iAnthus Capital Holdings, Inc. CNSX: IAN OTCQB: ITHUF iAnthus Analyst and Investor Conference Call Acquisition of the GrowHealthy Holdings, LLC Cannabis Business January 2018
Disclaimer (1 of 2) Cautionary Note Regarding Forward-Looking Information • This investor presentation, dated January 17, 2018 (this “Presentation”), contains “forward -looking information regarding iAnthus Capital Holdings, Inc. (“iAnthus” or the “Company”) and its subsidiaries. • Statements in this Presentation that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed herein and elsewhere in iAnthus' periodic filings with Canadian securities regulators. When used in this Presentation, words such as “will, could, plan, estimate, expect, anticipate, intend, may, potential, believe, should,” and similar expressions, are forward- looking statements. • Although iAnthus has attempted to identify important factors that could cause actual results, performance or achievements to differ materially from those contained in the forward-looking statements, there can be other factors that cause results, performance or achievements not to be as anticipated, estimated or intended, including, but not limited to: dependence on obtaining regulatory approvals; investing in target companies or projects which have limited or no operating history and are engaged in activities the Company believes to be compliant with applicable U.S. state and local law, but are currently considered illegal under US Federal laws; change in laws; limited operating history; reliance on management; requirements for additional financing; competition; hindering market growth and state adoption due to inconsistent public opinion and perception of the medical-use and adult-use cannabis industry and; regulatory or political change. Forward-looking statements involve known and unknown risks, uncertainties and other factors. Many of these risk factors and uncertainties are disclosed in the Company’s Annual Information Form for the year-ended December 31, 2016 in a section entitled “Risk Factors” and other documents, including the Company’s Short Form Prospectus dated November 14, 2017, the Company files with the Canadian securities regulators on SEDAR at www.sedar.com. • There can be no assurance that such information will prove to be accurate or that management's expectations or estimates of future developments, circumstances or results will materialize. As a result of these risks and uncertainties, the results or events predicted in these forward-looking statements may differ materially from actual results or events. • Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking statements in this Presentation are made as of the date of this Presentation. iAnthus disclaims any intention or obligation to update or revise such information, except as required by applicable law, and iAnthus does not assume any liability for disclosure relating to any other company mentioned herein. Acquisition Overview • January 2018 2
Disclaimer (2 of 2) Securities Laws • This Presentation is for informational purposes and does not constitute an offer or a solicitation of an offer to purchase the securities referred to herein. • iAnthus’ shares have not been and will not be registered under the United States Securities Act of 1933, as amended. • iAnthus expressly disclaims any and all responsibility for any direct or consequential loss or damage of any kind whatsoever arising directly or indirectly from: (i) reliance on any information contained herein, (ii) any error, omission, or inaccuracy in any such information, or (iii) any action resulting therefrom. No Reproduction or Distribution • The contents of this Presentation are not to be reproduced or distributed to any third party, including the general public or the media, without the express written consent of iAnthus. Market and Industry Data • This Presentation includes market and industry data that has been obtained from third party sources, including industry publications. iAnthus believes that the industry data is accurate and that the estimates and assumptions are reasonable, but there is no assurance as to the accuracy or completeness of this data. Third party sources generally state that the information contained therein has been obtained from sources believed to be reliable, but there is no assurance as to the accuracy or completeness of included information. Although the data is believed to be reliable, iAnthus has not independently verified any of the data from third party sources referred to in this Presentation or ascertained the underlying economic assumptions relied upon by such sources. Additional Information • Additional information pertaining to iAnthus has been filed electronically through SEDAR and is available at www.sedar.com or iAnthus’ website at www.ianthuscapital.com. Acquisition Overview • January 2018 3
iAnthus Acquires GrowHealthy • iAnthus is pleased to announce the acquisition of the cannabis business of GrowHealthy Holdings, LLC (“GrowHealthy”). • GrowHealthy’s subsidiary is one of 13 current Florida Medical Marijuana Treatment Centers (“MMTCs”) licensed to provide medical cannabis to registered patients throughout the state of Florida. Acquisition Overview • January 2018 4
Let the Sun Shine in! iAnthus enters the 3 rd largest state in the U.S. with 100% ownership of GrowHealthy Florida Highlights: • 21 million residents • Limited number of licensees • Favorable demographics • Wide range of indications • Large variety of products • Market estimated to reach US$1.0 billion by 2020 (1) NOTES The State of Legal Marijuana Markets, 5 th Edition – ArcView Market Research 1) Acquisition Overview • January 2018 5
State of the Art Cultivation Facilities Facility Overview • 33 acre campus in Lake Wales, FL • ~200,000 SF of total facility space, 15,000 SF for lab and Current facility supports all phases of expansion commercial kitchen • Room to significantly expand Current facility to meet increasing 4,000 SF → 500 KG (1) demand Phase 1 • Capable of producing 18,000 30,000 SF → 4,000 KG (1) KG (1) of medical cannabis Phase 2 annually once fully built out 43,000 SF → 6,000 KG (1) • 32,000 grams currently ready for Phase 3 90,000 SF → 13,000 KG (1) processing Phase 4 121,000 SF → 18,000 KG (1) NOTES 1) Company estimates Acquisition Overview • January 2018 6
Flagship Dispensary in Palm Beach County Flagship Dispensary – West Palm Beach Key Highlights • Lease has been executed • 4,500 SF building allows for a unique patient experience and effective delivery hub • 70,000 cars pass the dispensary location daily • Freestanding building with sizeable parking lot • Easy access from I-95 and Florida Turnpike Construction: Q2 2018 Open: Q3 2018 Artistic rendering Acquisition Overview • January 2018 7
The GrowHealthy Acquisition Transaction Overview • US$48.0 million for 100% Purchase Price • US$12.5 million cash for real estate and cultivation facilities • US$5.0 million cash for purchase of Bond posted with the state Form of • US$30.5 million payable in ~12.1 million IAN shares Consideration • US$48.0 million total purchase price • iAnthus management company will manage all aspects of the Florida cannabis business and receive the full economic benefits of the licensed operations Structure • Management company has an option to acquire the Florida license holder for nominal consideration, subject to regulatory approval Acquisition Overview • January 2018 8
Florida is a Large Addressable Market Broad qualifying conditions and ingestion methods drive a large addressable market Qualifying Conditions Ingestion Methods Chronic Pain Vaporization Market Improvements Cancer Tinctures • Current initiatives by various Glaucoma groups have potential to Epilepsy Topicals expand the market even HIV/AIDS further – possibly allowing for Sprays PTSD smokable flower and more ALS Capsules forms of edibles Crohn’s Disease Syringe Parkinson’s Disease Edibles (1) Multiple Sclerosis NOTES 1) According to SB 8-A, MMTCs may not begin processing or dispensing edibles until the DOH determines certain rules regarding the production of edibles. Rules are expected to be released in 2018 Acquisition Overview • January 2018 9
Impressive Patient Growth Patient count has grown 302% in the last six months Current Market Landscape Florida Patient Growth Since June 2017 67,385 80,000 • 67,385 patients and 916 qualified physicians 70,000 • 13 approved Medical 60,000 Marijuana Treatment Centers, 50,000 only seven are authorized to 40,000 sell 16,760 30,000 • 25 dispensaries open 20,000 throughout the state 10,000 - Acquisition Overview • January 2018 10
GrowHealthy Enjoys a Significant Time to Market Advantage Dispensary and delivery plans position GrowHealthy for rapid growth Q1 2018 Q2 2018 Q3 2018 Q4 2018 Delivery Launch with 6 Vehicles 6 Vehicles 8 Vehicles 3 Vehicles West Palm Beach Finalize Dispensary Orlando Dispensary and Tampa Construction Open Dispensaries Open Cultivation and Cultivation and Cultivation and Cultivation and Processing Processing Processing Processing Expansion Expansion Expansion Expansion Acquisition Overview • January 2018 11
Recommend
More recommend
