CSE : TEQ Terranueva Corporation Investment Opportunity - June 2019
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Terranueva Corporation
CSE : TEQ
Investment Opportunity
A responsible choice for our w ell-being !
June 2019
Notice to reader / Warning Confidentiality
The information and the financial data presented in this document are based The information contained in this document is provided for informational
on assumptions and on anticipation of future events. Therefore, the results purposes only. The information contained herein is not investment of
could differ significantly and the management warns the reader on the financial advice and is not intended to be used as the basis for making an
business decisions which would result from his analysis of these data. Readers investment decision.
are cautioned that this list of factors that may affect future growth, results
All amounts are in Canadian dollars unless otherwise indicated.
and performance is not exhaustive and should not be unduly relied upon. The
forward-looking statements described in this presentation reflect the
Prospective investors should consider the risks associated with an investment
Company's expectations as of the date of the presentation and are subject to
in the company. They should carefully consider the risks factors described in
change after this date. Unless otherwise required by applicable securities
the circular information and management and discussion analysis reports of
laws, the Company expressly disclaims any intention or obligation to update
the company.
or revise any forward-looking statements, whether as a result of new
information, future events or otherwise.
All rights reserved - For internal use only - not for public distribution – May 2019 2
The company and its market
Terranueva Highlights
• Terranueva Pharma Corporation (“Pharma”) was awarded, on • Targeted market estimated at $7B in 2021
February 22, 2019, cultivation, transformation and sale (medical) • Consumption for chronic pains, migraines, sleeping disorders
licences by Health Canada; and anxiety account for more than 80 % of the Canadian
cannabis market (medicinal and recreational).
• Letter of intent signed with Société québécoise du cannabis
(“SQDC”) in May 2019; • Terranueva was awarded the first cultivation licence issued in Quebec
since the entry into force of the new Cannabis Act, the 11th in Quebec.
• Terranueva Corporation (“Terranueva”) is listed on the CSE since
December 10, 2018 following a reverse take-over transaction under
• Terranueva is in a select group of only four Quebec licensees who hold
the symbol TEQ and a private placement at $0.50;
all the three licences
• Growing in clean room not in greenhouses;
• Certification, research and development unit building completed
and in production;
• Procurement for the construction of modular production units
(“MPU”) is underway;
• Located in L’ Assomption, Québec.
All rights reserved - For internal use only - not for public distribution – May 2019 3
Mission and vision
Mission Business vision
• Terranueva is a company that leverages its innovative • Terranueva : We rely on research and development and
technologies and research and development initiatives to operational efficiency to become a key player in the emerging
realize its greatest aspirations: provide the Canadian and cannabis industry.
international markets with high-quality medical cannabis and
seize new opportunities created by the legalization of
• Pharma : We rely on innovation, automation and operational
marijuana for recreational use.
efficiency to become a dominant producer in the emerging
cannabis industry.
• Pharma is a company whose mission is to produce cannabis
with the highest standards in terms of efficiency, quality and
stability.
All rights reserved - For internal use only - not for public distribution – May 2019 4Value Proposition
• The range of products will come from strains that target the • Production and management processes will be efficient
major motivations of consumers, will develop precision and modern. Modular Production Units (“MPU") of
cannabis primarily for the medical sales market; approximately 15,000 sq ft will be intelligent, relying
heavily on automation and digital technology;
• Alternatives to the consumption of dried cannabis, will be
offered (oil, edibles, etc.) ; • Each MPU will be dedicated to growing one strain
of cannabis at a time
• Research and development will be the economic engine of the
• EU-GMP standards for medical cannabis and raw
company;
material for the pharmaceutical industry
• 8% of sales invested in R&D
• Homogeneity of crops
• 30-40 strains to support medical research
• Acting as a responsible licensed producer, a detailed
• Research in partnership with experts in the field will be
traceability of every gram produced and sold (from seed
pursued to innovate and improve the value proposition
to sale) will be maintained;
• Theme 1: Varietal Development and Production
Optimization
• Theme 2: Studies of Cannabinoids and Terpenes
to assess Therapeutic Effects; Develop Precision
cannabis
• Theme 3: Extraction, purification and formulation
of products (safety and efficiency)
All rights reserved - For internal use only - not for public distribution – May 2019 5Indoor production in clean room
Terranueva will cultivate its cannabis strains in clean rooms in an indoor and controlled environment. This approach will
ensure a recreational or medical product with quality standards that is close to the pharmaceutical sector.
Harvest Indoor Greenhouses
Number of harvests Higher Lower
Contamination / infection / disease Low risk Medium risk
Odour Total control Control more difficult
Environment Total control Control more difficult
Genetics / quality Superior Inferior
Harvest risk Low High
Tout droit réservé
6
STRICTEMENT CONFIDENTIELSituation – Legalisation around the world
7Road Map
Health UCRD UCRD Listing CSE; Health
Q1-2018
Q2-2018
Q3-2018
Q4-2018
Q1-2019
Canada engineering completed Evidence Canada
issued completed package licences (3)
readiness submitted obtained
letter
8Project
PHASE 1 : COMPLETED
• Obtain a growing, processing and medical selling licence for the • Multi-sectorial partnership to support R&D program in talks with:
CRDU • 3 Universities
• Genome Québec
• validate the site infrastructure with its equipment
• Health Québec core recherche centers (Hospital) for Trauma
• develop the best operating practices and sleep disorder
• Quebec Government
• Commence ratifying production and quality standards for each
strain to be introduced in an MPU. • Front office for medical sales
PHASE 2 : ON-GOING PHASE 3 : 3-4 YEARS HORIZON
• Construction of the first two MPUs (total 30,000 sq ft) • Large scale deployment.
• Validation of the industrial process at large scale. • Exploit the full capacity of the L’Assomption site to provide for the
• 6 additional growing rooms and 5 harvests allow Terranueva to medical and recreational demands. Option for an additional
grow with the CRDU, 40 strains and offer 40 new products 280,000 square feet secured on adjacent land.
necessary to support the R&D program and offer full spectrum
of products destined for the medical sales market. • Transformation plant for value-added products (oil, edibles, etc.)
• First significant revenues will be generated.
• Internationalization
• Commercialization of medical market (front office)
• Creation of a franchise system
Tout droit réservé
9
STRICTEMENT CONFIDENTIELInvestment and timetable – Phase 1
PHASE 1 : Implementation of CRDU:
• Objective: Establish the certification, research and development
Unit
• Annual anticipated production capacity of 150 kg of dried
cannabis
• Anticipated annual sales at full capacity at $7/g : $1 M
Major milestones:
Letter of intent signed with SQDC Q2 - 2019 (calendar)
First harvest: Q3 - 2019
All rights reserved - For internal use only - not for public distribution – May 2019 10Letter of intent - SQDC
• Signed in May 2019
• Up to 128 kg of dried cannabis annually
• 2 strains, 3 products by strain (including pre-rolls)
• Guaranties sales avenue for overstock levels over medical sales
demand
All rights reserved - For internal use only - not for public distribution – May 2019 11Investment and timetable – Phase 2
PHASE 2 : Implementation cost of first two MPU
• Objective : Validation of the industrial and production processes
• Construction will begin in second half of 2019 ( +/- 30,000 sq ft)
• Estimated cost between $15-16M
• Annual anticipated capacity 2,800 kg of dried cannabis
• Annual anticipated sales at $8/g : $22M
• Estimated annual gross margin : $11M
Timetable
Engineering and architecture Q2 – 2019 (calendar)
Construction Q3 – 2019
Ready to produce Q2 – 2020
All rights reserved - For internal use only - not for public distribution – May 2019 12Site development - Phase 1 – existing CRDU; Phase 2 in development
UCRD
Phase 1 - CRDU Phase 2 – MPU #1
Tout droit réservé
13
STRICTEMENT CONFIDENTIELInvestment and Timetable – Phase 3
PHASE 3 : Implementation of additional MPU and a warehouse and processing plant:
• Objective: Full scale industrial production with additional MPU
• A warehouse and processing plant must also be built to support the additional MPU
• Annual anticipated capacity of additional MPU is 20 metric tonnes of dried cannabis
• Secured additional 280,000 square feet for an additional 32 metric tonnes of dried cannabis
• Annual sales at full capacity at $8/g : $160M additional
• Additional land increase revenue potential for an additional $256M
• Modular deployment over a three to four-year horizon: franchising MPUs for large scale
production or UCRD for micro production is planned
All rights reserved - For internal use only - not for public distribution – May 14Strategy – Terranueva’s brand
Terranueva
Mission: efficiency, automation, quality Mission: Multi sectorial approach to dealing with anxiety, sleeping disorder, chronic pains, migraines
Terranueva Distribution
Pharma
R&D
network
Medical Front
University
Office
Genomic Non
UCRD profit org.
Recreational
sales (SQDC…)
Quebec
Government
Hospital Centers
Transformation
UPM Low cost of excellence
plant
Interne, sous- national and International Clinics
traitance international
Special Interest
parties
Patients
Tout droit réservé
15
STRICTEMENT CONFIDENTIELMarket capitalisation
Corporation Terranueva (CSE:TEQ)
Common shares outstanding 32 844 961
Options and warrants 5 004 500
Market capitalisation (May 31) 28 M$
Under escrow 15 929 872
Senior management 45%
Q2-2019 (March 31)
Cash $2 M
Total assets $7 M
Total liabilities $4 M
Working capital $3 M
All rights reserved - For internal use only - not for public distribution – May 2019
16Management and Board of Directors
TITLE BIOGRAPHY
Pierre Ayotte President and Chief Executive Officer • 40 years of experience in the aeronautical industry
(CEO) and director • A flight test engineer with a background in mechanical engineering,
• Led corporate recovery and turnaround efforts at a number of businesses, including Mechachrome Canada, DCM Aerospace, and a GE
plant in Mirabel, Quebec
• An ardent advocate of smart manufacturing
• Director on Veterans Foundation
Francisco Perez Jr. Chief Operating Officer (COO) and • Founder
director • Specialized expertise in policy integration, certification, and technology integration
• Experience in human resources, logistics management (shipping, customs clearance, support), and administration.
Pierre Monet Chief Financial Officer (CFO) • Over 30 years of experience working in public companies (mining, pulp and paper, high tech)
• Chartered professional accountant (CPA) and ASC
• Solid track record in financing (more than $700M), acquisitions (above $1B), and restructuring
• International experience (Latin and central America and Europe)
Rafael Percopo Quality Assurance, Manager and • QA experience in pharmaceutical industry
director • Worked in quality assurance, validation, and engineering
• Pilot Plant Manager at Pharmascience’s scientific affairs division and Production Director at Odan Laboratories and Pangeo Pharma
• Concordia University chemistry graduate
Maxime Bastien Chief scientific • PhD in plant biology from Laval University
• 17 years in plant research in academia
• Focused on phytopathology, genetics, molecular biology, high throughput sequencing technologies, genomics, and the synthesis of
volatile compounds in plants.
All rights reserved - For internal use only - not for public distribution – May 2019 17Management and Board of Directors
TITLE BIOGRAPHIES
Louis Doyle Chief compliance officer and • Over 30 years of experience in the capital markets
director • Expertise in operations management, stock market listing and governance problem resolution
• Executive director of Québec Bourse Inc
• Was Vice President, Montreal, of the TSX Venture Exchange (responsible for all business development and listing activities for Quebec and the
Maritime Provinces)
Sylvain Aird Director • Seasoned law practitioner for almost 25 years experience in mergers and acquisitions, financing, securities and corporate governance sectors
• Acted in multiple transactions and financings which value has reached more than $2 Billion, both in Canada and internationally
Séguin Racine • Held the position of Vice-President, Europe, Chief Legal Officer and Secretary and Vice President Business Development at Boralex Inc
Marc-André Aubé Director • Experience in strategic corporate direction financing, mergers and acquisition and management
• Before joining Walter, was President and Chief Operating Officer of GardaWorld Protective Services.
President and CEO • Also worked at Nalco Canada, oil and gas with Petro-Canada, and finance with the Caisse de dépôt et placement du Québec and Scotia Capital Inc.
Walter Surface Technologies • CFA , MBA from the HEC Montréal and an engineering degree from the Montréal Polytechnic School.
Patrice Boily Director • Experience in strategy, security field, operations management in business process reengineering
• Was strategic advisor, Cash Services, Canada and United-States, and COO for Garda World Security Corporation. Prior to joining Garda, Mr. Boily
CEO served as Vice President of Operations for Touchtunes Digital Music. Also led the operations of Dentalmatic and Discreet Logic
Lune Rouge 360 • Industrial engineer graduated from the École Polytechnique of Université de Montréal.
Alain Bureau Director • Extensive experience in mining, public companies, financing, construction in major international projects mainly in Central and Latin America
• Member of the Ordre des Ingénieurs du Québec
CEO • Before joining Toachi, was President and CEO of Pershimco Resources Inc. (now Orla Mining Ltd.)
Toachi Mining • Trained as an officer in the Canadian Armed Forces
• Bachelor of Engineering degree from Royal Military College of Canada.
All rights reserved - For internal use only - not for public distribution – May 2019 18Investors relation
CONTACT
ir@terranueva.ca
Phone: (514) 883-8733
www.terranueva.caYou can also read
