Tetra Bio-Pharma Inc.s22.q4cdn.com/.../doc_presentations/analyst/Tetra-Bio-Pharma-0814.pdfAlpha Deal...

14 August 2017| Coverage Update | Pharmaceuticals

Alpha Deal Group Intelligence

Strong Potential: Targeting rapidly evolving medical cannabis market Alpha Deal Group considers Tetra Bio Pharma Inc. (CSE: TBP; OTC: TBPMF), as a unique opportunity to benefit from the rapidly evolving medical cannabis market, unique focus and numerous upcoming catalysts. TBP is a multi-subsidiary publicly traded company engaged in the development of Bio Pharmaceuticals and Natural Health Products containing cannabis and other medicinal plant based elements. It is focused on combining the traditional methods of medicinal cannabis use with the supporting scientific validation and safety data required for inclusion into the existing bio pharma industry. The completion of Phase I clinical trials and the preparation for Phase III clinical trials for its lead product, PPP001, marks an important milestone for the Company and its shareholders. We believe that TBP is extremely under-valued at its current market cap of CAD87mn relative to its peers and we see a potential for a significant re-rating of the stock to levels of around two-three times the current price. We believe that TBP represents a compelling investment opportunity within the cannabis industry.

Investment Highlights

TBP plans to bring smokable, natural medical marijuana to market along with a number of other products targeting chronic pain, insomnia, PTSD, anxiety, and others. Currently, no evidence exists that support the prescription of medical marijuana in any medical condition. According to the Canadian and US drug regulatory agencies, there is no evidence to support the safety and efficacy of marijuana for use in the treatment of pain or any other indication. TBP product development plan would provide the data necessary for drug regulatory agencies to grant marketing approval and physicians to prescribe cannabis products.

The Company also has a strong pipeline of over the counter natural health products for pain management, cardiovascular disease prevention, athletic performance, and well-being, targeting both Canada and the US supplement markets. Along with medicinal and recreational cannabis, natural health products containing non-psychoactive cannabinoids such as cannibidiol (CBD) are widely gaining popularity particularly in the US where more favorable CBD regulations exist. According to Hemp Industries Association (HIA), Hemp-based personal care products made up 26% of total hemp market, or $147mn.

Tetra is developing its lead product, PPP001, to be the first smokeable marijuana for advanced cancer pain. PPP001 has been designed as a pellet to be delivered through a titanium inhalation device, which includes a digital readout so that a pharmacist can monitor an individual’s consumption of cannabis. Tetra has a strategic partnership with Aphria.

Globally, over 1.5 billion people suffer from chronic pain. In the US alone, studies suggest that chronic pain affects over 116 million people, i.e., over 30% of the population.

Share price CAD 0.74

Market cap (CADm) 87Net cash (CADm) 3.08Enterprise value (CADm) 83

No. of shares (m) 117.00Average daily vol ('m, -3m) 0.6

Dividend yield (%) 0PER at Target price (Y1) n/aPrice/book nm

12 month high/low (CAD) 1.48/0.04

(%) 1m 3m 12mTBP (8.5) 23.0 1566.7S&P/TSX Composite (0.6) (2.0) 3.0

Price chart

Source: Reuters

Share Price as at close:

Key FinancialNov-14 Nov-15

649 1,051 595 997

Cash 20 1,219

40 1,588 (230) 1,449

www.tetrabiopharma.com

Malti SharmaSenior Analyst+1 (212) [email protected]

Nitish KapoorSenior Analyst+1 (212) [email protected]

Tetra Bio-Pharma Inc.(CSE: TBP; OTC: TBPMF)

BUY-SIDE PORTFOLIO SELECTION

August 11, 2017

Shareholder's Equity

CAD'000Total ExpensesNet Loss

Total Assets

0

0.5

1

1.5

Au

g-1

6

Sep

-16

Oct

-16

No

v-1

6

Jan

-17

Feb

-17

Mar

-17

Ap

r-1

7

May

-17

Jul-

17

Au

g-1

7

Tetra Bio-Pharma|14 August 2017 Table of contents

2 Alpha Deal Group Intelligence

Table of Contents

Investment Thesis 3

Market Overview 9

Company Overview 18

Product Portfolio 24

Management 27

Board of Directors 29

Financials 31

Share Price 33

Disclaimer and Notes 34

Tetra Bio-Pharma Inc.| 14 August 2017 Investment Thesis


Investment Thesis

TBP is making tremendous progress in the execution of its strategy to become a leading biopharmaceutical company in developing and commercializing cannabis prescription drugs.

Pharmaceutical Approach to Cannabis Research and Medical Innovation Cannabis preparations exert numerous therapeutic effects. They have antispastic, analgesic, antiemetic, neuroprotective, and anti-inflammatory actions, and are effective against certain psychiatric diseases. Despite such potential, physicians cannot ethically prescribe or recommend a powerful pharmaceutical whose effects are not at least reasonably well-known. If there were a condition with a lot of anecdotal data and no other effective treatment, and the risks of the condition were such that they outweighed the health risks and dependence potential of marijuana, physicians would have something to work with. But for now, people who want to take cannabis cannot count on a doctor to approve it for them.

According to the Canadian and the US drug regulatory agencies, there is no evidence to support the safety and efficacy of marijuana for use in the treatment of pain or any other indication. TBP product development plan would provide the data necessary for drug regulatory agencies to grant marketing approval and physicians to prescribe or recommend its cannabis based products. In addition, as medical cannabis becomes legalized across the globe the medical and scientific community would still require pharmaceutical consumer drug products developed with proper research, data and protocol. Insurance companies will only be able to cover the cost of products with Drug Identification Numbers. TBP plans to take the natural aspects of medical cannabis and applies the science of pharma to develop products that patients want, doctors want to prescribe and insurance companies will cover.

We believe that physicians would rather prescribe an approved FDA product vs. unapproved medical marijuana. Medical marijuana can have batch-to-batch inconsistency, leading to an inability to predictably dose the drug for a desired benefit. In addition, the supply of a specific strain can be locally driven. As a contrast, the Company’s drug will be consistently produced and can be predictably dosed for a desired effect as it will be an FDA regulated drug product.

TBP Product Pipeline TBP has a strong pipeline of cannabis sativa based prescription drugs. The Company’s key product is PPP001 which is a medical marijuana product that the Company is developing as a prescription controlled drug for inhalation using a fully assembled titanium pipe. In addition to



PPP001, the Company is pursuing a number of other clinical programs designed to leverage the botanical rather than a synthetic. Its PPP002 program is a Phase III botanical drug that is targeting insomnia in chronic pain patients, while its PPP003 is a combination oral product designed to treat chronic pain, PTSD, and neurological conditions.

The Company also has a strong pipeline of natural health products that includes AGT001, a topical product for pain management; AGT002 product line‐oral for cardiovascular disease prevention, athletic performance, and well‐being; AGT003 product line for skin care; AGT004 for women‐quality of life.

Developing prescription botanical based pharmaceuticals requires a high quality GMP system and well-established product specifications to ensure consistent efficacy and ultimately protect the safety of patients. TBP has signed a supply agreement with Access to Cannabis for Medical Purpose Regulations (ACMPR) licensed producer Aphria Inc. (TSX VENTURE: APH) (OTCQB: APHQF) for the supply of dried medical cannabis as an Active Pharmaceutical Ingredient (API) for PPP's inhalation cannabis product PPP001. We believe that Aphria’s high quality GMP medical cannabis production facility and impressive quality assurance team will meet the expectations of both the Canadian and USA prescription drug authorities.

PPP001 – Dried Cannabis Prescription Drug PPP001 is the first smokeable cannabis drug product being developed for the treatment of late-stage cancer patients with pain. Delivery via combustion has been shown to provide greater efficacy than oral ingestion for certain pain sufferers. PPP001 is aimed at the market for treating cancer patients, specifically Stage 3 and Stage 4 cancer patients. With many of these patients having been diagnosed as terminal, concerns about potential hazards of smoking cannabis are minimal.

In June 2017, TBP reported positive results from a Phase 1 study of PPP001, with safety data meeting the Company’s expectations. In addition, pharmacokinetic data demonstrated that inhalation of PPP001 achieved the targeted plasma levels of tetrahydrocannabinol (THC) that could potentially achieve pain relief in cancer patients. The Phase 1 trial also provided key information required to design a Phase 3 clinical trial for pain relief in cancer patients, which is expected to begin around the end of 2017. The clinical program will also address the potential of PPP001 to reduce the reliance on opioids for management of severe pain. Since cannabis is a known chemical entity, TBP is able to bypass Phase 2 studies and move directly into a pivotal trial. The Company hopes to sign a commercial partnership for PPP001 by the end of 2018 and receive a Notice of Compliance from Health Canada by the end of 2019 to launch PPP001. TBP hopes to begin selling PPP001 by the end of the summer.



According to Global Pain Management, approximately 50% of cancer patients suffer from pain and more than 600,000 of these patients suffer from moderate-to-severe pain. In the US, there are over 4 million cancer patients and this pain market is valued at over $5bn.

Securing the evidence for smokable marijuana (PPP001) Marijuana-infused edibles have become a popular way to consume Tetrahydrocannabinol (THC) and Cannabidiol (CBD) without smoking the dried plant, but there are some key differences in the way that the drug is metabolized that could impact its medicinal value. The liver metabolizes edible THC, producing an active metabolite that is very effective at crossing the blood-brain barrier where it eventually produces a ‘high’ feeling. By contrast, when a consumer inhales marijuana, the majority of cannabinoids enter the body through the lungs where they are passed along directly into the consumer’s blood stream. The effect is almost instantaneous. Another benefit to inhalation is the ability to easily titrate one’s dose, making overconsumption less likely. Inhaled cannabis also leads to higher concentrations of THC in the blood, which tends to be roughly 50-60% compared to just 10-20% for edibles. In a 2007 study in the Journal of Chemistry and Biodiversity, subjects who consumed cannabis via inhalation reported feeling the effects of the medication within minutes, with peak effects around the hour mark and total duration of effects around two hours. These dynamics are important to consider from a medical perspective. The delay between the ingestion of edible THC and the onset of the ‘high’ effects could lead to overconsumption among patients. Individual differences in metabolism also make it difficult to come up with specific dosing and instructions applicable to everyone. By comparison, the instantaneous effects of inhaled cannabis enables patients to adjust their dosing as needed. Several studies have also shown that cannabis smokers don’t have higher rates of lung cancer – a key concern among doctors prescribing these treatments. For example, one study looked at 2,159 lung cancer cases and 2,985 controls from six case-control studies across the US, Canada, the UK, and New Zealand. The results provided little evidence for an increased risk of lung cancer among habitual or long-term cannabis smokers.

TBP is securing the evidence to prove that smokable medical marijuana has a place in healthcare by conducting rigorous clinical studies. Till date, nobody has proven to regulators that smokable cannabis has any medical benefits, therefore, it remains a Schedule I Controlled Substance in the United States and illegal in other countries as well. The Company believes that its smokable medical marijuana would provide patients with a better natural alternative to synthesized chemical concoctions being developed by other companies in the space. With so many patients already using smokable medical marijuana, the Company also has access to a wide patient population where it can draw data to support its clinical studies and ultimately secure regulatory approvals.



Natural Health Product Strategy The Company’s Agro Tek (AGTK) subsidiary is focused on acquiring, manufacturing and distributing natural health products (NHP) containing cannabis and other non-psychoactive cannabinoids. Its NHP pipeline includes product for pain management, cardiovascular disease prevention, athletic performance, and well-being, among others. TBP is targeting both Canada and the US supplement (OTC) markets. AGTK intends to acquire formulations and established brands with the goal of integrating its cannabis R&D into the less regulated NHP market.

CBD or THC containing dietary supplements are currently not allowed on the US market. The Company has been awarded a National Sciences and Engineering Research Council of Canada (NSERC) Engage Grant partnership with McGill University that will allow AGTK to achieve its commercial strategy to launch cannabis-derived supplements that comply with the existing Canadian and the US federal regulations regarding cannabis and cannabinoid content. The goal of the McGill University partnership is the development of extracts of the plant cannabis sativa, including THC and CBD-free for the development of dietary supplements. In October 2016 AGTK acquired multiple intellectual property assets related to the initiation of manufacturing and distribution of products for natural health care including products containing extracts or oils derived from cannabis sativa. TBP is hoping to launch a line of natural health cannabis products by the end of this year to begin generating revenue. The Company may also seek to acquire additional product lines as well as license products for distribution in North America.

Significant Market Opportunity: Along with medicinal and recreational cannabis, natural health products containing non-psychoactive cannabinoids such as cannibidiol (CBD) are widely gaining popularity particularly in the US where more favorable CBD regulations exist. According to Hemp Industries Association (HIA), the total estimated size of the 2015 hemp market including CBD products, foods, personal care products, and others stood at $573mn, an estimated 10% increase over 2014. Hemp-based personal care products made up 26% of total sales, or $147mn, followed by industrial applications, consumer textiles, and others.



US Hemp-Based Product Sales by Category (2015)

Source: Hemp Industries Association, Alpha Deal Group

Pain Management: Compelling Market Opportunity

Globally, over 1.5 billion people (one in five individuals) suffer from chronic pain. In the US alone, studies suggest that chronic pain affects over 116 million people, i.e., over 30% of the population, a greater percentage than that of heart disease, cancer, and diabetes combined. In addition, The Institute of Medicine (IOM) of the National Academies notes that the annual economic burden associated with chronic pain exceeds $635bn, including medical treatment and lost productivity. In fact, 40 million doctor visits and 515 million lost workdays annually are attributable to chronic pain. Approximately 10% of chronic pain patients experience disabling pain that so affects their daily activities and quality of life that the consider suicide, as per IOM. Despite the treatment options, global prevalence is on the rise, reflecting a) an aging population, b) longer lifespans due to medical innovation, c) a higher number of failed surgeries, and d) increased awareness of pain.

Peer Comparison The Company’s biggest competitor is GW Pharmaceuticals with market

cap of ~$3bn. GW Pharma is focused on fairly complex and secure

elements like epilepsy and multiple sclerosis. Their timeline of the

product to the market is quite extensive, approximately 10 years;

whereas, TBP is following more accelerated approach and looking at

fairly less complex elements that exist in the society such as insomnia

and chronic disease. This forms the foundation for the orphan drug

designation that the Company has applied for. In the US, there are many

pharma companies that are doing R&D on the synthetic cannabis,

mainly due to regularity environment in the US where it is difficult for

the pharma companies to conduct R&D on biological or real cannabis.

Personal Care, 26%

Industrial Applications, 20%Consumer

Textiles, 17%

Food, 16%

Hemp CBD, 11%

Supplements, 8%Other Consumer

Products, 2%



TBP is a biopharmaceutical cannabis company that has taken a unique

approach to the medical cannabis market by advancing smokable

marijuana products. In addition, the Company is developing botanical

solutions with the goal of reaching into the biopharmaceutical market.

TBP is focused on products that are already being used in the medical

cannabis industry such as smoked cannabis and is simply applying the

pharmaceuticals protocol in the scientific research. We believe that TBP

is extremely under-valued at its current market cap of CAD87mn relative

to other companies. We believe that growth potential for the Company

is significant given that it will be able to leverage the favourable

regulatory structure in Canada to develop pharmaceutical products for

distribution across the world. We see potential for a significant re-rating

of the stock to levels of around two-three times the current share price.

Company Exchange Headquarter Market Cap Commentary

AIM: GWP UK USD3.0bn Has 2 products in its pipeline in stage 1 and stage 3 for epilepsy and MS and one approved product

OTCPK: CBIS US USD113.8m Conducts qualitative research on medicinal cannabis in a non-pharmaceutical manner. They have no products in clinical testing

NasdaqGM: INSY

US USD867.7m

Traditional pharma company that was awarded organ drug status for CBD for treatment of GBM. They do not have any current clinical trials

NasdaqGM: ZYNE

US USD253.1m Developing a synthetic THC transdermal patch as well as a synthetic CBD gel

NasdaqGM: CARA

US USD474.0m R&D on Cannabinoid preceptors. Utilizing synthetic compounds

Source: TBP, Alpha Deal Group, CapIQ

Tetra Bio-Pharma Inc.| 14 August 2017 Market Overview


Market Overview

Cannabis Overview Cannabis is a genus of flowering plants that includes two primary species, cannabis sativa and cannabis indica; both species have long been used for recreational and medicinal purposes. Cannabis sativa is known for its uplifting and energetic effect when ingested, whereas cannabis indica is known for its calming and relaxing effect when ingested. In addition to these primary species, many hybrid species of cannabis have been developed, resulting in different combinations of characteristics. Consumers may inhale, eat or topically apply the various forms of cannabis.

Cannabis contains at least 85 active compounds, known as “cannabinoids,” that act on cannabinoid receptors in cells located in the brain and throughout the central and peripheral nervous systems. The most abundant and naturally occurring cannabinoid is tetrahydrocannabinol, or THC, the psychoactive ingredient of cannabis responsible for the “high,” or euphoric feeling. The second most abundant cannabinoid is cannabidiol, or CBD, which produces a physical effect without the psychoactive effect associated with THC.

Benefits Reduces

Pain

Aids in

Sleep

Relaxes

Muscles

Increase

Energy

Fuels

Appetite

Uplifting

Effect

HYBRID

Hybrid strains can also be produced by growers

that mix benefits of both types in order to meet

the needs of patients

The majority of medical marijuana today is

hybrid indica.

Sativa contains higher levels of

THC and lower levels of

CBD/CBN cannabinoids

Sativa

Indica contains lower levels of

THC and higher levels of

CBD/CBN cannabinoids

Indica



Tetrahydrocannabinol

(THC)

A chemical in marijuana that produces its psychoactive effects. This chemical has been proven to also be a mild pain reliever and sleep inducer, as well as an antioxidant.

Cannabidiol (CBD)

One of the primary compounds extracted for medical marijuana. CBD has been proven to relieve convulsion, inflammation, anxiety, cough, congestion and nausea and it inhibits cancer cell growth.

Cannabinol

(CBN)

Thought to inhibit the spread of cancer cells. Also helps with insomnia, muscle spasms and fibromyalgia.

BETA- Caryophyllene

Non-psychoactive cannabinoid that is used to reduce inflammation.

Cannabigerol

Non-psychoactive cannabinoid that relieves intraocular pressure of the eye. Used in the treatment of glaucoma.

Source: Alpha Deal Group

Cannabis Products

Cannabis is available in numerous forms, such as flower (or bud), concentrates or extracts, edibles, topicals and pills. There are thousands of different strains of cannabis flower, with different aromas, flavors and potencies. Cannabis flower can be further processed into a variety of higher-potency concentrates. Historically, the most common form of cannabis concentrate was hashish. Today, in addition to hashish, there are several other popular forms of concentrated cannabis, including kief, oil, rosin and infused butter.


Kief Hashish CO2 Oil

Butane hash oil Rosin Infused butter



Ingestion Methods

Cannabis can be ingested by a variety of methods. Because inhaling cannabis provides an almost immediate effect, most consumers smoke or vaporize cannabis flower or concentrates. However, health conscious consumers often prefer to consume cannabis products in edible forms. Edibles can provide long-lasting relief of chronic symptoms such as pain, often making them as a preferred choice for medical consumers. Topicals are cannabis-infused lotions, balms and oils that are absorbed through the skin for localized relief of pain, soreness and inflammation.


Canadian Cannabis Market

Estimates suggest consumption of cannabis for recreation purposes in Canada to be around 770,000kg a year, implying a market worth around $5bn (CIBC World Markets, 2016). Additionally, Health Canada expects the medical marijuana market to be worth approximately $1.3bn (CIBC World Markets, 2016).

The original regulation that allowed patients to access medical marijuana in Canada was enacted in 2001 and called the Marihuana Medical Access Regulations (MMAR). The regulation allowed individuals to either grow their own, purchase from a designated grower, or purchase from Health Canada’s only licensed producer at that time, Prairie Plant Systems (now operating under Cannimed). Cost overruns and the inability to properly enforce the regulations led to a reworking of the legislation into the Marihuana for Medical Purposes Regulations (“MMPR”) which came into force in June 2013. This new legislative framework repealed the right to grow marijuana individually in favour of a system of larger commercial licensed producers and established stringent quality and security requirements.

The MMAR was repealed and replaced by the Marihuana for Medical Purposes Regulations (MMPR) which was enacted on April 1, 2014. The

Pre rolls (joints) Pipe Bong

Topicals Edibles Vaporizer



program allowed patients to possess dried marijuana flower/bud with a prescription issued by a practising Canadian physician. A government issued license is no longer required. Medicine is available from over 30 Health Canada approved, licensed producers (LP). Edibles and concentrates are not legal for sale to medical marijuana patients however Cannabis Oil has been recently approved to be sold by authorized LP’s.

On August 11, 2016 Health Canada introduced the Access to Cannabis for Medical Purposes Regulations (ACMPR) which, along with the licensed producers, would allow individuals the right to grow a limited amount of medical cannabis for their own consumption, or designate someone to grow it for them. All starter materials, including plants and seeds must still be purchased from a licensed producer and one must still obtain a prescription from their physician. The amount of authorized plants that one can grow at home will depend on the daily dose authorized by their physician but would typically range from two to 10 plants.

There are currently 52 licences issued by Health Canada for the production and/or sale of dried marijuana in Canada with a large concentration in Ontario (29) and British Columbia (12). Of the licences issued, there are 30 companies with a licence to produce & sell dried cannabis, 20 companies with a licence to produce only and 2 companies with a sell only licence. In addition, Health Canada has issued 22 Section 56 exemptions under the Controlled Drugs and Substances Act for the production and/or sale of cannabis oils. Aphria, Canopy Growth, Mettrum and Organigram have all received their amended licences from Health Canada to both produce and sell cannabis oils.

Decriminalization or Legalization

The current Canadian Government has officially recommend legalization and regulation of marijuana for recreational use. There is legislation being drafted that will allow marijuana to be sold in a similar way to alcohol, through the various provincial liquor control boards retail outlets. Some larger pharmaceutical retailers like Shoppers Drug Mart are applying for retail licenses to sell medical marijuana as well. Health Minister Jane Philpot to introduce a bill to legalize marijuana by the spring of 2017.

Key events in Canada’s marijuana industry

August 2016: Health Canada announced amendments to the MMPR regime following Allard decision on “fair access”

November 2016: Task force on marijuana wrapped up consultations and submit report

Spring 2017: Liberals introduced legislation to regulate recreational access and sale of marijuana



1H 2018: Expecting legislation to come into force creating national recreational marijuana market

US Cannabis Market

Legal cannabis sales in the US jumped 17%, to $5.4bn, in 2015 and are expected to grow by 25% this year, to $6.7bn, according to Arcview Market Research. By 2020 legal cannabis sales in the US are projected to hit $21.8bn.

In the US, there are currently 28 states (and Washington DC) that permit the medical use of cannabis, with California leading the charge in 1996. The legal and regulatory framework for the medical market is determined on a state-by-state basis and can vary considerably across regions. For the most part, states that have legalized medical marijuana allow for cannabis to be sold at authorized clinics and dispensaries (as opposed to through the mail in Canada), as long as the patient is registered with a public health department and in some cases carries a medical cannabis ID card.

Legalized recreational cannabis in the US is a relatively new

phenomenon, with Colorado and Washington becoming the first states

to pass legislation in 2012. Since then, Alaska, Oregon, California,

Massachusetts, Nevada have also legalized recreational marijuana;

however, marijuana still remains illegal on a federal level and remains

classified as a ‘Schedule 1’ narcotic by the DEA. To date, consumer

uptake has been substantial in legalized markets, with Colorado on track

to surpass.

Status of medical cannabis in the US

Source: NCSL, Alpha Deal Group



One in five Americans now live in states where pot is legal for adult use and the US market for recreational marijuana is twice the size of Canada. However, US producers face a major problem with their product: It is still on the federal government’s list of Schedule I narcotics, alongside heroin and LSD. Marijuana companies in the US are hamstrung by their federal outlaw status, which prevents them from receiving corporate tax breaks and exporting products across borders. Conflicting US laws also dissuade investment in research and development — which could help determine potential benefits and side effects — because patents are federally issued. That disconnect between state and federal laws presents Canadian companies with a unique competitive advantage. With US competitors weakened by regulatory risks and Canadian companies already leaders in the nascent global marijuana market, Canada’s marijuana based companies are well-positioned to become the pre-eminent marijuana multinationals.

Global Biopharmaceuticals Market

Global Biopharmaceuticals Market Size ($bn)

Source: Mordor Intelligence, Alpha Deal Group

In the year 2016, the global market for biopharmaceuticals is estimated/projected to be USD192.2bn and it is expected to reach USD291bn by the year 2021, while growing at a CAGR of 8.6% during the forecast period (2016-2021). Currently, North America is the biggest markets for biopharmaceuticals and is expected to remain the biggest market even during the forecast period (2016-2020). In the year 2016, the market for biopharmaceuticals in North America is estimated to be USD84.0bn and is expected to reach a value of USD118.3bn by the end of 2021 while growing at a CAGR of 7.1% during the forecast period (2016-2021).

Based on the product, the biopharmaceuticals market can be segmented into Monoclonal Antibodies, Recombinant Growth Factors, Purified Proteins, Recombinant Proteins, Recombinant Hormones, Synthetic

0

50

100

150

200

250

300

350

2015 2016 2017 2018 2019 2020 2021



Immunomodulators, Vaccines, Recombinant Enzymes and Others. Among these, the monoclonal antibodies happen to be the largest market segment with 37.31% market share, representing a market value of USD66bn, in the year 2015. North America was found to be the largest market shareholder with 44.5% market share in the year 2015, followed by Europe.

Biopharmaceuticals can be considered as one of the most sophisticated and ground breaking achievements in modern science. Unlike conventional pharmaceuticals that are synthesized by chemical synthesis, the biopharmaceuticals are synthesized through biological synthesis in living systems. Due to their biological origin, the biopharmaceuticals show much greater efficacy and efficiency when compared to conventional pharmaceuticals. Since the biopharmaceuticals act by modulation of physiological processes at a cellular level, they can effectively treat the disorders that cannot be treated by conventional pharmaceuticals. Biopharmaceuticals are the preferred choice of treatment for biomolecule deficiency disorders like the hormone deficiency or growth factor deficiency. Along with this, biopharmaceuticals can also be used for stimulating and suppressing immune reactions, which makes them ideal treatment option for autoimmune disorders. However, the most important contribution of biopharmaceuticals is in the field of targeted drug therapy and the use of biopharmaceuticals is literally revolutionizing the field of targeted drug.

Due to the huge advantages that biopharmaceuticals offer over conventional medicines, the use of biopharmaceuticals is continuously increasing. This, combined with the ability of biopharmaceuticals to treat previously untreatable diseases, has resulted in a huge market demand, which in turn has increased the profit margins for manufacturers. All these factors together are driving the biopharmaceuticals market. Given the huge profit margins and growth prospects, biopharmaceuticals have garnered the attention of several large drug development companies and this market has several major players like; AbbVie, Amgen, Pfizer, Takeda, Johnson & Johnson, Merck & Co, Sanofi Aventis, Roche, Genentech, Novartis and others.

Pain Management - the market opportunity Pain is categorized as either acute or chronic, and is graded by severity as mild, moderate or severe. Acute pain is usually caused by an injury resulting in nerve, tissue or bone damage. It is expected to decrease in severity with tissue healing. Postoperative pain is an acute injury that constitutes a specific part of acute pain market. Chronic pain last significantly longer (from weeks to years), and can result from either an acute injury or an ongoing disease, such as diabetes and related diabetic neuropathic pain.

Globally, over 1.5 billion people (one in five individuals) suffer from chronic pain. In the US alone, studies suggest that chronic pain affects



over 116 million people, i.e., over 30% of the population, a greater percentage than that of heart disease, cancer, and diabetes combined. In addition, The Institute of Medicine (IOM) of the National Academies notes that the annual economic burden associated with chronic pain exceeds $635bn, including medical treatment and lost productivity. In fact, 40 million doctor visits and 515 million lost workdays annually are attributable to chronic pain. Approximately 10% of chronic pain patients experience disabling pain that so affects their daily activities and quality of life that the consider suicide, as per IOM. Despite the treatment options, global prevalence is on the rise, reflecting a) an aging population, b) longer lifespans due to medical innovation, c) a higher number of failed surgeries, and d) increased awareness of pain.

What is Chronic Pain?

The International Association for the Study of Pain (IASP) defines chronic pain as pain lasting three months or longer, which is the time it takes for tissue to heal. The condition usually persists for at least six months and is most common in the back, but also in the arms, legs, head, or other locations. The sensation of chronic pain differs from acute pain, which is felt immediately after injury and subsides within three months.

Chronic pain causes abnormal signals to be transmitted through the spinal cord to the brain. Typically, pain originates at the source of an injury or inflammation and stimulates pain receptors to release chemicals. These chemicals travel directly to the spinal cord, where the message is carried to the thalamus (a message routing station located deep inside the brain), causing the sensation of pain.

Insomnia

Living with chronic pain can lead to other ailments such as insomnia, anxiety, depression and even loss of appetite. Insomnia can adversely affect one’s health and safety. It decreases physical performance and alertness and impairs memory and cognitive abilities. This can increase the risk of occupational and automobile injuries and prevent participation in activities that require sustained attention.

Studies have shown that cannabis can improve the quality and duration of sleep and help treat various sleeping disorders. A major cannabinoid found in cannabis, tetrahydrocannabinol (THC), effectively reduces the amount of time it takes those with insomnia to fall asleep (Cousens & DiMascio, 1973). One study found that regular consumers of oral THC fell asleep faster and without difficulty compared to non-consumers (Gorelick, et al., 2013). Another study found that cannabis, when administered acutely, eased the falling asleep process and increased the duration of stage 4 sleep (Schierenbeck, Riemann, Berger & Hornyak, 2008).

THC has also been shown to decrease the number of awakenings throughout the night (Cousens & DiMascio, 1973). An animal trial found



that a synthetic cannabinoid similar to THC was affective at attenuating seratonin-induced apnea by relaxing a muscle in the chin and tongue that has been implicated in the cause of the disorder (Calik, Radulovacki & Carley, 2014). Studies have also found that cannabinoids are effective for treating nightmares in military personnel with PTSD (Jetley, Heber, Fraser & Boisvert, 2015) (Fraser, 2009).

A cannabis-based medication, containing both THC and another major cannabinoid found in cannabis, cannabidiol (CBD), demonstrated in numerous studies to have positive effects on sleep (Russo, Guy & Robson, 2007). One study found that acute CBD treatments were effective in increasing total sleep time (Chagras, et al., 2013).

Cancer Pain

According to Global Pain Management, approximately 50% of cancer patients suffer from pain and more than 600,000 of these patients suffer from moderate-to-severe pain. In the USA, there are over 4 million cancer patients. Opioids such as codeine, oxycodone (OxyContin, Percocet), morphine, and ultimately fentanyl are the gold standard treatment for advanced cancer pain. Initially, physicians will try opioid naïve patients on short acting drugs and transition to long acting drugs when patients get to higher doses. Short acting drugs are often given on top of longer acting ones when a patient has breakthrough pain.

Opioids help by decreasing the intensity of pain signals, but many patients fail to achieve adequate relief. When this happens, physicians may try more aggressive treatment of the underlying cause of the pain such as nerve blocks. Further, opioids are generally considered not a good long-term solution for chronic pain.

Cannabinoids are currently used in cancer patients primarily for nausea/vomiting/appetite but to a degree for pain as well. Examples of synthetic THC therapies, mostly for appetite, include Marinol (dronabinol) and Cesamet (nabilone). Medical marijuana, which contains more than just THC, is used for both pain and appetite. Side effects such as dizziness and cognitive impairment at higher doses may limit some use of these drugs.

Tetra Bio-Pharma Inc.| 14 August 2017 Company Overview


Company Overview

Tetra Bio-Pharma (CSE: TBP, OTC: TBPMF) is engaged in the development of bio pharmaceuticals & natural health products containing cannabis and other medicinal plant based elements. The Company is focused on combining the traditional methods of medicinal cannabis with scientific validation. TBP plans to bring smokable, natural medical marijuana to market along with a number of other products targeting chronic pain, insomnia, PTSD, anxiety, and others.

TBP operates through following three divisions:

Source: TBP, Alpha Deal Group

PhytoPain Pharma Inc. (PPP)

PPP was formed for the development and commercialization of botanical based pharmaceuticals. It is a clinical stage drug development company engaged in the development of medication to alleviate symptoms related to pain, insomnia & anxiety disorders in patients suffering from cancer, other chronic and terminal diseases that cause uncontrolled pain or insomnia.

PhytoPain Pharma has a pipeline of products currently under development to treat a variety of ailments. The Company was formed in May 2016 and is owned 80% by TBP and 20% by its co-founders.

Agro Tek Health

Agro Tek Health is a manufacturing and distribution company. It is focused on hemp based natural health products and has four products under development ranging from topical pain relief, cardiovascular disease prevention, athletic performance, well being and skin care.



Grow Pros Cannabis Ventures Inc.

Grow Pros is focused on identifying market opportunities in the legal cannabis industry for development of pharmaceutical and over the counter consumer products within the legal cannabis industry. The Company is responsible for cultivation & sourcing of cannabis and industrial hemp on behalf of the TBP family of companies.

Owns a lease option on 190 acres of agricultural land, 45 minutes north of Ottawa

Signed a co-operative agreement with Delta 9 Bio tech to collaborate on licensing of the facility

Currently examining alternative licensing options for Pharma Development and sourcing legal supply for use in Pharma and NHP products

The Company was previously known as GrowPros Cannabis Venture Inc. and changed its name to Tetra BioPharma in September 2016. Founded in 2007, the Company is headquartered in Ottawa, Canada.



Key Partnerships

Partner Description

Algorithme Pharma is conducting Phase 1 clinical trials of PP001 in collaboration with Phyto Pain Pharma

Mcgill Univeristy is collaborating with Agro Tek and Grow Pros on an NSERC funded reaserch study to develop consumer products containing cannabanoids

Aphria is a publically traded producer of mecial cannabis under license from the Canadian Federal Government. Aphria has partnered with PPP for the production of medical cannabis for use in PP001

The National Sciences and Engineering Research Council of Canada have granted TBP subsidiary Grow Pros Cannabis with research funding related to the development of consumer products in collaboration with the university of McGill

Tetra Bio-Pharma and The New Brunswick Health Research Foundation are investing a combined $1mn, $500,000 each over five years to establish a Health Research Chair in Cannabis at the University of New Brunswick (UNB). The chair will focus on the study of biochemistry, medicinal use and pharmacology of cannabis. This research will expand UNB’s commitment to research and innovation in the field of natural product and biomedical, health and life sciences – adding to its reputation as a leader in natural products’ research

Tetra Bio-Pharma and IntelGenx Corp. have a definitive agreement for the development and commercialization of a drug product containing the cannabinoid Dronabinol XL - PPP002 for the management of anorexia and cancer chemotherapy-related pain

Tetra Bio-Pharma and Panag Pharma have a definitive agreement for two products, PPP003 and PPP004 for the development and commercialization of novel cannabinoid based formulations for the treatment of pain and inflammation. Combined total market potential of both products in the US in 2014 is estimated over US$5.5bn.




Recent Developments

24 July 2017: Appointed Bernard Fortier as CEO

Announced the appointment of Bernard Fortier as the new CEO of the company. Mr. Andre Rancourt, previous interim CEO will take the position as Chairman of the Board of Directors

19 July 2017: Signed LoI with Constance Therapeutics

Signed a Letter of Intent with Constance Therapeutics for the clinical development and commercialization of its medicinal cannabis extract products in Canada. The Agro Tek Health will work with Constance Therapeutics to bring these products to the Canadian medical marijuana market under a commercial license agreement

Tetra will enter into a licensing agreement with Constance Therapeutics to perform clinical research on the novel cannabis extract products initially focusing on their use in treating patients with brain cancer. Tetra will work closely with oncologists to evaluate the therapeutic benefit of these products according to pharmaceutical standards

07 Jun 2017: Completed Phase I safety report for PPP001

Submitted a report on the safety and pharmacokinetics of PPP001 (smokeable marijuana) to Health Canada. The Company will also launch Phase III clinical trial in collaboration with Quebec's leading medical cannabis clinic, Sante Cannabis. The Company expects to launch the Phase III clinical trial by Q4/17 - Q1/18

23 May 2017: Signed agreement with Panag Pharma

Signed a definitive agreement with Panag Pharma Inc. for the

development and commercialization of novel cannabinoid based

formulations for the treatment of pain and inflammation

19 Apr 2017: Announced plans for the joint distribution of dried medical cannabis Tetra and Aphria announced plans for the joint distribution of dried medical cannabis in the Maritime Provinces and Quebec. Both the companies will enter into a joint supply agreement, with Aphria supplying dried medical cannabis under its ACMPR license, and Tetra packaging the product using the manufacturing process developed for its in-progress clinical drug trial for PPP001 05 Apr 2017: Upgraded to OTCQB Commenced trading on the OTCQB venture marketplace, operated by OTC Markets Group, under the ticker symbol TBPMF. The Company also reiterated its strategy to create greater opportunity for its shareholders and attract new U.S. retail and institutional investors by providing transparency via this up-listing



03 Apr 2017: Signed agreement for the commercialization of a Dronabinol XL Tablet Signed a definitive agreement for the development and commercialization of Dronabinol, drug for the management of anorexia and cancer chemotherapy-related pain with IntelGenx Corp.

20 Mar 2017: Aphria exercises Warrants for Gross Proceeds of $1.3mn

Aphria has exercised its 5,000,000 warrants for aggregate gross proceeds of $1,300,000. The proceeds from the warrant exercise will be used to advance the clinical trials being developed in PhytoPain Pharma Inc.

06 Feb 2017: Entered into Distribution and Supply Agreement with Engen Medical Entered into a five (5) year exclusive Supply and Distribution agreement with Engen Medical Corporation. (“Engen”) for the Canadian distribution of its Munchies B Gone gum

26 Oct 2016: Acquired Intellectual Property for the Development of Natural Health Products TBP through its subsidiary, Agro-Tek has acquired multiple intellectual property assets related to the initiation of manufacturing and distribution of products for natural health care including products containing extracts or oils derived from Cannabis sativa 20 Oct 2016: Announced a private placement of $750,000 The Company is conducting a non-brokered private placement of up to 5,000,000 units at a price of $0.15 per unit for aggregate gross proceeds of up to $750,000 19 Oct 2016: Awarded NSERC Engage Grant partnership to Grow Pros MMP and McGill University National Sciences and Engineering Research Council of Canada (NSERC) has awarded an NSERC Engage Grant partnership to Grow Pros MMP, the Company’s subsidiary and Dr. Stan Kubow of McGill University. As per the partnership, MMP will establish a first research collaboration with McGill University to become leaders in the development and commercialization of Cannabis-based products 07 Oct 2016: Secured $2mn equity funding from Alumina Partners The Company entered into a non-binding agreement for a draw down equity facility of up to $2mn. Each Offering will occur exclusively at the option of the Company, throughout the 18-month term of the agreement 29 Sep 2016: Algorithme Pharma to conduct Phase I clinical trial in healthy human subjects PhytoPain Pharma has selected Algorithme Pharma, an Altasciences company, for the conduct of Phase I clinical trial in healthy human subjects



28 Sep 2016: Name changed from GrowPros to Tetra Bio-Pharma

GrowPros announced the change of name of the company to Tetra Bio- Pharma Inc. The Company’s shares are listed for trading on the Canadian Securities Exchange (“CSE”’) under the symbol “TBP”

06 Sep 2016: Submitted applications for Orphan Drug Designation for Delta-9-tetrahydrocannibinol and cannabidiol PhytoPain Pharma has submitted two applications for Orphan Drug Designation for delta-9-tetrahydrocannibinol & cannabidiol to FDA in the US. The product relates to the treatment of patients with Complex Regional Pain Syndrome Type 1 (CRPS1) and Central PostStroke Pain (CPSP)

Tetra Bio-Pharma Inc.| 14 August 2017 Product Portfolio


Product Portfolio & Timeline


TBP invests significant time and capital into a continuous and sustainable pipeline of products based on patient needs and driven by scientific R&D.

PPP001: Dried Cannabis Prescription Drug

PPP001 is the first smokeable cannabis drug product being developed for the treatment of late-stage cancer patients with pain

Successfully completed Phase I and is preparing for the launch of Phase III clinical trial Q4 17- Q1 18

During Phase I, the safety data met its expectations and the pharmacokinetic data demonstrated that the inhalation of PPP001 achieved the targeted plasma levels of THC that could potentially achieve pain relief in cancer patients

The Phase I trial provided the key information required by the medical experts of Sante Cannabis to design a Phase III clinical trial for cancer patients

Tetra and Aphria entered into a joint supply agreement, with Aphria supplying dried medical cannabis under its ACMPR license, and Tetra packaging the product using the manufacturing process developed for its in-progress clinical drug trial for PPP001

PPP002: Dronabinol XL- Sustained Release of THC

PPP002 is a Dronabinol-based mucoadhesive wafer designed to manage anorexia and cancer chemotherapy-related pain



Potential for significant reduction of side effects in patients and stability at room temperature

Both Veterinary & human indications -U.S. cancer pain market $5bn in 2018

Partnership with IntelGenx Corp.

PPP003: Dry Eye, Ocular Pain & Inflammation – Pure CBD

Cannabinoid based eye drops

Pre-clinical proof of concept completed

Nonclinical safety testing phase

First indication: Dry Eye – Most rapid indication for drug approval

Second indication: Ocular pain & inflammation

Market Potential USA: $3bn includes post-op inflammation, allergic conjunctivitis & inflammatory dry eye

Next steps: o CTA Phase I study in patients: Q4 2017 o Anticipated approval of NOC: 2020 o Partnership by Q2 2019

PPP004- Topical Cream – Pure THC

Pure THC topical cream – indicated for general neuropathic cream

Cannabinoid cream for the treatment of neuropathic pain

Market Potential USA: $2.5bn in 2014, over the counter sales of topical analgesics according to IMS

Partnership with Panag Pharma Inc.

Next steps: o CTA Phase I study in patients: 2018 o Anticipated approval of NOC: October 2021

NHP Products

AGT001*

Topical product for pain management

AGT002 product line-oral

Cardiovascular disease prevention, athletic performance, and well-being

AGT003 product line

Topical products for skin care

AGT004

Topical for women- quality of life



Upcoming Milestones

Product Milestone Timing

PPP001

Commence Phase III study Q4 2017/ Q1 2018

Establish commercial partnership 2018

Approval of NOC Q4 2019

PPP002

Commence Phase II study in cancer patients Q4 2017

Phase III clinical trials Q4 2018

Commercial partnerships Q1 2019

Approval of NOC 2020

PPP003

Commence CTA Phase I study Q4 2017/ Q1 2018

Partnership by Q2 2019

Anticipated approval of NOC 2020

PPP004

CTA Phase I study in patients 2018

Partnership signed by 2020

Anticipated approval of NOC 2021


Tetra Bio-Pharma Inc.| 14 August 2017 Management


Management Team

Bernard Fortier (Chief Executive Officer)

Bernard has been appointed as the CEO of the company on 24 July 2017. He is a graduate from the MBA program at l’école des Hautes Études Commerciales (HEC) in Montreal, with over 20 years of international experience in management and business development in the biopharma, specialized medical nutrition and medical fields. He has spent 5 years in the US working in the therapy and rehabilitation market, having graduated from the physiotherapy program at Laval University. He spent 8 years in various key commercial roles at Serono Canada (now EMD Serono) in the multiple Sclerosis field, including National Sales Manager for the Neurology business unit. In 2010, Bernard became the Country Manager for Nutricia Canada, the specialized medical nutrition division of Groupe Danone. He was recruited in 2012 to launch a new pharmaceutical company called Orimed Pharma. Through licensing deals and internal product development, the company’s portfolio grew from 3 to 10 products within 4 years.

Guy Chamberland (Chief Science Officer)

Guy is working as the Chief Science Officer of the Company. He has over 20 years of experience in the development of new drugs in the pharmaceutical industry (Canada and US). He has been involved in the clinical development of botanical medicines in the areas of anxiety, sleep, pain, depression, inflammation and wound healing. His experimental and clinical research has led him to file six patents (Patent granted on the synergy of phyto-ingredients.). His current research is focused on the development of pharmaceutical medical marijuana products.

Sabino Di Paola (Chief Financial Officer)

Sabino serves as the CFO of GrowPros. He has more than 10 years of experience in audit, finance and accounting while working as an auditor for international accounting firms such as PricewaterhouseCoopers and BDO Canada. He currently serves as the CFO of Everton Resources, Khot Infrastructure Holdings, Melkior Resources and Majescor Resources. He is a chartered professional accountant.

Robert Berchard (VP, Finance and Business development)

Robert has been appointed as VP, Finance and Business Development on

10 May 2017. As a consultant to the biopharmaceutical industry Mr.

Bechard provided start-up companies with assistance in the areas of

Tetra Bio-Pharma Inc.| 14 August 2017 Management


fundraising, business development and corporate development. During

his tenure at RBC Lifesciences Funds I&II, he was a member of the Senior

Management team that delivered top quartile returns in two separate

funds. RBC Lifesciences. During his 12-year term as a venture capitalist

he, made numerous investments, sat on the boards of more than 25 life

science companies and was actively involved in the negotiation of

numerous strategic alliances, partnerships, and outright sales to both

pharmaceutical and biotech companies.

Denis Courchesne (VP, Sales)

Denis has over 25 years’ sales and management experience in the retail

environment working for various companies such as Evian Spring Water

(Danone) and Pfizer Canada. In the last 15 years, he has been working in

both the pharmacy and health food channels where he successfully held

positions in Quebec as National Sales Manager. In his previous

companies, he rapidly reorganized the sales forces enabling the teams

to outperform their sales and profit objectives. Since 2010, he has been

working as an independent consultant helping various brands in many

aspects of their business such as marketing, strategy and goal

establishment while enabling them to solidify their presence at store

level.

Edward Miller (VP, IR and Corporate Communications)

Edward has over a decade of experience in the Biotech/Pharma

industry. Most recently, he served as Director, Investor Relations and

Corporate Communications at IntelGenx Corp. where he successfully

built their shareholder communications program, resulting in substantial

growth in their website traffic and social media hits. He joined Paladin

Labs in 2001 where he held various positions including Manager,

Investor Relations where he successfully built their investor relations

program. Following his tenure at Paladin Labs he moved into the role as

an investor relations consultant working for Christensen IR, heading

their life science practice and as an independent where he has built

award winning investor relations programs. He is the Past President of

CIRI (Canadian Investor Relations Institute) Quebec Chapter where he

served two terms (2009 – 2012) and (2005 – 2007). He will be

contributing to improving the company’s visibility in the capital markets

and leveraging his international experience at broadening its

shareholder base.

Tetra Bio-Pharma Inc.| 14 August 2017 Board of Directors


Board of Directors

Andre Rancourt (Chairman)

Andre is serving as the Chairman of the company. He was previously the interim CEO of Tetra Biopharma from September 2016 to July 2017.He is highly experienced in management, start-up, and commercial strategies for human products. He is also a consultant on several commercial strategy committees including FIA and IRZC. He has tremendous practical experience that provided him with expertise in many fields ranging from metals to the complex area of human and animal natural health products. Over the last ten years, he worked as a consultant to re-organize the operations of companies on behalf of several venture capital investment funds. He has an important network of contacts in the human and animal commercial market in multiple countries. He studied at the Seminaire Sherbrooke from 1969 to1971 and subsequently the University of Sherbrooke (Physical Education). He also successfully completed training in Marketing WarFare.

Andre Audet (Director)

Andre serves as the Director of the Company. He was previously the Chairman of the Board. He has more than 25 years of experience in the management and financing of public junior mining companies. He is also the President of Pan Caribbean Minerals, Interim CEO of Majescor Resources and Chairman & CEO of Everton Resources. He co-founded Mazorro Resources and served as its CEO & President. He serves on the board of various other companies. He holds a Bachelor of Commerce with major in Finance from the University of Ottawa and Bachelor's Degree in Geology from University Of British Columbia.

Robert Brouillette (Director)

Robert Brouillette founded Brouillette Charpentier Fournier (now BCF)

in 1992. In 2005, he founded Brouillette + Partners, a lawyers, patent

and trademark agents firm aiming to help builders of innovative

companies. Mr. Brouillette is a former Chairman of the executive

committee of the intellectual property national section of the Canadian

Bar Association. He was a member of the Board of Directors of Hydro-

Québec between 1998 and 2001, Hydro-Québec Capitech and Hydro-

Québec Industech between 2001 and 2007. He also serves on the Board

of Directors and is an advisor at Simsmart Technologies Inc., Newtrax

Technologies, Kinova, Novidev Santé, Intelia, Crowdco and other

technology related companies. He is currently chairman of the Board of

Directors of Anges Québec and member of the Board of Directors of

Capital Anges Québec. He also served as an angel investor in over

Tetra Bio-Pharma Inc.| 14 August 2017 Board of Directors


twenty startups. His professional path has not only made him an

experienced lawyer, but also an entrepreneurship driven and accessible

man.

Bill Cheliak (Director)

Bill is CEO of Panag Pharma, a Canadian based bio-tech company focused on the development of novel cannabinoid based formulations for the treatment of pain and inflammation. Dr. Cheliak has over 20 years of experience as an entrepreneur having helped establish companies in a wide variety of life science fields, including vaccines, human genetics, oncology, neurology and anti-infective drug development and CRO services. He brings extensive deal making experience with the pharmaceutical industry. He currently serves as a Director for Solarvest (SVS). He is Vice Chair of the Government of Canada’s Networks Centres Excellence (NCE) Standing Selection Committee and Chair of the NCE Monitoring Committee.

Carl Merton (Director)

Carl is the CFO of Aphria. He has over 20 years of financial and business experience, including 10 years’ experience as a CFO for public companies involved in the capital markets. He joined Atlas Tube Inc., as Vice-President, Special Projects. After assisting in the sale of Atlas Tube, Mr. Merton became the CFO of Reko International Group Inc. He was elected by shareholders as a member of the inaugural Board of Directors of Aphria Inc. Approximately one year later, he resigned as a member of the Board and joined Aphria as its CFO. In his role as CFO, he is responsible for communication with all stakeholders and is a member of the executive management team responsible for the strategic direction of Aphria, as well as leading all acquisition discussions, budgeting, financing, financial reporting and internal controls. He is a Chartered Professional Accountant, a Chartered Accountant and is a Fellow of the Canadian Institute of Chartered Business Valuators. He holds a B.Com. Hon. in Sports Administration from Laurentian University, and has served as a past Chair of both the CICBV and the International Association of Professional Business Valuators.

Tetra Bio-Pharma Inc.| 14 August 2017 Financials


Tetra Bio-Pharma (CSE:TBP and OTC: TBPMF) Financials

All numbers are in (CAD 000's)

Operating Expenses Nov-15 Nov-16

Management fees 99 348

Travel and promotion expense 110 106

Professional fees 200 96 Stock based copensation 73 125 Listing expense 117 -

Impairment of land 21 14

Others 29 361

Total expenses 649 1,051

Other income

Interest and other (income)/loss (4) (56)

Assigment of letters of intent (50) -

Foreign exchange loss 0 1.7

Net Loss 595 997

Balance Sheet

Current assets

Cash and cash equivalents 20 1,219 Other current assets 6 154

Total Current Assets 26 1,372 Deferred building costs 14 - Intangible assets - 216

Total Assets 40 1,588

LiabilitiesAccounts payable 270 192

Total Liabilities 270 192

Equity

Share capital 603 2,511 Warrants 126 503

Accumulated deficit (959) (1,565)

Shareholders equity (230) 1,449

Non Controlling Interest - (53)

Liabilities and Shareholders equity 40 1,588

Cash flow statement

Net loss for the period (595) (997)

Cash flow from operating activities (217) (942)


Investing activities

Cash flow from investing activities 202 -

Cash flow from investing activities 202 -

Financing activities

Cash flow from financing activities (0) 2,140.8

Cash flow from financing activities (0) 2,141

Cash flow for the period (16) 1,199

Cash at the beginning of the period 36 20

Cash and cash equivalents at end of period 20 1,219

Annual

Tetra Bio-Pharma Inc.| 14 August 2017 Financials


All numbers are in (CAD 000's)

Operating Expenses Feb-16 Feb-17

Research and development - 283

Stock based compensation - 480

General and administrative expense 84 321

Total expenses 84 1,084

Other income

Interest and other (income)/loss (28) -

Assigment of letters of intent - -

Foreign exchange loss 0.0 11

Net Loss 56 1,095

Balance Sheet

Current assets

Cash and cash equivalents 1,219 3,083

Other current assets 154 385

Total Current Assets 1,372 3,468

Intangible assets 216 214

Total Assets 1,588 3,682

Liabilities

Accounts payable 192 131

Total Liabilities 192 131

Equity

Share capital 2,511 4,931

Warrants 503 942

Contributed surplus 338 729

Accumulated deficit (1,903) (2,941)

Shareholders equity 1,449 3,661

Non Controlling Interest (53) (109)

Liabilities and Shareholders equity 1,588 3,682

Cash flow statement

Net loss for the period (56) (1,095)

Others (89) 264


Investing activities

Purchase of fixed assets (3) -

Cash flow from investing activities (3) -

Financing activities

Cash flow from financing activities 245 2,696

Cash flow from financing activities 245 2,696

Cash flow for the period 97 1,865

Cash at the beginning of the period 20 1,219

Cash and cash equivalents at end of period 117 3,083

3 months ended

Tetra Bio-Pharma Inc.| 14 August 2017 Share Price

33 Copyright © Alpha Deal Group, LLC 2014 All rights reserved

Target Price and Recommendation History

0

0.2

0.4

0.6

0.8

1

1.2

1.4Tetra Bio-Pharma Inc. 1-Year Stock Perfomance

Tetra Bio-Pharma Inc.| 14 August 2017 Disclaimer


Disclaimer

This material has been prepared by Alpha Deal Group, L.L.C. This document is for information and illustrative purposes only and does not purport to show actual results. It is not, and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action. Opinions expressed herein are current opinions as of the date appearing in this material only and are subject to change without notice. Reasonable people may disagree about the opinions expressed herein. In the event any of the assumptions used herein do not prove to be true, results are likely to vary substantially. All investments entail risks. There is no guarantee that investment strategies will achieve the desired results under all market conditions and each investor should evaluate its ability to invest for a long term especially during periods of a market downturn. No representation is being made that any account, product, or strategy will or is likely to achieve profits, losses, or results similar to those discussed, if any. No part of this document may be reproduced in any manner, in whole or in part, without the prior written permission of Alpha Deal Group, L.L.C, other than to your employees. This information is provided with the understanding that with respect to the material provided herein, that you will make your own independent decision with respect to any course of action in connection herewith and as to whether such course of action is appropriate or proper based on your own judgment, and that you are capable of understanding and assessing the merits of a course of action. Alpha Deal Group, L.L.C does not purport to and does not, in any fashion, provide broker/dealer, consulting or any related services. You may not rely on the statements contained herein. Alpha Deal Group, L.L.C shall not have any liability for any damages of any kind whatsoever relating to this material. You should consult your advisors with respect to these areas. By accepting this material, you acknowledge, understand and accept the foregoing.

Research Dissemination Policy

Alpha Deal Group, LLC makes its research products available in electronic and/or printed formats and simultaneously distributes them to its institutional clients who are entitled to receive them. The Action Notes are distributed by email, and are available in PDF form on Thomson Reuters Eikon. All research is available by password to entitled institutional clients at https://www.alphadealgroup.com

https://www.alphadealgroup.com/

Tetra Bio-Pharma Inc.| 14 August 2017 Disclaimer


Analyst Certification

All of the views expressed in this report accurately reflect the personal views of the responsible analyst(s) about any and all of the subject securities or issuers. No part of the compensation of the responsible analyst(s) named herein is, or will be, directly or indirectly, related to the specific recommendations or views expressed by the responsible analyst(s) in this report.

Tetra Bio-Pharma Inc.s22.q4cdn.com/.../doc_presentations/analyst/Tetra-Bio-Pharma-0814.pdfAlpha Deal...

Documents

Transcript of Tetra Bio-Pharma Inc.s22.q4cdn.com/.../doc_presentations/analyst/Tetra-Bio-Pharma-0814.pdfAlpha Deal...