investors deck | february 2019 · imc - gap agricultural standards indoor cultivation enables...

Cannassure Therapeutics Ltd

Investors Deck | February 2019

TASE:

© Cannassure Therapeutics Ltd

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© Cannassure Therapeutics LtdWe do it right

This presentation has been prepared by the Company and should not be considered as a recommendation or recommendation for the purchase or sale of securities and / or investment in Cannassure Therapeutics Ltd. This presentation is intended for the purpose of providing information only. The Company is not responsible and shall not be considered liable for any damage and / or loss that may be caused as a result of any information contained in this presentation and the use of this information.

In addition, this presentation may include forward-looking information, as defined in the Israeli Securities Law, 1968. Such information includes, forecasts, estimates, estimates based on other information relating to future events and / or matters, the realization of which is uncertain and is not under the Company's control ("forward-looking information."). Forward-looking information is not a proven fact and is based on subjective assumptions, estimates and forecasts made by the Company at that time only. The realization or non-realization of the forward- looking information may be

affected from risk factors that characterize the company's operations, as well as from developments in the competitive and business environment and from external factors that influence the Company's operations, which cannot be foreseen and which are not controlled by the Company. Forward-looking information is not accurate, and the Company is unable to assess it in advance, as most of this information is not under its control. Therefore, this information, in whole or in part, may change substantially at any time as a result of the influence of various factors, including but not limited to changes in market conditions and / or competition in the market and / or in the business environment. The results and achievements of the Company in the future may be materially different than those presented in the presentation. In addition, forward-looking forecasts and evaluations are based to update evaluations so they would reflect events and/or circumstances that could appear after preparing this presentation.

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Forward Looking Statements

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Our

Mission

Cannassure's vision is to become a leading, world-class, trusted developer and provider of top-quality medical grade cannabis products as well as pharmaceutical cannabinoid medicines, addressing a broad range of unmet medical needs.

Our

Vision

© Cannassure Therapeutics LtdWe do it right

Cannassure will develop and commercialize a wide range of effective, high standard and affordable medical cannabis products as well as pharmaceutical cannabinoid medicines, to enhance treatment and improve people's quality of life worldwide.

This will be accomplished by facilitating a holistic integrated production system including an advanced agritech breeding and cultivation indoor facility, a state-of-the-art extraction and processing facility, together with scientifically advanced R&D.

Cannassure is committed to quality, excellence, innovation and integrity.


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Our Company

Cannassure (TASE symbol: CSURE) is launching a holistic and integrated medical cannabis value chain operation. Activity includes breeding, cultivation, extraction, R&D and distribution of medical cannabis products

The company was founded by Solbar Food Technologies (~ 69.5%), a leading food manufacturer in Israel, with the intention of instilling its applied 60 years of industrial expertise and know-how

Shareholder’s equity includes ~ 51.2 Million outstanding shares and approx. 9.6 Million tradable stock options, divided into three series, with strike price of 2-3 ILS

We do it right


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We do it right

Major Activities So Far

In the process of extracting and processing, cannabis oil for the purpose of developing production procedures in the company's certified lab

In the process of constructing an advanced, agritech indoor growing facility for cultivating uniform and consistent flowers, based on superior breeding strains

Signed distribution agreement with Hadassah Medical for marketing collaboration

In the process of constructing a cutting edge extraction and processing facility

Established a highly experienced management team, skilled in international business, bio-tech and food manufacturing

Received initial permits from the Israeli Medical Cannabis Authority (IMCA) for breeding, cultivating, processing, research and development (R&D) and storage of cannabis

Initiated preliminary development plan for unique pharmaceutical cannabis products

Granted financial support by the Israel Innovation Authority for the development of innovative cannabis extraction methods

Signed binding MOU with Cannika Holdings, to establish an agritech incubator specializing in cannabis innovation, located within the company's campus


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The group invested 17.5M ILS in Cannassure

A 60-year-old leading company of high quality botanical extractions

Customers over the years included global leading food and pharmaceutical companies, such as Unilever, Nestlé, Novartis, Janssen, Merck & GSK

Operates in accordance with quality standards

Annual income of 500M ILS

Cannassure is based on the know-how and experience of Solbar, including the extraction and processing of botanical extracts in a controlled environment and manufacturing in large industrial scale

Solbar provided Cannassure with labs and facilities spanning over 5,500 sqm

We do it right

Solbar Food Technologies Group


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Former commander of the Israel Air Force and Head of the IDF Planning Directorate, Mr. Nechushtan brings extensive managerial experience, including formulating strategy, creating work plans and leading processes. These he performed in the Air Force, the IDF and the private sector, in the fields of technology and cyber. He holds a B.Sc. cum laude in Mathematics and Computer Science from the Hebrew University of Jerusalem, an MBA from Northwestern University and Tel Aviv University, and an Advanced Management Program (AMP) from Harvard University.

Having over 15 years of extensive international experience in operations management and management consulting, Mr. Amir has served 8 years in an executive position at The Bread Factory, a top of the range UK based food manufacturer, and 5 years as Solbar’s CEO. Mr. Amir holds a B.Sc in Industrial Engineering and Management and M.Sc in International Business from Birkbeck, University of London.

Bringing extensive experience in drug delivery systems and drug device combination; holding a Ph.D in Medical Science (neurobiology) from the Hadassah Medical School and a postdoctoral training in neurobiology from Haifa University, where she was appointed for a postdoctoral fellowship, Eshkol Laurate, 2012 – 2014 on novel approaches for Alzheimer Disease therapy. Her field of expertise is neurodegenerative disorders.

A seasoned entrepreneur with extensive knowledge in business development and company transformation. A former executive at Bluephoenix Solutions (NASDAQ: MDSY) and Alcobra Pharma (NASDAQ: ADHD), Mr. Peles holds a BA in Economics and Accountancy from the Hebrew University of Jerusalem and an MBA and MA (Law) degree from Tel Aviv and Bar Ilan Universities.

Major General Ido Nehushtan Chairman of the Board

Ran Amir CEO and BOD Member

Dr. Hadile Ounallah-Saad VP R&D

Nir Peles, CPA, MBA, MA(LAW) Founder, BOD Member & VP Business Development

We do it right

Executive Team


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Bringing 30 years of experience in leading and managing international biomed and hi-tech companies from start-up to market penetration and sales, including business and clinical strategy, raising finance, technological development, establishing marketing and sales systems. Over the years, Steven has managed publicly traded companies including Exalenz Bioscience (TASE: EXEN) and Micromedic Technologies (TASE: MCTC).

Dr. Less is a multi-disciplinary, R&D professional with unique expertise in Life Sciences, Genetics, and Bioinformatics. He has over a decade of experience leading R&D and operational business units for several international companies, including Syngenta (NASDAQ: SYENF) and Compugen (NASDAQ: CGEN). Dr. Less holds a Ph.D from the Weizmann Institute of Sciences, Department of Plant Science; an M.Sc in physiology and immunology from the Israel Institute of Technology’s Faculty of Medicine; and a B.Sc in Animal Science from the Hebrew University of Jerusalem, Faculty of Agriculture.

With 13 years of experience in various finance positions, Mr. Neufeld has served three years as the CFO of Solbar Food Technologies. Previously, Mr. Neufeld held positions at CHS Inc (NASDAQ: CHSCP). U.S. headquarters working for their Processing and Food Ingredients Division and at PWC Israel. Mr. Neufeld earned his Bachelor's Degree in Accounting and Economics from the Ben-Gurion University of the Negev.

With 15 years of extensive, international experience in Quality Management and R&D, Dana has previously served in senior management positions in companies such as GreenMarket, China and provided consulting services for the food manufacturing sector. Mrs. Marom holds a B.Sc in Biochemistry and Food Technology from the Hebrew University of Jerusalem and an EMBA from the College of Management Academic Studies.

Steven Eitan VP Strategy

Dr. Hadar Less Agri-Consultant

Adi Neufeld CFO

Dana Marom Chief Quality Manager

We do it right

Executive Team


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$28B 2024)MarketWatch, September 2018(

Global cannabis market forecast growth

by

Major trends in the medical cannabis global market:

Widespread recognition of the virtues and effectiveness of medical cannabis products

Significant increase in demand for medical cannabis treatments for dozens of medical indications

Increased investments for research and development of medical cannabis products

Increasing number of countries that authorized the use and trade of medical cannabis products

Regulatory requirements reform for the use of medical cannabis products

Price reductions of raw cannabis yields, highlights the major business opportunity in the development and top-quality extraction of innovative medical cannabis products

We do it right

Medical Cannabis-Opportunity and Global Market Trends


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Cronos Inc CRON

Canopy Growth WEED.TO

Aurora ACB.TO

GW GWPH

Tilray TLRY

Aphria APHA


Market Cap Feb 1st, 2019

Billions US dollars

Trailing 12 months Revenues

Millions US dollars

SymbolCompany

We do it right

Leading Cannabis Companies

$3.7B

$16.8B

$7.4B

$4.5B

$7.7B

$2.4B

$9M

$73M

$60M

$13M

$33M

$47M


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Development of unique medical products Patent protected, molecular based and cannabis specific for medical indications in large and growing global markets. Establishing a technological incubator for medical cannabis innovation, within the Cannassure campus, together with Cannika Holdings

R&D

Breeding

Development of unique cannabis strains Creating value for the medical cannabis and pharmaceutical industries, using advanced breeding technology

Cultivation

Building an indoor growing facility Cultivation in a controlled environment, enabling quality consistent yields in accordance with (IMC - GAP) standards in 4000 sqm facility

Processing

Extraction and processing of premium quality cannabis oil Large scale production of premium quailty cannabis oil, cannabinoid distillation and APIs, complying with Israeli Accreditation IMC - GMP, preparing for EU - GMP accreditation

Distribution

Distribution An agreement with Hadassah Medical for distribution to pharmaceutical companies, pharmacy outlets and licensed customers, in accordance with (IMC - GDP). Exploring additional opportunities with international affiliations

We do it right

Cannassure is Establishing a Comprehensive Value Chain, Including All Stages of Medical Cannabis Production


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Cannassure is building its indoor growing facility in accordance with IMC - GAP agricultural standards

Indoor cultivation enables quality and consistent products and has significant advantages including:


Increase of annual growth cycles (approximately 6 cycles compared to 2-3 cycles in outdoor)

No exposure to weather conditions

Higher efficiency by savings in water and grow area

Cutlivation without herbicides and pesticides

~ 20 tons potential annual capacity of cannabis flowers

The facility is being built in an existing industrial building within the Solbar compound and will benefit from reduced-cost electricity, natural gas supply, reverse osmosis water supply and sewage treatment in accordance with environmental regulation

The Cannassure Agronomy Team brings decades of experience of leading global agritech companies

We do it right

Indoor Growing Facility


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Current extraction and processing activities in the company's lab:

Cannassure is in advanced stages of building an IMC - GMP approved extraction facility for controlled production of high quality oils, cannabinoids and active pharmaceutical ingredients, aiming for EU - GMP

The facility is being built using the accumulated expertise, know-how and experience of Solbar Group

Developing and enhancing extraction techniques and stability testing in the company's lab, using state-of-the-art equipment

Developing analytical and bio-analytical techniques for the identification of single API's

Product development is led by the company's scientific team, supported by a leading formulator and accompanied by leading regulatory advisors

This activity has been acknowledged as innovative by the Israeli Innovation Authority and granted financial support

We do it right

Medical Cannabis Extraction and Processing

The construction of the facility is in accordance with the Ministry of Health's initial permit requirements


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Hadassah Medical- A Strategic Partnership for Distribution in Israel and Commercial Activity Expansion in International Markets

Cannassure has signed an agreement with Hadassah Medical for marketing and selling medical cannabis oil with the Hadassah Medical brand name in Israel and global markets

Cannassure is planning to operate throughout Hadassah Medical's distribution channels, as well as exploring more collaborative mutual activity

We do it right


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Cannassure intends to develop and commercialize pharma-grade products, for life threatening diseases, in the field of oncological gynecology, using selected, active plant sourced cannabinoids

Cannassure is in the planning phase of developing a new product based on a combination of cannabinoid active ingredients together with an FDA approved gynecological medical device

A proprietary patent application was filed by Cannassure's expert in pharmaceutical intellectual property, previously Intellectual Property Team Manager at Teva Pharmaceuticals

The new product development is led by the company's scientific team, assisted by a senior formulator with regulatory guidance of several leading regulatory firms

Cannassure is exploring options for leveraging the collaboration with Hadassah Hospital for the development of the product

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We do it right

Innovative Medical Cannabis Products Development


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We do it right

Medical Cannabis Innovative Center

Cannassure together with Cannika Holdings, a group of experienced scientific experts, are establishing an innovation center for early-stage medical cannabis unique innovative products

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The center will operate in Cannassure's campus, utilizing state-of-the-art facilities, equipment, and technologies

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Entrepreneurs joining the innovation center will benefit from a community of leading scientists, researchers and business professionals

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The innovation center activity is financed by private investors

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H2/20198.2018 6.2019 7.2019

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and onwards

Extracting medical cannabis in the analytical laboratory

Completion of extraction and processing facility, in accordance with IMC - GMP regulatory standards

Completion of indoor grow facility for breeding new plant genetics and developing new strains, in accordance with IMC - GAP standards

Ready for production and sale of IMC - GMP approved medical cannabis oil and cannabis API's

We do it right

Next Steps, Key Milestones 2019


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Infrastructure connected to reverse osmosis water supply, natural gas and cost-reduced electricity, allowing competitive, efficient and clean production environment

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Founded on the know-how, experience and expertise of Solbar Group, a leader in the food and agriculture industry and benefits from its infrastructure and financial support

Rapidly establishing an indoor growing facility in a controlled environment, for premium quality and consistent cannabis flowers

Rapidly establishing a highly professional complete value chain in the medical cannabis industry

Equipped to meet and swiftly adjust to changing requirements, based on Solbar Group know-how and experience

The global medical cannabis industry

is undergoing rapid growth and

development

Cannassure has clear competitive advantages to become a significant

entity in the medical cannabis industry

Summary

We do it right

Strategic agreement with Hadassah Medical for collaboration and marketing of medical cannabis products worldwide

Establishing a technological incubator for medical cannabis innovation within the company's campus

Cannassure's Competitive Advantages

Skilled highly experienced management team in international business, bio-tech, nutraceutical and food industries


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Thank You

February 2019 | Ran Amir [email protected] www.linkedin.com/company/cannassure

TASE:

2019-02-10T17:53:00+0000Not specified

investors deck | february 2019 · imc - gap agricultural standards indoor cultivation enables...

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