Q4 2019 Cannabis A Better Way Management Presentation Q3 2019 - - PowerPoint PPT Presentation

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Q4 2019 Cannabis A Better Way Management Presentation Q3 2019 - - PowerPoint PPT Presentation

Cannabis A Better Way Management Presentation Q3 2019 Q4 2019 Cannabis A Better Way Management Presentation Q3 2019 Disclaimer This presentation contains forward-looking uncertainties and other factors which may cause the


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SLIDE 1

Cannabis “A Better Way”

Management Presentation Q3 2019

Q4 2019

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SLIDE 2

Cannabis “A Better Way”

Management Presentation Q3 2019

This presentation contains forward-looking statements or forward-looking information within the meaning of applicable securities laws which may include, but is not limited to, statements

  • r

information with respect to the nature

  • f

the business and operations of the GreenField Global Projects Inc (“GreenField”). Often, but not always, forward-looking statements and forward-looking information can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or the negatives thereof or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Examples of such statements include expectations regarding the ability to raise capital and to be able to

  • btain

and maintain all applicable licenses and permits for GreenField’s operations, treatment under governmental regulatory regimes and tax laws, capital expenditure programs and the timing and method of financing thereof and future development plans and status

  • f

assets, future growth and performance. Forward-looking statements and forward-looking information involve known and unknown risks, events or results to differ materially from those described in forward-looking statements and forward- looking information, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward-looking statements and forward-looking information contained herein are made as of the date of this presentation, and GreenField disclaim any obligation to update any forward-looking statements

  • r

forward- looking information if these beliefs, estimates and

  • pinions
  • r

circumstances should change, except as required by applicable law. There can be no assurance that forward-looking statements and forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements and information. Accordingly, readers should not place undue reliance

  • n forward-looking statements and forward-looking

information due to the inherent uncertainty in them. All forward-looking statements and forward-looking information contained or incorporated by reference in this Filing Statement are qualified by this cautionary statement. uncertainties and other factors which may cause the actual results, performance

  • r

achievements

  • f

GreenField, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward- looking statements and forward-looking information. Such factors include, but are not limited to: the difficulties associated with the nature of GreenField's business and

  • perations;

the ability to

  • btain

necessary financing; the economy generally; current and future stock prices; results

  • f
  • perations;

availability

  • f

permits and licenses; market conditions; the regulatory and foreign environment; future capital and other expenditures (including the amount, nature and sources of funding thereof); competitive advantages; fluctuations in foreign currency exchange rates; business prospects and

  • pportunities;

transportation delays, accidents, labour disputes and

  • ther

risks in the medical marihuana industry; political developments; arbitrary changes in law; delays in obtaining governmental approvals and anticipated and unanticipated costs; as well as those factors discussed in the section entitled "Risk Factors" in this presentation. Although GreenField has attempted to identify important factors that could cause actual actions,

Disclaimer

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Cannabis “A Better Way”

Management Presentation Q3 2019

We’ve Done This Before Cannabis is now a Global Industry

Greenfield spent several months designing what was to be, at that time, the most advanced growing facility in Canada. During the development stage several third world and developing countries legalized cannabis causing Greenfield to re-evaluate the industry and make a paradigm shift.

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Cannabis “A Better Way”

Management Presentation Q3 2019

Cannabis “A Better Way”

Management Presentation Q3 2019

Greenfield Global Projects

Jamaica why are we here:

  • Jamaica provides low costs of labour and production, equating to ultra low cost/gram ($0.17-$0.25 per gram,

$0.95-$1.40/g of extract) Jamaica has an ideal climate for year-round production. Supportive and motivated political environment with best credit rating and lowest corruption score of developing countries allowing full cannabis production

What is the Project:

  • Cannabis based cultivation, production, extraction, research and development company located on 109 acres
  • Planned cultivation capacity of 100,000kg+ of biomass and 15,000kg of extracted product per year
  • Facility will be EU-GMP certified, allowing for export of product to global markets

Why we will be successful:

  • Greenfield is comprised of a team of cannabis experts with more than 90 years of LEGAL cannabis experience that

have successfully met the regulatory requirements for cannabis cultivation in Canada and Jamaica

  • Low cost of production in ideal growing conditions
  • Singular focus on achieving positive cash flow

Where we are at:

  • Cultivation license achieved in August 2019 on 6.5 acres (first crop planted Q1 2020), license for production and

R&D license expected Q1 2020

  • EU GMP certification tentatively projected for Q4 2020
  • Planning to IPO on the CSE in Q1 2020
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Cannabis “A Better Way”

Management Presentation Q3 2019

Cannabis “A Better Way”

Management Presentation Q3 2019

100,000kg

Estimated biomass production annually

$0.17 - $0.25

Cost per gram to produce

15,000KG

Estimated extracted product annually

$4.00

Dried flower average wholesale price per gram

$13.00

Cannabis oils average wholesale price per g

Estimated Production and Unit Economics

$0.95 - $1.40

Cost per gram to produce

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Cannabis “A Better Way”

Management Presentation Q3 2019

Cannabis “A Better Way”

Management Presentation Q3 2019

Production cost per gram for Canadian suppliers can range from $1 -2 while production cost in Jamaica is estimated at $0.17 - $0.25 per gram for greenhouse cultivation

Canada Jamaica

CPG Indoor

$1 - $2

CPG Greenhouse

$0.17 - $0.25

Cost of Production Comparison

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Cannabis “A Better Way”

Management Presentation Q3 2019

Cannabis “A Better Way”

Management Presentation Q3 2019

GreenField Operation vs. Competition

Retractable Roof and Sides Hurricane Proof Light Temperature and Humidity Computer Control Kaya St Ann Jacana St Ann Greenfield is bringing 21st century cannabis agriculture to Jamaica for the first time

10 acres of former sugar cane- growing land leased from the government Oliver Rowe & Ben Isaacson Bank of Nova Scotia analysts They estimated the Jamaican assets to be worth about C$45 million and pointed to similar deals done by Canopy Growth Corp. and Aurora Cannabis Inc.

Marigold (Aphria)

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Cannabis “A Better Way”

Management Presentation Q3 2019

Cannabis “A Better Way”

Management Presentation Q3 2019

IGOR KOVALCHUK, MD, PHD, MBA Igor Kovalchuk is a professor in the Department

  • f Biological Sciences at the University of
  • Lethbridge. He is an expert in plant genetic

engineering, including plant transformations, tissue culture, next generation sequencing, gene expression analysis, bioinformatics and molecular

  • biology. He holds 8 patents in the area of

improvement plant transformation and tissue culture DARRYL HUDSON, PHD

  • Dr. Darryl Hudson received a PhD in Molecular

Biology and Genetics from the University of Guelph, Canada in 2010. He has published research in diverse fields including plant biology, genetics, epigenetics, DNA repair mechanisms, and carcinogenesis. In addition to participating in a recently published Cannabis genome sequencing project, Dr. Hudson has been breeding specialized new varieties of Cannabis for both the medical marijuana and agricultural hemp market.

Greenfield will partner with InPlanta Biotechnology

  • InPlanta is the first Canadian nursery licensed in

Canada under the Cannabis Act. Key principals are

  • Dr. Igor Kovalchuk and Dr. Darryl Hudson.
  • Their genetics team has developed several thousand

strains of cannabis, many of which have been patented.

  • InPlanta will review Greenfield’s growing conditions,

cannabinoid specifications and required resistance to local pests; then either recommend or develop a strain that will meet Greenfield requirements.

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Cannabis “A Better Way”

Management Presentation Q4 2019

Cannabis “A Better Way”

Management Presentation Q4 2019

Offtake Agreements – Export to Europe

Signed Offtake and Commercial Supply Agreement with Materia Ventures

  • Materia Ventures is a firm with over 100 years of experience in

Pharmaceutical / Cannabis space, with deep experience and connections across Europe

  • GreenField will supply Materia with flower and oil based

products which will be imported into Malta

  • Quantities and pricing to be determined in definitive

agreement, expected to be full capacity of facility

  • Materia will purchase products from GreenField and import

into the European Union

GreenField to export product to Malta through Materia Ventures offtake agreement Materia Ventures to re- formulate and distribute products across European market

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Cannabis “A Better Way”

Management Presentation Q3 2019

Under the terms of the shareholders agreement Greenfield will spend $5.0M CDN on a cultivation and production facility and issue 1,500,000 shares to J A Johnson for that they receive 51%ownership and 70%

  • f net profit for the first 2 years, 60% for the next 3 years

and 51% thereafter. The revenue share commences with commercial production.

49%

GreenField GreenField Resident Nominee 2%

JA Johnson Partnership

49%

J A Johnson

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Cannabis “A Better Way”

Management Presentation Q3 2019

Cannabis “A Better Way”

Management Presentation Q3 2019

Financial Projections

GreenField’s major advantage will be its cost of production due to location of the assets, this will allow oversized margins when compared to similar companies in first world labour markets. Export opportunities are abundant and being explored in many different areas:

  • Wholesale approach to sales – currently in

talks with 5 Herb Houses in Jamaica where flower would be sold

  • EU-GMP certification allows for global

export

  • Potential to export to Canada for

medicinal use (currently in advanced conversations)

  • Development of GreenField product line in

partnership with the University of Lethbridge, University of the West Indies, and a well known reggae artist

Notes:

  • First harvest assumed for Summer 2020
  • First harvest for 1st expansion is assumed for April 2021
  • First harvest for 2nd expansion is assumed for December 2021
  • First harvest for third expansion is assumed for September 2022
  • *Projections are based on current market information and

management expectations

Production & Expansion Dashboard 2019 2020 2021 2022 2023 Annual yield - Initial acres (grams) 4,418,291 7,363,818 7,363,818 7,363,818 Annual yield - First expansion (grams) 12,806,640 16,008,300 16,008,300 Annual yield - Second expansion (grams) 32,016,600 32,016,600 Annual yield - Third expansion (grams) 21,344,400 53,361,000 Total annual yield (grams) $0 $4,418,291 $20,170,458 $76,733,118 $108,749,718 Flower Revenue (20% of Production) Grams of Flower Available for Sale 20% 883,658 4,034,092 15,346,624 21,749,944 % of Production Capacity Sold 0% 39% 97% 100% 100% Sale Price per Gram of Flower 4.0 4.0 3.5 3.0 2.5 Flower Revenue $0 $1,392,431 $13,734,248 $46,039,871 $54,374,859 Oil Revenue (80% of Production) Grams of Flower Available for Extraction 80% 3,534,633 16,136,366 61,386,494 86,999,774 Grams of Oil from Flower 18% 636,234 2,904,546 11,049,569 15,659,959 % of Production Capacity Sold 0% 39% 97% 100% 100% Sale Price per Gram of Oil $13.0 $13.0 $12.5 $12.0 $11.5 Oil Revenue $0 $3,258,289 $35,316,639 $132,594,828 $180,089,533 Total Revenue (Flower + Oil) $0 $4,650,720 $49,050,887 $178,634,699 $234,464,392 GreenField Portion of EBITDA % 70% 70% 60% 60% GreenField Portion of Revenue $3,255,504 $34,335,621 $107,180,819 $140,678,635 Expenses COGS $0 $1,317,764 $4,631,718 $11,415,200 $14,094,240 Gross Profit $0 $3,332,956 $44,419,169 $167,219,499 $220,370,152 Gross Margin % 72% 91% 94% 94% Operating Expenses $0 $482,405 $1,837,211 $2,706,480 $2,819,250 Lab & Warehousing $0 $275,308 $362,808 $518,680 $599,616 G&A Costs $620,000 $1,468,141 $2,022,641 $2,617,728 $3,015,825 Expansion Costs (Opex) $404,045 $312,136 $624,273 $1,248,545 $0 EBITDA

  • $1,024,045

$794,966 $39,572,236 $160,128,066 $213,935,461 EBITDA % 17% 81% 90% 91% GreenField Portion of EBITDA $ $556,476 $27,700,565 $96,076,839 $128,361,277 Capex $1,353,000 $2,669,000

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Cannabis “A Better Way”

Management Presentation Q3 2019

Cannabis “A Better Way”

Management Presentation Q3 2019

An entrepreneur with over 30 years’ experience working in highly regulated industries, Mike was instrumental in the issuance of the 36th cultivation licence granted by Health Canada for facility located in Duncan BC. Mike is also an Interpretation and application specialist for the Access to Cannabis for Medical Purposes Regulation (ACMPR)

Private & public company entrepreneur for over 20 years as an financier, owner and operator of a number of ventures ranging from real estate to franchising, tech & cannabis. Extensive experience as a venture capitalist and business strategist which includes corporate business development, raising over $5M in financing for an innovative micro brewery as well as $8M in seed and start-up for a medical cannabis licensed producer project in Duncan B.C. Peter currently sits on the board of and as an advisor to both private & publicly listed companies

Mike Hinam CEO Peter Hinam Chief Strategy Officer

Management & Advisors

An experienced businessman and investor in many successful companies. Founded and

  • perated RDA Inc. for 28 years. RDA provides

private and public company clients with consultancy and business brokerage services; trade development and investment prospecting for federal and provincial government clients. In 1999, founded R. D. Financial Corp providing capital sourcing and strategic partnering services. A Certified Professional Accountant (CPA) with over 15 years’ experience in accounting and corporate finance. Served as an advisor and Decision Support for the acquisition of a cultivation licence from Health Canada for a facility located in Duncan BC along with budget and project oversight for the facility construction . Devon is also a Board member

  • n named Publicly listed companies

Dave Dyer CBDO Devon Brown Chief Financial Officer

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Cannabis “A Better Way”

Management Presentation Q3 2019

Cannabis “A Better Way”

Management Presentation Q3 2019

“Invested in the GreenField vision, our team is committed to working in an environment of cooperation and trust. This ensures that the GreenField concept will be driven forward with passion.” John Hinam Project Manager David Maynard Production Kelly Abbott Independent Director Dyson Walker Program Management Director Dean Carman Sales & Marketing Director Ryan Dickman Independent Director Darius Millar Technical Director

Management & Advisors

Scott Walker Business Development Director Jermaine Johnson Vice President

Caribbean Operations

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Cannabis “A Better Way”

Management Presentation Q3 2019

Major Milestones

2017-2019

Stage 1,2,3 Private Placements Total $3.2M Secured 109 Acre Property with Ideal Growing Conditions Completed 6.5 Acre Initial Grow Site Passed Government Cannabis Cultivation Inspection

2019

Q4 Complete Private Placement $2.5M to $3.5M Q4 Order Greenhouses and Cultivation Equipment Q4 Begin Construction of EU GMP Production/Extraction/R&D Facility Q4 Secure Jamaican Export License

2020

Q1 Complete IPO for Minimum $4.5M Q1 Complete Greenhouse Construction Q2 Complete EU GMP Production/Extraction/R&D Facility Q3 First Harvest and Cash Flow Q3 First Expansion

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Cannabis “A Better Way”

Management Presentation Q3 2019

Cannabis “A Better Way”

Management Presentation Q3 2019

Thank You

For Information relating to the company: Peter Hinam Chief Strategy Officer (CSO) 604.710.8331 peter.hinam@greenfieldglobal.ca

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Management Presentation Q3 2019

Appendix

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Cannabis “A Better Way”

Management Presentation Q3 2019

Cannabis “A Better Way”

Management Presentation Q3 2019

‘Justin Keywood, a cannabis analyst with GMP Securities, said in a research note the company’s financial results were “solid” amid broader industry

  • challenges. Aphria has greatly improved in how it operates, along with good

customer pull-through for its brands,” said Keywood, who maintains a ‘buy’ rating and $14 target on Aphria’s stock. The company said its cash cost to produce dried cannabis increased slightly in the first quarter to $1.43 a gram, from $1.35 a gram in the prior quarter. Seaport Global analyst Brett Hundley said in a research note published last week that producing cannabis at the lowest cost possible is “the most important factor at this particular point in time” for the sector.’

Source: BNN Bloomberg, 16 October 2019

Aphria surges as it posts another profit on higher sales, lower costs

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Cannabis “A Better Way”

Management Presentation Q3 2019

Cannabis “A Better Way”

Management Presentation Q3 2019

Current Share Structure

Management, Employees, and Advisors 17,100,000 Financing Round 1 @ $0.10 5,780,000 Financing Round 2 @ $0.15 1,562,533 Financing Round 3 @ $0.25 9,004,211 J A Johnson Agreement 1,500,000 Total Outstanding 34,946,744

* Based on market conditions

Pre-Money Valuation @ $0.35 a Share $12,231,360

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Cannabis “A Better Way”

Management Presentation Q3 2019

Cannabis “A Better Way”

Management Presentation Q3 2019

  • Management & Team: Experienced management team in the space, with major supporters backing

the project

  • Pro Cannabis Jamaican Government; Full support from all levels of government
  • Ideal Location: Jamaica provides an ultra-low cost of production ($0.17 - $0.25 / gram)

environment, enabling the highest possible margins in the export market (~85%)

  • EU-GMP Certification: Providing immense export opportunity into major North American and

European markets

  • Share Structure & Valuation:

1)

Tight share structure with a valuation of $12.2M, positioning investors for excellent returns

  • nce public.

2)

Small and Mid-Cap Comps are valued at 5x to 14x EV/Sales for 2019.

3)

Valuation of this round is 2.5x Greenfield’s 2020 projected sales, offering attractive upside as we execute our business plan. Small and Mid-Cap Comps are trading at an EV/Sales of 1.3x to 2.1x 2020e, based on a full year’s grow, while our sales are based on a 2/5 year’s grow.

Investment Summary

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Cannabis “A Better Way”

Management Presentation Q3 2019

Cannabis “A Better Way”

Management Presentation Q3 2019

Comparable Companies (Canadian LP’s)