TSXV:TPI November 2014 Medical Marijuana – A Growing Business
Forward Looking Statements Certain statements in this corporate presentation constitute forward-looking statements, within the meaning of applicable securities laws. All statements that are not historical facts, including without limitation, statements regarding future estimates, plans, programs, forecasts, projections, objectives, assumptions, expectations or beliefs of future performance, are “forward - looking statements”. We caution you that such “forward - looking statements” involve known and unknown risks and uncertainties that could cause actual and future events to differ materially from those anticipated in such statements. Forward-looking statements include, but are not limited to, statements with respect to commercial operations, including production and sales of medical marijuana, anticipated revenues, projected size of market, quantities of future medical marijuana production, completion of production facilities and other information that is based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management. T-Bird Pharma Inc. (the “ Company ”) does not intend, and does not assume any obligation, to update these forward-looking statements except as required by law. These forward-looking statements involve risks and uncertainties relating to, among other things, results of production and sale activities, the Company’s historical experience with medical marijuana operations, uninsured risks, regulatory changes, availability of production facilities, timeliness of government approvals and the granting of permits and licenses, changes in prices, actual operating and financial performance of facilities, equipment and processes relative to specifications and expectations. Actual results may differ materially from those expressed or implied by such forward-looking statements.
Investment Highlights T-Bird Pharma Inc. (T-Bird) is the first and only publicly listed federally approved licensed producer of medical marijuana from British Columbia (BC). 1 of only 13 Licensed Producers in Canada. A technology driven approach to growing Medical Marijuana and security that is both scalable and efficient. Premium pharmaceutical grade products will be grown in a sterile, dirt free clean room environment. Developing proprietary technology and software which will allow for break-even with 400 patients. Shipments to patients targeted to begin late 2014. Focus on premium BC developed strains with a portfolio of over 60 high-grade medicinal strains (including popular named varieties). BC ‘bud’ is a world renowned global brand. Most undervalued of the 4 publicly traded licensed producers. Experienced and aligned leadership.
Financial Summary Go public date September 09, 2014 StockListing TSX-V:TPI MarketCapitalization * $25.3 M Shares outstanding (b/fd) 46.1 M / 55.0 M Cash position ~$2.6 M Rob Gagnon, CEO: 19.3% Share ownership Insiders: 46.3% Employees / Consultants: 3.6% * As at October 31, 2014
New Industry – New Era Since April 01, 2014, only Federally Licensed Commercial Producers can supply Medical Marijuana (“MM”) to Patients in Canada (except those on old MMR program under injunction) Eventually, Health Canada intends all current patients migrate to the new commercial program The new licensing requirements emphasize need to ensure Security, Hygiene and Auditability – the bar is very high Thunderbird was one of the first Canadian companies (13) to obtain a Federal License (MM005-2014) to produce, dry and store Marijuana Health Canada website listing Thunderbird estimates the overall Canadian market is estimated at 450,000+ patients (and may be as high as http://www.hc-sc.gc.ca/dhp- mps/marihuana/info/list-eng.php 1,000,000) Note: “Marihuana” is the spelling the Federal Government uses
The Purchase Lifecycle 70% of Physicians report being Visit Research asked about Medical Marijuana Producer online Site Product is “familiar” to almost all public, brand is not relevant at moment Order Take “Pharmaceutical - Grade” is Product forms to Online Doctor finally an actual option, not just a benchmark of strength Send forms to Producers
Business Plan Service a Portion of the Leverage Become Current Knowledge to Supplier of Market & Long Immediate Near Term Premium Widen Our Focus on Term Medical Industry Becoming Marijuana Footprint Cash-flow Break-even
How big is this market? The market is new and market data is scarce, but estimates are: 450,000 patients in Canada will have an average daily dose of 2 grams 450,000 patients = 900,000 grams per day Retail price expected to be around $8 - $15 per gram That equates to an estimated Total Addressable Market in Canada of $3.285B/yr (Canada Only) California estimates that 3% of their population hold medical Marijuana Cards. Apply that rate to Canada, that would represent 1,000,000+ patients. Note: California actually has a lower approval rating (amongst general public) for Medical Marijuana than Canada.
Our Short Term Market Focus The estimated 30,000 people in Canada who currently hold a prescription for Medical Marijuana Patients must obtain a prescription/authorization from an approved healthcare practitioner which now includes Nurse Practitioners MM is an accepted medical product, understood by both patients and healthcare practitioners At At 40 400 0 Patien tients (ou ts (out of t of a mar a market et of of app pprox. 450 x. 450,000 ,000+) +) Thu hund nder erbir bird d co could co uld conc nceiva eivabl bly y be be Br Brea eak-Ev Even en
Our Long Term Market Objective High Net-Worth / High Disposable incomes Familiar with “older brands” and loyal. Aging group comfortable with “alternative” healthcare and treatments Our lon Our long g ter term v m visi ision on is is to be to be the pr the premium MM p emium MM prod oduc uct t on on the mar the market et
Marketing - Lite There are some peculiar aspects of this industry that both make marketing a challenge, but also provide advantages to licenced producers: Canadian law doesn’t permit advertising of narcotics – thus marketing in the typical sense is not possible However, the Federal Government serves as a marketing channel to Licensed Producers – Patients visit the Government’s website (sending us 3000+ unique visits per month) to find licensed producers Once buying from a producer, a patient must cancel/revoke their certificate with that producer in order to move to another – makes for “sticky customers” so long as you service their needs We only need to capture 400 patients (0.13% of the potential market) to potentially be break-even, and the upside of growing the market share is significant
Why Us / Why Now? Thunderbird Biomedical has 60 years combined IT , Grow, Mail-order and Pharmaceutical experience. The Scalability of Grow, Inventory and Patient Management is IT driven and we have that experience. For the first time in history, businesses can legally produce Medical Marijuana in large quantities and sell directly to patients (100% vertically integrated). We have both import/export and mail-order experience in controlled substances to take advantage of the opportunity.
Maximum Security Grow Facility We have: An approximately 3,200 square foot secure processing and grow facility in Victoria, British Columbia Our current license permits us to produce 243Kg of Marijuana 4 grow rooms ready now, 1 more in plan for 1 st Facility Targeted first commercial shipment from 1 st Facility is late 2014 A 500 sq. ft. room can produce approximately 72,000gr/yr for a gross value of $720,000
Barriers to Entry? Only licensed producers can produce product (other than those under injunction from old MMRA program) After April 01, 2014, new producers must obtain starting materials from existing licensed producers Security/Setup costs prevent individuals /small organizations from being successful All directors of licensees must pass 10 year Security Background Check (similar to DND or CISIS work) Health Canada licencing is getting tougher and the bar is being raised for new entrants
Comparables Company Shares outstanding Shipping Status Market cap * Tweed Inc. (TSX-V:TWD) 40.0M shipping $73.0M Bedrocan(TSX-V:BED) 67.5M shipping $47.9M Organigram (TSX-V:OGI) 51.6M shipping $59.8M Mettrum Health Corp. (TSX-V:MTI) 33.7M shipping $53.2M T-Bird PharmaInc. ( TSX-V: TPI) 46.1M late 2014 $27.6M * As at October 31, 2014
Growth Potential! We invested in becoming a Processing Facility , over simply a grow facility - there are others who just wish to be growers with less security requirements Software/Technology being developed internally has industry applicability R&D underway is leading to a highly scalable, replicable way to increase capacity “on demand”
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