PURE CANNABIS OIL LEGAL. This presentation does not constitute an - PowerPoint PPT Presentation

CORPORATE PRESENTATION Q2 2019 PURE CANNABIS OIL

LEGAL. This presentation does not constitute an offer of any securities for sale or a information contained in this Presentation is based on certain assumptions solicitation of an offer to purchase any securities. This Presentation, and the regarding, among other things, expected growth, results of operations, information contained herein, is not for release, distribution or publication into performance, industry trends and growth opportunities. While management or in the United States or any other jurisdiction where applicable laws prohibit considers these assumptions to be reasonable, based on information available, its release, distribution or publication. This Presentation is dated June 2019 they may prove to be incorrect. By their nature, forward-looking statements and is being issued by Pure Extract Technologies Inc. (the “Company”) for involve a number of risks, uncertainties and assumptions that could cause information purposes only. It is information in a summary form and does not actual results or events to differ materially from those expressed or implied by purport to be complete. All historical financial and operational performance the forward-looking statements. These risks, uncertainties and other factors descriptions are unaudited and refer to use of the Pure Pulls brand prior to include, but are not limited to risks associated with the Company’s ability its acquisition by the Company. to obtain offtake orders based on projected market rates of products, meet historic sales performances, and its ability to implement and fulfill its business No representation or warranty, express or implied, is made or given by or on strategies including obtaining a Standard Processing License and expansion behalf of the Company or any of its affiliates, directors, officers or employees plans for building extraction facilities; general economic conditions; adverse as to the accuracy, completeness or fairness of the information or opinions industry events; marketing costs; loss of markets; future legislative and contained in this presentation and no responsibility or liability is accepted by regulatory developments, including any limitations on branding of cannabis any person for such information or opinions. The Company does not undertake products; inability to access sufficient capital from internal and external or agree to update this presentation or to correct any inaccuracies in, or sources, and/or inability to access sufficient capital on favourable terms; omissions from, this Presentation that may become apparent. No person has income tax and regulatory matters; the ability of the Company to implement been authorized to give any information or make any representations other its business strategies including expansion plans; competition; and changes than those contained in this presentation and, if given and/or made, such in regulation. The foregoing factors are not intended to be exhaustive. These information or representations must not be relied upon as having been so risks, uncertainties and assumptions could adversely affect the outcome and authorized. financial effects of the plans and events described herein. Forward-looking statements contained in this Presentation regarding past trends or activities The contents of this Presentation are confidential and may not be copied, should not be taken as a representation that such trends or activities will distributed, published or reproduced in whole or in part, or disclosed or continue in the future. The Company does not undertake any obligation to distributed by recipients to any other person. No reliance may be placed for update or revise any forward-looking statements, whether as a result of new any purpose whatsoever on the information or opinions contained in this information, future events or otherwise. Presentation or on its completeness, accuracy or fairness. No person should treat the contents of this Presentation as advice relating to legal, taxation This presentation includes financial outlook about the Company’s prospective or investment matters, and must make their own assessments concerning capacity, which is subject to the same assumptions, risk factors, limitations, these and other consequences of investing in securities of the Company, and qualifications as set forth in the above paragraphs. Capacity estimates including the merits of investing and the risks. Prospective investors are contained in this presentation were made by management as of the date advised to consult their own personal legal, tax and accounting advisors and of this presentation and are provided for the purpose of describing the to conduct their own due diligence and agree to be bound by the limitations anticipated capacity of Company’s facilities following expansion, and are not a of this disclaimer. revenue projection or an estimate of actual profitability or any other measure of financial performance. Readers are cautioned that the financial outlook Certain statements in this Presentation may constitute forward-looking contained in this document should not be used for purposes other than for information within the meaning of applicable securities laws. Generally, which it is disclosed herein. forward-looking information can be identified by the use of forward-looking terminology such as “expects,” “believes,” “anticipates,” “budget,“ scheduled,” Information in this presentation regarding competing businesses was “estimates,” “forecasts,” “intends,” “plans,” and variations of such words obtained from public sources and has not been verified by the Company. There and phrases, or by statements that certain actions, events or results “may,” are risks in making an investment decision based on these competitors and “will,” “could,” “would,” or “might,” “be taken,” “occur,” or “be achieved.” potential investors should carefully review these competitors. Many of the Certain statements, beliefs and opinions in this Presentation (including those Company’s competitors and potential competitors are larger and have greater contained in graphs, tables and charts), which reflect the Company’s or, as name recognition, longer operating histories, larger marketing budgets and appropriate, the Company’s directors’ current expectations and projections significantly greater resources than the Company does. about future events, constitute forward-looking information. Forward-looking 2

LEADERS IN Previously selling approx. *$800,000 EXTRACTION. per month Phase I expansion capacity of $5,000,000 Pure Extracts facility in Pemberton, BC will be per month in revenue EU-GMP Certified and produce the first brands sold under the Cannabis Act including Canada’s Phase II expansion capacity of most recognized brand; Pure Pulls . $20,000,000 per month in revenue *unaudited historical sales of product under the Pure Pulls brand prior to the brand’s acquisition by Pure Extracts 3

MARKET OPPORTUNITY . No dominant brands in cannabis sector Cannabis extractors at infancy of development Shifting opportunity as Canada’s cannabis markets are currently dominated by dried flower products, with only an estimated 13% market share by extract products. In the US it is 50% of the market. Early stage penetration of extracts in the Canadian market is mostly due to the limited set products currently permitted for sale (oils, capsules and sprays). 4

BUSINESS MODEL. PROCESSING & Current facility of 5,000 sq. ft. with expansion to 8,000 sq. ft. underway EU-GMP facility will allow for international sales EXTRACTION Initial capacity to achieve $5MM/month in revenue in Phase I Full funded expansion capacity to achieve $20MM/month in Phase II CO2 and solvent free extraction Ability for R&D and product formulation 34 SKUs 5

THE FACILITY . PURE EXTRACTS IS CURRENTLY EXPANDING FACILITY TO GMP SPECIFICATIONS Current facility of 5,000 sq. ft. Phase I Expansion to 8,000 sq. ft. underway Building to EU-GMP certifications Dedicated lab and packaging spaces Provisional municipal license granted Modern CO2 extraction Designed with growth in mind. Easily scalable . 6

OUR EQUIPMENT . INDUSTRY LEADING VITALIS CO2 EXTRACTORS Q-Series & R-Series HIGH-FLOW PUMP Industry leading speed FULL SPECTRUM EXTRACTION Maximum yield on every run COLD SEPARATION High-quality, undamaged product CO2 RECOVERY Recirculate solvent without delay PROCESS MANAGEMENT Fine tune operations for success FULLY CERTIFIED Federal safety certifications 7

BUSINESS MODEL. BRANDING Pure Pulls will be the first wave of extract brands to sell under Cannabis Act Top selling brand in Canada previously selling approx. *$800k/month *unaudited historical sales of product under the Pure Pulls brand prior to the brand’s acquisition by Pure Extracts 8

PURE PULLS. FIRST BRAND TO BE SOLD UNDER THE CANADIAN CANNABIS ACT Best-selling brand across Canada. Established goodwill with a repeat customer base and brand loyalty . Revenue of approximately * $800k/month with 60% margin. Pure Pulls is one of the most widely recognized CO2 vape brands. Brand equity awareness developed through event sponsoring , and continual product education amongst our customer base. Industry leading distributor retention and renewals. Wide product line: 12 different strains, and 34 SKUs. 9 *unaudited historical sales of product under the Pure Pulls brand prior to the brand’s acquisition by Pure Extracts