may 2020market. • the u.s. market is greater than us$225 billion while the canadian market is in...
TRANSCRIPT
Corporate PresentationMay 2020
Certain information contained in this presentation constitutes forward-looking statements under applicable securities laws Any statements contained in this presentation that are not statements of historical fact may be deemed to be forward-looking statements these include without limitation statements regarding Xebra Brands Ltdrsquos (ldquoXEBRArdquo) expectations in respect of its ability to successfully execute its business plan its ability to raise additional capital and fund its ongoing operations plans for future growth and the direction of the business financial projections including expected revenues gross profits and EBITDA (which is a non-GAAP financial measure) plans to increase product volumes the capacity of existing facilities supplies from third party growers and contractors expected growth of the cannabis industry generally managementrsquos expectations beliefs and assumptions events or developments that XEBRA expects to take place in the future and general economic conditions All statements other than statements of historical facts are forward-looking information and statements The words ldquobelieverdquo ldquoexpectrdquo ldquoanticipaterdquo ldquocontemplaterdquo ldquotargetrdquo ldquointendsrdquo ldquocontinuerdquo ldquobudgetrdquo ldquoestimaterdquo ldquomayrdquo ldquowillrdquo and similar expressions identify forward-looking information and statements
Forward-looking statements are necessarily based upon a number of estimates and assumptions that while considered reasonable by XEBRA as of the date of such statements are inherently subject to significant business economic and competitive uncertainties and contingencies Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements Such factors include but are not limited to the inability of XEBRA to generate sufficient revenues or raise sufficient funds to carry out its business plan changes in government legislation taxation controls regulations and political or economic developments in various countries risks associated with agriculture and cultivation activities generally including inclement weather access to supply of seeds poor crop yields and spoilage compliance with import and export laws of various countries significant fluctuations in cannabis prices and transportation costs the risk of obtaining necessary licenses and permits inability to identify negotiate and complete a potential acquisition for any reason the ability to retain key employees dependence on third parties for services and supplies non-performance by contractual counter-parties general economic conditions and the continued growth in global demand for cannabis products and the continued increase in jurisdictions legalizing cannabis and the timely receipt of regulatory approval for Medicannabisrsquo license applications The foregoing list is not exhaustive and XEBRA undertakes no obligation to update or revise any of the foregoing except as required by law Many of these uncertainties and contingencies could affect XEBRArsquos actual performance and cause its actual performance to differ materially from what has been expressed or implied in any forward-looking statements made by or on behalf of XEBRA Readers are cautioned that forward-looking statements are not guarantees of future performance and readers should not place undue reliance on such forward-looking statements There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those set out in such statements
2
Disclaimers
Cannabis cultivation in the US and Canada is financially unsustainable
A brand is the single most important investment a business can make
The ultimate brand strategy is to increase value with intellectual property
2 31
We are a cannabis cultivation and product company with global brands and intellectual property Our verticals
cover wellness and leisure and include beverages
3
We Have Filed the Equivalent of 414 Trademark Applications for Our Brands in 46 Countries
Our genetic seed library includes 144 cannabis cultivars amp breeding lines
CANNABISLegalized
in about 30 countries
CANNABISDecriminalized in an additional
20 countries
GLOBAL
US$1039Billion
NORTH AMERICA
US$473Billion
EUROPE
US$391Billion
LATAM amp CARIBBEAN
US$91Billion
Market Projections for 2024
High THC bull High CBD bull Balanced THCCBD bull High CBG
Clear and Flavorless bull Shelf Stable bull Scalable bull Highly BioavailableWe have licensed intellectual property to render cannabis water soluble
Source Prohibition Partners 4
We have applied for authorizations to manufacture and sell our Elements CBD wellness products
bull CBD Warming Spray
bull CBD Cooling Spray
bull CBD Massage Oil
bull CBD Edible Body Cream
bull CBD Lip Balm
bull CBD Roll-on Cream
bull CBD Intimate Lubricant
bull CBD Talc
bull CBD Capsules
bull CBD Tinctures
bull CBD Balm
bull CBD Cream
5
Our CBD Wellness Brand
We have created a number of great tasting cannabis infused beverages including soft drinks iced teas lemonade and waters Energy drinks and a CBD sports beverage are under development
Itrsquos High Timetrade Protecttrade Lemonade for RenegadestradeCrazy Goodtrade Enjoy the Triptrade
HIGH CASTLECOMING SOON
6
Our Beverage Brands
bull Ready-to-drink beverages and packaged beers currently represent US$1 trillion in the global market
bull The US market is greater than US$225 billion while the Canadian market is in excess of US$19 billion
bull According to some estimates the relative market for cannabis infused beverages could be 14 of the overall alcohol beverage market
$37BSPIRITS
2018
$45BCANNABIS
2018
$53BWINE
2018
ldquoConstellation Brandsrsquo US$4 billion investment in cannabis company may signal industry shakeuprdquo
ldquoCannabis stocks jump after reports that Diageo is in talks with three pot producersrdquo
ldquoAnheuser-Busch InBev partners with cannabis companyrdquo
ldquoMolson Coors enters into joint venture to develop cannabis infused beveragesrdquo
Notable News
Source Eight Capital
Figures in US$
Canadian Market
7
The Cannabis Beverage Market
bull Optimal Growing Conditions bull Established Agricultural Industry bull Free Trade Advantages bull Stable Governmentsbull Low Cost Skilled Laborbull Low Cost Cultivation
8
The Latin American Cultivation Advantage
Figures in US$ Projected financial information actual results may differ
CAPEX per FT2
$513 $205 $96 $10 ndash $15 $5 ndash $10
CanadianIndoor
United StatesIndoor
CanadianGreenhouse
Latin AmericanHoop-House
Latin AmericanOutdoor
Cost per Gram of Dry Flower$050 ndash $230 $005 ndash $020
United States amp Canada
Latin America
1 ounce = 2835 grams1 m2 = 1076 ft2
9
Our Low Cost Cultivation Strategy
We will grow cannabis in low cost countries in open-fields for CBD and in inexpensive hoop-houses for THC
Our 3000 ft2 (~278m2) THC hoop-houses are low cost semi-passive greenhouses designed to minimize expensive energy use by maximizing natural energy utilization We employ natural systems to further reduce production costs
HOOP-HOUSE GREENHOUSE
CONVENTIONAL GREENHOUSE
LIGHTING Sun Electrical
HEATING amp COOLING Sun Convection Airflow Electrical Fossil Fuels
VENTILATION Fans Wind Forced Air
PEST amp DISEASE CONTROL Insects Biocontrols Pesticides Fungicides
FERTILIZERS Optimized by Microbes Expensive Products
SOIL Native Soil (re-use) Soil-less Media (limited re-use)
FRONT SIDE
10
Our Hoop-Houses
XEBRArsquos business plan evaluated three capital expenditure scenarios low medium and high The above figures assume the ldquohighrdquo scenario
Projected Initial Capital Expenditures US$
Hoop-houses ~1 hectare $1285000
Processing Equipment (not a recurring cost) 950000
Total Initial Capital Expenditures (1st Hectare) $2235000
Projected Capital Expenditures per Additional Hectare $1285000
Projected Initial Capital Expenditures US$
Building Machinery amp Equipment ~1 hectare $25000
Processing Equipment (not a recurring cost) 950000
Total Initial Capital Expenditures (1st Hectare) $975000
Projected Capital Expenditures per Additional Hectare $ insignificant
Hoop-house Cultivation and Processingto a Refined THC Extract
Outdoor Cultivation and Processingto a Refined CBD Extract
11
Latin American Cultivation CAPEX
Canopy Growth$61B
1048672 Chile1048675 Colombia1048672 Mexico1048672 Uruguay
Aphria$10B
1048672 Chile1048675 Colombia1048672 Mexico1048672 Uruguay
Organigram$297M
1048672 Chile1048672 Colombia1048672 Mexico1048672 Uruguay
Cronos$23B
1048672 Chile1048675 Colombia1048672 Mexico1048672 Uruguay
Tilray$926M
1048675 Chile1048672 Colombia1048672 Mexico1048672 Uruguay
Aurora$10B
1048672 Chile1048672 Colombia1048672 Mexico1048675 Uruguay
Hexo$187M
1048672 Chile1048672 Colombia1048672 Mexico1048672 Uruguay
The Green Organic Dutchman$63M
1048672 Chile1048672 Colombia1048672 Mexico1048672 Uruguay
Medicine Man$78M
1048672 Chile1048672 Colombia1048672 Mexico1048672 Uruguay
Auxly$198M
1048672 Chile1048672 Colombia1048672 Mexico1048675 Uruguay
Cannabis cultivators will introduce low cost Latin American operations in order to ensure their long-term survival
Curaleaf$23B
1048672 Chile1048672 Colombia1048672 Mexico1048672 Uruguay
Cresco Labs$891M
1048672 Chile1048672 Colombia1048672 Mexico1048672 Uruguay
Market Capitalization in $US as at April 27 2020
12
Lack of Low Cost Cultivation of Major Cannabis Companies
Our breeding facilities will be located in Guasca and our 14
hectare cultivation property will be located in Zipaquiraacute mdash the sites
are 1 to 15 hours from Bogota international airport
13
Cannabis Regulations in Colombia
We hold licenses to cultivateand process cannabis in Colombia
bull Colombia legalized the use and production of medical cannabis in 2016
bull The UN awarded Colombia 21 of global THC cannabis production for 2020
bull Large-scale commercial production commenced in 2020
All progress on cannabis legalization in Mexico has been made via Supreme Court constitutional challenges
Supreme Court grants the first constitutional injunction in favor of 5
individuals enabling them to possess cannabis for personal consumption
Legal framework for medical cannabis products
Supreme Court declares cannabis prohibition unconstitutional and
orders Congress to reform
Following grant of another constitutional injunction Supreme
Court orders drafting of comprehensive regulations for medical cannabis
Anticipated grant of constitutional
injunction to Xebra
Deadline for draft of cannabis legal
framework
2014NOVEMBER
2017JUNE
2019FEBRUARY
2019AUGUST
2020OCTOBER
2020DECEMBER
14
Cannabis Regulations in Mexico
bull FACT As agricultural products ldquocommoditizerdquo industrial-scale farming shifts to countries with low-cost land and labor
bull FACT The NAFTA free trade agreement (now called USMCA) was devastating to Canadian and US agricultural production
bull FACT The cut-flower industry for example has been decimated post-NAFTA ~85 of cut-flowers in Canada and the US are now imported (ironically Californiarsquos cut-flower greenhouses were occupied by cannabis growers)
bull Some argue that the Canadian and US governments will protect cannabis growers but is it really different this time No There are no exemptions or carve-outs under USMCA for cannabis
bull Because of the US 2018 Farm Bill after Mexico legalizes (expected December 2020) the majority of CBD derived from hemp will be imported from Mexico
bull ldquoWhenrdquo not ldquoifrdquo the US removes THC as a Schedule 1 drug the majority of industrial-scale cannabis derivatives (THC CBD CBG etc) will be imported from Mexico
15
Impact of Mexican Legalization on the US and Canada
Mexican tobacco law prohibits the sale of vaping products
However three companies have previously been granted legal interpretations by Mexican authorities (the Mexican FDA)
to import and commercialize vaping devices as long as the hardware and the juice are sold separately They are
Philip Morris British American Tobacco andhellip Xebra
16
Cannabis Vaping First Mover in Mexico
Our Cannabis Business Model
Latin American Sales and for
Export
Production of Cannabis
Beverages and other Products
Cultivate and process Cannabis in
Colombia and Mexico
17
Q2 2020Complete all brand and formulation development
Q3 2021Sales of CBD products
Q3 2020Complete all trademark applications covering 46 countries
Q4 2021Sales from first harvests
Q1 2021Sales of vaping products
Q4 2021Sales of beverages
Q2 2021Initiate cultivation
18
Dates and objectives are plans only actual results may vary
Our Projected Path to Revenue
Todd Dalotto PresidentHorticultural scientist and cannabis breeder Was instrumental in the drafting of Oregonrsquos medical marijuana legislation
Robert Giustra ChairmanActively engaged in venture capital and in founding funding and listing publicly traded companies for 28 years
Jordi Chemonte DirectorFounded several successful enterprises in Mexico Former CEO of Elements Bioscience a first-mover in Mexican cannabis
Jorge Martiacutenez COOOver 25 years of experience in venture capital Specialized in operational and management efficiencies
Andrew Yau CFOHas been in accounting and finance roles with publicly listed companies for 14 years
Rodrigo Gallardo Country Manager MexicoCorporate lawyer and business executive He was vital in the success of a number of Mexican start-up business ventures
Diego Chiguachi Colombia Chief Agronomist amp BreederAgro-engineer specialized in genetics Managed agricultural projects for the United Nations and for indigenous communities
Emisel Fonseca Food ScientistA food scientist and biotechnology engineer Is the head of a Mexican cosmetics and dietary supplements manufacturing company
Todd Dalotto President mdash FULL BIO
Mr Dalotto is a horticultural scientist public policy consultant and court-qualified expert witness specializing in cannabis He breeds and conducts horticultural research and consults businesses on the horticultural science and public policy of cannabis His research objectives over the past twenty years include breeding of in-bred lines morphology sustainable practices semi-passive greenhouse production and mutualisms Todd has a horticultural research degree with emphasis on sustainable agriculture and plant breeding from Oregon State University is former Chair of the Oregon Health Authorityrsquos Advisory Committee on Medical Marijuana (ACMM) as well as the ACMMrsquos Horticulture Research amp Safety Committee has served on various legislative and rules advisory committees for the State of Oregon and helped draft the regulations for Oregonrsquos Medical Marijuana Dispensary Program and he founded Oregonrsquos first cannabis medical clinic education amp support center
19
Our Team
As at May 1 2020
Shares Outstanding 100499318Stock Options nilWarrants nil
Debt nil
20
Our Capital Structure
xebrabrandscom
Certain information contained in this presentation constitutes forward-looking statements under applicable securities laws Any statements contained in this presentation that are not statements of historical fact may be deemed to be forward-looking statements these include without limitation statements regarding Xebra Brands Ltdrsquos (ldquoXEBRArdquo) expectations in respect of its ability to successfully execute its business plan its ability to raise additional capital and fund its ongoing operations plans for future growth and the direction of the business financial projections including expected revenues gross profits and EBITDA (which is a non-GAAP financial measure) plans to increase product volumes the capacity of existing facilities supplies from third party growers and contractors expected growth of the cannabis industry generally managementrsquos expectations beliefs and assumptions events or developments that XEBRA expects to take place in the future and general economic conditions All statements other than statements of historical facts are forward-looking information and statements The words ldquobelieverdquo ldquoexpectrdquo ldquoanticipaterdquo ldquocontemplaterdquo ldquotargetrdquo ldquointendsrdquo ldquocontinuerdquo ldquobudgetrdquo ldquoestimaterdquo ldquomayrdquo ldquowillrdquo and similar expressions identify forward-looking information and statements
Forward-looking statements are necessarily based upon a number of estimates and assumptions that while considered reasonable by XEBRA as of the date of such statements are inherently subject to significant business economic and competitive uncertainties and contingencies Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements Such factors include but are not limited to the inability of XEBRA to generate sufficient revenues or raise sufficient funds to carry out its business plan changes in government legislation taxation controls regulations and political or economic developments in various countries risks associated with agriculture and cultivation activities generally including inclement weather access to supply of seeds poor crop yields and spoilage compliance with import and export laws of various countries significant fluctuations in cannabis prices and transportation costs the risk of obtaining necessary licenses and permits inability to identify negotiate and complete a potential acquisition for any reason the ability to retain key employees dependence on third parties for services and supplies non-performance by contractual counter-parties general economic conditions and the continued growth in global demand for cannabis products and the continued increase in jurisdictions legalizing cannabis and the timely receipt of regulatory approval for Medicannabisrsquo license applications The foregoing list is not exhaustive and XEBRA undertakes no obligation to update or revise any of the foregoing except as required by law Many of these uncertainties and contingencies could affect XEBRArsquos actual performance and cause its actual performance to differ materially from what has been expressed or implied in any forward-looking statements made by or on behalf of XEBRA Readers are cautioned that forward-looking statements are not guarantees of future performance and readers should not place undue reliance on such forward-looking statements There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those set out in such statements
2
Disclaimers
Cannabis cultivation in the US and Canada is financially unsustainable
A brand is the single most important investment a business can make
The ultimate brand strategy is to increase value with intellectual property
2 31
We are a cannabis cultivation and product company with global brands and intellectual property Our verticals
cover wellness and leisure and include beverages
3
We Have Filed the Equivalent of 414 Trademark Applications for Our Brands in 46 Countries
Our genetic seed library includes 144 cannabis cultivars amp breeding lines
CANNABISLegalized
in about 30 countries
CANNABISDecriminalized in an additional
20 countries
GLOBAL
US$1039Billion
NORTH AMERICA
US$473Billion
EUROPE
US$391Billion
LATAM amp CARIBBEAN
US$91Billion
Market Projections for 2024
High THC bull High CBD bull Balanced THCCBD bull High CBG
Clear and Flavorless bull Shelf Stable bull Scalable bull Highly BioavailableWe have licensed intellectual property to render cannabis water soluble
Source Prohibition Partners 4
We have applied for authorizations to manufacture and sell our Elements CBD wellness products
bull CBD Warming Spray
bull CBD Cooling Spray
bull CBD Massage Oil
bull CBD Edible Body Cream
bull CBD Lip Balm
bull CBD Roll-on Cream
bull CBD Intimate Lubricant
bull CBD Talc
bull CBD Capsules
bull CBD Tinctures
bull CBD Balm
bull CBD Cream
5
Our CBD Wellness Brand
We have created a number of great tasting cannabis infused beverages including soft drinks iced teas lemonade and waters Energy drinks and a CBD sports beverage are under development
Itrsquos High Timetrade Protecttrade Lemonade for RenegadestradeCrazy Goodtrade Enjoy the Triptrade
HIGH CASTLECOMING SOON
6
Our Beverage Brands
bull Ready-to-drink beverages and packaged beers currently represent US$1 trillion in the global market
bull The US market is greater than US$225 billion while the Canadian market is in excess of US$19 billion
bull According to some estimates the relative market for cannabis infused beverages could be 14 of the overall alcohol beverage market
$37BSPIRITS
2018
$45BCANNABIS
2018
$53BWINE
2018
ldquoConstellation Brandsrsquo US$4 billion investment in cannabis company may signal industry shakeuprdquo
ldquoCannabis stocks jump after reports that Diageo is in talks with three pot producersrdquo
ldquoAnheuser-Busch InBev partners with cannabis companyrdquo
ldquoMolson Coors enters into joint venture to develop cannabis infused beveragesrdquo
Notable News
Source Eight Capital
Figures in US$
Canadian Market
7
The Cannabis Beverage Market
bull Optimal Growing Conditions bull Established Agricultural Industry bull Free Trade Advantages bull Stable Governmentsbull Low Cost Skilled Laborbull Low Cost Cultivation
8
The Latin American Cultivation Advantage
Figures in US$ Projected financial information actual results may differ
CAPEX per FT2
$513 $205 $96 $10 ndash $15 $5 ndash $10
CanadianIndoor
United StatesIndoor
CanadianGreenhouse
Latin AmericanHoop-House
Latin AmericanOutdoor
Cost per Gram of Dry Flower$050 ndash $230 $005 ndash $020
United States amp Canada
Latin America
1 ounce = 2835 grams1 m2 = 1076 ft2
9
Our Low Cost Cultivation Strategy
We will grow cannabis in low cost countries in open-fields for CBD and in inexpensive hoop-houses for THC
Our 3000 ft2 (~278m2) THC hoop-houses are low cost semi-passive greenhouses designed to minimize expensive energy use by maximizing natural energy utilization We employ natural systems to further reduce production costs
HOOP-HOUSE GREENHOUSE
CONVENTIONAL GREENHOUSE
LIGHTING Sun Electrical
HEATING amp COOLING Sun Convection Airflow Electrical Fossil Fuels
VENTILATION Fans Wind Forced Air
PEST amp DISEASE CONTROL Insects Biocontrols Pesticides Fungicides
FERTILIZERS Optimized by Microbes Expensive Products
SOIL Native Soil (re-use) Soil-less Media (limited re-use)
FRONT SIDE
10
Our Hoop-Houses
XEBRArsquos business plan evaluated three capital expenditure scenarios low medium and high The above figures assume the ldquohighrdquo scenario
Projected Initial Capital Expenditures US$
Hoop-houses ~1 hectare $1285000
Processing Equipment (not a recurring cost) 950000
Total Initial Capital Expenditures (1st Hectare) $2235000
Projected Capital Expenditures per Additional Hectare $1285000
Projected Initial Capital Expenditures US$
Building Machinery amp Equipment ~1 hectare $25000
Processing Equipment (not a recurring cost) 950000
Total Initial Capital Expenditures (1st Hectare) $975000
Projected Capital Expenditures per Additional Hectare $ insignificant
Hoop-house Cultivation and Processingto a Refined THC Extract
Outdoor Cultivation and Processingto a Refined CBD Extract
11
Latin American Cultivation CAPEX
Canopy Growth$61B
1048672 Chile1048675 Colombia1048672 Mexico1048672 Uruguay
Aphria$10B
1048672 Chile1048675 Colombia1048672 Mexico1048672 Uruguay
Organigram$297M
1048672 Chile1048672 Colombia1048672 Mexico1048672 Uruguay
Cronos$23B
1048672 Chile1048675 Colombia1048672 Mexico1048672 Uruguay
Tilray$926M
1048675 Chile1048672 Colombia1048672 Mexico1048672 Uruguay
Aurora$10B
1048672 Chile1048672 Colombia1048672 Mexico1048675 Uruguay
Hexo$187M
1048672 Chile1048672 Colombia1048672 Mexico1048672 Uruguay
The Green Organic Dutchman$63M
1048672 Chile1048672 Colombia1048672 Mexico1048672 Uruguay
Medicine Man$78M
1048672 Chile1048672 Colombia1048672 Mexico1048672 Uruguay
Auxly$198M
1048672 Chile1048672 Colombia1048672 Mexico1048675 Uruguay
Cannabis cultivators will introduce low cost Latin American operations in order to ensure their long-term survival
Curaleaf$23B
1048672 Chile1048672 Colombia1048672 Mexico1048672 Uruguay
Cresco Labs$891M
1048672 Chile1048672 Colombia1048672 Mexico1048672 Uruguay
Market Capitalization in $US as at April 27 2020
12
Lack of Low Cost Cultivation of Major Cannabis Companies
Our breeding facilities will be located in Guasca and our 14
hectare cultivation property will be located in Zipaquiraacute mdash the sites
are 1 to 15 hours from Bogota international airport
13
Cannabis Regulations in Colombia
We hold licenses to cultivateand process cannabis in Colombia
bull Colombia legalized the use and production of medical cannabis in 2016
bull The UN awarded Colombia 21 of global THC cannabis production for 2020
bull Large-scale commercial production commenced in 2020
All progress on cannabis legalization in Mexico has been made via Supreme Court constitutional challenges
Supreme Court grants the first constitutional injunction in favor of 5
individuals enabling them to possess cannabis for personal consumption
Legal framework for medical cannabis products
Supreme Court declares cannabis prohibition unconstitutional and
orders Congress to reform
Following grant of another constitutional injunction Supreme
Court orders drafting of comprehensive regulations for medical cannabis
Anticipated grant of constitutional
injunction to Xebra
Deadline for draft of cannabis legal
framework
2014NOVEMBER
2017JUNE
2019FEBRUARY
2019AUGUST
2020OCTOBER
2020DECEMBER
14
Cannabis Regulations in Mexico
bull FACT As agricultural products ldquocommoditizerdquo industrial-scale farming shifts to countries with low-cost land and labor
bull FACT The NAFTA free trade agreement (now called USMCA) was devastating to Canadian and US agricultural production
bull FACT The cut-flower industry for example has been decimated post-NAFTA ~85 of cut-flowers in Canada and the US are now imported (ironically Californiarsquos cut-flower greenhouses were occupied by cannabis growers)
bull Some argue that the Canadian and US governments will protect cannabis growers but is it really different this time No There are no exemptions or carve-outs under USMCA for cannabis
bull Because of the US 2018 Farm Bill after Mexico legalizes (expected December 2020) the majority of CBD derived from hemp will be imported from Mexico
bull ldquoWhenrdquo not ldquoifrdquo the US removes THC as a Schedule 1 drug the majority of industrial-scale cannabis derivatives (THC CBD CBG etc) will be imported from Mexico
15
Impact of Mexican Legalization on the US and Canada
Mexican tobacco law prohibits the sale of vaping products
However three companies have previously been granted legal interpretations by Mexican authorities (the Mexican FDA)
to import and commercialize vaping devices as long as the hardware and the juice are sold separately They are
Philip Morris British American Tobacco andhellip Xebra
16
Cannabis Vaping First Mover in Mexico
Our Cannabis Business Model
Latin American Sales and for
Export
Production of Cannabis
Beverages and other Products
Cultivate and process Cannabis in
Colombia and Mexico
17
Q2 2020Complete all brand and formulation development
Q3 2021Sales of CBD products
Q3 2020Complete all trademark applications covering 46 countries
Q4 2021Sales from first harvests
Q1 2021Sales of vaping products
Q4 2021Sales of beverages
Q2 2021Initiate cultivation
18
Dates and objectives are plans only actual results may vary
Our Projected Path to Revenue
Todd Dalotto PresidentHorticultural scientist and cannabis breeder Was instrumental in the drafting of Oregonrsquos medical marijuana legislation
Robert Giustra ChairmanActively engaged in venture capital and in founding funding and listing publicly traded companies for 28 years
Jordi Chemonte DirectorFounded several successful enterprises in Mexico Former CEO of Elements Bioscience a first-mover in Mexican cannabis
Jorge Martiacutenez COOOver 25 years of experience in venture capital Specialized in operational and management efficiencies
Andrew Yau CFOHas been in accounting and finance roles with publicly listed companies for 14 years
Rodrigo Gallardo Country Manager MexicoCorporate lawyer and business executive He was vital in the success of a number of Mexican start-up business ventures
Diego Chiguachi Colombia Chief Agronomist amp BreederAgro-engineer specialized in genetics Managed agricultural projects for the United Nations and for indigenous communities
Emisel Fonseca Food ScientistA food scientist and biotechnology engineer Is the head of a Mexican cosmetics and dietary supplements manufacturing company
Todd Dalotto President mdash FULL BIO
Mr Dalotto is a horticultural scientist public policy consultant and court-qualified expert witness specializing in cannabis He breeds and conducts horticultural research and consults businesses on the horticultural science and public policy of cannabis His research objectives over the past twenty years include breeding of in-bred lines morphology sustainable practices semi-passive greenhouse production and mutualisms Todd has a horticultural research degree with emphasis on sustainable agriculture and plant breeding from Oregon State University is former Chair of the Oregon Health Authorityrsquos Advisory Committee on Medical Marijuana (ACMM) as well as the ACMMrsquos Horticulture Research amp Safety Committee has served on various legislative and rules advisory committees for the State of Oregon and helped draft the regulations for Oregonrsquos Medical Marijuana Dispensary Program and he founded Oregonrsquos first cannabis medical clinic education amp support center
19
Our Team
As at May 1 2020
Shares Outstanding 100499318Stock Options nilWarrants nil
Debt nil
20
Our Capital Structure
xebrabrandscom
Cannabis cultivation in the US and Canada is financially unsustainable
A brand is the single most important investment a business can make
The ultimate brand strategy is to increase value with intellectual property
2 31
We are a cannabis cultivation and product company with global brands and intellectual property Our verticals
cover wellness and leisure and include beverages
3
We Have Filed the Equivalent of 414 Trademark Applications for Our Brands in 46 Countries
Our genetic seed library includes 144 cannabis cultivars amp breeding lines
CANNABISLegalized
in about 30 countries
CANNABISDecriminalized in an additional
20 countries
GLOBAL
US$1039Billion
NORTH AMERICA
US$473Billion
EUROPE
US$391Billion
LATAM amp CARIBBEAN
US$91Billion
Market Projections for 2024
High THC bull High CBD bull Balanced THCCBD bull High CBG
Clear and Flavorless bull Shelf Stable bull Scalable bull Highly BioavailableWe have licensed intellectual property to render cannabis water soluble
Source Prohibition Partners 4
We have applied for authorizations to manufacture and sell our Elements CBD wellness products
bull CBD Warming Spray
bull CBD Cooling Spray
bull CBD Massage Oil
bull CBD Edible Body Cream
bull CBD Lip Balm
bull CBD Roll-on Cream
bull CBD Intimate Lubricant
bull CBD Talc
bull CBD Capsules
bull CBD Tinctures
bull CBD Balm
bull CBD Cream
5
Our CBD Wellness Brand
We have created a number of great tasting cannabis infused beverages including soft drinks iced teas lemonade and waters Energy drinks and a CBD sports beverage are under development
Itrsquos High Timetrade Protecttrade Lemonade for RenegadestradeCrazy Goodtrade Enjoy the Triptrade
HIGH CASTLECOMING SOON
6
Our Beverage Brands
bull Ready-to-drink beverages and packaged beers currently represent US$1 trillion in the global market
bull The US market is greater than US$225 billion while the Canadian market is in excess of US$19 billion
bull According to some estimates the relative market for cannabis infused beverages could be 14 of the overall alcohol beverage market
$37BSPIRITS
2018
$45BCANNABIS
2018
$53BWINE
2018
ldquoConstellation Brandsrsquo US$4 billion investment in cannabis company may signal industry shakeuprdquo
ldquoCannabis stocks jump after reports that Diageo is in talks with three pot producersrdquo
ldquoAnheuser-Busch InBev partners with cannabis companyrdquo
ldquoMolson Coors enters into joint venture to develop cannabis infused beveragesrdquo
Notable News
Source Eight Capital
Figures in US$
Canadian Market
7
The Cannabis Beverage Market
bull Optimal Growing Conditions bull Established Agricultural Industry bull Free Trade Advantages bull Stable Governmentsbull Low Cost Skilled Laborbull Low Cost Cultivation
8
The Latin American Cultivation Advantage
Figures in US$ Projected financial information actual results may differ
CAPEX per FT2
$513 $205 $96 $10 ndash $15 $5 ndash $10
CanadianIndoor
United StatesIndoor
CanadianGreenhouse
Latin AmericanHoop-House
Latin AmericanOutdoor
Cost per Gram of Dry Flower$050 ndash $230 $005 ndash $020
United States amp Canada
Latin America
1 ounce = 2835 grams1 m2 = 1076 ft2
9
Our Low Cost Cultivation Strategy
We will grow cannabis in low cost countries in open-fields for CBD and in inexpensive hoop-houses for THC
Our 3000 ft2 (~278m2) THC hoop-houses are low cost semi-passive greenhouses designed to minimize expensive energy use by maximizing natural energy utilization We employ natural systems to further reduce production costs
HOOP-HOUSE GREENHOUSE
CONVENTIONAL GREENHOUSE
LIGHTING Sun Electrical
HEATING amp COOLING Sun Convection Airflow Electrical Fossil Fuels
VENTILATION Fans Wind Forced Air
PEST amp DISEASE CONTROL Insects Biocontrols Pesticides Fungicides
FERTILIZERS Optimized by Microbes Expensive Products
SOIL Native Soil (re-use) Soil-less Media (limited re-use)
FRONT SIDE
10
Our Hoop-Houses
XEBRArsquos business plan evaluated three capital expenditure scenarios low medium and high The above figures assume the ldquohighrdquo scenario
Projected Initial Capital Expenditures US$
Hoop-houses ~1 hectare $1285000
Processing Equipment (not a recurring cost) 950000
Total Initial Capital Expenditures (1st Hectare) $2235000
Projected Capital Expenditures per Additional Hectare $1285000
Projected Initial Capital Expenditures US$
Building Machinery amp Equipment ~1 hectare $25000
Processing Equipment (not a recurring cost) 950000
Total Initial Capital Expenditures (1st Hectare) $975000
Projected Capital Expenditures per Additional Hectare $ insignificant
Hoop-house Cultivation and Processingto a Refined THC Extract
Outdoor Cultivation and Processingto a Refined CBD Extract
11
Latin American Cultivation CAPEX
Canopy Growth$61B
1048672 Chile1048675 Colombia1048672 Mexico1048672 Uruguay
Aphria$10B
1048672 Chile1048675 Colombia1048672 Mexico1048672 Uruguay
Organigram$297M
1048672 Chile1048672 Colombia1048672 Mexico1048672 Uruguay
Cronos$23B
1048672 Chile1048675 Colombia1048672 Mexico1048672 Uruguay
Tilray$926M
1048675 Chile1048672 Colombia1048672 Mexico1048672 Uruguay
Aurora$10B
1048672 Chile1048672 Colombia1048672 Mexico1048675 Uruguay
Hexo$187M
1048672 Chile1048672 Colombia1048672 Mexico1048672 Uruguay
The Green Organic Dutchman$63M
1048672 Chile1048672 Colombia1048672 Mexico1048672 Uruguay
Medicine Man$78M
1048672 Chile1048672 Colombia1048672 Mexico1048672 Uruguay
Auxly$198M
1048672 Chile1048672 Colombia1048672 Mexico1048675 Uruguay
Cannabis cultivators will introduce low cost Latin American operations in order to ensure their long-term survival
Curaleaf$23B
1048672 Chile1048672 Colombia1048672 Mexico1048672 Uruguay
Cresco Labs$891M
1048672 Chile1048672 Colombia1048672 Mexico1048672 Uruguay
Market Capitalization in $US as at April 27 2020
12
Lack of Low Cost Cultivation of Major Cannabis Companies
Our breeding facilities will be located in Guasca and our 14
hectare cultivation property will be located in Zipaquiraacute mdash the sites
are 1 to 15 hours from Bogota international airport
13
Cannabis Regulations in Colombia
We hold licenses to cultivateand process cannabis in Colombia
bull Colombia legalized the use and production of medical cannabis in 2016
bull The UN awarded Colombia 21 of global THC cannabis production for 2020
bull Large-scale commercial production commenced in 2020
All progress on cannabis legalization in Mexico has been made via Supreme Court constitutional challenges
Supreme Court grants the first constitutional injunction in favor of 5
individuals enabling them to possess cannabis for personal consumption
Legal framework for medical cannabis products
Supreme Court declares cannabis prohibition unconstitutional and
orders Congress to reform
Following grant of another constitutional injunction Supreme
Court orders drafting of comprehensive regulations for medical cannabis
Anticipated grant of constitutional
injunction to Xebra
Deadline for draft of cannabis legal
framework
2014NOVEMBER
2017JUNE
2019FEBRUARY
2019AUGUST
2020OCTOBER
2020DECEMBER
14
Cannabis Regulations in Mexico
bull FACT As agricultural products ldquocommoditizerdquo industrial-scale farming shifts to countries with low-cost land and labor
bull FACT The NAFTA free trade agreement (now called USMCA) was devastating to Canadian and US agricultural production
bull FACT The cut-flower industry for example has been decimated post-NAFTA ~85 of cut-flowers in Canada and the US are now imported (ironically Californiarsquos cut-flower greenhouses were occupied by cannabis growers)
bull Some argue that the Canadian and US governments will protect cannabis growers but is it really different this time No There are no exemptions or carve-outs under USMCA for cannabis
bull Because of the US 2018 Farm Bill after Mexico legalizes (expected December 2020) the majority of CBD derived from hemp will be imported from Mexico
bull ldquoWhenrdquo not ldquoifrdquo the US removes THC as a Schedule 1 drug the majority of industrial-scale cannabis derivatives (THC CBD CBG etc) will be imported from Mexico
15
Impact of Mexican Legalization on the US and Canada
Mexican tobacco law prohibits the sale of vaping products
However three companies have previously been granted legal interpretations by Mexican authorities (the Mexican FDA)
to import and commercialize vaping devices as long as the hardware and the juice are sold separately They are
Philip Morris British American Tobacco andhellip Xebra
16
Cannabis Vaping First Mover in Mexico
Our Cannabis Business Model
Latin American Sales and for
Export
Production of Cannabis
Beverages and other Products
Cultivate and process Cannabis in
Colombia and Mexico
17
Q2 2020Complete all brand and formulation development
Q3 2021Sales of CBD products
Q3 2020Complete all trademark applications covering 46 countries
Q4 2021Sales from first harvests
Q1 2021Sales of vaping products
Q4 2021Sales of beverages
Q2 2021Initiate cultivation
18
Dates and objectives are plans only actual results may vary
Our Projected Path to Revenue
Todd Dalotto PresidentHorticultural scientist and cannabis breeder Was instrumental in the drafting of Oregonrsquos medical marijuana legislation
Robert Giustra ChairmanActively engaged in venture capital and in founding funding and listing publicly traded companies for 28 years
Jordi Chemonte DirectorFounded several successful enterprises in Mexico Former CEO of Elements Bioscience a first-mover in Mexican cannabis
Jorge Martiacutenez COOOver 25 years of experience in venture capital Specialized in operational and management efficiencies
Andrew Yau CFOHas been in accounting and finance roles with publicly listed companies for 14 years
Rodrigo Gallardo Country Manager MexicoCorporate lawyer and business executive He was vital in the success of a number of Mexican start-up business ventures
Diego Chiguachi Colombia Chief Agronomist amp BreederAgro-engineer specialized in genetics Managed agricultural projects for the United Nations and for indigenous communities
Emisel Fonseca Food ScientistA food scientist and biotechnology engineer Is the head of a Mexican cosmetics and dietary supplements manufacturing company
Todd Dalotto President mdash FULL BIO
Mr Dalotto is a horticultural scientist public policy consultant and court-qualified expert witness specializing in cannabis He breeds and conducts horticultural research and consults businesses on the horticultural science and public policy of cannabis His research objectives over the past twenty years include breeding of in-bred lines morphology sustainable practices semi-passive greenhouse production and mutualisms Todd has a horticultural research degree with emphasis on sustainable agriculture and plant breeding from Oregon State University is former Chair of the Oregon Health Authorityrsquos Advisory Committee on Medical Marijuana (ACMM) as well as the ACMMrsquos Horticulture Research amp Safety Committee has served on various legislative and rules advisory committees for the State of Oregon and helped draft the regulations for Oregonrsquos Medical Marijuana Dispensary Program and he founded Oregonrsquos first cannabis medical clinic education amp support center
19
Our Team
As at May 1 2020
Shares Outstanding 100499318Stock Options nilWarrants nil
Debt nil
20
Our Capital Structure
xebrabrandscom
We Have Filed the Equivalent of 414 Trademark Applications for Our Brands in 46 Countries
Our genetic seed library includes 144 cannabis cultivars amp breeding lines
CANNABISLegalized
in about 30 countries
CANNABISDecriminalized in an additional
20 countries
GLOBAL
US$1039Billion
NORTH AMERICA
US$473Billion
EUROPE
US$391Billion
LATAM amp CARIBBEAN
US$91Billion
Market Projections for 2024
High THC bull High CBD bull Balanced THCCBD bull High CBG
Clear and Flavorless bull Shelf Stable bull Scalable bull Highly BioavailableWe have licensed intellectual property to render cannabis water soluble
Source Prohibition Partners 4
We have applied for authorizations to manufacture and sell our Elements CBD wellness products
bull CBD Warming Spray
bull CBD Cooling Spray
bull CBD Massage Oil
bull CBD Edible Body Cream
bull CBD Lip Balm
bull CBD Roll-on Cream
bull CBD Intimate Lubricant
bull CBD Talc
bull CBD Capsules
bull CBD Tinctures
bull CBD Balm
bull CBD Cream
5
Our CBD Wellness Brand
We have created a number of great tasting cannabis infused beverages including soft drinks iced teas lemonade and waters Energy drinks and a CBD sports beverage are under development
Itrsquos High Timetrade Protecttrade Lemonade for RenegadestradeCrazy Goodtrade Enjoy the Triptrade
HIGH CASTLECOMING SOON
6
Our Beverage Brands
bull Ready-to-drink beverages and packaged beers currently represent US$1 trillion in the global market
bull The US market is greater than US$225 billion while the Canadian market is in excess of US$19 billion
bull According to some estimates the relative market for cannabis infused beverages could be 14 of the overall alcohol beverage market
$37BSPIRITS
2018
$45BCANNABIS
2018
$53BWINE
2018
ldquoConstellation Brandsrsquo US$4 billion investment in cannabis company may signal industry shakeuprdquo
ldquoCannabis stocks jump after reports that Diageo is in talks with three pot producersrdquo
ldquoAnheuser-Busch InBev partners with cannabis companyrdquo
ldquoMolson Coors enters into joint venture to develop cannabis infused beveragesrdquo
Notable News
Source Eight Capital
Figures in US$
Canadian Market
7
The Cannabis Beverage Market
bull Optimal Growing Conditions bull Established Agricultural Industry bull Free Trade Advantages bull Stable Governmentsbull Low Cost Skilled Laborbull Low Cost Cultivation
8
The Latin American Cultivation Advantage
Figures in US$ Projected financial information actual results may differ
CAPEX per FT2
$513 $205 $96 $10 ndash $15 $5 ndash $10
CanadianIndoor
United StatesIndoor
CanadianGreenhouse
Latin AmericanHoop-House
Latin AmericanOutdoor
Cost per Gram of Dry Flower$050 ndash $230 $005 ndash $020
United States amp Canada
Latin America
1 ounce = 2835 grams1 m2 = 1076 ft2
9
Our Low Cost Cultivation Strategy
We will grow cannabis in low cost countries in open-fields for CBD and in inexpensive hoop-houses for THC
Our 3000 ft2 (~278m2) THC hoop-houses are low cost semi-passive greenhouses designed to minimize expensive energy use by maximizing natural energy utilization We employ natural systems to further reduce production costs
HOOP-HOUSE GREENHOUSE
CONVENTIONAL GREENHOUSE
LIGHTING Sun Electrical
HEATING amp COOLING Sun Convection Airflow Electrical Fossil Fuels
VENTILATION Fans Wind Forced Air
PEST amp DISEASE CONTROL Insects Biocontrols Pesticides Fungicides
FERTILIZERS Optimized by Microbes Expensive Products
SOIL Native Soil (re-use) Soil-less Media (limited re-use)
FRONT SIDE
10
Our Hoop-Houses
XEBRArsquos business plan evaluated three capital expenditure scenarios low medium and high The above figures assume the ldquohighrdquo scenario
Projected Initial Capital Expenditures US$
Hoop-houses ~1 hectare $1285000
Processing Equipment (not a recurring cost) 950000
Total Initial Capital Expenditures (1st Hectare) $2235000
Projected Capital Expenditures per Additional Hectare $1285000
Projected Initial Capital Expenditures US$
Building Machinery amp Equipment ~1 hectare $25000
Processing Equipment (not a recurring cost) 950000
Total Initial Capital Expenditures (1st Hectare) $975000
Projected Capital Expenditures per Additional Hectare $ insignificant
Hoop-house Cultivation and Processingto a Refined THC Extract
Outdoor Cultivation and Processingto a Refined CBD Extract
11
Latin American Cultivation CAPEX
Canopy Growth$61B
1048672 Chile1048675 Colombia1048672 Mexico1048672 Uruguay
Aphria$10B
1048672 Chile1048675 Colombia1048672 Mexico1048672 Uruguay
Organigram$297M
1048672 Chile1048672 Colombia1048672 Mexico1048672 Uruguay
Cronos$23B
1048672 Chile1048675 Colombia1048672 Mexico1048672 Uruguay
Tilray$926M
1048675 Chile1048672 Colombia1048672 Mexico1048672 Uruguay
Aurora$10B
1048672 Chile1048672 Colombia1048672 Mexico1048675 Uruguay
Hexo$187M
1048672 Chile1048672 Colombia1048672 Mexico1048672 Uruguay
The Green Organic Dutchman$63M
1048672 Chile1048672 Colombia1048672 Mexico1048672 Uruguay
Medicine Man$78M
1048672 Chile1048672 Colombia1048672 Mexico1048672 Uruguay
Auxly$198M
1048672 Chile1048672 Colombia1048672 Mexico1048675 Uruguay
Cannabis cultivators will introduce low cost Latin American operations in order to ensure their long-term survival
Curaleaf$23B
1048672 Chile1048672 Colombia1048672 Mexico1048672 Uruguay
Cresco Labs$891M
1048672 Chile1048672 Colombia1048672 Mexico1048672 Uruguay
Market Capitalization in $US as at April 27 2020
12
Lack of Low Cost Cultivation of Major Cannabis Companies
Our breeding facilities will be located in Guasca and our 14
hectare cultivation property will be located in Zipaquiraacute mdash the sites
are 1 to 15 hours from Bogota international airport
13
Cannabis Regulations in Colombia
We hold licenses to cultivateand process cannabis in Colombia
bull Colombia legalized the use and production of medical cannabis in 2016
bull The UN awarded Colombia 21 of global THC cannabis production for 2020
bull Large-scale commercial production commenced in 2020
All progress on cannabis legalization in Mexico has been made via Supreme Court constitutional challenges
Supreme Court grants the first constitutional injunction in favor of 5
individuals enabling them to possess cannabis for personal consumption
Legal framework for medical cannabis products
Supreme Court declares cannabis prohibition unconstitutional and
orders Congress to reform
Following grant of another constitutional injunction Supreme
Court orders drafting of comprehensive regulations for medical cannabis
Anticipated grant of constitutional
injunction to Xebra
Deadline for draft of cannabis legal
framework
2014NOVEMBER
2017JUNE
2019FEBRUARY
2019AUGUST
2020OCTOBER
2020DECEMBER
14
Cannabis Regulations in Mexico
bull FACT As agricultural products ldquocommoditizerdquo industrial-scale farming shifts to countries with low-cost land and labor
bull FACT The NAFTA free trade agreement (now called USMCA) was devastating to Canadian and US agricultural production
bull FACT The cut-flower industry for example has been decimated post-NAFTA ~85 of cut-flowers in Canada and the US are now imported (ironically Californiarsquos cut-flower greenhouses were occupied by cannabis growers)
bull Some argue that the Canadian and US governments will protect cannabis growers but is it really different this time No There are no exemptions or carve-outs under USMCA for cannabis
bull Because of the US 2018 Farm Bill after Mexico legalizes (expected December 2020) the majority of CBD derived from hemp will be imported from Mexico
bull ldquoWhenrdquo not ldquoifrdquo the US removes THC as a Schedule 1 drug the majority of industrial-scale cannabis derivatives (THC CBD CBG etc) will be imported from Mexico
15
Impact of Mexican Legalization on the US and Canada
Mexican tobacco law prohibits the sale of vaping products
However three companies have previously been granted legal interpretations by Mexican authorities (the Mexican FDA)
to import and commercialize vaping devices as long as the hardware and the juice are sold separately They are
Philip Morris British American Tobacco andhellip Xebra
16
Cannabis Vaping First Mover in Mexico
Our Cannabis Business Model
Latin American Sales and for
Export
Production of Cannabis
Beverages and other Products
Cultivate and process Cannabis in
Colombia and Mexico
17
Q2 2020Complete all brand and formulation development
Q3 2021Sales of CBD products
Q3 2020Complete all trademark applications covering 46 countries
Q4 2021Sales from first harvests
Q1 2021Sales of vaping products
Q4 2021Sales of beverages
Q2 2021Initiate cultivation
18
Dates and objectives are plans only actual results may vary
Our Projected Path to Revenue
Todd Dalotto PresidentHorticultural scientist and cannabis breeder Was instrumental in the drafting of Oregonrsquos medical marijuana legislation
Robert Giustra ChairmanActively engaged in venture capital and in founding funding and listing publicly traded companies for 28 years
Jordi Chemonte DirectorFounded several successful enterprises in Mexico Former CEO of Elements Bioscience a first-mover in Mexican cannabis
Jorge Martiacutenez COOOver 25 years of experience in venture capital Specialized in operational and management efficiencies
Andrew Yau CFOHas been in accounting and finance roles with publicly listed companies for 14 years
Rodrigo Gallardo Country Manager MexicoCorporate lawyer and business executive He was vital in the success of a number of Mexican start-up business ventures
Diego Chiguachi Colombia Chief Agronomist amp BreederAgro-engineer specialized in genetics Managed agricultural projects for the United Nations and for indigenous communities
Emisel Fonseca Food ScientistA food scientist and biotechnology engineer Is the head of a Mexican cosmetics and dietary supplements manufacturing company
Todd Dalotto President mdash FULL BIO
Mr Dalotto is a horticultural scientist public policy consultant and court-qualified expert witness specializing in cannabis He breeds and conducts horticultural research and consults businesses on the horticultural science and public policy of cannabis His research objectives over the past twenty years include breeding of in-bred lines morphology sustainable practices semi-passive greenhouse production and mutualisms Todd has a horticultural research degree with emphasis on sustainable agriculture and plant breeding from Oregon State University is former Chair of the Oregon Health Authorityrsquos Advisory Committee on Medical Marijuana (ACMM) as well as the ACMMrsquos Horticulture Research amp Safety Committee has served on various legislative and rules advisory committees for the State of Oregon and helped draft the regulations for Oregonrsquos Medical Marijuana Dispensary Program and he founded Oregonrsquos first cannabis medical clinic education amp support center
19
Our Team
As at May 1 2020
Shares Outstanding 100499318Stock Options nilWarrants nil
Debt nil
20
Our Capital Structure
xebrabrandscom
We have applied for authorizations to manufacture and sell our Elements CBD wellness products
bull CBD Warming Spray
bull CBD Cooling Spray
bull CBD Massage Oil
bull CBD Edible Body Cream
bull CBD Lip Balm
bull CBD Roll-on Cream
bull CBD Intimate Lubricant
bull CBD Talc
bull CBD Capsules
bull CBD Tinctures
bull CBD Balm
bull CBD Cream
5
Our CBD Wellness Brand
We have created a number of great tasting cannabis infused beverages including soft drinks iced teas lemonade and waters Energy drinks and a CBD sports beverage are under development
Itrsquos High Timetrade Protecttrade Lemonade for RenegadestradeCrazy Goodtrade Enjoy the Triptrade
HIGH CASTLECOMING SOON
6
Our Beverage Brands
bull Ready-to-drink beverages and packaged beers currently represent US$1 trillion in the global market
bull The US market is greater than US$225 billion while the Canadian market is in excess of US$19 billion
bull According to some estimates the relative market for cannabis infused beverages could be 14 of the overall alcohol beverage market
$37BSPIRITS
2018
$45BCANNABIS
2018
$53BWINE
2018
ldquoConstellation Brandsrsquo US$4 billion investment in cannabis company may signal industry shakeuprdquo
ldquoCannabis stocks jump after reports that Diageo is in talks with three pot producersrdquo
ldquoAnheuser-Busch InBev partners with cannabis companyrdquo
ldquoMolson Coors enters into joint venture to develop cannabis infused beveragesrdquo
Notable News
Source Eight Capital
Figures in US$
Canadian Market
7
The Cannabis Beverage Market
bull Optimal Growing Conditions bull Established Agricultural Industry bull Free Trade Advantages bull Stable Governmentsbull Low Cost Skilled Laborbull Low Cost Cultivation
8
The Latin American Cultivation Advantage
Figures in US$ Projected financial information actual results may differ
CAPEX per FT2
$513 $205 $96 $10 ndash $15 $5 ndash $10
CanadianIndoor
United StatesIndoor
CanadianGreenhouse
Latin AmericanHoop-House
Latin AmericanOutdoor
Cost per Gram of Dry Flower$050 ndash $230 $005 ndash $020
United States amp Canada
Latin America
1 ounce = 2835 grams1 m2 = 1076 ft2
9
Our Low Cost Cultivation Strategy
We will grow cannabis in low cost countries in open-fields for CBD and in inexpensive hoop-houses for THC
Our 3000 ft2 (~278m2) THC hoop-houses are low cost semi-passive greenhouses designed to minimize expensive energy use by maximizing natural energy utilization We employ natural systems to further reduce production costs
HOOP-HOUSE GREENHOUSE
CONVENTIONAL GREENHOUSE
LIGHTING Sun Electrical
HEATING amp COOLING Sun Convection Airflow Electrical Fossil Fuels
VENTILATION Fans Wind Forced Air
PEST amp DISEASE CONTROL Insects Biocontrols Pesticides Fungicides
FERTILIZERS Optimized by Microbes Expensive Products
SOIL Native Soil (re-use) Soil-less Media (limited re-use)
FRONT SIDE
10
Our Hoop-Houses
XEBRArsquos business plan evaluated three capital expenditure scenarios low medium and high The above figures assume the ldquohighrdquo scenario
Projected Initial Capital Expenditures US$
Hoop-houses ~1 hectare $1285000
Processing Equipment (not a recurring cost) 950000
Total Initial Capital Expenditures (1st Hectare) $2235000
Projected Capital Expenditures per Additional Hectare $1285000
Projected Initial Capital Expenditures US$
Building Machinery amp Equipment ~1 hectare $25000
Processing Equipment (not a recurring cost) 950000
Total Initial Capital Expenditures (1st Hectare) $975000
Projected Capital Expenditures per Additional Hectare $ insignificant
Hoop-house Cultivation and Processingto a Refined THC Extract
Outdoor Cultivation and Processingto a Refined CBD Extract
11
Latin American Cultivation CAPEX
Canopy Growth$61B
1048672 Chile1048675 Colombia1048672 Mexico1048672 Uruguay
Aphria$10B
1048672 Chile1048675 Colombia1048672 Mexico1048672 Uruguay
Organigram$297M
1048672 Chile1048672 Colombia1048672 Mexico1048672 Uruguay
Cronos$23B
1048672 Chile1048675 Colombia1048672 Mexico1048672 Uruguay
Tilray$926M
1048675 Chile1048672 Colombia1048672 Mexico1048672 Uruguay
Aurora$10B
1048672 Chile1048672 Colombia1048672 Mexico1048675 Uruguay
Hexo$187M
1048672 Chile1048672 Colombia1048672 Mexico1048672 Uruguay
The Green Organic Dutchman$63M
1048672 Chile1048672 Colombia1048672 Mexico1048672 Uruguay
Medicine Man$78M
1048672 Chile1048672 Colombia1048672 Mexico1048672 Uruguay
Auxly$198M
1048672 Chile1048672 Colombia1048672 Mexico1048675 Uruguay
Cannabis cultivators will introduce low cost Latin American operations in order to ensure their long-term survival
Curaleaf$23B
1048672 Chile1048672 Colombia1048672 Mexico1048672 Uruguay
Cresco Labs$891M
1048672 Chile1048672 Colombia1048672 Mexico1048672 Uruguay
Market Capitalization in $US as at April 27 2020
12
Lack of Low Cost Cultivation of Major Cannabis Companies
Our breeding facilities will be located in Guasca and our 14
hectare cultivation property will be located in Zipaquiraacute mdash the sites
are 1 to 15 hours from Bogota international airport
13
Cannabis Regulations in Colombia
We hold licenses to cultivateand process cannabis in Colombia
bull Colombia legalized the use and production of medical cannabis in 2016
bull The UN awarded Colombia 21 of global THC cannabis production for 2020
bull Large-scale commercial production commenced in 2020
All progress on cannabis legalization in Mexico has been made via Supreme Court constitutional challenges
Supreme Court grants the first constitutional injunction in favor of 5
individuals enabling them to possess cannabis for personal consumption
Legal framework for medical cannabis products
Supreme Court declares cannabis prohibition unconstitutional and
orders Congress to reform
Following grant of another constitutional injunction Supreme
Court orders drafting of comprehensive regulations for medical cannabis
Anticipated grant of constitutional
injunction to Xebra
Deadline for draft of cannabis legal
framework
2014NOVEMBER
2017JUNE
2019FEBRUARY
2019AUGUST
2020OCTOBER
2020DECEMBER
14
Cannabis Regulations in Mexico
bull FACT As agricultural products ldquocommoditizerdquo industrial-scale farming shifts to countries with low-cost land and labor
bull FACT The NAFTA free trade agreement (now called USMCA) was devastating to Canadian and US agricultural production
bull FACT The cut-flower industry for example has been decimated post-NAFTA ~85 of cut-flowers in Canada and the US are now imported (ironically Californiarsquos cut-flower greenhouses were occupied by cannabis growers)
bull Some argue that the Canadian and US governments will protect cannabis growers but is it really different this time No There are no exemptions or carve-outs under USMCA for cannabis
bull Because of the US 2018 Farm Bill after Mexico legalizes (expected December 2020) the majority of CBD derived from hemp will be imported from Mexico
bull ldquoWhenrdquo not ldquoifrdquo the US removes THC as a Schedule 1 drug the majority of industrial-scale cannabis derivatives (THC CBD CBG etc) will be imported from Mexico
15
Impact of Mexican Legalization on the US and Canada
Mexican tobacco law prohibits the sale of vaping products
However three companies have previously been granted legal interpretations by Mexican authorities (the Mexican FDA)
to import and commercialize vaping devices as long as the hardware and the juice are sold separately They are
Philip Morris British American Tobacco andhellip Xebra
16
Cannabis Vaping First Mover in Mexico
Our Cannabis Business Model
Latin American Sales and for
Export
Production of Cannabis
Beverages and other Products
Cultivate and process Cannabis in
Colombia and Mexico
17
Q2 2020Complete all brand and formulation development
Q3 2021Sales of CBD products
Q3 2020Complete all trademark applications covering 46 countries
Q4 2021Sales from first harvests
Q1 2021Sales of vaping products
Q4 2021Sales of beverages
Q2 2021Initiate cultivation
18
Dates and objectives are plans only actual results may vary
Our Projected Path to Revenue
Todd Dalotto PresidentHorticultural scientist and cannabis breeder Was instrumental in the drafting of Oregonrsquos medical marijuana legislation
Robert Giustra ChairmanActively engaged in venture capital and in founding funding and listing publicly traded companies for 28 years
Jordi Chemonte DirectorFounded several successful enterprises in Mexico Former CEO of Elements Bioscience a first-mover in Mexican cannabis
Jorge Martiacutenez COOOver 25 years of experience in venture capital Specialized in operational and management efficiencies
Andrew Yau CFOHas been in accounting and finance roles with publicly listed companies for 14 years
Rodrigo Gallardo Country Manager MexicoCorporate lawyer and business executive He was vital in the success of a number of Mexican start-up business ventures
Diego Chiguachi Colombia Chief Agronomist amp BreederAgro-engineer specialized in genetics Managed agricultural projects for the United Nations and for indigenous communities
Emisel Fonseca Food ScientistA food scientist and biotechnology engineer Is the head of a Mexican cosmetics and dietary supplements manufacturing company
Todd Dalotto President mdash FULL BIO
Mr Dalotto is a horticultural scientist public policy consultant and court-qualified expert witness specializing in cannabis He breeds and conducts horticultural research and consults businesses on the horticultural science and public policy of cannabis His research objectives over the past twenty years include breeding of in-bred lines morphology sustainable practices semi-passive greenhouse production and mutualisms Todd has a horticultural research degree with emphasis on sustainable agriculture and plant breeding from Oregon State University is former Chair of the Oregon Health Authorityrsquos Advisory Committee on Medical Marijuana (ACMM) as well as the ACMMrsquos Horticulture Research amp Safety Committee has served on various legislative and rules advisory committees for the State of Oregon and helped draft the regulations for Oregonrsquos Medical Marijuana Dispensary Program and he founded Oregonrsquos first cannabis medical clinic education amp support center
19
Our Team
As at May 1 2020
Shares Outstanding 100499318Stock Options nilWarrants nil
Debt nil
20
Our Capital Structure
xebrabrandscom
We have created a number of great tasting cannabis infused beverages including soft drinks iced teas lemonade and waters Energy drinks and a CBD sports beverage are under development
Itrsquos High Timetrade Protecttrade Lemonade for RenegadestradeCrazy Goodtrade Enjoy the Triptrade
HIGH CASTLECOMING SOON
6
Our Beverage Brands
bull Ready-to-drink beverages and packaged beers currently represent US$1 trillion in the global market
bull The US market is greater than US$225 billion while the Canadian market is in excess of US$19 billion
bull According to some estimates the relative market for cannabis infused beverages could be 14 of the overall alcohol beverage market
$37BSPIRITS
2018
$45BCANNABIS
2018
$53BWINE
2018
ldquoConstellation Brandsrsquo US$4 billion investment in cannabis company may signal industry shakeuprdquo
ldquoCannabis stocks jump after reports that Diageo is in talks with three pot producersrdquo
ldquoAnheuser-Busch InBev partners with cannabis companyrdquo
ldquoMolson Coors enters into joint venture to develop cannabis infused beveragesrdquo
Notable News
Source Eight Capital
Figures in US$
Canadian Market
7
The Cannabis Beverage Market
bull Optimal Growing Conditions bull Established Agricultural Industry bull Free Trade Advantages bull Stable Governmentsbull Low Cost Skilled Laborbull Low Cost Cultivation
8
The Latin American Cultivation Advantage
Figures in US$ Projected financial information actual results may differ
CAPEX per FT2
$513 $205 $96 $10 ndash $15 $5 ndash $10
CanadianIndoor
United StatesIndoor
CanadianGreenhouse
Latin AmericanHoop-House
Latin AmericanOutdoor
Cost per Gram of Dry Flower$050 ndash $230 $005 ndash $020
United States amp Canada
Latin America
1 ounce = 2835 grams1 m2 = 1076 ft2
9
Our Low Cost Cultivation Strategy
We will grow cannabis in low cost countries in open-fields for CBD and in inexpensive hoop-houses for THC
Our 3000 ft2 (~278m2) THC hoop-houses are low cost semi-passive greenhouses designed to minimize expensive energy use by maximizing natural energy utilization We employ natural systems to further reduce production costs
HOOP-HOUSE GREENHOUSE
CONVENTIONAL GREENHOUSE
LIGHTING Sun Electrical
HEATING amp COOLING Sun Convection Airflow Electrical Fossil Fuels
VENTILATION Fans Wind Forced Air
PEST amp DISEASE CONTROL Insects Biocontrols Pesticides Fungicides
FERTILIZERS Optimized by Microbes Expensive Products
SOIL Native Soil (re-use) Soil-less Media (limited re-use)
FRONT SIDE
10
Our Hoop-Houses
XEBRArsquos business plan evaluated three capital expenditure scenarios low medium and high The above figures assume the ldquohighrdquo scenario
Projected Initial Capital Expenditures US$
Hoop-houses ~1 hectare $1285000
Processing Equipment (not a recurring cost) 950000
Total Initial Capital Expenditures (1st Hectare) $2235000
Projected Capital Expenditures per Additional Hectare $1285000
Projected Initial Capital Expenditures US$
Building Machinery amp Equipment ~1 hectare $25000
Processing Equipment (not a recurring cost) 950000
Total Initial Capital Expenditures (1st Hectare) $975000
Projected Capital Expenditures per Additional Hectare $ insignificant
Hoop-house Cultivation and Processingto a Refined THC Extract
Outdoor Cultivation and Processingto a Refined CBD Extract
11
Latin American Cultivation CAPEX
Canopy Growth$61B
1048672 Chile1048675 Colombia1048672 Mexico1048672 Uruguay
Aphria$10B
1048672 Chile1048675 Colombia1048672 Mexico1048672 Uruguay
Organigram$297M
1048672 Chile1048672 Colombia1048672 Mexico1048672 Uruguay
Cronos$23B
1048672 Chile1048675 Colombia1048672 Mexico1048672 Uruguay
Tilray$926M
1048675 Chile1048672 Colombia1048672 Mexico1048672 Uruguay
Aurora$10B
1048672 Chile1048672 Colombia1048672 Mexico1048675 Uruguay
Hexo$187M
1048672 Chile1048672 Colombia1048672 Mexico1048672 Uruguay
The Green Organic Dutchman$63M
1048672 Chile1048672 Colombia1048672 Mexico1048672 Uruguay
Medicine Man$78M
1048672 Chile1048672 Colombia1048672 Mexico1048672 Uruguay
Auxly$198M
1048672 Chile1048672 Colombia1048672 Mexico1048675 Uruguay
Cannabis cultivators will introduce low cost Latin American operations in order to ensure their long-term survival
Curaleaf$23B
1048672 Chile1048672 Colombia1048672 Mexico1048672 Uruguay
Cresco Labs$891M
1048672 Chile1048672 Colombia1048672 Mexico1048672 Uruguay
Market Capitalization in $US as at April 27 2020
12
Lack of Low Cost Cultivation of Major Cannabis Companies
Our breeding facilities will be located in Guasca and our 14
hectare cultivation property will be located in Zipaquiraacute mdash the sites
are 1 to 15 hours from Bogota international airport
13
Cannabis Regulations in Colombia
We hold licenses to cultivateand process cannabis in Colombia
bull Colombia legalized the use and production of medical cannabis in 2016
bull The UN awarded Colombia 21 of global THC cannabis production for 2020
bull Large-scale commercial production commenced in 2020
All progress on cannabis legalization in Mexico has been made via Supreme Court constitutional challenges
Supreme Court grants the first constitutional injunction in favor of 5
individuals enabling them to possess cannabis for personal consumption
Legal framework for medical cannabis products
Supreme Court declares cannabis prohibition unconstitutional and
orders Congress to reform
Following grant of another constitutional injunction Supreme
Court orders drafting of comprehensive regulations for medical cannabis
Anticipated grant of constitutional
injunction to Xebra
Deadline for draft of cannabis legal
framework
2014NOVEMBER
2017JUNE
2019FEBRUARY
2019AUGUST
2020OCTOBER
2020DECEMBER
14
Cannabis Regulations in Mexico
bull FACT As agricultural products ldquocommoditizerdquo industrial-scale farming shifts to countries with low-cost land and labor
bull FACT The NAFTA free trade agreement (now called USMCA) was devastating to Canadian and US agricultural production
bull FACT The cut-flower industry for example has been decimated post-NAFTA ~85 of cut-flowers in Canada and the US are now imported (ironically Californiarsquos cut-flower greenhouses were occupied by cannabis growers)
bull Some argue that the Canadian and US governments will protect cannabis growers but is it really different this time No There are no exemptions or carve-outs under USMCA for cannabis
bull Because of the US 2018 Farm Bill after Mexico legalizes (expected December 2020) the majority of CBD derived from hemp will be imported from Mexico
bull ldquoWhenrdquo not ldquoifrdquo the US removes THC as a Schedule 1 drug the majority of industrial-scale cannabis derivatives (THC CBD CBG etc) will be imported from Mexico
15
Impact of Mexican Legalization on the US and Canada
Mexican tobacco law prohibits the sale of vaping products
However three companies have previously been granted legal interpretations by Mexican authorities (the Mexican FDA)
to import and commercialize vaping devices as long as the hardware and the juice are sold separately They are
Philip Morris British American Tobacco andhellip Xebra
16
Cannabis Vaping First Mover in Mexico
Our Cannabis Business Model
Latin American Sales and for
Export
Production of Cannabis
Beverages and other Products
Cultivate and process Cannabis in
Colombia and Mexico
17
Q2 2020Complete all brand and formulation development
Q3 2021Sales of CBD products
Q3 2020Complete all trademark applications covering 46 countries
Q4 2021Sales from first harvests
Q1 2021Sales of vaping products
Q4 2021Sales of beverages
Q2 2021Initiate cultivation
18
Dates and objectives are plans only actual results may vary
Our Projected Path to Revenue
Todd Dalotto PresidentHorticultural scientist and cannabis breeder Was instrumental in the drafting of Oregonrsquos medical marijuana legislation
Robert Giustra ChairmanActively engaged in venture capital and in founding funding and listing publicly traded companies for 28 years
Jordi Chemonte DirectorFounded several successful enterprises in Mexico Former CEO of Elements Bioscience a first-mover in Mexican cannabis
Jorge Martiacutenez COOOver 25 years of experience in venture capital Specialized in operational and management efficiencies
Andrew Yau CFOHas been in accounting and finance roles with publicly listed companies for 14 years
Rodrigo Gallardo Country Manager MexicoCorporate lawyer and business executive He was vital in the success of a number of Mexican start-up business ventures
Diego Chiguachi Colombia Chief Agronomist amp BreederAgro-engineer specialized in genetics Managed agricultural projects for the United Nations and for indigenous communities
Emisel Fonseca Food ScientistA food scientist and biotechnology engineer Is the head of a Mexican cosmetics and dietary supplements manufacturing company
Todd Dalotto President mdash FULL BIO
Mr Dalotto is a horticultural scientist public policy consultant and court-qualified expert witness specializing in cannabis He breeds and conducts horticultural research and consults businesses on the horticultural science and public policy of cannabis His research objectives over the past twenty years include breeding of in-bred lines morphology sustainable practices semi-passive greenhouse production and mutualisms Todd has a horticultural research degree with emphasis on sustainable agriculture and plant breeding from Oregon State University is former Chair of the Oregon Health Authorityrsquos Advisory Committee on Medical Marijuana (ACMM) as well as the ACMMrsquos Horticulture Research amp Safety Committee has served on various legislative and rules advisory committees for the State of Oregon and helped draft the regulations for Oregonrsquos Medical Marijuana Dispensary Program and he founded Oregonrsquos first cannabis medical clinic education amp support center
19
Our Team
As at May 1 2020
Shares Outstanding 100499318Stock Options nilWarrants nil
Debt nil
20
Our Capital Structure
xebrabrandscom
bull Ready-to-drink beverages and packaged beers currently represent US$1 trillion in the global market
bull The US market is greater than US$225 billion while the Canadian market is in excess of US$19 billion
bull According to some estimates the relative market for cannabis infused beverages could be 14 of the overall alcohol beverage market
$37BSPIRITS
2018
$45BCANNABIS
2018
$53BWINE
2018
ldquoConstellation Brandsrsquo US$4 billion investment in cannabis company may signal industry shakeuprdquo
ldquoCannabis stocks jump after reports that Diageo is in talks with three pot producersrdquo
ldquoAnheuser-Busch InBev partners with cannabis companyrdquo
ldquoMolson Coors enters into joint venture to develop cannabis infused beveragesrdquo
Notable News
Source Eight Capital
Figures in US$
Canadian Market
7
The Cannabis Beverage Market
bull Optimal Growing Conditions bull Established Agricultural Industry bull Free Trade Advantages bull Stable Governmentsbull Low Cost Skilled Laborbull Low Cost Cultivation
8
The Latin American Cultivation Advantage
Figures in US$ Projected financial information actual results may differ
CAPEX per FT2
$513 $205 $96 $10 ndash $15 $5 ndash $10
CanadianIndoor
United StatesIndoor
CanadianGreenhouse
Latin AmericanHoop-House
Latin AmericanOutdoor
Cost per Gram of Dry Flower$050 ndash $230 $005 ndash $020
United States amp Canada
Latin America
1 ounce = 2835 grams1 m2 = 1076 ft2
9
Our Low Cost Cultivation Strategy
We will grow cannabis in low cost countries in open-fields for CBD and in inexpensive hoop-houses for THC
Our 3000 ft2 (~278m2) THC hoop-houses are low cost semi-passive greenhouses designed to minimize expensive energy use by maximizing natural energy utilization We employ natural systems to further reduce production costs
HOOP-HOUSE GREENHOUSE
CONVENTIONAL GREENHOUSE
LIGHTING Sun Electrical
HEATING amp COOLING Sun Convection Airflow Electrical Fossil Fuels
VENTILATION Fans Wind Forced Air
PEST amp DISEASE CONTROL Insects Biocontrols Pesticides Fungicides
FERTILIZERS Optimized by Microbes Expensive Products
SOIL Native Soil (re-use) Soil-less Media (limited re-use)
FRONT SIDE
10
Our Hoop-Houses
XEBRArsquos business plan evaluated three capital expenditure scenarios low medium and high The above figures assume the ldquohighrdquo scenario
Projected Initial Capital Expenditures US$
Hoop-houses ~1 hectare $1285000
Processing Equipment (not a recurring cost) 950000
Total Initial Capital Expenditures (1st Hectare) $2235000
Projected Capital Expenditures per Additional Hectare $1285000
Projected Initial Capital Expenditures US$
Building Machinery amp Equipment ~1 hectare $25000
Processing Equipment (not a recurring cost) 950000
Total Initial Capital Expenditures (1st Hectare) $975000
Projected Capital Expenditures per Additional Hectare $ insignificant
Hoop-house Cultivation and Processingto a Refined THC Extract
Outdoor Cultivation and Processingto a Refined CBD Extract
11
Latin American Cultivation CAPEX
Canopy Growth$61B
1048672 Chile1048675 Colombia1048672 Mexico1048672 Uruguay
Aphria$10B
1048672 Chile1048675 Colombia1048672 Mexico1048672 Uruguay
Organigram$297M
1048672 Chile1048672 Colombia1048672 Mexico1048672 Uruguay
Cronos$23B
1048672 Chile1048675 Colombia1048672 Mexico1048672 Uruguay
Tilray$926M
1048675 Chile1048672 Colombia1048672 Mexico1048672 Uruguay
Aurora$10B
1048672 Chile1048672 Colombia1048672 Mexico1048675 Uruguay
Hexo$187M
1048672 Chile1048672 Colombia1048672 Mexico1048672 Uruguay
The Green Organic Dutchman$63M
1048672 Chile1048672 Colombia1048672 Mexico1048672 Uruguay
Medicine Man$78M
1048672 Chile1048672 Colombia1048672 Mexico1048672 Uruguay
Auxly$198M
1048672 Chile1048672 Colombia1048672 Mexico1048675 Uruguay
Cannabis cultivators will introduce low cost Latin American operations in order to ensure their long-term survival
Curaleaf$23B
1048672 Chile1048672 Colombia1048672 Mexico1048672 Uruguay
Cresco Labs$891M
1048672 Chile1048672 Colombia1048672 Mexico1048672 Uruguay
Market Capitalization in $US as at April 27 2020
12
Lack of Low Cost Cultivation of Major Cannabis Companies
Our breeding facilities will be located in Guasca and our 14
hectare cultivation property will be located in Zipaquiraacute mdash the sites
are 1 to 15 hours from Bogota international airport
13
Cannabis Regulations in Colombia
We hold licenses to cultivateand process cannabis in Colombia
bull Colombia legalized the use and production of medical cannabis in 2016
bull The UN awarded Colombia 21 of global THC cannabis production for 2020
bull Large-scale commercial production commenced in 2020
All progress on cannabis legalization in Mexico has been made via Supreme Court constitutional challenges
Supreme Court grants the first constitutional injunction in favor of 5
individuals enabling them to possess cannabis for personal consumption
Legal framework for medical cannabis products
Supreme Court declares cannabis prohibition unconstitutional and
orders Congress to reform
Following grant of another constitutional injunction Supreme
Court orders drafting of comprehensive regulations for medical cannabis
Anticipated grant of constitutional
injunction to Xebra
Deadline for draft of cannabis legal
framework
2014NOVEMBER
2017JUNE
2019FEBRUARY
2019AUGUST
2020OCTOBER
2020DECEMBER
14
Cannabis Regulations in Mexico
bull FACT As agricultural products ldquocommoditizerdquo industrial-scale farming shifts to countries with low-cost land and labor
bull FACT The NAFTA free trade agreement (now called USMCA) was devastating to Canadian and US agricultural production
bull FACT The cut-flower industry for example has been decimated post-NAFTA ~85 of cut-flowers in Canada and the US are now imported (ironically Californiarsquos cut-flower greenhouses were occupied by cannabis growers)
bull Some argue that the Canadian and US governments will protect cannabis growers but is it really different this time No There are no exemptions or carve-outs under USMCA for cannabis
bull Because of the US 2018 Farm Bill after Mexico legalizes (expected December 2020) the majority of CBD derived from hemp will be imported from Mexico
bull ldquoWhenrdquo not ldquoifrdquo the US removes THC as a Schedule 1 drug the majority of industrial-scale cannabis derivatives (THC CBD CBG etc) will be imported from Mexico
15
Impact of Mexican Legalization on the US and Canada
Mexican tobacco law prohibits the sale of vaping products
However three companies have previously been granted legal interpretations by Mexican authorities (the Mexican FDA)
to import and commercialize vaping devices as long as the hardware and the juice are sold separately They are
Philip Morris British American Tobacco andhellip Xebra
16
Cannabis Vaping First Mover in Mexico
Our Cannabis Business Model
Latin American Sales and for
Export
Production of Cannabis
Beverages and other Products
Cultivate and process Cannabis in
Colombia and Mexico
17
Q2 2020Complete all brand and formulation development
Q3 2021Sales of CBD products
Q3 2020Complete all trademark applications covering 46 countries
Q4 2021Sales from first harvests
Q1 2021Sales of vaping products
Q4 2021Sales of beverages
Q2 2021Initiate cultivation
18
Dates and objectives are plans only actual results may vary
Our Projected Path to Revenue
Todd Dalotto PresidentHorticultural scientist and cannabis breeder Was instrumental in the drafting of Oregonrsquos medical marijuana legislation
Robert Giustra ChairmanActively engaged in venture capital and in founding funding and listing publicly traded companies for 28 years
Jordi Chemonte DirectorFounded several successful enterprises in Mexico Former CEO of Elements Bioscience a first-mover in Mexican cannabis
Jorge Martiacutenez COOOver 25 years of experience in venture capital Specialized in operational and management efficiencies
Andrew Yau CFOHas been in accounting and finance roles with publicly listed companies for 14 years
Rodrigo Gallardo Country Manager MexicoCorporate lawyer and business executive He was vital in the success of a number of Mexican start-up business ventures
Diego Chiguachi Colombia Chief Agronomist amp BreederAgro-engineer specialized in genetics Managed agricultural projects for the United Nations and for indigenous communities
Emisel Fonseca Food ScientistA food scientist and biotechnology engineer Is the head of a Mexican cosmetics and dietary supplements manufacturing company
Todd Dalotto President mdash FULL BIO
Mr Dalotto is a horticultural scientist public policy consultant and court-qualified expert witness specializing in cannabis He breeds and conducts horticultural research and consults businesses on the horticultural science and public policy of cannabis His research objectives over the past twenty years include breeding of in-bred lines morphology sustainable practices semi-passive greenhouse production and mutualisms Todd has a horticultural research degree with emphasis on sustainable agriculture and plant breeding from Oregon State University is former Chair of the Oregon Health Authorityrsquos Advisory Committee on Medical Marijuana (ACMM) as well as the ACMMrsquos Horticulture Research amp Safety Committee has served on various legislative and rules advisory committees for the State of Oregon and helped draft the regulations for Oregonrsquos Medical Marijuana Dispensary Program and he founded Oregonrsquos first cannabis medical clinic education amp support center
19
Our Team
As at May 1 2020
Shares Outstanding 100499318Stock Options nilWarrants nil
Debt nil
20
Our Capital Structure
xebrabrandscom
bull Optimal Growing Conditions bull Established Agricultural Industry bull Free Trade Advantages bull Stable Governmentsbull Low Cost Skilled Laborbull Low Cost Cultivation
8
The Latin American Cultivation Advantage
Figures in US$ Projected financial information actual results may differ
CAPEX per FT2
$513 $205 $96 $10 ndash $15 $5 ndash $10
CanadianIndoor
United StatesIndoor
CanadianGreenhouse
Latin AmericanHoop-House
Latin AmericanOutdoor
Cost per Gram of Dry Flower$050 ndash $230 $005 ndash $020
United States amp Canada
Latin America
1 ounce = 2835 grams1 m2 = 1076 ft2
9
Our Low Cost Cultivation Strategy
We will grow cannabis in low cost countries in open-fields for CBD and in inexpensive hoop-houses for THC
Our 3000 ft2 (~278m2) THC hoop-houses are low cost semi-passive greenhouses designed to minimize expensive energy use by maximizing natural energy utilization We employ natural systems to further reduce production costs
HOOP-HOUSE GREENHOUSE
CONVENTIONAL GREENHOUSE
LIGHTING Sun Electrical
HEATING amp COOLING Sun Convection Airflow Electrical Fossil Fuels
VENTILATION Fans Wind Forced Air
PEST amp DISEASE CONTROL Insects Biocontrols Pesticides Fungicides
FERTILIZERS Optimized by Microbes Expensive Products
SOIL Native Soil (re-use) Soil-less Media (limited re-use)
FRONT SIDE
10
Our Hoop-Houses
XEBRArsquos business plan evaluated three capital expenditure scenarios low medium and high The above figures assume the ldquohighrdquo scenario
Projected Initial Capital Expenditures US$
Hoop-houses ~1 hectare $1285000
Processing Equipment (not a recurring cost) 950000
Total Initial Capital Expenditures (1st Hectare) $2235000
Projected Capital Expenditures per Additional Hectare $1285000
Projected Initial Capital Expenditures US$
Building Machinery amp Equipment ~1 hectare $25000
Processing Equipment (not a recurring cost) 950000
Total Initial Capital Expenditures (1st Hectare) $975000
Projected Capital Expenditures per Additional Hectare $ insignificant
Hoop-house Cultivation and Processingto a Refined THC Extract
Outdoor Cultivation and Processingto a Refined CBD Extract
11
Latin American Cultivation CAPEX
Canopy Growth$61B
1048672 Chile1048675 Colombia1048672 Mexico1048672 Uruguay
Aphria$10B
1048672 Chile1048675 Colombia1048672 Mexico1048672 Uruguay
Organigram$297M
1048672 Chile1048672 Colombia1048672 Mexico1048672 Uruguay
Cronos$23B
1048672 Chile1048675 Colombia1048672 Mexico1048672 Uruguay
Tilray$926M
1048675 Chile1048672 Colombia1048672 Mexico1048672 Uruguay
Aurora$10B
1048672 Chile1048672 Colombia1048672 Mexico1048675 Uruguay
Hexo$187M
1048672 Chile1048672 Colombia1048672 Mexico1048672 Uruguay
The Green Organic Dutchman$63M
1048672 Chile1048672 Colombia1048672 Mexico1048672 Uruguay
Medicine Man$78M
1048672 Chile1048672 Colombia1048672 Mexico1048672 Uruguay
Auxly$198M
1048672 Chile1048672 Colombia1048672 Mexico1048675 Uruguay
Cannabis cultivators will introduce low cost Latin American operations in order to ensure their long-term survival
Curaleaf$23B
1048672 Chile1048672 Colombia1048672 Mexico1048672 Uruguay
Cresco Labs$891M
1048672 Chile1048672 Colombia1048672 Mexico1048672 Uruguay
Market Capitalization in $US as at April 27 2020
12
Lack of Low Cost Cultivation of Major Cannabis Companies
Our breeding facilities will be located in Guasca and our 14
hectare cultivation property will be located in Zipaquiraacute mdash the sites
are 1 to 15 hours from Bogota international airport
13
Cannabis Regulations in Colombia
We hold licenses to cultivateand process cannabis in Colombia
bull Colombia legalized the use and production of medical cannabis in 2016
bull The UN awarded Colombia 21 of global THC cannabis production for 2020
bull Large-scale commercial production commenced in 2020
All progress on cannabis legalization in Mexico has been made via Supreme Court constitutional challenges
Supreme Court grants the first constitutional injunction in favor of 5
individuals enabling them to possess cannabis for personal consumption
Legal framework for medical cannabis products
Supreme Court declares cannabis prohibition unconstitutional and
orders Congress to reform
Following grant of another constitutional injunction Supreme
Court orders drafting of comprehensive regulations for medical cannabis
Anticipated grant of constitutional
injunction to Xebra
Deadline for draft of cannabis legal
framework
2014NOVEMBER
2017JUNE
2019FEBRUARY
2019AUGUST
2020OCTOBER
2020DECEMBER
14
Cannabis Regulations in Mexico
bull FACT As agricultural products ldquocommoditizerdquo industrial-scale farming shifts to countries with low-cost land and labor
bull FACT The NAFTA free trade agreement (now called USMCA) was devastating to Canadian and US agricultural production
bull FACT The cut-flower industry for example has been decimated post-NAFTA ~85 of cut-flowers in Canada and the US are now imported (ironically Californiarsquos cut-flower greenhouses were occupied by cannabis growers)
bull Some argue that the Canadian and US governments will protect cannabis growers but is it really different this time No There are no exemptions or carve-outs under USMCA for cannabis
bull Because of the US 2018 Farm Bill after Mexico legalizes (expected December 2020) the majority of CBD derived from hemp will be imported from Mexico
bull ldquoWhenrdquo not ldquoifrdquo the US removes THC as a Schedule 1 drug the majority of industrial-scale cannabis derivatives (THC CBD CBG etc) will be imported from Mexico
15
Impact of Mexican Legalization on the US and Canada
Mexican tobacco law prohibits the sale of vaping products
However three companies have previously been granted legal interpretations by Mexican authorities (the Mexican FDA)
to import and commercialize vaping devices as long as the hardware and the juice are sold separately They are
Philip Morris British American Tobacco andhellip Xebra
16
Cannabis Vaping First Mover in Mexico
Our Cannabis Business Model
Latin American Sales and for
Export
Production of Cannabis
Beverages and other Products
Cultivate and process Cannabis in
Colombia and Mexico
17
Q2 2020Complete all brand and formulation development
Q3 2021Sales of CBD products
Q3 2020Complete all trademark applications covering 46 countries
Q4 2021Sales from first harvests
Q1 2021Sales of vaping products
Q4 2021Sales of beverages
Q2 2021Initiate cultivation
18
Dates and objectives are plans only actual results may vary
Our Projected Path to Revenue
Todd Dalotto PresidentHorticultural scientist and cannabis breeder Was instrumental in the drafting of Oregonrsquos medical marijuana legislation
Robert Giustra ChairmanActively engaged in venture capital and in founding funding and listing publicly traded companies for 28 years
Jordi Chemonte DirectorFounded several successful enterprises in Mexico Former CEO of Elements Bioscience a first-mover in Mexican cannabis
Jorge Martiacutenez COOOver 25 years of experience in venture capital Specialized in operational and management efficiencies
Andrew Yau CFOHas been in accounting and finance roles with publicly listed companies for 14 years
Rodrigo Gallardo Country Manager MexicoCorporate lawyer and business executive He was vital in the success of a number of Mexican start-up business ventures
Diego Chiguachi Colombia Chief Agronomist amp BreederAgro-engineer specialized in genetics Managed agricultural projects for the United Nations and for indigenous communities
Emisel Fonseca Food ScientistA food scientist and biotechnology engineer Is the head of a Mexican cosmetics and dietary supplements manufacturing company
Todd Dalotto President mdash FULL BIO
Mr Dalotto is a horticultural scientist public policy consultant and court-qualified expert witness specializing in cannabis He breeds and conducts horticultural research and consults businesses on the horticultural science and public policy of cannabis His research objectives over the past twenty years include breeding of in-bred lines morphology sustainable practices semi-passive greenhouse production and mutualisms Todd has a horticultural research degree with emphasis on sustainable agriculture and plant breeding from Oregon State University is former Chair of the Oregon Health Authorityrsquos Advisory Committee on Medical Marijuana (ACMM) as well as the ACMMrsquos Horticulture Research amp Safety Committee has served on various legislative and rules advisory committees for the State of Oregon and helped draft the regulations for Oregonrsquos Medical Marijuana Dispensary Program and he founded Oregonrsquos first cannabis medical clinic education amp support center
19
Our Team
As at May 1 2020
Shares Outstanding 100499318Stock Options nilWarrants nil
Debt nil
20
Our Capital Structure
xebrabrandscom
Figures in US$ Projected financial information actual results may differ
CAPEX per FT2
$513 $205 $96 $10 ndash $15 $5 ndash $10
CanadianIndoor
United StatesIndoor
CanadianGreenhouse
Latin AmericanHoop-House
Latin AmericanOutdoor
Cost per Gram of Dry Flower$050 ndash $230 $005 ndash $020
United States amp Canada
Latin America
1 ounce = 2835 grams1 m2 = 1076 ft2
9
Our Low Cost Cultivation Strategy
We will grow cannabis in low cost countries in open-fields for CBD and in inexpensive hoop-houses for THC
Our 3000 ft2 (~278m2) THC hoop-houses are low cost semi-passive greenhouses designed to minimize expensive energy use by maximizing natural energy utilization We employ natural systems to further reduce production costs
HOOP-HOUSE GREENHOUSE
CONVENTIONAL GREENHOUSE
LIGHTING Sun Electrical
HEATING amp COOLING Sun Convection Airflow Electrical Fossil Fuels
VENTILATION Fans Wind Forced Air
PEST amp DISEASE CONTROL Insects Biocontrols Pesticides Fungicides
FERTILIZERS Optimized by Microbes Expensive Products
SOIL Native Soil (re-use) Soil-less Media (limited re-use)
FRONT SIDE
10
Our Hoop-Houses
XEBRArsquos business plan evaluated three capital expenditure scenarios low medium and high The above figures assume the ldquohighrdquo scenario
Projected Initial Capital Expenditures US$
Hoop-houses ~1 hectare $1285000
Processing Equipment (not a recurring cost) 950000
Total Initial Capital Expenditures (1st Hectare) $2235000
Projected Capital Expenditures per Additional Hectare $1285000
Projected Initial Capital Expenditures US$
Building Machinery amp Equipment ~1 hectare $25000
Processing Equipment (not a recurring cost) 950000
Total Initial Capital Expenditures (1st Hectare) $975000
Projected Capital Expenditures per Additional Hectare $ insignificant
Hoop-house Cultivation and Processingto a Refined THC Extract
Outdoor Cultivation and Processingto a Refined CBD Extract
11
Latin American Cultivation CAPEX
Canopy Growth$61B
1048672 Chile1048675 Colombia1048672 Mexico1048672 Uruguay
Aphria$10B
1048672 Chile1048675 Colombia1048672 Mexico1048672 Uruguay
Organigram$297M
1048672 Chile1048672 Colombia1048672 Mexico1048672 Uruguay
Cronos$23B
1048672 Chile1048675 Colombia1048672 Mexico1048672 Uruguay
Tilray$926M
1048675 Chile1048672 Colombia1048672 Mexico1048672 Uruguay
Aurora$10B
1048672 Chile1048672 Colombia1048672 Mexico1048675 Uruguay
Hexo$187M
1048672 Chile1048672 Colombia1048672 Mexico1048672 Uruguay
The Green Organic Dutchman$63M
1048672 Chile1048672 Colombia1048672 Mexico1048672 Uruguay
Medicine Man$78M
1048672 Chile1048672 Colombia1048672 Mexico1048672 Uruguay
Auxly$198M
1048672 Chile1048672 Colombia1048672 Mexico1048675 Uruguay
Cannabis cultivators will introduce low cost Latin American operations in order to ensure their long-term survival
Curaleaf$23B
1048672 Chile1048672 Colombia1048672 Mexico1048672 Uruguay
Cresco Labs$891M
1048672 Chile1048672 Colombia1048672 Mexico1048672 Uruguay
Market Capitalization in $US as at April 27 2020
12
Lack of Low Cost Cultivation of Major Cannabis Companies
Our breeding facilities will be located in Guasca and our 14
hectare cultivation property will be located in Zipaquiraacute mdash the sites
are 1 to 15 hours from Bogota international airport
13
Cannabis Regulations in Colombia
We hold licenses to cultivateand process cannabis in Colombia
bull Colombia legalized the use and production of medical cannabis in 2016
bull The UN awarded Colombia 21 of global THC cannabis production for 2020
bull Large-scale commercial production commenced in 2020
All progress on cannabis legalization in Mexico has been made via Supreme Court constitutional challenges
Supreme Court grants the first constitutional injunction in favor of 5
individuals enabling them to possess cannabis for personal consumption
Legal framework for medical cannabis products
Supreme Court declares cannabis prohibition unconstitutional and
orders Congress to reform
Following grant of another constitutional injunction Supreme
Court orders drafting of comprehensive regulations for medical cannabis
Anticipated grant of constitutional
injunction to Xebra
Deadline for draft of cannabis legal
framework
2014NOVEMBER
2017JUNE
2019FEBRUARY
2019AUGUST
2020OCTOBER
2020DECEMBER
14
Cannabis Regulations in Mexico
bull FACT As agricultural products ldquocommoditizerdquo industrial-scale farming shifts to countries with low-cost land and labor
bull FACT The NAFTA free trade agreement (now called USMCA) was devastating to Canadian and US agricultural production
bull FACT The cut-flower industry for example has been decimated post-NAFTA ~85 of cut-flowers in Canada and the US are now imported (ironically Californiarsquos cut-flower greenhouses were occupied by cannabis growers)
bull Some argue that the Canadian and US governments will protect cannabis growers but is it really different this time No There are no exemptions or carve-outs under USMCA for cannabis
bull Because of the US 2018 Farm Bill after Mexico legalizes (expected December 2020) the majority of CBD derived from hemp will be imported from Mexico
bull ldquoWhenrdquo not ldquoifrdquo the US removes THC as a Schedule 1 drug the majority of industrial-scale cannabis derivatives (THC CBD CBG etc) will be imported from Mexico
15
Impact of Mexican Legalization on the US and Canada
Mexican tobacco law prohibits the sale of vaping products
However three companies have previously been granted legal interpretations by Mexican authorities (the Mexican FDA)
to import and commercialize vaping devices as long as the hardware and the juice are sold separately They are
Philip Morris British American Tobacco andhellip Xebra
16
Cannabis Vaping First Mover in Mexico
Our Cannabis Business Model
Latin American Sales and for
Export
Production of Cannabis
Beverages and other Products
Cultivate and process Cannabis in
Colombia and Mexico
17
Q2 2020Complete all brand and formulation development
Q3 2021Sales of CBD products
Q3 2020Complete all trademark applications covering 46 countries
Q4 2021Sales from first harvests
Q1 2021Sales of vaping products
Q4 2021Sales of beverages
Q2 2021Initiate cultivation
18
Dates and objectives are plans only actual results may vary
Our Projected Path to Revenue
Todd Dalotto PresidentHorticultural scientist and cannabis breeder Was instrumental in the drafting of Oregonrsquos medical marijuana legislation
Robert Giustra ChairmanActively engaged in venture capital and in founding funding and listing publicly traded companies for 28 years
Jordi Chemonte DirectorFounded several successful enterprises in Mexico Former CEO of Elements Bioscience a first-mover in Mexican cannabis
Jorge Martiacutenez COOOver 25 years of experience in venture capital Specialized in operational and management efficiencies
Andrew Yau CFOHas been in accounting and finance roles with publicly listed companies for 14 years
Rodrigo Gallardo Country Manager MexicoCorporate lawyer and business executive He was vital in the success of a number of Mexican start-up business ventures
Diego Chiguachi Colombia Chief Agronomist amp BreederAgro-engineer specialized in genetics Managed agricultural projects for the United Nations and for indigenous communities
Emisel Fonseca Food ScientistA food scientist and biotechnology engineer Is the head of a Mexican cosmetics and dietary supplements manufacturing company
Todd Dalotto President mdash FULL BIO
Mr Dalotto is a horticultural scientist public policy consultant and court-qualified expert witness specializing in cannabis He breeds and conducts horticultural research and consults businesses on the horticultural science and public policy of cannabis His research objectives over the past twenty years include breeding of in-bred lines morphology sustainable practices semi-passive greenhouse production and mutualisms Todd has a horticultural research degree with emphasis on sustainable agriculture and plant breeding from Oregon State University is former Chair of the Oregon Health Authorityrsquos Advisory Committee on Medical Marijuana (ACMM) as well as the ACMMrsquos Horticulture Research amp Safety Committee has served on various legislative and rules advisory committees for the State of Oregon and helped draft the regulations for Oregonrsquos Medical Marijuana Dispensary Program and he founded Oregonrsquos first cannabis medical clinic education amp support center
19
Our Team
As at May 1 2020
Shares Outstanding 100499318Stock Options nilWarrants nil
Debt nil
20
Our Capital Structure
xebrabrandscom
Our 3000 ft2 (~278m2) THC hoop-houses are low cost semi-passive greenhouses designed to minimize expensive energy use by maximizing natural energy utilization We employ natural systems to further reduce production costs
HOOP-HOUSE GREENHOUSE
CONVENTIONAL GREENHOUSE
LIGHTING Sun Electrical
HEATING amp COOLING Sun Convection Airflow Electrical Fossil Fuels
VENTILATION Fans Wind Forced Air
PEST amp DISEASE CONTROL Insects Biocontrols Pesticides Fungicides
FERTILIZERS Optimized by Microbes Expensive Products
SOIL Native Soil (re-use) Soil-less Media (limited re-use)
FRONT SIDE
10
Our Hoop-Houses
XEBRArsquos business plan evaluated three capital expenditure scenarios low medium and high The above figures assume the ldquohighrdquo scenario
Projected Initial Capital Expenditures US$
Hoop-houses ~1 hectare $1285000
Processing Equipment (not a recurring cost) 950000
Total Initial Capital Expenditures (1st Hectare) $2235000
Projected Capital Expenditures per Additional Hectare $1285000
Projected Initial Capital Expenditures US$
Building Machinery amp Equipment ~1 hectare $25000
Processing Equipment (not a recurring cost) 950000
Total Initial Capital Expenditures (1st Hectare) $975000
Projected Capital Expenditures per Additional Hectare $ insignificant
Hoop-house Cultivation and Processingto a Refined THC Extract
Outdoor Cultivation and Processingto a Refined CBD Extract
11
Latin American Cultivation CAPEX
Canopy Growth$61B
1048672 Chile1048675 Colombia1048672 Mexico1048672 Uruguay
Aphria$10B
1048672 Chile1048675 Colombia1048672 Mexico1048672 Uruguay
Organigram$297M
1048672 Chile1048672 Colombia1048672 Mexico1048672 Uruguay
Cronos$23B
1048672 Chile1048675 Colombia1048672 Mexico1048672 Uruguay
Tilray$926M
1048675 Chile1048672 Colombia1048672 Mexico1048672 Uruguay
Aurora$10B
1048672 Chile1048672 Colombia1048672 Mexico1048675 Uruguay
Hexo$187M
1048672 Chile1048672 Colombia1048672 Mexico1048672 Uruguay
The Green Organic Dutchman$63M
1048672 Chile1048672 Colombia1048672 Mexico1048672 Uruguay
Medicine Man$78M
1048672 Chile1048672 Colombia1048672 Mexico1048672 Uruguay
Auxly$198M
1048672 Chile1048672 Colombia1048672 Mexico1048675 Uruguay
Cannabis cultivators will introduce low cost Latin American operations in order to ensure their long-term survival
Curaleaf$23B
1048672 Chile1048672 Colombia1048672 Mexico1048672 Uruguay
Cresco Labs$891M
1048672 Chile1048672 Colombia1048672 Mexico1048672 Uruguay
Market Capitalization in $US as at April 27 2020
12
Lack of Low Cost Cultivation of Major Cannabis Companies
Our breeding facilities will be located in Guasca and our 14
hectare cultivation property will be located in Zipaquiraacute mdash the sites
are 1 to 15 hours from Bogota international airport
13
Cannabis Regulations in Colombia
We hold licenses to cultivateand process cannabis in Colombia
bull Colombia legalized the use and production of medical cannabis in 2016
bull The UN awarded Colombia 21 of global THC cannabis production for 2020
bull Large-scale commercial production commenced in 2020
All progress on cannabis legalization in Mexico has been made via Supreme Court constitutional challenges
Supreme Court grants the first constitutional injunction in favor of 5
individuals enabling them to possess cannabis for personal consumption
Legal framework for medical cannabis products
Supreme Court declares cannabis prohibition unconstitutional and
orders Congress to reform
Following grant of another constitutional injunction Supreme
Court orders drafting of comprehensive regulations for medical cannabis
Anticipated grant of constitutional
injunction to Xebra
Deadline for draft of cannabis legal
framework
2014NOVEMBER
2017JUNE
2019FEBRUARY
2019AUGUST
2020OCTOBER
2020DECEMBER
14
Cannabis Regulations in Mexico
bull FACT As agricultural products ldquocommoditizerdquo industrial-scale farming shifts to countries with low-cost land and labor
bull FACT The NAFTA free trade agreement (now called USMCA) was devastating to Canadian and US agricultural production
bull FACT The cut-flower industry for example has been decimated post-NAFTA ~85 of cut-flowers in Canada and the US are now imported (ironically Californiarsquos cut-flower greenhouses were occupied by cannabis growers)
bull Some argue that the Canadian and US governments will protect cannabis growers but is it really different this time No There are no exemptions or carve-outs under USMCA for cannabis
bull Because of the US 2018 Farm Bill after Mexico legalizes (expected December 2020) the majority of CBD derived from hemp will be imported from Mexico
bull ldquoWhenrdquo not ldquoifrdquo the US removes THC as a Schedule 1 drug the majority of industrial-scale cannabis derivatives (THC CBD CBG etc) will be imported from Mexico
15
Impact of Mexican Legalization on the US and Canada
Mexican tobacco law prohibits the sale of vaping products
However three companies have previously been granted legal interpretations by Mexican authorities (the Mexican FDA)
to import and commercialize vaping devices as long as the hardware and the juice are sold separately They are
Philip Morris British American Tobacco andhellip Xebra
16
Cannabis Vaping First Mover in Mexico
Our Cannabis Business Model
Latin American Sales and for
Export
Production of Cannabis
Beverages and other Products
Cultivate and process Cannabis in
Colombia and Mexico
17
Q2 2020Complete all brand and formulation development
Q3 2021Sales of CBD products
Q3 2020Complete all trademark applications covering 46 countries
Q4 2021Sales from first harvests
Q1 2021Sales of vaping products
Q4 2021Sales of beverages
Q2 2021Initiate cultivation
18
Dates and objectives are plans only actual results may vary
Our Projected Path to Revenue
Todd Dalotto PresidentHorticultural scientist and cannabis breeder Was instrumental in the drafting of Oregonrsquos medical marijuana legislation
Robert Giustra ChairmanActively engaged in venture capital and in founding funding and listing publicly traded companies for 28 years
Jordi Chemonte DirectorFounded several successful enterprises in Mexico Former CEO of Elements Bioscience a first-mover in Mexican cannabis
Jorge Martiacutenez COOOver 25 years of experience in venture capital Specialized in operational and management efficiencies
Andrew Yau CFOHas been in accounting and finance roles with publicly listed companies for 14 years
Rodrigo Gallardo Country Manager MexicoCorporate lawyer and business executive He was vital in the success of a number of Mexican start-up business ventures
Diego Chiguachi Colombia Chief Agronomist amp BreederAgro-engineer specialized in genetics Managed agricultural projects for the United Nations and for indigenous communities
Emisel Fonseca Food ScientistA food scientist and biotechnology engineer Is the head of a Mexican cosmetics and dietary supplements manufacturing company
Todd Dalotto President mdash FULL BIO
Mr Dalotto is a horticultural scientist public policy consultant and court-qualified expert witness specializing in cannabis He breeds and conducts horticultural research and consults businesses on the horticultural science and public policy of cannabis His research objectives over the past twenty years include breeding of in-bred lines morphology sustainable practices semi-passive greenhouse production and mutualisms Todd has a horticultural research degree with emphasis on sustainable agriculture and plant breeding from Oregon State University is former Chair of the Oregon Health Authorityrsquos Advisory Committee on Medical Marijuana (ACMM) as well as the ACMMrsquos Horticulture Research amp Safety Committee has served on various legislative and rules advisory committees for the State of Oregon and helped draft the regulations for Oregonrsquos Medical Marijuana Dispensary Program and he founded Oregonrsquos first cannabis medical clinic education amp support center
19
Our Team
As at May 1 2020
Shares Outstanding 100499318Stock Options nilWarrants nil
Debt nil
20
Our Capital Structure
xebrabrandscom
XEBRArsquos business plan evaluated three capital expenditure scenarios low medium and high The above figures assume the ldquohighrdquo scenario
Projected Initial Capital Expenditures US$
Hoop-houses ~1 hectare $1285000
Processing Equipment (not a recurring cost) 950000
Total Initial Capital Expenditures (1st Hectare) $2235000
Projected Capital Expenditures per Additional Hectare $1285000
Projected Initial Capital Expenditures US$
Building Machinery amp Equipment ~1 hectare $25000
Processing Equipment (not a recurring cost) 950000
Total Initial Capital Expenditures (1st Hectare) $975000
Projected Capital Expenditures per Additional Hectare $ insignificant
Hoop-house Cultivation and Processingto a Refined THC Extract
Outdoor Cultivation and Processingto a Refined CBD Extract
11
Latin American Cultivation CAPEX
Canopy Growth$61B
1048672 Chile1048675 Colombia1048672 Mexico1048672 Uruguay
Aphria$10B
1048672 Chile1048675 Colombia1048672 Mexico1048672 Uruguay
Organigram$297M
1048672 Chile1048672 Colombia1048672 Mexico1048672 Uruguay
Cronos$23B
1048672 Chile1048675 Colombia1048672 Mexico1048672 Uruguay
Tilray$926M
1048675 Chile1048672 Colombia1048672 Mexico1048672 Uruguay
Aurora$10B
1048672 Chile1048672 Colombia1048672 Mexico1048675 Uruguay
Hexo$187M
1048672 Chile1048672 Colombia1048672 Mexico1048672 Uruguay
The Green Organic Dutchman$63M
1048672 Chile1048672 Colombia1048672 Mexico1048672 Uruguay
Medicine Man$78M
1048672 Chile1048672 Colombia1048672 Mexico1048672 Uruguay
Auxly$198M
1048672 Chile1048672 Colombia1048672 Mexico1048675 Uruguay
Cannabis cultivators will introduce low cost Latin American operations in order to ensure their long-term survival
Curaleaf$23B
1048672 Chile1048672 Colombia1048672 Mexico1048672 Uruguay
Cresco Labs$891M
1048672 Chile1048672 Colombia1048672 Mexico1048672 Uruguay
Market Capitalization in $US as at April 27 2020
12
Lack of Low Cost Cultivation of Major Cannabis Companies
Our breeding facilities will be located in Guasca and our 14
hectare cultivation property will be located in Zipaquiraacute mdash the sites
are 1 to 15 hours from Bogota international airport
13
Cannabis Regulations in Colombia
We hold licenses to cultivateand process cannabis in Colombia
bull Colombia legalized the use and production of medical cannabis in 2016
bull The UN awarded Colombia 21 of global THC cannabis production for 2020
bull Large-scale commercial production commenced in 2020
All progress on cannabis legalization in Mexico has been made via Supreme Court constitutional challenges
Supreme Court grants the first constitutional injunction in favor of 5
individuals enabling them to possess cannabis for personal consumption
Legal framework for medical cannabis products
Supreme Court declares cannabis prohibition unconstitutional and
orders Congress to reform
Following grant of another constitutional injunction Supreme
Court orders drafting of comprehensive regulations for medical cannabis
Anticipated grant of constitutional
injunction to Xebra
Deadline for draft of cannabis legal
framework
2014NOVEMBER
2017JUNE
2019FEBRUARY
2019AUGUST
2020OCTOBER
2020DECEMBER
14
Cannabis Regulations in Mexico
bull FACT As agricultural products ldquocommoditizerdquo industrial-scale farming shifts to countries with low-cost land and labor
bull FACT The NAFTA free trade agreement (now called USMCA) was devastating to Canadian and US agricultural production
bull FACT The cut-flower industry for example has been decimated post-NAFTA ~85 of cut-flowers in Canada and the US are now imported (ironically Californiarsquos cut-flower greenhouses were occupied by cannabis growers)
bull Some argue that the Canadian and US governments will protect cannabis growers but is it really different this time No There are no exemptions or carve-outs under USMCA for cannabis
bull Because of the US 2018 Farm Bill after Mexico legalizes (expected December 2020) the majority of CBD derived from hemp will be imported from Mexico
bull ldquoWhenrdquo not ldquoifrdquo the US removes THC as a Schedule 1 drug the majority of industrial-scale cannabis derivatives (THC CBD CBG etc) will be imported from Mexico
15
Impact of Mexican Legalization on the US and Canada
Mexican tobacco law prohibits the sale of vaping products
However three companies have previously been granted legal interpretations by Mexican authorities (the Mexican FDA)
to import and commercialize vaping devices as long as the hardware and the juice are sold separately They are
Philip Morris British American Tobacco andhellip Xebra
16
Cannabis Vaping First Mover in Mexico
Our Cannabis Business Model
Latin American Sales and for
Export
Production of Cannabis
Beverages and other Products
Cultivate and process Cannabis in
Colombia and Mexico
17
Q2 2020Complete all brand and formulation development
Q3 2021Sales of CBD products
Q3 2020Complete all trademark applications covering 46 countries
Q4 2021Sales from first harvests
Q1 2021Sales of vaping products
Q4 2021Sales of beverages
Q2 2021Initiate cultivation
18
Dates and objectives are plans only actual results may vary
Our Projected Path to Revenue
Todd Dalotto PresidentHorticultural scientist and cannabis breeder Was instrumental in the drafting of Oregonrsquos medical marijuana legislation
Robert Giustra ChairmanActively engaged in venture capital and in founding funding and listing publicly traded companies for 28 years
Jordi Chemonte DirectorFounded several successful enterprises in Mexico Former CEO of Elements Bioscience a first-mover in Mexican cannabis
Jorge Martiacutenez COOOver 25 years of experience in venture capital Specialized in operational and management efficiencies
Andrew Yau CFOHas been in accounting and finance roles with publicly listed companies for 14 years
Rodrigo Gallardo Country Manager MexicoCorporate lawyer and business executive He was vital in the success of a number of Mexican start-up business ventures
Diego Chiguachi Colombia Chief Agronomist amp BreederAgro-engineer specialized in genetics Managed agricultural projects for the United Nations and for indigenous communities
Emisel Fonseca Food ScientistA food scientist and biotechnology engineer Is the head of a Mexican cosmetics and dietary supplements manufacturing company
Todd Dalotto President mdash FULL BIO
Mr Dalotto is a horticultural scientist public policy consultant and court-qualified expert witness specializing in cannabis He breeds and conducts horticultural research and consults businesses on the horticultural science and public policy of cannabis His research objectives over the past twenty years include breeding of in-bred lines morphology sustainable practices semi-passive greenhouse production and mutualisms Todd has a horticultural research degree with emphasis on sustainable agriculture and plant breeding from Oregon State University is former Chair of the Oregon Health Authorityrsquos Advisory Committee on Medical Marijuana (ACMM) as well as the ACMMrsquos Horticulture Research amp Safety Committee has served on various legislative and rules advisory committees for the State of Oregon and helped draft the regulations for Oregonrsquos Medical Marijuana Dispensary Program and he founded Oregonrsquos first cannabis medical clinic education amp support center
19
Our Team
As at May 1 2020
Shares Outstanding 100499318Stock Options nilWarrants nil
Debt nil
20
Our Capital Structure
xebrabrandscom
Canopy Growth$61B
1048672 Chile1048675 Colombia1048672 Mexico1048672 Uruguay
Aphria$10B
1048672 Chile1048675 Colombia1048672 Mexico1048672 Uruguay
Organigram$297M
1048672 Chile1048672 Colombia1048672 Mexico1048672 Uruguay
Cronos$23B
1048672 Chile1048675 Colombia1048672 Mexico1048672 Uruguay
Tilray$926M
1048675 Chile1048672 Colombia1048672 Mexico1048672 Uruguay
Aurora$10B
1048672 Chile1048672 Colombia1048672 Mexico1048675 Uruguay
Hexo$187M
1048672 Chile1048672 Colombia1048672 Mexico1048672 Uruguay
The Green Organic Dutchman$63M
1048672 Chile1048672 Colombia1048672 Mexico1048672 Uruguay
Medicine Man$78M
1048672 Chile1048672 Colombia1048672 Mexico1048672 Uruguay
Auxly$198M
1048672 Chile1048672 Colombia1048672 Mexico1048675 Uruguay
Cannabis cultivators will introduce low cost Latin American operations in order to ensure their long-term survival
Curaleaf$23B
1048672 Chile1048672 Colombia1048672 Mexico1048672 Uruguay
Cresco Labs$891M
1048672 Chile1048672 Colombia1048672 Mexico1048672 Uruguay
Market Capitalization in $US as at April 27 2020
12
Lack of Low Cost Cultivation of Major Cannabis Companies
Our breeding facilities will be located in Guasca and our 14
hectare cultivation property will be located in Zipaquiraacute mdash the sites
are 1 to 15 hours from Bogota international airport
13
Cannabis Regulations in Colombia
We hold licenses to cultivateand process cannabis in Colombia
bull Colombia legalized the use and production of medical cannabis in 2016
bull The UN awarded Colombia 21 of global THC cannabis production for 2020
bull Large-scale commercial production commenced in 2020
All progress on cannabis legalization in Mexico has been made via Supreme Court constitutional challenges
Supreme Court grants the first constitutional injunction in favor of 5
individuals enabling them to possess cannabis for personal consumption
Legal framework for medical cannabis products
Supreme Court declares cannabis prohibition unconstitutional and
orders Congress to reform
Following grant of another constitutional injunction Supreme
Court orders drafting of comprehensive regulations for medical cannabis
Anticipated grant of constitutional
injunction to Xebra
Deadline for draft of cannabis legal
framework
2014NOVEMBER
2017JUNE
2019FEBRUARY
2019AUGUST
2020OCTOBER
2020DECEMBER
14
Cannabis Regulations in Mexico
bull FACT As agricultural products ldquocommoditizerdquo industrial-scale farming shifts to countries with low-cost land and labor
bull FACT The NAFTA free trade agreement (now called USMCA) was devastating to Canadian and US agricultural production
bull FACT The cut-flower industry for example has been decimated post-NAFTA ~85 of cut-flowers in Canada and the US are now imported (ironically Californiarsquos cut-flower greenhouses were occupied by cannabis growers)
bull Some argue that the Canadian and US governments will protect cannabis growers but is it really different this time No There are no exemptions or carve-outs under USMCA for cannabis
bull Because of the US 2018 Farm Bill after Mexico legalizes (expected December 2020) the majority of CBD derived from hemp will be imported from Mexico
bull ldquoWhenrdquo not ldquoifrdquo the US removes THC as a Schedule 1 drug the majority of industrial-scale cannabis derivatives (THC CBD CBG etc) will be imported from Mexico
15
Impact of Mexican Legalization on the US and Canada
Mexican tobacco law prohibits the sale of vaping products
However three companies have previously been granted legal interpretations by Mexican authorities (the Mexican FDA)
to import and commercialize vaping devices as long as the hardware and the juice are sold separately They are
Philip Morris British American Tobacco andhellip Xebra
16
Cannabis Vaping First Mover in Mexico
Our Cannabis Business Model
Latin American Sales and for
Export
Production of Cannabis
Beverages and other Products
Cultivate and process Cannabis in
Colombia and Mexico
17
Q2 2020Complete all brand and formulation development
Q3 2021Sales of CBD products
Q3 2020Complete all trademark applications covering 46 countries
Q4 2021Sales from first harvests
Q1 2021Sales of vaping products
Q4 2021Sales of beverages
Q2 2021Initiate cultivation
18
Dates and objectives are plans only actual results may vary
Our Projected Path to Revenue
Todd Dalotto PresidentHorticultural scientist and cannabis breeder Was instrumental in the drafting of Oregonrsquos medical marijuana legislation
Robert Giustra ChairmanActively engaged in venture capital and in founding funding and listing publicly traded companies for 28 years
Jordi Chemonte DirectorFounded several successful enterprises in Mexico Former CEO of Elements Bioscience a first-mover in Mexican cannabis
Jorge Martiacutenez COOOver 25 years of experience in venture capital Specialized in operational and management efficiencies
Andrew Yau CFOHas been in accounting and finance roles with publicly listed companies for 14 years
Rodrigo Gallardo Country Manager MexicoCorporate lawyer and business executive He was vital in the success of a number of Mexican start-up business ventures
Diego Chiguachi Colombia Chief Agronomist amp BreederAgro-engineer specialized in genetics Managed agricultural projects for the United Nations and for indigenous communities
Emisel Fonseca Food ScientistA food scientist and biotechnology engineer Is the head of a Mexican cosmetics and dietary supplements manufacturing company
Todd Dalotto President mdash FULL BIO
Mr Dalotto is a horticultural scientist public policy consultant and court-qualified expert witness specializing in cannabis He breeds and conducts horticultural research and consults businesses on the horticultural science and public policy of cannabis His research objectives over the past twenty years include breeding of in-bred lines morphology sustainable practices semi-passive greenhouse production and mutualisms Todd has a horticultural research degree with emphasis on sustainable agriculture and plant breeding from Oregon State University is former Chair of the Oregon Health Authorityrsquos Advisory Committee on Medical Marijuana (ACMM) as well as the ACMMrsquos Horticulture Research amp Safety Committee has served on various legislative and rules advisory committees for the State of Oregon and helped draft the regulations for Oregonrsquos Medical Marijuana Dispensary Program and he founded Oregonrsquos first cannabis medical clinic education amp support center
19
Our Team
As at May 1 2020
Shares Outstanding 100499318Stock Options nilWarrants nil
Debt nil
20
Our Capital Structure
xebrabrandscom
Our breeding facilities will be located in Guasca and our 14
hectare cultivation property will be located in Zipaquiraacute mdash the sites
are 1 to 15 hours from Bogota international airport
13
Cannabis Regulations in Colombia
We hold licenses to cultivateand process cannabis in Colombia
bull Colombia legalized the use and production of medical cannabis in 2016
bull The UN awarded Colombia 21 of global THC cannabis production for 2020
bull Large-scale commercial production commenced in 2020
All progress on cannabis legalization in Mexico has been made via Supreme Court constitutional challenges
Supreme Court grants the first constitutional injunction in favor of 5
individuals enabling them to possess cannabis for personal consumption
Legal framework for medical cannabis products
Supreme Court declares cannabis prohibition unconstitutional and
orders Congress to reform
Following grant of another constitutional injunction Supreme
Court orders drafting of comprehensive regulations for medical cannabis
Anticipated grant of constitutional
injunction to Xebra
Deadline for draft of cannabis legal
framework
2014NOVEMBER
2017JUNE
2019FEBRUARY
2019AUGUST
2020OCTOBER
2020DECEMBER
14
Cannabis Regulations in Mexico
bull FACT As agricultural products ldquocommoditizerdquo industrial-scale farming shifts to countries with low-cost land and labor
bull FACT The NAFTA free trade agreement (now called USMCA) was devastating to Canadian and US agricultural production
bull FACT The cut-flower industry for example has been decimated post-NAFTA ~85 of cut-flowers in Canada and the US are now imported (ironically Californiarsquos cut-flower greenhouses were occupied by cannabis growers)
bull Some argue that the Canadian and US governments will protect cannabis growers but is it really different this time No There are no exemptions or carve-outs under USMCA for cannabis
bull Because of the US 2018 Farm Bill after Mexico legalizes (expected December 2020) the majority of CBD derived from hemp will be imported from Mexico
bull ldquoWhenrdquo not ldquoifrdquo the US removes THC as a Schedule 1 drug the majority of industrial-scale cannabis derivatives (THC CBD CBG etc) will be imported from Mexico
15
Impact of Mexican Legalization on the US and Canada
Mexican tobacco law prohibits the sale of vaping products
However three companies have previously been granted legal interpretations by Mexican authorities (the Mexican FDA)
to import and commercialize vaping devices as long as the hardware and the juice are sold separately They are
Philip Morris British American Tobacco andhellip Xebra
16
Cannabis Vaping First Mover in Mexico
Our Cannabis Business Model
Latin American Sales and for
Export
Production of Cannabis
Beverages and other Products
Cultivate and process Cannabis in
Colombia and Mexico
17
Q2 2020Complete all brand and formulation development
Q3 2021Sales of CBD products
Q3 2020Complete all trademark applications covering 46 countries
Q4 2021Sales from first harvests
Q1 2021Sales of vaping products
Q4 2021Sales of beverages
Q2 2021Initiate cultivation
18
Dates and objectives are plans only actual results may vary
Our Projected Path to Revenue
Todd Dalotto PresidentHorticultural scientist and cannabis breeder Was instrumental in the drafting of Oregonrsquos medical marijuana legislation
Robert Giustra ChairmanActively engaged in venture capital and in founding funding and listing publicly traded companies for 28 years
Jordi Chemonte DirectorFounded several successful enterprises in Mexico Former CEO of Elements Bioscience a first-mover in Mexican cannabis
Jorge Martiacutenez COOOver 25 years of experience in venture capital Specialized in operational and management efficiencies
Andrew Yau CFOHas been in accounting and finance roles with publicly listed companies for 14 years
Rodrigo Gallardo Country Manager MexicoCorporate lawyer and business executive He was vital in the success of a number of Mexican start-up business ventures
Diego Chiguachi Colombia Chief Agronomist amp BreederAgro-engineer specialized in genetics Managed agricultural projects for the United Nations and for indigenous communities
Emisel Fonseca Food ScientistA food scientist and biotechnology engineer Is the head of a Mexican cosmetics and dietary supplements manufacturing company
Todd Dalotto President mdash FULL BIO
Mr Dalotto is a horticultural scientist public policy consultant and court-qualified expert witness specializing in cannabis He breeds and conducts horticultural research and consults businesses on the horticultural science and public policy of cannabis His research objectives over the past twenty years include breeding of in-bred lines morphology sustainable practices semi-passive greenhouse production and mutualisms Todd has a horticultural research degree with emphasis on sustainable agriculture and plant breeding from Oregon State University is former Chair of the Oregon Health Authorityrsquos Advisory Committee on Medical Marijuana (ACMM) as well as the ACMMrsquos Horticulture Research amp Safety Committee has served on various legislative and rules advisory committees for the State of Oregon and helped draft the regulations for Oregonrsquos Medical Marijuana Dispensary Program and he founded Oregonrsquos first cannabis medical clinic education amp support center
19
Our Team
As at May 1 2020
Shares Outstanding 100499318Stock Options nilWarrants nil
Debt nil
20
Our Capital Structure
xebrabrandscom
All progress on cannabis legalization in Mexico has been made via Supreme Court constitutional challenges
Supreme Court grants the first constitutional injunction in favor of 5
individuals enabling them to possess cannabis for personal consumption
Legal framework for medical cannabis products
Supreme Court declares cannabis prohibition unconstitutional and
orders Congress to reform
Following grant of another constitutional injunction Supreme
Court orders drafting of comprehensive regulations for medical cannabis
Anticipated grant of constitutional
injunction to Xebra
Deadline for draft of cannabis legal
framework
2014NOVEMBER
2017JUNE
2019FEBRUARY
2019AUGUST
2020OCTOBER
2020DECEMBER
14
Cannabis Regulations in Mexico
bull FACT As agricultural products ldquocommoditizerdquo industrial-scale farming shifts to countries with low-cost land and labor
bull FACT The NAFTA free trade agreement (now called USMCA) was devastating to Canadian and US agricultural production
bull FACT The cut-flower industry for example has been decimated post-NAFTA ~85 of cut-flowers in Canada and the US are now imported (ironically Californiarsquos cut-flower greenhouses were occupied by cannabis growers)
bull Some argue that the Canadian and US governments will protect cannabis growers but is it really different this time No There are no exemptions or carve-outs under USMCA for cannabis
bull Because of the US 2018 Farm Bill after Mexico legalizes (expected December 2020) the majority of CBD derived from hemp will be imported from Mexico
bull ldquoWhenrdquo not ldquoifrdquo the US removes THC as a Schedule 1 drug the majority of industrial-scale cannabis derivatives (THC CBD CBG etc) will be imported from Mexico
15
Impact of Mexican Legalization on the US and Canada
Mexican tobacco law prohibits the sale of vaping products
However three companies have previously been granted legal interpretations by Mexican authorities (the Mexican FDA)
to import and commercialize vaping devices as long as the hardware and the juice are sold separately They are
Philip Morris British American Tobacco andhellip Xebra
16
Cannabis Vaping First Mover in Mexico
Our Cannabis Business Model
Latin American Sales and for
Export
Production of Cannabis
Beverages and other Products
Cultivate and process Cannabis in
Colombia and Mexico
17
Q2 2020Complete all brand and formulation development
Q3 2021Sales of CBD products
Q3 2020Complete all trademark applications covering 46 countries
Q4 2021Sales from first harvests
Q1 2021Sales of vaping products
Q4 2021Sales of beverages
Q2 2021Initiate cultivation
18
Dates and objectives are plans only actual results may vary
Our Projected Path to Revenue
Todd Dalotto PresidentHorticultural scientist and cannabis breeder Was instrumental in the drafting of Oregonrsquos medical marijuana legislation
Robert Giustra ChairmanActively engaged in venture capital and in founding funding and listing publicly traded companies for 28 years
Jordi Chemonte DirectorFounded several successful enterprises in Mexico Former CEO of Elements Bioscience a first-mover in Mexican cannabis
Jorge Martiacutenez COOOver 25 years of experience in venture capital Specialized in operational and management efficiencies
Andrew Yau CFOHas been in accounting and finance roles with publicly listed companies for 14 years
Rodrigo Gallardo Country Manager MexicoCorporate lawyer and business executive He was vital in the success of a number of Mexican start-up business ventures
Diego Chiguachi Colombia Chief Agronomist amp BreederAgro-engineer specialized in genetics Managed agricultural projects for the United Nations and for indigenous communities
Emisel Fonseca Food ScientistA food scientist and biotechnology engineer Is the head of a Mexican cosmetics and dietary supplements manufacturing company
Todd Dalotto President mdash FULL BIO
Mr Dalotto is a horticultural scientist public policy consultant and court-qualified expert witness specializing in cannabis He breeds and conducts horticultural research and consults businesses on the horticultural science and public policy of cannabis His research objectives over the past twenty years include breeding of in-bred lines morphology sustainable practices semi-passive greenhouse production and mutualisms Todd has a horticultural research degree with emphasis on sustainable agriculture and plant breeding from Oregon State University is former Chair of the Oregon Health Authorityrsquos Advisory Committee on Medical Marijuana (ACMM) as well as the ACMMrsquos Horticulture Research amp Safety Committee has served on various legislative and rules advisory committees for the State of Oregon and helped draft the regulations for Oregonrsquos Medical Marijuana Dispensary Program and he founded Oregonrsquos first cannabis medical clinic education amp support center
19
Our Team
As at May 1 2020
Shares Outstanding 100499318Stock Options nilWarrants nil
Debt nil
20
Our Capital Structure
xebrabrandscom
bull FACT As agricultural products ldquocommoditizerdquo industrial-scale farming shifts to countries with low-cost land and labor
bull FACT The NAFTA free trade agreement (now called USMCA) was devastating to Canadian and US agricultural production
bull FACT The cut-flower industry for example has been decimated post-NAFTA ~85 of cut-flowers in Canada and the US are now imported (ironically Californiarsquos cut-flower greenhouses were occupied by cannabis growers)
bull Some argue that the Canadian and US governments will protect cannabis growers but is it really different this time No There are no exemptions or carve-outs under USMCA for cannabis
bull Because of the US 2018 Farm Bill after Mexico legalizes (expected December 2020) the majority of CBD derived from hemp will be imported from Mexico
bull ldquoWhenrdquo not ldquoifrdquo the US removes THC as a Schedule 1 drug the majority of industrial-scale cannabis derivatives (THC CBD CBG etc) will be imported from Mexico
15
Impact of Mexican Legalization on the US and Canada
Mexican tobacco law prohibits the sale of vaping products
However three companies have previously been granted legal interpretations by Mexican authorities (the Mexican FDA)
to import and commercialize vaping devices as long as the hardware and the juice are sold separately They are
Philip Morris British American Tobacco andhellip Xebra
16
Cannabis Vaping First Mover in Mexico
Our Cannabis Business Model
Latin American Sales and for
Export
Production of Cannabis
Beverages and other Products
Cultivate and process Cannabis in
Colombia and Mexico
17
Q2 2020Complete all brand and formulation development
Q3 2021Sales of CBD products
Q3 2020Complete all trademark applications covering 46 countries
Q4 2021Sales from first harvests
Q1 2021Sales of vaping products
Q4 2021Sales of beverages
Q2 2021Initiate cultivation
18
Dates and objectives are plans only actual results may vary
Our Projected Path to Revenue
Todd Dalotto PresidentHorticultural scientist and cannabis breeder Was instrumental in the drafting of Oregonrsquos medical marijuana legislation
Robert Giustra ChairmanActively engaged in venture capital and in founding funding and listing publicly traded companies for 28 years
Jordi Chemonte DirectorFounded several successful enterprises in Mexico Former CEO of Elements Bioscience a first-mover in Mexican cannabis
Jorge Martiacutenez COOOver 25 years of experience in venture capital Specialized in operational and management efficiencies
Andrew Yau CFOHas been in accounting and finance roles with publicly listed companies for 14 years
Rodrigo Gallardo Country Manager MexicoCorporate lawyer and business executive He was vital in the success of a number of Mexican start-up business ventures
Diego Chiguachi Colombia Chief Agronomist amp BreederAgro-engineer specialized in genetics Managed agricultural projects for the United Nations and for indigenous communities
Emisel Fonseca Food ScientistA food scientist and biotechnology engineer Is the head of a Mexican cosmetics and dietary supplements manufacturing company
Todd Dalotto President mdash FULL BIO
Mr Dalotto is a horticultural scientist public policy consultant and court-qualified expert witness specializing in cannabis He breeds and conducts horticultural research and consults businesses on the horticultural science and public policy of cannabis His research objectives over the past twenty years include breeding of in-bred lines morphology sustainable practices semi-passive greenhouse production and mutualisms Todd has a horticultural research degree with emphasis on sustainable agriculture and plant breeding from Oregon State University is former Chair of the Oregon Health Authorityrsquos Advisory Committee on Medical Marijuana (ACMM) as well as the ACMMrsquos Horticulture Research amp Safety Committee has served on various legislative and rules advisory committees for the State of Oregon and helped draft the regulations for Oregonrsquos Medical Marijuana Dispensary Program and he founded Oregonrsquos first cannabis medical clinic education amp support center
19
Our Team
As at May 1 2020
Shares Outstanding 100499318Stock Options nilWarrants nil
Debt nil
20
Our Capital Structure
xebrabrandscom
Mexican tobacco law prohibits the sale of vaping products
However three companies have previously been granted legal interpretations by Mexican authorities (the Mexican FDA)
to import and commercialize vaping devices as long as the hardware and the juice are sold separately They are
Philip Morris British American Tobacco andhellip Xebra
16
Cannabis Vaping First Mover in Mexico
Our Cannabis Business Model
Latin American Sales and for
Export
Production of Cannabis
Beverages and other Products
Cultivate and process Cannabis in
Colombia and Mexico
17
Q2 2020Complete all brand and formulation development
Q3 2021Sales of CBD products
Q3 2020Complete all trademark applications covering 46 countries
Q4 2021Sales from first harvests
Q1 2021Sales of vaping products
Q4 2021Sales of beverages
Q2 2021Initiate cultivation
18
Dates and objectives are plans only actual results may vary
Our Projected Path to Revenue
Todd Dalotto PresidentHorticultural scientist and cannabis breeder Was instrumental in the drafting of Oregonrsquos medical marijuana legislation
Robert Giustra ChairmanActively engaged in venture capital and in founding funding and listing publicly traded companies for 28 years
Jordi Chemonte DirectorFounded several successful enterprises in Mexico Former CEO of Elements Bioscience a first-mover in Mexican cannabis
Jorge Martiacutenez COOOver 25 years of experience in venture capital Specialized in operational and management efficiencies
Andrew Yau CFOHas been in accounting and finance roles with publicly listed companies for 14 years
Rodrigo Gallardo Country Manager MexicoCorporate lawyer and business executive He was vital in the success of a number of Mexican start-up business ventures
Diego Chiguachi Colombia Chief Agronomist amp BreederAgro-engineer specialized in genetics Managed agricultural projects for the United Nations and for indigenous communities
Emisel Fonseca Food ScientistA food scientist and biotechnology engineer Is the head of a Mexican cosmetics and dietary supplements manufacturing company
Todd Dalotto President mdash FULL BIO
Mr Dalotto is a horticultural scientist public policy consultant and court-qualified expert witness specializing in cannabis He breeds and conducts horticultural research and consults businesses on the horticultural science and public policy of cannabis His research objectives over the past twenty years include breeding of in-bred lines morphology sustainable practices semi-passive greenhouse production and mutualisms Todd has a horticultural research degree with emphasis on sustainable agriculture and plant breeding from Oregon State University is former Chair of the Oregon Health Authorityrsquos Advisory Committee on Medical Marijuana (ACMM) as well as the ACMMrsquos Horticulture Research amp Safety Committee has served on various legislative and rules advisory committees for the State of Oregon and helped draft the regulations for Oregonrsquos Medical Marijuana Dispensary Program and he founded Oregonrsquos first cannabis medical clinic education amp support center
19
Our Team
As at May 1 2020
Shares Outstanding 100499318Stock Options nilWarrants nil
Debt nil
20
Our Capital Structure
xebrabrandscom
Our Cannabis Business Model
Latin American Sales and for
Export
Production of Cannabis
Beverages and other Products
Cultivate and process Cannabis in
Colombia and Mexico
17
Q2 2020Complete all brand and formulation development
Q3 2021Sales of CBD products
Q3 2020Complete all trademark applications covering 46 countries
Q4 2021Sales from first harvests
Q1 2021Sales of vaping products
Q4 2021Sales of beverages
Q2 2021Initiate cultivation
18
Dates and objectives are plans only actual results may vary
Our Projected Path to Revenue
Todd Dalotto PresidentHorticultural scientist and cannabis breeder Was instrumental in the drafting of Oregonrsquos medical marijuana legislation
Robert Giustra ChairmanActively engaged in venture capital and in founding funding and listing publicly traded companies for 28 years
Jordi Chemonte DirectorFounded several successful enterprises in Mexico Former CEO of Elements Bioscience a first-mover in Mexican cannabis
Jorge Martiacutenez COOOver 25 years of experience in venture capital Specialized in operational and management efficiencies
Andrew Yau CFOHas been in accounting and finance roles with publicly listed companies for 14 years
Rodrigo Gallardo Country Manager MexicoCorporate lawyer and business executive He was vital in the success of a number of Mexican start-up business ventures
Diego Chiguachi Colombia Chief Agronomist amp BreederAgro-engineer specialized in genetics Managed agricultural projects for the United Nations and for indigenous communities
Emisel Fonseca Food ScientistA food scientist and biotechnology engineer Is the head of a Mexican cosmetics and dietary supplements manufacturing company
Todd Dalotto President mdash FULL BIO
Mr Dalotto is a horticultural scientist public policy consultant and court-qualified expert witness specializing in cannabis He breeds and conducts horticultural research and consults businesses on the horticultural science and public policy of cannabis His research objectives over the past twenty years include breeding of in-bred lines morphology sustainable practices semi-passive greenhouse production and mutualisms Todd has a horticultural research degree with emphasis on sustainable agriculture and plant breeding from Oregon State University is former Chair of the Oregon Health Authorityrsquos Advisory Committee on Medical Marijuana (ACMM) as well as the ACMMrsquos Horticulture Research amp Safety Committee has served on various legislative and rules advisory committees for the State of Oregon and helped draft the regulations for Oregonrsquos Medical Marijuana Dispensary Program and he founded Oregonrsquos first cannabis medical clinic education amp support center
19
Our Team
As at May 1 2020
Shares Outstanding 100499318Stock Options nilWarrants nil
Debt nil
20
Our Capital Structure
xebrabrandscom
Q2 2020Complete all brand and formulation development
Q3 2021Sales of CBD products
Q3 2020Complete all trademark applications covering 46 countries
Q4 2021Sales from first harvests
Q1 2021Sales of vaping products
Q4 2021Sales of beverages
Q2 2021Initiate cultivation
18
Dates and objectives are plans only actual results may vary
Our Projected Path to Revenue
Todd Dalotto PresidentHorticultural scientist and cannabis breeder Was instrumental in the drafting of Oregonrsquos medical marijuana legislation
Robert Giustra ChairmanActively engaged in venture capital and in founding funding and listing publicly traded companies for 28 years
Jordi Chemonte DirectorFounded several successful enterprises in Mexico Former CEO of Elements Bioscience a first-mover in Mexican cannabis
Jorge Martiacutenez COOOver 25 years of experience in venture capital Specialized in operational and management efficiencies
Andrew Yau CFOHas been in accounting and finance roles with publicly listed companies for 14 years
Rodrigo Gallardo Country Manager MexicoCorporate lawyer and business executive He was vital in the success of a number of Mexican start-up business ventures
Diego Chiguachi Colombia Chief Agronomist amp BreederAgro-engineer specialized in genetics Managed agricultural projects for the United Nations and for indigenous communities
Emisel Fonseca Food ScientistA food scientist and biotechnology engineer Is the head of a Mexican cosmetics and dietary supplements manufacturing company
Todd Dalotto President mdash FULL BIO
Mr Dalotto is a horticultural scientist public policy consultant and court-qualified expert witness specializing in cannabis He breeds and conducts horticultural research and consults businesses on the horticultural science and public policy of cannabis His research objectives over the past twenty years include breeding of in-bred lines morphology sustainable practices semi-passive greenhouse production and mutualisms Todd has a horticultural research degree with emphasis on sustainable agriculture and plant breeding from Oregon State University is former Chair of the Oregon Health Authorityrsquos Advisory Committee on Medical Marijuana (ACMM) as well as the ACMMrsquos Horticulture Research amp Safety Committee has served on various legislative and rules advisory committees for the State of Oregon and helped draft the regulations for Oregonrsquos Medical Marijuana Dispensary Program and he founded Oregonrsquos first cannabis medical clinic education amp support center
19
Our Team
As at May 1 2020
Shares Outstanding 100499318Stock Options nilWarrants nil
Debt nil
20
Our Capital Structure
xebrabrandscom
Todd Dalotto PresidentHorticultural scientist and cannabis breeder Was instrumental in the drafting of Oregonrsquos medical marijuana legislation
Robert Giustra ChairmanActively engaged in venture capital and in founding funding and listing publicly traded companies for 28 years
Jordi Chemonte DirectorFounded several successful enterprises in Mexico Former CEO of Elements Bioscience a first-mover in Mexican cannabis
Jorge Martiacutenez COOOver 25 years of experience in venture capital Specialized in operational and management efficiencies
Andrew Yau CFOHas been in accounting and finance roles with publicly listed companies for 14 years
Rodrigo Gallardo Country Manager MexicoCorporate lawyer and business executive He was vital in the success of a number of Mexican start-up business ventures
Diego Chiguachi Colombia Chief Agronomist amp BreederAgro-engineer specialized in genetics Managed agricultural projects for the United Nations and for indigenous communities
Emisel Fonseca Food ScientistA food scientist and biotechnology engineer Is the head of a Mexican cosmetics and dietary supplements manufacturing company
Todd Dalotto President mdash FULL BIO
Mr Dalotto is a horticultural scientist public policy consultant and court-qualified expert witness specializing in cannabis He breeds and conducts horticultural research and consults businesses on the horticultural science and public policy of cannabis His research objectives over the past twenty years include breeding of in-bred lines morphology sustainable practices semi-passive greenhouse production and mutualisms Todd has a horticultural research degree with emphasis on sustainable agriculture and plant breeding from Oregon State University is former Chair of the Oregon Health Authorityrsquos Advisory Committee on Medical Marijuana (ACMM) as well as the ACMMrsquos Horticulture Research amp Safety Committee has served on various legislative and rules advisory committees for the State of Oregon and helped draft the regulations for Oregonrsquos Medical Marijuana Dispensary Program and he founded Oregonrsquos first cannabis medical clinic education amp support center
19
Our Team
As at May 1 2020
Shares Outstanding 100499318Stock Options nilWarrants nil
Debt nil
20
Our Capital Structure
xebrabrandscom
As at May 1 2020
Shares Outstanding 100499318Stock Options nilWarrants nil
Debt nil
20
Our Capital Structure
xebrabrandscom
xebrabrandscom