Corporate Presentation October 2018

Transcription

1 Corporate Presentation October 2018

2 Disclaimers The information contained in this presentation is provided by Viridium Pacific, a company to be formed according to the Canada Business Corporations Act, or the Company ) for informational purposes only and does not constitute an offer to issue or arrange to issue, or the solicitation of an offer to issue, securities of Viridium Pacific or other related financial products. The information contained herein is not investment or financial product advice and is not intended to be used as the basis for making an investment decision. The views, opinions and advice provided in this presentation reflect those of the individual presenters, and are provided for information purposes only. The presentation has been prepared without taking into account the investment objectives, financial situation or particular needs of any particular person. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this presentation. To the maximum extent permitted by law, none of Viridium Pacific nor its directors, officers, employees or agents, nor any other person accepts any liability, including, without limitation, any liability arising out of fault or negligence, for any loss arising from the use of the information contained in this presentation. Except for statements of historical fact, this presentation contains certain forward-looking information within the meaning of applicable securities laws. Forward-looking information is frequently characterized by words such as plan, expect, project, intend, believe, anticipate, estimate and other similar words, or statements that certain events or conditions may or will occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking statements, including, among others, Viridium Pacific s future growth and development, the proposed plans of any of Viridium Pacific s equity holdings, as well as those risk factors identified in Viridium Pacific s disclosure documents under Viridium Pacific s name. Viridium Pacific undertakes no obligation to update forward-looking information if circumstances or management s estimates or opinions should change except as required by law. The reader is cautioned not to place undue reliance on forward-looking statements. This presentation does not constitute an offer of shares for sale in the United States or to any person that is, or is acting for the account or benefit of, any U.S. person as defined in Regulation S under the United States Securities Act of 1933 (as amended the Securities Act ), or in any other jurisdiction in which such an offer would be illegal. Viridium Pacific s shares have not been and will not be registered under the Securities Act.

3 Company Overview Viridium Pacific Group Ltd. ( Viridium or the Company ) is a public holding company located in Vancouver, BC, trading on the TSX Venture Exchange under symbol VIR, and is the capital company directly invested in the Canadian Cannabis Industry. Through its wholly-owned subsidiary, Experion Biotechnologies Inc. ( Experion ), the Company is engaged in the production and distribution of cannabis. Experion is a Sales Licensed Health Canada producer of dried cannabis / cannabis plants based in Mission, BC. Experion is positioned as a high quality wholesale supplier of cultivated cannabis, ready for October 2018 when the legalization of Recreational Cannabis in the Canadian market begins.

4 Investor Summary An Uncommon Opportunity 1 of 29 publicly listed Federal Sales Licensees in Canada Market Cap under $60MM with Sales and Cultivation licenses issued by Health Canada Increasing Capacity, With Enhanced Product Offering Expanding capacity by more than 10x over the next 12 months Viridium will have the scale to compete with senior licensed producers, nationally and globally Revenue Positive There are strong signs of an undersupply coming during the first months of legal distribution Viridium has completed its first sale, and continues to negotiate with LPs and Provincial distributors Growth at a Reasonable Price in the Cannabis Space There are actionable plans for SKU expansion (with opportunities in beverage, extraction and infused products) Add further capacity and improve brand awareness through strategic partnerships Collaborate to develop new strains, and produce further product lines (edibles, cosmetics, etc.) Expand into global markets by way of wholesale export of materials, IP, and expertise Viridium represents one of the only listed names with sales licensing status and strong growth outlook, as the Company is poised for geographic footprint expansion (with potential partnerships in Australia and Europe)

5 Viridium Advantage Located in British Columbia British Columbia is the globally renowned capital of cannabis in Canada. Cultivating on 10 acres of agricultural land in the Fraser Valley. Deep Knowledge of Industry and Product Management and staff bring over 50 years of collective experience. Unique combination of new technology, solid genetics and, old school cultivation knowledge. Custom built, pesticide-free cultivation system. Low Production Cost Attractively low hydro costs for electrical, heating, and HVAC in BC. Natural spring well water located on site. Greenhouse expansion will harvest natural light with automation. High Quality Genetics and Research Partnerships Diverse line of Genetics imported from the Netherlands and Spain. Catalog of unique heritage strains developed by the best in BC. Partnering with research groups to develop proprietary strains and genetic IP.

6 Market Overview Canada BY REGION WEST 20.1% ON QC 18.8% 13.0% monthly, 18.70% weekly, 20.30% CONSUMPTION FREQUENCY < once/month, 36.30% CONSUMPTION VOLUME Occasional Users 0.46 g Estimated grams per day consumed by people who are < once a month consumers. That s about one joint. Weekly Users 0.92 g EAST 18.8% daily, 24.60% Occasional Users 1.72 g Estimated grams per day consumed by people who are daily or near daily consumers.

7 Market Overview Global Opportunity The global demand for both recreational and medical cannabis is expected to outpace supply for the foreseeable future. NA MARKET: ~ 4.0MM kg EUR MARKET: ~4.0MM kg NA MARKET: unknown Viridium remains uniquely positioned with potential export / partnership opportunities globally. SA MARKET: ~ 2.0MM kg AFR MARKET: unknown AUS MARKET: ~ 0.2.0MM kg

8 Objectives Short-Term Launch Commercial Distribution October 2018 selling clones and dried flower to LPs and Distributors for retail. Expand production capacity at the existing Lake property (both Greenhouse Space and Processing Capability). Promote the brand of Viridium Pacific and its value offering. Long-Term Further expand nationally in anticipation of demand growth associated with legalized recreational cannabis. Broaden the company s business interests through strategic partnerships that: Add economic expansion capacity, and; Improve the company s marketing and communications efforts Build on our portfolio of high value, proprietary strains, and partner with global genetics providers. Expand internationally by way of wholesale exporting of product and IP to the global medical and genetics trade. Partner with research groups on collaborative strain development and medical research. Further product / brand development for various markets (edibles, cosmetics, beverage, natural health, etc.). Partner with retailers nationally to enhance brands and product availability.

9 Corporate Timeline License to Produce Received August 2017 / License to Sell Received August 2018 All preliminary inspections complete by Health Canada, LP License issued Aug 2017 Wholesale Sales License issued by Health Canada August kg current annual operating capacity Current revenue potential of $1.4MM ($3 per gram) to $3.1MM ($7 per gram) per year Eight strains under cultivation An additional six strains varieties will be available by end of Q3/2018 (44 strains retained internally) All remaining sales amendments submitted to Health Canada (currently under active review) Aug 2017 Jan 2018 Mar/Apr 2018 Apr/May 2018 Jul 2018 Aug 2018 Going Forward Experion received its License to Produce Experion began cultivation Experion completed first two harvests Experion received Import license; imported multiples strains Signed MOU for distribution with BC LDB Experion received License to Sell Viridium is looking at partnership supply agreements to continue growing upon legalization

10 Current Capacity Current Licensed Facility State-of-the-art, indoor, purpose-built facility located on 10 acres outside Mission, BC. Designed for plant success: custom HVAC, dedicated CO2, proprietary irrigation system. Production under 2,000 square feet of indoor canopy using growth enhancing lights, resulting in maximum crop yield. Facility footprint is 8,300 square feet, with space for production, processing and storage. The Mission facility is able to produce 40.0 kg s of cannabis a month.

11 Greenhouse Capacity Current Site Expansion Plan Located on same property, adjacent to current indoor facility. Expanded cultivation in two acres (87,120 square feet) of purpose built greenhouse. Expanded mothering and propagation as well as space for trimming and processing. First greenhouse completion Spring 2019 subject to financing. Projected annual production of 8,100 kg per year with expanded cultivation. Projected revenue potential of $25.0MM ($3.0/g) to $55.0MM ($7.0/g) per year.

12 Production and Capacity Summary Facility Location KG per year Revenue ($3 to $7) Expected Commissioning Indoor 8,200 sf. Mission, BC 500 kg $1.35M $3.1M Currently Operating 1 acre greenhouse Mission, BC 4,500 kg $13.5M - $31.5M Spring acre greenhouse Mission, BC 9,000 kg $24.3M - $56.7M Spring 2019 Production Facility Lower Mainland NA $15M Fall 2019 National Expansion Across Canada 43,500 kg $131MM - $305MM CY 2020 Each incremental 10 acres of canopy expansion represents: 43.5 metric tons of annual production $130MM in wholesale revenue potential

13 Marketing / Promotion Strategy Why Increase awareness and create a positive association in the market community. Creating an outstanding investment opportunity. Nurturing positive relationships and elevate Viridium awareness to investors and finance leaders. What Public relations targeted public engagement strategy and communication program to bring out understanding and acceptance of the company. Direct Marketing communicate directly with investors to increase targeted awareness through media, and promotion news letters. Internet Marketing build online presence and leverage social media platforms. Who Retained Renmark Financial Communications, one of largest firms in Canada. Kika Marketing a full service marketing firm with extensive cannabis experience. Internal communication department and personnel. How Press release, media relations and content marketing. Non-brokered road shows and investor relations. Social media marketing, IR influence outreach, marketing.

14 Value Add Cannabis Extraction Adopt cutting edge technologies through strategic partnership. Further in-house processing of extractions and formulations. Markets Regulated Recreational Market formulated THC, CBD products to include gel caps, vaporizers, pre-rolls, and edibles. Medical Market Specific formulas for oral sprays, topical, cosmetics, capsules. Mainstream Market Natural health products and beverage infusions with hemp and non-regulated cannabis bi-products. R&D Research agreement with British Columbia Institute of Technology for strain development.

15 Distribution Regulated Recreational Market Signed MOU with BC Control Board to supply non-medical retail product throughout BC. Negotiating with Sask. Distributor for non-medical retail product throughout province. Negotiating with Ontario Liquor board for non-medical retail products throughout province. Negotiating supply agreements with numerous LPs throughout Canada. In discussions with several beverage companies to develop infusions with existing national and international distribution. Wholesale inquires have exceeded annual capacity output under current operations. Medical Market Supply medical cannabis flower directly to clients and wholesale to other LPs. Signed LOI with German wholesale pharmac company INOPHA to import medical cannabis. Signed LOI with Austria company to import medical cannabis. Mainstream Market In discussions with several beverage and natural health companies to develop non-regulated hemp infused, CBD products with existing national and international distribution. In discussion with cosmetic companies to develop topical lotions, shampoo, lip balms, and antiaging creams with hemp infused, CBD products.

16 Opportunities Strategic Partnerships Partner with suitable late stage applicants in a Franchise model. Use a Micro-Grower model to allows Viridium to expand capacity synthetically, without significant upfront capital commitment requirements. Actively negotiating an opportunity in Quebec, an underutilized province, with a signed LOI. In discussion with an Australian group to produce domestic medical cannabis moving toward supplying South Korea. Signed LOI with German wholesale pharmaceutical company INOPHA to develop a cultivation facility and EU wide importation. In discussions with beverage and natural health companies wanting to get into the cannabis market.

17 Contact Investor Relations: Renmark Financial Melanie Barbeau (514) General Corporate: