INVESTOR PRESENTATION
November 24, 2017
INVESTOR PRESENTATION November 24, 2017 11/17 Authentic to the - - PowerPoint PPT Presentation
INVESTOR PRESENTATION November 24, 2017 11/17 Authentic to the culture. Growers by nature. We are cannabis futurists. Welcome. Investor Presentation 11/17 Disclaimer Tiis documentation is a presentation (the in this Presentation and no
INVESTOR PRESENTATION
November 24, 2017
Authentic to the culture. Growers by nature. We are cannabis futurists. Welcome.
11/17 Investor Presentation
11/17 Investor Presentation
Tiis documentation is a presentation (the “Presentation”) of general background information about DOJA Cannabis Company Ltd.’s (“DOJA” or “the Company”). It is information in a summary form and does not purport to be complete. It is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment
any particular investor. Tiese should be considered, with or without professional advice, when deciding if an investment is
constitute or form part of any ofger for sale or solicitation of any ofger to buy or subscribe for securities nor shall it or any part of it form the basis of or be relied on in connection with, or act as any inducement to enter into, any contract or commitment
who are considering acquiring securities of DOJA are reminded that any such purchase
basis of the information contained in this Presentation but are referred to the entire body of publicly disclosed information regarding DOJA. Tie information contained in this Presentation is derived solely from management of DOJA and
concerning DOJA and does not purport to be all-inclusive or to contain all the information that an investor may desire to have in evaluating whether or not to make an investment in DOJA. Tie information has not been independently verifjed and is subject to material updating, revision and further amendment, and is qualifjed entirely by reference to DOJA’s publicly disclosed information. No representation
given by or on behalf of DOJA or any of its affjliates, directors, offjcers or employees as to the accuracy, completeness or fairness
in this Presentation and no responsibility
such information or opinions. DOJA does not undertake or agree to update this Presentation or to correct any inaccuracies in, or omissions from, this Presentation that may become apparent. No person has been authorized to give any information
those contained in this Presentation and, if given and/or made, such information
upon as having been so authorized. Tie information and opinions contained in this Presentation are provided as at the date of this Presentation. Tie contents of this Presentation are not to be construed as legal, fjnancial or tax advice. Each prospective investor should contact his, her or its own legal adviser, independent fjnancial adviser or tax adviser for legal, fjnancial or tax advice. Certain statements in this Presentation may constitute forward-looking information, including future-oriented fjnancial information and fjnancial outlooks, within the meaning of applicable securities laws. Forward looking information may relate to DOJA’s future
and may include statements regarding DOJA’s fjnancial results, future fjnancial position, expected growth of cash fmows, business strategy, budgets, projected costs, projected capital expenditures, taxes, plans,
trends and growth opportunities. Often but not always, forward-looking information can be identifjed by the use of words such as “anticipate”, “believe”, “expect”, “project”, “estimate”, “likely”, “intend”, “should”, “could”, “may”, “might”, “target”, “plan” and other similar expressions or variations (including negative variations) of such words and phrases. Forward-looking information contained in this Presentation is based on certain assumptions regarding expected growth, results of operations, performance, industry trends and growth
considers these assumptions to be reasonable, based on information available, they may prove to be incorrect. Forward- looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of DOJA to be materially difgerent from any future results, performance or achievements expressed or implied by the forward-looking
to risks associated with general economic conditions; adverse industry events; marketing costs; loss of markets; future legislative and regulatory developments involving medical marijuana; inability to access suffjcient capital from internal and external sources, and/or inability to access suffjcient capital on favourable terms; the medical marijuana industry in Canada generally, income tax and regulatory matters; the ability of DOJA to implement its business strategies; competition; crop failure; currency and interest rate fmuctuations, and the other
to be exhaustive. Although DOJA has attempted to identify important factors that could cause actual actions, events
described in forward-looking statements, there may be other factors that cause actions, events or results to difger from those anticipated, estimated or intended. Forward-looking statements contained herein are made as of the date hereof and DOJA and its directors, offjcers and employees disclaim any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise. Tiere can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could difger materially from those anticipated in such
place undue reliance on forward-looking statements due to the inherent uncertainty
is expressly qualifjed in its entirety by this cautionary statement. Forward-looking information and other information contained herein concerning management’s general expectations concerning the medical marijuana industry are based
using data from publicly available industry sources as well as from market research and industry analysis and on assumptions based on data and knowledge of this industry which management believes to be
imprecise, although generally indicative
shares and performance characteristics. While management is not aware of any misstatements regarding any industry data presented herein, industry data is subject to change based on various factors. Tiis Presentation may not be reproduced, further distributed or published in whole
this Presentation nor any copy of it may be taken or transmitted into or distributed in any other jurisdiction which prohibits the same except in compliance with applicable laws. Any failure to comply with this restriction may constitute a violation
are required to inform themselves of, and comply with, all such restrictions or prohibitions and DOJA does not accept liability to any person in relation thereto.
* ACMPR Access to Cannabis for Medical Purposes Regulations
Licensed Producer DOJA’s wholly owned subsidiary Northern Lights Marijuana Company received its license to cultivate under the ACMPR* on 06/16/2017. Lifestyle Focused DOJA is the fjrst Licenced Producer to focus exclusively
brand –“lifestyle” is where DOJA believes the medicinal and recreational market meet. Proven Brand Builders CEO Trent Kitsch founded and built SAXX Underwear into the fastest growing premium men’s underwear brands in North America; plan to combine expertise in branded consumer packaged goods with authentic passion for cannabis culture to uniquely position DOJA as a market leading lifestyle brand in the cannabis industry. Handcrafted Approach DOJA will feature a range of curated handcrafted strains ideally suited for Canada’s emerging cannabis market. Grown in the Napa of the North Kelowna, British Columbia’s world class wineries, lakes,
hills draw 1.9 million visitors annually DOJA will leverage the tourism to the area to build a far- reaching brand . Rec Market Opening Soon The Government of Canada is targeting July 1, 2018 as the offjcial start to a legalized recreational cannabis market – Deloitte estimates the base retail market at $4.9 to $8.7 billion on demand of 655,000 kg/yr. Pipeline of Near Term Catalysts Will Drive Value Creation We expect to reach multiple value creating milestones in the next 12 months. 01 02 05 03 06 04 07
11/17 Investor Presentation
11/17 Investor Presentation
DOJA becomes applicant 247 to become a Licensed Producer under the Marijuana for Medical Purposes Regulations, now the ACMPR Commenced the Phase I build-
consistent with ACMPR standards, capable of producing 650 kilograms annually Completed Phase I build-out and requested a pre-license inspection from Health Canada Health Canada conducted a Pre-License Inspection of DOJA’s West Kelowna facility
DOJA’s wholly owned subsidiary Northern Lights Marijuana Company received its license to cultivate on June 16th, 2017 DOJA successfully advanced past the security clearance stage Received notifjcation that Health Canada will prepare to request a pre-license inspection upon confjrmation from DOJA its proposed Purchased the land and 7,100 square foot commercial building associated with its ACMPR application
Submitted Application
October 2013
Phase 1 Build Out
October 2016
Cleared Security
November 2014
Cleared Security
February 2017
PLI Confjrmation
March 2016
Pre-License Inspection
May 2017
PLI Confjrmation
October 2016
License to Cultivate
June 2017 11/17 Investor Presentation
Completed go-public transaction and commence trading on the CSE under the four letter symbol DOJA DOJA will apply for a license to sell oils after receipt of the license to sell dried fmower The Liberal government tabled legislation to legalize marijuana for recreational use Targeted completion date
to increase the corporate production capacity to 5,000 kg/gr by year end
Supply the best handcrafted cannabis strains in Canada and build a lifestyle brand for the impending recreational market.
Opening the 1st DOJA Culture Cafe location on Kelowna’s busiest street –will operate as a cofgee shop and cannabis information center Close acquisition of 22,580 sqft warehouse, home to DOJA’s FUTURE LAB Produce two separate batches
Health Canada’s regulatory requirements
Went Public
August 9, 2017
License to Sell Oils Q2/Q3
2018
Opened Storefront
October 2017
Legalization of Cannabis
July 2018
Acquire 2nd Facility
October 2017
DOJA Future Lab Q2
2018
License to Sell Q1
2018 11/17 Investor Presentation
11/17 Investor Presentation
Welcome to the Napa of the North. Kelowna, British Columbia’s rapidly growing tourism industry accounted for 1.9 million visitors in 2016.
Investor Presentation
Investor Presentation 11/17
Trent Kitsch CEO + Founder Trent founded SAXX Underwear Co. in 2007 and successfully built SAXX into a globally recognizable brand and the fastest growing underwear brand in North America before exiting the business in 2015. In 2013 Trent and his wife Ria founded Kitsch Wines in the Okanagan Valley. Trent is an MBA graduate of the Richard Ivy School of Business with a major in Entrepreneurship. Ryan Foreman President + Founder With over 15 years developing e-commerce operations within the consumer goods space working with infmuential brands and industry disrupters in the lifestyle and action sports markets. Expertise developing and managing teams executing all business aspects from system integrations, domestic and international compliance, fulfjllment, website development and online marketing. Ria Kitsch VP + Founder Ria was formerly head of marketing for SAXX Underwear Co. Since then she became a top salesperson and territory manager for WaterPlaySolutions Corp, quickly identifying and executing strategies to grow in regulated markets. Strong customer service skills and marketing focus make her a front line specialist. Ria earned a Business Honors degree from UBC-O. Jefg Barber CFO Former co-founder & Managing Partner of a boutique M&A advisory fjrm from 2012 to 2016. Previous investment banking roles with CanaccordGenuityCorp, and Raymond James Ltd. Started his career as an Economist with Deloitte. Extensive experience raising capital and advising on M&A transactions. CFA charter holder with a masters degree in Finance and Economics from the University of Alberta.
Investor Presentation
| 7,100 sq. ft. facility purchased in West Kelowna, BC in October 2016 | Three equal sized grow rooms that together are capable of producing 660 kg/yr | Level 7 safe with storage capacity of 650 kg | Received license to cultivate June 16th, 2017 | Harvesting on October
Dominion Facility
GROW ROOM 3 VEG ROOM DRYING ROOM MOTHER ROOM OFFICE
PROCESSING
TRIMMING LABELING PACKAGING DESTRUCTION
ELECTRICAL/ SERVER ROOM
VAULT GROW ROOM 2 GROW ROOM 1
660 KG/YR
Potential Capacity of Phase 1
7.9 Million
Potential Phase 1 Revenue (Excluding Oils)
2.600
Estimated number of patients required to exhaust supply
Ductless air handlers create a sealed indoor garden to maintain climate and prevent pest introduction Surna’s commercial-grade dehumidifjer is ideal for the unique indoor garden environment Biosecurity product uses photocatalytic reaction to sanitize the air and minimizes breakouts of pests, pathogens and mold 01 02 03
11/17 Investor Presentation
State-of-the-art grow rooms, fully
equipment engineered specifjcally for indoor cannabis cultivation
The FUTURE LAB is a game changer for DOJA, it allows us to expand our production capacity by almost 8 times, diversify our strain production, integrate a world class extraction lab and leverage the economies of scale that come from a larger growing space. Our strategy has always been to reach 5,000 kg of cannabis production pre year by the end of 2018, with the addition of the FUTURE LAB we project we will reach our goal in less time and for less capital investment than previously budgeted.
PROPERTY LINE
EXISTING TRANSFORMER PROPERTY LINE
NEIGHBORING BUILDING
PROPERTY LINE
PROPERTY LINE
ALCAN ROAD HIGHWAY 97
EXISTING 8' HIGH SECURITY GATE EXISTING SECURITY FENCEPROPERTY LINE SHARED DRIVEWAY
EXISTING 8' HIGH SECURITY GATE EXISTING 8' HIGH SECURITY FENCE / GATESPROPERTY LINE
EXISTING TRANSFORMER PROPERTY LINE
NEIGHBORING BUILDING
PROPERTY LINE
PROPERTY LINE
ALCAN ROAD HIGHWAY 97
EXISTING 8' HIGH SECURITY GATE EXISTING SECURITY FENCEPROPERTY LINE SHARED DRIVEWAY
EXISTING 8' HIGH SECURITY GATE EXISTING 8' HIGH SECURITY FENCE / GATES EXISTING RAMP LOADING ZONE IRRIGATION DESTRUCTION/ INCINERATION (COMPOST?)LAB PROCESSING EXTRACTION
3'-0"LEVEL 10 VAULT SHIPPING/ RECIEVING TEMPORARY DECONTAMINATION FOR PHASE 1 2 TON 28'X8'-6"
SECURE EXIT THROUGH SHARED DRIVEWAY 8' HIGH 30'-0" WIDE SLIDING GATESECURE EXIT THROUGH SHARE DRIVEWAY
EMERG. EXIT 20 STALLS 7 STALLS JANITOR EXIT EXITPROPERTY LINE
EXISTING TRANSFORMER PROPERTY LINE
NEIGHBORING BUILDING
PROPERTY LINE
PROPERTY LINE
ALCAN ROAD HIGHWAY 97
EXISTING 8' HIGH SECURITY GATE EXISTING SECURITY FENCEPROPERTY LINE SHARED DRIVEWAY
EXISTING 8' HIGH SECURITY GATE EXISTING 8' HIGH SECURITY FENCE / GATES EXISTING RAMP LOADING ZONE IRRIGATION DESTRUCTION/ INCINERATION (COMPOST?)LAB PROCESSING EXTRACTION
3'-0"LEVEL 10 VAULT SHIPPING/ RECIEVING TEMPORARY DECONTAMINATION FOR PHASE 1 2 TON 28'X8'-6"
SECURE EXIT THROUGH SHARED DRIVEWAY 8' HIGH 30'-0" WIDE SLIDING GATESECURE EXIT THROUGH SHARE DRIVEWAY
EMERG. EXIT 20 STALLS 7 STALLS JANITOR EXIT EXITGROW ROOM 4 GROW ROOM 3 GROW ROOM 1 DRYING 1 GROW ROOM 2 MOTHER/VEG/CLONE DRYING 2 GROW ROOM 5 TRIMMING OFFICE OFFICE OFFICE STAFF ENTRY
DECONTAMINATION SECURITY STORAGE STORAGE H/C WASH 50'-0" ORDERS PICKUPS CULTURE CAFE ORDER PROCESSING AND SUPPLIES WELCOME DESK MARKETING MARKETING DISPLAYS PRIVACY SCREEN STORAGE HWT VIEWING WINDOW STORAGE STORAGE H/C WASH H/C WASH H/C WASH STORAGE BUDTENDER (ADVICE) NEW CLIENTS MEETING SPACE SERVER #1 SERVER #2> 5,000 KG/YR
Potential Corporate Production Capacity
60 Million
Potential Phase 1 Annual Revenue (Excluding Oils)
Adds 22,580 sqft. and increases total production capacity more than 5,000 kg/yr
11/17 Investor Presentation
“Tie FUTURE LAB has 325 feet of highway frontage which will be utilized to promote DOJA’s cannabis lifestyle brand to the 1.9 million plus visitors to the Okanagan each year and the 40,000 commuters that drive past the facility each day.” Trent Kitsch, CEO Potential to expand production by 7.6x to more than 5,000 kg/yr. Canada’s largest LP sold 5,985 kg of cannabis over the trailing 12 months Added scale increases competitiveness Secure source of premium cannabis –the wholesale cannabis market is extremely tight with limited strain selection Location, location, location –325 ft of highway frontage and minutes from the airport, ideal location for creating brand awareness and reducing transportation costs and delivery times Leading edge design –utilize advanced growing technologies to enhance fmower quality and yield while minimizing operating costs and environmental footprint Concentrates are the future, the facility will house a state-of- the-art extraction lab that will drive concentrates innovation for DOJA Plan to fjnance up to 75% of the $2.5 million purchase price through debt fjnancing secured by a mortgage•The fjrst phase of the FUTURE LAB is planned to be ready for fjrst cultivation prior to July 1, 2018 01 02 05 06 03 04
11/17 Investor Presentation
DOJA is an inclusive space nestled in downtown Kelowna near the beach front, at 274 Bernard Street. Our common area was designed to inspirit collectivity, creativity and knowledge. Enjoy organic cofgee, fresh food and community. Cannabis Awareness Center
11/17 Investor Presentation
11/17 Investor Presentation
Handcrafted Superlative Flower, Cultivated in the Okanagan Valley. Strain Packaging Preview - Coming Soon
By investing in our community, we build solid foundations that grow into benefjcial outcomes for us all. We’ve put Doja’s fjnancial performance into perspective for you. STOCK SYMBOL DOJA EXCHANGE Canadian Securities Exchange SHARE PRICE (closing price Oct.11, 2017) $1.06/share BASIC SHARES OUTSTANDING 59.8M MARKET CAP (based on Nov.24, 2017 share price) $63.4M CASH BALANCE (as at Oct 11, 2017) 4M MORTGAGE 0.6M PERFORMANCE WARRANTS/OPTIONS O/S1 8M
as at Sept. 30 (w.a. price $0.16/share)
WARRANTS OUTSTANDING 12.9M
as at Sept. 30 (w.a. price $0.26/share)
POTENTIAL PROCEEDS FROM EXERCISE OF DILUTIVES 3.9M
Notes: 1) Management Performance Warrants vest on achieving four separate milestones and have a range of exercise prices 3.8 million vested on license to cultivate 0.2 million vest on license to sell 3.8 million vest on fjrst sales of cannabis as a licensed producer and 0.2 million vest on corporate sales of 500kg of cannabis 11/17 Investor Presentation
WE LOOK FORWARD TO HEARING FROM YOU 2322 DOMINION ROAD WEST KELOWNA, BC V1Z 2W8 INVESTORS@DOJA.LIFE HTTPS://DOJA.LIFE
Step Into the Future. Growth Begins Here.