In Investor or Pr Presenta tati tion on. We simply grow better. The The Sup Supreme Canna nnabis Company ny T S X : F I R E 1
reasonable in the circumstances. However, the Company accessed under the Company’s profile on the System for does not undertake to update any such forward-looking Electronic Document Analysis and Retrieval (“SEDAR”) at Di Discl claimer. mer. information whether as a result of new information, future www.sedar.com. The Company cautions that the list of risk events or otherwise, except as required under applicable factors and uncertainties described in the AIF is not Certain information regarding The Supreme Cannabis securities laws in Canada. Although the Company believes exhaustive and other factors could also adversely affect its Company, Inc. (“Supreme” or the “Company”) contained that the expectations and assumptions on which the results. Certain industry data contained in this herein may constitute forward-looking statements within forward-looking statements are based are reasonable, presentation have been obtained from third party sources the meaning of applicable securities laws and or be undue reliance should not be placed on the forward- and the Company has not independently verified any of subject to change without notice. Forward-looking looking statements because the Company can give no the data from third party sources nor it ascertained the statements may include estimates, plans, expectations, assurance that they will prove to be correct. Many factors underlying assumptions relied upon therein, or whether opinions, forecasts, projections, guidance or other could cause our actual results, level of activity, such data has changed since the date thereof. The statements that are not statements of fact. Forward- performance or achievements or future events or Company’s forward-looking statements are expressly looking statements are current as of the date they are developments to differ materially from those expressed or qualified in their entirety by this cautionary statement. made and are based on applicable estimates and implied by the forward-looking statements, including, assumptions made by us at the relevant time in light of our without limitation, the factors discussed in the “Risk experience and perception of historical trends, current Factors” section of the Company’s Annual Information conditions and expected future developments, as well as Form dated October 2, 2018 (“AIF”). A copy of the AIF and other factors that we believe are appropriate and the Company’s other publicly filed documents can be 2
We Simply We imply Gro Grow B Bet etter. er. Use our kn know owledge edge of of the plant the nt to create tr transfo nsformati tive ve br brands that deliver positive expe po peri rience ces . 3
Supreme Cannabis. Fr From he headqua uarters in n Toront nto, ON, +60 employees provi vide corporate servi vices to the he company ny’s bus usine nesses, inve nvestment nts and nd partner ers: : Legal & Regulatory Government Relations Information Technology Sales & Marketing Corporate Development Finance Businesses and Investments. • • • 30+ employees 600+ employees Headquartered in London, UK • • • 12,000 sqft facility in Langley, BC 440,000 sqft cultivation facility Kincardine, ON Targets investment opportunities in CBD health • • Processing and sales license for cannabis oils Sales, processing and cultivation licenses and wellness businesses in the UK and Europe (expected Q3 2019) • • • 400+ employees 34,000 sqft research and development facility to be 5,000 sqft Health Canada licensed facility in Ontario • • Produces cannabis oil from facility in Lesotho built in Goderich, ON Europe operations selling CBD Hemp products into • • Cultivation, extraction and processing licenses Commenced applications for cultivation license the UK and Netherlands Partnerships. Exclusive agreement to launch premium cannabis products Partnership to enter vaporizer market with 7ACRES oil pods 4
Supre Su reme me Ca Cannabis bis’ approa roach ch. 1. 1. 2. 2. 3. 3. Establish fo foundational Create di differentiat ated d Expand consumer- IP IP and st stron rong core ore co consumer-dr driven centric approach to busin bu ines esses es . produ pr duct cts across market in inte ternatio tional l marke kets ts. segments. CONSUMER-DRIVEN BRANDS THAT DELIVER PREMIUM PRODUCTS. 5
1. 1. 2. 2. 3. 3. Establish fo foundational Create di differentiat ated d Expand consumer- IP IP and st stron rong core ore consumer-dr co driven centric approach to busin bu ines esses es . pr produ duct cts across market inte in ternatio tional l marke kets ts. segments. 10 18 6
1 . Key Ke y trends im impactin ing the canna ca nnabis is market in in Ca Cana nada. Pr Promi omising Pr Prot otection on for for Glo Global bal Canadian Market. Ca Re Recr creat ational al. La Launchpad. Number of new cannabis Government-controlled Setting the standard for users doubled year over wholesale and distribution global cannabis regulations year. By 2023, the legal combined with long-term and fostering early Canadian cannabis market domestic protection from development of competitive is expected to reach $6.7 imports. cannabis IP. billion 1 . 1. Jefferies forecast, May 2019 7
1 . Experie Exp rience ce-dr driven appr approac oach. . Case Study Ca Discover Di Design De De Deliver Sc Scale • • • • Focus Fo us group ups across Cana nada 440, 440,000 000 sq sqft in indoor hybr brid id Ag Agreem eemen ents to sel ell 7AC ACRE RES’ Inc Increase sed cul ultivation n sp space fa facility • Adult Cannabis Enthusiasts 1 Ad ca cannabis in 8 prov rovince ces fr from 3 rooms to 23 in n 1 year • • Average age: 20-30 • • All cultivation rooms are Al e Medi Me dical al di distribution through gh At At full production capacity, y, • ide identic ical l 10,000 sq sqft Weekly spend: $120 le legacy wh whole lesale le contracts annual an al run rat ate of 50,000 kg g ro rooms • Assess product quality • • Advanced Ad ed trade e market eting Harvest Ha st e every 3 3 d days o s once • based on visual Pr Proprietary who hole-pl plan ant dr dry fully scaled ful inspection and scent and an d han and-tr trim finish 8 1. Legal Aged Recreational Cannabis Enthusiast Buying Behavior 2018 – Bridgeable.
1 . • Pr Premium price ce. C$6,000-7,000 per kg • Sc Scale. Current run rate of 33,580 kg with full production run rate of 50,000 kg • Te Team. 550+ Employees • Br Bran and d recogn gnition. “Sell-out” strains and brand asked for by name • Mu Multi aw awar ard-wi winning brand. 9
1 . Wh Why y pre remiu mium m quality lity ma matte tters rs. quality 1 . De Demand d drive ven b by q . Effec Ef ect driven en by by qua uality. +110 cannabinoids, +200 terpenes and hundreds of Sens Se nsory evalua uation n is used to determine which other flavonoids, proteins and amino acids. products will provide desired taste and smoke. Infinite chemical combinations determine the 85% 85% of cannabis enthusiasts will not spectrum of effects experienced. Terpenes may be purchase products that have subpar sc scen ent . one of the primary drivers of this en entourage e ef effec ect. 63% 63% of cannabis enthusiasts will reject product Known terpenes in 7ACRES’ Sensi Star. that does not pass their vi visu sual insp specti tion . ⁺ ⁺ ⁺ Myrcene alpha-Bisabolol Isopulegol ⁺ ⁺ ⁺ Limonene Beta-Pinene Terpinolene ⁺ ⁺ ⁺ Caryophyllene alpha-Terpineol Camphene ⁺ ⁺ ⁺ Guaiaol Nerolidol Ocimene ⁺ ⁺ Humulene Alpha-Pinene 10 1. Legal Aged Recreational Cannabis Enthusiast Buying Behavior 2018 – Bridgeable.
1 . Pr Protec ection n for prem emium um. 7ACRES 3.5 Gram Retail Price in the OCS 1. Ov 1. Oversupply y of low-qu qual ality fl flower. First eight months of legalization, 74% of SKUs sold by the OCS were below C$10 per gram 1 . $49.95 ** $45.60 $40.05 2. In 2. Increasingly y discerning con onsume mers. $35.30 * $35.30 Greater brand-consciousness and willingness to pay premium prices. 3. Est 3. Establish shed ed market et data in the e U.S. Continued premium pricing for novel strains. Example: Premium U.S. Strain (USD) Wappa White Sensi Star Jean Guy Jack Haze Ju Jungle gle Boy’s To Topan panga ga Can anyon Widow Introducing new strains at higher selling prices. *I *In Q4 Q4 2019, 2019, Wappa Wappa st strain wa was added to to th the 7A 7ACRES’ vault for future commercialization 11 **Jack Ha **J Haze was launched in Se September 2019 1. OCS Sales, May 10, 1. 10, 2019 2019
1 . Creation Cr on and com ommercialization on of of the next ge generati ation of pr premium can annab abis ge geneti tics. • No Novel ge geneti tics. . Supply agriculturally-focused, disease resistant, premium seed stock • Broad applica Br cation. Recreational, medical and wellness consumers • Ex Experienced team. Spinoff from 7ACRES genetics business, led by team with +30 years experience of developing plant IP • State-of St of-the the-ar art f t fac acility ty. . 34,000 sqft research and development facility located in Goderich, Ontario • Foundational IP Fo IP. Creating long-term proprietary value for brands 12
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