INVESTOR BRIEFING NOTE NOVEMBER 2017

Transcription

1 INVESTOR BRIEFING NOTE NOVEMBER 2017 RavenQuest Biomed Inc. is a diversified publicly traded cannabis company with divisions focused upon cannabis production, management services & consulting and specialized research & development Trading Symbol: RQB (CSE) Recent Share Price: $1.55 Shares (Fully Diluted): 72,270,818 Market Capitalization $112M A SEASONED VETERAN IN A NEW INDUSTRY RavenQuest s CEO, George Robinson, has been active as a highestlevel advisor to many licensed cannabis producers for several years. He has been instrumental in helping dozens of LPs surpass the rigorous Health Canada licensing standards, and is seen by many as a visionary with in-depth understanding of the myriad aspects of this burgeoning industry.

2 Our Unique Four Pillars Approach 1 PARTNERSHIP WITH INDIGENOUS PEOPLES Approximately 20% of canopy in Canada will be allocated to Indigenous Peoples lands. RavenQuest has developed an indigenous-centered, end-to-end offering for cannabis production and sale on sovereign land. These efforts are led by Manager of Government and Indigenous Relations, Bill Robinson, former President & CEO of the Alberta Gaming & Liquor Commission and former Commander, D division, RCMP. RavenQuest brings an impressive list of prospective Indigenous Peoples partners at various stages of the engagement process. 2 LICENSED PRODUCTION BY MID-2018 RavenQuest recently acquired 100% of Edmonton-based Alberta Green Biotech and is expected to complete the 35,500 square-foot facility by mid At capacity, the facility will produce 7,000 Kg of cannabis annually, a yield per square foot substantially higher than competitors. The Investment division will continuously add to its portfolio. 3 REVENUE FROM MANAGEMENT SERVICES DIVISION LIMITS CASH BURN RavenQuest s business model provides immediate and increasing cash flow, which substantially limits the cash burn traditionally associated with early stage cannabis companies. Our consultancy division carries a lengthy list of licensed and late-stage applicant clients. 4 RESEARCH & DEVELOPMENT RavenQuest maintains a commitment to product excellence and maximizing shareholder value. This end, RavenQuest has entered into a research partnership with Canada s top-ranked McGill University, prioritizing plant stabilization and the maximization of flower production in cannabis plants. The resultant yield benefit dovetails nicely with our revolutionary and proprietary grow technology, discussed in this piece.

3 Investment / Acquisition Division RQB s initial acquisition, Alberta Green Biotech, is a 35,500 square-foot late-stage license-applicant that will produce approximately 7,000 Kgs at capacity. We can confidently demonstrate that our 35,500 square foot facility equates to a 75,000 square foot facility of competitors, based upon grams-per-square-foot production found commonly across the industry. This is attributable to the industry-disruptive growing technologies discussed below. RQB will be opportunistic in adding to its portfolio of licensed producers, late-stage applicants and processing facilities on a selective basis wherever a clear contribution to shareholder value exists. As discussed later in this piece, the industry knowledge and relationships developed through our Services division provide a key advantage in the ability to uncover and execute on accretive transactions. AGB is designed to be a low-cost, high volume cannabis cultivator. GRAMS PER SQUARE FOOT WHERE THE INDUSTRY IS HEADED In an industry obsessed with the addition of licensed square footage at almost any cost, little attention is being paid to the proper and efficient use of growing space. As a tenured consultant for many existing LPs, RQB is in a unique position to see the myriad approaches to cannabis cultivation currently being used across the country. As industry experts, we have developed reliable measures for the economic viability of growing facilities and can confidently state that flat table growing environments, prevalent throughout the industry, will face increased challenges in terms of economic viability as the industry matures. This reality underscores the opportunity for expansion of our Investment division, mentioned above, as distressed situations inevitably materialize. Moreover, this reality highlights the importance of our industry-disruptive growing technology. As the sector matures we expect a wholesale model to emerge, placing increased importance upon maximized production per square foot of growing space. We highly advise any future investors into the commercialized cannabis sector to begin using GRAMS PER SQUARE FOOT DENSITY as a primary measurement of profitability for licensed producers.

4 Our fully-tested Orbital Gardens (shown below) allow us to produce large quantities of cannabis in smaller areas by maximizing the productivity of grow space and lighting. Our proprietary overlay of mechanical drivers, airflow, lighting and speed of rotation may be stacked three-high, allowing us to think in terms of the cubic foot of valuable grow space, rather than the less productive square foot currently afforded by today s somewhat archaic flat table growing methods commonly found across the industry today. 100% of the feed, water, lighting, rotational speed and dozens more growing systems are adjusted and automated for optimized growing conditions using a remote, computer-operated control system. In addition to substantial reductions in operating, staffing and electrical costs, our internal testing suggests that this proprietary technology can and will result in production beginning at grams per square foot (of live growing space), double or even triple what our competitors can achieve, and moving upwards from there. We believe this is game-changing technology in which investors cannot participate elsewhere. All of what is described above brings the added benefit of reducing human visits into the grow-room by a factor of hundreds fewer visits per grow-cycle. This is a substantial advantage since human visits to the grow-room are a primary cause of powdery mildew, a common fungal plant-infection which has caused several recalls and/or shutdowns across the cannabis industry.

5 Services Division The Services Division delivers comprehensive, integrated solutions to companies in the cannabis industry. This division has a seven-year history with multiple revenue streams from both one-time and recurring sources. The turnkey, end-to-end offering provides growing and drying technologies, patient and genetic management systems, and security management solutions. This team has helped many Licensed Producer (LP) clients reach cultivation and/or sell/dispense licensing. RQB boasts a 100% success rate in navigating clients through the complex late-stage application phase which moves from pre-license inspection letter, facility construction and ultimately to full license status. A significant shortage of supply will exist during the legalized market s nascent years, and RQB s Services division will be a key beneficiary as capacity buildout accelerates. This unique platform, by its very definition, requires RQB to maintain an ongoing dialogue with a lengthy, ever-expanding list of small, mid-sized and large LPs in a highly fragmented industry. This puts RQB at a distinct advantage both as a potential investor or acquisition target during any consolidation phase and will likely benefit the Investment division discussed above.

6 Leadership Team RQB s management team is comprised of entrepreneurs with experience in the medical marijuana, security, pharmaceutical, marketing, and technology businesses. GEORGE ROBINSON, CEO & DIRECTOR A recognized specialist in the cannabis sector and has worked directly with the LPs and Health Canada in all stages of the application and licensing phases under the ACMPR. Mr. Robinson s consultancy team has extensive experience in building design, municipal bylaw compliance, heating, ventilation and air conditioning, cannabis growing and drying strategies, security, data collection and analysis, and project funding. Mr. Robinson is a B.C. Licensed Security Consultant, Black Belt Six Sigma Certified and current president of the BC Regional Council of the Canadian Security Association. HENDRIK (HENK) VAN ALPHEN, DIRECTOR A proven leader with experience in funding, building and operating numerous companies in the resource sector. Mr. Van Alphen brings extensive experience in international mergers & acquisitions. He has been involved in financing and transactions totalling well over $1 billion over his career. He has extensive experience with Canadian public companies having held executive management and board positions with multiple issuers. CHRIS BECHTEL, DIRECTOR Brings to the Issuer over 30 years' experience, as an executive, entrepreneur and consultant, managing and advising businesses from start-ups to divisions of large Fortune 500 companies. Mr. Bechtel is the former chairman of Supreme Pharmaceuticals, Inc., one of first Canadian public companies in the cannabis sector. MR. TONY DRESCHER, CPA, CMA, DIRECTOR Has over 35 years experience as an executive and consultant in various industries including mining, telecommunications, technology and waste management. He currently serves on the Board of Directors of several private and public companies. DR. JORGE BONET, DIRECTOR Is the Director of the Atrial Fibrillation Clinic at The Royal Columbian Hospital and runs his own private cardiology practice. He has received international awards for original research as well as grant support from different granting agencies including the Canadian Heart Foundation and St. Boniface Research Foundation. Dr. Bonet has conducted several clinical and basic sciences research studies and has published extensively in cardiac electrophysiology, cardiology and cardiac imaging. He has also been a principal investigator in multiple major international randomized clinical studies.

7 KEY REASONS TO INVEST: Indigenous Production Consulting R&D Game Changing Grow Room Technology Diversified Business Model Management Expertise C O N TA C T : Mathieu McDonald Corporate Communications Ravenquest BioMed Inc. Suite West Hastings Street, Vancouver BC, Canada, V6E 2K mathieu.macdonald@rqbglobal.com