Newstrike Brands — Investor Presentation (July 2017)
27 slides from Newstrike Brands's investor presentation, July 2017
Slide 1: A Canadian Cannabis Company Focused on Growth
A CANADIAN CANNABIS COMPANY FOCUSED ON GROWTH Investor Presentation July 2017 TSXV: HIP July 2017
Slide 2: Forward Looking Statements
Forward Looking Statements 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 in th
Slide 3: An Enviable Position
An Enviable Position 1 of 50 federally licensed cannabis producers TSXV: HIP July 2017 3
Slide 4: Canada Is Ready
Canada Is Ready 7 out of 10 Canadians support Expected Market Demand (2024) 700,000 kg* “We will legalize, regulate, and restrict access to marijuana” - Liberals platform Current licensed or built capacity $7B 50,000 kg Addressable Domestic Market * Source: Eight Capital Opportunity for all Canadian
Slide 5: Executive Team
Executive Team STRATEGY OPERATIONS QUALITY FINANCE Jay Wilgar Kevin Epp Jennifer Maccarone Jim Macpherson CEO COO CQO CFO Seasoned entrepreneur with Over two decades of Regulatory and quality- Financial executive with over a proven track record of experience in operations’ assurance specialist with
Slide 6: Our Journey began in 2013…
Our Journey began in 2013… And we are here for the long-term Founded Q1 2013 Application to HC Q2 2013 PLI Q1 2016 LTB Q1 2014 Licence to Cultivate December 2016 Legislation April 2017 Listing May 2017 TSXV: HIP July 2017
Slide 7: Production Sites
Production Sites Creemore Brantford Grimsby TSXV: HIP July 2017 7
Slide 8: Brantford Facility
Brantford Facility • Cultivation license received December 2016 • 14,000 sq. ft. indoor facility currently in operation • Production capacity of approximately 3,000kg of dry cannabis or 1.2M clones per year • State of the art facility to simulate natural 2017 YTD conditions of sunlight, temperature,
Slide 9: Creemore Facility
Creemore Facility • PLI in place with construction of indoor facility planned for Q4 2017 • Cultivation license expected in Q1 2018 • Initial grow area of 10,000 sq. ft. • Initial capacity estimated at 3,000 kg/year • Planning for first sales in Q3 2018 Target • Plans for site expansion up to 40,000
Slide 10: Grimsby Facility
Grimsby Facility • Acquisition of existing greenhouse facility expected to close Q3 2017 • “Site B” application subject to expedited licensing process • Initial retrofit planned for Q1 2018 and expansion planned for Q2 2019 • Initial grow area of 180,000 sq. ft. with additional 180,000 sq. ft. expan
Slide 11: Growing Expertise
Growing Expertise • QA/QC and manufacturing team with cross functional experience including: • Narcotics production • Tier 1 automotive manufacturing and horticulture, with training in lean six sigma • Kaizen principles • GMP and GPP compliant TSXV: HIP July 2017 11
Slide 12: Growth Timeline
Funded Expansion Unfunded Expansion Growth Timeline Initial retrofit of potential Grimsby site Expansion of Creemore begins Acquisition of Grimsby site producing 6,000 Grimsby site kg/year Construction begins Grimsby begins at Creemore site Creemore begins producing 12,000 Potential expansion produc
Slide 13: Production Capacity (kgs)
Estimated Capacity by Site 45,000 40,000 Production Capacity (kgs) 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 2017 2018 2019 2020 2021 Brantford Creemore Grimbsy TSXV: HIP July 2017 13
Slide 14: Build Canada’s Next Great Consumer Brand
How We’re Going To Compete Build Canada’s Next Great Consumer Brand TSXV: HIP July 2017 14
Slide 15: What are you going to buy?
What are you going to buy? Key Elements of Establishing Brand Awareness Strategic Partnerships Digital Brand Wins Strategy Every Time Merchandise TSXV: HIP July 2017 15
Slide 16: Strategic Partnerships, Digital Strategy, Merchandise
Strategic Partnerships Digital Strategy /Analytics Merchandise TSXV: HIP July 2017 16
Slide 17: Brand development to stand out from the crowd
Brand development to stand out from the crowd TSXV: HIP July 2017 17
Slide 18: 55% Ownership by Board & Management
55% Ownership by Board & Management Strategic Insiders Strategic Insiders (Tragically Hip 6%) (Van Haeren Family Approx. $8 M excluding Nik Van Haeren) 12% Other cash on hand Shareholders 27% 364 M shares basic Jay Wilgar 7% 395 M fully diluted Management & Board Exclusive of Jay Wilgar 48% TSXV: HI
Slide 19: Board of Directors
Board of Directors Scott Peter Niklas Liam Jay Kelly Hwang Van Haeren Scott Wilgar Executive Director Director Director Director Chairman Founder and principal of Co-founder and President of Enerworks Founder of Sugarvision Seasoned entrepreneur Cabrana Capital President of donor Solar Heating and L
Slide 20: Advisory Board
Advisory Board Brian Mike Jeff Dr. Chris Bernie Jahns Egli Craib Andrews Breen Strategic Strategic Strategic Strategic Strategic Advisor Advisor Advisor Advisor Advisor Accomplished business Recognized commercial Seasoned Gastroenterologist at Has built a solid leader with robust and leader in Canad
Slide 21: Summary
Summary Today Tomorrow Currently Operational and Licensed to Cultivate Brantford + Creemore + Grimsby = 3,000 kg/year 39,000+ kg/year Sales License expected in Q3 2017 Strong, Experienced Management Team Additional Site Acquired with Separate PLI; Great Consumer Brand Construction Expected to Commen
Slide 22: The Future Is Looking UP!
The Future Is Looking UP! STRONG ACHIEVABLE MARKET PARTNERSHIPS PLAN AND POTENTIAL WITH BRAND WITH TEAM TO STRATEGY EXCELLENT DELIVER TO WIN ECONOMICS TSXV: HIP July 2017 22
Slide 23: Investor & Media Contacts
Investor & Media Contacts Jay Wilgar Scott Kelly Allan Rewak CEO Executive Chairman Director of Communications jwilgar@newstrike.ca skelly@newstrike.ca arewak@newstrike.ca TSXV: HIP July 2017 23
Slide 24: Appendices
Appendices TSXV: HIP July 2017 24
Slide 25: The path that got us here…to LP
The path that got us here…to LP Overnight success after 975 days… Facility Regulatory Capital • Identified location and entered into an initial lease • Application filed with Health Canada (“HC) under • Early costs funded by principals in July 2013 existing MMP regulations • Additional capital raise
Slide 26: The path that got us here…to LP
The path that got us here…to LP Overnight success after 975 days… Facility Regulatory Capital • Brantford starts producing • Legislation introduced with Expected Legalization • Public Filing Complete May 2017 • Production Pace in Brantford of 3,000kg/year for July 2018 • Capital Raise Undertaken to
Slide 27: TSXV: HIP July 2017
TSXV: HIP July 2017