Investor Presentaiton
APPENDIX
שיי
Economic highlights of rare cannabinoid production
RARE CANNABINOID OUTPUT
IN HOUSE FERMENTATION VS. CULTIVATION
Based upon our target yields, production of cannabinoids from
fermentation delivers significant production cost savings
Production of THC represents more than 23% cost
savings
When using the more potent THC-P, production savings
exceeds 97%
When applied to 2021 output forecasts, the cost savings for THC
would be $12.8M1
There is a significant speed advantage to get production up and
running when compared to cultivation construction
In a world where each market requires a separate
supply chain, this is critical to accelerate revenue
On top of speed, fermentation provides a significant cost savings
over agriculture
To match cannabinoid output of a 145K square foot
facility, a fermentation setup would require $1.3M of
equipment and 4 FTEs in 4,000 square feet
When applied to 2021 output forecasts, the cost savings for
THC-P would be >$52M1
Estimated Cost savings for Parallel existing Infrastructure for
infused products: $45M+1
With savings applied to 14x entry EBITDA multiple, implied
enterprise value boost exceeds $729M²
MICROBIAL PRODUCTION (COST PER GRAM)
$19.60
$15.09
$0.46
CAPITAL EXPENDITURES PER GRAM
$12.03
$0.47
Fermentation
Agriculture
Fermentation
(THC)
Fermentation
(THC-P)
Traditional
Cultivation
1. See "Forward-Looking Statements" disclaimer on pages 3-4 and financial assumptions on pages 57-58. 2. See "Non-GAAP Measures, Reconciliation, and Discussion" disclaimer on page 5.
(BioReactor)
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