UPDATED INVESTOR PRESENTATION The Hydroponics Company (ASX:THC), in - - PDF document

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UPDATED INVESTOR PRESENTATION The Hydroponics Company (ASX:THC), in - - PDF document

www.thcl.com.au ASX RELEASE (6 th June 2017) 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


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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

ASX RELEASE (6th June 2017)

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: +61 2 9251 7177 M: +61 418 613 028 E: henryk@thcl.com.au

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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

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SLIDE 3

DISCLAIMER

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

  • commitment. THC makes no representation or warranty, express
  • r 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

  • f negligence or negligent misstatement, for any statements,
  • pinions, information or matters, express or implied, arising out
  • f, 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

  • r 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

  • f one or more catastrophic events, such as an earthquake, hurricane,
  • r 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 presentation includes certain statements, estimates and projections that rely upon various assumptions. Those assumptions may

  • r may not prove to be correct. The Presentation 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 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.

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THE HYDROPONICS COMPANY

CANNABIS IS THE WORLD’S NEW HIGH GROWTH SECTOR

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 technol

  • log
  • gy 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

3

Po Positioned for future acquisitions in internatio ionally ally

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SLIDE 5

SHARE STRUCTURE

Sh Share Price Sh Shares on Issue Fr Free Trading Sh Shares Es Escrow

  • wed

ed Shares es Ma Market Cap To Top 20 Nu Number of Sh Shareholders

TH THC: C: 30c 30c TH THCO: 7. 7.3c 3c

104.1 104.1

mi million

47.1 47.1

mi million

57.0 57.0

mi million

$31.2 $31.2

mi million

46.3% 46.3% 1622 1622

(I (IPO: : 752)

The Hydroponics Company Limited at 1 June 2017 ASX: THC

4

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SLIDE 6

CANNABIS IS A THRIVING OPPORTUNITY

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USA Legal Cannabis market (medicinal + recreational) estimated

US US$20B by 2021 2021

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

  • f recreational marijuana

Au Australia Great demand po potent ential al 1. 1.8m 8m pa patient ents with neuropathic pain

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SLIDE 7

PORTFOLIO APPROACH TO CANNABIS

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Wh Why Diversify?

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

  • Self managed diversified

portfolio

  • ETF in medical marijuana

Can Cannab abis is is is a a new in inve vestment sector Gr Growth

  • p
  • ppor
  • rtunities are

gl globa bal and nd unev uneven en

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PORTFOLIO APPROACH TO CANNABIS

Continued

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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SLIDE 9

A VERTICALLY INTEGRATED, DIVERSIFIED BUSINESS

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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

  • f Greenhouses

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

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CANNDEO

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

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A NEW CLASS OF MEDICINAL PRODUCTS

Australia

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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CANNABIS

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) )

Div Diverse Me Medi dical Us Uses

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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SLIDE 13

EPIGENETIC TECHNOLOGY IP

Innovative Plant Breeding for accelerated growth and higher return

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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ALLIANCE WITH PHOENIX LIFE SCIENCES

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Delivery of a Pharmaceutical Model in Australia

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SLIDE 15

PHOENIX LIFE PRODUCT STREAM

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PHOENIX LIFE SCIENCES – F.A.S.T.

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Ch Chronic Pain

  • Unparalleled quality control, GMP
  • Comparative data to marketed compounds
  • Optimized formulation to maximize

symptom relief

  • Hemp extract, high CBD, NO THC

Phoenix Life Sciences F.A.S.T. product is targeted in USA for inflammatory, neuropathic, and post-surgical pain.

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SLIDE 17

CANNDEO TIMELINE*

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

16

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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SLIDE 18

OUR EXPERIENCED BOARD

17

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

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THANK YOU

The Hydroponics Company Limited

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