VEXT SCIENCE PROFITABLE PRODUCER OF MEDICAL AND CONSUMER CANNABIS OTCQX: VEXTF | CSE: VEXT www.vextscience.com
DISCLAIMER FORWARD LOOKING STATEMENTS This presentation contains forward looking statement that relate to the Company’s current expec- approvals; (ii) that regulatory requirements will be maintained; (iii) general business and economic tations and views of future events and should be read together with more detailed information and conditions; (iv) the Company’s ability to successfully execute its plans and intentions; (v) the avail- fjnancial data and statements. The Presentation does not contain all the information you should con- ability of fjnancing on reasonable terms ; (vi) the Company’s ability to attract and retain skilled staff; sider before purchasing securities of the Company. In some cases, these forward- looking statement (vii) market competition; (viii) the products and technology offered by the Company’s competitors; can be identifjed by words or phrases such as “may”, “might”, “will”, “expect”, ”anticipate”, ”estimate”, and (ix) that our current good relationships with our suppliers , service providers and other third “intend”, “plan”, “indicate”, “seek”, “believe”, “predict” or “likely”. Or negative of these terms, or other parties will be maintained. Although we believe that the assumptions underlying these statements similar expressions intended to identify forward-looking statements. The Company has based these are reasonable, they may prove to be incorrect, and we cannot assure that the actual results will be forward-looking statements on its current expectations and projections about future events and fj- consistent with these forward-looking statements. Given these risks, uncertainties and assumptions, nancial trends that it believes might affect its fjnancial condition, results of operations, business strat- prospective purchasers of the Company’s securities should not place undue reliance on these for- egy and fjnancial needs. These forward-looking statements include, among other, things, statements ward-looking statements. Whether actual results, performance or achievements will conform to the relating to: the Company’s expectations regarding its revenue, expenses and operations; The Com- Company’s expectations and predictions is subject to several known and unknown risks, uncertain- pany’s expectations regarding timing of the completion of the construction and related construc- ties, assumptions and other factors. tion costs; the Company’s anticipated cash needs and its needs for additional fjnancing; the Com- The Company’s forward-looking statements are based on the reasonable beliefs, expectations and pany’s intention and ability to grow the business and its operations: including its ability to complete opinions of management. Although the Company has attempted to identify important factors that business development and integrate multi-state operations: the Company’s expectations regarding could cause actual results to differ materially form those contained in forward-looking statement, harvesting of products and precut sales prices; expectations with respect to future production costs there may be other factors that cause results not to be as anticipated, estimated or intended. There and capacity; expectations regarding our growth rates and growth plans and strategies; expectations is no assurance that such statements will prove to be accurate, as actual results and future events with respect to the approval of the Company’s cannabis license holders; expectations with respect could differ materially from those anticipated in such statements. Accordingly, readers should not to the future growth of its medical and recreational cannabis services with license holders, and any place undue reliance on forward-looking statements. We don not undertake to update or revise any commentary related to the legalization of adult-use, recreational cannabis and the timing related forward-looking statements, except as, and to the extent required by, applicable securities laws in to such legalization, the Company’s expected business objectives for the next twelve months. For- Canada. ward-looking statements are based on certain assumptions and analyses made by the Company The common shares have not been and will not be registered under the U.S. Securities Act of 1933, as considering the experience and perception of historical trends, current conditions and expected fu- amended (the “U.S. Securities Act”) or any other securities laws. As a result, the common stock may ture developments and other factors it believes are appropriate and are subject to risks and uncer- not be offered or sold within the United States or to, or for the account or benefjt of, “U.S. persons” tainties. In making the forward-looking statements included in this Presentation, the Company has (as defjned in Regulations under the U.S. Securities Act), except pursuant to an exemption from, or made various material assumption, including but not limited to (i) obtaining the necessary regulatory in a transaction not subject to, the registration requirements of the U.S> Securities Act and any other applicable securities laws. 2 | VEXT SCIENCE
VEXT SCIENCE Vext is executing a strategy to enter new markets rapidly with limited capital risk by leveraging operational expertise and brand strength Market leader in Arizona, Monetizing manufacturing Partnerships in 7 states third largest U.S. cannabis and distribution expertise with revenue streams an- market with targeted partnerships ticipated to begin in 2020 in new markets Building a pipeline of Based in Phoenix, AZ with Listed CSE (May 2019) future acquisitions with 130 employees VEXT; OTCQX: VEXTF lower execution risk 3 | VEXT SCIENCE
COMPLEX MARKET Makes Scalable Growth Challenging Complicated U.S. market with local legalization measures makes traditional operational scale diffjcult National legislation to address a myriad of legal and financial hurdles stalled in Washington D.C. • SAFE Banking ACT – passed by House but stuck in Senate • STATES Act – reintroduced but no votes have taken place Regulation creates market fragmentation and growth challenges • “Homestead Act” mentality – lots of players rushing into legal states, many struggle to be profjtable and grow • Prohibited from scaling distribution across state lines Vext’s footprint is expanding despite • States targeting preferential granting of licenses (Illinois) the market’s complexity. • Likely US will decriminalize versus legalize 4 | VEXT SCIENCE
CONTRARIAN With a focus on profjtable growth Vext’s business models avoids the primary issues impacting many OPPORTUNITY cannabis stocks Approximately 2/3rds of the U.S. population 1 The Marijuana Index™ live in states with some form of legalized One-year price chart of 31 U.S. public cannabis companies marijuana High growth, local-market focus, and 2 highly fragmented Majority of local dispensaries and growers 3 lack expertise to vertically integrate and create scale Most industry investment has been 4 for geographic expansion and top line growth “Green-fjeld” investments with insuffjcient cash 5 for operations has compressed valuations Source: North American Marijuana Index tracks the leading stocks operating in the legal cannabis industry in the United States and Canada. Companies must meet minimum trading requirements to be included on indices. To be included companies have a minimum market capitalization of $200 million and daily trading volume of $2 million. All dollars in $USD. Chart as of April 9, 2020 market closing prices. 5 | VEXT SCIENCE
Delivering Consistent VEXT Financial Performance Net income positive since 2016 1 SCIENCE Consistent EBITDA margin of 20%+ 2 Executing a growth model that scales 3 Track Record of Growth and Profjtability Continues with Outlook $40 $38 2020 EBT Contributions $35 16% $30 $25 $22 $20 $18 21% $14 $15 62.5% $10 $10 $8 $8 $6 $6 $4 $4 $4 $5 $3 $3 $1 $0 2016 A 2017 A 2018 A 2019 A 2020 E Management Agreements Revenue EBT EBITDA Investments & Service Agreements Joint Ventures 6 | VEXT SCIENCE
9 OPERATIONAL VENTURE PARTNERSHIPS 2020 Processing and/ Retail Products THC CBD Vext State Cultivation or Wholesale Vapen Brand Marijuana Cannabinoids Relationship Management Arizona HQ (2) X X X X X Agreements Kentucky X X Joint Venture Hawaii X Investment Nevada X X Service Agreement Oklahoma X X X Joint Venture California X X X Joint Venture Ohio X X X Investment Massachusetts X X X Joint Venture 7 | VEXT SCIENCE
ARIZONA ROOTS Arizona cannabis market is the 3rd largest in the U.S. • $750 million in sales annually • Allowable dispensary capped at 131 • Expected to go recreational in 2020 Established Phoenix presence • Herbal Wellness Center – dispensary • Organica – dispensary - Indoor cultivation - Outdoor growing capability - Retail store that can be moved to Phoenix Metro • The Wellness Spot - CBD • Created leading brand identifjed with quality and purity • Arizona market share leader with distribution in 80%+ of operating dispensaries • Vertically integrated model with expertise in extraction and manufacturing 8 | VEXT SCIENCE
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