An Emerging Leader in the Health & Wellness and Functional Food … · 2019. 1. 22. · •...

An Emerging Leader in the Health & Wellness and

Functional Food & Beverage Markets

Phivida | November 2018 2

LOOKING FORWARDThis corporate update contains “forward-looking statements”, “forward-looking information” and “future-oriented financial information” (collectively herein referred to as

“forward looking statements” within the meaning of applicable securities laws. Phivida Holdings Inc. (the “Company”) is providing cautionary statements identifying

important factors that could cause the Company’s actual results to differ materially and significantly from those projected in these forward-looking statements, including

information regarding the Company’s revenue; profit margins; and proposed share structure. The words “anticipate”, “expect”, “believe”, “attempt”, "may", "could", "should",

“ensure”, "estimate", "plan", "project", “strategy”, "intend", "outlook", “strive”, "forecast", "likely", "probably" or other similar words are used to identify forward-looking

information. Such statements represent the Company’s internal projections, estimates, expectations, beliefs, plans, objectives, assumptions, intentions or statements

about future events or performance. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause actual

results or events to differ materially from those anticipated in such forward-looking statements. Although the Company believes that the expectations reflected in the

forward-looking statements are reasonable, no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not

be unduly relied upon. Many factors could cause the Company’s actual results to differ materially from those expressed or implied in any forward-looking statements

made by, or on behalf of, the Company. Such forward-looking information may relate to, without limitation: the future activities and performance of the Company; the

value of the Company’s common shares; the technological development of the Company; estimates relating to the amount of funds available to the Company; volatile

securities markets; and the manner in which such funds will be used. Additional factors that could cause actual results to differ from the Company’s expectations include,

but are not limited to: the Company’s ability to launch its products in an efficient manner; competition; legal requirements and limitations and the possibility that the law

relating to the Company’s business could change in a manner that materially adversely affects the Company’s business; the Company’s ability to enter into advantageous

agreements and business relationships; the Company’s ability to attract customers for its products; general economic conditions and those economic conditions specific

to the hemp and cannabinoid industry; the Company’s ability to innovate and improve monetization; the growth of the market for hemp and cannabinoid products; the

Company’s ability to reach a broad consumer base; the Company’s ability to expand to different cities nationally and internationally; geopolitical events such as war,

threat of war or terrorist activities; as well as any specific risk factors discussed in this presentation.

This does not constitute an offer to sell or the solicitation of an offer to buy any securities of the Company in any jurisdiction in which such offer or solicitation would be

unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

These statements have not been evaluated by the FDA and are not intended to diagnose, treat or cure any disease. Always check with your physician before starting

a new dietary supplement or nutrition program. *Cannabidiol (CBD) is a natural constituent of hemp oil.


Phivida strives to provide the world with a natural path

to health and wellness through a variety of products

infused with organic active hemp extracts.

As part of our vision, Phivida is looking to become a

leader in whole-plant solutions by providing holistic

remedies for a more natural alternative to

pharmaceuticals, and guiding people towards a vibrant,

healthy life.”


A premium functional food

and beverage company

Healthy Lifestyle• Focus on holistic health and wellness

• Part of balanced lifestyle

Natural Product• Focused on whole plant nutrition and natural ingredients

• Organic, natural, plant-based foods and beverages

• Natural alternatives to pharmaceuticals

Never Takes Shortcuts• Top professional partners, quality ingredients and

product sources

• Committed to making a positive difference

WHO IS PHIVIDA?


1. Well-positioned to build share in large and fast-growing

markets

2. Two distinct brand offerings to address health supplement

and functional food and beverage markets

3. Launching OKI and Vida+ product lines in USA, supported

by extensive consumer research and testing

4. Poised to enter Canadian cannabis beverage market

with proven brands

5. Entrepreneurial management team with a track record

of success in product innovation and marketing

INVESTMENT HIGHLIGHTS


WHAT ISACTIVE HEMP?

• Active hemp is better known as

Cannabidiol or CBD

• CBD is one of nearly one

hundred cannabinoids found in

hemp and is non-psychoactive

• CBD interacts with each of our bodies

differently and can potentially provide

relief for countless ailments and

wellness challenges

• CBD helps our bodies regulate

important functions

• CBD acts as a mediator

• CBD is non-addictive and non-toxic

• CBD is an adaptogen

WHY DOWE NEED IT?



OUR STANDARDS

• Formulation, manufacturing, laboratory, and agricultural

partners follow the strictest QA and QC protocols

• Organically-grown hemp is cold pressed to preserve the

full spectrum of hemp phytonutrients, terpenes, and

cannabinoids

• Incorporates both cannabis-specific testing and highly

specialized microscopal phytoforensic investigation

• Verify the integrity, potency, and purity of products at the

molecular level

• Strives to set a higher bar for the industry

• Every ingredient and formulation adheres to strict

pharmaceutical quality standards

POTENCY

Pharmaceutical-quality QA

to verify potency &

consistency

SAFETY

450+ contaminant testing

via microscopal

phytoforensics

PURITY

Full spectrum of

phytonutrients preserved for

superior product

EFFICACY

Full botanical

authentication for

every compound


QUALITY ASSURANCE,

FROM SEED TO SHELF

L E G A L C O M P L I A N C E T E S T I N G T R A N S P A R E N C Y

P R O D U C T I N T E G R I T Y S A F E T Y

P E E R R E V I E WS A F E T Y

F A R M P R O C E S S O R


THE CBD MARKET IS ESTIMATED TO EXPLODE

$360Min 2017

$2.1Bin 2020• Global Health and Wellness Market

reached $1 trillion in 20171

• Hemp-based CBD-infused products

expected to achieve 700% growth to $450

million by 20202

• CBD and cannabinoids as functional

ingredients in body-care and supplement

categories reflect year-over-year growth of

300%3

1 Euromonitor Report2 Hemp Industry Association3 Forbes4 Brightfield Group Research

CBD (cannabidiol)

Market Growth4


CONSUMER TARGETING

Core Segments CBD Users at a Glance1

› 59% are female

› The majority of users purchase

from dispensaries

› More than 50% use CBD

products daily, 80% use at least

once a week

› Consumers use CBD products to

provide the best medical relief

S1 Active Professionals S2 Professional Athletes

S3 Healthcare Practitioners S4 Patients / MMJ Converts

1 CBD Market Study Report 2017 - HelloMD


CONSUMER RESEARCH KEY RESULTS

› Those aware of CBD seem to be more steeped in healthy

lifestyles

› When it comes to favorite drinks, those aware of CBD are more

likely to list their functional beverages as their favorites

› Those who are living in West Coast states are more likely to be

aware of CBD

› More adventurous and curious in their flavor choices than

unaware

› Deal-breakers artificial colors or ingredients, HFCS, added

sugars, sugar substitutes, and more and more— caffeine

› Want simpler and more minimalist, muted, packaging

› Had personal experience with the substance from years ago


OF CURRENT CBD CONSUMERS, ANXIETY

IS THE TOP MEDICALCONDITION

TO TREAT

64%

55%

49%

39%

36%35%

31% 31%

17%

71%

Anxiety

Insomnia

Joint pain &

inflammation

Depression

Muscle

tension

or strainSevere or

chronic pain Migraines

Arthritis Nausea

PTSD

Top Ten Medical Conditions1

1CBD Market Study Report 2017 - HelloMD


TARGETED DISTRIBUTION

Focused Distribution Channels

1. eCommerce

2. Natural Specialty Retailers

3. Convenience Retailers

4. On Premise Retailers (hotels, airport, gyms, cafes)

5. Health Clinics

39 Million

Washington

California

Oregon

Colorado

5 Million

7 Million

4 Million

Target CitiesSeatt le

San Francisco

Por t land

San Diego

Los Angeles

Phivida / WeedMD

(Can Bev Inc.)


ACOSTA DISTRIBUTION

Exclusive agreement with Natural Specialty Sales (“NSS”), an Acosta, Inc. company

• Acosta is North America’s largest food and beverage broker

› NSS has a wide retail channel across America and is well known in the

natural/specialty sector

› The national network includes major retailers, such as Sprouts Farmers

Market, Whole Foods Market and National Coop Grocers

• Provides Phivida access to over 2,400 retail locations

• NSS will represent Phivida’s OKI brand of premium products as its exclusive

distributor of the line of Full Spectrum Active Hemp Extract-infused beverage and

supplements


INDUSTRY OVERVIEW

Natural

Product Channel

Specialty

Product ChannelSupermarket

Channel

Other

Channels

1600+ stores

25+ HQ

700 independent stores

2 national distributors

Natural product STANDARDS

600+ stores


6+ regional distributors

Multiple wholesalers

25,000+ stores

150+ HQ


6+ regional distributors

Multiple wholesalers

Direct warehouse

Distributors

Direct Warehouse

Specific SKU’s and categories

by customer

http://www.tifoods.com/

https://www.fairwaymarket.com/

http://www.google.com/url?url=http://logo-kid.com/central-market-logo-png.htm&rct=j&frm=1&q=&esrc=s&sa=U&ei=XCZKVeuKNISXgwTKoYGYCw&ved=0CBYQ9QEwAA&usg=AFQjCNF_B_3LD6GBRdV5ZqGVlzL7MGCg7Q

http://www.naturalgrocers.com/

http://www.jimbos.com/index.php

https://www.ncg.coop/

http://www.ampm.com/ampm/ampmhomepage.do?categoryId=6745&contentId=7024538


CANADIAN MARKETS

Cannabis Beverages Inc. Joint Venture

• Partnering with WeedMD Inc.

(TSX-V: WMD)

• The new joint venture company, named Cannabis

Beverages Inc. (“CanBev”)

• Focused on manufacturing, marketing and

distribution of CBD-infused beverages for legal

medical and adult-use cannabis markets in

Canada

• WeedMD will be the exclusive cannabis supplier

and distributor for CanBev

• Phivida will provide product innovation, research

and development, formulation and branding


SHIFTING U.S. REGULATIONS

US Farm Bill

• Legalization of hemp has cross-party support and appears likely to pass

• Awaiting approval (as of September 2018), the 2018 omnibus farm bill – incl. the Hemp Farming Act of 2018 – will allow cannabidiol (CBD) to be legally grown in the U.S.

• Expected change will support Phivida’s expansion plans to operate and distribute its products in all 50 states

“The Act further provides for easier funding for industrial hemp research, makes crop insurance

available to the industry, and states that the Act, in and of itself, may not be construed to authorize the federal

government to interfere with the interstate commerce of industrial hemp.” Benjamin Pirie, Associate at Lane

Powell Law Firm

Momentum

› Constellation Brands Canopy: 1st major

investment from beverage sector

› WADA Report: CBD Removed from

Global Prohibited List

› WHO Report: CBD is safe, non-toxic and

medicinal

› Cole Memo (Rescinded): CBD-hemp

unaffected


PHIVIDA

OUR BRANDS

Rise & Restore

Help you find your

balance every day

Health &

Wellness in

harmony

Professional

clinical grade

strength


• Professional Grade, Organic Hemp Oil Extracts

• All products are assured full-spectrum, pharmaceutical

grade and cGMP certified and meet rigorous clinical

standards through a quality-controlled CO2 extraction

process and third-party lab testing

• Under the VIDA+ brand, a range of CBD-infused

tinctures, capsules and other supplement products are

distributed across the United States through alternative

health care clinics and direct to consumers via Vida+

website

Vida+ is the company’s premium clinical grade strength, full spectrum hemp oil

extracts and capsules designed to help people feel their best. The products are

sourced from the best organic hemp and natural ingredients on the market and

are third-party lab tested for quality, purity and potency at world-class

facilities.

VIDA+ hempvidaplus.com


OKIOki lifestyle brand is the company’s newly launched line of functional beverages and

supplements infused with Active Hemp Extract

• Products blend the best of nature with CBD-infused beverages and supplements.

• All products contain non GMO, natural and organic ingredients

• Plant based and Vegan friendly and packaged in sleek 100% recyclable glass

containers

• Oki beverages - 16oz containers

› Infused with 10 mg of active hemp extract

per bottle

› 2 different formulations: iced teas and

flavor-infused water

› 4 different flavors

• Oki health supplements

› Available in tinctures or capsules

› Doses from 600-1800 total mg

feeloki.com


OKI CONSUMER MARKETING


Phivida is focused on growing awareness throughinforming and educating consumers

BRAND AWARENESS

1

3 4

2

• On-going local content creation cater to each platform

• Encouraging user generated content via fan engagement

• feeloki social media pages to build awareness, interest and

engagement

• Initial focus across Facebook, Instagram and YouTube

Influencer Partnerships

• Store ambassadors to drive trails

• On going 12 month program

• Highly selective & qualitative focus

• Educate the public on “Active Hemp”

• Generate positive stories for category

• Build positive WOM, trust & credibility

Malia Manuel is the face of the Oki product line

• Youngest female to win the US Open of Surfing (2008)

• She has 200k Instagram followers, 110k on Facebook

• Embodies the idea of living natural, healthy, plant based

lifestyle

• Part of the Oki launch campaign

Social Media

Sampling Public Relations


FEELOKI.COM


OUTDOOR


CONTENT


Executed

Product Pipeline

Tinctures

Flavor Infused Water

Ice Tea

Prospective

Product Lines

Expanded Flavor Offering

(Beverage & Tinctures)

Functional Beverage

(Protein Drink, Teas,

Kombucha, etc.)

Food Products Lifestyle Products

PRODUCT OPPORTUNITIES


MANAGEMENT TEAM

Former President of Red Bull Canada and global Chief Marketing Officer Merrell Outdoors

Former Chief Executive Officer of Beneath Apparel, and senior executive Adidas, Blue Goose (organic foods)

and Salomon Expertise in driving new marketshare and revenue growth via multi-channel DTC and

distribution management strategies

James Bailey | President & CEO

Bachelor of Commerce Marketing Management University of Otago

Specializing in CPG brand equity development, experiential and aspiration/endorsement marketing

Former Chief Marketing Officer Samsung NZ, Former CMO Microsoft NZ, Former Director of Marketing

Red Bull Canada

Michael Cornwell | Chief Marketing Officer

Doug Campbell | Chief Commercial Officer

Former Director of National Accounts Stoli Group

Former Director of Sales Red Bull North America

Accomplished Senior Sales and Marketing Management Professional with over 20 years

Key Account Retention and Major Brand Management expertise


Greg McCauley | Senior Vice President, Distribution

Over 30 years’ experience in the consumer products industry with major brands such as Jägermeister, Muscle Milk and Red Bull

Vice President and General Manager of Mast Jägermeister, responsible for sales and distribution in 18 U.S. states and Canada

Several years at Red Bull North America where he was responsible for a distributor network comprising of 375 sales territories and

500 employees with sales in excess of US$150 million

Experienced financial controller, public companies audits and financial statements to GAAP and IFRS

+10 with companies in various industries ranging from private companies to junior start up companies Chartered Accountant

designation through the Institute of Chartered Accountant British Columbia Bachelor of Business Administration, Diploma in

Accounting – Kwantlen University

Founder and President of GVK Group Chartered Accountant

George Kovalyov, CA | Vice President, Finance

MANAGEMENT TEAM

Carmelo Marrelli, CPA, CA, CGA | Chief Financial Officer

+25 years of experience in executive financial management for publicly traded companies

Principal of Marrelli Support Services Inc., a firm that delivers accounting and regulatory compliance services to listed

companies on the Toronto Stock Exchange (TSX), TSX Venture Exchange (TSX-V) and the Canadian Securities

Exchange (CSE), Chartered Professional Accountant (CPA, CA, CGA) and a member of the Institute of Chartered

Secretaries


CAPITAL STRUCTURE

As at November 15, 2018

Issued

Common shares 61,729,963

Warrants 4,133,713

Share Options 8,653,750

Fully Diluted 74,517,426

Current cash position $ 13,000,000

Fully diluted cash position $ 25,894,000


1. Well-positioned to build share in large and fast-growing

markets

2. Two distinct brand offerings to address health supplement

and functional food and beverage markets

3. Launching OKI and Vida+ product lines in USA, supported

by extensive consumer research and testing

4. Poised to enter Canadian cannabis beverage market

with proven brands

5. Entrepreneurial management team with a track record

of success in product innovation and marketing

INVESTMENT HIGHLIGHTS


Contact Info 422 Richards Street, Suite 170

Vancouver, BC, V6B 2Z4

[email protected]

+1 (844) 744-6646 ext. 2

@Phivida

An Emerging Leader in the Health & Wellness and Functional Food … · 2019. 1. 22. · •...

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