PROACTIVE INVESTOR PRESENTATION

Transcription

1 ASX RELEASE (16 th May 2017) PROACTIVE INVESTOR PRESENTATION 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: M: E: henryk@thcl.com.au The Hydroponics Company Limited ACN: (ASX:THC) Level 2, 131 Macquarie Street, Sydney, NSW, Australia p:

2 ASX:THC A leading, global cannabis business Investor Presentation May 2017

3 DISCLAIMER The material in this presentation (material) is not and does not constitute an offer, invitation or recommendation to subscribe for, or purchase any security in The Hydroponics Company Limited (THC) nor does it form the basis of any contract or commitment. THC makes no representation or warranty, express or implied, as to the accuracy, reliability or completeness of this material. THC, its directors, employees, agents and consultants shall have no liability, including liability to any person by reason of negligence or negligent misstatement, for any statements, opinions, information or matters, express or implied, arising out of, contained in or derived from, or for any omissions from this material except liability under statute that cannot be excluded. Statements contained in this material, particularly those regarding possible or assumed future performance, costs, dividends, production levels or rates, prices, resources, reserves or potential growth of THC, industry growth or other trend projections are, or may be, forward looking statements. Such statements relate to future events and expectations and, as such, involve known and unknown risks and uncertainties. Actual events and results may differ materially from those expressed or forecasted in forward-looking statements due to a number of factors. The principal important risk factors that could cause THC s actual performance and future events and actions to differ materially from such forward-looking statements, include, but are not limited to, continuing volatility in the capital or credit markets and other changes in the securities and capital markets, changes in market prices of THC s investments, the occurrence of one or more catastrophic events, such as an earthquake, hurricane, or act of terrorism, changes in laws or regulations, changes in income tax laws, and changes in general economic and market factors that affect the prices of securities or the industries in which it does business. This presentation includes certain statements, estimates and projections that rely upon various assumptions. Those assumptions may or may not prove to be correct. The Presentation does not purport to contain all the information that a prospective investor may require. The information may not be appropriate for all persons, and it is not possible for The Hydroponics Company Limited to have any regard to the investment objectives, financial situation and particular needs of each recipient who reads or uses this information. 2

4 THE HYDROPONICS COMPANY CANNABIS IS THE WORLD S NEW HIGH GROWTH SECTOR Medicinal cannabis division pharmaceutical model for Australia targeting est. $100m market Hydroponics division with more than 5 years profitable trading Greenhouse division enabling nextgeneration indoor farming New technology in water pumps, water purification and cannabis genetics End-to-end coverage of cannabis markets with significant synergies More than 17 years of cannabis growing experience Positioned for future acquisitions internationally 3

5 SHARE STRUCTURE The Hydroponics Company Limited at 15 May 2017 Share Price Shares on Issue Free Trading Shares Escrowed Shares Market Cap Top 20% Number of Shareholders THC: 34c THCO: 11.5c million 47.1 million 57.0 million $35.4 million 46.3% 1450 (IPO: 752) ASX: THC 4

6 PORTFOLIO APPROACH TO CANNABIS Cannabis is a new investment sector Growth opportunities are global and uneven Why Diversify? Options for diversification Self managed diversified portfolio ETF in medical marijuana Many listed companies have no revenue Multiple business types in cannabis space 5

7 PORTFOLIO APPROACH TO CANNABIS Continued Separate divisions for farm establishment, growing supplies and medicinal cannabis Multiple sector exposure, each with high growth potential Exposure to USA, Canada, Central America, Europe, Australia Expansion through new technology introduction Profitable hydroponics division Positioned for future acquisition and further positive diversification 6

8 CANNABIS IS A THRIVING OPPORTUNITY USA Legal Cannabis market (medicinal + recreational) estimated US$20B by 2021 US Cannabis-related estimated industry revenues US$24B-US$44B in % of the US support doctor recommended medicinal cannabis US 29 US States + DC medicinal cannabis legalised 7 US States recreational marijuana legalised Canada Medicinal cannabis legalised 1 July 2018 legislation of recreational marijuana Australia Great demand potential 1.8m patients with neuropathic pain 7

9 CANNDEO Growing & Extraction Technology Converting unique intellectual property in cannabis breeds and extraction technology to approved products for the Australian market Product Development Delivery Methods Future IP Research Australian Manufacturing Sales of Proprietary Medicines This division aims to lead the development of therapeutically superior, paramount quality and cost effective medicines derived from Cannabis sativa. 8

10 A NEW CLASS OF MEDICINAL PRODUCTS Australia Clear strategy for bringing medicinal cannabis to the Australian market, estimated at $ m Pursuing a pharmaceutical model +17 years of Cannabis sativa breeding, variety selection and growth management Collaborative R&D discovery projects for medicinal cannabis Target multiple markets with high purity cannabidiol (CBD) Production under Government licensing program A new class of medicinal products targeting dementia, neurological, epilepsy and other disorders 9

11 EPIGENETIC TECHNOLOGY IP Innovative Plant Breeding for accelerated growth and higher return Non GMO No foreign DNA introduced Selectively bred Thrive under myriad environmental stressors Grows 33% to 40% faster Quicker and higher returns to breeders Stable Ideal candidates for gene silencing 10

12 HYDROPONICS DIVISION Hydroponic equipment and nutrients Over 600 products, 9 trademarks Strong distribution networks The cornerstone of THC s acquisitions 22% increase revenue 1st Qtr 2017 Trading profitably for 5+ years across Canada, UK, EU and USA New distribution across USA and Europe 11

13 DISTRIBUTION MANUFACTURING Proprietary trademarked products include: Lighting and power supplies Lighting relays and Climate control Ventilation and Trimming Extraction bags Plant rotation systems Eyewear Nutrients and accessories 100% owned by THC Wholesale network in the US, Canada and UK Strong sourcing and quality control team in China Fast paced and innovative R&D Division with increased resources offering considerable growth potential 12

14 NEW PRODUCTS IN 2017 Award winning systems, exclusive worldwide licence, international distribution rights SUPA-STELTH WATER PUMPS INNAWATER WATER STERILISATION AND CONDITIONER SYSTEMS Exclusive license for hydroponics market distribution Innovative pumps that minimise electricity consumption Exclusive international marketing and distribution rights for hydroponic and indoor farming Award winning chemical free water purification systems 13

15 ADVANCED HYDROPONIC GREENHOUSES A&B Hydroponics is a world leader in the field of hydroponics, specializing in the design and manufacture of the finest commercial hydroponic greenhouses and growing systems available for any type of environment THC has also secured the exclusive services of agronomist Jim Barlow to represent THC throughout the Americas to develop large commercial hydroponic greenhouses 14

16 OUR EXPERIENCED BOARD Alan Beasley Chairman More than 30 years in investment banking and management, with senior roles at Bankers Trust Australia, Goldman Sachs and BNP Paribas Hamish MacDonald Chief Executive Officer Extensive biotechnology experience. Spearheaded a 500MWH Indian offtake agreement with Clenergen Ltd, forming a joint venture with Linc Energy Ltd John Hall Executive Director Over 30 years in plant breeding, crop management and monitoring systems, including major Australian innovations Mary Verschuer Non-Executive Director Experienced non-executive director with more than 20 years in senior management including initiating, executing and integrating acquisitions Peter Wallace Non-Executive Director More than 30 years experience as a company director, with a career that spans private equity, corporate advice, non-executive directorships and financial control. Ian Mutton Non-Executive Director Practicing director of a law firm specialising in contract related matters, competition and product liability laws. Ian also assists listed companies to implement systems that are intended to ensure ongoing compliance with the listing rules and regulations 15

17 THANK YOU The Hydroponics Company Limited Hamish MacDonald - CEO Level 2, 131 Macquarie St, Sydney Henry Kinstlinger Company Secretary