cse ticker: gw...this presentation does not purport to be all inclusive or contain all the...
TRANSCRIPT
Investor Presentation
January 2019
CSE ticker: GW
VALENS GROWORKS
DISCLAIMER
This Presentation contains forward-looking statements and forward-looking information. Often, but not always, forward-looking statements can be identified by the use of words or phrases or state that certain actions,
events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking statements involve known and unknown words such as “plans”, “expects” or “does not expect”, “is expected”,
“estimates”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and risks, uncertainties and other factors which may cause the actual results, performance or achievements of the
Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements and information. Examples of such statements include: (A) the financial
forecast of the Company; (B) the intention to grow the business and operations of the Company; (C) anticipated timing for the availability of the Company’s products to market and expected sale prices; (D) expected
growth in the number of users of medical and recreational marijuana anticipated; and (E) the expansion of the Company’s business into other revenue streams. Actual results and developments are likely to differ, and may
differ materially, from those expressed or implied by the forward-looking statements contained in this Presentation. Such forward-looking statements are based on a number of assumptions which may prove to be
incorrect, including, but not limited to: the ability of the Company to obtain necessary financing; the ability to complete a going public transaction; the ability to satisfy the requirements of a stock exchange; the economy
generally; consumer interest in the products of the Company; competition; and anticipated and unanticipated costs. These forward-looking statements should not be relied upon as representing the Company’s views as of
any date subsequent to the date of this Presentation. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in
forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be
accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking
statements and information contained in this Presentation are expressly qualified in their entirety by this cautionary statement. The forward-looking statements and information included in this Presentation are made as
of the date of this Presentation and the Company assumes no obligation to update such forward-looking statements to reflect new information, subsequent events or otherwise unless required by applicable securities
legislation.
NOTICE TO RECIPIENT
This investment is suitable only for sophisticated investors for whom an investment does not constitute a complete investment program, who do not require immediate liquidity for their investment and who fully
understand and are willing to assume the risks involved. An investment may be considered to involve a substantial degree of risk, and an investor could lose all or a substantial amount of his or her investment. This
document is not an offer to sell (or solicitation of an offer to buy) any interest in the Company. These materials may not be used or relied upon for any purpose other than as specifically contemplated by a written
agreement. The materials may not be circulated outside of the recipient’s organization, publicly referred to, or disclosed, in whole or in part, without express written permission. This presentation does not purport to be all
inclusive or contain all the information that a prospective investor may require to fully evaluate an investment in the contemplated transaction. Prospective investors should conduct their own thorough investigation and
due diligence before making an investment.
2
CSE ticker: VGW
VALENS GROWORKS
One of the largest premium cannabis extraction companies in North America
and the first colab facilitating cannabis product development for licensed producers globally
3
VALENS GROWORKS 4THE VALENS ADVANTAGE
THE WORLD IS OUR MARKET
Health Canada licensed (multiple), EU GMP certification
pending, Hemp License pending, Nutraceutical License
pending –setting Valens up for every servicing and
consumer product opportunity, globally.
DEVELOPMENT
Through one of our Dealer’s
Licenses we hold the ability to
perform research and clinical trials
to better understand Cannabis and
it’s benefits, and to lead the way in
purposeful product offerings
around the world.
BIG PICTURE BRANDING
The Valens brand is recognized for
delivering the most science driven,
responsibly tested, sustainably derived
products and services in the market.
INDUSTRY-BACKED
The experience and reputation of the
team at Valens speaks for itself. We are a
preferred partner of Canopy and other
reputable industry players.
PRODUCT FLEXIBILITY
We have the ability to produce a wide variety of
products, allowing Valens to capitalize on
multiple markets from medical to recreational to
preferential method of consumption.
SEED TO SALE TRANSPARENCY AND CONTROL
Different strains, compounds and growing techniques
provide different desired effects in finished products.
By controlling our supply from the source right through
to processing, we’re able to ensure our products
qualities are maximized and always purpose-driven.
PROPRIETARY PROCESSING
Our processing methods have been customized
to ensure that the end product does not lose the
valuable complexity of compounds responsible
for the spectrum of desired effects that are often
lost in the refining process.
VALENS GROWORKS
Health Canada licensed cannabis extraction center
• Extraction center with cultivation and research capabilities
• Proprietary, customized cannabis extraction processes
• Ability to import and export wholesale cannabis products
world-wide
• Third party cannabis product development
• One of the largest capacities to extract in Canada and growing
• 25,000 sq ft plant to facilitate additional extraction production
• EU GMP Certification pending for global export anywhere
VALENS AGRITECH LTD.
VALENS GROWORKSVALENS LABS LTD.Health Canada licensed cannabis extraction center
• Health Canada Dealers Licensed for testing and analysis
• Leading edge research laboratory
• Service provider specializing in the testing of metals, residual solvents,
pesticides, mold, terpenes and cannabinoid profile
• ISO 17025 accreditation, first lab to be accredited in Canada for a
cannabis matrix
• Named a “Center of Excellence in Plant Based Science” by $115B
medical instruments company Thermo Fischer Scientific
• Setting the domestic standard in Health Canada-required third party
product verification as well as globally.
VALENS GROWORKSVALENS REVENUE STREAMS
EXTRACTION
RESIN REFINED OILProcessing from
flower to crude oil
Processing from flower to
oil ready for marketProcessing and packaging
of oil for market
Fee for service Fee for service
or
Revenue shareRevenue share
OTHER REVENUE SOURCES
• Lab Testing Services
• Direct Sales
• Export Sales
• 3rd Party Research &
Development
• Product Development
ABILITY TO CREATE
CUSTOM, FLEXIBLE
AGREEMENTS
WHITE LABEL
PRODUCTS
7
VALENS GROWORKS
EDIBLES
• Snack edibles – Trail mix, protein bars, jerky, sweets,
etc.
• Infused prepared meals
• Food additives – Cooking oils, honey, peanut butter
• “Just add cannabis” – beverage containers with
cannabis oil preloaded in the top, just like the
vitamin waters
• with the powder dispenser on top
• Drinks – alcoholic or non-alcoholic
• Oral sprays
OIL/TINCTURES
• High THC/CBD tinctures
• Vaporizer Cartridges and Pens
• Capsules
• Concentrates
TOPICALS
• Balms/creams/salves
• Bath soaks/salts
• Skin care products
• Body sprays
• Lubricants
• Essential oils
• Sublingual patches
• Transdermal patches
EXTRACTION: THE FOUNDATION OF OPPORTUNITY 8
VALENS GROWORKS
SōRSE emulsion technology surrounds oils, transforming the entire solution into water-compatible forms
All of this means you can add cannabis to products including beverages without that "weed" taste or smell.
BREAKTHROUGH ITEMS TO NOTE
• Shelf stable for over 180 days (not proven anywhere else)
• Zero cannabis taste, color or odor
• Provides effective, consistent dosing
• Lower dosage sufficient due to increase in bioavailability when consumed
• Faster onset and offset, making it the safer and more trusted edible option
WHAT THIS MEANS FOR VALENS
• Value-add in our oil services process to provide clients with water-soluble cannabis ready for mixing in
liquids by the client
• Powder product ready to go to market that consumers can mix with any liquid of their own
• Exclusive Canadian rights to all Tarukino beverages including the #1 selling cannabis beverage in
Washington, three years in a row, Happy Apple Cider.
SoRSE TECHNOLOGY 9
VALENS GROWORKS
INTERNATIONAL OPPORTUNITIES
C A N A D A - R x 2 0 0 1
R e c r e a t i o n a l 2 0 1 8
C O L O M B I A - R x 2 0 1 7
B R A Z I L - R x 2 0 1 6
P E R U - R x 2 0 1 7
G E R M A N Y - R x 2 0 1 7
M A L T A - R x 2 0 1 8
A U S T R A L I A - R x 2 0 1 7
N E W Z E A L A N D - R x 2 0 1 7
J A M A I C A - R x 2 0 1 7
10
A C T I V E L Y P U R S U I N G I N T E R N A T I O N A L L I C E N S I N G & D I S T R I B U T I O N
GLOBAL LEGAL MARIJUANA
MARKET EXPECTED TO REACH
146.4 BILLION USD
BY 2025-REPORT BUYER, APRIL 2018
GLOBAL
MARKET
EUROPEAN MEDICAL AND
RECRECATIONAL MARKETS
EXPECTED TO GROW TO €116.4
BILLION BY 2028- THE EUROPEAN CANNABIS REPORT,
PROHIBITION PARTNERS
AS OF JUNE 7, 2018, CANADA IS
THE FIRST MEMBER OF THE G7 TO
LEGALIZE CANNABIS FOR
RECREATIONAL USE ACROSS THE
COUNTRY
C U R R E N T N E G O T I A T I O N S F O R
CSE ticker: VGW
VALENS GROWORKS
STRATEGICPARTNERSHIPS
C H A P T E R T W O
11
VALENS GROWORKS
INITIATING COVERAGE Altacorp Capital
VALENS GROWORKS
TYLER ROBSON
CEO / DIRECTOR
With 15+ years grassroots experience, Mr.
Robson was Chief Operating Officer of the
Company until taking the reins as Chief
Executive Officer in May 2017, as well as
remaining Director of Operations at Valens
AgriTech Inc.
SCOTT YOUNG
IR& BUSINESS DEVELOPMENT
Mr. Young’s focus at Valens is corporate
finance initiatives. Mr. Young has spent the
past 15 years working in the capital market
sectors of Canada, the United States and
Europe.
CHRIS BUYSEN,
MPAcc, CPA, CA
CFO
Mr. Buysen has over 15 years of diverse
financial experience working as a senior
financial executive with many public and
private organizations in a wide range of
industries including retail, pharmacy and
consumer packaged goods.
CHANTEL POPOFF
VP
In 2007, Ms. Popoff was appointed Director
of Operations, then Director of Marketing for
a fast-growing Western Canadian retail
pharmacy chain. In 2013 she joined a natural
health food company as Director of
Marketing and was promoted to President in
2016.
EVERETT KNIGHT, CFA
EVP OF STRATEGY/INVESTMENTS
Mr. Knight has managed one of the only
institutional investment mandates focused
on the cannabis industry where he analyzed
and toured hundreds of cannabis companies.
His experience in the sector began in 2014
and since that time, has accumulated a
thorough understanding of the industry,
regulations, subsectors and the companies
involved in this fast growing space.
MANAGEMENT
QUINN SHISKIN
HEAD OF PRODUCTION
Mr. Shiskin’s career emanates around
production as a multi-ticketed Red Seal
tradesman; where he worked in a variety of
industries including mining, oil sands, LNG,
pulp and paper, and in the construction
industry. With these skills, he entered the
extraction industry where he revolutionized
the process along the way.
13
VALENS GROWORKS
L O C A T I O N
2 3 0 C A R I O N R D .
K E L O W N A , B R I T I S H C O L U M B I A
C A N A D A V 4 V 2 K 5
C O N T A C T U S
E V E R E T T @ V A L E N S G R O W O R K S . C O M
( 7 7 8 ) - 7 5 5 - 0 0 5 2
S C O T T @ V A L E N S G R O W O R K S . C O M
( 7 0 5 ) 8 8 8 - 2 7 5 6
14
W W W . V A L E N S G R O W O R K S . C O M