TransCanna Building cannabis focused brands for the California lifestyle
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TransCanna™ Building cannabis focused brands for the California lifestyle Corporate Presentation
Forward Looking Statement
Certain information contained in this presentation constitutes “forward-looking information” within the meaning of applicable Canadian securities legislation. The use of any of the words “anticipate”, “continue”,
“estimate”,“intend”,“potential”,“expect”, “may”, “will”, “project”,“proposed”, “should”, “believe” and similar expressions are intended to identify forward-looking information. These statements are not guarantees of future
performance and involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information. In addition, this
presentation may contain forward-looking information attributed to third party industry sources. The Company believes that the expectations reflected in such forward-looking information are reasonable but no assurance can be
given that these expectations will prove to be correct and such forward-looking information included in this presentation should not be unduly relied upon. Such information speaks only as of the date of this presentation or such
other date indicated herein.
In particular, this presentation contains forward-looking information pertaining to the following:
• The Company’s intention to grow its business and operations;
• expectations with respect to the approval of the Company’s licenses and permits;
• the Company’s competitive position and the regulatory environment in which the Company operates;
• the Company’s operations in the United States, the characterization and consequences of those options under federal law, and the framework for the enforcement of medical cannabis, adult-use cannabis and cannabis-related
offenses in the United States;
• the Company’s intention to exploit opportunities for the branding, transportation, distribution, and fulfillment of cannabis products in the United States;
• the Company’s expected business objectives for the next twelve months.
In making the forward-looking statements included in this presentation, the Company has made various material assumptions, including, but not limited to, (i) obtaining necessary regulatory approvals; (ii) that regulatory
requirements will be maintained, (iii) general business and economic conditions, (iv) the Company’s ability to successfully execute its plans and intentions; (v) the availability of financing on reasonable terms; (vi) the Company’s
ability to attract and retain skilled staff; (vii) market competition; (viii) the products and services offered by the Company’s competitors; and (ix) that the Company’s current result of the risk factors set forth below and in the
Company’s continuous filings available on SEDAR at www.sedar.com.
The Company is an early stage company with little operating history, a history of losses and the Company cannot assure profitability;
if the Company is unable to attract and retain key personnel, it may not be able to compete effectively in the cannabis market;
the Company’s industry is experiencing rapid growth and consolidation that may cause the Company to lose key relationships and intensify competition;
some of the Company’s planned business activities, while believed to be compliant with applicable U.S. state and local law, are illegal under federal law;
the Company may not be able to obtain all necessary California licenses and permits or complete the construction of its facilities in a timely manner, which could, among other things, delay or prevent the Company from becoming
profitable; due to the classification of cannabis as a Schedule 1 controlled substance under the CSA, banks and other financial institutions which service the cannabis industry are at risk of violating certain financial laws, including
anti-money laundering statutes; the Company may have difficulty accessing the services of banks and processing credit card payments in the future, which may make it difficult for the Company to operate or to transfer funds
outside the United States; and
any re-classification of cannabis or changes in the U.S. controlled substance laws and regulations may affect the Company’s 5432 business.
These factors are not, and should not be construed as being, exhaustive. Information contained in forward-looking statements in this presentation is provided as of the date of this presentation, and the Company disclaims any
obligation to update any forward-looking statements, whether as a result of new information or future events or results, except to the extent required by applicable securities laws. Accordingly, potential investors should not place
undue reliance on forward-looking statements or the information contained in those statements.
TransCanna Presentation | 2019 2
Disclaimer
Notice To US Investors
Theinformationprovidedhereinisforinformationalpurposesonly, and itshould not be reliedon foranyspecificpurpose and no representationor warrantyisgivenin
regards to itsaccuracyor completeness.This presentationdoes not constitutean offerto sell,or a solicitationof an offerto buy anysecuritiesin TransCanna Holdings Inc. ,
or anyothersecurities.
Priortomaking anyinvestment,investors arestronglyurgedto reviewcarefullythecorporatedocuments of theCompany, to asksuch questions of managementas they
deemappropriate,and to discuss anyprospectiveinvestmentin theCompanywiththeirlegaland taxadvisers inorderto makeanindependent determination of the
suitability and consequence of an investment. Investment in the Company is suitable only for Accredited Investors as defined under the U.S. SecuritiesActof 1933, as
amended (the“Securities Act”) forwhom an investmentin such a company does not constitutea completeinvestmentprogramand who fullyunderstand, and are
willingto assume, therisks involved in aninvestment in theCompany.
Anyofferingof securitiesin theCompanywillbe made inrelianceupon an exemption from registration under the Securities Act for offers and sales of securities that do
not involve a public offering, and therefore will be “restricted securities”, as suchtermis definedin Rule144 promulgatedunderthe1933Act.
Prospectiveinvestors should informthemselves and take appropriate adviceas to any applicablelegalrequirements and anyapplicabletaxationand exchangecontrol
regulationsin thecountries of theircitizenship, residence or domicile,whichmightbe relevanttothepurchase, holdingor redemptionofinterests.
TransCanna Presentation | 2019 3
Something a little different
in the cannabis space
TransCanna Presentation | 2019
Our Mission
Build an integrated ecosystem of talented people, owned
assets, intellectual property to work with trusted
partners to deliver elevated experiences for consumers
in the medicinal and recreational cannabis space. Our
company believes in the power of Cannabis for healing
and happiness.
TransCanna Presentation | 2019 5
Why Our Brands Will Sustain
Margins Quality brands maintain margins over long periods
Superior grow and edibles recognized by customers
Create product consistency & reliability
Create scalability within CA and future markets
within the U.S.
Less prone to contracting margins from market
pressures (farming, extracting, transportation)
Real “Pull” – Proven demand for products, not
celebrity endorsed PSH model
TransCanna Presentation | 2019 6
Existing Brands
Edibles
High quality, organic dried mango,
no sugar added infused with
premium cannabis oil edible
available in the California market.
www.soldazesnakcs.com
TransCanna Presentation | 2019 7
Existing Brands
Flower
High quality, pre-rolls, jars, cake
and biscotti.
www.lyftedfarms.com
TransCanna Presentation | 2019 8
Existing Brands
Mid-Market Pre-Rolls
Each of Daily’s signature pre-rolls
contains 1.5g of cannabis which
appeals to the everyday user.
TransCanna Presentation | 2019 9
Cannabis, Culture and Business TransCanna Presentation | 2019
Self-Contained Ecosystem
The Strength of the Brand
Performance Greater Margins Quality/Consistency Control
Reliability, strong management, Cost savings from vertical Maintain quality of biomass, Owned assets, manufacturing
proper capitalization, seamless integration and a centralized consistency of processing and facility, grow space,
licensing of compliance location manufacturing compliance testing
TransCanna Presentation | 2019 11Modesto Facility
Manufacturing & Production
Power & Costs Labor Pool
One of the lowest costs in CA in Excellent and home to one of the
relation to rest of the State largest labour pools in the state due
to the agricultural industry
$0.06 kw/hr, lower tax rate than
most of CA
196,000 ft2 Tri-Level Facility
Central California – Modesto Building Condition Scale HVAC / Refrigeration
(2-6 hr. drive to all major California cities)
New roof as of 2018, 12” insulation R Vertically integrated cannabis facility – New premium quality system
Value 50 with PDM membrane, one of the largest in California.
Complete facility about to be licensed which includes a 20 year warranty “Superior” standard with two levels
Manufacturing, growing, nursery, lab, of redundancy
transportation & distribution, security /
extraction – low volatility
Building in excellent condition and ready for
cannabis buildout
TransCanna Presentation | 2019 12Rightsized Production
Scaling while maintaining profitability
• Phased expansion, construction and operating plan to meet growth expectation of value-added
products.
• Space management, the ability to manage growth capacity by being agile, scaling cultivation and
production to capture revenue and avoid excess unused capacity.
• Success occurs at the intersection of planning and execution.
• Future products can be easily launched, flexibility to quickly increase capacity as sales grow and
acquisitions are made.
TransCanna Presentation | 2019 13Cannabis Industry
Numbers
Pre-rolls Flower &
Edibles Concentrate
7.7% of the total market, Edibles sales in the U.S. and California is on track to post a
equaling about $985MM in Canada are on pace to reach record $3.1 billion dollars in
retail sales out of total cannabis more than $4.1 billion by 2022 Cannabis sales for 2019.
sales of $12.8BN
TransCanna Presentation | 2019 14Leadership
Experienced Management
Steve Giblin Peter Vitulli Arnie Johansson Ian Klassen
President & CEO Director Chairman Director
• Demonstrated track record of value • Early in his career Peter was President & • President of a family-based business • Mr. Klassen brings his wealth of business
creation. General Manager of the $1 billion North since the early 1990’s. management, public relations and
• Strong C suite relationships with American Gatorade business. • Has over 30 years of experience in the government affairs experience to the
Marriott, Hilton, and Radisson brands • President and CEO of Sciona, Inc., a Canadian Capital Markets focusing on Company;
and he managed Silverbirch and Delta pioneering personal genetics company building assets and senior management • Has extensive experience in the
hotel real estate portfolios for the offering customized health and wellness teams while executing a defined administration of public companies,
British Columbia Investment solutions. business plan. finance, government policy, media
Management Corporation. • President and CEO for Amerifit • Investments include: Health Sciences, relationship strategies,
• As CEO of Silverbirch, he grew Nutrition, Inc., a nutritional supplement Pulp & Paper, Energy, Mining business/government project
revenues from $280m up to $500m company focused on women's health. Exploration, Film & Entertainment, management and legislative decision-
and increased the portfolio value over • Holds an MBA from New York Agriculture and Technology sectors. making.
50%. University's Stern School of Business and • Mr. Johansson sits on several advisory • Previously served as Chief of Staff to the
• He has worked with other companies a BA from Holy Cross College. boards in the public and private sectors Canadian Speaker of the House of
including established brands like and will bring a wealth of expertise to Commons.
Bentall Kennedy, Great West Life and the TransCanna Board.
general contractors, Ellis Don, PCL
and Bird.
TransCanna Presentation | 2019 15Leadership
Board of Directors
Alan Applonie Bob Blink Shawn Shevlin Michelle Pillon
General Manager Lyfted Farms SolDaze Snacks CFO
• 26 years’ experience in consumer- • Advocate of Prop 215, legalizing • 25 years’ experience in sales, • 25 years of experience in the junior
packaged goods medicinal cannabis in California in operations and finance within mining exploration sector, providing
• MBA Vanderbilt University 1996. Began operating as Earthbound Farm, Dole, accounting and regulatory
• Former COO of a US $1B Cultivator/Distributor since 1997. Organicgirl assistance to public companies.
agricultural-based business • Converted Medicinal cannabis • Co-Founder SolDaze Snacks • Since May 1988, she has worked as
nonprofit to recreational cannabis • Co-Founder Handshake Farms an accountant to public companies
market in 2016, forming Lyfted • International supply chain in the resource sector.
Farms, Inc. management and sales
• A leader in genetic development, • BS in business finance
trends and Local/State
government policy with deep
rooted industry relationships
spanning the supply chain from
seed to sale.
•
TransCanna Presentation | 2019 16Thank You Contact Us 1030 West Georgia Street | Suite 902 Vancouver, B.C. V6E 2Y3 604.609.6199 Info@transcanna.com
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