September 2019 Disclaimer This presentation is very forward-looking - PowerPoint PPT Presentation

September 2019

Disclaimer This presentation is very forward-looking in its statements, and these statements may not be based on fact, including without limitation, statements regarding Xebra Brands Ltd’s (“XEBRA”) expectations in respect of its ability to successfully execute its business plan; its ability to raise additional capital and fund its ongoing operations; plans for future growth and the direction of the business; financial projections including expected revenues, gross profits, and EBITDA (which is a non-GAAP financial measure); plans to increase product volumes, the capacity of existing facilities, supplies from third party growers and contractors; expected growth of the cannabis industry generally; management’s expectations, beliefs and assumptions; events or developments that XEBRA expects to take place in the future; and general economic conditions. All statements, other than statements of historical facts, are forward-looking information and statements. The words “believe”, “expect”, “anticipate”, “contemplate”, “target”, “intends”, “continue”, “budget”, “estimate”, “may”, “will”, and similar expressions identify forward-looking information and statements. Such forward-looking information and statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by XEBRA as of the date of such information and statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking information and statements. Such factors include, but are not limited to, the inability of XEBRA to generate sufficient revenues or raise sufficient funds to carry out its business plan; changes in government legislation, taxation, controls, regulations and political or economic developments in various countries; risks associated with agriculture and cultivation activities generally, including inclement weather, access to supply of seeds, poor crop yields, and spoilage; compliance with import and export laws of various countries; significant fluctuations in cannabis prices and transportation costs; the risk of obtaining necessary licenses and permits; inability to identify, negotiate and complete a potential acquisition for any reason; the ability to retain key employees; dependence on third parties for services and supplies; non-performance by contractual counterparties; general economic conditions; and the continued growth in global demand for cannabis products and the continued increase in jurisdictions legalizing cannabis; and the timely receipt of regulatory approval for Medicannabis’ license applications. The foregoing list is not exhaustive and XEBRA undertakes no obligation to update any of the foregoing except as required by law. Many of these uncertainties and contingencies could affect XEBRA’s actual performance and cause its actual performance to differ materially from what has been expressed or implied in any forward-looking information and statements made by, or on behalf of, XEBRA. Readers are cautioned that forward-looking information and statements are not guarantees of future performance. There can be no assurance that such information and statements will prove to be accurate and actual results and future events could differ materially from those acknowledged in such information and statements. XEBRA disclaims any intention or obligation to update or revise any forward-looking information and statements whether as a result of new information, future events or otherwise, except to the extent required by applicable laws. 2 2

Overview We are an emerging cannabis company, with attractive high-margin products under development that leverage our cultivation, processing and marketing expertise. Our verticals include Beverages and Health & Wellness products. 3 3

The Legalization of Cannabis A global trend presenting significant opportunities US legalization is on a state by state basis * * Source: New Frontier - November 2017 4 4

The Cannabis Market in Europe Population Existing Cannabis Users Million Million Estimated Cannabis Market Potential  Medical € 35.7 billion (~CDN$54 billion)  Recreational € 20.5 billion (~CDN$31 billion)  Total € 56.2 billion (~CDN$85 billion) Significant Retail Price Premium to North American Market Source : European Cannabis Report - November 2017 5 5

The Cannabis Market in the USA Population Estimated Cannabis Market Potential by 2025  Medical 13 billion (~CDN$17 billion)  Recreational 11 billion (~CDN$14 billion)  Total 24 billion (~CDN$31 billion) Million States States Recreational Medical Use Use  States are leading the way to legalization  Expanding edibles & infused product sales  Increasing public support  Additional states anticipate legalizing * At November 2017 6 6

The Cannabis Market in Canada Recreational Use Population Legal as at Million (October) Estimated Cannabis Market Potential by 2024  Medical $3 billion  Recreational $5 billion Total $8 billion Within 3 years, cannabis sales will overtake wine and spirits sales. Medical Marijuana Use Growth $5bn $6bn $7bn SPIRITS CANNABIS WINE (2018) (2018) (2018) Compound Annual Rate Source: Eight Capital Figures in CDN$ 7 7

The Cannabis Market - Europe, USA and Canada Estimated combined cannabis market potential by 2025:  Medical $74 billion  Recreational $50 billion Figures in CDN$ 8 8

Our Low Cost Cultivation Strategy † “We aim to grow cannabis on an large scale, directly in the ground, in low-cost countries; in open-fields for CBD and in inexpensive hoop- house type greenhouses for THC.” We will supplement cultivation with supply from local third party growers Figures in CDN$. Projected financial information, actual results may differ. † XEBRA's acquisition of Medicannabis SAS in Colombia, remains subject to the approval of the shareholders of Organto Foods Inc. and the approval of the TSX Venture Exchange. 9 9

The Colombian Cannabis Advantage † Low Cost Growing Region  Production costs as low as C$0.05 per gram and up to C$0.20 per gram compared to approximately C$0.85 to C$3.00 for North American peers.  Low cost lands available to support growth. Skilled, Low-Cost Labour  Abundant agricultural workforce with expertise in flowers.  Second largest exporter of cut flowers in the world, and first in the LATAM region. Optimal Growing Conditions  Consistent 12-hour light cycles, consistent humidity, warm year-round temperatures, fertile soil and abundant natural water. Established Agricultural Industry  Supplies 70% of the cut flowers sold in Canada and the U.S. and 17% globally.  Historically recognized for superior cannabis cultivation. International Trade Advantages  Free trade agreements for export products with most Latin American countries, Europe, and North America. Stable Government  Government has been careful to draft a manageable medical cannabis policy. † XEBRA's acquisition of Medicannabis SAS in Colombia, remains subject to the approval of the shareholders of Organto Foods Inc. and the approval of the TSX Venture Exchange. 10 10

Our Colombian Subsidiary - Medicannabis SAS † Our initial cultivation operations will be located on ~1 hectare of land in Guasca, located approximately 1 hour from Bogota Airport – plenty of additional land available nearby for expansion. † XEBRA's acquisition of Medicannabis SAS in Colombia, remains subject to the approval of the shareholders of Organto Foods Inc. and the approval of the TSX Venture Exchange. 11 11

Positioned for LATAM Growth † Colombia: An ideal initial market to cultivate in; Positions XEBRA for Latin America expansion Mexico POPULATION 129 million † XEBRA's acquisition of Medicannabis SAS in Colombia, remains subject to the approval of the shareholders of Organto Foods Inc. and the approval of the TSX Venture Exchange. 12 12

Regulations in Mexico From prohibition to decriminalization and legalization Approvals of CBD Framework for medical and Law initiative for CBD products products expected cannabis regulation (legal reform) to resume 2015 2018 2019 November 4 October 30 1 st Half 2018 2019 2017 2 nd Half November 6 June 19 Mexican Supreme Guidelines for health Temporary Court allows the regulations implementing suspension and review of first constitutional 2017 legal reform CBD product guidelines claim in favor of legalization 13 13

What Do Regulations Allow in 2019 * October 30, 2018 REGULATIONS APPLICATIONS Regulations for the import, production, Applications must contain : and commercialization of CBD cannabis products for the following uses: Requirements: 1  Product description Pharmaceutical  Intended use  Certificate of THC 2 <= 1%  Intended label Medical and Scientific R&D complying with regulation 3 Food and Beverages with THC <= 1% * Guidelines for submittal of applications for CBD products temporarily suspended by Mexican government. The application process is expected to resume in the 2 nd half of 2019. 14 14

Our Cannabis Business Model (2019-2021) Production of Cultivate and Cannabis process Beverages and Cannabis in other Products Colombia in Colombia & Mexico LATAM Sales & for Export 15 15