THC Global Group Limited (ASX:THC) Smart thinking on cannabis · leadership ready for export into...

1 THC GLOBAL GROUP LIMITED (ASX:THC)

Smart thinking on cannabis

THC Global Group Limited (ASX:THC)

Investor PresentationJune 2020


Australia’s newest pharmaceutical company - delivered

Launched Affordable Medicines Range

‘Canndeo’ signifies affordability, high quality and a full range of cannabis medicines.

Acquired Clinics to Increase Accessibility

Tetra Health is key to assisting and facilitating patient uptake driven by affordability and accessibility.

Established Export Channels

Health Canada Medical Licencing, and agreements for export into Europe to over 1,200 pharmacies.

Achieved Dominant Market Position

Shaking up competitors by simultaneously delivering high quality, competitive pricing and consistent supply.

Positioned to Lead Pharma OTC

Ideally positioned to lead new $200m+ Pharma OTC cannabis market following legislation expected Q1 2021.

Own Australian Bio-Pharma Factory

Own and operate one of the world’s largest pharma GMP extraction facilities for cannabis.

Complete GMP Certification (EU and TGA)

Compliant for all regions allowing exports of medicinal cannabis from Australia.

Launched Global Scale Medicines Supply

International white-label, product development and human trial medicines.

Secured Upstream Cannabis Supply

Own scalable facilities and access to international supply for unlimited biomass.


Delivering in Four Core AreasGlobal Supply of

Medicines

Broad range of own medicines delivering price and quality leadership ready for export into Europe, Canada, and NZ

Direct Patient Healthcare Services

Expanding market reach through prescriber and patient engagement as well as owning clinics including Tetra Health

World Class Pharma Production

One of the world’s largest GMP pharma extraction and manufacturing facilities with high volume capacity Four interconnected revenue

centres addressing major global barriers to industry growth

THC Global operates across the cannabis supply chain, with execution phase investments across cultivation, extraction, and direct patient and prescriber support services.

Turnkey Cultivation Solutions

High margin products and services aimed at the strong micro & home cultivator markets in Canada


Pharma Production Made World ClassScalable Production

Production capacity scalable up to 1 million patients per annum with limited additional capex.

TGA & EU GMP Licenced

Pharma GMP cannabis medicines production with full EU compliance enabling export opportunities.

Reliable Supply Secured

Access to own cultivation facilities in addition to local Aust growers, and crude extract imports.

Onsite R&D Lab

Onsite labs enables product testing and validation in addition to production required for clinical trials.

Finished Goods Diversity

Developing capability for production of capsules, tablets, creams and other finished product forms.

White Label & Own Lines

Ability to service high volume bulk processing or white-labelled orders without limiting own production.


Pharma Production at Global Scale

Third Party Brands

High volume white labelled production of oils, creams, gels, and capsules

Canndeo Branded Medicines

Price and quality leadership through trustworthy medicines delivered globally

Pharmaceutical API

Bulk and specialist production meeting EU GMP standards

Third Party Australian Growers

Cost effective biomass supply and sharecropping agreements

THC Global Cultivation Sites

Scalable low cost greenhouse production including USDA certified organic site

International Raw Crude

Multiple price competitive certified cannabis extract suppliers in global markets


Affordable and Accessible Medicines

• Market leader in price whilst maintaining

highest quality standards

• No availability constraints for patients

and prescribers

• Offered at 15% to 55% lower cost than

current competitors Canndeo


Opening Australia’s Prescribing Market

• Affordable and helpful for patients

seeking medical guidance

• Network of over 600 prescribing

physicians

• Over 10,000 prospective patients in

databaseTetra Health

• Medical and clinical affairs team

supporting prescribers and healthcare

professionals

• Expert advice on regulatory, technical, and

medical aspects of medicinal cannabis

patient management CanndeoCare

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SAS-B Approvals

Solving theAffordability &

Accessibility Gap

By solving affordability and accessibility, THC Global expects to achieve uptake of at least

6,000 patients on an ongoing basis by December 2020


Capturing theNew Pharma OTC MarketUnprecedented opportunity to dominate a new $200m+ market

Australia is expected to allow doctor free access to low dose CBD products as Pharmaceutical Over the Counter medicines from Q1 2021.

THC Global is the only Australian specialist pharmaceutical cannabis medicines producer and supplier capable of supporting this market today.

$200m+ Addressable Patient Market

Domestic addressable patient numbers exceeding 1 million across anxiety, insomnia, pain

Order of Magnitude Volume Increase

The new Pharma OTC market is ideal for high volume pharmaceutical production

White Label Opportunity

White label or bulk manufacture for established pharmaceutical suppliers

Canndeo Branded Medicines

Opportunity to extend price leadership and brand trust into Pharma OTC market


Exporting to Global Markets

Delivering a global supply of affordable quality medicines

Agreements secured for export into Europe, New Zealand, and Canada from Q3 2020 with initial products focusing on CBD medicines range

Product range and territory expansion targeted for 2021+

European Supply Agreement with Germany’s ACA Müller into +1,200 pharmacies across the EU

New Zealand supply agreements with leading pharmaceutical distributors as well as providing prescriber support on cbdinfo.co.nz

Canadian export to be managed by Canndeo Canada Inc –Health Canada licenced distributor owned by the Company

Targeting to enter the Asia Pacific market in 2021+ with identified potential markets in Thailand, Malaysia, China, South Korea, and Japan

Latin American and other international opportunities open with Pharma OTC Cannabis scale up

2020

2021+


Smart Businesses for the Canadian Market

• Wholesale supplier of hydroponic

equipment and suppliers to micro-LP and

home cultivators

• Offering turnkey solutions including

seedlings for any stage of cultivation

project development or size Turnkey Cultivation

Solutions

• Focus on medicinal cannabis, health and

wellbeing, and wellness brands

• Will supply Aust. produced Canndeo

medicines across Canada

• Low cost clinics expansion opportunity

complementary to Australian activities Medicinal Cannabis

High growth businesses developed for the Canadian market with strong profitability potential

Hydroponic equipment and supplies business unit has achieved consistent revenue growth of 40 to 50% YoY.

New turnkey solutions offerings are high margin services in demand as the number of micro-LP and home cultivators expands.

Expecting Health Canada licencing to be distributor of Australian produced Canndeomedicines from Q3 2020.


Laura HarveyChief Operating OfficerCanadian Operations

Angela MacquireChief Operating Officer

THC Pharma

Diandra PhippsChief Operating Officer

Tetra Health

Sonny Didugu Head of Corporate M&A &Group Company Secretary

Steven XuNon-Exec Chairman

Ken CharterisChief Executive Officer

Jarrod WhiteChief Financial Officer &

Group Company Secretary

Andrew BeehagHead of Global Cannabis

Operations

Global Management Team


Capital and Financial OverviewKey Information

ASX Code ASX:THC

Listing Date May 2017

GICS Classification Pharmaceuticals, Biotechnology & Life Science

Share Price(3 June)

$0.44

Market Cap(3 June)

$64.25 million

Shares on Issue(3 June)

146,028,486

Shareholders(3 June)

8,888 Shareholders

Recent Financials

Cash(31 March)

$2.26 million + $4m debt facility

Property Plant and Equipment (2019)

$18.4 million

Existing Debt $4 million secured debt facility repayable 31 October 2021

2019 Group Revenue $4.79 million

Revenue Growth 55% YoY (2018-19)44% YoY on Q1 Cash Receipts


DisclaimerThe material in this presentation (Material) is not and does not constitute an offer, invitation or recommendation to subscribe for, or purchase any security in THC Global Group Limited (THC) (ACN 614 508 039) nor does it form the basis of any contract or commitment. In the event that an offer, invitation or recommendation to subscribe for, or purchase any security in THC is made in the future, an Offer Document will be made available in relation to the same. If and when the Offer Document becomes available it may be downloaded from the THC’s website at thc.global. At that time, any person wishing to make an investment in THC must consider the Offer Document in deciding whether to acquire the security and must complete the application form that will be in or will accompany the Offer Document.

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 Material includes certain statements, estimates and projections that rely upon various assumptions. Those assumptions may or may not prove to be correct. The Material 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 THC to have any regard to the investment objectives, financial situation and particular needs of each recipient who reads or uses this information.


CONTACT THC GLOBAL GROUPASX:THC

W E Bthc.global

C O R P O R A T E O F F I C ESuite 4102

Level 41 Austral ia Square

264-278 George Street

Sydney NSW 2000

Austral ia

E M A I [email protected]

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