Auxly Corporate Overview - 2018 Financial and Operational Highlights
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Auxly Corporate Overview 2018 Financial and Operational Highlights Auxly Cannabis Group Inc www.auxly.com
Legal Disclaimer Forward-looking Information differ materially from those expressed or implied by the forward-looking information, general
The information provided herein is not intended to provide financial, tax, legal or accounting This corporate document contains “forward-looking statements” and “forward-looking business, economic and competitive uncertainties, regulatory risks including risks related to
advice. The contents hereof do not constitute an offer to sell or a solicitation of an offer to buy information” (collectively, “forward-looking information”) within the meaning of applicable the cannabis market in the United States and Canada, market risks, dict all of such factors
securities of the Auxly Cannabis Group Inc (the “Company”) or represent an intention to in- securities legislation.” Thereafter, all references should be to “forward-looking informa- and to assess in advance the impact of each such factor on the Company’s business or the
duce any person to make an investment in the Company or to assist any person in the making tion”). This corporate document may use words such as “may”, “would”, “could”, “will”, extent to which any factor, or combination of factors, may cause actual results to differ ma-
of an investment decision. Information provided on this website is for information purposes “likely”, “except”, “anticipate”, “believe”, “intend”, “plan”, “forecast”, “project”, “estimate”, terially from those contained in any forward-looking statements. Forward-looking informa-
only and shall not constitute an offer to sell or the solicitation of an offer to buy any securities, “outlook”, and other similar expressions to identify forward-looking statements. In addi- tion contained in this Presentation is based on the Company’s current estimates, expecta-
nor shall there be any sale of securities in any state in the United States of America in which tion, the Company’s assessment of, and targets for, future cultivation, production timelines, tions and projections, which the Company believes are reasonable as of the current date.
such offer, solicitation or sale would be unlawful. This Presentation includes market share, average margin on streaming transactions, investment returns on streaming transactions, The Company can give no assurance that these estimates, expectations and projections will
industry and other statistical information that the Company has obtained from independent average selling prices, cost of goods sold, o perating expenses and adjusted EBITDA are prove to have been correct. Historical statements should not be taken as a representation
industry publications, government publications, market research reports and other published considered forward-looking statements. Actual results, performance or achievement could that such trends will be replicated in the future. No statement in this Presentation is intend-
independent sources. Such publications and reports generally state that the information con- differ materially from that expressed in, or implied by, any forward-looking statements in ed to be nor may be construed as a profit forecast.
tained therein has been obtained from sources believed to be reliable. Although the Company this corporate document, and, accordingly, investors should not place undue reliance on
believes these publications and reports to be reliable, it has not independently verified any of any such forward-looking statements. Forward-looking information involves significant Use of Non-IFRS Measures
the data or other statistical information contained therein, nor has it ascertained or validated risks, assumptions, uncertainties and other factors that may cause actual future results or This Presentation refers to Adjusted EBITDA because certain investors may use this infor-
the underlying economic or other assumptions relied upon by these sources. The Company anticipated events to differ materially from those expressed or implied in any forward-look- mation to assess the Company’s performance and also determine the Company’s ability to
has no intention and undertakes no obligation to update or revise any such information or ing statements and accordingly, should not be read as guarantees of future performance generate cash flow. This data is furnished to provide additional information and are non-IF-
data, whether as a result of new information, future events or otherwise, except as, and to the or results. Forward-looking information involves risks and uncertainties including, but not RS measures and do not have any standardized meaning prescribed by IFRS. Accordingly,
extent required by applicable securities laws. limited to, the Company’s anticipated business strategies, anticipated trends in the Com- these measures should not be considered in isolation nor as a substitute for analysis of the
pany’s business and anticipated market share, that could cause actual results or events to Company’s financial information reported under IFRS.OUR VISION FROM THE OUTSET: To become the first and foremost streaming enterprise in the cannabis industry. As our business platform began to take shape, new opportunities forged new relationships, and those relationships are now the foundation atop which our company is built. Today, our vision remains unchanged while our ambition has indeed grown. We will continue to strengthen our platform, provide value for our partners and bolster the industry through ingenuity and innovation. Here, we believe tremendous results require grand ambition, honest collaboration and relentless effort. Auxly Cannabis Group Inc www.auxly.com
KEY HIGHLIGHTS AND MILESTONES IN 2018: Auxly continues to execute on its vertically integrated strategy. Key Financial and Operational Highlights Posititioned Auxly as a vertically integrated cannabis company with wholly-owned assets at each segment of the value-chain 5 wholly owned subsidiaries and 13 streaming partners** Auxly strategically organized into three segments of the industry value-chain: Upstream, Midstream and Downstream Significant working capital balance of $303M, inclusive of a $115M bought deal financing led by BMO Capital Markets Fully Funded capacity of 160,000kg per annum by 2021 Expanded Internationally with the acquisition of Inverell S.A. ** The Inverell acquisition remains subject to final regulatory approvals in Uruguay Auxly Cannabis Group Inc www.auxly.com
KEY HIGHLIGHTS AND MILESTONES IN 2018:
Auxly continues to execute on its vertically integrated strategy.
July/August 2018 August 2018
January 2018 January 2018 March 2018 May 2018 May 2018
Auxly raises $100M Auxly finalizes investment Auxly finalizes stream Auxly acquires Robinson’s Auxly announces $115 Kolab receives ACMPR Auxly enters
Sales License strategic
through convertible and partnership with Inner with FSD Pharma to Cannabis, a premium million bought deal
partnership with
debenture financing. Spirit for retail distribution. develop 620,000 sq ft cannabis cultivator based financing led by BMO Dosecann receives Delta 9 Cannabis
former Kraft facility in Nova Scotia Capital Markets License Dealer
January 2018 February 2018 April 2018 May 2018 June 2018 August 2018
Auxly expands Auxly announces Auxly acquires Dosecann, Auxly announces exclusive Auxly awarded recreational Auxly acquires KGK
internationally through strategic JV with leading Canada’s largest License license for the Dixie Brands retail store in Lloydminster, Science, Canada’s
Inverell acquisition in greenhouse operator Dealer facility in PEI as portfolio in Canada and Saskatchewan leading NHP Contract
Uruguay.** Peter Quiring to develop cornerstone Midstream Mexico Research Organization
and operate 1.4M sq. ft asset
operation in Leamington,
ON
Auxly Cannabis Group Inc
www.auxly.comFINANCIAL HIGHLIGHTS: Select summary of quarterly results PERIOD ENDED (000s) JUNE 30TH, 2018 DECEMBER 31ST, 2017 Cash and Cash Equivalents $295,803 $33,454 Total Current Assets $310,326 $35,521 Investments in Streaming Partners and Subsidiaries $178,912 $58,229 Total Assets $478,866 $92,579 Long Term Convertible Debt $91,201 $17,738 Shareholder Equity $357,828 $62,793 THREE MONTHS ENDED (000s) JUNE 30TH, 2018 JUNE 30TH, 2017 Income $282 - Total Expenses $11,161 $1,599 Other Items -$1,180 -$24 Total Comprehensive Profit or Loss -$14,216 -$1,583 SIX MONTHS ENDED (000s) JUNE 30TH, 2018 JUNE 30TH, 2017 Net cash used in operating activities -$16,560 -$2,980 Net cash used in investing activities -$23,135 -$2,450 Net cash from financing activities $302,044 -$51,519 Auxly Cannabis Group Inc www.auxly.com
HOW WE VIEW OUR BUSINESS
UPSTREAM MIDSTREAM DOWNSTREAM
Streaming Partners Dosecann: Value Add and IP Distribution and Sales
14 Partners Extraction, Processing, Brands/Licensing, Medical Market, Provincial Retail, Pharmacies,
R&D, Manufacturing Convenience Stores, International
Domestic
International
Auxly Cannabis Group Inc
www.auxly.comMODEL FOR GROWTH: This is simple to articulate — as it should be. Auxly is
creating a world-class platform by forming partnerships with best-in-class
cultivators, product innovators and developers, researchers and marketers.
We provide our partners with ongoing cornerstone support in cultivation,
regulatory, construction, retail, branding and financing to help them realize
their full potential.
Wholly Owned Subsidiaries Streaming Partners Joint Ventures
Upstream Upstream Upstream
Inverell* Beleave Peter Quiring - GreenhouseCo
Kolab Project CannTx
Robinson’s Cannabis Sundial
Green Relief
Cannoe
Midstream
FSD Pharma
Dosecann
Lotus
KGK Science (acquired subsequent to quarter end)
Groupe IDP
Delta 9 Cannabis
Downstream Abcann
Kolab Retail Store in Lloydminster, SK SGSC
Medical Sales through Kolab Pontiac Group
Curative Cannabis
*Auxly owns 80% of Inverell S.A., This transaction remains subject to Level 10
final regulatory approvals in Uruguay
Auxly Cannabis Group Inc
www.auxly.comDOWNSTREAM: Current Distribution Channels
Medical Other Provincial Retailers
Kolab Project: Auxly has a wholly owned Inner Spirit: Strategic alliance to supply up to
licensed facility in Carleton Place, Ontario. 50% of their annual inventory requirements
across their potential 95 franchise locations.
Auxly will be able to leverage our existing
licence to access the medical cannabis Delta 9 Cannabis: strategic supply agreement.
regime and distribute cannabis products
directly to patients across Canada. National Access Cannabis (NAC): Strategic
supply agreements.
Pharmacies
Wholly Owned Retail Outlets
National chain of independent pharmacies:
Exclusive distribution alliance to develop and Kolab Project: Obtained permit to operate
implement medical cannabis distribution a cannabis retail store in Lloyminster,
and retail sale opportunities at all of the phar- Saskatchewan.
macy group’s 40 locations across Canada.
International
Inverell (80% owned) provides a large-scale,
low-cost supply of CBD product in Uruguay
to supply international markets.
Auxly Cannabis Group Inc
www.auxly.com2018 OBJECTIVES
Upstream Midstream Downstream
Continue to acquire cultivation capacity by developing facilities Add value to the cannabis produced in the upstream business Continue to focus on the development of high value medical
in Canada and internationally segment through the application of intellectual property and non-medical channels
Build a diverse cultivation platform comprised of wholly-owned Continuously evaluate a broad range of applicable intellectual We have made strategic decisions on which distribution
assets, stream partnerships, joint venture partnerships and property including extraction and purification methodologies, channels to prioritize based on its production ramp-up,
commercial offtake arrangements trademark and know-how licensing, patent acquisition and choosing to focus on higher margin medical channels and
technology and product licensing those non-medical channels that are owned by Auxly or where
Developing a robust supply pipeline is the cornerstone of the Auxly holds an equity interest in the retailer
Auxly platform, providing the Company a secure and diverse Develop our own cannabis-derived products and related
source of cannabis thereby allowing it to participate in the intellectual property
entire cannabis value chain
Auxly Cannabis Group Inc
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