CORPORATE PRESENTATION May 2019
NOTICE TO READER Certain information set forth in this presentation contains “forward-looking information”, licenses for its businesses; the Company's failure to retain key personnel and hire additional including “future oriented financial information” and “financial outlook”, under applicable personnel needed to develop its business; And the Company's business practice reputation securities laws (collectively referred to herein as forward-looking statements). Except for being negatively affected by client or user complaints or negative publicity. statements of historical fact, information contained herein constitutes forward-looking statements and includes, but is not limited to future M&A activity and completion of Although forward-looking statements contained in this presentation are based upon what Sproutly Canada, Inc.’s (“Sproutly”) projects that are currently underway, in development or management of Sproutly believes are reasonable assumptions, there can be no assurance otherwise under consideration. Forward-looking statements are provided to allow potential that forward-looking statements will prove to be accurate, as actual results and future investors the opportunity to understand management’s beliefs and opinions in respect of events could differ materially from those anticipated in such statements. Sproutly the future so that they may use such beliefs and opinions as one factor in evaluating an undertakes no obligation to update forward-looking statements if circumstances or investment. management’s estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking The material assumptions upon which forward-looking statements in this presentation are statements. We seek safe harbor. based include, among others, assumptions with respect to: the Company's ability to access financing on favorable terms to continue with its expansion plans and develop its business; This presentation and the material contained herein are confidential and are not to be the Company’s ability to obtain or maintain the required regulatory approvals; the disclosed to the public. This presentation is for information purposes only and may not be Company's ability to attract and retain customers; the continuation of executive and reproduced or distributed to any other person or published, in whole or part, for any operating management or the non-disruptive replacement of them on competitive terms; purpose whatsoever. This presentation does not constitute a general advertisement or and stable market and general economic conditions. The Company makes no general solicitation or an offer to sell or a solicitation to buy any securities in any jurisdiction. representation that reasonable business people in possession of the same information Such an offer can only be made by prospectus or other authorized offering document. This would reach the same conclusions. Although we believe that the assumptions underlying presentation and materials or fact of their distribution or communication shall not form the forward-looking statements are reasonable, they may prove to be incorrect and we cannot basis of, or be relied on in connection with any contract, commitment or investment assure that actual results will be consistent with such statements. Given these risks, decision whatsoever in relation thereto. The information in this presentation is not intended uncertainties and assumptions, you should not place undue reliance on these forward- in any way to qualify, modify or supplement any prospectus, listing statement, information looking statements or the information contained in such statements. circular or other information disclosed under the corporate and securities legislation and stock exchange policies of any jurisdiction relating to Sproutly, Inc. No securities These statements are not guarantees of future performance and undue reliance should not commission or similar authority in Canada or any other jurisdiction has in any way passed be placed on them. Such forward-looking statements necessarily involve known and upon the adequacy or accuracy of the information contained in this presentation. unknown risks and uncertainties, which may cause actual performance and financial results in future periods to differ materially from any projections of future performance or result expressed or implied by such forward-looking statements, including the Company's requirement for additional funding to continue its expansion plans in Canada and the United States; the Company’s failure to obtain and/or maintain the required regulatory NOT FOR DISTRIBUTION; NO OFFERING 1
OUR COMPANY Sproutly is developing and bringing to market cannabis consumer products with a focus on beverages. We are combining advanced cannabis cultivation and transformational technologies to redefine the cannabis industry. 2
INVESTMENT HIGHLIGHTS § Smoking is becoming a taboo and declining sharply while cannabis oils gain popularity in Canada Sh Shifting Co Consumer Preferences Pr Pres esen ents Po Poten ential $ $4.4 b billion § Medical cannabis oil sales have grown at a compounded quarterly growth rate of 33.2% while flower sales have only grown at 5.6% (1) Canadian Ca Ca Cannabis Beverage Potential Canadian Cannabis Beverage market estimated at up to $3.0 billion (2) before taking into account additional market potential created by § Oppor Op ortun unity naturally water-soluble based cannabis beverages § Infusion Biosciences Inc.’s discovery that cannabis plants naturally produces water soluble forms of phytochemicals including cannabinoids and terpenes § Sproutly owns the exclusive rights to Infusion’s APP Technology in Canada, Australia, Israel, Jamaica, and the European Union Sc Scientific Groun ound Breaking g Discov overy § of of Natur urally Water-Sol Solub uble Exclusive licensee of Infusion’s patent-pending APP Technology for the recovery of naturally water-soluble phytochemicals (Infuz 2 O) Ca Cannabinoids to Disrupt Ca Cannabis § Onset of effects within 5 mins and offset of effects within 90 min solves the onset/offset challenge for the beverage industry Bevera Be rage § Infuz 2 0 is fully soluble in water-based preparations without the need for formulation techniques such as emulsification or encapsulation § Exclusive technology License with Micronutrient Technologies Inc. (“MTI”) to deliver clear cannabis beverages fortified with water soluble minerals – MTI is the only provider of nutritional minerals in water-soluble form on a single molecular platform Fully-operational 16,600 sq.ft. facility (with cultivation, processing, and sales licenses) with production capacity of up to 1,400 kg per year (3) of dried § Lic Licens nsed Producer wit ith Growth cannabis flower, 700 kg of trim per year (3) and APP Technology processing capacity of up to 10,000 kg annually (100 million 10mg doses) Po Poten ential I Indep epen enden ent o of A Additional § Strategically located in the Greater Toronto Area (“GTA”) will also be the initial extraction facility for APP Technology Investment in Cultivation In § Business model does not require investment in additional cultivation as Sproutly intends to source cannabis on the wholesale market § Proprietary, patent pending APP Technology is a plant-to-product process that also recovers oil-based cannabinoids (BNO) in addition to the water soluble phytochemicals (Infuz 2 O) § Superior Sup or APP Technology is a highly scalable and low-cost recovery method which yields attractive economics as compared to other extraction methods that require further processing beyond extraction to produce consumable products Plant-to Pl to-Pr Product ct Eco Economics cs § CO2 extraction THC recovery rate of ~60% vs. APP Technology total THC recovery rate of ~90% § APP Technology is proven and currently operated at commercial scale in the US § Sproutly’s executive management team provides decades of experience in biopharmaceutical R&D, technology commercialization, and business development Hi Highly Exp xperienced Ma Management and § Over three decades of research and management experience at biotechnology and pharmaceutical companies, and consumer product companies Bo Board rd including Kimberly-Clark, AB InBev, SC Johnson, and Pepsi Co. § Seasoned board of directors and advisory board include beverage industry veterans with strong networks and decades of experience § Partnership with oldest and largest independent brewery in Canada to produce cannabis infused beverages for the recreational market in Canada Te Technology Validated via Ex Excl clusive e § Competitive advantage driven by Infuz 2 O paired with Moosehead’s 152+ years of experience and well-respected adult beverage brand portfolio JV JV with Mooseh ehea ead Brew ewer eries es § JV structured to ensure maximum alignment of mutual interests and is well positioned to enter cannabis beverages market upon legalization 3 (1) Health Canada (2) Molson Coors (3) 1,000 g of flower and 1,000 g of trim per grow light with five cycles per year
Recommend
More recommend
