cse:oils | otcqb:oilff · 2/24/2020 · cse:oils | otcqb:oilff this presentation has been prepared...

CSE:OILS | OTCQB:OILFF

CSE:OILS | OTCQB:OILFFNextleaf Solutions Ltd. 604-283-2301 ext. 201

[email protected]


This presentation has been prepared by Nextleaf Solutions Ltd (“Nextleaf” or the “Company”). It does not purport to contain all the information that a prospective investor may require in connection with any potential investment in the Company. You should not treat the contents of this presentation, or any information provided in connection with it, as financial advice, financial product advice or advice relating to legal, taxation or investment matters. No representation or warranty (whether express or implied) is made by Nextleaf or any of its officers, advisers, agents or employees as to the accuracy, completeness or reasonableness of the information, statements, opinions or matters (express or implied) arising out of, contained in or derived from this presentation or provided in connection with it, or any omission from this presentation, nor as to the attainability of any estimates, forecasts or projections set out in this presentation. The securities described herein, if any, have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws, and may not be offered or sold within the United States or to, or for the benefit of, U.S. persons (as defined in Regulation S under the U.S. Securities Act) except in compliance with the registration requirements of the U.S. Securities Act and applicable state securities laws or pursuant to exemptions therefrom. This presentation does not constitute an offer to sell or a solicitation of an offer to buy of any of Nextleaf securities in the United States. This presentation may contain "forward-looking information" as defined in applicable Canadian securities legislation. All statements other than statements of historical fact included in this release, including, without limitation, future operating margins, future production and processing, processing results, and future plans and objectives of Nextleaf, constitute forward looking information that involve various risks and uncertainties. Forward-looking information is based on a number of factors and assumptions which have been used to develop such information but which may prove to be incorrect, including, but not limited to, assumptions in connection with the continuance of Nextleaf and its subsidiaries as a going concern, general economic and market conditions, price of biomass, the accuracy of production estimates, and the performance of Nextleaf future operations. There can be no assurance that such information will prove to be accurate and actual results and future events could differ materially from those anticipated in such forward-looking information. Important factors that could cause actual results to differ materially from Nextleaf’sexpectations include but are not limited to: changes in economic conditions or financial markets; increases in costs; litigation; legislative, environmental and other judicial, regulatory, political and competitive developments; and technological or operational difficulties. This list is not exhaustive of the factors that may affect our forward-looking information. These and other factors should be considered carefully, and readers should not place undue reliance on such forward-looking information. For additional information with respect to risk factors applicable to Nextleaf, reference should be made to Nextleaf continuous disclosure materials filed from time to time with securities regulators, including, but not limited to Nextleaf’s CSE Listing Statement. The forward-looking information contained in this release is made as of the date of this release. Nextleaf does not intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required by applicable law.

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CAUTIONARY STATEMENT


NEXTLEAF SOLUTIONS

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Nextleaf Solutions (“OILS”) is Canada’s most innovative cannabis extractor, developing technology for distilling THC and CBD oils for the wholesale market.

13 issued patents for extraction and distillation of cannabinoids.

Licensed industrial-scale extraction plant located in Greater Vancouver.

IP Licensing Toll Processing Private Label

commercializes its intellectual property portfolio through:

CSE:OILS | OTCQB:OILFF 4

Oversupply of Flower

Over 400,000 kg dried cannabis in inventory industry-wide.

19 M sq. ft. of outdoor cannabis cultivation licensed after 1 year, versus 13 M sq. ft of indoor cultivation licensed after 6 years.

Lack of efficient processing options for cannabis and hemp farmers.

Demand for extraction driven by cannabis 2.0 products and the limited shelf life of dried cannabis sitting in inventories.

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MARKET OPPORTUNITY


Nextleaf Labs Cannabis Extraction Peers

Staff Required for Primary Extraction :

Daily Throughput: 300 kg biomass / 12 hr 300 kg biomass / 12 hr

COMPETITIVE ADVANTAGE

Closed loop chilled-ethanol extraction with inline filtration, winterization, solvent recovery & remediation

CO2 extraction with batch winterization and solvent recovery

Our phase 1 extraction plant can process the same amount of biomass into a refined oil as 10 large CO2 extractors

VS

15x larger footprint15x smaller footprint

True Scalability


Health Canada Standard Processing Licence & Research Licence.

Proprietary closed loop chilled-ethanol extraction and distillation plant.

Processing capacity: 300 kg per shift of biomass into refined oil.

Manufacturing of bottled oils, vape carts, & bulk cannabinoids.

Lab for analytical testing, R&D, and formulation.

30 minutes from Vancouver International Airport.

15M sq. ft. of cannabis cultivation within 60 minutes.

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NEXTLEAF LABS


BOTTLED & VAPABLE OILS

BULK CBD / THC

Refined and distilled oil for edibles and drinks

Capacity to fill 3,000 vape cartridges per hour

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B2B PROCESSING

Supplying B2B partners with CBD and THC oils and formulated products through our private label program.

Providing toll processing of cannabis and hemp biomass into purified oils through fee for service or revenue share.

Private Label & Toll Processing

Toll Processing

BULK CBD / THC WITH NANO DELIVERY

Proprietary, fast acting cannabinoids for edibles and drinks

The future of cannabis is in products that are manufactured with standardized, refined THC and CBD oils.


OILS has been issued 13 patents covering the most efficient methods for producing high-purity CBD and THC distillate

THINK: PREMIUM VODKA VERSUS MOONSHINE

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PATENT PORTFOLIO Protecting IP Globally

Nextleaf Patent Portfolio

USA: 6 Issued Patents

CANADA: 3 Issued Patents

AUSTRALIA: 3 Issued Patents

COLOMBIA:1 Issued Patent

13 issued patents

50+ patents pending

Issued Patents

Pending Patents

OILS pending to issued patent success rate: 100%Life science industry patent success rate: <50%


Nano Delivery for Cannabis Beverages

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Nextleaf’s proprietary nanoemulsification formulation for water-soluble cannabinoids

Rapid onset time of under 10 minutes

Consistent dosing & delivery of CBD and THC used for drinks and edibles

INTELLECTUAL PROPERTY

Beverage Supply Agreement: BevCanna (CSE:BEV)

Nextleaf supplies BevCanna with water-soluble CBD and THC

Osoyoos, B.C. facility has an annual production capacity of 210M bottles

“We’ve spent three years on the intellectual property behind our beverage formulation to ensure that it has a great flavour and the onset is akin to alcohol.”

- President, Canopy Growth ($WEED)

Barriers facing cannabis beverages:


Commercializing Our Patent Portfolio

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LICENSING IP

IP licensing an efficient way to monetize our

patent portfolio

Nextleaf licenses select non-core patents to cannabis processing equipment distributor, projected to generate over $3MM in 2020 royalties. Revenue commenced in Dec. 2019

Licensing agreement with BevCanna for cannabis beverages

“The patent arms race for cannabis has already begun. 7 of Canada’s top 10 cannabis-patent holders are multi-national pharmaceutical companies (Pfizer, GW Pharma, Merck)“


Paul Pedersen, MBACEO, Director

Charles Ackerman, CPA, CACFO, Director

Ryan KoCo-Founder, CTO

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EXECUTIVE OFFICERS

Finance and corporate leadership

Mergers and acquisitions, divestitures and capital raises

15 years of industry experience

Authored 13 issued patentsfor cannabis extraction, filtration, and distillation

6 years of industry experience, including Canada’s first legalcannabis oil producer

Founder of NASDAQ:TWER

Fred Bonner, MSc, P.GeoNon-Executive Director

BOARD OF DIRECTORS

Tim Gillis, CPA, CANon-Executive Director

22 Years experience in public service with government

Community engagement and large-scale project navigation

Former CEO of STI Technologies

Healthcare and Pharma Technology Expertise

Completed $345MM in M&A over Career

Sherry Boodram, PhDNon-Executive Director

CEO of CannDelta Inc, a leading cannabis regulatory compliance consulting firm

Former Health Canada Regulatory Compliance and Enforcement Officer for medical cannabis program


Tom Ulanowski, MSc, C.ChemPresident, Nextleaf Labs

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Taran GreyDirector of Intellectual Property

STRATEGIC OPERATIONS SCIENCE & INNOVATION

Krupal Pal, PhD, P.EngEngineering Manager

Former QAP and QPIC at Canna Farms

Chartered Chemist, HBSc. in Analytical Chemistry & MSc. in Biogeochemistry

Process engineering since 2005

Oils and extraction technologies expertise

Patent and trademark expert

Previously, managed IP portfolio at Phillips Electronics

Natasha Bartzila, BScQuality Assurance

Xuan Jia, PhDQuality Control Associate

REGULATORY & QUALITY ASSURANCE

David Novitski, PhDQuality Control Specialist

Chemical Engineer

Former EU GMP Qualified person in Greece

PhD, Electrochemistry

Former Quality Control in renewable energy sector

PhD, Analytical Chemistry

Research and Teaching Assistant at SFU


National Research Council of Canada Industrial Research Assistance Program (IRAP)Development of processing techniques for removing chlorophyll and other impurities from crude oil extract

Sustainable Development Technology Canada Nextleaf is part of SDTC consortium with TerrameraReplacing toxic chemical pesticides with pesticides derived from natural products

UBC & BCIT NSERC GrantMethods for repurposing incinerated cannabis waste biomass

Langara University NSERC Grant Langara holds Health Canada Research Licence for its analytical chemistry and molecular biology laboratory Consortium has major NSERC grant application under review

Government Grants

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RESEARCH & DEVELOPMENT


Completed build out of our extraction & distillation plant1

IP licensing projected over $5MM in royalties

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Full year of legal derivative products in Canada

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3 Generate revenue from toll processing & private-label 5

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Over 400 tonnes of dried cannabis biomass across Canada, increasing

ROAD TO PROFITABILITY

Creating new IP, improving existing IP, & continuing to monetize our patent portfolio


Nextleaf Solutions trades on the CSE under the ticker symbol OILS and on the OTCQB under the ticker OILFF.

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CAPITALIZATION TABLE:

Basic Shares Outstanding 109,060,544

Stock Options & Warrants (Exercisable at CAD$0.35-$50) 15,190,948

Warrants (Exercisable at CAD$0.70) 24,685,714

Fully Diluted Shares Outstanding 148,937,206


13 PATENTS ISSUED50+ PATENTS PENDING

LOW COST OIL PRODUCER

Canada’s most efficient cannabis refinery, developing intellectual property for extraction and distillation

WATER-SOLUBLE NANO DELIVERY

TEAM WITH PROVEN OPERATIONAL TRACK RECORD

FULLY COMPLETED CAPEX

NEXTLEAF LABS: STANDARD PROCESSING AND RESEARCH

LICENCE

OPPORTUNITY SUMMARY

cse:oils | otcqb:oilff · 2/24/2020 · cse:oils | otcqb:oilff this presentation has been prepared...

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