A l e a d i n g , g l o b a l c a n n a b i s b u s i n e s s Investor Presentation
June 2017
ASX:THC A l e a d i n g , g l o b a l c a n n a b i s b u s i n - - PowerPoint PPT Presentation
ASX:THC A l e a d i n g , g l o b a l c a n n a b i s b u s i n e s s Investor Presentation June 2017 DISCLAIMER The material in this presentation ( ma material ) is not and does not Such statements relate to future events and expectations
June 2017
2 The material in this presentation (ma material) is not and does not constitute an offer, invitation or recommendation to subscribe for, or purchase any security in The Hydroponics Company Limited (TH THC) nor does it form the basis of any contract or
shall have no liability, including liability to any person by reason
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
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
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
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.
Medi Medicina nal canna nnabi bis s di divisi sion n – pha pharmaceut eutical model del for Aus Australia ta targeting est. $100m market New technology in water pumps, , water pur purification n and nd canna nnabi bis s genet genetics Hy Hydr dropo poni nics s di divisi sion n with h more e tha han n 5 5 ye years profitable trading En End-to to-end end cover erage e of canna nnabi bis s ma markets with significant synergies Gr Greenhouse div ivis isio ion enab ablin ling next- ge generat ation indoor farming Mo More e tha han n 17 17 yea ears s of canna nnabi bis s gr growing ng exper perienc ence
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Po Positioned for future acquisitions in internatio ionally ally
Sh Share Price Sh Shares on Issue Fr Free Trading Sh Shares Es Escrow
ed Shares es Ma Market Cap To Top 20 Nu Number of Sh Shareholders
The Hydroponics Company Limited at 1 June 2017 ASX: THC
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USA Legal Cannabis market (medicinal + recreational) estimated
US Cannabis-related estimated industry revenues US US$24B-US US$44B in 2020 89% 89% of the US support doctor recommended medicinal cannabis US US 29 US States + DC me medicinal cannabis legalised 7 US States recreational ma marijuana legalised Ca Canada Medicinal ca cannabis legalised 1 July 2018 le legis isla latio ion
Au Australia Great demand po potent ential al 1. 1.8m 8m pa patient ents with neuropathic pain
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Mul Multipl ple e busi business ness types ypes in in can annab abis is spac ace Ma Many ny list sted ed compa pani nies es ha have e no no rev evenue enue Op Options fo for diversifi fication
portfolio
Can Cannab abis is is is a a new in inve vestment sector Gr Growth
gl globa bal and nd unev uneven en
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
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Profitable hydroponics division Positioned for future acquisition and further positive diversification
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Au Australia As Asia Am Americas Ca Canada Ca Canndeo eo Limited ed Medicinal Cannabis Am American Indoor Farming Large Scale Greenhouses IP IP Res esea earch and Dev Devel elopmen ent Hy Hydroponic Eq Equipment Gr Greenhouse Design, Co Construction and Managem emen ent Th The Hydroponic ics Company Lim imite ited (THC) A& A&B B Collaboration Design and Construction
Pe Pegasus Agriculture Epigenetic Process IP Acquisition Cr Crystal Mountain Products Distribution and Wholesale Su Supa-St Stelth Pu Pumps Marketing Agreement Dr Dragon Vision Manufacturing In Inna Water er Marketing Agreement
This division aims to lead the development of therapeutically superior, paramount quality and cost effective medicines derived from Ca Cannabis sativa. Gr Growin ing & Ex Extrac actio ion Te Technology Pr Product De Development De Delivery Me Metho hods ds Aus Australian Ma Manuf nufactur uring ng Sa Sales of Pr Proprietary Medi Medicines nes Fu Future IP Re Research
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Converting unique intellectual property in cannabis breeds and extraction technology to approved products for the Australian market
Clear strategy for bringing medicinal cannabis to the Australian market, estimated at $100 $100-400m 400m +17 years of Ca 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 A ne new class of medi dicina nal pr produc ducts targeting dementia, neurological, epilepsy and other disorders Pursuing a pharmaceutical model
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TRENDS in Pharmacological Sciences
An Antiproliferative An Anxiolytic CB1(+)5- HT1A (+) An Antispasmodic Va Vaso sorelaxant PPARY (+) Ne Neuroprotective [Ca2+]I↓ ROS ↓ An Antipsychotic TRPV! (+) An Antiepileptic [Ca2+] ↓ An Anti-is ischemic ic 5-HT1A (+) An Antiproliferative, anticancer
[Ca2+]I↓ ROS ↓ CB2 (+) Id-1 ↓
An Antiemetic An Antibacterial An Antidiabetic An Antipsoriatic In Intes estin inal l anti-pro proki kine netic An Analgesic Bo Bone-st stimulant An Anti-in infla lammatory
TNF-a ↓ Adenosine Uptake ↓
Im Immunosuppres essiv ive e T-cells↓
CBD CBD (Ca Cannabidiol) )
Bo Bone-st stimulant
CBD CBDV
An Antiproliferative An Antispasmodic
∆9 TH THCA
An Anti-in infla lammatory An Analgetic Bo Bone-st stimulant An Antimicrobial An Antiproliferative
CBC CBC
An Antiproliferative Bo Bone-st stimulant An Antibacterial
CBG CBG
An Anorectic CB1(-) Bo Bone-st stimulant CB2(+) An Antiepileptic CB1(-) GABA
∆9 TH THCV
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No foreign DNA introduced
Non GMO
Quicker and higher returns to breeders
Grows 33% to 40% faster
Thrive under myriad environmental stressors
Selectively bred
Ideal candidates for gene silencing
Stable
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symptom relief
Application for research license lodged Alliance with International Partner Establish market and channel International partners: Sales and IP agreement Pre-clinical investigation of high potential extracts Collaboration with government on R&D Domestic market growth through expanded product use Market expansion through international partner sales & licensing Co-funding high potential new medicines
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2017 2017 Q3/Q4 2017 2017 Q1/Q2 2018 2018 Q1/Q2
*Performance and dates are subject to change and are indicative only. ✓ ✓
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Ma Mary Ve Verschuer
Non-Executive Director Experienced non-executive director with more than 20 years in senior management including initiating, executing and integrating acquisitions
Al Alan Beasley
Chairman More than 30 years in investment banking and management, with senior roles at Bankers Trust Australia, Goldman Sachs and BNP Paribas
Ia Ian Mutton
Non-Executive Director Practicing director of a law firm specialising in contract related matters, competition and product liability laws. Assists listed companies to implement systems for ongoing compliance with the listing rules and regulations
Pe Peter Wallace
Non-Executive Director More than 30 years experience as a company director, spanning private equity, corporate advice, non-executive directorships and financial control.
Ha Hamish MacDonald
Chief Executive Officer Extensive biotechnology experience. Spearheaded a 500MWH offtake agreement with Clenergen Ltd, joint venture with Linc Energy Ltd
Jo John Hall
Executive Director Over 30 years in plant breeding, crop management and monitoring systems, including major Australian innovations
www.thcl.com.au www.crystalmountainproducts.com www.canndeo.com Hamish MacDonald - CEO Level 2, 131 Macquarie St, Sydney 2000 +61-9251-7177 Henry Kinstlinger – Company Secretary +61-418-613-028