E N H A N C IN G HE A LTH THRO U GH CANNABIS S CIENCE

Transcription

1 I N V E S T O R P R E S E N TAT I O N Q TM HEALTH THERAPEUTICS E N H A N C IN G HE A LTH THRO U GH CANNABIS S CIENCE T S X. V: E M H

2 DISCLAIMER THE STATEMENTS MADE IN THIS PRESENTATION MAY INCLUDE FORWARD-LOOKING STATEMENTS REGARDING THE FUTURE OPERATIONS, OPPORTUNITIES OR FINANCIAL PERFORMANCE OF EMERALD HEALTH THERAPEUTICS (THE COMPANY ). FORWARD LOOKING STATEMENTS INCLUDE THE ESTIMATED INCREASE IN THE COMPANY S PRODUCTION SQUARE FOOTAGE; INCREASES IN THE COMPANY S PRODUCTION; THE LEGALIZATION OF RECREATIONAL MARIHUANA; THE SIZE OF THE MEDICAL MARIHUANA MARKET AND THE RECREATIONAL MARIHUANA MARKET; THE COMPANY S EXPANSION GOALS INCLUDING SCALABILITY, INCREASES IN SQUARE FOOTAGE, PRODUCTION AND REVENUE; THE COMPANY S POSITION IN THE MARIHUANA MARKET IN RESPECT OF DEMAND AND COMPETITION; THE COMPANY BECOMING A LEADING BRAND IN CANNABIS-BASED PRODUCTS; AND THE COMPANY S NEAR TO LONG TERM GOALS INCLUDING INCREASES IN PATIENT ACQUISITION, FACILITY EXPANSION, CLINICAL TRIALS AND PRODUCT DEVELOPMENT AS WELL AS MARKET CAPTURE, REVENUE AND CONSOLIDATION OF THE MARIHUANA MARKET. THESE RISKS AND UNCERTAINTIES RELATE TO, AMONG OTHER THINGS, CHANGES IN LAWS, REGULATIONS AND GUIDELINES RELATING TO MEDICAL MARIHUANA AND THE POSSIBLE LEGALIZATION OF MARIHUANA BY THE FEDERAL GOVERNMENT; CHANGES IN GOVERNMENT; CHANGES IN GOVERNMENTAL POLICY; THE CONTINUED AVAILABILITY OF CAPITAL FINANCING AND GENERAL ECONOMIC, MARKET OR BUSINESS CONDITIONS; RELIANCE ON MANAGEMENT; THE INABILITY OF THE COMPANY TO EXPAND ITS CURRENT FACILITY OR OBTAIN ADDITIONAL FACILITY SPACE; FAILURE TO OBTAIN APPROVAL BY HEALTH CANADA FOR THE COMPANY TO INCREASE PRODUCTION AND PRODUCTION SQUARE FOOTAGE; UNFAVOURABLE PUBLICITY OR CONSUMER PERCEPTION OF THE MEDICAL MARIHUANA INDUSTRY; THE IMPACT OF ANY NEGATIVE SCIENTIFIC STUDIES ON THE EFFECTS OF CANNABIS; THE GROWTH IN THE MEDICAL AND RECREATIONAL MARIHUANA MARKETS BEING LESS THAN ANTICIPATED; INCREASED COMPETITION IN THE MARKET PLACE; THE COMPANY S ABILITY TO MEET ITS NEAR AND LONG-TERM GOALS; AND THE COMPANY S ABILITY TO RETAIN A COMPETITIVE ADVANTAGE IF MARIHUANA IS LEGALIZED AS WELL AS THE RISK FACTORS SET OUT IN THE COMPANY S THESE FORWARD-LOOKING STATEMENTS ARE ONLY ESTIMATIONS BASED UPON THE INFORMATION AVAILABLE TO EMERALD HEALTH THERAPEUTICS, AS OF THE DATE OF THIS PRESENTATION. EXCEPT AS REQUIRED BY LAW, WE EXPRESSLY DISCLAIM ANY RESPONSIBILITY TO PUBLICLY UPDATE OR REVISE ANNUAL INFORMATION FORM AND OTHER PUBLICLY FILED DISCLOSURE DOCUMENTS. UNDUE RELIANCE SHOULD NOT BE PLACED ON FORWARD LOOKING STATEMENTS, WHICH SPEAK ONLY AS OF THE DATE HEREOF. OUR FORWARD-LOOKING STATEMENTS, WHETHER AS A RESULT OF NEW INFORMATION, FUTURE EVENTS OR OTHERWISE. THUS, THE FORWARD-LOOKING STATEMENTS HEREIN INVOLVE KNOWN AND UNKNOWN RISKS AND UNCERTAINTIES SUCH THAT ACTUAL FUTURE OPERATIONS, OPPORTUNITIES OR FINANCIAL PERFORMANCE MAY DIFFER MATERIALLY FROM THESE FORWARD-LOOKING STATEMENTS. ALL FORWARD-LOOKING STATEMENTS CONTAINED HEREIN ARE QUALIFIED IN THEIR ENTIRETY BY THE FOREGOING CAUTIONARY STATEMENTS. RELIANCE SHOULD NOT BE PLACED ON FORWARD LOOKING STATEMENTS, WHICH SPEAK ONLY AS OF THE DATE HEREOF.. 2 / 18 Q4 2016

3 BIG 5 CANADIAN CANNABIS PUBCOS 2 DRIED & OILS LICENSE DRIED & OILS 100,000+ FT 2 EST. PRODUCTION SPACE BY ,000+ FT 2 AVERAGE VALUE 1 As of November 14, Big 5 Cannabis Pubcos: CGC, APH, ACB, MT, OGI $52M MARKET CAP 1 $520M AVERAGE VALUE 3 / 18 Q4 2016

4 TRANSFORMATIONAL MILESTONES LEGALIZATION H H H Recreational Expansion Products & R&D Production Expanded Sales 4 / 18 Q4 2016

5 HIGH GROWTH POTENTIAL IN HIGH GROWTH SECTOR LEGALIZATION $200M MEDICAL MARKET 1 $5B 2 RECREATIONAL MARKET 1 Projected market based on Health Canada Market Statistics: 2 Market value based on Deloitte LLP: Recreational Marijuana - Insights and opportunities - June / 18 Q4 2016

6 EHT HIGHLIGHTS LEGALIZATION SEED TO SALE E-COMMERCE PRODUCTION & CULTIVATION SCALABILITY MARKET CAPTURE REVENUE EXPANSION Vertically integrated enterprise Dried and oil cannabis sales. Facility in Victoria, BC Mass production Limited competition Initial market $5.6B CURRENT EXPANSION GOALS 6 / 18 Q4 2016

7 ADVANCED PRODUCTS & BRANDING STRONG GENETIC DIVERSITY CBX CBD THC:CBD THC THC+ CBG, CBC, THCV, CBDV > 3% CBD THC = CBD < 17% THC > 17% THC EMERALD RANGE CANNABIS OIL EASY FOR CONSUMERS & PHYSICIANS DRIED CANNABIS 7 / 18 Q4 2016

8 EXPANSION TARGETS LEGALIZATION PHASE 1 PHASE 2 PHASE 3 50,000 FT 2 5,000 KG production / year $25M potential sales* 100,000 FT 2 10,000 KG production / year $50M potential sales* 1 million + FT 2 100,000+ KG production / year $500M+ potential sales* *Potential sales based on sale price of $5/g 8 / 18 Q4 2016

9 LOW- COST ADVANTAGE FRIENDLY CLIMATE BC UTILITY ADVANTAGE AGRI-BUSINESS TRACK RECORD EXPERIENCED LABOUR POOL Optimal growing environment 3rd lowest electricity cost in Canada Management with proven success in scalable agriculture Leading team with extensive history in cannabis production 9 / 18 Q4 2016

10 TARGET PRODUCTION VS DEMAND SUPPLY medical LEGALIZATION expansion recreational branding CURRENT UPCOMING PHASE 1 PHASE 2 PHASE 3 10 / 18 Q4 2016

11 EXPERIENCED MANAGEMENT TEAM Bin Huang, PhD, MBA President & CEO Sandra Pratt, CPA, CA CFO 20+ years in life sciences including 15 years as CEO 20+ years in accounting & finance: Angiotech Pharmaceuticals Traviss Graham VP Production Frey Garabagi, PhD VP R&D and QAP 15+ years in cannabis production, processing, and product development. 10+ years R&D in plant molecular genetics and medical technologies 11 / 18 Q4 2016

12 THE EMERALD ADVANTAGE LEGALIZATION KEY STAKEHOLDER LEADERSHIP EXPERIENCE CLINICAL TRIALS SUPERIOR BRAND Emerald Health Life sciences, drug Clinical expertise & Become the Sciences development, clinical networks to expand leading brand in testing, product patient base cannabis-based approvals and products distribution 12 / 18 Q4 2016

13 BOARD OF DIRECTORS Avtar Dhillon, MD Chairman and former CEO of Inovio Pharmaceuticals, Inc. (NASDAQ:INO) and Board Member of several life sciences companies Jim Heppell, BSc, LLB Director and former CEO of Sophiris Bio Inc. (NASDAQ:SPHS) and previous President and Director of BC Advantage Funds Bob Rai, BSc Chairman and CEO of Canadian Pacific Global Pharmaceuticals Director of Vanc Pharmaceutica Inc. (TSX:NPH) and 20+ years of pharmacy experience Punit Dhillon, BA CEO of Oncosec (NASDAQ:ONCS) Former Vice President of Finance and Operations at Inovio Pharmaceuticals 13 / 18 Q4 2016

14 MEMBERSHIP IN CANNABIS CANADA EHB member of Cannabis Canada Association (CCA) Avtar Dhillon Board Member Bin Huang Company Representative Maheep Dhillon Regulations Committee Member CCA provides industry feedback and recommendations in-person to Health Canada and Government Active voice on regulatory changes, patient advocacy and industry logistics 14 / 18 Q4 2016

15 MOVING FORWARD NEAR TO MID TERM MID TO LONG TERM Patient acquisition Facility expansion Clinical trials Product development Legalization Market capture Mass revenue Consolidation 15 / 18 Q4 2016

16 COMPARABLES Canopy Aphria Inc. Mettrum Aurora Organigram Supreme Market Cap 1 $1.29B $553M $274M $517M $327M $204M $52M Fully Licensed Scalability to meet demand Quarterly Expense 2 $7.5M $3.0M $4.3M $1.5M $7.5M $2.0M $440K Quarterly Revenue 2 $7.0M $4.4M $4.2M $219K $894K $0 $100K 1 As at November 14, Figures based on most recently published interim financials for each company as at November 14, / 18 Q4 2016

17 INVESTMENT HIGHLIGHTS TM GROWTH SCALABILITY EXPERTISE 17 / 18 Q4 2016

18 THA NK Y OU! T O LEA RN MORE, P L E A SE C O N T A C T : SANDY PRATT CFO T : +1 8OO E : INVEST@ E M ERALD.CARE 18 / 18 Q4 2016