transcanna™ · transcanna presentation | 2019 2 forward looking statement certain information...

TransCanna™Building cannabis focused brands for the California lifestyle

Corporate Presentation

TransCanna Presentation | 2019 2

Forward Looking StatementCertain information contained in this presentation constitutes “forward-looking information” within the meaning of applicable Canadian securities legislation. The use of any of the words “anticipate”, “continue”, “estimate”,“intend”,“potential”,“expect”, “may”, “will”, “project”,“proposed”, “should”, “believe” and similar expressions are intended to identify forward-looking information. These statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information. In addition, this presentation may contain forward-looking information attributed to third party industry sources. The Company believes that the expectations reflected in such forward-looking information are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking information included in this presentation should not be unduly relied upon. Such information speaks only as of the date of this presentation or such other date indicated herein.

In particular, this presentation contains forward-looking information pertaining to the following:• The Company’s intention to grow its business and operations;• expectations with respect to the approval of the Company’s licenses and permits;• the Company’s competitive position and the regulatory environment in which the Company operates;• the Company’s operations in the United States, the characterization and consequences of those options under federal law, and the framework for the enforcement of medical cannabis, adult-use cannabis and cannabis-related

offenses in the United States;• the Company’s intention to exploit opportunities for the branding, transportation, distribution, and fulfillment of cannabis products in the United States;• the Company’s expected business objectives for the next twelve months.

In making the forward-looking statements included in this presentation, the Company has made various material assumptions, including, but not limited to, (i) obtaining necessary regulatory approvals; (ii) that regulatory requirements will be maintained, (iii) general business and economic conditions, (iv) the Company’s ability to successfully execute its plans and intentions; (v) the availability of financing on reasonable terms; (vi) the Company’s ability to attract and retain skilled staff; (vii) market competition; (viii) the products and services offered by the Company’s competitors; and (ix) that the Company’s current result of the risk factors set forth below and in the Company’s continuous filings available on SEDAR at www.sedar.com.

The Company is an early stage company with little operating history, a history of losses and the Company cannot assure profitability;if the Company is unable to attract and retain key personnel, it may not be able to compete effectively in the cannabis market;the Company’s industry is experiencing rapid growth and consolidation that may cause the Company to lose key relationships and intensify competition;some of the Company’s planned business activities, while believed to be compliant with applicable U.S. state and local law, are illegal under federal law;the Company may not be able to obtain all necessary California licenses and permits or complete the construction of its facilities in a timely manner, which could, among other things, delay or prevent the Company from becoming profitable; due to the classification of cannabis as a Schedule 1 controlled substance under the CSA, banks and other financial institutions which service the cannabis industry are at risk of violating certain financial laws, including anti-money laundering statutes; the Company may have difficulty accessing the services of banks and processing credit card payments in the future, which may make it difficult for the Company to operate or to transfer funds outside the United States; andany re-classification of cannabis or changes in the U.S. controlled substance laws and regulations may affect the Company’s 5432 business.

These factors are not, and should not be construed as being, exhaustive. Information contained in forward-looking statements in this presentation is provided as of the date of this presentation, and the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information or future events or results, except to the extent required by applicable securities laws. Accordingly, potential investors should not place undue reliance on forward-looking statements or the information contained in those statements.

http://www.sedar.com/


DisclaimerNotice To US Investors

Theinformationprovidedhereinisforinformationalpurposesonly, and itshould not bereliedon foranyspecificpurpose and no representationorwarrantyisgivenin

regardsto itsaccuracyor completeness.Thispresentationdoes not constitutean offerto sell,or a solicitationof an offerto buy anysecuritiesinTransCannaHoldings Inc. ,

oranyothersecurities.

Priortomakinganyinvestment,investorsarestronglyurgedto reviewcarefullythecorporatedocuments oftheCompany, to asksuchquestions ofmanagementas they

deemappropriate,andto discuss anyprospectiveinvestmentintheCompanywiththeirlegaland taxadvisers inordertomakeanindependent determination of the

suitability and consequence of an investment. Investment in the Company is suitable only for Accredited Investors as defined under the U.S. SecuritiesActof 1933, as

amended (the“Securities Act”) forwhom an investmentin such acompanydoes not constitutea completeinvestmentprogramand who fullyunderstand, andare

willingto assume, therisks involved inaninvestment in theCompany.

Anyofferingofsecuritiesin theCompanywillbemadeinrelianceupon an exemption from registration under the Securities Act for offers and sales of securities that do

not involve a public offering, and thereforewill be “restricted securities”, as suchtermisdefinedin Rule144 promulgatedunderthe1933Act.

Prospectiveinvestorsshould informthemselves andtake appropriate adviceas to any applicablelegalrequirementsand anyapplicabletaxationand exchangecontrol

regulationsin thecountries of theircitizenship, residenceor domicile, whichmightbe relevanttothepurchase, holdingorredemptionofinterests.

TransCanna Presentation | 2019

Something a little different in the cannabis space


Our Mission

Build an integrated ecosystem of talented people, owned assets, intellectual property to work with trusted partners to deliver elevated experiences for consumers in the medicinal and recreational cannabis space. Our company believes in the power of Cannabis for healing and happiness.


Quality brands maintain margins over long periods

Why Our Brands Will Sustain Margins

6

Superior grow and edibles recognized by customers

Create product consistency & reliability

Create scalability within CA and future markets within the U.S.

Less prone to contracting margins from market pressures (farming, extracting, transportation)

Real “Pull” – Proven demand for products, not celebrity endorsed PSH model


Existing Brands

Flower, Pre-Rolls & Concentrate

High quality premium indoor strains; Ice Cream Cake, Peanut Butter Breathe, Vicious Citrus, and Sunday Driver.www.lyftedfarms.com

http://www.lyftedfarms.com/


Existing Brands

Edibles

High quality, organic dried mango, no sugar added infused with premium cannabis oil edible available in the California market.www.soldazesnakcs.com

http://www.soldazesnakcs.com/


Existing Brands

Mid-Market Pre-Rolls

Each of Daily’s signature pre-rolls contains 1.5g of cannabis which appeals to the everyday user.


Cannabis, Culture and Business


Self-Contained Ecosystem

11

The Strength of the Brand

Performance Greater Margins Quality/Consistency Control

Reliability, strong management, proper capitalization, seamless

licensing of compliance

Cost savings from verticalintegration and a centralized

location

Maintain quality of biomass, consistency of processing and

manufacturing

Owned assets, manufacturing facility, grow space, compliance testing


Modesto Facility

12

Manufacturing & Production

196,000 ft2 Tri-Level Facility

Complete facility about to be licensed

Central California – Modesto(2-6 hr. drive to all major California cities)

Building in excellent condition and ready for cannabis buildout

Power & Costs

One of the lowest costs in CA in relation to rest of the State

$0.06 kw/hr, lower tax rate than most of CA

Labor Pool

Excellent and home to one of the largest labour pools in the state due to the agricultural industry

Scale

Vertically integrated cannabis facility –one of the largest in California.

Manufacturing, growing, nursery, lab, transportation & distribution, security / extraction – low volatility

Building Condition

New roof as of 2018, 12” insulation R Value 50 with PDM membrane, which includes a 20 year warranty

HVAC / Refrigeration

New premium quality system

“Superior” standard with two levels of redundancy


Rightsized Production

13

• Phased expansion, construction and operating plan to meet growth expectation of value-added products.

• Space management, the ability to manage growth capacity by being agile, scaling cultivation and production to capture revenue and avoid excess unused capacity.

• Success occurs at the intersection of planning and execution.

• Future products can be easily launched, flexibility to quickly increase capacity as sales grow and acquisitions are made.

Scaling while maintaining profitability


Cannabis Industry

14

Numbers

Pre-rolls

7.7% of the total market, equaling about $985MM in

retail sales out of total cannabis sales of $12.8BN

Edibles

Edibles sales in the U.S. and Canada are on pace to reach

more than $4.1 billion by 2022

Flower & Concentrate

California is on track to post a record $3.1 billion dollars in

Cannabis sales for 2019.


• Early in his career Peter was President & General Manager of the $1 billion North American Gatorade business.

• President and CEO of Sciona, Inc., a pioneering personal genetics company offering customized health and wellness solutions.

• President and CEO for Amerifit Nutrition, Inc., a nutritional supplement company focused on women's health.

• Holds an MBA from New York University's Stern School of Business and a BA from Holy Cross College.

• President of a family-based business since the early 1990’s.

• Has over 30 years of experience in the Canadian Capital Markets focusing on building assets and senior management teams while executing a defined business plan.

• Investments include: Health Sciences, Pulp & Paper, Energy, Mining Exploration, Film & Entertainment, Agriculture and Technology sectors.

• Mr. Johansson sits on several advisory boards in the public and private sectors and will bring a wealth of expertise to the TransCanna Board.

• Demonstrated track record of value creation.

• Strong C suite relationships with Marriott, Hilton, and Radisson brands and he managed Silverbirch and Delta hotel real estate portfolios for the British Columbia Investment Management Corporation.

• As CEO of Silverbirch, he grew revenues from $280m up to $500m and increased the portfolio value over 50%.

• He has worked with other companies including established brands like Bentall Kennedy, Great West Life and general contractors, Ellis Don, PCL and Bird.

15

Steve GiblinPresident & CEO

Peter VitulliDirector

Arnie JohanssonChairman

Leadership Experienced Board of Directors

• Mr. Klassen brings his wealth of business management, public relations and government affairs experience to the Company;

• Has extensive experience in the administration of public companies, finance, government policy, media relationship strategies, business/government project management and legislative decision-making.

• Previously served as Chief of Staff to the Canadian Speaker of the House of Commons.

Ian KlassenDirector


• 26 years’ experience in consumer-packaged goods

• MBA Vanderbilt University • Former COO of a US $1B

agricultural-based business

Leadership

16

Alan ApplonieGeneral Manager

Management Team

• Advocate of Prop 215, legalizing medicinal cannabis in California in 1996. Began operating as Cultivator/Distributor since 1997.

• Converted Medicinal cannabis nonprofit to recreational cannabis market in 2016, forming Lyfted Farms, Inc.

• A leader in genetic development, trends and Local/State government policy with deep rooted industry relationships spanning the supply chain from seed to sale.

Bob BlinkLyfted Farms

• 25 years of experience in the junior mining exploration sector, providing accounting and regulatory assistance to public companies.

• Since May 1988, she has worked as an accountant to public companies in the resource sector.

Michelle PillonCFO

• 25 years’ experience in sales, operations and finance within Earthbound Farm, Dole, Organicgirl

• Co-Founder SolDaze Snacks• Co-Founder Handshake Farms• International supply chain

management and sales • BS in business finance

Shawn ShevlinSolDaze Snacks

Thank You

Contact Us1030 West Georgia Street | Suite 902Vancouver, B.C. V6E [email protected]

transcanna™ · transcanna presentation | 2019 2 forward looking statement certain information...

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