United Cannabis — Investor Presentation (October 2019)
18 slides from United Cannabis's investor presentation, Oct 22, 2019
Slide 1: United Cannabis Corporation (UCANN)
UNITED CANNABIS ( UCANN ) United Cannabis Corporation Symbol: “CNAB”
Slide 2: Disclaimer
DISCLAIMER This presentation contains projections and other forward - looking statements. Any such statements reflects the company's current views with respect to future events and financial performance. No assurances can be given, however, that these events will occur and actual results could diffe
Slide 3: What Makes UCANN Different? Company Highlights
WHAT MAKES UCANN DIFFERENT? PROVEN EXTRACTION AND LABORATORY FACILITIES ⁃ Colorado facility on track for $20m revenue 2019 LOW - COST, HIGH OUTPUT PROPRIETARY TECHNIQUES ⁃ Ethanol recovery; low cost goods sales model ⁃ Recovery of theoretical volume of cannabinoids ⁃ Cleanest crude (multi - stage fi
Slide 4: Taking Low Cost, High Production Facility Template Into New States
TAKING SUCCESSFUL LOW COST, HIGH - PRODUCTION FACILITY TEMPLATE INTO NEW STATES BUILDING THE LARGEST US FOOTPRINT 3 OPERATING REFINERIES • Mead, CO – Q219 • McMinnville, TN – Q319 • Charleston, SC – Q419 • Du Quoin, IL – Q120 FUTURE REFINERIES • Clayton, NC – 2020 • Tampa, FL – 2020 ANALYTICAL LABS
Slide 5: Sales and Production Capacity Breakdown, Gross Profit
SALES AND PRODUCTION CAPACITY BREAKDOWN 4 GROSS PROFIT
Slide 6: Colorado Facility & Expansion, Mead
1 - COLORADO FACILITY & EXPANSION 5 MEAD, COLORADO OPENED: Q2 2019 OWNERSHIP: 100% CAPEX: $3,855,000 TOTAL AREA: 19,000 sq. ft. TYPE: Ethanol Refinery PRODUCTS: Crude Isolate Daily Days Yearly Product $250,000 $350,000 200 200 $50 million $70 million Daily Days Yearly Product $275,000 200 $55
Slide 7: Tennessee Facility, McMinnville
PRODUCTION CAPACITY – Q3 - 20 • Process up to 6,000 lbs of biomass daily. • Crude Production ﹣ 250 - 350 L / day @ $1,000 p / L ﹣ Produced product value $250,000 - $350,000 / day • Distillate Production ﹣ 200 L / day @ $5,000 / L (CBDA for smokable products) ﹣ Produced product value $1,000,000 / day
Slide 8: South Carolina Facility, Charleston
3 - SOUTH CAROLINA FACILITY PRODUCTION CAPACITY – Q1 - 20 • Process up to 25,000 lbs of biomass daily. • Crude Production ﹣ 1,500 L / day @ $1,000 p / L ﹣ Produced product value $1.5 million / day • Isolate Production ﹣ 750 kg / day @ $2,200 / kg ﹣ Produced product value $1,650,000 / day 7 CHARLSTON
Slide 9: Illinois Facility, Du Quoin
4 - ILLINOIS FACILITY PRODUCTION CAPACITY – Q1 - 20 • Process up to 25,000 lbs of biomass daily. • Crude Production ﹣ 1,500 L / day @ $1,000 p / L ﹣ Produced product value $1.5 million / day • Isolate Production ﹣ 750 kilos / day @ $2,200 / kg ﹣ Produced product value $1,650,000 / day 8 DU QUOIN, IL
Slide 10: North Carolina Facility, Clayton
5 - NORTH CAROLINA FACILITY PRODUCTION CAPACITY – Q3/4 - 20 • Process up to 100,000 - 150,000 lbs of biomass daily • Automated THC remediation • Crude Production ﹣ 6,000 L / day @ $750 p / L ﹣ Produced product value $4.5 million / day • Isolate Production ﹣ 3,000 kg / day @ $1,500 / kg ﹣ Produced pr
Slide 11: United Cannabis Potential Sales Growth by Facility
0 200 400 600 800 1,000 1,200 1,400 1,600 2018 2019 2020 2021 $(m) UNITED CANNABIS POTENTIAL SALES GROWTH BY FACILITIY Clayton, NC Du Quoin, IL Charleston, SC McMinnville. TN Mead, CO Weldona,CO $7m $20m $310m $1.3bn EXPLOSIVE SALES GROWTH POTENTIAL 10
Slide 12: Potential Customers & Retail Outlets
11 POTENTIAL CUSTOMERS & RE TAIL OUTLETS
Slide 13: Building Own Brands
12 BUILDING OWN BRANDS
Slide 14: Intellectual Property Patent Information
INTELLECTUAL PROPERTY PATENT INFORMATION • The field of the invention relates to the extraction of pharmaceutically active components from plant materials, and more particularly to botanical drug substance (BDS) comprising cannabinoids obtained by extraction from cannabis. • The invention provides a
Slide 15: Patent Applications Status
14 PATENT APPLICATIONS STATUS
Slide 16: Catalysts Expected to Bring UCANN Valuation in Line with Comparables
CATALYSTS EXPECTED TO BRING UCANN VALUATION IN LINE WITH COMPARABLES • UCANN trading on lower multiples when compared to nearest comparables: - EV/SALES CY19: 1.7x vs 6.1x ( UCANN vs Comparable Average ) - EV/EBITDA CY19: 11.5x vs 45.5x ( UCANN vs Comparable Average ) 15 VALUATION (USDm unless state
Slide 17: Valuation (continued)
VALUATION (continued) CURRENT • The current EV of UCANN is $35m • UCANN trades on multiples substantially below its comparables STATUS QUO ASSUMPTIONS • Mead only, no facility expansion • Only Q4 2019 annualised • No investment required • UCANN trades on par with comparables MID CASE 12 MONTH PLAN •
Slide 18: Management Team
EARNEST BLACKMON, FOUNDER AND CEO UCANN's Chairman and CEO, Blackmon heads the sales, marketing and business development teams. He is also a master cultivator with over two decades of experience with the cannabis plant. CHAD RUBY, FOUNDER AND COO UCANN’s President and COO, Ruby is the lead designer
United Cannabis — Investor Presentation (October 2019) on 6ix