December 2018 Investment Presentation - GrowX Global
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December 2018
Investment Presentation
GrowX Investment Guide – Dec 2018
DISCLAIMER 2
December 2018
General
This document is a presentation of general background information regarding the activities of GrowX Global “GrowX”. The information contained in this presentation is derived solely from publicly available information concerning
GrowX and does not purport to be all inclusive or to contain all of the information that an investor may require in order to evaluate whether to make an investment in GrowX. Information in this document is current as of December
4, 2018.
This presentation does not constitute or form part of any offer or invitation to the public for the sale or purchase of securities nor shall it or any part of it form the basis or be relied upon in connection with, or act as any inducement
to enter into, any contract or commitment whatsoever. Recipients of this presentation who are considering acquiring securities of GrowX are reminded that any such purchase or subscription must not be made on the basis of the
information contained in this presentation.The contents of this presentation are not to be construed as legal, financial or tax advice. Each prospective investor should contact his, her or its own legal advisor, independent financial
advisor or tax advisor for legal, financial and tax advice.
No representation or warranty, express or implied, is made or given by or on behalf of GrowX or any of its subsidiaries or any of the directors, officers or employees of such entities as to the accuracy, completeness or fairness of
the information or opinions contained in this presentation and no responsibility or liability is accepted by any person for such information or opinions. In furnishing this presentation, GrowX does not undertake or agree to any
obligation to provide any additional information or to update this presentation or to correct any inaccuracies in, or omissions from, this presentation that may become apparent. No person has been authorized to give any
information or make any representations other than those contained in this presentation and, if given and/or made, such information or representations must not be relied upon as having been so authorized. The information and
opinions contained in this presentation are provided as of the date of this presentation. In this presentation, all amounts are in Canadian dollars unless otherwise indicated.
Forward-Looking Statements
This presentation contains forward-looking statements regarding GrowX. Forward-looking statements are statements that relate to future events or future financial performance. In some cases, you can identify forward-looking
statements by the use of terminology such as "may", "should", "intend", "expect", "plan", "anticipate", "believe", "estimate", "project", "predict", "potential", or "continue" or the negative of these terms or other comparable
terminology. These statements speak only as of the date of this presentation. This presentation also contains financial outlooks ("Outlooks") within the meaning of applicable securities laws. The Outlooks have been prepared by
our management to provide an outlook of our activities and results and may not be appropriate for other purposes. The Outlooks have been prepared based on a number of assumptions. The actual results of operations of GrowX
and the resulting financial results may vary from the amounts set forth herein, and such variation may be material. Management believes that the Outlooks have been prepared on a reasonable basis, reflecting management's
best estimates and judgments. Any Outlooks in this presentation are made as of the date of this presentation and are based upon the information available to us as of that date. Examples of forward-looking statements in this
presentation include statements pertaining to, among other things: the expected legalization of recreational cannabis use and the anticipated legal framework for sales of recreational cannabis; GrowX’s plans to develop
independent marketing and sales strategies for the medical and recreational markets; the potential market for cannabis consumption following legalization of recreational use cannabis; the potential legal framework for the
Canadian retail cannabis market; GrowX’s exploration of integration into retail sales; the potential effect of retail expansion on sales and sales costs; the competitiveness of GrowX’s per gram production costs; GrowX’s financial
projections for the future; GrowX’s intention to enter into relationships with doctors and clinic aggregator services that refer patients to licensed cannabis producers; and the future importance of relationships with retail pharmacy
chains.
Material assumptions supporting these forward-looking statements include, among other things: that recreational cannabis will be legalized and legalization will allow sales through retail cannabis shops and pharmacies;
assumptions regarding the number of consumers in the recreational use cannabis market, the consumption of such users, and the retail price of recreational use cannabis; that increasing the scale of GrowX’s operations will
reduce its per gram production costs to a level that will be competitive with the industry’s lowest cost producers; assumptions regarding the amount of cannabis that can be produced per square foot, the expected selling price of
such cannabis and GrowX’s timeline for the construction of its production facility; that we will be able to obtain any necessary financing on acceptable terms; and assumptions regarding our management team's ability to
implement our business plan, and general economic and financial market conditions.
Forward-looking statements are only predictions and involve known and unknown risks, uncertainties and other factors, including risks related to: regulatory risks; changes in laws, regulations and guidelines; reliance on GrowX’s
license from Health Canada; approval of additional production space from Health Canada; limited ability to market cannabis products; GrowX’s limited operating history; reliance on a single production facility; reliance on current
management; failure to complete proposed expansion program; failure to secure additional financing; potential lack of profitability; competition; agricultural business risks; rising energy costs; transportation costs and disruptions;
unfavourable consumer perception of cannabis; product liability; shelf life of inventory; product recalls; failure to develop and market new products; reliance on key inputs; dependence on suppliers and skilled labour; limitations
on sales forecasting; variable revenues and earnings; operating risk and insurance coverage; ability to manage growth; litigation; share price fluctuations; lack of dividends; limited market for shares of GrowX; cyber security risks;
environmental and employee health and safety regulations; and other factors beyond our control. These risks, as well as risks that we cannot currently anticipate, could cause our actual results, levels of activity or performance to
be materially different from any future results, levels of activity or performance expressed or implied by the forward-looking statements in this presentation. Although we believe that the expectations reflected in the forward-
looking statements are reasonable, we cannot guarantee future results, levels of activity or performance. Except as required by applicable law, including applicable securities laws, we do not intend to update any of the forward-
looking statements to conform these statements to actual results.
GrowX Investment Guide – Dec 2018
3
Investment
Through our joint venture with Agro-Greens, GrowX Global is a
Licensed Producer under the Cannabis Act. The company’s
operation is founded upon integrity, quality and consistent
incremental growth.
Substantial Growth Potential Strong Government Relationships
Strategic International Partnerships Global Market Exposure
Qualified Executive Team Attractive Valuation
GrowX Investment Guide – Dec 2018
The GrowX Opportunity 4
Early Stage Licensed Producer at an Attractive Valuation
GrowX - A BC based producer that has entered into a joint venture for an
‘additional site’ application with Agro-Greens Natural Products, a Health
Canada Licensed Producer in Saskatchewan.
Health Canada Licensing - With its Agro-Greens JV, GrowX was able to
streamline the application process. As per the terms of the JV, upon build-out
GrowX will be a 100% separate entity with a License to produce and sell
cannabis.
Industry Benchmark - The Company is building a state-of-the-art
production facility in Mission, B.C. Phase 1 will consist of 250k sq. ft. of
cultivation space and a 60k sq. ft. ‘head house’.
Facility - GrowX’s industry-first facility is near completion and will expedite
Health Canada’s approval of the Company’s License to produce and sell.
Upon completion the facility will transition into an advanced propagation
facility for both GrowX and third-party organizations.
Expansion - GrowX’s 3-phase plan will allow for 882K sq. ft. of
sophisticated medical cannabis production operations, a state of the art lab
and an innovative extraction facility.
GrowX is uniquely positioned within the Cannabis Act applicant community due to the company’s decades of experience in operations,
collective law enforcement experience, its intimate understanding of the forces guiding the public policy behind the cannabis file, and a
devotion to health and safety in regards to production and distribution.
GrowX Investment Guide – Dec 2018
5
The GrowX Difference
GrowX Investment Guide – Oct 2018
The Israel Opportunity 6
International Expansion
• GrowX has a definitive agreement with Israel based UNIVO Pharmaceutical. UNIVO is a Licensed
Producer with multiple Medical Cannabis Licenses issued by the Government of Israel.
• The JV will produce and distribute medical grade Cannabis through its operations in Israel to
European and Asian markets.
• GrowX will have exclusive rights to UNIVO’s R&D lab and receive exclusive rights for a period of 5
years to any pharmaceutical products, Cannabis products and Cannabis strains developed by
UNIVO for Canada.
• UNIVO will provide up to 258k sq. ft. of growing canopy and access to a 54k sq. ft. production
centre.
• GrowX and UNIVO will focus on the Global Pharmacy Network and Israeli Markets. In addition the
JV will work towards the development and breakthrough of Medical Cannabis Formulations to
meet a wide range of medical needs.
• Under the direction of GrowX Global, UNIVO will strategically participate in our coveted Opioid
study with the University of British Columbia.
GrowX Investment Guide – Dec 2018
The India Opportunity 7 International Expansion • In collaboration with UBC and UNIVO, GrowX is advancing our Opioid study to areas in India significantly effected by the opioid crisis. • GrowX will work with private hospitals in India to identify key populations, develop a strategic initiatives and implement solutions to help high risk individuals. • We are in discussions with medical universities in the area to form long-lasting partnerships and further enhance our understanding of the crisis facing hundreds of millions people across the country. • Furthermore, GrowX is working towards a definitive agreement for medical cannabis cultivation, production and processing in India. • Extraction and production of the final product (creams, oils and tinctures) will be manufactured in India and exported to Countries where it is legal; providing GrowX a strategic distribution point for Europe and Asia. • Having a foothold in India will prove beneficial for local distribution as the product becomes legal throughout the country with a population of 1.3 Billion people. GrowX Investment Guide – Dec 2018
Pharmacy Network 8
The Opportunity
GrowX is negotiating with Canadian Independent Pharmacies to be the sole distributor of medical cannabis when the
Cannabis Act is changed to allow medical cannabis distribution through pharmacies.
The medical cannabis market was worth $4.7 billion in 2016
and is expected to grow $13.3 billion by 2025 in Canada
A secured pharmacy network of medical cannabis
distribution will offer users convenience, quality, assurance,
and safety.
Registered patients will grow to approximately 715,000 by
2020.
GrowX Investment Guide – Dec 2018
Technology Partnership 9
GrowX has teamed up with a leading technology company to launch the Cannabis industry's
first global technology living lab. This novel approach to developing technology related
solutions outside the spectrum of cultivation sets GrowX apart from other Cannabis Act
Licensed Producers.
The Process
1 Identify problems, value added
opportunities and strategic partnerships. 2 Develop solutions, prototype, test and
measure, and improve outcomes.
3 Commercialize and deploy winning
solutions globally. 4 License and syndicate internally and to
strategic partners and customers.
GrowX Investment Guide – Dec 2018UBC Partnership 10
Research and Innovation
GrowX has partnered with a leading University to implement an opioid replacement study that will consist of clinical trials, reliable results and solutions. With
the support of Dr. M-J Milloy, Assistant Professor and Ms. Lisa Slater, Associate Director, Development, UBC Faculty of Medicine, GrowX is funding research
to improve our understanding of the potential of Cannabis to prevent overdoses and promote recovery. This partnership will advance the mutual goal of
addressing one of the world’s most pressing public health crisis through research. As the only study of its kind in Canada, GrowX is well positioned to respond
to the Country’s distinctive health needs and create new knowledge and innovations for global dissemination. By supporting efforts to identify and develop
solutions to the opioid crisis, we aim to improve and sustain people’s health around the world.
Dr. M-J Milloy, PHD, Lead Researcher Dr. Shaul Mukhtar, Lead Researcher-Israel
Dr. M-J Milloy, PhD, is a Research Scientist with the BC Centre on Substance Use (BCCSU) Shaul has over 15 years’ experience in the pharmaceutical industry,
and Assistant Professor in the Division of AIDS, Department of Medicine at the University of notably with TEVA pharmaceuticals. He has vast experience in
British Columbia (UBC). Dr. Milloy is an infectious disease epidemiologist whose research Research and Development (R&D), quality assurance, business and
focuses on the interrelationships between illicit drugs and HIV/AIDS— including HIV treatment operational management. Shaul holds a PhD. in Pharmaceutical
patterns among people who use illicit drugs (PWUD) and adherence to HIV treatment among Sciences from the Hebrew University of Jerusalem, and Executive
incarcerated PWUD—as well as the effects of cannabis on people living with HIV/AIDS or MBA degree from Kellogg- Recanati Business School.
addiction. Dr. Milloy is the Principal Investigator of the AIDS Care Cohort to Evaluate Exposure
to Survival Services (ACCESS), an ongoing prospective cohort study funded by the US
National Institutes of Health. ACCESS currently follows approximately 1,000 individuals living
with HIV/AIDS who use illicit drugs. During his nine years with the BCCSU, Dr. Milloy has
authored more than 80 articles on topics that include the impacts of homelessness and
incarceration on HIV treatment outcomes; patterns of non-fatal and fatal overdose; and the
impact of Insite, North America’s first medically supervised injecting facility. Dr. Milloy has won
several awards of merit, including the 2011 Bisby Fellowship from the Canadian Institutes of
Health Research.
GrowX Investment Guide – Dec 201811
The Right Team The Right Values
• GrowX is headed by a former high ranking commissioned
RCMP officer, Jas Basi, who later moved into executive
1
positions in multinational corporations is an expert in QUALITY - Selecting growing techniques that will offer
cannabis operations. clients the utmost confidence in receiving a consistently
safe and effective product.
• Board Chair Kash Heed is a former police chief and BC
Solicitor General who has become one of Canada’s SECURITY - Building and operating the Gold Standard in
leading cannabis consultants.
• Company’s Master Grower Daniel Carvalho is a 10-year
veteran in agriculture, and an expert cannabis
2 manufacturing facilities, which serves as a model for
security, design, protocols and training across the
industry.
3
production, grow techniques, risk mitigation and COMMUNITY - Working with our host municipality and
environmental compliance. the surrounding region to establish long-term strategic
partnerships, demonstrate a record of economic
• Our proposed state-of-the-art lab will afford GrowX the contribution and serve as a stable source of local job
ability to test all products accordingly to Health Canada’s creation.
current and proposed guidelines.
4
LONGEVITY - Adhering to an approach to the business
that will ensure sustainability and commitment throughout
• The facility will be structured to accommodate for future the evolution of the Canadian and Global cannabis
growth into extraction, production, sales and distribution markets.
of edibles.
• The current land configuration allows for 882,000 square
feet of greenhouse production space and a 60,000
square foot head house.
GrowX Investment Guide – Dec 2018Sales & Marketing 12
Broad-based Market Strategy
GrowX will utilize strategic market partnerships to develop a
sustainable sales strategy. Key relationships with Health
Professionals, Medical Clinics, Pharmacists, Retailers and
Government will provide us consistent sales and distribution. We
plan to develop partnerships in all Countries in which our product
can be legally distributed for medical and recreational purposes.
GrowX will establish a presence at all relevant cannabis
conventions and health care symposiums to create awareness
and network with allied professionals.
To maximize shareholder value, GrowX is actively exploring
options for vertical integration across Canada. Our cross-country
strategy of integration will ensure GrowX maintains a strong
footprint across the Cannabis sector.
GrowX Investment Guide – Dec 2018The Agro-Greens Agreement 13
Additional Site License Allows GrowX to Begin Production in Q1 2019
Additional Site License Breakdown
• GrowX has a joint venture agreement with Agro-Greens Natural Products to expand
• Cost - $2M + Warrants
operations through an ‘additional site licence’ at the Mission B.C. location. The Agreement
• $1M due at sale of first crop
provides GrowX 99% ownership and Agro 1%.
• $1M due at sale of second crop
• $500k of warrants based on the
• Agro’s 1% ownership will be transferred to GrowX upon cultivation of first crop and
company valuation at the time of first
issuance of a license to sell. At this point, GrowX will become a 100% solely owned
crop sale
Licensed Producer with the ability to cultivate and sell.
• With construction underway, GrowX intends to be in production in Q1 of 2019
• The ability to fast-track the licensing process and rapidly expand allows GrowX to better
meet the supply demands of the recreational and medical market and provides enhanced
shareholder value. GrowX intends to launch our pilot cultivation facility in Q1 2019 to
expedite the company’s cultivation and sales license.
Images taken from Agro-Greens Facility
GrowX Investment Guide – Dec 201814
Production Facility
GrowX Investment Guide – Oct 201815
Production
The Mission Facility
GrowX’s Phase 1 operation will consist of 250,000 square feet of greenhouse space for
initial cultivation. Located on 27 acres just outside of Mission B.C., the property provides an
ideal growing environment for both quality medical cannabis production and security.
Purchased with scalability in mind, the property will allow up to a total of 882,000 square feet
of cultivation space.
Having received go-head from regional bodies (FVRD, RCMP, Fire) GrowX has begun pre-
construction of our state of the art production facility. Growing and extracting equipment,
advanced trimming and drying equipment, and an innovative control system that integrates
irrigating, lighting, and cooling will ensure GrowX is known as the benchmark Licensed
Producer in Canada.
GrowX’s industry-first facility will expedite Health Canada’s approval of the Company’s
License to Cultivate and Sell. Upon completion of phase 1, the initial facility will transition
into a secure advanced propagation facility for both GrowX and third-party organizations.
The facility will consist of 4 separate cultivation rooms available for testing on growing
techniques, strain development, lighting, and technology advancement.
GrowX Investment Guide – Oct 2018
•16
Production - Initial Site
Completion - Q1 2019
Dry Bud Production – 605,102 g/year
Sale Price = $5/gram
Year 1 Revenue = $3,025,512*
*Based on $5 per gram
These projections constitute “forward looking information” and a
“financial outlook” for the purposes of securities laws and are subject to
the risk factors and disclaimers set forth on Page 2 of this presentation.
GrowX Investment Guide – Dec 2018Phase 1 Production 17
250k Sq. Ft.
• Total annual product grown: 33,177 kg (Phase 1, 250k sq. ft.)
• Usable product 75%
• Year 1 capacity 60%
Based on expert analysis from Master Grower and Greenhouse supplier
Predicted Usable Product Phase 1 (First full year of production)
• Oil Extract – 1,492 kg per year (Price $20/gram) Phase 1 Production, By the Numbers
• Oils account for 10% of total usable product Grow Tables per 250,000 sq. ft. 1,620
• Dry Bud – 13,436 kg per year (Price $5/gram) Number of plants per table 80
Total plants per crop 129,600
Grams grown per plant 64
Number of crops per year 4
Grams grown per year 33,177,600
Usable Product (75%) 24,883,200
Phase 2-3
Phases 2-3 implementation expected in Year 2: Additional 632,000 sq. ft. of cultivation
space
Future Expansion
GrowX has five year option to purchase neighbouring property for $1.6M. Adding
an additional 915,000 sq. ft. of cultivation space
GrowX Investment Guide – Dec 201818
Financial Projections - 250k Sq. Ft.
Kilograms Grown Per Year
Dry Bud Production – 13,436 kg per year 89,759 89,579
90000
Sale price = $5/gram
Year 1 revenue = $67,184,740
64,696
Oil Extract – 1,492 kg per year 67500
Sale price = $20 per gram
Year 1 revenue = $29,859,840
45000
39,813
• 2018 – Phase 1 – 60% Capacity
• 2019 – Phase 1 – 100% Capacity, Phase 2 - 60%
• 2020 – Phase 1 – 100% Capacity, Phase 2 -100%, Phase 3 -60%
• 2021 – Phase 1 – 100% Capacity, Phase 2 -100%, Phase 3 -100% 22500
• 2020 – Phase 1 – 100% Capacity, Phase 2 -100%, Phase 3- 100% 14,929
0
*Each phase represents an additional 250k sq. ft. of production space Year 1 Year 2 Year 3 Year 4 Year 5
** Revenue based on first full year of production
These projections constitute “forward looking information” and a
“financial outlook” for the purposes of securities laws and are subject to
the risk factors and disclaimers set forth on Page 2 of this presentation.
GrowX Investment Guide – Dec 2018Executive Team 19
GrowX
Jas Basi Marc Bains
Chief Executive Officer & Co-Founder Vice President Business Development
Following a distinguished 26-year career within the RCMP, Jas’s extensive expertise on cannabis trafficking, Marc has successfully worked with multiple start-ups developing strategic
manufacturing and cultivation is sought across Canada’s law enforcement and legal communities. During the latter business and operating plans. His diverse experience in marketing, sales,
strategy and business development will be critical to GrowX’s efforts to
part of his career, Jas became a Unit Commander and was responsible for over 350 employees and an operating
establish itself with both customers and the investment community. Marc’s
budget of $75M. Jas entered the world of business with a focus on management, operational oversight, security
ability to assess problems and develop strategic solutions based on detailed
design and ethical leadership. Not being one to sit around after retirement, Jas took an offer with engineering giant analysis bodes well for GrowX as the company advances through the
Solaris, as a Manager of Operations and Business Development. At Solaris, Jas analyzed and developed budgets, changing cannabis landscape.
set new standards for HR and established relationships with clients and the Government. Following his success at
Solaris, Jas was recruited by ABS Electric, where he utilized his experience and contacts to increase company
revenue 7x. Jas’s diverse set of experience, skills, and knowledge are valuable assets within the scope of GrowX .
Kash Heed Jamie Lewin
Chief Operating Officer & Co-Founder Chief Financial Officer
With over 36 years of experience in law enforcement and public service, Kash has held high profile commands in Jamie is a CPA with a degree in Law and an MBA in Financial Management.
the field of drug and gang enforcement in Vancouver. His dedication and commitment to law enforcement earned He has 20 years of progressive experience and responsibility in accounting,
him the position of Chief Constable of the West Vancouver Police Department in 2007. In 2009, Kash was elected financial analysis & planning, financial management, and business
administration. During that time, Jamie has specialized in public venture
to the BC Legislative Assembly and was appointed as the Minister of Public Safety and Solicitor General. He holds
companies, alternate energy, investment, mining, technology and
bachelor and master degrees from Simon Fraser University, is a published author, an Adjunct Professor, and a
pharmaceuticals. Jamie was CFO at the Janda Group, Vanc
strong advocate for smarter approaches to law enforcement and drug policy. Kash is recognized as one of the Pharmaceuticals, Abenteuer Resources, and was Controller at Phoenix
preeminent authorities on medical cannabis, has presented to delegates around the world and is the subject of Copper.
several news items and documentaries.
GrowX Investment Guide – Dec 2018Board of Directors
20
GrowX
Dr. Moira Stilwell
Director
Dr. Moira Stilwell is a Nuclear Medicine Physician and a Radiologist working with the health authorities of Vancouver Coastal and Fraser since
1995 where she also served as the Department Head for several years. Prior to that, she worked at the BC Women’s Hospital serving as co-
medical director of the Breast Health Program. In addition to her professional capacities, she has served as the Chair of the Canadian Breast
Cancer Foundation BC/Yukon Chapter, on the boards of the Canadian Breast Cancer Research Alliance and the BC Women’s Hospital
Foundation. In 2009, Dr. Stilwell was elected to the BC Legislature and served representing the constituents of Vancouver Langara for two Kash Heed
terms until 2017. She served as Minister of Social Development, Minister of Advanced Education and Labour Market Development,
Board Chair
Parliamentary Secretary for Industry, Research and Innovation, and Parliamentary Secretary to the Minister of Health, with a focus on Health
Innovation. In her second term as an elected member of the BC Legislature, she served as vice chair of the Cabinet Committee on Jobs and
Economic Growth and the Select Standing Committees for Health, Children and Youth.
Jas Basi
Loussine Kadian Director
Director
Lucy Kadian has been a managing contributor in both provincial and federal politics or over 25 years. She served as a bureaucrat in a range
of functions for Members of Parliament and Members of Legislature Assembly of BC. She was a Special Advisor for the Senior Federal
Minister of BC and was responsible for the Regional Office. She was the Administrator and Controller for a large agricultural group,
responsible for the financial management of eight companies. Prior to that, she was the Vice President of Administration and Technology and
also the Controller for a leading law firm in BC, and is a past director for the Canada Place Corporation.
GrowX Investment Guide – Dec 2018Board of Advisors 21
GrowX
Shafin Diamond Matthew Durrant
Advisor Advisor
Shafin launched his first company from his university dorm room at the age of 19. Since then, he’s launched Matt is an industry leader in Canada when it comes to cannabis cultivation. He has extensive
over 40 start-ups, in 24 different countries, generating over $100M in sales. His most recent success, Victory experience with ACMPR Licensed Producers and has worked with organizations across the
Square (VS), is a venture builder that builds start-ups in the web, mobile, gaming and film spaces. With a Country. Matt’s focus is on producing high quality cannabis at low cost. Furthermore, Matt
special focus on funding socially responsible companies, international start-ups and female founders. Shafin specializes in training and educating LP’s on maximizing quality and yield, processing techniques
has received numerous awards, with the most recent acknowledgements being: Prime Minister's Volunteer and risk mitigation. With an eye on the future, Matt will brings valuable insight to GrowX and will be
Award 2015, National EY Entrepreneur Of The Year Special Citation recipient for Advancing Entrepreneurship
an integral part of the team.
2015, EY Technology Entrepreneur of the Year 2015, Startup Canada Award for Entrepreneur Support,
Canadian Angel Investor of the Year 2015, BC Angel Investor of the Year 2014, BIV’s Top Forty Under 40, and
SBBC Best Company in BC.
Jeremy Volkins Tom Baumann
Advisor Advisor
Jeremy Volkins is a Principal Operator at Agro-Greens Natural Products Ltd., an ACMPR Licensed Producer of Tom Baumann is an Associate Professor at the University of the Fraser Valley and Proprietor of
medical cannabis in Canada. Jeremy’s family-owned and operated production facility is state-of-art and adheres Baumann Nursery. Tom has an MSc. in Horticulture from UBC and a Master’s in Agriculture from
to strict protocols on cultivating and processing product to insure it meets the highest standards in the world. Justus von Liebig University in GieBen Germany. With over 27 years of experience, Tom
His innovation combined with in-depth agricultural experience enhances Agro’s ability to cultivate quality specializes in greenhouse operations, field trials, research and consulting. He has worked
medical cannabis. In 2016 Agro-Greens provided advice on the design of a new legislative and regulatory extensively with various Licensed Producers to assist in building, operating and expanding
framework for legal access to cannabis, consistent with the Government's commitment to "legalize, regulate, operations. Tom has been teaching at the University of the Fraser Valley (“UFV”) since 1991 and
and restrict access.” Specifically, Agro’s focus was and continues to be, on strategies to overcome opioid has been in charge of UFV’s greenhouse and field operations in Chilliwack, Langley and
addiction. Jeremy and his team will provide GrowX with additional insight into Health Canada requirements, Qualicum. Tom specializes in cannabis and has previously served as the President of Expert
standards and know-how. Working with an already established AMCPR Licensed Producer affords GrowX the Agriculture Team Ltd. (“EAT”), a research and consulting company that provides expertise to
ability to proactively anticipate and overcome common hurdles faced by other Licensed Producers. GrowX numerous growers in the Fraser Valley. Furthermore, Tom has refined his skills while working with
believes a long-term relationship with Agro-Greens will provide on-going synergies in the area’s of cultivation, both Tilray and Emerald Health Therapeutics.
processing and distribution for both recreational and medical cannabis. GrowX Investment Guide – Dec 201822
Master Grower
Daniel Carvalho
Master Grower
Daniel has been in the Cannabis Industry for over 10 years. He was a leading
Consultant for MediGrow and provided expertise and support in installation,
implementation and growing technologies in greenhouses and indoor facilities.
Daniel has been the Master Grower for a number of MMAR Licensed Producers. He
has in-depth experience in both large and small grows. Daniel is well versed in
lighting, growing techniques, temperature control, irrigation and automation. As a
Master Grower, Daniel is driven to maximize production while keeping costs low
and maintaining a premium quality product. Daniel has developed a keen ability to
grow and recognize the needs of cannabis plants as they move through the
cultivation process. His experience has afforded him the ability to know if a plant will
have a problem long before it becomes a critical loss. Furthermore, Daniel has been
proactive and active when it comes to keeping up with various regulatory
processes. His experience in quality control and use of the most advanced
equipment for growing, HVAC and irrigation affords him the ability to mitigate risk
and avoid crop loss. Daniel will bring his wealth of knowledge and experience to
GrowX to ensure each plant grows with quality, integrity and safety.
GrowX Investment Guide – Dec 201823
MILESTONES
Feb 2018 - Health Canada Q1 2019 - GrowX anticipates our first trial
confirms review of Additional crop will be cultivated, inspected and
Site License and grants LP approved for sale.
status. Dec 2018 - GrowX signs
definitive agreement with
Israeli based UNIVO
Q2 2019 - License to
Pharmaceuticals
sell granted by Health
Canada.
Oct 17 2018 - Canadian
Recreational market set to Q1 2019 - 6,700 square
2019 - Construction
begin. foot initial structure to
underway on Phase 1
be completed and ready
Jan 2018 - Additional Site 250k sq. ft. of cultivation
Oct 2018 - GrowX signs strategic for production.
Licence application submitted space and 60k sq. ft.
through JV with Agro-Greens. LOI’s in India and Israel. UBC Opioid ‘head house’.
study begins.
GrowX Investment Guide – Dec 201824
In Partnership With
GrowX Investment Guide – Dec 201825
MARKET COMPARABLES
125
140
103
120
100
55
Millions
80
60 31
40 10 *
20
0
BlissCO Invictus Delta 9 GTEC GrowX
*As of Dec 4, 2018 - Pre-money valuation
GrowX Investment Guide – Dec 201826
Cap Table
GrowX Founders’ Shares 15,000,000 $300,000
Equity Financing
18,488,067 $2,773,210
(Private Round $0.15)
Offer: $0.30/Share
Current Equity Financing* Raise: Up to $10M
$0.45 Half Warrant
Founders Shares - Initial three year escrow, released as follows: (i) 10% on listing and (ii) 15% every six months thereafter
GrowX Investment Guide – Dec 201827
OFFERING
Summary
The Company is seeking up to $10 million at
a $10 million valuation in GrowX Global.*
GrowX is a forward-thinking company with our
Use of Proceeds stakeholder’s best interests in mind. We look forward to
developing long lasting relationships to not only carry us
Head House Construction $1,500,000 into the future of cannabis, but to be the future of
Initial Cultivation Facility* $4,500,000 cannabis around the world.
Facility Equipment $1,000,000
Working Capital $2,000,000
Vertical Integration $1,000,000
Total $10,000,000
*Includes 6,700 sq. ft. temporary structure to be completed in Q1 2019
*Pre-money valuation
GrowX Investment Guide – Dec 201828
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