Naturally Splendid Enterprises Ltd. · SWB:50NA
Naturally Splendid Enterprises — Investor Presentation (July 2018)
45 slides from Naturally Splendid Enterprises's investor presentation, July 2018
Slide 1: TSX Venture Exchange 2016 TSX Venture 50
TSX Venture Exchange 2016 TSX
Slide 2: Forward-looking statements
This presentation contains forward-looking statements. These forward looking statements are not based on historical facts but rather on Company management expectations regarding future growth, results of operations, performance, future capital and other expenditures (including the amount, nature and
Slide 3: The Company
THE COMPANY © Vertically integrated, Canadian based biotechnology and consumer product company ® Our focus is on Cannabis Sativa...otherwise known as industrial hemp & marijuana VISION @ Enhancing health, lifestyle and the quality of life MISSION © To be a leading provider of high quality plant-base
Slide 4: Our Location
OUR LOCATION Naturally Splendid is located just outside of Vancouver, British Columbia, Canada. Our processing and distribution facilities are ideally located adjacent to major transportation routes including, highways, international airports, railway services, and just 30 minutes from the Port of V
Slide 5: What We Do
WHAT WE DO Our focus is on Cannabis Sativa... We are developing, producing, commercializing and licensing an entirely new generation of plant-derived, nutrient dense foods, bioactive ingredients and related products focused from Cannabis Sativa. We currently market and distribute our products in Can
Slide 6: Currently selling into multiple revenue streams
8 — = Currently selling into multiple revenue streams, retail, wholesale, bulk and private label Expanding distribution channels domestically and internationally Over 22,500 sqft of production and distribution Only strictly organic hemp processor in North orcanic America y Applied to become Licensed
Slide 7: Biotech, consumer products and facilities
BIOTECH PROPRIETARY TECHNOLOGY aD TecHNoLocy HempOmega Extraction & Formulation Hemp Protein Isolate FOOD NATERA NATERA™ INGREDIENTS Marketing division of high quality plant-based bulk extracts & ingredients bulk hemp seed, oil and protein products. CONSUMER PRODUCTS cHI™ E-commerce online platform
Slide 8: Splendid Biotech Technologies and IP
_ | SPLENDID BIOTECH na TECHNOLOGIES AND LP. e HEMPOMEGA™ e@ HEMP PROTEIN ISOLATE e@ CANNABINOID EXTRACTS S
Slide 9: HempOmega, Hemp Protein Isolate, Cannabinoid Extraction
HempOmega® An environmentally sustainable, vegetarian source of Omegas 3 and 6 that boasts a superior nutrient profile. A water soluble, homogeneous, powdered ingredient, or emulsion it can be easily integrated and/or manipulated, with no unpleasant taste or chemical contamination - opening up entir
Slide 10: HempOmega Current Clients and Formulations
HempOmega Current Clients and Formulations Isodiol’s IsoSport Pro369 is a 2 ——. Hemp Protein Blend infused : with HempOmega™ - | Encapsulated (non-GMQ) formulated and manufactured: i by Naturally Splendid ( : No solvents or chemicals : ™ ! SS Lead | H 7 NATERA™ HempOmes# Source of omegas 3-6-9 Stabl
Slide 11: Consumer Products
CONSUMER PRODUCTS e Line of hemp and superfood products z ae i= e Recently launched NATERA® Hemp Protein 369 a uae OS = aa e Established in 2014 : : CHII e Line of hemp food products marketed on-line e Sold online in Canada and USA e Retail and Wholesale e Established in 1998 ELEVATE me e ELEVATE ME
Slide 12: Consumer Products
CONSUMER PRODUCTS e PawsitiveFX™ is a topical pet care and pet health retail line NATERA e NATERA ® CBD is a division focused on Vv; a a cannabinoid based products e Offering medical grade formulations in the nutraceutical, and topical markets SOME i Sa eS e NATERA ® Skincare is a division focused o
Slide 13: Consumer Product Development
NS CONSUMER PRODUCT DEVELOPMENT SPLENDID e NATERAFX" is a practitioner formulated line of hemp and cannabis extract products. aS e NATERA SPORT is a high performance supplement line up focusing on all kind of athletes. ia CHI skincare NATURALLY PURE HEMP e CHII skincare is a division focused on exce
Slide 14: Countries We Distribute To
SPLENDID Hi COUNTRIES WE DISTRIBUTE TO = CANADA... = USA = AUSTRALIA =» GERMANY = SOUTH KOREA
Slide 15: Australia - New Markets
AUSTRALIA - NEW MARKETS © Naturally Splendid has begun shipping NATERA® branded products to an Australian distributor © Naturally Splendid has formed a strategic alliance with an Australian distributor with distribution reach through multiple channel including retail; food service; and the practitio
Slide 16: Naturally Splendid Facilities
NATURALLY SPLENDID FACILITIES Naturally Splendid encompasses, industrial hemp processing, formulation, research and development, product formulation, design and marketing, as well as packaging and distribution through our strategically, vertically integrated facilities. Upon the granting of a Dealer
Slide 17: Facilities
FACILITIES Current production space for Naturally Splendid exceeds 22,500 sq. ft. encompassing hemp oil, protein & seed extraction and processing. Over $4,000,000 CDN in automated processing & packaging equipment ACI FOODS e Naturally Splendid’s own hemp processing facility e The only organic specif
Slide 18: ACI Foods hemp seed processing
e Industrial hemp seed processing business located in Abbotsford, BC e Listed as the only strictly organic hemp seed processor in North America e Significant producer of hulled seed, hemp seed oil and high percentage protein powder, among a long list of in-development nutritional products and proces
Slide 19: Retail, Wholesale, Bulk, Private Label
RETAIL WHOLESALE | PRIVATE BULK § LABELLING = NATERA = SEED = THE BAR = THE BAR = CHI = OIL MAKERS MAKERS = PAWSITIVEFX = PROTEIN ® NATURALLY = NATURALLY = ELEVATEME "HEMPOMEGA SPLENDID aaNet = ACI FOODS
Slide 20: Revenue in CAD$
DOLLORS IN CADS$ REVENUE @ Bulk $132K $234K 2013 2014 $301K 2015 WS Retail $7.3M 2016 $ 2017 2018 Page 26
Slide 21: Market Opportunities
MARKET OPPORTUNITIES eS e Global Functional Food Market US$250 Billion (2016) e Omega-3 Food US$37 Billion (2016) e Global Nutraceuticals Products market $US190 Billion (2016) e Global Cosmeceuticals market US$40 Billion (2016) e Global Pet-Related Products Market US$100 Billion (2016) e Global Anim
Slide 22: Market Potential
MARKET POTENTIAL $1.8 billion U.S. Hemp Based Product Sales By Category in 2020e FOOD $2000 $1800 $1600 $1400 $1200 $1000 $800 $600 $400 $200 $0 1 INDUSTRIAL | APPLICATIONS Us HEMP MARKET OTHER CONSUMER PRODUCTS CONSUMER TEXTILES SUPPLEMENTS PERSONAL CARE HEMP CBD *Source: Hemp Biz Journal estimates
Slide 23: Phases completed and ongoing
PHASE 1 PHASE 2 COMPLETED ONGOING 2020 e Expand facilities V e Position NSE for industrial hemp & e Acquire product expansion capabilities marijuana regulations change Q4 2018 (Prosnack) V receive Dealers License e Upgrade extraction capabilities (sell of BPC) V e Build out extraction facility e Pre
Slide 24: Dealers License Application
DEALERS LICENSE APPLICATION Becoming a Licensed Dealer positions Naturally Splendid to be a supplier of cannabinoids derived from hemp or marijuana including cannabidiol and CBD fortified products as well as THC. We will have the ability to perform a number of additional services such as: e Manufact
Slide 25: Bill C-45 and industrial hemp
Mo> BILLC-45 NS ae NATURALLY sac SPLENDID ‘ P - - 4 ip mg S INDUSTRIAL HEMP. e Under this legislation, the federal oversight for hemp will be moved from the Controlled Drugs and Substances Act to the new Cannabis Act e In response to a growing and rapidly changing industry, the Government is committ
Slide 26: Cannabinoids
CANNABINOIDS Over the last 40 years over 12,000 cannabis research studies and peer reviewed papers have been published including 10,000 THC studies and 2,000 CBD studies. Although cannabis most certainly needs to expand clinical studies, it is our belief that there is more than enough scientific dat
Slide 27: Cannabinoid Extraction Facility (Phase 2)
CANNABINOID EXTRACTION FACILITY (PHASE 2) Naturally Splendid recently sold its ownership in the POS BPC facility for a $1.6M gain and will begin building a state of the art cannabis extraction facility which is necessary to receive a Dealers License. This facility will be capable of extracting canna
Slide 28: Nano Processing of Cannabis Extracts (Phase 2)
NANO PROCESSING OF CANNABIS EXTRACTS (PHASE 2) Naturally Splendid’s over-riding strategy is to provide both ‘entry level’ products as well as patented or proprietary technologies and/or products. Nano-processing will allow Naturally Splendid to further refine or process extracted cannabinoids whethe
Slide 29: Research and Development
RESEARCH AND DEVELOPMENT Naturally Splendid has invested significant resources in developing proprietary technologies specific to hemp protein and hemp oil extraction. Two examples of these efforts have resulted in a superior hemp oil format; HempOmega™; as well as a highly concentrated hemp protein
Slide 30: Product Development
eas > © ee _A =, a Mt NS | a \ - tiie v0.000.09 ( Success -_ see p . ) SPLENDID - 9) = — eae x é q ‘lant _~ | 1 oe : mill (i) 2 WN | { , eC pvr / iM ( Pe aA 4 [suee) al 5 — = uf ihe Oe a : ot Hees ult = = — in { sh PRODUCT DEVELOPMENT Research and Development efforts are focused towards creating com
Slide 31: Branded Products & Private Label
NS NATURALLY SPLENDID BRANDED PRODUCTS & PRIVATE LABEL Naturally Splendid provides a wide range of consumer products for a number of markets under our many House Brands thus creating revenue streams from several and varied sources. Naturally Splendid can ‘Private Label’ our house brands...or provide
Slide 32: The Opportunity
ik | THE OPPORTUNITY Naturally Splendid is uniquely positioned as a vertically integrated company to capitalize on the existing hemp and medical marijuana markets...as well as new opportunities arising globally. We are prepared for the upcoming revisions to existing regulations in both Canada and in
Slide 33: Reasons to Invest in NSE
5 REASONS TO INVEST IN NSE 1. Strong leadership team 2. Vertically integrated 3. Established retail product lines 4. Distribution in over 1,500 stores in North America, exporting to Australia, Asia and Europe 5. Positioned to capitalize on the anticipated revisions to the Canadian cannabis legislati
Slide 34: Management team
DE ISHIR in DOUG MASON CEO, Director of NSE Mr. Mason is currently Chairman of the Board, President and CEO of a number of TSX Venture Exchange companies. During his 20 years as President and CEO of well-known beverage companies including Jolt Cola and Clearly Canadian Beverage Corporation, Mr. Maso
Slide 35: Management team continued
| Chief Financial Officer Sead has over 25 years of public practice accounting and financial management experience with a variety of public and private companies. He is on the board of directors and Chief Financial Officer for a number of publicly trading companies and as a financial advisor for a n
Slide 36: Vertically Integrated
VERTICALLY INTEGRATED Industrial Hemp Processing - ACI Foods (Conventional & Organic) Research & Development Product Development Packaging and Distribution Cannabinoid Extraction and Formulation (Phase 2)
Slide 37: Vertically Integrated (Phase 1)
Vertically Intergrated (Phase 1) Hemp Baars Manufacturing Distribution Revenue Cannabis Extracts Retail Alberta Private Label Practitioner Retail Products North America Asia + South Korea + Japan Research & Development Private Label Sasketchewan Practitioner Naturally Splendid Prosnack Distribution
Slide 38: Vertically Integrated (Phase 2)
Vertically Intergrated (Phase 2) Hemp Manufacturing Distribution Revenue Farmers & aan Licensed Products i Private Label Prod ucers Practitioner Retail Research & Asia | + South K Private Label Development eat eae Practitioner Cannabis : . Lr. Extracts Distribution tara Retail Toll Europe a Label Pr
Slide 39: Established Line of Retail Products
ESTABLISHED LINE OF RETAIL PRODUCTS rae Gal | ELEVATE ME” (ig pie aagaaa a J " ee. ELEVATE Me-
Slide 40: Distribution
DISTRIBUTION e 1,500 retail outlets in North America e Established distribution channels in Australia, Asia and Europe e Private labelling for major retailers in North America WHOLE moUNTAIN eGo 8) @ Game Rexall
Slide 41: Milestones
N NA SP = MILESTONES RALLY NDI ‘March 2013 ’ July 2014 June 2015 December 2015 February 2016 Qualifying Transaction Moves into New POS 51% Acquisition BY Acquires Chi Hemp 5 $924,000 Purchase and $1.75 Million Facility, Launches elosadl indeetieeiine Order for Hemp Food Financing New Products : from
Slide 42: Comparables
Gardein meat-free foods company purchased for $175M USD ata multiple of 2.7x revenue on November 2014. Annie’s Organics Purchased in 2014 by General Mills for $820M USD COMPARABLES HEMPC® Hempco Food and Fibre Inc. (TSX-V: HEMP) Produces hemp-derived products. Trades at C$1.70 a share & has market c
Slide 43: Share Capitalization
Share Capitalization Shares Warrants Options Total Capital fmm [1,311,825 22-Aug-18 $0.35) Insiders % 11.28% 7.18% 66.16% {150,000__1-Dec-18 50.30 Insiders 11,036,874 1,212,054 4,721,232 200,000__24-Mar-19 $0.29] |210,000_30-Aug-18_$0.35| Close Associates 10,000,000 3,000,000 2,415,000 1,325,000 23-
Slide 44: Strategic Relationships
STRATEGIC RELATIONSHIPS e NutriSci / Ambarri Initial samples incorporating Naturally Splendid's HempOmega™ technology and Ambarii's proprietary fast-acting and highly absorbant delivery mechanism are being provided for evaluation and testing. Letter of Intent (LOI) has been executed with Ambarii Tra
Slide 45: Websites and contact
THE BAR Makers— www. naturallysplendid. com | www. Hempomeeneann | www. nateraingredients, com | wwwrnaterlife.com 1 www.-chiis ca | _ www.pawsitivefx.com | wWwwi naturallysplendidusa:com |.www. flaterachd, com | www.naterafx. Pig | www.elévateme.com|-www. thebarmakers. com
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