PowerPoint Presentation

[Virtual Presenter] Cannara Biotech is emerging as Canada's fourth-largest cannabis producer, presenting the world with top-tier product and over 1.6 million square feet of cultivation space for its production. Cannara stands at the forefront of a reality, where premium-grade cannabis is not just a luxury, but a standard." Transition: "Now, let's dive into the details that make us the industry leader..

[Audio] This Presentation provides an overview of Cannara Biotech Inc., the products and services they offer and their current position in the markets. The information provided is based on public information and may be subject to updating, completion, revision, verification and amendment without notice. The Company does not offer any assurance or guarantee as to accuracy of the information. Use of this information is done entirely at the recipient's own risk and any decisions made based on the information is the sole responsibility of the recipient. The Company does not undertake any obligation to correct any inaccuracies or update the information or provide the recipient with access to any additional evaluation material. This Presentation is not intended to indicate the state of affairs of the Company, nor shall it be considered to indicate that there has been no change in the business affairs of the Company since the date hereof or since the dates as of which information is given in this Presentation. This Presentation does not offer financial, tax, legal or accounting advice and does not constitute a solicitation to purchase securities of the Company..

[Audio] Cannara Biotech, Inc. is committed to growing and producing cannabis with a wide range of products that satisfy consumers' demands and premium brands. We endeavor to guarantee that our production level conforms to our cost estimates while maintaining elevated quality standards. This presentation contains data that demonstrates our present estimates, forecasts, expectations, and convictions. Any remarks in this presentation regarding possible future circumstances reflect our convictions and presumptions and ought not to be perceived as assurances of future results..

[image]. EXECUTIVE SUMMARY.

[Audio] Our goal is to become a leader in the production of goods in the key provinces of Canada, with an annualized production rate and capacity that can support rapid growth. Our mission is to produce top-tier quality products and serve a diverse consumer base..

[Audio] With strategic agreements and investments, Cannara Biotech, Inc. has proactively developed its financial strength. From going public on the CSE to securing a credit facility with BMO and being recognized for their brands, these milestones reflect the company's focus on growth and consumer needs. Now let's take a look at the numbers that demonstrate our success..

[Audio] Projected results for 2023 include: • Revenues of $7.9M in Q4 and $20.4M for the full fiscal year. • Positive EBITDA of $16.2M in Q4 and $50.6M for the full fiscal year. • A strategic brand portfolio and a high-value proposition for consumers. • Significant potential for growth and success across the country..

[image]. OPERATIONS.

[Audio] Cannara Biotech is devoted to innovation and excellence, and the Farnham Facility in Quebec is a living example of this. At 625000 sq. ft. it boasts a fully automated environment and biomonitoring sensors, allowing for ideal cultivation ambiance and superior output and quality. The Valleyfield Facility is also an important step in our production capabilities, with 294000 sq. ft., 170000 sq. ft. of cannabis operations and a 3,500 Kg production ability. Phase 1 is already leased, and has 150000 sq. ft. of space available to facilitate our cultivation and processing activities..

[Audio] Cannara's Valleyfield Facility is a fundamental element of the company's expansion strategy, enabling us to accommodate the ever-changing needs of the cannabis market. Outfitted with modern technology such as LED lighting and automated systems, the facility is a testament to Cannara's dedication to innovation, scope, and excellence in all of its pursuits..

[Audio] Our flagship facility is situated on 578,022 sq. ft of land, enabling our team to produce high-quality cannabis products. At present, 9 out of 24 growing zones are active, with 225000 sq. ft area in operation, representing 38% of the total capacity. Additionally, a 22,808 sq. ft office and warehouse, a 212,661 sq. ft Cannabis 2.0 processing facility and a 197,518 sq. ft rooftop greenhouse are currently under construction. The potential production capacity from these components is 1,033,506 sq. ft and 100000 kg. Our facility is equipped with advanced LED lighting and automated tables, allowing us to control temperature and humidity. Furthermore, all growing zones are designed to provide an indoor, sunlight-free environment in order to maintain consistency and quality of product. Each zone covers 25000 sq. ft, enabling us to utilize our potential to the fullest..

[Audio] User experience, brand culture, and grassroots marketing are our guiding principles that will influence our strategic vision for the upcoming year. This roadmap will provide the necessary tools for us to continue our growth and success..

[Audio] Cannara is uniquely able to provide 'AAAA'-grade cannabis, differentiating itself in the industry and looking forward to potential growth. Our forward-thinking techniques for premium-grade cannabis set us apart. Our subsequent concentration is a U S exclusive brand collaboration, a calculated move enhancing our product catalog and broadening our reach..

[Audio] Cannara and Exotic Genetix have both made tremendous strides in advancing cannabis genetics and horticultural techniques. These advancements are essential to increasing our competitiveness in the Canadian market. Through this strategic partnership, we are committed to delivering Canadians a greater selection of quality products and services. We are confident that these combined efforts will allow us to continue to meet our customers' needs and stay at the cutting edge of innovation and development in the cannabis industry. Now, let's move on to our plans for the future..

[image]. ACCESSIBILITY.

[Audio] Cannara Biotech projects that over the next five years their annual production capacity will steadily grow from 22000 kilograms of premium-grade cannabis in 2022 to 75000 kilograms by 2027. This trajectory reflects their strategic planning and operational capabilities, positioning them to take advantage of market opportunities..

[Audio] Cannara Biotech, Inc. has identified the opportunity that the Quebec market offers and has situated its operations in the area. There is a lack of competitors which provides a unique competitive advantage for Cannara. The low electricity costs and high barriers to entry make it even more advantageous for Cannara to capitalize on the potential of the third-largest cannabis retail market in Canada and have a stronger presence in the area..

[Audio] Cannara has seen competitive advantages arise due to their "Stock up & Save" campaigns and other initiatives during the pandemic. Their scalable production capacity has further put them in a leading position in the cannabis industry. To move forward, we shall investigate the notable developments and plans that have established their pathway to continued success..

[Audio] Cannara Biotech is committed to maintaining a spirit of innovation and pushing the boundaries of possibility. Our team of inventors and engineers dedicate their time to creating products that will improve lives. With a corporate culture that rewards risk taking and embraces bold ideas, Cannara Biotech is pioneering in science and technology. Our laboratories and products have set the standard for excellence in innovation. Embrace the power of progress and experience Cannara Biotech..

[Audio] Cannara Biotech, Inc. is focused on providing premium cannabis products for everyone. We are devoted to making sure our products reach the highest standards. Our pricing structure appeals to both frequent and new consumers, and we prioritize quality, innovation, community responsiveness, and transparency. This has triggered a positive reaction from customers who appreciate our value, convenience, and quality. We have achieved remarkable growth as one of the top cannabis brands in the industry..

[Audio] Cannara Biotech offers a comprehensive selection of cannabis products, ranging from dried flower to full spectrum extracts. The company's three signature brands - Tribal, Nugz, and Orchid - each provide something distinct. Cannara Biotech boasts 97 active SKUs, guaranteeing the highest quality for each item. Discover the Cannara experience and let the company be your go-to source for cannabis needs..

[Audio] Explore the world of Tribal and decide what kind of journey you want to embark on. From discovering new cultures to exploring new places, Tribal has something for everyone. Make the decision today and start your journey..

A yellow and orange background Description automatically generated.

A collage of a painting of a person in a red dress Description automatically generated.

[Audio] Cannara Biotech, Inc. has an ambitious vision to be a pioneering force in the biotech and medical revolution. To this aim, we have established a strategy of strategic partnerships, informed decision-making, and targeted investments. This has enabled us to be the leader in our space, offering innovative solutions that benefit the communities we serve. We are also focused on building a global presence, striving to be the champion of medical and biotech development in the future..

[Audio] Cannara Biotech is proud to be an active player in the flourishing Canadian recreational cannabis market. Our strategy is to bolster our market share, boost our production capacity, and continually innovate our products. We have faith in our enthusiastic team and proven product portfolio that will help us take full advantage of this ever-evolving industry and achieve big success in the long term..

[Audio] Cannara Biotech, Inc. is planning to advance its operations in 2024. It intends to strengthen its cannabis supply and enhance cost effectiveness, which should provide stability to its platform in the face of price fluctuations. The company is also focused on innovative product development and plans to launch five new genetics for its signature brands. Moreover, it seeks to amplify its market share in existing markets and start operations in a new market in Canada. These efforts demonstrate the company's dedication to becoming a successful and profitable vertically integrated cannabis business..

[Audio] Cannara Biotech Inc's projected Cannabis Production & Revenue Growth Trajectory is displayed in this slide. The chart shows the expected Cannabis Net Revenue in US dollars and kilograms sold from the first quarter of 2022 to the fourth quarter of 2023. It indicates a gradual increase in both revenue and kilograms sold, with an estimated Cannabis Net Revenue of 9.7 million US dollars and 8.4 kilograms sold in the fourth quarter of 2023..

[Audio] Cannara Biotech, Inc.'s commitment to cost efficiency is illustrated by this slide. We can observe that gross margins in 2022 and 2023 have increased even when taking into account financial volatility changes, demonstrating the company's commitment to cutting costs and optimizing efficiency. Cannara is expecting to scale its operations in 2024 and keep benefiting from economies of scale..

[Audio] Cannara Biotech, Inc. achieved significant success in 2023, with the launch of over 70 new SKUs and reaching a total SKU count of 97 across its flagship brands. Looking to capitalize on that success, the company is now focused on product innovation for 2024. Pursuing a product-oriented approach is expected to keep Cannara well-positioned to achieve growth and expansion during the upcoming year..

[Audio] Cannara Biotech's commitment to innovation is showcased in its soon-to-be-released genetics for Q1 of 2024. The portfolio will contain 8 new genetics, comprising of Jigglers and Drip Station with expected launch dates in Summer and December of 2024, respectively. The genetics range from Indica, Sativa and Hybrid strains consisting of Gelato Mint, Cuban Linx, Terple, Galactic Runtz, Early Lemon Berry, Slapz, Triple Burger, G Sherb, Lemon Linx and Drip Station, all obtainable in FY24..

[Audio] Cannara's expansion strategy for Q3 and Q4 of FY 2023 has produced impressive results with the company securing an 8.5% market share in Quebec, 3.0% in Ontario, 1.2% in Alberta, and 0.8% in British Columbia. By October 2023, Cannara's market share had grown to 8.8% in Quebec, 3.2% in Ontario, and more than 1100% increase in the Alberta market accounting for 1.2% of the total market. Its lean and profitable operations have enabled Cannara to produce premium cannabis at scale and at competitive prices. With the capability to manufacture up to 100000 kg of premium cannabis at full scale, Cannara is well positioned to extend its product offering across all provinces in Canada..

[Audio] We are committed to delivering outstanding value to our shareholders through driving growth, enhancing financial performance and optimizing operational effectiveness. Our solid financial situation will ensure that we continue to provide value to shareholders beyond 2024..

[image]. Q4 2023 FINANCIALS.

[Audio] Cannara Biotech, Inc. achieved a notable increase in other income during the fourth quarter of 2023 with a reported other income of 3 million on August 31st, 2023, compared to the same period in 2022. This represented a 33 percent growth, which demonstrates Cannara Biotech, Inc.'s commitment to maximize shareholder value and strengthen its financial position..

[Audio] Gross Revenue includes Revenue from Sale of Goods, net of Excise Taxes, Services Revenue and Lease Revenue, as stated in Footnote 1. Footnote 2 states the Gross Profit before Fair Value Adjustments %, which is determined as Gross Profit before Fair Value Adjustments divided by Total Revenues. Similarly, Footnote 3 states the Gross Profit, which is determined as Gross Profit divided by Total Revenues, and Footnote 4 states the Net Income %, which is determined as Net Income divided by Total Revenues..

[Audio] Cannara Biotech, Inc. is proud to announce that they have managed to operate a profitable business in the biotechnology industry for the past year, thanks to the hard work and dedication of their employees, investments and technological advancements made over the years. Looking ahead, they have the confidence to continue their success with the support of their strong management team and loyal customers..

[Audio] Cannara Biotech, Inc. is pleased to share the total net revenues analysis by quarter. In the last 12 months, total net revenues were 10.1 million in the first quarter, 3.7 million in the second quarter, 10.3 million in the third quarter and 6.1 million in the fourth quarter. Gross margin was 4.0 million in the first quarter, 13 million in the second quarter, 15.9 million in the third quarter and 18.3 million in the fourth quarter, which is a considerable improvement on the preceding year. We are optimistic about our prospects for the upcoming year..

[Audio] Cannara Biotech, Inc. has made marked improvements to its corporate platform with investments in Aurora, Village Farms, Tilray, Decibel, Organigram, Cannara, and Canopy Growth. It currently has a market cap of 35 million and generated revenue of over 125 million last year. The company is pressing ahead with its strategic investments for further growth and development..

[image]. LEADERSHIP TEAM.

[Audio] The slide 41 of the 46 slides presentation is about Zohar Krivorot and Nicholas Sosiak, two key members of Cannara Biotech, Inc. Zohar has an impressive track record of success as an entrepreneur, advisor and investor. He was also recognized as a top leader and innovator. Zohar is certified commercial pilot and is actively involved with early-stage companies as an advisor and board member. Nicholas is a CPA passionate for the Cannabis industry. He has worked in auditing for two of the big five accounting firms and the VP Finance and Accounting for Dundee 360 Real Estate Corporation. He is currently the CFO of Cannara responsible for overseeing the company's finances and treasury. Together Zohar and Nicholas provide the leadership and focus to help drive Cannara's success..

[Audio] Noemi and Issam are key members of the Cannara Biotech team. Noemi is a Chartered Professional Accountant with 8 years of audit experience, and has gained valuable expertise in financial reporting, accounting and management. She is the company's Vice-President of Finance. Issam is an engineer in Agronomy & biotechnology and has a PhD in plant sciences. He is an experienced researcher and has led research and development in the plant production industry. As the company's Vice-President of Production and Experimentation, he has been instrumental in establishing data-driven growing strategies, streamlining processes, building trained teams, standardizing production operations and improving strategies to ensure consistency and sustainable development. These two professionals have been essential to the success of Cannara Biotech, Inc. and have contributed greatly to its corporate development..

[Audio] Cannara Biotech, Inc. is pleased to introduce the three newest members of its executive team: Brian Sherman, VP Legal Affairs; Scott Carroll, VP Marketing and Sales; and France Landry, VP Human Resources. Brian Sherman brings a wealth of expertise in legal affairs, having worked as a senior member of the legal team at Canopy Growth, one of Canada's most renowned cannabis producers. He attained dual civil and common law degrees from McGill University, and is licensed to practice in both Ontario and Quebec. Scott Carroll has a strong foundation in global brand strategy, having obtained a PhD in Genetics and an MBA from Harvard. His extensive experience in the highly regulated pharmaceutical and cannabis industries make him a great fit for the VP Marketing and Sales role. Lastly, France Landry has seventeen years of experience in human resources. Having worked in Farnham's municipality for nineteen years, she moved up the ladder to the position of Vice President, Human Resources. The addition of these three professionals to the executive team reinforces Cannara's mission of developing innovative biotech solutions..

[Audio] Donald Olds has been a Lead Director and Audit Committee Chairman since 2014. He has extensive experience in corporate finance and his expertise has been extremely helpful in Cannara Biotech, Inc. achieving their financial goals. Mary Durocher is a Director at Cannara Biotech, Inc. and has over ten years of executive management and operations experience. Derek Stern is a Director and Chair of the Human Resources and Governance Committee and has significantly contributed to the development of corporate policies that emphasize transparency and accountability. Lastly, Zohar Krivorot is the Chairman and CEO of Cannara Biotech, Inc. and has played a major role in the progression and triumph of the company since its conception. These influential members of the Board lend their expertise and experience to a company that is quickly becoming a leader in the industry..

[Audio] Cannara Biotech, Inc. provides high-value products at attractive prices. Our Quebec-based operations give us a cost advantage, allowing us to offer superior quality with increased margins. Our three flagship brands each offer a unique identity and purpose, allowing our customers to make an informed decision. We are continuously reinvesting our capital to generate positive EBITDA, net income, and cashflow while organically growing the business. We are a successful, profitable, and fast-growing business with a strong capital base. With an experienced management team and board of directors, Cannara Biotech is well-positioned to achieve sustainable success in the future..

[Audio] Cannara Biotech, Inc. has two corporate facilities: their headquarters is located in Saint-Laurent, Quebec at 333 Decarie Boulevard, Suite 200 and another facility in Farnham, Quebec at 1144 Boulevard Magenta East. They are committed to moving the cutting edge of science and technology forward to create life-saving solutions..