing treatment
- Dr David McDowell
10 | CONFIDENTIAL: FOR ADDRESSEE ONLYMEDICAL CANNABIS – UNIQUELY POSITIONED AT THE FOREFRONT OF ADOPTION
Current Landscape Our Execution Plan
• UK early stage market will take time to grow Medicinal cannabis supply & distribution
• Licenses acquired via acquisition of Therismos
• Germany/Poland expanding rapidly compared to rest of EU • Product available from EHD supply contracts
• Physicians not educated on products or applications - Import from Netherlands/Australia/Tazmania (in-process)
• Partnership with online pharmacies for UK & EU sales
• Lack of EU pharma standard producers
• Under-supply of medicinal product Physician outreach program
• Therapeutic indication conference sponsorship
• Products are crude and difficult to dose • Professional education program developed through SAB
• Patients are self-titrating to achieve efficacy • Educated sales teams assisting physicians in understanding application
• Provide physicians dose-able products they are more comfortable prescribing
• Difficult to move product because of licenses
Establish leadership and credibility
• SAB working with patient advocacy groups to establish product-condition protocols
• Run small scale observational trials in conjunction with credible institutes
Cannaray’s Advantage Over North American Companies • Lobby health authorities to cover products under national healthcare programs
For international cannabis companies, Europe will UK: Establish a dominant early position
be one of the most difficult markets to enter due to • Import medicinal cannabis products through multiple supply channels in 2019
• Work with MHRA and NICE to confirm product efficacy
the strict regulatory framework, complex licensing
• Secure NHS coverage to the benefit of patients
and trading requirements and cultural and societal
nuances around cannabis consumption Germany & Poland: Gain traction in an under-supplied market
- Prohibition Partners 3rd Edition of The European Cannabis Report July 2018
• Hire Managing Director of Germany and Poland (completed)
• USP: organic and non-aradiated product
• Import flower product to establish initial footprint
• Develop product approvals for manufactured products
11 | CONFIDENTIAL: FOR ADDRESSEE ONLYMEDICAL CANNABIS – MARKET SIZE
Market Value Market Capture
• German market legalised from March 2017 German Medicinal Market Growth (from legalisation in March 2017)
• UK market legalised from November 2018
60.0
• German market has grown to be worth £72M p.a. at Q4 2018
Prescriptions issued p/quarter (‘000)
50.0
• Cannaray will enter German market in Q4 2019
• Forecasts assume UK market will grow in the same manner as the German market 40.0
• Prohibition Partners research Jan 2019 estimates the medicinal market in the 30.0
UK and Germany will be worth £7.7B and £6.7B respectively in 2028 20.0
• Cannaray will focus on providing products designed specifically for the top
10.0
four indications (CINV, Epilepsy, MS, chronic pain) in both the UK and Germany
0.0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2017 2018
Top Four Indications For Cannabis Use (UK & Germany) *Canaccord Genuity Research August 2018
Chronic
Pain 1
29M Patients Cannaray Turnover Growth
2,500
Cancer 2
3.3M Patients
2,000
1,500
Epilepsy 3 1.4M
Patients
Turnover (£‘000)
1,000
Multiple 0.2M 500
UK
Sclerosis 4 Patients
Germany
0.0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
1 Pain Alliance Europe; 2 Globocan 2018; 3 ILAE/IBE/WHO; Global Campaign Against Epilepsy;
2019 2020
4 European Multiple Sclerosis Platform
12 | CONFIDENTIAL: FOR ADDRESSEE ONLYMEDICAL CANNABIS – COMPARABLES
Canopy Growth, Tilray and Aurora Cannabis were all founded in 2013 following Canadian medical legislation. Having established research,
cultivation, processing, and distribution for medical cannabis, they were positioned as leaders in the legalised adult-use cannabis market.
Canopy and Aurora opted for the IPO route in 2014 and Tilray stayed private until its IPO in 2018.
Canopy Growth (CAN) Tilray (CAN) Aurora Cannabis (CAN) Cannaray (UK)
Launched 2013 2013 2013 2019
Market Cap £6.7B £2.4B £4.7B
Revenue Multiple 36x 68x 103x
CGC (NYSE), WEED (TSE) TLRY (NASDAQ) ACB (NYSE), ACB (TSE)
Ticker
2017 2018 2019 2016 2017 2018 2016 2017 2018 2019(E) 2020(E) 2021(E)
Revenue £22.8M £44.5M £185.2M £9.7M £15.8M £35.4M £0.8M £10.3M £45.2M £19M* £32.2M £52.1M
Operating Profit -£8.7M -£58M -£453M -£5.4M -£5.8M -£47.3M -£2.6M -£6.4M -£65.6M -£3.6M* -£1.3M £4.2M
As of September 4, 2019
*Cannaray’s 2019(E) figures are annualised
13 | CONFIDENTIAL: FOR ADDRESSEE ONLYWELLNESS CBD
Consumers are looking for the profound
benefits of CBD but they must navigate an
immature market
14 | CONFIDENTIAL: FOR ADDRESSEE ONLYCBD – FAST GROWING RETAIL SECTOR
Consumers say CBD is effective for:* UK CBD Market Size & Cannaray CBD Forecast•
Anxiety
Insomnia, Sleep Problems
Joint Pain, Inflammation
Depression
Muscle tension or Strain
Migraines, Tension Headaches
Severe or Chronic Pain
Arthritis
Nausea
0% 10% 20% 30% 40% 50% 60%
*Brightfield Group and HelloMD’s 2017 report: Percentage of
sample group stating that these conditions are effected by the
use of CBD
•Figures based on Prohibition Partners’s number of UK CBD users Jan 2019
We now believe that CBD & CBD- Market growth based on 25% of Europe’s population suffers from depression or
containing products already generate 30% CAGR as forecast by anxiety, and given the mood-enhancing benefits of CBD,
retail sales in the £650-£870M range Europe and UK Cannabidiol demand for CBD-based products that can boost mental
across Europe (for 2018) Market Research health will experience strong growth
- Canaccord Report 2019 - Ameco Research 2018 - Prohibition Partners 2019
15 | CONFIDENTIAL: FOR ADDRESSEE ONLYCBD – BE THE TRUSTED UK CBD BRAND SUPPORTED BY COMPANY MEDICAL POSITIONING
• 5x bioavailability (patented technology)
• Product transparency and quality
• GMP certified, GMO-free
• Free of heavy metals, toxins
SUPPLEMENTS TINCTURES SPRAY
16 | CONFIDENTIAL: FOR ADDRESSEE ONLYCBD – BOZY PET PRODUCTS
Product Quality
The Bozy Story
• Product transparency and quality
Our CEO’s Cavalier King Charles dog • GMP certified, GMO-free, organic
called Bozy, was diagnosed with stage
five liver lymphoma at only nine months
old in August 2018.
Bozy was given two days to two weeks to
live by a leading vet in Berne, Switzerland.
After administering cannabis derived
products twice daily Bozy’s appetite came
back, his quality of sleep improved, and he
is still alive today.
Pet-and-animal product sales are
estimated to reach $125 million by 2022,
representing a 5-year CAGR of 57
percent, among the fastest-growing
sectors in the CBD market (US)
- New Frontier Data 2018
SUPPLEMENT TREATS
17 | CONFIDENTIAL: FOR ADDRESSEE ONLYCBD – COMPARABLES
Charlotte’s Web, Elixinol Global, and CV Sciences were founded to explore and develop the hemp and CBD market. Charlotte’s Web has
emerged as the leader in the industry. Cannaray will differentiate itself with latest generation products backed by patented technology,
branding, marketing, connections to ambassadors, and a campaign to de-stigmatize stress and anxiety.
Charlotte’s Web (US) Elixinol Global (AUS) CV Sciences (US) Cannaray (UK)
Launched 2014 2014 2012 2019
Market Cap £642M £160M £272M
Revenue Multiple 15x 8x 16x
Ticker CWEB (CSE) EXL (ASX) CVSI (OTC)
2016 2017 2018 2017 2018 2016 2017 2018 2019(E) 2020(E) 2021(E)
Revenue £11.3M £30.8M £42.9M £0.003M £20.6M £8.5M £15.9M £39.5M £19M* £32.2M £52.1M
Operating Profit £0.8M £9.2M £10.6M -£4.6M -£0.5M -£10.4M -£3.7M £8.4M -£3.6M* -£1.3M £4.2M
As of September 4, 2019
*Cannaray’s 2019(E) figures are annualised
18 | CONFIDENTIAL: FOR ADDRESSEE ONLYFor the full investment memorandum, please contact:
Josh Roberts, Chief Business Officer at
joshua@cannaray.co.uk
+44 (0) 7539 414529
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