Investor Presentation Q4 2018 TSXv: NDVA 2/22 I N V E S T O R P - - PowerPoint PPT Presentation

Q4 2018

Investor Presentation

2/22 TSXv: NDVA I N V E S T O R P R E S E N TAT I O N

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

• n 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

• r 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

• wn investigation with regard to the company and its
• prospects. This presentation does not constitute an ofger

to sell or a solicitation of an ofger to buy any security.

Forward Looking Statement

3/22 TSXv: NDVA I N V E S T O R P R E S E N TAT I O N

Executive Summary _________________________________________ 4 Growing Demand for Medical Cannabis _______________________ 6 Recreational Cannabis Market ________________________________ 7 Supply of Cannabis __________________________________________ 8 Talented and Experienced Team ______________________________ 10 High Quality Products _______________________________________ 11 Our Corporate Identity ______________________________________ 14 Customer Acquisition Strategies ______________________________ 15 London Facility _____________________________________________ 17 Production Facility Pictures __________________________________ 19 Expansion Path - Flowers, Oil, Products ________________________ 20 London Operating Expenses __________________________________ 22

01 – SUMMARY 02 – INVESTING IN CANNABIS 03 – INDIVA ADVANTAGES 04 – LONDON FACILITY 05 – COST BREAKDOWN

Table of Contents

4/22 TSXv: NDVA I N V E S T O R P R E S E N TAT I O N

STRONG FUNDAMENTALS

• Award-winning cannabis products
• State-of-the-art GMP-standard indoor

production facility

• Fully funded expansion
• Experienced Master Grower with award-

winning strains and loyal 1000+ patient base

• Experienced management team, passionate

about helping people and protecting investors NEAR TERM CATALYSTS INDIVA received its sales license on August 10, 2018 and sales have begun.

Sales Expansion

Cultivation and oil extraction: Fully funded expansion to 40,000 square feet underway and to be completed in Q1 of 2019.

Processing Facility

Fully funded processing facility planned for 2019. Facility to produce INDIVA, Bhang, DeepCell and

• ther cannabis products.

Capitalization: Basic Shares Outstanding

............................ 83.0mm

Warrants: .............................. 28.3mm Options: ....................................4.7mm Convert: ...................................6.9mm Fully Diluted Shares Outstanding

.......................... 122.9mm

Balance Sheet: Cash (Sept. 30, 2018)

..... $24.3mm

Management and Insider Ownership

......................22%

Executive Summary

Q4 2018

02

Investing in Cannabis

Executive Summary

01

Investing in Cannabis

02

INDIVA Advantages

03

London Facility

04

Cost Breakdown

05

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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 revenue by 2024.

Actual Registered Patients Health Canada’s Projected Registered Patients

Registered Patients

450,000 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 2024 2023 2022 2021 2020 2019 2016 2017 2018 2015

June 2018: registered patients exceeds Health Canada’s 2023 projection

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

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

16,599

physicians have authorized patient access to medicinal marijuana

330,758

registered patients in total to date (~80% from ON and AB)

10,000

(approx.) new patients per month

Growing Demand for Medical Cannabis

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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.

Daily Weekly Monthly Occasionally Non-Consumers Potential Customer

17% 61% 7% 4% 8% 3%

ANNUAL CANNABIS USERS AND CONSUMPTION Aged 15 and over, Canada excluding Territories, Mid-point Estimates, 2018

1600 200 250 1200 800 375 10 20

Once Less than once a month 1-3 Times per month At least once a week Daily

600

Users (Thousands) Consumption (Metric Tonnes) Source: Deloitte, PBO

Recreational Cannabis

$7-10 Billion Domestic Market Opportunity!

* 2.6 million Canadians admit to use in last 12 months * Represents <5% of total consumption

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YT 3 1 3 2 4 NT AB SK MB QC NL PE NS NB NU

69 ON

30 BC 9 12

Number of licences issued by province

Source: Mackie Research, 420intel.com

Current Production

• 132 existing LPs
• Current production insuffjcient

to meet demand

• 70 Sales Licenses issued

Supply of Cannabis

OVER-supply

• f dry fmower

just around the corner!

Licensed Producer Production Capacity Tonnes Aurora Cannabis ...............................................700 Canopy Growth ...............................................500 Aphria ...............................................255 Tilray ...............................................200 The Green Organic Dutchman ..................................................95 Cronos Group .................................................135 OrganiGram ..................................................113 HEXO ................................................ 108 CannTrust ................................................ 105 Emerald Health Therapeutics ................................................100 – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – TOTAL (metric tonnes) ............................................2,411

Q4 2018

03

INDIVA Advantages

Executive Summary

01

Investing in Cannabis

02

INDIVA Advantages

03

London Facility

04

Cost Breakdown

05

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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, CPA 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 Chief Brand Offjcer

• Over 30 years of experience in marketing,

branding, print/digital advertising and design with Fortune 500 companies PRODUCTION

– – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –

Pete Young Master Grower, Founder

• Grow Team: 15+ years of experience producing

medicinal strains for hundreds of patients

• International recognition and multiple product

awards PROJECT MANAGEMENT

– – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –

Jose Laurentino Chief Technology Offjcer

• 20+ years in agricultural project development

including indoor and greenhouse expertise CORPORATE DEVELOPMENT

– – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –

Jamie Rifg, P.Eng VP Corporate Development

• 15+ years experience in capital markets and

institutional sales

Talented & Experienced Team

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INDIVA High Quality Products

Our strain selection, cultivation and client care processes combine the know-how and experience of an internationally recognized and award winning grow-team with GMP-compliant quality assurance standard

• perating procedures.

INDIVA is focused on providing medical-grade cannabis to medical and adult-use clients, both domestically and internationally.

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Products Powered by INDIVA

Bhang is the most awarded line of cannabis chocolate bars available in the world.

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Products Powered by INDIVA

Ruby sugars and salts are the world’s fjrst ‘Flexible Edible’ cannabis product created to easily incorporate into your everyday food and drink.

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POSITIONING At INDIVA, we believe cannabis can add to one’s general wellness and we stand for the destigmatization and normalization of cannabis for medicinal and recreational use. INDIVA is an experienced producer of high quality cannabis products designed to contribute to the health and wellness of its clients. Our logo symbolizes experience, strength, know-how practical knowledge, as well as a strong foundation for investment and growth. It is respectful of the cannabis movement without the clichés of cannabis counter-culture. Our clean aesthetic and pallet strike the perfect balance between mature yet accessible, contemporary but still classic enough to be lasting, and holistic without looking like products that only belong in a health food store. Our website and media content features contributors focused not just on cannabis, but wellness (nutrition, fjtness, sleep) and culture (dining, events). Our associations with award winning American brands that we will produce and sell in Canada and internationally with our “powered by INDIVA” logo.

Our Corporate Identity

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COMPASSION COMMUNITY RELATIONS

• Established relations with prominent and

experienced members of the compassion community

• We will ofger familiar strains and an overall respectful

and familiar patient experience

• Agreement with London Compassion Society to

transfer up to 1,200 clients MARKETING

• SEO, E-shop, blog, and social media campaigns

launched in 2017; mailing list of up to 2,000 clients

• Partnerships with popular social media infmuencers
• Packaging developed and focus group tested
• Engaging events team and keynotes at cannabis,

wellness, cultural, and community events across Canada

• Featured interviews in key publications

MEDICAL AND COMMUNITY ENGAGEMENT

• Strong ties to London’s medical community
• Mandate to support patient networks and societies

PROVINCIAL RETAIL STRATEGY

• Farm gate sales
• Sales teams active in multiple provinces
• Responding to provincial RFPs and retailers
• Access to award winning US products

Customer Acquisition Strategies

We are for

• tweny. You
• buy. You help

Q4 2018

04

London Facility

Executive Summary

01

Investing in Cannabis

02

INDIVA Advantages

03

London Facility

04

Cost Breakdown

05

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40,000 square feet

• 30 Year Lease with right of

fjrst refusal to purchase

• Ample power & water
• 1 Kilometre from Highway 401

Extraction and processing facility under construction Retail store to be built

• n site

London Facility

• Cultivation
• Oil Extraction
• Processing
• Product

Manufacturing

• Retail

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Indiva Store Mother Room Oil Extraction Drying Room Trim Room Packaging Drying Room 2 Trim Room 2 Flower Room Mother Room 2 Veg Room Storage/Receiving Pump Admin/Call Center/QA Planned Expansion (Flower Rooms)

Flower Flower Flower Flower Flower Indiva Store Oil Extraction and Processing Veg Dry 2 Trim 2 Flower Flower Flower Flower Flower Flower Mother 2

Existing Fenceline

London Facility

Fully Funded $13.7 million Expansion

Flower Pump Str/Rec Veg Mother Pack Dry Trim Admin

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Production Facility

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LARGE SCALE CULTIVATION / OFFTAKE

• Currently evaluating facilities for production and ofgtake

partnerships

• INDIVA’s criteria: access to infrastructure, experienced

production partner, ability to fund retrofjt out of existing cash resources, measured expansion over time INTERNATIONAL DISTRIBUTION & PRODUCTION

• Acguisition of license in Denmark creates Gateway to

Europe

• Agreements with US cannabis products companies to use

Canada to produce and export internationally

• Active negotiations with Polish, Costa Rican and Maltese

governments for production partnerships

Domestic Expansion International Expansion

Expansion Path

• Flowers
• Oil
• Products

Q4 2018

Executive Summary

01

Investing in Cannabis

02

INDIVA Advantages

03

London Facility

04

Cost Breakdown

05

05

Cost Breakdown

22/22 TSXv: NDVA I N V E S T O R P R E S E N TAT I O N

KEY EXPENSES Cash costs: Power, light bulbs, labour, packaging, shipping, soil & nutrients, composting, QA testing and contingency (20%) G&A: Management, accounting stafg/admin, customer service/call center, security, distribution team Rent, insurance & security Software EMPLOYEES (ESTIMATED) Full production: 47 Senior management (5) Accounting (3) Gardening (10) Security/IT (2) Distribution (5) Customer Service (12) Sales (3) QA (2) Marketing (5)

• 1. Power
• 2. Bulbs
• 3. Labour
• 4. Shipping
• 5. Packaging
• 6. Materials
• 7. Contingency

1 7 6 5 4 3 2

London Operating Expenses

For FAQs and contact information visit www.indiva.com. @indivalife