MGC Pharmaceuticals November 2015 Company Overview MGC - - PowerPoint PPT Presentation

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MGC Pharmaceuticals November 2015 Company Overview MGC - - PowerPoint PPT Presentation

MGC Pharmaceuticals November 2015 Company Overview MGC Pharmaceuticals (MGC) , is a medical and cosmetic cannabis company with licenses to grow, extract and sell Cannabis Sativa in Slovenia, inside MGC Pharmaceuticals the EU. Capitalising on


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November 2015

MGC Pharmaceuticals

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Company Overview

MGC Pharmaceuticals (MGC), is a medical and cosmetic cannabis company with licenses to grow, extract and sell Cannabis Sativa in Slovenia, inside the EU. MGC holds unique genetics consisting of an exclusive strain of “Cannabis Sativa” which comprises

  • f very low Tetrahydrocannabinol (THC) at below

0.3% and a very high Cannabidiol (CBD) content of above 10%. MGC is currently developing its own product range

  • f cosmetic and over-the-counter (OTC) medical

products in partnership with its JV partner, Dr. M. Burstein.

MGC Pharmaceuticals

Capitalising on “Israeli Medical Cannabis IP” – world leaders in the production and delivery of medical cannabis products

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$2.7 million initial capital raising completed

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MGC Pharma- Key Points Of Difference

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Sources: Credit Suisse – Market Research, ArcView Group,

  • Positioned in the rapidly growing medical cannabis market (worth US$2.7bn globally) and

cosmetic market (estimated at US$270bn globally in 2014)

  • Focused strategy to enter the Australian market following the favourable regulatory shift by the

Federal Government

  • Unique genetics from exclusive strain of Cannabis Sativa comprising very low THC levels (<0.32)

and high CBD levels (>10%) - yielding higher amounts of CBD by 4x against existing hemp crops

  • Fully Licensed Operation established in Slovenia to Grow, Extract and Import/Export into EU

markets

  • Highly experienced team with commercial success in the medical cannabis industry in Israel - a

world leader in the industry

  • Multiple revenue streams, with significant uplift from full production capacity to be realised in

2017

  • $60m off take agreement for MGC’s initial CBD production starting mid 2016
  • MGC cosmetic and OTC medical products – first sales and revenues end 2015
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Wealth of industrial Cannabis Sativa (Hemp) managing and extraction experience, he shares Mr. Segev’s vision of building a large scale European extraction facility and has the necessary skills to establish and run a successful growing operation and extraction facility. He has extensive commercial business contacts in the European industry. Previously CEO of Israel’s second largest licensed Medical Cannabis company, Cann Pharmaceuticals. Mr. Segev led the company to fully commercialize from startup

  • position. Founded MGC

Pharmaceuticals to expand into the huge European market for cannabinoids in the cosmetic industry.

MC Industry Leaders- Expertise and Experience

4 Nativ Segev Co-Founder and Managing Director Roby Zomer Co-Founder, President & CTO

A prominent practising cardiologist and host of weekly radio 2UE program: Healthy

  • Living. He has his own medical

practice and specialises in all aspects of echocardiography. Other area of expertise is in the field of preventative cardiology. He has published six books on preventative cardiology and regularly lectures both nationally and internationally.

  • Dr. Ross Walker

Non-Executive Director and Head of Advisory Board

Joins upon completion of transaction

Brett Mitchell Executive Chairman

Mr Mitchell is a corporate finance executive with over 20 years of experience in the finance and resources

  • industries. Mr Mitchell has

been involved in the founding, financing and management of both private and publicly-listed companies and holds executive and non-executive directorship roles.

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Business Model

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Multiple revenue streams – from CBD off-take agreements and cosmetic and OTC medical products sales. Opportunity to leverage growing and extraction expertise in the Australian Market.

MGC has a business model which closes the supply chain – demand exists for the end products and MGC is now working towards establishing the supply of the raw material.

  • Development of Cannabis Strains in

Slovenian Laboratory

  • Plantation and harvesting of crops in
  • utdoor facility in Slovenia

Cultivation

  • Crops to be processed on site at

Slovenian facility and CBD extracted

  • Targeting 60% purity CBD resin
  • MGC has the capability to process
  • ther crops on site

Extraction

  • Sell CBD Extract into:
  • Wholesale markets – other off-takes

in pipeline

  • Off-take with Natura JV to utilise in

cosmetic products.

Distribution & Sales

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Medical Cannabis could be legally available in Australia as early as 2016

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MGC Australian Strategy

MGC to be first in line to exploit scalable commercial opportunities in Australia for CBD based expertise and products

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Appointment of Dr. Ross Walker as Non-Executive Director and Head of Strategic Advisory Board. Collaboration with University of Sydney Business School on research and commercial opportunities in Australia. Leverage Dr. Ross Walker’s significant contacts in Australia and potential for access to distribution channels for MGC’s CBD products. Take advantage of tax incentives from new Federal Government innovation and research push.

Complete Next Steps

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Global Market Opportunity – Medical Cannabis

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  • Cannabinoids are legal in 23 U.S states

and the medical cannabis market is estimated to be worth USD$2.7 billion globally in 2014 and US$10 billion by 2019

  • In Canada the market for medical

cannabis is expected to grow significantly, from $144m in 2014

  • Common diseases for which

Cannabinoids have shown high levels of efficacy have combined sales of +US$300 million to date

Sources: ArcView Group, The HIA, Statista

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Cannabidiol (CBD) – Global Potential

Scientific and clinical studies indicate that CBD could be effective in easing symptoms of a wide range of difficult-to-control conditions, including:

9 Nausea

Inflammatory Disorders

Anxiety and Depression Tumors and Cancerous Cells1 Diabetes

Rheumatoid arthritis

Epilepsy

Schizophrenia

Chronic Pain 2 Multiple Sclerosis Skin Conditions: Psoriasis and Acne

  • 1. CBD has demonstrated neuro-protective effects, and its anti-cancer potential is currently being explored at several academic

research centers in the U.S. and other countries.

  • 2. Impacts pathways in the body, which control pain and support the immune system, thereby delivering significant medicinal

benefits in the treatment of chronic pain

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Capital Structure

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  • 1. 100,000,000 Performance Shares upon MGC securing an off-take agreement to sell commercial quantities of CBD resin that contains a minimum

purity of 50%, and achieving first revenues of at least 1m Euro within three years, as detailed in ASX announcement dated 18 May 2015. Note- On completion of acquisition, MGC vendor securities will be escrowed pursuant to Ch 1&2 of the ASX Listing Rules

Ordinary Shares Performance Shares Unlisted Options Cash Current issued capital 507,586,552 Nil 53,500,000 $2.0m Shares to be issued to consultants and prospectus shares 3,846,700 Nil Nil Nil Underwriting Options to be issued Nil Nil 20,000,000 Nil MGC vendor consideration securities 200,000,000 100,000,0001 Nil Nil Total 711,433,252 100,000,0001 73,500,000 ~$2.0m

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2015 Weekly Share Price Movement

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60 day moving average 30 day moving average Share price movement

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Disclaimer

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This presentation has been prepared by Erin Resources Limited to be renamed MGC Pharmaceuticals Ltd (“Company”). It does not purport to contain all the information that a prospective investor may require in connection with any potential investment in the Company. You should not treat the contents of this presentation, or any information provided in connection with it, as financial advice, financial product advice or advice relating to legal, taxation or investment matters. No representation or warranty (whether express or implied) is made by the Company or any of its officers, advisers, agents or employees as to the accuracy, completeness or reasonableness of the information, statements, opinions or matters (express or implied) arising out of, contained in or derived from this presentation or provided in connection with it, or any omission from this presentation, nor as to the attainability of any estimates, forecasts or projections set out in this presentation. This presentation is provided expressly on the basis that you will carry out your own independent inquiries into the matters contained in the presentation and make your own independent decisions about the affairs, financial position or prospects of the Company. The Company reserves the right to update, amend or supplement the information at any time in its absolute discretion (without incurring any obligation to do so). Neither the Company, nor its related bodies corporate, officers, their advisers, agents and employees accept any responsibility or liability to you or to any other person or entity arising out of this presentation including pursuant to the general law (whether for negligence, under statute or otherwise), or under the Australian Securities and Investments Commission Act 2001, Corporations Act 2001, Competition and Consumer Act 2010 or any corresponding provision of any Australian state or territory legislation (or the law of any similar legislation in any other jurisdiction), or similar provision under any applicable law. Any such responsibility or liability is, to the maximum extent permitted by law, expressly disclaimed and excluded. Nothing in this material should be construed as either an offer to sell or a solicitation of an offer to buy or sell securities. It does not include all available information and should not be used in isolation as a basis to invest in the Company. Future matters This presentation contains reference to certain intentions, expectations, future plans, strategy and prospects of the Company. Those intentions, expectations, future plans, strategy and prospects may or may not be achieved. They are based on certain assumptions, which may not be met

  • r on which views may differ and may be affected by known and unknown risks. The performance and operations of the Company may be influenced by a

number of factors, many of which are outside the control of the Company. No representation or warranty, express or implied, is made by the Company, or any of its directors, officers, employees, advisers or agents that any intentions, expectations or plans will be achieved either totally or partially or that any particular rate

  • f return will be achieved.

Given the risks and uncertainties that may cause the Company’s actual future results, performance or achievements to be materially different from those expected, planned or intended, recipients should not place undue reliance on these intentions, expectations, future plans, strategy and prospects. The Company does not warrant or represent that the actual results, performance or achievements will be as expected, planned or intended. US disclosure This document does not constitute any part of any offer to sell, or the solicitation of an offer to buy, any securities in the United States or to, or for the account or benefit of any “US person” as defined in Regulation S under the US Securities Act of 1993 (“Securities Act”). The Company’s shares have not been, and will not be, registered under the Securities Act or the securities laws of any state or other jurisdiction of the United States, and may not be offered or sold in the United States or to any US person without being so registered or pursuant to an exemption from registration including an exemption for qualified institutional buyers.

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Contact Information

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Media Enquiries Asher Moses Director Media and Capital Partners +61 438 008 616 Asher.moses@mcpartners.com.au ERI soon to be MGC Pharmaceuticals Brett Mitchell Executive Chairman +61 8 9389 2000 info@mgcpharma.com.au