Investor Hub Answers, page-7

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Successful completion of the Phase III study will open up a number of opportunities for the company.

The first, and most straight forward, is the licensing of the product for the Australian market. There are three tiers of potential licensees for the product in Australia; the large pharmacy chains, the local generics companies that focus on pharmacy medicines, and then the larger, global companies that hold a position in pharmacy OTC medicines. They all want a registered, pharmaceutical CBD product for the Australian market. There is an excess of potential licensees for the number of products under development, so all of us fortunate enough to prove success in a Phase III clinical trial and/or TGA registration will do well.

Having taken on the risk of Phase III ourselves, we would expect significant upfront licensing fees and royatlies on net sales. A registered OTC CBD product will be in most pharmacies throughout the country, with direct access to the entire Australian adult population. It will do well, especially for an indication that affects 40% of all adults.

We will also derive revenue from the manufacture and sale of the TPM to be used in the CBD soft-gel capsule.

While this is very attractive commercially, the subsequent win would be the licensing of the product for the larger overseas markets. With a successful Phase III trial and/or TGA registration under our belt, we would expect significant interest from global pharmaceutical companies.