Nurturing Shareholder Growth - EMBLEM CORP. | TSXV: EMC
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
APRIL 2018 Nurturing Shareholder Growth E M B L E M C OR P . | TSXV : E M C
D ISC L AIM E R This documentation is a presentation (the “Presentation”) of general background information about Emblem Corp’s., (“Emblem”) activities current as of April 15, 2018. It is information in a summary form and does not purport to be complete. It is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any particular investor. These should be considered, with or without professional advice, when deciding if an investment is appropriate. The information contained in this Presentation is derived solely from management of Emblem and otherwise publicly available third party information and does not purport to be all-inclusive or to contain all the information that an investor may desire to have in evaluating whether or not to make an investment in Emblem. The third party information has not been independently verified. No representation or warranty, express or implied, is made or given by or on behalf of Emblem or any of its affiliates, directors, officers or employees as to the accuracy, completeness or fairness of the information or opinions contained in this Presentation and no responsibility or liability is accepted by any person for such information or opinions. Emblem does not undertake or agree to update this Presentation after the date hereof. No person has been authorized to give any information or make any representations other than those contained in this Presentation and, if given and/or made, such information or representations must not be relied upon as having been so authorized. The information and opinions contained in this Presentation are provided as at the date of this Presentation. The contents of this Presentation are not to be construed as legal, financial or tax advice. Each prospective investor should contact his, her or its own legal adviser, independent financial adviser or tax adviser for legal, financial or tax advice. Certain statements in this Presentation may constitute forward-looking information, including future-oriented financial information and financial outlooks, within the meaning of applicable securities laws. Forward looking information may relate to Emblem’s future outlook and anticipated events or results and may include statements regarding Emblem’s financial results, future financial position, expected growth of cash flows, business strategy, budgets, projected costs, projected capital expenditures, taxes, plans, objectives, potential synergies, industry trends, construction schedules, construction budgets, and growth opportunities. Often but not always, forward-looking information can be identified by the use of words such as “anticipate”, “believe”, “expect”, “project”, “estimate”, “likely”, “intend”, “should”, “could”, “may”, “might”, “target”, “plan” and other similar expressions or variations (including negative variations) of such words and phrases. Forward-looking information contained in this Presentation is based on certain assumptions regarding expected growth, results of operations, performance, industry trends and growth opportunities. While management considers these assumptions to be reasonable, based on information available, they may prove to be incorrect. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Emblem to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These risks, uncertainties and other factors include, but are not limited to risks associated with general economic conditions; adverse industry events; marketing costs; loss of markets; future legislative and regulatory developments involving medical marijuana; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; the medical marijuana industry in Canada generally, income tax and regulatory matters; the ability of Emblem to implement its business strategies; including facility, expansion, within budget and on the schedule currently anticipated; competition; crop failure; currency and interest rate fluctuations, and the other risks common for a business such as Emblem’s. The foregoing factors are not intended to be exhaustive. Although Emblem has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward-looking statements contained herein are made as of the date hereof and Emblem and its directors, officers and employees disclaim any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, you should not place undue reliance on forward-looking statements due to the inherent uncertainty therein. All forward-looking information is expressly qualified in its entirety by this cautionary statement. Forward-looking information and other information contained herein concerning management’s general expectations concerning the medical marijuana industry are based on estimates prepared by management using data from publicly available industry sources as well as from market research and industry analysis and on assumptions based on data and knowledge of this industry which management believes to be reasonable. However, this data is inherently imprecise, although generally indicative of relative market positions, market shares and performance characteristics. While management is not aware of any misstatements regarding any industry data presented herein, industry data is subject to change based on various factors. This Presentation may not be reproduced, further distributed or published in whole or in part by any other person. Neither this Presentation nor any copy of it may be taken or transmitted into or distributed in any other jurisdiction which prohibits the same except in compliance with applicable laws. Any failure to comply with this restriction may constitute a violation of applicable securities law. Recipients are required to inform themselves of, and comply with, all such restrictions or prohibitions and Emblem does not accept liability to any person in relation thereto.
INTROD U C ING
FOC USE D ON GR OW ING SH A R E H OL D ER V AL UE, NOT JU ST GROW ING C A NNA B IS. HOW: LEV ERA G I NG O U R P RO F ESSI O NA L STRENG THS TO DO MI NA TE I N THE H I G HLY P RO F I TA B LE, VA LU E- A DD SP A CE. OUR WINNING FORMULA: P RO DU CT I NNO VA TI O N + B RA ND RELEVA NCE + A CCESS TO P A TI ENT/CO NSU MER.
E M B L E M A T A GL ANC E T I C K E R S YM B OL TSXV:EMC F OU N D E D 2013 RECENT SHARE PRICE ( APR I L 13, 2018) C$1.54 S H A R E S I S S U E D & OU T S T A N D IN G (BASIC)1 119,060,512 M A R K E T C A P I T A LIZAT ION (BASIC)1 C$183 MILLION S H A R E S I S S U E D & OU T S T A N D IN G ( DI L U TE D) 1 187,239,416 C U R R E N T P A T I E N T C OU N T ~3,100 P R OD U C T I ON FA C I LI T Y PARIS, ONTARIO (~65 EMPLOYEES) C U R R E N T P R OD U C T I ON C A P A C I T Y ~2,000 KG Q 1 2 01 9 P R OD U C T I ON C A P A C I TY T A R GE T ~17,000 KG T OT A L C A S H P OS I T I ON ~$85 MILLION C A S H P R OC E E D S ( FR OM AL L OU TS TA N DI N G W A R R A N TS A N D OPTI ON S ) 1 ~$107 MILLION I N S I D E R OW N E R S H I P (BASIC)1 ~20% 1As of April 13, 2018
B U IL D ING A ‘R E A L’ B U SINESS B ASED ON FUND AM ENTAL S
3 KEY OPERATING UNITS
MEDICAL
P A T I E N T A C Q U I S I T ION / P ROD U CT I N N OV A T I ON
CULTIVATION
EMBLEM CORP.
U N I Q U E S T R A I N S /C ON N EC TE D C U LT I VA TI ON
ADULT-USE
H OU S E OF B R A N D S /A CC E SS T O C ON S U M E R
E M B L E M L E AD E RSH IP TE AM NICK DEAN P RESI DENT & CEO ALEX STOJANOVIC CHI EF F I NA NCI A L O F F I CER MAXIM ZAVET F O U NDER, I NT’ L DEVELO P MENT JOHN STEWART P RESI DENT, EMB LEM MEDI CA L ADAM SAPERIA CO O , EMB LEM MEDI CA L MARIA GUEST CHI EF MA RK ETI NG O F F I CER JEFF KEYES G ENERA L MA NA G ER, O P ERA TI O NS
FU TURE GROW TH D R IV E R S
INTERNATIONAL
RECREATIONAL
NEW PRODUCTS
MEDICAL
TH E FU TURE OF C A NNA B IS
Cultivation THE PAST:
Commoditization, over supply & lower margins
Processing & Formulation
Cannabis Industry
Product Innovation THE FUTURE:
Higher-margin, value-add product
House of Brands Creating product demand through a
strategic, targeted and focused
approach to patient/customer
acquisition
Marketing & Exposure
DistributionP R OC E SSIN G & FOR M U LA TION Fully-funded 30,000 sq. ft. state-of-the-art integrated building that includes a 5,000 sq. ft. formulation and analytical laboratory Expected to be completed & licensed by Q3 2018 Run by John Stewart, world-renowned pharma executive Built to GMP certification, allowing for future export market potential FOCUS WILL BE ON: Production of oils Development of novel formulations for all market segments Working with partners to develop best-in- class products demanded by the market
P R OD U C T STRATE GY PREMIUM FLOWER PROPRI ETA RY GENETICS • Quantum Kush – THC: 23-26% • Dela Haze – THC: 13-14% • MK Ultra – THC: 16% • Black Widow – THC: 5.3-6.9%, CBD: 8.8-10.9% • High Voltage – THC: 0.4%, CBD: 12.5-18%
P R OD U C T STRATE GY 4 OILS LAUNCHED D E C E M B E R 201 7 SIGNIFICANT POSITIVE IMPACT TO SALES SINCE LAUNCH. PRODUCTION CAPACITY: 5,000/MONTH
P R OD U C T STRATE GY NOVEL FORMULATION DEVELOPMENT IN-HOUSE OIL-FILLED CANNABIS CAPSULES L A U NC H ING Q 3 201 8 * EMBLEM WILL MANUFACTURE AND PACKAGE IN-HOUSE, OFFERING ALL FOUR OF THE COMPANY’S CANNABIS OILS IN CAPSULES:AT 2.5, 5.0 AND 10.0 MG STRENGTHS *Pending Health Canada approval.
P R OD UC T STRATE GY NOVEL FORMULATION DEVELOPMENT PARTNERSHIP DOSECANN L IC ENSING A GRE E M E NT CANNABIS-OIL ORAL SPRAY DOSAGE FORM LAUNCHING Q3* *Pending Health Canada approval.
PR OD UC T STRATE GY NOVEL FORMULATION DEVELOPMENT PARTNERSHIP EXC L USIV E AGR E E M E NT TO PR OD UC E C A NNA B INOID B A SE D OR A L SUSTAINED R E LE A SE FOR M UL A TION. LAUNCHING 2019* Under the Agreement, Emblem and Canntab will collaborate on the preclinical formulation, clinical development, regulatory approval, manufacturing and commercialization of the Sustained Release Product. The Agreement grants to Emblem the exclusive right in Canada to Canntab’s patents and know-how for the purpose of developing, commercializing, using, selling, and offering the Sustained Release Product for sale under the Emblem brand. *Pending Health Canada approval.
FU TU R E PR ODU CT S TR A TE GY
SETTING THE
STANDARD B EV ER A G ES ED IB LES V A PE PEN S
FOR PRODUCT
INNOVATION
T O PIC A LS C O N C EN T R A T ES
Product quality and brand strength will dominate the hearts and
minds of consumers and end-users. Emblem will be a leader in
bringing World-class product innovation to market in 2019.*
*Pending Health Canada approval.HOUSE OF BRANDS
MEDI C A L
A DU LT U S E BRAND TBA BRAND TBA
B ET T ER B ESTD ISTR IB UTION
M E D IC AL A D U LT -USE
DIRECT TO PATIENT: BRAND CENTRIC:
Continue to sell through current OCS
channel, building patient base by AGLC
utilizing
Fire & Flower (other dispensaries)
Shoppers Drug Mart (when available)
Focus on ‘educating’ the distribution
points to ensure they are
recommending our products
INTE RNA TIONA L
GMP CERTIFICATION
GERMANY JOINT VENTUREP A TIENT A C QU ISITION STR A TE GY
GR OW WISE
GrowWise Health is a cannabis education company that provides a healthcare
solution for physicians and patients currently lacking in the Canadian medical
cannabis industry.
GROWWISE EDUCATION CENTRES
FILLING THE ROLE OF THE PHARMACIST
• GrowWise operates in medical clinics in which doctors are prescribing cannabis
• Patients are referred to GrowWise once a prescription has been issued
• Nurses counsel patients on safety, strain selection, and assist patients with
registering, and placing orders with a licensed producer
• GrowWise is a reliable and consistent source of patients for EmblemC ULTIV A TION - C LOSE D B OX STR ATEGY
WOODSLEE
F U LLY F U N D ED
CLO S ED B O X / G M P C ER T I F I ED L AB
THE FACILITY | PHASE 1+2
FUL L Y FUND E D
LO W CO S T, P R EM I UM Q UAL I T Y F L O WER
2, 000 K G S / AN N UM
CO M P LETIO N Q 3 20 1 8C U LTIV A TION - GREENH OUSE STRATEGY
PARIS ROAD
8 0 A C R E S C O M M ER CIA L L A N D
P H A S E 1 : ~ 1 7 0K S Q . FT P U R P OS E - B UI LT GR E E N H OU S E
15,000 KGS – HIGHER VOLUME, LOWER COST
FULLY FUNDED
R A W M A T E R I A L F O R E X T R A C T S & V A L U E - A DD
ONLINE Q1 2019FU NDA ME NT A L STR A TE GY
OUR CONNECTED ECOSYSTEM
PROCESSING
& FORMULATION
Highest quality, consistent and
unique formulations through our
30,000 sq ft lab.
CULTIVATION PRODUCTS
Utilizing Woodslee facility for high Develop best in class products
quality dried flower and Paris Road designed to meet consumer needs and
for oil processing. wants through all sales channels.
DISTRIBUTION BRANDING
Utilizing strategic relationships to & MARKETING
have products available across Identifiable brands across medical,
domestic and international health & wellness and recreational to
distribution channels. build customer loyalty.We’re Emblem and this is just the beginning. Thank you.
You can also read
