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Q1
20
19
Investor Presentation
2/22TSXv: NDVAI N V E S T O R P R E S E N T A T I O N
The information contained herein, together with any
amendments or supplements and any other information
that may be furnished by the company, includes
forward-looking information. Such information is based
on assumptions as to future events that are inherently
uncertain and subjective. The company makes no
representation or warranty as to the attainability of such
assumptions, including the completion of a financing
or as to whether future results will occur as projected.
It must be recognized that the projections of the
company’s future performance are necessarily subject
to a high degree of uncertainty, that actual results can
be expected to vary from the results projected and
that such variances may be material and adverse.
Prospective investors are expected to conduct their
own investigation with regard to the company and its
prospects. This presentation does not constitute an offer
to sell or a solicitation of an offer to buy any security.
Forward Looking Statement
3/22TSXv: NDVAI N V E S T O R P R E S E N T A T I O N
• Award-winning cannabis products
• State-of-the-art GMP-standard indoor production facility
• Experienced Master Grower with award-winning strains and loyal 1000+ patient base
• Experienced management team
Sales have begun through the Ontario Cannabis Store (OCS.ca)
Fully funded expansion to 40,000 square feet drives revenue growth
70 tonne extraction facility to produce distillate for INDIVA, Bhang, Deep Cell and other products
Capitalization: Basic Shares Outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83.0mm Warrants: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28.3mm Options: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.7mm Convert: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.9mmFully Diluted SharesOutstanding . . . . . . . . . . . . . . . . . . . . . . . . . . 122.9mm
Balance Sheet:Cash (Sept. 30, 2018) . . . . . $24.3mm
Management and Insider Ownership . . . . . . . . . . . . . . . . . . . . . . . 17%
ExecutiveSummary
4/22TSXv: NDVAI N V E S T O R P R E S E N T A T I O N
For sale at OCS.ca
Capacity:1,000kg annual flower production
Capacity:3,000kg annual flower production
**Farm Gate Store
*3 New flower rooms
* Pending Health Canada approval** Pending AGCO approval
*5 additional flower rooms
*Extraction facility operationalCapacity: 70 tonnes biomass,4 million grams distillate
Processing & commercial kitchen operational
OCS Product Call
Introduction of Vape Pens, Bhang Chocolate, Chewable Gems, Ruby Sugar & Salt
Q12019
Q22019
Q32019
Q42019
2019 Roadmap
Introduction of Dry Flower, Tinctures & Gel Capsules
5/22TSXv: NDVAI N V E S T O R P R E S E N T A T I O N
INDIVAInternational Brands
Our aim is to bring our family of global cannabis brands to Canadians, and as marijuana laws liberalize in Canada and internationally, Indiva will use its Canadian operations as a platform to open new markets for its products.
Global Family of Brands
POWERED BY INDIVA POWERED BY INDIVA
6/22TSXv: NDVAI N V E S T O R P R E S E N T A T I O N
INDIVAProducts Stand for Quality
7/22TSXv: NDVAI N V E S T O R P R E S E N T A T I O N
Products Powered by INDIVA
BhangTM is the most
awarded line of
cannabis chocolate
bars available in
the world.
8/22TSXv: NDVAI N V E S T O R P R E S E N T A T I O N
Products Powered by INDIVA
RubyTM sugars and
salts are ‘Flexible
Edible’ cannabis
products created to
easily incorporate
into your everyday
food and drink.
9/22TSXv: NDVAI N V E S T O R P R E S E N T A T I O N
SIZE AND MAKEUP OF THE CANADIAN RECREATIONAL MARKET
According to the Deloitte Survey, the size of the Canadian recreational cannabis market could be as much as $8.7 billion per year, or similar to the size of the Canadian spirit market.
Daily Weekly Monthly Occasionally Non-Consumers Potential Customer
17%
61%
7%4%
8%
3%
ANNUAL CANNABIS USERS AND CONSUMPTION Source: PBO
1600
200
250
1200
800
375
10 20
Once Less than once a month 1-3 Times per month At least once a week Daily
600
Users (Thousands) Consumption (Metric Tonnes) Source: Deloitte, PBO
Recreational Cannabis
$7-10 Billion Domestic Market
Opportunity!
* 2.6 million Canadians admit to use in last 12 months
* Represents <5% of total consumption
10/22TSXv: NDVAI N V E S T O R P R E S E N T A T I O N
GROWTH RATE OF MEDICINAL CANNABIS USERS IS HIGHER THAN EXPECTED
Health Canada projected 450,000 patients will be using cannabis at $1.3 billion annual revenue by 2024.
Actual Registered PatientsHealth Canada’s Projected Registered Patients
Re
gis
tere
d P
ati
en
ts
450,000
400,000
350,000
300,000
250,000
200,000
150,000
100,000
50,000
2024202320222021202020192016 2017 20182015
September 2018: registered patients exceeds Health Canada’s 2023 projection
POTENTIAL MARKET Source: Health Canada, Statistics Canada, Canadian Community Health Survey, medicalmarijuana.ca
Mul
tiple
Sc
lero
sis
Epile
psy
Can
cer
Low
BM
I
Seve
re P
ain
Ris
k of
D
epre
ssio
n
Mig
rain
e H
eada
ches
Inso
mni
a
Anx
iety
Art
hriti
s
Hyp
erte
nsio
n
Life
Str
ess
(Ele
vate
d)
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
18,086 physicians have authorized patient access to medicinal marijuana
342,103registered patients in total to date(~80% from ON and AB)
Growing Demand for MedicalCannabis
11/22TSXv: NDVAI N V E S T O R P R E S E N T A T I O N
YT0
0 0
1
4
2
3
2
4
NT
AB
SK
MB QC
NL
PE
NS
NB
NU
73ON
32BC
912
Number of licences issued by province
Source: Mackie Research, 420intel.com
Supply of Cannabis
OVER-supply of dry flower just around the corner!
Licensed Producer Production Capacity Tonnes
Aurora Cannabis ............................................... 700 Canopy Growth ...............................................500 Aphria ............................................... 255 Tilray ...............................................200 The Green Organic Dutchman .................................................. 95 Cronos Group .................................................135 OrganiGram .................................................. 113 HEXO ................................................ 108 CannTrust ................................................ 105 Emerald Health Therapeutics ................................................ 100
––––––––––– ––––––––––––– ––––––––––––– ––––––––––––– –––––––––– TOTAL (metric tonnes) ............................................2,411
12/22TSXv: NDVAI N V E S T O R P R E S E N T A T I O N
FINANCE & CORPORATE DEVELOPMENT ––––––––––––––––––––––––––––––––––––––––––––––––––––––
Niel MarottaPresident & CEO, Director, Founder
• Managed over $1 Billion across several industries Involved in capital raises and M&A transactions exceeding $1 Billion
FINANCE––––––––––––––––––––––––––––––––––––––––––––––––––––––
Jennifer Welsh, CPAChief Financial Officer
• Managed a global finance team for eight years as Corporate Controller of a TSX listed company
• Former consultant for a publicly traded LP
CORPORATE DEVELOPMENT––––––––––––––––––––––––––––––––––––––––––––––––––––––
Jamie Riff, P.EngVP Corporate Development
15+ years experience in capital markets and institutional sales
CREATIVE & BRAND DESIGN––––––––––––––––––––––––––––––––––––––––––––––––––––––
Tom BorowiczChief Brand Officer
• Over 30 years of experience in marketing, branding, print/digital advertising and design with Fortune 500 companies
PRODUCTION––––––––––––––––––––––––––––––––––––––––––––––––––––––
Pete YoungMaster Grower, Founder
• Grow Team: 15+ years of experience producing medicinal strains for hundreds of patients
• International recognition and multiple product awards
PROJECT MANAGEMENT––––––––––––––––––––––––––––––––––––––––––––––––––––––
Jose Laurentino
• 20+ years in agricultural project development including indoor and greenhouse expertise
Talented & Experienced Team
13/22TSXv: NDVAI N V E S T O R P R E S E N T A T I O N
POSITIONING
At Indiva our roots run deep and we stand for the destigmatization and normalization of cannabis for medicinal and recreational use.
Our logo symbolizes experience, strength, know-how practical knowledge, as well as a strong foundation for investment and growth. It is respectful of the cannabis movement without the clichés of cannabis counter-culture.
Our clean aesthetic and pallet strike the perfect balance between mature yet accessible, contemporary but still classic enough to be lasting, and holistic without looking like products that only belong in a health food store.
Family of brands: partnerships with award winning brands which will be “Powered by INDIVA”
Our Corporate Identity
14/22TSXv: NDVAI N V E S T O R P R E S E N T A T I O N
WHOLESALE STRATEGY
• Sales through the Ontario Cannabis Store
• Sales teams active in multiple provinces
• Farm gate sales
• Responding to provincial RFPs and retailers
• Access to award winning US products
MARKETING
• SEO, E-store, blog, and social media campaigns launched in 2017; mailing list of up to 3,000 clients
• Packaging developed and focus group tested
• Engaging events team and keynotes at cannabis, wellness, cultural, and community events across Canada
• Featured interviews in key publications
COMPASSION COMMUNITY RELATIONS
• Established relations with prominent and experienced members of the compassion community
• We will offer familiar strains and an overall respectful and familiar patient experience
CustomerAcquisitionStrategies
We are for twenty. You buy. You help
15/22TSXv: NDVAI N V E S T O R P R E S E N T A T I O N
Production Facility
16/22TSXv: NDVAI N V E S T O R P R E S E N T A T I O N
40,000 square foot building purchased February 2019
Extraction and processing facility under construction
Retail store to be built on site
London Facility
• Cultivation
• Oil Extraction
• Processing
• Product Manufacturing
• Retail
17/22TSXv: NDVAI N V E S T O R P R E S E N T A T I O N
London Facility
Fully Funded
Expansion
Flower
Flower
Indiva Store
Oil Extraction and Processing
Veg
Dry 2
Trim 2
Utility Room
Extraction
Flower
Flower
Flower
Flower
Flower
Flower
Mother
Pump
Str/Rec
Lab
Storage
Pack
Dry
Trim
Admin
18/22TSXv: NDVAI N V E S T O R P R E S E N T A T I O N
Domestic Expansion LARGE SCALE CULTIVATION / OFFTAKE
• Currently evaluating facilities for production and offtake partnerships
• INDIVA’s criteria: access to infrastructure, experienced production partner, ability to fund retrofit out of existing cash resources, measured expansion over time
International Expansion INTERNATIONAL DISTRIBUTION & PRODUCTION
• Acquisition of license in Denmark creates gateway to Europe
• Agreements with US cannabis products companies to use Canada to produce and export internationally
Expansion Path
• Flowers
• Oil
• Products
For FAQs and contact information visit www.indiva.com.
@indivalife