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Virtuous Cycle Distribution Capacity IP Portfolio Brands
Virtuous Cycle Capacity
STRATEGIC PRIORITIES Capacity 95 acres zoned for cannabis production, on-site well, natural gas co-gen line, and phase 3 power Over 150 unique genetics Good Manufacturing Practice ( GMP ) certification from Germany 7,000 kg of capacity within existing 70,000 sq. ft. Dealer s License enabling R&D of novel products, export of concentrated derivatives, and analytical testing
Capacity PEACE EXPANSION Expansion includes: a state-of-the- art 286,000 sq. ft. indoor production facility and a 1,200 sq. ft. extraction lab Indoor facility expected to be largest purpose-built indoor cannabis production facility in the world, fully operational by Summer 2018 STRATEGIC PRIORITIES Domestic capacity expected to reach over 40,000KG prior to 2019
STRATEGIC PRIORITIES Capacity Based in Okanagan Valley, BC with a 2,000 sq. ft. pilot facility 31 acres zoned for cannabis production with premium genetics sourced from WMMC On-site artesian well providing free source of water (200+ gallon per minute capacity) Entered industry first strategic joint venture with Canadian First Nations, Indigenous Roots Climate and power costs provide cost advantage over other Canadian jurisdictions
Capacity Strategic joint venture with Kibbutz Gan Shmuel, which already exports to 35 countries throughout Europe & Asia Ideal climate enables production of high quality medical cannabis at an expected cost of between $0.40 and $0.50/g STRATEGIC PRIORITIES Over 1,000 agriculturally skilled Kibbutz members live on site and existing infrastructure available to support operations Situated on 4,939 acres of mixed-use agricultural/industrial land, with ability to expand beyond 100,000 KG annually Phase 1: 45,000-sq. ft. greenhouse, 5,000 KG annually Phase 2: increase capacity to 24,000 KG annually
Virtuous Cycle Distribution
INCREMENTAL DISTRIBUTION Distribution GERMANY Exclusive supply agreement with Pohl-Boskamp, an international pharmaceutical manufacturer and supplier founded in 1835 Pohl distributes products to over 12,000 German pharmacies German parliament implemented health insurance coverage for patients Large shortage of medical cannabis exists in Germany STRATEGIC PRIORITIES Peace Naturals is exporting 12 different varieties
STRATEGIC PRIORITIES MEDICAL Underserved indigenous communities stand to benefit from medical cannabis access Distribution Most Indigenous health needs are covered by Non-Insured Health Benefits Program (NIHB) RECREATIONAL Industry first strategic joint venture with Canadian First Nations, led by Phil Fontaine to forming a new company and brand -Indigenous Roots First Nations are subject to different regulations than traditional businesses First Nations communities provide optionality for unique distribution channels
Distribution Recently received both a cultivation and a research license A 50/50 joint venture that will serve as the hub for Australia, New Zealand, and South East Asia STRATEGIC PRIORITIES Campus is located on 120 acres and will initially include a 20,000 sq. ft. purpose-built facility with an expected annualized production capacity of 2,000KG Facility will be designed considering both Good Production Practices and Good Manufacturing Practices (GMP)
Virtuous Cycle IP Portfolio
IP Portfolio GENETICS & METHODS New LPs need to source genetics from existing LPs, Cronos has over 150 unique cultivars Custom built CO2 extraction equipment removing the need for post-processing and maintaining natural balance of the plant STRATEGIC PRIORITIES GMP facilities & extraction labs allow for metabolite identification, separation and recombination to produce formulated products Unique light mapping systems and environmental controls allow for metabolite manipulation and increased yields Research projects with experts from Cornell University, University of Toronto, Hebrew University, Volcani Center, Fluence Bioengineering and P.L. Light Systems
Virtuous Cycle Brands
STRATEGIC PRIORITIES Brands We seek to offer accessible, high-quality products, building sincere relationships with our patients while supporting them with medications that can be life-changing At Peace Naturals our responsibility is to improve the lives of others, one patient at a time Peace will remain focused on the building and shaping the medical cannabis market
Brands STRATEGIC PRIORITIES Launched Original BC (OGBC) as a platform for two recreational brands One brand for mainstream and one brand for premium The Okanagan Valley in British Columbia is known for producing Canada s best cannabis, and we want to leverage that reputation Focus on a small-batch and crafted look and feel, perfected by our team of experts, never settling for shortcuts
Michael Gorenstein David Hsu William Hilson Eric Klein Jeff Jacobson Dr. Lasse Schulze President, CEO & Chairman Head of Operations Chief Financial Officer Head of Marketing Head of Business Development Head of Horticulture Former Partner at Alphabet Financial and operational Previously Regional CFO for Brand management at Government relations and 10+ years international Ventures LLC restructuring expertise Serono & Merck PepsiCo, Chobani, and Kraft regulatory expert experience in the M&A Law at Sullivan & Former VP at Deloitte CRG MSc in Clinical Biochemistry MBA from University of Chicago Founder of a Toronto Horticultural Industry Cromwell J.D. from University of Pennsylvania Law School Bachelor of Science in Business Management from Babson College and Honors Bachelor of Genetics Booth School of Business based marketing agency Founding member of Peace Naturals Ph.D. in Plant Physiology and Toxicology from the University of Toronto
Thank You Contact Information 720 King Street West, Suite 320 Toronto, Ontario M5V 2T3 Office: (416) 504-0004 georgia@thecronosgroup.com