Fall 2017 Investor Presentation Legal Disclaimer & Forward - - PowerPoint PPT Presentation

fall 2017 investor presentation legal disclaimer amp
SMART_READER_LITE
LIVE PREVIEW

Fall 2017 Investor Presentation Legal Disclaimer & Forward - - PowerPoint PPT Presentation

Fall 2017 Investor Presentation Legal Disclaimer & Forward Looking Information CSE: VRT | OTC:VRTHF | FRT:2VP LEGA GAL DISCLAIMER : This document provides a description of Veritas Pharma Inc. (Company or the Company) and its


slide-1
SLIDE 1

Fall 2017 Investor Presentation

slide-2
SLIDE 2

CSE: VRT | OTC:VRTHF | FRT:2VP

Legal Disclaimer & Forward Looking Information

LEGA GAL DISCLAIMER: This document provides a description of Veritas Pharma Inc. (“Company” or the “Company”) and its business. Prospective investors are encouraged to obtain independent legal advice concerning any investment in securities of Company and should not base their decision on whether to invest in Company solely upon the material provided herein. There are no representations or warranties made herein by Company or the agents, if any, of the proposed offering of any securities or debt instruments in the Company (the “Agents”) and investors will only be able to rely on the representations and warranties contained in the subscription agreement to be entered into at the time of sale of the securities. There are certain risks inherent in an investment in the securities of Company that prospective investors should carefully consider before investing in the securities of the Company. This document constitutes an offering

  • f the securities described herein only in those jurisdictions and to those persons where and to whom they may be lawfully offered for

sale, and only by persons permitted to sell these securities. This document is not, and under no circumstances is it to be construed as an advertisement or a public offering of these securities. This document is personal to each offeree and does not constitute an offer to any

  • ther person or to the public generally to subscribe for or otherwise acquire any of the securities referred to herein. No securities

regulatory authority or similar authority has reviewed or in any way passed upon the presentation or the merits of these securities and any representation to the contrary is an offence. This document has been prepared for information purposes only in order to assist prospective investors in evaluating an investment in Company . No representation, warranty or undertaking, express or implied, is made and no responsibility or liability is accepted by the Agents as to the accuracy or completeness of the information contained herein or any

  • ther information, representation, warranty or undertaking, express or implied, made by Company in connection with the offering of

securities described herein. FORWARD LOOKING G INFORMATI TION: This corporate document contains statements that, to the extent that they are not historical fact, may constitute “forward-looking statements” within the meaning of applicable securities legislation. Any statements regarding future plans, objectives or economic performance of Company , or the assumption underlying any of the foregoing, constitute forward- looking information. This corporate document may use words such as “may”, “would”, “could”, “will”, “likely”, “except”, “anticipate”, “believe”, “intend”, “plan”, “forecast”, “project”, “estimate”, “outlook”, and other similar expressions to identify forward-looking statements. Actual results, performance or achievement could differ materially from that expressed in, or implied by, any forward-looking statements in this corporate document, and, accordingly, investors should not place undue reliance on any such forward-looking statements. Forward- looking information involves significant risks, assumptions, uncertainties and other factors that may cause actual future results or anticipated events to differ materially from those expressed or implied in any forward-looking statements and accordingly, should not be read as guarantees of future performance or results. Any forward-looking statements speak only as of the date on which such statement is made and each of Company and the Agents disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless required by applicable law. New factors emerge from time to time, and it is not possible for management to predict all of such factors and to assess in advance the impact of each such factors.

2

slide-3
SLIDE 3

CSE:VRT | OTC:VRTHF | FRT:2VP

Presentation Content

4 About Veritas 7 The Opportunity 8 Veritas’ Mission 9 Veritas’ R&D Approach 12

Targeted Medical Conditions

15 Veritas’ Team 18 Scientific Team (CTL) 21

Sechelt Organic Marijuana

22 Research Status Update 24 Future Steps & Timelines 13 IP Strategy 26 Financials

3

slide-4
SLIDE 4

CSE:VRT | OTC:VRTHF | FRT:2VP

An emergi ging g pharmaceutical company developing g effective cannabis therapies that targe get a variety of disease conditions such acute & chronic pain, while providing g con conclu clusive sive evid vidence ce as as to to the the efficacy fficacy of

  • f the

these se tre treatm atments ts to to doctors

  • ctors an

and patie patients. ts.

  • A Vancouver based company tri-listed on the Canadian, German and American

stock exchanges.

  • Veritas has established a separate research and development arm, as well as, a

prospective cannabis production facility through its acquisition and partnerships with Cannevert Therapeutics Ltd. and Sechelt Organic Marijuana Inc.

4

slide-5
SLIDE 5

CSE:VRT | OTC:VRTHF | FRT:2VP Develop the most effective proprietary cannabis strains for specific disease conditions (i.e., Pain, etc.). Provide doctors and patients with conclusive science supporting the efficacy of the treatments. Targeting disease conditions that Veritas will patent & commercialize.

Unique Approach About Veritas Achievements

One of the leading Canadian companies conducting cannabis research, with Canada being 1 of only 3 countries that are legally allowed to research cannabis. Through its strategic acquisitions and partnerships, Veritas has assembled a highly experienced management team and a leading team of scientists and argologists. Veritas has already discovered several strains that are being scheduled for human trials within the next few months. These strains were identified through vigorous chemical and animal studies. The company is in the last review stage of receiving its ACMPR license with Health Canada.

5

slide-6
SLIDE 6

CSE: VRT | OTC:VRTHF | FRT:2VP

Strategic Partnerships & Acquisitions

Research & Deve velopment: CTL is the exclusive research arm of Veritas and is located at the University of British Columbia. Veritas is lead by a team of veteran scientists with a track record of success in drug development. CTL is a private company funded by Veritas through a staged acquisition process. Veritas recently acquired an 80% stake in CTL with an

  • ption to acquire the remaining

20%.

Cannevert Therapeutics Ltd. (CTL) Marapharm Ventures Inc.

Pr Produ

  • duct

ction ion: SOM was formed with the sole purpose of becoming a licensed producer under Canada’s Access to Cannabis for Medical Purposes (ACMPR) regulations. SOM’s submitted its ACMPR application with Health Canada in July 2014 and was recently notified that it has entered the last review stage. Veritas has entered into a definitive agreement to acquire 100% of SOM, subject to SOM

  • btaining its ACMPR license.

Stra Strate tegic A ic Allia lliance nce: Marapharm is a public company, primarily investing in the medical and recreational cannabis space with

  • perations in both Canada and

United States.

Highlights:

  • Opening 3 dispensaries in Las

Vegas.

  • Setting up analytical testing

facilities for Washington State growing operations.

  • Advantage: circ. 300,000

square feet of growing potential.

Sechelt Organic Marijuana Inc. (SOM)

6

slide-7
SLIDE 7

CSE: VRT | OTC:VRTHF | FRT:2VP

The Opportunity

Many Physicians’ Prospective:

  • “Marijuana is NOT a prescription medicine!”
  • “I am RELUCTANT or UNWILLING to

prescribe marijuana without knowing the risks, benefits, potential complications and drug interactions!”

  • “I have NO TIME to properly assess,

prescribe, monitor and document these patients!”

  • “There is no real evidence backing up

claimed efficacies of marijuana strains.”

Two significant concerns have not been addressed thus far:

  • There is little or no scientific evidence that supports therapeutic benefit claims of many

“medicinal” cannabis strains.

  • There is limited confidence in observing consistent therapeutic benefits derived from one

batch of a cannabis to another.

7

slide-8
SLIDE 8

CSE: VRT | OTC:VRTHF | FRT:2VP

Veritas Mission

  • Discover/engineer new cannabis cultivars

addressing SPECIFIC disease conditions.

  • Develop cultivars to establish STANDARDS that

can be clinically evaluated.

  • To be the leader in PRESCRIPTION cannabis

products and therapies, i.e., developing a reliable and trustworthy BRAND.

  • Make Canada a world LEADER in cannabis

research and product development.

  • Provide comprehensive scientific evidence for

doctors and patients so they can prescribe and use these strains confidently.

8

slide-9
SLIDE 9

CSE: VRT | OTC:VRTHF | FRT:2VP

R&D Approach

1. Chemically profile different cannabis cultivars. 2. Pharmacologically profile those cultivars in the search for disease specific strains. 3. Perform clinical trials to prove clinical utility NOT follow the traditional pharmaceutical development pathway to get to market (i.e., 10+ years). 4. Conduct basic safety and efficacy profiling of cultivars. 5. Immediately market clinically effective cultivars as prescription medicines.

9

slide-10
SLIDE 10

CSE: VRT | OTC:VRTHF | FRT:2VP

R&D Approach

Tra Traditiona itional P l Pha harma rma A Approa pproach ch Selective ve Approach

This approach involves a shorter and less costly process as compared to traditional pharmaceutical drug discovery process since cannabis is already considered a safe substance already on the market

Diagr Diagram S am Sou

  • urce:

ce: Nature Reviews | Drug Discovery 10

slide-11
SLIDE 11

CSE: VRT | OTC:VRTHF | FRT:2VP

Research Advantages

  • Veritas has access to one of only a few academic groups in Canada and the World using

classical pharmacological research techniques to study cannabis and Canada is one of

  • nly three countries that are legally allowed to perform research on cannabis.
  • Veritas’ product development process benefits from reduced costs and time, as its

approach is not required to follow the traditional FDA drug development process.

  • Veritas’ research process is cost effective and streamlined through the following:

– Res Resear earch Gr ch Gran ants: Through Cannevert, Veritas has access to and participates in government grant programmes (e.g., MITACS, IRAP, CIHR) and Scientific Research and Experimental Development (SR&ED) tax credits; where a minimum 1:1 matching is expected. – Redu Reduced Facilit ced Facility C y Cos

  • sts: Access to UBC facilities and academic personnel

– Access to dive verse mariju juana strains

11

slide-12
SLIDE 12

CSE: VRT | OTC:VRTHF | FRT:2VP

Targeted Medical Conditions

1. 1. Pain Pain

  • Acute & chronic, e.g., cancer pain, arthritis
  • Present in 50-90% of cancer patients; Global drug sales ~ USD$2.9b (2015); 43% of the opioids

marketed for this use1

2. Emesis (Nausea, Vomiting)

  • Chemotherapy Induced Nausea & Vomiting2 Present in 70-80% of ‘chemo’ patients; No current

drug gives excellent control; Global market - USD$1.3b (2013); estimated USD$1.9b by 2020

3. Behaviourial/psychiatric disorders

  • PTSD
  • Stress & anxiety

4. Inflammatory disease

  • Asthma
  • Chronic Obstructive Pulmonary Disease (COPD)

5. Glaucoma

SOURCES: : (1) Amadee + Company (2015) - “Prescription Pain Drugs Including Opioid, Anticonvulsant, Injectable/Inhaled, Topical/Transdermal, Medical Marijuana…”; (2) Transparency Market Research (2015) - “CINV Existing and Pipeline Drugs Market – Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2014 – 2020”

12

slide-13
SLIDE 13

CSE: VRT | OTC:VRTHF | FRT:2VP

Intellectual Property Strategy

Ensure intellectual and market protection:

  • Protect cultivars and their use as

fully as possible.

  • Patent plant and cultivars including

their unique cannabinoid profiles.

  • Patent the specific uses of cultivars

for specific therapeutic treatments.

“Yes, You Can Patent Pot”

13

slide-14
SLIDE 14

CSE: VRT | OTC:VRTHF | FRT:2VP

Intellectual Property Strategy

  • Examples of plant cultivar protection include:

– Plant Breeders’ Rights Act in Canada1 – Patent Act protection for fully described and validated new uses of specific cultivars for specific medical conditions, especially for those strains previously recognized as being effective, or with new strains

  • f cannabis obtained by genetic engineering2
  • Expanding IP strategy to world-wide patents

Sources: : (1) http://www.inspection.gc.ca/english/plaveg/pbrpov/cropreport/gsce.shtml (2) (2) OYEN WIGGS GREEN & MUTALA LLP, Vancouver, Canada

14

slide-15
SLIDE 15

CSE: VRT | OTC:VRTHF | FRT:2VP

Veritas Team

  • Veritas has assembled a noteworthy group of doctors, scientists and

public market professionals with diverse expertise and backgrounds in the following fields: Pharmaceutical, Medicine, Cancer, Clinical Research, Cannabis, Marketing, Finance, Cannabis Production, and Operations.

Experienced management team with a track record of success in public markets. CTL composed of acclaimed scientists with a history of drug discovery.

Lead by an experienced agriculture/ horticulture expert and a designated grower under MMAR program.

15

slide-16
SLIDE 16

CSE: VRT | OTC:VRTHF | FRT:2VP

Veritas Management

  • Dr. Lui Franciosi, PhD

Chief Executive Officer

David Alexander, CPA/CA

Chief Financial Officer

Leiden/Amsterdam Centre for Drug Research, in the Netherlands. He obtained his Doctorate and Masters degrees at the University of British Columbia, and pursued business studies at the University of Warwick, UK. He is currently an adjunct professor at UBC’s Department of Anesthesiology, Pharmacology and Therapeutics.

  • Dr. Franciosi has more than 20 years experience in pharmaceutical and medical device studies in

academia and industry. Previously, he was the COO of Verona Pharma PLC, a London firm listed on the AIM exchange. Prior to Verona, he completed his post-doctoral research in COPD progression modelling at the Clinical Pharmacology & Discovery Medicine unit, GlaxoSmithKline, UK and the

  • Mr. Alexander’s past achievements include; CFO of Arakis Energy Corporation, an international oil &

gas development company and managed the company’s growth from a start-up to over a billion dollars in assets, leading to a listing on the NASDAQ exchange. He was also the CFO of Nortran Pharmaceuticals, Inc., a UBC based pharmaceutical company engaged in the development and Commercialization of cardiovascular therapies. While at Nortran, he helped secure initial and ongoing research financing. Nortran ultimately became Cardiome Pharma, a successful Vancouver B.C. based pharmaceutical company (NASDAQ: CRME). Mr. Alexander holds a degree in Finance from The University of British Columbia. 16

slide-17
SLIDE 17

CSE: VRT | OTC:VRTHF | FRT:2VP

Board of Directors

  • Dr. Don Carlow, MD
  • Dr. Carlow was the past President and CEO of the British Columbia Cancer Agency (BCCA). His efforts led to

the development of new cancer centers, as well as, laying the groundwork for the BC Cancer Research

  • Center. Dr. Carlow was a member of the board of the Vancouver Island Health Authority, where he chaired

the board’s health quality committee for four years and proposed the establishment of the BC Council on Quality and Safety.

Linda Sampson

  • Ms. Sampson is an international marketing and sales professional, having worked in South Africa, Europe,

the US and Canada. She brings a wealth of knowledge and business expertise to Veritas. She is a business start-up professional with significant accomplishments in sales, marketing, designing and branding. Ms. Sampson is currently the President of Marapharm Ventures Inc., a developmental stage publicly traded medical marijuana company with operations based in British Columbia, Nevada and Washington State.

Yari Nieken, MBA

  • Mr. Nieken has a wide range of public company and capital market experience. He is the Founder

and President of Foremost Capital Inc., an exempt market dealer. He is currently a director of Marapharm Ventures Inc. and has served on the boards of several public and private companies including PUF Ventures (President & CEO), Lexagene Holdings Inc. (Director), Duport Capital Ltd. (Director), and has been instrumental in raising substantial capital in his career. He holds an MBA from the Sydney Graduate School

  • f Management and a BA from the University of British Columbia.

17

slide-18
SLIDE 18

CSE: VRT | OTC:VRTHF | FRT:2VP

Cannevert’s Research Team

Cannevert is composed of a leading team of scientists located at the University

  • f British Columbia with access to a wide-range of applicable academic facilities

all led by Professor Walker:

  • Dr. Michael Walker, PhD

President

  • Dr. Walker received extensive training in pharmacology at the University of London where he

received his PhD after initial studies in Hong Kong. His experience included a significant period of drug discovery research at Pfizer Ltd., in the UK. Dr. Walker’s main passion has always been the discovery of new drugs (whether naturally occurring or not) and in the process of drug discovery

  • itself. His commitment to academic research has led to his successful 40-year career at UBC and

the numerous other contributions he has made to universities around the World.

  • Dr. Walker has expanded his career to include, creating biotech companies and leading research firms for new drugs.

During his tenure, Dr. Walker has been the founder or co-founder for 8 different drug discovery companies both in the private and public sectors including: Cardiome Pharma (TSX: COM) and Verona Pharma Ltd in London (AIM: VRP). He has also been a director for numerous companies with the most recent of which, IOmet, was acquired by a large Pharmaceutical company. As a natural extension for his passion for drug discovery, Dr. Walker formed Cannevert Therapeutics Ltd., a company designed to create and implement a coherent and rational attempt to develop therapeutic uses of cannabis and its integral cannabinoid molecules to provide therapies addressing chronic pain.

18

slide-19
SLIDE 19

CSE: VRT | OTC:VRTHF | FRT:2VP

Cannevert’s Research Team

  • Cannevert’s leading team of scientists is comprised of 10 PhDs/MD with

expertise in chemistry, pharmacology and clinical trials.

  • In addition to the leading team of scientists, Cannevert has also assembled a

team of trained technicians and students who work at their academic facilities.

  • This team includes the following notable scientists:

Michael J. A. Walker, PhD President & Head of Biology Bernard A. MacLeod, MD Senior Clinical Scientist Richard A. Wall, PhD Principal Chemist Ernest Puil, PhD Pharmacology Consultant Thomas Stokes, PhD Chemistry Consultant Andrew Hegle, PhD Senior Scientist Ricardo Rivera-Acevedo, PhD Senior Scientist Lui Franciosi, PhD Director

19

slide-20
SLIDE 20

CSE: VRT | OTC:VRTHF | FRT:2VP

Scientific Track Record

  • Ca

Card rdio iome me Ph Pharma arma, Vancouver, Canada (TSE: COM; NASDAQ: CRME)

  • Specialized in discovery & development of anti-arrhythmic drugs
  • Apr. 2009 - Merck & Co. and Cardiome enter development and licensing

agreement for atrial fibrillation drug vernakalant (Trademark BRINAVESSTM), in a deal worth as much as USD $600 million

  • Sept. 2010 - Marketing approval for intravenous (IV) formulation vernakalant in

Europe

  • Verona

na Ph Pharma arma, London, UK (LSE AIM: VRP)

  • Specialized in developing treatments for Asthma, COPD & Cystic Fibrosis
  • Lead molecules in Clinical Phase II/III
  • IO

IOmet Ph Pharma arma, Edinburgh, UK

  • Private company specialized in small molecules (enzyme inhibitors) for the

treatment of cancer, focusing on immunotherapy and cancer metabolism

  • Jan. 2016 - Sold to Merck & Co. in a deal worth up to US $400 million (£276

million), subject to the achievement of targets

20

slide-21
SLIDE 21

CSE: VRT | OTC:VRTHF | FRT:2VP

Sechelt Organic Marijuana

  • Sechelt was formed with the purpose of becoming a licensed producer under the

Access to Cannabis for Medical Purposes (ACMPR) regulations.

  • Sechelt has an ACMPR application pending since July 4th, 2014.
  • In 2016, Veritas entered into an agreement with Sechelt to acquire 100% ownership
  • f Sechelt, subject to it obtaining the ACMPR license.
  • This agreement was reached with the goal of enabling Veritas to grow and bring its

proprietary cannabis strains to market.

  • Sechelt operates a 0.73 acre secure property in an

approved jurisdiction, to build a 2-story facility totaling 20,000 square feet in Sechelt, British Columbia, Canada.

  • The plans for this facility include 6,800 sq. ft. of

budding rooms, 3,000 sq. ft. of cloning rooms, as well as, a small testing lab and secure storage room.

  • The aim is to produce & cultivate 4500 kg of cannabis

per year.

21

slide-22
SLIDE 22

CSE: VRT | OTC:VRTHF | FRT:2VP

Current Research Status & Milestones

  • Established the necessary laboratory space, qualified personnel and access

to necessary equipment for the chemical and pharmacologic analysis.

  • A variety of animal models of disease conditions including pain, nausea,

behavioral, safety (cardiac and respiratory) have been developed.

  • Over 250 chemical experiments have been performed thus far whereas

pharmacological and biological studies now number over 150.

  • Few cannabis strains have been identified as potentially therapeutic; one for

pain and the other for nausea.

  • The company was also informed in February 2017 that its’ subsidiary

Sechelt Organic Marijuana is now in last review stage of its ACMPR application.

22

slide-23
SLIDE 23

CSE: VRT | OTC:VRTHF | FRT:2VP

R&D Pipeline Update

23

R&D Pipeline Update

Chemical Analysis Cell Culture Analysis Animal Studies Discovery of potentially effective cannabis strain Patent App.filed Moving to Clinical Trials Acute ✔ ✔ ✔ ✔ ✔ Chronic/Neuropathic ✔ ✔ ✔ ✔ (Nausea/Vomiting) ✔ ✔ CANCER ✔ ✔ PTSD ✔

Exploring conditions to include in R&D Pipleine

✔ ✔ Condition PAIN EMESIS Migraine / Headache Sleep Disorder

slide-24
SLIDE 24

CSE: VRT | OTC:VRTHF | FRT:2VP

Future Steps

  • Results to date have allowed us to focus on the clinical trials we intend to

perform to establish efficacy of candidate strains in terms of their effects on humans and treatment of human diseases.

  • Preparation & publication of scientific literature for the education of the

medical community regarding cannabis therapies and to establish Veritas’ reputation and brand.

24

slide-25
SLIDE 25

CSE: VRT | OTC:VRTHF | FRT:2VP

Veritas Timetable

  • Continue obtaining varied cannabis cultivars and carry them through the research

process

  • Determine potential cultivars for clinical testing
  • Continue pursuing to become a License Producer under ACMPR
  • Prepare patent applications based on results.
  • Dec. 2017
  • Dec. 2017 – Obtain a Health Canada dealer’s production license through Cannevert

so as to produce extracts and import/export cannabis varieties for research purposes as well as provide analytical services for licensed producers

  • Dec. 2017
  • Dec. 2017 – Feb. 2018:

: Complete human trial of lead strain for pain

  • Feb. 2018:

: Provide industry setting standards for medicinal cannabis

  • March. 2018:

: Establish delivery and dosage optimizations

Q1 - 2017 Q2- 2018 Q2 - 2017 Q3 - 2017 Q4 - 2017 Q1 - 2018

25

slide-26
SLIDE 26

CSE: VRT | OTC:VRTHF | FRT:2VP

Financials

TOTAL ISSUED & OUTSTANDING (M) 52 WEEK RANGE PRICE

39.598 0.23 – 0.81 0.81

DERIVATIVES: WARRANTS (M) YTD RETURN MARKET CAP (M CAD)

24.327 125% 32.07

DERIVATIVES: OPTIONS DATE OF MEASURE

3.016 27-Nov-17

FULLY DILUTED

66.941

* Graph courtesy of Bloomberg.com

CSE:VRT OTC:VRTHF FRT:2VP

26

slide-27
SLIDE 27

CSE:VRT | OTC:VRTHF | FRT:2VP

“Bet “Better er Ther Therapeutic peutic Cannabi Cannabis s Use se, Thr Through

  • ugh

Bet Better er Sc Scien ience” e”

27

slide-28
SLIDE 28

CSE:VRT | OTC:VRTHF | FRT:2VP

CONTACT US

Veritas Pharma Inc

101-2386 East Mall University of British Columbia Vancouver, BC V6T 1Z3

Investor Relations Contact

Sam Eskandari E: ir@veritaspharmainc.com Website: veritaspharmainc.com

28