TRUENORTH - Unlocking Broad Acre Agriculture - CANNABIS - Eastern Alberta Trade ...
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TRUENORTH CANNABIS Unlocking Broad Acre Agricul ture
FORWARD LOOKING STATEMENTS
Certain statements in this presentation are “forward-looking statements”. Forward-looking statements are statements that are not historical
fact and are generally identified by words such as “believes”, “anticipates”, “expects”, “estimates”, “pending”, “in- tends”, “plans”, “will”, “would
have” or similar words suggesting future outcomes. By their nature, forward-looking statements and information involve assumptions, inherent
risks and uncertainties, many of which are difficult to predict, and are beyond the control of the management team of True North Cannabis
Corp. and its affiliates and subsidiaries that could cause actual results to be materially different from those expressed by these forward-look-
ing statements and information. These forward-looking statements also assume certain positive and pending regulatory changes, however
an adverse change or different regulatory enactment or change could make it more difficult, if not impossible, for True North Cannabis Corp.
and its subsidiaries to operate or to achieve their investment objectives. True North Cannabis Corp. and its subsidiaries and affiliates do not
guarantee or make any representations or promises as to the actual return, if any, or cash flow that might be generated by its operations.
Risks and uncertainties include, but are not limited to, risk with respect to changes in the regulation of marijuana and industrial hemp
production, possession and sales (including in respect of judicial interpretation and law enforcement of those regulations), general economic
conditions and competition, taxes, corporate restructuring and related costs, capital and operating expenses, pricing and availability of
financing. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the
time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. True North
Cannabis Corp. and Pure Prairie Hemp Corp. do not undertake to update or re-issue the forward-looking statements and information that may
be contained herein, whether as a result of new information, future events or otherwise.
Slide 2
The Industrial Hemp Harvest & CBD
Industrial hemp has been grown as a broad-acre crop in Canada for several years for
the yield of hemp grain and f ibre
ABOUT HEMP
Hemp has become more mainstream among Canadian growers as of ABOUT CBD FROM HEMP
late, with 2017’s crop approaching approximately 140,000 acres.
The by-product of the industrial hemp
harvest is where CBD is found on the plant -
this is commonly referred to as hemp chaff
HEMP GRAIN HEMP FIBRE
yy As a by-product with no legal ability to
yy Agricultural seed sales for yy Various industrial applica-
be commercialized until 2018, there are
food products such as hemp tions & textiles
limited processes and technology in place
oils, hearts and protein
to manage the unique properties of hemp
powders
chaff
yy With the Cannabis Act becoming law
on October 17th, 2018, licensed hemp
growers are now able to collect and sell
Minimal on-farm infrastructure or technology their hemp chaff to licensed producers
exists to effectively collect and process hemp chaff
for CBD production
Slide 3
A Unique Approach to Cannabis
True North Cannabis brings an approach to managing the Industrial Hemp
harvest that provides the processes and inf rastructure necessary to
commercialize CBD f rom hemp
TRUE NORTH PROVIDES
The bridge from broad acre agriculture to the
Cannabis sector. TNC brings solutions to support
the hemp grain farmer to successfully harvesting
and commercialize their hemp-based CBD
BROAD ACRE AGRICULTURE RETAIL
Industrial hemp grown for Demand in recreational,
grain & fibre yields from which CBD consumer packaged goods, OTC
True North Collects the CBD and pharma.
bio-mass
QUALITY ASSURANCE
Government mandated quality as-
surance programs require any prod-
uct that enters the value chain to
meet strict guidelines related to:
• Crop protection chemical residuals
• Heavy metals
• Microbial counts
INDOOR CULTIVATED • Pathogens EXTRACTION
Indoor and greenhouse Oil based extraction
These can be potentially prohibitive
marijuana. of cannabinoids from
roadblocks for industrial hemp if
cannabis biomass.
processes are not in place to manage
these risks.
Slide 4
The Challenge of Broad-Acre Agricul ture & CBD
True North Cannabis bridges the gap between broad acre agriculture and the
cannabis sector
BROAD ACRE VOLUME AGRICULTURAL EQUIPMENT CONTAMINANTS CANNABIS COMPLIANCE
yy Working in acres, not yy On farm infrastructure is yy Potential exposure to yy Regulatory compliance is
square feet presents several not set up to deal with the microbials, pathogens and key! Health Canada requires
challenges, particularly unique characteristics of crop protection chemicals extensive seed to sale
volume and storage. In 2018, hemp chaff. The flowabili- can be potentially prohibitive tracking and mandates strict
TNC processed 2.5 million ty and moisture properties roadblocks to commercialize adherance to a set of rules
KG of biomass through it’s in chaff requires unique CBD from hemp that are dynamically evolving
facility management solutions
Solutions based on experience
yy Multiple fleets of industrial yy TNC provides farmers a yy Agronomic advice and yy Rigorous product batching
sized collection equipment solution to collect, move in-field touch points and grower intake program
backed by appropriate and dry a unique product identifies potential contami- allows TNC to efficiently track
logistics infrastructure to - custom, conveyor based nants before they occur product back to the grower,
collect and handle product infrastructure allows for yy Controlled environment field and approved seed
volumes product movement without storage and product curing variety used to grow the crop.
yy Refinement process removes bridging or binding, while reduces risk of contamina- This provides compliance
unwanted biomass – reduces a tailored combination of tion after processing surity to our customers from
finished product volume, airflow and temperature seed to sale
manages the impact of yy Third party partnerships give
while increasing CBD TNC access to processes that
potency resulting in lower moisture levels on product
quality can eliminate contamination
extraction costs challenges that occur
Slide 5
CBD: A Compelling Opportunity for Demand Growth
All forward looking scenarios represent compelling global demand
EXPECTED US DEMAND FOR CBD
USD MILLIONS
CBD DEMAND IS GROWING
$25,000 USD
yy US market data for CBD serves as reasonable
indication of global demand growth
$20,000 USD
yy Wide range of forecasted expectations, $2B to $22B
by 2022 – all scenarios represent compelling global
$15,000 USD demand, driven by:
1) New products
$10,000 USD 2) New customers
yy Retail growth in demand bodes well for CBD manu-
$5,000 USD facturers
yy Manufacturers with steady supply are optimally
positioned to capture value
$0 USD
yy Demand is growing for over-the-counter and pre-
14
15
16
17
18
19
20
21
22
scription pharmaceuticals, consumer packaged
20
20
20
20
20
20
20
20
20
goods & recreation CBD
High Demand Scenario
Low Demand Scenario
Slide 6
Hemp-based CBD: Global Supply
Global hemp production is robust and growing, driven by demand for food
products, textiles and industrial applications, and CBD
COUNTRIES PRODUCING HEMP
The Canadian Industrial Hemp Industry has the
Unique Opportunity to Lead CBD Supply
GREEN LAND
(DENM ARK)
ALASKA (USA)
yy Core competency in broad acre agriculture
ICELAND RUSS IA
CA N ADA
FINLAND
yy Leading position in global hemp acreage
UN ITED
KINGDOM
BELGIUM
GERM ANY
PO LAND
BELARUS
yy Progressive regulatory backdrop
yy Developing, best in class extraction infrastructure and
FRENCH
LIECHTENSTEIN
JAPAN
UN ITED STATES OF AMERICA SPAIN
CHIN A
commercial product distribution through Licensed
TURKEY
SYR IA
TUNISSIA
Producers
MOROCCO
LIBYA
EGYP T
INDIA LAOS
TH AILAND
VIETN AM
GUINEA
SAN JOSE
Global Industrial Hemp Footprint Thousands of acres
M ALAWI
4,000
AUSTRAL IA
CHILE SOUTH
3,000
AFRICA
NEW
ZELAND 2,000
1,000
0
Canada
14
10
16
17
15
12
13
11
20
20
20
20
20
20
20
20
Hemp Producing Countries
Non-Hemp Producing Countries Canada represents significant portion of
the global industrial hemp footprint
Slide 7
A Unique Approach to Cannabis
True North Cannabis brings the model and experience necessary to unlock broad
acre agriculture for CBD production
BRIDGING BETWEEN TWO INDUSTRIES
IN 2018 TRUE NORTH
yy Executed on 8,000 acres of hemp
across AB in 2018
BROAD ACRE AGRICULTURE yy Worked with 25+ growers CANNABIS INDUSTRY
yy Full service harvest support yy Worked with multiple strains on yy Downstream commercial
yy Agronomic advisory the approved cultivar list relationships with licensed
platform producers
yy Produced over 200,000 lbs of
yy Integrated logistics, storage finished product production yy Reliable source of CBD
and refinement operations yy Compliance and Quality
yy Existing relationships with Assurance programs ensure
farming community and best-in-class product quality
partnerships across industry
Slide 8
2018: Pioneering Broad Acre Hemp Chaff Collection
In 2018, True North Cannabis brought a unique platform to the farming
community
OUR ACCOMPLISMENTS IN 2018
FACILITY FLEETS AGRONOMY OPERATIONS
yy Design and construc- yy Design and custom fabri- yy Implemented an integrated yy Outperformed harvest expec-
tion of 22,000 square foot cation of 6 universal chaff plant science and data tations by executing on 8,000
processing facility, housing collection fleets utilizing collection platform to provide acres across Alberta with
storage, refinement and lab conveyor based technology insight into CBD production over 25 grower partners with
operations to manage the unique yields across a range of 0 safety incidents
properties of hemp-based agricultural variables
CBD
Slide 9
Value Generation for Broad Acre Hemp CBD
Potency is the primary driver of value
Genetic improvements regarding CBD potency will be longer term to realize benefits - challenges include:
- Approval process to list on Canadian cultivar
- Development of a viable strain, conducive to broad acre cultivation in outdoor conditions
Controlling operating efficiencies will drive value generation
PRICE PER GRAM OF POTENCY
7% TRUE NORTH’S STRATEGY TO ACHIEVE HIGHER
POTENCY:
6%
Our target is
5%
5% or greater
1) IMPLEMENTION OF AGRONOMY PROGRAM
4% $8.00
3%
2) IMPROVE FIELD TO FACILITY OPERATIONAL
Price per gram
2% $4.50 steps up at 3% EFFICIENCIES
1%
3) IMPROVEMENT IN REFINING TECHNOLOGY
2018 2019
Potency levels beyond 3% receive a price per
gram of $8.00, a significant increase from
$4.50 per gram.
Slide 10Investment in Agronomy & Data
True North Cannabis is building an industry leading database relating to CBD
production yeilds across a range of agricultural variables
2018 AGRONOMY PROGRAM STRATEGIC INVESTMENT 2019 AGRONOMY PROGRAM
yy In field touch points and yy Increasing in field touch points yy TNC has unique opportunity to
questionnaire based data on yy In house agronomist capturing develop IP in the broad acre hemp
fertilization, variety, seed date, plant data and CBD life cycle space at the start of the value
PRE HARVEST
combine type and harvest chain
technique, crop protection yy Increasing precision agriculture
platform yy 2 core focuses:
chemical usage and place in crop
rotation yy Continue 2018 data collection on 1) Comprehensive pre harvest
approved varieties oversight program
yy Working with partners to identify 2) Pre harvest Quality Assur-
upcoming genetics ance analysis related to CPC and
pathogen exposure
yy Several data points collected yy Data driven advice to improve yy Program to be led by certified
along process from all growers, potency and quality agronomist
focusing on the impact to CBD
HARVEST
yy Advanced weather and environ- yy Supported by substantially more
production yeild mental analytics accurate and indicative technology,
yy Data collected on 8,000 acres of yy Agronomy support to determin- including HPLC for cannabinoid
hemp production has yielded the ing harvest timing testing
premier data set in hemp space
TNC’s agronomy and data program is creating a unique platform to provide data driven advice to
our farmers across several key value driving agronomic variables
Slide 11Investment in Harvest Operations
Driving improvements to harvest operations through experience
Universal Accelerated, Improved cart Wireless control
combine to cart contained cart conveying and monitoring
sleeve offload systems systems
PROCESS AUTONOMY &
PRODUCT CONTAINMENT OPERATING EFFICIENCY
SAFETY
yy Key driver of raw material volumes yy Minimizing the status quo grain yy Requirement for hands on
and potency yield! harvest to collect hemp chaff is operation of collection equipment
yy 2018 saw lower efficiency levels critical to the farmer puts operator in harms way, both
that improved through harvest yy Improved collection equipment from equipment and dust
– improvised solutions need reliability, hopper offload times, yy Remote operations from combine’s
to be fabricated into universal, and ability to operate remotely cab eliminates the risk to the
permanent solutions are required to improve collection operator and reduces the hands on
metrics and unlock economies of requirement for labour
scale
Slide 11Investment in Processing & Ref inement
Leveraging investment in technology and footprint expansion to improve
potency and product quality
Key Drivers of Investment Plan
Improving Potency
IMPROVED QUALITY THROUGHPUT yy Improved refinement process for mechanical can-
POTENCY ASSURANCE CAPACITY nabinoid removal from hemp chaff
yy Investing in existing technology from outside
industy to be implemented in TNC’s process
Improving Quality Assurance
yy Enhancing product segmentation practices and
post production storage capacity
yy Investment in custom, container-based storage
with flex capacity for harvest raw material inventory
surge
2019 yy Scale up of existing environmentally controlled
CURRENT EXPANSION finished product storage area
yy Improvement in existing SOPs related to
production batching
Enhanced Throughput Capacity
yy Debottlenecking of refining capacity to reduce
impact of harvest raw material inventory surge
yy Investment in dual production lines - incremental
benefits include dedication of one line for organic
certification
Slide 12TNC’s Competitive Advantage
Securing supply through harvest operations
IN-FIELD HARVEST PARTNERSHIPS
SUPPORT PROVIDES TNC: TNC backward IN EXTRACTION
integrates into yy Gives TNC line of sight to product specification
yy Access to raw material supply supply by providing needs & required product feedback
yy In-field data to progress agronomy program
a harvest service yy Allows TNC to focus on core strenths
model support
yy Improvements to our best in class harvest
to hemp farmers
model
manage the unique
yy Lower material cost by supporting the hemp challenges of
grain farmer
harvesting hemp
yy Seed to sale tracking HEMP EXTRACTIONS
based CBD
HEMP REFINEMENT
HEMP FARM
Competion
focused on
downstream
extraction and
True North Cannabis is the only hemp harvest
sevice provider in Canada retail product
development
Slide 13Commercial Success
TNC’s CBD Raw is the premier hemp based CBD raw material for extraction
WHY TRUE NORTH
6 ACTIVE
yy Reliable source of CBD supply CUSTOMERS
yy Volumes to support downstream
demand
yy Compliance through seed to sale
tracking MULTIPLE PRODUCT
yy Robust Quality Assurance program RE-ORDERS
yy Ability to ship rateably
yy Experienced
OVER $1M IN SALES
IN FIRST 3 MONTHS
TNC’s CBD RAW IS THE
PREMIER HEMP PRODUCT SELLING AT
EXPECTED PRICES
yy Higher potency
yy Cleaned of contaminants
yy Extract ready 2019 SUPPLY
AGREEMENTS
yy Extract efficient
Slide 14TRUENORTH CANNABIS
SHAYNE HAMILTON BRETT HALVORSON
1-855-472-1420 1-855-472-1420
1-403-835-4369 1-780-918-9348
Shayne@truenorthcannabis.com Brett@truenorthcannabis.comYou can also read
