CORPORATE PRESENTATION DECEMBER 2018 A Leading Global Cannabis - - PowerPoint PPT Presentation
OTCQX: BLEVF CNSX: BE CORPORATE PRESENTATION DECEMBER 2018 A Leading Global Cannabis Company Our Vision: Beleave will continue to be a leading, global, vertically-integrated cannabis company. We cultivate high-quality cannabis flower and
OTCQX: BLEVF CNSX: BE
2
December 2018 Beleave Inc. www.beleave.com
OTCQX: BLEVF CNSX: BE
3
Product Development Built on Research
Dedicated R&D Team focused on developing products to capitalize on concentrates and edibles when allowed in 2019 Proprietary extraction and processing techniques (patent pending) Collaboration with academic institutions
Production Capacity
Overall production capacity in excess
Overall footprint totalling 1,642,000 sq ft
Industry leading yields Facilities strategically located across Canada and abroad
Retail Expansion
Retail channel providing province-wide access to Saskatchewan market Pre-qualified by the Manitoba government for retail locations in Manitoba Capability to offer retail at flagship facility in London, Ontario with further franchise opportunities being explored
Sales and Distribution
Current provincial supply agreements with access to
Canadian population Strategy to capitalize on international opportunities with agreements to supply South American and European markets Diversified brands, able to serve large and niche markets alike
OTCQX: BLEVF CNSX: BE
Who We Are
December 2018 Beleave Inc. www.beleave.com
4
December 2018 Beleave Inc. www.beleave.com
OTCQX: BLEVF CNSX: BE
April 13 Beleave Receives Sales License from Health Canada May 10 Beleave Closes Acquisition of Medi- Green Cannabis Clinic Network June 21 Beleave Expands its Global Footprint into Colombia July 19 Beleave Accelerates its Recreational Distribution Strategy by Acquiring Seven Oaks August 7 Beleave Expands Medi-Green Network with the Announcement of Two New Stores September 6 Beleave Signs Agreement to Acquire 250,000 Square Feet of Greenhouse Space and 85 Acres of Land to Expand its Production Capabilities September 20 Beleave Announces 867,000 Square Feet
Growing Capacity in British Columbia September 26 Beleave Announces Increased Investment Agreement for up to $30 million with Alumina Partners August 30 Beleave Secures Prime Location for its First Saskatchewan Retail Store October 17 Recreational Cannabis is Legalized in Canada October 29 Beleave Expands into European Cannabis Market Summer/Fall 2019 London, Ontario Facility comes
square feet of indoor grow space Summer/Fall 2019 The first two of ten new BC facilities are completed, adding 173,400 square feet to growing capacity Summer/Fall 2019 Recreational market expands as commercially manufactured edibles, beverages, and concentrates are legalized
2018 and Beyond
November 15 Beleave Announces Development of Cannabis-Infused Powder and Sugar Products for the Recreational Market
5
December 2018 Beleave Inc. www.beleave.com
OTCQX: BLEVF CNSX: BE
In the News
March 25, 2017
“Hamilton is home to at least three major marijuana cultivators, among the 40 growers licensed by the federal government to grow pot for medicinal purposes.”
May 10, 2017
“Marijuana startups get new funding from 'streaming' deals.”
June 30, 2017
“With a year to go and amid predictions of a looming supply shortage, Health Canada is scrambling to add capacity once the legalization floodgates swing open.”
August 23, 2018
“Growth on the horizon for licensed pot producers.”
Beleave in the News Whether it’s a story on cannabis employers and entrepreneurs, or a live interview the morning recreational cannabis became legal in Canada, Beleave has had great newsworthy moments.
August 29, 2018
“B.C. government has begun to buy bud.”
August 31, 2018
“Are you experienced? Lloydminster marijuana retailer looking for 'qualified' workers.”
September 12, 2018
“Touting London's proximity to highways and its large labour pool, a pot producer has bought up a greenhouse
October 17, 2018
Beleave invites CP24 cameras into their Hamilton facility for a tour and learn more about their operations the morning
November 9, 2018
“Follow the Money Investors Group interviews Bojan Krasic, President & CFO of Beleave Inc.
Hamilton, Ontario
The first property in the Beleave portfolio, the Hamilton facility continues to be the hub of operations for extraction, packaging, and distribution.
GMP Certification:
Expected in December 2018
ISO Certification:
Anticipated in early 2019 Certification will facilitate international distribution
London, Ontario
Existing greenhouse to be retrofitted with 160,000 sq ft of space on an 85 acre property.
Phase 1
Starting Summer 2019 Indoor: 10,000 sq ft
Phase 2
Starting Fall 2019 Greenhouse: 150,000 sq ft
Phase 3
Starting Summer 2020 Outdoor: 600,000 sq ft
Total London Capacity
Indoor: 8,697 kg/yr Greenhouse: 18,000 kg/yr Outdoor: 18,000 kg/yr
British Columbia
Ten indoor growing facilities jointly- designed by Beleave and Kannavis Biotech Corp., on a 50/50 operating expenditure and revenue partnership.
Phase 1
Starting Fall 2019 Indoor: Abbotsford 86,700 sq ft Indoor: Chilliwack 86,700 sq ft
Phase 2
Starting Fall 2020 Indoor: Abbotsford 700,800 sq ft
Total BC Capacity
Indoor: 65,232 kg/yr
6
December 2018 Beleave Inc. www.beleave.com
OTCQX: BLEVF CNSX: BE
Facilities: Expansion Phases
7 Hamilton
SQ FT
SQ FT 6,000
SQ FT
December 2018 Beleave Inc. www.beleave.com
Open Now
Starting Summer 2019 Starting Summer 2020
Starting Fall 2019
OTCQX: BLEVF CNSX: BE
Funded Capacity: Breakdown
8
December 2018 Beleave Inc. www.beleave.com Funded Capacity (kg/yr) as at November 29, 2018
OTCQX: BLEVF CNSX: BE
Funded Capacity: Industry Comparison
0KG 150,000KG 300,000KG 450,000KG 600,000KG WEED ACB APH TGOD BE CRON OGI TRST FIRE HIP FLWR TER Yearly Funded Capacity
9
December 2018 Beleave Inc. www.beleave.com Company Total Funded Capacity (kg) Market Cap (in millions) Total Funded Footprint (sq ft) Oils / Extraction Company Clinics Company Retail Stores University / Research International Operations Revenues Aurora Cannabis 570,000 8,980 4,505,000 Yes No Yes Yes Yes Yes Canopy Growth ~540,000 11,950 5,600,000 Yes No Yes Yes Yes Yes Aphria 225,000 4,130
No No No Yes Yes TGOD 170,000 1,100 1,257,245 Yes No No No Yes No
Beleave 150,000 86 1,642,000 Yes Yes Yes Yes Yes Yes
Cronos Group 117,150 2,020 1,201,000 Yes Yes No Yes Yes Yes OrganiGram 110,000 776 480,000 Yes Yes No No Yes Yes CannTrust 100,000 914 1,110,000 Yes No No Yes Yes Yes Supreme 50,000 520 342,000 No No No No Yes Yes FSD Pharma
~3,800,000 No No No Yes Yes No Newstrike 25,000 278 320,000 No No Yes No No Yes Flowr 12,000 337 85,000 No No No Yes No No TerrAscend ~2000 805 ~18,000 Yes Yes No No No Yes
As at November 9, 2018
OTCQX: BLEVF CNSX: BE
Peer Comparison
10
$1,440,000 240,000g $14,486,400 2,414,400g $67,352,400 12,350,400g
2019
Total Revenues: $118,015,200 Total Grams: 21,919,200
2020
Total Revenues: $397,584,400 Total Grams: 78,273,600
$34,736,400 6,914,400g $1,440,000 240,000g $1,440,000 240,000g $67,352,400 12,350,400g $130,352,400 30,350,400g $67,352,400 12,350,400g $132,584,400 23,222,400g
Attributable to Beleave bottom line
5 10 15 20 25 30 35 20 40 60 80 100 120 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020
Grams
Millions
Revenue / Product Value
Millions * Based on current average wholesale price of $5.33 ** Revenues and yields are net of JV deductions
Revenue Grams
Revenue Forecast
December 2018 Beleave Inc. www.beleave.com
OTCQX: BLEVF CNSX: BE
Sales and Distribution: Canada
11
Planned Retail Location Recreational Online Sales
December 2018 Beleave Inc. www.beleave.com
OTCQX: BLEVF CNSX: BE Now
Countrywide 100% of Canada
Now
BC, MB, ON 55.1% of Canada
Spring 2019
+ AB, SK 69.8% of Canada
Summer 2019
+ QB, NS, NB 97.5% of Canada
2020
+ YT, NT, NU, NL 99.59% of Canada
Provincial population percentages based on 2016 Canadian Census
12
OTCQX: BLEVF CNSX: BE
Sales and Distribution: South America
December 2018 Beleave Inc. www.beleave.com
South American Expansion
In June 2018, Beleave expanded its global footprint into South America by acquiring a majority share in Procannmed; fully licensed for the cultivation, production, extraction and distribution of both THC and CBD medical cannabis in Colombia.
13
OTCQX: BLEVF CNSX: BE
Sales and Distribution: Europe
December 2018 Beleave Inc. www.beleave.com
European Expansion
In October 2018, Beleave expanded its global footprint again, this time to Europe, by partnering with Canymed to supply the German market with medical cannabis.
14
December 2018 Beleave Inc. www.beleave.com
OTCQX: BLEVF CNSX: BE
Market Overview
Conservative estimates from Health Canada predict that the size of the medical cannabis market will reach 450,000 patients in the next six years.
New opportunities are on the horizon for Canadian LPs to supply foreign medical markets as many South American and European nations lack domestic production capacity.
Recreational market in Canada is expected require cannabis production of over 900,000 kg annually to meet its estimated value of $8.7 billion in the next six years.
Many provinces will soon be, or already are, in the process of accepting applications for more point-of-sale locations, and retail distribution points are expected to grow substantially in 2019.
Impactful studies highlight the promise
neurological and degenerative diseases, and as a powerful weapon against the
Companies are committing R&D resources to develop a wide variety of new product
for edibles, concentrates, and beverage- based cannabis products in 2019.
Seven Oaks, Beleave Inc.’s recreational brand, has strong distribution and sales channels in place. Seven Oaks appeals to consumers, both conceptually and in the quality it invokes, attracting them to become repeat customers.
Beleave Kannabis, our medical label, is distributed nation-wide. In 2019, we are leveraging research and new technologies to create a suite of highly focused, proprietary medical products, with higher margins.
Medi-Green is a leading network of medical cannabis clinics with locations across Ontario and Quebec. Medi-Green currently has an active patient base of approximately 4,000, with average patient subscriptions in the range of 2 to 3 grams per day.
Our long-term objective is clear; we provide a consistent, reliable and curated product to suit the needs of our customers. Our suite of targeted brands enables us to build loyalty and enthusiasm across the Beleave family.
First recreational store will open in Saskatchewan in the coming months, allowing for province-wide online sales. Also, Beleave has pre-qualified for stores in Manitoba and will open a number locations in Ontario through its partnership with Rollins Group.
15
OTCQX: BLEVF CNSX: BE
Sales and Distribution: Our Brands
December 2018 Beleave Inc. www.beleave.com
x
Sales and Distribution: Our Products
16
December 2018 Beleave Inc. www.beleave.com
OTCQX: BLEVF CNSX: BE
CBD God Bud Gellatino Shishkaberry Ultra Sour Pink Kush San Fernando Valley Kush Blue Dream
BELEAVE KANNABIS SEVEN OAKS
We use nano-encapsulation of active ingredients to enhance bioavailability. The final product offered to consumers will be a flexible, food- grade ingredient that delivers an accurate dose of THC and CBD when ingested orally, with speedy delivery.
Low water solubility of extracts or oils makes incorporating them into food products or beverages difficult and can lead to low bioavailability, poor shelf-life, and unpredictable dosing;
addresses and solves these problems.
R&D being conducted at Beleave's Hamilton facility stems from a patent application submitted by Dr. Chen and
Manufacturing and extraction will be scaled-up to industrial levels and moved to Beleave's London, Ontario facility in the future.
17
OTCQX: BLEVF CNSX: BE
Product Development
December 2018 Beleave Inc. www.beleave.com
18
OTCQX: BLEVF CNSX: BE
Risk Mitigation
December 2018 Beleave Inc. www.beleave.com
Consistent product quality is attained through constant monitoring and testing to ensure plants are free from chemicals, heavy metals and microbiological contaminants.
Integrated distribution channels make Beleave stronger, providing direct access to the markets we serve.
Global political changes to medicinal and recreational cannabis laws allow Beleave to capitalize on markets outside of Canada.
Authentic brand offerings that are targeted to clearly defined demographics with multiple price-points to reach broad customer profiles and build brand loyalty.
an evolutionary biologist with a strong history studying weedy and invasive plant evolution and currently possesses a federally issued Industrial Hemp Research License. She has previously worked on industrial C. sativa production problems including heritability, maternal effects, phenotypic plasticity and extraction protocols.
McMaster University, a University Scholar, and the Associate Chair of Research for Surgery. He was won numerous awards for contributions to research and evidence-based orthopaedics including the Order of Ontario, and the Kappa Delta award. Michael Rogers joined the Department of Food Science in 2014 after holding faculty positions at Rutgers University and the University of Saskatchewan and as the Center Director for the Gastrointestinal Physiology Center at New Jersey’s Institute of Food, Nutrition and Health. He studies molecular gels, self-assembly of nano-fibers and nanotechnology, focusing on delivery of bio-actives and the biophysics of digestion. Michael is also the department’s graduate coordinator for the M.Sc. thesis and Ph.D. programs.
LESLEY CAMPBELL, PH.D.
RYERSON UNIVERSITY
MOHIT BHANDARI, PH.D.
MCMASTER UNIVERSITY
MICHAEL ROGERS, MSC & PH.D.
GUELPH UNIVERSITY
Insert Logo
19
December 2018 Beleave Inc. www.beleave.com
OTCQX: BLEVF CNSX: BE
Collaborative Partners
Meet the Team
20
December 2018 Beleave Inc. www.beleave.com
OTCQX: BLEVF CNSX: BE
CA, CPA, B.COMM, MBA Chairman, Chief Executive Officer, Director
Andrew offers significant retail, f i n a n c e a n d i n f o r m a t i o n technology experience from previous executive roles at Canadian Tire, Petro-Canada, and Heart and Stroke Foundation. He has led sizeable organizations and successfully executed on major
become a fully integrated
significant leadership position in the cannabis industry.
MIM President, Chief Financial Officer, Director
Bojan was responsible for leading strategy, business development, M&A transactions for Beleave. With well over a decade of career development, Bojan offers wide ranging financial expertise built with Thomas Weisel Partners Canada Inc., Stifel Nicolaus Canada Inc., and later serving as CEO of Terrella Capital and is a board member of public and private companies.
Chief Operational Officer, Director
Bill was an early mover in Canada’s cannabis sector and has contributed significantly to successfully navigating the regulatory framework to
sales license. Bill was the founder and owner of Cardinal Group Inc, specializing in evaluating opportunities and helping set strategic goals in business development.
Chief Science Officer, Director
Roger leads Beleave's science and innovation program and offers substantial experience in laboratory management (University of Toronto & Toronto University Health Network) and his PhD training in the area of neuroimmunology.
Chief Communications Officer Kevin brings extensive experience, with over 25 years in capital markets working within the financial services industry to provide
expansion, and direction of Beleave's communications and capital markets initiatives. As Beleave prepares for exciting announcements in the next year, Kevin will provide valuable strategic guidance to support the our growth and development.
SVP, Regulatory Affairs General Council Grant is a lawyer with over 14 years
providing significant organizational skills and corporate governance experience to draw on. His past positions have included senior roles at the Privy Council Office, the Attorney General’s Office (Ontario), a n d f o r U S g o v e r n m e n t i m p l e m e n t i n g p a r t n e r s i n
Founder of Seven Oaks, which was acquired by Beleave, and was instrumental in securing provincial supply agreements.
Director Mark is an experienced pharmaceutical executive offering more than 25 years with Fortune 100, NYSE listed, research-based pharmaceutical companies including Bristol-Myers Squibb, Merck and Pfizer.
Director Mark is the President of M2PM Limited and has more than thirty y e a rs o f ex p e r t i s e i n t h e construction and development industries, and ten years dedicated to executive services for the project design, construction and delivery for a full spectrum of publicly procured infrastructure projects, including complex construction projects, including the SkyDome, Metro Hall, Sunnybrook Hospital and Princess Margaret Hospital, to name a few.
Meet the Team
21
December 2018 Beleave Inc. www.beleave.com
OTCQX: BLEVF CNSX: BE
22
December 2018 Beleave Inc. www.beleave.com
Share Structure as of November 29, 2018 Amount Percentage Common Shares Outstanding 419,215,391 81% Reserved for Issuance* 98,607,047 19% Fully Diluted Shares 517,822,438 100%
Canadian Listing - CNSX: BE US Listing - OTCQX : BLEVF Cash Balance
(as at September 30, 2018)
$3,578,996
*Reserved for issuance includes stock options and warrants
OTCQX: BLEVF CNSX: BE
Capitalization
23
December 2018 Beleave Inc. www.beleave.com
OTCQX: BLEVF CNSX: BE
Key Takeaways
CHAIRMAN & CEO 416 669 1530 ANDREW@BELEAVE.COM
PRESIDENT & CFO 905 979 2937 BOJAN@BELEAVE.COM 24
December 2018 Beleave Inc. www.beleave.com
OTCQX: BLEVF CNSX: BE
Contact
CHIEF COMMUNICATIONS OFFICER 647 449 7352 KEVIN@BELEAVE.COM
This document includes forward-looking statements within the meaning of certain securities laws, including the “safe harbour” provisions of the
Securities Act (Ontario) and other provincial securities law in Canada. These forward-looking statements include, but are not limited to, statements with respect to our objectives, goals and strategies to achieve those objectives and goals, as well as statements with respect to our beliefs, plans,
“plan”, “anticipate”, “estimate”, “expect”, “intend”, “forecast”, “objective” and “continue” (or the negative thereof), and words and expressions of similar import, are intended to identify forward-looking statements. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, which give rise to the possibility that predictions, forecasts, projections and other forward-looking statements will not be achieved. Certain material factors or assumptions are applied in making forward-looking statements and actual results may differ materially from those expressed or implied in such statements. The Company strongly cautions readers not to place undue reliance on these statements, as a number of important factors, many of which are beyond our control, could cause the Company’s actual results to differ materially from the beliefs, plans, objectives, expectations, anticipations, estimates and intentions expressed in such forward-look- ing statements. These factors include, but are not limited to: general economic conditions; pending and proposed legislative or regulatory developments in Canada including the impact of changes in laws, regulations and the enforcement thereof; reliance on funding models in Canada; operational and infrastructure risks including possible equipment failure and performance of information technology systems; intensify- ing competition resulting from established competitors and new entrants in the businesses in which the Company operates; insurance coverage of sufficient scope to satisfy any liability claims; fluctuations in total patients and customers; technological change and obsolescence; loss of services of key senior management personnel; privacy laws; structural subordination of common shares; leverage and restrictive covenants; fluctuations in cash timing and amount of capital expenditures; tax-related risks; unpredictability and volatility of the price of the Company’s securities; dilution; and future sales of the Company’s securities. The foregoing list of important factors that may affect future results is not exhaustive. When reviewing the Company’s forward- looking statements, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Except as required by Canadian securities law, the Company does not undertake to update any forward-looking statements, whether written or oral, that may be made from time to time by the Company or on the Company’s behalf. Such statements speak only as of the date made. The forward-looking statements contained in this Document should not be relied upon as represent- ing the view of the Company or its management as of any date subsequent to the date of this Document. Neither the Company nor its management is under any obligation, and neither undertakes, to update any of this information at any particular time. Neither the Company nor its management assumes any obligation to update or revise forward looking statements should circumstances or estimates
employees, agents or representatives makes any representation or warranty as to the accuracy or completeness of the Document or any statements, estimates or projections, and none will assume any liability for any representations (express or implied) contained in, or for any omissions from, the Document, or for any other written or oral communications transmitted to prospective investors in the course of their evaluation of the Company and its business. An investor will only be entitled to rely on those representations and warranties contained in the definitive agreement or agreements which constitute the financing. Use of this Document is restricted to parties to whom the Company delivers the Document and the recipient and its representatives shall keep confidential all information contained herein or otherwise provided in connection with the proposed financing which is not already public or which is not subsequently made public, and will use the Document only for the purpose set forth above. In addition, each recipient will not copy, reproduce or distribute the Document in whole or in part to others, at any time, without the prior express written consent of the Company.
25
OTCQX: BLEVF CNSX: BE
Disclaimer
December 2018 Beleave Inc. www.beleave.com