09.25.2018 bedrocan corporate presentation vccc · active pharmaceutical ingredients (“api”);...
TRANSCRIPT
CorporateOverview
beyond pioneering
Who We Are
2
• Established 1984
• Preferred provider to the Office of
Medicinal Cannabis (“OMC”) in the Netherlands since 2003, ten (10) years
prior to the establishment of the MMPR in Canada
30 Years experience
1st
18Jurisdictions served
• Patients, researchers, and
pharmaceutical partners in over a dozen countries and jurisdictions count on
Bedrocan’s products;
• Governments, corporates, and research institutions (NGOs, CROs, etc.) favor the
Bedrocan product suite
5Standardized Cultivars
• Five (5) unique cultivars have been
standardized and commercially accepted as raw material for the production of
Active Pharmaceutical Ingredients (“API”);
• Standardized placebo is also available for clinical and scientific trials;
Bruining
Erkelens
DROge (= ‘dry’)
CANnabis
Facts and Figures
3
Select Financial Statistics*
53%Revenue CAGR 2013-2017
62%Kgs Sold CAGR 2013-2017
10Years Fiscal Growth
80%Production Capacity CAGR
Operating Statistics
* O r g a n ic C A G R s d e f in e d a s w i th o u t M & A a c t iv i ty
18Jurisdictions
w here B edrocan products are
availab le
G row Room s w orldw ide40
Once upon a time…
4
Corporate Timeline
1984
Start –Founding of
Bedrocan as an agricultural company
Seeds –First production
of cannabis seeds
1992
1999
Program –Dutch Health Minister starts
medicinal cannabis program
2002
License –Bedrocan is awarded 1s t
license to grow medicinal cannabis
Start –Official start
under the Dutch medicinal cannabis program
2003
2014
Canada –New facility
under Canada Health and
opening new Dutch facility
2015
Expansion –Start USA team and start new
production facility in Czech
Republic
2016
Australia –Start Bedrocan Brazil and plans
for Australia become reality
2017
GMP –Good
manufacturing practice (GMP)
and opening new Dutch
facility
2018
Expansion Capital –
BI prepares for global expansion and large equity
infusion
2017
Outside Investment –
Bedrocan accepts its first funds from an
outside investor
5
Global Market for Cannabis and Market Environment
Current Regulation
• As of the date of this publication, medical use of cannabis is legal in
Canada, Israel, Belgium*, Austria* Netherlands, Czech Republic,
Denmark (4-year pilot project), Estonia, Spain, Greece, Portugal, Croatia, Mexico, Chile, Uruguay, Poland, Finland, Norway,
Macedonia, Germany, Jamaica, Australia, Italy, Colombia, Slovakia,
Lesotho and Switzerland;
• Cannabis is classified as a Schedule IV drug in the UN Single
Convention on Narcotic Drugs (the “Convention”); the Convention, however, allows independent nation states the choice of establishing
cannabis for medical and scientific purposes.
Legality of Possession of Small Amounts of Cannabis
Exemptions for Medical Use
L e g a l o r E s s e n t ia l ly L e g a l
I l le g a l b u t d e c r im in a l iz e d
I l le g a l b u t u n e n fo r c e d
I l le g a l
N o in fo r m a t io n
M e d ic a l U s e L a w s in P la c e
Regulatory Outlook
• The US does not show a sign of uniform legislation on the near term, although states are increasingly moving toward recreational use and
robust medical use programs. The preponderance of states have legalized cannabis in some capacity, and only a single digit few still
enforce misdemeanor possession laws on the books;• In Canada, legislation allowing for national adult use is set to take
effect on October 17, 2018, with nationwide dispensaries and other distribution outlets set to open to an eager adult use population;
• Experience in the US and Canada suggests that, once in place,
medical cannabis laws are difficult to repeal, which may be due to a multitude of factors such as acceptance by the population at large,
increased tax revenues, lower healthcare spending, and other social and economic considerations. S o u r c e s : U N O D C , D E A , F r o n t ie r F in a n c ia ls G lo b a l L e g a l C a n n a b is R e p o r t . 6
* O n ly w i th p r e s c r ip t io n o f s p e c ia l is t d o c to r
The Dutch Model – The Office of Medicinal Cannabis (“OMC”)
7
• Established 2000;
• Part of the Dutch Health Ministry;
• Responsible for production, distribution
(export) and quality;
• Mandator of Bedrocan Nederland (Dutch
licensee of Bedrocan International);
• Monopoly on trade of all raw cannabis
(similar to production of poppies);
• www.cannabisbureau.nl (EN pages too).
( 1 ) M a r i ju a n a B u s in e s s D a i ly E s t im a t e d D e m a n d , le g a l a n d b la c k m a r k e t .
( 2 ) B N N B lo o m b e r g ; C a n a d a ’s le g a l c a n n a b is m a r k e t b y t h e n u m b e r s
( 3 ) O p e n S o c ie t y F o u n d a t io n e s t im a t e s > $ 4 0 0 m i l l io n in t a x r e c e ip t s b y D u t c h A u t h o r i t ie s in 2 0 1 3 f r o m c o f f e e - s h o p s . .
( 4 ) In d u s t r y e s t im a t e s b a s e d o n p o p u la t io n , g e o g r a p h y , a n d p r o p r ie t a r y m a r k e t r e s e a r c h .
NetherlandsUnited States Europe
S chedu le 1 N a rco tic in the C S A ;
A dve rse E xecu tive b ranch & en fo rcem en t po licy ;
S ca le & in te rs ta te com m erce p roh ib ited
Federal Regulation / Enforcement Policy
G overnm en t as coun te rpa rty c rea tes pa rtne rsh ip &
leg it im acy ;
G ov ’t to G ov ’t (“G 2G ”) supp ly cha in ;
N ine (9 ) s ta tes have passed fede ra l leg is la tion fo r
m ed ica l cannab is consum ption (B I has lo n g s tan d in g re la tio n sh ip s w ith each ju risd ic tion );
P ub lic / P riva te pa rtne rsh ips
S chedu le 2 N a rco tic in the C S A M ed ica l use lega lized s ince 2002 / rec rea tiona l use
a llow ed from O c tobe r 17 2018N o n -co m p lian t w ith U N trea ties
Access to Banking / Depository Services
L im ited and incong ruen t access (o ften a t
cons ide rab le p rem ia ) be tw een / am ong the s ta tes
F u ll depos ito ry , w ire , treasu ry se rv ices by m u ltip le
g loba l inves tm en t and m erchan t banks ;R evo lv ing , p ro jec t f inance , and rea l es ta te fac ilit ies
ava ilab le a t com m erc ia l ra tes ;
F u ll depos ito ry , w ire , treasu ry se rv ices by m u ltip le
g loba l inves tm en t and m erchan t banks ;R evo lv ing , p ro jec t f inance , and rea l es ta te fac ilit ies
ava ilab le a t com m erc ia l ra tes ;
F u ll depos ito ry , w ire , treasu ry se rv ices by m u ltip le
g loba l inves tm en t and m erchan t banks ;R evo lv ing , p ro jec t f inance , and rea l es ta te fac ilit ies
ava ilab le a t com m erc ia l ra tes ;
Tax Considerations §280E D educ tion L im ita tion
N o adve rse tax
A ccess to ag ricu ltu ra l, b io tech , and pha rm a
subs id ies and g ran ts
N o adve rse tax
A ccess to ag ricu ltu ra l, b io tech , and pha rm a
subs id ies and g ran ts
N o adve rse tax
A ccess to ag ricu ltu ra l, b io tech , and pha rm a
subs id ies and g ran ts
LicensingD ispa ra te licens ing reg im es be tw een / am ong
s ta tes
P re fe rred p ro v id er to O M C fo r f ifteen (15 ) yea rs ;
P ub lic tende r d isbu rsed eve ry 3 -5 yea rs ; S epa ra te tende rs fo r m ed ica l & rec rea tiona l use to
be ra tif ied in 2019
L im ited licens ing
In d o o r C u ltiva tio n ; 3+ yea r h is to ry o f C O A s ;
C h em ica l p ro files s im ila r to B I C u ltiva rs ;
+ 118 L icen ses Issu ed – free m arke t po licy ;
s tr ic t regu la tions to p roh ib it d ive rs ion and to gua ran tee m in im um qua lity ;
N o s tr ic t sepa ra tion m ed ica l/rec rea tiona l
Quality and standardization Requirements
“C om pass iona te U se ”
(no s tanda rd iza tion regu la tion )
S tric t S tanda rd iza tion to G A C P and G M P
(N on -con fo rm ing c rops des troyed )
S tric t s tanda rd iza tion as m ed ica l cannab is v iew ed
as a pha rm aceu tica l p roduc t in E U ;
G A C P an d G M P s tanda rd iza tion
N on -pha rm aceu tica l regu la tion (A C M P R )
F or m ed ic ina l and rec rea tiona l use
Total Addressable Market (Population)
330 m illion * 17 m illion 750 m illion 37 m illion
Total Addressable Market ($)
$50 -55 b illion (1) $1 .5 – 3 .0 b illion (3) $100 -125 b illion (4)$ 4 .3 – 7 .5 b illion (2)
Regulatory and Commercial Landscape
8
Canada
Views on European Cannabis Market
European cannabis market
• Europe is destined to become the world’s largest medical cannabis
market because the Continent will require fully registered cannabis
medicines in its market, and will hold those medicines to
pharmaceutical and GMP standards throughout.
• Driven in large part by pharmacies and physicians, European
cannabis agencies will enforce Good Manufacturing Practices
(“GMP”) and public healthcare coverage policies that will ensure high
standards from the cannabis industries. Only companies that are
able to meet and maintain these high standards, will survive in the
European cannabis industry.
• Recreational cannabis is very unlikely to become widely regulated in
Europe as it is in the US and Canada, as the compassionate use
systems of the Western Hemisphere are unlikely to cross the ocean
to Europe.
Select Forecast
Bedrocan is likely to become the key-cultivator because:
• Nearly three decades of experience in cultivating top-quality medical
cannabis in the most scrutinized government-to-government
supply chain on the planet;
• Assisted governments around the world in understanding the Dutch
Framework of cannabis regulation, and seeks to export regulatory
influence and commercial discipline in every new market it enters;
• Acquired GMP certification for its whole cultivation process.
9
Unique position
30 years in business
10
N etherlands1984
Global presence (Office or facility)
11
U SA 2015
*C anada 2014
*Jurisdiction subject to moratorium between Canopy and Bedrocan
*B razil2016
A ustralia2016
C zech R ep2014
B edrocan current presence
N etherlands
Exportation to the world
12
Fin land
*C anada
G erm any
*B razil
Israel
A ustralia
C zech R ep
D enm ark
Poland
M acedonia
A ustria
Italy
*Jurisdiction subject to moratorium between Canopy and Bedrocan
B edrocan current presence
N orw ay
Sw eden
U nited K ingdom
Sw itzerland
M alta
Corporate Partnerships
13
Pharma
Academic
Research Organizations
Governments
Professional Team and Industry Advisors
14
Legal
Other
Financial
Consulting
Questions?
15
CorporateOverview
16
Tjalling ErkelensFounder, Chairman, and CEO
Mauricio Agudelo, JD CFAChief Financial Officer