NOVEMBER 2019 TSXV: VGW, OTCQX:VGWCF - VALENSGROWORKS.COM - The Valens Company
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NOVEMBER 2019
TSXV: VGW, OTCQX:VGWCF
VALENSGROWORKS.COM
OUR MISSION
Our mission is to become the
world’s most trusted partner for
best-in-class cannabis extraction,
testing, formulations and
product development and
manufactuing.
Valens | 2
NOTICE TO RECIPIENT This presentation (the “Presentation”) of Valens GroWorks Corp. (the “Company”) is an overview only and does not contain all the information that a prospective investor may require to make investment decisions. This Presentation is for information purposes only and does not consti- tute an offer to sell or a solicitation to buy any securities of the Company. In making an investment decision, investors must rely on their own examination of the Company, including the merits and risks involved. FORWARD LOOKING STATEMENTS This Presentation contains forward-looking statements and forward-looking information. Often, but not always, forward-looking statements can be identified by the use of words or phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking statements involve known and unknown words such as “plans”, “expects” or “does not expect”, “is expected”, “estimates”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements and information. Examples of such statements include: (A) the financial forecast of the Company; (B) the intention to grow the business and operations of the Company; (C) anticipated timing for the availability of the Company’s products to market and expected sale prices; (D) expected growth in the number of users of medical and recreational marijuana anticipated; and (E) the expansion of the Company’s business into other revenue streams. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking state- ments contained in this Presentation. Such forward-looking statements are based on a number of assumptions which may prove to be incorrect, including, but not limited to: expectations regarding the ability of the Company to raise capital and grow through acquisitions; growth strategy, joint venture, other commercial opportunities and the ability of the Company to carry out its stated work program; and expected sources and uses of capital. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materi- ally from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The for- ward-looking statements and information contained in this Presentation are expressly qualified in their entirety by this cautionary statement. The forward-looking statements and information included in this Presentation are made as of the date of this Presentation and the Company assumes no obligation to update such forward-looking statements to reflect new information, subsequent events or otherwise unless required by applicable securities legislation. TSXV:VGW, OTC:VGWCF Valens | 3
CAUTIONARY NOTE REGARDING FUTURE-ORIENTED FINANCIAL INFORMATION To the extent any forward-looking statement in this Presentation constitutes “future-oriented financial information” or “financial outlooks” with- in the meaning of applicable Canadian securities laws, such information is being provided to demonstrate the anticipated market penetration and the reader is cautioned that this information may not be appropriate for any other purpose and the reader should not place undue reliance on such future-oriented financial information and financial outlooks. Future-oriented financial information and financial outlooks, as with for- ward-looking statements generally, are, without limitation, based on the assumptions and subject to risks as set out above under the heading “Forward-Looking Statements”. The Company’s actual financial position and results of operations may differ materially from management’s current expectations and, as a result, the Company’s revenue and expenses may differ materially from the revenue and expenses profiles pro- vided in this presentation. Such information is presented for illustrative purposes only and may not be an indication of the Company’s actual financial position or results of operations. THIRD PARTY INFORMATION This Presentation includes market and industry data which was obtained from various publicly available sources and other sources believed by the Company to be true. Although the Company believes it to be reliable, the Company has not independently verified any of the data from third-party sources referred to in this presentation, or analyzed or verified the underlying reports relied upon or referred to by such sources, or ascertained the underlying assumptions relied upon by such sources. The Company does not make any representation as to the accuracy of such information. USE OF NON-GAAP MEASURES Adjusted EBITDA is a non-GAAP measure used by management that does not have any standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other companies. Management defines adjusted EBITDA as loss and comprehensive loss from operations, as reported, before interest, tax, depreciation and amortization, and adjusted for removing share-based payments, unrealized gains and losses from short term investments and other one-time and non-cash items including impairment losses. Management believes adjusted EBITDA is a useful financial metric to assess its operating performance on an adjusted basis as described above. A description of these financial measures, including a reconciliation of such measures, to the extent possible, against the most directly comparable IFRS measure, can be found at page 8 of the management’s discussion and analysis of the Company for the three and six month period ended August 31, 2019. TSXV:VGW, OTC:VGWCF Valens | 4
BEST POSITIONED TODAY,
ACCELERATING INTO TOMORROW
EXTRACTION AND NEXT GENERATION PRODUCT CAPABILITIES DRIVE OUR ADVANTAGE
TODAY TOMORROW
• Largest third-party extraction capac- • Largest third-party cannabis product
ity with 425,000 KG and more than development and manufacturing company
240,000 KG in contracted demand
from customers for 2020 • Unique, IP based product technology
platform offering customized white label
• Extracting for $15B CAD in market cap services
with 10 contracts including 5 of the top
10 cannabis companies in Canada
• Trusted partner of various leading licensed
producers and CPG companies
• Broadest product and service offering
in the market
• Exportable business model to high value
• Low risk, capital efficient, high margin international markets
business
TSXV:VGW, OTC:VGWCF Valens | 5
OUR BELIEF
THE MARKET WILL BE DOMINATED BY OIL BASED PRODUCTS
29% 25% OIL BASED
PRODUCTS
53% 47%
71% 75%
FLOWER BASED
PRODUCTS
2016 2018 FUTURE
OTHER PRE ROLLS
VAPE PENS FLOWERS
20%
11%
EDIBLES
10% Source: Cowen Equity Research Report
(US Market Share)
*Valens forward-looking prediction in the
CONCENTRATES short-term based on market research
TSXV:VGW, OTC:VGWCF Valens | 6
VALENS IN THE VALUE CHAIN
UNLOCKING HIGHER MARGINS FOR CUSTOMERS
CULTIVATION
TESTING REQUIRED
EXTRACTION (VALENS LABS)
PURIFICATION
FORMULATION
PRODUCT BRANDING RETAIL
MANUFACTURING & SALES
TSXV:VGW, OTC:VGWCF Valens | 7
EXTRACTION
WHAT IS IT?
CRUDE
DRIED OIL OIL REFINMENT
CANNABIS (DISTILLATE/ISOLATE)
OIL OIL
OR WINTERIZATION
HEMP EXTRACTION
TSXV:VGW, OTC:VGWCF Valens | 8
EXPERTS IN EXTRACTION
DIVERSITY CREATES COMPETITIVE ADVANTAGE
LESS COMODITIZATION
Super/Sub
Ethanol Hydrocarbon Solvent-less Terpene
Critical CO2
Capsules Capsules Concentrates Rosin Add back for
Tinctures Tinctures Vapes Hash experience, flavour
Vapes Vapes Shatter/Wax Live Resin and smell
Edibles Topicals Full Spectrum
Beverages
Edibles
Others
ONE SIZE DOES NOT FIT ALL: HIGH QUALITY PRODUCTS NEED CUSTOMIZED EXTRACTION PROCESSES
TSXV:VGW, OTC:VGWCF Valens | 9
BUSINESS STRATEGY
DELIVERING SUSTAINABLY STRONG EBITDA MARGINS THROUGH THE CYCLE
TOL GLOBAL M DESIGNED TO
L PR ARKET REV
O ENUE TRANSITION
CES WHITE LABELING & FOR
SIN
G MUL
ATIO AS THE
N MARKET
EBITDA MARGIN
EVOLVES
HYRDO
CARBO
N/SOL
VENTL
ESS
ETHA
NOL
CO
2
• • •
• •
• • •
• •
• • •
•
TSXV:VGW, OTC:VGWCF Valens | 10EXTRACTION EXPERTISE FACILITATES
ROLL-OUT OF WHITE LABEL
EVOLUTION TO WHITE LABEL WELL UNDERWAY
WH
N ITE
C TIO LA
T RA BE
L
EX
2.2M VAPES
$50+ MILLION REVENUE
2+ YEARS
3+ YEARS
FULL ARAY OF
PRODUCTS
2.5M BEVERAGES
5 YEARS
+3 OTHERS 50+ OTHER
OPPORTUNITIES
CURRENTLY BEING
NEGOTIATED
HIGH QUALITY EXTRACTION NEXT GENERATION PRODUCT DEVELOPMENT
TSXV:VGW, OTC:VGWCF Valens | 11TESTING
WE ARE SETTING THE STANDARD
FIRST ISO 17025 ACCREDITED LAB
• Consistent use of validated methodologies
CAN PERFORM ANALYSES IN AS LITTLE AS 24 HOURS
• Positioning Valens as the go-to lab with turn arounds 4-5x faster than other leading labs
PUBLISHING FULLY VALIDATED, STANDARDIZED,
AND TURNKEY SOLUTIONS FOR THE GLOBAL CANNABIS INDUSTRY
• Global recognition for methodologies and putting Valens’ name at the forefront of analysis
ADDITIONAL REVENUE SOURCE THROUGH THIRD-PARTY LAB TESTING
• Consistent high margin revenue source, mandated by Health Canada
NAMED A “CENTER OF EXCELLENCE IN PLANT BASED SCIENCE” BY
TSXV:VGW, OTC:VGWCF Valens | 12FORMULATIONS
CUSTOMIZED USER EXPERIENCES NEED CUSTOMIZED PRODUCT FORMULATIONS
VALENS IS BUILDING A DIVERSE IP PORTFOLIO THAT SPANS
ACROSS ALL TYPES OF PRODUCTS AND SERVICES 100+ TERPENE FORMULATIONS
Beta Pinene Alpha Pinene
5% 3%
SORSE EMULSION Linalool
6.9%
Beta Caryophyllene
29.7%
CANNABINOID AND
TERPENE ISOLATION
Humulene
14.9%
PINEAPPLE
EXPRESS*
CONCENTRATES
FORMULATIONS
EXTRACTION Limonene
METHODOLOGIES 17.8% Mycrene
22.8%
TESTING
METHODOLOGIES *Example of the terpene
make-up of the cannabis strain,
Pineapple Express
TSXV:VGW, OTC:VGWCF Valens | 13FORMULATIONS
SORSE EMULSION TECHNOLOGY
• Shelf stable for over 2 years
• Zero cannabis taste, color or odor
• Provides effective, consistent dosing
• Lower dosage proven sufficient due to increase in
bioavailability when consumed
• Resistant to temperature change including boiling,
freezing and thawing
• Faster onset making it the safer and more trusted option.
Observed in 5-15 minutes versus normal 30 minutes – 2 hours.
• Faster offset making it feel exactly like an alcoholic beverage.
Observed in 45 minutes – 2 hours versus normal 4 – 8 hours.
• Proprietary formula, exclusive Canadian rights
WATER SOLUBILITY
ONSET
CURRENT OFFSET VALEN’S
PROBLEMS SMELL/TASTE
SOLUTIONS
CONSISTENCY
SHELF STABILITY
TSXV:VGW, OTC:VGWCF Valens | 143RD PARTY PRODUCT DEVELOPMENT & MANUFACTURING
THE FUTURE OF CANNABIS CONSUMPTION
CANNABIS 2.0
PHASE 1 PHASE 2
CURRENT
DECEMBER 2019 H2 2020
Tinctures Beverages Edibles
Two Piece Caps
Concentrates Topicals
Soft Gels
More Innovative
Vape Pens
Products...
Oral Sprays
TSXV:VGW, OTC:VGWCF Valens | 15FACILITY EXPANSION FOR PRODUCT DEVELOPMENT
IP BASED PRODUCTS TO STRENGTHEN COMPETITIVE ADVANTAGE AND MARGINS
TODAY H1 2020
230 CARION RD 230 CARION RD
EXTRACTION FOCUSED
CRUDE EXTRACTION WHITE LABEL FOCUSED
DISTILLATE CRUDE CAPSULES
FULL SPECTRUM DISTILLATE TINCTURES
ISOLATE FULL SPECTRUM VAPE GOODS
FORMULATION ISOLATE SPRAYS
EMULSION FORMULATION EDIBLES
EMULSION BEVERAGES
TOPICALS
MOST OUTPUT
LEAVING
MOST OUTPUT
AS BULK OIL
LEAVING AS A HIGHER
VALUE PRODUCT
TSXV:VGW, OTC:VGWCF Valens | 16ACTION PLAN
12 MONTH GOALS
DELIVER ON KELOWNA LAUNCH NEXT GLOBAL
EXISTING CONTRACTS EXPANSION GENERATION PRODUCTS EXPANSION
Optimize existing Speed to market to Differentiated product Target markets &
capacity to maximize maintain advantage offering opportunities that
margin maximize ROI
Build IP portfolio
Export globally
with EU GMP
certification
TSXV:VGW, OTC:VGWCF Valens | 17INTERNATIONAL EXPANSION
ADVANCED DISCUSSIONS IN KEY MARKETS GLOBALLY
EU
U N I T E D S TAT E S
COLUMBIA
GLOBAL
AUSTRALIA
MARKET GLOBAL MEDICIAL MARKET
ALONE ESTIMATED AT $190B
CURRENT AREAS OF INTEREST ANNUALLY IN 10-20 YEARS*
TSXV:VGW, OTC:VGWCF Valens | 18THE FUTURE OF EXTRACTORS
LEADING EXTRACTORS OF TOMORROW WILL NOT FOCUS ON INPUT CAPACITY
“ DISTILLATE CAPACITY
25,000 KG
(CURRENT)
“ “
CENTRIFUGAL PARTITION
CHROMATOGRAPHY
“
CAPACITY
8,000 KG
(H1 2020 PHASE 1)
BASE INGREDIENT FOR MAJORITY OF ISOLATE CANNABINOIDS AND REMOVE
OIL-BASED CANNABIS 2.0 CONSUMER PRODUCTS UNWANTEDS FROM FORMULAS
TSXV:VGW, OTC:VGWCF Valens | 19FINANCIALS & OUTLOOK
FIRMLY INTO OUR GROWTH PHASE; FOCUSED ON UNLOCKING SHAREHOLDER VALUE
CAPITALIZATION TABLE
641%
(In CAD$MM, Unless otherwise noted)
Share Price: As of 1st of November 2019 $2.98 16.5
Basic Shares O/S 123.9
Fully Diluted Shares O/S 128.9
Equity Value 384.1 9.8
Cash and Cash Equivalents 60.4 8.8
ITM Securities 8.7
Debt -
2.2 2.0
Enterprise Value 315.0
Q1 Q2 Q3 Q2 Q3
Average analyst estimates CY2019 CY2020 CY2021 Q1
Revenue 53.6 172.6 231.3 2.0
Adjusted EBITDA 21.0 78.4 111.0 REVENUE EBITDA
EPS $0.14 $0.37 $0.59 ($MM) ($MM)
Implied Multiples CY2019 CY2020 CY2021 26.6
Valens EV/ Adj EBITDA 15.0x 4.0x 2.8x
Extraction Peer Average / Adj EBITDA 49.3x 8.0x 4.7x
Valens Price/ EPS 21.3x c 8.0x 5.1x
Extraction Peer Average Price/ EPS 55.9x 14.4x 9.4x
8.5
Analyst Target Price
Average (5 Analysts) $8.85
1.8
Implied Return Potential 197% Q1 Q1 Q2 Q3
Source: Company Filings, S&P Capital IQ, As of November 1st, 2019; Shares outstanding based on most recent quarterly
financials and adjusted for share issuance transactions and other significant publicly disclosed transactions; presented as PRODUCTION
Treasury Stock Method (MM of g)
TSXV:VGW, OTC:VGWCF Valens | 20COMPETITIVE LANDSCAPE
NO. OF ANNOUNCED TOLL
PROCESSING AGREEMENTS 10 3 7 2
WITH LICENSED PRODUCERS
NO. OF ANNOUNCED TOLL
5 3 2 1
AGREEMENTS IN TOP 10*
CURRENT ANNUAL
425,000KG 30,000KG 300,000KG 56,000KG
EXTRACTION CAPACITY
TYPES OF EXTRACTION 5 2 1 1
ISO 17025 ACCREDITED
Y N N N
TESTING LAB
EU GMP CERTIFICATION PENDING N PENDING PENDING
ORGANIC CERTIFICATION Y N Y N
ENTERPRISE VALUE (CAD$)
315M 389M 608M 137M
Per Comp Table Pg. 23
NET INCOME (CAD$)
5.8M -6.5M 2.0M -6.4M
Latest Filed Quarter
*Companies ranked per market cap, as of November 1st 2019, Sourced from company presentations and news releases
TSXV:VGW, OTC:VGWCF Valens | 21INVESTMENT
HIGHLIGHTS
Largest extraction Most diverse
company in Canada. extraction capabilities.
At 425,000 KG of capacity, Valens is equipped to service Providing customers with the widest variety of extraction
Canadian demand as well as the global markets with techniques which allows them to produce the largest range
efficiency at scale.investment banks, private equity and of end products.
venture capital industry.
High High cashflow
margins. visibility.
Operating in one of the highest margin sub-sectors of the Substantial, reoccurring agreements with leading produc-
cannabis industry with low variability in costs. ers, including Canopy, Tilray, HEXO, TGOD and Organigram
providing a clear revenue and cashflow path.
Proprietary technology Customized
and processes. product development.
Decades of experience have resulted in best-in-class pro- Valens formulation and testing expertise allows for the pro-
prietary extraction processes that are optimized to produce duction of a wide array of tinctures, capsules, concentrates,
consistently high quality products. vapes, topicals, beverages and edibles.
First mover In-house testing
advantage. laboratory.
Founded in 2012, Valens was granted the first Dealer’s Setting global standards, Valens labs was the first ISO
License to process cannabis. Our R&D and testing process 17025 accredited lab for cannabis analyses and is endorsed
allows us to quickly identify market trends and adapt to a by $100B+ Thermo Fisher Scientific as the Centre of Excel-
changing landscape. lence in Plant Based Science.
TSXV:VGW, OTC:VGWCF Valens | 22APPENDIX: COMP TABLE
EPS EBITBA(1) P/E EV/EBITDA
SHARE EQUITY ENTERPRISE CY2019E CY2020E CY2021E CY2019E CY2020E CY2021E CY2019E CY2020E CY2021E CY2019E CY2020E CY2021E
PRICE VALUE VALUE
Canadian Large Cap Companies (C$) (C$MM) (C$MM) (C$MM) (C$MM) (C$MM) (C$MM) (C$MM) (C$MM) (x) (x) (x) (x) (x) (x)
Canopy Growth Corporation $25.90 $9,382 $6,497 ($2.30) ($0.93) ($1.38) ($367) ($142) $52 NMF NMF NMF NMF NMF >100.0x
Aurora Cannabis Inc. $4.69 $4,920 $5,128 ($0.21) ($0.14) $0.05 ($85) $105 $307 NMF NMF >100.0x NMF 48.7x 16.7x
Tilray, Inc. $28.43 $3,074 $3,233 ($1.18) ($0.81) ($0.36) ($66) ($30) $41 NMF NMF NMF NMF NMF 79.4x
Cronos Group Inc. $10.82 $4,067 $1,456 ($0.11) $0.02 $0.17 ($60) ($22) $73 NMF >100.0x 63.6x NMF NMF 19.9x
Aphria Inc. $6.81 $1,731 $1,787 $0.38 $0.22 $0.43 ($8) $165 $213 18.0x 30.4x 15.9x NMF 10.8x 8.4x
HEXO Corp. $2.87 $748 $670 ($0.41) ($0.18) ($0.12) ($72) ($14) $26 NMF NMF NMF NMF NMF 25.6x
OrganiGram Holdings Inc. $4.46 $729 $669 $0.04 $0.28 $0.40 $40 $84 $118 >100.0x 15.8x 11.1x 16.9x 8.0x 5.7x
Mean 18.0x 23.1x 30.2x 16.9x 22.5x 25.9x
Canadian Mid Cap Companies
The Green Organic Dutchman Hold-
$1.13 $313 $244 ($0.18) ($0.07) $0.03 ($43) $13 $99 NMF NMF 37.7x NMF 18.6x 2.5x
ings Ltd.
The Supreme Cannabis Company, Inc. $0.70 $260 $295 ($0.07) $0.11 N/A $12 $54 N/A NMF 6.2x NMF 24.9x 5.5x N/A
The Flowr Corporation $2.27 $246 $237 ($0.03) ($0.09) $0.03 ($17) $7 $41 NMF NMF 90.8x NMF 35.0x 5.8x
Zenabis Global Inc. $0.22 $46 $105 N/A N/A N/A ($32) $33 $85 NMF NMF NMF NMF 3.2x 1.2x
Emerald Health Therapeutics, Inc. $0.86 $131 $131 N/A ($0.24) ($0.05) ($10) $2 $14 NMF NMF NMF NMF 73.0x 9.2x
Mean N/A 6.2x 64.2x 24.9x 27.1x 4.7x
Canadian Small Cap Companies
WeedMD Inc. $1.14 $132 $154 $0.10 $0.23 N/A ($2) $38 $47 11.4x 5.0x NMF NMF 4.1x 3.3x
VIVO Cannabis Inc. $0.28 $82 $57 ($0.09) ($0.04) $0.02 ($10) $7 $22 NMF NMF 13.8x NMF 8.3x 2.6x
Harvest One Cannabis Inc. $0.32 $67 $53 ($0.06) $0.04 N/A ($11) $11 N/A NMF 8.4x NMF NMF 4.8x N/A
48North Cannabis Corp. $0.60 $104 $53 N/A N/A N/A ($7) $3 $18 NMF NMF NMF NMF 17.7x 3.0x
Delta 9 Cannabis Inc. $0.59 $52 $62 $0.07 $0.09 $0.09 ($0) $15 $22 9.1x 6.9x 6.6x NMF 4.2x 2.8x
James E. Wagner Cultivation Corpo-
$0.44 $39 $45 ($0.03) N/A N/A ($7) N/A N/A NMF NMF NMF NMF N/A N/A
ration
Westleaf Inc. $0.31 $44 $48 ($0.17) ($0.05) ($0.01) ($11) $9 $25 NMF NMF NMF NMF 5.1x 1.9x
Mean 10.2x 6.8x 10.2x N/A 7.4x 2.7x
Canadian Extraction Companies
MediPharm Labs Corp. $4.61 $705 $608 $0.08 $0.24 $0.37 $34 $74 $121 55.9x 19.4x 12.5x 17.7x 8.2x 5.0x
Neptune Wellness Solutions Inc. $4.47 $451 $389 $0.04 $0.47 $0.70 $5 $50 $89 >100.0x 9.5x 6.4x 80.9x 7.9x 4.4x
Valens Groworks Corp.(2) $2.98 $384 $315 $0.14 $0.37 $0.59 $21.0 $78.4 $111.0 21.3x 8.0x 5.1x 15.0x 4.0x 2.8x
Radient Technologies Inc. $0.55 $158 $137 N/A N/A N/A N/A N/A N/A NMF NMF NMF N/A N/A N/A
Direct Competitor Mean 38.6x 12.3x 8.0x 37.8x 6.7x 4.1x
Mean - All 23.1x 12.2x 26.3x 31.1x 15.7x 11.1x
Source: Company Filings, S&P Capital IQ, AltaCorp Capital
As of November 1st, 2019; shares outstanding based on most recent quarterly financials and adjusted for share issuance transactions and other significant publicly disclosed transactions; presented as fully diluted with all in-the-money
securities added to the equity value and cash proceeds added to diluted cash balance; N/D = Not Disclosed (1) Based on Analyst consensus estimates; (2) Valen’s financial estimates are based on November 30th fiscal year-ends rather
than calendar year-ends
TSXV:VGW, OTC:VGWCF Valens | 23APPENDIX:
KEY MANAGEMENT (PART 1)
Tyler Robson, B.A. & Sc. Jeffrey Fallows LLB/MBA, CFA
Director, Chief Executive Officer and Co-founder President
Mr. Robson has over a decade of cannabis R&D, plant innovation Mr. Fallows is an accomplished finance professional with over 17
and life sciences experience. Based on Mr. Robson’s impressive years experience working on a wide range of financial advisory
network as well as commitment and contributions to Valens mandates in the cannabis, consumer products and industrial prod-
Agritech as COO, he was appointed as CEO of Valens Groworks in ucts industries. He previously worked as a Managing Director at
May 2017. AltaCorp Capital Inc.
Chris Buysen, MPAcc, CPA, CA Everett Knight, CFA
Chief Financial officer Executive Vice President, Strategy & Investments
Mr. Buysen has over 15 years of diverse financial experience Mr. Knight holds almost a decade of experience in Portfolio
working as a senior financial executive with many public and private Management and Investments. At Matco Financial, he launched
organizations in a wide range of industries. During this time, he was the first ever institutional long only cannabis fund in Canada and
responsible for internal and external financial reporting, strategic managed a small cap fund, ranked #1 in its category. He is
planning, treasury, tax, information technology, human resources, known for his thought leadership and his expertise in analyzing,
financial controls and corporate governance. lobbying, investing, advising, & consulting throughout the cannabis
value chain.
Chantel Popoff Paul Kunynetz
Chief Operating Officer General Council
Ms. Popoff has over a decade of experience in managing 21+ Prior to joining Valens, Paul practiced law at McCarthy Tétrault in
Western Canadian retail pharmacy chains, including Shoppers Toronto where he gained extensive experience working on high-
Drug Mart. After her time in pharma, she spent over 6 years in se- profile and complex transactions. His practice focused on mergers
nior managerial roles in the Canadian natural health food industry. and acquisitions, franchisee/distribution, commercial transactions
and private equity with an emphasis on the automotive and canna-
bis industries.
TSXV:VGW, OTC:VGWCF Valens | 24APPENDIX: KEY MANAGEMENT (PART 2) Dan Howard Anderson Smith Vice President of Business Development Head of Regulatory Affairs Mr. Howard brings over ten years of partnership and business Anderson has been involved in the scientific analytical testing development experience across a number of industries. Dan has space specializing in the analysis of natural health products for worked with some of the largest global companies including Cana- over 15 years. He brings this expertise coupled with his extensive dian Tire, Target, TELUS & Lowe’s. Prior to coming to Valens, Dan knowledge of regulatory regime to Valens. worked at Tilray as VP, Global Expansion where he worked closely with regulators and strategic partners to build out the global can- nabis business. Dr. Houssain El Aribi, PhD Quinn Shiskin Lab Manager (Valens Labs) Head of Production Dr. Houssain received his PhD in Analytical Chemistry and Mass Mr. Shiskin brings his knowledge of extraction from 12 years of ex- Spectrometry from York University. He is a multi-published peer-re- perience as a dual ticketed Red Seal tradesman. Throughout this view scientist with over 14 years of laboratory experience with time he studied the cannabis industry with top alchemists in the US world-class instrumentation companies such as SCIEX specializing creating a deep understanding of the plant from seed to oil, spe- in small molecule analysis (earning the prestigious SCIEX award for cializing in all methods of extraction. his work in Tandem Mass Spectrometry). Dawn Visintainer, M.Sc. Erika Zakrevsky Head of Quality Assurance Vice President of Human Resources Mrs. Visintainer has extensive experience in QA/QC laboratories as Ms. Zakrevsky has over a decade of commercial and HR experience well as being a research scientist in the natural health products in- spanning across the financial services and consumer products in- dustry. She also has experience setting up and managing ISO 17025 dustries. She couples this expertise with an international lens hav- accredited labs in both the natural health space and the cannabis ing worked in Canada, Netherlands and the UK. space. TSXV:VGW, OTC:VGWCF Valens | 25
APPENDIX:
BOARD & ADVISORS
Nitin Kaushal, CPA, CA Ashley McGrath
Director, Managing Director, Corporate Finance at PwC Canada. Director, President & Owner of Glencoe Developments Inc.
Mr. Kaushal has over 30 years of finance and investment expertise Mr. McGrath has been involved in real estate development for 14
including having held a number of senior roles with Canadian years, overseeing all aspects of the development business and
investment banks, private equity and venture capital industry. oversees the management of multiple development companies in
the commercial, residential and agricultural space.
Chris Irwin Deepak Anand
Director, Partner at Irwin Lowy LLP. Director, Co-Founder and CEO of Materia Ventures
Mr. Irwin advises a number of public companies on a variety of Mr. Anand is known as global leader in the cannabis sector for his
matters including continuous disclosure and regulatory matters, regulatory, political and industry knowledge. Prior to starting Mate-
reverse takeover transactions, initial public offerings and take over ria he was the VP of Business Development & Regulatory Affairs at
bids. Cannabis Compliance Inc.
Chris Buysen, MPAcc CPA, CA Phil Donne
Director, CFO Advisor, Past President/CEO of Campbell Company of Canada,
Mr. Buysen has over 15 years of diverse financial experience Past CEO of Kellogg Canada
working as a senior financial executive with many public and Mr. Donne brings over 30 years of international brand manage-
private organizations in a wide range industries. ment, re-structures and bold brand and communication initiatives
including the launch of Vector cereal (the largest new cereal prod-
uct in 20 years).
Tyler Robson, B.Sc. Brett Channer
Director, CEO and Co-founder Advisor, CEO of Mass Minority, Past CEO of Saatchi + Saatchi
Mr. Robson has over a decade of cannabis R&D, plant innova- Mr. Channer has over 25 years of marketing industry experience.
tion and life sciences experience. He previously held the position He was responsible for leading Saatchi Canada to “Most Improved
of COO of Valens Agritech Ltd. “Top 100 Leaders in Health Care” Agency in Canada” as well as one of the Top 10 creative agencies
by IFAH. in Canada and becoming one of the top performing agencies for
growth in the Saatchi Network.
TSXV:VGW, OTC:VGWCF Valens | 26APPENDIX:
ANALYST OUTLOOK
BROKER DATE RATING TARGET (C$) COMMENTARY
“Within the cannabis sector and amongst all companies we
have seen, we forecast that Valens will generate one of the
most attractive EBITDA margin profiles. Based on our fore-
AltaCorp Capital Inc. Oct 17, 2019 Outperform $10.25 casted financial performance, Valens offers a very attractive
opportunity to invest in what we believe is an undervalued
and uniquely positioned business.”
“The company has executed a number of processing and
product development agreements with some of the larg-
Haywood Securities
Oct 17, 2019 Buy $7.75 er LPs in the Canadian landscape that we believe will drive
Inc. meaningful revenue and EBITDA growth over the course of
2019 and into 2020.”
“[Valens’] strong cash position will allow the company to
Mackie Research increase extraction capacity at its Kelowna facility, strategi-
Oct 18, 2019 Buy $8.00 cally increase its domestic geographic presence and address
Capital Corp.
potential working capital requirements.”
“Valens presents investors with an opportunity to gain expo-
sure to a rapidly growing industry very early in its develop-
GMP Securities Sept 16, 2019 Buy $10.00 ment cycle [with] strong growth expected, attractive valua-
tion, and readiness for edibles market.”
“Valens is trading at a steep discount to Canadian LPs; valu-
ation gap should narrow as company continues to deliver on
Eight Capital Oct 16, 2019 Buy $8.25 its extraction agreements. Extraction will be in high demand
as additional cultivation comes online, with Valens poised to
be a leading player.”
TSXV:VGW, OTC:VGWCF Valens | 27LOCATION
230 CARION RD.
KELOWNA, BRITISH COLUMBIA
CONTACT US
VGW@KCSA.COM
212.896.1233 / 212.896.1203
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