Investor Presentation Q2 2019 TSVX: NDVA OTCQX: NDVAF 2/22 I N V - - PowerPoint PPT Presentation

investor presentation
SMART_READER_LITE
LIVE PREVIEW

Investor Presentation Q2 2019 TSVX: NDVA OTCQX: NDVAF 2/22 I N V - - PowerPoint PPT Presentation

Investor Presentation Q2 2019 TSVX: NDVA OTCQX: NDVAF 2/22 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,


slide-1
SLIDE 1

Q2 2019

Investor Presentation

slide-2
SLIDE 2

2/22 OTCQX: NDVAF TSVX: 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 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.

Forward Looking Statement

slide-3
SLIDE 3

3/22 OTCQX: NDVAF TSVX: NDVA I N V E S T O R P R E S E N TAT I O N

Well positioned for edibles and derivatives

  • 70 tonne extraction facility to produce 4 million grams of distillate for INDIVA,

Bhang, DeepCell and other products (including white label) Expanding product ofgering and distribution

  • Sales have begun through the Ontario Cannabis Store (OCS.ca)
  • Additional provincial supply deals in negotiation

Capitalization: Basic Shares Outstanding

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

Warrants: .............................. 28.3mm Options: ....................................4.7mm Convert: .................................... 5.1mm Fully Diluted Shares Outstanding

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

Balance Sheet: Cash (March 31, 2019)........$8.1mm Management and Insider Ownership

....................... 14%

Executive Summary

  • Award-winning

cannabis products

  • State-of-the-art

GMP-standard indoor production facility

  • Experienced

management team

slide-4
SLIDE 4

4/22 OTCQX: NDVAF TSVX: NDVA I N V E S T O R P R E S E N TAT I O N

*Subject to Health Canada approval **Subject to AGCO approval

Sales and Expansion Success

2017

Q3 2017

  • Indiva receives Cultivation License from

Health Canada Q4 2017

  • Indiva completes RTO and begins trading
  • n TSX Venture exchange under NDVA

2018

Q1 2018

  • Expansion to 40,000 square feet begins

Q2 2018

  • Indiva and Bhang create JV to manufacture,

sell and export award winning cannabis chocolate and derivative products

  • Indiva licenses Ruby Cannabis Sugar,

Sapphire Salt and Chewable Gems from DeepCell Industries Q3 2018

  • Indiva receives Sales License from

Health Canada

2019

Q1 2019

  • Indiva announces supply agreement

with OCS

  • Indiva hires Lucid Lab Group to build

70 tonne extraction facility Q2 2019

  • 3 New fmower rooms aproved by

Health Canada

  • 5 additional fmower rooms are subject

to Health Canada approval

  • Capacity: 3,000kg annual fmower

production

  • Introduction of Dry Flower, Tinctures &

Gel Capsules (accepted by OCS)

slide-5
SLIDE 5

5/22 OTCQX: NDVAF TSVX: NDVA I N V E S T O R P R E S E N TAT I O N Capacity: 1,000kg annual fmower production Capacity: 3,000kg annual fmower production **Farm Gate Store 3 New fmower rooms *5 additional fmower rooms *Extraction facility operational Capacity: 70 tonnes biomass, 4 million grams distillate Processing & commercial kitchen

  • perational

OCS Product Call

Q1

2019

Q2

2019

Q3

2019

Q4

2019

2019 Roadmap for Revenue Growth

For sale at OCS.ca and in stores Introduction of Vape Pens, Bhang Chocolate, Chewable Gems, Ruby Sugar & Salt Introduction of Dry Flower, Tinctures & Gel Capsules (accepted by OCS)

*Subject to Health Canada approval **Subject to AGCO approval

slide-6
SLIDE 6

6/22 OTCQX: NDVAF TSVX: NDVA I N V E S T O R P R E S E N TAT I O N

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 Source: PBO

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

slide-7
SLIDE 7

7/22 OTCQX: NDVAF TSVX: NDVA I N V E S T O R P R E S E N TAT I O N

Edibles Market Share in Mature Markets

Flower Concentrate Edibles Shake/Trim Pre-Rolled Others Non-Edibles Devices

CALIFORNIA OREGON NEVADA COLORADO

15% 39% 25%

17%

4% 54.1% 23.4%

13.4%

7.2% 1.6% 0.3% 7% 43% 27%

17%

3% 3% 41% 30%

18%

6% 5%

Source: BDS Analytics, Colorado Department of Revenue, Cannabis Business Executive

slide-8
SLIDE 8

8/22 OTCQX: NDVAF TSVX: NDVA I N V E S T O R P R E S E N TAT I O N

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

73 ON

32 BC 9 12

Number of licences issued by province

Source: Mackie Research, 420intel.com

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

slide-9
SLIDE 9

9/22 OTCQX: NDVAF TSVX: NDVA I N V E S T O R P R E S E N TAT I O N

INDIVA International Brands

Our aim is to bring our family

  • f global cannabis brands to

Canadians, and as marijuana laws liberalize in Canada and internationally, Indiva will use its Canadian operations as a platform to open new markets for its products.

Global Family

  • f Brands

POWERED BY INDIVA POWERED BY INDIVA

slide-10
SLIDE 10

10/22 OTCQX: NDVAF TSVX: NDVA I N V E S T O R P R E S E N TAT I O N

INDIVA Products Stand for Quality

INDIVATM offers an array of dried cannabis flowers, oils and extracts. We have THC, CBD, and hybrid

  • strains. Our dry fmower is grown

aeroponically indoors using less water and energy than

  • ther grow methods.
slide-11
SLIDE 11

11/22 OTCQX: NDVAF TSVX: NDVA I N V E S T O R P R E S E N TAT I O N

Products Powered by INDIVA

BhangTM is the most awarded line

  • f cannabis chocolate in the world.
slide-12
SLIDE 12

12/22 OTCQX: NDVAF TSVX: NDVA I N V E S T O R P R E S E N TAT I O N

Products Powered by INDIVA

RubyTM sugars and salts are ‘Flexible Edible’ cannabis products created to easily incorporate into your everyday food and drink.

slide-13
SLIDE 13

13/22 OTCQX: NDVAF TSVX: NDVA I N V E S T O R P R E S E N TAT I O N

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

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

Jamie Rifg, P.Eng

Vice President Corporate Development

15+ years experience in capital markets and institutional sales CREATIVE & BRAND DESIGN

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

Tom Borowicz

Chief Brand Offjcer

Over 30 years of experience in marketing, branding, print/digital advertising and design with Fortune 500 companies CULTIVATION

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

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 one of the fjrst growers at one

  • f the largest Licensed Producers in Canada

OPERATIONS

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

Rob Carse

Vice President Operations

20 years of experience in Operations and Supply Chain management in large CPG 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, confectionary and beverage companies QUALITY ASSURANCE AND COMPLIANCE

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

Darrin Statchuk

Director of Quality Assurance and Compliance

25 years working experience within the pharmaceutical / medical device industry and food industry with responsibility for all the licensing activities HUMAN RESOURCES

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

Sherry Kelly

Human Resources Manager

15 years of Human Resources management experience including strategic human resources planning, talent management, organizational development, and leadership and management coaching

Talented & Experienced Team

slide-14
SLIDE 14

14/22 OTCQX: NDVAF TSVX: NDVA I N V E S T O R P R E S E N TAT I O N

WHOLESALE STRATEGY

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

MARKETING

  • CannSell education module to go live in July 2019
  • SEO, E-store, blog, and social media campaigns

launched in 2017; mailing list of up to 5,200 clients

  • 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

Customer Acquisition Strategies

We are for

  • twenty. You
  • buy. You help.
slide-15
SLIDE 15

15/22 OTCQX: NDVAF TSVX: NDVA I N V E S T O R P R E S E N TAT I O N 15/22 OTCQX: NDVAF I N V E S T O R P R E S E N TAT I O N

London Facility

slide-16
SLIDE 16

16/22 OTCQX: NDVAF TSVX: NDVA I N V E S T O R P R E S E N TAT I O N

Production Facility

slide-17
SLIDE 17

17/22 OTCQX: NDVAF TSVX: NDVA I N V E S T O R P R E S E N TAT I O N

40,000 square foot building purchased February 2019 Extraction and processing facility under construction Retail store to be built on site

London Facility

  • Cultivation
  • Oil Extraction
  • Processing
  • Product

Manufacturing

  • Retail
slide-18
SLIDE 18

18/22 OTCQX: NDVAF TSVX: NDVA I N V E S T O R P R E S E N TAT I O N

London Facility

Annual production at full capacity:

  • 4mm grams of

distillate for edibles and derivatives

  • 3mm grams of fmower

Flower Flower Indiva Store Oil Extraction and Processing Process Dry 2 Trim 2 Utility Room Extraction Flower Flower Flower Flower Flower Flower Mother

Pump Str/Rec Lab Storage

Pack Dry Trim Admin

slide-19
SLIDE 19

19/22 OTCQX: NDVAF TSVX: NDVA I N V E S T O R P R E S E N TAT I O N

Domestic Expansion

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 Expansion

INTERNATIONAL DISTRIBUTION & PRODUCTION

  • Acquisition of license in Denmark creates gateway to Europe
  • Agreements with US cannabis products companies to use Canada to produce and

export internationally

Expansion Path

  • Flowers
  • Oil
  • Products
slide-20
SLIDE 20

20/22 OTCQX: NDVAF TSVX: NDVA I N V E S T O R P R E S E N TAT I O N

Why Invest

Attractive revenue growth profjle

  • Driven by extraction facility beginning operations in near term (Q3/Q4 2019)
  • Driven by edibles and extracts business in the medium term (2020+)

Fully funded to complete extraction facility

  • 70 tonne extraction facility to produce 4 million grams of distillate for INDIVA,

Bhang, DeepCell and other products (including white label)

  • State-of-the-art 40,000 square foot GMP-standard indoor production facility

Strong platform of globally recognized consumer cannabis brands

  • Targeting Canadian and international markets
  • Limitless product options with extracts and edibles

Experienced management team

  • From management to cultivation and distribution, INDIVA’s team is cut from experience
slide-21
SLIDE 21

INVESTOR RELATIONS CONTACT INFORMATION Niel Marotta, President & CEO T: 519-649-6686 ext. 200 • C: 613-883-8541 • E: niel@indiva.com www.indiva.com @indivalife