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TRANSCRIPT
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MAKING SENSE OF YOUR GROW
INVESTORPRESENTATION
January 2019
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This presentation (the "Presentation") contains" forward-looking information" and "forward- looking statements" (collectively, "forward-looking statements") within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this Presentation. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements.
In this Presentation, forward-looking statements relate to, among other things, expansion into additional cannabis growers and other clients, technology licensing agreements, joint ventures, Braingrid Limited's (“Braingrid”) plans for organic growth, evolution of its technology, development of new sectors and growth through acquisitions. All forward-looking information entails various risks and uncertainties that are based on current expectations and actual results may differ materially from those contained in such information.
These uncertainties and risks include, but are not limited to, risks relating to the timing and size of new contracts; acquisitions and other corporate developments; the ability to attract and retain qualified personnel; market competition in the rapidly evolving precision agriculture technology industry; and general economic and business conditions. Risks and uncertainties about Braingrid’s business are more fully discussed in the disclosure materials filed with the securities regulatory authorities in Canada, which are available on SEDAR under the issuer profile of Braingrid at www.sedar.com. Readers are urged to read these materials and should not place undue reliance on any forward-looking statement and information contained in this Presentation. Except as required by law, Braingrid assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.
Forward Looking Statements
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Cannabis growers are losing millions of dollars every year due to crop failure and high energy costs.
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What normally happens….
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The Solution
Braingrid’sSentroller
PRECISION AGRICULTURE PLATFORM
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6REAL TIME GROW DATA
TheHolyGrail
▪ Yield analytics
▪ Prediction
▪ Prevention
▪ Automation
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THE TECHNOLOGY ▪ Patented data acquisition and sensor integration platform
▪ US Patent #20150108966A1 for “Electrical current measuring apparatus” –
perpetual, royalty-bearing, worldwide license by Michael Kadonoff (CEO) to
Braingrid
▪ Easy to deploy, versatile and affordable
▪ Increases yield, reduces labour and energy costs
▪ developing AI to give our customers insight, control and automation, optimizing
their yield and decreasing their costs
▪ Currently deployed at 18 cannabis grow facilities, including 11 pilots
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Licensed producer WeedMD first to deploy “Sentroller S” system at its state-of-the-art greenhouse.Toronto, Ontario – January 10th, 2019 — Braingrid Limited (“Braingrid”) (CSE:BGRD), a global provider of affordable, scalable and easy-to-deploy sensor platforms for precision agriculture is pleased to announce the first commercial deployment of its innovative, self-powered Sentroller S precision agriculture technology at Canadian licensed producer WeedMD Inc.’s modern greenhouse facility located in Strathroy, Ontario.
“As an innovative producer of medical-grade cannabis, we’re a long-time partner of Braingrid starting with our best-in-class indoor cultivation facility in Aylmer, Ontario,” said Keith Merker, CEO of WeedMD. “We are finalizing a production capacity expansion at our 610,000 square foot, state-of-the-art greenhouse in Strathroy, Ontario – incorporating the latest advancements for precision cultivation including Braingrid’s innovative technologies. We’re very pleased with the results so far with over 110,000 square feet of production space progressively online.”
Sentroller S brings all the great features of Braingrid’s original Sentroller platform to cultivators including a quick installation, online dashboards and reports, as well as email alarm notifications. This allows growers the peace of mind that their cannabis crops are safe and thriving. The self-powered Sentroller S uses a solar panel that enables an even quicker install and limitless possibilities for sensor placement. This true wireless freedom helps cultivators monitor growing conditions where it matters – in and around the plant canopy where power connections are not often available.
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OUR ALLIANCES
Founded in 2014, Rent-2-Grow offers a first-of-its-kind facility, platform and community for individuals to safely and cost-effectively grow their own medicinal or recreational marijuana, away from their homes and residences
Braingrid has signed a three year Strategic Alliance Agreement to be the exclusive global provider of sensing and control for Rent-2-Grow’s growing pod system
Rent-2-Grow plans to offer its products to the skyrocketing home grow market as well, relying on Braingrid’s sensors and controls.
Ample Organics is Canada’s leading cannabis business solution, adopted by 75% of the nation’s Licensed Producers.
Ample signed a strategic agreement with Braingrid to be their exclusive provider of a grow data sensing platform.
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“Integrating the capabilities of Braingrid's sensor platform […] is our first step toward deploying
machine learning to drive harvest analytics and forecasting."
John X. Prentice - Ample Organics
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COMPETITORS
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Motorleaf
Growlink
Grownetics
Argus/Priva
Low Cost Any Sensor Easy Install Alarms API Access Dashboards
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RECENT MILESTONES
July 2017
1st customer
with Ample
Sep 2016 July 2017
First customer
with Ample Organics
1st Cannabis Customer
Jan 2017
Gov't contract
(Biomass)
Nov 2017
Strategic partnership
*70% of Canadian
LPs
May 2018
Strategic Alliance
R2G
Jan 2019
Launch of Self-powered “Sentroller S” Technology
Nov 2017
Project Expansion MOU
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Sentroller solution deployed with the
following companies:
Jan 2019
First deployment of “Sentroller S”
with WeedMD
Jan 2019
First deployment
of “Sentroller
S” with WeedMD
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NEAR TERMCATALYSTS
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● Environment Analytics
● Wexus Pilot Complete
Q1 2019
Q2 2019
● Control & Automation
● Customer sites active
● Licensing agreements
Q2 2019
Ongoing
Ongoing
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SENIOR LEADERSHIP
Michael KadonoffCEO & FounderB.EngPremier GE alum,Inventor and ultra-geekBoard Member
THE VISIONARY
Ken KadonoffBusiness PartnershipsB.Comm, B.C.L, LL.B.Business Development
Doug Harris CFOCPA, CBV25+ years experience
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Rose Oushalkas B.A.A. LL.B.General Counsel
Marc SidhomMBAAdvisor
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BOARD OF DIRECTORS
Eric KleinB. Com. CA CPA CBV (Chairman, Audit Comm)
David Posner ChairmanNutritional High EAT (CNX)
David E. ArgudoFormer CEO High Hampton HC (CNX)
Sanford LiuCTO and Co-FounderSoCast SRM
Michael Kadonoff CEOBraingrid
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CAPITALSTRUCTURE
COMMON SHARES
Issued & outstanding 47,278,751
Options (1) 5,059,902
Warrants (2) 12,857,690
Fully diluted shares outstanding 65,196,343
Management & board ownership 21,211,457% of basic shares outstanding 45%
Debt $0
RECENT FINANCINGS
February, 2018 - $2.67 million at $0.20 per unit, each unit consisting of one common share and ½ of a warrant to acquire a common share, each whole warrant exercisable at $0.40 until June 28, 2020.
Fall, 2018 - $1.49 million at $0.40 per unit, each unit consisting of one common share and one warrant to acquire a common share, exercisable at $0.50 for a period of 24 months from the closing of the offering.
(1) Weighted average option exercise price - $0.09(2) Weighted average warrant exercise price - $0.40
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MARKET COMPARABLES
July 2017
1st customer
with Ample
Company SymbolMarket
Capitalization(1)(2) Description
BLOCKStrain Technology Corp. TSXV:DNAX $14M Operates an integrated blockchain platform which registers and tracks cannabis intellectual property from genome to sale.
CannaOne Technologies Inc. CSE:CNNA $27M Proprietary business to business software platform with high functionality for cannabis businesses operating online or in a retail environment
Cannvas MedTech Inc. CSE:MTEC $13M Designs and builds customer-centric solutions that enable its partners to harness the power of data to truly understand their customers, industry, and key business drivers
Clean Seed Capital Group Ltd. TSXV:CSX $23M Production and distribution of its CX-6 SMART Seeders and advancement of its SMART Seeding technology
CO2 GRO Inc. TSXV:GROW $14M Engaged in increasing the growth of all value plants with the use of its patented advanced CO2 technologies. It facilitate all growers indoors and outdoors to increase their yields.
Global Cannabis Applications Corp. CSE:APP $10M Designs, develops, markets and acquires innovative data technologies for the cannabis industry. Its Citizen Green platform is an end-to-end - from patient to regulator - medical cannabis data solution.
Helix TCS Inc. OTC:HLIX $147M Provides technology, compliance, and security solutions to the legal cannabis industry in the United States
Surna OTC:SRNA $23M Environmental control and air sanitation systems for commercial, and state- and provincial-regulated indoor cannabis cultivation facilities
TILT Holdings Inc. CSE:TILT $196M Vertically-integrated technology and infrastructure platform for the cannabis industry - operations and software solutions at each touchpoint in the supply chain
Yield10 Bioscience NASDAQ:YTEN $14M Yield10 Bioscience, Inc., an agricultural bioscience company, engages in developing disruptive technologies for enhancing crop yield.
High/Low $196M / $10M
Average (ex-high/low)/Median $34M / $19M
Braingrid Corporation CSE:BGRD $8M
(1) As of January 25, 2019(2) Converted to C$ at 1.32 US$/C$ Source: TSX Venture Exchange, Canadian Stock Exchange, Yahoo Finance
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SUMMARY
● Cannabis precision Agtech company
● Patented & proven technology
● Deployed at 7 facilities, 11 pilots
● Strategic relationships
● AI in development
○ Risk “Signatures” library
● Helping Cannabis producers increase
yield and reduce costs
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