#greentogold

Ancillary equipment, products and services for the cannabis industry

CSE:QCC

F ORWARD L OOK ING S TA T EMENTSThis investor presentation dated Fal l 2017 (the “Presentation ” ) contains “ forward- looking information ” within the meaning of applicable Canadian

securit ies laws and “ forward looking statements ” within the meaning of the United States Private Securit ies Lit igat ion Reform Act of 1995

(col lect ively , “Forward Looking Statements ” ) regarding Quadron Cannatech Corporat ion ( “Quadron ” or the “Company ” ) and i ts subsidiar ies . Except for

statements of histor ical fact , certain information contained herein constitutes forward- looking statements which include management ’s assessment

of future plans and operations and are based on current internal expectat ions , est imates , project ions , assumptions and bel iefs , which may prove to

be incorrect . Often , but not always , forward- looking statements can be identi f ied by the use of words and phrases such as “est imates ” , “ forecasts ” ,

“project ion ” “anticipates ” , “bel ieves ” “expects ” or “ i s expected ” , or “plans ” , “ intends ” , “budgets ” , “goals , ” “objectives , ” “targets , ” or “scheduled ” or

var iat ions ( including negative var iat ions ) of such words and phrases , or statements that certain actions , events or results “may ” , “could ” , “should , ”

“would ” , “might ” or “wil l ” be taken , occur or be achieved . Forward- looking statements are based on the opinions and est imates of management as of

the date such statements are made and are based on var ious assumptions such as : ( i ) the Company ’s abil i ty to generate cash f low f rom operations

and obtain necessary f inancing on acceptable terms ; ( i i ) general economic , f inancial market , regulatory and polit ical condit ions in which the

Company operates ; ( i i i ) consumer interest in Company products ; ( iv ) anticipated and unanticipated costs ; (v ) government regulat ion of the

Company ’s activ it ies and products ; (vi ) the t imely receipt of any required regulatory approvals ; (vi i ) the Company ’s abil i ty to obtain qual i f ied staff ,

equipment and services in a t imely and cost eff ic ient manner ; the Company ’s abil i ty to conduct operations in a safe , eff ic ient and effect ive manner ;

(vi i i ) and the Company ’s construction plans , expansion of faci l i t ies , i ts costs and t imeframe for completion of such plans . Forward- looking statements

are not guarantees of future performance and undue rel iance should not be placed on them . Forward- looking statements involve known and

unknown r isks , uncertaint ies and other factors , which may cause the actual results , performance or achievements of Quadron to be material ly

dif ferent f rom any future results , performance or achievements expressed or implied by the forward- looking statements . Many of these r isk factors

and uncertaint ies are discussed in certain Company documents , in a section entit led “Risk Factors ” , and f i led with the Canadian Securit ies

Administrators which are avai lable on SEDAR at www .sedar .com . Although the Company has attempted to identi fy important factors that could

cause actual actions , events or results to dif fer material ly f rom those described in forward- looking statements , there may be other factors that cause

actions , events or results to dif fer f rom those anticipated , est imated 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 securit ies laws . There can be no assurance that forward- looking

statements wil l prove to be accurate , as actual results and future events could dif fer material ly f rom those anticipated in such statements .

Accordingly , readers should not place undue rel iance on forward- looking statements . Securit ies Laws . This Presentation i s for informational purposes

and does not constitute an offer or a sol ic itat ion of an offer to purchase the securit ies referred to herein . No Reproduction or Distr ibution : The

contents of this presentation are not to be reproduced or distr ibuted 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 avai lable sources which the Company bel ieves are

rel iable , i s not guaranteed as to i ts accuracy or completeness . Third Party Information : Certain information contained in this Presentation with

respect to market trends and products has been obtained or quoted f rom publicly avai lable sources , such as continuous disclosure documents ,

independent publicat ions , media art icles , third party websites (col lect ively , the “Publicat ions ” ) . In certain cases , these sources make no

representat ions as to the rel iabi l i ty of the information they publish . Further , the analyses and opinions ref lected in these Publicat ions are subject to

a ser ies of assumptions about future events . There are a number of factors that can cause the results to dif fer material ly f rom those described in

these publicat ions . None of the Company or i ts representat ives independently veri f ied the accuracy or completeness of the information contained in

the Publicat ions or assume any responsibi l i ty for the completeness or accuracy of the information derived f rom these Publicat ions . Addit ional

Information : Addit ional information relat ing to the Company has been f i led electronical ly through SEDAR and i s avai lable onl ine at www .sedar .com

or at the Company ’s website at www .quadroncannatech .com .

Cannabis oil consumption in Canada is expected to grow from 284L in 2015

to 562,613L by 2020 (198,000% growth) vs. dried marijuana consumption

of 6,388 kg in 2015 to 110,034 kg in 2020 (1,600% growth).

Mackie Research Focus Report, April 8, 2016 at page 24

$ 1 2 6M $3 1 7M $ 1 , 1 8 6M $2 , 1 5 1M

2016 2017E 2018E 2019E

CANADIAN CANNABIS MARKET FORECASTA S S UM I N G F U L L L E GA L I ZA T I O N I N 2 0 1 8

Dried Cannabis Sales CAD$ MExtract /Oil Sales CAD$ M

Total Market Size CAD$ M

Total increase of 34% from Apr 2017-Sep 2017 in Cannabis oil sold, compared to 3% for dried cannabis 

There was a 23% increase in Q2 over Q1 cannabis oil that was sold to clients

There was 29% more cannabis oil sold to clients in Sep Q2 2017 than dried cannabis

8,585 kg inventory of cannabis oil compared to 29,312 kg inventory of dried cannabis as of Sept 2017

13,863 kg cannabis oil sold April - Sept 2017 compared to 11,801 kg of dried cannabis (17% differential)

Ref: https://www.canada.ca/en/health-canada/services/drugs-health-products/medical-use-marijuana/licensed-producers/market-data.html

CANADIAN ACMPR MARKET DATA 2017/18

Dried Cannabis Sales CAD$ MExtract /Oil Sales CAD$ M

Dried Cannabis Sales  Extract /Oil Sales  

S TA T I S T I C S F R OM H EA L T H CANADA

PROB L EM

Cannabis extracts and extract -based products are in high demand but the highly

special ized equipment , production environments and expert ise required to make

these products are largely inaccessible , rudimentary and scarce ,

There are no establ ished standards for test ing , packaging or industr ial

manufacturing when i t comes to cannabis -based products ,

SO LU T I ONQuadron Cannatech provides  high precis ion automated extract ion and processing

solut ions through ful ly integrated equipment , anci l lary products and services .

SPECIALIZED EQUIPMENTRESEARCH & DEVELOPMENT ANCILLIARY PRODUCTS & SERVICES

Vert ical ly Integrated for

continuous improvement of

our equipment , anci l lary

products  and services  

Scalable , turn -key

systems and laboratory

environments for cannabis

extract ion and processing  

 Customized and branded

end -user products that

complement our extract ion

and processing systems

CO2 EX TRAC T I ON E QU I PMENT

PLUG & PLAY DESIGNSet-up  & train within hours

HIGH-CAPACITY 45L VESSEL

REMOTE MONITORING & CONTROLSoftware col lects , store & analyzes data

For large scale extract production

El imination of manual valves

AUTOMATED CONTROLS

Quadron 's   'BOSS CO2 Extraction System '

del ivers innovation in cannabis extract ion with

an exclusive "Plug & Play " design , proprietary

max f low technology and advanced

thermodynamics ,

1st BOSS machine sold Dec 2017 . 2 addit ional

sales in Jan 2018 : 1 in Canada and 1 in the U .S .A .

BOSS CO2 EXTRACTION SYSTEM FEATURES INCLUDE:

U .S . D I S TR I BU T I ON

In Nov 2017 , Quadron and Lucid Lab Group (LLG )

s igned a definit ive development and

distr ibution agreement .  LLG   i s a leading

cannabis equipment distr ibutor based out of

Washington State with extensive distr ibution

channels across the U .S .

Quadron and LLG wil l co -develop 4 new

extract ion and processing systems for

commercial release to the North American

cannabis market over the next 30 months .

LLG wil l become a preferred sales agent in the

Western U .S . for al l processing systems offered

by Quadron .

US Extracts & Oils Market:

Cannabis concentrate sales have grown f rom

$3 ,483 ,681 in 2014 to $143 ,282 ,686 in 2016 in

Washington State (Washington State Liquor  &

Cannabis Board ) .

L UC I D LAB GROUP PARTNERSH I P

ANC I L LARY PRODUCTSThe concentrates market in Cal i fornia

generated $169M in sales in the second

quarter of 2017 alone . Vape pens accounted

for 61% or $103M of dollars sold .

Through the company 's products divis ion ,

Quadron provides anci l lary products such as

vape pens , vape cartr idges , inhalers , capsules ,

t inctures , edibles , etc .

Quadron provides branding services as well as a broad range of branded ancil lary products and consumption devices creating an end-to-end solution for authorized growers.

Quadron plans to expand into capsules and

suppositor ies market this year (2018 ) .

ANC I L LARY S ERV I C E SQuadron works with l icensed operators to

design and set -up laboratory environments

with the equipment and personnel required

for anci l lary product manufacturing and

extract production .

Quadron provides tai lor made service

contracts including faci l i ty design and

planning ,   laboratory set -up , and   systems

implementation ,  

Anci l lary service contracts are tai lored to each

cl ient ’s unique extract ion and processing

needs and end -product goals ( i .e . extract

products , vape pens ,  capsules , etc ) .

By working with Quadron ’s team of experts ,

cl ients have access to  the company 's   ful l suite

of equipment and services , enabl ing them to

penetrate the high margin cannabis oi ls

market .

MOB I L E EX TRAC T I ON E QU I PMENTQuadron has designed and manufactured ful ly

portable extract ion and processing labs to

service l icensed growers on -s ite .

Mobile units come in dif ferent modules to suite

the specif ic production needs of the cl ient .  

Each module offers a turnkey , scaleable

control led -environment providing growers

access to automated extract ion systems and

increased margins .

On -s ite extract ion i s a lucrat ive niche market

al lowing Quadron to apply i ts diverse industry

knowledge and expert ise to quickly generate

high margin revenue .

Mobile units are currently undergoing the f inal

stages of test ing . Two mobile units  are

anticipated in f ie ld Spring 2018 .

CYB ERNE T I C CONTRO L SYS T EMS I N C .Cybernetic i s Quadron ’s in -house engineering

and automation group , acquired in March 2017

Cybernetic provides Quadron with automation

and manufacturing expert ise for the design and

development of Quadron ’s l ine of cannabis

extract ion and processing equipment .

Cybernetic has a proven track record of

designing , fabricat ing and supplying custom and

standard machines bringing automation to the

process manufacturing and industr ial sectors .

                           Cybernetics awarded l icense to

be technical distr ibutor and integrator for

Schneider Electr ic , a global special ist in energy

management and automation .

September 2017,  

Integrated industry solutions from green to gold  

#greentogold

PACKAGING

CANNABIS

PROCESSING FORMULATIONEXTRACTIONCANNABIS PACKAGINGPROCESSINGEXTRACTIONCANNABISCANNA B I S P R O C E S S I N G E X T RA C T I O N F O RMU LA T I O N PA C KA G I N G

F ROM GRE EN TO GO LD

GROWTH& P ER FORMANCE

2017 revenue of $1 ,789 ,788 compared

to 2016 revenue of $166 ,823 .  

2017 gross margin for the year of

$502 ,320 (28%).

Q1 2017 Revenue of $516 ,211 , a 131%

increase over Q1 July 31 , 2016  and a

243% increase over Q4 2016 .

Q2 ending Oct 31 , 2017 revenue

was $435 ,749 with a prof it margin

of 53%

Q C C R e v e n u e A v g . V o l 6 6 1 . 5 6 k ( 3 mon t h s )

QCC SHARE S TRUCTUR EIn January 2018 , Quadron Cannatech closed a $5 mill ion

dollar bought deal f inancing (at $ .70 per share ) .

MANAGEMENT

Chief Financial Off icer ,

Quadron Cannatech

Director , President & CEO ,

Quadron Cannatech

Director ,

Quadron Cannatech

   

Director ,

Quadron Cannatech

Director , Chair of the Board ,

Quadron Cannatech

Partner at Cassels

Brock & Blackwell LLP

in the Securit ies

Group with focus on

primari ly on

securit ies and

corporate f inance

matters .  

Active in the public

market for more than

two decades , Mr .

Durno acts for i ssuers ,

investment dealers &

investment advisors

across a range of

industr ies .

Mr . Durno i s a

member of the TSX-V

List ing Advisory

Committee (BC ) .

President & CEO of

Emprise Capital

Corp . ,     a Vancouver

based merchant

banking company  

Over 25 years of

experience in the

f inancial services &

capital markets

industr ies having

held senior executive

roles in var ious

capacit ies .

Experience with

public company

operations on a

number of publicly

traded and private

‘start -up ’ companies .

Over 23 years

experience in the

f inancial services &

capital markets

industr ies .  

Extensive experience

with public company

operations with

regulatory

requirements ,

f inancial statements ,

rais ing capital , &

shareholder

relat ions .  

BBA (Business Admin

special ized in

Finance ) , completion

of Canadian

Securit ies Course .

Over 30 years of

experience in

f inance and

administrat ion .  

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 f rom

the Cert i f ied

Management

Accountants of

Canada .

Over 16 years of

business ,

entrepreneurial and

legal experience

special iz ing in corporate

law and regulatory

affairs  

Served as strategic

advisor and counsel in

the venture capital

space for well over a

decade .  

Co- founder and

Executive Director of the

Cannabis Trade All iance

of Canada (CTAC ) , and

special advisory to the

Canadian Associat ion of

Medical Cannabis

Dispensaries (CAMCD ) .  

Extensive experience in the cannabis industry with expertise in regulation and legislation , corporate &

securit ies law , f inance , biological engineering , mechanical engineering , and extraction technology .

Rosy Mondin    Jeff Durno Scott Ackerman  Doug McFaul  Robert Chisholm

MANAGEMENT CONT .

Lead Chemist ,

Quadron Cannatech

   

Kieran Forristal      

Founder ,

Soma Labs Scienti f ic

   

   

Founder ,

Cybernetic Control Systems

Lead Scientist ,

Soma Labs Scienti f ic

   

30 years of business

experience as an

innovator and

successful

entrepreneur .  

CEO of Odorchem ,

manufacturer and

distr ibutor of ‘ONA ’

15 years ’ experience

working with

supercr it ical CO2 &

25 years ’ experience

in mechanical design

and systems

automation .  

Over 20 years capital

market experience

working on the

capital market

trading f loors in top

ten international

Investment banks .  

Worked at BNP

Paribas , Bank of

America and Union

Bank of Switzerland  

Experience with

complex & structured

derivat ive process

control ,

management ,

eff ic ient operational

growth & regulatory

governance .

Extensive experience

in automation &

machine

development ,

uti l iz ing 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 ) f rom

BCIT .  

Chemical

engineering and

Green Chemistry

research special ist .  

Extensive experience

in clean oi l

upgrading and CO2

extract ion systems  

A background in

process optimization

and research

leadership ,

bioref inery chemistry

expert ise  

BASc (UBC ) &10

years hands -on

experience in

chemical &

biological

engineering .  

Developing new

technologies in the

waste to energy

(green energy )

sector .  

3 years as lead

chemist for

Odorchem

President Soma Labs and

Greenmantle Products

Shane Lander  Michael MacDonald Greg Curtis  Peter Hausmanis

In -house engineering ,

manufacturing and science -related

technology experience gives

Quadron a leading edge

G R OW I N G CANAD IAN MA RK E T                                          

Cannabis oi l consumption

expected to grow   f rom 284L

in 2015 to 562 ,613L in Canada

by 2020 (198 ,000% growth )

L EAD I N G I N I N N O VA T I O N

The BOSS CO2 Extractor

i s a ful ly automated system

that al lows growers to use

programmed cycles to

produce the highest

qual ity oi ls

O R GAN I C R E V E N U E G R OWTH

Revenues grew to $1 ,789 ,188

in 2017 f rom 2016 revenues

of $166 ,823  

D I S T R I B U T I O N PA R TN E R S H I P S

Q UADR ON ’ S AD VAN TA G E

P R O V E N MANA G EM EN T T EAM

Extensive experience in the

cannabis industry with expert ise

in regulat ion and legis lat ion , law ,

f inance , biological engineering ,

mechanical engineering , and

extract ion technology .  

Quadron has announced a

definit ive development &

distr ibution agreement  with Lucid

Lab Group  to  sel l  equipment

in the Western USA

 

I N V E S TMENT H I GH L I GH TS

Director, President & CEO

rosy@quadroncannatech.com

1.604.346.8118

Investor Relations Representative

QCC@kincommunications.com

1.604.684.6730 | 1.866.684.6730

1600 - 609 Granville St.

Vancouver, BC | V7Y 1C3

www.quadroncannatech.com 

Quadron Cannatech Corporation

Caleb Jeffries

Rosy Mondin 

CSE:QCC