investor presentation november 2017 · 2018-03-20 · bod australia limited asx:bda november 2017 2...

INVESTOR PRESENTATION – NOVEMBER 2017

Bod Australia Limited ASX:BDA November 2017

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DISCLAIMER

This presentation has been prepared by Bod Australia Limited (Bod) and contains background information about Bod current at the date of this presentation. The presentation is in summary form and does not purport to be all-inclusive or complete. Recipients should conduct their own investigations and perform their own analysis in order to satisfy themselves as to the accuracy and completeness of the information, statements and opinion contained in this presentation.

This presentation is for information purposes only. Neither this presentation nor the information in it constitutes an offer, invitation, solicitation or recommendation in relation to the purchase or sale of shares. This presentation does not constitute investment advice and has been prepared without taking into account the recipient’s investment objectives, financial circumstances or particular needs and the opinions and recommendations in this presentation are not intended to represent recommendations of particular persons. Recipient should seek professional advice when deciding if an investment is appropriate.

All securities transactions involve risk, which include (amongst others) the risk of adverse or unanticipated market, financial or political developments. To the fullest extent permitted by law, Bod and their officers, employees, agents and advisers do not make any presentation or warranty, express or implied, as to the currency, accuracy, reliability or completeness of any information, statement, opinions, estimates, forecasts or other representations contained in this presentation. No responsibility for any error or omissions from this presentation arising out of negligence or otherwise is accepted.

This presentation may include forward-looking statements. Forward-looking statements are only predications and are subject to risk, uncertainties and assumptions that are outside the control of Bod. Actual values, results or events may be materially different to those expressed or implied in this presentation. Given these uncertainties, recipients are cautioned not to place reliance on forward-looking statements. Subject to any continuing obligations under the applicable law and ASX Listing Rules, Bod do not undertake any obligations to update or revise any information or any of the forward-looking statements in this presentation of any changes in events, conditions or circumstances on which any such forward-looking statement is based.


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INVESTOR HIGHLIGHTS - TWO INTEGRATED BUSINESS UNITS

D I S T R I B U T I O N B U S I N E S S

D i s t r i b u t i o n b u s i n e s s i n r a p i d g r o w t h p h a s e e s t a b l i s h i n g a s o l i d f o o t p r i n t i n l o c a l m a r k e t

E x p a n s i o n f r o m 6 2 p h a r m a c y “ d o o r s ” t o 7 6 2 o v e r l a s t t w e l v e m o n t h s

P o r t f o l i o o f b r a n d s p o s i t i o n e d i n c o s m e t i c s a n d n a t u r a l m e d i c i n e s g r o w t h s e g m e n t s

D i s t r i b u t i o n p r o v i d e s p l a t f o r m f o r r e v e n u e g r o w t h a n d a c c e s s t o m a r k e t s f o r p r o d u c t s b o t h t h r o u g h P h a r m a c y a n d D o c t o r s

D i s t r i b u t i o n f o o t p r i n t i d e a l l y s u i t e d f o r C a n n a b i s b a s e d p r o d u c t s

CANNABIS BUSINESS

B u i l d i n g a s u s t a i n a b l e m u l t i f a c e t c a n n a b i s b u s i n e s s w i t h a c c e s s t o E u r o p e a n m a r k e t s t h r o u g h L i n n e a r e l a t i o n s h i p

C a n n a b i s I m p o r t L i c e n c e p e n d i n g

O t h e r l i c e n c e s t o b e a p p l i e d t o a c c e s s o t h e r v e r t i c a l s

D e v e l o p i n g a l o c a l b u s i n e s s f o c u s s e d o n R & D w i t h c o m m e r c i a l i s a t i o n o f O T C a n d t h e r a p e u t i c p r o d u c t s

• O T C – N e a r t e r m f o r m u l a t i o n o f c o s m e t i c s b a s e d p r o d u c t s t h r o u g h L i n n e a p a r t n e r s h i p

• T h e r a p e u t i c – P h a s e I c l i n i c a l t r i a l s s e t t o c o m m e n c e n e a r t e r m


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DISTRIBUTION

Revenue generating, platform to

access markets.


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ESTABLISHED FOOTPRINT AND CHANNELS TO MARKET


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DISTRIBUTION FOOTPRINT ACROSS CHANNELS


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By Quarter 2017

TOTAL DOORS CUMULATIVE

162

212

325

762

Jan - Mar Apr - June July- Sept Oct - Current

• Good progress in growing distribution with current product range

• Ongoing expansion of product range will help grow distribution doors and increase revenues/door


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CURRENT PRODUCT PORTFOLIO

Jan 2017 Dec 2017 July 2017

• Now representing 7 brands and over 30 SKU’s

• Average margin across the business is currently 56%


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NEW PRODUCT LINE UP – 2018 COSMETICS AND NATURAL MEDICINES

Jan 2018 Dec 2018 July 2018


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DISTRIBUTION SUMMARY - NEAR TERM BUSINESS STRATEGY

• Identify and develop natural

medicine opportunities

• Identify and develop additional

skincare brands with our retail

partners

• Moving in to additional verticals

• Leverage opportunities from the

exclusive arrangement with

Tilman

• Evidence based and natural

ingredients are our key

differentiators

• Continue to build sales through

existing stockists

• Sales still to be realized from

new products added

• Increase number of products

(SKU’s) under each brand

• New established e-commerce

platforms

• Expand brands represented

• Growth through revenue

accretive distribution

agreements

• Grow established retail

distribution network

• Increase footprint through

Pharmacy channel with new

banner groups

• Grow additional channels,

including travel, and e-

commerce

• International expansion with key

Daigou relationships

Accelerate Distribution Sales growth Complementary product

lines


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MEDICINAL CANNABIS

A partnership with global

players.

BOD is an early mover in Government regulated import licensing and

product trials/development.


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$7.7

$31.4

$-

$5.0

$10.0

$15.0

$20.0

$25.0

$30.0

$35.0

Market Size (US$)

Global Cannabis Market Size (US$ Billions)

2017 2021

Room for Growth

GLOBAL CANNABIS MARKET SIZE

• Cannabis Market expected to expand to US$31.4B* by 2021

• Driven by legalisation in Canada, Latin America and Europe

• Expected CAGR of 60%*

(*Forbes magazine Nov 2017)


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CANNABIS STRATEGY

Licence to import pending

Schedule 8 Storage Facility in place

Partnerships with academic institutions

Partnership with a large pharmaceutical contract manufacturer

Exploring opportunities to cultivate and grow utilising Linnea’s expertise

Clinical trial design complete for therapeutic uses

Dose ranging complete

Utilising a patented delivery method: increase efficiency of drug absorption

Continued product development and formulation

Diversified revenue streams

OTC: both topical and supplement base

Therapeutic uses

Bod to access the domestic and international markets

Leveraging existing distribution platform

Building a mult i - faceted cannabis business

Leveraging strategic partnerships with global players to develop and distr ibute products for OTC topical appl icat ions and therapeutic purposes


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Linnea Extract Advantage – phytocomplex extract

• Only reproducible Phytocomplex extract globally ensures greater certainty in the outcome

• GAP and GMP manufacturing specifically bred to strict characteristics

• Standardised & Reproducible low THC (<0.01%) phytocomplex profile – Unique amongst producers

• Extract ONLY from inflorescence of female Sativa plants

• Proprietary solvent extraction

• Consistent profile allows for clinical trial development via reliability of hypothesised results

• Available in oil, aqueous and powdered forms and CBD concentrations of 0.5-40%

• Access to NioSkin – a unique delivery method and combines a cannabis extract in cosmetic based applications

• Standardised reproducible extract gives doctors and patients confidence in the end product

• BDA retains full ownership and commericalisation of end products in agreed markets

FIRST CANNABIS STRATEGIC RELATIONSHIP

Linnea Advantage – unique among global producers


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OTC COMMERICIALISATION UTLISING NIOSKIN™

Advantages:

• Easy to formulate – introduction of water or liquid phase of emulsion

• Direct use in cold phase

• Self-preservative

• Soluble in water and dispersible in lipid

• Stable at wide range of pH levels

• Solvent free

Applications – multitude of face and body solutions based on:

• Serums, day base creams and hand creams

• Facial masks

• Beauty water

• Eye care serum

• BB creams

• Bod is conducting research and development in to its cannabis-based skincare products

• Plans to begin commercialising and distributing the products to consumers during 2018.

• Intended that products will be developed and manufactured at facilities in Italy, and exported to numerous major markets beyond Australia, including Asia and Americas.

• Products to be sold directly and wholesaled to third-party clients on a white-label basis.

• White labelling will allow Bod to tap into lucrative skincare markets such as China, which grew to A$33 billion in 20161 and is predicted to become the world’s largest cosmetics market by Morgan Stanley


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Consistent extract = stable clinical trial substrate

• Administration via patented sublingual wafer

• Phase 1 Pharmacokinetic trial designed and partner confirmed

• First Patient First Visit - April 2018

• 3 month duration (reduced from the original 10 mths)

• Following initial results move to Phase II

• Post Chemotherapy induced nausea and vomiting, Epilepsy, Multiple Sclerosis

THERAPEUTIC COMMERICIALISATION - CLINICAL TRIAL PROGRAM

Recruit Clinical

Manager

Ethics Approval

Literature Review

Establish Dosing

profile

Trial Results

Select & Approve

Vendors

First Patient 1st Visit

Formulate Trial

Product

Gain Import

Authorisation


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NEAR TERM MILESTONES

Import licence granted. Permission to import

Product development using Linnea’s extract

Sell Cannabis Oil under special access Category B through approved prescribers

Export opportunities with the finished goods

Begin formulating and developing cosmetic based products based on NioSkin™ and Cannabis


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*Fully Diluted Market capitalisation (incl options/performance rights) as at 22 November 2017

ASX LISTED COMPANIES - CANNABIS MARKET

Comparisons of listed medicinal cannabis players

$12.4

$84.3

$129.8 $133.9 $136.7 $148.5

$202.9

$252.2

$320.0

$-

$50.0

$100.0

$150.0

$200.0

$250.0

$300.0

$350.0

BDA ZLD MMJ MXC MDC CPH THC AC8 CAN


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*Fully Diluted Market capitalisation (incl options/performance rights) as at 22 November 2017

CANNABIS MARKET COMPARISONS

Company

Indicative

Market

Capitalisation*

Good

Agriculture

Practice (GAP)

Good

Manufacturing

Practice (GMP)

Patented

Delivery

System

Consistent

phytocomplex

profile

Clinical Trial

Program

Finished

products

AusCann Group Limited $252.2m ✔ ✔

The Hydroponics Group $202.9m ✔ ✔

Creso Pharma Limited $148.5m ✔ ✔

Medlab Clinical Limited $136.7m ✔ ✔ ✔

MGC Pharmaceuticals

Limited $133.9m ✔ ✔ ✔

MMJ Phytotech Limited $129.8m ✔ ✔

MGC Pharmaceuticals

Limited $133.9m ✔ ✔ ✔

Zelda Therapeutics $84.3m ✔

Bod Australia Limited $12.4m ✔ ✔ ✔ ✔ ✔ ✔


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CORPORATE SNAPSHOT

OVERVIEW

ASX code BDA

Shares on issue (fully diluted) 46.0m

Market capitalisation at $0.22 per

share ~$10.1m

Cash at bank (as at 31 September

2017) ~$2.3m

Debt Nil

Options on issue 10.4m

52 week high - low 0.35 – 0.09

BOARD & MANAGEMENT

Chief Executive Officer Jo Patterson

Chief Operating Officer Craig Weller

Independent Chairman Simon O’Loughlin

Non-Executive Director Simon Taylor

Non-Executive Director Mickey Perret

Head of Sales John Gilder

Major shareholders: % Total

Holding

Jo Patterson 12.4%

Noir Ted Pty Ltd (Craig Weller) 10.9%

Citicorp Nominees 4.6%

AWJ Family Pty Ltd 4.1%

GP Securities Ltd 3.5%

J P Morgan Nominees Australia Pty Ltd 3.4%

Calama Holdings Pty Ltd 3.3%

Jo Patterson – Chief Executive Officer

+61 2 9199 5018

ASX:BDA

bodaustralia.com

Thank you


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MEDICINAL CANNABIS BOARD – APPENDIX 1

Name: Background:

Ms Jo Patterson Marketing and business executive with international experience and over 20 years’ experience

Demonstrated business acumen, evidenced in success of start-ups and driving established businesses

towards growth

Winner – Sydney Business Review Business Woman of the Year

Mr Mickey Perret Five-year cannabis production experience in North America

Previous holder of multiple board roles

Strong investor relationships in Australia and North America

Mr Craig Weller 20 years’ sales and marketing experience in pharma and natural medicines

Extensive experience in Asia with Greenfield roles in Asia

Mr Nick Burgess Herbal consultant – expert with over 35 years’ experience in extract specificity and the herbal medicine

industry

Expert in government regulations of natural medicines and member of the Complementary Medicines

Evaluation Committee (TGA)

Holds a masters degree in Herbal Medicine

Assoc Prof Stella

Valezuela

PhD in Molecular Biology and immunology

Academic researcher with extensive experience in research and management roles

First to identify novel protein CLIC1 – numerous applications in skincare

Dr Adele Hosseini 17 years’ experience in pharma and currently Head of Scientific and Clinical Affairs

Will oversee direction, execution and oversight of Bod’s clinical trial program


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Collaboration with UTS

• 3 year collaboration with University of Technology Sydney, School of Life Sciences

• Working with Assoc. Professor Stella M Valenzuela, PhD- Discoverer CLIC proteins

• Looking into how novel CLIC proteins may assist in transporting cannabinoid compounds across skin membranes

• Aim: Develop commercial model & products for cannabis skincare range

DRIVING INNOVATION WITH BIOTECHNOLOGY


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TGA presentations given at: RACGP (GP17) conference, 26-28 October 2017

OVERVIEW OF CLINICAL EVIDENCE AND ACCESS FOR MEDICINAL CANNABIS PRODUCTS


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AUSTRALIAN COMPANIES WITH IMPORT LICENCE

NAME CONTACT DETAILS PRODUCTS AVAILABLE

1 Health House International

Phone: 08 9444 2444 1. 1:20 Cannimed Oil (THC 1mg/mL:CBD 20mg/mL), 60mL

Email: [email protected] 2. 10:10 Cannimed Oil (THC 9.8mg/mL:CBD 9.8mg/mL), 60mL

3. 18:0 Cannimed Oil (THC 18.3 mg/mL:CBD 0.2mg/mL), 60mL

2 Pharmaceutical Packaging Professionals Pty Ltd

Phone: +61 (0) 2 8051 3134 1. THC10:CBD10 Drops (THC 10mg/mL + CBD 10mg/mL in a 25mL vial) - TILRAY

Email: [email protected] 2. THC25:CBD25 Drops (THC 25mg/mL + CBD 25mg/mL in a 25mL vial) - TILRAY

3. CBD10 Drops (CBD 10mg/mL in a 25mL vial) - TILRAY



6. THC10 Drops (THC 10mg/mL in a 25mL vial) - TILRAY

7. THC25 Drops (THC 25mg/mL in a 25mL vial) - TILRAY

3 HL Pharma Pty Ltd Phone: 03 9823 6228 1. Cannabidiol capsules 10mg (pack of 30) - Satipharm

Email: [email protected] 2. Cannabidiol capsules 50mg (pack of 30) - Satipharm

4 Novachem Pty Ltd

Phone: 1800 668 224 For vaporisation

Email: [email protected] 1. Bedrocan® - 22% THC, <1% CBD (5g flos)

2. Bedrobinol® - 13.5% THC, <1% CBD (5g flos)

3. Bediol® - 6.3% THC, 8% CBD (5g granulate)

4. Bedica® - 14% THC, <1% CBD (5g granulate)

5. Bedrolite® - <1% THC, 9% CBD (5g granulate)

5 GD Pharma Pty Ltd Phone: 08 8362 3927 1. Cannabidiol 100mg/mL oily oral and oromucosal solution

Email: [email protected] 2. Delta-9-Tetrahydrocannabinol 10mg/mL oily and oromucosal solution

6 Anspec Pty Ltd

Phone: +61 416 419 732 1. CannTrust 1:1 Drops; 40mL (CBD 12.5mg/mL + THC 12.5 mg/mL)

Email: [email protected] 2. CannTrust CBD Drops; 40mL (CBD 25.0 mg/mL and THC <2 mg/mL)

3. CannTrust THC Drops; 40mL (THC 25.0mg/mL and CBD <1 mg/mL)

mailto:[email protected]



















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MASSIVE GROWTH OVER THE LAST 12 MONTHS

61

627

0

100

200

300

400

500

600

700

2016 2017

Total new customers by year to November


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Sales by brand as a percentage of total revenue Q1-Q3 2017

• Product sales time-lag new customer relationships

• In store promotions and other marketing drive revenue/door

$-

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

$90,000

Q1 Q2 Q3

Bioeffect Flexofytol

TOP SELLING BRANDS – BIOEFFECT AND FLEXOFYTOL

investor presentation november 2017 · 2018-03-20 · bod australia limited asx:bda november 2017 2...

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