C O R P O R A T E P R E S E N T A T I O N MARCH 2018 C$ RQB

Transcription

1 C O R P O R A T E P R E S E N T A T I O N MARCH 2018 C$ RQB U$ RVVQF

2 F O R W A R D L O O K I N G S T A T E M E N T This presentation contains forward-looking statements. These forward-looking statements are not based on historical facts but rather on company expectations regarding future growth, results of operations, performance, future capital and other expenditures (including the amount, nature and sources of funding thereof), competitive advantages, Business prospects and opportunities. Statements in this presentation about future plans and intentions, results, level of activity, performance, goals or achievements or other future events constitute forward-looking statements. Wherever possible, words such as anticipate:, believe, expect, may, could, will, forecast, potential, intend, estimate, should, plan, predict, or the negative or other variations of statements reflects managements current beliefs and assumptions and are based on information currently available to the Company management. Certain risk factors may cause actual results, level of activity, performance or achievements to differ materially from those implied by forward-looking statements. These factors should be considered carefully and prospective investors should not place undue reliance on the forward-looking statements. Although the forward-looking statements contained in this presentation are based upon what the Company management believes to be reasonable assumptions, investors cannot be assured that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this presentation and the Company assumes no obligation to update or revise them to reflect new events or circumstances. 2

3 T H E O P P O R T U N I T Y A $7.8 Billion Market by 2021 Medical and recreational Cannabis Sectors will generate annual revenues of $1.8 billion and $6 billion respectively by Cannacord Genuity

4 T H E O P P O R T U N I T Y 750,000 kg supply shortfall in D E M A N D 1,000,000 kg S U P P L Y 300,000 kg Combined 2018 demand will be 1 million kg of Canabis, while supply will be about 300,000 kg, Representing a near-term annual supply shortfall of 700,000 kg. We expect demand will continue to increase for several years. This represents a huge opportunity for producers who are currently or about to become licensed to produce. 2 Health Canada

5 M E D I C A L M A R K E T The number of patients is growing at approximately 30% per quarter 3 Licensed producers are contributing to growth of the market through Increased attendance at medical industry conferences Individual physician engagement development of cannabis-specific continuing medical education programs 3 Health Canada

6 O V E R A L L M A R K E T S I Z E Recreational sales in Canada may reach $6 billion by as the legal market is replaced with the regulated adult use market Patients in Canada will consume more than 150,000 kg of medical cannabis by the year 2021, Which could equate to $1.8 billion in retail sales 4 Base retail cannabis market in Canada is estimated to be between $4.9 billion and $8.7 billion. 5 4 Cannacord Genuity Group Inc. 5 Deloitte Recreational Marijuana Insights and Opportunities

7 G E O R G E R O B I N S O N Highest level adviser and consultant to multiple licensed cannabis producers since the MMPR (predecessor to the ACMPR) was introduced in 2013 Instrumental in helping a lengthy list of producers meet and/ or maintain the rigorous standards of compliance set out by Health Canada Seen by many as visionary with an in-depth understanding of the myriad aspects of this emerging industry: facility design, product safety & efficiency, market acceptance & development, product evolution

8 C A N N A B I S A S A M E D I C I N E Has been officially recognized by the Government of Canada as a medical therapy since 2001 Cannabis is seen as a potential replacement for opioid use in pain management or opioid addiction management (Dr. Lianping Ti, UBC) Common indications currently treated by medical marijuana:

9 T H E C A S E F O R L E G A L I Z A T I O N Gradually take part of, then ultimately eliminate, the illicit market First stage aims at reducing the illicit market by 25%-30% Allows Gov t to exert control over quality assurance, product efficacy, consistency, packaging & distribution Significant economic benefits: revenue, employment, production, education, taxation

10 G R O W I N G I N T E R N A T I O N A L A C C E P T A N C E O F C A N N A B I S

11 I N D I G E N O U S P E O P L E S P A R T N E R S H I P S Bill Robinson leads Government/ Indigenous Relations and Strategic Partnerships 34 years with RCMP, retired as commanding officer D Division Former President and CEO, Alberta Gaming & Liquor Commission (AGLC) - Alberta Gaming and Liquor Commission will serve as the central wholesaler for all cannabis product sold in Alberta Extensive relationships with Indigenous Peoples across Canada Favorable taxation regime for facility construction, cannabis production & sale on sovereign Indigenous lands Healthy pipeline of engagements with Indigenous Peoples Contract to build 24,000 square foot facility for Fort McMurray First Nation #468 announced November 2017

12 I N D I G E N O U S P E O P L E S C A N N A B I S A S S O C I A T I O N Works collectively with Indigenous Communities across the country. The association coordinates business opportunities for its members by speaking with one voice to the Government of Canada surrounding Medical Marijuana production Presents a united voice for Indigenous Cannabis Producers across Canada when interacting with federal and provincial government bodies Provides a clearing house for new ideas related to the Indigenous production and sale of cannabis coast to coast to coast

13 I P C A : B E C O M E A M E M B E R Full Membership Opportunity to apply for the position of Board Member or Association Chair Person Invitation to our AGM, monthly newsletter, best practices discussions, cannabis industry updates, coordinating community questions & concerns, representation to government agencies Associate Membership Invitation to our AGM, monthly newsletter, best practices discussions, cannabis industry updates, coordinating community questions & concerns, representation to government agencies

14 I N D I G E N O U S P E O P L E S P A R T N E R S H I P S RQB S TURN KEY CANNABIS SOLUTION: Land assessment, zoning, geotechnical Step-by-step guidance through the complex Health Canada application process Facility design, construction, and security Plant genetics Proprietary growing, drying, monitoring technologies

15 R E T A I L C A N N A B I S O P P O R T U N I T I E S RavenQuest is at the forefront of government consultation relating to the distribution of Cannabis, both medical and recreational We can provide expert guidance to Indigenous peoples pertaining to the distinct landscape relating to the selling, distribution and taxation of Cannabis both on and off Indigenous Peoples lands

16 E M P L O Y M E N T O P P O R T U N I T I E S Cannabis production facilities are high-tech operations requiring training and education in many disciplines including: Plant Sciences Organizational supervision Biology Security Data capture Call centres Horticulture

17 H E M P : A S U B S T A N T I A L O P P O R T U N I T Y Canada is the world leader in Hemp Production The Hempseed market in US alone is valued at over $688 Million annually excludes the Hemp CBD Market Part of the Cannabis family and far distant cousin of Marijuana, Hemp is a superplant and sold and used: Food Ingredient used by major food companies Consumable High Fiber SuperFood Product Pet Food Building Material (Hempcrete) Clothing textile material Paper Livestock Feed Aircraft and Vehicle material Sustainable, Total Plant Utilization

18 H E M P : U N I Q U E F R O M M A R I J U A N A Mandated to contain less than 0.3% THC (10ug/grams) doesn t create a high Non-psychoactive cousin to Marijuana Hemp food derivatives from hempseed are legal Grown outdoors (industrial Marijuana is grown indoors) Can be exported internationally

19 H E M P : T H E R A V E N Q U E S T A D V A N T A G E Benilda Sable, Manager, Quality Assurance & Compliance Sought after industry consultant for major Hemp growers and processors in Canada and worldwide Maintains Quality Assurance and Compliance systems for major Hemp processing facilities domestically and abroad We provide Design and construction knowledge for processing facilities Consultancy to assure Compliance and Quality Assurance Expertise related to Licensing, Growing, Processing and Distribution of Hemp & Hemp Products

20 R Q B S T W O D I S T I N C T D I V I S I O N S SERVICES DIVISION: ESTABLISHED Key adviser to extensive and reputable list of clients End-to-end solution provider for existing LPs and late-stage applicants Facility design, construction Proprietary, industry-leading growing and drying technologies INVESTMENT / ACQUISITION DIVISION Bloomera 20,000 sq foot Licensed facility: 4,000 kg/year AGB 35,500 sq foot, 7,000 kg/year production facility completed mid ,000 kg/year production by late 2018 Strategically positioned for expansion due to consultancy relationships Focus on partnerships with Indigenous Peoples

21 I N V E S T M E N T / A C Q U I S I T I O N D I V I S I O N Acquired Bloomera, 20,000 square foot Licensed Producer; 2,200 kg current production 4,000 kg annual production with Orbital Garden grow technology First acquisition: Alberta Green Biotech 35,500 square foot Edmonton facility currently under construction additional land to expand the facility to more than double capacity as a second stage AGB Phase 1 construction budget is in range of $14 million to $16 million Completion of facility targeted at mid 2018 Expected to produce 7,000 kg of cannabis annually Industry leading GRAMS PER SQUARE FOOT Combined annual production with Orbital Garden grow technology: 11,000 kg per annum CONTINUED EXPANSION A PRIORITY

22 P R O P R I E T A R Y I N D U S T R Y - L E A D I N G T E C H N O L O G Y Automated Orbital Garden 2.0 can double existing yield standards

23 S E R V I C E S D I V I S I O N : I N D U S T R Y E X P E R T I S E Delivers comprehensive, integrated solutions to companies in the regulated cannabis market in Canada Proprietary, automated systems for growing, drying, monitoring designed specifically for cannabis yield maximization Unmatched industry best practices

24 C O M P L I A N C E Compliance with Health Canada regulations will be a key determinant of success and profitability Proprietary growing and drying technologies, patient engineering management systems, and security systems ensure compliance which will be unsurpassed in the cannabis industry, greatly reducing risk of shutdowns or recalls

25 I N D U S T R Y D I S R U P T I V E R & D RavenQuest BioMed recently announced a landmark research partnership with McGill University The work will be conducted through collaboration between two McGill laboratories Dr. Donald Smith - patented technologies for improvement of crop yields Dr. Mark Ware - medical cannabis researcher; Director of clinical research at the Allen Edwards Pain Management Unit at the McGill University Health Center (MUHC)

26 F O U R P I L L A R S A P P R O A C H Turnkey Indigenous Peoples Cannabis Offering Investment Division: Bloomera + Alberta Green Biotech Immediate Revenue Cash Flow Positive Services Division R&D Initiatives Partnered with McGill University = 11,000 kg/year

27 M A R K E T R E C E P T I O N

28 BILL ROBINSON Manager, Government & Indigenous Relations E X E C U T I V E T E A M GEORGE ROBINSON CEO & Director Recognized specialist in the cannabis sector and has worked directly with the CL2G Group s clients and health Canada in all stages of the application and licensing process under the ACMPR and its predecessor legislation, the MMPR Extensive experience in building design, municipal bylaw compliance, heating, ventilation and air conditioning, cannabis growing and drying strategies, security, data collection and analysis, and project funding B.C. Licensed security consultant, Black Belt Six Sigma certified and current president of the BC Regional Council of the Canadian Security Association 34 years RCMP, Retired Commander D division Former President & CEO, Alberta Gaming & Liquor Commission DAVID CROSS CPA, CGA, Chief Financial Officer 20 years of public practice with cross Davis and Company, LLP CFO of numerous TSX and TSXV issuers BENILDA SABLE Manager, Quality Assurance Sought after industry consultant for major Hemp growers and processors in Canada and worldwide Advisor to major Hemp processing facilities domestically and abroad MARLA RITCHIE Corporate Secretary 25 years of public markets expertise

29 B O A R D O F D I R E C T O R S HENDRIK (HENK) VAN ALPHEN Director Proven leader with experience in funding, building and operating numerous companies in the resource sector Extensive experience in international mergers & acquisitions Has been involved in financing and transactions totaling well over $1 billion in his career Canadian public companies experience - has held the executive management and board positions with multiple issuers TONY DRESCHER CPA, CMA, Director Over 35 years experience as an executive and in various industries including mining, telecommunications, technology and waste management Currently serves on the Board of Directors of several private and public companies DR. JORGE BONET Director Director of the Atrial Fibrillation Clinic at The Royal Columbian Hospital Received international awards for original research as well as grand support from major foundations Principal investigator in multiple major international randomized clinical studies CHRIS BECHTEL Director Over 30 years experience, as an executive, entrepreneur and consultant, managing and advising businesses from startups to divisions of large Fortune 500 companies Form and chairman of Supreme Pharmaceuticals, Inc., one of first Canadian public companies in the cannabis sector

30 Shares Issued and Outstanding Share Price (March 2018) Market Capitalization 92,796,832 C$1.35 C$125 Million

31 I N V E S T M E N T H I G H L I G H T S Experience management team who are recognized leaders in the cannabis industry Unique, two-pronged business model diversifies risk Assets generating cash flow today End-to-end solutions for cannabis industry Longer-term upside through strategic investments in LPs Business model is not reliant on timing of recreational market rollout Large and growing market - not creating demand but transferring from illicit to legal Strong shareholder base and access to capital for growth

32 T H A N K Y O U Mathieu McDonald Corporate Communications Ravenquest BioMed Inc. Suite West Hastings Street, Vancouver BC, Canada, V6E 2K mathieu.macdonald@rqbglobal.com