This will be presented at 10 am Tuesday 24 November 2020
We’ll have a closer look at the document and come back with some follow up bullets later in the day
This is what the Chairman will be saying- the full document below
24 November 2020 – Cann Group Limited (ASX: CAN) presents the Chairman’s Address and CEO’s Address to shareholder at the Annual General Meeting to be held at 10.00am today, Tuesday 24 November 2020.
Good morning everyone. My name is Allan McCallum AO, and I am the Chairman of Cann Group Limited. I will be chairing today’s Annual General Meeting. Today we are very pleased to welcome you to our virtual AGM, held on a platform provided by our share registrar, Link Market Services Limited.
We hope that holding a virtual meeting will assist to curb the spread of the COVID-19 virus and encourage greater participation and engagement amongst our shareholders. Regardless of where you are, I hope all of you are staying well as we continue to navigate the challenges associated with COVID. It has, without doubt, been an extraordinary 2020 for not only Cann Group – but for all of us, in both a business and personal context. COVID-related disruption and delay has impacted progress on several key fronts, including regulatory approvals, commercial activity and our planned debt financing.
The business has also had to adapt work practices to ensure we safeguard the health and well-being of our employees, while continuing to progress some of our important R&D programs and maintain production and manufacturing schedules. Despite these challenges, the Company has remained steadfast in its focus on continuing to position Cann Group as an industry leader in medicinal cannabis.
We remain confident that our vertically integrated, business-to-business model will enable us to generate sustainable growth and strong shareholder returns. Despite some delays in sales in the first part of this financial year, the company remains on track to achieve its forecast revenue target for FY21 and to establish itself as the leading producer in Australia of GMP certified product that meets international standards.
While the past year has seen some volatility in supply and demand on a global basis, there continues to be strong evidence of growing awareness, support and demand for safe, high quality medicinal cannabis treatments both here in Australia and in the expanding number of legal overseas markets. The number of prescribing medical professionals and patients continues to rise, and the body of medical evidence supporting the use of medicinal cannabis across a variety of indications continues to strengthen.
Cann Group’s investment in producing product to the highest standards and navigating the complex and often changing regulatory frameworks that exist around the world places us in a strong position to successfully access markets and build commercial momentum with our distribution partners.
The support of shareholders, via the capital raising in July/August, also places the company in a strong financial position to execute on expansion plans, including the development of our state-of-the-art production facility near Mildura.
Our announcement this week that National Australia Bank is supporting the Company with debt financing to assist with the construction of Mildura is a very significant milestone in terms of our growth plans. Last month, we saw the selldown and exit of Canada-based Aurora Cannabis, which had taken a cornerstone shareholding at the 2016 IPO. For any of you who have closely followed Aurora over the past 12 months, you will be aware of the considerable challenges they have faced and their stated objectives to focus on their own business.
In that respect, their decision to exit the shareholding in Cann Group was not a surprise. Importantly, the technical services agreement between the two companies remains in place and the work being undertaken at Mildura by greenhouse design firm, Aurora Larssen Projects, has not been impacted. As with most developing industries, we expect to see some rationalisation and consolidation in the medicinal cannabis sector as markets continue to develop and various business models are tested.
We will watch those moves closely with a view to identifying any opportunities that we believe will strengthen Cann Group’s prospects. It is important to note, however, that the company’s prime focus will remain on executing the strategy we have in place and delivering on our revenue and growth projections. The next 12 months is a critical period for the business, and one in which we have the opportunity to firmly establish Cann Group as an Australian industry leader. On behalf of the Board I would like to thank Peter and his management team – and all Cann Group employees – for their efforts over the past 12 months. And I would again like to thank shareholders for your ongoing support.