EXECUTIVE SUMMARY 2018 - MYM · the west coast franchise expansion of Dominos Pizza, where he...

E X E C U T I V E S U M M A RY 2 0 1 8

The Opportunity

MYM NUTRACEUTICALS EXECUTIVE SUMMARY 2018

CANADIAN GROWING FACILITIES

MYM has two production projects both in Quebec - Laval and Weedon.

Laval - Facility is currently under construction and is expected to be licensed in Q2 2018. The facility is currently 10,000 sf and will be expanded to 37,000 sf. This license will enable MYM to manufacture its branded THC and CBD products across Canada. The Laval project is projected to produce sales of $25 million by 2019 with profit estimates of $15 million.

Weedon - 1.5 million sf greenhouse project has been approved by the City of Weedon and Health Canada. A license application has been submitted. The City of Weedon has purchased 329 acres of land for MYM to build on. This project will include a cannabis museum and a cannabis university for industry training. Upon completion, the Weedon project is projected to produce sales of $1.1 billion with profit estimates of $550 million.

AUSTRALIAN GROWING FACILITIES

The Northern Rivers Project – a 1.2 million sf greenhouse project which, upon completion, will be the largest cannabis greenhouse in Australia. The first crop is expected to be planted in the fourth quarter of 2018. At full scale, the new facility will have the capacity to support annual production that equates to an annual revenue potential of between C$800 million and C$1.1 billion. MYM owns 35%.

Production Facilities


The world is changing. People are looking for alternative treatments to their physical ailments and while regulation has been slow to change, 2018 is the year recreational use will become a reality. With change, new opportunities arise for those that are ready and willing to serve the demands of the marketplace.

MYM Nutraceuticals has a detailed plan to serve this emerging marketplace. Our strategy will allow us to be successful navigating this new, heavily regulated market.

With Health Canada licensing scheduled to happen Q2 2018 for the Laval project, MYM will be able to offer cannabis products from different strains to our customers. MYM plans immediate expansion of the facility to include a state of the art extraction department, allowing the company to capitalize on all the harvested trimmings and small cannabis flowers of the previous year and anything harvested going forward. With the ability to extract we will then launch our new THC product lines to our clients. To expand our product offering we will look to acquire an import/export license as well as build on relationships with other ACMPR companies to help us meet the growing demand nationally and abroad.

The Company will start construction of the Weedon project in 2018. The first phase consists of a 30,000 sf greenhouse that can be quickly built in order to expedite Health Canada licencing of the project. After this initial license is obtained, expansion licenses will be applied to the remaining 12 greenhouses to be built out over the next 4 years.

Having built a nationally and globally recognized brand and large scale production facilities, MYM will have the resources, high margins, and cash flow to continue expansion worldwide.

The Cannabis Market


CANADA CANNABIS MARKET PROJECTIONS

CURRENT LICENCED PRODUCERS

BC

AB

SKMB

ON

QCPEINSNB

22

24

6

57

36

3 1

RECREATIONAL VS MEDICAL USAGE

2018

$2 BILLION

$4 BILLION

$6 BILLION

$8 BILLION

$02019 2020 2021 2022 2023 2024 2025

US CANNABIS MARKET PROJECTIONS

2018

$10 BILLION

$15 BILLION

$20 BILLION

$25 BILLION

$02019 2020 2021 2022 2023 2024 2025

RECREATIONAL63%

MEDICAL37%

Project Production Details


WEEDON QUEBEC

By full capacity (Phase 3 in 2020), we will be one of the most productive cannabis facilities in the entire world by total output. The target for the end of 2020 is to produce 3,000,000 grams per year.

WEEDON QC 2018 2019 2020

GREENHOUSE PRODUCTION PHASE 1 PHASE 2 PHASE 3

PRODUCTION SIZE (SQ.FT) 30,000 1,500,000

*CROP/STRAIN (G) 3,000,000 150,000,000

*GROSS REVENUES @ $7/G

*Please note, production and revenue figures are estimates based on current market examples.

21,000,000 1,050,000,000

1,500,000

150,000,000

1,050,000,000

Greenhouse operations have a smaller carbon footprint and lower operational costs. Greenhouse cannabis requires far fewer resources and is less expensive to produce than cannabis grown indoors. Greenhouse production uses the natural environment to fuel its growth and requires much less artificial, high-intensity lighting. Compared to indoor grown cannabis, sun grown plants typically require fewer soil amendments, fertilizers, pesticides, and fungicides.

The Weedon project includes a 33,000 sf warehouse building that houses the research laboratory, extraction facility, processing area and vault storage.

The Weedon Project Phases


The Weedon Canna Centre


Weedon plans to have the worlds largest, zero carbon foot print, Canna Centre. It will be home to an education centre that will be working with universities regarding botany degrees and vocational programs with certifications in cannabis plant and operations from seed to sale. It will also have an attached a R&D lab, a test facility, and a 2005 person auditorium for lectures. There will be a cannabis history museum and a health care clinic with twenty-two 1000 sf apartments for treatments. This plan will make Weedon the cannabis capital of Canada.

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parking

Chemin Ferry

new road

parking

hottub

hottub

new road

vip terrasse

stair

trail terrasse

trail

exteriorstage

paved path forfiretrucks(min. 6')

existingpond

existingpond

seatingzone

pavilions and picnictables zone

loungezone

wetlands andplantations zone

installations andplantations zone

ramp down

ramp down

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inplantations

sauna

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HALL

35'-0"

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42'-0"

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42'-0"

30'-0"TYP.

ARCHIVE

MUSEUM STREET

CAFETERIA

AUDITORIUM2005 PEOPLE TOTAL

RESEARCH & DEV.

14'-21 4"

The Canna Centre Aerial View


Project Production Details


LAVAL QUEBEC

When Phase 1 is completed in 2018, Sublime Culture will be capable of producing 1,000 kilograms of premium indoor medical cannabis annually. By full capacity (Phase 2 in 2019) it will be producing 2,800 kilograms annually.

The Laval project will facilitate the production and distribution of cannabis products, including both Indica and Sativa Cannabis flowers (buds) for sale to our patients as well as high-end Co₂ extracted oils (concentrates) and products made from those oils.

The 10,000 sf facility will produce 700 to 1000 kilograms of cannabis flowers, enough to generate annual revenues estimated at $4.9 million for Phase 1. That figure increases with the revenue potential of an additional $25 million with Phase 2. An additional $2.5 million in extracts will be produced in this facility once Phase 2 is completed.

The first stage is already underway and was completed in late 2017 at a cost of $2.3 million. Production will begin in Q2 2018 with the first harvest completed by the fall of 2018.

Upon license approval, MYM will immediately start Phase 2 build-out of the existing building to a 37,000 sf fully integrated facility. This build-out, when completed, will generate revenues projected to hit $25 million by year two.

LAVAL QC 2018 2019

PRODUCTION PHASE 1 PHASE 2

PRODUCTION SIZE (SQ.FT) 10,000 37,000

*CROP/STRAIN (G) 1,000,000 3,700,000

*GROSS REVENUES @ $7/G 7,000,000 25,900,000

2020

PHASE 3

37,000

3,700,000

25,900,000

SOUTH AMERICALow cost licensing, build costs and labor makes S.A. very attractive for production for export. MYM is working on a production, extraction and export license. MYM believes the international trade of cannabis concentrates and products will be commonplace in the coming years. Columbia has a perfect climate, low wages, and light regulation, making it ideal for the production of oils and concentrates that MYM uses for its branded products.

*Please note, production and revenue figures are estimates based on current market examples.

The MYM Team


ERICK FACTOR | EXECUTIVE CHAIRMAN Mr. Erick Factor has been appointed to the Company’s Board of Directors and will also serve as Executive Chairman. Mr. Factor is a well-known expert in the cannabis industry and has 20 years of experience in cultivating medical marijuana and manufacturing cannabis by-products, and has provided medical marijuana to thousands of patients over the past two decades. Mr. Factor is also the founder of the “Westcoast Medicann” dispensary, one of just a handful of dispensaries in Vancouver to be licensed under the City of Vancouver’s stringent bylaws. He has extensive experience working with Health Canada, from whom he has obtained MMAR and MMPR licenses for hundreds of patients, and has managed and operated grow facilities to produce for those patients. Mr. Factor has also gained invaluable experience over the past three years in ACMPR licensing regulations and applications.

ROB GIETL | CEOMr. Gietl was most recently the Director of Business Development at NRI Global Inc. where he headed up multi-million dollar industrial acquisitions, environmental remediation and global sales of reusable assets and commodities. His skills in negotiations and plan development enabled him to leverage partnerships to accelerate expansion and facilitate synergy in execution. Mr. Gietl is well known for his ability to exponentially grow businesses including the west coast franchise expansion of Dominos Pizza, where he Consistently grew the annual business to achieve 300+% increases year over year. Mr. Gietl is a seasoned Business Development and Operations executive with a diverse track record of leading change across all areas of concept creation, brand re-positioning, market penetration, fiscal accountability and efficient execution of business plans. He has grown business effectiveness in an array of sectors and circumstances throughout Canada, consistently aligned with stakeholders goals and values.

CRAIG LENNOX | CFOCraig Lennox is a proven leader with an extensive background in financial management and operations. Mr. Lennox was most recently CFO at Clearly, a leading online optical retailer. He is a Chartered Professional Accountant and holds a Bachelor of Commerce degree from Queen’s University. He worked at Ernst & Young LLP in Toronto and Vancouver serving both public and private companies. Mr. Lennox spent over 5 years at The Jim Pattison Group Corporate Office in various senior financial roles. Mr. Lennox joined Clearly (Coastal Contacts Inc. – TSX listed) in 2012 as Vice-President of Finance where he was involved in building the business, listing the Company on the Nasdaq and in the ultimate sale of the company in April 2014 to Essilor for $430m. Mr. Lennox became Chief Financial Officer at Clearly in April 2014 and held that role until joining MYM.

CHARITH ADKAR | CSOCharith Adkar completed his PhD in Plant Biology and Crop Production from the University of Milano, Italy with the specialization in Molecular Plant Pathology. He has done his postdoctoral studies at Hirosaki University, Japan and Université de Sherbrooke, Canada. His areas of expertise include: Plant Science, Biotechnology, Microbiology, Molecular host-pathogen interactions and Bioinformatics. His career highlights include the development of molecular diagnostic kits for the detection of pathogens, studies on molecular basis of pathogenesis of non-coding RNAs. His work has featured in more than 45 scientific publications, a book chapter and a filed patent as a co-inventor. He has given several invited talks at national and international scientific meetings as well as at universities. He is a member of several international and national professional societies and serves as a scientific reviewer in high-impact biological science journals. He has received several prestigious fellowships such as Japan Society for promotion of Sciences (JSPS) Postdoctoral Fellowships for Foreign Researchers, Fonds québécois de la recherche sur la nature et les technologies (FQRNT), Quebec, Canada. He also received the best research article award from the Phytopathological Society of Japan and Journal of General plant pathology for the research article for the year 2015.

The MYM Team Cont’d


IAN RAMAGE | DIRECTORIan Ramage grew up in British Columbia and holds a Computer Engineering degree from Simon Fraser University and J.D. and LL.M. degrees from the University of British Columbia. He practiced law in the Bay Area for eight years for a variety of biotech and high-tech clients, returning to Vancouver in 2009 to continue to build his corporate and securities practice. Most recently, Ian was counsel for a national chain of marijuana dispensaries and has advised several others on marijuana regulations and corporate matters.

ROBIN LINDEN | DIRECTORMr. Linden has over 20 years leadership and management experience. He is currently a Director with Fairmont Hotels and Resorts based out of Vancouver, BC. Prior to that, Mr. Linden served in leadership and management roles with the University of Manitoba, Molson Breweries Canada and Canadian luxury retailer, Holt Renfrew. Mr. Linden holds a BA (hons) from the University of Manitoba and Post Graduate Diplomas from Simon Fraser University in Vancouver and the University of St. Andrews in Scotland.

EDWARD TABISZ | DIRECTORMYM Nutraceuticals. Mr. Tabisz is an Executive with TD Bank with over 15 years experience in Retail Distribution, Product Management, Finance and Operations. Mr. Tabisz currently leads the Finance team supporting the Real Estate Secured Lending business. Prior to, as an executive with TD Insurance, he led the strategic development and change management of their Life and Health product suite, the culmination of which resulted in an industry Six Sigma process improvement award. Mr. Tabisz graduated from the University of Manitoba in 2001 with more recent on-going continuous learning through Schulich School of Business, York University Executive Education Centre. Mr. Tabisz joins MYM’s board of directors effective May 1, 2018.

CONFIDENTIALITY STATEMENT AND LEGAL DISCLAIMERThis Business Plan is confidential. Unauthorized reproduction or distribution of it or any of its contents in any form or under any circumstances without prior written consent is prohibited. The Recipient is responsible for returning all copies of the Plan immediately upon request of the Company. The information contained herein is: (i) provided by the principal founders of the business and (ii) publicly available from directories, publications, and websites, as mentioned in the body and the footnotes where possible or appropriate. In some cases, non-publicly available information was used, including independent research, studies or paid services from individuals and organizations. While the information set forth herein is deemed by the Company to be accurate, the Company shall not be held liable for the accuracy of or any omissions from this Business Plan or for any other written or oral communication transmitted to the Recipient and any other party in the course of its evaluation of transactions involving the Company.

The information contained in the plan will require careful scrutiny, verification and due diligence efforts from the Recipients of the plan. Any person or entity seeking to make an investment in the business should not rely on the information set forth in the plan as complete. In addition, the analyses contained herein do not claim to be appraisals of the assets or the valuation of any entity. The business makes no guarantees regarding any benefits received from an investment, nor the legal, tax or accounting effects of any transaction; and this Plan does not constitute an offer to sell, or a solicitation of an offer to buy securities. In furnishing the Business Plan, the Company undertakes no obligation to provide Recipients of the Business Plan with access to any additional information or to update this Business Plan or to correct any inaccuracies that may be contained herein. There exists substantial information with respect to the business and its future prospects, and there are a substantial number of risks associated with an investment in the business, which are not set forth in the plan.

Furthermore, the potential fulfillment of “forward looking statements” contained in the plan are subject to change due to unexpected events, market shifts, or circumstances that cannot be known at this time. Forward looking statements are based on expectations, estimates and projections at the time the statements were made that involve a number of economic, business, and numerous risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in the plan may be identified through the use of words such as, but not exclusively to: “expects,” “will,” “anticipates,” “estimates,” “believes,” or statements indicating certain actions “may,” “could,” or “might” occur. Such estimates and projections are subject to significant uncertainties beyond the control of the Company. Although such projections are believed to be realistic, no representations are made as to their ultimate attainability.

EXECUTIVE SUMMARY 2018 - MYM · the west coast franchise expansion of Dominos Pizza, where he...

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