Cannabis Opportunity February 2020 EXECUTIVE SUMMARY VAST BUSINESS - PowerPoint PPT Presentation

Unlocking the Latin American Cannabis Opportunity February 2020

EXECUTIVE SUMMARY VAST BUSINESS OPPORTUNITY IN THE LATIN AMERICAN CANNABIS MARKET 1 o Demand 490 million people ; US$ 12.8 billion addressable market o Medicinal Cannabis is on the brink of regulation on all major Latin American sizeable jurisdictions o Opportunity: capture the pent-up demand A STATE-OF THE-ART BUSINESS PLATFORM TO CAPTURE THIS OPPORTUNITY o Applying global knowledge to develop pharma-grade products based on cannabinoids o Building a top-of-mind, reputable brand in a market currently dominated by confusion and fragile brands o Leveraging economies of scale, cost and quality through end-to-end integration of the cannabis value chain EXECUTING A THREE-PRONGED STRATEGY TO ENTER THE MARKETS IN LATIN AMERICA o Branding value proposition aimed at the middle market in each country o Developing own-branded product line with medicine , supplements and derma-cosmetics o Licensing of proprietary formulations to Big Generic Pharma players already present in the region PROJECTED RESULTS: PHARMA-LIKE MARGINS + STARTUP GROWTH o > 50% EBITDA margin over US$ 100M revenue o 79% CAGR on revenues next 5 years 1. Footnote goes here

POTENTIAL VALUE OF THE CANNABIS BUSINESS IN LATIN AMERICA VERDEMED PRIORITIZATION STRATEGY: MEXICO Population 130M o Country economic health o Population buying power COLOMBIA o Medical Cannabis regulatory maturity Population 50M o Total market size PERU Population 30M BRAZIL MEDICINAL RECREATIONAL Population 215M Argentina Brazil CHILE Chile Population 20M Colombia ARGENTINA Mexico Population 45M Peru Priority Markets Uruguay POPULATION Future 490M

TOP 5 ADDRESSABLE MARKETS – VM TARGETS TOTAL ADDRESSABLE MARKET IN 2028 = US$12.8B Industrial Use US$ 0.138B US$ 2.4B 1% US$ 1.98B US$ 1.6B US$ 1.1B Recreational US$ 0.7B US$ 4.2B 33% Pharmaceutical / Medical US$ 8.5B Brazil Mexico Chile Argentina Columbia 66% 2021 2022 2024 2023 2024 Pharmaceutical products expected launching date BRAZIL AT INFLECTION POINT ANVISA (Brazil’s FDA) Proposing Medical Cannabis regulation – process ongoing - Source: New Frontier; Prohibition Partners “LATAM Cannabis Report – Oct/18”.

LATAM COMPETITIVE LANDSCAPE Argentina Brazil Chile Colombia Mexico Peru CURRENT FUTURE

VERDEMED ASSETS AND BUSINESS AT A GLANCE A sales & marketing channel for VM products VM Care Platform for Drug Development & Research integrating patients, at TIPT (Toronto Institute of doctors and customers Pharmaceutical Technology) Pharmaceutical lab approved by ANVISA for importing and distributing pharmaceutical and cosmetic products Regulatory Affairs & Q&A + Clinical Trials Leadership Contract Pharmaceutical Manufacturer - R&D and Formulation Development Doctor’s network in place Founders MDs Neurosurgeons Over 2,000 patients treated Fully integrated licensed with medical cannabis cannabis producer (grow/extract/export) CBD and THC Owned 17ha of land - 70min from Cali Building 650,000 sqft greenhouses for Cali - 3,000 sq. ft building organic cannabis outdoor growing – extraction facility industrial 60,000 kg / year extraction plant

VERDEMED KEY MILESTONES & CATALYSTS Q4’19 Achievements Q1’20 Q2’20 Q4’20 Q1’21 Highly experienced management Complete partnership with Management team with in-depth, General private-label USA based producer proven branding experience and of CBD track-record in pharmaceuticals Upfront runner - Inflection Upgrade acquired certified point of Pharma Lab Partnerships and licensed Complete regulatory facilities to with major pharma laboratory development framework import VMs Latina of CBD and products America CBD/THC Pharma based VM Care Players products eCommerce Fully Scalable, low- THC / CBD 7-hectare Final license Start sales of licensed cost production product Platform greenhouse to start cannabis oil - • First revenue to grow, capacity construction plantation - complete 1st • Cali 17ha land extract visibility complete harvest cycle • Prices from and export facility agronomic and oil • Growing + 4,000 (bulk) to evaluation extraction extract full cost 50,000 up to (medicinal) US$1,000/kg Robust achievements, fostered by structured planning and high margins cannabis markets, lead investments of US$12.7M to date - raised US$6.7M in equity and debt, with the commitment of another US$6M equity at Round B and Pre-IPO raise

VERDEMED VALUE CHAIN STRATEGY CBD COSMETICS MEDICINAL / OTC Major Pharma Partnership for Product Development, Clinical Trials, License & Distribution GROW EXTRACT FORMULATE DISTRIBUTE RETAIL BRANDING Major Pharma Partnership + Verdimed Care e-Commerce Platform SATIVEX INSOMNIA PHARMACEUTICAL EPIDIOLEX

BUILDING THE MEDICAL CANNABIS BRAND OF CHOICE FOR LATAM VERDEMED • • Genetic Selected Seeds Bulk Products AGRI • • Organic Outdoor Growth White Label Solution Provider VA B2B – Bulk Oil and White • • GMP Extraction Facility Pharma Grade Manufacturing Label Solution Provider • VERDEMED • Fully integrated medicinal Formulation Development Cannabis value chain VP PHARMA • APIs Sourcing / Pharma Grade • Canadian DNA to offer affordable Manufacturing high-quality cannabinoid-based Generic Pharmaceutical • Quality Control Pharma Lab (Brazil) pharmaceuticals to Latin America • Deep knowledge of Latin America to develop strong and attractive brands for Latinos VERDEMED • Own-branded product line • Platform & Community VC CARE o + Medicine o E-commerce Platform o Supplements B2C – Branded o Patient / MD Centric Medicinal Cannabis o Derma-cosmetics o Self Education o Logistic Support Services

VERDEMED AGRI - OWNED EXTRACTION FACILITY VA Fully Integrated Licensed Cannabis Producer (grow/extract) Existing Pilot Indoor Facility • 3,000 sq. ft extraction facility • Indoor growing and industrial extraction plant • 1,910 liters per year capacity – 3x expansion plan • Successfully extracted crude oil – pursuing GMP cert.

VERDEMED AGRI - OWNED FLOWER PRODUCTION VA D’Agua, Colombia - 70min from Cali Fully Integrated Licensed Cannabis Producer (grow/extract) CBD and THC • 17ha acquired in June 2019 • City of D’Agua – 70min from Cali • Building 6ha greenhouses for organic cultivation + 1ha for operation facility • Planned 60,000 Kg per year flower production capacity - 3x/4x crops per year • 20 Registered Seeds (ICA) – 4 CBD and 16 THC • 10 under agronomic evaluation • Competitive cost advantages.

VERDEMED CARE – BRANDED MEDICINAL CANNABIS PRODUCTS VC Own-branded product line • Medicine Promote the access of the Latin American • Supplements OUR MISSION population to cannabinoid-based medicinal • Derma-cosmetics products developed and produced with pharmaceutical rigor , abiding by the laws of each country. Platform & Community Connect patients, health professionals and the • E-commerce Platform interested community with trends and innovations • Patient / MD Centric in cannabis health through information , research, knowledge, education , products, • Self Escalation monitoring and services . • Logistic Support Services

VERDEMED PHARMA - GENERIC / ME TOO PLATFORM VP After the completion of the first clinical trials in 2021, VM plans to offer products for other conditions such as cancer pain, chronic pain, and glaucoma. Over ten different indications for clinical trials for the next five to seven years. CBD CBD THC/CBD THC/CBD GEL CBD ORAL SOLUTION TOPICAL SOLUTION MOUTH SPRAY CAPSULES / PILLS GEL CAPSULES Similar formulation For sore muscles and Similar formulation and Insomnia/sleep disorders Proprietary and presentation myofascial pain relief clinical trials – a presentation of formulation for social of Epidiolex - CBD Sativex - Nabiximol proprietary formulation anxiety / well being

VERDEMED PROJECTED REVENUES AND EBITDA MARGIN 80.0 60% US$ Millions, % of Net Revenues 55% 54% 56% 53% 67.3 70.0 63.9 50% 59.7 60.0 40% 51.1 40% 34.2 50.0 31.9 32% 30.1 40.0 30% 27.0 28.7 30.0 20% 19.2 20.2 16.8 20.0 11% 15.6 22.2 13.4 10% 10.0 11.5 4.8 2.5 12.9 12.9 12.9 10.7 1.9 .4 - 4.0 - 0% 2.9 3.7 2020 2021 2022 2023 2024 2025 2026 VM Agro VM Pharma VM Care Gross Revenue EBITDA Margin (% of Net Revenues)

VERDEMED PROJECTED CASH FLOW – ANNUAL AND CUMMULATED US$ Millions 60.0 53.7 50.0 40.0 31.1 30.0 22.7 21.3 18.2 20.0 7.2 10.0 (6.6) (4.6) (4.4) - 9.8 (10.0) (6.6) (8.4) (11.2) (15.6) (20.0) 2020 2021 2022 2023 2024 2025 2026 Cash Flow Cumulative Cash Flow

VERDEMED CAPITAL STRUCTURE & FUNDING US$ PER ENTERPRISE VALUE ROUND # SHARES US$ COMMENTS SHARE - PRE-CASH - Founders 10,000,000 $350,000 $0.035 $350,000 Subscribed by MDs and BODs Seed 2,400,000 $600,000 $0.25 $2,400,000 Subscribed by 10 Medical Doctors 5 yr. Convert – no interest Faber Convert Invest. 10,145,455 $6,000,000 $0.59 $7,333,333 (to be converted pre-IPO) Total Post Conversion 22,545,455 $6,950,000 First $3M tranche to Round B and C out of Faber Equity Invest. 2,657,143 $3,000,000 $1.13 $25,454,545 $6M Committed @ $1.13/sh New Investors Round B 8,000,000 $12,000,000 $1.50 $37,803,896