November True Leaf Medicine International Ltd. Canada United States Germany CS: MJ OTCQB: TRLFF FSE: TLA

Transcription

1 November 2018 Medicine International Ltd. Canada United States Germany CS: MJ OTCQB: TRLFF FSE: TLA

2 DISCLAIMER Forward Looking Statements This Presentation (the Presentation ) has been prepared solely for informational purposes by Medicine International Ltd. ( ) and is solely for use by prospective investors and other third parties in connection with their consideration of an investment in. This presentation is not, and should not be assumed to be, complete. This presentation has been prepared to assist interested parties in making their own evaluation of and does not purport to contain all of the information that may be relevant. In all cases, interested parties should conduct their own investigation and analysis of and the data set forth in this presentation and other information provided by or on behalf of. Any views and opinions expressed in this presentation are those of and do not necessarily represent facts. In addition, certain of the information contained herein may be derived from information provided by industry sources. believes that such information is accurate and that the sources from which it has been obtained are reliable. cannot guarantee the accuracy of such information, however, and has not independently verified such information. The information presented herein remains subject to change. Statements in this presentation are made as of the date of this presentation unless stated otherwise. This presentation also contains statements that, to the extent they are not recitations of historical fact, constitute forward-looking statements. Forward-looking statements are typically identified by the use of terms such as may, should, expect, could, intend, plan, anticipate, estimate, believe, continue, predict, potential or the negative of such terms and other comparable terminology. The forward-looking statements included herein are based upon s current expectations, plans, estimates, assumptions and beliefs that involve numerous risks and uncertainties. Assumptions relating to the foregoing involve judgments with respect to, among other things, future economic, competitive and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond control. Although believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, actual results and performance and the value of its securities could differ materially from those set forth in the forward-looking statements due to the impact of many factors including, but not limited to, risks and uncertainties detailed in the Risk Factors in the Risk Factors section of Offering Circular on Form 1-A, filed with the U.S. Securities and Exchange Commission and other discussions of risk factors contained in s periodic filings or supplements to the offering circular. Offering Circular on Form 1-A can be found at claims the safe harbor protection for forward looking statements contained in the Private Securities Litigation Reform Act of undertakes no obligation to update or revise any such information for any reason after the date of this presentation, unless required by law. Investment in s securities involves significant risks. You should purchase these securities only if you can afford a complete loss of your investment. 2

3 RETURN THE LOVE Our Purpose To help pets live healthier lives by embracing natural alternatives Our Vision Global cannabis-for-pets brand leader 3

4 UNDERSTANDING CANNABIS USES Differentiation of hemp, hempseed, CBD-producing flowers, and more Cannabis Hemp Marijuana Contains cannabinoids (THC, CBD, e.g.) Illegal in most jurisdictions Medicinal and psychoactive properties Hemp w/ CBD Hemp w/ trace levels of CBD <0.3% THC is the requirement for a cannabis plant to be defined as hemp 4

5 CANNABIS IN THE MARKET Hemp Seed CBD 5

6 TRUE LEAF COMMERCIAL STRATEGY Premiere Branding is a Key Differentiator Creating Brand Insistence Emotional Engaging Relevant Differentiation Value Drivers Awareness 4 3 Accessibility The 5 Consumer Drivers Dossier is our design and innovation partner that brings a solid track record and process to creating and scaling consumer centered brand platforms. Global brand recognition with our legal products will drive growth and set apart from its peers in both the pets and cannabis space 6

7 TRUE LEAF VISION Global cannabis-for-pets brand leader PET $184.1 billion CAGR: 4.9% CANNABIS $93.8 billion CAGR: 24.9% serves two of the hottest industries worldwide References 1. Grandview Market Research Estimates. Estimates are for 2023, calculated from 2025 figures. 2. Pet Care Global Industry Overview. Euromonitor. 7

8 TRUE LEAF MARKET OPPORTUNITY Large Obtainable Market Opportunity in Pets and Cannabis Growth plans support $300 million to $350 million of revenue over the next 5 years Global Legal Cannabis Market 2023 Global Pet Care Market 2023 $93.8 billion Total Available Market $5.5 billion Serviceable Available Market (Canada) $184.1 billion Total Available Market $29.6 billion Serviceable Available Market (Global pet products markets) $300 million Serviceable Obtainable Market 1.01 % of TAM $31 million Serviceable Obtainable Market 0.03% of TAM 8

9 TRUE LEAF PET Own the Hearts and Minds of Pet Owners Market Outlook $184 Billion Worldwide Market $30 Billion US Pet Food Market $6 Billion US Pet Treat Market Market Positioning Pioneer of hemp-based product in North America and Europe Legal hemp-based products with no CBD/THC in US Sold in 2000 stores in North America and Europe Carried by leading pet retailers worldwide 9

10 TRUE LEAF PET Own the Hearts and Minds of Pet Owners Growth Sales of C$1.4M for fiscal year ended Mar. 31, % increase YoY Record revenue quarter of C$491 K for Q (April to June 2018) 45% gross margin 14 dedicated staff in Canada, US and Europe Exploring acquisition opportunities International Distribution Sales in Canada, US, Europe and New Zealand 2,000 stores across North America, Europe and New Zealand Ongoing partnership discussions for Asia (China, South Korea, Japan, India) 2 nd largest pet store in the UK 2 nd largest pet store in Germany 10 th largest pet store in North America 4 th largest pet store in North America Canada Part of largest pet store in North America 15 th largest pet store in North America 6 th largest pet store in North America 10

11 OUR CUSTOMERS Target demographics 75.4 MILLION MILLENNIALS 35% have a dog or cat Pets instead of having kids Cannabis over alcohol 74.9 MILLION BABY BOOMERS 32% own pets Empty nesters Cannabis over pharma 11

12 PET GROWTH STRATEGY Traditional Distribution / Direct-to-Store / Direct-to-Consumer > Traditional Distribution > Direct-to-Store > Direct-to-Consumer North America > Traditional Distribution > Direct-to-Store > Direct-to-Consumer Europe > Traditional Distribution > Direct-to-Store Currently in 2000 Stores Asia Pacific 12

13 TRUE LEAF CAMPUS Overview 40-acre site in Lumby, BC, Okanagan s agricultural region Groundbreaking March 2, 2018 Central 18,000 sq. ft. hub, hydroponic grow, future fractionation, purification and laboratory facilities Completion for Fall 2018 Licensing Timeline License to Grow Spring 2019* License to Sell Fall 2019* Phase 1 capacity 1,500 kgs/yr Phase 2 capacity 10,000 kgs/yr *Subject to Health Canada approval 13

14 2018 KEY MILESTONES Corporate Overview January to March April to June July to Sep 2H H 2019 Raised $14 MM CAD via SEC compliant Reg A+ equity crowdfunding Purchased 40- acres in Lumby, BC Retained Dossier Announced cultivation team Broke ground on Phase 1 of Campus 280% revenue growth FY 2018 (YE Mar 31) Recruited Sylvain Toutant, former David s Tea CEO, to Board Launched Veterinarian Advisory Board with Founding Chair Dr. Katherine Kramer Appointed CFO Kerry Biggs, formerly of Lululemon Complete TL Campus construction Select capital markets advisory partner Close next financing round Up-list to major exchange(s) Line extensions Receive License to Grow and Sell Launch global rebrand campaign Launch new hemp-seed and CBD/THC product lines Record revenue quarter Q (Apr Jun 2018) 14

15 HEALTH & WELLNESS / PET CANNABIS COMPANY COMPARISONS Cannabis, Pet, Health & Wellness Valuation COMPANY STOCK SYMBOL LAST PRICE (SEPT 9/17) Oct 31, 2018 MARKET CAP YEAR END REVENUES Canopy Growth NYSE: CHC $9.18 $48.29 CAD $11.30 B CAD $55.14 M CAD Tilray Nasdaq: TLRY - $ CAD $11.82 B CAD $10.1 M CAD Aurora Cannabis NYSE: ACB $2.23 $8.90 CAD $8.68 B CAD $18.07 M CAD Aphria APH.TO $6.01 $15.70 CAD $3.83 B CAD $20.44 M CAD Cronos Group CRON.TO - $9.72 CAD $1.76 B CAD $4.1 M CAD Green Organic Dutchman (TGOD) TGOD.CN - $3.10 CAD $779 M CAD Non-revenue generating HIKU Brands HIKU.CN - $2.76 CAD $464 M CAD Non-revenue generating Terrascend TER.CN - $9.24 CAD $886 M CAD Non-revenue generating Supreme Cannabis FIRE.V - $1.56 CAD $440 M CAD Non-revenue generating MJ $0.51 $0.51 CAD $49.03 M CAD $1.4 M CAD Acquisition Date COMPANY DESCRIPTION SALES ACQUISITION PRICE SALES MUTIPLE June 2015 Vega (2015) Plant-based Protein Foods $135 M C$715 M 5.3 X June 2015 Manitoba Harvest(2015) Hemp-based Foods $38M C$133M 3.5 X Pet Products May 2018 Ainsworth Pet (2018) Rachel Ray $1.9B USD - April 2018 Blue Buffalo (2018) Pet Food $1.3B USD $8 B USD 6.25 X March 2015 Wag (2017) Dog Walking App $300M investment $650M valuation - January 2018 Big Heart Brands (2015) Meow Mix, Milk-Bone Natural Balance $2.23B $5.8 B USD 2.6X January 2014 Zukes (2014) Pet Treat brand $25M* $75M* 3X Overview Pet Med Financials 15

16 LEADERSHIP Expertise in pets, cannabis, retail, branding and government Executive Darcy Bomford, Founder and CEO Tenzin Khangsar, Executive VP Kerry Biggs, CPA, MBA Chief Financial Officer Don Chisholm, VP Global Branding Steve Schroeder, Chief Cannabis Industry Advisor Board of Directors Mike Harcourt, OC. Chair Darcy Bomford Sylvain Toutant, CEO of DAVIDsTEA Kevin Bottomley Veterinary Advisory Board Dr. Katherine Kramer, DVM Advisors Osler, Hoskin & Harcourt LLP Edison Group Dossier Creative Hill + Knowlton Strategies BreakThrough CommunIcations 16

17 CORPORATE SUMMARY What makes us special? : global cannabis-for-pets brand Pioneer of hemp seed-based pet products High-growth industries: Pet and Cannabis Legal revenue in stores worldwide First cannabis company with successful SEC-compliant financing 17