supreme presentation 2014 august _ sept

Upload: glory2theone

Post on 10-Oct-2015

275 views

Category:

Documents


0 download

DESCRIPTION

SPRWF Supreme Pharmaceuticals PP proposal.

TRANSCRIPT

  • Corporate Presentation, August 2014

  • DISCLAIMER AND CAUTIONARY STATEMENTS: Certain information regarding the company contained herein may constitute forward-looking statements within

    the meaning of applicable securities laws and or be subject to change without notice. Forward-looking statements may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other

    statements that are not statements of fact. Although the company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. For example, the capital cost of building the facility may exceed the amounts stated herein,

    and the amount of time to commence producing our product may take longer than expected. The company cautions that actual performance will be affected by a number of factors, many of which are beyond the

    companys control, and that future events and results may vary substantially from what the company currently foresees. The companys forward-looking statements are expressly qualified in their entirety by this cautionary statement. Furthermore, statements regarding the amount of share purchase warrants, shares, stock options are all subject to further change without notice. This is not a solicitation to purchase securities in our common stock or at all. Readers are cautioned to review our securities filings at www.sedar.com further details of the

    company prior to making any decision in relation to a possible investment of the company.

    2

  • With approvals in place, we believe we are positioned to be on the leading edge of providing a safe,

    regulated, medical alternative to average Canadians, as prescribed by their doctors.

    3

  • Greenhouse-grown medicinal marijuana benefits from the effects of natural sunlight, guaranteeing it to be of the highest quality.

    Our medical marijuana is grown in a revitalized 342,000 sq. ft. greenhouse facility in

    Kincardine, Ontario, bringing numerous welcome jobs into the community.

    4

  • Medical Marijuana is a natural product offering beneficial therapeutic treatment for a number of indications as a result of two active components:

    THC (Tetrahydrocannabinol) which is associated with management of pain, nausea and lack of appetite in AIDS and cancer patients; and symptoms

    of Multiple Sclerosis and Glaucoma.

    CBD (Cannabidiol) which is associated with management of neurological disorders such as epilepsy, seizures; movement disorders such as

    Parkinsons, Huntingdons, ALS, Alzheimer's and MS.

    5

  • Commercial production and distribution of marijuana for medical purposes Strict licensing and approval process to regulate quantity and quality of

    production; record-keeping procedures; security of facilities and key personnel;

    Only 13 licenses and approx. 20 pre-approvals have been issued to date out of hundreds of applications (Supreme is the Largest pre-approved license with 24,000,000 grams per year)

    New federal regulations introduced the MMPR (Marijuana for Medical Purposes Regulations), with the aim of

    reducing abuse and improving compliance within the industry.

    6

  • The average patient consumes 1-3 grams of medical marijuana per day, with a cost of $7-$12 per gram. Health Canada statistics:

    26,000 licensed medical marijuana patients in 2013

    Predicts 450,000 by 2024 Growth estimate increase of 1700% over next 10 years Estimated $175m market presently Market projected to rise to $1.3 billion by 2024

    7

  • 342,000 sq. ft. (larger than 6 football fields) Location: Kincardine, Ontario Upwards of 100 new jobs created Pre-approved Jan 2014 by Health Canada Purchased in May 2014 for $4.5m Independently appraised $20.1m (value in use basis) Converted from government to private

    sector state of the art marijuana grow facility

    The reopening of Canadas largest marijuana greenhouse has been lauded by local community and media alike.

    8

  • Purchase (not lease) of this massive greenhouse facility affords a lower cost of production, superior product, setting us ahead of our competitors

    Economies of scale Volumes of natural light available saves on power

    consumption while producing superior natural product (vs. all artificial light)

    Community support and work force Well positioned as wholesale producer

    Supreme has strengths and competitive advantages over its competition:

    9

  • Supremes Kincardine greenhouse can offer a wider variety of products

    We will be rolling out various branding and marketing efforts to promote our products

    High quality product - affordable pricing ($2.00 - $8.00; $4.90 average)

    We plan to sell our products to various niche markets: Wholesale and contract growing to distributors, hospitals, other LPs etc. Direct to consumer (website, call center, outlets) Export to countries who are current importers of medical marijuana

    10

  • Comprehensive plan submitted to Health Canada

    Pre-build license approval received for: Quantity produced up to

    24,000 Kg per year Security checks on key personnel Sale, possession, cultivation Export permits acquired

    Facility plan design Security systems plans,

    pending installation License subject to facility

    build out and final inspection

    Phase 0b complete final approval to go in full production by Health Canada

    Production growing and harvesting to begin, further states brought online as required

    11

    Sept 2013

    Jan 2014

    Feb 2015

    Q1 2015

    Nov 2014 Phase 0a complete security cleared and license to grow granted

  • Total Current Raise: $5M

    Current Capital structure:

    59,000,000 shares outstanding 2,506,000 warrants outstanding 2,800,000 options outstanding Company long-term debt:

    Mortgage payable $3.5m on facility purchase

    Future financing requirements:

    $3-4M will be required for the completion of remainder of the facility in 2015 after Phase 0 complete

    Working capital:

    Required $5M for 2014 Facility upgrades Phase 0

    16,000 sq. ft. grow space, plus 40,000 sq. ft. office /warehouse 6,500 sq. ft. R&D area

    12

  • 13

    Pre-MMPR Canadian Stock Comps: Company Interests Market Cap

    Abba%s Bioceu%cals: CSE: ATT Interest in 2 MMAR Growers, applying for MMPR.

    $31M

    Anor Growers: CSE : AFI Has made 1 MMPR Application and diversifying into food.

    $30M

    Cannabis Technologies (CSE: CAN) Pharma play with no products yet & currently looking to take over an MMPR license.

    $14M

    Creative Edge Nutrition (OTC: FITX) One MMPR application site in Lakeshore Ont., no license

    $185M

    Medican (OTC: MDCN) One MMPR applica%on site $54M

  • 14

    Company Interests Market Cap Bedrocan Canada

    Licensed MMPR for Went Public August 25th, 2014

    $85M

    Mettrum Licenced MMPR for currently going through an RTO

    TBD Expected $90-100M

    Organigram Licensed MMPR for begins trading August 25th, nanced @ $60M valua%on

    $110M

    Pharmacan First Capital pool invested in 3 MMPR Co.s TBD Expected to be over $100M

    Tweed First Public MMPR for up to 16,000 kgs per year - was financed (GMP $15M bought-deal) at over

    $128mm earlier this year.

    $120M

    SUPREME Largest Pre-Approved license for 24,000 kgs per annum on a wholly owned 342,000 sq. J. Facility

    $19M

  • David Stadnyk, President & CEO 15 years + public company experience, entrepreneur, founder of numerous successful pharmaceuticals companies (private and public); former owner of Vancouver Whitecaps, a radio station; Chairman of the Stadnyk Foundation. David sets the strategic direction for the Company and builds a motivated team for future success.

    Sarah Herburger, VP, A-RPIC Sarah is VP of patient relationships, she looks after direct to consumer sales and shipping. She is working on patient acquisition and strategy.

    Alan Robertson, Security Consultant 32 years of policing experience as Detective, Regional Supervisor etc; Responsible for assisting in the design and implementation of physical security measures, protocols and staffing; liaison with local law enforcement. George Tsafalas, Director and key consultant 15 years public company experience as a senior executive, entrepreneurial, involved in many start-ups.

    Dr. Kenneth Adams, D.D.S. M.D. is our Medical Director and Chief of quality control.

    Peter M. Herburger, SPIC/RPIC Senior Person in Charge of production of medical marijuana, is a founder and has been actively involved in this project for nearly three years. Peter is a career businessman with success in a variety of industries incl hospitality, tourism, natural and alternative medicine.

    John Fowler, Director of Kincardine Operations John is an Ontario attorney; involved in medical marijuana for nearly ten years including production and sales and legal challenges. In 2013 John assisted a court case on behalf of patient rights to obtain medical marihuana. John is responsible for various aspects of company management and planning.

    Med-man, Our favorite Grower Med-man is Canadas most awarded producer of medical marijuana and medical marijuana seeds. Med-man will consult with us to assist in strain selection, propagation, production techniques, harvesting procedure and post-harvesting protocols.

    Aaron Ruimy, Head of IT and Automation Responsible for designing and implementing IT including electronic security, electronic operating procedures, automated production systems and ensuring these systems integrate seamlessly.

    15

  • Our short-term objectives are focused on getting our product to market:

    Acquire capital for final build out Complete facility improvements Phase 0 Obtain final approvals from Health

    Canada Develop sales channels/implement

    marketing plans Commence growing product

    Obtain stable sales & distribution contracts

    Complete build-out for further phases, Kincardine

    Consider opening further facilities Develop brand loyalty

    Longer-term well focus on stabilization and growth:

    16

  • Flagship Kincardine facility expected to be the most cost competitive in Canada

    Received pre-build approval for the largest cultivation facility in Canada under the MMPR*

    Greenhouse provides power savings over indoor growing using artificial light alone

    Kincardine Grow footprint of 342,000 sq. ft. + administration and office areas

    Seed-to-Sale digital tracking and automation to reduce production costs, increase compliance and knowledge generation

    Largest approved production of 24,000 Kg per year of dried Marijuana

    Kincardine greenhouse capable of producing est. $90m revenue per year alone at full production

    Our product will be high quality (organic, natural light grown)

    We are ahead of the curve with only a limited number of pre-built licenses issued and expect final licensing approval by the end of 2014

    Best value in the sector Two marijuana facilities pending

    license approval

    17

  • Raise: $5,000,000 at $0.25 A total of 20,000,000 units Each unit includes one common share of

    the company and a half warrant to purchase a common share @ $.50 exercisable for 12 months after the closing date

    Use of Proceeds: $4.5M to get the facility to MMPR license stage $500,000 for corporate operating costs

    18

  • David Stadnyk, CEO Office 604 674 2191

    John Fowler, Director Kincardine Operations Cell 647 525 5463

    Supreme Head Office #430 580 Hornby Street Vancouver, BC, Canada V6C 3B6

    Supreme Kincardine Facility

    148 Farrell Drive, Community of Bruce Energy Park, Kincardine, County of Bruce, Ontario

    www.supreme.ca email: [email protected] CSE symbol: C.SL

    19