FUTURE of CANNABIS is FUGION.
C A N N A B I S
Mission Statement
At Fugion Cannabis, our goal is to service the needs of medical cannabis patients who rely on consistent, quality cannabis medication to improve their quality of life, and at a price more compassionate and accessible than other providers on the market.
F U G I O N C A N N A B I S
At Fugion Cannabis, our goal is to service the needs of medical cannabis patients who rely on consistent, quality cannabis medication to improve their quality of life, and at a price more compassionate and competitive than other providers on the market.
Fugion Overview (Short Term)
BRIGHTONPROCESSING
FACILITY
DIRECTTO
PATIENTS
HEA
LTH INSURANCE
LY T E C LI N IC
F U G I O N C A N N A B I S
Business-to-Business
CompoundPharmacies
QUEBECCULTIVATION
FACILITY
BRIGHTONPROCESSING
FACILITY
GMP Export
Adult Use
LYTE C
LIN
IC
HEALTH INSU
RA
NCE
Fugion Overview (Long Term)
F U G I O N C A N N A B I S
The Future of Cannabis: Oils and Capsules
500
0
1,500
1,000
2,500
2,000
3,500
3,000
4,000
5,000
4,500
Apr. May Jun. Jul. Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May. Jun.
Dried CannabisOilLinear (Oil)
Market Opportunity: Growing Demand For Cannabis Oil
Source: Health Canada, Market Data 2017-2018Canadian Medical Cannabis Sales (kg)
FLOWER sales haveincreased by 18%,while OIL sales haveincreased by 92%
F U G I O N C A N N A B I S
Fugion Cannabis cautions that statements in this presentation (including any oral commentary that may accompany it) are forward-looking statements. All statements, other than statements of historical facts, contained in this presentation, including statements regarding our future results of operations or financial condition, prospects, business strategy and plans and objectives of management for future operations, the success of our sales and marketing efforts, the extent of market acceptance for our products and services, our ability to develop and bring to market new or enhanced products, our ability to develop our production facility, our international ventures, the cannabis and cannabis industry and regulatory environment and continuing uncertainty in the global economic environment, are forward-looking statements. The words “believe,” “will,” “may,” “estimate,” “continue,” “projection”, “anticipate,” “intend,” “should,” “plan,” “expect,” “predict,” “could,” “potentially” or other similar expressions are intended to identify forward-looking statements, although not all forward- looking statements contain these identifying words.
Actual results and trends in the future may differ materially from those suggested or implied by the forward-looking statements depending on a variety of factors. The forward-looking statements contained in this presentation speak only as of the date the statements are made and are based on information available to the Fugion Cannabis at the time those statements are made and/or management’s good faith belief as of that time with respect to future events. Such statements are based upon the current beliefs and expectations of Fugion Cannabis management and are subject to significant business, social, economic, political, regulatory, competitive and other risks, uncertainties, contingencies and other factors. Many assumptions are based on factors and events that are not within the control of Fugion Cannabis. Actual future results may differ materiallyfrom historical results or current expectations.
These risks, uncertainties and assumptions could adversely affect the outcome and financial effects of the plans and events described herein. In addition, even if the outcome and financial effects of the plans and events described herein are consistent with the forward-looking information contained in this presentation, those results or developments may not be indicative of results or develo ments in subsequent periods. Although Fugion Cannabis has attempted to identify important risks and factors that could cause actual actions, events or results to differ materially from those described in forward- looking information, there may be other factors and risks that cause actions, events or results not to be as anticipated, estimated or intended. Forward-looking information contained in this presentation is based on Fugion Cannabis’ current estimates, expectations and projections, which Fugion Cannabis believes are reasonable as of the current date. Fugion Cannabis can give no assurance that these estimates, expectations and projections will prove to have been correct. You should not place undue reliance on forward-looking information, which is based on the information available as of the date of this presentation. Forward-looking information contained in this presentation is as of the date of this presentation and, except as required by applicable law, the Company assumes no obligation to update or revise them to reflect new events or circumstances. Historical statements should not be taken as a representation that such trends will be replicated in the future.No statement in this presentation is intended to be nor may be construed as a profit forecast.
5
CapSules
De-Carb Oven
1
CO² Extraction
2
mixer
3
emulsifier
4 6
tinctures
Material is decarboxylated in a controlled unit to
convert THCA to active cannabinoids such as
THC and CBD. De-Carbing
Pre•Extraction results in a higher yield but removes a % of terpenes from the
starting material.
Standard laboratory mixers combine
ingredients with a magnetic stir method
and minimal heat.
50 - 100 lbs/day of material can be CO²
extracted in a single unit with minimal staff. The
extraction method produces a cannabis oil
consisting of activecannabinoids, fats, waxes,
and terpenes.
3
Ultrasonic Emulsifiers are used to create
nano-emulsions (com-pletely even mixture),
liposomes (toprotect cannabinoids
from natural degradation), and
through extra processes, create emulsions
between insoluble mate-rials. This results in relia-ble dosing in a variety of
Extraction Process
F U G I O N C A N N A B I S
QA QA QA QA
Timeline For 2019
F U G I O N C A N N A B I S
Dec.01.2019 aUG.1.2020
SEPT.1.2020JUN.01.2020
OCT.1.2020
RenovationBegins
RenovationsCompleted
EquipmentInstalled
ApplicationSubmitted
LicenseIssuedwith
Conditions
ProcessingLicenseIssued
SalesLicenseIssued
APR.01.2020
Brighton Project Overview
LABSANITATION
+LABELING
STORAGE+
INVENTORY
MECHANICALORDERPROCESSING
STORAGE
SHIPPING+
RECEIVING
SHIPPING+
RECEIVING
F U G I O N C A N N A B I S
Changes to Health Canada LP Applications
F U G I O N C A N N A B I S
Effective May 08, 2019 Health Canada no longer processes applications without proof of a fully built facility that meets or exceeds its requirements. The Confirmation of Readiness Letter, also known as the registration number, is no longer offered, making it more difficult to raise for new applicant corporations.
Rest assured that these changes have not and will not affect FUGION as we are currently in possession of the property, the structures require minimal renovations, and the funding for Phase 1 of our lab is nearly complete!
On the next slide is a graphic our progress in raising the required funds for FUGION.
Funding Required
PROPERTY AND APPLICATION
$1,000,000 CAD
TOTAL RENOVATIONS COST
OPERATING COSTS
$200,000 CAD
LABORATORY EQUIPMENT
$2,000,000 CAD
$200,000 CADINVENTORY
$200,000 CAD
F U G I O N C A N N A B I S
COMPLETED
COMPLETED
$0 / $200,000 RAISED
$750,000 / $950,000 RAISED
PHASE 1
$0 / $200,000 RAISED
OPERATING COSTS
$360,000 CAD
INVENTORY
$1,320,000 CAD
$0 / $360,000 RAISED
$0 / $1,320,000 RAISED
LABORATORY EQUIPMENT
$1,000,000 CAD$0 / $1,000,000 RAISED
PHASE 2 PHASE 3
Canadian Medical Market
MARKETAVERAGE
F U G I O N C A N N A B I S
OILS
CAPSULES
$0.117
$0.16
$0.09
$0.12
$0.11
$0.15
$0.12
$0.19
$0.08
$0.11
CannTrust has been shut down by Health Canada.
Selling Price
C.O.G.S
Yield
Profit Per Lb
$0.095/MG
$0.015* - $0.055**
64,512 mg of cannabinoids per lb
$6,128 - $3,500 = $2,628
*Fugereville (Phase 2) will provide lower cost of $0.015.**COGS is based upon supply agreements with dried cannabis producers. Calculations above are based on $0.055.
Revenue Projections
F U G I O N C A N N A B I S
What We Do
At Lyte Clinic we offer patients a wide range of services. Our doctors and nurses leave every patient well informed by tailoring prescriptions to directly meet all their needs. The patient’s application will then be processed and approved, and they have the ability to order from one of our signed licensed producers immediately. Recently Lyte Clinic has entered an agreement with
Fugion has entered into an LOI with Lyte Investments Inc to immediately on-board 5000 Lyte Patients when sales license is acquired at a pre-determined commission on sales. By even capturing just 40% of those patients, Fugion will be starting off with 2,000 active patients.
Patient Aquisition
F U G I O N C A N N A B I S
Tree of Knowledge to allow them exclusive access to Jack Nathan Clinics found inside Wal-Mart.They will be live in 70+ physical locations across Canada by the end of 06/20/20.
Fugereville Project Overview
F U G I O N C A N N A B I S
GMP Compliance allows an LP to import and export Cannabis and Cannabis Derivatives to other LP businesses with the appropriate permits to import the products. GMP Certification for Cannabis calls for controlled atmospheres with very limited exposure to uncontrollable elements, making it a product that relies heavily on electricity and indoor cultivation facilities.
Fugion has acquired over 200 acres of land in Quebec that has been approved for a cultivation LP and plans to construct a state of the art facility in the near future.
$0.04 USD / kWH $915 / acre Quality Ground Water
$0.04 USDQUEBEC $0.08 USD
CHINA
$0.08 USD
INDIA
$0.09 USD
SOUTH AFRICA
$0.10 USD
INDONESIA
$0.11 USDCANADA
$0.12 USD
SOUTH KOREA
$0.13 USD
BRAZIL
$0.13 USD
USA
$0.15 USD
TURKEY
$0.18 USD
COLOMBIA
$0.22 USD
UNITEDKINGDOM
$0.19 USD
AUSTRAILIA
$0.15 USD
FRANCE
$0.12 USD
JAPAN
$0.25 USD
MEXICO
$0.26 USD
PORTUGAL
$0.27 USD
ITALY
$0.33 USD
GERMANY
Fugerville Project Competitive Advantage
F U G I O N C A N N A B I S
GMP Compliance
F U G I O N C A N N A B I S
It is Fugion’s goal to become an exporter of GMP Certified Cannabis Oil tinctures and capsules by the end of 2020. The Fugerville Project will be designed to the strictest industry standards. Each location will work together to make Fugion a global competitor for GMP Cannabis Products with a continued emphasis on quality from seed to sale.
Future Products
FUGIONE-JUICE
FUGIONVAPE PENS
FUGIONBEVERAGES
F U G I O N C A N N A B I S
Vala Delights
F U G I O N C A N N A B I S
We have partnered up with Vala Delights
to create revolutionary edibles. The future
of medication will be in the form of delicious
desserts designed to create synergy with
cannabinoids. Keep tuned for these delicious
vegan, low glycemic and gluten free treats.
For more information on Vala Delights,
check out their website at ValaDelights.com
Fugion Board of DirectorsFayez Thawer
Managing Director for Tasico Hospitality. Also, the Chairman and co-founder of Lyte Resources, and co-founder of EPiC Inc, companies within the medicinal cannabis and wellness industries. He was recognized as one of Canada's Top Entrepreneurs by the Globe & Mail, TD Canada Trust and KPMG.
F U G I O N C A N N A B I S
Dean Elterman
Medical Director of the Prostate Cancer Rehabilitation Clinic at Princess Margaret Hospital Cancer Centre and a clinician Investigator in the Krembil Research Institute at Toronto Western hospital. Also, the Chief Medical Officer and Director on board of Molecular Science Corporation, and Medical Advisory Board for Strainprint, and CMO of Lyte Resources.
Mary Durocher
Involved in the industry since the infancy of the Marijuana for Medical Purposes Regulations introduction. In 2013, began taking on clients searching for expertise on cannabis licensing in the non-existent regulatory compliance world. Her team has licensed 16 Licensed Producers and worked over 60 applications.
Dean Elterman
Medical Director of the Prostate Cancer Rehabilitation Clinic at Princess Margaret Hospital Cancer Centre and a clinician Investigator in the Krembil Research Institute at Toronto Western hospital. Also, the Chief Medical Officer and Director on board of Molecular Science Corporation, and Medical Advisory Board for Strainprint, and CMO of Lyte Resources.
Sylvie Forget Swim
Sylvie joined Bourgeois Côté Forget in 2005, as a partner along-side her father who was one of the founding partners. In 2012, Bourgeois Côté Forget merged with Palladium Insurance to form a progressive local insurance brokerage with offices in both Orleans and Kanata. Sylvie specializes in working with dental and medical professionals and self-employed individuals, to ensure a proper understanding of both their commercial and personal insurance needs.
Ali Mohamed
Co-founder and CEO of Lyte Clinics. Recently Ali has landed a deal with Tree of Knowledge to allow Lyte Clinic to be present inside 14 Jack Nathan locations which are situated in side of Walmart Clinics. They will be the first cannabis company to be able to market physically inside of any Walmart location globally.Lyte Clinic currently has over 5000 patients and has become one of Canadas leading virtual telemedicine clinics. It is available across the country and completely covered by your local health care provider
Ian Morton
Currently Ian holds the title of Chairman of the Board of Ample Organics the leading provider of seed to sale software for the cannabis industry. Previously, he was the COO and a Director at Molecular Science Corp. Ian's responsibilities focused on operationalizing the business and overseeing the construction of our brand-new laboratory in Toronto. Ian also sits on the advi-sory board for Lyte Clinic where he works closely with the CEO and COO to develop and implement new strategies as the market evolves.
Advisory Board
Disclaimer
CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION
F U G I O N C A N N A B I S
December 2018 – This presentation was prepared by management of Fugion Cannabis. The information contained in this presentation (a) is provided as at the date hereof and is subject to change without notice, (b) does not purport to contain all the information that may be necessary or desirable to fully and accurately evaluate an investment in Fugion Cannabis, and (c) is not to be considered as a recommendation by Fugion Cannabis that any person make an investment. Any investment in the securities of Fugion Cannabis is speculative and involves a number of risks that should be considered by any prospective investor.
This presentation does not constitute an offer or solicitation in any jurisdiction to any person or entity and was not prepared in connection with any such offer or solicitation.
Readers of this presentation should not construe the contents of this presentation as legal, investment, tax or other advice.
Fugion Cannabis cautions that statements in this presentation (including any oral commentary that may accompany it) are forward-looking statements. All statements, other than statements of historical facts, contained in this presentation, including statements regarding our future results of operations or financial condition, prospects, business strategy and plans and objectives of management for future operations, the success of our sales and marketing efforts, the extent of market acceptance for our products and services, our ability to develop and bring to market new or enhanced products, our ability to develop our production facility, our international ventures, the cannabis and cannabis industry and regulatory environment and continuing uncertainty in the global economic environment, are forward-looking statements. The words “believe,” “will,” “may,” “estimate,” “continue,” “projection”, “anticipate,” “intend,” “should,” “plan,” “expect,” “predict,” “could,” “potentially” or other similar expressions are intended to identify forward-looking statements, although not all forward- looking statements contain these identifying words.
Actual results and trends in the future may differ materially from those suggested or implied by the forward-looking statements depending on a variety of factors. The forward-looking statements contained in this presentation speak only as of the date the statements are made and are based on information available to the Fugion Cannabis at the time those statements are made and/or management’s good faith belief as of that time with respect to future events. Such statements are based upon the current beliefs and expectations of Fugion Cannabis management and are subject to significant business, social, economic, political, regulatory, competitive and other risks, uncertainties, contingencies and other factors. Many assumptions are based on factors and events that are not within the control of Fugion Cannabis. Actual future results may differ materiallyfrom historical results or current expectations.
These risks, uncertainties and assumptions could adversely affect the outcome and financial effects of the plans and events described herein. In addition, even if the outcome and financial effects of the plans and events described herein are consistent with the forward-looking information contained in this presentation, those results or developments may not be indicative of results or develo ments in subsequent periods. Although Fugion Cannabis has attempted to identify important risks and factors that could cause actual actions, events or results to differ materially from those described in forward- looking information, there may be other factors and risks that cause actions, events or results not to be as anticipated, estimated or intended. Forward-looking information contained in this presentation is based on Fugion Cannabis’ current estimates, expectations and projections, which Fugion Cannabis believes are reasonable as of the current date. Fugion Cannabis can give no assurance that these estimates, expectations and projections will prove to have been correct. You should not place undue reliance on forward-looking information, which is based on the information available as of the date of this presentation. Forward-looking information contained in this presentation is as of the date of this presentation and, except as required by applicable law, the Company assumes no obligation to update or revise them to reflect new events or circumstances. Historical statements should not be taken as a representation that such trends will be replicated in the future.No statement in this presentation is intended to be nor may be construed as a profit forecast.