CORPORATE PRESENTATION CANNABIS MANUFACTURING DISTRIBUTION - - PowerPoint PPT Presentation

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CORPORATE PRESENTATION CANNABIS MANUFACTURING DISTRIBUTION - - PowerPoint PPT Presentation

CORPORATE PRESENTATION CANNABIS MANUFACTURING DISTRIBUTION STRATEGIC BRANDS ACQUISITIONS CSE:EAT OTCQB:SPLIF Q2 2019 FORWARD LOOKING STATEMENTS AND RISK DISCLOSURE The information contained in this presentation does not purport to be


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SLIDE 1

Q2 2019

CORPORATE PRESENTATION

CSE:EAT OTCQB:SPLIF

CANNABIS BRANDS MANUFACTURING DISTRIBUTION STRATEGIC ACQUISITIONS

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FORWARD LOOKING STATEMENTS AND RISK DISCLOSURE

The information contained in this presentation does not purport to be all-inclusive or to contain all information that prospective investors may require. Prospective investors are encouraged to conduct their own analysis and reviews of the Company and of the information contained in this presentation. Prospective investors should consult their own professional advisors to assess their potential investment in the Company. The remarks contained in this presentation ("Presentation") may contain forward- looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995) relating to the Company's

  • perations or to its business environment. These statements are identified by the use of forward-looking terminology such as

"believes," "plans," "intend," "scheduled," "potential," "continue," "estimates," "hopes," "goal," "objective," "expects," "may," "will," "should" or "anticipates" or the negative thereof or other variations thereon or comparable terminology, or by discussions of strategy that involve risks and uncertainties. The safe harbor provisions of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended, apply to forward-looking statements made by the

  • Company. The reader is cautioned that no statements contained in Presentation should be construed as a guarantee or

assurance of future performance or results. These forward-looking statements involve risks and uncertainties, including those identified within this Presentation. The actual results that the Company achieves may differ materially from any forward-looking statements due to such risks and uncertainties. These forward-looking statements are based on current expectations, and the Company assumes no obligation to update this information. Readers are urged to carefully review and consider the various disclosures made by the Company in it's reports filed on SEDAR that attempt to advise interested parties of the risks and factors that may affect the Company's business. The information in this current report shall not be incorporated by reference into any registration statement pursuant to the Securities Act of 1933, as amended. The furnishing of the information in this Presentation is not intended to, and does not, constitute a representation that such furnishing is required by Regulation FD or that the information this current report contains is material investor information that is not otherwise publicly available. This summary has been provided to the recipient for information purposes only and no representation or warranty, express or implied, is made as to the completeness or accuracy of the information contained herein. The contents are not to be reproduced or distributed to the public or press. The information contained herein is not guaranteed as to its accuracy or completeness. Throughout this presentation various logos and trademarks will be used. These trademarks and logos are the property of their respective owners. An investment in the Company's securities should be considered highly speculative. There is no guarantee that an investment in the Company will earn any positive return in the short or long term. An investment in the Company is appropriate only for investors who have the capacity to absorb a loss of some or all of their investment. There are certain risk factors associated with an investment in the Company's securities.

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WHO WE ARE

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500+ 9+ 8 $17.7M

Retail Clients Across California In-House Brands Facilities Across 5 U.S. States & Canada Trailing 12 Month Sales1

1 Figures in CAD $M

Nutritional High is a leading multi-state cannabis company, leveraging best- in-class distribution infrastructure & manufacturing expertise to develop leading-edge consumer products & brands

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CURRENT GEOGRAPHIC FOOTPRINT

Colorado: Partnership with Palo Verde, an LP with state-of-the art- extraction and manufacturing capabilities for cannabis concentrates and edibles. Rapidly increasing footprint. California: Acquired and expanded Calyx Brands, a leading statewide wholesale distributor. Owner of FLI Labs NorCal, a license applicant with extraction and manufacturing facilities. Oregon: Acquired La Pine facility and have since completed buildout and commenced sales. Will be the exclusive producer of Marley Natural™ products in the state. Washington: Will be the exclusive producer of Marley Natural™ products in the state, sublicensing manufacturing to a local licensed LP.

Nutritional High is establishing a footprint into the following jurisdictions that spent a combined $8 billion on legal cannabis products in 2018.

4 Nevada: Acquiring a 75% interest in Green Therapeutics, a Las Vegas based producer and processor with established brands. Canada: JV with Abba Medix Group to manufacture cannabis extracts and infused products in Canada and internationally, as permitted by regulations.

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CORPORATE STRATEGY

Nutritional High is focused on being the leading international house of cannabis brands.

Watch our corporate video at nutritionalhigh.com

Own the Pipeline & Capture Shelf Space

By controlling distribution channels, we can efficiently and effectively capture shelf space and scale our portfolio of in-house branded

  • products. Our distribution network currently

reaches into 500+ retail outlets.

Turn Promising Products into Strong Global Consumer Brands

Leverage our expansive distribution network to identify what products and brands are poised to succeed. Current core focus is on high quality extracts and edibles with consistent dosing.

Best-in-Class Production & Brand Development

Own a curated portfolio of novel consumer products and deploy superior production know-how, marketing strategies & branding expertise to unsure our products penetrate the market and develop into successful brands.

Transport Proven Brands into New Markets

Expand into new geographies with favorable market dynamics and deploy a curated portfolio of high-performance brands. 5

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STRATEGIC BUSINESS UNITS OVERVIEW

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PRODUCTION & EXTRACTION DISTRIBUTION BRAND PORTFOLIO

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CALYX BRANDS Leading Footprint: #1 distributor of edibles in California: the fastest growing category in the largest cannabis market in the world. Retailers & Brands: 500+ licensed retailers served. 14 market leading brands in edibles, concentrates and flower, including an exclusive relationship with the world’s #1 edible. Dynamic Salesforce: 14 dedicated Calyx salespeople in the field, focused

  • n sales velocity and expanding brand footprint.

CALIFORNIA: THE TASTEMAKER STATE LEADING DISTRIBUTION FOOTPRINT WITH CALYX

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SLIDE 8

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CALIFORNIA: SCALABLE PLATFORM FOR BRANDED PRODUCTS

DISTRIBUTION SUPERIOR CONSUMER INSIGHT BRANDED PRODUCTS DEVELOPING LEADING-EDGE BRANDS & PRODUCTS

In-house & Leading 3rd Party Brands California’s Top Retailers First Mover Consumer Data Curated Product Selection

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SLIDE 9

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  • Award winning extracts and premium flower brand in the

burgeoning Nevada market

  • Supplier to 34 dispensaries in Nevada (52% penetration

across adult-use dispensaries state-wide)

  • Existing 8,000 ft2 cultivation & production facility and a

5,400 ft2 processing lab

  • Material revenue generation: 2019 projected revenue of

US$5.8M

  • Awarded conditional recreational dispensary and

distribution licenses

  • Complimentary management team: Highly experienced

management team with complementary skill sets and expertise

PORTFOLIO OF ESTABLISHED BRANDS TO BE EXPORTED

NEVADA: HIGH GROWTH LIFESTYLE MARKET ACQUIRING ESTABLISHED PRODUCER/PROCESSOR

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  • 11,000 sq. ft. state-of-the-art extraction and

manufacturing facility to produce cannabis concentrates and edible products

  • Our oil advantage is unique in the industry utilizing

both the short-path distillation techniques and VTA scale machinery to ensure a potent, clean, consistent product

  • Concentrate product sales commenced in April 2017

and edible products were launched in November 2017

  • Trending run rate of $2M in 2019
  • Currently producing 45 SKUs
  • Products currently sold in over 50 dispensaries

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Palo Verde LLC Arm’s-length private Colorado company, which holds license to manufacture marijuana-infused products at NH’s facility in Pueblo, Colorado.

COLORADO: ROCKY MOUNTAIN HIGH MANUFACTURING AND PRODUCTION FACILITY

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OREGON & WASHINGTON: BRAND PROVING GROUNDS PRODUCTION CAPACITY BOLSTERS BRAND STRATEGY

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WASHINGTON OREGON

EXCLUSIVE LICENSE TO PRODUCE MARLEY NATURAL PRODUCTS IN OR & WA

  • 5,000 sq. ft. fully licensed

state-of-the-art extraction and manufacturing facility to produce cannabis concentrates and edible products in La Pine, OR

  • Leveraging proprietary

extraction expertise to drive superior efficiencies and margins

  • Marley Natural products

to be launched in the near future

  • Extraction and

manufacturing facility in Bainbridge, WA

  • Currently pending

regulatory approval for license transfer

  • Current brand portfolio

includes:

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GROWTH CATALYSTS: SCALING OUR EXPERTISE NEW MARKET LAUNCHES

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CANADA

  • JV in place with ACMPR LP Canada House Wellness (CSE: CHV) focused on

leveraging our extraction/branded product expertise across Canada and internationally

NEVADA

  • Developing distribution footprint through Green Therapeutics’ license,

utilizing our California expertise to establish strategic positioning between brands and premier retailers

USA

  • Actively assessing organic & M&A growth opportunities with leading brands,

distributors and producers, targeting recreational, lifestyle-focused companies

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SLIDE 13

David Posner Co-Chair of the Board and Director

  • Brought “Hempen Gold,” the first hemp-infused beer to Canada
  • Imported and created marketing and branding initiatives for

various other alcoholic products in Canada

  • Acquisitions Manager for Stonegate Properties Inc. where he

managed real estate and brokered deals in Canada and US Dakota Sullivan CEO, Calyx Brands Inc.

  • Co-founded The Cannabis Rep Network in 2015 then acquired

distributor California Holistic Transfer to create Calyx Brands

  • 15+ years as a senior tech executive, serving as SVP/GM for

two mobile ad tech providers

  • Co-founder/CMO of Blue Lithium, pioneering behavioral ad

network sold to Yahoo for $300M

  • Ran flobal sales and marketing for Adap.tv, sold to AOL, and

LookSmart, one of the first search engines

  • BA in Business/English from University of California, Berkeley,

graduate work at Columbia and School of Visual Arts, NYC Tom Siciliano President

  • Senior executive with a distinguished career and an
  • utstanding record of revenue and profit growth in Fortune

500, Private Equity and startup companies

  • Former President and Chief Financial Officer of Canna Security

America where he turned the company into the 2nd largest security company within the cannabis industry

  • Holds a bachelor’s degree in business administration from

Columbus University and a leadership excellence certificate from Penn State Jeremy Pace SVP, Operations

  • Started his career with the US Department Of State as a

Management Officer on rotation across a number of key strategic U.S Embassy locations in the Middle East and Asia

  • Previously a general manager with Shift Refinery — a Denver-

based extraction company where he directed single-site cannabis concentrate manufacturing operation through a team

  • f managers and supervisors across three distinct work units

(production, operations and sales

  • Holds a bachelor degree in Mass Communications from

Northwestern University

LEADERSHIP TEAM

Adam K. Szweras Co- Chair of the Board, Corporate Secretary and Director

  • Partner with the law firm Fogler, Rubinoff LLP
  • Chairman and Founder of Foundation Markets Inc., a Toronto-based

investment bank and Exempt Market Dealer

  • Director at Aurora Cannabis Inc., Quinsam Capital, Water Ways, and

incoming Director at Harborside Inc.

  • Practiced securities law since 1997

Jim Frazier Chief Executive Officer

  • Over 23 years of experience in the food industry and a proven track

record of developing and implementing branded and private label programs and driving profits

  • Owns and operates a successful Florida-based candy and chocolate

business which has been a well-known manufacturer of confectioneries for over 40 years

  • Managed the expansion of his plant facilities and significantly expanded

sales and developed new customer bases across all retail channels Billy Morrison Chief Technology Officer and Director

  • Founded Peloton Pharmaceuticals, where he designed, developed, and

deployed nearly autonomous grow system that mitigates labor and reduces cost

  • Experience in operating marijuana companies, founding The Union

Collective, a successful delivery dispensary; Capstone Analytical, one of the first Bay Area thin layer chromatography testing facilities; and Temez Extracts

  • Pioneered a patented water conserving technology that eliminates

water change outs Michael DiNapoli Chief Financial Officer

  • Seasoned senior executive with over 20 years experience managing all

aspects of operations, finance and long term strategic planning for a number of large- to medium-size companies

  • Last 10 years focus in the wine and spirits industry as CFO/COO (Clos Du

Val Winery, Bounty Hunter Wine and Spirits, Cameron Hughes, Coppola Wines

  • Worked six years in public accounting (Deloitte NYC) for audit clients in

the financial services industry

  • Graduated from Pace University and is a Certified Public Accountant

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Undervalued: A Comparison with the Field

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Company Market Info TTM Financials Share Price Market Cap Enterprise Value Rev TTM EV/Rev TTM

Nutritional High1 $0.26 $85.1 $97.0 $17.7 5.5x

Origin House $12.10 $754.4 $692.6 $11.9 58.2x SLANG Worldwide $2.67 $680.3 $657.6 $4.8 137.0x Cannabis One Holdings $4.56 $471.4 $462.7 $2.4 192.8x Cannex Capital Holdings $1.74 $389.8 $353.2 $16.1 21.9x Dixie Brands1 $1.17 $161.8 $130.8 $6.6 19.8x Halo Labs $0.76 $155.1 $138.9 $14.7 9.4x DionyMed Brands $2.60 $143.8 $125.5

  • Ionic Brands

$0.74 $92.5 $83.9 $3.2 26.2x Golden Leaf Holdings $0.13 $77.9 $82.7 $21.6 3.8x C21 Investments $1.64 $75.7 $70.7 $0.5 141.4x The Tinley Beverage Company $0.84 $75.4 $69.1 Yield Growth Corp. $0.71 $64.8 $62.8 $3.1 20.3x Next Green Wave Holdings $0.49 $59.7 $49.1

  • Phivida Holdings

$0.89 $57.1 $45.3 $0.1 452.6x Wildflower Brands $0.73 $49.3 $58.5 $3.0 19.5x Chemistree Technology $0.73 $41.3 $33.4 CENTR Brands $0.65 $38.8 $35.0

  • High Hampton Holdings

$0.35 $36.4 $27.2 $0.1 272.3x Ignite International Brands $1.72 $35.6 $30.2

  • Gabriella's Kitchen

$0.38 $34.4 $33.9 $1.5 22.6x Weekend Unlimited1 $0.10 $24.7 $20.9

  • International Cannabrands

$0.10 $21.2 $20.7 $0.2 103.7x CannAmerica Brands $0.19 $9.4 $12.7 $0.3 42.3x

Median $64.8 $62.8 $3.1 34.2x Mean $154.4 $143.4 $5.6 96.5x

Financial Data/Projections as per Capital IQ - Apr 23, 2019 All Figures in CAD $M (except per share figures)

1 Management Projections

EV / TTM Revenue vs. Peers

3.8x 5.5x1 9.4x 19.5x 19.8x1 20.3x 21.9x 21.9x 22.6x 26.2x 42.3x 58.2x 103.7x Golden Leaf Holdings Nutritional High Halo Labs Wildflower Brands Dixie Brands Yield Growth Corp. Cannex Capital Holdings Median Gabriella's Kitchen Ionic Brands CannAmerica Brands Origin House International Cannabrands

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COMPANY SNAPSHOT

COMPANY SNAPSHOT

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Exchange/Symbol Canadian Securities Exchange EAT OTCQB SPLIF Frankfurt 2NU Capitalization Info as of April 25, 2019 Basic Shares Out. 317,011,616 Options (CAD $0.07 - $0.51) 21,062,517 Warrants (CAD $0.06 - $0.80) 28,237,565 Convertible Debt $11.8M Share Price $0.26 Fully Diluted Market Cap1 $85.1M

1 Assumes Treasury Method for in-the-money dilutive securities

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David Posner Co-Chairman of the Board and Director T: (647) 985-6727 E: dposner@nutritionalhigh.com Adam Szweras Co-Chairman of the Board and Director, Corporate Secretary T: (416) 564-5926 E: aszweras@nutritionalhigh.com Jim Frazier Chief Executive Officer T: (321) 576-7171 E: jfrazier@nutritionalhigh.com

CONTACT US