tvc investors-v5...the global market for cannabis-based drinks is expected to be worth us$1.4...

MARCH 2020TSXV: VLNS, OTCQX:VLNCF

THEVALENSCOMPANY.COM

VALENS | 2

NOTICE TO RECIPIENT

FORWARD LOOKING STATEMENTS

This presentation (the “Presentation”) of Valens GroWorks Corp. (the “Company” or “The Valens Company” or “Valens”) is an overview only and does not contain all the information that a prospective investor may require to make investment decisions. This Presentation is for information purposes only and does not constitute an o�er to sell or a solicitation to buy any securities of the Company. In making an investment decision, investors must rely on their own examination of the Company, including the merits and risks involved.

This Presentation contains forward-looking statements and forward-looking information. Often, but not always, forward-looking statementscan be identified by the use of words or phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” betaken, 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 di�erent 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 theCompany; (C) anticipated timing for the availability of the Company’s products to market and expected sale prices; (D) expected growth inthe number of users of medical and recreational marijuana anticipated; and (E) the expansion of the Company’s business into other revenuestreams.

Actual results and developments are likely to di�er, and may di�er 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: expectations regarding the ability of the Company to raise capital and grow through acquisitions; growth strategy, joint venture, other commercial opportunities and the ability of the Company to carry out its stated work program; and expected sources and uses of capital.

There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could di�er 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 Companyassumes no obligation to update such forward-looking statements to reflect new information, subsequent events or otherwise unless required by applicable securities legislation.

TSXV:VLNS, OTC:VLNCF | AWARDED TOP EXTRACTION COMPANY

VALENS | 3

CAUTIONARY NOTE REGARDING FUTURE-ORIENTED FINANCIAL INFORMATION

To the extent any forward-looking statement in this Presentation constitutes “future-oriented financial information” or “financial outlooks” within the meaning of applicable Canadian securities laws, such information is being provided to demonstrate the anticipated market penetration and the reader is cautioned that this information may not be appropriate for any other purpose and the reader should not place undue reliance on such future-oriented financial information and financial outlooks. Future-oriented financial information and financial outlooks, as with forward-looking statements generally, are, without limitation, based on the assumptions and subject to risks as set out above under the heading “Forward-Looking Statements”. The Company’s actual financial position and results of operations may di�er materially from management’s current expectations and, as a result, the Company’s revenue and expenses may di�er materially from the revenue and expenses profiles provided in this presentation. Such information is presented for illustrative purposes only and may not be an indication of the Company’s actual financial position or results of operations.

THIRD PARTY INFORMATION

This Presentation includes market and industry data which was obtained from various publicly available sources and other sources believed by the Company to be true. Although the Company believes it to be reliable, the Company has not independently verified any of the data from third-party sources referred to in this presentation, or analyzed or verified the underlying reports relied upon or referred to by such sources, or ascertained the underlying assumptions relied upon by such sources. The Company does not make any representation as to the accuracy of such information.

USE OF NON-GAAP MEASURES

Adjusted EBITDA is a non-GAAP measure used by management that does not have any standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other companies. Management defines adjusted EBITDA as loss and comprehensive loss from operations, as reported, before interest, tax, depreciation and amortization, and adjusted for removing share-based payments, unrealized gains and losses from short term investments and other one-time and non-cash items including impairment losses. Management believes adjusted EBITDA is a useful financial metric to assess its operating performance on an adjusted basis as described above. A description of these financial measures, including a reconciliation of such measures, to the extent possible, against the most directly comparable IFRS measure, can be found at page 9 of the management’s discussion and analysis of the Company for the three and nine month period ended August 31, 2019.


VALENS | 4

OUR MISSIONOur mission is to become theworld’s most trusted partner forbest-in-class cannabis extraction,testing, formulation, productdevelopment and manufacturing.

RECENT ANNOUNCEMENTS• First international shipments of white label

products to customers in Australia expected Q2 2020

• Record financial performance reported for the fourth quarter and fiscal year 2019

VALENS | 5

BEST POSITIONED TODAY,ACCELERATING INTO TOMORROW

EXTRACTION AND NEXT GENERATION PRODUCT CAPABILITIES DRIVE OUR ADVANTAGE

THE VALENS COMPANY IS ACCELERATING INTO CANNABIS 2.0

BROADENING END-PRODUCT AND DELIVERY CAPABILITIESBroadening our white label o�erings to become the largest third-party cannabis product development and manufacturing company in the world

OPERATING WITH GLOBAL STANDARDSReadying our business model for exportation to high value international markets

PROVIDING UNIQUE, CUSTOMIZED OFFERINGSFurther developing our unique, IP based product technology platform o�ering customized white label services

INCREASING CAPACITYIncreasing capacity in 2020 from 425,000 to 1,000,000 KG of extraction capacity for hemp and cannabis to keep up with expected demand

BUILDING REPUTATIONGaining more partnerships and establishing ourselves as the trusted partner of choice by various leading licensed producers and CPG companies


https://www.lift.co

VALENS | 6

2016 2018 FUTURE*

OIL BASED PRODUCTS

FLOWER BASED PRODUCTS

EDIBLES

VAPE PENS

OTHER PRE ROLLS

FLOWER

71%

29%53% 47%

25%

75%

20%

11%

10%

OUR BELIEFTHE MARKET WILL BE DOMINATED BY OIL BASED PRODUCTS

Source: Cowen Equity Research Report(US Market Share)

*Valens forward-looking prediction in theshort-term based on market research

CONCENTRATES


VALENS | 7

VALENS IN THE VALUE CHAIN UNLOCKING HIGHER MARGINS FOR OUR CUSTOMERS

CULTIVATION EXTRACTION

PURIFICATION

FORMULATION

PRODUCTMANUFACTURING

BRANDING RETAIL& SALES

VALENS LABS T

ESTING

OUR FOCUS:PROVIDE QUALITY PRODUCTS THAT OFFER CUSTOMIZED USER EXPERIENCES TO HELP OUR CUSTOMERS BUILD DIFFERENTIATED, HIGH VALUE BRANDS


VALENS | 8

EXTRACTIONCONCEPT IS SIMPLE, QUALITY EXECUTION IS COMPLEX


DRIEDCANNABIS

OR HEMP

OILEXTRACTION

CRUDEOIL OIL

WINTERIZATION

OIL REFINEMENT(DISTILLATE)

CROMATOGRAPHY/SEPARATION

(ISOLATE)

VALENS | 9

EXPERTISE THAT DIFFERENTIATESDIVERSITY CREATES COMPETITIVE ADVANTAGE

Super/Sub Critical CO2

CapsulesTinctures

VapesTopicals

Beverages Edibles

Full Spectrum

Ethanol

CapsulesTinctures

Vapes Topicals

BeveragesEdiblesOthers

Hydrocarbon

ConcentratesVapes

Shatter/WaxFull Spectrum

Solvent-less

Rosin Hash

Live ResinFull Spectrum

Terpene

Add back for experience, flavour

and smell

LESS COMMODITIZATION

ONE SIZE DOES NOT FIT ALL: HIGH QUALITY PRODUCTS NEED CUSTOMIZED EXTRACTION PROCESSES


TSXV:VLNS, OTC:VLNCF VALENS | 10

•••••

•

•••

•••

••

EBIT

DA

MA

RGIN

CO2

ETHANOL

HYDROCARBON/SOLVENTLESS

GLOBAL MARKET REVENUEWHITE LABELING & FORMULATION

TOLL PROCESSING

DESIGNED TOTRANSITION

AS THE MARKETEVOLVES

BUSINESS STRATEGYDELIVERING SUSTAINABLY STRONG EBITDA MARGINS THROUGH THE CYCLE

VALENS | 11

EXTRACTION EXPERTISE FACILITATESROLL-OUT OF WHITE LABEL EVOLUTION TO WHITE LABEL WELL UNDERWAY

EXTRACTION (11) WHITE LABEL (11)

+3 OTHERS

HIGH QUALITY EXTRACTIONNEXT GENERATION

PRODUCT DEVELOPMENT


VALENS | 12

TESTINGWE ARE SETTING THE STANDARD

FIRST ISO 17025 ACCREDITED LAB• Consistent use of validated methodologies

CAN PERFORM ANALYSES IN AS LITTLE AS 24 HOURS• Positioning Valens as the go-to lab with turn arounds 4-5x faster than other leading labs

PUBLISHING FULLY VALIDATED, STANDARDIZED,AND TURNKEY SOLUTIONS FOR THE GLOBAL CANNABIS INDUSTRY

• Global recognition for methodologies and putting Valens’ name at the forefront of analysis

ADDITIONAL REVENUE SOURCE THROUGH THIRD-PARTY LAB TESTING• Consistent high margin revenue source, mandated by Health Canada

NAMED A “CENTER OF EXCELLENCE IN PLANT BASED SCIENCE” BY


VALENS | 13

PINEAPPLEEXPRESS*

Linalool7%

Beta Pinene

5%

Alpha Pinene

3%

Myrcene23%

Limonene18%

Humulene15%

SORSE EMULSION

CANNABINOID AND TERPENE ISOLATION

CONCENTRATES FORMULATIONS

EXTRACTION METHODOLOGIES

TESTING METHODOLOGIES

FORMULATIONSCUSTOMIZED USER EXPERIENCES NEED CUSTOMIZED PRODUCT FORMULATIONS

*Example of the terpenemake-up of the cannabis strain,

Pineapple Express

VALENS IS BUILDING A DIVERSE IP PORTFOLIO THAT SPANS ACROSS ALL TYPES OF PRODUCTS AND SERVICES 100+ TERPENE FORMULATIONS

Beta Caryophyllene

30%


VALENS | 14

FORMULATIONSSORSE EMULSION TECHNOLOGY

• Shelf stable for over 2 years.

• Zero cannabis taste, colour or odour.

• • bioavailability when consumed.

• Resistant to temperature change including boiling,freezing and thawing.

• Faster onset making it the safer and more trusted option.Observed in 5-15 minutes versus normal 30 minutes – 2 hours.

• Observed in 45 minutes – 2 hours versus normal 4 – 8 hours.

• Proprietary licensed formula.

• Exclusive rights in Canada, Mexico, EU, UK and Australia.

• Access to non-exclusive rights globally.

CURRENT PROBLEMS

VALENS’ SOLUTIONS

The global market for cannabis-based drinks is expected to be worth US$1.4 billion by 2024

- Prohibition Partners


VALENS | 15

VALENS 1.0

Tinctures

Two PieceCaps

Soft Gels

Oral Sprays

VALENS 2.0

PHASE 1 DECEMBER 2019 PHASE 2 H2 2020

Beverages Edibles

Concentrates Topicals

Vape Pens More InnovativeProducts...

3RD PARTY PRODUCT DEVELOPMENT & MANUFACTURINGTHE FUTURE OF CANNABIS CONSUMPTION


VALENS | 16

230 CARION RD

TODAY

180 + 230 CARION RD

MOST OUTPUTLEAVING AS

BULK OIL

MOST OUTPUTLEAVING AS A HIGHER

VALUE PRODUCT

EXTRACTION FOCUSEDCRUDE

DISTILLATEFULL SPECTRUM

ISOLATEFORMULATION

EMULSION

EXTRACTIONCRUDE

DISTILLATEFULL SPECTRUM

ISOLATEFORMULATION

EMULSION

WHITE LABEL FOCUSEDCAPSULESTINCTURES

VAPE GOODSSPRAYSEDIBLES

BEVERAGESTOPICALS

WHITE LABELFORMULATION

EMULSIONBEVERAGE CO-PACKING

EDIBLES CO-PACKING

GTA FACILITY

2020

FACILITY EXPANSION FOR PRODUCT DEVELOPMENTIP BASED PRODUCTS TO STRENGTHEN COMPETITIVE ADVANTAGE AND MARGINS


VALENS | 17

DELIVER ONEXISTING CONTRACTS

KELOWNA + GTA EXPANSION

LAUNCH NEXTGENERATION PRODUCTS

GLOBAL EXPANSION

Speed to market tomaintain advantage

Di�erentiated producto�ering

Build IP portfolio

Export globally with EUGMP certification

Target markets & opportunities that maximize ROI

Optimize existing capacityto maximize margin

12

34

ACTION PLAN12 MONTH GOALS


VALENS | 18

CURRENT AREAS OF INTEREST

UNITED STATES

COLUMBIA

EU

AUSTRALIA

GLOBAL MEDICAL MARKET ALONE ESTIMATED AT $180B ANNUALLY IN 10-20 YEARS*

*Source: Eight Capital Research

LONGER TERM OPPORTUNITIES

BRAZILPERU

URUGUAY

MEXICO

INTERNATIONAL EXPANSIONADVANCED DISCUSSIONS IN KEY MARKETS GLOBALLY

CBD


VALENS | 19

FINANCIALS & OUTLOOKFIRMLY INTO OUR GROWTH PHASE; FOCUSED ON UNLOCKING SHAREHOLDER VALUE

CAPITALIZATION TABLE


(In CAD$MM, Unless otherwise noted)

Share Price: As of January 31, 2020 Basic Shares O/SFull Diluted Shares O/S

Equity ValueCash and Cash Equivalents ITM SecuritiesDebt

Enterprise Value 372.5

Average Analyst Estimates CY2019 CY2020 CY2021

170.774.7

$0.34

225.599.9$0.51

304.9116.2

$0.45

Revenue Adjusted EBITDA EPS

Implied Multiples

5.0x 3.7x 3.2x12.3x 11.1x 10.8x12.1x 11.5x 9.6x

Valens EV/EBITDAPharma CMO Average EV/EBITDA* Packaged Foods CMO Average EV/EBITDA*

Canadian Cannabis Peer Average EV/EBITDA*

Valens P/EPharma CMO Average P/E* Packaged Foods CMO Average P/E*

Canadian Cannabis Peer Average P/E*

Analyst Target Price

$8.29Average (7 Analysts) Implied Return Potential

Source: Company Filings, S&P Capital IQ Note: Shares outstanding and cash balance based on most recent quarterly financials; presented as Treasury Stock Method. Pharma CMO cohort includes: Catalent Inc., Perrigo Company PLC, Recipharm AB. Packaged Foods CMO cohort includes: Tate & Lyle PLC, J&J Snack Foods Corp., TreeHouse Foods Inc., Hilton Food Group PLC. Canadian Cannabis Peers refer to cohort on next slide.

147%

$3.36126.0130.9

439.958.78.70.0

CY2022

58.127.4

-$0.06

CY2020 CY2021 CY2022

18.9x 18.9x 9.9x

9.9x 6.6x 7.5x21.3x 18.8x 16.9x21.5x 19.6x 15.1x30.4x 20.4x 17.8x

VALENS | 20TSXV:VLNS, OTC:VLNCF | AWARDED TOP EXTRACTION COMPANY

LARGE DISCOUNT TO PEERS DESPITE STRONG EXECUTION

Canadian cannabis peer group includes: WEED, ACB, CRON, TLRY, APHA, HEXO, OGI, FLWR, TGOD, FIRE, EMH, ZENA, WMD, VIVO, NRTH, HVT, DN, WL, JWCA, LABS, NEPT and RTI. Observations with no consensus estimates are excluded.

5x

15x

0x

10x

20x

30x

40x

50x

Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19

CY

20

20

EV

/EB

ITD

A

Valens Canadian cannabis peer average

3x

14x

0x

5x

10x

15x

20x

25x

30x

35x

Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19

CY

20

21

EV

/EB

ITD

A

Valens Canadian cannabis peer average

VALENS | 21

COMPETITIVE LANDSCAPE

NO. OF ANNOUNCED TOLL PROCESSING AGREEMENTS*

11 3 7 2

NO. OF WHITE LABEL AGREEMENTS*

11 2 4 0

CURRENT ANNUAL CANADIANEXTRACTION CAPACITY*

425,000KG 200,000KG 300,000KG 56,000KG

TYPES OF EXTRACTION* 5 2 1 1

ISO 17025 ACCREDITEDTESTING LAB*

Y N N N

EU GMP CERTIFICATION* PENDING N PENDING PENDING

ORGANIC CERTIFICATION* Y N Y N

CASH FLOW FROM OPERATIONS ($CAD)Per Latest Filed Quarter

-3.4M -10.0M -21.1M -19.2M

NET INCOME ($CAD)Per Latest Filed Quarter 4.5M 5.6M 3.3M -6.9M

EV / EBITDA (2020)Per Latest Filed Quarter 5.0x 18.6x 6.6x n/a

ENTERPRISE VALUE ($CAD)Per Comp Table Pg. 23 372M 273M 363M 99M

*Sourced from company presentations, latest filed quarters and news releases


VALENS | 22

INVESTMENTHIGHLIGHTS

Largest extractioncompany in Canada.

At 425,000 KG of capacity, Valens is equipped to serviceCanadian demand as well as the global markets withe�ciency at scale.

Highmargins.

Operating in one of the highest margin sub-sectors of thecannabis industry with low variability in costs.

Proprietary technologyand processes.

Decades of experience have resulted in best-in-class proprietary extraction processes that are optimized toproduce consistently high quality products.

First moveradvantage.Founded in 2012, Valens was granted the first Dealer’sLicense to process cannabis. Our R&D and testing processallows us to quickly identify market trends and adapt to achanging landscape.

Most diverseextraction capabilities.

Providing customers with the widest variety of extractiontechniques which allows them to produce the largest rangeof end products.

Substantial, reoccurring agreements with leading producers,including Canopy, Tilray, HEXO, TGOD and Organigramproviding a clear revenue and cashflow path.

Customizedproduct development.

Valens formulation and testing expertise allows for the productionof a wide array of tinctures, capsules, concentrates,vapes, topicals, beverages and edibles.

In-house testinglaboratory.Setting global standards, Valens labs was the first ISO17025 accredited lab for cannabis analyses and is endorsedby $100B+ Thermo Fisher Scientific as the Centre ofExcellence in Plant Based Science.

-

High cashflowvisibility.


VALENS | 23

APPENDIX: COMP TABLE


Source: Company Filings, S&P Capital IQ, AltaCorp CapitalAs of January 31st, 2020; shares outstanding based on most recent quarterly financials and adjusted for share issuance transactions and other significant publicly disclosed transactions; presented as fully diluted with all in-the-money securities added to the equity value and cash proceeds added to diluted cash balance; N/D = Not Disclosed (1) Based on Analyst consensus estimates; (2) Valen’s financial estimates are based on November 30th fiscal year-ends rather than calendar year-ends

Share Equity Enterprise

Price Value Value 2020E 2021E 2022E 2020E 2021E 2022E 2020E 2021E 2022E 2020E 2021E 2022E

C$mm C$mm C$mm C$mm C$mm (x) (x) (x) (x) (x) (x)

Large Cap LPs

Canopy Growth Corporation C$29.80 $10,474 $8,725 ($294) ($17) $244 ($1.28) ($0.32) n/a nmf nmf 35.8x nmf nmf n/a

Aurora Cannabis Inc. C$2.50 $2,799 $3,204 ($12) $103 $358 ($0.21) ($0.15) $0.14 nmf 31.1x 8.9x nmf nmf 18.2x

Tilray, Inc. US$17.54 $2,402 $2,869 ($61) $42 $137 ($1.42) ($0.53) $0.66 nmf 68.7x 21.0x nmf nmf 35.1x

Aphria Inc. C$6.19 $1,656 $1,652 $77 $132 $171 ($0.11) $0.18 n/a 21.4x 12.5x 9.7x nmf 34.8x n/a

Cronos Group Inc. C$9.53 $3,534 $1,541 ($42) $67 n/a ($0.12) $0.12 $0.24 nmf 22.9x n/a nmf 82.9x 40.6x

OrganiGram Holdings Inc. C$3.42 $571 $589 $35 $64 $79 ($0.04) $0.13 $0.34 17.0x 9.2x 7.5x nmf 27.2x 10.1x

HEXO Corp. C$1.66 $476 $453 ($22) $5 $27 ($0.17) ($0.11) n/a nmf 99.7x 16.8x nmf nmf n/a

Average 19.2x 44.2x 16.6x nmf 31.0x 21.1x

Mid Cap LPs

The Flowr Corporation C$1.71 $234 $253 $3 $36 $70 ($0.11) $0.07 $0.18 90.6x 7.1x 3.6x nmf 24.4x 9.5x

The Supreme Cannabis Company, Inc. C$0.49 $174 $240 $31 n/a n/a n/a n/a n/a 7.8x n/a n/a n/a n/a n/a

The Green Organic Dutchman Holdings Ltd. C$0.68 $213 $190 ($15) $18 $70 ($0.10) $0.02 n/a nmf 10.4x 2.7x nmf 34.0x n/a

Zenabis Global Inc. C$0.14 $52 $133 n/a $68 n/a n/a n/a n/a n/a 2.0x n/a n/a n/a n/a

WeedMD Inc. C$0.76 $87 $122 $24 $51 n/a $0.10 $0.18 n/a 5.2x 2.4x n/a 7.6x 4.2x n/a


Small Cap LPs

VIVO Cannabis Inc. C$0.37 $109 $94 ($1) $19 $40 ($0.05) $0.02 $0.06 nmf 4.9x 2.3x nmf 18.3x 6.1x

Emerald Health Therapeutics, Inc. C$0.30 $55 $75 ($19) ($11) ($5) ($0.21) ($0.09) n/a nmf nmf nmf nmf nmf n/a

Westleaf Inc. C$0.17 $58 $68 $10 $50 n/a n/a n/a n/a 7.1x 1.4x n/a n/a n/a n/a

Delta 9 Cannabis Inc. C$0.57 $50 $62 $3 $11 $14 ($0.04) $0.02 $0.05 18.2x 5.7x 4.5x nmf 38.0x 11.4x

Harvest One Cannabis Inc. C$0.14 $30 $29 $6 n/a n/a ($0.03) n/a n/a 5.3x n/a n/a nmf n/a n/a


Extraction Companies

MediPharm Labs Corp.C$3.36 $440 $372 $75 $100 $116 $0.34 $0.51 $0.45 5.0x 3.7x 3.2x 9.9x 6.6x 7.5xThe Valens CompanyC$2.81 $393 $363 $55 $102 $115 $0.14 $0.32 $0.44 6.6x 3.6x 3.2x 20.8x 8.9x 6.5x

Neptune Wellness Solutions Inc. C$3.13 $297 $273 $15 $72 $97 ($0.38) $0.42 $0.70 18.6x 3.8x 2.8x nmf 7.5x 4.5x

Radient Technologies Inc. C$0.35 $95 $99 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a

Average 10.1x 3.7x 3.1x 15.3x 7.7x 6.1x

Average all 18.4x 18.1x 9.4x 12.8x 26.1x 14.9x

Median all 7.8x 6.4x 4.5x 9.9x 24.4x 9.8x

P / EPSEBITDA EPS EV / EBITDA

VALENS | 24

Tyler Robson, B.A. & Sc.

Based on Mr. Robson’s impressive contributions toThe Valens Company, formerly Valens GroWorks, he was appointedCEO in May 2017 after previously serving as COO. Over the lastdecade Tyler has worked extensively in cannabis science focusingon research and development, proprietary extraction processing andmedical application. Mr. Robson is seen as a thought-leaderthroughout the industry and his expertise has shown through hisimpressive client base at Valens where the Company has securedagreements with some of the worlds most renowned cannabiscompanies.

Chantel Popoff

Ms. Popo� has over a decade of experience in managing 21+Western Canadian retail pharmacy chains, including ShoppersDrug Mart. After her time in pharma, she spent over 6 years insenior managerial roles in the Canadian natural healthfood industry.

Chris Buysen, MPAcc, CPA, CA

Mr. Buysen has over 15 years of diverse financial experienceworking as a senior financial executive with many public and privateorganizations in a wide range of industries. During this time, he wasresponsible for internal and external financial reporting, strategicplanning, treasury, tax, information technology, human resources,financial controls and corporate governance.

Jeff Fallows LLB/MBA, CFA President

Mr. Fallows is an accomplished finance professional with over 17

years experience working on a wide range of financial advisory

mandates in the cannabis, consumer products and industrial products industries. He previously worked as a Managing

Director at AltaCorp Capital Inc

Everett Knight, CFAEVP, Corporate Development and Capital Markets

Mr. Knight holds almost a decade of experience in Portfolio

Management and Investments. At Matco Financial, he launched

the first ever institutional long only cannabis fund in Canada and

managed a small cap fund, ranked #1 in its category. He is

known for his thought leadership and his expertise in analyzing, lobbying, investing, advising, & consulting throughout the

cannabis value chain.

Paul Kunynetz General Counsel

Prior to joining Valens, Paul practiced law at McCarthy Tétrault in

Toronto where he gained extensive experience working on high

profile and complex transactions. His practice focused on

mergers and acquisitions, franchisee/distribution, commercial transactions and private equity with an emphasis on the

automotive and cannabis industries.

APPENDIX:KEY MANAGEMENT (PART 1)


VALENS | 25

APPENDIX:BOARD & ADVISORS

Ashley McGrath Director, President & Owner of Glencoe Developments Inc.

Mr. McGrath has been involved in real estate development for 14years, overseeing all aspects of the development business andoversees the management of multiple development companies inthe commercial, residential and agricultural space.

Chris Buysen, MPAcc CPA, CA Director, CFO

Mr. Buysen has over 15 years of diverse financial experienceworking as a senior financial executive with many public andprivate organizations in a wide range industries.

Tyler Robson, B.Sc. Director, CEO and Co-founder

Mr. Robson has over a decade of cannabis R&D, plant innovationand life sciences experience. He previously held the positionof COO of Valens Agritech Ltd. “Top 100 Leaders in Health Care”by IFAH.

Phil Donne Advisor, Past President/CEO of Campbell Company of Canada, Past CEO of Kellogg Canada

Mr. Donne brings over 30 years of international brand

management, re-structures and bold brand and communication initiatives including the launch of Vector cereal (the largest new

cereal product in 20 years).

Brett Channer Advisor, CEO of Mass Minority, Past CEO of Saatchi + Saatchi

Mr. Channer has over 25 years of marketing industry experience. He was responsible for leading Saatchi Canada to “Most Improved

Agency in Canada” as well as one of the Top 10 creative agencies

in Canada and becoming one of the top performing agencies for growth in the Saatchi Network.

Chris Irwin Director, Partner at Irwin Lowy LLP.

Mr. Irwin advises a number of public companies on a variety ofmatters including continuous disclosure and regulatory matters,reverse takeover transactions, initial public o�erings and take overbids.

Deepak Anand Director, Co-Founder and CEO of Materia Ventures

Mr. Anand is known as global leader in the cannabis sector for hisregulatory, political and industry knowledge. Prior to startingMateria he was the VP of Business Development & RegulatoryA�airs at Cannabis Compliance Inc.

Nitin Kaushal, CPA, CA Director, Managing Director, Corporate Finance at PwC Canada.

Mr. Kaushal has over 30 years of finance and investment expertiseincluding having held a number of senior roles with Canadianinvestment banks, private equity and venture capital industry.


VALENS | 26

APPENDIX:ANALYST OUTLOOK

BROKER DATE RATING TARGET (C$)

AltaCorp Capital Inc. Dec 12, 2019 Outperform $10.25

Haywood Securities Inc. Dec 23, 2019 Buy $7.75

Mackie Research Capital Corp. Oct 18, 2019 Buy $8.00

Eight Capital Nov 12, 2019 Buy $8.25

Desjardins Securities Inc. Dec 23, 2019 Buy $8.00

Canaccord Genuity Jan 24, 2020 Speculative Buy $8.00

M Partners Inc. Dec 23, 2019 Buy $7.80


As of January 31, 2020 The Valens Company is followed by the analysts listed above. Please note that any opinions, estimates or forecasts regarding the Company's performance made by these analysts are theirs alone and do not represent opinions, forecasts or predictions of The Valens Company or its management. By reference to the information above, The Valens Company does not imply its endorsement of or concurrence with any information, conclusions or recommendations as a result of analyst coverage.

LOCATIONS409 KING ST W

TORONTO, ONTARIO

230 CARION RDKELOWNA, BRITISH COLUMBIA

CONTACT US

[email protected]

tvc investors-v5...the global market for cannabis-based drinks is expected to be worth us$1.4...

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