Q2 2019
Investor Presentation
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,
Q2 2019
Investor Presentation
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
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
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
Bhang, DeepCell and other products (including white label) Expanding product ofgering and distribution
Capitalization: Basic Shares Outstanding
............................ 83.0mmWarrants: .............................. 28.3mm Options: ....................................4.7mm Convert: .................................... 5.1mm Fully Diluted Shares Outstanding
.......................... 122.9mmBalance Sheet: Cash (March 31, 2019)........$8.1mm Management and Insider Ownership
....................... 14%Executive Summary
cannabis products
GMP-standard indoor production facility
management team
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
Health Canada Q4 2017
2018
Q1 2018
Q2 2018
sell and export award winning cannabis chocolate and derivative products
Sapphire Salt and Chewable Gems from DeepCell Industries Q3 2018
Health Canada
2019
Q1 2019
with OCS
70 tonne extraction facility Q2 2019
Health Canada
to Health Canada approval
production
Gel Capsules (accepted by OCS)
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
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
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
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 20Once Less than once a month 1-3 Times per month At least once a week Daily
600Users (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
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
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
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
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
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.
POWERED BY INDIVA POWERED BY INDIVA
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
aeroponically indoors using less water and energy than
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
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.
™
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
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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
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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 CULTIVATION
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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
OPERATIONS
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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
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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
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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
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
MARKETING
launched in 2017; mailing list of up to 5,200 clients
wellness, cultural, and community events across Canada
Customer Acquisition Strategies
We are for
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
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
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
Manufacturing
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:
distillate for edibles and derivatives
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
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
fund retrofjt out of existing cash resources, measured expansion over time
International Expansion
INTERNATIONAL DISTRIBUTION & PRODUCTION
export internationally
Expansion Path
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
Fully funded to complete extraction facility
Bhang, DeepCell and other products (including white label)
Strong platform of globally recognized consumer cannabis brands
Experienced management team
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