CORPORATE PRESENTATION EveCannabis.ca TSX-V: EVE November 2018 - - PowerPoint PPT Presentation

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CORPORATE PRESENTATION EveCannabis.ca TSX-V: EVE November 2018 - - PowerPoint PPT Presentation

CORPORATE PRESENTATION EveCannabis.ca TSX-V: EVE November 2018 Disclaimer Caution Concerning Forward Looking Statements IMPORTANT: YOU MUST READ THE FOLLOWING reliance on such future-oriented financial information and financial are not


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EveCannabis.ca

TSX-V: EVE

CORPORATE PRESENTATION

November 2018

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IMPORTANT: YOU MUST READ THE FOLLOWING The information contained in this presentation has been prepared by 1600978 Ontario Inc., operating as Eve & Co Incorporated (EVE or the “Company”) and contains confidential information pertaining to the business, operations and assets of the Company. The information contained in this presentation (a) is provided as at the date hereof and is subject to change without notice, (b) does not purport to contain all the information that may be necessary or desirable to fully and accurately evaluate an investment in the Company, and (c) is not to be considered as a recommendation by the Company that any person make an investment in EVE. An investment in the securities described herein is speculative and involves a number of risks that should be considered by a prospective investor. This presentation is confidential and is being provided to you solely for your information and may not be reproduced, in whole or in part, in any form or forwarded or further distributed to any other person. Any forwarding, distribution or reproduction of this presentation in whole or in part is unauthorized. By accepting and reviewing this presentation, you acknowledge and agree (i) to maintain the confidentiality of this presentation and the information contained herein, (ii) to protect such information in the same manner you protect your own confidential information, which shall be at least a reasonable standard of care, and (iii) to not utilize any of the information contained herein except to assist with your evaluation of a potential investment in the Company. CAUTIONARY NOTE REGARDING FUTURE-ORIENTED FINANCIAL INFORMATION To the extent any forward-looking information in this presentation constitutes “future-oriented financial information” or “financial outlooks” within the meaning

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applicable Canadian securities laws, such information is being provided to demonstrate the anticipated market penetration and the reader is cautioned that this information may not be appropriate for any other purpose and the reader should not place undue reliance on such future-oriented financial information and financial

  • utlooks. Future-oriented financial information and financial outlooks, as

with forward-looking information generally, are, without limitation, based

  • n the assumptions and subject to the risks set out below under the

heading “Cautionary Note Regarding Forward-Looking Information”. Eve & Co Incorporated’s actual annual production, financial position and results of operations may differ materially from management’s current expectations and, as a result, the Company’s annual production, income, expenses and net income may differ materially from the profiles provided in this presentation. Such information is presented for illustrative purposes only and may not be an indication of the Company’s actual annual production, financial position or results of operations. CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION: This presentation includes forward-looking information and forward- looking statements within the meaning of Canadian securities laws. Statements containing the words “believe”, “expect”, “intend”, “should”, “seek”, “anticipate”, “will”, “positioned”, “project”, “risk”, “plan”, “may”, “estimate” or, in each case, their negative and words of similar meaning are intended to identify forward-looking information. Forward-looking information involves risks and uncertainties including, but not limited to, the Company’s anticipated business strategies, anticipated trends in the Company’s business and anticipated market share, that could cause actual results or events to differ materially from those expressed or implied by the forward-looking information, general business, economic and competitive uncertainties, regulatory risks including risks related to the expected timing of EVE’s licenses and expansions, market risks, risks inherent in manufacturing and agricultural operations as well as

  • ther general risks of the cannabis industry. Such statements are based

upon the current beliefs and expectations of the Company’s management and are subject to significant business, social, economic, political, regulatory, competitive and other risks, uncertainties, contingencies and

  • ther factors. Many assumptions are based on factors and events that

are not within the control of Eve & Co Incorporated. Actual future results may differ materially from historical results or current expectations. These risks, uncertainties and assumptions could adversely affect the

  • utcome and financial effects of the plans and events described herein.

In addition, even if the outcome and financial effects of the plans and events described herein are consistent with the forward-looking information contained in this presentation, those results or developments may not be indicative of results or developments in subsequent periods. Although Eve & Co Incorporated has attempted to identify important risks and factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors and risks that cause actions, events or results not to be as anticipated, estimated

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intended. Forward-looking information contained in this presentation is based on the Company’s current estimates, expectations and projections, which the Company believes are reasonable as of the current date. The Company can give no assurance that these estimates, expectations and projections will prove to have been correct. You should not place undue reliance on forward- looking information, which is based on the information available as of the date of this presentation. Forward-looking information contained in this presentation is as of the date of this presentation and, except as required by applicable law, the Company assumes no obligation to update or revise them to reflect new events or circumstances. Historical statements should not be taken as a representation that such trends will be replicated in the future. No statement in this presentation is intended to be nor may be construed as a profit forecast. Additional information related to EVE, including risks and uncertainties, can be found on the Company’s SEDAR profile at www.sedar.com.

Disclaimer

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Caution Concerning Forward Looking Statements

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  • EVE & Co is located in Strathroy, Ontario and listed
  • n the TSX-Venture Exchange (EVE) as well as the

OTCQB Venture Market (EEVVF)

  • Cultivation license granted July 22, 2016
  • Sale license granted June 21, 2018
  • Extraction license granted September 14, 2018
  • New flowering room approved December 7, 2018
  • Anticipated approval of 780,000 sq. ft. expansion in

Q3 2019

  • Situated on a 32-acre property
  • Sales strategy focused on direct

to retailer (recreational market) and B2B (export and domestic medicinal markets)

  • Annual production capacity of

~10,000 kg increasing to ~50,000 kg with expansion project

COMPANY SNAPSHOT

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PRODUCTION AND EXPANSION

CURRENT SIZE

  • 220,000 sq.ft. existing

greenhouse space

  • 120,000 sq.ft. original with

100,000 sq.ft. new flowering room

  • Production Capacity:

~800 kg per month EXPANSION

  • Estimated completion June

2019

  • 780,000 sq.ft. expansion
  • Increases capacity to

~4,000 kg per month

  • Construction cost: ~$32

million COMBINED CAPACITY

  • 1,000,000 sq. ft. total

greenhouse space

  • ~50,000 kg per year

CURRENT FACILITY PHASE 1 PHASE 2

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SALES STRATEGY

RECREATIONAL MARKET (CANADA)

  • Sales will be made directly to authorized

retailers

  • MOU signed with B.C, Ontario, and

Newfoundland for distribution

  • Additionally product to be sold directly to
  • ther LPs

MEDICINAL MARKET (CANADA)

  • B2B sales strategy for sale of clones

to other LPs

  • Product to be sold directly to other

LPs

  • Ongoing discussions for long-term

supply agreements MEDICINAL MARKET (EXPORT)

  • Company has signed a pre-sales

agreement with distributors for pharmaceutical and other products in Germany

  • Sales starting at approximately 100

kg per month, ramping to 300 kg per month after year 1

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BC ON NL Eve will be balancing brand awareness with pricing when selling Cannabis in the two largest addressable markets: B.C. and Ontario.

MOU / LOI

Eve is building inroads to access the lucrative German Cannabis market through established German

  • perators and

through partnerships with new applicants The first and only Licensed Producer in Canada to offer quality clone plants to the recreational market in Newfoundland Labrador

SALES STRATEGY

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SALES STRATEGY

Eve will be offering multi-serve flower in various sizes in addition to pre-rolled products A fully automated packaging system will maintain high quality control and reduce costs First Licensed Producer to ship clones directly to consumers for the Canadian recreational market.

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CLONES VEGETATIVE FLOWERING ROOM

OPERATIONS

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OPERATIONAL MILESTONES

2017 2018 2019 Q3 Q4 Q1 Q2 Q3 Q4 Q1 JULY

Flowering grow area in full production (64,500 sq.ft)

SEPTEMBER

Harvesting at full capacity

NOVEMBER

Construction of an additional 100,000 sq ft of flowering production to commence

JANUARY

Ramp up vegetative production for new flowering space

JULY

Construction completed of additional flowering space

JUNE

Sales license issued

JUNE

Construction commenced on second expansion

DECEMBER

Approval of second flowering room and packaging room Approval to commence sales to provincially authorized retailers and distributors

JUNE 2019

Construction estimated completion

FALL

Harvest to start in expansion

CURRENT FACILITY NEW FLOWERING EXPANSION

Note: Such milestones may not be reached pursuant to the above schedule or at all. Refer to “Disclaimer-Cautionary Note Regarding Forward-Looking Information.”

SEPTEMBER

Extraction License Issued

MARCH

First harvest for new flowering room

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COMPARABLES

As at: Jan 15, 2019 Note: * Fully diluted and in the money enterprise value (1) Eve & Co multiple is based on 2020 estimated EBITDA of ~$40 M Source: S&P Capital IQ, Company Filings, Haywood Securities

EV*/ 2020E EBITDA

42.6x 38.0x 16.3x 13.7x 9.9x 8.2x 8.1x 4.3x 4.1x 3.1x 2.7x 2.7x 2.3x

Average - 12x

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GREENHOUSE EXPERIENCE

  • Original founders have 65+ years of

combined growing experience

  • The Rombouts Families are involved

in large scale greenhouse growing with a total of 50 acres under poly/glass and immediate expansions underway to increase to

  • ver 3M sq. ft of total greenhouse

production.

  • Experience in growing thousands of

varieties of plants including vegetable, flowering, clone and Cannabis production as well as distribution throughout North America to large retail chain stores.

  • Knowledge of scalability,

greenhouse expansion, best greenhouse practices and greenhouse systems

  • Greenhouse connections and

knowledge of state-of-the-art greenhouse systems for knowledgeable spending

CEO Experience

  • Honours Biology with Specialization in

Plant Biology, Legal Studies Option and BA, University of Waterloo

  • 20 years as previous lead grower
  • First Canadian producer of algae

products for the nutraceutical market, recipient of Agri Innovations Award

  • Development of Quality Assurance

programs for nutraceutical and Cannabis production 10 years

  • Health Canada Approved Quality

Assurance Person (QAP)

  • Composed Standard Operating

Procedures (SOPs) and ensured Good Production Practices (GPP) and facility compliance

  • Regulatory Affairs, application

submission and Health Canada communication

  • Senior Person in Charge (SPIC)

ensuring ongoing security, QA and GPP compliance to the Cannabis Act

  • 25 years Business experience in

brand development, business development and expansion, marketing, advertising, in greenhouse, agricultural, nutraceutical, Cannabis, and real estate industries.

  • 5 years experience with Ministry of

Agriculture and Food

Focus on Production

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Grow Team

Grow Team Greenhouse Experience Agricultural Experience Cannabis Experience Education and Certifications Position

Melinda Rombouts 22 26 5

  • BSc. Honours Biology, Plant

Biology, and BA, University of Waterloo Previously Grower, Grow team, consultation, QAP, SPIC Dave Burch 15 41 10 University of Guelph Agricultural courses, Pesticide Handling Certification Grower, management Mike Kwan 20 40 2 Chemical Technician, University of Toronto Head Grower, vegetative stage Tom Jobson 8 7 8 Agricultural Diploma, University of Guelph, Certified Crop Advisor Grower, Supervisor, Flowering Rooms Melissa Baker 1 14 3 Horticultural Diploma, University of Guelph Irrigation Specialist, Flowering Rooms Sarah Miner 1 10 1 Honours Bachelor Degree in Agriculture, University of Guelph QA, Operations, grow team support Dakota Stephens 3 Horticultural Diploma, Fanshawe college Pest Specialist Brianne Quenneville 15 Pest Specialist Michelle Hoogstra 10 Watering Tech Total Team Experience

67 153 32

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MELINDA ROMBOUTS

Chief Executive Officer and Director

Prior to founding Natural MedCo, Ms. Rombouts was the president, manager and owner of numerous large scale businesses in the agricultural, food, real estate and pharmaceutical industries and through these gained experience and knowledge in marketing, advertising, finance, project management and business development.

  • Ms. Rombouts has grown hundreds of varieties of plants and

through this experience, she has gained extensive plant knowledge crucial to the growth of a healthy plant and high quality

  • product. She also has experience with Quality Assurance, GPP

program and Standard Operating Procedures development, implementation and improvement with strict adherence to the regulations governing the pharmaceutical industry.

  • Ms. Rombouts holds a BA and BSc from the University of Waterloo

with specialization in Plant Biology and Legal Studies.

LANDON ROEDDING

Chief Financial Officer

  • Mr. Roedding brings over 15 years of experience in accounting,

financing, and business development within the public markets and has a demonstrated ability to manage financial and

  • perational challenges while managing a dynamic and growing
  • business. Previously, Mr. Roedding was Controller at Blue Goose

Capital Corp., where he led the financial planning, reporting, restructuring and human resource functions. Previously, Mr. Roedding held positions as Director, Financial Reporting at Kinross Gold and Senior Manager of Financial Reporting at Sherritt International Inc. and, prior to those positions he spent 8 years at PricewaterhouseCoopers LLP in their assurance practice.

  • Mr. Roedding is a Canadian Chartered Professional Accountant

and holds an a Honours Economics and Accounting degree from Wilfrid Laurier University. Mr. Roedding also serves on the Board

  • f Directors of Project C.A.N.O.E., a not for profit charity focused
  • n serving youth facing systemic or mental health barriers.

EXPERIENCED MANAGEMENT

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BOARD OF DIRECTORS

T.A. CLARK MOELLER IV

Director

RAVI SOOD

Director

  • Mr. Moeller lives in Wichita, Kansas and is the head of EQ

Development, a company focused on private equity investments. With a background in lodging, commercial and residential real estate development, Mr. Moeller also has extensive experience in business

  • perations across a wide variety of segments.
  • Mr. Moeller has broad experience in the cannabis industry with

investments in Canada and the Colorado market.

  • Mr. Moeller graduated with honors and received his B.A. in United

States History from the University of Kansas.

  • Mr. Sood is the managing director of Signal 8 Limited. Mr. Sood has

been a founder of and the principal investor in several businesses in emerging markets and currently serves as Executive Chairman and Director of Galane Gold Ltd. (TSXV:GG) and Blockchain Power Trust (TSXV:BPWR) and as a director of Feronia Inc. (TSXV:FRN), and ICC Labs Inc. (TSXV:ICC). He was the founder and Chief Executive Officer of Navina Asset Management Inc., a global asset management firm headquartered in Toronto, Canada. Mr. Sood led the investment activities of Navina and its predecessor company, Lawrence Asset Management Inc., from its founding in 2001 until he sold the firm in 2010.

MEHRANEH EBRAHIMI

Director

  • Dr. Ebrahimi is the head of academic research of her family’s

investment business, which holds various interests in agricultural, real estate and private equities. Prior to that, she taught at Western University in London, Ontario, where she received her PhD in World Literature. Speaking four languages and conducting research on the role of the disenfranchised, women, and minorities in world affairs have helped

  • Dr. Ebrahimi understand the unique international cultural

kaleidoscope of Canada. She is the recipient of several teaching awards and scholarships and the author of a forthcoming book entitled Women, Art and Literature in Diaspora. Her diverse experiences both academic and managerial shape her understanding of business and social life, especially women and immigrants.

  • Ms. Mogk-Edwards’ previous career spans over 35 years with one of

the largest single buyers of beverage alcohol in the world – the Liquor Control Board of Ontario (the “LCBO”). As the Vice President, Products, Sales and Merchandising, she led a high performance team

  • f 100 category and inventory specialists, and directed sales of over

$5B. She also developed and led VINTAGES, the fine wine department at the LCBO, to annual sales from $23M to over $500M. As a face of the LCBO, Shari managed her “Shari’s Picks” program, promoted responsible consumption, regularly represented the LCBO at trade, television and radio events, and was a key note speaker at countless events. At her new consulting company, Ms. Mogk-Edwards is now focused on breaking down barriers and developing businesses. She shares her knowledge and experiences through her personal approach.

SHARI MOGK- EDWARDS

Director

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CAPITAL STRUCTURE

SHAREHOLDER OWNERSHIP # OF SHARES % OF SHARES Melinda Rombouts and Affiliates 84,800,000 32.1% Clark Moeller holdings 17,309,728 6.6% Kaleron Holdings Ltd. 16,400,000 6.2% Ravi Sood 1,715,914 0.6% Widely Held 112,923,691 54.5% Total 264,247,667 Warrants 16,665,000 Options 13,929,680 Total F/D 294,842,347 Cash $7.2M

(1) Data as at April 18, 2019

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  • March 19, 2019 Announced $18.7 million

in debt financing from a Canadian Chartered Bank

  • March 29, 2019 Announced conversion of

remaining debentures, removing cash

  • utflow obligation of $4.0 million
  • April 11, 2019 Announced $10.0 million

special warrant bought deal financing

  • April 18, 2019 Announced exercise of

warrants resulting in approx. $5.8 million

  • f cash inflow

FINANCIAL NEWS

The recent finance activity strengthens the Company’s balance sheet and provides sufficient funding to complete the 780,000 sq. ft. expansion as well as develop the Company’s female focused consumer packaged goods program.

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Eve is centered around

wellness, empowerment

& education.

– three key elements that drive

  • ur business every day.

As a female-founded and female-led licensed producer, Eve isn’t just a brand we own –

it’s who we are.

EveCannabis.ca

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Products

OILS

COSMETICS/ SKINCARE EDIBLES

Future Product Development

Female Sanitation Products • Beauty Creams Topicals • Sensual Products • Natural Deodorants Skin and Lip Care • Massage and Bath Products Chocolate • Wine • Flavoured Health Drinks Discrete Beverage Additives • Pet Treats and Treatments

EveCannabis.ca

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CONTACT

MELINDA ROMBOUTS

CEO

invest@naturalmedco.ca +1 (855) NAT-MEDS +1 (855) 628-6337

LANDON ROEDDING

CFO

invest@naturalmedco.ca +1 (855) NAT-MEDS +1 (855) 628-6337 +1 (647) 473-4947