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CSE: MGRO OTC: MGROF Providing Natural, Science-Based Biological - - PowerPoint PPT Presentation

CSE: MGRO OTC: MGROF Providing Natural, Science-Based Biological Solutions for High Value Crops Corporate Presentation February 2020 April 2018 Disclaimer The views expressed herein contain information derived from publicly available


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Providing Natural, Science-Based Biological Solutions for High Value Crops

Corporate Presentation February 2020

April 2018

CSE: MGRO OTC: MGROF

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The views expressed herein contain information derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness or reliability of the information. This Presentation should not be relied upon as a recommendation or forecast by MustGrow Biologics Corp. and it’s wholly owned subsidiary MPT Mustard Products & Technologies Inc. (“MustGrow”). Certain statements contained herein constitute forward-looking statements. The words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "seek", "propose", "estimate", "expect", and similar expressions are intended to identify forward-looking statements. Such statements reflect MustGrow's current views with respect to future events and are subject to certain risks, uncertainties and assumptions (known and unknown). Many factors could cause MustGrow's actual results, performance or achievements to vary from those described herein. Should one or more of these risks or uncertainties materialize, or should assumptions underlying forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, sought, proposed, believed, estimated or expected. MustGrow does not intend, and does not assume any obligation, to update these forward-looking statements, except as required by law. Note that purchasing securities of MustGrow should be considered a risky investment as the securities are speculative in nature and are appropriate only for investors who are prepared to have their money invested for a long period of time and have the capacity to absorb a loss of some or all of their investment. There is no public market for the securities of MustGrow, and one may never develop, therefore investors may find it difficult to resell their securities. The securities referred to in this Presentation have not been and will not be registered under the U.S. Securities Act of 1933 or the securities laws of any other jurisdiction and may not be offered or sold in the United States absent an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act of 1933 and any other applicable securities laws. This Presentation does not constitute an offer to sell, or the solicitation of an offer to buy, the securities, nor shall there be any sale of any of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

Disclaimer

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About MustGrow

MustGrow Biologics Corp. (CSE: MGRO) (OTC: MGROF) is an agriculture bio-tech

company focused on providing natural, science-based biological solutions to replace synthetic chemicals used in high value crops such as fruit & vegetables and cannabis.

  • Global chemistries are being banned or deregistered
  • Consumers are demanding food that is healthy, natural and safe.
  • Producers want to use safe products to protect their crops, but only if they work.
  • 100% owned patented Mustard-Derived technology
  • Natural Bio-Pesticide that acts as a pre-plant treatment for soil borne pests and diseases.
  • Potential to disrupt the existing global Ag pesticide market ~US$65Bn.
  • US F&V fumigation market ~US$360MM.
  • Compared to synthetic chemicals, we can compete on efficacy and potentially on price.
  • Cannabis Cultivation in Canada: Highly regulated; No chemical use
  • 100% owned mustard-derived Bio-Pesticide to treat the soil before its brought into the greenhouse.
  • In-Licensed Bio-Fungicide: CannaPMTM to treat Powdery Mildew.
  • Tight capital structure
  • 36MM shares outstanding with ~14MM free trading.
  • Management and advisors own 27% of total shares.
  • ~C$20MM market cap.

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MustGrow is primarily focused on disrupting the US$65 billion global pesticide market |

Safe and Effective Natural Products

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Key Management, Directors & Advisors

Corey Giasson

President, CEO & Director

  • ~30 years of agriculture experience

with an MBA and B.Sc. Ag Economics from the University of Saskatchewan

  • Previous Co-founder & CEO of

Rallyemont Energy, sold to Husky Energy

  • Previous Vice President, at Anglo

Potash, sold to BHP

  • Previous Manager at PotashCorp

Brian Quigley

Director

  • Co-Founder of Green Sky Strategy
  • 16 years at Altria Group; including CEO of

Altria’s innovation company

4 Mark Hetherington

Scientific & Formulations Advisor

  • Expert Director of Clinical Research in the

Canadian cannabis industry

Colin Bletsky

COO & Director

  • ~30 years of experience in

agriculture

  • Previous Vice President, BioAg at

Novozymes where he was responsible for the BioAg business worldwide

  • Colin holds a Bachelor of Science

in Agriculture from the University

  • f Saskatchewan

Tom Flow

Director

  • Founder & Co-CEO of The Flowr Corporation
  • Previous Co-Founder of MedReleaf (sold for $3.2B)
  • Widely-recognised for cannabis cultivation thought

leadership and expertise`

Jamieson Bondarenko, CFA, CMT

Capital Markets Advisor

  • Current: Advisor to Lexaria Bioscience Corp.,

Chairman of BriaCell Therapeutics Corp.

  • Previous Equity Capital Markets roles with

Eight Capital, Dundee, HSBC

World-class team of agriculture and business professionals

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How Has This Pesticide Not Been Banned?

The pesticide known as chlorpyrifos is both clearly dangerous and in very wide use. It is known to pass easily from mother to fetus and has been linked to a wide range of serious medical problems, including impaired development, Parkinson’s disease and some forms of

  • cancer. That’s not entirely surprising. The chemical was originally developed by Nazis during World War II for use as a nerve gas.
  • - The New York Times; December 17, 2019

Global Chemistries are Being Banned or Deregistered

Bayer says U.S. glyphosate plaintiffs more than double since July

Germany’s Bayer is now facing 42,700 U.S. Plaintiffs blaming its glyphosate-based weedkillers for their cancer, more than twice the tally in July and potentially raising any future settlement.

  • - Reuters; October 30, 2019

France bans crop pesticide metam sodium after people fall ill

The US Environmental Protection Agency (EPA) considers metam sodium a probable human carcinogen … Still, metam sodium is among the most widely used agricultural pesticides in the United States.

  • - Reuters; November 5, 2018

U.S. appeals court orders EPA to ban pesticide said to harm children

Judge Jed Rakoff directed the EPA to ban chlorpyrifos within 60 days, saying the agency failed to counteract scientific evidence that its residue on food causes neurodevelopmental damage to children.

  • - Reuters; August 9, 2018

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MustGrow’s Technology is a Natural Biologic, Not a Chemistry

Safe Harmful Effective Not Effective

Chemistries Biologics

6 Nematode Control Natural Mustard-Derived Disease Control

100% Owned Patented Bio-Pesticide

>110 Independent Trials Organic Certification New Liquid Formulation “Granule Format” is already EPA-approved – Now seeking registration for Liquid Formulation label

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Massive Potential for MustGrow’s Technology

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$18 Billion $15 Billion $25 Billion $2B $12 Billion

Grain Toxins $15B est global loss Non Selective Herbicide $25B global market size Container Fumigation $2B est global market size Bananas – Panama Disease $18B est global loss

  • E. coli, Salmonella & Listeria

$12B est global loss Fruit & Veg Soil Fumigation $856MM est global market size Cannabis Soil Fumigation & Powdery Mildew $200MM est market size (Canada)

$4B

Tobacco Nematode & Disease Fumigation $4B est global loss

MustGrow testing completed and data confirmed MustGrow testing in progress

Source: Globenewire

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Product Pipeline

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Phase of Development

Canna PM - Bio-Fungicide / Cannabis & Hemp Canna MG - Soil Bio-Pesticide / Cannabis & Hemp Terra MG - Soil Bio-Pesticide / Fruit & Vegetables MG 1001 - Bio-Nematicide - Tobacco MG 2001 - Bio-Herbicide - Non Selective MG 3001 - Bio-Pesticide - Toxin Control / Stored Grains MG 4001 - Bio-Fungicide - Club Root / Canola MG 4002 - Bio-Fungicide - Fusarium Wilt TR4 / Bananas MG 3002 - Bio-Pesticide - Broad Acre Soil Pests & Disease MG 4004 -Bio-Fungicide - Ecoli, Salmonella, Listeria MG 3003 - Bio-Pesticide - Fresh Produce

1 2 3 4

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MustGrow’s Value Proposition for Fruit & Vegetable Growers

  • MustGrow’s 1st Generation Granular Technology had only modest market penetration
  • Bulky granular product that was costly to transport.
  • Fruit & vegetable growers prefer application through drip line.
  • MustGrow’s 2nd Generation Liquid Technology has great potential to compete on price

compared to chemistries:

  • 2.5-5.0 gal/acre had 100% control of key soil based fungus.
  • 10% market penetration in the United States (US$504MM) would generate US$50MM in sales.

Source: Globenewire

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US 42% SA 4% EU 37% Africa 3% Asia 14%

Projected Global Fumigation Market

US$1.2B by 2025 (CAGR 4.6%)

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Fruit & Vegetable and Cannabis Growers Have Similar Issues

1 Health Canada website.

Pythium Root Rot Rhizoctonia Fungus

Fusarium (root rot)

Verticillium Wilt Phytophthora Root Rot Sclerotinia Stem Rot Two-Spotted Spider Mite Aphids Fungus Gnats Thrips Hemp Russet Mite

Botrytis (gray mold)

Alternaria Fungus

Powdery Mildew

MustGrow’s natural biologics provide treatment of these pests and diseases

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Nematodes

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MustGrow’s Value Proposition for Cannabis Growers

What is the cost of a lost cannabis crop?

  • The cost of 1 million square feet of lost crop due to powdery mildew is estimated at $400-800

million loss, or $400-800/sf on just one cut1

1 Estimate based on 1 plant per 4sf, 200-400 grams/plant, and $8/g. 2 Estimate based on 20% market penetration on 10,000,000 sf (net producible sf) in Canada and 4.5 cuts/year.

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CannaPMTM CannaMGTM

Treatment for… Powdery Mildew Botrytis (Gray Mold) Fusarium (Root Rot) Cost of Lost Crop $400-800/sf $400-800/sf Revenue per sq ft $3.00/sf $3.00/sf Per Gram $0.015-0.030/g $0.015-0.030/g MustGrow’s Potential 2021 Annual Revenue2 $20 million $20 million

At 20% market penetration in 2021, MustGrow could potentially generate $40 million of revenue per annum.

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Fast-Tracked Development Estimate

Existing Fruit & Veg label with PMRA in Canada and the US EPA

  • With its existing granular label, MustGrow’s mustard-derived technology may be fast-tracked

for application in cannabis under CannaMGTM and the Liquid Technology for F&V under TerraMGTM.

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In-Licenced Mustard Derived Mustard Derived

Estimated Timeline

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

CannaPM Powdery Mildew Product

PMRA submission and review for cannabis cultivation CannaPM product launch in Canada

CannaMG Pre-Plant Soil Treatment

Cannabis label registration & greenhouse testing CannaMG product launch in Canada

Liquid Technology for Fruit & Vegetables - TerraMG

EPA & PMRA submission Fruit & vegetable product launch of TerraMG in Canada & US

2020 2021

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Capital Structure

Warrants include 537,600 warrants underlying Unit Warrants. Debt has no maturity; no interest payable; no scheduled principal payments. Due upon change of control of MustGrow and/or certain revenue milestones.

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CSE: MGRO / OTC: MGROF

Basic Shares Outstanding 36,385,084 Options 2,450,000 Warrants 16,268,461 Fully-Diluted Shares Outstanding 55,103,545 Previous Capital Spent (C$MM) $10.0 Cash Position (C$MM) $3.5 Debt (C$MM) $1.0 Insider Ownership (22%) 8,091,733

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Corey Giasson, President & CEO

coreyg@mustgrow.ca p: 306-717-1128

Thank you

Colin Bletsky, COO

colinb@mustgrow.ca p: 306-241-6095

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