Corporate Presentation April 2019 www.heritagecann.com
CSE: CANN
CSE: CANN Corporate Presentation April 2019 www.heritagecann.com - - PowerPoint PPT Presentation
CSE: CANN Corporate Presentation April 2019 www.heritagecann.com Discla Dis claim imer er General This Confidential Presentation (the Presentation) with respect to a proposed financing (the Transaction) by Heritage Cannabis
Corporate Presentation April 2019 www.heritagecann.com
CSE: CANN
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General
This Confidential Presentation (the “Presentation”) with respect to a proposed financing (the “Transaction”) by Heritage Cannabis Holdings Inc. (“Heritage” or the “Company”) has been compiled by management of the Company solely for information purposes. The Presentation is for the confidential use by the recipient in order to assist such recipient in deciding whether to proceed with an in-depth investigation of the Transaction contemplated herein. The Presentation is not, and under no circumstances is to be construed to be, an offering of securities. Neither this Presentation, nor its delivery to the recipient shall constitute an offer to sell, or the solicitation of an offer to buy the assets described herein. It is provided solely for use by prospective investors in considering their interest. The information contained herein has been prepared to assist interested parties in making their own evaluation of the Company and its business and does not purport to contain all the information that prospective investors may require. Prospective investors should conduct their own investigation and analysis of the Company and its business and the information contained in this Presentation as well as any additional information provided by the Company. The information contained in this Presentation is not to be used for any other purpose. The information in this Presentation must be kept confidential at all times. By accepting this Presentation, the recipient agrees that it will not copy, duplicate or distribute this Presentation, in whole or in part, at any time without the Company’s prior written consent. By your acceptance hereof, you covenant that neither you nor your agents, representatives, directors or employees will copy, reproduce or distribute this Presentation or the information herein to others, in whole or in part, at any time, without the prior written consent of the Company, and that you will keep confidential this Presentation, the information herein and any information otherwise
Forward-Looking Information and Risk Acknowledgement
This document contains “forward-looking statements” and “forward-looking information” within the meaning of applicable securities laws (collectively, “forward-looking information”) with respect to Heritage, including, but not limited to potential acquisitions, potential investments, and any other statement that may predict, forecast, indicate or imply future plans, intentions, levels of activity, results, performance or achievements, and involve known and unknown risks, uncertainties and other factors which may cause the actual plans, intentions, activities, results, performance or achievements of the Company to be materially different from any future plans, intentions, activities, results, performance or achievements expressed or implied by such forward-looking information. Often, but not always, forward-looking information can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, will”, “projects”, or “believes” or variations (including negative variations) of such words and phrases, or statements that certain actions, events, results or conditions “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Except for statements of historical fact, information contained herein constitutes forward-looking information. Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made including among other things assumptions about: favourable equity capital markets; the ability to raise sufficient capital to advance the business of the Company; favourable operating conditions; political and regulatory stability; receipt of governmental approvals and permits and all necessary third party financing on favourable terms; obtaining renewals for existing licences and permits and obtaining all other required licences and permits; sustained labour stability; stability in financial and capital goods markets; and positive and widespread awareness of the Company’s business. While the Company considers these assumptions to be reasonable, the assumptions are inherently subject to significant business, social, economic, political, regulatory, competitive and other risks and uncertainties, contingencies and other factors that could cause actual performance, achievements, actions, events, results or conditions to be materially different from those projected in the forward-looking information. Many assumptions are based on factors and events that are not within the control of the Company and there is no assurance they will prove to be correct. Furthermore, such forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. Such factors include, among others: general business, economic, competitive, political, regulatory and social uncertainties; disruptions or changes in the credit or securities markets; changes in labour costs or other costs; political instability, hostilities, insurrection or acts of war or terrorism; adverse changes in government legislation and regulation; adverse fluctuations in commodity and input prices; failure to raise sufficient funding to meet development plans and budgets, satisfy contractual obligations and additional capital needs generally; changes or disruptions in financial markets and capital goods markets; increased infrastructure, marketing and/or operating costs; failure to adequately protect intellectual property; the Company’s lack of operating history and no history of earnings; limits of insurance coverage and uninsurable risk; environmental risks and hazards; failure to comply with laws and regulations or other regulatory requirements; the impact of competitive conditions; the inability of the Company to retain its key management employees and shortages of skilled personnel and contractors; influence of third party stakeholders; risks of litigation; failures or deficiencies in the Company’s system of internal controls; conflicts of interest; credit and/or liquidity risks; and the risks involved in the industry generally. Although Heritage has attempted to identify important factors that could cause actual performance, achievements, actions, events, results or conditions to differ materially from those described in forward-looking information, there may be other factors that cause performance, achievements, actions, events, results or conditions to differ from those anticipated, estimated or intended.
“It is not the honor that you take with you, but the heritage you leave behind”
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Corporate Structure
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Maximizing domestic and international revenue opportunities through extraction expertise and know-how. Providing true turnkey product development and manufacturing solutions for our partners.
SEED TO SALE – A VERTICALLY INTEGRATED BUSINESS
GROW OIL DISTRIBUTION IP PRODUCTS MEDICAL
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Strategically positioned, coast to coast
GROW PRODUCTS OIL MEDICAL IP
British Columbia Ontario
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Forecast legal cannabis spending worldwide from 2016 to 2024 (in billion U.S. dollars)
https://www.statista.com/statistics/820158/global-legal-cannabis-market
Legal cannabis spending in billion U.S. dollars
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LICENSED P PRODUC UCERS RS ME MEDICAL AL
GROW OIL* DISTRIBUTION IP PRODUCTS*
CANNACURE NIAGARA, ON PUREFARMA KELOWNA, BC
MEDICAL*
VOYAGE FALKLAND, BC * Subject to regulatory approval
LICENSED PRODUCERS CANADA BRITELIFE KELOWNA, BC
ex extr tracti tion
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Voyage signs wholesale agreement with Canopy Growth to supply cannabis and products to the medical market Voyage Phase 1 construction completed in Falkland, BC
MARCH
Voyage granted ACMPR license by Health Canada to cultivate cannabis Phase 2 construction begins at Falkland, BC
JULY
CannaCure granted ACMPR license by Health Canada CannaCure signs supply agreement with CannTrust
OCTOBER
Acquires CannaCure, licensed producer, based in Fort Erie, ON Closes $7.5 million private placement CannaCure begins its first cannabis grow
NOVEMBER
Acquires Purefarma, an industry leading extraction group
DECEMBER
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generate 1st revenues [completed]
construction
[completed]
[completed]
granted by Health Canada for PhyeinMed [completed]
Q1
granted by Health Canada for CannaCure [completed]
revenues
at CannaCure
education
Q2
products
Q3
approval)
Q4
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State-of-the-art cannabis extraction and distillation equipment with proprietary customization within CannaCure and Voyage
The centre of the Heritage strategy
extraction
cartridges
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manufacturing for C02, hydrocarbon, alcohol
processing, toll processing, service and solutions provider and formulation development READY TO PROCESS 1,600 acres of approximately 70,000 kg’s Saskatchewan Hemp harvested with additional supply secured for 2019 production Contracted acres increased to over 3,000 by 2020
*Subject to regulatory approval *Extraction powered by purefarma manufactured within CannaCure & Voyage
*
An industry leading extractor with scientific approach to processing
BEVERAGES TOPICALS EDIBLES CAPSULES VAPE PENS TINCTURES & CONCENTRATES
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INDOOR GROW
24,260 sq. ft | COMPLETED
ADDITIONAL 16,313 SQ FT (OFFICE SPACE/EXTRACTION – 2ND FLOOR)
EDIBLES, EXTRACTS , TOPICALS & INFUSIONS
Flexible space allows for partnership opportunities and optionality
EXTRACTION CBD & THC CONTRACT MANUFACTURING
PARTNERSHIPS & JOINT VENTURES
PHASE 3 PHASE 2 PHASE 1
Fort Erie Ontario facility | 122,000 sq ft (former GMP Pharma facility)
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SEED
FROM SEED TO SALE
CULTIVATE HARVEST EXTRACT PRODUCT SHIP
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Tailoring the cannabis experience to the individual
LEADING A REVOLUTION IN INTEGRATED CANNABINOID THERAPEUTICS
BriteLife Health BriteLife Harmonize BriteLife Research BriteLife Practice
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Clint Sharples, CEO and Director
Clint is a partner in a small private equity management company formed in 2005. His primary roles are CEO of Modu-Loc Fence Rentals a Canada’s Best Managed Company, and Chairman of Strategic Aviation and Sky Café. He is responsible for
Heritage is to lead the overall corporate development and implementation of the strategic direction.
Celine Arsenault, Director
international business and financial management. Her vast experience stems from several senior financial executive positions with various public and private companies in renewable energy, insurance, private equity, electricity and telecommunications sectors. In addition to her extensive background, she brings disciplined financial reporting and governance skills to the board, having served on numerous non-profit boards and committees.
Graeme Staley, Director
based on over 20 years of project related experience. Mr. Staley has senior design experience in refrigeration and associated mechanical disciplines. Mr. Staley’s roots started on the family vineyards in Kelowna includes experience in winery sales, assistant wine maker and vineyard design/build.
Donald Ziraldo, Director and Chairman
He and his co-founder were the founders of Inniskillin Winery in Niagara. Ziraldo was granted the first winery license in Ontario after prohibition. His talent and perseverance have helped to make Canadian icewine a globally recognized luxury
name, "Ziraldo“ and continues to be hailed as one of the most important figures in Canadian wine history.
Interior of BC. He is on the Medical advisory board of Atrium Innovations, a division
College of Naturopathic Medicine Environmental Medicine Center of Excellence.
Dan Phaure, COO
renewable, technology and infrastructure sectors. Over his 20 year career, he has consulted and advised numerous companies in North America, Europe and Asia, providing strategic guidance in relation to M&A activity, capital transactions and
he brings a senior leadership skill set to Heritage that will drive the buildout of our current and future opportunities as well as the diligence and execution of our partnership strategy. Mr. Phaure has also served on various boards with exposure to both Canada and US.
Erin Prohaska, CFO
Erin is a dynamic business professional with over 15 years of experience leading finance and operations teams in diverse industries. Prior to joining Heritage, Erin was the CFO of a multinational consulting engineering firm with over 2500
finances and business holdings, including venture capital funds.
Debra Senger, Chief Strategy Officer and Director
Founder and CEO of PhyeinMed Inc., a Health Canada Licensed Producer. Debra has over 30 years public company experience in various capacities Co-Chair of the Board, Director, CEO and CFO functions. She served in several key executive senior managerial roles with a Toronto Venture Exchange company and several of its subsidiaries for over 22 years. She is an Owner, Shareholder, Director of several private companies in Cannabis, Transportation, E-Commerce, Property and Business management.
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Clint Sharples, CEO csharples@heritagecann.com (416) 705-8529 Elizabeth Thomas, Corporate Communications ethomas@heritagecann.com (905) 321-8086
Symbol: CANN Issued & Outstanding Shares: 424,935,157 Canadian Securities Exchange: CSE