DISCLAIMER This documentation is a presentation (the Presentation ) of general background information about Liberty Health Sciences Inc. s ( Liberty Health Sciences ) activities current as of September 2017. It is information in a summary form and does not purport to be complete. It is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any particular investor. These should be considered, with or without professional advice, when deciding if an investment is appropriate. This Presentation does not constitute or form part of any offer for sale or solicitation of any offer to buy or subscribe for securities nor shall it or any part of it form the basis of or be relied on in connection with, or act as any inducement to enter into, any contract or commitment whatsoever. Recipients of this Presentation who are considering acquiring securities of Liberty Health Science are reminded that any such purchase or subscription must not be made on the basis of the information contained in this Presentation but are referred to the entire body of publicly disclosed information regarding Liberty Health Science. The information contained in this Presentation is derived solely from management of Liberty Health Science and otherwise publicly available information concerning Liberty Health Science and does not purport to be all-inclusive or to contain all the information that an investor may desire to have in evaluating whether or not to make an investment in Liberty Health Science. The information has not been independently verified and is subject to material updating, revision and further amendment, and is qualified entirely by reference to Liberty Health Science s publicly disclosed information. No representation or warranty, express or implied, is made or given by or on behalf of Liberty Health Science or any of its affiliates, directors, officers or employees as to the accuracy, completeness or fairness of the information or opinions contained in this Presentation and no responsibility or liability is accepted by any person for such information or opinions. Liberty Health Science does not undertake or agree to update this Presentation or to correct any inaccuracies in, or omissions from, this Presentation that may become apparent. No person has been authorized to give any information or make any representations other than those contained in this Presentation and, if given and/or made, such information or representations must not be relied upon as having been so authorized. The information and opinions contained in this Presentation are provided as at the date of this Presentation. The contents of this Presentation are not to be construed as legal, financial or tax advice. Each prospective investor should contact his, her or its own legal adviser, independent financial adviser or tax adviser for legal, financial or tax advice. Certain statements in this Presentation may constitute forward-looking information, including future-oriented financial information and financial outlooks, within the meaning of applicable securities laws. Forwardlooking information may relate to Liberty Health Science s future outlook and anticipated events or results and may include statements regarding Liberty Health Science s financial results, future financial position, expected growth of cash flows, business strategy, budgets, projected costs, projected capital expenditures, taxes, plans, objectives, potential synergies, industry trends and growth opportunities. 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Forward-looking statements contained herein are made as of the date hereof and Liberty Health Science and its directors, officers and employees disclaim any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise. 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, you should not place undue reliance on forward-looking statements due to the inherent uncertainty therein. All forward-looking information is expressly qualified in its entirety by this cautionary statement. Forward-looking information and other information contained herein concerning management s general expectations concerning the medical marijuana industry are based on estimates prepared by management using data from publicly available industry sources as well as from market research and industry analysis and on assumptions based on data and knowledge of this industry which management believes to be reasonable. However, this data is inherently imprecise, although generally indicative of relative market positions, market shares and performance characteristics. While management is not aware of any misstatements regarding any industry data presented herein, industry data is subject to change based on various factors. This Presentation may not be reproduced, further distributed or published in whole or in part by any other person. Neither this Presentation nor any copy of it may be taken or transmitted into or distributed in any other jurisdiction which prohibits the same except in compliance with applicable laws. Any failure to comply with this restriction may constitute a violation of applicable securities law. Recipients are required to inform themselves of, and comply with, all such restrictions or prohibitions and Liberty Health Science does not accept liability to any person in relation thereto. LIBERTY HEALTH SCIENCES INC. I INVESTORS PRESENTATION 2
Who We Are Liberty is one of twelve licensed producers and sellers of medical marijuana in the State of Florida OUR EXPERTISE: Industry Leading Greenhouse Operators Thorough knowledge of regulated industries Strong management team OUR COMMITMENT: To become the low cost producer, utilizing Aphria s innovative greenhouse methods and technology To produce pharmaceutical grade marijuana of the highest standard To continuously improve and innovate our offerings with our science based approach LIBERTY HEALTH SCIENCES INC. I INVESTORS PRESENTATION 3
Investment Highlights High growth potential Goal of becoming lowest cost producer with expertise of Aphria Florida license to sell medical marijuana provides critical barrier to entry Seed to Sale certified with quality control exceeding industry standards Strong Balance Sheet with over $10MM of cash and no debt Significant near and mid-term opportunities for growth Experienced and capable management team Experienced and capable management team LIBERTY HEALTH SCIENCES INC. I INVESTORS PRESENTATION 4
Our Team GEORGE SCORSIS Chief Executive Officer 20+ Years in CPG regulated products Former President of Mettrum Health Corp building it to a $430M business prior to its acquisition by Canopy Growth Corp Former President of Red Bull Canada where he was instrumental in growing Red Bull Canada into a $150M business Former Executive Leader at Bacardi Canada where he was fundamental in new product developments and launches RENE GULLIVER, CPA, CA Chief Financial Officer 30+ Years in a CFO role Former CFO at Dream Global REIT Capital markets experience, raising in excess of $500 million of capital over 3 years Extensive international M&A experience with acquisitions, divestitures, and financings History of driving operational performance and managing through metrics LIBERTY HEALTH SCIENCES INC. I INVESTORS PRESENTATION 5
Our Board VIC NEUFELD Co-Founder, CEO, Aphria 20+ Years in Pharma CEO of Jamieson Laboratories (1993-2014) Demonstrated vision, growth & performance AARON SERRUYA CEO, YogenFrüz Leader in franchises, co-founder and CEO of YogenFrüz Winner of numerous awards for business excellence Will lead the dispensary expansion initiative in Florida and other states where investments are made JOHN CERVINI Co-Founder, VP Infrastructure & Technology, Aphria 20+ Years in Agri-business Fourth generation greenhouse grower Proven growth & expansion track record LIBERTY HEALTH SCIENCES INC. I INVESTORS PRESENTATION 6
Equity (As of October 2017) Strong Balance Sheet With $10MM in Cash and no Debt CAPITAL STRUCTURE Shares(MM) % of Fully Diluted Shares Outstanding Aphria Inc. Management & Board ownership Prior entity shareholders Notable shareholders 106,864,102 25,360,510 40,681,482 111,115,098 36.93% 8.75% 14.06% 38.41% Basic shares outstanding 284,021,193 98.15% z Warrants @ $0.624 2,995,192 Warrants @ $1.50 600,000 Options @ $0.40 250,000 Options @ $0.624 1,500,000 Options @ $0.95 6,667 Fully diluted shares outstanding 289,373,052 100.00% 1.03% 0.21% Experienced 0.09% and 0.52% capable management 0.00% team LIBERTY HEALTH SCIENCES INC. I INVESTORS PRESENTATION 7
Florida Market (1)(2) Population: 20,600,000 Market: $1.6bn by 2020 Qualifying Patients: 6,065,927 (30%) Diverse Patient Base (3) (5) Registered Patients: 36,400 (up 200%+ over last 3 mos.) Ordering Physicians: 1,043 (up 27% in 8 weeks) No. of Licenses: 12 Dispensaries: 25 dispensaries / license (only 16 locations currently statewide) Legal Product Scope: Cannabis Oil and Edibles By 2020, Florida is projected to have a larger medical marijuana market than Colorado ($1.6bn vs. $1.5bn) Canada has approximately 800k people per license in comparison to Florida which has 1.7 MM people per license (1) The State of Legal Marijuana Markets, 5 th Ed, published by Arcview Market Research in partnership with BDS Analytics, *Potential Rec Market in 2021 (2) https://mjbizdaily.com/florida-lawmakers-reach-agreement-medical-marijuana-rules/; https://www.greenroadsworld.com/pages/cbd-oil-in-florida (3) CDC, Arthritis Foundation, Aidsview, Hepview, Prevent Blindness America, American Academy of Neurology, National Centre for PTSD (4) There are 12 licenses currently issued. (5) There are 26 other conditions outlined in the Florida MMJ regulations LIBERTY HEALTH SCIENCES INC. I INVESTORS PRESENTATION 8
Current Florida Operations Square Footage: 14,000 sq. ft. # People Employed: 15 Current # of Patients Served: 200+ Current Growing Capacity: 700kg per year Location: Alachua County, Florida Total acreage: 36 acres (1) (2) # of Dispensaries Owned: (0) The Florida operations are starting to realize the benefits of Aphria`s approach to production. Since being acquired by Liberty, production has increased by 15% (1) Land acquired. Expected to close Fall 2017 LIBERTY HEALTH SCIENCES INC. I INVESTORS PRESENTATION 9
Future Plans for Florida Liberty s growth in Florida will come through our expansion in three critical areas: Capacity Dispensaries Patient Count 10 LIBERTY HEALTH SCIENCES INC. I INVESTORS PRESENTATION 10
Capacity Prod. Capacity: 3,000kg annually Facility: 56,000 sq.ft. July 2017 March 2018 February 2019 Prod. Capacity: 700kg annually Facility: 14,000 sq.ft. Prod. Capacity: 13,000kg annually Facility: 187,000 sq.ft. 11 LIBERTY HEALTH SCIENCES INC. I INVESTORS PRESENTATION 11
Dispensaries Pensacola Geographic Target Criteria: General Population Number of Prescribing Doctors Number of Adult Lifestyle Communities Veteran Population Tallahassee Jacksonville The Villages Orlando Tampa October 2017: Villages December 2017: Fort Lauderdale, Miami, Tampa June 2018: Orlando, Tallahassee, Jacksonville, Pensacola Fort Lauderdale Miami THE BOARD EXPERT: Serruya Private Equity Serruya Private Equity (SPE), specializes in acquiring and organically growing franchise operations. SPE`s enterprise currently spans a total of 5100 locations across 27 countries. Founded by Michael and Aaron Serruya, co-founders of Yogen Fruz 30 years ago, SPE is an enterprise which has annual system-wide sales of over $1.5 billion. SPE`s Aaron Serruya will be leading the dispensary rollout and will be providing insight into building a leading chain of dispensaries. LIBERTY HEALTH SCIENCES INC. I INVESTORS PRESENTATION 12
grams sold Patients Patient Count 18,000,000 16,000,000 14,000,000 Growth Driven by: 1. Leaders in Professional and Medical Outreach 2. Increased Accessibility due to Dispensaries 3. Increased Capacity 120,000 100,000 12,000,000 10,000,000 8,000,000 6,000,000 Phase 2: 56,000 sq. ft. Phase 3: 187,000 sq. ft. 80,000 60,000 40,000 4,000,000 2,000,000 Phase 1: 14,000 sq. ft. 20,000-2017 2018 2019 2020 2021 2022 2023 - Grams (annualized) Patients 13 LIBERTY HEALTH SCIENCES INC. I INVESTORS PRESENTATION 13
US Adoption of Legal Cannabis (July 2017) (1) Recreational use allowed Medicinal use allowed Illegal Decriminalized/ approved (1) The State of Legal Marijuana Markets, 5 th Ed, published by Arcview Market Research in partnership with BDS Analytics LIBERTY HEALTH SCIENCES INC. I INVESTORS PRESENTATION 14
Appendix 15 LIBERTY HEALTH SCIENCES INC. I INVESTORS PRESENTATION 15
Public Company Comps (As of October 2017) (1) Experienced and capable management team (1) Source: FactSet, SEDAR, Thomson Reuters LIBERTY HEALTH SCIENCES INC. I INVESTORS PRESENTATION 16
Future States of Interest CT Ohio Population: 11,600,000 PA MD Population: 3,600,000 (1) Population: 6,000,000 Population: 12,800,000 Qualifying Patients: 2,804,359 (24%) Qualifying Patients: 736,089 (20%) Qualifying Patients: 1,826,848 (30%) Qualifying Patients: 3,024,000 (24%) No. of Licenses: 12 (2) No. of Licenses: 9 No. of Licenses: 15 No. of Licenses: 12 Ohio Status: Application submitted License to be issued in November 2017 Facility to be purpose built from ground-up The Target Market Size, including Florida totals 14,457,223 patients on a population of 54,603,937 people 17 (1) (2) The State of Legal Marijuana Markets, 5th Ed, published by Arcview Market Research in partnership with BDS Analytics There will be 12 large scale growing licenses (25k sq. ft.) and 12 small scale growing licenses (3k sq. ft.) LIBERTY HEALTH SCIENCES INC. I INVESTORS PRESENTATION 17