website

PRESENTER: 2020

Purpose: Do good for the People and Planet.

Cannabis InvestorPitch Deck

1Project/Vision2

Executive Summary

3 Start-up Summary

4 Products & Services

5

6

Market Opportunities

7

Strategy

8

Production/Sales Forecast

Content

Team/Management

9 Financials

3

ExecutiveSummary

4IntroductionBUSINESS NAME (website) is a new vertically integrated cannabis supplier in …, Ontario.

Our cultivation and processing facilities provide total space of approximately … sq. m. Since demand is expected to increase over the next years, market would require a continuous increase in production.

Future building improvements can be made to grow the operation.

Company will have the ability to vegetate up to 0,000 plants and flowers concurrently. BUSINESS NAME is also dedicated to making the cleanest, safest, and premium quality cannabis oil.

BUSINESS NAME believes concentrates are the cleanest, most accessible way to consume most of the beneficial aspects of the cannabis plant.

Company intend to combine a small family business hospitality with big business efficiency to provide high quality cannabis-concentrates in a clean and safe environment.

Produce and sell the highest-quality cannabis products. We will distribute cannabis products through the Ontario Cannabis Store (OCS) to qualified and licensed cannabis establishments.

Utilize cutting edge and proprietary supercritical CO2/ethanol/BHO extraction processes with High Production WFE system.

Legal cannabis spending in Canada is expected to generate up to $5.2 billion by 2024, according to a new report “Canada Leads the Way on Global Cannabis Legalization”.

INDUSTRY

TECHNOLOGY

PRODUCTS

5Financial Summary

$0.0

$0.5

$1.0

$1.5

$2.0

$2.5

$3.0

$3.5

$4.0

$4.5

$5.0

Year 1 Year 2 Year 3 Year 4 Year 5

Mill

ions

Revenue Net Income

$0.0 $0.5 $1.0 $1.5 $2.0

Year 1

Year 2

Year 3

Year 4

Year 5

Millions

Cash Flow (ending period)

From a total investment of $0 million, Company is expected to generate nearly $0 million in gross revenues with pre-tax income of nearly $0 million in Year 3, its first full year of operations. Revenues are expected to grow to nearly $0 million in Year 4 and $0 million in Year 5, with pre-tax income of nearly $0 million and over $0 million respectively.

6

Project Vision

7Mission Statement

To become one of the leading producers of the highest quality cannabis products in the market

Main Goals:A. To grow one of the best cannabis.B. To produce high-grade dried cannabis and cannabis oil and build a

recognizable brand in a rapidly growing industry.C. To ensure all cannabis products that will be distributed meets all

regulatory requirements and has passed any and all requiredlaboratory testing.

8Business Objectives

Maintaining exemplary production standards and becoming a leading supplier of dried cannabis.

Getting a Cannabis Grower license

Lookout for ways to improve our processes and maximize our returns on the cannabis plants we use.

Getting a Cannabis Processor license

Focusing on producing unique, high quality, cannabis products. Monthly sales and capacity increasing steadily throughout the first year.

Net annual income to supportoperational expenses

Maintaining a nimble operational structure and cultivation strong relationships with distributor that will allow it to quickly respond to shifting customer needs.

Become profitable by the end of the first year of operations

01 02

03 04

9

Start-upSummary

10Start-Up Summary

C$ 0,000,000The cost to start-up our company

C$ 000,000Assets

C$ 000,000 C$ 000,000Direct Costs Operating Costs

11Start-Up Assets & Use of Funds

Start-Up Assets Quarter 1

Building for cultivation $000,000

Light System, CO2 generators, A/C system, other equipment for growing $000,000

Building for equipment $000,000

Extraction/Processing equipment $000,000

Security system $000,000

Computers and software $000,000

Total $000,000

Total Use of Funds $0,000,000

Use of Funds

Assets $000,000

Initial expenses $000,000

COGS $000,000

SG&A $000,000

12

ProductsServices

13Product & Services

Dried Cannabis

We will dry and process all cannabis flowers into

labeled/inventoried vacuum sealed bags before transport.

Description:

Cannabis Oils

We will produce own cannabis concentrates, including CO2

pure oil and ….

Description:

Co-branded Lines

We will have strategic partnerships with cultivators /

packagers.

Description:

14Products Revenue Structure & Margin

We will strive to provide high-end and affordable cannabis products. We want to

build a brand that both distributor and retailers will count on for professionalism,

consistency, quality, and innovation.

% of Revenue & Margin by Product Category:

revenue marginDried Cannabis 62% 75%Cannabis Oils 38% 68%

15

MarketAnalysis

16Market Growth

The North America legal cannabis market amounted to almost $14 billion in 2019, growing by almost 30 percent on the year. The largest market was the United States, which totaled $12.2 billion. It was followed by Canada with about $1.7 billion. Report from cannabis industry analysts Arcview Market

Research, in partnership with BDS Analytics, predicts the overall cannabis market for legal adult-use and medical sales in North America to reach $24.5 billion by 2021 with the compound annual growth rate (CAGR) to over 20% and will grow to $46.5 billion six years later.

0

3

6

9

12

15

2018

Billi

on $

Medical Recreational

0

3

6

9

12

15

20190

3

6

9

12

15

20200

3

6

9

12

15

2021

17% 29% 33% 32%

17Cannabis Medical Market

The country has seen an average of a 10% increase each month in the number of Canadian patients signed up to receive medical cannabis. The sale of dried cannabis has grown steadily at 6 percent a month (except the quarter before legalization), and the sale of cannabis oil has been

growing by 16 percent a month.

5,83

6

5,89

6

5,90

5

6,34

2 6,61

0 6,76

7

5,97

5

5,200

5,400

5,600

5,800

6,000

6,200

6,400

6,600

6,800

7,000

Q1

2017

Q2

2017

Q3

2017

Q4

2017

Q1

2018

Q2

2018

Q3

2018

5,67

3

6,19

4 7,66

9 9,27

4 10,3

26

12,2

64

13,1

56

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

Q1

2017

Q2

2017

Q3

2017

Q4

2017

Q1

2018

Q2

2018

Q3

2018

Cannabis dried flowers sales, kg Cannabis oil sales, kg

18Cannabis Recreational Market Sales at cannabis stores in the first three

months after legalization totaled $151.5 million and reached $1,186 million for the period from January 2019 to December 2019 according to Statistics Canada.

Total sales of dried cannabis in Quarter 3, 2019 increased by 32.4% compared to Quarter 2, 2019 (from 28,394 kilograms to 37,588 kilograms), while total sales of cannabis oil increased by 15.7% (from 27,692 litres to 32,032 litres) during the same period.

As of March 2020, Health Canada has issued 320 licenses to LPs, including 258 licences for cultivation, 219 licenses for processing and 174 licenses to sale (medical) cannabis.

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19

Sales from cannabis stores, by province (millions of dollars)

NT PE NL BC NB SK MB NS ON QC AB

19Cannabis Consumers5.1 million or 16.8% of Canadians aged 15 and older reported using cannabis in the first half of 2019

An estimated 48% of cannabis users or 2.4 million Canadians obtained cannabis from legal sources in the first half of 2019, compared with about 25% over the same period in 2018, before recreation cannabis legalization.

The average age of cannabis users is 38 years and consumption rates were still higher among men (21%) than among women (12%).

Almost half of all users reported using cannabis for non-medical reasons while about one quarter indicated using for medical reasons and one third reported using for both reasons. Non-medical users rarely spent more than $250 over three months, while almost half of medical users (46%) and 18% of mixed users reported this level of spending.

76% of cannabis users cited quality and safety as the most important factor, followed by lowest price (42%) and accessibility (such as open evenings and weekends), location (proximity to home), and the availability of a preferred potency (or formulation) as important (33%).

ON41%

AB14%

NS4%

BC15%

SK3%

NB3%

QC15%

MB4%

NL1%

20Cannabis Market ForecastsGrowth is forecasted to be strong with the potential

economic impact at more than $22 billion The total cannabis market in Canada, including medical and recreational cannabis products, is expected to generate up to

$7 billion in sales in 2020 with $2 to $4 billion in the legal recreational market. Medical cannabis is anticipated to

generate an additional $0.7 billion to $1.7 billion in sales.

ArcView Market Research expect Canada’s thriving medical market to peak in 2018 and start to descend in 2019. Adult-

use spending estimated to reach over $3 billion in 2021, driving a CAGR of 77.9% from 2018-2021. The new report

predicts Canada’s legal cannabis market will hit $5.2 billion by 2024.

According to the CIBC analysts forecast, by 2020, the cannabis industry will have a retail value of $6.8 billion,

larger than the hard liquor market and almost as large as the wine market.

4.34

1.37

1.68

1.00

0.29

0.00 1.00 2.00 3.00 4.00 5.00

Canada

West

Ontario

Quebec

Atlantic

$billion

00.5

11.5

22.5

33.5

44.5

2014 2015 2016 2017 2018 2019 2020 2021Adult Medical

21Ontario Cannabis Market

Ontario was the first province out of the gate with a detailed plan to sell and distribute recreational cannabis

The Alcohol and Gaming Commission of Ontario is the provincial regulator that licenses cannabis retail operators and authorizes retail stores.

As of December 2019, 68 Cannabis Retail Operator Applications have been processed and 26 Retail Store Authorization have been received.

Data collected by Statistics Canada show that retail sales in Ontario reached $8.9 million in January, then jumped to almost $20 million in April and increased to $33.7 million in December 2019.

The Cannabis Intelligence Briefing: Canada Leads the Way on Global Cannabis Legalization report, published by Arcview Market Research and in partnership with BDS Analytics, suggests Ontario cannabis market will grow to almost $2 billion in 2024.

0

5

10

15

20

25

30

35

40

Retail Trade 2 per. Mov. Avg. (Retail Trade)

22SWOT Analyses

Greenhouses will allow significantly decrease electricity bills and increase profit while competitive pricesDiversification of business - cultivation and extractionExtensive industry knowledgeProven, disciplined management team

STRENGTHS

Positive Negative

Internal

External

Strengths

S

Weaknesses

W

Threats

T

Opportunities

O

Lack in professional workforce for a cannabis industryCrop loss possibility due to pests, heat, human error, etc.High energy consumption

WEAKNESSES

High growth industry, growing interest and demand for natural, alternative medicineCanada economy on the upswingThe concentrates segment will continue to experience strong demandThere is more room for innovation and iteration in the concentrates category than any other segment of the industryGlobal Market

OPPORTUNITIES

Black market competitionEvolving regulations in a changing marketLarge companies entering the market

THREATS

23

Marketing Strategy and Implementation

ABC

D

EF

Merchandise & Event SponsorshipsBUSINESS NAME -branded products such as shirts, hats, grinders, cases/containers, etc.Sponsor cannabis-related industry events to gain brand exposure and bring the BUSINESS NAMEname to the forefront of the community.

Social MediaWe will have a significant social media presence. Appropriate forums will be monitored daily, with dedicated staff resources to be active and knowledgeable participants. We will develop a social media content strategy which will include Twitter, Facebook, Instagram, LinkedIn and YouTube.

Information KitsRegistration forms, brochures, and general information. They will provide information on what our products are.

BrochuresWe will produce high-quality brochures with detailed information for each product.

WebsiteWe will have a professionally-designed website.

Direct MarketingThe marketing and sales strategy of BUSINESS NAME Company will be based on generating long-term personalized relationships.

24Marketing Plan

25Cannabis Directories and Platforms

WEEDMAP

https://weedmaps.com/

Cannabis finder on the planet. With over 7,750 listings throughout the U.S., Canada, and Europe.

7.96 million total visits each month.Canada – 8.5%

LEAFY

https://www.leafly.com/

Leafy is a cannabis information resource for finding the right strains and products.

226.27 thousand total visits each month.Canada – 11.2%

The most effective strategy for cannabis producers is a brand marketing and promotion.

26

Production Sales Forecast

27Growing and Manufacturing Facilities

The physical address of our cultivation andmanufacturing facilities will be ….

Premises will be located in a 000-sq. m building withadequate power to service both operations.

The cultivation operation will take up 000 sq. m and willbe adequate to house and grow up to 0,000 plants.

The manufacturing premises will take up 000 sq. m andwill include extraction and refining equipment, vacuumovens and packaging machines. This facility will offer asignificant advantage in the development andmanufacture of our flowers, compounds and edibles.

We have contracted for our facilities for 0 years withoptions for an additional 0 years without rent increase.Lease costs is $0,000 per month.

Vegetative RoomsFlowering RoomsDrying & Trim RoomsCuring RoomsExtraction RoomsCompounding RoomsCannabis Infused Production roomPackaging Rooms

28Growing Forecast

1,07

8

1,52

2

1,52

2

449

634

634

YEAR 1 YEAR 2 YEAR 3

Flowers TrimKGCompany intends to mix outdoor cultivation from April to October period and all around year greenhouse cultivation.

As growing stage will start from 2020, we project to have a first harvest from April 2020 and then every 2 weeks, about 18 harvests for the first year and 26 harvests from the second year.

BUSINESS NAME will produce up to 2 strains within 5 months of becoming a licensed cultivator. Company will have the ability to vegetate up to 1,000 plants and flowers concurrently, will grow up to 11different strains of cannabis.

Company will use a Perpetual Harvest technique in which growersutilize multiple grow tents/areas to ensure that there are alwaysplants in both the flowering stage and in the vegetative stage.

29Supercritical C02 ExtractionTechnology

0 20 40 60 80

9

12

15

18

21

24

Hour

s

KG Processed

CO2

Supercritical C02 Extraction

Run Time (Minutes) 480

Changeover/Prep (Minutes) 30

Time Window (Hours) 24

Capacity (Litres) 100

Biomass Per Run (kg) 22

Biomass within Window (kg) 63

Yield within Window (Tons) 0.07

Oil Yield (kg) 9

We intend to use a High Production CO2 Extraction Equipment to get a primary extract. The equipment utilizes a Dual-Phase Pumping System – a liquid pump that allows for high CO2 flows at higher pressures and the Diaphragm Compressor Technology gas pump for energy efficiency and cold separation, this system

will provide high production with a wide range of processing options for supercritical and subcritical extractions. We will then use a High Production WFE system which offers high-capacity, high-production operations with fast, efficient molecule of botanical oils without thermal degradation.

30Technology

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Dry Herb Ethanol Water CO2 BHO Rosin

THC Strengths of Cannabis Extracts

BHO Extraction

BHO extraction technique is the most cost-efficient extraction method available. With an average extraction cycle of less than one hour, BHO is the fastest commercial extraction method. That is 9 times faster than the average 9 – 10 hours comparable CO2 supercritical extraction cycle. The cost of BHO extraction equipment is also much lower than CO2 equipment.

We intend to use High Production Extraction system, which efficiently extract botanical oils without thermal degradation at industry-leading processing rates. System utilize alcohol which acts as a solvent and strips the THC, CBD, Terpenes, Chlorophyll, and wax compounds from plant material then carrying them in

solution form within the alcohol.

Advantages The FDA classifies ethanol as “Generally Regarded as Safe,” or GRAS,

meaning that it is safe for human consumption. Ethanol is safer than butane and more effective than supercritical CO2. The ethanol removed from the finished concentrate can be reused in

multiple extractions, which effectively eliminates the production of chemical waste.

31Ethanol ExtractionTechnology

We intend to use a High Production Extraction system, which is equipped for both ethanol and hydrocarbon based solvents, to get a primary cannabis extract. We will then use a High Production WFE system which offers high-capacity, high-

production operations with fast, efficient molecule of botanical oils without thermal degradation.

32Ethanol & Hydrocarbon ExtractionTechnology

Ethanol Advantages

Ethanol is classified as “Generally Regarded as Safe,” or GRAS, meaning that it is safe for human consumption.

The ethanol removed from the finished concentrate can be reused in multiple extractions, which effectively eliminates the production of chemical waste.

Ethanol extraction can eliminate the need for a dewax or winterization and suites for creating a full spectrum cannabis extracts and tinctures.

Hydrocarbon Advantages

Butane/Propane extraction technique is the most cost-efficient extraction method available.

BHO is the fastest commercial extraction method. Can resolve some ethanol extraction disadvantages, including

the limitation in the products can be produced and high post processing labor intensive, involving the use of several different methods of refinement and filtration.

33Production Forecast

For the purposes of this plan, BUSINESS NAME will assume that a 100 kg harvest of dried flower will also produce 10 kg of trim to be used for cannabis extractions and concentrates. 10 kg of high-quality trim will yield about 1.2 kg of extractions and 0.9 kg of high-quality pure oil.

We intend to start with 0.0 kg of material per day for first month and increase on 0.0 kg more during next months until reaching 0.0 kg per day.

All BUSINESS NAME cannabis products will include Laboratory Test Results in their packaging.

9,47

2

21,0

68

23,1

75

23,7

14

23,7

14

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

Concentratesgram

34

Expenses Cut

Operating Needs

Sales Growth

Sales are expected to start conservatively the first few months and increase steadily through the second, third and fourth quarters of the first year of operations.

Cash will be retained in the business to cover cash operating needs as well as future expansion to meet the demands.

After the first year of operations, it is expected that BUSINESS NAME will be able to trim expenses through realizing business efficiencies, gaining operational experience and industry knowledge.

Sales Forecast

1,46

8,80

0

2,57

0,40

0

2,82

7,44

0

2,86

4,16

0

2,86

4,16

0

160,

051

414,

826

459,

901

474,

273

474,

273

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

Indoor Flower Concentrates

35

TeamManagement

36

Cristopher JohnsonCompany CEO

Confidential

Experience: 15 years

Confidential

Eva SmithCompany Co-Owner

Experience: 10 years

Management Team

Shean CollinsCompany CEO

Confidential

Experience: 8 years

37Company Organization

Director

Extraction Department Manager, Extraction Extraction Tech

Sales Department

Admin and Logistics Personnel

Sales & Marketing Personnel

Master Grower

Assistant

Trimmers/Packagers

38

Financial Plan

39Projected Profit and Loss, C$YEAR 1 YEAR 2 YEAR 3

RevenueCOGS - Cost of Goods Sold

Gross Profit% of revenue

SG&A ExpensesG&A Expenses - Initial & General CostsG&A Expenses - CultivationG&A Expenses - Extraction/ManufacturingSG&A Expenses - Marketing & Sales ExpensesSenior Management Salaries & BenefitsIT Salaries & BenefitsOther Salaries & BenefitsSG&A Expenses - Misc.

Total SG&A Expenses

Operating Income (EBITDA)% of revenue

Depreciation and AmortizationEarnings Before Interest & Taxes (EBIT)Interest ExpenseEarnings Before Taxes (EBT)

Income TaxNet Income% of revenue

40Projected Cash Flow, C$YEAR 1 YEAR 2 YEAR 3

Net Income

Cash Flow from OperationsDepreciationChange in ReceivablesChange in InventoryChange in Accounts PayableChange in Accrued ExpensesTotal Cash Flow from Operations

Cash Flow from InvestingCapital Expenditures (CAPEX)Other Total Cash Flow from Investing

Cash Flow from FinancingRevolver Issuance / (Repayment)Long-Term Debt Issuance / (Repayment)New Equity InvestmentsDividendsTotal Cash Flow from Financing

Total Change in CashBeginning Period CashEnding Period Cash

41Ratio Analysis

Ratio Analysis YEAR 2 YEAR 3 YEAR 4 YEAR 5 Avg. (2-5 years)

Return on Equity 76.1% 47.5% 33.9% 25.3% 45.7%

Return on AssetsReturn on Sales 29.9% 30.6% 30.9% 30.9% 30.6%Asset turnover 2.55 1.55 1.10 0.82 1.50

ProfitabilityGross margin 56.9% 57.7% 58.1% 58.1% 57.7%SG&A as % of Sales 6.9% 6.5% 6.3% 6.3% 6.5%Operating Margin 49.8% 51.0% 51.6% 51.6% 51.0%

Asset Turnover RatiosAccounts Receivable Turnover 36.2 36.1 36.1 36.0 36.1Fixed Asset Turnover 38.5 48.2 58.4 69.0 53.5

42Funding Analyses, C$

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7

Long-Term Debt Beginning Balance

Long-Term Debt Repayment

Long-Term Debt Ending Balance

ROI

Profit Share (Investors)

Company intends to raise C$0,000,000 for 5 years with ROI 12% and profit share 5%. First repayment will start from 11th month.

43

Thank You