aff in or resources vertical farming

7/23/2019 Aff in or Resources Vertical Farming

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TECHNOLOGY FOR

GROWING BETTER FOOD



Affinor Growers (AFI) is an agriculture and biotechnology

company that is committed to solving the world’s food security

problems with proprietary growing and cultivating systems

capable of producing fresh, non-GMO delicious food without

pesticides or dangerous chemicals with near zero water waste.

Globalization of Growing with Vertical Farms

Efficient production utilizing minimum space and a quick growth systemyielding maximum production per square foot

MISSION STATEMENT

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Affinor Growers provides proprietary technology solutions that utilize minimal land,water and energy resources to produce fresh, non-GMO, organic products yearround, regardless of climate or location.

Our goal is to industrialize and automate a profitable system to mass-produce nutrient-

rich foods, free of pesticides and chemicals.

EXECUTIVE SUMMARY in 99 words

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Year-round production anywhere in the world on any type of land.Increased yield per square foot estimated to be 10 to 15 times.

Profitability through commercial facility construction, technology license agreements,

equipment fabrication and installation, royalties and consulting on problematic crops

Growth platform includes market penetration, market expansion,product expansion, diversification and acquisition

Aff inor is int roduc ing new inno vat ive vert ica l technology for grow ing a var iety of in- demand crops

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A perfect storm has formed to make food security one of the preeminent challenges facinghumankind. The inability to stop the spread of genetically modified seeds and the dramatic rise inglobal food prices poses a threat to global food and nutrition security.

THE OPPORTUNITY: FOOD SECURITY & SHORTAGE

The world is less than 40 years away from a food shortage that will have serious implications forpeople and governments, according to a top scientist at the U.S. Agency for InternationalDevelopment. Present methods of agriculture and food production are facing multiple pressures.



Global agriculture and food production are facing multiple pressures. Experts believe the biggest challenge isfeeding the growing population, which is expected to increase from seven billion people today to approximatelynine billion in 2050. As a result, The United Nations Food and Agriculture Organization estimates that foodproduction must increase by 70 percent over the next forty years to satisfy increasing demand. The primary factordriving the population growth is urbanization, where the number of cities over 1,000,000 people experienced thefastest growth in the developing world. Billions of people have already moved from rural areas into rapidlygrowing urban cities, and billions more are expected to make this transition over the next 40 years.

THE OPPORTUNITY: FOOD SECURITY & SHORTAGE



THE SOLUTION: VERTICAL FARMING

Affinor Growers (AFI) is an agriculture and biotechnology company that is committed tosolving the world’s food security problems with proprietary growing and cultivating systemscapable of producing fresh, non-GMO delicious food and nutraceutical / medicinal cropswithout pesticides or dangerous chemicals with near zero water waste.


Vertical farms are efficient, utilizing minimum space, and a quick growth system yielding

maximum production per square foot. Affinor's strategic growth platform includes market penetration, market expansion, product expansion, diversification and acquisition.



THE SOLUTION: VERTICAL FARMING

Affinor’s vertical farming solution has many competitive advantages compared with traditionalgrowing methods, such as:

• Year-round production anywhere in the world and on land otherwise not suitable for foodproduction,

• Mechanical pollination as bee shortages continue to grow as an issue,• Increased yield per square foot of land estimated to be 10 to 15 times depending on the

crop. A vertical farm of one square block, 30 stories high could produce the same amount offood as 24,000 acres of farmland.

• Significantly reduced growth-cycle due to optimal lighting, nutrition and air flow,• Dramatically reduced spoilage and extended shelf life estimated at up to 100% depending

on the crop – a large competitive advantage for distributors, retailers and a significant benefitto customers,

• Greatly reduced shipping (e.g. most spinach sold in Ontario is imported and shipped over2,000 miles from California),

• Minimized environmental impact in terms of water use, land, and power,• Eliminating the use of pesticides and other chemical inputs, other than organic-based

fertilizer,• Improved market-based pricing with consistently available local product, and• Reduced capital requirements in terms of expensive to maintain large scale farming

equipment.



THE SOLUTION: OPTIMAL RETURN ON INVESTMENT

Affinor has optimal “return on investment” by focusing on a business model that minimizes capital

costs, which translates into superior value for everyone in the value chain, for example:

The cost of land: it generally does not make sense to build vertical farms in premium retail ordowntown space. There are vast amounts of less expensive land in areas close to city centers,including environmentally contaminated sites that are well suited to vertical farming.

Labor: intelligent automation reduces labor by up to an estimated 70% over competing vertical farmingsystems,

Waste: The amount of produce typically thrown away by a retail store can be as high as 30%. Theconsumer can also throw away a large portion because it likely only lasts a few days. The Affinorsystem was designed to produce the highest quality products with the longest shelf life and the bestflavor possible. More importantly, it reduces hard costs and increases value, making it a preferredproduct of retailers and consumers, even at top end prices.

Electricity: intelligent automation optimizes the impact of light on the growth cycle and improving thequality of the product. The use of alternative energies such as wind and solar, combined with recentadvancements in energy storage can further increase efficiencies.



Fresh, organic, non-GMO food is

grown vertically in trays or towers

Software controls precisecombinations of light, temperature,water and nutrients

Patent-pending technologymechanically pollinates plants

Proprietary cultivation processesresults in year round, perpetualharvesting

Fully intergraded Standard Operating

Procedures include bio-security andsanitation protocols for packaging andgrowing pharmaceutical grade plants

HOW IT WORKS



TECHNOLOGY: Patent Portfolio - 1

Affinor’s patent includes “Method and Apparatus for Automated Horticulture and Agriculture” -international publication number: WO 2013/113096 A1

The technology and equipment in each grow section comprise a series of multi-level growing units,each independently controlled for light cycle, feeding and irrigation controlled by a central computer.The system can be programmed for different plants which may have different growth cycles, withoutany changes to the configuration of the installation. The technology includes proprietary growing trays

especially designed for horizontal movement on rollers within the multi-level growing units.



License Agreement Example: Indoor Cultivation System

Affinor's patented technology, “Method and Apparatus for Automated Horticulture and Agriculture”, patent portfolio-1, is developed and designed to produce an array or crops withinan enclosed structure. Examples include warehouse, commercial, industrial space or withinpolar panels under a greenhouse for agricultural areas. It is the most efficient cultivationsystem utilizing minimum space and a quick growth system yielding maximum production persquare foot.

The continuous harvest feature uses a “three phase” proprietary crop model by controlling

precise combinations of light, temperature, water, and nutrients to create specific growingconditions that result in optimum crop production with maximum product quality and a muchlonger shelf-life.



License Agreement Example : Indoor Cultivation System

Figure 1 – Example of an “indoor” warehouse facility using patent portfolio -1.



License Agreement Example : Indoor Cultivation System

Figure 2 – Example of an “indoor” system by using polar panels under a greenhouse utilizing

patent portfolio -1 “slide tray system”.



TECHNOLOGY: Patent Portfolio - 2

Affinor’s licensed, patent pending technology, includes “Method and Apparatus for Automated VerticalHorticulture and Agriculture” (patent pending, no international publication number)

The technology and equipment is a designed system for continuous automated growth of plants

including mechanical pollinating for flowering fruits. The specially designed equipment includes avertical array of plant supporting arms extending radially from a central axis. Each arm has a plurality ofpot receptacles which hold the plant seedling, nutrient and water. The potting arms are rotated beneathgrow lamps and pollinating arms. The frequency of feeding is increased as the plants grow. The microenvironment can be manipulated to favor plant growing requirements including CO2 enriched air, O2enriched air, temperature and humidity. Once the plants are ready to harvest, they are manuallyexchanged for new seedlings and mature plants are removed. Different lighting, temperatures, humidityand nutrition can be programmed for the different growth stages of a crop and for different crops

remotely by a central computer.



License Agreement Example : Greenhouse Cultivation System

Affinor's patent pending technology, “Method and Apparatus for Automated Horticulture and Agriculture”, patent portfolio-2, is developed and designed to produce an array or crops withinenclosed facilities or within a greenhouse utilizing the sun. Using specialized patentedmechanical pollination methods, flowering fruits such as strawberries can be realized.

Designed to continuously harvest product using a “three phase” proprietary crop model by

controlling precise combinations of light, temperature, water, and nutrients to create specificgrowing conditions that result in optimum crop production with maximum product quality andshelf-life.



License Agreement Example : Greenhouse Cultivation System

Figure 1, Example of a greenhouse facility using patent portfolio – 2 “growing towers” within a

greenhouse allowing natural sunlight as the main light source.



PROJECT: St-Chrysostome, Quebec Facility

Utilizing both technologies, Affinor has created a proprietary process to commercialize andproduce a variety of crops within the 36,000 square foot cultivation facility located in St-Chrysostome, Quebec.

The facility will consist of two environmentally controlled propagating rooms (chill rooms), avegetative growth greenhouse, cold inventory storage, processing area and cleaning(sanitation) room. The propagating rooms equipment will consist of the patent portfoliotechnology – 1 (slide tray system) and the greenhouse vegetating equipment will consist ofpatent pending technology – 2 (growing towers).



Leafy Greens

SpinachLettuceHerbs

Pollinated

Plants

Strawberries

Medical/ Pharmaceutical

Nutraceuticals

Technology developed for indoor

and outdoor (Greenhouse) products:

PRODUCTS



STRATEGIC PARTNERSHIPS

MASTRONARDI PRODUCE

• Largest greenhouse company in North America

• 1,400-plus acres of greenhouse production capability

• One of the 50 Best Managed Companies in Canada

• Industry leader in the gourmet vegetables and berries industry for over four generations

• Pioneered the use of commercial greenhouse technology to supply North America

• Dedicated to using the latest technology to remain a leader in the industry, remainingcommitted to hands-on service and high quality-control standards from seedling to shelf

• Officially joined the Non-GMO Project and received its certification in 2010

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PARTICIPATION IN WASHINGTON PROJECTS

Affinor Growers has a 49% interest in Herbal

Analytics, a full service analytical and consulting

laboratory for botanical quality testing and natural

product drug development.

Affinor is committed to become the ultimate grower andsupplier of high quality cannabis products inWashington State and the expanding legalized statesand countries.

The management of the lab has over a decade of

analytical and natural products testing, dietarysupplement regulations. Herbal Analytics will help Affinor Growers to produce safe and effective productsand consistent research material.

Herbal Analytics, Washington State

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PARTICIPATION IN WASHINGTON PROJECTS

2 Affinor Growers has a 49% interest in a

medical Marijuana dispensary and grower

located on the Olympic Peninsula in

Washington State.

Good to Grow is a Marijuana growingoperation, which has brought serious attentionto the Port of Willapa Harbor, an area that is setto mature with the new Marijuana industry.

Good to Grow, Washington USA

Washington State Marijuana users spent $3.8 million ($127,000 per day) in the

first month of legal sales. Like Colorado, Washington is applying sales taxes andexcise taxes to Marijuana. The financial incentives for governments to regulateand tax sales ensure that this new frontier will expand, and investment fortuneswill be made. Good to Grow has been fully operational and Affinor's managementteam has provided guidance and professional consultation all along the way.

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GROWTH STRATEGY

PENETRATION

DIVERSIFICATION

E X P AN S I ON

A C Q U I S I T I O N

MARKET PENETRATION

MARKET & PRODUCTEXPANSION

DIVERSIFICATION

ACQUISITION




GROWTH STRATEGY: Market Penetration

MarketPenetration

MarketExpansion

Product

Expansion

Diversification

Acquisitions

• Affinor's crops solve food security problems

• As the world’s population grows so does the need

for fresh, locally grown food.

• Market demand for sustainable food is high with no

current solution. Affinor's products will penetrate theretail market quickly.

• All of Affinor's products will be pesticide free, nonGMO, grown organically and locally.

• Public and retailers sampling of products haveresulted in 100% positive.

• Affinor has partnerships and a strategic alliancewith national retail distributors



GROWTH STRATEGY: Market Expansion

MarketPenetration

MarketExpansion

Product

Expansion

Diversification

Acquisitions

• Rural communities that import all ormost food products.

• Affinor has been approached to helpmeet the demand for local foodproduction in extreme climates withadverse growing conditions

• Affinor will actively develop themarket for frozen products and high

volume processing opportunities withits products

Affinor's plan is to rapidly penetrate the North American,urban retail market through our strategic distributionpartnership with Produce distributors.



GROWTH STRATEGY: Product Expansion

MarketPenetration

MarketExpansion

ProductExpansion

Diversification

Acquisitions

• Supplying the nutraceutical markets.Various plants and vegetables havenutraceutical compounds that can begrown in high volumes and extracted foruse

• Supplying the pharmaceutical markets.Various plants and vegetables havepharmaceutical compounds.

Affinor's technology and growing methods canexpand and develop multiple products. Startingwith the commercialization and production ofhigh-grade June Bearing Strawberries andleafy greens including lettuce, spinach andherbs. Product expansion and development

opportunities include:



GROWTH STRATEGY: Diversification

MarketPenetration

MarketExpansion

ProductExpansion

Diversification

Acquisitions


• Commercial / industrial facility construction

• Technology license agreements

• Equipment fabrication

• Installation & Royalties

• Consulting on problematic crops

• Growing and cultivation centers for

major cities around the world

• Equipment, growing systems and consulting



GROWTH STRATEGY: Acquisitions

MarketPenetration

MarketExpansion

Product

Expansion

Diversification

Acquisitions

Affinor's mergers and acquisitions

strategy will include the following:

•Strategic companies that can provideincreased sales, profitability and alignwith the core values and direction of

Affinor Growers that help increasemarket penetration, diversification orexpansion.

•Technology and IP that can enhanceour growing processes and systemsallowing product diversification andmarket expansion.



Nick Brusatore, Director and Executive Chairman

Nick Brusatore is known globally for being a top designer and leader in vertical farming technology. He was the Chairman of the Applied Research Committee for BCIT for several years and was nominated for the AGRI Award of Excellence for Canada in2012. Nick was a keynote speaker at the International Conference on Marihuana in New York City and the moderator in SanFransisco and regularly sits on discussion panels as an expert in this industry. Nick is the original designer of TerrasphereSystems started in 2001 and currently the major shareholder and designer of Vertical Designs Ltd started in 2010. Nick bringsover 14 years experience in AGRI Designs, plant physiology and the manipulation of metabolic pathways to achieve organicchemistry.

Sebastien Plouffe, CEO, President and Director

Mr. Plouffe graduated in 1994 with a bachelor ’s degree in Business Administration with honor (B.A.A.) from the Ecole des HautesEtudes Commerciales (H.E.C.-Montreal). Former successful VP Senior Investment Advisor from 1995 to 2003 with such as the

Canadian brokerage firm Nesbitt Burns and Canaccord Capital, for which he achieved the Chairman’s Club level. Since then heco-founded and financed various private and public companies in different sectors and get specialized internationally anddeveloped strong management skills. He’s fluent in French, English and Spanish.

TEAM: BOARD OF DIRECTORS

Dr. Alan Boyco, Director

Alan R Boyco B.Sc., O.D. is a practicing Optometrist in Coquitlam, British Columbia with his expertise focused on anteriorsegment / glaucoma. Dr. Boyco is a member of the NHLTPS “National Hockey League Team Physicians Society” and the OfficialOptometrist to the Vancouver Canucks and Rogers Arena. He is also the Official Optometrist to the B.C. Lions and B.C. PlaceStadium and the Official Optometrist to the Vancouver Giants and Pacific Coliseum.

Dr. Boyco has a Bachelor of Science (Biology & Psychology ) From the University of Alberta and is a graduate of the PacificUniversity School of Optometry. He appears on morning television as authority Eye specialist in a segment called "Eyes of

Vancouver"

Pierre C. Miron, CFO, Director

Mr. Miron worked over 25 years in the International audit and financing department of the banking industry, including International Auditor and Administrative Director with Scotia Bank, Banking Manager at TD Bank, Portfolio Manager and Account Director atNational Bank and Director Major Account at the Caisse Centrale Desjardins. He also worked as CFO with private and publiccompanies in different sectors such as technology, real estate management and franchise industry. Throughout his career Mr.Miron has often acted as a consultant, advising companies in their growth and M&A, which helped him to develop strong

management and financial skills. Mr. Miron has held a bachelor degree in Business Administration from École des Hautes ÉtudesCommerciales



Jeff Sopatyk, Director

Mr. Sopatyk is a prominent Saskatchewan farmer and select seed grower. For the past 35 years, he has been farming in theSaskatoon, Sask., area. He has a diploma in agriculture from the University of Saskatchewan. Twenty years ago he established acommercial seed-growing business as a pedigree and select-status seed grower. He has been growing a wide array of seedcrops including wheat, canola, barley, lentils, peas, hemp and Faba beans on his 7,000-acre farm. He also has co-operated withseveral researchers from the University of Saskatchewan over the years, with on-farm research, focusing on environmentalissues, germ plasm trials, inoculants, fertilizers and plant breeding programs.

TEAM: BOARD OF DIRECTORS

Hugh Bowman, Director

Mr. Bowman holds an MBA from University of Guelph and brings with him over 20 years of experience with the produce industry,

both operationally and in sales and marketing. He has held several key senior management positions including president ofCanada operations for Misionero Vegetables Ltd., chief operating officer of Bayshore Vegetable Shippers Ltd., and president ofIppolito Fruit and Produce Ltd.Mr. Bowman's background includes vertical integration of agriculture food producers from farm to fork. He has worked closelywith major retail, wholesale and food service companies in the North American markets. He is former president of the OntarioProduce Marketing Association and has held director positions with the Agriculture Adaptation Council and the Canadian ProduceMarketing Association as well as supporting key government initiatives such as the horticulture value round table. He sits onseveral key United States-based committees with the Produce Marketing Association and United Fresh industry associations.He holds the position of vice-chair of Canada Gap, a global food safety initiative (GFSI) worldwide benchmarked food safetyprogram used throughout Canada and other countries with growers supplying fresh produce into the marketplace. Mr. Bowmanwas the youngest recipient to receive the industry's "produce person of the year" award.

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TEAM: MANAGEMENT

Jarrett Malnarick, COO Jarrett Malnarick ran his own successful consulting company for over 10 years assisting companies with acquisitions, productdevelopment, design costing and ROI analysis, organizational budgets, developmental funding through grants and tax creditprograms, new facility process planning, quality engineering and product regulatory compliance to Health Canada and

international standards through the design and implementing operational systems. He originally worked with Vertical Designs Ltd.as a consultant and later joined their team in 2011. Jarrett Malnarick has held a number of executive positions and has earned aBachelor of Science from the University of Victoria.

Sebastien Plouffe, CEO, President and Director

Mr. Plouffe graduated in 1994 with a bachelor ’s degree in Business Administration with honor (B.A.A.) from the Ecole des HautesEtudes Commerciales (H.E.C.-Montreal). Former successful VP Senior Investment Advisor from 1995 to 2003 with such as theCanadian brokerage firm Nesbitt Burns and Canaccord Capital, for which he achieved the Chairman’s Club level. Since then heco-founded and financed various private and public companies in different sectors and get specialized internationally anddeveloped strong management skills. He’s fluent in French, English and Spanish.

Pierre C. Miron, CFO, Director

Mr. Miron worked over 25 years in the International audit and financing department of the banking industry, including International Auditor and Administrative Director with Scotia Bank, Banking Manager at TD Bank, Portfolio Manager and Account Director at

National Bank and Director Major Account at the Caisse Centrale Desjardins. He also worked as CFO with private and publiccompanies in different sectors such as technology, real estate management and franchise industry. Throughout his career Mr.Miron has often acted as a consultant, advising companies in their growth and M&A, which helped him to develop strongmanagement and financial skills. Mr. Miron has held a bachelor degree in Business Administration from École des Hautes ÉtudesCommerciales



Greg Dennison, Director of Operations

Greg Dennison has over thirty years of experience in the residential and commercial construction industry, successfully operatingboth small businesses and large corporations. This experience has produced a variety of skills. He has proven leadership abilitiesand strength as a business administrator, with a great capacity to solve problems. Greg has the ability to set tasks and workeffectively with a variety of people; persevering to accomplish goals often beyond expectations. He is known to have integrity inall his business dealings and personal relationships. He regularly attends a local church and has been overseas on many shortterm mission trips to help third world communities. He currently resides in Langley BC with his wife Patti and two of their sixchildren.

Colin Wiebe, Marketing Director Colin Wiebe has over 25 years experience as a Creative Director and marketing professional. Colin began as a graphic artistand illustrator for the Vancouver Sun and The Province newspapers. He quickly became the Creative Director of advertising forboth papers working on projects such as the Vancouver Sun Run, The Province Golf Classic, The Molson Indy plus continuouspromotions for the BC Lions and the Vancouver Canucks and many more. He worked with the Pacific Press team whichpioneered the digital advertising methods adopted by many major daily newspapers around the world. Colin is an experiencedcopywriter, designer and direct marketing specialist and brings his unique knowledge of web development, lead generation andmarketing strategies to the Affinor team.

TEAM: MANAGEMENT



TEAM ADVISORSAndrew Riseman

Andrew Riseman, Ph.D. an influential UBC Senator and Associate Professor of Plant Breeding and Genetics to its advisory board.Dr. Riseman is in the Applied Biology Program within the Faculty of Land and Food Systems at UBC. His areas of expertiseinclude plant breeding, genetics, cultivar development, agroecology, organic production, sustainable production systems, andhorticultural and agricultural technologies.

Dr. Riseman is also the Academic Director, Centre for Sustainable Food Systems (CSFS) and the co-chair of the CSFS SteeringCommittee. He earned his Ph.D. from The Pennsylvania State University and has strong interests in Community Based ActionResearch (CBAR) and the Scholarship of Teaching and Learning (SoTL).

Thomas Baumann

Thomas Baumann is a member of the North American Strawberry Growers Association, the American Society Of HorticulturalSciences and current Director of the Pacific Berry Resource Centre at UFV to its advisory board.

Thomas Baumann taught at the UBC Department of Plant Science in Small Fruit Culture, Tree Fruit Culture, VegetableProduction, and Protected Culture (Greenhouse) and continued as Sessional Lecturer at UBC as well as Kwantlen UniversityCollege. He is a Professor at the University of the Fraser Valley, Agriculture Technology Department, for Vegetable, Fruit,Greenhouse, Pest Management, Nursery Production and Propagation, Introduction to Computers, Advanced Computer Trainingand Introduction to Horticulture Lab, responsible for a modern range of greenhouse research and teaching facilities.He is also amember of UFV Senate and Chair of the UFV Senate Awards and Honours Committee,and a member of the Senate AppealsCommittee.

Rick Easthom

Rick Easthom's previous experience as Director of Corporate Brands for the Overwaitea Food Group, and Manager of RetailDevelopment for Choices Markets, will give Affinor Growers an instant advantage in the merchandising and distribution itsproducts. Mr. Easthom has extensive grocery retail experience. He is an authority in developing products, packaging, launchingand merchandising them at retail while maximizing sales and profit. He has a comprehensive background in management andbrings superior skills as an analyst, negotiator and planner. Rick has the unique ability to lead and direct merchandising teams. AsDirector of Corporate Brands for Overwaitea, he used his people skills and his negotiating talents to develop a dynamic team thatcreated new products to meet changing market demographics and improve on old products by re-packaging. These changes andhis new team focus, helped to deliver exceptional increases in sales and profit.

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REVENUES FORECAST- 3 YEARS

June 2015 –

May 2016

June 2016 –

May 2017 June 2017 –

May 2018

REVENUES FORECAST $ 3,263,000 $ 14,875,000 $ 18,644,000

EBITDA $ 419,000 $ 7,248,000 $ 10,727,000

TECHNOLOGY LICENSES 4 4 5

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SHARE STRUCTURE

Number of

Affinor Shares

Percentage

of Fully

Diluted

Strike

Price

Shares issued and outstanding 67,875,878 81.7%

Warrants 9,482,636 11.3% $0.32 - $0.40

Broker Warrants 215,465 0.3% $0.40

Options 5,650,000 6.7% $0.10 - $1.03

Total Number of Shares (fully diluted) 83,223,979 100%

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CONTACT

Sebastien Plouffe, CEO - Phone: (514) [email protected]

Nick Brusatore Executive Chairman- Phone: (604) [email protected]

aff in or resources vertical farming

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