INVESTOR PRESENTATION A p r i l 2 0 1 9 FORWARD LOOKING STATEMENTS - - PowerPoint PPT Presentation

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INVESTOR PRESENTATION A p r i l 2 0 1 9 FORWARD LOOKING STATEMENTS - - PowerPoint PPT Presentation

INVESTOR PRESENTATION A p r i l 2 0 1 9 FORWARD LOOKING STATEMENTS Some of the statements contained in the following material are forward-looking statements that are based on current expectations, estimates, forecasts, projections, beliefs


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INVESTOR PRESENTATION

A p r i l 2 0 1 9

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FORWARD LOOKING STATEMENTS Some of the statements contained in the following material are “forward-looking statements” that are based on current expectations, estimates, forecasts, projections, beliefs and assumptions made by management of the Company about the industry in which it operates. Words such as “expect”, “anticipate”, “intend”, “plan”, “believe”, “seek”, “estimate”, and variations of such words and similar expressions are intended to identify such forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements should not be in any way construed as guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Accordingly, readers should not place undue reliance on forward-looking statement or information. Forward-looking statements are based on certain assumptions and analyses made by the Company in light of the experience and perception of historical trends, current conditions and expected future developments and other factors it believes are appropriate, and are subject to risks and uncertainties. In making the forward looking statements included in this Presentation, the Company has made various material assumptions, including but not limited to: (i) obtaining the necessary regulatory approvals; (ii) that regulatory requirements will be maintained; (iii) general business and economic conditions; (iv) the Company’s ability to successfully execute its plans and intentions; (v) the availability of financing on reasonable terms; (vi) the Company’s ability to attract and retain skilled staff; (vii) market competition; (viii) the products and technology offered by the Company’s competitors; and (ix) that our current good relationships with our service providers and other third parties will be maintained. While management 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 the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These risks, uncertainties and other factors include, but are not limited to risks associated with general economic conditions; adverse industry events; marketing costs; loss of markets; future legislative and regulatory developments involving medical cannabis; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; the medical cannabis industry in Canada and the United States generally, income tax and regulatory matters; the ability of the Company to implement its business strategies including expansion plans; competition; crop failure; currency and interest rate fluctuations, and the other risks discussed under the heading “Risk Factors” in the Company’s Prospectus available on SEDAR www.sedar.com. The foregoing factors are not intended to be exhaustive. The Company does not intend, and does not assume any obligation, to update these forward-looking statements, except as required under applicable securities legislation. For more information on the Company, readers should refer to www.sedar.com for the Company’s filings with the Canadian securities regulatory authorities

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3

Bu Buil ilding ing the worl rld’s ’s strong ngest ca cannabis brand

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  • 1. WIN IN THE LARGEST MARKET
  • California is the largest and most competitive cannabis market in the world
  • PLUS is already the #1 edibles brand in California (up from #34 just over one year ago)
  • We intend to solidify this position by launching new products organically and through acquisition
  • 2. EXPAND TO ADDITIONAL LEGAL MARKETS
  • PLUS intends to expand into other legal adult-use markets in the US and internationally through the

deployment of pop-up manufacturing facilities in 2019

  • PLUS intends to launch a CBD product line throughout the United States (over 41 states) in 2019
  • 3. FOUNDATION ESTABLISHED TO EXECUTE
  • PLUS is led by a world class leadership team
  • We have the right operational team that has rapidly scaled manufacturing
  • PLUS has established a strong cash position raising over US$30M and going public on the CSE in 2018
  • PLUS has a simple share structure which includes a number of strategic investors

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PLUS INTENDS TO BUILD THE WORLD’S STRONGEST CANNABIS BRAND

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PLUS INTENDS TO BUILD THE WORLD’S STRONGEST CANNABIS BRAND

EXPAND TO ADDITIONAL LEGAL MARKETS WIN IN THE LARGEST MARKET FOUNDATION ESTABLISHED TO EXECUTE

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EXPAND RAPIDLY ACROSS THE WORLD WIN IN THE LARGEST MARKET LAYING A STRONG FOUNDATION

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EXPAND TO ADDITIONAL LEGAL MARKETS WIN IN THE LARGEST MARKET FOUNDATION ESTABLISHED TO EXECUTE

PLUS INTENDS TO BUILD THE WORLD’S STRONGEST CANNABIS BRAND

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THE BEST BRANDS ARE LIKELY TO EMERGE FROM CALIFORNIA BECAUSE IT IS THE LARGEST LEGAL CANNABIS MARKET…

U.S. CANNABIS REVENUE BY STATE1

(Top 5, 2018, $M USD)

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(1) Arcview Market Research & BDS Analytics: The State of Legal Marijuana Markets 6th edition Update

$0 $500 $1,000 $1,500 $2,000 $2,500 CA CO WA MI OR

W I N I N T H E L A R G E S T M A R K E T

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NUMBER OF EDIBLE BRANDS BY STATE1

(2017, CA vs. CO)

…AND BECAUSE IT IS THE MOST COMPETITIVE MARKET

Due to a long history of medical legalization, California is also the most competitive market “Companies gain advantage against the world’s best competitors because

  • f pressure and challenge.”
  • Michael Porter, The Competitive Advantage of

Nations

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50 100 150 200 250 CA CO

(1) BDS Analytics GreenEdge™ reporting; count of edible brands with revenue in 2017, excluding tinctures

W I N I N T H E L A R G E S T M A R K E T

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50% 60% 70% 80% 90% 100% 110% 120% 130%

Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018

THE STRONGEST BRANDS WILL EMERGE FROM EDIBLES

Average unit price as % of initial price since Q2 2014 in Colorado and Washington

P R I C E I N D E X T I M E Edibles Concentrates Flower

(1) BDS Analytics GreenEdge™; Weighted average price by Subcategory by Quarter Q2 2014 to Q2 2018, data shown as percent of Q2 2014 price per unit

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PRICE OF KEY CATEGORIES SINCE RECREATIONAL LEGALIZATION1

Brands are built in differentiated, not commoditized, product categories. Prices in flower and concentrates are already commoditizing in recreational markets.

W I N I N T H E L A R G E S T M A R K E T

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PLUS HAS GROWN TO THE #1 EDIBLE BRAND IN CALIFORNIA IN JUST OVER A YEAR

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Market Share ($ Sales, %) Retail Sales (Units)

136.9K 292.0K 574.4K 760.2K

0.61% 1.05% 4.79% 5.23% 9.89% 13.65%

K 100K 200K 300K 400K 500K 600K 700K 800K 900K 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018

Retail Sales (K) Edibles Market Share (%)

PLUS RETAIL UNIT SALES AND EDIBLES MARKET SHARE OVER THE LAST SIX QUARTERS1

#34 #21 #5 #4 #1 #1

Market Share Rank

W I N I N T H E L A R G E S T M A R K E T

(1) BDS Analytics GreenEdge™; Retail Sales Q2 2017-Q4 2018: Edibles Excluding Tinctures;

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PLUS HAS THE #1 AND #2 BEST-SELLING SKUS ACROSS ALL CATEGORIES IN CALIFORNIA

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(1) BDS Analytics GreenEdge™ Retail Sales Q4 2018: All categories

#1 SKU Q4 2018 across all categories in California1 #2 SKU Q4 2018 across all categories in California1

W I N I N T H E L A R G E S T M A R K E T

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PLUS HAS 3 OF THE 5 BEST-SELLING SKUS ACROSS ALL CATEGORIES IN CALIFORNIA

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W I N I N T H E L A R G E S T M A R K E T

$M $1M $1M $2M $2M $3M $3M $4M $4M $5M PLUS "Uplift" THC Gummies PLUS "Restore" THC/CBD Gummies Tinctures #1 Gummies #1 PLUS "CBD Relief" Gummies Gummies #2 PLUS "Create" THC Gummies Chocolate Bites #1 Tinctures #2 Gummies #3 Millions

California top 10 products by retail sales (Q4 2018)1

RETAIL SALES ($M)

Product Name

#1 Best-Selling CBD Edible in CA

(1) BDS Analytics GreenEdge™ Retail Sales Q4 2018: All categories

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WE HAVE EXCELLED IN THE CALIFORNIA MARKET BY PAIRING AGILE FOOD MANUFACTURING WITH THOUGHTFUL BRAND TEAMS

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PLUS currently operates in a 12,000 square foot licensed food manufacturing facility which has an annual production capacity of $50M

W I N I N T H E L A R G E S T M A R K E T

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PLUS INTENDS TO CEMENT ITS POSITION IN CALIFORNIA THROUGH NEW PRODUCT LAUNCHES AND ACQUISITIONS

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Gummies, 41% Baked Goods, 12% Pills , 12% Other Candies (Mints, Hard Candy), 10% Chocolate Bars, 10% Chocolate Bites, 8% Beverages, 5% Other, 2%

ü Win in largest edible segment (30% market share) ü Complete acquisition in second largest edibles segment (Q4 2018) q Launch new products in other market segments (2019) CA EDIBLES MARKET BY SEGMENT (2H 2018)1

W I N I N T H E L A R G E S T M A R K E T

(1) BDS Analytics GreenEdge™ Retail Sales Q4 2018: Edibles excluding tinctures

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EXPAND RAPIDLY ACROSS THE WORLD WIN IN THE LARGEST MARKET LAYING A STRONG FOUNDATION

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EXPAND RAPIDLY ACROSS THE WORLD WIN IN THE LARGEST MARKET LAYING A STRONG FOUNDATION EXPAND TO ADDITIONAL LEGAL MARKETS WIN IN THE LARGEST MARKET FOUNDATION ESTABLISHED TO EXECUTE

PLUS INTENDS TO BUILD THE WORLD’S STRONGEST CANNABIS BRAND

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THE U.S. CANNABIS MARKET IS GROWING RAPIDLY

$75B by 2030

THE U. S . CAN N ABI S M ARKET I S EXPECTED TO BE

C B D O N L Y N O L E G A L C A N N A B I S A D U L T U S E / R E C R E A T I O N A L M E D I C A L

1 The majority of states already have some form of legal cannabis. PLUSTM already has winning products in each of the adult use, medical, and CBD segments.

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E X PA N D T O A D D I T I O N A L L E G A L M A R K E T S

Notes: National Conference of State Legislatures (1) Cowen Research Ahead of the Curve Series: CANNABIS: $75B Opportunity; Category Cross-Currents Keep US Cautious On Booze (April 4, 2018)

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PLUS INTENDS TO EXPAND TO NEW JURISDICTIONS WITH QUICKLY DEPLOYABLE PRODUCTION FACILITIES

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Deployable, smaller versions of current equipment that ensure consistent manufacturing processes across different jurisdictions

  • Requires $2M in capex
  • Enables $20M+ in annual revenue production capacity
  • Fits in a shipping container and unpacks to less than

5,000 square feet

  • Automates the processes that delivers consistency

PLUS proposes to enter new markets both through direct ownership and partnerships

  • To become a dominant global brand, priorities are speed

and market share

Market 2022E Market Size1 Canada $5.9B Florida $1.6B New York $1.6B Michigan $1.4B Massachusetts $1.1B Nevada $0.8B

KEY FOCUS MARKETS

E X PA N D T O A D D I T I O N A L L E G A L M A R K E T S

OUR STRATEGY

(1) Arcview Market Research & BDS Analytics: The State of Legal Marijuana Markets 6th edition Update

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TOP CANNABIS BRANDS COULD COMMAND SIZABLE MARKET SHARE

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43% of global non-alcoholic beverages industry

SOURCE: STATISTA

32% of U.S. chocolate market

SOURCE: CNBC

42% of global tooth paste market, 2017

SOURCE: FORBES

  • $32B global cannabis market by 20211
  • $5B+ edibles retail sales by 2021
  • 16% of the cannabis market was edibles in 20182
  • More than $1B revenue opportunity by 2021 for largest edibles brand assuming

assuming half the penetration of Coca-Cola or Colgate

E X PA N D T O A D D I T I O N A L L E G A L M A R K E T S

(1) The Brightfield Group, https://www.forbes.com/sites/monazhang/2017/11/07/global-marijuana-market-31-billion-investors-cautious/#3c8206997297 (2) GreenEdge™ Retail Sales, NCIA Report

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PLUS is already commanding sizable market share in the largest edibles segment

PLUS SEEKS TO ACHIEVE THESE LEVELS OF MARKET OWNERSHIP

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E X PA N D T O A D D I T I O N A L L E G A L M A R K E T S

CA Gummy Market — Q4 20181

41% of Total Edibles Market

PLUS 31%

(1) BDS Analytics GreenEdge™; Retail Sales Q4 2018: Edibles Excluding Tinctures;

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THE CBD MARKET IS EQUALLY EXCITING

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The farm bill passed in December 2018 making Hemp CBD production legal in the US at the federal level Some estimate that the industry could be as large as $22B by 2022

E X PA N D T O A D D I T I O N A L L E G A L M A R K E T S

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PLUS INTENDS TO EXPAND CBD MARKET REACH

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PLUS currently has the #1 selling CBD edible product in California’s regulated cannabis market1 We intend to leverage our expertise in manufacturing and branding to seek new markets for a hemp-derived version

  • f our CBD product as regulatory environment for ingestible, hemp-derived CBD becomes clear

E X PA N D T O A D D I T I O N A L L E G A L M A R K E T S Currently, only cannabis-derived CBD is allowed in California’s regulated cannabis channels. We do not expect any material challenges in the manufacturing of PLUS Gummies using hemp- derived CBD and are therefore actively preparing for entry into the national hemp-derived CBD market, pending regulatory clarity.

(1) BDS Analytics GreenEdge™; Retail Sales Q4 2018: Edibles Excluding Tinctures;

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EXPAND RAPIDLY ACROSS THE WORLD WIN IN THE LARGEST MARKET LAYING A STRONG FOUNDATION

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EXPAND RAPIDLY ACROSS THE WORLD WIN IN THE LARGEST MARKET LAYING A STRONG FOUNDATION EXPAND RAPIDLY ACROSS THE WORLD WIN IN THE LARGEST MARKET LAYING A STRONG FOUNDATION EXPAND TO ADDITIONAL LEGAL MARKETS WIN IN THE LARGEST MARKET FOUNDATION ESTABLISHED TO EXECUTE

PLUS INTENDS TO BUILD THE WORLD’S STRONGEST CANNABIS BRAND

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PLUS IS LED BY A WORLD CLASS LEADERSHIP TEAM

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F O U N D AT I O N E S TA B L I S H E D T O E X E C U T E

JAKE HEIMARK

DIRECTOR, CHIEF EXECUTIVE OFFICER Formerly Product Manager, Gumroad Risk, Facebook A.B. Economics, Brown University

  • Sc. B. Human Biology, Brown University

CRAIG HEIMARK

CHAIRMAN, CHIEF STRATEGY OFFICER

JON PAUL

CHIEF FINANCIAL OFFICER

MATT SCHMIDT

NON-EXECUTIVE DIRECTOR

SANDY POSA

NON-EXECUTIVE DIRECTOR

JENNIFER TUNG

CHIEF RISK OFFICER Formerly Legal Director, Uber Lead Counsel, Facebook J.D. Harvard Law School B.A. Sociology, Stanford University Formerly CIO, UBS Supervisory Board, Deutsche Böerse A.B. Economics, Brown University

  • Sc. B. Biology, Brown University

Formerly CFO, Fair Oaks Farms 25+ years experience in CFO Roles M.B.A Harvard Business School B.S. Accounting, University of Illinois Current EVP at The Green Organic Dutchman Holdings Ltd. A.B. Commerce, University of Windsor M.B.A Wilfrid Laurier University Current Director, Perdue Farms Former VP, P&G A.B. Economics, Brown University M.B.A. University of Chicago

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PLUS HAS BROUGHT IN THE RIGHT OPERATIONAL & PRODUCT TEAMS TO SCALE

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Key team members include:

  • Former EVP Operations @ Lagunitas Brewing
  • Former Operations Manager @ GRUMA
  • Former chocolatier @ Tcho Chocolate
  • Former Michelin Star Chef
  • Former Pepsi Food Scientist
  • Harvard Chemist

Production capabilities scaled over 500% in 2018 while maintaining industry leading product consistency and dosing

F O U N D AT I O N E S TA B L I S H E D T O E X E C U T E

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PLUS HAS A DIVERSE SHAREHOLDER BASE AND A NUMBER OF STRATEGIC INVESTORS

SHARE CLASS # OF SHARES1 Common (Subordinate Voting) 24,330,799 Class A Common (Proportionate Voting) 15,322,604 Total Shares Outstanding 39,653,403 Warrants 4,092,175 Options 1,748,235 Total as of Jan. 29 20192 45,493,813

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(1) # of shares calculated on an as-converted to Common Share basis (2) Unaudited — subject to update

F O U N D AT I O N E S TA B L I S H E D T O E X E C U T E

All pre-IPO shares are subject to selling restrictions until at least 6-months post-IPO 6,535,947 of the Pre-IPO Shares are subject to a contractual selling restriction until December 31st, 2019

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EXPAND RAPIDLY ACROSS THE WORLD WIN IN THE LARGEST MARKET LAYING A STRONG FOUNDATION

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PLUS INTENDS TO BUILD THE WORLD’S STRONGEST CANNABIS BRAND

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Bu Buil ilding ing the worl rld’s ’s strong ngest ca cannabis brand