corporate presentation€¦ · corporate presentation. tsx-v: eve | qtcqb: eevvf. . december 2019....

EveCannabis.caTSX-V: EVE

CORPORATEPRESENTATION

October 2019TSX-V: EVE | OTCQB: EEVVF

CORPORATE PRESENTATION

TSX-V: EVE | QTCQB: EEVVF

www.evecannabis.ca December 2019

IMPORTANT: YOU MUST READ THE FOLLOWING The information contained in this presentation has been prepared by Eve& Co Incorporated (“Eve & Co” or the “Company”) and containsconfidential information pertaining to the business, operations and assetsof the Company. The information contained in this presentation (a) isprovided as at the date hereof and is subject to change without notice,(b) does not purport to contain all the information that may be necessaryor desirable to fully and accurately evaluate an investment in theCompany, and (c) is not to be considered as a recommendation by theCompany that any person make an investment in EVE. An investment inthe securities described herein is speculative and involves a number ofrisks that should be considered by a prospective investor.

This presentation is confidential and is being provided to you solely foryour information and may not be reproduced, in whole or in part, in anyform or forwarded or further distributed to any other person. Anyforwarding, distribution or reproduction of this presentation in whole or inpart is unauthorized. By accepting and reviewing this presentation, youacknowledge and agree (i) to maintain the confidentiality of thispresentation and the information contained herein, (ii) to protect suchinformation in the same manner you protect your own confidentialinformation, which shall be at least a reasonable standard of care, and(iii) to not utilize any of the information contained herein except to assistwith your evaluation of a potential investment in the Company.

CAUTIONARY NOTE REGARDING FUTURE-ORIENTED FINANCIAL INFORMATIONTo the extent any forward-looking information in this presentationconstitutes “future-oriented financial information” or “financial outlooks”within the meaning of applicable Canadian securities laws, suchinformation is being provided to demonstrate the anticipated marketpenetration and the reader is cautioned that this information may not beappropriate for any other purpose and the reader should not place unduereliance on such future-oriented financial information and financial

outlooks. Future-oriented financial information and financial outlooks, aswith forward-looking information generally, are, without limitation, basedon the assumptions and subject to the risks set out below under theheading “Cautionary Note Regarding Forward-Looking Information”. Eve& Co Incorporated’s actual annual production, sales, distribution,financial position and results of operations may differ materially frommanagement’s current expectations and, as a result, the Company’sannual production, income, expenses and net income may differmaterially from the profiles provided in this presentation. Suchinformation is presented for illustrative purposes only and may not be anindication of the Company’s actual annual production, financial positionor results of operations.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION: This presentation includes forward-looking information and forward-looking statements within the meaning of Canadian securities laws.Statements containing the words “believe”, “expect”, “intend”, “should”,“seek”, “anticipate”, “will”, “positioned”, “project”, “risk”, “plan”, “may”,“estimate” or, in each case, their negative and words of similar meaningare intended to identify forward-looking information. Forward-lookinginformation involves risks and uncertainties including, but not limited to,the Company’s anticipated business strategies, anticipated trends in theCompany’s business and anticipated market share, that could causeactual results or events to differ materially from those expressed orimplied by the forward-looking information, general business, economicand competitive uncertainties, regulatory risks including risks related tothe expected timing of EVE’s licenses and expansions, market risks,risks inherent in manufacturing and agricultural operations as well asother general risks of the cannabis industry. Such statements are basedupon the current beliefs and expectations of the Company’s managementand are subject to significant business, social, economic, political,regulatory, competitive and other risks, uncertainties, contingencies andother factors. Many assumptions are based on factors and events that

are not within the control of Eve & Co Incorporated. Actual future resultsmay differ materially from historical results or current expectations.

These risks, uncertainties and assumptions could adversely affect theoutcome and financial effects of the plans and events described herein.In addition, even if the outcome and financial effects of the plans andevents described herein are consistent with the forward-lookinginformation contained in this presentation, those results or developmentsmay not be indicative of results or developments in subsequent periods.Although Eve & Co Incorporated has attempted to identify important risksand factors that could cause actual actions, events or results to differmaterially from those described in forward-looking information, there maybe other factors and risks that cause actions, events or results not to beas anticipated, estimated or intended. Forward-looking informationcontained in this presentation is based on the Company’s currentestimates, expectations and projections, which the Company believesare reasonable as of the current date. The Company can give noassurance that these estimates, expectations and projections will proveto have been correct. You should not place undue reliance on forward-looking information, which is based on the information available as of thedate of this presentation. Forward-looking information contained in thispresentation is as of the date of this presentation and, except as requiredby applicable law, the Company assumes no obligation to update orrevise them to reflect new events or circumstances. Historical statementsshould not be taken as a representation that such trends will bereplicated in the future. No statement in this presentation is intended tobe nor may be construed as a profit forecast. Additional informationrelated to EVE, including risks and uncertainties, can be found on theCompany’s SEDAR profile at www.sedar.com.

Disclaimer

2 TSX-V: EVE · EveCannabis.ca

Caution Concerning Forward Looking Statements

TSX-V: EVE | OTCQB: EEVVF | evecannabis.ca

http://www.sedar.com/

3 TSX-V: EVE · EveCannabis.caTSX-V: EVE | OTCQB: EEVVF | evecannabis.ca3

• EVE & Co is located in Strathroy, Ontario and listed on the TSX-Venture Exchange (EVE) as well as the OTCQX Best Market (EEVVF)

• The facility holds a Standard Cultivation Licence, a Standard Processing Licence, and is authorized to sell plants, seeds, dried & fresh cannabis to provincially/territorially authorized distributors/retailers under the Cannabis Regulations

• Receives an amendment to the licence from Health Canada for 780,000 sq.ft. expansion on December 2019, permitting the use as a grow area

• Anticipated annualized production run rate of 50,000 kg of cannabis


CURRENT FACILITY• Existing greenhouse facility (original

facility and Phase 1 expansion per diagram) holds Standard Cultivation and Standard Processing Licences

EXPANSION• Phase 2 expansion completed in August

2019• 780,000 sq.ft. expansion• Construction budget: ~$34 millionCOMBINED CAPACITY• 1,000,000 sq. ft. total greenhouse space

• Anticipated annualized production run rate of 50,000 kg of cannabis on completion of licensed facility expansion


JUNESales licence granted

JUNEConstruction commenced on Phase 2 expansion

JULY Construction completed of additional flowering space

SEPTEMBERExtraction licencegranted

DECEMBERApproval of second flowering room & packaging room

DECEMBERApproval to commence sales to provincially authorized retailers and distributors

AUGUST780,000 sq. ft. expansion completed

DECEMBERAnticipated licensing for sale of extracts, topicals and edibles

DECEMBERHealth Canada approval of expansion

Q1 2020Anticipated launch of suite of CPG Products

CURRENT FACILITY PHASE 2 EXPANSIONPHASE 1 EXPANSION


RECREATIONAL MARKET (CANADA)• Sales will be made directly to

authorized distributors and retailers• Approved for distribution in

Newfoundland & Labrador, Manitoba and Saskatchewan and supply agreements with Ontario & B.C.

• Additionally offering white label solutions for other LPs and brands

MEDICINAL MARKET (CANADA)• Product to be sold directly to

other LPs• Ongoing discussions for long-

term supply agreements

MEDICINAL MARKET (EXPORT)• Company has entered into three

supply agreements with distributors for pharmaceutical and other products in Germany


SUPPLY AGREEMENTS

TSX-V: EVE | OTCQB: EEVVF | evecannabis.ca7

• Eve will be balancing brand awareness with pricing when selling Cannabis in the Canadian Recreational Market

• Eve currently offers dried flower in various sizes in addition to pre-rolled products

• A fully automated packaging system maintains high quality control and reduces costs

SALES STRATEGY -NATIONAL


SUPPLY AGREEMENTS

Eve is continuing to build upon the three existing German supply agreements to access the EU cannabis market through established German operators. Eve is pursuing requisite EU GMP licensing.

SALES STRATEGY -INTERNATIONAL


Source:

https://mjbizdaily.com/global-cannabis-germany/https://investingnews.com/innspired/europe-medical-cannabis-cbd-cannabidiol/https://www.analyticalcannabis.com/articles/if-legalized-germanys-recreational-cannabis-market-could-be-worth-85-billion-by-2028-experts-312020

MARKET DATA

FUTURE MARKET

Germany Population

80+million

Total flower Imports for Pharmacy

Dispensing in 20183,000 kg

Imports Serve an Estimated60,000

Medical Patients

Estimated Medical Cannabis Patients in Germany by 2024 will

exceed 1 Million

Estimated Medical Cannabis Market

Value by 2028 will be €7.7 billion

Estimated Recreational Cannabis Market Worth

by 2028 will be €8.5 billion

https://mjbizdaily.com/global-cannabis-germany/

https://investingnews.com/innspired/europe-medical-cannabis-cbd-cannabidiol/

https://www.analyticalcannabis.com/articles/if-legalized-germanys-recreational-cannabis-market-could-be-worth-85-billion-by-2028-experts-312020


Products

EveCannabis.caTSX-V: EVE | OTCQB: EEVVF | evecannabis.ca9

We have been building strategic partnerships with established, trusted brands to further our consumer-packaged goods program in all product categories with

anticipated launches scheduled for Q1 & Q2 2020.

CURRENT CANNABIS 2.0Q1 & Q2 2020

Plants Edibles

Dried Flower Extracts

Pre-Rolls Topicals

PRODUCT DEVELOPMENT


As at: November 1, 2019Note: * Fully diluted and in the money enterprise valueSource: S&P Capital IQ, FRC

EV*/ 2021E EBITDA


31.1x

17.8x

51.6x

10.3x5.9x

3.6x5.5x

3.2x 2.7x 1.5x 1.2x

AuroraCannabis Inc.

CronosGroup Inc.

Hexo Corp. Aphria OrganiGramHoldings Inc.

The SupremeCannabisCompany,

Inc.

CannTrustHoldings

WeedMD Inc. Tilt Holdings Eve & CoIncorporated

(1)

Harvest OneCannabis Inc.

Average – 10.3x


Source Grow Flower Track & Trace

Harvest Drying Process/Packaging Distribution


• Original founders have 61+ years of combined growing experience

• The Rombouts Families are involved in large scale greenhouse growing with a total of 50 acres under poly/glass and immediate expansions underway to increase to over 3M sq. ft of total greenhouse production.

• Experience in growing thousands of varieties of plants including vegetable, flowering, clone and Cannabis production as well as distribution throughout North America to large retail chain stores.

• Knowledge of scalability, greenhouse expansion, best greenhouse practices and greenhouse systems

• Greenhouse connections and knowledge of state-of-the-art greenhouse systems for knowledgeable spending

• Honours Biology with Specialization in Plant Biology, Legal Studies Option and BA, University of Waterloo

• 20 years as previous lead grower• First Canadian producer of algae products for

the nutraceutical market, recipient of Agri Innovations Award

• Development of Quality Assurance programs for nutraceutical and Cannabis production 10 years

• Health Canada Approved Quality Assurance Person (QAP)

• Composed Standard Operating Procedures (SOPs) and ensured Good Production Practices (GPP) and facility compliance

• Regulatory Affairs, application submission and Health Canada communication

• Senior Person in Charge (SPIC) ensuring ongoing security, QA and GPP compliance to the Cannabis Act

• 25 years Business experience in brand development, business development and expansion, marketing, advertising, in greenhouse, agricultural, nutraceutical, Cannabis, and real estate industries.

• 5 years experience with Ministry of Agriculture and Food


Grow Team Greenhouse Experience

Agricultural Experience

Cannabis Experience

Education and Certifications Position

Melinda Rombouts 22 26 5 BSc. Honours Biology, Plant Biology, and BA, University of Waterloo

Former Grower, Grow team, consultation, QAP, SPIC

Dave Burch 15 41 10 University of Guelph Agricultural courses, Pesticide Handling Certification

Grower, Management

Tom Jobson 8 7 8 Agricultural Diploma, University of Guelph, Certified Crop Advisor, Licensed Exterminator

Lead Grower, IPM

Bindall Dabhi 1 6 1 BSc. Agriculture, Anand Agriculture University, India. Graduate Certificate, Environmental Management, Canadore College. Agricultural Business Management, Certificate, Fanshawe College.

Pest Specialist

Michelle Hoogstra 1 10 1 Agricultural Experience Assistant Grower

Mike Reaume 1 1 Pesticide Safety Course Assistant Grower

Andrew Stewart 7 5 2 BS Plant, Soil & Insect Science, University of Massachusetts: Amherst

Pest Team

David DiRisio 6 2 BSc. Earth Science, Brock University Chemical Application Specialist

Total Team Experience 61 95 30



MELINDAROMBOUTSChief Executive Officer and Director

Prior to founding Natural MedCo, Ms. Rombouts was the president, manager and owner of numerous large scale businesses in the agricultural, food, real estate and pharmaceutical industries and through these gained experience and knowledge in marketing, advertising, finance, project management and business development.

Ms. Rombouts has grown hundreds of varieties of plants and through this experience, she has gained extensive plant knowledge crucial to the growth of a healthy plant and high quality product. She also has experience with Quality Assurance, GPP program and Standard Operating Procedures development, implementation and improvement with strict adherence to the regulations governing the pharmaceutical industry.

Ms. Rombouts holds a BA and BSc from the University of Waterloo with specialization in Plant Biology and Legal Studies.

LANDON ROEDDINGChief Financial Officer

Mr. Roedding brings over 15 years of experience in accounting, financing, and business development within the public markets and has a demonstrated ability to manage financial and operational challenges while managing a dynamic and growing business. Previously, Mr. Roedding was Controller at Blue Goose Capital Corp., where he led the financial planning, reporting, restructuring and human resource functions. Previously, Mr. Roedding held positions as Director, Financial Reporting at Kinross Gold and Senior Manager of Financial Reporting at SherrittInternational Inc. and, prior to those positions he spent 8 years at PricewaterhouseCoopers LLP in their assurance practice.

Mr. Roedding is a Canadian Chartered Professional Accountant and holds an a Honours Economics and Accounting degree from Wilfrid Laurier University. Mr. Roedding also serves on the Board of Directors of Project C.A.N.O.E., a not for profit charity focused on serving youth facing systemic or mental health barriers.

EXPERIENCED MANAGEMENT

IVAN ROSS VRÁNAVice President – Government Relations and Business Development

Ivan Ross is widely recognized as an industry expert in the field of cannabis for medical and recreational purposes. His experience in this sector dates back to his time with Health Canada when he helped develop the Government of Canada’s position regarding the use, production, distribution and regulation of cannabis for medical purposes. Since that time he has worked as a consultant with H+K Strategies (National Cannabis Practice) were he offered clients counsel and support in investor relations, communications, regulatory review, strategic partnerships, identification and outreach related to market opportunities in other countries and government affairs work at the federal, provincial and municipal levels. In the Spring of 2019, Ivan Ross joined Eve & Co. and is leading the company’s government relations and business development efforts.

Ivan Ross worked for the federal government for more than 18 years. He started his career at the Patented Medicine Prices Review Board as a policy analyst and went on to work at Health Canada where his work focused on pharmaceutical and cannabis policy at both the federal and provincial levels. During a two-year sabbatical, Ivan Ross worked for Innovative Medicines Canada as the director of government affairs, providing strategic insight and analysis. Since 2012, Ivan Ross has been working exclusively in the cannabis industry.

Ivan Ross is bilingual, a trained facilitator and holds a masters in public administration from Carleton University and a bachelor of arts (honours) in history from the University of Ottawa.



BOARD OF DIRECTORS

MELINDAROMBOUTSCEO and Director

Prior to founding Natural MedCo, Ms. Rombouts was the president, manager and owner of numerous large scale businesses in the agricultural, food, real estate and pharmaceutical industries and through these gained experience and knowledge in marketing, advertising, finance, project management and business development.

Ms. Rombouts holds a BA and BSc from the University of Waterloo with specialization in Plant Biology and Legal Studies.

She also has experience with Quality Assurance, GPP program and Standard Operating Procedures development, implementation and improvement with strict adherence to the regulations governing the pharmaceutical industry.

Mr. Moeller lives in Wichita, Kansas and is the head of EQ Development, a company focused on private equity investments. With a background in lodging, commercial and residential real estate development, Mr. Moeller also has extensive experience in business operations across a wide variety of segments.

Mr. Moeller has broad experience in the cannabis industry with investments in Canada and the Colorado market.

Mr. Moeller graduated with honors and received his B.A. in United States History from the University of Kansas.

T.A. CLARK MOELLER IV

Director

Mr. Sood is the managing director of Signal 8 Limited. Mr. Sood has been a founder of and the principal investor in several businesses in emerging markets and currently serves as Executive Chairman and Director of Galane Gold Ltd. (TSXV:GG) and Blockchain Power Trust (TSXV:BPWR) and as a director of Feronia Inc. (TSXV:FRN), and ICC Labs Inc. (TSXV:ICC).

He was the founder and Chief Executive Officer of Navina Asset Management Inc., a global asset management firm headquartered in Toronto, Canada. Mr. Sood led the investment activities of Navina and its predecessor company, Lawrence Asset Management Inc., from its founding in 2001 until he sold the firm in 2010.

RAVI SOODDirector

Ms. Murphy has been a senior financial executive for more than 20 years, including Chief Financial Officer positions at PricewaterhouseCoopers, Harry Winston Diamond Corporation and Wahta Mohawks First Nation. Additionally, Ms. Murphy served as Mayor of the Township of Muskoka Lakes and Councillor for the District of Muskoka.

Beginning her career in audit at Coopers and Lybrand, Ms. Murphy returned to become CFO of the Financial Advisory Practice, where she was a key member of the practice administration, including the merger of two of the top global accounting firms to create PricewaterhouseCoopers.

As CFO of Harry Winston Alice had full responsibility for overseeing the financial reporting of its global entities, its compliance with NYSE listing requirements and Sarbanes Oxley, and the financial due diligence of its global M&A activities.

ALICE MURPHYDirector

Ms. Mogk-Edwards’ previous career spans over 35 years with one of the largest single buyers of beverage alcohol in the world – the Liquor Control Board of Ontario (the “LCBO”). As the Vice President, Products, Sales and Merchandising, she led a high performance team of 100 category and inventory specialists, and directed sales of over $5B. She also developed and led VINTAGES, the fine wine department at the LCBO, to annual sales from $23M to over $500M. As a face of the LCBO, Shari managed her “Shari’s Picks” program, promoted responsible consumption, regularly represented the LCBO at trade, television and radio events, and was a key note speaker at countless events.

At her new consulting company, Ms. Mogk-Edwards is now focused on breaking down barriers and developing businesses. She shares her knowledge and experiences through her personal approach.

SHARI MOGK-EDWARDS

Director



CAPITAL STRUCTURE

SHAREHOLDER OWNERSHIP # OF SHARES % OF SHARES

Melinda Rombouts and Affiliates 84,800,000 29.5%

Clark Moeller Holdings 17,309,728 6.0%

Ravi Sood 453,979 0.2%

Widely Held 185,303,465 64.3%

Total 287,867,172

Warrants 37,565,000

Options 18,740,307

Total F/D 344,172,479

Cash $8.5M

(1) Data as at October 7, 2019TSX-V: EVE | OTCQB: EEVVF | evecannabis.ca


• December 16, 2019 Eve & Co Announces Health Canada Approval of 780,000 Square Foot Flowering Room

• December 3, 2019 Eve & Co Announces Successful Open House of Green House Expansion

• November 28, 2019 Eve & Co Completes First Shipment of Dried Flower Products to the Province of Saskatchewan

• November 27, 2019 Eve & Co Announces Financial Results for the Three and Nine Months Ended September 30, 2019

• November 22, 2019 Eve & Co Announces Exclusive LOI with Colio Estate Wines

• November 21, 2019 RBC Canadian Women Entrepreneur Awards Recognizes Eve & Co’s Melinda Rombouts as a ‘One to Watch’ Award Winner

• November 18, 2019 Eve & Co Announces New Sales Channel: The Province of Saskatchewan

RECENT NEWS



Eve is centered around

wellness,empowerment,

and education.

– three key elements that drive our business every day.

As a female-founded and female-led licensed

producer, Eve isn’t just a brand we own –

it’s who we are.


CONTACT

MELINDA ROMBOUTSCEO

[email protected]

+1 (855) NAT-MEDS

+1 (855) 628-6337

LANDON ROEDDINGCFO

[email protected]

+1 (855) NAT-MEDS

+1 (855) 628-6337

+1 (647) 473-4947

CONTACT

LANDON ROEDDINGCFO

+1 (855) NAT-MEDS+1 (855) 628-6337

MELINDA ROMBOUTSCEO

+1 (855) NAT-MEDS+1 (855) 628-6337

[email protected]

corporate presentation€¦ · corporate presentation. tsx-v: eve | qtcqb: eevvf. . december 2019....

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