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ENHANCING HEALTH THROUGH CANNABIS SCIENCE
TM
HEALTH THERAPEUTICS
IN V ESTOR P RE S E N TAT I O N Q 4 2 0 1 6 TM HEALTH - - PowerPoint PPT Presentation
IN V ESTOR P RE S E N TAT I O N Q 4 2 0 1 6 TM HEALTH THERAPEUTICS ENHANCING HEALTH THROUGH CANNABIS SCIENCE T S X . V: E M H WWW.EMERALD.CARE D I S C L A I M E R THE STATEMENTS MADE IN THIS PRESENTATION MAY INCLUDE FORWARD-LOOKING
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ENHANCING HEALTH THROUGH CANNABIS SCIENCE
TM
HEALTH THERAPEUTICS
THE STATEMENTS MADE IN THIS PRESENTATION MAY INCLUDE FORWARD-LOOKING STATEMENTS REGARDING THE FUTURE OPERATIONS, OPPORTUNITIES OR FINANCIAL PERFORMANCE OF EMERALD HEALTH THERAPEUTICS (THE “COMPANY”). FORWARD LOOKING STATEMENTS INCLUDE THE ESTIMATED INCREASE IN THE COMPANY’S PRODUCTION SQUARE FOOTAGE; INCREASES IN THE COMPANY’S PRODUCTION; THE LEGALIZATION OF RECREATIONAL MARIHUANA; THE SIZE OF THE MEDICAL MARIHUANA MARKET AND THE RECREATIONAL MARIHUANA MARKET; THE COMPANY’S EXPANSION GOALS INCLUDING SCALABILITY, INCREASES IN SQUARE FOOTAGE, PRODUCTION AND REVENUE; THE COMPANY’S POSITION IN THE MARIHUANA MARKET IN RESPECT OF DEMAND AND COMPETITION; THE COMPANY BECOMING A LEADING BRAND IN CANNABIS-BASED PRODUCTS; AND THE COMPANY’S NEAR TO LONG TERM GOALS INCLUDING INCREASES IN PATIENT ACQUISITION, FACILITY EXPANSION, CLINICAL TRIALS AND PRODUCT DEVELOPMENT AS WELL AS MARKET CAPTURE, REVENUE AND CONSOLIDATION OF THE MARIHUANA MARKET. THESE FORWARD-LOOKING STATEMENTS ARE ONLY ESTIMATIONS BASED UPON THE INFORMATION AVAILABLE TO EMERALD HEALTH THERAPEUTICS, AS OF THE DATE OF THIS PRESENTATION. EXCEPT AS REQUIRED BY LAW, WE EXPRESSLY DISCLAIM ANY RESPONSIBILITY TO PUBLICLY UPDATE OR REVISE OUR FORWARD-LOOKING STATEMENTS, WHETHER AS A RESULT OF NEW INFORMATION, FUTURE EVENTS OR OTHERWISE. THUS, THE FORWARD-LOOKING STATEMENTS HEREIN INVOLVE KNOWN AND UNKNOWN RISKS AND UNCERTAINTIES SUCH THAT ACTUAL FUTURE OPERATIONS, OPPORTUNITIES OR FINANCIAL PERFORMANCE MAY DIFFER MATERIALLY FROM THESE FORWARD-LOOKING STATEMENTS.
THESE RISKS AND UNCERTAINTIES RELATE TO, AMONG OTHER THINGS, CHANGES IN LAWS, REGULATIONS AND GUIDELINES RELATING TO MEDICAL MARIHUANA AND THE POSSIBLE LEGALIZATION OF MARIHUANA BY THE FEDERAL GOVERNMENT; CHANGES IN GOVERNMENT; CHANGES IN GOVERNMENTAL POLICY; THE CONTINUED AVAILABILITY OF CAPITAL FINANCING AND GENERAL ECONOMIC, MARKET OR BUSINESS CONDITIONS; RELIANCE ON MANAGEMENT; THE INABILITY OF THE COMPANY TO EXPAND ITS CURRENT FACILITY OR OBTAIN ADDITIONAL FACILITY SPACE; FAILURE TO OBTAIN APPROVAL BY HEALTH CANADA FOR THE COMPANY TO INCREASE PRODUCTION AND PRODUCTION SQUARE FOOTAGE; UNFAVOURABLE PUBLICITY OR CONSUMER PERCEPTION OF THE MEDICAL MARIHUANA INDUSTRY; THE IMPACT OF ANY NEGATIVE SCIENTIFIC STUDIES ON THE EFFECTS OF CANNABIS; THE GROWTH IN THE MEDICAL AND RECREATIONAL MARIHUANA MARKETS BEING LESS THAN ANTICIPATED; INCREASED COMPETITION IN THE MARKET PLACE; THE COMPANY’S ABILITY TO MEET ITS NEAR AND LONG-TERM GOALS; AND THE COMPANY’S ABILITY TO RETAIN A COMPETITIVE ADVANTAGE IF MARIHUANA IS LEGALIZED AS WELL AS THE RISK FACTORS SET OUT IN THE COMPANY’S ANNUAL INFORMATION FORM AND OTHER PUBLICLY FILED DISCLOSURE DOCUMENTS. UNDUE RELIANCE SHOULD NOT BE PLACED ON FORWARD LOOKING STATEMENTS, WHICH SPEAK ONLY AS OF THE DATE HEREOF. ALL FORWARD-LOOKING STATEMENTS CONTAINED HEREIN ARE QUALIFIED IN THEIR ENTIRETY BY THE FOREGOING CAUTIONARY STATEMENTS. RELIANCE SHOULD NOT BE PLACED ON FORWARD LOOKING STATEMENTS, WHICH SPEAK ONLY AS OF THE DATE HEREOF. . WWW.EMERALD.CARE
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1 As of November 14, 2016 2 Big 5 Cannabis Pubcos: CGC, APH, ACB, MT, OGI
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LEGALIZATION
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2
LEGALIZATION
1 Projected market based on Health Canada Market Statistics: http://www.hc-sc.gc.ca/dhp-mps/marihuana/info/market-marche-eng.php 2 Market value based on Deloitte LLP: “Recreational Marijuana - Insights and opportunities” - June 2016
1
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Vertically integrated enterprise
SEED TO SALE
Dried and oil cannabis sales.
E-COMMERCE
Facility in Victoria, BC
PRODUCTION & CULTIVATION
Mass production
SCALABILITY
Limited competition
MARKET CAPTURE
Initial market $5.6B
REVENUE EXPANSION
LEGALIZATION
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DRIED CANNABIS CANNABIS OIL
CBX CBD THC:CBD THC THC+ > 3% CBD
CBG, CBC, THCV, CBDV THC = CBD < 17% THC > 17% THC
EASY FOR CONSUMERS & PHYSICIANS EMERALD RANGE
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LEGALIZATION
*Potential sales based on sale price of $5/g
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Optimal growing environment
3rd lowest electricity cost in Canada
Leading team with extensive history in cannabis production Management with proven success in scalable agriculture
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CURRENT UPCOMING PHASE 1 PHASE 2 PHASE 3
LEGALIZATION
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President & CEO
VP Production
15 years as CEO
processing, and product development.
CFO
VP R&D and QAP
Angiotech Pharmaceuticals
genetics and medical technologies
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Emerald Health Sciences KEY STAKEHOLDER Life sciences, drug development, clinical testing, product approvals and distribution LEADERSHIP EXPERIENCE Clinical expertise & networks to expand patient base CLINICAL TRIALS Become the leading brand in cannabis-based products SUPERIOR BRAND
LEGALIZATION
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Chairman and former CEO of Inovio Pharmaceuticals, Inc.
Chairman and CEO of Canadian Pacific Global Pharmaceuticals (NASDAQ:INO) and Board Member of several life sciences companies
Director and former CEO of Sophiris Bio Inc.
CEO of Oncosec (NASDAQ:ONCS) Director of Vanc Pharmaceutica Inc. (TSX:NPH) and 20+ years of pharmacy experience (NASDAQ:SPHS) and previous President and Director of BC Advantage Funds Former Vice President of Finance and Operations at Inovio Pharmaceuticals
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Canopy $1.29B Mettrum Aurora
Market Cap1 Fully Licensed Scalability to meet demand
$553M $274M $517M Aphria Inc.
Quarterly Expense2
Organigram Supreme $7.5M $3.0M $4.3M $1.5M $327M $7.5M $204M $2.0M $52M $440K
1 As at November 14, 2016 2 Figures based on most recently published interim financials for each company as at November 14, 2016
Quarterly Revenue2
$7.0M $4.4M $4.2M $219K $894K $0 $100K 16 / 18 | Q4 2016
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