updated investor presentation - the hydroponics … updated investor presentation. this presentation...
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The Hydroponics Company Limited (ASX: THC) ACN: 614 508 039
Level 2, 131 Macquarie Street,
Sydney NSW 2000 Australia
www.thcl.com.au
ASXRELEASE(6thJune2017)
UPDATED INVESTOR PRESENTATION
The Hydroponics Company (ASX:THC), in accordance with ASX Listing Rule 3.1, provides an updated Investor Presentation.
This presentation is being used for current roadshows and investor briefings by the Company.
For further information, please contact:
Henry Kinstlinger, Company Secretary The Hydroponics Company Limited Level 2, 131 Macquarie Street, Sydney NSW 2000 Australia P:+61292517177M:+61418613028E:[email protected]
DISCLAIMER
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Thematerialinthispresentation(material)isnotanddoesnotconstituteanoffer,invitationorrecommendationtosubscribefor,orpurchaseanysecurityinTheHydroponicsCompanyLimited(THC)nordoesitformthebasisofanycontractorcommitment.THCmakesnorepresentationorwarranty,expressorimplied,astotheaccuracy,reliabilityorcompletenessofthismaterial.THC,itsdirectors,employees,agentsandconsultantsshallhavenoliability,includingliabilitytoanypersonbyreasonofnegligenceornegligentmisstatement,foranystatements,opinions,informationormatters,expressorimplied,arisingoutof,containedinorderivedfrom,orforanyomissionsfromthismaterialexceptliabilityunderstatutethatcannotbeexcluded.Statementscontainedinthismaterial,particularlythoseregardingpossibleorassumedfutureperformance,costs,dividends,productionlevelsorrates,prices,resources,reservesorpotentialgrowthofTHC,industrygrowthorothertrendprojectionsare,ormaybe,forwardlookingstatements.
Suchstatementsrelatetofutureeventsandexpectationsand,assuch,involveknownandunknownrisksanduncertainties.Actualeventsandresultsmaydiffermateriallyfromthoseexpressedorforecastedinforward-lookingstatementsduetoanumberoffactors.TheprincipalimportantriskfactorsthatcouldcauseTHC’sactualperformanceandfutureeventsandactionstodiffermateriallyfromsuchforward-lookingstatements,include,butarenotlimitedto,continuingvolatilityinthecapitalorcreditmarketsandotherchangesinthesecuritiesandcapitalmarkets,changesinmarketpricesofTHC’sinvestments,theoccurrenceofoneormorecatastrophicevents,suchasanearthquake,hurricane,oractofterrorism,changesinlawsorregulations,changesinincometaxlaws,andchangesingeneraleconomicandmarketfactorsthataffectthepricesofsecuritiesortheindustriesinwhichitdoesbusiness.
Thispresentationincludescertainstatements,estimatesandprojectionsthatrelyuponvariousassumptions.Thoseassumptionsmayormaynotprovetobecorrect.ThePresentationdoesnotpurporttocontainalltheinformationthataprospectiveinvestormayrequire.Theinformationmaynotbeappropriateforallpersons,anditisnotpossibleforTheHydroponicsCompanyLimitedtohaveanyregardtotheinvestmentobjectives,financialsituationandparticularneedsofeachrecipientwhoreadsorusesthisinformation.
THE HYDROPONICS COMPANYCANNABIS IS THE WORLD’S NEW HIGH GROWTH SECTOR
Medicinalcannabisdivision–pharmaceuticalmodelforAustralia
targetingest.$100mmarket
Newtechnologyinwaterpumps,waterpurificationandcannabisgenetics
Hydroponicsdivisionwithmorethan5yearsprofitabletrading
End-to-endcoverageofcannabismarketswithsignificantsynergies
Greenhousedivisionenablingnext-generationindoorfarming
Morethan17yearsofcannabisgrowingexperience
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Positionedforfutureacquisitionsinternationally
SHARE STRUCTURE
SharePrice SharesonIssue FreeTradingShares
EscrowedShares MarketCap Top20 NumberofShareholders
THC:30cTHCO:7.3c
104.1million
47.1million
57.0million
$31.2million
46.3% 1622(IPO:752)
TheHydroponicsCompanyLimitedat1June2017
ASX:THC
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CANNABIS IS A THRIVING OPPORTUNITY
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USALegalCannabismarket(medicinal+recreational)
estimated
US$20Bby 2021
USCannabis-relatedestimatedindustryrevenues
US$24B-US$44Bin2020
89%oftheUSsupportdoctorrecommended
medicinalcannabis
US
29USStates+DCmedicinalcannabislegalised
7USStatesrecreationalmarijuanalegalised
Canada
Medicinalcannabislegalised
1July2018legislationofrecreationalmarijuana
Australia
Greatdemandpotential
1.8mpatientswithneuropathicpain
PORTFOLIO APPROACH TO CANNABIS
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WhyDiversify?
Multiplebusinesstypesincannabisspace
Manylistedcompanieshavenorevenue
Optionsfordiversification• Selfmanageddiversified
portfolio• ETFinmedicalmarijuana
Cannabisisanewinvestmentsector
Growthopportunitiesareglobalanduneven
PORTFOLIO APPROACH TO CANNABISContinued
Separatedivisionsforfarmestablishment,growingsupplies
andmedicinalcannabis
Multiplesectorexposure,eachwithhighgrowthpotential
ExposuretoUSA,Canada,CentralAmerica,Europe,
AustraliaExpansionthroughnewtechnologyintroduction
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Profitablehydroponicsdivision
Positionedforfutureacquisitionandfurtherpositivediversification
A VERTICALLY INTEGRATED, DIVERSIFIED BUSINESS
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Australia
Asia
Americas
Canada
CanndeoLimitedMedicinalCannabis
AmericanIndoorFarmingLargeScaleGreenhouses
IPResearchandDevelopment
HydroponicEquipment
GreenhouseDesign,ConstructionandManagement
TheHydroponicsCompanyLimited(THC)
A&BCollaborationDesignandConstruction
ofGreenhouses
PegasusAgricultureEpigeneticProcessIPAcquisition
CrystalMountainProductsDistributionandWholesale
Supa-Stelth PumpsMarketingAgreement
DragonVisionManufacturing
InnaWaterMarketingAgreement
CANNDEO
Thisdivisionaimstoleadthedevelopmentoftherapeuticallysuperior,paramountqualityandcosteffectivemedicinesderivedfromCannabissativa.
Growing&ExtractionTechnology
ProductDevelopmentDeliveryMethods
AustralianManufacturing
SalesofProprietaryMedicines
FutureIPResearch
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ConvertinguniqueintellectualpropertyincannabisbreedsandextractiontechnologytoapprovedproductsfortheAustralianmarket
A NEW CLASS OF MEDICINAL PRODUCTSAustralia
Clearstrategyforbringingmedicinalcannabistothe
Australianmarket,estimatedat$100-400m
+17yearsofCannabissativabreeding,varietyselectionand
growthmanagement
CollaborativeR&D discovery projects formedicinalcannabis
Target multiple markets withhighpuritycannabidiol(CBD)
ProductionunderGovernmentlicensing program
Anewclassofmedicinalproductstargetingdementia,neurological,epilepsyandotherdisorders
Pursuingapharmaceuticalmodel
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CANNABIS
TRENDSinPharmacologicalSciences
Antiproliferative
Anxiolytic CB1(+)5- HT1A (+)
Antispasmodic
Vasorelaxant PPARY (+)
Neuroprotective[Ca2+]I↓ROS↓
AntipsychoticTRPV!(+)
Antiepileptic [Ca2+]↓
Anti-ischemic5-HT1A (+)
Antiproliferative,anticancer[Ca2+]I↓ROS↓CB2 (+)Id-1↓
Antiemetic
Antibacterial
Antidiabetic
Antipsoriatic
Intestinalanti-prokinetic
Analgesic
Bone-stimulant
Anti-inflammatoryTNF-a↓AdenosineUptake↓
ImmunosuppressiveT-cells↓
CBD(Cannabidiol)
DiverseMedicalUses
Bone-stimulantCBDV
Antiproliferative
Antispasmodic
∆9 THCA
Anti-inflammatory
Analgetic
Bone-stimulant
Antimicrobial
Antiproliferative
CBC
Antiproliferative
Bone-stimulant
Antibacterial
CBGAnorecticCB1(-)
Bone-stimulantCB2(+)
AntiepilepticCB1(-)GABA
∆9 THCV
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EP IGENET IC T ECHNOLOGY I PInnovativePlantBreedingforacceleratedgrowthandhigherreturn
NoforeignDNAintroduced
Non GMO
Quickerandhigherreturnstobreeders
Grows 33% to 40% faster
Thriveundermyriadenvironmentalstressors
Selectively bred
Idealcandidatesforgenesilencing
Stable
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PHOENIX LIFE SCIENCES – F.A.S.T.
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ChronicPain
• Unparalleledqualitycontrol,GMP
• Comparativedatatomarketedcompounds
• Optimizedformulationtomaximizesymptomrelief
• Hempextract,highCBD,NOTHC
PhoenixLifeSciencesF.A.S.T.product istargetedinUSAforinflammatory,neuropathic,and
post-surgicalpain.
CANNDEO TIMELINE*
Applicationforresearchlicenselodged
AlliancewithInternationalPartner
Establishmarketandchannel
Internationalpartners:SalesandIPagreement
Pre-clinicalinvestigationofhighpotentialextracts
CollaborationwithgovernmentonR&D
Domesticmarketgrowththroughexpandedproductuse
Marketexpansionthroughinternationalpartnersales&licensing
Co-fundinghighpotentialnewmedicines
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2017 Q3/Q42017 Q1/Q2 2018 Q1/Q2
*Performanceanddatesaresubjecttochangeandareindicativeonly.
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OUR EXPERIENCED BOARD
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MaryVerschuerNon-ExecutiveDirector
Experiencednon-executivedirectorwithmorethan20yearsinseniormanagementincludinginitiating,executingandintegratingacquisitions
AlanBeasleyChairman
Morethan30yearsininvestmentbankingandmanagement,withseniorrolesatBankersTrustAustralia,GoldmanSachsandBNPParibas
IanMuttonNon-ExecutiveDirector
Practicingdirectorofalawfirmspecialisingincontractrelatedmatters,competitionandproductliabilitylaws.Assistslistedcompaniestoimplementsystemsforongoingcompliancewiththelistingrulesandregulations
PeterWallaceNon-ExecutiveDirector
Morethan30yearsexperienceasacompanydirector,spanningprivateequity,corporateadvice,non-executivedirectorshipsandfinancialcontrol.
HamishMacDonaldChiefExecutiveOfficer
Extensivebiotechnologyexperience.Spearheadeda500MWHofftakeagreementwithClenergen Ltd,jointventurewithLincEnergyLtd
JohnHallExecutiveDirector
Over30yearsinplantbreeding,cropmanagementandmonitoringsystems,includingmajorAustralianinnovations