INVESTOR DECK. February 2017

Transcription

1 INVESTOR DECK February 2017

2 DISCLAIMER This document contains certain forward-looking statements and forward-looking information including but not limited to such statements relating to: the Company s expectations regarding legislation, regulations and licensing related to the cultivation, production and sale of cannabis products by the company; the expected number of users of medical marijuana or the size of the medical marijuana market in Canada; the potential time frame for the introduction of legislation to legalize recreational marijuana use in Canada and the potential form that this legislation will take; the potential size of the recreational marijuana market in Canada should recreational use be legalized; the Company s expectations with respect to meeting ACMPR application milestones and obtaining an ACMPR license; The Company s ability to follow through on its construction plans; and production capacity expectations The words plans, expects, is expected, budget, projects, scheduled, estimates forecasts, intends, anticipates, or believes or variation (including negative variations) of such words and phrases, or statements that certain actions, events, or results may, could, would, might, or will be taken, occur or to achieve are all forward-looking statements. Forward-looking statements are based on the reasonable assumptions, estimates, internal and external analysis and opinions of management made in light of its experience and perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable at the date that such statements are made. Forwardlooking statements involve known and unknown risks, uncertainties, assumptions and other factors that may cause actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forwardlooking statements. Such factors include, but are not limited to, the factors discussed in the section entitled RISKS AND UNCERTAINTIES. Although the Company has attempted to identify important factors that could cause actions, events or results to differ materially from those described in the forwardlooking statements, there may be other factors that cause actions, events, or results to differ from those anticipated, estimated or intended. Forwardlooking statements contained herein are made as of the date indicated on the title page. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on the forward-looking statements. The Company does not undertake to update any forward-looking statements except as required by applicable securities laws. 2

3 THE OPPORTUNITY Medical marijuana is a rapidly growing industry with close to 100,000 patients and over 30 licensed producers in Canada today.¹ As the market continues to expand, so too will the demand for clean, high-quality, genetically consistent cannabis products. Canwe has a strong team with the knowledge and experience to develop a world-class cultivation facility focused on producing superior plant clones and premium quality dried cannabis and cannabis extracts. ORGANIZATIONAL STRUCTURE NEW MAPLE HOLDINGS LTD. New Maple is the sole owner of Canwe and all of Canwe s proprietary information and assets. This is the company that prospective investors would buy shares in. Canwe Growers Inc. (Canwe) will be applying to become a licensed producer (LP) under the ACMPR. Canwe will be the consumer-facing company/brand name that produces and sells cannabis products once a license has been granted. ¹Health Canada market data 3

4 APPLICATION PROCESS SUBMIT APPLICATION 1 PRELIMINARY SCREENING 2 ENHANCED SCREENING 3 The ACMPR application is reviewed by Health Canada and can take over 1 year to complete security clearance alone can take upwards of several months. Once granted, the license would allow Canwe to produce and sell dried cannabis, live cloned plants and cannabis oil extracts. ESTIMATED TIMELINE 4 SECURITY CLEARANCE 1. SUBMIT APPLICATION 3. ENHANCED SCREENING 5. FULL REVIEW 7. OBTAIN LICENSE 5 6 FULL REVIEW PRE-LICENSE INSPECTION RAISE FINANCING CONSTRUCTION 7 LICENSE GRANTED 2. PRELIMINARY SCREENING 4. SECURITY CLEARANCE 6. PRE-LICENSE INSPECTION FULL SCALE PRODUCTION The timeline is a simply a representation of the company s estimates based on information available at the time of writing. While the company will try to adhere to this schedule, it offers no guarantees or assurances that the milestones will be completed at the times indicated. 4

5 PLANNED FACILITY Canwe has a favourable agreement to use a 22 acre riverfront property in the municipality of Grand Valley, Ontario. The company plans to build a state-of-the-art facility with food-grade quality and safety in mind. Using a hydroponic setup and the latest agro-tech, phase one of the building will have the potential to produce several thousand kg of cannabis per year.¹ The total allowable built up area is approximately 100,000 sq ft or 200,000 sq ft over two floors. 40,000 50,000 SQ FT Roughly 70% dedicated to grow & clone rooms INDOOR HYDROPONIC Fully enclosed, climate controlled grow system CONNECTIVITY Using smart sensors to monitor key metrics in real time AGRICULTURAL ZONE Municipal approval for marijuana production Aerial view of the proposed location. SECURE SITE Natural barriers and a low population density ¹Based on at least 30,000+ sq ft of dedicated grow space, 5 crop cycles a year, and an average product yield of 0.7kg per light HIGHWAY ACCESS Frontage on Hwy 89; only 1.5 hours from Toronto 5

6 THE TEAM JACK YU Master Grower Former master grower at MedReleaf. Over 20 years of hydroponic growing experience and 10 years of consulting MMAR clients. NICK DALLA GUARDIA Legal Affairs UofT graduate and JD from Osgoode Hall Law School. Previous Assistant Crown Attorney for the Ontario Ministry of the Attorney General. DON SHANE-TAYLOR Production & Processing Former logistics coordinator at MedReleaf. Intimate knowledge of the cannabis cycle from seed to sale. KARIM NEHME Management & Operations UofT graduate and MBA with distinction from the Schulich School of Business, experience in ISO:9001 quality assurance certification. MIKI BATCH Business Development Economics and Business Analyst degree from UofT. Over 10 years of experience in food sanitation and quality control. RAHIM SAWADI IT & Security Computer engineer and senior IT security specialist. Worked on complex projects including Federal prisons and data centres. PARTNERS & ADVISORS In addition to the core team, Canwe is working to secure strategic partnerships with researchers, doctors, agro-tech companies, university professors, quality assurance professionals and other industry experts. 6

7 MARKET POTENTIAL 98,000 registered medical users (Sep 2016) 0.9 grams average shipment per user per day (Sep 2016) 33% average quarterly patient growth (Q to Q2 2016) 500, , , , , , , , ,000 50,000 - MEDICAL USERS ACTUAL¹ PROJECTED² RECREATIONAL LEGALISATION The Federal Liberal government is expected to unveil recreational cannabis legislation in Spring Canada s recreational market is estimated at several million customers and up to $10 billion in annual sales.³ ¹ Actual figures obtained from Health Canada Market Data - ² Projected figures obtained from ³ 7

8 FUTURE REVENUE STREAMS DRIED CANNABIS Premium quality, high-margin hydroponic grown cannabis targeted to medical and (eventual) recreational users. Canwe intends to use the superior quality of its dried product to differentiate itself and build a strong brand following. Anticipated price point: $6 to 8 / gram CANNABIS OIL THC and CBD oils are emerging as an alternative to classic dried product. Oils dosage is easy to manage and provides a clean and effective method of consumption. Oil can be extracted from organic plant material, such as leaves and stems, which would otherwise go to waste. Anticipated price point: $7 to $15 / 100 mg CLONES The need for genetically sound clones, or starting materials, is high among licensed producers and designated medical growers. With recreational home growing also a future possibility, demand for clones is expected to rise. Anticipated price point: $15 to $30 / plant ¹Lift Cannabis Price Scan obtained from ACMPR licensed producers, as of 16 December 2016 MARKET DATA¹ 155 Cannabis blends and flowers on sale from 21 licensed producers $9.02 Average price per gram of dried cannabis 72% Of strains on sale are THC dominant (higher THC than CBD content) $20 Average price of 100mg of CBD oil $20-$250 Price range of a single clone plant (starting material) 8

9 OUR EDGE UNRIVALLED EXPERTISE From our growers to our security and builders, each member of the Canwe team is an expert in their field, bringing impressive track records that speak for themselves. PRODUCT CONSISTENCY With plans to build a dedicated in-house cloning operation, Canwe will be able to ensure the purity, quality and genetic integrity of its plants from one crop to another. SHORTER CROP CYCLES A hydroponic grow system allows us to speed up the plants natural growth cycle. With shorter production times, we ll be able to harvest more crops in a given year. DATA DRIVEN Canwe plans to use a network of smart sensors to monitor key plant variables 24/7. This will allow us to take preventative measures and make decisions based on sound evidence. FOOD-GRADE QUALITY We intend to implement HACCP controls and quality assurance best-practices to minimise the risk of contamination and ensure clean and consistent products with every crop. LOWER COST PRODUCTION Although hydroponic systems are resource heavy, our anticipated ability to produce several high yielding crops per year results in an overall lower cost per gram. 9

10 RISKS & UNCERTAINTIES APPLICATION DELAY There is no guarantee that Canwe will be able to submit an application by Q Furthermore, we cannot be certain that Health Canada will process the application and grant a license within 12 months. Unforeseen circumstances such as a prolonged security check, staff shortages at Health Canada or simply an overwhelming number of applicants may delay Canwe from obtaining an ACMPR license by RECREATIONAL DELAY While the Federal Liberal government has publicly stated that it will introduce recreational cannabis legislation in Spring 2017, it is unclear whether they will follow through on this commitment and, more importantly, when exactly the new legislation will come into effect. Until such time, recreational users will continue to turn to the illicit market for their product and LPs will be restricted to operating solely in the medical market. UNCERTAIN LEGISLATION Assuming recreational legislation is introduced in Spring 2017, the Cannabis Task Force report highlighted several questions which have yet to be answered by legislators. It is unclear what role the Provinces will play in drafting the new legislation and how issues such as marketing, product potency, distribution, and home growing will be handled. Each of these issues could have a material impact on Canwe s plans. 10

11 THE COMPETITION There are over 30 ACMPR licensed companies operating in Canada with facilities ranging in terms of size and growing method. In addition, there are several hundred companies in que for an ACMPR license. Below are three relatively smaller players in the industry; they are publicly traded and the graphs represent their respective market capitalisations over the past 6 months. Supreme Pharmaceuticals (7 Acres) Kincardine, Ontario 7 acre ACMPR licensed hybrid greenhouse $273 million market capitalisation Emerald Health Botanicals Hamilton, Ontario 7,000 sq ft ACMPR licensed facility $95 million market capitalisation Beleave Inc. Hamilton, Ontario 14,500 sq ft facility ACMPR applicant (review stage) $40 million market capitalisation Market data obtained from Google Finance as of 13 February

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