Investor Presentation - Medical Cannabis Resource Group May 2019 - MCRG
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May 2019
Medical Cannabis Resource Group
Investor Presentation
Page 1
Investment Highlights
Medical Cannabis Resource Group Limited (“MCRG”) is a vertically integrated medical cannabis and hemp
company operating a diverse group of business units in the cannabis space since 2015
Cannabis Cultivation Pet Food
Processing &
Hemp Cultivation
Refinement
Page 2
Investment Highlights
Data-Driven Experienced
Through the administration of the MCRG is supported by its team’s vast
company’s business units, MCRG expertise with over 10 years of
accumulates vast pools of knowledge experience and involvement in the
and data that is used to generate cannabis sector
valuable insight in the cannabis
industry, therefore establishing MCRG MCRG itself was founded in 2015, but
as a uniquely data-driven company the MCRG team began successfully
developing one of the first Licensed
Producer licenses in 2013 and has been
part of the Canadian story ever since
Page 3
Organizational Structure
Medical Cannabis Resource Group
Cultivation & Processing &
Hemp Pet Food
Sales Refinement
BHS Canada Botanic Reelax Pet
35% 50%
Greenhouses Ltd. Derivatives Inc. Sciences Inc.
Grand Bend
90%
Cannabis Company
Braco Estates &
Organic Grow
Page 4
Market Strategy
MCRG business strategy revolves around targeting markets.
Most Licensed Producers in the cannabis sector focus entirely on
maximizing their cultivation and pushing as much product as possible.
Every single business we are involved in is a result of identifying a tangible market and
fulfilling our and their needs by pre-selling our supply of products to these identified markets
Hemp Cultivation Pet Food
• MCRG recognized as gap in the market where as soon as recreational • The pet food industry is extremely saturated and commoditized, but a
cannabis was legalized, companies abandoned the medical market and potential market has been identified by MCRG with the rising popularity
rushed to produce high THC content cannabis of CBD as a health supplement
• Medical cannabis products, particularly CBD, are highly scarce in Canada • MCRG undertook a comprehensive market research initiative to better
understand consumer preference for CBD in pet food and found that a
• As a result, MCRG is now chasing market by developing relationships
consistent product that relieves their pets of their symptoms and
with 6 different large-scale purchasers of CBD
ailments is universally sought for
• Canada Botanic Derivatives, MCRG’s hemp subsidiary, is in late-stage
• Reelax Pet Sciences Inc. was formed as a result, and pursuant to our
negotiations with a large credit-rated institution for 75% of its hemp
strategy we have already secured shelf-space and veterinarian
opportunity in multiple product forms
contacts for our planned 2019 and 2020 rollout
Page 5
Market Strategy
Data collected
through
empirical
research and
experience
Data Collection and Analysis
Value-Add
Leading Industry Insight
Page 6
Market Strategy
Data Collection and Analysis
Supercritical CO2 extraction applies
Data pressure and heat to the hemp
plant
Prolonged pressure and heat alters Ethanol extraction, despite higher
Data and can damage the molecular Insight residual content, preserves CBD
structure of CBD quality much better
Residual content can be removed
Insight through distillation to reach 99.7%
purity for CBD classification
Leading Industry Insight
Page 7
BHS Greenhouses Inc.
Overview of Business Unit
• BHS Greenhouses Inc. is MCRG’s first venture into BHS Site – Simcoe, Ontario
cannabis cultivation
• MCRG currently has a 35% stake in the company,
which owns a fully built 8,000 square foot cannabis
facility in Simcoe, Ontario
• The facility has a yearly capacity of 1,200 kilograms of
dried cannabis flower
Partnership with Master Grower
• The company is operated by Joel Capin, who holds
the rest of the 65% stake under Purefarm Holdings
35% Purefarm
• The partnership between MCRG and Mr. Capin has Holdings
significantly sped up the process of acquiring Medical Cannabis
licensing and developing a viable cultivation strategy 65% Resource Group
• BHS has filed its Licensed Producer application and is
planning on beginning operations January 2020
Page 8Grand Bend Cannabis Company
Overview of Business Unit
11,520 square feet • Grand Bend Cannabis Company is MCRG’s second cannabis cultivation
operation for which MCRG currently has a 90% stake
• The 15,712 square foot facility has a 11,520 square foot harvest area that
employs vertical farming which effectively triples the area under canopy to
a total of 34,560 square feet
11,520 square feet • The facility has a yearly capacity of 3,600 kilograms of dried cannabis flower
• Operations are currently scheduled to begin in Q2 2020
Aeroponic Growing System
• The facility uses an aeroponic growing system developed by AVID Growing
Systems to vertically grow cannabis plants without a growth medium
11,520 square feet • This system allows Grand Bend Cannabis Company to have full access to
the whole plant from root to flower
• Leads to lower water and fertilizer usage, faster germination times, higher
survival rates, and most importantly reduces the likelihood of micro-
contamination by 75% which reduces the need to radiate the end product
Page 9Braco Estates & Organic Grow
Overview of Braco Estates Blue Mountains, Jamaica
• Braco Estates Limited is a company incorporated in Jamaica
that owns 2,600 acres of land in the Blue Mountains region
• The company has a license to develop 5 acres of land for the use
of cannabis cultivation
• Braco Estates has built 3 acres of hybrid greenhouse for which
MCRG has signed an 5-year agreement to purchase 1,000
kilograms of cannabis oil per year
• MCRG trained the company to become GMP compliant, and we
are currently planning the export strategy for Braco
Overview of Organic Grow
• Dr. Daniel Zavitz, Senior Research Scientist at MCRG, is dedicating 5 acres of land to grow organic cannabis
• The land has never been contaminated with any inorganic chemical or pesticide
• MCRG plans to use these 5 acres of organic cannabis for tissue sampling
Page 10Canada Botanic Derivatives Inc.
Overview of Business Unit
• Canada Botanic Derivatives Inc. is MCRG’s first 50% MCRG Medz 50%
venture into growing industrial hemp
• A 3-year hemp offtake agreement has been signed
with independent large-scale agricultural growers in
south-western Ontario
Farmer 1 Farmer 2 Farmer 3
• The agreement covers 130 acres of land dedicated to
growing industrial hemp for the purpose of extracting
and isolating fully Canadian CBD
50 acres
60 acres
20 acres
• The total acreage will yield 292,500 lbs per year of
dried hemp flower in its first year of operations
• Canada Botanic Derivatives, the operating company
under which the agreement is signed, is owned by
MCRG (50%) and Medz Cannabis Inc. (50%) which will
provide funding for the joint company in its early
stages until revenues are earned 292,500 lbs of dried hemp flower
Page 11Reelax Pet Sciences Inc.
Reelax Pet Sciences Inc. is MCRG’s pet food division producing animal
supplements with CBD-infused hemp seed oil aimed at providing relief and symptom
management with the properties of CBD to pet owners and their animals.
Overview of Business Unit Product Line
• The company has begun production of its first
line of products, which includes separate animal
supplements for dogs, cats, and horses
• Each box unit contains 30 biscuits of varying
amounts of hemp seed oil depending on the
targeted animal
• The recipe includes all natural organic
ingredients in all three products, and the RRP: $28.95 RRP: $19.95 RRP: $79.95
biscuits have a remarkably long shelf-life CBD / biscuit: 2.5 mg CBD per biscuit: 1.5 mg CBD per biscuit: 10 mg
Biscuits / unit: 30 Biscuits per unit: 30 Biscuits per unit: 30
remaining fresh 8 months after production
Page 12Reelax Pet Sciences Inc.
Augmented Reality Distribution
• Reelax Pet Sciences Inc. fully owns an • The company is currently in the process of
Augmented Reality (“AR”) system that is establishing a relationship with a large distributor
currently implemented on its animal supplements with over 6,000 outlets in Canada
product line • Reelax will participate in wholesale tradeshows in
• The packaging of the supplements will trigger the Montreal in August and Toronto in September to
customer’s phone app to bring the still images to develop relationships with independent and
life and unfold a story experience to customers smaller chain stores
Analytics United Kingdom
• While the AR system works well as a marketing • Reelax’s latest initiative has been to develop a
tool for the pet supplements, it also contains strategy to enter the United Kingdom and
significant back-end analytics capability penetrate their pet food market
• The administrator of the system can request • The UK regulatory environment permits the use
information on user surveys, user emails, and and advertisement of CBD in consumer products
data on whether a user picked up or put down • MCRG UK is currently in the process of
any given product on the shelf developing relationships and its Europe strategy
Page 13Processing & Refinement
MCRG plans to process all of its cultivated premium hemp flower from Canada Botanic Derivatives through its
extraction partners by signing Tolling Agreements for the total of the biomass
• Greenleaf Production Inc. is a boutique processing and
extraction company based out of St. Thomas, Ontario, with
Greenleaf Production Inc. whom MCRG has developed a strong relationship
• Greenleaf is currently scheduled to take one third of MCRG’s
premium hemp flower to process
• NWN Scientific Inc. is a large-scale processor that has done work
for pharmaceutical companies like Pfizer and GlaxoSmithKline
NWN Scientific Inc. • The company specializes in delivering products that require
medical certification for products like topical creams
• NWN is currently scheduled to take two thirds of MCRG’s
premium hemp flower to process
Page 14Team
We believe that our team is ultimately what will lead us to succeed.
Creating a brand in the cannabis industry with longevity requires
a team that excels both individually and collectively.
At MCRG, our people and culture define the products that we deliver.
Steve Nelham – President and Co-Founder of MCRG
Steve was born in Toronto, Ontario, and has gained business experience working for companies such as Sprint Canada as well
as owning and managing his own Engineering business. Steve is very experienced in an ACMPR LP setup and he has in-depth
knowledge of the medical cannabis industry’s benefits and opportunities. He has personally managed an LP from inception to
completion and is one of the few people that have a comprehensive understanding of Health Canada’s legislated
requirements. Steve is currently listed as an ACMPR Security Cleared Responsible Person in Charge.
Ryan Kyle – CEO and Co-Founder of MCRG
Originally from Huron County, Ryan is an entrepreneur with business experience in real estate. He is very knowledgeable of the
cannabis industry and its process and products. As an entrepreneur, Ryan thrives on building relationships and establishing
networks. Ryan has established connections with doctors, business personnel, export market customers, as well as other LPs
in the area. As a recipient of many injuries in his part, Ryan personally understands the chronic pain individuals experience and is
determined to help doctors and patients better understand the value of cannabinoid medicines.
Page 15Team
Ken Zardo – President of Reelax Pet Sciences Inc. & Major Accounts
Ken has spent the last two decades at the forefront of business consulting. With 25 years of innovative business leadership
experience, he is a visionary, strategist and business entrepreneur. Ken’s overall success comes from working with long and
short-term projects with Public and Private companies within North America, contributing structure and process so groups are
able to function effectively and make high-quality decisions. Previous to MCRG, Ken was successful in launching a service
business for a private equity firm to become their largest portfolio reaching over $200 Million within 3 years of inception.
Phillip James - CFO
With over 20 years of experience in global investments, real estate, business planning, financial analysis and M&A, Philip has help
senior management and executive positions across Europe, Asia and the USA. Before joining MCRG, Philip had spent the
previous 5 years working for Bridge Capital LLC, a USA based Private Investment House. His roles included Group Asset
Director and CEO of Bridge EB-5 Investments where he was responsible for over $1 billion in Real Estate development projects
across the USA and the responsible officer for two USCIS approved Regional Centers. Philip worked on multiple bridge and
mezzanine loans globally (including loans to the medical cannabis industry) and was Head of European Operations.
Dr. Daniel Zavitz – Senior Research Scientist
Daniel has over 30 years experience teaching the sciences in tertiary and secondary educational institutions and over 20 years
of laboratory research experience in Physical and Analytical Chemistry. His passion for chemistry has been apparent
throughout his career, which includes receiving a Ph.D in Physical Chemistry from the University of Illinois in 2011. Having
published numerous papers and had extensive involvement in ensuring health and safety standards and quality assurance
practices at his laboratories, Daniel brings a vast wealth of scientific and production knowledge to the cannabis industry.
Page 16Team
Thomas Kofman – Private Equity Partner & Financial Advisor
Tom has over 30 years of experience in Capital Markets on both the debt and equity side. Tom co-founded and ran M Partners, a
full service institutional investment bank for the last 13 years. The bank has participated in over $5 billion dollars of
transactions across the globe in numerous verticals since its inception. Through M Partners, the principals initiated many
merchant banking transactions including one of the first public companies in the medical cannabis space in Canada (current
market cap above $4 billion).
Warren Smulowitz – Private Equity Partner & Financial Advisor
Warren led a Wealth Management and Investment Banking practice at the Bank of Montreal from 2013 to 2018 before partnering
with Tom to found Birch + Bond. He specialized in a hybrid investment banking platform while concentrating on alternative
asset allocations, private equity investments, cash management and investment due diligence. Previously Warren consulted
for a large multi-billion dollar European family office where he assisted their investment banking platform in North America and
was responsible for acquisitions, dispositions, asset management, due diligence, and debt and equity opportunities.
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