Grow

Idea

Introduction

Grow is a pioneering British company on a mission to unlock the potential of cannabis medicines for patients globally.

Medical cannabis is a disruptive new sector with dramatic growth: The European market grew by 25% between 2019 and 2020, and is expected to reach $3.1bn by 2025 - a compound annual growth rate of 52%.

Grow is already one of the largest suppliers of cannabis medicines in the UK & Ireland. Our operations include R&D, doctor education, and medicine delivery to patients and pharmacies.

We improve patients' lives by supplying heavily regulated, pharmaceutical-quality cannabis medicines prescribed by doctors - not retail CBD products.

We also own a medical cannabis production site, allowing us to control the entire supply chain from farm to pharmacy.

But we are determined to do more, expanding our operations into Europe to support as many patients as possible.

That’s why we’re crowdfunding; so like-minded investors can join us to advance access to cannabis medicines.

Substantial accomplishments to date

Since it was founded in 2017, we have achieved incredible things on our way to becoming one of the largest importers of cannabis medicine in the UK and Ireland.

Our main achievements to date:

→ Imported the UK’s first legal bulk order of cannabis medicines in February 2019.

→ Raised over £9.5m through several fundraising rounds to allow expansion of operations

→ £2.35m in revenue year-to-date 2021 (to 20th July)*

→ Reached profitability in the UK in Q1 2021*

→ Supplying medicines to more than 1,200 patients a month as of June 2021

→ Acquired Spanish cannabis medicine processing and manufacturing plant in August 2021

→ Launched patient app, Calyx, to help patients track their medications, and key health indicators, helping patients gain control of their wellbeing and creating real-world evidence that advances understanding of cannabis medicines

→ Developed an intellectual property portfolio for polymer technologies that can be used across the medical cannabis supply chain, having filed two patents for cannabis extraction technology and acquired a third.

→ Signed long term partnerships with some of the world’s leading cannabis companies, including Aurora, Tilray and Columbia Care

→ Developed partnerships in 13 countries to source, secure and/ or sell high-quality cannabis medicines

→ Launched the ‘Open Cannabis’ campaign to improve education on cannabis medicines and how to access them in the UK.

*based on unaudited management accounts

Monetisation strategy

Current Revenue Sources

1) Prescription revenues: generated from products prescribed by doctors and dispensed & delivered directly to patients through Grow’s UK pharmacy.

2) Wholesale revenues: We supply our best-in-class basket of medicines to other medicine distributors, so patients can receive the best product regardless of where they receive treatment.

3) Market access services: Grow supply sales, marketing and education services for its partners, educating prescribers on the science of cannabis medicines and the products available for patients.

Future revenue sources

We have been busy preparing for additional revenue streams over the course of the coming year, including:

→ Geographic expansion of Grow distribution, wholesale and market access services

→ Sales of products and technologies derived from our R&D

→ Licensing of our R&D technology to cannabis operators

→ International brokerage deals and tolling services

→ International supply deals

→ Clinical trials (due to commence later 2021)

Use of proceeds

→ Expansion of UK business (Hiring of staff & marketing budget)

→ New European market entry (Capital Expenditure, Working Capital, Hiring of staff)

→ Acceleration of R&D projects (Capital Expenditure, Hiring of staff, Working Capital)

→ Working capital for Grow Trading arm - for inventory and to finance receivables

Note on EIS:

While Grow has raised EIS eligible funds in the past, there are strict rules around the use of funds. These include use on agricultural activities, and having minority stakes in operating companies.

As a team with a strong aptitude in structured deals/M&A, we believe that the best way to maximise operational flexibility - and long-term shareholder value - is to stop issuing EIS shares.

We think it’s important not to restrict our ability to grow and our competitive edge in a nascent market. As new markets come online we expect existing supply chains to be disrupted and interesting structural opportunities to arise, and are actively planning for this scenario.