Affinor Growers Inc Technology for Growing Better Food

Transcription

1 Affinor Growers Inc Technology for Growing Better Food

2 Forward Looking Statements Forward-Looking Information: This document contains forward looking statements that relate to our current expectations and views of future events. In some cases, these forwardlooking statements can be identified by words or phrases such as may, might, will, expect, anticipate, estimate, intend, plan, indicate, seek, believe, predict or likely, or the negative of these terms, or other similar expressions intended to identify forward-looking statements. Affinor has based these forward-looking statements on its current expectations and projections about future events and financial trends that it believes might affect its financial condition, results of operations, business strategy and financial needs. These forward-looking statements include, among other things, statements relating to: the Company s expectations regarding its revenue, expenses and operations; adjusted EBITDA; 2016 priorities; the Company s plans for and timing of expansion of its solution and services; the Company s expectations with respect to advancement of its product offering; and estimated revenue per customer. Forward-looking statements are based on certain assumptions and analyses made by Affinor in light of the experience and perception of historical trends in the food industry, current conditions and expected future developments and other factors it believes are appropriate, and are subject to risks and uncertainties. Although Affinor believes that the assumptions underlying these statements are reasonable, they may prove to be incorrect, and we cannot assure that actual results will be consistent with these forward-looking statements. Given these risks, uncertainties and assumptions, prospective purchasers of Common Shares should not place undue reliance on these forward-looking statements. Whether actual results, performance or achievements will conform to our expectations and predictions is subject to a number of known and unknown risks, uncertainties, assumptions and other factors, including those in Affinor s publically available financial reports. If any of these risks or uncertainties materialize, or if assumptions underlying the forward-looking statements prove incorrect, actual results might vary materially from those anticipated in those forward-looking statements. Information contained in forward-looking statements in this document is provided as of June 30, 2016, and we disclaim any obligation to update any forward-looking statements, whether as a result of new information or future events or results, except to the extent required by applicable securities laws. Accordingly, potential investors should not place undue reliance on forward-looking statements or the information contained in those statements. The actual results of our operations and the resulting financial results may vary from the amounts set forth herein, and such variation may be material. This document also makes reference to certain non-ifrs measures. These measures are not recognized measures under IFRS, do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of the Company s results of operations from management s perspective. Accordingly, they should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS. The securities of the Company have not been and will not be registered under the United States Securities Act of 1933, as amended (the U.S. Securities Act ), or the securities laws of any state of the United States and, subject to certain exceptions, may not be offered or sold within the United States except in transactions exempt from registration under the U.S. Securities Act and under the securities laws of all applicable states. This presentation should be read together with our audited financial statements for the financial quarter ended March 31, 2016 and the notes thereto as well as our Management s Discussion and Analysis for the financial quarter ended March 31, 2015, all of which are available at 2

3 Executive Summary Mission To use Affinor s patented vertical growing technology in an ethical, environmentally friendly and energy efficient way to increase food production, thereby making an economic return for our partners, suppliers and shareholders. Vision Affinor Growers is a vertical farming technology company that is committed to help solve the world s food security problems with proprietary growing and cultivation systems. Market Fresh food organic produce is a $33.8 billion industry and is expected to nearly double by Product Vertical farming technology for indoor and outdoor applications. Status Public (CNSX: AFI / OTCQB: RSSFF) Market Cap of $4.5 M Outstanding Shares: 110M 52 week range: CAN 3

4 The Problem Traditional field farming is limited to location and season Agriculture land in North America shrunk 3% in the last 10 year. Long distance, frequently thousands of miles between farms and consumers Reliance on chemicals and pesticides 80% of all strawberries consumed in North America produced in California Natural pollination through insects visits under stress and failing Strawberries considered on of the top 10 dirty fruits as they contain chemicals and pesticides The Solution Affinor s vertical farming technology is estimated to increases production and yield per square foot by 10 to 15 times. Supplying year round production anywhere around the world using land otherwise not suitable for food production Uses 10 times less water than land farming Pesticide-free and chemical free = clean fruit Integrated mechanical pollination simulating insects Greenhouse cultivation, indoor or outdoor temperate climates 4

5 The Market Fresh food organic produce is a $33.8 billion industry and is expected to nearly double by In continental North America there are over 17,000 hectares of greenhouse farms trying to keep up with food demand new greenhouses built in America Only 1% are used for strawberries (seasonally) Fresh market strawberries accounted for 81 percent of the total strawberry production, valued at $2.6 billion. Our Advantage Triple production, or more, depending on vertical height available / modular. Designed to allow maximum sunlight penetration with continual rotation, crops will mature quicker with increased quality. Grown in natural medium, organic soil, with mechanical pollination ensuring 100 percent fruit sets and high quality product. Only company offering vertical solutions for strawberries and the greenhouse industry Developed processes for continual year round strawberry harvesting. Annual sales growth of organic food in the US from 2009 to

6 Road Map First concept / Initial design 2014 Alpha Prototype November First commercial installation of beta prototype From 8 Plants per Square Meter to 24 plants per Square Meter 6

7 Road Map January Affinor redesigned the technology to reduce cost by half. April Newly designed technology installed at UFV to validate technology and business assumptions. 7

8 Immediate Opportunities Non exclusive license British Columbia Canada. (option to purchase farm) 24 tower strawberry farm to be built in fall 2016 Non exclusive license Tennessee USA 18 tower strawberry farm to be built late fall 2016 Non exclusive license Alberta Canada (option to purchase farm) 24 tower strawberry farm to be built in mid 2017 Exclusive license Farm in Quebec Canada 36 tower strawberry farm to be built in spring 2017 Exclusive license in Ontario Canada 24 tower strawberry farm to be built in summer 2017 Purchase order contract with Biomed THC BC Canada (cannabis trial) 12 tower growing operation Licensing Fees 8

9 Other Opportunities Large Retailers Local sustainable produce grown fresh cost effectively by the retailer (demonstration tower in the store, customers pick fresh) Vacant Buildings and Warehouse Convert vacant buildings and abandoned warehouse to profitable agriculture centers supplying employment, food and education (many opportunities with non-profit originations and government grants) Remote locations Supplying rural areas and remote locations heavily dependent on importing foods and supplies Field Towers Increase production 3 to 4 times with field towers (installed in strawberry fields). 9

10 Investment Opportunity Affinor is seeking key investors to continue the development and commercialization of the technology and equipment. Funds will be utilized to: 1. Fabricate and assemble new technological advanced prototypes and test them in the University of Fraser Valley Agriculture dept 2. Continue license agreements and equipment installations operating cost 3. Develop LED lightings systems for the growing technology and agriculture industry. 4. Continue with legal patents & trademarks 5. Operational and administration cost 6. Hire sales and support staff. 10

11 Team Jarrett Malnarick, CEO Most recently, Mr. Malnarick was the COO and VP of Operations for Affinor. In that role, Jarrett was responsible for managing all technological development, facility development, customer projects and delivering innovative agricultural solutions for both the controlled indoor environment and outdoor the greenhouse industry. As a graduate from the University of Victoria in Biological Sciences, he has held executive positions in the agriculture, pharmacy, natural health and retail industries. Over the course of his professional career, Jarrett ran his own successful consulting company assisting with product development, feasibilities studies, organization budgets, quality engineering and compliance management for controlled and consumed products. Mr. Malnarick s experience in helping start up companies become successful have included effective team building, business plans, presenting financial opportunities, independent technology and product validation and seeking sector specific government grants and funds. Mark T. Brown, CFO Mr. Brown has assisted in the successful establishment of several private and public companies. In the public company sector, Mr. Brown has played key roles in the success of several companies which his team at Pacific Opportunity Capital has listed on the TSXV, the TSX and the NYSE Mkt Exchanges. His corporate focus is merger and acquisition transactions, financing, strategic corporate planning, and corporate development. One of the companies founded by the team at Pacific Opportunity was built into a plus $500 million market capitalization entity and his team has had several smaller successes over the past 20 years. Mr. Brown has a Bachelor of Commerce from the University of British Columbia and qualified as a Chartered Accountant in 1993, while working with PricewaterhouseCoopers in Vancouver. Board Members and Advisors: Mr. Brian Whitlock (Director), Dr. Alan Boyco (Director), Mr. David Mack Esq. (Director), Dr. Andrew Riseman (Advisor), Thomas Baumann (Advisor), Rick Easthom (Advisor), Chief Gibby Jacob (Advisor), Gabriel Arcoleo 11

12 Contact Jarrett Malnarick, CEO Mark T. Brown, CFO Growing food with better technology 12