Investor Presentation Q3 2018
TSXv: NDVA 2/22 I N V E S T O R P R E S E N TAT I O N The information contained herein, together with any amendments or supplements and any other information that may be furnished by the company, includes forward-looking information. Such information is based on assumptions as to future events that are inherently uncertain and subjective. The company makes no representation or warranty as to the attainability of such Forward assumptions, including the completion of a fjnancing or as to whether future results will occur as projected. Looking It must be recognized that the projections of the Statement company’s future performance are necessarily subject to a high degree of uncertainty, that actual results can be expected to vary from the results projected and that such variances may be material and adverse. Prospective investors are expected to conduct their own investigation with regard to the company and its prospects. This presentation does not constitute an ofger to sell or a solicitation of an ofger to buy any security.
TSXv: NDVA 3/22 I N V E S T O R P R E S E N TAT I O N 01 – Executive Summary _________________________________________ 4 SUMMARY Growing Demand for Medical Cannabis _______________________ 6 02 – Recreational Cannabis Market ________________________________ 7 INVESTING IN CANNABIS Supply of Cannabis __________________________________________ 8 Table of Talented and Experienced Team ______________________________ 10 High Quality Products _______________________________________ 11 03 – Contents INDIVA ADVANTAGES Our Corporate Identity ______________________________________ 14 Customer Acquisition Strategies ______________________________ 15 London Facility _____________________________________________ 17 04 – Production Facility Pictures __________________________________ 19 LONDON FACILITY Expansion Path - Flowers, Oil, Products ________________________ 20 05 – London Operating Expenses __________________________________ 22 COST BREAKDOWN
TSXv: NDVA 4/22 I N V E S T O R P R E S E N TAT I O N NEAR TERM CATALYSTS Sales Expansion Processing Facility Cultivation and oil INDIVA received Fully funded processing extraction: its sales license on facility planned for 2019. Fully funded expansion August 10, 2018 and Facility to produce INDIVA, Executive to 40,000 square feet sales are expected to Bhang, DeepCell and underway and to be start in Q4 of 2018 other cannabis products. Summary completed in Q4 of 2018. STRONG FUNDAMENTALS Capitalization: • Award-winning cannabis products Basic Shares Outstanding ......................... 81.0mm • State-of-the-art GMP-standard indoor Warrants: .......................... 28.3mm production facility Options: ................................ 4.7mm Convert: ............................... 8.9mm • Fully funded expansion Fully Diluted Shares Outstanding ...................... 122.9mm • Experienced Master Grower with award- winning strains and loyal 1000+ patient base Balance Sheet (June 30, 2018): Cash ..................................... $27.3mm • Experienced management team, passionate Convertible Debenture $6.7mm about helping people and protecting investors
Investing in INDIVA London Cost Executive Cannabis Advantages Facility Breakdown Summary 05 01 02 03 04 02 Investing in Q3 2018 Cannabis
TSXv: NDVA 6/22 I N V E S T O R P R E S E N TAT I O N Health Canada’s Projected Registered Patients Actual Registered Patients 450,000 400,000 Registered Patients December 2017: registered 350,000 patients exceeds Health 300,000 Canada’s 2022 projection 250,000 200,000 150,000 100,000 50,000 Growing 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Demand GROWTH RATE OF MEDICINAL CANNABIS USERS IS HIGHER THAN EXPECTED for Medical Health Canada projected 450,000 patients At March 2018, there were 296,702 patients Cannabis will be using cannabis at $1.3 billion annual registered, which is a 10% quarter-over- revenue by 2024. quarter increase & approximately equal to 13,359 Health Canada’s projection for 2022. physicians have authorized patient access to medicinal 6,000,000 marijuana 5,000,000 4,000,000 296,702 3,000,000 registered patients 2,000,000 in total to date 1,000,000 Multiple Risk of Migraine Life Stress Sclerosis Epilepsy Cancer Low BMI Severe Pain Depression Headaches Insomnia Anxiety Arthritis Hypertension (Elevated) 10,000 (approx.) new patients per month POTENTIAL MARKET Source: Health Canada, Statistics Canada, Canadian Community Health Survey, medicalmarijuana.ca
TSXv: NDVA 7/22 I N V E S T O R P R E S E N TAT I O N Daily Weekly Monthly Occasionally Non-Consumers Potential Customer 7% 4% 17% SIZE AND MAKEUP OF THE CANADIAN 3% RECREATIONAL MARKET 8% According to the Deloitte Survey, the size of the Canadian recreational cannabis market could be as much as $8.7 billion per year, or similar to the size of the Canadian spirit market. 61% Recreational Source: Deloitte, PBO Users (Thousands) Consumption (Metric Tonnes) Cannabis Market 1600 1200 Opportunity! 375 800 600 250 200 20 10 Once Less than once a month 1-3 Times per month At least once a week Daily ANNUAL CANNABIS USERS Aged 15 and over, Canada excluding Territories, Mid-point Estimates, 2018 AND CONSUMPTION
TSXv: NDVA 8/22 I N V E S T O R P R E S E N TAT I O N Number of licences issued by province YT 0 NU NT 0 0 NL Supply of 0 BC Cannabis 25 AB MB QC 7 2 8 PE SK 1 ON 4 61 NS 3 NB 3 Current Production Health Canada Market Health Canada Market Data from Q4 2017 Data from Q4 2017 • 115 existing LPs • Dry fmowers: 6.6mm grams sold, 44.1mm grams in • Supplying even the low end of the • Current production insuffjcient inventory estimate of the recreational cannabis to meet demand • Oil: 10.3mm grams sold, 14.6mm grams inventory market would require the production • 62 Sales Licenses issued • 296,702 registered clients at March 31, 2018 of over 700mm grams of cannabis • Prices range from $1.75/gram to $15/gram annually
Investing in INDIVA London Cost Executive Cannabis Advantages Facility Breakdown Summary 05 01 02 03 04 03 INDIVA Q3 2018 Advantages
TSXv: NDVA 10/22 I N V E S T O R P R E S E N TAT I O N FINANCE & CORPORATE DEVELOPMENT CREATIVE – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – Niel Marotta President & CEO, Tom Borowicz Chief Brand Offjcer • Over 30 years of experience in marketing, Director, Founder branding, print/digital advertising and design • Managed over $1 Billion across several with Fortune 500 companies industries Involved in capital raises and M&A transactions exceeding $1 Billion PRODUCTION – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – LEGAL & BUSINESS DEVELOPMENT Pete Young Master Grower, Founder – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – Koby Smutylo COO, General Counsel, • Grow Team: 15+ years of experience producing medicinal strains for hundreds of patients Talented & Director, Founder • International recognition and multiple product • Koby is a seasoned lawyer and has acted as awards counsel to private and public companies Experienced • Helped fjnance and license an ACMPR LP Team PROJECT MANAGEMENT – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – FINANCE Jose Laurentino Chief Technology Offjcer – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – • 20+ years in agricultural project development Jennifer Welsh Chief Financial Offjcer including indoor and greenhouse expertise • Managed a global fjnance team for eight years as Corporate Controller of a TSX listed company • Former consultant for a publicly traded LP
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