CSE: CANN Corporate Presentation April 2019 www.heritagecann.com - - PowerPoint PPT Presentation

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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


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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

  • btained from Heritage.

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.

Dis Discla claim imer er

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“It is not the honor that you take with you, but the heritage you leave behind”

  • Branch Rickey

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HERITAGE AT A GLANCE

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

THE HERITAGE STRATEGY

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HERITAGE AT A GLANCE

Strategically positioned, coast to coast

GROW PRODUCTS OIL MEDICAL IP

British Columbia Ontario

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Global cannabis market

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

Strategy execution

LICENSED PRODUCERS CANADA BRITELIFE KELOWNA, BC

ex extr tracti tion

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assets & key milestones 2018

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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Targeted milestones 2019

  • CannaCure completes 1st harvest and projected to

generate 1st revenues [completed]

  • Voyage scheduled to complete first greenhouse

construction

  • Two extraction machines to be installed in Voyage

[completed]

  • Two extraction machines to be installed in CannaCure

[completed]

  • Expected Processing License and Medical Sales Licence

granted by Health Canada for PhyeinMed [completed]

  • Launch medical cannabis division [completed]

Q1

  • Expected Processing Licence and Medical Sales Licence

granted by Health Canada for CannaCure [completed]

  • Voyage expected to complete 1st harvest and generate 1st

revenues

  • Initial extraction revenues projected
  • Two new distribution channels targeted
  • Begin Phase 2 construction of a dedicated extraction room

at CannaCure

  • Select partners for edibles and infusion products
  • BriteLife to sign partnerships for medical cannabis

education

Q2

  • Expand extraction supply agreements
  • Completion of Phase 2 extraction rooms at CannaCure
  • Construction of additional greenhouses at Voyage
  • Begin Phase 3 CannaCure expansion for edibles and other infusion

products

  • Second site licence applications for both CannaCure and Voyage

Q3

  • Complete Phase 3 expansion at CannaCure
  • First revenues of edibles and infusion products
  • Launch first retail location (subject to Provincial licence application

approval)

  • Expand licence footprints to include sales and research

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

PurEfarma Solutions inc.

  • 5 Years experience | Cannabis and hemp

extraction

  • Bulk production | Bottle production | Vape

cartridges

  • Award winning formulations
  • 4 Vitalis Q90s installed, 2 more on order

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  • Proven expertise in purified cannabis concentrates
  • Product innovation for edibles, extracts and topicals
  • World class cannabis products – Cannabis Cup 2016, 2017,
  • 2018. Winner for vapes and concentrates
  • Catalog of products both recreational and medicinal
  • Proprietary methodologies and IP for premium extraction

manufacturing for C02, hydrocarbon, alcohol

  • Turn-key extraction and manufacturing solutions; contract

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

*

PurEfarma Solutions inc.

An industry leading extractor with scientific approach to processing

The future of cannabiS

BEVERAGES TOPICALS EDIBLES CAPSULES VAPE PENS TINCTURES & CONCENTRATES

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Cannacure corporation

INDOOR GROW

24,260 sq. ft | COMPLETED

ADDITIONAL 16,313 SQ FT (OFFICE SPACE/EXTRACTION – 2ND FLOOR)

EDIBLES, EXTRACTS , TOPICALS & INFUSIONS

  • Licence holder for cultivation, processing and medical sales under the Cannabis Act.
  • Fully constructed state-of-the-art 24,260 square foot area
  • Future Phases will include extraction equipment, expanded grow rooms, and optionality on edibles
  • Toll manufacturing, extraction services, partnerships, co-branding, and joint ventures

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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  • 13 acres under ownership zoned for cannabis production
  • Fully licensed indoor production facility
  • Cultivation, Processing, and Medical Sales Licences authorized under the Cannabis Act
  • Completed Phase 1 greenhouse construction, preparing for Phase 2
  • Additional acres to accommodate 100,000 sq ft of greenhouses
  • Cannabis grow, extraction and manufacturing for formulations designed by BriteLife Sciences.

SEED

FROM SEED TO SALE

CULTIVATE HARVEST EXTRACT PRODUCT SHIP

VOYAGE CANNABIS CORP.

(Formerly PhYeinMed Inc.)

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Britelife sciences Ltd.

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

  • ver 1,200 employees and $80 million in annual revenues. His primary role with

Heritage is to lead the overall corporate development and implementation of the strategic direction.

Celine Arsenault, Director

  • Ms. Arsenault is an experienced financial executive with more than 20 years’ in

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

  • Mr. Staley provides the technical direction and execution of the team’s strategies

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

  • Mr. Ziraldo is a historic Canadian winemaker and a Member of the Order of Canada.

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

  • brand. Ziraldo built his own brand of icewine and Riesling table wines under his

name, "Ziraldo“ and continues to be hailed as one of the most important figures in Canadian wine history.

  • Dr. Chris Spooner, Chief Science Officer
  • Dr. Spooner has over 20 years of clinical and business experience. He operates one
  • f the largest integrative naturopathic care clinics in the Okanagan and Southern

Interior of BC. He is on the Medical advisory board of Atrium Innovations, a division

  • f Nestlé Health Sciences and works in an advisory capacity for Kisameet Glacial
  • Clay. He is post-doctoral Fellow in Environmental Medicine at the Southwest

College of Naturopathic Medicine Environmental Medicine Center of Excellence.

Dan Phaure, COO

  • Mr. Phaure has held key leadership roles with a number of companies within the

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

  • perational changes. As a result of his corporate and capital markets background,

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

  • employees. Further, Erin has managed and advised notable Family Offices on their

finances and business holdings, including venture capital funds.

Management & board of Directors

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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Co Contact ct Infor

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Clint Sharples, CEO csharples@heritagecann.com (416) 705-8529 Elizabeth Thomas, Corporate Communications ethomas@heritagecann.com (905) 321-8086

Company ny Infor

  • rma

mation

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Symbol: CANN Issued & Outstanding Shares: 424,935,157 Canadian Securities Exchange: CSE