Newstrike Brands — Investor Presentation (January 2019)
24 slides from Newstrike Brands's investor presentation, Jan 21, 2019
Slide 1: Investor Presentation January 2019
INVESTOR PRESENTATION JANUARY 2019 1
Slide 2: Forward-Looking Statement
2 FORWARD-LOOKING STATEMENT The material in this presentation has been prepared by Newstrike and is general background information about Newstrike’s activities current as at the date of this presentation. This information is given in summary form and does not purport to be complete. Information
Slide 3: Our Vision: Canada's Recreational Brand
3 OUR VISION: CANADA’S RECREATIO NA L BRAND • Up Cannabis will one day be as synonymous with Canadiana as Tim Hortons or Roots • From day one our focus has been centered around executing a business plan that positioned Up Cannabis for the adult-use market
Slide 4: Our Perspective: Keep It Real
4 OUR PERSPECTIVE: KEEP IT REAL IN A NOISY MARKET
Slide 5: Our Focused Strategy: Pillars of Growth
5 OUR FOCUSED STRATEGY: 4 PILLARS OF GROWTH I D B P N I R R N S A O O T N D V R D U A I I C T B N T I U G I O T O N I N O N Dedicated execution across these four pillars will drive accretive shareholder value
Slide 6: Reverse Engineering Production: Delivering Against Capacity
6 REVERSE ENGINEERING PRODUCTION DELIVERING AGAINST CAPACITY PRODUCTION DISTRIBUTION BRANDING Brantford Facility Retail partnerships DISTRIBUTION (2,000 kg) CURRENT Provincial agreements Niagara Phase 1* INNOVATION (20,000 kg) Niagara Phase 2* (Additional 20,000 kg) BRANDING I N N O VAT I O N UP Can
Slide 7: Advanced Production
7 ADVANCED PRODUCTION Tier 1 PRODUCTION ASSETS automotive Dutch Tray expertise System 455,000 square feet (2019) Lean Six Projected Automated Sigma and state of the art facility 2,400 machinery Kaizen 40,000+ at full capacity kg plants/day principles Projected 1,000,000 plants Talking ISO floor 9001
Slide 8: Not Your Grandpa's Cucumber Greenhouse
8 PRODUCTION NOT YOUR GRANDPA’S CUCUMBER GREENHOUSE 444 QUALITY CHECKS PER HARVEST
Slide 9: Strategic Product and Strain Portfolio
STRATEGIC PRODUCT AND STRAIN PORTFOLIO STRENGTH IN SIMPLICITY + COMMON SENSE Indica Hybrid Hybrid Hybrid Hybrid 1:2 CBD Indica Dominant Sativa Dominant Sativa Dominant 5 STRAINS FOR 5 CONSUMER NEEDS
Slide 10: Strategic Product and Strain Portfolio
10 STRATEGIC PRODUCT AND STRAIN PORTFOLIO STRENGTH IN SIMPLICITY + COMMON SENSE 2018 2019 2020 Edibles Single-serve Flower Multi-serve Oils Vaping Oils Beverages Flower FOCUSED ON THE H I G H E S T P O T E N T I A L F O R M AT S
Slide 11: Branding
BRANDING W di Up Cannabis lives to lighten up the world by virtue of more good times, less dullness, ‘We promise full enjoyment of life f in the moment, and everything our brand touches should ladder _ @) implicitly Canadian We'll express our Canadian roots by promoting diversity, ‘acceptance, and f
Slide 12: Branding: Share of Voice
12 BRANDING DOMINANT COMMANDING 400+ SHARE SHARE OF OF VOICE SEARCH AND MILLION SUMMER VOICE RELATIVE IMPRESSIONS 2018 TO ALL LPS TO DATE
Slide 13: A Powerful Partnership with Canada's Most Celebrated Band
13 A POWERFUL PARTNERSHIP BRANDING WITH CANADA’S MOST CELEBRATED BAND With their unique and deep understanding of Canada and Canadians, an un unrivalled national platform, members of The Tragically Hip are core strategic partners in the emergence of Up Cannabis as this country’s leading adult -use c
Slide 14: Distribution Agreements in Place with Provinces
14 DISTRIBUTION AGREEMENTS DISTRIBUTION IN PLACE WITH 7 PROVINCES Retailer Partnerships
Slide 15: Punching Above Our Weight
15 PUNCHING DISTRIBUTION ABOVE OUR WEIGHT Health Canada 113 At least 1 licenced provincial entities agreements At least 2 39 provincial agreements At least 7 29 provincial agreements 7 Current Market Cap1 Ent Value1 Capacity2 ($M) ($M) (kg) TILRAY Canopy Growth $19,083 $19,773 undisclosed Tilray $7,
Slide 16: Well-Funded to Execute
16 WELL-FUNDED TO EXECUTE I N N OVAT I O N D I ST R I B U T I O N $108M CASH-ON-HAND (Q3 2018) BRANDING PRODUCTION
Slide 17: Cash Is King
17 CASH IS KING CASH AS A PERCENTAGE OF MARKET CAPITALIZATION 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Cronos Newstrike Canopy Supreme Hexo Organigram Aphria Canntrust Tilray Aurora Brands Source: Mackie Research Capital, Sedar, Thomson Reuters as at Jan 16, 2019 *Assumes completion of investment from
Slide 18: Innovation
18 INNOVATION INNOVATION MOMENTS OF TRUTH 40+K KG TRANSACTIONS CAPACITY Vape: Beverage Green Tank VAPES, FLOWER, OILS, CAPSULES, EDIBLES, BEVERAGES Technologies Food: HOW Neal Brothers JV Wellness JV ACQUIRE PARTNER DEVELOP CPG CAPACITY IS TABLE STAKES. WHAT WILL SEPARATE THE WHEAT FROM THE CHAFF IS
Slide 19: International Expansion
19 INTERNATIONAL EXPANSION LOOKING ABROAD TO LATIN AMERICA AND EUROPE The development of a repeatable stamp in Canada will allow for a focused and calculated approach for expansion into international markets Market Population Canada 36,950,000 Latin America 652,000,000 Brazil 211,000,000 Colombia 49
Slide 20: A Year of Significant Progress
20 PRODUCTION 2018 A YEAR OF SIGNIFICANT PROGRESS BRANDING Inner Spirit CCO alliance DISTRIBUTION Bought Deal B HISTORIC Construction FIRST INNOVATION Bought GCP Niagara SHIPMENT Founding commences Marketing deal A Sep 18 Member Launch 3 Marketing Dundas Sq. Launch 1 Marketing Sales Licence Cultivat
Slide 21: Management Team
21 MANAGEMENT TEAM Jay Wilgar Sean Byrne Peter Hwang Mark Burton Kevin Epp Sylvie Levesque Chief Executive Officer Chief Financial President, Operations Chief Strategy Chief Operating Chief Marketing & Director Officer & Director Officer Officer Officer Seasoned Over 25 years in Experienced A career
Slide 22: This Is Doable
22 OUR PERSPECTIVE: BY KEEPING IT REAL THIS IS DOABLE PRODUCTION BRANDING DISTRIBUTION PLATFORM PRIORITIES
Slide 23: Equity Overview
23 CORPORATE INFO EQUITY OVERVIEW Basic Shares Outstanding 556.4 million As of September 30, 2018 Options and Warrants 150.6 million1 As of September 30, 2018 Fully Diluted Shares ~707.0 million1 As of September 30, 2018 52 Week Range $3.30 – $0.29 Cash $107.6 million As of September 30, 2018 Market
Slide 24: Thank You
24 THANK YOU
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