strategic plan q2 2019 - mym · management as of the date of this press release, including market...

MYM NUTRACEUTICALS INC. CSE: MYM OTC: MYMMF PRIVILEGED & CONFIDENTIAL

STRATEGIC PLAN Q2 2019



Global Operations


Caution Regarding Forward-Looking Information and Risk Factors

This Document is confidential. Unauthorized reproduction or distribution of it or any of its contents in any form or under any circumstances without prior written consent is prohibited. The Recipient is responsible for returning all copies of the Document immediately upon request of the Company. Some of the information contained herein is publicly available from directories, publications, and websites, as mentioned in the body and the footnotes where possible or appropriate. In some cases, non-publicly available information was used, including independent research, studies or paid services from individuals and organizations. While the information set forth herein is deemed by the Company to be accurate, the Company shall not be held liable for the accuracy of or any omissions from this Document or for any other written or oral communication transmitted to the Recipient and any other party in the course of its evaluation of transactions involving the Company.

The information contained in the Document will require careful scrutiny, verification and due diligence efforts from the Recipients of the Document. Any person or entity seeking to make an investment in the business should not rely on the information set forth in the Document as complete. In addition, the analyses contained herein do not claim to be appraisals of the assets or the valuation of any entity. The business makes no guarantees regarding any benefits received from an investment, nor the legal, tax or accounting effects of any transaction; and this Document does not constitute an offer to sell, or a solicitation of an offer to buy securities. In furnishing the Document, the Company undertakes no obligation to provide Recipients of the Document with access to any additional information or to update this Document or to correct any inaccuracies that may be contained herein. There exists substantial information with respect to the business and its future prospects, and there are a substantial number of risks associated with an investment in the business, which are not set forth in the Document.

Further, this Document includes certain statements and information that constitute forward-looking information within the meaning of applicable Canadian securities laws, including statements regarding production capabilities, revenues and gross profits. Generally, forward-looking statements and information can be identified by the use of forward-looking terminology such as "intends" or "anticipates", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "should" or "would" occur. Forward-looking statements are based on certain material assumptions and analysis made by the Company and the opinions and estimates of management as of the date of this press release, including market pricing for biomass and isolate. Although the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect, and the forward-looking statements in this release are subject to numerous risks, uncertainties and other factors that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Such risk factors are further discussed below.

RISK FACTORS

• Any investment in the securities of the Company is speculative, due to the nature of its business and its general stage of development. These risk factors could materially affect the Company’s future operating results and could cause actual events to differ materially from those described in forward looking-statements relating to the Company. In addition to the usual risk associated with investment in a business, investors should carefully consider the following risk factors as well as the risk factors set out in the Company’s other public disclosure. Such risk factors include:

• the volatile market price of hemp and cannabis biomass and isolate• the Company’s ability to achieve anticipated revenue;• extraction risks;• the Company’s reliance on licensing and renewals of such licenses, including licenses to produce and sell cannabis oil products;• changes in laws, regulatory regimes and guidelines relating to the marketing, acquisition, manufacture, management, transportation, storage, sale and disposal of hemp

and cannabis; and• less than estimated harvest.

Readers are cautioned not to place undue reliance on forward-looking statements. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such 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 and forward-looking information. In addition to those discussed in this document, please refer to the risks described in the Company's public disclosure record, including the Company's Annual Information Form. Readers are cautioned that reliance on such information may not be appropriate for other purposes. The Company does not intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.


Executive Summary

MYM Nutraceuticals is establishing CBD-rich hemp and cannabis cultivation facilities around the world

Focused on becoming a leading global supplier of CBD-rich isolate

Cultivation, extraction, distribution, and unique brands

MYM currently has three CBD-rich hemp cultivation and extraction projects, two medical cannabis cultivation projects, and three cannabis product distribution offices across the globe


CBD is a phytocannabinoid extracted from the cannabis plant.

CBD does not contain THC and does not have the same psychoactive side effects.

CBD-rich hemp and its by-products are experiencing explosive growth on a global scale.

The Hemp Farming Act of 2018 (the “Farming Act”) removed hemp from its controlled substances list.

Shortage of quality product and high prices where available.

If MYM sells bulk CBD-rich hemp biomass, gross profits are forecasted to be the following:

2019 grow season – 0.7 million lbs total, 510 acres total, $15.1 million MYM share of gross profits

2020 grow season – 4.6 million lbs total, 3,060 acres total, $71.6 million MYM share of gross profits

If MYM converts the CBD-rich biomass to isolate, gross profits are forecasted to be the following:

2019 grow season – 33,001 lbs isolate total, $37.2 million MYM share of gross profits

2020 grow season – 208,308 lbs isolate total, $163.3 million MYM share of gross profits

For the current cannabis operations, the company forecasts the following:

2019 fiscal year – 485 lbs, 4,500 sq ft, $1.0 million gross profits

2020 fiscal year – 3,615 lbs, 12,500 sq ft, $7.3 million gross profits


HEMP OVERVIEW & PROJECTS


Hemp Overview

CBD is a phytocannabinoid extracted from the genus Cannabis

CBD-rich hemp contains very low traces of THC and does not have the same psychoactive side effects

CBD-rich hemp and its by-products are experiencing explosive growth on a global scale

The Hemp Farming Act of 2018 (the “Farming Act”) removed hemp from its controlled substances list

Shortage of quality product and high prices where available


SASKATCHEWAN, CANADA

3,000 acres of CBD-rich hemp cultivation project in Saskatchewan, Canada

Signed MOU for 50% partnership with BioHempNaturals to cultivate 450 acres of CBD-rich hemp for the 2019 growing season

Expanding up to 3,000 acres of certified organic CBD-rich hemp for 2020 growing season

Team has proven track record of successful CBD-rich hemp cultivation projects

MYM share of gross profits for biomass forecasted to be $13.9 million for 2019 and $70.8 million for 2020

MYM share of gross profits for CBD isolate forecasted to be $31.2 million for 2019 and $154.6 million for 2020


CBD-rich hemp production agreement with immediate revenue generating potential

NEVADA, USA

Cultivate 120 acres of CBD-rich hemp for the 2019 growing season

Agreement allows MYM to renew for 2020 growing season

Elite will plant, grow, harvest, and extract the CBD-rich hemp into isolate

MYM share of gross profits for isolate forecasted to be $5.4 million for 2019 and $3.9 million for 2020

Team has proven track record of successful CBD-rich hemp cultivation projects


Launching point to South American operations with initial 25 acre greenhouse grow

MEDELLIN, COLOMBIA

First-mover advantage in Colombia purchasing 80% of Colombia Organica

Colombia Organica hold 3 licenses which include production, cultivation and exportation

Application submitted to register 102 cannabis strains

Cultivate 25 acres of CBD-rich hemp. MYM share of gross profits for isolate forecasted to be $4.8 million for 2020

Expansion plans for 2020


CANNABIS OVERVIEW & PROJECTS


Cannabis Overview

On October 17, 2018, Canada became the first G7 country to legalize cannabis for adult recreational use

Canadian cannabis companies were afforded a first-mover advantage in a trend that is certain to continue on a global scale

Governments around the world are re-evaluating cannabis regulations

These facilities will produce super premium, high quality cannabis for the Quebec medical market

MYM is currently in the late stages of licensing two medical cannabis facilities in Quebec, Canada


Small batch, ultra premium, indoor cannabis production facility

LAVAL, CANADA

Indoor cultivation of small batch, ultra premium, indoor cannabis

Expansion plans to 37,000 sq ft.

Gross profits forecasted to be $990,000 for 2019

Gross profits forecasted to be $7.38 million for 2020

“Craft” cannabis and premium seed sales


Potentially one of the largest greenhouse cultivation projects in Canada

WEEDON, CANADA

Plans to build up to 1.5 million square foot greenhouse on 329 acres of land

Initial buildout of an 8,000 sq ft greenhouse and 6,000 sq ft processing centre and office space is nearly complete

Currently building 22,000 square foot greenhouse

Total annual production at full capacity is expected to exceed 160,000 kgs


DISTRIBUTION PROJECTS


Launching point for Asia Pacific operations

AUSTRALIA

Opened office and registered MYM Australia Pty Ltd as the launching point for Asia Pacific operations

Goal of becoming one of the largest distributors of bulk CBD isolate in the Southern Hemisphere

Currently negotiating bulk distribution deals and importing proprietary hemp and cannabis products


First-movers for importation and distribution of CBD-rich hemp products in Central America

MEXICO

Opened office and incorporated MYM Nutraceuticals Mexico S.A. de C.V.

Changes in cannabis legislation will make CBD products available to general retailers

Negotiating bulk distribution deals importing proprietary hemp and cannabis products into Mexico

Built well-connected team to exploit first-mover advantage in Mexico


Importation and distribution of CBD-rich hemp products in Europe

EUROPE

Opening office in London, England and incorporating “MYM Europe” to focus on bulk CBD isolate sales

CBD legal in most of Europe

Negotiating bulk distribution deals importing proprietary hemp and cannabis products into Europe


Hemp

20190.7 MILLION

LBS OF BIOMASS

OR33,001 LBS

OF CBD ISOLATE

2019220 KGS

AND$990,000 GROSS

PROFITSFROM MARIJUANA

2019$15.1 MILLION

GROSS PROFITSFROM BIOMASS

OR$37.2 MILLION

GROSS PROFITS FROM CBD ISOLATE

20204.6 MILLION

LBS OF BIOMASS

OR208,308 LBS

OF CBD ISOLATE

20201,640 KGS

AND$7,300,000 GROSS

PROFITSFROM MARIJUANA

2020$71.6 MILLION

GROSS PROFITSFROM BIOMASS

OR$163.3 MILLION

GROSS PROFITSFROM CBD ISOLATE

Marijuana


Board of Directors

Erick FactorExecutive Chairman

Howard SteinbergExecutive Vice Chairman

of the Board

Elizabeth Liu, QCDirector

Ted TabiszIndependent Director

Robin LindenDirector


Senior Management

Howard SteinbergExecutive Vice Chairman

of the Board & CEO

Elizabeth Liu, QCExecutive Vice-President

& Chief Legal Officer

Robin LindenExecutive Vice-President & Chief Marketing Officer

Mark ForsterChief Financial Officer

Charith AdkarChief Science Officer

Paul CheethamChief Operating Officer


Territory Managers

SouthAmericaDaniel Alonso

Gabriel Ramirez

EuropeKirsty Morrison

Asia PacificFabian Szatmary

NorthAmericaLen Atkinson

James AndrewsZach Tietolman

Territory ManagersTerritory Managers Territory Managers Territory Manager


Billy CasselmanVice President Commercial Sales and Investor [email protected]


strategic plan q2 2019 - mym · management as of the date of this press release, including market...

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