CANNABIS INNOVATION, GENETICS & EXTRACTION INVESTOR BRIEF | JANUARY 2021 - EXKA

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CANNABIS INNOVATION, GENETICS & EXTRACTION INVESTOR BRIEF | JANUARY 2021 - EXKA
CANNABIS INNOVATION, GENETICS & EXTRACTION

                                        INVESTOR BRIEF | JANUARY 2021

PRIVATE AND CONFIDENTIAL                          EXKA 2021 | Cannabis Innovation, Genetics & Extraction
CANNABIS INNOVATION, GENETICS & EXTRACTION INVESTOR BRIEF | JANUARY 2021 - EXKA
BUILDING   A
        Hybrid                                Ancillary                   GMP Purpose-Built                   Plant Tissue Culture Laboratory
     Greenhouses                               Facility                   Extraction Facility                    & Administrative Spaces

 Ø 27,000 ft2                         Ø   16,000 ft2                    Ø 6,500 ft2                             Ø   9,000 ft2
 Ø Research and Development           Ø   Clone acclimatization         Ø Capacity to extract 150,000 kg        Ø   Up to 2M cannabis clones per year
   in Agricultural Sciences           Ø   Biomass prep for extraction     of biomass/year                       Ø   Clonal repository
 Ø > 2,500 kg of cannabis             Ø   Shipping & Receiving          Ø Capacity to produce 24,000 kg         Ø   Genetic fingerprinting
   flowers/year                       Ø   Electro-mechanical support      of distillate/year                    Ø   Laboratory currently in operation
 Ø Commissioning: Q4/2020             Ø   Commissioning: Q3/2020        Ø Commissioning: Q3/2020

     Property
Mirabel, QC Canada

Ø   67 hectares
Ø   Significant scalability with 126 cultivable acres
Ø   Potential annual production of >100,000kg of cannabis biomass
Ø   Commissioning: Q2/2021

PRIVATE AND CONFIDENTIAL     |   1                                                                  EXKA 2021 | Cannabis Innovation, Genetics & Extraction
CANNABIS INNOVATION, GENETICS & EXTRACTION INVESTOR BRIEF | JANUARY 2021 - EXKA
OUR VISION                                           WHAT WE DO                                              PRODUCTS
                                                                                                                    & SERVICES
       EXKA is a cannabis research, development             EXKA specializes in genetics and extraction
       and innovation campus striving to be a leader        of pharmaceutical grade cannabis oil. The
                                                                                                                         Plantlets
       in cannabis innovation, genetics and extraction      company supplies the life science
       through unique scientific know-how.                  (pharmaceutical, OTC, animal health, research)
                                                            and the cannabis (licence holders, food)
                                                            markets.

                                                                                                                         Genetics

       BUSINESS UNITS

                 Cannabis Genetics                                  Cannabis Extraction                             Your Clone in the
                                                                                                                        Cloud TM

           Ø   Unique, Stable and Uniform Clones                Ø Pharma-grade extraction service
           Ø   Genetic Fingerprinting                           Ø Value-added cannabis extracts                        Cannabis Oil
           Ø   Germplasm Audit
           Ø   Your Clone in the Cloud TM Genetic Storage
           Ø   Propagate your own varieties
           Ø   Propagate EXKA’s genetic library

PRIVATE AND CONFIDENTIAL   |   2                                                              EXKA 2021 | Cannabis Innovation, Genetics & Extraction
CANNABIS INNOVATION, GENETICS & EXTRACTION INVESTOR BRIEF | JANUARY 2021 - EXKA
ABOUT CANNABIS

PRIVATE AND CONFIDENTIAL   |   3                    EXKA 2021 | Cannabis Innovation, Genetics & Extraction
CANNABIS INNOVATION, GENETICS & EXTRACTION INVESTOR BRIEF | JANUARY 2021 - EXKA
EXKA IN THE CANNABIS MARKET

                                   Ø EXKA focuses on the highest margin segments of the cannabis market :
                                         Ø Cannabis Genetics in a state-of-the-art cannabis plant tissue culture
                                             laboratory with a genetic bank able to micropropagate a consistent
                                             supply of novel and best in class strains for specific LPs needs.
                                         Ø Cannabis Extraction on a R&D agricultural science platform creates an
                                             evolving scientific expertise that leads to product differentiation in
                                             “white label” specialty oil products.
                                   Ø EXKA’s purpose-built facilities serves as a full circle cannabis innovation hub,
                                       where most licence holders only produce flowers and very few have
                                       extraction capabilities beyond “crude resin”.

PRIVATE AND CONFIDENTIAL   |   4                                               EXKA 2021 | Cannabis Innovation, Genetics & Extraction
CANNABIS INNOVATION, GENETICS & EXTRACTION INVESTOR BRIEF | JANUARY 2021 - EXKA
EXTRACTION FACILITY AT EXKA
                                                                                 IS GMP READY
            CANNABIS MARKET IS EVOLVING
                TOWARDS EXTRACTS

    Ø The therapeutic Indications for chronic pain, neuropathic
         pain, cancer-related pain and in palliative care, averages out
         between 69 % and 79%. Source: CanniMed, IPO
    Ø The market is now split 50% / 50% between smokables and
         new novel form factors such as vape pens, edibles, beverages
         and other innovative products. Source: GMP Securities
    Ø Cannabis extract is a premium product, the more it is refined,
         the higher its value. Source: SQDC website
            Ø Cannabis oil :
                 C$23.46/g equivalent | Premium = 141%
            Ø Cannabis soft-gel capsules :
                 C$72.68/g equivalent | Premium = 645%

PRIVATE AND CONFIDENTIAL   |   5                                            EXKA 2021 | Cannabis Innovation, Genetics & Extraction
CANNABIS INNOVATION, GENETICS & EXTRACTION INVESTOR BRIEF | JANUARY 2021 - EXKA
HEALTH CANADA CANNABIS LICENCES

   EXKA holds a cannabis cultivation and processing licence and a cannabis analytical testing licence from Health
   Canada. The Company recently submitted an amendment to the current cultivation and processing licence to
   include extraction and greenhouses facilities and expects to have these facilities licenced in the near term, with
   the expectation to have all of its facilities licenced by Q3/2020 (base case scenario). However, the team is
   deploying all the efforts to outpace the licence change for Q2 2020 (best case scenario).

                EXKA received its                                                        EXKA received its
       cultivation and processing licence                                   licence for analytical testing of cannabis
   from Health Canada on February 28, 2020 :                               from Health Canada on January 24, 2020 :

   Ø This licence allows EXKA to operate its                               Ø This licence allows EXKA to perform
     plant tissue culture laboratory and                                     cannabis testing in our laboratories.
     offer micropropagation and genetic
     storage services to licensed cannabis
     producers.

PRIVATE AND CONFIDENTIAL   |   6                                                EXKA 2021 | Cannabis Innovation, Genetics & Extraction
CANNABIS INNOVATION, GENETICS & EXTRACTION INVESTOR BRIEF | JANUARY 2021 - EXKA
EXKA’S GENETICS & EXTRACTION SERVICES IN THE VALUE CHAIN
Ø     EXKA is able to deliver predictable, reliable, resilient and robust quality plantlets for indoor/outdoor cultivation in
      large volume at any given time.
Ø     Our genetics in synergy with our extraction process leads to product differentiation in “white label” specialty oil extracts.

                                                                                                                    EXTRACTION
                                                                                                                       Novel
                                                                                                                    form factors

     Start              Stage I                   Stage II             Stage III & IV           Starting
    Mother          Establishment           Shoot Multiplication        Rooting &               Material
     Plant           of explants            and Genetic Storage       Acclimatization
                                                                                                                  FLOWERS
    - Explant    - Genotyping Services    Your Clone in the CloudTM   - In vitro cultures      - Plantlets                      Combustible
                 - R&D Projects                                       - Ex vitro plants                                          products

PRIVATE AND CONFIDENTIAL   |   7                                                            EXKA 2021 | Cannabis Innovation, Genetics & Extraction
CANNABIS INNOVATION, GENETICS & EXTRACTION INVESTOR BRIEF | JANUARY 2021 - EXKA
ADVANTAGES OF MICROPROPAGATION
      Ø Maintain genetic stability
      Ø Rely on stable, uniform, vigorous, Specific Pathogen Tested (SPT), high quality
           starting material for better yield and performance
      Ø Reduce incidence of plant pathogens by using SPT starting material
      Ø Reduce or eliminate mother room costs
      Ø Improve yield
      Ø Increase overall profitability by improving revenues and reducing costs

      ABOUT THE PROCESS

 Time (months)   0                 1    2             3            4        5             6            7             8
 Clones          1                 5    25           625        3,125    15,625        78,125       390,625      1,953,125
PRIVATE AND CONFIDENTIAL   |   8                                                  EXKA 2021 | Cannabis Innovation, Genetics & Extraction
CANNABIS INNOVATION, GENETICS & EXTRACTION INVESTOR BRIEF | JANUARY 2021 - EXKA
ADVANTAGES OF YOUR CLONE IN THE CLOUD TM
                       Ø EXKA offers genetic storage services by maintaining client varieties in its clonal repository.
                       Ø LP genetics are safeguarded and propagated into robust, true to type and disease-free plantlets.
                       Ø Clones are kept in perpetuity in aseptic, stable and environmentally-controlled conditions and
                               propagated on demand to fit production schedules.
                       Ø Genetic material kept off-site represents an insurance policy by insuring the preservation of
                               valuable varieties.
                       Ø Specific-pathogen testing (SPT) and viral elimination services.
                       Ø Genetic fingerprinting services.
                       Ø EXKA offers Germplasm audit services by bringing plants into flowering and documenting their
                               characteristics.
                       Ø Ability to consistently supply novel and best in class genetic strains for specific LPs needs.

PRIVATE AND CONFIDENTIAL   |   9                                                    EXKA 2021 | Cannabis Innovation, Genetics & Extraction
EXKA CANNABIS GENETIC PORTFOLIO
Ø EXKA’s cannabis genetic bank strives to consistently supply novel and best in class genetic strains for specific LPs needs.
Ø Our 2020 varieties catalogue features our top genetics with a detailed guide to each strain’s specific traits and growing
    needs, this also includes pages of scientific advice to help LPs yield the best results out of their investment.

PRIVATE AND CONFIDENTIAL   |   10                                                  EXKA 2021 | Cannabis Innovation, Genetics & Extraction
Ø GMP extraction facility ready for domestic and international markets.
EXTRACTION SERVICES                            Ø Precise and tailored extraction services that can provide the right concentration
                                                    of cannabinoids customized to our client’s desired “white label” format.

 PRIMARY EXTRACTION                                                                                           SECONDARY PROCESSING
   Sourcing             Milling             Extracting           Winterizing               Evaporating                       Distillation

    Cannabis               Grind            Crude Extract          Winterized Oil              Crude Resin                       Distillate
 Biomass consists   Testing & Analysis     Supercritical CO2       Wax & Lipids are      Ethanol Precipitated Rotary        Short Path Distillation
  of dry flowers,                                                    removed                   Evaporation &                 & Terpene Fractions
   trim & shake                                                                               Decarboxylation
                                     Cannabinoid Concentration                           Cannabinoid Concentration      Cannabinoid Concentration
                                            50% - 60%                                            75% - 80%                     90% - 95%

                                         Input: 150,000 kg/year Input: 21,000 kg/year                                     Input: 30,000 kg / year
                                         Output: 15,000 kg/year Output: 17,000 kg/year                                   Output: 24,000 kg / year

                                ACTIVE PHARMACEUTICAL INGREDIENT
PRIVATE AND CONFIDENTIAL    |   11                                                                  EXKA 2021 | Cannabis Innovation, Genetics & Extraction
IN SUMMARY
                                    Ø EXKA cannabis plant tissue culture laboratory with micro-
                                       propagation and genetic storage capability is a key differentiator
                                       in the industry.

                                    Ø Our R&D agricultural science platform will generate rigour,
                                       stability, consistency and efficiency in the production of
                                       pharmaceutical-grade products (plantlets and oil extracts).

                                    Ø EXKA is able to consistently supply novel and best in class genetic
                                       strains for specific LPs needs.

                                    Ø EXKA is able to provide the right concentration of cannabinoids
                                        customized to the desired “white label” format.

                                    Ø EXKA has the ability to adapt to create and supply specific
                                       products and/or services meeting unique customer requirements
                                       (plantlets, genetics, oil) for domestic and international markets.

PRIVATE AND CONFIDENTIAL   |   12                                 EXKA 2021 | Cannabis Innovation, Genetics & Extraction
Check out our New Web Site to find out more about our
 RESEARCH PARTNERS in our CANNABIS CAMPUS …                                              WEB SITE

 For all INVESTOR RELATIONS
 and up to date details on Ø REVENUE PATHS
                                    Ø SIGNED CONTRACTS and LOIs
                                    Ø GROWTH PLANS
                                    Ø FINANCIAL FORECASTS
PLEASE CONTACT US DIRECTLY :

Maxime Paris                        Sébastien Désormeau
President & CEO                     COO
514 974 0099                        514 910 5845

PRIVATE AND CONFIDENTIAL   |   13                         EXKA 2021 | Cannabis Innovation, Genetics & Extraction
FUNDING HISTORY
          Q1 / 2018                          Q3 / 2018                         Q3 / 2019                          Q1 / 2020                  2020

         Seed Round                      Private Placement A             Private Placement B                 Private Placement C
           (Closed)                            (Closed)                        (Closed)                             (Open)
                                                                                                                                            START
      4.55 million shares                 7.4 million shares               1.9 million shares                  2 million shares               OF             IPO
       at $0.20 / share                    at $1.50 / share                 at $2.50 / share                   at $3.00 / share          PRODUCTION

    Total equity : $910,000         Total equity : $11.0 million      Total equity : $4.7 million         Total equity : $6.0 million
                                                                   Convertible debenture : $8 million
                                                                         Total : $12.7 million

                TOTAL CAPITAL RAISED                                                                      CAPEX TABLE 2018 - 2020

                                                                                           Property                                                 $2,500,000
                              as of April 6, 2020
                                                                                           Construction                                             $16,200,000
      Common equity                                   $16.7 M                                             Vitalis Q-90 extractor                     $720,000
      Convertible debenture                           $8.0 M                                              Deutsche winterization                     $320,000
                                                                                           Equipment
      Total                                           $24.7 M                                             VTA Short-path distillation                $225,000

      Shares outstanding                              14.0 M                                              Nexus Greenhouses (27, 000 ft2)           $1,596,000
                                                                                           Total                                                    $21,561,000

PRIVATE AND CONFIDENTIAL        |   14                                                                            EXKA 2021 | Cannabis Innovation, Genetics & Extraction
We focus on excellence           We strive to create and share      We spare no effort to adapt to
                           in everything that we do            knowledge and to better          the budding cannabis industry
                            and aim at developing          understand the science that will      by developing materials and
                           products and services of         lead to better quality products     methods that are best suited to
                             outstanding quality.                    and services.                this dynamic environment.

                                                              OUR VALUES
                                                                         Maxime Paris                Sébastien Désormeau
                                      CONNECT                            max@exka.com                sdesormeau@exka.com
                                                                         514 974 0099                514 910 5845

                                    DISCAIMER | This document and the information it contains is property of EXKA.
All the photography in this document is also licensed to EXKA by Photographer Karyn Dupuis. These images have been captured over the last ten months on
                   EXKA property for documentation and marketing purposes, they are an up-to-date portrait of our facilities and staff.

PRIVATE AND CONFIDENTIAL     |   15                                                                EXKA 2021 | Cannabis Innovation, Genetics & Extraction
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