Investor Presentation
Q3 2019
TSXV: NDVA I OTCQX: NDVAF
Investor Presentation Q3 2019 TSXV: NDVA I OTCQX: NDVAF Forward- - - PowerPoint PPT Presentation
TSXV: NDVA I OTCQX: NDVAF Investor Presentation Q3 2019 TSXV: NDVA I OTCQX: NDVAF Forward- Looking Statement The information contained herein, together with any amendments or supplements and any other information that may be furnished by the
Investor Presentation
Q3 2019
TSXV: NDVA I OTCQX: NDVAF
TSXV: NDVA I OTCQX: NDVAF
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Forward- Looking Statement
The information contained herein, together with any amendments or supplements and any other information that may be furnished by the Company, includes forward-looking
inherently uncertain and subjective. The Company makes no representation or warranty as to the attainability of such assumptions, including the completion of financing 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 ofger to sell or a solicitation of an ofger to buy any security.
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Attractive revenue growth profile
Driven by new products, production growth, broader distribution, extraction services and contract manufacturing.
Products
Strong platform of globally-recognized consumer cannabis brands. Exclusive partnerships to produce and distribute award-winning Bhang ChocolateTM, Sapphire SaltTM, Ruby SugarTM and Ruby Chewable GemsTM to Canadians.
Services
70-tonne extraction facility to produce more than 4 million grams of distillate. Partnerships with industry leaders to provide extraction and formulation services. Limitless product options for extracts and edibles.
Experienced management team
Leadership team has decades of experience in operations, finance, business development, consumer packaged goods, and distribution.
Why Invest
Capitalization
Basic Shares ................ 83.0mm Warrants ...................... 28.1mm Options ........................ 5.4mm Convert ........................ 6.8mm Fully Diluted Shares Outstanding ................ 123.4mm
Balance sheet
Cash (June 30, 2019) .....$3.9mm Management and Insider Ownership ........................ 14% 3
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Sales And Expansion Success
*Subject to Health Canada approval
2017
Q3 2017
cultivation licence from Health Canada Q4 2017
reverse takeover and begins trading on TSX Venture Exchange under NDVA
2019
Q1 2019
agreement with Ontario Cannabis Store (OCS) Q2 2019
three new flower rooms
processing rooms to accomodate edibles and contract manufacturing
three additional flower rooms and two processing rooms Q3 2019
agreement with Société québécoise du cannabis (SQDC) to distribute products in Quebec
provide extraction services to TerrAscend Q4 2019*
becomes operational with 70-tonne biomass capacity resulting in 4 million grams of distillate
tinctures and capsules (accepted by OCS)
edibles and extracts
edibles and extracts
2019 / 2020 2018
Q1 2018
begins Q2 2018
venture to manufacture, distribute and export award-winning cannabis-infused chocolate and derivative products
agreement with DeepCell Industries to produce and distribute Ruby SugarTM, Sapphire SaltTM, and Ruby Chewable GemsTM Q3 2018
Health Canada
OTCQX under NDVAF Q4 2018
acquire licence in Denmark
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Q1
2019
Sales begin through OCS Three new flower rooms plus three processing rooms Capacity: 1,000 kg annual flower production
Q2
2019
* Three additional flower rooms plus two processing rooms Capacity: 3,000 kg annual flower production
Q3
2019
SQDC LOI in place for supply agreement Agreement in place with TerrAscend to provide extraction services * Extraction facility
be 70-tonnes biomass, 4 million grams distillate SQDC sales begin Extraction services revenue begins
Q4
2019
Processing and production of edibles and extracts begins ** Farm gate store
Q1
2020
*Subject to Health Canada approval **Subject to AGCO approval
Roadmap For Growth
* Introduction of tinctures and capsules (accepted by OCS) Introduction of dry flower Introduction of BhangTM Chocolate, Ruby SugarTM, Sapphire SaltTM and Ruby Chewable GemsTM Pre-rolls for sale at OCS.ca Pre-rolls for sale at licensed stores
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The Case For Edibles
Edibles Market Share in Mature Markets
NEVADA
25% 4% 15% 39% 17%
CALIFORNIA
5% 30% 6% 18% 41%
Flower Concentrate Edibles Pre-roll Others
Source: BDS Analytics, Colorado Department of Revenue, Cannabis Business Executive, Mackie Research, 420intel.com, Deloitte
Total addressable cannabis market
Canada Edibles market share likely to mirror mature markets in the U.S.
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Opportunity
* 4.4 million Canadians admit to use in last 12 months * 60% of users represent < 5% of consumption
1600 200 250 1200 800 375 10 20
Once Less than
a month 1-3 times per month At least
week Daily
600
Annual Cannabis Users and Consumption
Consumption (metric tonnes) Users (thousands)
Opportunity Defined
New product introduction Extraction services contract manufacturing Opportunity
Over supply of dry flower just around the corner
Production Capacity Tonnes Aurora Cannabis .................... 700 Canopy Growth ......................500 Aphria .................................... 255 Tilray .....................................200 Cronos Group ......................... 135 OrganiGram .............................113 HEXO .....................................108 CannTrust ...............................105 Emerald Health Therapeutics ..100 The Green Organic Dutchman ... 95 Total (metric tonnes) ........... 2,411
TM7
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Distribution Channels in Canada
MEDICAL RECREATIONAL
Licensed Producer Licensed Producer Provincial Wholesaler Customer Customer
Online sales Licensed stores Online sales Home delivery
Recreational cannabis is primarily sold by licensed producers to provincial government wholesale monopolies, such as the OCS in Ontario or SQDC in Quebec. Provincial wholesalers control all
product to retailers.
TM TM
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Adult-use Recreational Market
Pre-rolls Capsules Chocolate/Edibles Flower RECREATIONAL MARKET MEDICAL CANNABIS Tinctures PRODUCT ON QC AB SK NS CANADA Q3/Q4 2019 Q1 2020* Q4 2019 Q4 2019 / Q1 2020 Q4 2019 / Q1 2020 Q4 2019 Q1 2020 Q4 2019 Q4 2019 Q3/Q4 2019
*As law permits
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Indiva’s International Brands
Our aim is to deliver cannabis products that delight consumers with their quality and creativity. As the exclusive Canadian manufacturer and distributor of award-winning Bhang ChocolateTM, Ruby SugarTM, Sapphire SaltTM and Ruby Chewable GemsTM, Indiva expects to be the national standard for excellence in edibles.
TM
P O W E R E D B Y I N D I V A
TM
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High-Quality Products
At Indiva, our dedication to quality and innovation is what sets us apart. Our state-of-the- art, environmentally-conscious aeroponic grow operation and extraction facility allows us to deliver an array of flower, oil and extract products to Canadians.
F L O W E R
DERIVATIVES
TSXV: NDVA I OTCQX: NDVAF
TM TM
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WARNING: Do not drive or operate machin- ery afer using cannabis. Afer cannabis use, coordination, reaction time and ability to judge distances are impaired. MISE EN GARDE: Ne conduisez pas ou n’utilisez pas de machines si vous avez con- sommé du cannabis. La consommation de cannabis nuit à la coordination, au temps de réaction et à la perception des distances. Health Canada/Santé Canada LITE ™ POWERED BY INDIVA CANNABIS SUGAR / SUCRE DE CANNABIS | 10.00 G Intended for ingestion/ Destineés à l’ingestion THC per unit / THC par unité ............................... 10.00 mg Total THC per unit / THC total par unité............. 10.00 mg CBD per unit / CBD par unité .................................. 0.00 mg Total CBD per unit / CBD total par unité................ 0.00 mgEDIBLES
POWERED BY INDIVA
EDIBLES
chews
POWERED BY INDIVA
Products Powered by INDIVATM
Indiva, through its joint venture with Bhang, is proud to be the exclusive provider of Bhang ChocolateTM in Canada. This wildly popular, award-winning edible is a favourite among cannabis connoisseurs. We are also the exclusive Canadian manufacturer and distributor of Ruby SugarTM, Sapphire SaltTM, and Ruby Chewable GemsTM.
TSXV: NDVA I OTCQX: NDVAF
TM
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F I N A N C E A N D C O R P O R AT E D E V E L O P M E N T
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Niel Marotta President and CEO, Director, Co-founder Managed over $1 billion across several industries Involved in capital raises and M&A transactions exceeding $1 billion Jennifer Welsh CPA Chief Financial Offjcer Over 12 years of experience in senior finance roles for TSX and TSXV-listed companies in mining and cannabis Jamie Rifg, P.Eng Vice President of Corporate Development Over 15 years experience in capital markets and institutional sales C R E A T I V E & B R A N D D E S I G N
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Tom Borowicz Chief Brand Offjcer Over 30 years of experience in marketing, branding, print/digital advertising and design with Fortune 500 companies C O M M U N I C A T I O N S
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Kate Abernathy Vice President of Communications Over 10 years of experience in corporate communications and public relations strategy for Fortune 100 companies O P E R A T I O N S
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Rob Carse Vice President of Operations Over 20 years of experience in operations and supply chain management in large consumer packaged goods and food manufacturing Melissa Kurek Director of Operations Over 15 years experience in commercializing products in the consumer packaged goods industry for some of the world’s largest food, confectionery and beverage companies Egle Adomaityte Director of Cultivation Over 10 years of experience in horticulture and technology in the vegetable and cannabis industry as a grower/manager, including work as
Q U A L I T Y A S S U R A N C E A N D C O M P L I A N C E
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Darrin Statchuk Director of Quality Assurance and Compliance 25 years experience within the pharmaceutical / medical device industry and food industry with responsibility for all the licensing activities H U M A N R E S O U R C E S
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Sherry Kelly Human Resources Manager 15 years of human resources management experience including strategic human resources planning, talent management and leadership
Talented and Experienced Team
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London Facility
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Production Facility
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Annual production at full capacity
permitted Products:
Services:
Process Room Process Room Indiva Store Processing Process Room Dry 2 Trim 2 Utility Room Extraction Flower Flower Flower Flower Flower Flower Mother
Pump Str/Rec Lab Storage
Pack Dry Trim Admin
London Facility
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INVESTOR RELATIONS CONTACT INFORMATION Niel Marotta, President & CEO T: 519-649-6686 • E: niel@indiva.com www.indiva.com @indivalife