Investor Presentation Q2 2018 TSXv: NDVA 2/24 I N V E S T O R P - - PowerPoint PPT Presentation

Q2 2018

Investor Presentation

2/24 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

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Executive Summary _________________________________________ 4 Growing Demand for Medical Cannabis _______________________ 6 Recreational Cannabis Market ________________________________ 7 Insuffjcient 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 Path to 40+ Million Grams ____________________________________ 20 London Operating Expenses __________________________________ 22 Capex/Use of Funds _________________________________________ 23 Comparables _______________________________________________ 24

01 – SUMMARY 02 – INVESTING IN CANNABIS 03 – INDIVA ADVANTAGES 04 – LONDON FACILITY 05 – USE OF FUNDS AND COST BREAKDOWN, LONDON ONTARIO

Table of Contents

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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 Sales license is expected as early as Q2 of 2018 and sales expected to start in Q4 of 2018

Sales Expansion

Fully funded expansion to 40, 000 square feet underway and to be completed in Q4 of 2018.

Processing Facility

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

• ther cannabis products.

Executive Summary

Q2 2018

02

Investing in Cannabis

Executive Summary

01

Investing in Cannabis

02

INDIVA Advantages

03

London Facility

04 USE OF FUNDS AND 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. At September 2017, there were 269,502 patients registered, which is a 14% quarter-

• ver-quarter increase & approximately equal

to Health Canada’s projection for 2022

Actual Registered Patients Health Canada’s Projected Registered Patients

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 December 2017: registered patients exceeds Health Canada’s 2022 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

11,058

physicians have authorized patient access to medicinal marijuana

269,502

registered patients in total to date

11,000

(approx.) new patients per month (~5% month-

• ver-month growth)

Growing Demand for Medical Cannabis

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Daily Weekly Monthly Occasionally Non-Consumers Potential Customer

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.

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

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

10 410 55 20 1100 300 1500

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

175

Source: Deloitte, PBO

Recreational Cannabis Market

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

56 ON

22 BC 5 6

Number of licences issued by province

Health Canada Market Data from Q3 2017

• Dry fmowers: 6.3mm grams sold, 38.9mm grams

in inventory

• Oil: 9.3mm grams sold, 11.1mm grams inventory
• 269,502 registered clients at December 31, 2017
• Prices range from $1.75/gram to $15/gram

Current Production

• 102 existing LPs
• Current production insuffjcient

to meet demand

• 45 Sales Licenses issued

(37 companies)

Health Canada Market Data from Q3 2017

• Supplying even the low end of the

estimate of the recreational cannabis market would require the production

• f over 700mm grams of cannabis

annually

Insuffjcient Supply of Cannabis

Q2 2018

03

INDIVA Advantages

Executive Summary

01

Investing in Cannabis

02

INDIVA Advantages

03

London Facility

04 USE OF FUNDS AND 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 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

Talented & Experienced Team

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INDIVA High Quality Products

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Products Powered by INDIVA

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Products Powered by INDIVA

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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

• Sales teams active in multiple provinces
• Responding to provincial RFPs
• Access to award winning US products

Customer Acquisition Strategies

Q2 2018

04

London Facility

Executive Summary

01

Investing in Cannabis

02

INDIVA Advantages

03

London Facility

04 USE OF FUNDS AND COST BREAKDOWN 05

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ACMPR License 40,000 square feet

• 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

30 Year Lease with right of fjrst refusal to purchase 2,500 - 3,000 kgs annual production capacity (dry fmowers) Extraction facility to be built on site Ample Power & Water 5 Minutes from Highway 401

London Facility

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

Existing Fenceline

London Facility

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Production Facility Pictures

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LARGE SCALE CULTIVATION

• Currently evaluating 3 large greenhouse facilities in South

Western Ontario for production partnerships

• INDIVA’s criteria: newer glass houses, access to

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

• Active negotiations with German distributors for large

quantity multi-year supply

• 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

Path to 40+ Million Grams

Q2 2018

Executive Summary

01

Investing in Cannabis

02

INDIVA Advantages

03

London Facility

04 USE OF FUNDS AND COST BREAKDOWN 05

05

Operating & Capital Costs

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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

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Building Retrofjt and Equipment

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

$14.5mm

Working Capital and Contingency

• Inventory build, G&A

$18.5mm

Total

$33.0mm London Capex / Working Capital

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VALUATIONS OF CANADIAN PUBLIC COMPANIES

Market data as of April 27, 2018

Reordered by market cap (C$mm) $5,421mm $4,331mm $2,055mm $2,043mm $1,490mm $745mm $732mm $630mm $549mm $486mm $405mm $187mm $157mm $115mm $63mm Licensed producer Canopy Growth (WEED) Aurora Cannabis (ACB) Medreleaf (LEAF) Aphria (APH) CannTrust (TRST) Organigram (OGI) Cronos Group (MJN) Emerald Health (EMH) CanniMed Therapeutics (CMED) Supreme Pharmaceuticals (FIRE) Hydropothecary (THCX) WeedMD (WMD) Delta9 (NINE) Emblem (EMC) INDIVA (NDVA) Capitalization: Basic Shares Outstanding

.........................81.0mm

Warrants: ...........................27.3mm Options: ...............................4.3mm Convert: ...............................8.9mm Fully Diluted Shares Outstanding

....................... 121.5mm

Balance Sheet (April 27, 2018): Cash .........................................$33mm Convertible Debenture $6.7mm

INDIVA Limited