DEVELOPING A GLOBAL CANNABIS COMPANY - · PDF fileCurrent Duncan, BC Facility HARVEST ONE |...

DEVELOPING A GLOBAL CANNABIS COMPANY

HARVEST ONE | PRESENTATION – FEBRUARY 2018

Developing a Global Cannabis Company

A look at our groups international operations

HARVEST ONE | PRESENTATION 2017

EUROPESatipharm- Medical BrandEstablished distribution network throughout much of the EU

ISRAELPhytotech Therapeutics (Strategic Partner)Research and Development

AUSTRALIAMMJ Phytotech(Strategic Partner- owns 60% on HVST)

CANADAUnited Greeneries- ACMPR ProducerState of the art production facility with fully funded expansion set to produce approx. 8,500kg by 2018

Takingadvantageofglobalchangesinlegislation

Strategicallylocatedinselectglobalmarkets,HVSTachievesuniquejurisdictionalsynergies

Continuouslyevaluatingopportunitiesacrosstheentirecannabisvaluechain

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Dual Medical and Recreational Strategy

HARVEST ONE | PRESENTATION

Based on Vancouver Island, British Columbia, United Greeneries is focused on large scale cannabis production to supply both the medical and recreational markets

Based in Switzerland, Satipharm is a pioneer in the development and distribution of medical cannabis based pharmaceutical and nutraceutical products

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Current Duncan Facility in BC


• 100%ownedbyHarvestOne

• ACMPRCultivationLicensereceivedJune2016

• ACMPRSalesAmendmentreceivedOct2017

• Stateoftheartproductionfacility

• 16,000squarefeettotalarea

• 1,000kgannualproductioncapacity

• Fullin-housebiochemicalQA/QClaboratory

• 32distinctcommercialvarieties

• Level9securityvault

• ~$10+mcapitalinvestmenttodate

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The Chemainus Facility, BC Expansion Site


Phase1:Fullyfunded,completionexpectedin2018

• ~8,500kgannualproduction(FullyFunded)

• Retrofitofexistingfacility. 50,000sq ft,2levelsofcultivationrooms

• Initialdesignworkcurrentlyunderway

• Optiononadditional8acresonsamesite

• 10minutesfromflagshipDuncanfacility- Allowsforoperationalsynergies

• Futuredevelopmentoptionsavailabletosignificantlyincreaseproductioncapacityin2018&2019

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Chemainus SitePlan ModularDesignPlan

Lucky Lake, SK Facility


• 100%ownedbyHarvestOne

• 62,000ft2on18acressite

• 12,000– 15,000kg/yproductioncapacity

• FinalstagesoflicensingwithHealthCanada

• Previouscapitalinvestment~$12m,H1acquiredfor$750k

• 30ft.bayceilingsallowingmultiplecultivationlevels

• Potentially80,000sq ft ofcultivationspace

• Idealstructureformodularbuildout

• AdjacenttoCNraillineandairport

• Exceptionalfuturedevelopmentopportunity

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Outdoor Growing Strategy*


• 398Acresofonprimeagriculturallandinuniquegeographicallocation

• Planningforpotentialregulatorychangestoallowoutdoorgrowing

• Potentialharvestof50,000kginSeptember2019

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FutureoflowestcostproductioninCanada

• Internationaloutdoorgrowingconsultantsalreadyengaged

• long-floweringSativaandhigh-CBDvarietiessuitableforoutdoorgrowingprocured

• PotentiallowestproductioncostsinCanada

*OutdoorcultivationisnotpermittedunderthecurrentregulationsandtheOutdoorgrowingstrategyininanticipationoffuturechanges.

Satipharm


• ProductionofproprietaryGelpell Microgel CapsulescommencedinMay2015,focusingongrowththroughoutregulatedmarketsglobally

• Neartermgrowth- SignificantdistributionnetworkestablishedacrossEuropewithlongtermcontractswithleadingpharmachains-Rapidlyincreasingsales

• PharmaceuticalCentralNumbers(PZNcodes)wereobtainedfor10MGand50MGcapsulesinMarch2017enablingbothproductstobesoldinanypharmacyacrossGermany

• “FreeSaleCertificate”asNutritionalSupplementobtainedfromGermanauthoritiesremovingallbarrierstotradewithinEUandotherjurisdictions

• OneofthefirstevermedicalcannabisproductsavailabletoprescribedusersinAustralia

• ImportApplicationsubmittedtoHealthCanadatoimportcapsulestoCanadatobesoldunderUnitedGreeneriesACMPRLicense- anticipatedtobeastrongneartermrevenuegenerator

• FurtherexpansionplansincludetheintroductionofotherformulationsincludingTHCandimportationintotargetedinternationalmarketssuchasCanadaandAustralia

• TwoseparatePhase2trialsunderwayonpediatricrefractoryepilepsyandpain&spasticityduetoMS

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Gelpell Technology


• FlagshipGelpell ®Microgel Capsuledeliverytechnologyovercomesbioavailabilityandconsistencyissuesassociatedwithoraldeliveryofcannabis-basedproducts

• TheGelpell ®Microgel CapsuleistheonlyknownproductonthemarketwithapharmaceuticalgradeGMP(GoodManufacturingProduct)production

Gelpell®Microgel Process

• TheGelpell®Microgel processproducesgelatinbeadswhichareapproximately2mminlengthandcontainapayloadofconcentratedcannabinoids.

• Thecannabinoidsareboundandprotectedbyathree-dimensionalnaturalgelatinmatrix.

• Wheningested,thegelatinbeadscreateamicro-emulsionwhichsubstantiallyenhancestheoralbioavailabilityofthecannabinoids,andhelpsensureaccurateandconsistentdoses.

• ThesebeadsareencapsulatedandpackagedunderGMPprotocolsinto10mg,50mgand100mgpresentations.

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Satipharm Uniquely Positioned in the EU


PRODUCTQUALITY

• TheonlycompanyinEUwithpharmaceuticalgradeextractandGMPqualityproducts

• ProprietarydeliveryformatGelpell®

• MadeinSwitzerland

REGULATORYCOMPLIENCE

• Theonlycompanythatfilesofficialnotifications/registrationstoauthorities

• Productsarenotifiedinallcountrieswheredistributed

• Availabledocumentstoprovemarketabilityoftheproducts(FreeSaleCertificates,ExpertOpinionbyswornexpertinEUetc.)

LEADINGDISTRBUTIONNETWORK

• Theonlycompanyintheindustrytosellthroughofficialpharmaceuticalandhealthcarechannels

• ContractswithmainwholesalersandmainretailersinEU

• LeadingpositiononAMAZON

Satipharm is first to develop Pharma Distribution Network


Establisheddistribution

Partnerfound,pendingregistration

Nodirectsalesduetothelocallegislation

Toptierdistributionpartner

Clinical Trials

Building the medical evidence - Successful Phase 1 trials

MMJ PHYTOTECH | PRESENTATION

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Phase 1 Trial Overview Phase 1 Trial Results

• Trial sponsored by Phytotech Therapeutics• Multi-arm, randomized, crossover study• 14/15 completers• Undertaken at Sourasky Medical clinic site• Pre-cursor to Phase 2 clinical trial for the treatment of pain and spasticity for MS

• Demonstrable safety and tolerability profile with no significant side effects• Higher bioavailability (1.2-1.3x) of active compounds in comparison to GW Pharmaceuticals oromucosal spray – Sativex• Very rapid onset• 8 hours exposure time in the blood

Safety & PK Results of THC:CBD Formulations in Comparison to Sativex

Completion of the Phase 1 clinical trial shows a definite advantage over Sativex…

Clinical Trials

Building the medical evidence - Successful Phase 1 trials


Safety & PK Results of Gelpell CBD Formulations

0

1

2

3

0 2 4 6 8 10 12 14

Averageplasmalevels(ng/ml)

Time(h)

CBD10GelpellCBD10

Sativex

0

5

10

15

20

25

30

0 2 4 6 8 10 12 14 16 18 20 22 24Averageplasmalevels(ng/ml)

Time(h)

CBD10mg&100mg

GelpellCBD10

GelpellCBD100

• Safe and tolerable profile with no significant side effects• Consistent results• 1.3 (134%) fold higher bioavailability of CBD 10 mg in comparison to 10 mg CBD in Sativex• Perfect proportionality between CBD 10mg & 100mg• 24 hours exposure time in the blood of CBD 100mg

Clinical Trials Building the medical evidence - Commenced two Phase 2 trials


Study PTL201: Pain & Spasticity

THC/CBD Capsule for relief of pain & spasticity due to MS

PTL101:Pediatric Refractory Epilepsy

CBD Capsule for reduction of seizures in pediatric refractory Epilepsy

Study Description A double-blind, randomized, placebo-controlled, parallel-group study of oral PTL201 THC/CBD capsules in subjects with symptoms of pain & spasticity due to MS

Open-label, single-center clinical study of oral administration of PTL101 as an adjunctive treatment to refractory epileptic children

Drug Description Gelpell® capsules containing THC and CBD

Gelpell® capsules containing highly purified, concentrated CBD

Objective Safety, tolerability and efficacy Safety, tolerability and efficacy

Subjects ~70 MS patients ~15 pediatric patients with refractory epilepsy

Duration Initiated Q2 2017 Initiated Q1 2017- Completed YE 2017

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Capital Structure (As of January 31st, 2018)


Capital Structure

Market Capitalization $220million

Issued Shares 148,885,662

Warrants 33,432,782($1.00-$2.30)

Options 8,050,000@$0.75

Cash $82m

Convertible Debenture $4.914m (Exercisableat$0.84cents)

52 week Low/High $0.47– $2.20

Insider Holdings Approximately 35%(MMJHolding)

Analyst Coverage


Firm Analyst Phone Email

Haywood Securities Neal Gilmer +1 (416) 507-2300 [email protected]

Mackie Research Greg McLeish +1 (416) 860 7600 [email protected]

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Management Team


Andreas GedeonCEO

NickMaltchevCTO

LisaDeaCFO

DanielaVaschiCOS/CEOUnitedGreeneries

FormerofficerintheGermanNavy.

BachelorinEducationalScience.

Experiencedentrepreneurandsuccessfulbusinessowner.

Expertiseinlarge-scaleandHRintensiveprojects.

FounderofUnitedGreeneriesandSatipharm.

ManagingDirectorofMMJPhytotech (ASX:MMJ).

25yearsoftechnologyexperience.13yearsindustryexperiencewithAdvancedNutrients.

HeldseveralpositionsincludingInformationTechnologyManager,COOandGeneralManager.

HoldsaBBAdegree,aswellasotherdesignationsinprojectmanagement,cybersecurityandcomputerscience.

CurrentlyintheprocessoffinishinganMBAinmanagementinformationsystems.

Over20yearsofexperienceinfinance,securitiesandaccountingfields.

CFOofseveralTSXandTSX-Vlistedcompanies

11yearsatDeloitte&Touche LLP

CharteredAccountantsdesignationandB.Comm fromtheUniversityofBritishColumbia.

Ms.Vaschi isanOrganizationalPsychologistfromtheEuropeanUnionwithmorethantenyearsofmultidisciplinaryexperience,includingover6yearsatthecorporatelevelwithinglobaloperations.

Shehasasuccessfulbackgroundindevelopingbusinessstructuresfromgroundzero,aswellasrebuildinginfrastructureaftermergersandacquisitions,downsizingandturnarounds.

SheisanactivememberoftheInternationalOrganizationDevelopmentAssociation,performinganongoingmeta-analyticresearchonEmotionalIntelligence.

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Board of Directors


Andreas Gedeon Managing Director and CEO

Peter Wall Chairman

Jason Bednar Director

Will StewartDirector

Mr. Gedeon, a former Officer in the German Navy, graduated fromthe University of the German Federal Armed forces in Munich with a Bachelor in Educational Science in 2000. He is an experienced entrepreneur and businessman with proven expertise in large-scale and HR intensive projects. His previous areas of business include media production and commercial construction. As the founder of United Greeneries and Satipharm, Mr. Gedeon became Managing Director of MMJ Phytotech (ASX: MMJ) at time of the merger with Phytotech Therapeutics in July 2015. Mr. Gedeon currently oversees the global expansion strategy of the MMJ grOup.

Mr. Wall is a corporate lawyer based in Perth, Western Australia and is a Partner at one of Australia's leading corporate and commercial law firms. He graduated from the University of Western Australia in 1998 with a Bachelor of Laws and Bachelor of Commerce (Finance) and subsequently completed a Masters of Applied Finance and Investment with FINSIA (formerly the Securities Institute of Australia). Mr. Wall has a wide range of experience in all forms corporate and commercial law, with a particular focus on mergers and acquisitions, IPOs, back door listings and equity capital markets transactions

Mr. Bednar is a Chartered Accountant with more than 18 years of direct professional experience in the financial and regulatory management of companies listed on the TSX, TSX-V, American Stock Exchange and ASX. He is currently the CFO and director of Canacol Energy Ltd., an oil and gas E&P company with an enterprise value of ~US$650M. Mr. Bednar has significant public company management experience having held CFO positions at several international oil and gas companies, most notably as founding CFO of Pan Orient Energy Corp. He previously sat on the board of directors of several internationally-focused E&P companies, including being the past Chairman of Gallic Energy Ltd. Mr. Bednar holds a Bachelor of Commerce degree from the University of Saskatchewan

Mr. Stewart holds a HonoursBachelor of Arts degree from Wilfred Laurier University in Waterloo Ontario in Political Science. As a Managing Principal at Navigator and founding Principal at Ensight, he has earned the trust and respect of leaders in corporations, government and not-for-profit organizations for his expertise as a senior strategic public affairs advisor.Mr. Stewart has demonstrated expertise in qualitative research, media relations, campaign planning and reputation management and recovery. He provides strategic planning, research and communications counsel to clients in a diverse variety of sectors, including aviation, energy, health care, and the emerging Canadian cannabis environment.

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Disclaimer


ALL CURRENCY AMOUNTS ARE IN CAD UNLESS STATED OTHERWISE.

Theinformationfoundherein,andanyothermaterialsprovidedbyHarvestOneCannabisInc.(the“Company”),areintendedsolely fordiscussionpurposesandarenotintendedas,anddonotconstitute,anoffertosellorasolicitationofanoffertobuyanysecurity,and shouldnotberelieduponbyyouinevaluatingthemeritsofinvestinginanysecurities.Thesematerialsarenotintendedfordistributionto,oruseby, anypersonorentityinanyjurisdictionorcountrywheresuchdistributionoruseiscontrarytolocallaworregulation.Thisinformationisconfidentialandshouldnotbedistributed,inwholeorinpart,beyondtherecipientanditsadvisors.

TheCompanybelievestheinformationcontainedinthisdocumenttobereliablebutmakesnowarrantyorrepresentation,whetherexpressorimplied,andassumesnolegalliabilityfortheaccuracy,completenessorusefulnessofanyinformationdisclosed.Anyestimates,investmentstrategies,andviewsexpressedinthisdocumentarebaseduponcurrentmarketconditionsand/ordataandinformationprovidedbyunaffiliatedthirdpartiesandissubjecttochangewithoutnotice.Thisdocumentmaycontain“forward-lookinginformation”and“forward-lookingstatements”withinthemeaningofapplicableCanadiansecuritieslegislation.Forward-lookinginformationincludes,butisnotlimitedto,statementsaboutstrategicplans,includingtheCompany'sabilitytoimplementitsbusinessdevelopmentstrategy.

Forward-lookingstatementsarenecessarilybaseduponanumberofestimatesandassumptionsthat,whileconsideredreasonablebymanagement,areinherentlysubjecttosignificantbusiness,economicandcompetitiveuncertaintiesandcontingencies.Forward-lookingstatementsinvolveknownandunknownrisks,uncertaintiesandotherfactorsthatmaycauseactualfinancialresults,performanceorachievementstobe materiallydifferentfromtheestimatedfutureresults,performanceorachievementsexpressedorimpliedbythoseforward-lookingstatementsandtheforward- lookingstatementsarenotguaranteesoffutureperformance.Allforward- lookinginformationcontainedhereinaregivenasofthedatehereofandarebasedupontheopinionsandestimatesofmanagementandinformationavailabletomanagementasatthedatehereof.Exceptasrequiredbylaw,theCompanydisclaimsanyobligationtoupdateorreviseanyforward-lookingstatements,whetherasaresultofnewinformation,eventsorotherwise.Readersarecautionednottoputunduerelianceontheseforward-lookingstatements.ThisnewsreleasecontainsinformationobtainedbytheCompanyfromthirdparties,includingbutnotlimitedtomarketdata.TheCompanybelievessuchinformationtobeaccuratebuthasnotindependentlyverifiedsuchinformation.Totheextentsuchinformationwasobtainedfromthirdpartysources,thereisariskthattheassumptionsmadeandconclusionsdrawnbytheCompanybasedonsuchrepresentationsarenotaccurate.

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