TICKER: DNAX.V GLOBALLY Accessible Strain Identification & Registration - BLOCKStrain
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GLOBALLY Accessible Strain Identification & Registration CUSTOMER Introduction MAY 2018 TICKER: DNAX.V
ALL CURRENCY AMOUNTS ARE IN CAD UNLESS STATED OTHERWISE This corporate presentation constitutes “forward-looking statements.” within the meaning of applicable Canadian securities laws. Forward-looking statements can be identified by the use of the words such as “anticipates,” or “believes,” “budget,” “estimates,” “expects,” or “is expected,” “forecasts,” “intends,” “plans,” “scheduled,” or variations of such words and phrases or state that certain actions, events or results “could,” “may,” “might,” “will,” “would,” or be taken, occur or be achieved. These forward-looking statements relate to, among other things, our future results, levels of activity, performance, goals or achievements or other future events. These forward-looking statements are based on current expectations and various assumptions and analyses made by us in light of our experience and our perceptions of historical trends, current conditions and expected future developments and other factors we believe are appropriate in the circumstances. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in our forward- looking statements. These factors may cause our actual performance and financial results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements. Forward-looking statements do not take into account the effect that transactions or non-recurring or other special items announced or occurring after the statements are made have on our business. For example, they do not included the effect of asset impairments or other changes announced or occurring after the forward-looking statements are made. The financial impact of such transactions and non-recurring and other special items can be complex and necessarily depends on the facts particular to each of them. We believe the expectations represented by our forward-looking statements are reasonable, yet there can be no assurance that such expectations will prove to be correct. The purposed of the forward-looking statements is to provide the reader with a description of management’s expectations regarding our anticipated financial performance and may not be appropriate for other purposes. Furthermore, unless otherwise stated, the forward- looking statements contained in this report are made as of the date of this report and we do not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise unless required by applicable legislation or regulation. The forward-looking statements contained in this document are expressly qualified by this cautionary statement.
OUR VISION A new cannabis industry is emerging, and using the power of blockchain, BLOCKStrain has developed the most comprehensive, community driven cannabis genetics archival platform dedicated to making it safe and conformable for breeders and growers, large and small, to protect and release their varieties into the public domain, all while being compensated and rewarded.
BlockStrain is an integrated Blockchain platform that registers and tracks cannabis IP from genome to sale. The main advantage of BLOCKStrain is to ensure product licensing and authenticity providing assurance of revenue, and more importantly, product integrity and safety.
New jurisdictions are looking to regulate and legalize a substance that was The Problem recently exclusive to the black market A primary goal for regulators is to “establish an efficient, accountable and IS Legitimate transparent system for regulatory oversight of the supply chain in order to protect youth and combat organized crime” (see source). Intellectual Property This requires a system that collects and manages a tremendous amount of data Rights Protection including pesticide use, quality control, as well as possession limits and servings sizes in order to VALIDATE and VERIFY products Establish and Prove The cannabis plant is the key asset with superiority based on factors such as: Lineage of Medical § Yield of seed Grade Cannabis § Fiber § Cannabinoid content Regulation and § Response to regional or cultivation environments Compliance Growth characteristics § Flavor and aroma through terpine profiles Quality Control Public Safety Exclusivity of a particular genetic strain will be extremely important in this growing industry Source: A Framework for the Legalization and Regulation of Cannabis in Canada, the Task Force on Cannabis Legalization and Regulation
UTILITY PATENTS: TRADEMARKS Regularly issued for: § Plants § Extraction methods § Strain name can be protected by Trademark Law § Significant value attributed to brands Existing § Formulation methods § Nutraceutical combinations § U.S. Patent and Trademark Office often rejects cannabis and marijuana related Strategies for § Growing techniques applications § Hardware § No express prohibition on cannabis § Actual use in interstate commerce required § Interstate commerce involving cannabis Protecting a PLANT PATENTS products is currently illegal in the U.S. Cannabis § Covering asexually reproducible varietals PLANT VARIETY PROTECTION (clones) § Relatively inexpensive. § The Plant Variety Protection Act ("PVPA") is another option for protecting plant and Strain in the § Coverage is narrow § Does not cover sexual reproduction on the variety (e.g., using a cannabis clone to create seed varietals § PVPA is a voluntary program to provide patent like rights to developers, breeders Marketplace hybrid seeds) and owners of plant varietals § Similar to patent protection CONTRACTS § Protects new, distinct, uniform and stable Now is the time for a § Restriction on use of seeds/clones possible plants § Does not limit scope of patent law truly decentralized via material use agreements, trade secret agreement or technology use agreements blockchain platform for § Contracts only bind parties cannabis strains § No protection against third parties § Smart contracts are a possible solution
BREEDERS & GROWERS Trust, Protection and legitimacy For the Cannabis SEED FARMS & GENETICISTS PRODUCERS industry Utilizing our proprietary blockchain technology, we developed the Strain Variety CULTIVATORS Protection Platform to protect small and large breeders, producers, MANUFACTURERS consumers and government.
9 We Protect everyone The mission is to deliver immutable cryptographically secure blockchain technology to establish a global single source of truth for cannabis strains and their ownership the new standard in global cannabis verification PROTECT BREEDERS, GROWERS PROTECT PRODUCERS & PROTECT PATIENTS & & CULTIVATORS DISTRIBUTORS CONSUMERS Quantifying genetics, potency and equivalencies between cannabis products is crucial to the future of legal marijuana
The main characteristics of BLOCKStrain SMART SHARED DISTRIBUTED CRYPTOGRAPHY IMMUTABILITY CONTRACTS LEDGER CONSENSUS Ensuring identity Preserving The automatic All participants Ensuring the state authentication for integrity of data execution of can see a of the ledger each transaction and creating an business logic uniform view of represents the audit trail when specified data, updated in agreed-upon truth (non-repudiation) criteria are met real-time of all stakeholders
BLOCKStrain Is THE Smart Hub For Cannabis Making the platform truly open and available to everyone, we OPEN shape the future and authenticity of the industry through BLOCKCHAIN widespread adoption and usage. By offering a secure API network we've made it easy for testing API providers, grow facilities, app and software developers, research groups and major supply chain platforms to build cannabis- centric applications, helping fuel technology and innovation for the industry as a whole. As compliance and regulation are a critical priority, BLOCKStrain allows for government regulation standards to be adhered to while providing real-time visibility of industry operations to UNLIMITED agencies assigned to enforce and regulate all cannabis activity INDUSTRY nation wide. INNOVATIONS
Cannabis Integration Ecosystem PRODUCTION DELIVERY TRACKING PAYMENTS NEWS INVESTORS BRANDING BLOCKCHAIN ANALYTICS PRODUCTS SocialNetworks
Canadian Cannabis Public Companies Valuations SHARE COMPANY MARKET CAP TICKER PRICE Canopy Growth $4.93 Billion WEED-T $25.63 Aurora Cannabis $4.41 Billion ACB $9.73 BLOCKStrain WeedMD $168 Million WMD $2.18 Protects Their Inventory & IP Newstrike $389 Million HIP $1.00 Aphria $2.4 Billion APH.TO $14.96
Canadian Medical Marijuana Producers & Dispensaries Province or Territory Licences Applications as of February 5, 2018 Nova Scotia 3 § 1.1,630 Received New Brunswick 2 § 2.265 Refused § 3.69 Withdrawn Prince Edward Island 1 § 4.841 Incomplete (returned) Newfoundland and Labrador 0 § 5.414 In Progress Quebec 6 Ontario 48 Licenses are only issued once all regulatory requirements are met. Manitoba 2 Each application undergoes a detailed assessment, including Saskatchewan 4 indepth security checks led by the RCMP and site inspections. Alberta 5 Health Canada conducts compliance and monitoring activities of British Columbia 18 regulated parties to ensure compliance with the various Yukon 0 regulations to the Controlled Drugs and Substances Act (CDSA). Northwest Territories 0 These activities include education, complaint investigations and Nunavut 0 inspecting licensed sites, or sites applying to be licensed to Canada (TOTAL) 89 conduct regulated activities.
Competitive Landscape Medical Genomics Medicinal Genomics uses DNA technology to better understand cannabis genetics and develop products that help growers, dispensaries, and testing Medicinal Genomics laboratories ensure the safety and quality of cannabis. currently has about 1,000 strains registered on the blockchain, approximately 420 of which are publicly Kannapedia accessible through the Medicinal Genomics created Kannapedia to publish on the public Bitcoin company's genomic Blockchain genetic information obtained using the company’s StrainSEEK Identification and Registration service. repository, KannaPedia.
Thank You BLOCKSTRAIN TECHNOLOGY CORP. ADDRESS (HEADQUARTERS) 800-1199 West Hastings Street Vancouver, BC Canada V6E 2R1 MEDIA & INVESTOR RELATIONS Paula Arab (403) 889-9128 paula.arab@blockstrain.io
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