48north cannabis corp. · 2 days ago · investor presentation page 19. brand. avitas is uniquely...

INVESTOR PRESENTATION JULY 2020

48NORTH CANNABIS CORP.

TSXV: NRTH

INVESTOR PRESENTATION PAGE 02

FORWARD-LOOKING STATEMENTS

DISCLAIMER AND CAUTIONARY STATEMENTSThis presentation is current as of July 15, 2020, and contains “forward-looking information” within

the meaning of applicable Canadian securities laws and “forward-looking statements” within the

meaning of the United States Private Securities Litigation Reform Act of 1995 (collectively, “Forward-

Looking Statements”). These include, but are not limited to, statements with respect to the future

financial or operating performance of 48North Cannabis Corp. and its subsidiaries (“48North” or the

“Company”), the market conditions, business strategy, corporate plans, objectives and goals, the

estimates of the timing, cost, nature and results of corporate plans, or the strategy for the

development of the Company’s cannabis business. All statements, other than statements of

historical fact, that address activities, events or developments that the Company believes, expects

or anticipates will, may, could or might occur in the future are Forward-Looking Statements. The

words “expect,” “anticipate,” “estimate,” “may,” “could,” “might,” “will,” “would,” “should,”

“intend,” “believe,” “target,” “budget,” “plan,” “strategy,” “goals,” “objectives,” “projection” or the

negative of any of these words and similar expressions are intended to identify Forward-Looking

Statements, although these words may not be present in all Forward-Looking Statements.

FORWARD-LOOKING STATEMENTSAre subject to a number of risks and uncertainties that may cause the actual events or results to differ

materially from those discussed in the Forward-Looking Statements, and even if events or results

discussed in the Forward-Looking Statements are realized or substantially realized, there can be no

assurance that they will have the expected consequences to, or effects on, the Company. Should one

or more of these risks and uncertainties materialize, or should underlying assumptions prove

incorrect, actual results may vary materially from those described in the Forward-Looking Statements.

The Company’s Forward-Looking Statements are based on beliefs, expectations and opinions of

management on the date the statements are made. A number of important facts could cause actual

results to differ materially from those indicated by the Forward- Looking Statements, including, but

not limited to, the risks described herein. For the reasons set forth above, investors should not place

undue reliance on Forward-Looking Statements. The Company undertakes no obligation to update its

Forward-Looking Statements to reflect events or circumstances after the date of this presentation or

to reflect the occurrence of unanticipated events other than as required by law. Accordingly, readers

should not place undue reliance on Forward-Looking Statements.

The information contained in this presentation and its attachments is privileged, confidential and

protected from disclosure. Please ensure that you do not forward, disseminate, distribute or copy this

presentation and its attachments.

© 2020 48North Cannabis Corp. All rights reserved. 48North Cannabis Corp., the 48North logos, and all other products or service names are trademarks of 48North Cannabis Corp. or their respective owners.


CORPORATE OVERVIEW

48North is a vertically integrated Licensed Producer focused on manufacturing high-quality products, building progressive and thought-provoking brands, and low-cost cultivation.

48North’s assets include a disruptive, large-scale, low-cost, 100-acre

outdoor farm; two modern, indoor licensed facilities; and partnerships

with leaders in cannabis, manufacturing and consumer packaged goods.

As industry trends shift to the point where there is more supply than

demand, 48North’s ability to compete on both cost and quality is a key

differentiator.


48NORTH’S DIFFERENTIATORS

AUTHENTICITY 48North is a locally bred, Canadian-focused Licensed Producer with popular

products, a memorable brand, and a clear vision for more conscious cannabis

consumption. Unlike so many of its peers, 48North has resisted the temptation

to embark on “global conquest” in an effort to rapidly scale up and

accumulate wealth. The company has stayed nimble. It has stayed focused on

its products and its brand.

DOMESTIC FOCUSSeveral of our competitors have faced criticism of unrestrained perceived

growth, 48North’s relatively simplified focus on the Canadian market presents

a competitive advantage. As Canadian consumers demand quality and

consistency, we make this our primary focus. 48North has supply agreements

in seven Canadian provinces, representing 95% of the population.

PRODUCT AND BRAND FIRST STRATEGY48North develops consistent, high-quality, well-branded, and accessible

cannabis products that are in high demand by Canadian consumers. While this

demand and recognition is a differentiator from 48North’s immediate

competitors, it needs to be matched by reliable supply, broad distribution,

and commitment to consistency.

LOW COST, HIGH-QUALITYOne of 48North’s clear market advantages is the company’s ability to cultivate outdoor cannabis at a fraction of the cost without sacrificing quality. In addition, 48North cultivates high-quality, craft, small-batch

cannabis at its indoor facility, delshen. As industry trends shift to the point

where there is more supply than demand, 48North’s ability to beat

competitors on both cost and quality is a key differentiator.


CORPORATE OVERVIEW

40,000 sq. ft. cultivation and

processing facility in Kirkland Lake,

Ontario

Premium indoor-grown cannabis for retail distribution

100-acreoutdoor

cultivation inBrant County,

Ontario

46,000 sq. ft. manufacturing and processing facility

in Brantford, Ontario

Manufacturing, contract manufacturing, processing, packaging,

and distribution of cannabis from

Good:Farm

Premium sun-grown cannabis

for retail and next-generation

products


Licensed Production Facilities


OUTDOOR CULTIVATION

100-acre outdoor farm.

Summer/Fall 2020 will mark 48North’s second planting at Good:Farm.With a year of experience cultivating cannabis under its belt, 48North believes it continues to have a significant head start on its competitors.

Organic cultivation is certified by Clean Green. Clean Green cannabis

processor/handler certification is for the processor/handler who maintains a

clean and sustainable business environment. In addition, 48North is a leader in

the regenerative organic farming movement.

One of the largest cultivation facilities in the world with over 3.7 million square feet of cultivation space.

Next-generation cannabis products such as vapes and topical products are

most cost effectively manufactured with cannabis grown outdoors, without

compromising cannabinoid and terpene content.


OUTDOOR CULTIVATION

Next generation cannabis products require high-quality, low-cost and

consistent inputs, cannabis cultivated outdoors is the most efficient and

effective ingredient for the development of these products.

Production is expected to be one of the most environmentally friendly and energy-efficient method of cannabis cultivation in the country.

$0.50

$1.00

$1.50

$2.00

INDOOR GREENHOUSE OUTDOOR


INDOOR CULTIVATION

40,000 sq. ft. state-of-the-art indoor cultivation facility located on 800 acres of land.

Annualized production capacity expected of approximately 2,000 kg of dried cannabis.

Licensed to cultivate and sell cannabis as well as produce, extract and sell cannabis oil (topical products, edibles, vapes, etc.).

At delshen, 48North cultivates high-quality, small-batch craft cannabis for the

premium dried flower market.


PROCESSING, MANUFACTURING AND PACKAGING

GOOD: HOUSE FUME LABS46,000 sq. ft. state-of-the-art indoor processing facility located on five acres. Facility is expandable to 350,000 sq. ft.

10-minutes away from the Good:Farm, Good:House serves as the processing, manufacturing, packaging, and distribution hub for 48North’s outdoor cultivation site.

Semi-manual and automated packaging lines for dried flower, an excise tax

stamping line, secure storage space, pre-roll manufacturing capacity and

topical production capacity.

At Good:House, 48North manufactures its own products, and contracts

manufactures products for other Licensed Producers, cannabis brands, and

pharmaceutical companies.

Licensed to cultivate cannabis and process cannabis oil.

Fume Labs, a strategic partnership with humble+fume, located within the

Good:House, is pushing the boundaries of cannabis concentrates, defining a

higher standard for extraction and leading the industry in formulation expertise.

Our platform offers the end-to-end production and distribution of market-

ready products that deliver high-quality and authentic cannabis experiences.

Fume Labs can currently process approximately 30,000 kg of cannabis biomass annually

For comparisons sake, 30,000 kg of extraction capacity would enable the company to supply the market with approximately five million concentrate

vaporizers, among other products, annually.

Experience developing products with C02, ethanol and solvent less extraction processes.


Wholesale and Contract Manufacturing Business


WHOLESALE AND CONTRACT MANUFACTURING OPERATION, pt. 1

FORMULATIONS

THIRDPARTY

TESTING

DISTILLATE

WINTERIZED CO2

BUBBLE HASH

FULL MELT DRY SIFT HASH

LIVE ROSIN

DRY SIFT ROSIN

LIVE ROSIN PODS

SOLVENTLESS PODS

WHITE HASH

QUALITY ASSURANCE

LICENSEDPRODUCERS

CANNABISBRANDS

PHARMAOTHER

LICENSEDPRODUCERS

48North, through its strategic partnership with humble+fume, has the capacity to contract manufacture cannabis products for Licensed Producers, cannabis brands and pharmaceutical companies, this includes Pax Labs.


WHOLESALE AND CONTRACT MANUFACTURING OPERATION, pt. 2

FORMULATIONS

THIRDPARTY

TESTING

TOPICALS

PREROLLS

DRIED FLOWER

QUALITY ASSURANCE

LICENSEDPRODUCERS

48NORTHPRODUCTS

CANNABISBRANDS

PHARMA

OTHER LICENSED

PRODUCERS

48North has the capacity to contract manufacture cannabis products for Licensed Producers, cannabis brands and pharmaceutical companies.


48North Consumer-facing

Business


48NORTH’S CANADIAN DISTRIBUTION CHANNELS

NorthernTerritories

Yukon

BritishColumbia

Alberta

Nunavut

Manitoba

Saskatchewan Ontario

Quebec

Newfoundland and Labrador

NewBrunswick

NovaScotia

Prince Edward Island

Canadian Population by Province

* This graphic represents provinces in which 48North has signed supply agreements, currently 48North products are available in Ontario, Alberta, Quebec, Saskatchewan, and British Columbia


BRAND

High quality products

All 48North brands embody these fundamental pillars, consistently reinforcing a powerful, values-based positioning. Specifically, these are reinforced by:

Progressive, thought-provokingbrands

Natural alternatives when it comes to therapies and medical solutions and

Striving for Better


BRAND

At 48North, we believe that high-quality cannabis is the result of sustainable production and farming techniques. Our quality products are clean and free from pesticides, ensuring you can inhale (and exhale) with the greatest of ease.

For a life well lived, head well north.

INSTAGRAM@48nrth

WEBSITE48nrth.com

http://48nrth.com


BRAND

Apothecanna, a true innovator in the US cannabis space that is focused on

high performance topicals, has been a leader in the United States cannabis

market since its founding in 2009. Apothecanna's formulas blend all-natural,

premium plant-based extracts that are created without the use of artificial

ingredients, fillers, parabens, or GMO ingredients.

48North has signed an exclusive licensing agreement with U.S-based APCNA

Holdings LLC., to bring its best selling, premium cannabis topical brand to

Canadian consumers.

INSTAGRAM@apothecanna

WEBSITEapothecanna.com

48North signed an exclusive Canadian Licensing Agreement with Apothecanna, the company does not own the Apothecanna brand


BRAND

Avitas is uniquely poised to take advantage of the cannabis-curious audience focussed on health and wellness. Avitas is concerned about what consumers are putting in their bodies and offers premium, high-quality cannabis products. 48North is licensing Avitas’ proprietary 100-per-cent natural, additive-free, single-strain, ultra-refined and purified products, including vape-pens.

INSTAGRAM@avitas_grown

WEBSITEavitasgrown.com

48North signed an exclusive Canadian Licensing Agreement with Avitas, the company does not own the Avitas brand


ACCESSORIES LINE

F8 accessories exist to connect and deepen people’s relationship with the objects that inhabit their everyday world. F8 believes design should be purposeful, versatile and stimulating, crafted with lasting style that inspires individual exploration and expression.

[email protected]

WEBSITEf8te.ca

http://f8te.ca


CUSTOMER ACTIVATION RESOURCE

Latitude is an interactive, omni-channel that empowers cannabis users to connect, engage and share their personal storieswith cannabis. Latitude exists as a book, a website, a newsletter and storytelling events.

INSTAGRAM@explorelatitude

WEBSITEexplorelatitude.com

FLOWER

48North flower continues to expand our portfolio of products across formats and tiers

PRE-ROLLS TOPICALSHASH VAPES

BEST

BETTER

GOOD

Granddaddy Purple 3x0.35 g

Strain Hunters™ Franco’s Lemon Cheese™ 3x0.5 g

Green Crush 3.5 g Power Plant 3.5 g Kosher Kush 3.5 g

Paris OG 3.5 g Coming Soon Coming Soon

Strain Hunters™ Franco’s Lemon Cheese™ 3.5 g

Strain Hunters™ Holy Punch 3.5 g

Fleur Du Jour 3.5 g

Extra Strength Body Oil, 28 g Coming Soon

Extra Strength Body Oil, 60 g

Extra Strength Body Oil, 236 g Coming Soon

Daytrip EclipseAll-in-One Pen 0.4g

Moonlight ShadowAll-in-One Pen 0.4g

Daytrip Eclipse PAX Pod, 0.5g

Moonlight ShadowPAX Pod, 0.5g

Traditional PressedHashish 1.0 gComing Soon

Green CrushAll-in-One Pen, 0.4g COMING AUG ‘20

Silver Lemon 1:1All-in-One Pen, 0.4g COMING AUG ‘20

Super Citrus Haze0.5 g

Green CrushPAX Pod, 0.4g COMING AUG ‘20

Silver Lemon 1:1PAX Pod, 0.4g COMING AUG ‘20



Management Team


MANAGEMENT TEAM

CHARLES VENNATCHIEF EXECUTIVE OFFICERCharles, an accomplished entrepreneur with extensive experience working in highly-regulated sectors, most recently as President of Bastos of Canada Ltd., a manufacturer of tobacco products, focuses on driving the corporation's business plan and strategic vision.

RICHARD MELOFFSVP, SALES AND COMMERCIALIZATIONRichard brings more than 12 years of experience in product development and general management to his role as senior vice-president, sales and commercialization at 48North. He holds a JD/MBA from the University of Toronto and a BA from McGill University.

DAVID HACKETTCHIEF FINANCIAL OFFICERDavid is a CPA, CA and holds an MBA from the Richard Ivey School of Business at the University of Western Ontario and brings more than 20 years of financial and management leadership to 48North.

KIRSTEN GAUTHIERCHIEF MARKETING OFFICERKirsten is an entrepreneur and creative leader with more than 21 years of award-winning experience who brings innovative solutions and brand-building skills to 48North.

STEPHEN LACROCEVP OF CORPORATE DEVELOPMENTSteven brings over 8 years of experience from the automotive industry, with a background in manufacturing finance and asset management. A leader in the management of capital investment strategies and planning, Steven offers a wealth of knowledge in lean manufacturing, strategic corporate planning and financial analysis.


Board of Directors


BOARD OF DIRECTORS

THE HONOURABLE MARTIN CAUCHONMr. Cauchon was first elected to political office in October 1993 in the federal riding of Outremont. He has held many cabinet positions, including Minister of National Revenue, Minister of Justice and Attorney General of Canada. As Justice Minister, he introduced in 2003 legislation decriminalizing the possession of small amounts of cannabis.

ALAIN DUBUCMr. Dubuc is an economist, author and journalist. He is the national affairs columnist for the Montréal Daily La Presse and is the recipient of numerous awards, including the National Newspaper Award for editorial commentary and the Public Policy Forum Hyman Solomon Award for excellence in journalism. He sits on several boards, including the Institute for Research on Public Policy and the McGill Institute for the Study of Canada. He has written seven books on economics and political subjects and was named an Officer of the Order of Canada in 2011.

WILLIAM ASSINIMr. Assini is CPA/CA and was both a Senior Vice President and a Partner at PriceWaterhouseCoopers LLP for more than 20 years, where he had advisory responsibility for southwestern Ontario. Mr. Assini is currently a director and audit chair of IG Wealth Management, R.F.A. Bank of Canada and IG Trust Company. He was also a past director of GoviEx Uranium Inc., M.R.S. Trust Company, Canada Fluorspar Inc. and Mettrum Health Corporation.

ANN DARCHEMs. Darche is a marketing and consumer trends specialist with a 20-year career in Montreal advertising agencies. The agency she helped build and administer, Allard Johnson (now KBS), has become one of Canada’s leading advertising firms. A respected speaker, she has been heard regularly on Radio Canada sharing her views on trends, breakthroughs and market disruptions. Ms. Darche also serves as a director for Groupe Germain Hotels and KDC, a leading North American contract manufacturer of health and beauty care products.

LIEUTENANT GENERAL JAMES C. GERVAIS (RETIRED)

Mr. Gervais is a retired Army Commander of the Canadian Armed Forces who also served 12 years as a public servant as Assistant Deputy Minister to Canada’s Governor General. In retirement, he has been a director on the boards of several mining companies and has served as the Chairman of the Board of Commissionaires Ottawa, the largest not-for-profit security firm employing military and RCMP veterans.

SUSAN NICKLE

Susan is an accomplished and strategic executive, committed to operational and governance excellence. Currently, Susan is the Executive Vice President, Chief People Officer and General Counsel at London Health Sciences Centre.


MILESTONES

JUN 2018

Listed on the TSXV: NRTH

Received necessary licenses at delshen, Good & Green, and

Good:Farm

Raised $68.25 MM through a variety of vehicles, including

investment from Canopy Growth Corp.

Began retail distribution in Ontario,

Quebec and Alberta

Commenced contract manufacturing

business, Fume Labs

Continue launching next-generation

cannabis products

Building on the Pax agreement, announce

additional contract manufacturing partners

at Fume Labs

Complete build-out of Phase 2 at Good:House, complete state

of the art drying facilities at Good:Farm, receive license

amendments Good:Farm

Continue launching products and brands

Canada wide

SEPT 2018 TO

MAR 2019

JAN 2018 TO

MAY 2019APR 2019 FEB 2020

ONGOING ONGOINGJUN 2020

TO AUG 2020

AUG 2020


CAPITAL STRUCTURE

Shareholder Ownership

CAPITALIZATION TABLE (AS OF MAY 31, 2020)

Basic Common Shares Outstanding

Options and RSU’s

Broker Compensation Options

Warrants

Total Issued and Outstanding (Fully Diluted)

176,030,500

18,706,090

1,846,457

19,237,739

215,820,785

Cash (as of March 31, 2020) $17,821,274

NRTH (TSX-V)

*As of June 2, 2020Stock PriceAverage Volume

Market Cap

52 Week High

52 Week Low

$0.23

737,430

39,820,000

0.99

0.07


INVESTMENT HIGHLIGHTS

LOW-COST PRODUCTION

Outdoor cannabis grown at approximately $0.25/gram

from Good:Farm

NEXT GENERATION PRODUCTS

Focused on innovative next-generation products for health and wellness market

DIFFERENTIATED BRANDS

Strong, authentic and trusted brands

STRATEGIC PARTNERS

Best-in-class companies and organizations providing industry-

leading expertise, capabilities, brands and products

EXPERIENCED TEAM

Proven management and Board of Directors with strong

character, passion and exceptional industry

experience

PROFITABILITY

Committed to a profit-oriented approach driven by disciplined investments, industry-leading yields, operational excellence

and low-cost production

CORPORATE SOCIAL RESPONSIBILITY

Substantive commitment to all stakeholders and communities with

publicly stated objectives and reporting with strong corporate culture to

attract and retain best-in-class people

INVESTOR PRESENTATION JULY 2020

CONTACT US

Connor WhitworthSenior Director of Corporate [email protected]

48North Cannabis Corp. 257 Adelaide Street West, Suite 500Toronto ON M5H 1X9

48nrth.com

48north cannabis corp. · 2 days ago · investor presentation page 19. brand. avitas is uniquely...

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