Experience is growing INVESTOR Q1 PRESENTATION 2018 INDIVA - - PowerPoint PPT Presentation

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INDIVA INVESTOR PRESENTATION

2018

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• ur

Experience

is growing

INVESTOR PRESENTATION

Q1

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INDIVA INVESTOR PRESENTATION

2018

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The information contained herein, together with any amendments or supplements and any other information that may be furnished by the company, includes forward-looking information. Such information is based on assumptions as to future events that are inherently uncertain and subjective. The company makes no representation or warranty as to the attainability of such assumptions, including the completion of a fjnancing or as to whether future results will occur as projected. It must be recognized that the projections of the company’s future performance are necessarily subject to a high degree of uncertainty, that actual results can be expected to vary from the results projected and that such variances may be material and adverse. Prospective investors are expected to conduct their own investigation with regard to the company and its prospects. This presentation does not constitute an offer to sell or a solicitation of an offer to buy any security.

Forward Looking Statement

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Table of Contents

EXECUTIVE SUMMARY

Executive Summary _____________________________________ 5 Timeline: Sales and Expansion ____________________________ 6

INVESTING IN CANNABIS

Growing Demand for Medical Cannabis ______________________ 8 Recreational Cannabis Market _____________________________ 9 Insuffjcient Supply of Cannabis ____________________________ 10

INDIVA ADVANTAGES

Talented and Experienced Team ___________________________ 12 Our High Quality Products ________________________________ 13 Our Unique Positioning ___________________________________ 14 Our Corporate Identity ___________________________________ 15 Customer Acquisition Strategies ____________________________ 16

LONDON FACILITY

Production Facility ______________________________________ 18 Production Facility Layout ________________________________ 19 Production Facility Pictures _______________________________ 20 Domestic and International Growth: The Path to 40 Million Grams _ 23

PRODUCTION AND FINANCIAL PROJECTIONS

Operating Expenses _____________________________________ 25 Capex/Use of Funds _____________________________________ 26 Comparables ___________________________________________ 27

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EXECUTIVE summary

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NEAR TERM CATALYSTS: Fully funded expansion to 40,000 square feet underway: Completion end of 2018 Cultivation in progress: First 2 batches to be harvested Q1 2018 Sales license expected Q2 2018 STRONG INDUSTRY FUNDAMENTALS:

$

65%+ margin product, recurring revenue Market demand growing exponentially with introduction of $7 Billion recreational market by July 2018 Current supply Experienced grower with award winning strains and loyal, installed 1,000+ patient base Experienced management team, passionate about helping people and protecting investors

Executive Summary

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Annual Production: 2.5 to 3 million grams plus oils

Timeline: Sales and Expansion

Preliminary Screening Enhanced Screening Security Clearance Review Pre-License Inspection Cultivation License Cultivation Begins Sales License

Application Process Q2 2017: Construction complete (Phase 1) July 2017: Health Canada issues license to cultivate July 2017: Design for facility expansion begins September 2017: Cultivation begins Q1 2018: Expansion to 40,000 square feet begins Q2 2018: Harvests tested, full ACMPR license expected Q3 2018: Sales begin Q4 2018: Facility expansion complete 2019: Full production capacity reached at London facility

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INVESTING in cannabis

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Growing Demand for Medical Cannabis

Growth rate of medicinal cannabis users is higher than expected

Health Canada projected 450,000 patients will be using cannabis at $1.3 billion annual value by 2024 At September 2017, there were 235,621 patients registered, which is a 17% quarter-over-quarter increase and approximately equal to Health Canada’s projection for 2022

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Registered Patients 450,000 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 Actual Registered Patients Health Canada’s Projected Registered Patients

September 2017: registered patients exceeds Health Canada’s 2021 projection

Potential Market

Multiple Sclerosis Epilepsy Cancer Low BMI Severe Pain Risk of Depression Migraine Headaches Insomnia Anxiety Arthritis Hypertension Life Stress (Elevated) 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000

10,433 physicians have

authorized patient access to medicinal marijuana

235,621 registered

patients in total to date

11,000 (approx.) new

patients per month (~5% month-over-month growth)

Source: Health Canada, Statistics Canada, Canadian Community Health Survey, medicalmarijuana.ca

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Recreational Cannabis Market

Source: Deloitte, PBO

Size and Makeup of the Canadian Recreational Market

According to the Deloitte Survey, the size

• f the Canadian recreational cannabis

market could be as much as $8.7 billion per year, or similar to the size of the Canadian spirit market.

Once Less Than Once a Month 1-3 Times per Month At Least Once a Week Daily 450 400 350 300 250 200 150 100 50 1,800 1,600 1,400 1,200 1,000 800 600 400 200 Thousands Consumption (LHS) Metric Tons Users (RHS)

Annual Cannabis Users and Consumption

Aged 15 and Over, Canada excluding Territories, Mid-point Estimates, 2018

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Insuffjcient Supply of Cannabis

Source: Health Canada; *Assumes 1 gram/day/patient

Current Production

• 88 existing LPs
• Current production <

84 insuffjcient to meet demand

Health Canada Market Data from Q3 2017

• Dry fmowers: 5.9 mm grams sold, 29.3mm grams in inventory
• Oil: 7.7 mm grams sold, 8.6mm grams inventory
• 235,621 registered clients at September 30, 2017
• Prices range from $1.75/gram to $15/gram

Deloitte Survey and PBO Report

• Supplying even the low end of the estimate of the

recreational cannabis market would require the production

• f over 700mm of cannabis annually

YT 3 1 2 2 4 NT AB SK MB QC NL PE NS NB NU 48 ON 18 BC 4 6

Number of licences issued by province

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INDIVA advantages

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FINANCE & CORPORATE DEVELOPMENT

Niel Marotta President & CEO, Director, Founder

• Managed over $1 Billion across several

industries

• Involved in capital raises and M&A

transactions exceeding $1 Billion LEGAL & BUSINESS DEVELOPMENT

Koby Smutylo COO, General Counsel,

Director, Founder

• Koby is a seasoned lawyer and has acted as

counsel to private and public companies

• Helped fjnance and license an ACMPR LP

FINANCE

Jennifer Welsh Chief Financial Offjcer

• Managed a global fjnance team for eight years

as Corporate Controller of a TSX listed company

• Former consultant for a publicly traded LP

CREATIVE

Tom Borowicz Marketing & Branding

• Over 30 years of combined experience in

marketing, branding, print/digital advertising and design with Fortune 500 companies REGULATORY & QA

John McCluskey Vice President of Regulatory

Affairs & Quality Assurance

• 15+ years of Quality Assurance experience
• Acted as a consultant on over 30 ACMPR

applications PRODUCTION AND PATIENT CARE

Pete Young Master Grower

• Grow Team: 15+ years of experience producing

medicinal strains for hundreds

• f patients
• International recognition and multiple

product awards QUALITY ASSURANCE & SCIENCE

Daniel Zavitz PHD

• Over 30 years experience in research, lab

compliance and QA SECURITY

David Hyde Security Consultant

• Leading expert in ACMPR security compliance

PROJECT DEVELOPMENT

Jose Laurentino Project Management

• 20+ years in agricultural project development

including indoor and greenhouse expertise

Talented and Experienced Team

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INDIVA’s strains were developed over several decades of working compassionately with individuals in need. Our grow team is led by a “master grower” that is recognized in Canada and internationally as a leader in the fjeld of cannabis cultivation.

Our High Quality Products

High-quality medical and recreational cannabis products

Edibles Available When Legal

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Our Unique Positioning

INDIVA Is Inclusive

INDIVA will capture the market at the intersection of medical and recreational cannabis markets.

INDIVA Is Experience

Our master grower has mastered cannabis cultivation over decades of experience and experimentation with different growing

• techniques. His expertise is held up to strict

standards enforced by John McCluskey, a Quality Assurance expert with 20+ years of experience in the pharmaceutical industry. The INDIVA facility is a manifestation of both industries.

MMAR REGULATORY SYSTEM ACMPR REGULATORY SYSTEM MEDICINAL CANNABIS RECREATIONAL CANNABIS

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Our Corporate Identity

The ‘V’ symbol embodies INDIVA’s core vision of promoting a peaceful, healthy and happy lifestyle and it stands for the victory of cannabis legalization. At the same time the leaves represent DRY FLOWERS IND are the fjrst three letters of the word INDICA IVA are the last three letters of the word SATIVA The drop represents CANNABIS OIL The word INDIVA is a combination of Indica and Sativa, two types of cannabis. The third type is Hybrid which is derived, like our logo, from elements of both, Indica and Sativa.

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Compassion Community Relations

• Established relations with prominent and experienced members
• f the compassion community
• We will offer familiar strains and an overall respectful and familiar

patient experience

Medical Community Outreach & Education

• Developed with help from a professional medicinal cannabis

liaison trained to educate doctors regarding medicinal cannabis and by compassion society staff with years of experience with real patients

• Launching in 2018 and bringing medical professionals the

information they need to make informed decisions about medicinal cannabis and how it fjts into patient treatments

Marketing

• Website, blog and social media campaigns launched
• Packaging developed and focus group tested
• Social media platform up and running
• Innovative PR campaign to build awareness

Customer Acquisition Strategies

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LONDON facility

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• 10,000 sq. ft. retrofjt complete
• 8,000 sq. ft. production space
• 30,000 sq. ft. expansion planned 2018
• Adds 21,600 sq. ft. of production space

Production Facility

40,000 square feet Annual production capacity (dry fmowers): 2,500 - 3,000 kgs 30 Year Lease

with right of fjrst refusal

5 Minutes

from Highway 401

Approved

by local fjre, police and municipal authorities

Ample Power & Water

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Production Facility Layout

Pump Veg Flower Str/Rec Dry Pack Admin Trim Mother Oil Dry 2 Trim 2 Mother 2

Mother Room Oil Extraction Drying Room Trim Room Packaging Drying Room Trim Room Flower Room Mother Room Veg Room Storage/Receiving Pump Admin / Call Center / QA Planned Expansion (Flower Rooms)

Flower Flower Flower Flower Flower Flower Flower Flower Flower Flower Flower Flower Flower Flower Flower

Existing Fenceline

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Production Facility Pictures

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Production Facility Pictures

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Production Facility Pictures

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Domestic Expansion Potential:

• London: future sites identifjed for large scale operation (50 to 100 acres +)
• Eastern Ontario: 7 acre site identifjed in Cornwall ($2mm funding available from
• wner); 18 acre site identifjed in the township of Nation with support from local authorities

Corporate Development

• International expansion: INDIVA has signed a cannabis supply agreement with a Swiss

manufacturer; potential platform for international distribution in Europe and South America

• Retail distribution: INDIVA has established relationships with large retail pharmacy and

health food chains

• Licensing: INDIVA has initiated discussions with American edible marijuana product brands

Domestic and International Growth: The Path to 40+ Million Grams

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Use of Funds and Cost breakdown, London Ontario

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Operating Expenses

Employees (Estimated)

Full production: 50

Senior management (4) Accounting (4) Gardening (10) Security/IT (2) Distribution (5) Customer Service (12) Sales (3) QA (2) Marketing (5)

Key Expenses:

• Cash costs: Power, light bulbs,

labour, packaging, shipping, soil & nutrients, composting, QA testing and contingency (20%)

• G&A: Management, accounting

staff/admin, customer service/call center, security, distribution team

• Rent, insurance & security
• Software

Power Bulbs Labour Shipping Packaging Materials Contingency

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Building Retrofjt and Equipment

• HVAC, security, fence, electrical
• Production facility and equipment
• HID lights, carbon fjlters
• Video surveillance, archiving

Working Capital and Contingency

• Inventory build, G&A

Total Proceeds

$10.8mm

$25.1mm

$35.9mm Capex/Use

• f Funds

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Market data as of January 24, 2018

INDIVA Limited

Valuations of Canadian Public Companies

Capitalization: Basic Shares Outstanding:

......78mm

Warrants:

......................... 25.5mm

Options:

..............................3.6mm

Convert:

........................... 10.0mm

Fully Diluted Shares Outstanding: ......................... 117.1mm Balance Sheet (PF January 24, 2018): Cash: ......................................... $34mm Convertible Debenture: ........ $7.5mm

Market Cap (C$mm) $6,924mm $6,582mm $3,417mm $2,258mm $1,672mm $1,086mm $1,073mm $873mm $639mm $619mm $576mm $228mm $198mm $191mm $86mm

LICENSED PRODUCER

Canopy Growth (WEED) Aurora Cannabis (ACB) Aphria (APH) Medreleaf (LEAF) Cronos Group (MJN) CannTrust (TRST) CanniMed Therapeutics (CMED) Emerald Health (EMH) Organigram (OGI) Hydropothecary (THCX) Supreme Pharmaceuticals (FIRE) WeedMD (WMD) Delta9 (NINE) Emblem (EMC) INDIVA (NDVA)

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consideration

thank you for your

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