Sproutly Canada, Inc. · OTC:SRUTF
Sproutly Canada — Investor Presentation (May 2019)
28 slides from Sproutly Canada's investor presentation, May 2019
Slide 1: Corporate Presentation May 2019
CORPORATE PRESENTATION May 2019
Slide 2: Notice to Reader
NOTICE TO READER Certain information set forth in this presentation contains “forward-looking information”, licenses for its businesses; the Company's failure to retain key personnel and hire additional including “future oriented financial information” and “financial outlook”, under applicable perso
Slide 3: Our Company
OUR COMPANY Sproutly is developing and bringing to market cannabis consumer products with a focus on beverages. We are combining advanced cannabis cultivation and transformational technologies to redefine the cannabis industry. 2
Slide 4: Investment Highlights
INVESTMENT HIGHLIGHTS Shifting Consumer Preferences § Smoking is becoming a taboo and declining sharply while cannabis oils gain popularity in Canada Presents Potential $4.4 billion § Medical cannabis oil sales have grown at a compounded quarterly growth rate of 33.2% while flower sales have only gr
Slide 5: Corporate Milestones
CORPORATE MILESTONES Completed THR CSE Listing Entered into Received Acquired Infusion Completed Submitted License Facility Completed Exclusive Cultivation Biosciences $20.7m Bought Amendment to Technology license License by Health Canada Deal Financing Health Canada to with MTI Canada Produce Oils
Slide 6: Consumer Preferences Favor Non-Inhalation Delivery
CONSUMER PREFERENCES FAVOR NON-INHALATION DELIVERY Smoking Trends in Canada Quarterly Cannabis Sales in Canada 25.0% 16 16,000 Bug (kg) 14,000 20.0% 15 12,000 15.0% 10,000 14 8,000 10.0% 6,000 13 5.0% 4,000 2,000 % of Smokers Avg. # of c igarettes smokes per day 0.0% 12 0 2007 2008 2009 2010 2011 20
Slide 7: Cannabis Beverage Market Estimate
CANNABIS BEVERAGE MARKET ESTIMATE Potential Canadian Cannabis Beverage Market: $1.4 – $3.0 bn “With regard to the potential size of the cannabis market in Canada, if you take an average, then it suggests that this market may be somewhere between $7 billion and $10 billion in market value, with bever
Slide 8: Hemp & Cannabis Beverages: Industry Challenges
HEMP & CANNABIS BEVERAGES: INDUSTRY CHALLENGES “We think onset time is going to “The problem of onset time is one “There’s a strong sentiment that be one of the critical factors in of the biggest challenges facing beverages are probably going to the next stage of cannabis- makers of cannabis beverag
Slide 9: Infusion's Scientific Discovery
INFUSION’S SCIENTIFIC DISCOVERY CURRENT THINKING NEW WAY OF THINKING GROUNDBREAKING DISCOVERY § Mother nature enables all natural § Discovered that the cannabis plant § Cannabinoids and terpenes are molecules, including lipids/oils, to naturally produces water-soluble insoluble in water but soluble
Slide 10: Proprietary APP Technology
PROPRIETARY APP TECHNOLOGY A patent pending process that uses proprietary reagents formulated for different plant materials – all reagents are not only classified GRAS but also are common ingredients in our diet • No artificial chemicals (organic solvents, liquefied gas) • No harsh physical treatmen
Slide 11: Naturally Water Soluble vs. What's in the Market Today
NATURALLY WATER SOLUBLE VS. WHAT’S IN THE MARKET TODAY APP gently recovers naturally water soluble cannabis extract directly without the need for formulation techniques such as emulsification or encapsulation 10
Slide 12: The Big Opportunity: Infuz2O - A Disruptive Technology
T H E B I G O P P O R T U N I T Y : I N F U Z 2O – A DISRUPTIVE TECHNOLOGY Paradigm shift in how cannabis is delivered and consumed, overcoming the industry's current and out dated methods Predictable – less than 5 mins to feel effects, less than 90 mins to wear off Experience – effects comparable t
Slide 13: Cannabis Consumption Landscape
CANNABIS CONSUMPTION LANDSCAPE (1) Infuz2O has effects that mimic those of inhaled cannabis (1) Based on 100+ user feedback 12
Slide 14: Sproutly Moosehead Joint Venture
SPROUTLY MOOSEHEAD JOINT VENTURE • Licensed producer with state-of-the-art indoor • Canada’s oldest and largest independent beer cannabis production facility in Greater Toronto Area company • Proprietary recovery process APP Technology • 4th largest brewery in Canada recovers truly naturally water s
Slide 15: Moosehead Joint Venture Highlights
MOOSEHEAD JOINT VENTURE HIGHLIGHTS Partnership with the Oldest and Largest Independent Brewery in Canada • Over 152 years of brewing experience through six generations of family ownership • More than 140 million cans/bottles of beer sold annually throughout Canada, the United States and in 15 other
Slide 16: Summary Joint Venture Terms
SUMMARY JOINT VENTURE TERMS § 50 / 50 ownership of joint venture with OCC Holdings Ltd., an affiliate of Ownership Structure Moosehead Breweries Limited (“Moosehead”) § 6 Board members Governance § 3 to be appointed each of Sproutly and Moosehead § Sproutly to appoint the Chair of the Board Leadersh
Slide 17: Select Cannabis Beverages in the U.S. Market
SELECT CANNABIS BEVERAGES IN THE U.S. MARKET Ri pple C an n abi s K e e f Bran ds H a ppy Apple L a gun i t a s H i - F i P ro duc t N a m e Di x i e Eli x i rs (St i llw a t e r In f uz 2 0 Q ue n c he r (Spa rk li n g W a t e r) C i de r H o ps Bran ds) O n se t T i m e 30-60 minutes 20 minutes 30
Slide 18: Infuz2O vs. Status Quo
I N F U Z 2O v s . S T A T U S Q U O Sproutly Competitors Competitor #2 Competitor #3 Competitor #1 Infuz2O’s true water-solubility allows the solution to fully-dissolve in water, creating a clear finished product. ‘Water- compatible’ cannabis beverages currently in the market show obvious signs of
Slide 19: Infusion Product Formulation Examples
INFUSION PRODUCT FORMULATION EXAMPLES Beverage Edibles 18
Slide 20: Bio-Natural Oil: Plant-to-Product Technology
BIO-NATURAL OIL: PLANT-TO-PRODUCT TECHNOLOGY Characteristics Pre-Customizable Post Infuz 2 O § Onset as early as 25 minutes, offset of 4+ hours like all other oils Carrier Oil Product § Retains strain specific nuances and whole plant experience § Recovered directly in pre-customized carrier oil and
Slide 21: Licensed Production Facility
LICENSED 16,600 sq. ft. PRODUCTION Production Facility FACILITY STRATEGY • Produce premium quality cannabis for the medical market • Located within a 14 minute drive from downtown Toronto (approx. 8 km) to allow for same-day delivery 1,400 kg / year REQUIREMENTS Potential Production Capacity(1) • Cl
Slide 22: Illustrative Production Model - THR
ILLUSTRATIVE PRODUCTION MODEL - THR Production Infuz2O Capacity: Est. 33 million(1) 10 1,400 kg mg Doses (1) Flower 700 kg Trim BIO-NATURAL OIL Est. 67 million(1) OPEN Flower: 10 mg Doses 2,500 kg Proprietary APP MARKET Technology CANNABIS PURCHASED 2 Trim: TOTAL 5,400 kg Est. 100 million(1) 10 mg D
Slide 23: Illustrative Value-Creation: Flower vs. APP
ILLUSTRATIVE VALUE-CREATION: FLOWER VS. APP Flower vs APP Finished Product Revenue to Wholesaler APP Finished Product Flower Low High Biomass 1g 1g 1g Bioactive Content (THC) 20% 20% 20% Total THC (mg) 200 mg 200 mg 200 mg Total Revovery Rate n/a 90% 90% Total THC Recovered n/a 180 mg 180 mg Price p
Slide 24: International Expansion
INTERNATIONAL EXPANSION Total Accessible Population : 812,500,000 Canada Europe & UK 36,000,000 741,000,000 Israel 8,600,000 Jamaica 2,900,000 Exclusive APP Technology rights in Canada, Australia, Israel, Jamaica, Europe, and UK, providing significant international expansion opportunity. Joint Ventu
Slide 25: Management Team
MANAGEMENT TEAM KEITH DOLO CRAIG LOVEROCK DR. ARUP SEN CEO, Director Chief Financial Officer Chief Science Officer, Director Recently served for over 13 years with Mr. Loverock is a Chartered Professional Dr. Sen has 35+ years of experience in research Robert Half, an S&P 500, NYSE listed Accountant
Slide 26: Board of Directors & Advisory Board
BOARD OF DIRECTORS & ADVISORY BOARD MICHAEL BELLAS GREGG ORR DR. ARUP SEN Director Director Chief Science Officer, Director Michael Bellas is founder, Chairman and CEO of Mr. Orr is a Chartered Professional Beverage Marketing Corp, the leading Accountant with extensive experience KEITH DOLO consulti
Slide 27: Capitalization & Trading Performance
CAPITALIZATION & TRADING PERFORMANCE Cap Table 1 Balance Sheet Highlights (millions) $CAD (millions) Sproutly % FD Cash 4 11.5 Management and Insiders 69.3 25.2% Investors 95.6 34.7% Loans and Borrowings 5 3.4 Convertible Debt 5 3.1 Shares Issued – Equity Special Warrants 15.4 5.6% Convertible Deben
Slide 28: Contact Us
CONTACT US Sproutly Canada, Inc. #3318 – 1055 Dunsmuir Street Vancouver, BC V7X 1L2 Phone: 778.945.6868 Email: investors@sproutly.ca