A European Medical Cannabis Investment Company Q2 2019 Safe - - PowerPoint PPT Presentation

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A European Medical Cannabis Investment Company Q2 2019 Safe - - PowerPoint PPT Presentation

INVESTOR PRESENTATION A European Medical Cannabis Investment Company Q2 2019 Safe Harbour This Presentation contains forward-looking information within the meaning of applicable Canadian securities legislation which are based upon the


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INVESTOR PRESENTATION

A European Medical Cannabis Investment Company

Q2 2019

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SLIDE 2

Safe Harbour

This Presentation contains “forward-looking information” within the meaning of applicable Canadian securities legislation which are based upon the Company’s current internal expectations, estimates, projections, assumptions and beliefs and views of future events. Forward-looking information can be identified by the use of forward-looking terminology such as “expect”, “likely”, “may”, “will”, “should”, “intend”, “anticipate”, “potential”, “proposed”, “estimate” and other similar words, including negative and grammatical variations thereof, or statements that certain events or conditions “may”, “would” or “will” happen, or by discussions of strategy. Forward-looking information includes estimates, plans, expectations, opinions, forecasts, projections, targets, guidance or other statements that are not statements of fact. Forward-looking information in this Presentation is based on our opinions, estimates and assumptions in light of our experience and perception of historical trends, current conditions and expected future developments, as well as other factors that we believe are appropriate and reasonable in the circumstances as at the date hereof. Despite a careful process to prepare and review the forward-looking information, there can be no assurance that the underlying opinions, estimates and assumptions will prove to be correct. In particular, we have made assumptions in respect of the build-out of the Bradford Facility; our competitive advantages; the expected legalization of cannabis use in Canada; the growth of our business and expansion into new markets; the development of new products and product formats for our cannabis-based pharmaceutical products; our ability to retain key personnel; our ability to continue investing in our infrastructure to support our growth; our ability to obtain and maintain financing on acceptable terms; the impact of competition; the changes and trends in the medical cannabis industry; and changes in laws, rules and regulations. Forward-looking information is necessarily based on a number of opinions, estimates and assumptions that we considered appropriate and reasonable as of the date hereof, are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual actions, events, results, performance or achievements to differ materially from what is projected in forward-looking information, including but not limited to the risks described in greater detail in the section entitled “Risk Factors” in our most recent annual information form available on SEDAR at www.sedar.com. Although we have attempted to identify important factors that could cause actual actions, events, results, performance or achievements to differ materially from those described in forward-looking information, there may be other factors not presently known to us or that we presently believe are not material that may cause actions, events, results, performance or achievements to differ from those anticipated, estimated or intended. Should one or more of these risks or uncertainties materialize or should assumptions underlying the forward-looking information prove incorrect, actual actions, events, results, performance or achievements may vary materially from those expressed and implied by such statements contained in this

  • Presentation. The purpose of forward-looking information is to provide the reader with a description of management’s expectations, and such statements may not be appropriate for any
  • ther purpose. Accordingly, readers should not place undue reliance on forward-looking information. Although the Company believes that the expectations reflected in statements

containing forward-looking information are reasonable, it can give no assurance that such expectations will prove to be correct. The Company disclaims any obligation to update any forward-looking information, whether as a result of new information or future events or results, except to the extent required by applicable securities laws.

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Chinook Tyee Industry Limited (The “Company” or “Chinook”) (TSXV: XCX) is a European investment holding company listed

  • n the TSX Venture Exchange whose primary

investment is AMP Alternative Medical Products GmbH, a German importer of EU-GMP medical cannabis. Chinook’s goal is to provide medical cannabis formulations and dose delivery systems for German patients.

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Capitalizing on the opportunity

  • German demand for medical cannabis will outstrip supply for the next five years (2023) due to the

high quality standards (EU-GMP) and complicated local regulations. German domestic production will not be available until 2021 at the earliest and will provide less than 10% of the overall demand.

  • As a first mover, Chinook can quickly establish market leadership in Germany due to its proven European

management team, unique import model and ability to meet supply shortages through multiple suppliers in different countries.

  • Chinook’s investment subsidiaries focused on medical cannabis:
  • AMP Germany purchases and imports EU-GMP medical cannabis into Germany predominantly from

licensed producers (“LP”) from Canada, the biggest cannabis producer in the world.

  • AMP Switzerland has begun to source EU-GMP medical cannabis grown in Switzerland for domestic

use and export to Germany when legalized.

  • Non-medical cannabis investments are held through a Maltese investment holding company and consist
  • f German real estate and public and private investments and will be sold or spun-off to Chinook

shareholders.

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Europe will be the largest cannabis market in the world

With a market of over 742 million people and total healthcare spend of €2.3-trillion, Europe is set to become the world's largest legal cannabis market over the next five years (2023). Throughout Europe, countries are beginning to legalizing medical cannabis. It is expected that all of Europe will have legalized medical cannabis by 2023. Germany is leading the way in Europe to expand medical programs and insurance coverage for medical cannabis.

743M

EU population

€2.3T

Total EU healthcare expenditure

€16.6T

EU GDP

€8.33

Average price per gram of

  • rec. cannabis in EU

C$12.60

Average price per gram of

  • rec. cannabis in EU
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Germany is the largest medical cannabis market in Europe

Germany has the largest economy in Europe and is the third largest cannabis market after Canada and the US. The projected market value

  • f medical cannabis in Germany will be €7.7B by 2028.

Germany has permitted the use of cannabis flowers for medicinal purposes since 2017. The medical cannabis programs and the state’s

  • bligation to cover medical prescriptions are still being developed but

will be among the most robust and set the standards for Europe. Patient demand has grown from 1,000 in 2017 to over 40,000 in 2018 forcing the German government to rely on imports.

INVESTOR PRESENTATION

GDP

3.1

Ruling Government Party

coalition- Social Democratic Party, christian Democratic, Union and christian social union

Party Stance on cannabis

In favour of medical legalisation but recreational is unlikely before 2022

Total Healthcare Expenditure

325 (€B)

Total Beauty & Wellbeing Expenditure

252 (€B)

Alcohol consumptions

13.4 (€B)

Prevalence of Tobacco Users

30.6 (€B)

Number of cannabis Users

3.3

Average Price Per Gram

  • f cannabis

9.4

Population

82.2 Market Overview

Total Pharmaceutical Spending

60.7 (€B)

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AMP Alternative Medical Products GmbH

Based in Erfurt, Germany, AMP Germany purchases EU-GMP medical cannabis from third-party suppliers from Canada and other countries, and arranges transportation, logistics and storage services for ultimate distribution through pharmaceutical distributors to pharmacists in Germany. All of AMP Germany’s suppliers are audited by German auditors to ensure they meet the stringent EU-GMP

  • standards. Meeting the EU-GMP standard is the biggest obstacle for licensed producer of cannabis (LP) trying

to export to Germany. As the majority of LP’s in Canada are not EU-GMP, AMP Germany assists LP’s in their audit and arranges EU-GMP certification in Germany to allow importation.

*

LPs enter into MOU supply agreement with AMP.

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AMP conducts EU-GMP gap analysis which identifies deficiencies.

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LPs make upgrades with oversight by AMP.

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AMP conducts EU-GMP audit.

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LPs enter into definitive supply agreement with AMP.

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AMP arranges German State Official EU-GMP certification.

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AMP secures required import and export licenses.

Canada

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AMP arranges secure transportation for narcotics.

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MMJ is stored at AMP’s licensed narcotic storage facility.

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Doctors prescribe MMJ medication to their patients.

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AMP’s wholesalers supply to pharmacies.

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Pharmacies fulfill MMJ prescription written by doctors.

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Patients’ prescription costs are reimbursed by government insurance.

Germany

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Alternative Medical Products Switzerland GmbH

Based in Zug, Switzerland, AMP Switzerland plans to enter into supply agreements with Swiss producers for EU-GMP medical cannabis for the Swiss market and eventually the German market. Switzerland is pivotal for the growth of the European cannabis industry from an investment and IP perspective as it is home to some of the biggest pharmaceutical companies in the world as well as a number of financial institutions. In Switzerland, legal cannabis products can contain up to 1% TCH, compared with the standard 0.2% seen across Europe.

GDP

577.7

Ruling Government Party Swiss Federal council Party Stance on cannabis

Open to gradually shifting towards legalisation

Total Healthcare Expenditure

70.7

Total Beauty & Wellbeing Expenditure

2.04

Alcohol consumptions

11.5

Prevalence of Tobacco Users

25.7

Number of cannabis Users

0.5

Average Price Per Gram of cannabis

11.1

Population

8.5 Market Overview

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Experienced Management Team with Proven Track Record

10  Experience in German business and government, specifically in pulp and paper, plastic, aluminum and biodiesel industries. Formerly, MD of IIC, investment agency for Eastern Germany, and TLW, German State of Thuringia economic development agency.

  • Dr. Stefan Feuerstein

Director & President Served on Canadian and US public company boards and as a senior executive. Formerly, with Gordon Capital and Bankers Trust.

  • Mr. Alex Blodgett

Director & CEO Experience in European and Swiss commercial, trade and merchant banking. Chairman of Taiga Atlas plc. a European investment company. Formerly, SVP of MFC Merchant Bank Ltd., a specialty trade and structured finance bank.

  • Mr. Claudio Morandi

Director Served on Canadian and US public company boards and as a senior executive. TSK to update

  • Mr. Ken MacLeod

Director

years experience in industrial and regulated German industries including pulp and paper, plastics, real estate, renewable energy and government economic development.

+20

years in European commercial, trade and merchant banking

+25

years in Canadian public company governance

+30

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Financial Snapshot and Ownership Structure

Frankfurt Stock Exchange Symbol

TBA

Share Price

$ 0.15

52 week high/low

$0.25 / $0.07

Shares on Issue

10,217,796

Market Capitalization

$1,532,669

NAV (unaudited, Sept 18)

$2,400,000

Insider Shareholdings

40%

Public Shareholdings

60%

TSX Venture Exchange Symbol

XCX

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A European medical cannabis investment company

Canadian Investors Phone: +236-833-1602 investor@amp-eu.com German and EU Investors Phone: +49-xxxxxxxxx investor@amp-eu.de amp-eu.com German Headquarters Charlottenstrasse 59 Berlin, 10117, Germany Canadian Headquarters 224 West 5th Avenue Vancouver, BC, V5Y 1J4, Canada AMP Alternative Medical Products GmbH Alfred-Hess-Straße 23 Erfurt 99094, Germany

Data Source: Prohibition Partners, The European Cannabis Report