Everest BioPharma International Inc. Investor Presentation. June - - PowerPoint PPT Presentation

Everest BioPharma International Inc.

Investor Presentation. June 2020.

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The Company

Everest BioPharma In International In Inc.

“We have the COR and we are rolling with completing our build out by October 2020! We have our team in place, our premises, ready to use the best cutting- edge organic extraction technology. With

• ur tolling service agreements executed,

we will be in EBITDA Q4 2020.” –

Nigel Boa

• ast

t Presid esident t & CEO (C (Co

• Foun
• under)

r)

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Everest is a private company that received its Certificate of Readiness (COR) on April 8, 2019 And will complete the build out by Q4 2020.

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“Our vision is to become an internationally trusted organic cannabis extraction, formulation & product development company.”- Rob

• b Ha
• Hatch. COO

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The Company

Based in Kelowna B.C

Tightly held, private company

The Team

Highly skilled; with an experienced analytical chemist

COR

Received on April 8,

• 2019. For a Standard

Processing Licence

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Our Investment Objectives

For Shareholders…

Dividends & Long- term returns

Through…

Capital Appreciation

By Building…

& operating a licensed cannabis processing facility

That will…

Serve the extended cannabis value chain

For Shareholders…

Provide a valuable return ROI with dividends and exit

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The Certificate of Readiness (COR)

Approved

Everest is approved to build out its Kelowna processing facility

Premise Processing Licence

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Buildout near completion, ready in Q3 2020 Full processing licence granted in Q4 2020

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The Standard Processing Licence will allow

Everest to sell tolling services to existing & new licence holders in 2020. Import & Export CBD; and trade within a global network. Everest to create formulations of medical CBD/ THC to meet patients’ needs. Everest to sell white labelling services to Big Pharma clients in 2021. Everest to acquire cannabis & CBD for processing into value added products. Everest will service the valuable edibles market.

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Our Extraction Facility

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• Based in Kelowna, BC
• Property secured and a commercial

long-term lease signed

• The company has selected a project

manager and an engineering team to complete the internal build out according to Health Canada’s GMP

• Approximately 2,000 Sq. FT & will have

a processing capacity of 163,000 Kgs of Biomass per annum

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Canadian Market Opportunity

Current Market

• Domestic production & sales of medical cannabis within Canada; supplied from a licenced producer to

authorized patients

• Sale of processing and extraction services to micro cultivators
• Importing CBD from USA for medical products for sale in Canada
• Covid-19 pandemic see Canadian cannabis sales increase 100% (CTV News)

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Future Market

Predic ictions s by y Hea Healt lth Cana Canada:

• 2022

2022: Industry revenues predicted to be $22B

• 2024

2024: 450,000 registered patients with annual revenues of more than $1.3 billion

• Adult use market predicted at 600,000 Kgs per annum

Oth Other Predic ictions:

• Market will be worth more than $5B in one year (Dundee Capital Markets analyst; Aaron Sulz)
• Based on Colorado & Oregon Medical models & projections by industry analysts: number of registered patients will be

700,000 in 2021

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• Everest intends to take full advantage of Health Canada’s

am amendment to

• sch

schedule fou

• ur of
• f th

the Can annabis Act Act in in October 20 2019 19

• The three new classes will be defined as;
• Edib

ibles: 1.6B or 59% edibles, infused beverages $529M 37%

• Can

annabis is Ext xtracts: concentrates ($140M), tinctures (($116M), capsules ($114M) and;

• Can

annabis is Top

• picals

ls: intended for use on external body surfaces($174M 53%)

The New Canadian Cannabis Market

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The Business Plan

“Our mission is to sell our product &

• rganic services at the highest price, with

consistently high quality.”

• Nig

igel l Boas

• ast Presi

esident & CEO

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COR received Internal build

• ut

commenced Partial Internal buildout completed Buildout completed Evidence package sent Processing, sales and medical licence granted Extraction services commence EBITDA Positive cash flow

The 2019/2020 Rollout

April il 2019 September 2019 March 2020 Oct ctober 2020 September 2020 De December 2020

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What Everest Will Do

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Tin inctu ctures, Ex Extracts ,

, Be

Bever erages Whit ite La Labell llin

• ing. Prop
• prie

ietary valu lue- added ed prod

• ducts

Processin ing, Extraction &

• th
• ther Ser

ervices Liv Live e ros

• sin

in, Kie Kief, fu full ll spect ectrum bubble le hash, , THC HCA is isola

• late, hash

rosin Ba Badder, sauce ce & dia iamonds

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Everest extraction Services; Q4 2020

• Everest intends to pursue an organic

tolling revenue service model in Q4 2020

• This will obviate $2M or more in working

capital that would otherwise be used to purchase raw material

• Everest is successfully soliciting tolling/

processing contracts

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Extr xtract t Servi vices Per Day ($ ($1/ / gr gram)

Capacity (1x - 8 hour shift) 300 Lbs. 136 Kgs. Tolling service fee <$1 Gm $136,0 ,000

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Cutting-edge Ice Water Extraction Technology

The WT 30 300 0 Ice Ice Water Trich richome Iso Isolation System

Everest focuses mainly on ice water extraction to produce pure hash. This also creates significant product throughput; rated at 1000

• lbs. a day with the lowest capital and operational costs of any

extraction equipment today. Once extracted the trichomes are dried and can then be further processed or can be used without any additional processing when manufacturing edibles as cannabinoids are oil soluble.

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Extraction

Everest’s Services

Everest’s Service Fees

• 1. Hash
• 2. Refined

Oil

• 3. Organic

White Labelling

Processing from flower to full spectrum bubble hash, live rosin, hash rosin badder, Processing from hash to various refined

• ils & tinctures

Formulation and product development of hash & oils

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Extraction

Everest’s Organic Extraction Process Wet, frozen or dried Cannabis Agitation separates trichomes into hash Oil Refinement

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Solvent less hash, rosin & live resin

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Bubble Hash, Kief Derivative Products

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CBD Derivative Medical Products

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Everest’s Going Organic!

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“We will be one of

f th the fir first t Canadian

cannabis extraction companies that will be

• rganically certified. This meets the ground

swell of demand for organically certified products & services.” –Nigel Boas

• ast. Presid

sident & CEO

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Everest Competitive Advantages

• Everest’s long term sustainable competitive advantage is the
• rganic certification of its products & services to meet high

demand in this market segment

• Everest has minor debt on its balance sheet; allowing

Everest an early break-even with corresponding larger EBITDA profits

• Everest is small, adroit & cost efficient with a large

production capacity; nearly equal to our larger competitors

• Everest will use off take agreements from 89 Canadian

Cultivation LPs without processing licenses to process raw material & flower

• Everest will take early advantage of servicing the organic

edibles markets.

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Overview of Health Canada’s Cannabis Licence Holders

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Summary of Health Canada’s Cannabis Licence Holders Information Taken & Analysed from Health Canada’s Website, as of March 2020

Imp Important Not

• te:

Companies under the category, “ Processing & Cultivation Licence Holders” are companies whose core business is cultivation an and not not pr process

• ssing. The

hese com

• mpanies ori
• riginally pl

planned for

• r limited extr

traction capacities for

• r pr

proc

• cessin

ing the heir cannabis is cr crop

• ps

s an and not not spar spare cap apacity for

• r an

an ext xternal cl clie ient base base. He Head-to to-head com

• mpeti

titors ar are e com

• mpanies that Ever

erest t con

• nsid

iders their ir main ain, cur current com

• mpetitors not

not inc ncluding the he 7 7 Micro Processin ing Li License ses with th a a leg egal capacity of

• f 600k

600kg/annum. * * The he 89 89 St Stand al alon

• ne cult

cultivatio ions licenses com

• mpris

ise 44 44 Micro and and 41 41 St Standard Li Lice censes.

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Proce cessing & Culti ltivati tion Lice icence Hold lders Stand-alone Culti ltivati tion Lice icences Head-to to-head competi titors R& R&D and analyti ytical la lab testin ting lice licence hold lders 132 132 89* 12 32

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Sample of Head-to-Head Competitors

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Co Company Production Ca Capacity (p (per annum in ‘000s) Market t Ca Cap (Ju (June 9, , 2020) 2020)

Vale lens Gr GroWorks 240 Kgs $321M MediP iPharm Labs 150/250* Kgs $247M Ra Radie ient Tec echnologie ies 76/274* Kgs $47M Neptune Wel elln lness 30/200* Kgs $385M Holl Hollyweed Man anufacturing & & Extr tract cts In Inc. Unknown N/A-private company Gr Greenleaf Prod

• ductions In

Inc Unknown N/A-private company Purile leaf Br Brands Cor Corporation 400 Kgs N/A-private company Everest BioPharma Int’l. Inc 163Kgs N/A-private company

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2019 Achievements

• COR Received from Health Canada (April)
• Mechanical Engineering and Electrical

designs complete& filed with the city

• Partial Internal buildout completed

(March 2020)

• Website developed and published
• Business plan completed
• New Investors
• QAP employed

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2020 Achievements/ Plans

• Health Canada SOPs written up
• Complete build out (Q3 2020)
• Evidence Package to be sent to Health

Canada (Q3 2020)

• Processing & granted (Q3 2020)
• Sales Licence & Tolling extraction service

revenues earned (Q4 2020)

• Operations “Certified Organic” (Q4 2020)
• Production anticipated to double to 800
• lbs. a day (Q1 2021)

Corporate

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The Everest Team

Nigel Boast President & CEO

• Director & Co-founder of Everest
• Canadian Citizen and Kelowna resident
• Qualifications: BSc. (Biochemistry), LLB & MBA; Australian

Graduate School of Management (UNSW)

• British Commonwealth Attorney and Trade Mark attorney
• Qualifications & Certifications in Canadian Food Safety &

Enhancement Program BCIT & HACCP; USA CBD Industry Association : Certified Cannabinoid Extraction Certification, CBD Consultant Certification.

• President & CEO of Growth West Finance; a company that

specialises in consulting to the Canadian Cannabis Industry (licencing, regulatory compliance & business plans for funding)

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The Everest Team

Robert Hatch COO

• Director & Co-founder of Everest
• Resident of Kelowna
• Qualifications: BSc. (Hons) Technology (Major) & Marketing

(Minor); from University of Central Lancashire, Preston, UK

• Work Experience: Military Service in Royal Airforce, Supply

Squadron, Logistics, Manual and (early) computerized stock control systems; in the UK & Germany (past 5 years)

• Previously: Senior Inventory Manager Specialist for British

Aerospace (Now BAE Systems), Trainer to Royal Saudi Airforce

• personal. He acquired and sold a successful hotel chain in the

UK & then ran several business culminating with several condominium rental properties in Big White.

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The Everest Team

• A Bachelor of Science-Analytical Chemistry graduate from

UBC and who lives locally.

• Previous work experience:
• Many years of analytical chemistry experience in

managing laboratory staff in the natural products industry.

• Worked for Factors Laboratories Ltd. A company based

locally in Kelowna, B.C., a leading manufacturer of vitamins and health food supplements.

• Here he worked with strict deadlines in the quality

control laboratory, chemically analyzing raw materials and finished products.

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Braden Job. Analytical Chemist & Quality Assurance Person

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Everest’s Investment Highlights:

An ever-growing organic market Lowest Production Costs in Canada

Leading edge 2020 organic based water and dry extraction technology; product throughput at 800 Lbs/day. Lowest variable and fixed costs in Canada.

First Mover Advantage

Only one of the 12 independent stand-alone extraction licences; after grant.

Tolling Service Contracts

We will have tolling service contracts lined up with multiple different LP’s

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Solventless Products & their Derivatives

Everest will ill be uniq iquely ly pos

• siti

itioned to

• prod
• duce and sell

ll a solv

• lventle

less range of

• f prod
• ducts such

ch as kie ief, fu full ll spect ectrum bubble le hash, , hash ros

• sin wet

t badder er, liv live e rosin, and THC HC is isola

• late.

Organically Certified

Everest intends to be organically certified to produce pristine, high-quality organic products.

Product Development

Everest will offer a wide array of product formulation (into tinctures, capsules, concentrates, vapes, topicals, beverages).

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Nigel Boast President & CEO 778-581-4003 nboast@everestbiopharma.ca

https://everestbiopharma.ca

Contact Us

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