bridging the gap from soil to oil...the secret to producing standardized and impurity free cannabis...
TRANSCRIPT
Bridging the Gap From Soil to Oil
This presentation has been prepared by Nextleaf Solutions Ltd (“Nextleaf” or the “Company”). It does not purport to contain all the information that a prospective investor may require in connection with any potential investment in the Company. You should not treat the contents of this presentation, or any information provided in connection with it, as financial advice, financial product advice or advice relating to legal, taxation or investment matters. No representation or warranty (whether express or implied) is made by Nextleaf or any of its officers, advisers, agents or employees as to the accuracy, completeness or reasonableness of the information, statements, opinions or matters (express or implied) arising out of, contained in or derived from this presentation or provided in connection with it, or any omission from this presentation, nor as to the attainability of any estimates, forecasts or projections set out in this presentation. This presentation is provided expressly on the basis that you will carry out your own independent inquiries into the matters contained in the presentation and make your own independent decisions about the affairs, financial position or prospects of the Company. Nextleaf reserves the right to update, amend or supplement the information at any time in its absolute discretion (without incurring any obligation to do so). Neither Nextleaf, nor their respective related bodies corporate, officers, their advisers, agents and employees accept any responsibility or liability to you or to any other person or entity arising out of this presentation including pursuant to the general law (whether for negligence, under statute or otherwise), or under the Australian Securities and Investments Commission Act 2001, Corporations Act 2001, Competition and Consumer Act 2010 or any corresponding provision of any Australian state or territory legislation (or the law of any similar legislation in any other jurisdiction), or under similar provision under any applicable law including securities laws in Canada. Any such responsibility or liability is, to the maximum extent permitted by law, expressly disclaimed and excluded. Nothing in this material should be construed as either an offer to sell or a solicitation of an offer to buy or sell securities. It does not include all available information and should not be used in isolation as a basis to invest in Nextleaf. This presentation is not a prospectus, offering memorandum, or a public offering of securities. Nextleaf may offer common shares only to investors whom Nextleaf believes to be qualified to participate under registration and prospectus exemptions under applicable securities legislation. There is currently no public market for the resale of the common shares and such securities will be subject to restrictions under legislation that will vary depending upon the relevant jurisdiction. An investment in the company involves a high degree of risk and only investors who can reasonably afford a loss of their entire investment should consider purchasing shares. This presentation contains reference to certain intentions, expectations, future plans, strategy and prospects of Nextleaf. Those intentions, expectations, future plans, strategy and prospects may or may not be achieved. They are based on certain assumptions, which may not be met or on which views may differ and may b affected by known and unknown risks. The performance and operations of Nextleaf may be influenced by a number of factors, many of which are outside the control of the Company. No representation or warranty, express or implied, is made by the Company, or any of their respective directors, officers, employees, advisers or agents that any intentions, expectations or plans will be achieved either totally or partially or that any particular rate of return will be achieved. Given the risks and uncertainties that may cause Nextleaf actual future results, performance or achievements to be materially different from those expected, planned or intended, recipients should not place undue reliance on these intentions, expectations, future plans, strategy and prospects.
Disclaimer
Highly concentrated THC or CBD distillate is odourless, tasteless, and standardized for potency
Nextleaf’s patented process will disrupt the production of infused edibles, vape pens, and beverages - legal in Canada by October 2019
Nextleaf commercializes its technology through toll processing and white label oils production.
Disruptive Technology
Nextleaf (CSE: OILS) owns a portfolio of issued and pending patents for the process of producing cannabinoid distillate, the precursor of every cannabis infused product
The flavours and aromas of cannabis are undesirable in edible
and infused products made with crude extract due to chlorophyll,
fats, lipids and other impurities
Nextleaf has been issued a U.S. patent pertaining to the Company’s
industrial-scale process of extraction and purification of
cannabinoids
The U.S. patent covers the process of transforming dried cannabis
into high-purity THC or CBD distillate oil, simplifying the
manufacturing of differentiated formulations and delivery methods
Health Canada’s draft regulations to legalize infused products by
October 2019 makes cannabinoid purification technology vital for
the manufacturing of standardized edibles and vape pens
Patented Extraction & Purification Process
Through our patented technology, we produce a premium, purified cannabinoid distillate
The secret to producing standardized and impurity free cannabis extracts is in the purification and refinement steps
This goes above and beyond typical “crude extraction”, delivering a truly premium distillate
THINK: PREMIUM VODKA VERSUS MOONSHINE
Intellectual Property Portfolio
Issued U.S. Patent:NLU001: End-to-End Process
U.S. Patent scheduled to issue Q1 2019:NLU002: Cold Filtration
Patents Pending:NLU003: Process and system NLU004: Extraction using chilling system
Total of 18 patents pending in:United States, Canada, Mexico, Colombia, Jamaica, Europe, Australia
There is an ample supply of low-quality cannabis and hemp biomass and a lack of extraction and processing capacity in the industry
Nextleaf provides processing to licensed cultivators, and supplies cannabis oil and extracts to qualified Canadian and international B2B partners under their own brand
Turning ”Garbage” into Gold
Extracts: The Industry’s Fastest Growing Segment
Nextleaf’s patented technology allows for low
quality dried cannabis biomass, including failed
crops, to be processed into high-purity distillate oil
Infused Products: In the Media
Companies that secure unique IP first will have a competitive advantage. IP categories that are most lucrative, are those that don’t relate to the actual plant, but to processing and pharmaceutical applications” – Financial Post
Infused edibles and beverages contain consistent doses of cannabis oil and have a reproducible effect, while the effects from smoking cannabis can vary widely. Edibles may come with even higher demand.” – CBC News
Six out of 10 Canadian customers would choose pot edibles over smokables” - Deloitte
The Mobile Lab travels to licensed production sites, operating under the client’s processing license
Fully equipped to process 20 kg/hour of biomass into cannabis oil
Through a toll processing model, the Lab allows small producers to avoid the capital investment of oil production
Exclusive manufacturing agreement with K-Line Trailers
Mobile Extraction Lab
Nextleaf has developed a first
of its kind, Mobile
Extraction Lab
Toll processing and white-label oils production
6,540 sq. ft. processing facility in Greater Vancouver
Capacity to process 100 tons of cannabis per year
Research lab for testing and formulations
40 mins from Vancouver International Airport
9M sq. ft. of cannabis cultivation within 60 mins
Standard Processor License expected Q2-Q3 2019
Centralized Processing Facility
Nextleaf develops proprietary formulations for infused products with THC and CBD distillate, significantly increasing speed-to-market for our B2B partners
TOPICALS, SKINCARE & TRANSDERMAL DELIVERY
SPECIALTY CONCENTRATES
VAPE
TECHNOLOGY
EDIBLE
OILS
BEVERAGES & WATER-SOLUBLE EXTRACTS
Letter of Intent (LOI) signed with BevCannafor supply of oils
Patent obtained for tasteless, odourlessingestible oil
Patented process allows for easy dosing, scalable production
Patent filed for process to concentrate resinous glands in the plant.
Letter of Intent (LOI) signed with Omni Bioceuticals
Product Formulation
About BevCanna:
40,000 sq. ft. $30M bottling facility in Osoyoos, B.C.
HACCP Certified and Health Canada approved facility
315 acres of Agriculture Reserved Land with Canadian alkaline spring water
aquifer on-site
Capacity for 40 million bottles annually
Infused Beverage Partnership with BevCanna
Nextleaf has LOI with BevCanna for supply of oils pending Health Canada license
Nano-emulsified water-soluble THC and CBD used in all BevCannainfused beverages to be produced at Nextleaf’s processing facility
Long term kinetic stability: no settling/separation
Superior mouthfeel: no texture or residue
Fast onset, high bioavailability
Nextleaf earns licensing fees from all products derived from its IP
National Research Council of Canada Industrial Research Assistance Program (IRAP)Research Focus: Development of processing techniques for removing chlorophyll and other impurities from crude oil extract
Sustainable Development Technology Canada
Nextleaf is part of SDTC consortium with TerrameraResearch Focus: Replacing toxic chemical pesticides with pesticides derived from natural products
Natural Science & Engineering Research Council (NSERC)
Research partnership with UBC and BCITResearch Focus: Methods for repurposing incinerated cannabis waste biomass for industrial construction.
Research & Development: Government Grants
Paul Pedersen, MBACO-FOUNDER, CEO, DIRECTOR
Charles Ackerman, CPA, CACFO, DIRECTOR
Ryan KoCO-FOUNDER, CTO
15+ year career in the cannabis industry, Ryan has developed
deep expertise and intellectual property within extraction technology, leading to one of Canada's first patents for cannabis extraction and distillation. One of the early adopters of the legal medical cannabis program in Canada.
Paul has been focused on the cannabis industry since 2013, consulting for a variety of cannabis companies and investors, including Canada’s first cannabis oil producer and leading seed-to-sale software provider. Paul holds an MBA (finance) from Michigan State. Founder of NASDAQ: TWER.
Charles has successfully lead mergers and acquisitions, divestitures and private and public capital raises. He has served in a number of finance and corporate leadership roles developing and executing growth strategies, with private and public companies and family offices across Canada.
Dr Paul MacLeman has over 25 years of board and executive experience across life sciences and , agricultural sectors; encompassing technical, commercial and financial areas.He Chairs the committee reviewing the National Vocational Education Training Package in Pharmaceuticals.
Paul MacLemanNON-EXECUTIVE DIRECTOR
Executive Officers & Board of Directors
Strategic Operations
Krupal Pal, PhD, P.EngMANAGER OF ENGINEERING
Dr. Pal has been working in process engineering since 2005, applying fundamental chemical engineering and applied science principles to problems in many diverse fields including oils andextraction technologies, biodiesel processing and petrochemical industry.
Tom Ulanowski, MSc, C.Chem
PRESIDENT, NEXTLEAF LABS
Former Quality Assurance Person (QAP), Manager and Qualified Person in Charge (QPIC) at Canna Farms, BC’s first Licensed Producer. Chartered Chemist, HBSc in Analytical Chemistry from the University of Toronto, MSc. in Biogeochemistry from the University of Western Ontario.
Emma Andrews, BA, NPDP
DIRECTOR OF MARKETING
Taran Grey
DIRECTOR OF INTELLECTUAL PROPERTY
Over the past 10 years Emma’s led product innovation, consumer and retail education programs for global lifestyle brands. Most recently, Emma was a Partner, and Co-Founder of a multi-national strategic consulting company.
Successfully tripled the size of the patent and trademark portfolios for firms he’s worked with, while reducing the aggregate total IP expenses incurred. Taran has managed IP protection at major international tech companies.
Science & Innovation
Milestone Moments
Acquired intellectual property
Mobile Lab completed
U.S. Patent issued
SDTC $2.5m consortium grant
Completion of Centralized Processing Facility
First U.S. Patent filed
National Research Council grant
Announced reverse takeover
LOI with BevCannafor beverage R&D and supply
Next 12 Months
Obtain licensing at processing facility1
Supply agreements with licensed
cultivators2 File 20 additional patents
around methodology and formulation
4 Edibles & infused products legal in Canada
by Oct 20196
Commence revenue from B2B white label production and toll processing
3 Infused beverage formulations and stability trials with BevCanna
5
Now 1 Year
Nextleaf Solutions trades on the CSE under the ticker symbol OILS
Capitalization Table
Total shares outstanding (basic) 96,626,130 shares
Stock options, exercisable at 35 cents 14,100,000 shares
Warrants from RTO financing, exercisable 70 cents 14,285,714 shares
Broker warrants, exercisable at 35 cents 569,446 shares
Total shares outstanding (fully diluted) 125,581,290 shares
SCIENCE AND INNOVATION FOCUSED First to market with patented technology for the purification of cannabinoids
Nextleaf’s PATENTED PROCESSES will impact how edibles, beverages and other value-added products are manufactured, once legalized in Canada and other international markets
TECHNOLOGY TO PROCESS abundant supply of low-quality cannabis biomass into high-purity oil, and isolate cannabinoids for proprietary formulations and delivery methods
Opportunity for EARLY MARKET LEADERSHIP in high-margin infused product manufacturing
SCALABLE WHITE LABEL PRODUCTION and toll processing solutions increase speed to market for Nextleaf B2B partners
HIGHLY-EXPERIENCED TEAM, with longstanding credibility in the cannabis industry, including notable leaders and pioneers
Opportunity Summary
Nextleaf Solutions Ltd. - Corporate OfficeSuite 304-68 Water Street, Vancouver, BC V6B1A4
604-283-2301 ext. [email protected]