ALLIANCE GROWERS. Investor Presentation Chilco Design Studio Inc.

Transcription

1 ALLIANCE GROWERS Investor Presentation Chilco Design Studio Inc.

2 Forward-Looking Statements Disclaimer Certain information regarding the company contained herein may constitute forward-looking statements within the meaning of applicable securities laws. Forward-looking statements may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Although the company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. The company cautions that actual performance will be affected by a number of factors, many of which are beyond the company s control, and that future events and results may vary substantially from what the company currently foresees. The company s forward-looking statements are expressly qualified in their entirety by this cautionary statement.

3 Medical Marijuana Industry Potential The global legal marijuana market is expected to grow at a compound annual growth rate of 37.38% from 2016 to 2020.

4 Canada & USA In 2012 the state of Washington legalized the sale and use of recreational marijuana. There are now more than 300 retail outlets, generating hundreds of millions of dollars in sales. Across the US, recreational sales are estimated to grow from $2.6 billion in 2016 to $11.2 billion by In the USA, the CBD market is growing at a rate of 30 percent per year, forecast to reach $2.1 billion by Medical marijuana sales are projected to grow from $4.7 billion in 2016 to $13.3 billion in AK YT Alliance Growers will initially target the U.S. market where 28 states plus the District of Columbia have legalized medical marijuana and 15 other states that currently allow for the sale of CBD products. NT NU In August 2016, Canada enacted the Access to Cannabis for Medical Purposes Regulations (ACMPR) which allows commercial production by licensed producers. Federal legalization of retail distribution and sale of cannabis is planned for July Worldwide y Israel has permitted the medical use of cannabis since the early 1990 s. y Portugal decriminalized the possession of all drugs for personal use in y Czech Republic passed a medical cannabis bill in y Italy legalized cannabis as a prescribed medication in y Uruguay voted to create a national legal marijuana market in Recreational Medical CBD Oil Only Decriminalized BC WA OR NV CA AZ AB MT CO NM SK MB ND MN NE IA MO OK ON WI MI IL OH KY TN MS AL GA SC QC ME VT NH NY MA CT RI PA NJ MD DE VA NC NL NB PE NS y Mexico passed a bill to legalize the use of marijuana and cannabis for medical and scientific needs in April FL y Germany passed an act to legalize the use of marijuana for medicinal purposes which came in to effect March 2017.

5 Québec As Quebec represents approximately 20% of Canada s population it is currently under-represented in regards to ACMPR licenced companies. The Province is anxious to develop a base of skilled licensed producers to provide a self-sustaining supply for Quebec based demand of both recreational and medical cannabis. Alliance Growers believes it is advantageous to capitalize on the mandate to increase the number of ACMPR licensed companies in Quebec. We are pleased to have now entered the grow space in Quebec as we negotiate additional license applicants in this province. Quebec has drafted legislation that would outlaw growing cannabis at home. This would force consumers to buy from licenced sellers for both recreational and medical products.

6 Alliance Growers The Four Pillar Strategy Alliance Growers has organized into four divisions in order to focus our potential for success in the medical marijuana market. Licenced Cannabis Growers Cannabis Botany Centre Medical CBD Oil Extractors Research & Development

7 Licenced Medical Marijuana Producers Alliance Growers is investing in and building strategic partnerships with licensed cannabis producers at various stages in the licensing process.

8 Biocannatech Alliance Growers has entered into an exclusive agreement to acquire Biocannatech which is to become a licensed producer under Health Canada s access to cannabis for medical purposes regulations ( ACMPR ) in Québec. y incorporated in Québec and located in Côte Saint-Luc, Québec y in the final expedited phase of the ACMPR approval for the production and sales of Medical Marijuana y has application to Health Canada for building a 10,000 sq. ft. facility with an attached 120,000-sq. ft. warehouse. Projected Gross Revenue is 10 Million per year y With additional approval the facility can be expanded to 70,000 square feet with a projected Gross Revenue of 70 Million per year y the operations construction phase is targeted for March 2018 y facility expansion up to 70,000 square feet estimated to be operational in late 2019 Canwe Alliance Growers has made the first installment to acquire a 5% equity investment in the Ontario-based cannabis company Canwe. y has a team of growers and regulatory experts from a profitable previous venture y has access to a property near Toronto up to 22 acres in size y plans to build a facility focused on producing clean, premium-quality cannabis These partnerships secure long-term plantlet sales for the Botany Centre, wholesale cost for flower to be acquired for CBD oil extraction, and ongoing support for the producers.

9 The Cannabis Botany Centre The first Botany Centre will be a 40,000 square foot facility built in Mission, BC

10 WFS Pharmagreen / BC New Co. Alliance Growers has partnered up with WFS Pharmagreen to start construction of a new botany centre in Mission, BC. Pharmagreen s new subsidiary, BC New Co, will build and operate the cannabis botany centre. Alliance Growers has entered into a binding Letter of Intent with WFS Pharmagreen Inc. to acquire an equity stake in Pharmagreen s subsidiary BC New Co. Alliance will purchase a non-dilutive 30% equity interest in BC New Co, bringing their revenue share in the project to 30%. The first 15% will be purchased by March 15, 2018 and the remaining 15% by June 15, Pharmagreen has already purchased the land upon which the proposed cannabis botany centre will be built in Mission, BC

11 CBD Oil Production and Distribution Medical grade CBD has become highly sought after compound in the treatment of a range of medical issues.

12 Cannabidiol (CBD) Cannabidiol (CBD) is an organic chemical compound that can be extracted as an oil from cannabis plants. These molecules act on cannabinoid receptors in cells that alter neurotransmitter release in the brain. Unlike THC, CBD is non-psychoactive so can be more widely marketed for medical use in children. CBD oil has been shown to be effective in treating: y epilepsy y anxiety / depression y schizophrenia y type 2 diabetes y heart disease y certain forms of cancer More research continues to be done to expand the potential of CBD and its applications. The Hemp Business Journal reports that the CBD market is growing at a rate of 30% per annum, and forecasts that sales of CBD Oils from marijuana-based sources are expected to reach $1.6 billion or 79% of the Total CBD Market of $2.1 billion by 2020.

13 CBD Oil Production Alliance Growers is finalizing terms on a 20% equity investment in an Israeli CBD Oil extraction company. y AG will have off-take rights to buy 20% of oil production at or near cost for global distribution y high-tech extraction allows for production of the highest quality pharmaceutical-grade CBD oil. y legal 50-hectare grow operation in an offshore, low operating cost jurisdiction y has secured first government permit to grow cannabis with 4-year exclusivity y continuing clinical research on medical cannabis Israel Israel s government has encouraged cannabis research since the 1960's. In 2017 the government announced it is investing $2.13 million in research projects. The Health Ministry s Medical Cannabis Unit believes cannabis should be considered in the same manner as any other medicinal product. Licensed suppliers provide cannabis to Israel s roughly 26,000 registered patients, creating a domestic market of about $15 million to $20 million. Hebrew University researchers synthesized 22 versions of the cannabinoid THC that have great potential for treating neurological and inflammatory diseases. After some success in using substance to treat epileptics, Israeli researchers will launch clinical trials to check the effect of cannabis oils on individuals with severe behavioral problems such as autism. International companies regularly join forces with Israeli academic and medical institutions to create new medications. In February of 2017, a government committee approved a plan that would allow medical marijuana companies to export products internationally.

14 Research and Development Developing technologies that will improve upon the quantity, consistency and distribution of cannabis production giving us a competitive edge in this ever expanding industry.

15 Botanical Research In Motion International (B.R.I.M.) B.R.I.M. develops and currently holds rights to new technologies for controlled and precise production of cannabis plants, such as the Chibafreen Process. BC New Co. will be utilizing these licenced technologies for the production of plantlets at the Mission Botany Centre. The Botany Centre will also allow B.R.I.M. to do continued research on behalf of BC New Co. Tissue-culture cultivation has the potential to become the new standard for the cannabis industry. The consistency of product lends well to future government regulation of molecular composition and potency. There is also further potential to apply these same technologies into other agricultural industries. Peter Wojcik CEO of B.R.I.M. and WFS Pharmagreen BA Economics Dr. Fawzia Afreen B.R.I.M. Chief Scientist PhD Plant Science y CEO and founder of Botanical Research In Motion Inc. (B.R.I.M.) y graduate from University of Regina with a Bachelor of Arts Advanced, Economics y successful entrepreneur with past endeavors including a computer hardware company, an Internet service provider and a software company specializing in on-line gambling y negotiated contracts with high levels of government y 8 years of experience in cannabis cultivation, production and its application in the treatment of disease y involved with the design and construction of large facilities and plant growing systems y acted as a consultant for the implementation of systems design, problem solving, yield maximization and space utilization y expert in plant horticulture, plant tissue culture, and plant production in controlled environments y has a PhD with a focus on plant science from the Department of Applied Biology; University of Hull, UK in 1998 y research associate at the Department of Botany; University of Guelph, Ontario from 2002 to 2004 y research associate, at Chiba University in Japan where she taught graduate (M.Sc) level courses in protected horticulture, plant tissue culture and plant production in controlled environment from 2004 to 2007 y since 2008, has provided consulting services for Hyacinth Planttech, British Columbia y has acted as B.R.I.M.'s chief scientist since January 2014 and will oversee the tissue culture lab of the first Botany Center

16 The Chibafreen Process Parent Initiation Multiplication Rooting Acclimatization y Increased growth of plants results in a 30-50% shorter production period. y Yields a high percentage of salable plants (over 95%). y Each plantlet will always have the same genetic makeup as its parent tissue stock. y Plants are produced under a controlled environment free from pests, pathogens and outside weather conditions. An explant (shoot-tip or bud) is excised from the stock plant under sterile conditions. The explant is placed on a growth medium containing an energy source and hormones. The explant rapidly grows new tissue. This process can be repeated several times. Individual shoots are moved to a new growth medium which allows the roots to harden. Plantlets are transferred to soil for conventional growth in a greenhouse.

17 Close ACG Canadian Securities Exchange 1.00 (figures from January 28, 2018) ,990,309 Shares Issued & Outstanding ,981,298 Shares Fully Diluted Volume 6,250,000 Units Private Placement at $0.80 per unit with a full warrant at $0.90 per share Jan 2017 Feb 2017 Mar 2017 Apr 2017 May 2017 Jun 2017 Jul 2017 Aug 2017 Sep 2017 Oct 2017 Nov 2017 Dec 2017 Jan LA Frankfurt Stock Exchange (FWB Germany)

18 Alliance Growers Building a diversified global cannabis company that is focused on where the market is going, not where the market is today.

19 Management Directors Advisors Dennis Petke Chartered Accountant CEO and President of Alliance Growers Harvey Lawson Master of Business Administration CFO of Alliance Growers Rupert Shore Barrister and Solicitor Sina Pirooz President of SP RX Services Registered Pharmacist Ian Lambert Bachelor of Commerce CEO, Director of West Nevada Resources Inc. Rob Grace Corporate Development Advisor Robert Carveth Biotechnology and Gov. Relations Advisor Charles Rendina Regulatory and Financial Advisor Edmund Obasi Cannabis Investment Advisor Frontier Merchant Capital Group Investor Relations and Consulting Services Chilco Design Marketing and Branding

20 Investment Highlights Private placement of 6,250,000 units at $0.80 per unit with a full warrant at $0.90 per share. Best value in booming cannabis sector. Biocannatech Quebec facility expansion up to 70,000 square feet estimated to be operational in late Cannabis Botany Centre to be developed in Mission BC for production of plantlets for distribution to licensed producers. Strategic investments in ACMPR applicants that leads to long term tissue culture supply contracts. Medical Grade CBD Oil production via strategic partnership with Israeli Medical Cannabis Company. $ 5 million equity facility in a series of private placements via Alumina Partners (Ontario) Ltd. with an option to extend up to $10 million. Use of Financing Proceeds y Development of the Cannabis Botany Centre in Mission, BC y Acquisition and development of the Biocanna Tech facility in Québec y Furthering of strategic partnerships y Equity investment in WFS Pharmagreen y Equity Investment in CANWE y General working capital

21 ALLIANCE GROWERS ACG Canadian Securities Exchange 1LA Frankfurt Stock Exchange For investment contact: Rob Grace Corporate Development For information contact: Dennis Petke President & CEO Chilco Design Studio Inc.