Investor Presentation TSX: ALEF | OTC: ALEAF | FRA: ARAH December - - PowerPoint PPT Presentation

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Confidential & Proprietary :: Aleafia Health Inc.

Investor Presentation

TSX: ALEF | OTC: ALEAF | FRA: ARAH December 2018

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Aleafia Health Inc. :: Confidential & Proprietary

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VISION :: Driven by our distinguished leadership team, Aleafia Health is moving forward as the premier enterprise engaging in cutting-edge innovation, research, and development that will strengthen the science of medical cannabis. MISSION :: Aleafia Health is committed to being Canada’s leading patient-focused healthcare enterprise offering medical cannabis care. Through education, research, and development, we will advance the cultivation and science of medically authorized cannabis.

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LEGAL DISCLAIMER Cautionary statements regarding forward-looking information

Certain statements herein relating to the Company constitute “forward looking statements”, within the meaning of applicable securities laws, including without limitation, statements regarding future estimates, business plans and/or objectives, sales programs, forecasts and projections, assumptions, expectations, and/or beliefs of future performance, are “forward-looking statements”. Such “forward-looking statements involve unknown risks and uncertainties that could cause actual and future events to differ materially from those anticipated in such statements. Forward-looking statements include, but are not limited to, statements with respect to commercial operations, including production and/or sales of medical marijuana, quantities of future medical marijuana production, anticipated revenues in connection with such sales., the overall projected size of the market, completion and/or expansion of production facilities, and other Information that is based on forecasts of future results, estimates of production not yet determinable, and other key management assumptions. Actual results may differ materially from those expressed or implied by such forward-looking statements and involve risk and uncertainties relating to the Company’s historical experience with regulatory changes, timeliness of government approvals for the granting

• f permits and licenses, changes in medical marijuana prices, actual operating performance of facilities , and other uninsured
• risks. The Company assumes no responsibility to update or revise forward-looking information to reflect new events or

circumstances unless required by law. Contents are provided for general information purposes only and do not constitute an

• ffer to sell or solicitation of an offer to buy any security in any jurisdiction

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ALEAFIA HEALTH :: Investor Highlights

Accelerating to Scaling Profitability in 2019 and Global Dominance in 2020

1) Profitability in Q3 at both Farms (Sub-5% of Funded Grow Capacity) and Clinics (Pre-Launch of Product Offerings to Our Own Consumers). Poised for Exponential Growth at 98 Million Grams Annual Run Rate by end of 2019. 2) Product Cultivation Leadership in Quality, Costs, Weight, Efficiency, and Standardization Creating Predictable and High Demand Cannabis 3) 2nd Mover Advantage in High Capital Cost Production, Processing and Storage Driven Investments Based on Regulatory Body Dynamic Environment and Industry Best Practices 4) Consumer Acquisition Channel Ready to Scale to Life-Time Value Model with Subscription Health & Wellness Services and Delivered to Home Products 5) Partnership Acceleration – Product to Market via Product Processing/Extraction, and Packaging, as well as Retail Storefront via SPE Investment, Brand Joint-Venture 6) International Launch with Health & Wellness Lead Opportunity. Phase 1 = Execute Australia to Open Up Asia-PAC, and then Enter South America & European Union 7) The Team to Exponentially Grow and Scale Profitability

Margin Visibility is Proven & Clear. Time to Accelerate Canada and Scale to International

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GLOBAL PROJECT CANNABIS MARKET

H e a l t h & We l l n e s s D o m i n a t e o v e r N ex t 5 Ye a r s

Legal Marijuana Market Worth US $146.4 Billion by 2025

• CAGR: 34.6%
• Medical marijuana emerged as the largest segment
• 2025 estimated to be valued at US $100.03 billion
• 68% of 2025 Legal Global Cannabis
• April 2018 Grand View Research, Inc.
• Tracking towards Wine & Beer Market

2025 Market Size (US Billions $)

Medical Non-Medical

Capitalize on Medical First Legalization Experience and Market Leadership to Scale Internationally

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Wor ld - C las s A s s ets & S tron g L iq u id ity

Ticker Symbol (close of day Friday, November 23rd, 2018) TSXV: ALEF RECENT SHARE PRICE $2.14 SHARES ISSUED AND OUTSTANDING (basic / diluted) 157 Million / 180 Million MARKET CAPITALIZATION (basic / diluted) $335 Million / $385 Million CURRENT PATIENT COUNT +50,000 CLINIC FACILITIES 22 clinics across Canada PRODUCTION FACILITIES 2 - Port Perry & Niagara CURRENT PRODUCTION CAPACITY ~1 Million Grams 2019 PRODUCTION CAPACITY (indoor, greenhouse & outdoor) 98 Million Grams TOTAL CASH POSITION $27.8 Million CASH PROCEEDS (from all options / warrants) $25.1 Million POTENTIAL CASH (including option / warrant exercise) $52.9 Million

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Aleafia Health Inc.

Parent Company with 4 Key Operating Units

Cannabis Product Production

(Aleafia Farms)

Health & Wellness Services

(Canabo Clinics)

Education Services

(New Brand In-Process)

Cannabis Consumer Experience

(New Brands In-Process + Product Brands) R&D > Seed > Science > Labs > Farm > Grow > Quality Process > Extract > Formulate > Format > Dosages Doctors Education, Diagnosing, Treating and Patient Dosing Referring Doctors Recruitment, Education & Diagnosing Training Educators & Practitioners Patients & Families Leading Engagement Platform with White Label & Customizations Unique IP Content & Data :: Courses, Lessons, Modules Corporate, Government, Insurers, Benefits, Unions Associations Licenses & Certifications eCommerce Marketplace (Medical & Recreational) Retail Storefront Joint Venture Medical & Non-Medical Cannabis Brands (Direct & Partner) Recreational Cannabis Brand x 3 Wholesale Raw Cannabis Sales to Canadian LPs and Exports Packaging > Shipping > Subscription > Scheduled Home Delivery

ALEAFIA HEALTH :: Science Seeding Wellness

At-a-Glance, Quantifications and Key Differentiators

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A L EA FI A H EA LTH :: At-a-Glance, Quantifications and Key Differentiators

Cannabis Product Production

(Aleafia Farms)

Health & Wellness Services

(Canabo Clinics)

Education Services

(New Brand In-Process)

Cannabis Consumer Experience

(New Brands In-Process + Product Brands) Port Perry > 1 Million Grams of Indoor (Selling) + Secured Approval for 60 Million Grams of Outdoor (Q2) Niagara > 37 Million Grams of Indoor Perpetual Harvest (Q1) 10 Million Patient Data Points from 50,000+ Patients & Growing 4+ Years of Experience Today > 22 Canadian Clinics with 100+ Doctors and Practitioners Deep Medical Patient On-Boarding & Diagnosing IP & Processes Leader in Clinic Studies & Strongly Positioned as the Opioid Killer Courseware :: Cannabis 101, Workplace, Referring Doctors, Doctors, Patients/Families Software-as-a-Service :: Multi- Language, Interactive, Gamification Expandable, Customization for Companies & Governments Global Spearhead to Enter & Educate New Countries, Doctors & Patients Canadian & Global eCommerce Marketplace for Cannabis & Lifestyle Products & Services Canadian JV Retail Storefront & US Leading Brands to Canada + International Consumer (Patient + Rec. Customer) Consolidated Database & Premium Experience Supports 3rd Party Clinic Patient Registrations, Orders and LPs Global Repeatable Production Blueprint & Execution Annual Run Rate Capacity of 98 Million Grams in 2019 (15 Million Agreement to CannTrust)

Acceleration Partners

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BOARD OF DIRECTORS

LEA M RAY

• DR. MICHAEL

VERBORA WILLIAM STEWART MARK J SANDLER GARY GOODYEAR RAF SOUCCAR

JULIAN FANTINO

Chairman

• Chief of Police, Toronto (‘00-’05), York (‘98-

’00) and London (‘91-’98), Ontario’s Commissioner of Emergency Mang. (‘05-’06)

• Ontario Provincial Police Commissioner (‘06-

’10), Minister of Veterans Affairs (‘13-’15)

Global Leading & Unparalleled Law Enforcement, Regulatory, Government, Legal, Accounting and Cannabis Experience

• RCMP, Deputy

Commissioner of Federal and International Policing (34 years)

• Prime Minister

appointed Member, Task Force on Marijuana Legalization & Regulation

• Canada’s largest Fire

Service as Chief of Toronto Fire Services (40 years of service)

• Commissioned

Officer of the Canadian Armed Forces

• Chartered

Professional Accountant (CPA)

• Director ICD.D, Chair
• f Audit, Finance and

Governance Committees and Board Vice-Chair

• PWC, VP Corporate

Finance, of Warner

• Bros. Entertainment

Canada Inc. (19 years)

• Doctor of

Chiropractic, Member of Parliament

• Minister of State,

Science and Technology, Minister

• f State for the

Federal Economic Development Agency

• Federal Minister of

Veterans Affairs (‘13- ’15)

• Cooper, Sandler,

Shime & Bergman LLP,

• Chair, Law

Foundation, Ontario, Adjunct Professor, Osgoode Hall Law School

• Chief Medial Officer,

Doctor, Completed 10,000+ cannabinoid therapy consultation

• Assistant Professor,

McMaster University School of Medicine

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EXECUTIVE TEAM | EXECUTION FOCUSED

1) Geoff Benic, CEO 2) Benjamin Ferdinand, CFO 3) Greg Rossi, COO 4) Trevor Newell, CMTO 5) Lucas Escott, SVP Production 6) Gary Goodyear, President Clinic Operations 7) Nicholas Bergamini, VP Public Affairs

Proven Exponential Global Growth Strategy, Execution and Shareholder Value Creation

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VALUATION

S i g n i f i c a n t d i s c o u n t t o p e e r g r o u p ; m u l t i p l e e s c a l a t i o n u p o n e x e c u t i o n

Enterprise Value / 2020 E EBITDA

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Appendix

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MILESTONES ON THE JOURNEY

Aleafia Inception

2016

3 Rounds of Financing

Friends & Family

MAR

TSX Listing

TSX Venture listing as AELF.TSXV

MAR

Niagara Facility

Announce acquisition of Niagara Greenhouse

MAY

1st Harvest

Pre-Sold to CannTrust

MAY

Port Perry

Secure Health Canada bulk sales license

SEP

2nd Harvest

Sold to Licensed Producer

SEP

Medical Study

Sleep Study w Cronos

SEP

NASDAQ Listing

Application Submitted

OCT

Merger

Aleafia & Canabo merge 22 clinics, 40k patients

JAN

Port Perry Grow

Partner with CannTrust

• n Medical Growth Cycle

JUN

Niagara Facility

Close on 160,000 sq. ft Automated Greenhouse

JUL

Facility Expansion

Adding 60 million grams grow capacity in Secure Outdoor Expansion

OCT

Clinic Expansion

Expansion of Telemedicine

OCT

Port Perry

Acquired cultivation facility

DEC

2016

Port Perry

Secure Health Canada ACMPR License to Produce

DEC

2018

1st Cannabis Sale

Sold to CannTrust

SEP

Warrant Trigger

Performance based

SEP

2019

Retail JV w Serruya

Proven Brands, + $10M Private Equity Investment

NOV

1st Global Expansion

Australia (CannaPacfic 10%)

NOV

Medical Study

Pharmacogenetics Study w G420 & AKESOgen

NOV

Global Education

D2L Platform + Medical IP

NOV

Profitability (Farms, Clinics)

Q3 Earnings

NOV

Future Direction

• Niagara Go-Live, Licensed & Operational
• Educational Platform & Courses
• Cannabis Brands
• Digital Patient Registration & On-line

Prescription Orders

• Additional International Expansions

NEW

2017