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 For
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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%
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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 For
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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
4. CBD25 Drops (CBD 25mg/mL in a 25mL vial) - TILRAY
5. CBD100 Drops (CBD 100mg/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) For
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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
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