INVESTOR PRESENTATION - TSX:RIV OTC:CNPOF - Canopy Rivers
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INVESTOR
PRESENTATION
TSX:RIV | OTC:CNPOF | @canopyriversinc | canopyrivers.com
Disclaimer
The information contained in this presentation has been prepared by Canopy Rivers Inc. (“Canopy Rivers” or the “Company”) and contains confidential information pertaining to the business and operations of the
Company and its Investees (as defined herein). The information contained in this presentation (a) is provided as at the date hereof and is subject to change without notice, (b) does not purport to contain all of the
information that may be necessary or desirable to fully and accurately evaluate an investment in the Company, and (c) is not to be considered as a recommendation by the Company that any person make an investment in
Canopy Rivers.
Nothing in this presentation should be construed as either an offer to sell or a solicitation of an offer to buy or sell securities. This presentation does not constitute an offering of securities by the Company, and under no
circumstances is it to be construed as a prospectus or advertisement or public offering of securities.
This presentation is confidential and is being provided to you solely for your information and may not be reproduced, in whole or in part, in any form or forwarded or further distributed to any other person. Any forwarding,
distribution or reproduction of this presentation in whole or in part is unauthorized. By accepting and reviewing this presentation, you acknowledge and agree (i) to maintain the confidentiality of this presentation and the
information contained herein, (ii) to protect such information in the same manner you protect your own confidential information, which shall be at least a reasonable standard of care, and (iii) to not utilize any of the
information contained herein except to assist with your evaluation of a potential investment in the Company.
No representation or warranty (whether express or implied) is made by the Company, Canopy Growth Corporation, the Investees or any of their respective directors, officers, affiliates, advisors or employees as to the
accuracy, completeness or reasonableness of the information, statements, opinions or matters (express or implied) arising out of, contained in or derived from this presentation or provided in connection with it, or any
omission from this presentation. None of the Company, Canopy Growth Corporation, the Investees or their respective directors, officers, affiliates, advisors and employees accept any responsibility or liability to you or to
any other person or entity arising out of this presentation.
Unless otherwise indicated, all financial information in this presentation is reported in Canadian dollars.
TH I RD PARTY I NF ORMAT I O N
This presentation includes market and industry data which was obtained from various publicly available sources and other sources believed by Canopy Rivers to be true. Although Canopy Rivers believes it to be reliable, the
Company has not independently verified any of the data from third party sources referred to in this presentation, or analyzed or verified the underlying reports relied upon or referred to by such sources, or ascertained the
underlying assumptions relied upon by such sources. The Company does not make any representation as to the accuracy of such information. This presentation also includes data and financial information which was
obtained by Canopy Rivers from various Investees. Although Canopy Rivers believes it to be reliable, it has not independently verified all of the data from Investees referred to in this presentation or ascertained the
underlying assumptions relied upon by such Investees. The Company does not make any representation as to the accuracy of such information.
TSX:RIV | OTC:CNPOF | @canopyriversinc | canopyrivers.com 2
Disclaimer (continued)
F ORWARD-L O OK I NG I NF ORMA TI O N
This presentation includes forward-looking information within the meaning of Canadian securities law. Statements containing the words “believe”, “expect”, “intend”, “should”, “seek”, “anticipate”, “will”, “positioned”,
“project”, “risk”, “plan”, “may”, “estimate” or, in each case, their negative and words of similar meaning are intended to identify forward-looking information. Forward-looking information in this presentation includes, but is
not limited to, information regarding the Company’s and the Investees’ expected future financial results, goals, plans, business activities and opportunities, collaboration with each other and Canopy Growth Corporation,
competitive advantages and ability to create value as well as consumer and industry trends, including Canopy Rivers’ analysis thereof, market size, growth opportunities and expectations regarding the Investees’ customers,
potential monetization events and benefits of the Investees’ products, services and technologies. Forward-looking information contained in this presentation is based on certain assumptions, including assumptions regarding
the expected financial performance of the Company and the Investees, economic conditions, the Company’s relationship with Canopy Growth Corporation and the Investees, consumer and industry trends, market size and
growth opportunities. While management believes these assumptions to be reasonable, based on information available as of the current date, they may prove to be incorrect. Forward-looking information involves risks and
uncertainties including, but not limited to, a lack of control over the operations of the Company’s investees (the “Investees”); compliance with laws; changes in laws, regulations and guidelines; infectious diseases, including
the novel coronavirus pandemic; challenging global financial conditions; dependence upon Canopy Growth Corporation; business strategy risk; risks inherent in strategic alliances and investments; risks associated with
divestment and restructuring; additional financing risk; volatility of the price of the Company’s Subordinated Voting Shares; competition risks; dependence upon key personnel; conflicts of interest; the fact that cannabis is
a controlled substance in the United States; risks associated with the United States Agricultural Improvement Act of 2018; credit and liquidity risks; security over underlying assets; risks associated with material contracts;
internal controls; expansion into foreign jurisdictions; limited operating history; difficulty to forecast; fluctuations in cannabis prices; reputational risk; catastrophic events, natural disasters, severe weather and disease;
management of growth; equity price risk; anti-money laundering laws and regulation risks; anti-bribery law violations; litigation; cybersecurity and privacy risks; unknown defects and impairments; security over underlying
assets; entry bans into the United States; hedging risk; classification as a passive foreign investment company; risks related to dividend payments; restrictions on the acquisition or use of properties by foreign investors;
reliance on Investee licences; failure of certain Investees to obtain necessary licenses; reliance on Investee facilities; access to capital for the Investees; governmental regulations; operating risks for Investees; increased
operational, regulatory and other risks; lack of access to United States bankruptcy protections; the compatibility of existing technologies in cannabis; testing and trials for certain Investees’ products; operations in emerging
markets; ability to forecast certain Investees’ production; competitive conditions for the Investees; the ability of the Investees to acquire customers; constraints on the Investees’ ability to market products; risks inherent in
an agricultural business; wholesale price volatility; recent announcements and risks regarding vaping products; product recalls by the Investees; product liability risks for the Investees; environmental and employee health and
safety regulations; reliance of certain Investees on key inputs; reliance of the Investees on suppliers and skilled labour; research and development; rapid technological change; the slow acceptance of Investee products;
inflation; corruption and fraud risk; intellectual property risks; insurance risks; certain Investees’ vulnerability to rising energy costs; and transportation risks associated with the delivery of certain Investees’ products. There
may be other factors and risks that cause actions, events or results not to be as anticipated, estimated or intended.
These risks, uncertainties and assumptions could adversely affect the outcome and financial effects of the plans, events and trends described herein. In addition, even if the outcome and financial effects of the plans, events
and trends described herein are consistent with the forward-looking information contained in this presentation, those results or developments may not be indicative of results or developments in subsequent periods.
Many assumptions are based on factors and events that are not within the control of Canopy Rivers and actual future results may differ materially from current expectations. You should not place undue reliance on
forward-looking information. Except as required by applicable Canadian securities laws, the Company assumes no obligation to update or revise any forward-looking information in this presentation to reflect new events or
circumstances.
TSX:RIV | OTC:CNPOF | @canopyriversinc | canopyrivers.com 3
Canopy Rivers is a venture capital firm
specializing in cannabis.
By bringing people, capital, and ideas together,
Canopy Rivers is helping build sustainable
businesses and unlock long-term value in the
cannabis industry.
TSX:RIV | OTC:CNPOF | @canopyriversinc | canopyrivers.com 4
The cannabis marketplace is an emerging and growing industry
CANNABIS AS AN INGREDIENT GLOBAL MARKET
Input End Products The current legal global cannabis market is
estimated to be ~US$15B, with the potential to
grow to between ~US$40B to ~US$200B in
Pharmaceuticals OTC Medicine
the next 5 years1.
Animal Health Personal Hygiene
Plant-derived GROWING CONSUMER BASE
Cannabis
Internal research and analysis suggests that only
Inhalables Food/Edibles 16.7% of Canadians are cannabis consumers2, and
another 20% are “intenders”3. As stigma
decreases, new form factors are explored, and
Beverages Cosmetics product availability increases, we expect a
positive shift in the number of consumers.
Synthetically-derived
Cannabinoids
Industrial
1 Marketsize estimates are from research reports provided by Arcview, Bank of Montreal, Deloitte, and Prohibition Partners.
2 Statistics
Canada (2019)
3 Canopy Rivers analysis. TSX:RIV | OTC:CNPOF | @canopyriversinc | canopyrivers.com 5
Global industry insights and deal flow
• Canopy Rivers leverages the data and insights
collected from a substantial number of
pitches to form unique insights and help
identify emerging industry trends.
• We have formed a deep global network from
which investment opportunities originate.
2,100+
OPPORTUNITIES INTERNATIONAL
EVALUATED DEAL FLOW
Information on this slide is as of May 31, 2020 TSX:RIV | OTC:CNPOF | @canopyriversinc | canopyrivers.com 6
A diversified global platform and portfolio
PORTFOLIO
• Canopy Rivers has invested across the cannabis value
chain1, including in large-scale and small-scale cultivators,
ag-tech companies, hemp processors, brand developers
and distributors, retailers, technology and media platforms,
edible and beverage companies, and beauty brands.
PLATFORM
• Our venture capital model provides public market investors
access to diverse structures and investment opportunities,
including debt, preferred and common equity, and
production-linked royalties.
GEOGRAPHIC EXPOSURE
• Through our portfolio, we have cannabis-related exposure
in Canada, the U.S., Europe, and New Zealand.
1 Additional details on portfolio companies in Appendix. TSX:RIV | OTC:CNPOF | @canopyriversinc | canopyrivers.com 7
How the cannabis industry is expected to evolve
Current State
Market WAVE 1 WAVE 2 WAVE 3 WAVE 4 WAVE 5
Growth Cultivation Ancillary Consumer Packaged Big Pharma Mass Market
(Present) (Present – 2 yrs) Goods (CPG) (5-10 yrs) (10-15 yrs)
(Present – 10 yrs)
Time
• Cultivation licences tend to be • Providers of products/services • Many believe that brands will • Not enough research on cannabis • As with most mature markets, we
viewed as most valuable in highly related to the broader cannabis dominate the industry, posting high is currently available to size this expect there to be only a few market
competitive application economy emerge. margins in exchange for customer market properly. leaders and fragmentation below the
processes. Value is primarily trust. top 10 companies.
• These businesses may be • Medical conditions for which
derived from scarcity, but
subject to less regulatory risk • Mind share and the strength/reach cannabis offers relief may • Private equity style roll-ups may
operations can be capital
than cultivators and may be of distribution will likely be cannibalize U.S. pharmaceutical aggregate retail operators and create
intensive and scarcity can be
easier to scale. determinants of success. sales in the medium to long term. consistency for the customer.
temporary.
• Many entrepreneurs are • Expect creative brand-building • Companies that can secure • Large multinational cannabis
• The focus on cultivation is
coming from larger, established activities in the near-term. intellectual property are expected companies may roll-up brands and
shifting to the rest of the world,
organizations. to have an edge. assets globally.
where market dynamics are • Marketing investment will likely
generally at an earlier stage. need to grow as companies work to
carve out a leading position.
TSX:RIV | OTC:CNPOF | @canopyriversinc | canopyrivers.com 8
Thesis-driven approach to investing from seed to sale
Canopy Rivers has identified 10 verticals across the cannabis value chain. We regularly re-evaluate the investment
opportunity in each vertical and its subsegments using our insights into the evolving dynamics within the cannabis
industry, including market size, key players, and the next wave of innovation.
Agriculture & Cultivation & Processing Consumer Software & Retail & Media &
Food Sciences Production Products & Data Distribution Content
Accessories
Pharma & Wellness
Biotech Products
Hardware
TSX:RIV | OTC:CNPOF | @canopyriversinc | canopyrivers.com 9
The venture capital roadmap to value creation
1. FIND
A robust inbound/outbound 5. GROW
strategy identifies uniquely
differentiated companies and Patient capital helps
4. RE-INVEST portfolio companies
captures important start-up
metrics. Investment prospects As lifecycle investors, scale, build revenue,
undergo a deep due diligence Canopy Rivers may deploy and generate
process evaluating market capital at multiple stages of profitability. Canopy
size, market need, a company’s life. Canopy Rivers plans an
capabilities, traction, Rivers’ scale enables it to investment time
leadership team and ROI. invest across multiple horizon for each of its
funding rounds. investments ranging
from 2-7 years.
2. INVEST
Cheque sizes have ranged 3. FACILITATE 6. MONETIZE
fromA strategic partnership with Canopy Growth
• Canopy Growth – the largest cannabis company in the
world1 – is our cornerstone investor, with a ~27%
ownership interest.
• Our M&A strategies are complementary, with Canopy
Growth seeking control acquisitions and Canopy Rivers
seeking minority investments.
• Canopy Rivers benefits from Canopy Growth’s resources,
extensive know-how, and global footprint, while portfolio
companies may access Canopy Growth’s distribution
network, genetics, and strategic support.
• Canopy Growth can gain exposure to new brands and IP,
access to offtake cannabis and manufacturing partners,
and a potential early look at possible acquisition targets.
1 Based on market capitalization as at May 31, 2020. TSX:RIV | OTC:CNPOF | @canopyriversinc | canopyrivers.com 11We divide our portfolio into three segments
M
MARQUEE CASH YIELDING OTHER VENTURE UNENCUMBERED CANOPY RIVERS
CULTIVATION INVESTMENTS INVESTMENTS CASH NET ASSET VALUE
Canopy Rivers Canopy Rivers Public and private
has a >25% receives royalty, companies in which
share of equity interest or lease Canopy Rivers has
in the business cash flows invested
TSX:RIV | OTC:CNPOF | @canopyriversinc | canopyrivers.com 12Marquee Cultivation and Cash Yielding Investments
Required Annual
Common Equity Cash Yielding Financial
Marquee Cultivation Investment Structure Term Payment 1
Ownership Investments Instrument
(millions)
Royalty Interest 20 Years $4.0
Common Equity +
Shareholder Loan
49% Royalty Interest 25 Years $2.9
$40.0 million shareholder loan bears
interest at 12% per year
Finance Lease 20 Years $0.6
Common Equity + Royalty Interest 20 Years $0.9
Preferred Shares
26% Convertible Debenture 3 Years $0.1
$15.0 million preferred shares generate
cumulative dividends at a rate of
18% per year
Term Loan 5 Years $0.8
1Represents contractually fixed minimum annual payments for production-based royalties. TSX:RIV | OTC:CNPOF | @canopyriversinc | canopyrivers.com 13Other venture investments
Investee Public/Private Investment Structure Equity Stake 1 Reference Price Indicative Value 2
(fully diluted) (millions)
Public (CSE:TER) Exchangeable Shares / Warrants 9%3 Trading Price $62.43
Private Preferred Equity 9% Cost $13.5
Private Common Equity / Warrants 24% Most Recent Financing $10.5
Private Common Equity / Call Option 45% Estimated Fair Value4 $9.6
Private Convertible Debentures / Warrants 26%5 Cost $9.0
Private Preferred Equity 7% Cost $4.3
Private Common Equity 17%6 Cost $2.6
Private Convertible Debenture / Warrants 26% Estimated Fair Value4 $2.1
Private Convertible Debenture 9% Cost $2.0
Private Convertible Debenture / Warrants 12% Cost $2.0
Public (TSXV:YSS) Common Equity 7% Trading Price $1.6
Private Preferred Equity / Warrants / Convertible Promissory Note 21% Estimated Fair Value4 $1.4
Private Preferred Equity / Warrants 25% Estimated Fair Value4 $0.1
1Represents equity stake as at later of March 31, 2020 or date of most recent investment.
2Represents indicative value as at May 31, 2020.
3On a fully diluted basis, based on TerrAscend Corp.’s trading price as at May 31, 2020, assuming all exchangeable shares held by Canopy
Rivers were immediately converted to common shares. Please refer to Appendix for additional details on the liquidity restrictions.
4Please refer to the Company's consolidated financial statements for the fiscal year ended March 31, 2020 for further information.
5Excludes control warrants.
6Equity stake in LeafLink Services International ULC – see appendix for additional details. TSX:RIV | OTC:CNPOF | @canopyriversinc | canopyrivers.com 14Financial Summary
Ownership and Capitalization Summary 1 Financial Highlights 5
Multiple Voting Shares # of Shares % of Basic % of FDSO
~$285MM
Canopy Growth Corporation 36,468,318 19.0% 16.6%
Total Multiple Voting Shares Outstanding 36,468,318 19.0% 16.6%
Capital raised
Subordinated Voting Shares # of Shares % of Basic % of FDSO
~$217MM
Canopy Growth Corporation 15,223,938 7.9% 6.9%
Other Shareholders 140,418,753 73.1% 63.9%
Total Subordinated Voting Shares Outstanding 155,642,691 81.0% 70.8%
Capital deployed
~$44MM
Basic Shares Outstanding 192,111,009
Options2,3 13,066,004
Warrants4 14,400,000
Cash for future
Restricted Share Units 356,308 investments
Fully Diluted Shares Outstanding 219,933,321
1As at March 31, 2020.
22,805,560 of the Subordinated Voting Shares are considered options for accounting purposes.
3Weighted average exercise price of $2.31.
4In connection with the PharmHouse transaction, Canopy Rivers issued 14,400,000 warrants to purchase Canopy Rivers Subordinated
Voting Shares at an exercise price of $2.00 per Canopy Rivers Subordinated Voting Share, expiring on the later of (i) May 7, 2020; and
(ii) 12 months following the date PharmHouse receives a sales license.
5Financial highlights as of May 31, 2020.
TSX:RIV | OTC:CNPOF | @canopyriversinc | canopyrivers.com 15Investment Highlights
Canopy Rivers’ mission is to identify
innovators and disruptors in the cannabis
industry, accelerate their operational success, Diversified Global Global Insights
and unlock value for Canopy Rivers’ Platform & Portfolio & Deal Flow
shareholders.
Thesis-Driven Value Premier
Investment Approach Creation Strategic
Roadmap Partner
TSX:RIV | OTC:CNPOF | @canopyriversinc | canopyrivers.com 16APPENDIX *Ownership % represents fully-diluted equity stake as at later of March 31, 2020 or date of most recent investment
Industry leading professionals
Narbé Alexandrian Eddie Lucarelli Olivier Dufourmantelle
PRESID E NT AND C EO C HIEF FINAN C I AL C HIEF OPERAT I N G OFFI C E R
Venture Capital OFFI C ER Operational Expertise
Concept to Mergers & Acquisitions Facility Design &
Commercialization Corporate Finance Management
Experienced team of professionals from tier one firms
Matt Mundy Mary Dimou
C HIEF ST RAT EGY OFFI C ER SENIOR DIREC T O R , VENT URE
AND GENERAL C OUNSEL C APIT AL & PORT FOL I O OPERAT I O N S
Mergers & Acquisitions Venture Capital
Corporate Governance Scientific research & development
TSX:RIV | OTC:CNPOF | @canopyriversinc | canopyrivers.comGovernance leadership & oversight
Mike Lee 1
John Bell 1,2 Asha Daniere 2,3,4 DIREC T OR
C HAIR AND INDEPE N DE NT
DIREC T OR DIREC T OR
CPG and Beverage
Industrials Legal
Mergers & Acquisitions
Technology Mergers & Acquisitions
Finance
Board of directors with unique and complementary insights
Richard Mavrinac 2,3,4,5 Joe Mimran 3,4 Narbé Alexandrian
INDEPE N DE NT INDEPE N DE NT DIREC T OR AND C EO
DIREC T OR DIREC T OR
Grocery Retail Brand Development Venture Capital
Mergers & Acquisitions Fashion Retail Concept to Commercialization
1Canopy Growth nominee to the Board of Directors.
2Member of the Compensation, Nominating and Governance Committee; Asha Daniere is the Chair of the Compensation, Nominating
and Governance Committee.
3Member of the Audit Committee; Richard Mavrinac is the Chair of the Audit Committee.
4Member of the Conflicts Review Committee; Asha Daniere is the Chair of the Conflicts Review Committee.
5Lead Independent Director.
TSX:RIV | OTC:CNPOF | @canopyriversinc | canopyrivers.comInsight & guidance
Julian Burzynski Philip Donne
ST RAT EGIC ADVIS OR ST RAT EGIC ADVIS OR
Alcohol & Beverage Marketing & Advertising
Sales & Distribution Grocery Retail
Business leaders with proven track records in their respective industries
Meg Lovell John Ruffolo Thirty Five Ventures
ST RAT EGIC ADVIS OR ST RAT EGIC ADVIS OR ST RAT EGIC ADVIS OR
Legal Venture Capital Brand Development
Mergers & Acquisitions Technology Sports & Entertainment
TSX:RIV | OTC:CNPOF | @canopyriversinc | canopyrivers.comINVESTMENT SUMMARY
CAPITAL
COMMITTED ROYALTY WARRANT
& CONTRIBUTED
$20.0 million $20.0 million royalty Right to purchase
committed and purchase price 4% of Agripharm
contributed at a $125.0 million
20-year term post-money
valuation
Leader in extraction, cultivation, award-winning genetics, Annual minimum
value added products, and iconic brands. of $4.0 million
AT A GLANCE
Creemore, ON Indoor and 20,000 sq. ft indoor Licensed
Global cannabis company Globally recognized leader Experienced and Outdoor Facility 570,000 sq. ft outdoor December 2014
with nationwide Canadian in cannabis genetics innovative cannabis oil
operations processors and product
40-time High Times formulators
Strategic partnership with Cannabis Cup winner
Constellation Brands Brands include
200 international awards O.penVAPE, Bakked,
for best genetics Pressies, Magic Buzz, and
District Edibles
21INVESTMENT SUMMARY
COST EQUITY
$2.0 million 9% ownership interest
(upon conversion at US$13
million cap)
Innovative company in the plant physiology and
photobiology domains
AT A GLANCE
Palmerston North, Ag-tech and 10 global Proprietary
New Zealand Plant Sciences partnerships across Engineering
Proprietary technology Treatments for Backed by leading ag- agricultural industry
enables precise control transplanted seedlings and tech investors
of UV light through UV seeds
photomorphogenesis, a • Finistere Ventures –
key factor in regulating With success in crops such focused on ag-tech and
plant growth as lettuce and strawberries, supported by industry
BioLumic has begun leaders like Nutrien
Short-duration UV conducting medical cannabis
treatments that target commercial research trials • Rabo Food and Agri
key traits and outcomes Innovation Fund –
for crops Seed treatments with UV launched by Rabobank, a
are early stage. Lab and global leader in
Expected long-term early stage trials have been agriculture financing
benefits include increased completed on row crops,
yield and disease vegetable seeds, and hemp
resistance
22INVESTMENT SUMMARY
RIGHT OF
COST EQUITY OPTION
FIRST REFUSAL
$18.2 million 45% ownership Right of first refusal To purchase 100% of
interest on all offtake or Canapar’s interest in
similar transactions its subsidiaries based
with respect to the upon a pre-
hemp product and/or determined formula
Italy-based manufacturer of CBD oil and isolates and cannabis produced
CBD-infused beauty products
AT A GLANCE
Sicily, Italy Academic Indoor Extraction and
Italy is considered to be a Canapar’s extraction Academic partnership
Partnerships Processing
fast growing market for machine is expected to with the Department of
cannabis in Europe be one of the largest Agriculture at the
in Europe University of Catania
Canapar has entered into
contracts with Italian Canapar plans to Scientific research
farmers for over 1,000 process hemp biomass activities aimed at
hectares (2,200+ acres) of into CBD isolates and improving issues in the
hemp cultivation derivative products for field of agriculture
distribution in the
European market
23INVESTMENT SUMMARY
CONVERTIBLE
COST WARRANT
DEBENTURE
$5.1 million $5.1 million convertible Right to purchase $3.5
debenture million in common
shares at a $40.0
14% interest rate million fully diluted
valuation
2-year term
Media and technology company producing premium
multimedia content pertaining to the global cannabis industry 26% equity interest
AT A GLANCE
Civilized Life – Lifestyle website for Acquisitions include:
cannabis consumers Saint John, NB Multi-platform network 304K+ Social
Revolution Strategy –
Media Followers
Civilized Studios – Video content full-service marketing
network communications agency
Civilized Events – exclusive branded The 420 Games – events company
experiences, including the World hosting athletic competitions that
Cannabis Congress highlight cannabis consumptionINVESTMENT SUMMARY
CONVERTIBLE
COST WARRANT
DEBENTURE
$2.0 million $2.0 million convertible 1.0 million warrants at an
debenture exercise price of
$1.42 per warrant
8% interest rate
Licensed manufacturer of edible cannabis gummies
for the Canadian market
AT A GLANCE
The purpose-built manufacturing Dynaleo expects it will develop a
customer pipeline that includes Edmonton, AB Edible cannabis 27,000 sq. ft. Licensed
plant contains specialized and
manufacturing facility June 2020
automated production equipment both licensed producers as well as
that is intended to produce CBD traditional consumer packaged
and THC edibles goods companies
Dynaleo has the capability to
customize gummies in a wide range
of flavours, textures, colours, shapes
and sizes to meet customers’ needs
and regulatory requirementsINVESTMENT SUMMARY
CAPITAL COMMITTED EQUITY
& CONTRIBUTED
$12.0 million committed through 26% ownership interest (excluding
convertible debt and warrants, the control warrant) upon full
with $9.0 million contributed commitment and conversion
Plant-based food and beverage company seeking to make
healthy and sustainable the new normal
AT A GLANCE
Company-owned Purpose-built, SQF-, Greenhouse Juice tackles
stores and growing HACCP- and organic- new innovation
network of partners certified production challenges
with hundreds of retail facility Mississauga, ON Beverage 35,000 sq. ft Founded in
locations across Implementing non- Manufacturing Facility 2014
Canada Provides Greenhouse Juice thermal UV technology for
with flexibility to remain on cold-pressed juices
Includes national / the cutting edge of
international chains, ex: functional beverage trends, Developing non-dairy milk
Whole Foods, Sobeys while remaining competitive emulsions free of additives,
on price and quality gums or stabilizers
26INVESTMENT SUMMARY
COST EQUITY
$4.3 million 7% ownership interest
Cannabis market intelligence platform providing real-time
insights to producers and processors
AT A GLANCE
Bellevue, ~150 Customers Real-Time Data
Washington Insights
Currently integrated Strategic alliance with Founder/CEO Cy Scott
with 13 different Nielsen (NYSE: NLSN) co-founded Leafly in
point-of-sale system 2010, and helped grow the
Combining capabilities to
providers to pull sales company into a successful
deliver greater visibility
data for retail exit with Privateer
and insight into market-
intelligence Holdings
leading trends, consumer
sentiment, the
Tracks performance and
competitive product
trends across 10
landscape, and potential
categories and over 70
interaction points within
subcategories
CPG categories
27INVESTMENT SUMMARY
CAPITAL COMMITTED EQUITY
& CONTRIBUTED
$1.5 million committed and 25% ownership interest (excluding
contributed the control warrant)
Brand platform focused on the adult-use cannabis beverage
and herbal supplement beverage markets
AT A GLANCE
Mississauga, ON Beverage Founded in
Manufacturing Facility 2019
Licensed for research and Current products in market
development activities under are phytotonic beverages
the Cannabis Act featuring active herbal ingredients
Herbert has applied for a Beverages are designed for
processing licence and is distribution across North America
building a dedicated purpose-
built, food-grade, and GMP-
compliant production and
processing facilityINVESTMENT SUMMARY
CONVERTIBLE EQUITY
COST PROMISSORY NOTE
AND WARRANTS
$4.3 million $1.0 million 21% ownership
interest
8% interest rate
high is a cannabis beauty brand from High Beauty
AT A GLANCE
Northern Distribution Meets “Clean at Founded in
Founded by organic High Beauty’s global retail Made with cannabis sativa California Partnership Sephora” Standards 2018
beauty pioneer Melissa partners include: seed oil – high products are
Jochim free of all psychoactive
Macy's, Sephora, Urban substances from the cannabis
Melissa has formulated Outfitters, Anthropologie,
skincare products plant
Indigo, Hudson's Bay,
including: Alba Botanica, Shoppers Drug Mart, Therapeutic benefits to the
Blossom Organics, and
Juice Beauty Douglas, Amazon, and Today’s skin include: neutralizing
Shopping Choice, among inflammation, balancing
Melissa holds 14 patents others. moisture levels, preventing
for her skincare free-radical damage
formulations
29INVESTMENT SUMMARY
COST EQUITY
$2.6 million 17% ownership interest
Joint venture, LeafLink International, with LeafLink Inc., leveraging
its B2B marketplace and supply chain technology platform for
deployment throughout regulated cannabis markets outside the U.S.
AT A GLANCE
LeafLink International LeafLink Inc. 5,000+ Retailers 25 Territories
Operations in Operations in New and 1,500+
Toronto, ON York and Los Angeles Vendors
LeafLink Inc. connects 5,100+ LeafLink Inc.’s SaaS marketplace
cannabis retailers across 27 simplifies the supply chain
territories with 1,500+ vendors
Retails can manage wholesale inventory,
Facilitates US$2.2+ billion in enabling them to shop from multiple
gross merchandise value annually vendors, request samples, review orders
and more
Scalable across certain
jurisdictions Vendors can access order management,
customer relationship management,
inventory tracking and reporting
30INVESTMENT SUMMARY
CAPITAL SHAREHOLDER LOAN
EQUITY OFFTAKE RIGHTS
COMMITTED AND DEMAND NOTE
& CONTRIBUTED
$53.4 million 49% ownership Loan: $40.0 million 50% of near-term
interest in the joint with a 12% interest rate production capacity
venture
Note: $2.5 million
Joint venture with the leading principals and operators of a
North American greenhouse produce conglomerate
AT A GLANCE
The partner signed a PharmHouse obtained a Secured multiple offtake Leamington, ON Fully-Automated JV Partner: Pioneer Fully Licensed
global non-compete $90 million bank debt agreements, with Greenhouse and Greenhouse
agreement and will look facility from BMO, CIBC purchase orders in place Industry Leader
to partner with Canopy and Concentra Bank for an aggregate of 50%
Rivers as it expands its of its near-term
business in other production capacity until
jurisdictions December 31, 2020INVESTMENT SUMMARY
CONVERTIBLE EQUITY AND
COST ROYALTY
DEBENTURE WARRANTS
$11.0 million $1.0 million 24% ownership interest $5.0 million royalty
purchase price
12% interest rate 0.3 million warrants at
an exercise price of 20-year term
Small batch, craft cannabis recognized by the Ontario $0.75 per warrant
Annual minimum of
Cannabis Store (OCS) for its premium product $0.9 million
AT A GLANCE
Hamilton, ON Indoor Facility 40,000 sq. ft Licensed
Expansion potential Strategically located in Experienced team with licensed November 2018
and low development Hamilton, Ontario diverse and
risk complementary
Close proximity to key backgrounds
Advanced facility being
developed in three phases: transportation Extensive experience in
onsite testing, breeding infrastructure regulated industries,
and tissue culture retail distribution and
laboratories, and Large urban population to
pharmaceutical
proprietary extraction attract personnel and
development
infrastructure access a significant
customer baseINVESTMENT SUMMARY
COST EQUITY
TerrAscend Corp: TerrAscend Corp:
$12.2 million 9% ownership interest, exchangeable
shares
TerrAscend Canada: TerrAscend Canada:
Publicly-traded (CSE:TER) multi-state operator with assets $13.2 million N/A
and operations in Canada and the U.S., and sales in Europe
AT A GLANCE
Canada-based Milestones Europe-based Milestones U.S.-based Milestones Mississauga, ON 5 retail 10,000+ store Footprint in four
dispensaries and distribution network U.S. states
67,300 square foot Received EU Good Awarded permit to cultivate 7 owned brands for CBD
indoor facility Manufacturing (GMP) medical cannabis in NJ Facility
certification in May
Received licence to 2019 Announced the opening of
cultivate in July 2017 two Apothecarium retail
and sales licence in Entered into sales and dispensary locations in
March 2018 distribution agreement Pennsylvania
with iuvo Therapeutics
Received licence GmbH, a German Tripled Ilera Healthcare’s
amendments to allow for pharmaceutical cultivation output and
the sale of oils, edibles, wholesaler completed its phase II
extracts, and topicals expansionINVESTMENT SUMMARY
CAPITAL
LEASE ROYALTY
COMMITTED
& CONTRIBUTED
$16.1 million 20-year term $13.5 million royalty
committed and purchase price
contributed $0.6 million annual
payments with built- 25-year term
in escalator
Licensed cultivator based in Fredericton, New Brunswick Annual minimum of
$2.9 million
AT A GLANCE
41,000+ square foot Acquired by Canopy Business-friendly policies
Fredericton, NB Indoor Facility 41,000+ sq. ft Licensed March
production and Growth in August 2017 for adult-use cannabis
2019
distribution facility industry in New Brunswick
Received cultivation Operating under the • First province to
licence on March 22, flagship Tweed banner announce retail model
2019 and MOU for cannabis
Canopy Rivers supply and distribution
purchased the property • Lowest corporate income
for $2.6 million and tax rate in Atlantic
entered into a long-term Canada
lease and funding • Government subsidies
agreement with Canopy • Skilled, bilingual labour
Growth • Low cost power
34INVESTMENT SUMMARY
COST EQUITY
$15.0 million 26% ownership interest (common shares)
15.0 million Class A preferred shares
18% yield pre-call option exercise (call
option for Vert to acquire greenhouse)
Fully-licensed large-scale greenhouse operator with 10% yield post-call option exercise
700,000 square feet of production and processing infrastructure
AT A GLANCE
98-acre land package Organic cultivation Subsidiary of Canopy Mirabel, QC 700,000 sq. ft 33% owned by Les Serres Licensed May
with expansion potential expertise Growth and strategic joint Indoor Facility Stéphane Bertrand – 2018
venture of Canopy Rivers greenhouse operator
Majority of current facility Previously was the largest Goal to provide locally-
constructed in 2015 with producer of organic pink produced cannabis and
opportunity to expand tomatoes in Canada establish Canopy Growth’s
further under 700,000 square presence in Québec
feet of modern
greenhouse 100% of product will be sold
to Canopy Growth pursuant
to an offtake agreement
35INVESTMENT SUMMARY
COST EQUITY
$3.3 million 7% ownership interest
Publicly-traded (TSXV:YSS) (WKN: A2PMAX) cannabis retailer
with a vision to become the trusted destination for cannabis in Canada AT A GLANCE
Alberta, Canada 17 Licensed Expansion plans into
Operating Retail Ontario
Locations
Established Alberta growth profile Operational and management
experience in retail, hospitality and
Strategic portfolio of locations,
controlled industries
favorable demographics, strong balance
sheet, and prudent capital management Competitive advantage driven by
position company for growth when commercial real estate knowledge and
supply issues are resolved long-term relationships
Addition of retail presence in The YSS retail experience is built on
Saskatchewan five fundamental pillars: convenience,
value, selection, team, and trust
Offering online ordering through
click-and-collect
36INVESTMENT SUMMARY
COST EQUITY
$13.5 million 9% ownership interest
Plant science innovator with proprietary technologies that
aims to sustainably increase photosynthesis, improve plant yield
and enhance nutritional profiles for a variety of crops AT A GLANCE
San Diego, CA Ag-tech and Positive Trial Results Tested in New
Converting more Multi-year field trials Strong partnership and Plant Sciences with Row Crops Zealand, U.S.
sunlight and CO 2 into across diverse plant experienced team and Canada
energy for plant growth species
Benefits for farmers: Initial commercial focus Multi-year partnership with
better productivity and on major row crops Corteva Agriscience,
profit margins recent spin-out of
PhotoSeed technology DowDupont – one of the
tested in the U.S., largest soy and seed
Benefits for consumers: companies in the world
higher nutritional profiles Canada and New
and a sustainable way to Zealand
ZeaKal co-founders are,
meet growing demand over the course of their
ZeaKal has officially
started its research careers, responsible for five
program in hemp exits in life sciences sector
and own 22 patents
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