INVESTOR PRESENTATION February 2017 Innovator and manufacturer of - PowerPoint PPT Presentation

Strictly Private And Confidential Not For Distribution INVESTOR PRESENTATION February 2017 Innovator and manufacturer of goods containing health additives with medicinal benefits…

Disclaimer Disclaimer This presentation has been prepared and issued by CannHealth Group Pty Ltd ACN 623 476 906 ( CannHealth or Company ) and its Equity Capital Markets Adviser, Olive Capital Pty Ltd ACN 163 620 371 ( Olive Capital ) to assist in informing interested parties about the Company and should not be considered an offer or invitation to subscribe for or purchase any securities in the Company or as an inducement to make an offer or invitation with respect to those securities. No agreement to subscribe for securities in the Company will be entered into on the basis of this presentation. This presentation is limited to persons who are sophisticated investors for the purposes of s708(8) or professional investors for the purposes of s708(11) of the Corporations Act 2001 or persons who hold Australian financial services licences and any of their representatives. By attending and/or receiving this presentation you warrant to CannHealth that you are such a person. This presentation may contain forward looking statements. Whilst CannHealth has no reason to believe that any such statements are either false, misleading or incorrect, it cannot and does not warrant or guarantee that through either the passage of time or actions beyond the control of CannHealth they will not become so. You should not act and refrain from acting in reliance on this presentation material. Nothing contained in this presentation constitutes investment, legal, tax or other advice. This overview of CannHealth does not purport to be all inclusive or to contain all information which its recipients may require in order to make an informed assessment of the Company’s prospects. Before making an investment decision, you should conduct, with the assistance of your broker or other financial or professional adviser, your own investigation in light of your particular investment needs, objectives and financial circumstances and perform your own analysis in order to satisfy yourself as to the accuracy and completeness of the information, statements and opinions contained in this presentation prior to making any investment decision. Neither the Company nor its advisers including Olive Capital have verified the accuracy or completeness of the information, statements and opinions contained in this presentation. Accordingly, to the maximum extent permitted by law, the Company and Olive Capital make no representation and give no assurance, guarantee or warranty, express or implied, as to, and take no responsibility and assume no liability for, the authenticity, validity, accuracy, suitability or completeness of, or any errors in or omissions, from any information, statement or opinion contained in this presentation. The contents of this presentation are confidential. This presentation is being provided to you on the condition that you do not reproduce or communicate it or disclose it to, or discuss it with, any other person without the prior written permission of the Company. Olive Capital, its officers, employees, authorised representatives, consultants and its associates, officers and family members do currently and in the future may have interests in the securities of the Company. In addition, Olive Capital will earn commissions, fees and other benefits and advantages, whether pecuniary or not and whether direct or indirect as Lead Manager in connection with the Capital Raising(s) for the Company and advising and providing services to the Company. It is also noted that a Director of Olive Capital is also a Non-Executive Director of CannHealth. This presentation contains information, ideas and analysis which are proprietary to CannHealth. By agreeing to receive this information you also agree to respect the confidential nature of this entire presentation. Specifically you agree not to reproduce in any manner or distribute any part of the information contained herein without the prior written consent of the Company. When lifestyle matters… Private & Confidential 2

Table of Contents Table of Contents Executive Summary 4 1. Company Overview 5 2. Strategy 6 3. Why CBD? 8 4. Legislative Environment 9 5. The Opportunity 10 6. 7. Product Overview 12 8. Comparables 17 9. Capital Structure 18 10. Board & Management 19 11. Indicative Timeline 20 12. Why Invest? 21 Contacts 22 When lifestyle matters… Private & Confidential 3

1. Executive Summary Australian and US focused cannabis and hemp CBD food and beverage company. CannHealth Focused on manufacture and distribution of edible hemp and cannabis CBD products. Management with track record of establishing and growing consumer businesses. Intended listing on the ASX in Q3 2018. Fastest growing consumer goods segment in the US (~$23 Billion revenue by 2020). Growing Market Hemp based CBD products legal in 50 US states and across Australia (FSANZ). Used to treat inflammatory and neurodegenerative disorders and has many other health benefits.  First production of CannHealth water Complete Growth Strategy  First revenue from CannHealth water Complete  Seed Raising (A$1 million) to accelerate growth strategy Q1 2018  Apply for US & Australian cannabis licenses Q1 2018  Secure US and Australian manufacturing facility Q2 2018  Introduction of new cannabis products Q2 2018  Complete ASX listing Q3 2018 When lifestyle matters… Private & Confidential 4

2. Company Overview Key Statistics Corporate Incorporated Health CBD Inc. (US Entity) in Aug 2017. ASX Code (Reserved) ASX:CHG Structure CannHealth Group Pty Ltd to acquire Health CBD Inc. No. Shares on Issue 18,868,000 No. Options on Issue 8,439,561 Board of Raj Beri , Founder & MD Cash at bank (as at 1/1/18) ~A$200,000 Directors Sahil Beri , Executive Director Corporate Structure Andrew Sparke , Non-Executive Director Elissa Hansen, Company Secretary Board of Directors Management Nick Ventura , Business Development Manager CannHealth Group Pty Ltd (Australia) Kelly Smith , Sales Manager 100% Dr Rupesh Parikh , Medical Consultant Health CBD Inc. (USA) 100% 100% 100% 100% CannHealth CannHealth CannHealth CannHealth Confectionery Nutraceuticals Therapeutics Beverages When lifestyle matters… Private & Confidential 5

3. Strategy Growth Strategy 1. Develop Products; 2. Obtain licenses; 3. Fast-Track Revenue; and 4. Leverage Industry Growth. When lifestyle matters… Private & Confidential 6

3. Strategy (Cont) Commercial Leveraging Boards existing distribution relationships. Progress Appointed General Manager of Sales. Discussions with large US retailers including: - 7 Eleven (11,000 retail stores); - Kroger Group (2,800 stores in US); - Whole-Foods Market Group (470 stores in US); - Walgreens Pharmacies (8,200 pharmacies in US); and - CVS Pharmacies (9,600 stores in US & Mexico). Advanced discussions with Icelandic Glacial Water who distributes to over 20 countries and over 250 distributors in US. Heads of Agreement with National Importers of Canada targeting sales from July 2018. Amazon store online in January 2018. When lifestyle matters… Private & Confidential 7

4. Why CBD? Why CBD? Cannabidiol ( CBD ) is the second most common cannabinoid in the cannabis plant. Unlike tetrahydrocannabinol ( THC ), CBD is non psychoactive and does not provide euphoric effects. Research suggests CBD may be beneficial in treating other conditions such as: ⁻ Epilepsy; ⁻ Schizophrenia; ⁻ Pain; and ⁻ Cancer. Products are proven to be beneficial for inflammation and neurodegenerative disorders. When lifestyle matters… Private & Confidential 8

5. Legislative Environment Australian The Narcotic Drugs Act was amended in 2016 making Legislation Australia federally legal for medical cannabis. Allows use of medicinal grade products where THC is removed. Permits cultivation, production and manufacturing where licenses have been granted. On 12 Nov 2017, Food Standards Australia and New Zealand (FSANZ) permitted low THC hemp seed products to be produced and sold. US Legislation Hemp CBD is legal in all 50 US states. 44 states have adopted cannabis legislation. 8 states permit regulated adult usage. 29 states permit consumption for medical purposes. 16 states permit CBD and low THC medical consumption. US FDA approved. When lifestyle matters… Private & Confidential 9

6. The Opportunity Forecast US Cannabis Sales $23.1B $18.5B $12.7B $8.6B $7.2B $5.7B 2015 2016 2017 2018 2019 2020 Combined Sales (Medical & Recreational - Reported) Source: Cowen & Company Cannabis Compendium 2016 When lifestyle matters… Private & Confidential 10

6. The Opportunity (Cont) US Annual Sales Comparison Beer Estimated demand for recreational cannabis Wine Organic food Chocolate Craft beer (subset of beer inudstry) Doritos, Cheetos & Funyuns E-cigarettes Girl Scout Cookies $0.0B $20.0B $40.0B $60.0B $80.0B $100.0B Source: Marijuana Business Daily Factbook 2016 When lifestyle matters… Private & Confidential 11