tsx.v - hemp€¦ · management considers reasonable in light of its experience and perception of...

© 2011 OrganicLives – Confidential Information

TheSeedofPossibilityInvestinYourFuture

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TSX.V-HEMPOctober2016

© 2016 HempCo

This presentation contains “forward-looking information” within the meaning of applicable Canadian securities laws and “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 (together, “forward-looking statements”). Forward-looking statements in this presentation include, but are not limited to, statements with respect to: the Company’s strategy, development and commercialization plans (including sales roll out plans, shelf launches in grocery stores, health food stores and mass merchandiser and convenience store outlets, projected milestones, and cost metrics), market prices, values and other economic indicators. Forward-looking statements are based on certain material assumptions and analysis made by the Company, and the opinions and estimates of management as of the date such statements are made and they represent management's best judgment based on facts and assumptions that management considers reasonable in light of its experience and perception of historical trends, current conditions and expected future developments and other factors it believes are appropriate, and are subject to risks and uncertainties.

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© 2016 HempCo

WholeCropU;lisa;on§Growth

We work together to create the world’s healthiest and most

sustainable hemp foods.

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§Innova;on

§Quality §Integrity

Vision

Mission

Values§TripleBoBomLine

© 2016 HempCo

HempcoHighlights

PioneersinHemp

§ 15yearsindustryexperience

§ Firsthempproteinpowder

§ Firstnon-dairyhempmilk

§ Proprietaryprocessingandproduc;onequipment

§ Firstandonlykillstep§ SAFE-beyondorganic§ Soilsupplementa;on

FinanciallyStrong

§ $6MlastFY§ $12MannualizedcurrentFY

§ 25%CAGRfor5years§ Profitablewithnodebt

§ DistributetoUS,UK,EU,Korea,Japan,China

§ Diversifiedintoretail

CurrentStatus

§ GMPandHACCPcomplianceachieved

§ Organic,Non-GMO§ 8,000+acresgrownundercontract

§ Ver;callyintegrated§ Plannedexpansiontodoubleproduc;onfacility-capacityispre-sold

§ Secondraisetobuildnewfacilityandincreasecapacityto$40M/yrRevenue

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© 2016 HempCo

IndustryOverview–GlobalView

2013

Natural&Organicindustry:

$100billion$400billionGlobalorganicfoodsales:

NBJ’sGlobalSupplement&Nutri;onIndustryReport,2014

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© 2016 HempCo

ProductsToday

HempOil

HempSeed

HempProtein

CORE RETAIL-UK&Canada

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© 2016 HempCo

ProductsinDevelopment

MeatAlternaRvesWinter2016Launch

SnacksWinter2016Launch

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© 2016 HempCo – Confidential Information

Hemp:TheFood

Protein

• completeproteinofall20aminoacidsand9essen;alaminoacids• 65%Edes;nproteinthatisthesameastheglobularproteininourblood

• includestwomostimportantforbraindevelopmentofchildren

• mostdiges;bleplantprotein

• non-allergen• freeofenzymeinhibitorsthatpreventdiges;on

Fats

• ideal1:3ra;oofOmega3&Omega6EFA’s

• hempseedsare80%concentratedEFA’s

• EFAsarethefounda;onofeverycellmembraneandfunc;on

• naturallyoccurringGLAandsteriodonicacidforDHAandEPAproduc;on

• VitaminE• 480mgbetasitosterolsper100mlofhempoil

Nutrients

• TrueSuperFoodforHumans• goodsourceofchlorophyll

• goodsourceofB1,B3,B6• goodsourceoffolate• excellentsourceofmagnesium,iron,phosphorus,zinc

• goodsourceofcalcium,vitaminD,vitaminE

• excellentsourceofphytonutrientsforimmunestrengtheningand;ssuebuilding

• excellentsourceoffibre• nature’sperfectplant

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© 2016 HempCo

Wholesale

KeySuccessFactorstoDate:Exis;ngCustomers

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Star Superfoods Japan

© 2016 HempCo

RecentExits

Company Revenue Saleprice MulRple

ManitobaHarvest,Compass $32M $132.5M 4x Jun2015

Vega,WhiteWave $100M $550M 5.5x Jun2015

Gardein,Pinnacle $65M $175M 2.7x Nov2014

Annie’s,GeneralMills $330M $820M 2.5x Sep2014

SoDelicious,WhiteWave $115M $195M 1.7x Sep2014

Date

HempOilCanada,Compass $18M $42M 2.3x Nov2015

/1910


Fiscal Year 2012 - 2016 Revenue

0

1500

3000

4500

6000

2012 2013 2014 2015 2016*Highlightsinclude:

• CashFlowposi;vesinceincep;on

• 95%bulksales

• 75%salesoutsideofCanada(US,Korea,UK,Germany)

• Q12016secured$3McontractwithKoreandistributorwithLOItoincreaseto$10Muponnewfacilitycomple;on

• LaunchofnewPlanetHempretailbrandinUK

*FiscalYearEndsAug2016

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For the year ended August 31, 2015

(audited) $

For the year ended August 31, 2014

(audited) $

Sales 4,043,897 3,190,321

Cost of Sales (2,911,286) (2,230.929)Gross Profit 1,132,611 959,392

Expenses (891,153) (496,830)

Income before tax 241,458 462,562

Net Income 208,458 400,562

Total Assets 2,142,184 1,499,639

Total Liabilities 1,430,429 1,141,342

Equity 711,755 358,297

© 2016 HempCo

CurrentFacilityOpera;ons,Manitoba

/1912

Highlightsinclude:

• 20,000squarefeet

• currentprocessingcapacity30,000lbs/week

• bulkhempnutrevenuecapacityof$7.5M/year

• upgradetobecompletedSeptember2016(alreadyfinanced)

• newcapacitywillbe60,000lbs/week

• bulkhempnutrevenueuponupgradewillbe$15M/year

© 2016 HempCo

NewFacilityOpera;ons-Leduc,AB

/1913

780.488.0888WWW.LIZOTTEREALESTATE.COM

#1201 10117 JASPER AVE. NW EDMONTON, AB T5J 1W8

TRIUMPH PROCESSING BUILDING

1104-17 AVENUE NISKU, ALBERTA

FOR SALE/LEASE

• UP TO 40,244 SQ.FT ON 3.01 ACRES (+/-)

• 118', 80' AND 60' SPAN CRANE WAYS

• FLEXIBLE DEMISING OPTIONS

CLEARSPAN FABRICATION FACILITY

780.488.0888WWW.LIZOTTEREALESTATE.COM

#1201 10117 JASPER AVE. NW EDMONTON, AB T5J 1W8

PHOTOS CLEARSPAN FABRICATION FACILITY

No warranty or representation, expressed or implied, is made as to the accuracy of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any specific listing condition, imposed by our principals.

Highlightsinclude:

• 40,000squarefeet

• $2.0Minvestmenttobuildoutandinstallhempnutprocessingequipment

• phaseonecapacityfor60,000lbs/week

• phaseonerevenuesof$15M/year

• preppedforphasetwoandphasethreeexpansion


5 Year Growth

$0.0M

$15.0M

$30.0M

$45.0M

$60.0M

2017 2018 2019 2020 2021

$5M

$12M

Bulk

CPG

$17M

$10M

$19M

Bulk

CPG

$29M

$18M

$25M

Bulk

CPG

$43M

$23M

$28M

Bulk

CPG

$51M

47%CAGR**

Bulk

$55M

$24M

$31M

CPG

**CAGR-CompoundAnnualGrowthRate.**CPG-ConsumerPackagedGoods

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© 2016 HempCo

CorporateShareStructure

/1915

** Management has agreed to a 5 year escrow rather than the 3 year required by TSXV

Description of Security No. of shares Exercise price Expiry date Total $ Options 1,875,000 $0.40 April 15, 2019 $750,000

300,000 $0.40 April 20, 2019 $120,00025,000 $0.40 April 20, 2019 $10,000

475,000 $0.55 August 2, 2019 $261,250Total Options 2,675,000 $1,141,250.00

Warrants 1,036,500 $0.65 November 18, 2017 $673,7251,148,500 $0.65 November 31, 2017 $746,525

Total Warrants 2,185,000 $1,420,250.00

Finder's Warrants 156,625 $0.40 April 15, 2018 $62,650129,710 $0.65 November 18, 2017 $84,312153,790 $0.65 November 31 , 2017 $99,964

Total Finder’s Warrants 440,125 $246,925.00

Target Warrants 2,000,000 $0.40 March 25, 2019 $800,000

Issued and outstanding 34,112,188Options 2,675,000Warrants 2,185,000Finder's Warrants 440,125Target Warrants 2,000,000Fully diluted outstanding 41,412,313

tsx.v - hemp€¦ · management considers reasonable in light of its experience and perception of...

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