exp new pitch deck d9 - cannabis health canada licensed ... · 3/4/2020 · 2018 u.s. cannabis...

Corporate Presentation

experionwellness.comTSXV: EXP, FSE: MB31, OTCQB:EXPFF

Q1 2020

Our Conviction: Creating the Best Experience

We are dedicated to becoming a leadingcultivator of handcrafted, premium quality cannabis products. Our services and products will build market trust, creating high value and thereby, a positive experience for investors, employees and customers.

TSXV: EXP, FSE: MB31, OTCQB:EXPFF 2

DisclaimerNOTICE TO RECIPIENT This presentation (the "Presentation") of Experion (the "Company") 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 offer 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. .

FORWARD LOOKING STATEMENTS

This Presentation contains forward-looking statements and forward-looking information. Often, but not always, forward-looking statements can be identified by the use of words or phrases or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, 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 different 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 the Company; (C) anticipated timing for the availability of the Company’s products to market and expected sale prices; (D) expected growth in the number of users of medical and recreational marijuana anticipated; and (E) the expansion of the Company’s business into other revenue streams.

Actual results and developments are likely to differ, and may differ 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 differ 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 Company assumes no obligation to update such forward-looking statements to reflect new information, subsequent events or otherwise unless required by applicable securities legislation.

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 differ materially from management’s current expectations and, as a result, the Company’s revenue and expenses may differ 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.


Quality Leaders Today


• Best in class genetics proven to consistently generate unique, sought-after cannabis strains

• Purpose-built cannabis facility in the agriculture belt of British Columbia

• Capable of processing over 4,000 KG of flower per year

• 1 of only 100+ licensed producers in Canada with a full suite of regulatory licenses

• Strong retail distribution network across Canada

• Actively selling 100% of production into retail channels

• Leading / best selling Adult-use brand Citizen Stash built on premium flower

Building for the Future


• Increase current cannabis flower revenue by 4X

• Develop strain-specific value-added products

• Partner to expand white labelling and contract manufacturing opportunities

• Continue to expand our retail and distribution network nationally

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

The Cannabis Future

Statistics are derived from a Statistics Canada Report released on August 15th.


• Smoking or inhaling cannabis products

continues to lead consumption methods,

making up 85% of the market

• Smoking remains the most common

method of cannabis consumption, with

68% of males and 62% of females

choosing it in the first half of 2019

• Canadians consume 3X more flower

than any other product

• Experion is poised to take immediate

advantage of these trends by continuing

and expanding its premium flower offer

and introducing top market products

Flower

Vape Pens

Edibles

Pre-roll

Tincture & sublingual

Topical

Beverage

Capsules

2018 U.S. Cannabis Consumption Patterns Across All Legal States / Mature Markets

2019 Canadian Cannabis Consumption Patterns

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1 2

Concentrates

Statistics are derived from a Deloitte Cannabis Study released in 2019.

85%

How to Shape the FutureIn a Mainstream Market, High-Quality Product Will Stand Out


Our Beliefs:

• Small and mid size cannabis cultivators and processors of tomorrow will only survive with differentiated high margin products, with:

o consistent distribution and delivery to a wide base of consumers

o limit capital expenditure through strategic partnerships

o offering products that are aligned with market demand

• Experion will maximize its assets and meet market demand by leveraging its licensure, capability, distribution channels, and proven expertise

Proven Value ChainOur Robust Infrastructure from Genetics to Consumer Sales


PackagingSales license to

package and sell products across

Canada

Distribution & Retail Sales

Established across Canada

Genetic Bankoffering first to market unique,

in-demand strains

R&DDeveloping

and improving products,

processes and strains

Cultivation

Processing Standard processing

license with the ability to package

4,000 KG per year

and conduct extractions

BrandingCreate the

best customer experience.One of the

fastest selling products in all

provinces

Facility Purpose-built with standard

cultivation license

Grow Partners Premium partners

supplying premium flower

Creating Competitive Advantage with Value Added ProductsCapability to Produce a Broad Range of Products by Leveraging Our Full Suite of Licenses


OILSVAPES

PILLSQ2 2020

PRE-ROLLSQ1 2020

CREAMS / TOPICALS

FLOWER In Market

CONCENTRATES (DABS/HASH)

Q2 2020 BEVERAGES

ORAL SPRAYS

EDIBLESQ1 2021

Experion will start cannabis 2.0 by developing premium craft extractions and strain-specific concentrates, extending the flower experience into value added products.

Experion’s Formula for Today and TomorrowOur path forward


+ Respected flower and respected brands Active

+ Retail distribution across Canada with direct relationships with retailers Active

+ Consumer-driven products Active

+ Higher margin product focus Active

+ Strategic partnerships and white labelling contracts Active

+ Developing cannabis 2.0 next generation craft products Active

+ Premium partners to increase capacity without capital expenditure Active

+ Merge or acquire cultivation capacity Active

= Increased revenue and profitability Active

Staging Our Business StrategyPositioning Experion to Deliver Sustainable Growth


12-24 months0-12 months

• Further expand cultivation capacity

• Expand processing space and capabilities

• Become recognized in Canada as

top three Adult-use brand

• Launch multiple brands under Experion’s

umbrella

• Lower production costs

• Deepen international partnerships

24-36 months

• Develop a national presence in

manufacturing and retail with multiple

facilities

• Introduce international sales and

opportunities

• Increase licensed cultivation capacity

• Consistently rotate premium strains into

the Adult-use market

• Expand and leverage distribution channels

• Diversify product portfolio in flower

• Maximize margins to drive profitability

• Develop value-added products in extracts

and concentrates

Our Path Forward for 2020Optimize and Accelerate Genetics, Cultivation, and Processing Capabilities


• Increase facility’s licensed cultivation space

by 20%

= higher revenue

• Partner with licensed producers needing

genetics and distribution to outsource

cultivation

= increased capacity without

capital expenditure

= higher revenue

= economies of scale

• Invest or acquire opportunistic licensed

facilities to increase cultivation and

processing space, adding an additional

2,000-5,000 KG

= higher revenue

= achieve economies of scale

• Leverage genetic bank to produce rotating

premium strains, and introducing new limited

edition strains on rotation

= continual new first to market exposure

• Utilize premium grow partners, increasing

from 500 KG to 2,000 KG throughout 2020

without new capital deployment, by taking

advantage of Experion's licensure, active

distribution and recent facility improvements

= Total increase of 5,000 to 8,000 KG

under production over the next two years

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The Experion OpportunityOur Differentiators


High Margin Product:

In revenue, with optimal margins

by offering a true premium

product, facilitated through indoor,

high-quality small batch

production sustained by a diverse

portfolio of unique strains

Leverage Full Spectrum Capabilities and Licenses:

Increase revenue through capacity

expansion in both cultivation and

processing, leveraging and

monetizing our existing licenses

and assets

Positioned To Offer New Value Added Products:

By strategically launching value

added craft products, new revenue

streams will be realised

Well Balanced and Robust Distribution Network:

Maximizing distribution across

Canada will increase Experion's

national market share and

exposure to a broad customer base

Proven ExpertiseJarrett MalnarickCEO & Director


• Taken a range of Cannabis LPs within Canada through

application processes, obtaining LP status, funding, going

public, and commission cultivation and processing

• Managed cannabis projects through production and extraction

processes throughout the US

• Expertise in funding and commissioning start ups, mergers

and acquisitions, product development, new facility process

planning, and quality engineering

• Extensive experience in navigating complex regulatory rules

and securing product regulatory compliance with Health

Canada for various food and beverage, natural health,

pharmaceutical and agricultural companies

Kamini HitkariCFO

• Influential Senior Financial Leader with a progressive career working for

public and private companies

• Formerly the Vice President of Strategic Finance at Aurora Cannabis

• Key contributor in over ten strategic transactions, ranging from

$1 million to $2.6 billion, including due diligence, risk assessment,

valuation, and integration activities

• Skilled at navigating listings on major exchanges, ensuring legal

and regulatory compliance regarding key financial functions

• Trusted executive and financial leader experienced at developing and

leading financial strategy in dynamic, fast paced, hyper-growth industries

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Contact us [email protected] Investment Community

TSXV: EXPFSE: MB31OTCQB:EXPFF

exp new pitch deck d9 - cannabis health canada licensed ... · 3/4/2020 · 2018 u.s. cannabis...

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