Zenabis November 21, 2018
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(or "the Companies") and the timeline for completing such transaction, the holding of a shareholder meeting to approve such transaction and for seeking court approval of such transactions, the anticipated costs per gram of the Companies, the anticipated production capacity of the Companies and its competitors, the receipt of all required licenses to operate, future sales, supply chains and partnerships of the Companies, timeline for the legalization of recreational cannabis; the growth of market efficiencies; the projected size of the cannabis market; the forecasted results of the Companies; an increase in competition in the cannabis market; and other statements that contain words such as "believe," "expect," "project," "should," "seek," "anticipate," "will," "intend," "positioned," "risk," "plan," "may," "estimate" or, in each case, their negative and words of similar meaning. 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Zenabis brings together two families rooted in Canadian agriculture for more than 30 years.
Combined Business The combination of Zenabis and Bevo brings the best of the cannabis and agriculture industries together to form a business with the third largest available production space footprint 1 with meaningful supply agreements, brand relationships, and partnerships. Available Production Space 0.7m sq. ft. indoor 2.8m sq. ft. of high-tech greenhouse 3.5m sq. ft. Distribution Technology Management + Expertise Regulated businesses E-commerce Agriculture New product development Strongest growing expertise in Canada North America s largest propagation business Experienced management team across international growing, sales, R&D, and distribution Note: 1) After completion of planned expansions. Available production space is defined as operating and in construction (excludes any facility where ground has not yet been broken) cannabis production facilities (excluding outdoor facilities). Production space is allocated pro-rata for any JV or partial ownership. Options on future production space are excluded. 3
Available Production Space of Major Global Cannabis Producers Upon completion of the RTO, Zenabis will have the third-largest available global cannabis production space dedicated to cannabis. 1 (millions sq. ft.) Available Total Production Space ($bn) 7.0 $13.0bn 3.5m sq. ft. (3 rd ) 14.0 6.0 $10.4bn 12.0 5.0 4.0 $7.5bn 10.0 8.0 3.0 6.0 2.0 $2.5bn 4.0 1.0 2.0 - Aphria Tilray Zenabis Aurora Canopy - Available Production Space 4 Enterprise Value (RHS) Notes: 1) After completion of planned expansions. Available production space is defined as operating and in construction (excludes any facility where ground has not yet been broken) cannabis production facilities (excluding outdoor facilities). Production space is allocated pro-rata for any JV or partial ownership. Options on future production space are excluded. 2) Enterprise value as of market close on November 19, 2018 2
Cannabis Production Facilities Upon completion of the RTO, Zenabis will own four state-of-the-art facilities coast to coast. Zenabis will also have two additional sites available for cannabis cultivation in the future (an additional 0.7m sq. ft.). Zenabis Langley Zenabis Atholville 2.1m sq. ft. greenhouse 380k sq. ft. indoor facility Zenabis Delta Zenabis Stellarton Add photo once received 25k sq. ft. indoor facility 255k sq. ft. indoor facility Note: After completion of planned expansions. Two greenhouses to the right of the Bevo photo are not part of Bevo facility. 5
Company Highlights Strong production network Four planned production facilities 1 / 0.7m sq. ft. indoor / 2.8m sq. ft. greenhouse / 3.5m sq. ft. total Multiple distribution channels Supply to four provinces and one territory, two medical agreements in Canada, and international partnerships Stakeholders, investors and innovative partnerships Venture investments in cannabis; three First Nations and Opportunities New Brunswick as equity investors Well positioned for global growth Will be constructing an extraction facility in Malta; current supply agreements or LOIs in the EU, Panama and Malta Note: 1) After completion of planned expansions. Four production facilities are Zenabis Langley, Zenabis West, Zenabis East and Zenabis Stellarton. This excludes Bevo Pitt Meadows and Bevo Topgro. 6
Corporate Social Responsibility Teamwork is a focus of ours across all departments. When we care for our communities, our environment, our children, our employees, and all other stakeholders, we do it together. Commitment to Community Safety Keeping children safe Education Research Involvement Volunteerism Charitable giving Inclusion Commitment to Environment Sustainable Power Solar Wind Cogeneration Recycling Water Packaging Construction methods Commitment to People Customers Education Safe, clean, pure product Responsible marketing 7 Employees Health & safety Job creation Skills training
Management Team The Zenabis management team has experience in large agriculture operations, corporate finance roles, and the cannabis space. Zenabis has a team of medical experts to lead the development of medicinal initiatives. Management Team Highlights Rick Brar Co-Founder and Chief Executive Officer John Hoekstra Chief Financial Officer Karen Parent Chief Quality and Compliance Officer Leo Benne Chief Growing Officer Mike McGinty Chief Administrative Officer Medical Team Dr. Natasha Ryz Chief Science Officer Dr. Zeid Mohamedali Chief Medical Officer 8 Dr. Oliver Corea Head Scientist Dr. Kyle Boniface Lead Scientist
Global Cannabis Market The global legal cannabis market is expected to reach USD146bn by the end of 2025 1, with medical cannabis as the largest segment. Canada Total: USD14bn by 2025 1, 67% CAGR Europe Medical: USD63bn by 2028 2 United States Total: USD52bn by 2025 1, 25% CAGR Global Total: USD146bn by 2025 1, 36% CAGR Medical: USD100bn by 2025 1, 33% CAGR South America Medical: USD9bn by 2028 3, 52% CAGR 9 Notes: Estimates are obtained from independent sources and may not corroborate exactly. CAGR is between 2016 and 2025 for global, United States, and Canada, and between 2018 and 2028 for South America. Sources: 1) Grand View Research April 2018. 2) Prohibition Partners The European Cannabis Report 3 rd Edition July 2018. 3) Prohibition Partners The LATAM Cannabis Report October 2018.
Partnerships and Distribution Channels Zenabis has developed a diverse set of partnerships and relationships with provinces, distributors, First Nations, start-ups, and other cannabis businesses and brands. Industry Groups Canada-wide Partnerships and Distribution Channels Brands for All Markets Member Member Definitive Agreement Primarily for Oil LOI for Exclusive Supply Agreement as Referral Partner Recreational Brand Medical Brand Brand in Development Purchase Orders Received VENTURES Investment Platform Brand in Development Brand in Development Brand in Development Supply Agreement Investor Investment Joint Venture LOI for Kombucha Partnership Purchase Orders Received Investor Supply Agreement Supply Agreement Investor Investor 10
Medical Strategy It is legal to use cannabis for medical purposes in 35 countries, with individual rules governing each. Zenabis has developed a wide range of medical products for distribution in these legal markets. Zenabis Zenabis Differences Patient Support Education Clinical Trials Chief Medical Officer is a doctor and active clinician Medical advisory board GMP Certification Research and Development Zenabis Delta Zenabis Atholville Oral Oil Drops Oil Soft Gels Oral Sublingual Oil Spray EU GMP compliant CBD Oils and Capsules Beverages Zenabis Delta site expects GMP certification in Q1 2019 Vapes & Concentrates Edibles 11
Latin America Zenabis intends to capitalize on the opportunity to establish cost effective cannabis cultivation and relationships with distribution partners in the Latin America region. Opportunity Overview Cultivation Population 650 million 1 Projected Size USD9bn 1 in medical cannabis sales by 2028 Best cost per gram in the global market ($0.05 2-0.25) Legal Status Industrial cannabis being legalized in 5 of 11 key markets Perfect climate for cannabis growing Low labour costs ($1.64/hr 2 compared to $14.00/hr) Permitted Exports Colombia Low construction costs (80% lower than North America and Europe) Strategy Establish footprint in key growing regions within Colombia such as Medellin and Cali Legalized medical cannabis Sources: 1) Prohibition Partners The LATAM Cannabis Report October 2018. 2) https://www.cbc.ca/news/world/canada-colombia-cannabis-investment-canopy-narcos-1.4819766. 12 Find and develop relationships with leading pharma distributors in Latin America
Europe Zenabis intends to supply the European market with high quality medical cannabis products for sale in a variety of forms. All products will be produced in EU GMP certified facilities. Population 742 million 1 Opportunity Overview Projected Size USD63bn 1 in medical cannabis sales by 2028 Legal Status Medical cannabis legalized in over 20 countries in Europe Current Presence Strategy Enter into strategic partnerships with highly reputable third parties Sources: 1) Prohibition Partners The European Cannabis Report 3 rd Edition July 2018. Legalized medical cannabis 13 Embark on broad educational programs targeting doctors and pharmacists
Thank You Government of Malta Forefront of Innovation Agile and Responsive Government Regulated, Trusted Business Environment Landmark Partnership to Construct Post Production Facility Ministry for Economy, Investment and Small Business Parliamentary Secretary for Consumer Protection Malta Enterprise Malta Medicines Authority 14
Contact Us info@zenabis.com zenabis.com