GROWING IN THE USA Corporate Presentation CHM: CSE | CHMJF: OTCQB
Forward Looking Statements This corporate document contains expressed or implied in any forward- forward-looking information, where “forward-looking statements” and looking statements and accordingly, as a result of new information, future “forward-looking information” (collectively, should not be read as guarantees of future events or otherwise, unless required by “forward-looking information”) within performance or results. applicable law. New factors emerge from the meaning of applicable securities time to time, and it is not possible for legislation.” Thereafter, all references Forward-Looking information involves management to predict all of such factors E should be to “forward-looking risks and uncertainties including, but not and to assess in advance the impact E information”). This corporate document limited to, the Company’s anticipated of each such factor on the Company’s R may use words such as “may”, “would”, business strategies, anticipated trends in business or the extent to which any factor, T “could”, “will”, “likely”, “except”, “anticipate”, the Company’s business and anticipated or combination of factors, may cause S “believe”, “intend”, “plan”, “forecast”, market share, that could cause actual actual results to differ materially from “project”, “estimate”, “outlook”, and other results or events to differ materially those contained in any forward-looking I M similar expressions to identify forward- from those expressed or implied by the statements. Forward-looking information looking statements. Actual results, forward-looking information, general contained in this Presentation is based E performance or achievement could business, economic and competitive on the Company’s current estimates, H differ materially from that expressed uncertainties, regulatory risks including expectations and projections, which the C in, or implied by, any forward-looking risks related to the cannabis market in Company believes are reasonable as the statements in this corporate document, the United States and Canada, market current date. and, accordingly, investors should not risks, as well as those risk factors disclosed place undue reliance on any such forward- elsewhere in the Company’s public The Company can give no assurance looking statements. disclosure. that these estimates, expectations and projections will prove to have been correct. Forward-looking information involves Any forward-looking statements Historical statements should not be taken signifjcant risks, assumptions, speak only as of the date on which as a representation that such trends will uncertainties and other factors that may such statement is made and each of be replicated in the future. No statement cause actual future results or anticipated the Company disclaims any intention in this Presentation is intended to be nor events to differ materially from those or obligation to update or revise any may be construed as a a profjt forces. 2
“Very few people have decades of cannabis experience. But those who do, see things others don’t. That is the foundation of Chemistree. Our team is our advantage.” - Sheldon Aberman - Director & Chief Cannabis Offjcer
Crisis or Opportunity? FURTHER CLARITY ON US REGULATIONS ▶ Public support for legalization in the use is >60% E ▶ Capital fmow to US companies as restrictions ease E (SAFE Banking, MORE and STATES Acts), R ▶ >30 states allow for medical marijuana; 11 approved for T S recreational use I M CANNABIS ONE OF THE FASTEST GROWING SECTORS E OVER THE NEXT DECADE, IN THE WORLD H ▶ US market alone estimated $30.4 Billion in 2019 C ▶ US market for legal cannabis is already ~10x size of Canada ABILITY TO MARKET AND BRAND IN THE US “America is where brands & fortunes are made” 4
Crisis or Opportunity? US Focused Since Day 1 E E R T S “OUR TEAM, OUR ADVANTAGE” NEW WASHINGTON LICENSE I Dedicated team of lifetime US APPLICATION M cannabis experts; cultivation, Leading applicant with submission E construction, branding and for 1 of 24 new permits. Facility H marketing. expansion complete Summer 2020 C ALL FOUNDERS HAVE “SKIN IN DESERT HOT SPRINGS, THE GAME” CALIFORNIA LAND ACREAGE >35% inside ownership Shovel ready construction project, seeking fjnancing SOLID CAPITAL STRUCTURE $3.7 million Market Cap (at $0.10) PROFITABLE OPERATION IN with $6 million in cash (debenture) WASHINGTON STATE Total ~$18 million raised to-date Global rights to Sugarleaf brand Plans for facility expansion 5
Stats & Projections E E R T S I M Fully Legal E Expected to be Fully Legal H THC Medically C Legal THC is Illegal MARIJUANA MARKET FORECAST GROWTH CATALYSTS TOP 3 REC-LEGAL STATES ‘18 $30 + Billion ▶ National Legalization ▶ California $2.75 Billion ▶ Banking Regulations ▶ Colorado $1.56 Billion by 2023 (Source: MJBiz) ▶ Consumer Adoption ▶ Washington $1.00 Billion 6
What We Do Top Quality Team of Cultivator & Operators E E R T S I M E H C EARLY MOVERS EXPERIENCE FOCUS Providing turn- Premier operating Focused on key solutions for capabilities in acquiring & the US regulated cannabis cultivation, developing vertically cannabis industry processing, integrated cannabis and a front-runner on distribution and assets, leveraging new state licensing retail facilities. management’s deep opportunities. experience in the cannabis industry & corporate fjnance. 7
“The advantage of Chemistree over any other early stage public company is the breadth and depth of our people. From cultivation to the capital markets, we bring decades of experience across all facets of the industry.” - Karl Kottmeier - CEO
Leadership Team KARL KOTTMEIER CEO & President Founder, director and principal of several TSX listed companies. Directly raised over $150,000,000 in equity for global development E E projects. 25+ years experience. R T DOUG FORD S CFO I M CFO and director of numerous companies over E a 30 year career. Expert in corporate fjnance, H administration and fjnancial reporting. C SHELDON ABERMAN Director & Chief Cannabis Offjcer Managed and designed hundreds of cannabis grows worldwide. He has created leading edge commercial grow room designs and built several multi-million dollar brands including Black Label and Frost Box. 9
Directors & Advisors NICHOLAS ZITELLI DENNIS HUNTER E Director Advisor E Also known as Nico Escondido, he is a Denis is a pioneer in the California cannabis R partner & director in High Times Media recreational and medical fjeld. He has been T and also founded the Cannabis Genetics recognized as a Top 100 most infmuential Institute (CGI) in Amsterdam, Holland. people in cannabis by High Times. His S Nico is best known for his writing on businesses make up one of the largest I various topics across the industry. cannabis enterprises in Northern California. M E H C JEREMY DEICHEN KIRK GAMLEY Advisor Advisor 20+ years in cannabis industry with President and CEO of Contact experience in cultivation, processing, Financial, one of western Canada’s sales, branding & marketing. Creator of largest corporate communications the Growing Exposed series, currently fjrms. Expert in capital market distributed by the largest media publication access, public company marketing in the cannabis industry, High Times. and development. 10
Washington SUGARLEAF FARMS E ▶ Award winning brand E ▶ 5,000 sq. ft. indoor cultivation R ▶ 5,000 sq. ft. additional cultivation/ T production to be added by Q2 2020 S ▶ Asset Purchase: USD$1,300,000 I ▶ Revenue at purchase: Approx. $500,000 M E 2019 TARGET REVENUE H ▶ Approx. USD$1,000,000 to $1,200,000 C ▶ Reached max. existing capacity ▶ Increased cultivation by 200+% ▶ Retail distribution up by 400+% 2020 TARGET REVENUE ▶ USD$2,000,00+ pending expansion 11
Case Study SUGARLEAF TURN AROUND CHALLENGE RESULTS ▶ Overleveraged and ▶ Lower labour costs undercapitalized ▶ Increased productivity E ▶ Incurring substantial ▶ Standardized crop to crop E losses into 2017 production R ▶ Approx. 3 months ▶ Signifjcant gram per watt T S from insolvency increase across growing zones I ▶ And… M SOLUTION +239% E Means of Implementation H (MOI’s) established for: Monthly Sales C ▶ Organizational restructuring Increase* ▶ Infrastructure improvements +36% ▶ Product quality assurance Crop Yield Increase ▶ Brand and marketing Since April revitalization +100% Retail Client Stores * Source: Washington i502 data: Sep. 2018 to Oct. 2019 Increase Since April 12
California DESERT HOT SPRINGS LAND PURCHASE PRICE E ▶ USD $1,233,800 E ▶ 9.55 acres R T PHASE 1 S ▶ 66,000 sq. ft. greenhouse cultivation facility I M ▶ 5,000 sq. ft. processing facility E ▶ Capex: USD $12.5mm H ▶ Technical drawings and permitting underway C ▶ Est. construction: 9 months ▶ Target annual revenue: USD $14.5mm PHASE 2 ▶ Building to total project capacity: ▶ 128,000 sqft cultivation ▶ 40,000 sqft processing ▶ Est. construction: 9 months 13
“The future of cannabis will be defined by two things, cultivation of superior genetics and state by state licenses to operate” - Nico Escondido - CHM Director & Founder of the Cannabis Genetics Institute
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