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EveCannabis.ca
TSX-V: EVE
CORPORATE
PRESENTATION
November 2018
IMPORTANT: YOU MUST READ THE FOLLOWING
The information contained in this presentation has been prepared by
1600978 Ontario Inc., operating as Eve & Co Incorporated (EVE or the
“Company”) and contains confidential information pertaining to the
business, operations and assets of the Company. The information
contained in this presentation (a) is provided as at the date hereof and is
subject to change without notice, (b) does not purport to contain all the
information that may be necessary or desirable to fully and accurately
evaluate an investment in the Company, and (c) is not to be considered
as a recommendation by the Company that any person make an
investment in EVE. An investment in the securities described herein is
speculative and involves a number of risks that should be considered by
a prospective investor.
This presentation is confidential and is being provided to you solely for
your information and may not be reproduced, in whole or in part, in any
form or forwarded or further distributed to any other person. Any
forwarding, distribution or reproduction of this presentation in whole or in
part is unauthorized. By accepting and reviewing this presentation, you
acknowledge and agree (i) to maintain the confidentiality of this
presentation and the information contained herein, (ii) to protect such
information in the same manner you protect your own confidential
information, which shall be at least a reasonable standard of care, and
(iii) to not utilize any of the information contained herein except to assist
with your evaluation of a potential investment in the Company.
CAUTIONARY NOTE REGARDING FUTURE-ORIENTED FINANCIAL
INFORMATION
To the extent any forward-looking information 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 information generally, are, without limitation, based
on the assumptions and subject to the risks set out below under the
heading “Cautionary Note Regarding Forward-Looking Information”. Eve
& Co Incorporated’s actual annual production, financial position and
results of operations may differ materially from management’s current
expectations and, as a result, the Company’s annual production, income,
expenses and net income may differ materially from the profiles provided
in this presentation. Such information is presented for illustrative
purposes only and may not be an indication of the Company’s actual
annual production, financial position or results of operations.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING
INFORMATION:
This presentation includes forward-looking information and forward-
looking statements within the meaning of Canadian securities laws.
Statements containing the words “believe”, “expect”, “intend”, “should”,
“seek”, “anticipate”, “will”, “positioned”, “project”, “risk”, “plan”, “may”,
“estimate” or, in each case, their negative and words of similar meaning
are intended to identify forward-looking information. Forward-looking
information involves risks and uncertainties including, but not limited to,
the Company’s anticipated business strategies, anticipated trends in the
Company’s business and anticipated market share, that could cause
actual results or events to differ materially from those expressed or
implied by the forward-looking information, general business, economic
and competitive uncertainties, regulatory risks including risks related to
the expected timing of EVE’s licenses and expansions, market risks,
risks inherent in manufacturing and agricultural operations as well as
other general risks of the cannabis industry. Such statements are based
upon the current beliefs and expectations of the Company’s management
and are subject to significant business, social, economic, political,
regulatory, competitive and other risks, uncertainties, contingencies and
other factors. Many assumptions are based on factors and events that
are not within the control of Eve & Co Incorporated. Actual future results
may differ materially from historical results or current expectations.
These risks, uncertainties and assumptions could adversely affect the
outcome and financial effects of the plans and events described herein.
In addition, even if the outcome and financial effects of the plans and
events described herein are consistent with the forward-looking
information contained in this presentation, those results or developments
may not be indicative of results or developments in subsequent periods.
Although Eve & Co Incorporated has attempted to identify important risks
and factors that could cause actual actions, events or results to differ
materially from those described in forward-looking information, there may
be other factors and risks that cause actions, events or results not to be
as anticipated, estimated or intended. Forward-looking information
contained in this presentation is based on the Company’s current
estimates, expectations and projections, which the Company believes
are reasonable as of the current date. The Company can give no
assurance that these estimates, expectations and projections will prove
to have been correct. You should not place undue reliance on forward-
looking information, which is based on the information available as of the
date of this presentation. Forward-looking information contained in this
presentation is as of the date of this presentation and, except as required
by applicable law, the Company assumes no obligation to update or
revise them to reflect new events or circumstances. Historical statements
should not be taken as a representation that such trends will be
replicated in the future. No statement in this presentation is intended to
be nor may be construed as a profit forecast. Additional information
related to EVE, including risks and uncertainties, can be found on the
Company’s SEDAR profile at www.sedar.com.
Disclaimer
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Caution Concerning Forward Looking Statements
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• EVE & Co is located in Strathroy, Ontario and listed
on the TSX-Venture Exchange (EVE) as well as the
OTCQB Venture Market (EEVVF)
• Cultivation license granted July 22, 2016
• Sale license granted June 21, 2018
• Extraction license granted September 14, 2018
• New flowering room approved December 7, 2018
• Anticipated approval of 780,000 sq. ft. expansion in
Q3 2019
• Situated on a 32-acre property
• Sales strategy focused on direct
to retailer (recreational market)
and B2B (export and domestic
medicinal markets)
• Annual production capacity of
~10,000 kg increasing to
~50,000 kg with expansion
project
COMPANY SNAPSHOT
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PRODUCTION AND EXPANSION
CURRENT SIZE
• 220,000 sq.ft. existing
greenhouse space
• 120,000 sq.ft. original with
100,000 sq.ft. new flowering
room
• Production Capacity:
~800 kg per month
EXPANSION
• Estimated completion June
2019
• 780,000 sq.ft. expansion
• Increases capacity to
~4,000 kg per month
• Construction cost: ~$32
million
COMBINED CAPACITY
• 1,000,000 sq. ft. total
greenhouse space
• ~50,000 kg per year
CURRENT FACILITY PHASE 1 PHASE 2
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SALES STRATEGY
RECREATIONAL MARKET (CANADA)
• Sales will be made directly to authorized
retailers
• MOU signed with B.C, Ontario, and
Newfoundland for distribution
• Additionally product to be sold directly to
other LPs
MEDICINAL MARKET (CANADA)
• B2B sales strategy for sale of clones
to other LPs
• Product to be sold directly to other
LPs
• Ongoing discussions for long-term
supply agreements
MEDICINAL MARKET (EXPORT)
• Company has signed a pre-sales
agreement with distributors for
pharmaceutical and other products in
Germany
• Sales starting at approximately 100
kg per month, ramping to 300 kg per
month after year 1
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BC
ON
NL
Eve will be balancing brand awareness
with pricing when selling Cannabis in
the two largest addressable markets:
B.C. and Ontario.
MOU / LOI
Eve is building
inroads to access
the lucrative
German Cannabis
market through
established German
operators and
through partnerships
with new applicants
The first and only
Licensed Producer in
Canada to offer quality
clone plants to the
recreational market in
Newfoundland Labrador
SALES STRATEGY
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SALES STRATEGY
Eve will be offering
multi-serve flower in
various sizes in
addition to pre-rolled
products
A fully automated
packaging system will
maintain high quality
control and reduce
costs
First Licensed
Producer to ship
clones directly to
consumers for the
Canadian recreational
market.
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CLONES VEGETATIVE FLOWERING ROOM
OPERATIONS
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OPERATIONAL MILESTONES
2017 2018 2019
Q3 Q4 Q1 Q2 Q3 Q4 Q1
JULYFlowering grow area
in full production
(64,500 sq.ft)
SEPTEMBERHarvesting at full
capacity
NOVEMBERConstruction of an additional
100,000 sq ft of flowering
production to commence
JANUARYRamp up vegetative production
for new flowering space
JULYConstruction completed of
additional flowering space
JUNESales license issued
JUNEConstruction commenced on
second expansion
DECEMBERApproval of second flowering
room and packaging room
Approval to commence sales to
provincially authorized retailers
and distributors
JUNE 2019Construction estimated
completion
FALLHarvest to start in expansion
CURRENT FACILITY NEW FLOWERING EXPANSIONNote: Such milestones may not be reached pursuant to the above schedule or at all.
Refer to “Disclaimer-Cautionary Note Regarding Forward-Looking Information.”
SEPTEMBERExtraction License Issued
MARCHFirst harvest for new
flowering room
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COMPARABLES
As at: Jan 15, 2019
Note: * Fully diluted and in the money enterprise value
(1) Eve & Co multiple is based on 2020 estimated EBITDA of ~$40 M
Source: S&P Capital IQ, Company Filings, Haywood Securities
EV*/ 2020E EBITDA
42.6x
38.0x
16.3x
13.7x
9.9x8.2x 8.1x
4.3x 4.1x3.1x 2.7x 2.7x 2.3x
Average - 12x
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GREENHOUSE EXPERIENCE
• Original founders have 65+ years of
combined growing experience
• The Rombouts Families are involved
in large scale greenhouse growing
with a total of 50 acres under
poly/glass and immediate
expansions underway to increase to
over 3M sq. ft of total greenhouse
production.
• Experience in growing thousands of
varieties of plants including
vegetable, flowering, clone and
Cannabis production as well as
distribution throughout North
America to large retail chain stores.
• Knowledge of scalability,
greenhouse expansion, best
greenhouse practices and
greenhouse systems
• Greenhouse connections and
knowledge of state-of-the-art
greenhouse systems for
knowledgeable spending
CEO Experience
• Honours Biology with Specialization in Plant Biology, Legal Studies Option and BA, University of Waterloo
• 20 years as previous lead grower
• First Canadian producer of algae products for the nutraceutical market, recipient of Agri Innovations Award
• Development of Quality Assurance programs for nutraceutical and Cannabis production 10 years
• Health Canada Approved Quality Assurance Person (QAP)
• Composed Standard Operating Procedures (SOPs) and ensured Good Production Practices (GPP) and facility compliance
• Regulatory Affairs, application submission and Health Canada communication
• Senior Person in Charge (SPIC) ensuring ongoing security, QA and GPP compliance to the Cannabis Act
• 25 years Business experience in brand development, business development and expansion, marketing, advertising, in greenhouse, agricultural, nutraceutical, Cannabis, and real estate industries.
• 5 years experience with Ministry of Agriculture and Food
Focus on Production
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Grow Team
Grow Team Greenhouse
Experience
Agricultural
Experience
Cannabis
Experience
Education and
Certifications
Position
Melinda Rombouts 22 26 5 BSc. Honours Biology, Plant
Biology, and BA, University of
Waterloo
Previously Grower,
Grow team,
consultation, QAP, SPIC
Dave Burch 15 41 10 University of Guelph
Agricultural courses, Pesticide
Handling Certification
Grower, management
Mike Kwan 20 40 2 Chemical Technician,
University of Toronto
Head Grower,
vegetative stage
Tom Jobson 8 7 8 Agricultural Diploma,
University of Guelph, Certified
Crop Advisor
Grower, Supervisor,
Flowering Rooms
Melissa Baker 1 14 3 Horticultural Diploma,
University of Guelph
Irrigation Specialist,
Flowering Rooms
Sarah Miner 1 10 1 Honours Bachelor Degree in
Agriculture, University of
Guelph
QA, Operations, grow
team support
Dakota Stephens 3 Horticultural Diploma,
Fanshawe college
Pest Specialist
Brianne Quenneville 15 Pest Specialist
Michelle Hoogstra 10 Watering Tech
Total Team Experience 67 153 32
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MELINDA
ROMBOUTSChief Executive Officer
and Director
Prior to founding Natural MedCo, Ms. Rombouts was the president,
manager and owner of numerous large scale businesses in the
agricultural, food, real estate and pharmaceutical industries and
through these gained experience and knowledge in marketing,
advertising, finance, project management and business
development.
Ms. Rombouts has grown hundreds of varieties of plants and
through this experience, she has gained extensive plant knowledge
crucial to the growth of a healthy plant and high quality
product. She also has experience with Quality Assurance, GPP
program and Standard Operating Procedures development,
implementation and improvement with strict adherence to the
regulations governing the pharmaceutical industry.
Ms. Rombouts holds a BA and BSc from the University of Waterloo
with specialization in Plant Biology and Legal Studies.
LANDON
ROEDDINGChief Financial Officer
Mr. Roedding brings over 15 years of experience in accounting,
financing, and business development within the public markets
and has a demonstrated ability to manage financial and
operational challenges while managing a dynamic and growing
business. Previously, Mr. Roedding was Controller at Blue Goose
Capital Corp., where he led the financial planning, reporting,
restructuring and human resource functions. Previously, Mr.
Roedding held positions as Director, Financial Reporting at
Kinross Gold and Senior Manager of Financial Reporting at
Sherritt International Inc. and, prior to those positions he spent 8
years at PricewaterhouseCoopers LLP in their assurance
practice.
Mr. Roedding is a Canadian Chartered Professional Accountant
and holds an a Honours Economics and Accounting degree from
Wilfrid Laurier University. Mr. Roedding also serves on the Board
of Directors of Project C.A.N.O.E., a not for profit charity focused
on serving youth facing systemic or mental health barriers.
EXPERIENCED MANAGEMENT
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BOARD OF DIRECTORS
T.A. CLARK
MOELLER IVDirector
RAVI SOODDirector
Mr. Moeller lives in Wichita, Kansas and is the head of EQ
Development, a company focused on private equity investments. With
a background in lodging, commercial and residential real estate
development, Mr. Moeller also has extensive experience in business
operations across a wide variety of segments.
Mr. Moeller has broad experience in the cannabis industry with
investments in Canada and the Colorado market.
Mr. Moeller graduated with honors and received his B.A. in United
States History from the University of Kansas.
Mr. Sood is the managing director of Signal 8 Limited. Mr. Sood has
been a founder of and the principal investor in several businesses in
emerging markets and currently serves as Executive Chairman and
Director of Galane Gold Ltd. (TSXV:GG) and Blockchain Power
Trust (TSXV:BPWR) and as a director of Feronia Inc. (TSXV:FRN),
and ICC Labs Inc. (TSXV:ICC).
He was the founder and Chief Executive Officer of Navina Asset
Management Inc., a global asset management firm headquartered in
Toronto, Canada. Mr. Sood led the investment activities of Navina
and its predecessor company, Lawrence Asset Management Inc.,
from its founding in 2001 until he sold the firm in 2010.
MEHRANEH
EBRAHIMIDirector
Dr. Ebrahimi is the head of academic research of her family’s
investment business, which holds various interests in agricultural,
real estate and private equities. Prior to that, she taught at Western
University in London, Ontario, where she received her PhD in World
Literature.
Speaking four languages and conducting research on the role of the
disenfranchised, women, and minorities in world affairs have helped
Dr. Ebrahimi understand the unique international cultural
kaleidoscope of Canada.
She is the recipient of several teaching awards and scholarships and
the author of a forthcoming book entitled Women, Art and Literature
in Diaspora. Her diverse experiences both academic and managerial
shape her understanding of business and social life, especially
women and immigrants.
Ms. Mogk-Edwards’ previous career spans over 35 years with one of
the largest single buyers of beverage alcohol in the world – the Liquor
Control Board of Ontario (the “LCBO”). As the Vice President,
Products, Sales and Merchandising, she led a high performance team
of 100 category and inventory specialists, and directed sales of over
$5B. She also developed and led VINTAGES, the fine wine
department at the LCBO, to annual sales from $23M to over $500M.
As a face of the LCBO, Shari managed her “Shari’s Picks” program,
promoted responsible consumption, regularly represented the LCBO at
trade, television and radio events, and was a key note speaker at
countless events.
At her new consulting company, Ms. Mogk-Edwards is now focused on
breaking down barriers and developing businesses. She shares her
knowledge and experiences through her personal approach.
SHARI MOGK-
EDWARDSDirector
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CAPITAL STRUCTURE
SHAREHOLDER OWNERSHIP # OF SHARES % OF SHARES
Melinda Rombouts and Affiliates 84,800,000 32.1%
Clark Moeller holdings 17,309,728 6.6%
Kaleron Holdings Ltd. 16,400,000 6.2%
Ravi Sood 1,715,914 0.6%
Widely Held 112,923,691 54.5%
Total 264,247,667
Warrants 16,665,000
Options 13,929,680
Total F/D 294,842,347
Cash $7.2M
(1) Data as at April 18, 2019
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• March 19, 2019 Announced $18.7 million
in debt financing from a Canadian
Chartered Bank
• March 29, 2019 Announced conversion of
remaining debentures, removing cash
outflow obligation of $4.0 million
• April 11, 2019 Announced $10.0 million
special warrant bought deal financing
• April 18, 2019 Announced exercise of
warrants resulting in approx. $5.8 million
of cash inflow
FINANCIAL NEWS
The recent finance activity strengthens the Company’s balance sheet and provides sufficient funding
to complete the 780,000 sq. ft. expansion as well as develop the Company’s female focused
consumer packaged goods program.
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Eve is centered around
wellness,empowerment
& education.
– three key elements that drive our business every day.
As a female-founded and female-led licensed
producer, Eve isn’t just a brand we own –
it’s who we are.
EveCannabis.ca
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Products
OILS
COSMETICS/SKINCAREEDIBLES
Future Product Development
Female Sanitation Products • Beauty CreamsTopicals • Sensual Products • Natural DeodorantsSkin and Lip Care • Massage and Bath Products
Chocolate • Wine • Flavoured Health DrinksDiscrete Beverage Additives • Pet Treats and Treatments
EveCannabis.ca
CONTACT
MELINDA
ROMBOUTSCEO
+1 (855) NAT-MEDS
+1 (855) 628-6337
LANDON
ROEDDINGCFO
+1 (855) NAT-MEDS
+1 (855) 628-6337
+1 (647) 473-4947