investor presentation a european medical cannabis … · 2019-05-07 · forward-looking information...

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INVESTOR PRESENTATION A European Medical Cannabis Investment Company Q2 2019

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Page 1: INVESTOR PRESENTATION A European Medical Cannabis … · 2019-05-07 · Forward-looking information includes estimates, plans, expectations, opinions, forecasts, projections, targets,

INVESTOR PRESENTATION

A European Medical Cannabis Investment Company

Q22019

Page 2: INVESTOR PRESENTATION A European Medical Cannabis … · 2019-05-07 · Forward-looking information includes estimates, plans, expectations, opinions, forecasts, projections, targets,

Safe HarbourThis Presentation contains “forward-looking information” within the meaning of applicable Canadian securities legislation which are based upon the Company’s current internal expectations,estimates, projections, assumptions and beliefs and views of future events. Forward-looking information can be identified by the use of forward-looking terminology such as “expect”, “likely”, “may”,“will”, “should”, “intend”, “anticipate”, “potential”, “proposed”, “estimate” and other similar words, including negative and grammatical variations thereof, or statements that certain events or conditions“may”, “would” or “will” happen, or by discussions of strategy.

Forward-looking information includes estimates, plans, expectations, opinions, forecasts, projections, targets, guidance or other statements that are not statements of fact. Forward-lookinginformation in this Presentation is based on our opinions, estimates and assumptions in light of our experience and perception of historical trends, current conditions and expected futuredevelopments, as well as other factors that we believe are appropriate and reasonable in the circumstances as at the date hereof. Despite a careful process to prepare and review the forward-lookinginformation, there can be no assurance that the underlying opinions, estimates and assumptions will prove to be correct. In particular, we have made assumptions in respect of the build-out of theBradford Facility; our competitive advantages; the expected legalization of cannabis use in Canada; the growth of our business and expansion into new markets; the development of new products andproduct formats for our cannabis-based pharmaceutical products; our ability to retain key personnel; our ability to continue investing in our infrastructure to support our growth; our ability to obtain andmaintain financing on acceptable terms; the impact of competition; the changes and trends in the medical cannabis industry; and changes in laws, rules and regulations.

Forward-looking information is necessarily based on a number of opinions, estimates and assumptions that we considered appropriate and reasonable as of the date hereof, are subject to known andunknown risks, uncertainties, assumptions and other factors that may cause the actual actions, events, results, performance or achievements to differ materially from what is projected in forward-looking information, including but not limited to the risks described in greater detail in the section entitled “Risk Factors” in our most recent annual information form available on SEDAR atwww.sedar.com.

Although we have attempted to identify important factors that could cause actual actions, events, results, performance or achievements to differ materially from those described in forward-lookinginformation, there may be other factors not presently known to us or that we presently believe are not material that may cause actions, events, results, performance or achievements to differ fromthose anticipated, estimated or intended. Should one or more of these risks or uncertainties materialize or should assumptions underlying the forward-looking information prove incorrect, actualactions, events, results, performance or achievements may vary materially from those expressed and implied by such statements contained in this Presentation. The purpose of forward-lookinginformation is to provide the reader with a description of management’s expectations, and such statements may not be appropriate for any other purpose. Accordingly, readers should not place unduereliance on forward-looking information. Although the Company believes that the expectations reflected in statements containing forward-looking information are reasonable, it can give no assurancethat such expectations will prove to be correct. The Company disclaims any obligation to update any forward-looking information, whether as a result of new information or future events or results,except to the extent required by applicable securities laws.

3 INVESTOR PRESENTATION

Page 3: INVESTOR PRESENTATION A European Medical Cannabis … · 2019-05-07 · Forward-looking information includes estimates, plans, expectations, opinions, forecasts, projections, targets,

Chinook Tyee Industry Limited is a Berlin basedinvestment company that invests in the Europeanmedical cannabis industry with the goal ofproviding pharmaceutical grade (EU-GMP)cannabis to German patients through imports fromCanada and other countries.

Chinook has 10.2-million shares issued and islisted on the TSX Venture Exchange (XCX) andthe Frankfurt Stock Exchange (C4T).

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Page 4: INVESTOR PRESENTATION A European Medical Cannabis … · 2019-05-07 · Forward-looking information includes estimates, plans, expectations, opinions, forecasts, projections, targets,

Capitalizing on the opportunity

• German demand for medical cannabis will outstrip supply for the next five years (2023) due to the highquality standards (EU-GMP) and complicated local regulations. German domestic production will not beavailable until 2021 at the earliest and will provide less than 10% of the overall demand.

• As a first mover, Chinook can quickly establish market leadership in Germany due to its proven Europeanmanagement team, unique import model and ability to meet supply shortages through multiple suppliers indifferent countries.

• Chinook’s investment subsidiaries focused on medical cannabis:

• AMP Germany will purchase and import EU-GMP medical cannabis into Germany predominantly fromlicensed producers (“LP”) from Canada, the biggest cannabis producer in the world.

• AMP Switzerland has begun to source EU-GMP medical cannabis grown in Switzerland for domestic useand export to Germany when legalized.

• Non-medical cannabis investments are held through Mercury Partners & Company plc, a Maltese investmentcompany that invests in distressed German assets.

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Page 5: INVESTOR PRESENTATION A European Medical Cannabis … · 2019-05-07 · Forward-looking information includes estimates, plans, expectations, opinions, forecasts, projections, targets,

Europe will be the largest cannabis market in the world

With a market of over 742 million people and total healthcare spend of €2.3-trillion, Europe is set to become theworld's largest legal cannabis market over the next five years (2023).

Throughout Europe, countries are beginning to legalizing medical cannabis. It is expected that all of Europe willhave legalized medical cannabis by 2023.

Germany is leading the way in Europe to expand medical programs and insurance coverage for medicalcannabis.

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743MEU population

€2.3TTotal EU healthcare

expenditure

€16.6TEU GDP

€8.33Average price per gram of

rec. cannabis in EU

C$12.60Average price per gram of rec.

cannabis in EU

Page 6: INVESTOR PRESENTATION A European Medical Cannabis … · 2019-05-07 · Forward-looking information includes estimates, plans, expectations, opinions, forecasts, projections, targets,

Germany is the largest medical cannabis market in EuropeGermany has the largest economy in Europe and is the third largest cannabis market after Canada and the US. The projected market value of medical cannabis in Germany will be €7.7-billion by 2028.

Germany has permitted the use of cannabis flowers for medicinal purposes since 2017. The medical cannabis programs and the state’s obligation to cover medical prescriptions are still being developed but will be among the most robust and set the standards for Europe.

Patient demand has grown from 1,000 in 2017 to over 40,000 in 2018 forcing the German government to rely on imports.

INVESTOR PRESENTATION7

GDP 3.1

Ruling Government Partycoalition- Social Democratic Party, christian Democratic, Union and

christian social union

Party Stance on cannabisIn favour of medical legalisation but recreational is unlikely before

2022

Total Healthcare Expenditure 325 (€B)

Total Beauty & WellbeingExpenditure 252 (€B)

Alcohol consumptions 13.4 (€B)

Prevalence of Tobacco Users 30.6 (€B)

Number of cannabis Users 3.3

Average Price Per Gram of cannabis 9.4

Population 82.2

Market Overview

Total Pharmaceutical Spending 60.7 (€B)

Page 7: INVESTOR PRESENTATION A European Medical Cannabis … · 2019-05-07 · Forward-looking information includes estimates, plans, expectations, opinions, forecasts, projections, targets,

AMP Alternative Medical Products GmbH

Based in Erfurt, Germany, AMP Germany purchases EU-GMP medical cannabis from third-party suppliers fromCanada and other countries and arranges transportation, logistics and storage services for ultimate distributionthrough pharmaceutical distributors to pharmacists in Germany.

All of AMP Germany’s suppliers will be audited by German auditors to ensure they meet the stringent EU-GMPstandards. Meeting the EU-GMP standard is the biggest obstacle for licensed producer of cannabis (LP) trying toexport to Germany. As the majority of LP’s in Canada are not EU-GMP, AMP Germany assists LP’s in their auditand arranges EU-GMP certification in Germany to allow importation.

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* LPs enter into MOU supply agreement with AMP. * AMP conducts EU-GMP gap analysis which identifies deficiencies.* LPs make upgrades with oversight by AMP.* AMP conducts EU-GMP audit.* LPs enter into definitive supply agreement with AMP. * AMP arranges German State Official EU-GMP certification.* AMP secures required import and export licenses.

Canada* AMP arranges secure transportation for narcotics.* MMJ will be stored a licensed narcotic storage facility contracted by

AMP.* Doctors prescribe MMJ medication to their patients.* AMP’s wholesalers supply to pharmacies.* Pharmacies fulfill MMJ prescription written by doctors.* Patients’ prescription costs to be reimbursed by health insurance.

Germany

Page 8: INVESTOR PRESENTATION A European Medical Cannabis … · 2019-05-07 · Forward-looking information includes estimates, plans, expectations, opinions, forecasts, projections, targets,

Alternative Medical Products Switzerland GmbH

Based in Zug, Switzerland, AMP Switzerland plans to enter into supply agreementswith Swiss producers for EU-GMP medical cannabis for the Swiss market andeventually the German market.

Switzerland is pivotal for the growth of the European cannabis industry from aninvestment and IP perspective as it is home to some of the biggest pharmaceuticalcompanies in the world as well as a number of financial institutions.

In Switzerland, legal cannabis products can contain up to 1% THC compared with thestandard 0.2% seen across Europe.

INVESTOR PRESENTATION9

GDP 577.7

Ruling Government Party Swiss Federal council

Party Stance on cannabis

Open to gradually shifting towards

legalisation

Total Healthcare Expenditure 70.7

Total Beauty & Wellbeing Expenditure 2.04

Alcohol consumptions 11.5

Prevalence of Tobacco Users 25.7

Number of cannabis Users 0.5

Average Price Per Gram of cannabis 11.1

Population 8.5

Market Overview

Page 9: INVESTOR PRESENTATION A European Medical Cannabis … · 2019-05-07 · Forward-looking information includes estimates, plans, expectations, opinions, forecasts, projections, targets,

Experienced Management Team with Proven Track Record

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Experience in German business and government, specifically in pulp and paper, plastic, aluminum and biodiesel industries. Formerly, MD of IIC, investment agency for Eastern Germany, and TLW, German State of Thuringia economic development agency.

Dr. Stefan FeuersteinDirector & President

Served on Canadian and US public company boards and as a senior executive. Formerly, with Gordon Capital and Bankers Trust.

Mr. Alex BlodgettDirector & CEO

Experience in European and Swiss commercial, trade and merchant banking. Chairman of Taiga Atlas plc. a European investment company. Formerly, SVP of MFC Merchant Bank Ltd., a specialty trade and structured finance bank.

Mr. Claudio MorandiDirector

Served on Canadian public company boards and as a senior executive predominately in renewable energy and mining projects in Asia and North and South Americas.

Mr. Ken MacLeodDirector

years experience in industrial and regulated German industries including pulp and paper, plastics, real estate, renewable energy and government economic development.+20 years in European

commercial, trade and merchant banking+25 years in Canadian

public company governance+30

Page 10: INVESTOR PRESENTATION A European Medical Cannabis … · 2019-05-07 · Forward-looking information includes estimates, plans, expectations, opinions, forecasts, projections, targets,

Financial Snapshotand Ownership Structure

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Frankfurt Stock Exchange Symbol TBA

Share Price $ 0.15

52 week high/low $0.25 / $0.07

Shares on Issue 10,217,796

Market Capitalization $1,532,669

NAV (unaudited, Dec19) $2,000,000

Insider Shareholdings 40%

Public Shareholdings 60%

TSX Venture Exchange Symbol XCX

C4T

Page 11: INVESTOR PRESENTATION A European Medical Cannabis … · 2019-05-07 · Forward-looking information includes estimates, plans, expectations, opinions, forecasts, projections, targets,

A European medical cannabis investment company

Canadian Investors

Phone: [email protected]

German and EU Investors

Phone: [email protected]

amp-eu.com

German Headquarters Charlottenstrasse 59 Berlin, 10117, Germany

Canadian Headquarters 224 West 5th AvenueVancouver, BC, V5Y 1J4, Canada

AMP Alternative Medical Products GmbHAlfred-Hess-Straße 23Erfurt 99094, Germany

Data Source: Prohibition Partners, The European Cannabis Report 12