investor presentation september 2018 cse: qcc€¦ · this investor presentation dated fall 2017...

Investor Presentation September 2018

CSE: QCC

quadroncannatech.com CSE: QCC 2

Forward Looking Statements This investor presentation dated Fall 2017 (the “Presentation”) contains “forward- looking information” within the meaning of applicable Canadian securities laws and

“forward looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 (collectively, “Forward Looking Statements”) regarding

Quadron Cannatech Corporation (“Quadron” or the “Company”) and its subsidiaries. Except for statements of historical fact, certain information contained herein constitutes

forward- looking statements which include management ’s assessment of future plans and operations and are based on cur rent internal expectations, estimates, projections,

assumptions and beliefs, which may prove to be incorrect. Often, but not always, forward- looking statements can be identified by the use of words and phrases such as

“estimates”, “forecasts”, “projection” “anticipates”, “believes” “expects” or “is expected”, or “plans”, “intends”, “budgets”, “goals”, “objectives”, “targets”, or “scheduled”

or variations (including negative variations) of such words and phrases, or statements that certain actions, events or results “may”, “could”, “should”, “would”, “might” or

“will” be taken, occur or be achieved. Forward- looking statements are based on the opinions and estimates of management as of the date such statements are made and

are based on various assumptions such as: (i) the Company’s ability to generate cash flow from operations and obtain necessary financing on acceptable terms; (ii) general

economic, financial market, regulatory and political conditions in which the Company operates; (iii) consumer interest in Company products; (iv) anticipated and

unanticipated costs; (v) government regulation of the Company’s activities and products; (vi) the timely receipt of any required regulatory approvals; (vii) the Company’s

ability to obtain qualified staff, equipment and services in a timely and cost efficient manner; the Company’s ability to conduct operations in a safe, efficient and effective

manner; (viii) and the Company’s construction plans, expansion of facilities, its costs and timeframe for completion of such plans. Forward- looking statements are not

guarantees of future performance and undue reliance should not be placed on them. Forward- looking statements involve known and unknown risks, uncertainties and

other factors, which may cause the actual results, performance or achievements of Quadron to be materially different from any future results, performance or achievements

expressed or implied by the forward- looking statements. Many of these risk factors and uncertainties are discussed in certain Company documents, in a section entitled

“Risk Factors”, and filed with the Canadian Securities Administrators which are available on SEDAR at 27TUwww.sedar.com U27T. Although the Company has at tempted 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 act ions, events or results to differ from those anticipated, estimated or intended. Forward- looking statements contained herein are made as of the date of this

Presentation and the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results, except

as may be required by applicable securities laws. 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. Securities Laws.

This Presentation is for informational purposes and does not constitute an offer or a solicitation of an offer to purchase the securities referred to herein. No Reproduction or

Distribution. The contents of this presentation are not to be reproduced or distributed to any third party, including the general public or the media, without the express

written consent of Quadron. The information contained herein, while obtained f rom available sources which the Company believes are reliable, is not guaranteed as to its

accuracy or completeness. Third Party Information: Certain information contained in this Presentation with respect to market trends and products has been obtained or

quoted from publicly available sources, such as continuous disclosure documents, independent publications, media articles, third party websites (collectively, the

“Publications”). In certain cases, these sources make no representations as to the reliability of the information they publish. Further, the analyses and opinions reflected in

these Publications are subject to a series of assumptions about future events. There are a number of factors that can cause the results to differ materially from those

described in these publications. None of the Company or its representatives independently verified the accuracy or completeness of the information contained in the

Publications or assume any responsibility for the completeness or accuracy of the information derived from these Publications. Additional Information: Additional

information relating to the Company has been filed electronically through SEDAR and is available online at 27Twww.sedar.com 27T or at the Company’s website at

27Twww.quadroncannatech.com 27T.

http://www.sedar.com/

http://www.sedar.com/

http://www.quadroncannatech.com/


About Quadron Turn-key extraction and processing solutions for the

cannabis industry through vertically integrated

offerings:

• Proprietary Industrial Grade Equipment

• Custom build processing facilities

• Ancillary products and packaging (i.e. vape pens)

• Scientific services

Quadron combines extensive industry expertise with

leading technology to expand sales and distribution of

its offerings.

Vancouver based, Quadron is a publicly-traded

company operating through three wholly-owned

subsidiaries:

• Soma Labs Scientific

• Greenmantle Products

• Cybernetic Control Systems


Market Data Sales of cannabis oil surpassed sales of dried

cannabis in 05/2017.

The edibles sector is projected to reach $12B - $22B

outpacing a $5 billion projection for flower demand

(Deloitte 2018).

There are 117 Production Licenses across Canada as

of 09/2018. 64 of these have sales licenses and even

less have oil processing licenses.

The upcoming new class of Processing Licenses will

create product development opportunities in

collaboration with food and beverage industry,

pharma, and bio tech.

Cannabis oils serve as base ingredients for edibles,

vape pens, and capsules.

Health Canada is expected to approve edibles and

vape pens in 2019 with firm regulations.


Quadron’s Position in the Industry

Quadron Provides Ancillary Products and Services To Licensed Growers and Processors

Extraction Processing

Formulation

Packaging

Cultivation


The Quadron Advantage Industry Leading Extraction Equipment

• Developed proprietary 45L CO2 Extractor

• Designing new industrial grade turn-key extraction

systems

• ASME, CRN, UL, CUL & CSA certified

Establishing Industry Standards

• In biomass preparation, extraction, processing and

formulation

• Designing ancillary devices specifically for cannabis

extracts

• CEO is an industry leader, providing consultation on

Canada’s recreational cannabis laws

Leading Research and Development

• 50+ years of engineering and automation experience

• 25 years Supercritical CO2 Experience

• Proven management team with diversified cannabis

industry experience


Extraction & Processing Solutions Soma Labs Scientific provides turn-key extraction

systems and processing facilities tailored to

processors.

Processing Facilities include:

• Biomass Preparation

• Extraction (CO2 and Ethanol)

• Filtration

• Solvent Recovery, Refinement and

Formulation

• Analytical equipment for testing

concentrates

• Industrial Grade Packaging Equipment

In-house engineers and chemists provide training,

servicing and upgrades in addition to full facility

design.

Full Processing Facility commence at $2 million and

up.


Engineering and Automation Cybernetic Control Systems provides:

• In-house design, engineering and automation

• Manufacturing of industrial grade extraction

equipment

• 30 years of proven track record in design,

fabrication, supplying custom & standardized

equipment

Awarded distributor and integrator for Schneider

Electric’s drive panel builder for British Columbia.

Cybernetics’ offerings Include:

• Process Technical Services

• Automation Systems

• Standard & Custom Machines

• VFD/Drive Systems

• Electrical

• Process & Heat Transfer

Early prototype of the BOSS


Ancillary Products Greenmantle Products (GMP) provides:

• Extract and Product Development

Consultation

• Custom Ancillary Solutions

• Branded Consumption Devices

• Packaging Services

With in-house R&D and hands-on extract

experience, GMP designs and develops

ancillary devices specifically for cannabis

extracts.

GMP has over 50 different cartridges, pens

and vape solutions for licensed growers and

processors.

In California, 71% of all cannabis sales are

from concentrates and extracts. (BDS

Analytics)


US Distribution Partnership Quadron has a development and distribution

agreement with Lucid Labs (LLG).

LLG is a leading cannabis equipment

distributor based in Washington State with

extensive distribution channel across the US.

Under the agreement, Quadron is co-

developing extraction and processing

solutions for the cannabis industry including

the following systems:

• Alcohol Extractor

• Pressure-assisted filtration

• Distillation system

• Hydrocarbon extraction


Financial Summary

• In Jan 2018, Quadron closed a $5 million dollar bought deal financing ($.70 per share).

• Strong ancillary product and service growth: $3.64M in sales primarily from cannabis

consumption devices (hardware, cartridges, vape pens) and engineering service

contracts.

• $4.3M in cash and $1.7M in inventory and AR as of April 2018.

• $6.7M raised in placements/financings since February 2017.

• Announced sales of 5 BOSS CO2 extraction units and 1 Mobile extraction unit (sales

reported on delivery). Revenues on equipment will start in Q1.

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

2016 2017 2018

Sales by Year


Capital Structure

Quadron Cannatech | CSE: QCC

Issued & Outstanding

68,355,323

Warrants @ .20 Exp Aug 2018 5,651,250

@ .30 Exp Oct 2020 261,835

@ .70 Exp Jan 2019 3,576,500

@ .83 Exp Jan 2020 7,142,858

Options @ .20 Exp Feb 2022 – Vest 12.5% per

quarter

1,875,000

@ .20 Exp Feb 2022 – Vest 25% per quarter 350,000

@ .20 Exp Mar 2023 – Vest 12.5% per

quarter

3,305,000

Preferred Shares

9,350,000

Total Fully Diluted

100,296,337

Insider Ownership (3 year

Escrow)

13,100,000


Management

Rosy Mondin

Director, CEO

Quadron Cannatech

Over 20 years of business,

entrepreneurial and legal

experience specializing in

corporate law and

regulatory affairs

Served as strategic advisor

and counsel in the venture

capital space for over a

decade.

Co-founder and Executive

Director of the Cannabis

Trade Alliance of Canada

(CTAC), and special advisory

to the Canadian Association

of Medical Cannabis

Dispensaries (CAMCD).

Leo Chamberland

President

Quadron Cannatech

Co-founder of Soma Labs

Scientific Inc. and a

successful entrepreneur

bringing over 30 years of

finance, skills in negotiations,

and strategic business

development working with

both private and publicly

listed companies.

Prior to his appointment with

Quadron, he leads a venture

capital group and a financial

services company. He has

developed a reputation as a

strong leader.

Jeff Durno

Director

Quadron Cannatech

Partner at Cassels

Brock & Blackwell LLP in the

Securities Group with focus

on primarily on securities

and corporate finance

matters.

Active in the public market

for more than two decades,

Mr. Durno acts for issuers,

investment dealers &

investment advisors across a

range of industries.

Mr. Durno is a member of

the TSX-V Listing Advisory

Committee (BC).

Doug McFaul

Director, Chair of the Board

Quadron Cannatech

Over 23 years’ experience in

the financial services &

capital markets industries.

Extensive experience with

public company operations

with regulatory

requirements, financial

statements, raising capital, &

shareholder relations.

BBA (Business Admin

specialized in Finance),

completion of Canadian

Securities Course.

Robert Chisholm

Chief Financial Officer

Quadron Cannatech

Over 30 years of experience

in finance and

administration.

Currently CFO of Emprise

Capital Corp., a Vancouver

based merchant bank and

serves as CFO and director

for a number of public

companies.

Professional accountant

holding a designation from

the Certified Management

Accountants of Canada.


Management Continued

Scott Ackerman

Director Quadron Cannatech

President & CEO of Emprise Capital Corp., a Vancouver based merchant banking company

Over 25 years of experience in the financial services & capital markets industries having held senior executive roles in various capacities.

Experience with public company operations on a number of publicly traded and private ‘start-up’ companies.

Shane Lander

Founder & President Soma Labs Scientific

30 years of business experience as an innovator and successful entrepreneur.

CEO of Odorchem, manufacturer and distributor of ‘ONA’

15 years’ experience working with supercritical CO2 & 25 years’ experience in mechanical design and systems automation.

Tamas Jozsa

Vice President - Engineering Cybernetic Control Systems

Over 20 years of R&D engineering and management experience, Tamas developed wide range of multi-discipline engineering knowledge and manufacturing data-driven process strategies. To multiply these successes, Tamas extended this system by forming, training and managing multiple international high-performance design and operation teams.

Tamas built up recognized reputation in different industries during the work and successful innovations in Canada, New Zealand, Europe, India, China and Vietnam. Tamas is a registered professional engineer and holds a M.Sc. Degree in mechanical engineering.

Kieran Forristal

Vice-President Finance Quadron Cannatech

Over 20 years capital market experience working on the capital market trading floors in top ten international Investment banks.

Worked at BNP Paribas, Bank of America and Union Bank of Switzerland Experience with complex & structured derivative process control, management, efficient operational growth & regulatory governance.

Michael MacDonald

Founder and President Cybernetic Control Systems

Extensive experience in automation & machine development, utilizing a combined education in electronics engineering, chemistry & business.

Co- founder of Cybernetic Control Systems

Mike holds a degree as an A.Sc.T. (Electronics Engineering) from BCIT.


Highlights

Quadron has a proven management team, with expertise in regulation and legislation, corporate & securities law, finance, biological engineering, mechanical engineering, and extraction technology. Quadron is well positioned to take advantage in this evolving marketplace.

Quadron’s extensive cannabis industry expertise is leading the way with innovative technology, turn-key extraction and processing solutions, extract research and development, and cannabis specific ancillary solutions.

The Canadian landscape for recreational cannabis is estimated to be $7 billion in 2019 (Deloitte 2018), and it’s expected that extracts and concentrates will quickly exceed the demand for cannabis flower.

Quadron is well capitalized, with $4.7M in working capital as of September 2018 and organic revenue growth of $3.64M in since 2016.

In January 2018, Quadron Cannatech closed a $5 million dollar bought deal financing (at $.7 0 per share).

Announced sales of 5 BOSS CO2 extraction units and 1 Mobile extraction unit (sales reported on delivery). Revenues on equipment will start in Q1.


Rosy Mondin

Director & CEO

[email protected]

1.604.346.8118

Caleb Jeffries

Investor Relations Representative

[email protected]

1.604.684.6730 | 1.866.684.6730

mailto:[email protected]

mailto:[email protected]

investor presentation september 2018 cse: qcc€¦ · this investor presentation dated fall 2017...

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