T H E C A N N A B I S C O M P A N Y -...

30
THE CANNABIS COMPANY TSXV:GENE OTCQX:IVITF FRA:8IS1

Transcript of T H E C A N N A B I S C O M P A N Y -...

T H E C A N N A B I S C O M P A N Y

T S X V : G E N E O T C Q X : I V I T F F R A : 8 I S 1

This corporate presentation (the “Presentation”) and the

material contained herein are confidential and are not to be

disclosed to the public. This Presentation is for information

purposes only and may not be reproduced or distributed to any

other person or published, in whole or part, for any purpose

whatsoever. This Presentation does not constitute a general

advertisement or general solicitation or an offer to sell or a

solicitation to buy any securities in any jurisdiction. Such an offer

can only be made by prospectus or other authorized offering

document. This Presentation and materials or fact of their

distribution or communication shall not form the basis of, or be

relied on in connection with any contract, commitment or

investment decision whatsoever in relation thereto. No

securities commission or similar authority in Canada or any

other jurisdiction has in any way passed upon the adequacy or

accuracy of the information contained in this Presentation.

This Presentation contains forward-looking statements and

forward-looking information that may constitute forward-

looking information within the meaning of applicable Canadian

securities laws or forward-looking statements within the

meaning of the United States Private Securities Litigation

Reform Act of 1995. All statements in this Presentation, other

than statements of historical facts, including statements

regarding the expected cultivation capacity in square footage

and kilograms by the end of January 2019, the expected

cultivation capacity in square footage and kilograms by the end

of January 2020, the expected completion date of Acreage

Pharms’ Phase III expansion, the anticipated construction of

Acreage Pharms Phase IV, the anticipated plan and timeline to

begin construction on OptionCo’s facilities located in Mission

and Delta, the anticipated benefits of Acreage Pharms’

Supercritical CO2 extraction, are forward-looking statements

and contain forward-looking information. Generally, forward-

looking statements and information can be identified by the use

of forward-looking terminology such as “intends” or

“anticipates”, or variations of such words and phrases or

statements that certain actions, events or results “may”, “could”,

“should”, “would” or “occur”. Forward-looking statements are

based on certain material assumptions and analysis made by the

Company and the opinions and estimates of management as of

the date of this press release, including the expected operation

of 210,200 square feet of cultivation capacity by the end of

January 2019 will be achieved without delay or complication,

the expected operation of 714,200 square feet of cultivation

capacity by the end of January 2020 will be achieved without

delay or complication, the expected completion date of Acreage

Pharms’ Phase III expansion will be achieved without delay or

complication, the anticipated construction of Acreage Pharms

Phase IV will begin without delay or complication, the

anticipated plan and timeline to begin construction on

OptionCo’s facilities located in Mission and Delta will be met

without delay or complication, Acreage Pharms’ Supercritical

CO2 extraction will operate as anticipated without complication.

These forward-looking statements are subject to known and

unknown risks, uncertainties and other factors that may cause

the actual results, level of activity, performance or achievements

of the Company to be materially different from those expressed

or implied by such forward-looking statements or forward-

looking information. Important factors that may cause actual

results to vary, include, without limitation, Invictus will not be

successful in reaching its potential production capacity on its

anticipated timeline, Acreage Pharms’ Phase III expansion will be

delayed or will not complete due to unforeseen complications or

lack of funding, Acreage Pharms’ Phase IV expansion will be

delayed or will not complete due to unforeseen complications or

lack of funding, Invictus will not exercise its option to purchase

OptionCo or OptionCo’s plans to construct its Mission and Delta

facilities will be delayed or will not complete due to unforeseen

complications or lack of funding and that Acreage Pharms’

Supercritical Co2 extraction will operate materially worse than

expected by the Company. Although management of the

Company has attempted to identify important factors that could

cause actual results to differ materially from those contained in

forward-looking statements or forward-looking information,

there may be other factors that cause results not to be as

anticipated, estimated or intended. There can be no assurance

that such statements will prove to be accurate, as actual results

and future events could differ materially from those anticipated

in such statements. Accordingly, readers should not place undue

reliance on forward-looking statements and forward-looking

information. Readers are cautioned that reliance on such

information may not be appropriate for other purposes. The

Company does not undertake to update any forward-looking

statement, forward-looking information or financial out-look

that are incorporated by reference herein, except in accordance

with applicable securities laws.

Hamilton, OntarioLicensed Producer under ACMPR with sales license

West-Central AlbertaLicensed Producer under ACMPR with saleslicense (150 acres)

Hamilton, OntarioACMPR Pre-Licence

Application (100 acres)

❖ 15,700 kg planned capacity in FY2019

❖ 57,300 kg planned capacity in FY2020Kelowna, British ColumbiaFertilizer Producer

Mission, British Columbia(32 acres)

Delta, British ColumbiaACMPR Pre-Licence Application

Delta

Mission

❖ The band KISS sold more than 100 million albums and broke box office records set by

The Beatles and Elvis

❖ KISS earned more American Gold Record Awards than any other group in all categories

❖ Built a merchandising/licensing empire with over 2,500 licenses

❖ Simmons’ celebrity television show, Gene Simmons Family Jewels, aired for eight years and

167 episodes, and was viewed in 84 countries — one of the longest-running celebrity reality

TV shows in history

❖ Is a founding partner in the global restaurant chain Rock & Brews

❖ McClaren hired him as their brand ambassador and Indycar engaged him to do their marketing

❖ Is a published author and about to publish his latest book “27”, on the heels of his two previous

best sellers Me, Inc., and On Power

❖ Is launching a premium soda line, MoneyBagTM Sodas, across all 7-Eleven stores, and he will

soon launch MoneyBagTM FootGear

Medical cannabis through

business to customer sales,

as permitted by the ACMPR

Retail stores in Western

Canada with the initial

launch of our partnership

with flagship retail store

that will commence

operations upon receiving

final licensing from the

AGLC and will feature our

lifestyle brands and locally

grown product from

Acreage Pharms, in Alberta

LP to LP partnerships

working together with other

LP’s to tap into their

distribution channels,

such as our subsidiary AB

Labs’ partnership with

Canopy Growth

Corporation (TSX: WEED)

Sales agreements with

government agencies to

supply the adult

recreational market in

Canada, as evidenced by

the recent supply

agreements with BC,

Alberta and Saskatchewan

Distribution agreements

beyond Canada's borders,

starting with Germany in

2019, as announced in

recent press release, dated

June 19, 2018

❖ Complete vertical integration that spans production through to sale to end

customer

❖ Full retail strategy aimed for Western Canada

❖ On-site customer call centre and shipping depot for medical orders

❖ Wholesale model

❖ Current supply agreement with Canopy Growth’s curated CraftGrow Line on

Tweed Main Street

❖ Expansion plans to sell wholesale to Acreage Pharms and / or other Licensed

Producers and provinces

❖ ❖ ❖ ❖

Authentic Brands Group (“ABG”) is a

brand development, marketing, and

entertainment company, which owns a

global portfolio of entertainment and

lifestyle brands. Headquartered in New

York City, ABG manages, elevates, and

builds the long-term value of consumer

brands by partnering with best-in-class

manufacturers, wholesalers, and

retailers.

ATB is a financial institution and

Crown corporation owned by the

Province of Alberta. Headquartered in

Edmonton, with total assets of C$51.9

billion, ATB is the largest Alberta-

based financial institution.

GTEC Holdings is a publicly traded

(TSXV: GTEC) cannabis company

comprised of multiple cultivation

facilities under Health Canada’s

ACMPR, each with a unique focus and

strategy.

Hamilton, OntarioLicensed Producer under ACMPR with sales license

West-Central AlbertaLicensed Producer

under ACMPR with sales license (150 acres)

Hamilton, OntarioACMPR Pre-Licence Application (100 acres)

Kelowna, British ColumbiaFertilizer Producer

SECURED RECREATIONAL SUPPLY AGREEMENTS

POTENTIAL SUPPLY AGREEMENTS AND PRODUCT CALLS

Additional Medical Market

CONFIRMED LOCATIONS

RETAIL LOCATIONS

TARGET LOCATIONS

8 store strategy within 200 km radius of Kelowna with 2 locations confirmed

30 Cannabis Cowboy locations with 15 confirmed

1 confirmed location with e-commerce secured for entire province

Cannabis Cowboy targeting 20+ stores

Applications submitted for 6 locations

12 store strategy

Invictus has partnered with GTEC Holdings Ltd. (“GTEC”)

to fill up to 30% of any cannabis PO that GTEC is seeking

to purchase from a third party LP for a period of 2 years.

GTEC is executing an aggressive cannabis expansion

retail strategy across Canada and expects to have at

minimum 15 Cannabis Cowboy retail stores open by

October 17, 2018, in BC and Alberta, as well as 1 location

in Saskatchewan, complemented by an e-commerce

platform that will serve the entire Province.

Invictus Brands Invictus has partnered with Authentic Brands Group (“ABG”) to launch a collection of lifestyle-inspired cannabis brands.

Headquartered in New York City, ABG owns, manages, and builds the long-term value of a portfolio of global Entertainment and

Lifestyle brands. ABG's brands have a retail footprint that spans the luxury, specialty, department store, mid-tier, and e-commerce

channels and more than 4,400 branded freestanding stores and shop-in-shops worldwide. For more information about ABG and its

brands, please visit abg-nyc.com.

11

A FOCUS ON WELLNESS

VitaLeaf is a medical brand that speaks to

health-conscious consumers and medical

professionals seeking alternative treatments,

who are 28–65, and new to the benefits of

medicinal cannabis. Vitaleaf is the trusted

source for medical cannabis advice, product

and paraphernalia that empowers consumers

to take control of their health and well-being.

That’s because Vitaleaf sources high quality

products you can trust. Vitaleaf’s professional,

reliable patient care team provides

comprehensive support every step of the way.

LIVING IN THE MOMENT

DukesTM is a lifestyle brand that appeals to

the consumer that appreciates being able to

curate specialized products that enhance

their everyday life. Dukes is about bringing

together friends and living in the moment.

CONSUMER PROFILE

• Women & Men (broad appeal is that it has

something for everyone)

• Tech-savvy

• Socially engaged

• Knowledgeable consumer

• Quality of life & friendships are important

PRODUCT PROFILE

• Targets the New and Casual user

• Varied THC levels

• Presented in a simplified, color-coded

system that easily conveys THC level

LIVE YOUR BEST LIFE

ZooeyTM connects with modern active women

with a clearly feminine point of view. This

woman takes time for self-care, to relax and

dedicate downtime to step away from her

busy life. Designed with women in mind,

Zooey addresses her social, physical, and

mental well-being.

CONSUMER PROFILE

• Female consumer

• Millennial sensibility

• Wants trustworthy & effective products

and experiences

• Cares about quality and sustainability

• Responds to homeopathic and natural

remedies

• Makes time for self-care & socializing

PRODUCT PROFILE

• Targets the New and Casual female user

• Range of THC to CBD levels

THE ARTISAN, THE CRAFTSMAN

AND THE CONNOISSEUR

Putting a finer spin on product that is upscale,

status-conscious, and stylish, Sterling & HuntTM

is unexpected. Aimed at the consumer who

appreciates and expects fine quality products

and is willing to invest in higher-end items,

Sterling & Hunt is for those who enjoy the finer

things in life.

CONSUMER PROFILE• Primarily male consumer• A true connoisseur in all aspects of his

lifestyle• Image- and brand-conscious but well-

informed with discriminating taste• Takes time and care with grooming• A curator and a collector• Has a preference for things that are artisan

and well-crafted

PRODUCT PROFILE• Targets the Experienced user• Varied THC levels• May feature special batches, limited editions

GO ALL IN

SinisterTM consumers live life on the edge,

know what they want, know what they like,

and are passionate about the things they

enjoy. Experiences matter to the Sinister

consumer and they seek out brands and

products that reflect who they are and how

they live their lives.

CONSUMER PROFILE• Male-targeted but also appeals to niche

female groups• Independent thinker; Bohemian Elite• Laid-back, yet looking for an intense

experience in all areas of• interest: music, sports, travel, cannabis• Somewhat counter-culture but cause-

focused and socially engaged• Self expression is important

PRODUCT PROFILE• Targets the Experienced/Daily user• Higher THC levels

Note 1 - Capacity presented on a gross basis and has not been adjusted for forecasted ownership percentages below 100% (AB Labs 50% and AB Ventures 33%)

❖ Non-Toxic/Non-Carcinogenic. Oils extracted using this technology do not contain petroleum

particles.

❖ Safe. The system does not use potentially flammable or explosive petroleum-based solvents.

❖ Carbon-Neutral/Environmentally Friendly. The system does not emit carbon into the atmosphere.

❖ Customizable. With a wide range of temperatures, pressures and flow rates to leverage, the

system is capable of fully withdrawing the full profiles of natural compounds from cannabis plants.

❖ 82.5 percent ownership

❖ There are decades of experience that fill the ranks at Future Harvest, a

hydroponics and fertilizer manufacturer and supplier.

❖ The Future Harvest team is dedicated to developing products that

benefit soil and plants.

❖ According to the Washington Agricultural Board, Future Harvest

fertilizer products have lower heavy metal content than its competitors.

CPA/CA, Chairman, CEO, Founder & Director

Independent Director

CEO Acreage Pharms/Director

CPA/CA, Independent Director Independent DirectorIndependent Director

CPA/CA, Chief Financial OfficerMBA, Vice President, Marketing & Communications CPA/CA, Director Of Finance

Chief Evangelist Officer Vice President, Medical Sales

VP, Public Relations & Regulatory Affairs

Dan Kriznic founded Invictus in June 2014 with a vision to create a

global cannabis company to meet the significant demand for cannabis

both medicinally and recreationally. Dan was co-founder and CFO of

Lithium-X Energy Corp. (TSXV:LIX), a lithium exploration company,

which recently sold for $261 million in an all cash transaction.

He has grown the value of his portfolio companies from nominal

valuation to collective valuations exceeding $1 billion in enterprise

value with significant returns to shareholders. He focuses on emerging

markets such as cannabis, lithium and blockchain/cryptocurrency. Prior

to this he was at Deloitte for 10 years where he served in leadership

roles advising both public and privately held companies in M&A

transactions and tax planning.

Simmons has achieved extraordinary success beyond the concert stage

and recording studio, his KISS-related achievements are astounding in

themselves with the band having sold more than 100 million albums;

earning more American Gold Record Awards than any other group, in

all categories (RIAA); building a merchandising/licensing empire with

over 2,500 licenses including everything from t-shirts and comic books,

to pinball machines, credit cards and lunchboxes; and breaking box

office records set by The Beatles and Elvis.

Beyond KISS, Simmons’ celebrity television show, Gene Simmons

Family Jewels, aired for eight years and 167 episodes, and was viewed

in 84 countries — one of the longest-running celebrity reality TV shows

in history. He discovered Van Halen, managed the recording career of

Liza Minnelli, and is a founding partner in the global restaurant chain

Rock & Brews.

Simmons’ achievements in marketing encouraged McClaren to hire him

as their brand ambassador and Indycar engaged him to do their

marketing. Simmons has a record label Simmons Records, is a published

author with Simmons Books about to publish his latest book “27”, on

the heels of his two previous best sellers Me, Inc., and On Power; and

Simmons Comics continues to grow. In addition, he published his own

magazine, Tongue (Sterling-McFadden) and is about to launch his

newest magazine, “iMOGU” focusing on entrepreneurs that matter.

Simmons created and executive produced the TV shows My Dad The

Rock Star, Mr. Romance, and others. He has also acted in numerous

motion pictures and television shows for more than three decades and

is currently co-producing a slate of motion pictures with Arclight Films.

Simmons has rung the bell at the New York Stock Exchange and the

Toronto Stock Exchange, and was keynote speaker at NASDAQ. Gene

Simmons also had a United States Postage Stamp.

Among his latest ventures, Simmons is launching a premium soda line,

MoneyBag™ Sodas, across all 7-Eleven stores; his 50th anniversary

rock tour, Gene Simmons: The Vault Experience, continues with stops

around the world; and, he will soon launch MoneyBag™ FootGear.

Trevor Dixon founded Acreage Pharms Ltd in 2013 and with his sister

Brenda Dixon, Chief Science Officer, submitted a successful ACMPR

application. Prior to that, Trevor founded a company that specialized in

niche home renovations where he developed a franchise system. Within

a decade, the company was serving customers in more than 50 cities

across Canada. His philosophy of customer value, quality, and excellent

service has been carried over into the design and operational strategy

of Acreage Pharms Ltd.

Sarah is a strategic business development leader, marketer and

intrapreneur with over 15 years of optimizing profit across diverse

industry base, including CPG, Financial Services, Healthcare and

Professional Services. She has a proven track record of driving bottom

line growth and building new markets within top tier companies such as

Mondalez, American Express, and Indivior. She is passionate about

marrying profit with purpose, and driving innovation, in the medical

cannabis arena. Sarah completed her Bachelor of Commerce degree at

UBC and holds her Executive MBA from Ivey Business School at

University of Western Ontario.

Mr. Aaron Bowden specializes in taxation and currently manages all

areas of taxation for a large Canadian public company with over 12,000

employees and $4 billion in sales. Prior to this, Mr. Bowden worked at

Deloitte advising clients on assurance and tax matters and has been

involved in various forms of financing, mergers, acquisitions, and

divestitures.

George is a founding partner of LOGSCALE Venture Partners, focused

on capitalizing early and growth stage companies in healthcare. He has

in-depth strategic and corporate development experience in fast

moving consumer goods. As VP at Japan Tobacco, he led M&A

transactions valued at US $1.5B, expansion into in the US and Latin

America, and deal origination and execution for emerging products. At

Philip Morris, he led two major acquisitions (up to US$1B), readied

businesses in central and eastern European for EU accession, and

facilitated new market entries into Croatia and neighboring countries.

His multi-billion dollar private and public company deals are global

spanning five continents. He’s a grad of Queen’s University and

completed executive studies at Berkeley Haas and Harvard Business

School.

Josef W. Hocher was a founder of Buried Hill Energy, an international

oil and gas company, where he acted as co-chief executive in creating,

developing and implementing the organization’s strategic direction. He

continues to serve as the Senior Independent Director and is also either

a Chair or a member of various committees. Joe also founded Hitic

Energy Ltd., and was a partner at Osler, Hoskin & Harcourt LLP. Joe

currently serves as Chairman of Orthoshop Geomatics Ltd., a geomatics

services company; holds the position of Chief Commercial Officer at

Field Upgrading Limited and Western Hydrogen Limited and since

2016, has been a Partner at Cassels, Brock & Blackwell LLP.

Paul Sparkes sits on several public and private boards in Canada, the US

and Europe, including Thunderbird Entertainment, Bluedrop

Performance Learning, Inc., and is a former board member of the Liquor

Control Board of Ontario (LCBO). Prior to joining Bell Globemedia in

2001 as Group Vice-President, Public Affairs, Mr. Sparkes held senior

positions in public service, with the Governments of Canada, and

Newfoundland and Labrador. As Executive Vice Chair, Director and co-

founder of Difference Capital Financial, a TSX-listed specialty finance

company that invested in media, technology, health care and US real

estate, he helped raise over $200 million for investment purposes in

under a year.

Dylan Easterbrook is a seasoned accounting and financial professional,

who most recently was controller of a publicly traded global fibre optic

connectivity solution provider. Prior to that role he was with Ernst &

Young, one of the largest global professional services firms, where he

led audit engagements for both public and privately held companies

from a variety of industries, including the emerging markets. Dylan is a

Canadian Chartered Professional Accountant (CPA, CA), and also holds

a Bachelor of Science in Life Sciences degree from UBC.

Jessica Martin is a seasoned 15-year communications expert with a

broad range of experience in media relations, issues management,

government relations and digital media. Most recently as Press

Secretary and Senior Advisor to Ontario's Minister of Finance, Jessica

helped to develop strategy for cannabis legalization in Ontario. Prior to

that, she held a number of high-profile roles including Transit Reporter

at the Toronto Transit Commission, providing live updates on City TV's

Breakfast Television, CP24 and 680News, and spokesperson for

Toronto Hydro. Behind the scenes, Jessica has worked as a Research

Analyst at Queen's Park and Floor Director at City TV. Jessica is

currently a candidate in the McMaster-Syracuse Master of

Communications Management (MCM) program - where business and

communication meet.

Natasha is a Chartered Professional Accountant with over 10 years of

experience in financial management and accounting. Prior to joining

the Invictus team, Natasha held management positions at Deloitte, a

global professional service firm and Mr. Lube Canada, one of Canada’s

largest oil change franchisors. In these roles, she gained valuable

leadership experience and well-rounded financial skillset, including

auditing, reporting, planning and analysis. Natasha holds a bachelors

degree in accounting from British Columbia Institute of Technology and

received her CA designation in 2010.

Larry Heinzlmeir brings over twenty-five years of executive level

experience in sales and marketing with several of the largest publicly

traded companies in the for-profit higher education sector, namely

DeVry and EDMC, that had a combined market cap in excess of $7B. He

was Vice President, Marketing and CMO of a growth-oriented

organization that was Canada’s largest private, for profit, education

company and was responsible for the aggressive growth of seven

brands growing revenue ten-fold in four years. He has extensive

experience in developing marketing strategies, multi-brand

development, product management, communications, creative and

content development, and leveraging digital marketing across multiple

platforms and technologies including web, mobile and social.

Lineup includes an excellent 1:1

THC:CBD strain.

TARGET

Lineup includes a widely popular

and established hybrid.

TARGET

Lineup includes an in-house strain

excusive to Acreage Pharms.

TARGET

TARGET

1 Popular Strains, 2 In House Exclusive

T H E C A N N A B I S C O M P A N Y

T S X V : G E N E O T C Q X : I V I T F F R A : 8 I S 1