world cannabis · 2018-09-24 · indoor, greenhouse horticulture adapting pharmaceutical...

MEDICAL

MEDICAL & RECREATIONAL

World Cannabis Landscape.

“The global legal marijuana

market is expected to reach

USD 146.4 Billion by end of

2025” — Grand View Research, Inc.

April 2018

3 TSX.V:PURE OTC:PRCNF

Comprised of pharma-industry experts, our team is dedicated

to producing the highest quality – consistently PURE –

cannabis products. Our vision is to become the most trusted

global brand, while harnessing the therapeutic properties of

cannabis in tomorrow’s medicines and consumer products.

Canadian Leadership With A Pure World View


Why Own PURE?

Attractive Relative

Valuation

Exceptional Leadership

Team & Advantageous

Intellectual Property

Fully-Funded Milestones

International Exposure

- Production in Canada

& Colombia *

* Assumes completion of binding LOI signed with Avicanna Inc, previously announced August 15, 2018

** Assumes 75% interest in Sativa Nativa S.A.S. *** As of September 4, 2018

TSX.V: PURE

OTC: PRCNF

Price: $0.34/share***

Market Cap: $50M

Fully diluted: 182.8M

Mdn market cap of Cdn LP: $217M

Avg market cap of Cdn LP: $1.12B

PURE expecting total production

capacity of 132,000 KG in Canada

& Colombia** - GMP grade

facilities

Issued & outstanding: 148.2M

Warrants & options: 34.6M

Focused on domestic &

international distribution - medical

clinics, wellness segment,

recreational, EU & Latin American

exports

Aggregate PURE production

footprint expected to be 904,000

square feet**

Canada’s first multi-ponic cannabis

farm, a patent pending system

producing yields several fold greater

than traditional operations

Patent-pending high-efficiency

vertical farm maximizes utility of

production footprint

Seasoned pharma-industry experts

and world-renowned specialist in

plant genetics, commercial scale

indoor, greenhouse horticulture

Adapting pharmaceutical

technologies to develop unique

cannabis formulations for specific

use cases

2 Licenses*:

Flagship Brampton Facility – 41,000 sq ft

Flagship Colombian Facility - Sativa Nativa S.A.S.* - 28 hectares

Canada - Completed phase 1, phase 2 &

3 expected completion by Q4 2018 and

Q1 2019

Canada - Total 41,000 sq ft. proprietary

multi-ponic vertical cultivation facility -

expected total funded production

capacity of 8,000+ kg per annum

Colombia - 100,000 sq ft. GAP

greenhouse nearing completion along

with 20,000 sq ft. GMP grade

greenhouse & extraction facility

Colombia - Additional 1,000,000 sq ft.

leading state-of-the-art greenhouse

anticipated at a fraction of the cost to

traditional Canadian producers

Branding of PureSinse™ as

primarily Medicinal & Wellness

brand for Canadian distribution


Flagship Canadian Facility -Brampton CampusThe PureSinse facility sits in the heart of an industrial district in Brampton, Ontario, strategically located 10 minutes from the Toronto International Airport and 35 minutes to the downtown core.

• Completed Phase 1• Level 9 Vault Stores $32M in Product

• Extraction, QA & Microbiology Labs

• Order Processing & Packaging

• Shipping & Receiving

• Security, IT & Admin

• Automated Controlled Growth Environments

• Multiple Tiers of Vertical Farming Cultivation

• Tissue Culture, Cloning, & Mother Rooms

• Drying, Trimming & Processing

• Extraction, Processing, & Packaging

• Vertical Farming Cultivation

• Cloning, Vegetation & Flowering

• Scaled Extraction & Distillation Lab

• Order Processing & Packaging

• Advanced Analytical R&D Laboratory

Q3 2018

Q1 2019

18,000 SQ. FT.

4,000 kg/yr *

Q1 2019

41,000 SQ. FT.

8,000 kg/yr *

PH

AS

E 1

*P

HA

SE

2*

PH

AS

E 3

*

Continuously evaluating opportunities for additional expansion, both at our current facility and beyond.

*Estimated


● PureSinseTM

– Medical and Wellness focused brand, wholly owned subsidiary, PureSinse Inc, licensed to cultivate under the Access to Cannabis for Medical Purposes Regulations ("ACMPR"), anticipates to receive its ACMPR Sales License in Q3/Q4 2018

● Completed Phase 1 buildout - Commenced Phase 2 & Phase 3 congruent build-outs with completion expected during Q4 2018 and Q1 2019 respectively – Phase 1 ready for Sales Licensing

● Fully secured inventory - Secured inventory in excess of $1.5M with agreements with Supreme, among other top tier Licensed Producers, pursuing additional long-term supply agreements

● GMP/ISO Facility + R&D Lab – Initiated data collection for European Good Manufacturing Practice (”euGMP") and ISO certifications (euGMP expected H1 2018), along with investment in advanced analytical R&D laboratory for product formulation, derivatives and extracts processing

● Revenue Generation & Distribution - Customer acquisition, branding, and sales strategy includes partnerships with major Canadian medical clinics, along with the expected inclusion in future provincial product calls nationwide - PURE expects revenue generation to commence shortly upon receipt of Sales License in Q4 2018

Canada - Secured Inventory -Ready for Sales

Phase 2/3 Facility

Expansion Complete

Estimated Q4

2018 / Q1 2019

Sales License ReceivedEstimated

Q3/Q4 2018

ACMPR Cultivation

License Received

December

2017

Secured Product InventoryMay-Sept

2018


The Root

Is The Heart:Closed-loop systems allow us to

tailor the biochemistry and nutrients

to deliver exactly what the roots need

at every stage for optimal growth.

Best

In Class:Targeted spectrum LED lighting

systems ensure the plant expends

all its energy on growing the purest,

most abundant high-grade flower.

More

Canopy, Less

Space:

Vertical farming enables us to grow

multiple tiers of canopy, exponentially

increasing potential yield from the

same square footage.

Individual

Attention:

Utilizing controlled-growth environments,

every plant is meticulously cared for and

monitored throughout its life cycle to

ensure optimal growth.

Canada’s First Multi-PonicCannabis FarmPure’s VP Production is an award-winning plant geneticist and horticulture

specialist, with extensive experience growing hundreds of plant varieties and

managing commercial-scale grow operations across the globe.

Pure has designed a unique multi-ponic* growing system that combines the best-

practices of hydroponics, aquaponics, and aeroponics, with world-class commercial

agriculture methodologies. Our automated system is capable of growing more

plants in less time, without the use of herbicides or pesticides.

*Patent pending

Yieldof similarfootprint3x


Consumer Brand Targeting Medical & Wellness


• Targeted branding in the medical and wellness segments

• Partnerships with clinics, health care professionals, and patient advocacy groups nation-wide

• R&D driven - investing in accelerated pharma drug development with JVs with large pharma and academia

• Client Experience is at the top of our list of priorities

• Driven by Trust by uncompromising Quality and Product Consistency and leveraging GMP and ISO standards

• Customer-Shopper-Consumer centric branding strategies to create a market segment focused lifestyle brand

Assuming Pure Global’s 75% interest in Sativa Nativa, PURE will have total production capacity of 132,000+ kg, by Q1 2020 across a combined 904,000 sq. ft. in Canada & Colombia*

● Sativa Nativa S.A.S. - Signed binding LOI with Avicanna Inc. ("Avicanna") to obtain a 60% interest in Sativa Nativa S.A.S. ("Sativa Nativa"), with an option to increase PURE’s interest to 75%.

● Issued Licenses - Sativa Nativa has been issued licenses for the cultivation of psychoactive and non-psychoactive cannabis, and for the manufacturing of cannabis derivatives by the Colombian Ministry of Justice and Colombian Ministry of Health

● Large land package - Includes up to 28 hectares (69 acres) of agriculture land with existing irrigation and infrastructure, situated at the foothills of the Sierra Nevada mountains, in Santa Marta, Colombia, ideal climate for lowest input costs possible

● Leading state-of-art greenhouse - 100,000 sq ft. GAP greenhouse situated on land package nearing completion, along with a 20,000 sq ft. GMP indoor facility, and have commenced design of an additional 1,000,000 sq ft. leading state-of-the-art greenhouse using advanced growing technologies for greater yields.

● Fraction of Capital and Operational costs versus Canadian producers, ideal for global export and long-term access to high-quality low-cost inputs

Flagship International Facility Sativa Nativa S.A.S. - Colombia*

*Assumes completion of binding LOI signed with Avicanna Inc, previously announced August 15, 2018


The Colombian Advantage

● Comprehensive Legal Framework - Regulations already in place for the export of cannabis (to EU 700M people and South Americas 400M people) and access to Colombia’s 50M population. Colombia has secured cannabis export quota of 40.5 tons, representing 44% of 2018’s global demand

● World-Leading Agricultural Region - Santa Marta, Colombia provides the ideal cannabis production climate with 12 hours of light per day, year-round, allowing for 4 cultivation cycles per year, with ideal humidity at the foothills of the Sierra Nevada Mountains

● Quality Work Force - Strong and relatively low-wage workforce, access to private water wells, attractive energy costs, international ports, all are ideal conditions for economical cannabis cultivation, processing, and global export

● Cost Competitive advantage - Cultivation costs in Colombia compared to Canadian-based facilities will result in a cost per gram to PURE that provides significant leverage in its Colombian-based production destined for international export

● Strong Partnership with Avicanna - Provides access with Sativa Nativa to a comprehensive program of over 80 registered and characterized genetics representing one of the largest genetic banks in Latin America

Santa Marta★


A Quicker Path To Revenue With ConcentratesThe foundation for all medical applications and high-margin

recreational products is cannabis concentrates.

Our Phase 1 facilities are equipped with GMP standard clean

rooms to produce and package innovative and proprietary

extraction formulations for retail and medical markets.

Canadian Oil Sales International Oil Exports

30%GROWTHQuarter over quarter

300%INCREASE

From 2016 – 2017

Seedlings &

Clones

Edibles &

Beverages

Soft Gels &

Capsules

Transdermal

Patch

Cannabis Oils

Sublingual

Strip/Spray

Dried

Flower

Topicals

Vape Pen

Cartridges

Wellness

Products


Pure Patient Driven Solutions

Marketing

1. 2. 3. 4.Quality First

Exceptional

ServiceClinic Partnerships

Innovative

Our multi-ponic vertical farm is

rooted in world-class

commercial horticulture and

delivers uncompromising

quality and consistency.

Continuous feedback loops

curate a deep understanding of

our patients’ needs, and ensure

satisfaction and engagement

during every interaction.

Utilizing proven formulas for rapid

patient acquisition leveraging

alliances with clinics and referring

physicians to capture market share

and increase loyalty.

A bold, multi-faceted

brand strategy creates

immediate demand and

opens up new patient

acquisition touch-points

across growing customer

verticals

Our core focus on purity puts patient wellbeing at the centre of everything we do.

“Over the long term, we believe consumers will develop a better understanding of cannabis and be able to segment

products based on perceived quality. As a result, although a strong brand may encourage initial trial, there must be

perceived product quality and a consistent user experience to validate the brand and generate repeat purchases.”

— BMO, Canada Leads the Global Cannabis Paradigm Shift, May 2018


Management

Michael LavergneHead of Supply Chain

Hands-on sustainable supply chain

and operations professional with 20

years of multinational experience in

fast-moving consumer goods

(FMCG) / retail. Former VP Global

Supply Chain Shoppers Drug Mart,

held senior positions at Joe Fresh

and Walmart.

Nader Gheshlaghi, PhD, MScVP, Production, PureSinse Inc.

World renowned Plant Genetics &

Pathologist, has managed large-

scale grow operations for hundreds

of medical and commercial plant

varieties around the world with

international industry and academic

awards, and many patents.

Trupti P. Smit, LLBDirector of Corporate and

Legal Affairs

15 years as cross border

transactions, corporate, intellectual

property, commercial and

international tax lawyer; Legal

Counsel at RBC International Tax

and Transfer Pricing.

Malay Panchal, RPh, BScPhm

Founder & CEO, Board Member

A seasoned serial-entrepreneur with

20+ years experience in pharma B2B

technology, retail and mail-order

pharmacy, pharma branding and

clinical trials.

Stephen PynnVP, Corporate Development

Significant experience in Capital

Markets and Corporate Finance with a

focus primarily on the cannabis sector’s

financings and public offerings. Former

cannabis Capital Markets expert at PI

Financial Corp. participated in over

$800M of financings.


Vik Chopra, MBAVP, IT and Business Operations

Program delivery expert with 20 years

of experience at tier 1 advertising and

technology companies. Strong

understanding of agile project

management methodology, business

and IT operations. Held senior

positions at Y&R, Kobo and Postmedia

Network..

Vishwas Sawant, MBAGeneral Manager, PureSinse

30 years of global experience in

heavy engineering manufacturing,

agribusiness, retail and IT. Former

CEO, Farmers Co-op, India, 55M

CAD revenue, 1200 employees.

Bhup Gosain, CPA, CA, CPA (IL)Chief Financial Officer

30+ years experience in tax and

business advisory services in a variety

of sectors including technology, life

sciences, biotechnology, natural

resources and pharma. Former senior

management at Deloitte and partner at

MNP.

Board

Malay Panchal, RPh, BScPhm

Founder & CEO, Board Member

A seasoned serial-entrepreneur with 20+

years experience in pharma B2B

technology, retail and mail-order

pharmacy, pharma branding and clinical

trials.

Dr. Chandra Panchal, PhD

Chairman

Distinguished resume includes Director for

MaRS Innovation, senior scientist at John

Labatt Ltd., and Chairman, President and

CEO at Procyon Biopharma Inc. CEO of

Axelon pharma, Director in several public

companies.

Jane Pagel, MScBoard Member

Retired executive with extensive

experience, previously held positions as

the President & CEO of the Ontario

Clean Water Agency, and Director of

Research & Technology at the Ministry of

the Environment.

Brian O’Neill, BSc, LLBBoard Member

Nearly a decade in the practice of law at

a leading national law firm, focused on

M&A, corporate reorganizations,

corporate finance, intellectual property,

and commercial transactions. BSc

(Hon) Molecular Genetics, 10 years at

McCarthy Tetrault LLP.

Albert Beraldo, CPA, CABoard Member

More than 30 years’ experience in

various senior leadership roles within

the pharmaceutical and biotechnology

industry, including Founder & CEO of

Alveda Pharmaceuticals Inc.


Capital Markets Advisors

Jeffrey ZichermanEventus Capital

Founder and CEO of a leading investment bank based in Toronto,

Canada. Jeff has led or been directly involved in raising over $600 million

in equity for numerous public companies in recent years, including several

cannabis mandates.

Aaron SalzStoic Advisory

Founder and CEO of a pioneering financial advisory firm focused on the

cannabis industry. Aaron has been directly involved in over $1.5 billion of

M&A transactions in the cannabis industry alone and advised numerous

CEOs and boards of directors in the sector.

Trina FraserBrazeau Seller Law

The foremost cannabis policy and

regulatory expert in the industry,

Trina is actively working with Pure

Global on regulatory affairs and

licensing applications.

Jim YoumansRx Samples Solutions USA

40+ years experience in corporate

pharma. Former CMO Glaxo global,

Former President Sandoz Global,

Former COO Novartis Global advising

on medical branding, sales and

market strategies.

Paul SparkesNorris Point Capital

Former senior aid to two Premiers,

Director of Operations to Prime

Minister Chretien, former LCBO

board member; advising on market

penetration strategies.

Industry Advisors

Dr. Matthew D. Burnstein B.Sc., M.D.Appletree Medical Group

Over 35 years of practice as a family

physician. Certified Medical Review

Officer, trained to develop workplace drug

and alcohol programs, as well as interpret

drug tests.


Pure Capital Structure


TSX.V:PURE

OTC:PRCNF

$0.34/share*

Market cap $50M

Issued and outstanding 148.2M

Warrants and options 34.6M

Fully diluted 182.8M

Cash $11.2M**

Debt $0**

Management and Insider Ownership - 21%

*As at September 4, 2018 | ** As at July 11, 2018

Market Cap Range: $37M-$13.1B

Average Market Cap - $1.12B

Median Market Cap - $217M

Pure Global Cannabis (TSX.V:PURE) has exposure to 2 Production Licenses in Canada & Colombia*

$50M market cap - 132,000+ kg production capacity for Q1 2020 over 904,000 sq ft. - fully funded

Canadian & Colombian Comps

Source: Company Reports, Thomson Eikon, SEDAR, Analyst Estimates, Basic Market Capitalization as of August 31, 2018


* Assumes completion of binding LOI signed with Avicanna Inc, previously announced August 15, 2018

pureglobal.com | [email protected]

world cannabis · 2018-09-24 · indoor, greenhouse horticulture adapting pharmaceutical...

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