Supreme Presentation 2014 August _ Sept
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Transcript of Supreme Presentation 2014 August _ Sept
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Corporate Presentation, August 2014
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DISCLAIMER AND CAUTIONARY STATEMENTS: Certain information regarding the company contained herein may constitute forward-looking statements within
the meaning of applicable securities laws and or be subject to change without notice. Forward-looking statements may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other
statements that are not statements of fact. Although the company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. For example, the capital cost of building the facility may exceed the amounts stated herein,
and the amount of time to commence producing our product may take longer than expected. The company cautions that actual performance will be affected by a number of factors, many of which are beyond the
companys control, and that future events and results may vary substantially from what the company currently foresees. The companys forward-looking statements are expressly qualified in their entirety by this cautionary statement. Furthermore, statements regarding the amount of share purchase warrants, shares, stock options are all subject to further change without notice. This is not a solicitation to purchase securities in our common stock or at all. Readers are cautioned to review our securities filings at www.sedar.com further details of the
company prior to making any decision in relation to a possible investment of the company.
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With approvals in place, we believe we are positioned to be on the leading edge of providing a safe,
regulated, medical alternative to average Canadians, as prescribed by their doctors.
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Greenhouse-grown medicinal marijuana benefits from the effects of natural sunlight, guaranteeing it to be of the highest quality.
Our medical marijuana is grown in a revitalized 342,000 sq. ft. greenhouse facility in
Kincardine, Ontario, bringing numerous welcome jobs into the community.
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Medical Marijuana is a natural product offering beneficial therapeutic treatment for a number of indications as a result of two active components:
THC (Tetrahydrocannabinol) which is associated with management of pain, nausea and lack of appetite in AIDS and cancer patients; and symptoms
of Multiple Sclerosis and Glaucoma.
CBD (Cannabidiol) which is associated with management of neurological disorders such as epilepsy, seizures; movement disorders such as
Parkinsons, Huntingdons, ALS, Alzheimer's and MS.
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Commercial production and distribution of marijuana for medical purposes Strict licensing and approval process to regulate quantity and quality of
production; record-keeping procedures; security of facilities and key personnel;
Only 13 licenses and approx. 20 pre-approvals have been issued to date out of hundreds of applications (Supreme is the Largest pre-approved license with 24,000,000 grams per year)
New federal regulations introduced the MMPR (Marijuana for Medical Purposes Regulations), with the aim of
reducing abuse and improving compliance within the industry.
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The average patient consumes 1-3 grams of medical marijuana per day, with a cost of $7-$12 per gram. Health Canada statistics:
26,000 licensed medical marijuana patients in 2013
Predicts 450,000 by 2024 Growth estimate increase of 1700% over next 10 years Estimated $175m market presently Market projected to rise to $1.3 billion by 2024
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342,000 sq. ft. (larger than 6 football fields) Location: Kincardine, Ontario Upwards of 100 new jobs created Pre-approved Jan 2014 by Health Canada Purchased in May 2014 for $4.5m Independently appraised $20.1m (value in use basis) Converted from government to private
sector state of the art marijuana grow facility
The reopening of Canadas largest marijuana greenhouse has been lauded by local community and media alike.
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Purchase (not lease) of this massive greenhouse facility affords a lower cost of production, superior product, setting us ahead of our competitors
Economies of scale Volumes of natural light available saves on power
consumption while producing superior natural product (vs. all artificial light)
Community support and work force Well positioned as wholesale producer
Supreme has strengths and competitive advantages over its competition:
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Supremes Kincardine greenhouse can offer a wider variety of products
We will be rolling out various branding and marketing efforts to promote our products
High quality product - affordable pricing ($2.00 - $8.00; $4.90 average)
We plan to sell our products to various niche markets: Wholesale and contract growing to distributors, hospitals, other LPs etc. Direct to consumer (website, call center, outlets) Export to countries who are current importers of medical marijuana
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Comprehensive plan submitted to Health Canada
Pre-build license approval received for: Quantity produced up to
24,000 Kg per year Security checks on key personnel Sale, possession, cultivation Export permits acquired
Facility plan design Security systems plans,
pending installation License subject to facility
build out and final inspection
Phase 0b complete final approval to go in full production by Health Canada
Production growing and harvesting to begin, further states brought online as required
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Sept 2013
Jan 2014
Feb 2015
Q1 2015
Nov 2014 Phase 0a complete security cleared and license to grow granted
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Total Current Raise: $5M
Current Capital structure:
59,000,000 shares outstanding 2,506,000 warrants outstanding 2,800,000 options outstanding Company long-term debt:
Mortgage payable $3.5m on facility purchase
Future financing requirements:
$3-4M will be required for the completion of remainder of the facility in 2015 after Phase 0 complete
Working capital:
Required $5M for 2014 Facility upgrades Phase 0
16,000 sq. ft. grow space, plus 40,000 sq. ft. office /warehouse 6,500 sq. ft. R&D area
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Pre-MMPR Canadian Stock Comps: Company Interests Market Cap
Abba%s Bioceu%cals: CSE: ATT Interest in 2 MMAR Growers, applying for MMPR.
$31M
Anor Growers: CSE : AFI Has made 1 MMPR Application and diversifying into food.
$30M
Cannabis Technologies (CSE: CAN) Pharma play with no products yet & currently looking to take over an MMPR license.
$14M
Creative Edge Nutrition (OTC: FITX) One MMPR application site in Lakeshore Ont., no license
$185M
Medican (OTC: MDCN) One MMPR applica%on site $54M
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Company Interests Market Cap Bedrocan Canada
Licensed MMPR for Went Public August 25th, 2014
$85M
Mettrum Licenced MMPR for currently going through an RTO
TBD Expected $90-100M
Organigram Licensed MMPR for begins trading August 25th, nanced @ $60M valua%on
$110M
Pharmacan First Capital pool invested in 3 MMPR Co.s TBD Expected to be over $100M
Tweed First Public MMPR for up to 16,000 kgs per year - was financed (GMP $15M bought-deal) at over
$128mm earlier this year.
$120M
SUPREME Largest Pre-Approved license for 24,000 kgs per annum on a wholly owned 342,000 sq. J. Facility
$19M
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David Stadnyk, President & CEO 15 years + public company experience, entrepreneur, founder of numerous successful pharmaceuticals companies (private and public); former owner of Vancouver Whitecaps, a radio station; Chairman of the Stadnyk Foundation. David sets the strategic direction for the Company and builds a motivated team for future success.
Sarah Herburger, VP, A-RPIC Sarah is VP of patient relationships, she looks after direct to consumer sales and shipping. She is working on patient acquisition and strategy.
Alan Robertson, Security Consultant 32 years of policing experience as Detective, Regional Supervisor etc; Responsible for assisting in the design and implementation of physical security measures, protocols and staffing; liaison with local law enforcement. George Tsafalas, Director and key consultant 15 years public company experience as a senior executive, entrepreneurial, involved in many start-ups.
Dr. Kenneth Adams, D.D.S. M.D. is our Medical Director and Chief of quality control.
Peter M. Herburger, SPIC/RPIC Senior Person in Charge of production of medical marijuana, is a founder and has been actively involved in this project for nearly three years. Peter is a career businessman with success in a variety of industries incl hospitality, tourism, natural and alternative medicine.
John Fowler, Director of Kincardine Operations John is an Ontario attorney; involved in medical marijuana for nearly ten years including production and sales and legal challenges. In 2013 John assisted a court case on behalf of patient rights to obtain medical marihuana. John is responsible for various aspects of company management and planning.
Med-man, Our favorite Grower Med-man is Canadas most awarded producer of medical marijuana and medical marijuana seeds. Med-man will consult with us to assist in strain selection, propagation, production techniques, harvesting procedure and post-harvesting protocols.
Aaron Ruimy, Head of IT and Automation Responsible for designing and implementing IT including electronic security, electronic operating procedures, automated production systems and ensuring these systems integrate seamlessly.
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Our short-term objectives are focused on getting our product to market:
Acquire capital for final build out Complete facility improvements Phase 0 Obtain final approvals from Health
Canada Develop sales channels/implement
marketing plans Commence growing product
Obtain stable sales & distribution contracts
Complete build-out for further phases, Kincardine
Consider opening further facilities Develop brand loyalty
Longer-term well focus on stabilization and growth:
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Flagship Kincardine facility expected to be the most cost competitive in Canada
Received pre-build approval for the largest cultivation facility in Canada under the MMPR*
Greenhouse provides power savings over indoor growing using artificial light alone
Kincardine Grow footprint of 342,000 sq. ft. + administration and office areas
Seed-to-Sale digital tracking and automation to reduce production costs, increase compliance and knowledge generation
Largest approved production of 24,000 Kg per year of dried Marijuana
Kincardine greenhouse capable of producing est. $90m revenue per year alone at full production
Our product will be high quality (organic, natural light grown)
We are ahead of the curve with only a limited number of pre-built licenses issued and expect final licensing approval by the end of 2014
Best value in the sector Two marijuana facilities pending
license approval
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Raise: $5,000,000 at $0.25 A total of 20,000,000 units Each unit includes one common share of
the company and a half warrant to purchase a common share @ $.50 exercisable for 12 months after the closing date
Use of Proceeds: $4.5M to get the facility to MMPR license stage $500,000 for corporate operating costs
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David Stadnyk, CEO Office 604 674 2191
John Fowler, Director Kincardine Operations Cell 647 525 5463
Supreme Head Office #430 580 Hornby Street Vancouver, BC, Canada V6C 3B6
Supreme Kincardine Facility
148 Farrell Drive, Community of Bruce Energy Park, Kincardine, County of Bruce, Ontario
www.supreme.ca email: [email protected] CSE symbol: C.SL
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