Investor Presentation January 2019 CSE ticker: GW
2 NOTICE TO RECIPIENT This investment is suitable only for sophisticated investors for whom an investment does not constitute a complete investment program, who do not require immediate liquidity for their investment and who fully understand and are willing to assume the risks involved. An investment may be considered to involve a substantial degree of risk, and an investor could lose all or a substantial amount of his or her investment. This document is not an offer to sell (or solicitation of an offer to buy) any interest in the Company. These materials may not be used or relied upon for any purpose other than as specifically contemplated by a written agreement. The materials may not be circulated outside of the recipient s organization, publicly referred to, or disclosed, in whole or in part, without express written permission. This presentation does not purport to be all inclusive or contain all the information that a prospective investor may require to fully evaluate an investment in the contemplated transaction. Prospective investors should conduct their own thorough investigation and due diligence before making an investment. DISCLAIMER This Presentation contains forward-looking statements and forward-looking information. Often, but not always, forward-looking statements can be identified by the use of words or phrases or state that certain actions, events or results may, could, would, might or will be taken, occur or be achieved. Forward-looking statements involve known and unknown words such as plans, expects or does not expect, is expected, estimates, intends, anticipates or does not anticipate, or believes, or variations of such words and risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements and information. Examples of such statements include: (A) the financial forecast of the Company; (B) the intention to grow the business and operations of the Company; (C) anticipated timing for the availability of the Company s products to market and expected sale prices; (D) expected growth in the number of users of medical and recreational marijuana anticipated; and (E) the expansion of the Company s business into other revenue streams. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this Presentation. Such forward-looking statements are based on a number of assumptions which may prove to be incorrect, including, but not limited to: the ability of the Company to obtain necessary financing; the ability to complete a going public transaction; the ability to satisfy the requirements of a stock exchange; the economy generally; consumer interest in the products of the Company; competition; and anticipated and unanticipated costs. These forward-looking statements should not be relied upon as representing the Company s views as of any date subsequent to the date of this Presentation. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking statements and information contained in this Presentation are expressly qualified in their entirety by this cautionary statement. The forward-looking statements and information included in this Presentation are made as of the date of this Presentation and the Company assumes no obligation to update such forward-looking statements to reflect new information, subsequent events or otherwise unless required by applicable securities legislation. CSE ticker: VGW
3 One of the largest premium cannabis extraction companies in North America and the first colab facilitating cannabis product development for licensed producers globally
THE VALENS ADVANTAGE 4 THE WORLD IS OUR MARKET Health Canada licensed (multiple), EU GMP certification pending, Hemp License pending, Nutraceutical License pending setting Valens up for every servicing and consumer product opportunity, globally. DEVELOPMENT Through one of our Dealer s Licenses we hold the ability to perform research and clinical trials to better understand Cannabis and it s benefits, and to lead the way in purposeful product offerings around the world. BIG PICTURE BRANDING The Valens brand is recognized for delivering the most science driven, responsibly tested, sustainably derived products and services in the market. INDUSTRY-BACKED The experience and reputation of the team at Valens speaks for itself. We are a preferred partner of Canopy and other reputable industry players. SEED TO SALE TRANSPARENCY AND CONTROL Different strains, compounds and growing techniques provide different desired effects in finished products. By controlling our supply from the source right through to processing, we re able to ensure our products qualities are maximized and always purpose-driven. PROPRIETARY PROCESSING Our processing methods have been customized to ensure that the end product does not lose the valuable complexity of compounds responsible for the spectrum of desired effects that are often lost in the refining process. PRODUCT FLEXIBILITY We have the ability to produce a wide variety of products, allowing Valens to capitalize on multiple markets from medical to recreational to preferential method of consumption.
VALENS AGRITECH LTD. Health Canada licensed cannabis extraction center Extraction center with cultivation and research capabilities Proprietary, customized cannabis extraction processes Ability to import and export wholesale cannabis products world-wide Third party cannabis product development One of the largest capacities to extract in Canada and growing 25,000 sq ft plant to facilitate additional extraction production EU GMP Certification pending for global export anywhere
VALENS LABS LTD. Health Canada licensed cannabis extraction center Health Canada Dealers Licensed for testing and analysis Leading edge research laboratory Service provider specializing in the testing of metals, residual solvents, pesticides, mold, terpenes and cannabinoid profile ISO 17025 accreditation, first lab to be accredited in Canada for a cannabis matrix Named a Center of Excellence in Plant Based Science by $115B medical instruments company Thermo Fischer Scientific Setting the domestic standard in Health Canada-required third party product verification as well as globally.
VALENS REVENUE STREAMS 7 EXTRACTION ABILITY TO CREATE CUSTOM, FLEXIBLE AGREEMENTS RESIN REFINED OIL WHITE LABEL Processing from flower to crude oil Processing from flower to oil ready for market PRODUCTS Processing and packaging of oil for market Fee for service Fee for service or Revenue share Revenue share OTHER REVENUE SOURCES Lab Testing Services Direct Sales Export Sales 3rd Party Research & Development Product Development
EXTRACTION: THE FOUNDATION OF OPPORTUNITY 8 EDIBLES Snack edibles Trail mix, protein bars, jerky, sweets, etc. Infused prepared meals Food additives Cooking oils, honey, peanut butter Just add cannabis beverage containers with cannabis oil preloaded in the top, just like the vitamin waters with the powder dispenser on top Drinks alcoholic or non-alcoholic Oral sprays OIL/TINCTURES High THC/CBD tinctures Vaporizer Cartridges and Pens Capsules Concentrates TOPICALS Balms/creams/salves Bath soaks/salts Skin care products Body sprays Lubricants Essential oils Sublingual patches Transdermal patches
SoRSE TECHNOLOGY 9 SōRSE emulsion technology surrounds oils, transforming the entire solution into water-compatible forms All of this means you can add cannabis to products including beverages without that "weed" taste or smell. BREAKTHROUGH ITEMS TO NOTE Shelf stable for over 180 days (not proven anywhere else) Zero cannabis taste, color or odor Provides effective, consistent dosing Lower dosage sufficient due to increase in bioavailability when consumed Faster onset and offset, making it the safer and more trusted edible option WHAT THIS MEANS FOR VALENS Value-add in our oil services process to provide clients with water-soluble cannabis ready for mixing in liquids by the client Powder product ready to go to market that consumers can mix with any liquid of their own Exclusive Canadian rights to all Tarukino beverages including the #1 selling cannabis beverage in Washington, three years in a row, Happy Apple Cider.
10 C U R R E N T N E G O T I A T I O N S F O R I N T E R N A T I O N A L O P P O R T U N I T I E S G L O B A L M A R K E T GLOBAL LEGAL MARIJUANA MARKET EXPECTED TO REACH 146.4 BILLION USD BY 2025 -REPORT BUYER, APRIL 2018 C A N A D A - R x 2 0 0 1 R e c r e a t i o n a l 2 0 1 8 G E R M A N Y - R x 2 0 1 7 M A L T A - R x 2 0 1 8 EUROPEAN MEDICAL AND RECRECATIONAL MARKETS EXPECTED TO GROW TO 116.4 BILLION BY 2028 - THE EUROPEAN CANNABIS REPORT, PROHIBITION PARTNERS J A M A I C A - R x 2 0 1 7 AS OF JUNE 7, 2018, CANADA IS THE FIRST MEMBER OF THE G7 TO LEGALIZE CANNABIS FOR RECREATIONAL USE ACROSS THE COUNTRY COLO M B I A - R x 2 0 1 7 B R A Z I L - R x 2 0 1 6 P E R U - R x 2 0 1 7 A U S T R A L I A - R x 2 0 1 7 N E W Z E A L A N D - R x 2 0 1 7 A C T I V E L Y P U R S U I N G I N T E R N A T I O N A L L I C E N S I N G & D I S T R I B U T I O N CSE ticker: VGW
11 STRATEGIC PARTNERSHIPS C H A P T E R T W O
INITIATING COVERAGE Altacorp Capital
MANAGEMENT 13 TYLER ROBSON CEO / DIRECTOR With 15+ years grassroots experience, Mr. Robson was Chief Operating Officer of the Company until taking the reins as Chief Executive Officer in May 2017, as well as remaining Director of Operations at Valens AgriTech Inc. CHRIS BUYSEN, MPAcc, CPA, CA CFO Mr. Buysen has over 15 years of diverse financial experience working as a senior financial executive with many public and private organizations in a wide range of industries including retail, pharmacy and consumer packaged goods. CHANTEL POPOFF VP In 2007, Ms. Popoff was appointed Director of Operations, then Director of Marketing for a fast-growing Western Canadian retail pharmacy chain. In 2013 she joined a natural health food company as Director of Marketing and was promoted to President in 2016. SCOTT YOUNG IR& BUSINESS DEVELOPMENT Mr. Young s focus at Valens is corporate finance initiatives. Mr. Young has spent the past 15 years working in the capital market sectors of Canada, the United States and Europe. QUINN SHISKIN HEAD OF PRODUCTION Mr. Shiskin s career emanates around production as a multi-ticketed Red Seal tradesman; where he worked in a variety of industries including mining, oil sands, LNG, pulp and paper, and in the construction industry. With these skills, he entered the extraction industry where he revolutionized the process along the way. EVERETT KNIGHT, CFA EVP OF STRATEGY/INVESTMENTS Mr. Knight has managed one of the only institutional investment mandates focused on the cannabis industry where he analyzed and toured hundreds of cannabis companies. His experience in the sector began in 2014 and since that time, has accumulated a thorough understanding of the industry, regulations, subsectors and the companies involved in this fast growing space.
14 W W W. V A L E N S G R O W O R K S. C O M L O C A T I O N 230 C A R I O N RD. K E L O W N A, B R I T I S H C O L U M B I A C A N A D A V 4 V 2 K 5 C O N T A C T U S E V E R E T T @ V A L E N S G R O W O R K S. C O M ( 778)-755-0052 S C O T T @ V A L E N S G R O W O R K S. C O M ( 7 0 5 ) 8 8 8-2756