CORPORATE PRESENTATION CANNABI BIS S MANUFAC FACTU TURIN ING - - PowerPoint PPT Presentation

September 2019

CORPORATE PRESENTATION

CSE:EAT OTCQB:SPLIF FRANKFURT: 2NU CANNABI BIS S BRANDS DS MANUFAC FACTU TURIN ING DISTR TRIB IBUTIO TION STRATEGIC ATEGIC ACQUI QUISITI ITION ONS

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 operations 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

• n 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

• r 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.

2

WHO WE ARE

600+ 6+ 8 $22.1M

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

3

CURRENT GEOGRAPHIC FOOTPRINT

Colorado ado: Partnership with Palo Verde, an LP with state-of-the art- extraction and manufacturing capabilities for cannabis concentrates and edibles. Rapidly increasing footprint Cali lifor

• rni

nia: Acquired and expanded Calyx Brands, a leading statewide wholesale distributor. Owner of FLI Labs NorCal, a license applicant with extraction and manufacturing facilities Oregon: n: Acquired La Pine facility and have since completed buildout and commenced sales. Will be the exclusive producer of Marley Natural™ products in the state Washi hing ngto ton: n: Will be the exclusive producer of Marley Natural™ products in the state, sublicensing manufacturing to a local licensed LP

Nutrit trition ional l Hig igh is is esta tablish blishing ing a footpr

• tprint

int in into

• the follo

llowing wing jurisdic isdictio tions ns that t spent ent a combine mbined d $8 billio illion on le legal l canna nabis bis product

• ducts

s in 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

CORPORATE STRATEGY

Nutritiona nal High is focused ed on being the leading ng internat ational

• nal house of cannabis

bis brands. s.

5

Own n the Pip ipelin line e & Captu pture re Shelf lf Space ace

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 600+ retail outlets

Turn n Promi mising sing Produc ducts ts in into Strong

• ng Glo

lobal al Cons nsume umer r Brands nds

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 st-in in-Cla lass s Product

• duction

ion & Brand nd Developm velopment ent

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

Trans nsport port Proven n Brands nds in into New w Mark rkets ets

Expand into new geographies with favorable market dynamics and deploy a curated portfolio of high-performance brands Watch our corporate video at nutritionalhigh.com

STRATEGIC BUSINESS UNITS OVERVIEW

PRODUC ODUCTIO TION & EXTRAC RACTIO TION DISTR TRIB IBUTIO TION BRAND D PORTFO TFOLIO LIO

6

CALYX YX BRANDS Leadin ing Footpr tprin int: t:

#1 di distri stributor

• f
• f

edibles in California: the fastest growing category in the largest cannabis market in the world

Retai ailer lers & Brands nds: :

600 600+ licensed retailers served. 13 13 market leading brands in edibles, concentrates and flower, including the world’s #1 edible brand

Dynamic ic Sales lesforc

• rce:

:

14 14+ dedicated Calyx salespeople in the field, focused on sales velocity and expanding brand footprint

CALIFORNIA: THE TASTEMAKER STATE LEADING DISTRIBUTION FOOTPRINT WITH CALYX

DISTRIBUTION SUPERIOR CONSUMER INSIGHT

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

7

CALYX: DEMONSTRATED REVENUE ACCELERATION

5

Qua uarters ters of consecut secutive revenu venue grow

• wth

th post st acqu quisi sitio tion

7x

Increa ease se over er Q2 2018; last st qua uarter ter pre e acqu cquisi sition

• n

$21.7M

Trailing ng Twel elve ve Month th Reven venue ue

$24.6M

Q3 2019 Ann nnua ualized ed Run n Rate te

125%

Q3 2019 Y.O.Y .Y grow

• wth

th

8

GROWTH TRJAECTORY: DISTRIBUTION

9

Core Fulfilment Services

• Transportation
• Warehousing
• Delivery and Order

Management

• Cash Collection

from Retailers

Optional Fulfilment Services

• Title Possession
• Working Capital /AR

Factoring Enhanced Services

• Field Sales and Inside

Sales

• Stock Out Management
• Retail Merchandizing

and Brand Ambassadors

• Raw Material Buyers

Club

• Data and Analytics

Dis isruptive tive and scala lable le dis istribu ibutio ion n model l attractin ting crit itic ical l mass s of major

• r Calif

lifornia nia Brands

This flexible offering allows us to navigate the constantly evolving market more effectively and makes us the best best

• p
• ption
• n

for for

• u
• ur

bra rand partn rtners ers at at every ery sta tage ge of

• f thei

eir grow

• wth

th cycl cle Calyx is receiving more interest from brands than ever before, and expects to do double its ts bra rand nd portf rtfol

• lio by

by end of

• f 2019

2019 By October 2019,

• nboarding

a curated selection of 8 to to 10 10 established and up-and- coming brands in the fastest growing categories: edibles, extracts, and vaporizers Already one of California’s premier distributors, the new model positions Calyx to maintain its rapid growth trajectory and be a dom dominant and profi

• fitable

ble player er for the the long ng term

• Award winning concentrate and premium flower brand in the burgeoning

Nevada market

• Sales footprint of 34 dispensaries in Nevada (52% penetration across adult-use

dispensaries state-wide)

• Material revenue generation: annualized run rate of CAD$4.8M. Res

Resul ults ts to to be be consoli nsolida dated ed in in NHI Fin inanci cials ls from date of

• f clo

losi sing

• Complimentary management team: Highly experienced management team with

skill sets and expertise, complementary to other NHI infrastructure

NEVADA: HIGH GROWTH LIFESTYLE MARKET ACQUIRING ESTABLISHED PRODUCER/PROCESSOR

LICENSE CENSE

▪ 1 Cultivation and 1 Production licenses in Clark County ▪ 1 Retail license (conditional) in Lake Tahoe, Douglas County ▪ 1 Distribution license (conditional) – statewide Curren ent t State te : Fully operational extraction, manufacturing and cultivation

ACQUISIT ISITION ION

Expecte ected Clo losin sing : Fall 2019

INFRASTRUCT UCTUR URE

Loca cation

• n : Las Vegas

Facil ilit ity Siz ize e : 8,000 sq. ft. Expansi nsion

• n Poten

tentia ial l : 22-acre parcel

• f land in Clark County (Sandy

Valley), to cultivate and process over 50,000 pounds of cannabis annually

10

• Arm’s-length

private Colorado company, which holds license to manufacture cannabis infused products at NHI’s facility in Pueblo, Colorado

• State-of-the-art extraction and manufacturing facility to produce cannabis

concentrates and edible products

• 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

• Annualized revenue run rate of CAD $3.6M. Results ar

are cur urrent ntly no not consolidated in in NHI Financials

• Expected change in state regulations in November 2019, facilitating out of

state direct ownership

• Products currently sold in over 50 dispensaries

COLORADO: ROCKY MOUNTAIN HIGH MANUFACTURING AND BRAND STRENGTH

11

LICENS CENSE E (Palo

• Verde, LLC)

C) ▪ 2 Recreational Manufacturing and 2 Medical Manufacturing Curren ent State e : Fully operational extraction and manufacturing

INFRASTRUCT UCTUR URE

Locat cation

• n : Pueblo, Colorado

Facil ilit ity Siz ize e : 11,000 sq. ft. Land Siz ize e : ~55,000 sq. ft. Expansi nsion

• n Poten

tentia ial l : Indoor cultivation and greenhouse projects

PRODU DUCT CT AND BRAND

FLI - NHI in-house brand Curren ent t Product ucts s : Vape Cartridge, Syringe, Disposable Vape Cartridge, Infused Pre-Rolls, Chocolate Bars, Bulk Distillate Sold in 50+ dis ispensa ensaries es in Colorado

CALIFORNIA DEVELOPING MANUFACTURING AND BRAND FOOTPRINT

12

LICENS CENSE

Curren ent State e : Conditional Use Permit (CUP) awarded, Business Operating Permit to be received post buildout

INFRASTR TRUCT CTURE

Locat cation

• n : Sacramento, California

Facil ilit ity Siz ize e : 17,600 sq. ft. (12,600 sq. ft. manufacturing, 5,000 sq. ft. Calyx distribution center)

▪ Sacram amento (Und

nder er Develop

• pment)

t)

MANUFACT CTUR URING ING

Capabil ilit ity : Bulk Distillate, Vapes, Concentrates, Edibles, Pre-Rolls. Expansion potential to other categories

OREGON & WASHINGTON PRODUCTION CAPACITY BOLSTERS BRAND STRATEGY

WASHINGTON OREGON

EXCLUSIV IVE LIC ICENSE TO PRODUCE CE MARLEY Y NATURAL PRODUCTS TS IN IN O OR & W WA 13

LICE CENSE NSE ▪ Marijuana Processor License Current State : Fully operational extraction and manufacturing INFRA FRAST STRU RUCT CTURE Locatio ion : La Pine, Oregon Facili ility y Size e : 5,202 sq. ft. Land Size ze : 3 contiguous parcels of land of 18,295 sq. ft. PRODU DUCT CT AND D BRAN RAND FLI - NHI in-house brand Marley y Nat atural l Bran ands s : License to manufacture Marley Natural, Dutchy, Headlight, Irisa, Grail and Martian Gardens Current Product cts s : Vape Cartridge LICE CENSE NSE (JBM M Enter erprises ises, , LLC) ▪ Marijuana Producer Tier 1 Marijuana Processor INFRA FRAST STRU RUCT CTURE Loca catio ion : Bainbridge Island, WA Fac acili ility y Size : 5,600 sq. ft. PRODU DUCT CT AND D BRAN RAND Marley y Nat atural l Bran ands s : Sub-license to JBM Enterprises to manufacture Marley Natural, Dutchy, Headlight, Irisa, Grail and Martian Gardens

Neva vada da

• Leverage market leadership in

Concentrates for new brand development

• Migrate strong FLI product portfolio from

Colorado

• Introduce new in-house Flower brand, also

enhancing raw material supply for manufacturing segment

• Potential JV with renowned multi state

retailer to secure state wide shelf space in all their Nevada locations.

Colora lorado do

• Product line enhancement in the Vape Cartridge,

Edible and Concentrate segments underway

• Successfully executing rapid new store

penetration plan against a target of ~4x current sales footprint.

• Enhanced store level branding and marketing in

progress

• Renewed focus on a continuous stream of high

volume bulk oil contracts with non competing brands state wide

Californi lifornia

• Development of new, in-house concentrate

brand with a curated product portfolio

• Migrate strong FLI product portfolio from

Colorado

• Foster FLI Brand via product line

enhancement and packaging improvement

• Leverage Co-manufacturing opportunities

based on Calyx distribution platform

Oreg egon

• n and

d Washington shington

• Development of new, in-house concentrate

brand with a curated product portfolio

• Foster Marley Natural Brands via new integrated

marketing campaign

• Re-development of regional leadership teams

underway

• Securing network of high velocity regional

distributors

14

GROWTH TRAJECTORY: NEXT STEPS IN MANUFACTURING AND BRANDS

David Posner 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 Carrie Howes SVP, Communications

• Over 15 years experience in the Finance industry including

Investor Relations and Fundraising for companies in Canada, Europe and Middle East

• 3 years as Managing Director of European Investor Relations at

Moore Clayton & Co. and previously served for 8 years as Institutional Broker at Union Securities, London, UK

• Received her B.A. (HON) Psychology and Business from the

University of Western Ontario Dwayne Jones Director of Operations

• Active operations consultant in the cannabis industry for over 4

years

• Previously the owner of American Perimeter Security Inc. and

was responsible for all aspects of the business from 2003 -2013

• Launched his career in Operations with Integrated

Micromachines Monrovia, CA. where he directed the buildout of a CNC fabrication plant including labs, manufacturing, assembly and testing

LEADERSHIP TEAM

Adam K. Szweras Chief Executive Officer

• 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

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

Chad Wittman VP, Manufacturing

• Formerly the General Manager and VP, Operations at Bronnor Corp.,
• ne of the countries largest contract manufacturers of infused products
• Served as General Manager and Director for two of Colorado’s largest

cannabis manufacturers for 10 years and managed production facilities across multiple states

• Holds a bachelor’s degree in business administration from

Northwestern State University

15

UNDERVALUED: A COMPARISON WITH THE FIELD

EV / TTM Revenue vs. Peers

16

Share Price Marke t Cap Ente rprise Value Re v TTM EV/Re v TTM TTM Nutritional High Inte rnational Inc. $0.15 $53.9 $69.5 $22.1 3.1x Origin House $7.95 $1,050.5 $1,045.7 $47.1 22.2x SLANG Worldwide Inc. $0.99 $236.5 $213.7 $15.2 14.1x Ignite International Brands $1.50 $159.5 $143.1

• Dixie Brands Inc.

$0.74 $93.1 $90.1 $12.2 7.4x DionyMed Brands Inc. $1.63 $93.0 $123.7 $47.4 2.6x Halo Labs $0.41 $77.1 $86.9 $32.8 2.7x Wildflower Brands Inc. $0.47 $62.8 $72.3 $4.6 15.7x The Tinley Beverage Company Inc. $0.55 $57.5 $53.4 Gaby, Inc. $0.29 $51.6 $42.5 $3.6 11.8x C21 Investments Inc. $0.72 $45.9 $103.3 $13.6 7.6x Next Green Wave Holdings Inc. $0.26 $40.6 $41.6 $0.1 415.7x Cannabis One Holdings Inc. $0.43 $38.6 $29.9 $3.6 8.3x Pivot Pharmaceuticals Inc. $0.33 $36.6 $40.9

• CENTR Brands Corp.

$0.55 $32.8 $29.0

• Phivida Holdings Inc.

$0.29 $26.3 $17.7 $0.1 177.4x Weekend Unlimited Inc. $0.06 $24.9 $24.5

• Golden Leaf Holdings Ltd.

$0.04 $24.2 $44.5 $23.9 1.9x Ionic Brands Corp. $0.13 $20.7 $38.0 $3.1 12.2x Mojave Jane Brands $0.17 $17.8 $16.2 $0.1 161.6x International Cannabrands Inc. $0.04 $11.3 $12.8 $4.0 3.2x Chemistree Technology $0.22 $7.7 $9.4 $0.1 93.8x CannAmerica Brands $0.11 $5.8 $9.2 $1.0 9.2x Me dian $39.6 $42.0 $4.0 11.8x Me an $100.7 $104.0 $12.5 56.9x

Financial Data/Projections as per Capital IQ - Sep 06, 2019 All Figures in CAD $M (except per share figures)

Company Marke t Info TTM Financials

COMPANY SNAPSHOT

COMPANY SNAPSHOT

Exchan change ge/Sy /Symbol bol Canadian Securities Exchange EAT OTCQB SPLIF IF

Capitalization Info as of Sept. 5, 2019

Basic Shares Out. 355,326,523 Options (CAD $0.08 - $0.51) 29,307,259 Warrants (CAD $0.06 - $0.80) 67,337,185 Convertible Debt $13.7M Share re Pric ice $0.15 Fully lly Dilu iluted ted Mark rket et Cap1 $53.9M

17

2 Assumes Treasury Method for in-the-money dilutive securities 1 $4.0M senior secured – Maturity : Aug 2021, Conversion @ $0.20 CAD

$1.8M second senior secured – Maturity : Sep 2022, Conversion @ $0.20 CAD $7.9M unsecured – Maturity : Mar 2021, Conversion @ $0.60 CAD

David Posner Chairman of the Board and Director T: (647) 985-6727 E: dposner@nutritionalhigh.com Adam Szweras as Chief Executive Officer T: (416) 564-5926 E: aszweras@nutritionalhigh.com

CONTACT US