Auxly Cannabis Group Inc. · TSX:XLY
Auxly Cannabis — Investor Presentation (September 2019)
20 slides from Auxly Cannabis's investor presentation, September 2019
Slide 1: Investor Presentation September 2019
Investor Presentation September 2019 15
Slide 2: Legal Disclaimer and Forward-looking Information
Legal Disclaimer Forward-looking Information The information provided herein is not intended to provide financial, tax, legal or accounting This corporate document contains “forward-looking statements” and “forward-looking complete the transaction described herein on the anticipated terms and timeli
Slide 3: Strategic Value Proposition
STRATEGIC VALUE PROPOSITION Focused on providing branded cannabis products backed by science and innovation HIGHLY EXPERIENCED AND SKILLED TEAM DEDICATED TO GROWTH • Industry first-movers, enterprising visionaries, and deep subject matter experts; team with unique expertise positions the company to
Slide 4: Pivotal Moment in Canadian Market Expansion
PIVOTAL MOMENT IN CANADIAN MARKET EXPANSION Focused on high-margin, value-added, branded derivative products OUR FOCUS PHASE 1: Legalization and first sales of PHASE 2: cannabis (dried Legalization of Advanced derivatives flower, certain derivative through R&D and extracts) products expected clinica
Slide 5: Highly Experienced and Skilled Team
HIGHLY EXPERIENCED AND SKILLED TEAM Team with unique expertise positions company to successfully execute strategy Chuck Rifici, CPA, MBA Hugo Alves, JD Mike Lickver, JD, MBA Jeff Tung, CFA, MBA Ian Rapsey Brian Schmitt, CPA, CFA Jeff O’Neill, MBA Brad McNamee Chairman Chief Executive Officer SVP, St
Slide 6: Unique Combination of Assets and Capabilities
UNIQUE COMBINATION OF ASSETS AND CAPABILITIES Strong capabilities across the entire value chain DIVERSIFIED CULTIVATION SCIENCE BACKED PRODUCT COMMERCIALIZATION PLATFORM DEVELOPMENT ANALYTICAL TESTING, EXTRACTION, IN HOUSE BRANDS LARGE SCALE R&D, PRODUCT DEVELOPMENT AND SUPPLY MANUFACTURING PEI Hemp
Slide 7: Diversified Cultivation Platform
DIVERSIFIED CULTIVATION PLATFORM Unique, diversified supply platform increases optionality - Portfolio of cultivation assets provide expected supply of over 100,000 kgs per annum - Mitigates operational risk of single-source of raw cannabis - Provides additional quality assurance/control of input pr
Slide 8: Developing Products Backed by Science and Innovation
DEVELOPING PRODUCTS BACKED BY SCIENCE AND INNOVATION Uniquely positioned to manufacture and substantiate derivative products R&D, Testing, Extraction and Manufacturing Science and Clinical Backbone - Extraction and in-house analytical testing - Full service Contract Research Organization (CRO) infra
Slide 9: Strategic Partners
STRATEGIC PARTNERS Partnerships with leaders to leverage best practices, accelerate growth and bring the best products to market Imperial Brands Capsugel Dixie Brands Spiritleaf Imperial Brands PLC is an international fast- Capsugel Inc., a subsidiary of Lonza Group Dixie Brands Inc., parent of Dixi
Slide 10: A Compelling Partnership to Drive Future Growth in Derivative Products
A COMPELLING PARTNERSHIP TO DRIVE FUTURE GROWTH IN DERIVATIVE PRODUCTS Imperial’s Chosen, Exclusive Partner for Cannabis-related Initiatives Globally PROPRIETARY AND SCIENCE-BACKED, INNOVATIVE VALUABLE VAPE IP AND R&D PRODUCT DEVELOPMENT GLOBAL BRAND BUILDING IN VERTICALLY INTEGRATED HIGHLY REGULATE
Slide 11: Investment and R&D Partnership with Imperial
INVESTMENT AND R&D PARTNERSHIP WITH IMPERIAL Key Transaction Terms Imperial Brands to invest approximately $123 million by way of a debenture convertible into 19.9%1 ownership of Auxly at a price of $0.81 per share, which represents an 11% premium to Auxly’s closing share price on July 24, 2019 an
Slide 12: Imperial Accelerating Auxly's Entry into High-Growth Vape Category
IMPERIAL ACCELERATING AUXLY’S ENTRY INTO HIGH-GROWTH VAPE CATEGORY Proprietary technology, IP and R&D boosts Auxly’s capability in derivative products - Imperial grants Auxly a global vape IP licence for cannabis use - Supports cannabinoid innovation to create products and brands across various cate
Slide 13: Innovative Derivative Product Portfolio
INNOVATIVE DERIVATIVE PRODUCT PORTFOLIO Dosecann equipping Auxly to capture market share following derivative product legalization DERIVATIVE PRODUCT PORTFOLIO - Innovative derivative product formulation and manufacturing underway in readiness for Phase 2 of legalization, including: Vapes Chocol
Slide 14: Diverse Brand Platform
DIVERSE BRAND PLATFORM Internally developed brands designed to target a broad market of current and future consumers Dosecann is a clinical wellness brand Kolab Project is a platform dedicated Robinsons is Canada’s premier producer Foray aims to be an accessible entry built on pillars of quality, ef
Slide 15: Domestic Distribution Channels
DOMESTIC DISTRIBUTION CHANNELS Focus on provincial boards, wholly-owned retail, strategic partners and medical channels - Established relationships with provincial boards across Canada - Developed a retail presence through our wholly owned subsidiary Kolab and through our strategic partnerships - Ta
Slide 16: Auxly Is Poised to Capitalize on the Derivative Market
AUXLY IS POISED TO CAPITALIZE ON THE DERIVATIVE MARKET Integrated platform providing branded products backed by science and innovation R&D PEOPLE PEOPLE INFRASTRUCTURE SCIENCE PRODUCTS BRANDS 16
Slide 17: Appendix
Slide 18: Capitalization Table
CAPITALIZATION TABLE AS OF JUNE 30, 2019 AS OF FEBRUARY 1, 2020 AMOUNT ($) AMOUNT (UNIT) PRO FORMA ($) PRO FORMA (UNIT) Common Shares Outstanding1 $546.0 606.7M 75.7% $546.0 606.7M 70.8% Stock Options (weighted average exercise price of $0.87)2 $39.0 44.8M 5.6% $39.4 45.3M 5.3% Warrants (weighted av
Slide 19: Board of Directors
BOARD OF DIRECTORS Hugo Alves Genevieve Young Troy Grant Chuck Rifici CEO and Director Independent Director Independent Director Chairman Hugo has played a key role in shaping the regulated Genevieve Young is the President and Chief Since 2000, Troy has held senior positions in the Chuck is a pionee
Slide 20: For More Information Contact
FOR MORE INFORMATION CONTACT: [email protected] 1 833 695 2414 15
Auxly Cannabis Group — Investor Presentation (September 2019) on 6ix