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INVESTOR PRESENTATION€¦ · the launch of Wii, Wii U, Nintendo 3DS and various software...

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INVESTOR PRESENTATION JULY 2020 | TSXV: META
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Page 1: INVESTOR PRESENTATION€¦ · the launch of Wii, Wii U, Nintendo 3DS and various software franchises. JOY AVZAR VICE PRESIDENT & LEGAL COUNSEL Former head of Real Estate and Corporate

INVESTOR PRESENTATIONJ U L Y 2 0 2 0 | T S X V : M E T A

Page 2: INVESTOR PRESENTATION€¦ · the launch of Wii, Wii U, Nintendo 3DS and various software franchises. JOY AVZAR VICE PRESIDENT & LEGAL COUNSEL Former head of Real Estate and Corporate

FORWARD LOOKING INFORMATIONCertain statements and information set forth in this Presentation constitute "forward-looking statements" and "forward-looking information" under applicable securities laws (collectively, "forward-looking statements") in respect to the Corporation. By their nature,forward looking statements are subject to a variety of factors that could cause actual results to differ materially from the results suggested by the forward looking statements. In addition, the forward looking statements require the Corporation to make assumptionsand are subject to inherent risks and uncertainties. Except for statements of historical fact, certain information contained herein constitutes forward-looking statements which include management's assessment of future plans and operations and are based on currentinternal expectations, estimates, projections, assumptions and beliefs, which may prove to be incorrect. There is significant risk that the forward looking statements will not prove to be accurate, that the Corporation’s assumptions may not be correct and that actualresults may differ materially from such forward looking statements. Accordingly, readers should not place undue reliance on the forward looking statements.

Forward-looking statements contained in this Presentation include, but are not limited to, future developments, including statements with respect to the acquisition of additional locations throughout Canada, the opening of additional locations throughout Canada, theestimated buildout production costs and gross margins for dispensaries, the success of the Corporation’s pharmacy operations, the approval of pending license applications, future financial performance including the sufficiency of cash on hand, the ability of theCorporation to generate positive cash flow and the ability of the Corporation to meet its obligations as they become due, the successful execution of the Corporation’s business strategies, goals, objectives or prospects including its business model, M&A strategy andmission and the exploration of other business opportunities in the cannabis industry, the use and benefits of the Corporation’s products and services, the Corporation’s favourable position in the market on a go-forward basis, demographic and market size/trends,forecasts of revenue and financial projections/growth potential/opportunities, competitive analysis, proposed synergies, projected milestones and other expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events orperformance, expected regulatory filings, review and approval dates, go forward management of the Corporation, start-up timelines and schedules, statements related to the continued overall advancement of the Corporation’s business and the Corporation’s plan tobecome a model for legalized safe distribution of cannabis and cannabis products throughout Canada, expected operations and possible future action on the Corporation’s part. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as “plans “, “expects” or “does not expect”, “is expected”, “proposed” “budget”, “scheduled”, “estimates “, “forecasts “, “intends “, “anticipates” or “does not anticipate”, or “believes; or variations of such words and phrases or statementsthat certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”.

Forward-looking statements are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance or achievements of the Corporation to be materially different from those expressed orimplied by such forward-looking statements. Such factors include, but are not limited to: general business, economic, competitive, political and social conditions; the accuracy of cost estimates; ability to obtain sufficient capital on satisfactory terms; changes incustomer demand; the successful and timely implementation of projects; continuance of the go forward management team’s position with the Corporation; the impact of changes in applicable laws and regulations at the Federal, Provincial and Municipal levels; theresults of continued development, marketing and sales; the risk that retail locations may not be opened or acquired; and the risk that pending licenses will not be granted approval. Although management of the Corporation believes that the expectations reflected insuch forward-looking statements are based upon reasonable assumptions and have attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that causeresults not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should notplace undue reliance on forward looking statements. The Corporation’s forward-looking statements are made only as of the date of this Presentation or the dates specifically referenced in this Presentation and the Corporation does not undertake to update or reviseany forward-looking statements to reflect new information or future events or circumstances, unless specifically required by applicable securities legislation. All forward looking statements contained in this presentation are expressly qualified by this cautionarystatement.

This Presentation contains future oriented financial information (“FOFI”) within the meaning of applicable securities laws about prospective results of operations, financial position or cash flows, based on assumptions about future economic conditions and courses ofaction and that is not presented in the format of a historical balance sheet, income statement or cash flow statement. The FOFI has been prepared by the Corporation’s management to provide an outlook of the Corporation’s activities and results. The FOFI has beenprepared based on a number of assumptions including the assumptions discussed above and assumptions with respect to the costs and expenditures to be incurred by the Corporation, capital expenditures and operating costs, taxation rates for the Corporation andgeneral and administrative expenses. Management does not have firm commitments for all of the costs, expenditures, prices or other financial assumptions used to prepare the FOFI or assurance that such operating results will be achieved and, accordingly, thecomplete financial effects of all of those costs, expenditures, prices and operating results are not objectively determinable.

The actual results of operations of the Corporation and the resulting financial results will likely vary from the amounts set forth in the analysis presented in this Presentation, and such variation may be material. The Corporation and its management believe that theFOFI has been prepared on a reasonable basis, reflecting management’s best estimates and judgments. However, because this information is highly subjective and subject to numerous risks including the risks discussed above, it should not be relied on as necessarilyindicative of future results. Except as otherwise required by applicable securities laws, the Corporation undertakes no obligation to update such FOFI and forward-looking statements and information.

The Presentation Materials reference to certain non-IFRS measures including “EBITDA” and to certain operating metrics in the industry. Non-IFRS measures including industry metrics do not have a standardized meaning prescribed by IFRS and are therefore unlikely tobe comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of our results of operations from management’s perspective.Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS.

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Page 3: INVESTOR PRESENTATION€¦ · the launch of Wii, Wii U, Nintendo 3DS and various software franchises. JOY AVZAR VICE PRESIDENT & LEGAL COUNSEL Former head of Real Estate and Corporate

READER’S ADVISORYThis corporate presentation (the “Presentation”) has been prepared by management of Meta Growth Corp. (the “Corporation”), formerly National Access Cannabis Corp.,

as of July, 2020, and is based on public information and the Corporation’s confidential information. The information contained in this Presentation is subject to updating,

completion, revision, verification and amendment without notice which may result in material changes. This Presentation is not intended to provide financial, tax, legal or

accounting advice and does not constitute an offer to sell to any person, or a general offer to the public of, or the general solicitation from the public of offers to subscribe

or purchase securities of the Corporation. No securities commission or similar regulatory authority in Canada has reviewed or in any way passed upon the Presentation,

and any representation to the contrary is an offence.

Certain information contained herein includes market and industry data that has been obtained from or is based upon estimates derived from third party sources, including

industry publications, reports and websites. Third party sources generally state that the information contained therein has been obtained from sources believed to be

reliable, but there is no assurance or guarantee as to the accuracy or completeness of included data. Although the data is believed to be reliable, neither the Corporation

nor its agents have independently verified the accuracy, currency or completeness of any of the information from third party sources referred to in this presentation or

ascertained from the underlying economic assumptions relied upon by such sources. Any unauthorized use of this Presentation is strictly prohibited.

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Page 4: INVESTOR PRESENTATION€¦ · the launch of Wii, Wii U, Nintendo 3DS and various software franchises. JOY AVZAR VICE PRESIDENT & LEGAL COUNSEL Former head of Real Estate and Corporate

COMPANY OVERVIEW

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Page 5: INVESTOR PRESENTATION€¦ · the launch of Wii, Wii U, Nintendo 3DS and various software franchises. JOY AVZAR VICE PRESIDENT & LEGAL COUNSEL Former head of Real Estate and Corporate

A LEADING NATIONAL RECREATIONAL CANNABIS RETAILERRETAIL ENTERPRISE NETWORK OF 35 LOCATIONS*

* Corporately owned and operated, or services agreements locations.** Q2 quarter ended February 29, 2020

1 $13.5M in Retail Revenue Last Reported Quarter (30% Retail Gross Margin)**

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Roadmap for Improvement in Average Revenue Per Store & Gross Margin

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Senior Management Team with Extensive Retail & Brand Experience

2 Ontario Market Represents Substantial Growth Potential & is our Top Priority

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Significant Embedded Value – We Control a Growing Customer Data Set

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Page 6: INVESTOR PRESENTATION€¦ · the launch of Wii, Wii U, Nintendo 3DS and various software franchises. JOY AVZAR VICE PRESIDENT & LEGAL COUNSEL Former head of Real Estate and Corporate

CALGARY, AB

EDMONTON, AB

ST. ALBERT, AB

LETHBRIDGE, AB

AIRDRIE, AB

35 LOCATIONS IN RETAIL NETWORK

TORONTO, ON

KITCHENER, ON*

WINNIPEG, MB

BRANDON, MB

OPASKWAYAK, MB

THOMPSON, MB

MORDEN, MB

MOOSE JAW, SK

11 Meta Cannabis Co.*services agreement

23 NewLeaf Cannabis

4

1

1

1

1

1

13

4

1

3

23 81

2

6

1 Sicamous Trading Company*services agreement

SICAMOUS, BC*1

1

1

2

1

Page 7: INVESTOR PRESENTATION€¦ · the launch of Wii, Wii U, Nintendo 3DS and various software franchises. JOY AVZAR VICE PRESIDENT & LEGAL COUNSEL Former head of Real Estate and Corporate

WE KNOW RETAILPROVEN TRACK RECORD OF RETAIL EXPANSION & EXCELLENCE

⌲ 35 Stores in Retail Network⌲ 5 Provinces⌲ 66K+ Sq. Ft. Retail Space

⌲ $13.5M in Quarterly Retail Revenue**⌲ Experienced Retail Team of 350+ Employees

⌲ 950+ SKUs ⌲ 2.3M+ Transactions*⌲ $39 Average Purchase Value*

Metrics to date:

7* As of April 2020** As of Q2 quarter ended February 29, 2020

Page 8: INVESTOR PRESENTATION€¦ · the launch of Wii, Wii U, Nintendo 3DS and various software franchises. JOY AVZAR VICE PRESIDENT & LEGAL COUNSEL Former head of Real Estate and Corporate

CANADIAN RETAILERS OWN THE CUSTOMER RELATIONSHIPThe retailer controls the relationship with both the consumer and the supply chain

⌲ We control the shelf and guide purchasing

⌲ We provide marketing in an age restricted environment

Real-time data drives inventory management, real-estate strategy, retail merchandising

⌲ We collect, aggregate and disseminate critical data

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Page 9: INVESTOR PRESENTATION€¦ · the launch of Wii, Wii U, Nintendo 3DS and various software franchises. JOY AVZAR VICE PRESIDENT & LEGAL COUNSEL Former head of Real Estate and Corporate

PREPARING FOR NEW PRODUCTS

⌲ Adjusting retail environment & merchandising

⌲ Adapting to a more balanced and sustained supply from LPs

⌲ Educating store staff and consumer on the new product choices and cannabis in general

⌲ Implementing new technology at retail and online

CANNABIS 2.0 PRODUCT & MARKET EXPANSION

PREPARING FOR NEW MARKETS

⌲ More players

⌲ Saturated markets

⌲ Growth markets (ON, BC)

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Page 10: INVESTOR PRESENTATION€¦ · the launch of Wii, Wii U, Nintendo 3DS and various software franchises. JOY AVZAR VICE PRESIDENT & LEGAL COUNSEL Former head of Real Estate and Corporate

WE ARE OPERATING EXPERTSProven Management Team with Retailing, Cannabis, Real Estate, HR and Compliance Expertise

TEMPLATED store design, staffing and training

CENTRALIZED SUPPORT for efficiencies of scale – HR, marketing, finance, legal

EXPERIENCED real estate management identifying best locations and leases

OUR BUSINESS MODEL & EXPERTISE ALLOWS SCALABLE OPERATIONS

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Page 11: INVESTOR PRESENTATION€¦ · the launch of Wii, Wii U, Nintendo 3DS and various software franchises. JOY AVZAR VICE PRESIDENT & LEGAL COUNSEL Former head of Real Estate and Corporate

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RETAIL BANNER |

⌲ 2 stores opened in Ontario (Toronto and Kitchener), more stores planned for 2020+

⌲ New retail design

⌲ Efficiency & operational enhancements

⌲ Customer experience is paramount

⌲ Rich retail environment focused on merchandising, live sell

⌲ META is all about vibe

Welcome to META 2.0

Page 12: INVESTOR PRESENTATION€¦ · the launch of Wii, Wii U, Nintendo 3DS and various software franchises. JOY AVZAR VICE PRESIDENT & LEGAL COUNSEL Former head of Real Estate and Corporate

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RETAIL BANNER |

Convenient Comfortable Community Focused

⌲ Network of 23 stores in Alberta – Calgary, Edmonton, Lethbridge

⌲ NewLeaf is your friendly neighborhood cannabis shop

⌲ Safe, inclusive & educational cannabis experience

Page 13: INVESTOR PRESENTATION€¦ · the launch of Wii, Wii U, Nintendo 3DS and various software franchises. JOY AVZAR VICE PRESIDENT & LEGAL COUNSEL Former head of Real Estate and Corporate

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RETAIL BANNER |

Quality Expertise Responsibility

⌲ Network of 9 stores – 8 in Manitoba, 1 in Saskatchewan

⌲ Premium cannabis retail driven by innovation, technology & service

⌲ Welcoming, inviting & educational cannabis experience

Page 14: INVESTOR PRESENTATION€¦ · the launch of Wii, Wii U, Nintendo 3DS and various software franchises. JOY AVZAR VICE PRESIDENT & LEGAL COUNSEL Former head of Real Estate and Corporate

VALUE CREATION BY INCREASING SAME STORE SALES & GROSS MARGIN

The projections in this slide are subject to a variety of factors which management cannot guarantee the accuracy of. Management used assumptions in creating this slide based on management’s judgement, analysis and internal forecasts.

Increasing Same Store Sales

E-Commerce Expansion

Improved LP Supply

Increased Focuson Accessories

Increased Product Assortment

Programs to Increase Average

Customer Purchase

Improved Product Quality and Consistency

Increasing Gross

Margin

Data Monetization

Evolving Pricing Strategy

Increased Focuson Accessories

Impact of Edibles& Concentrates

Introduction of White Label Products

Management Services

Agreements

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Page 15: INVESTOR PRESENTATION€¦ · the launch of Wii, Wii U, Nintendo 3DS and various software franchises. JOY AVZAR VICE PRESIDENT & LEGAL COUNSEL Former head of Real Estate and Corporate

INVESTOR INFORMATION

CAPITALIZATION TABLE (AS OF MAY 21, 2020)

COMMON SHARES 236,679,786

OPTIONS 5,536,892

WARRANTS 54,536,422

RSU’s 4,264,601

CONVERTIBLE DEBT MATURES NOV 30, 2021

$21,150,000 convertible @ $1.08 per Common Share

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Page 16: INVESTOR PRESENTATION€¦ · the launch of Wii, Wii U, Nintendo 3DS and various software franchises. JOY AVZAR VICE PRESIDENT & LEGAL COUNSEL Former head of Real Estate and Corporate

MANAGEMENT TEAM

CHRISTOPHERKANECHIEF OPERATING OFFICER

Former SVP of Operations and Strategy – Katz Group Canada/Drug Trading as well as VP of Category Management & Shared Services at McKesson Canada. Previously VP of Operations at Sobeys, and VP of Merchandising and Category Management at Price Chopper.

MARKGOLIGERCHIEF EXECUTIVE OFFICER

Former COO of QualicareFamily Homecare, previously COO of Right at Home Canada, and VP Sales and Operations of CrestcomOntario.

MATTRYANVICE PRESIDENT OF MARKETING

Former lead at Nintendo of Canada for retail & channel marketing as well as communications, marketing gaming experiences to the masses via product-to-market campaigns for the launch of Wii, Wii U, Nintendo 3DS and various software franchises.

JOY AVZARVICE PRESIDENT & LEGAL COUNSEL

Former head of Real Estate and Corporate Services for Royal & Sun Alliance Insurance Company of Canada (RSA). Prior to this acted as the Director of Legal and Assistant Corporate Secretary for RSA.

MIKE COSICCHIEF FINANCIALOFFICER

Former CFO of Lithium Americas Corporation and DLT Labs Inc. Current Chair of the Audit Committee of Eastern Platinum Limited.

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Page 17: INVESTOR PRESENTATION€¦ · the launch of Wii, Wii U, Nintendo 3DS and various software franchises. JOY AVZAR VICE PRESIDENT & LEGAL COUNSEL Former head of Real Estate and Corporate

MARK GOLIGERDIRECTOR

As the former COO of QualicareFamily Homecare, Mr. Goligeroversaw the expansion of their business units across Canada and the United States.

As the former COO of Right at Home Canada, Mr. Goligerreduced caused employee turnover by 84%.

History of empowering front-line staff to provide high touch customer experience.

CHIEF CHRISTIANSINCLAIRDIRECTOR

Member of Opaskwayak Cree Nation (OCN, Manitoba), Co-chair of Manitoba’s Northern Economic Development Strategy.

Has worked with aboriginal groups focused on corporate development for major natural resource projects since 2002.

Well connected and regarded by the First Nations communities across Manitoba.

ANDREAELLIOTTDIRECTOR

Ms. Elliott brings over 20 years of retail executive experience to Meta Growth. She currently is Executive Vice President, Direct to Consumer at Moose Knuckles, a successful global Canadian luxury outerwear brand. Previously Andrea founded r2 retail resources, was VP & General Manager of PVH Canada, as well as an EVP at PwC and COO with Karabus Management, a wholly owned subsidiary of PwC focused on the retail industry. Prior to PwC, Ms. Elliott was the Director of Canada Operations for Williams-Sonoma Inc. and held various senior positions at Gap Inc.

BOARD OF DIRECTORS

CHRISTOPHER BRAWNDIRECTOR

Mr. Brawn brings over 30 years of real estate experience to Meta Growth, including 15 years as Vice President of Real Estate at Dollarama Inc. He is currently Principal of AEffectiveReal Estate Limited. Mr. Brawn obtained his HBA and MBA from the Ivey Business School at Western University.

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MICHAELSALIKENDIRECTOR

Partner and 11 years experience at Borden Ladner Gervais LLP, Canada’s largest law firm. Mr. Saliken has provided corporate advisory and legal services to companies of all stages, from start-ups to international exchange-listed companies.

Focused practice on advising information technology, entheogen and cannabis industry clients, in addition to working with private equity firms, investment banks and investment funds in those industries.

Page 18: INVESTOR PRESENTATION€¦ · the launch of Wii, Wii U, Nintendo 3DS and various software franchises. JOY AVZAR VICE PRESIDENT & LEGAL COUNSEL Former head of Real Estate and Corporate

INVESTOR HIGHLIGHTS

The projections in this slide are subject to a variety of factors which management cannot guarantee the accuracy of. Management used assumptions in creating this slide based on management’s judgement and analysis.* Corporately owned and operated, or services agreements locations.

1 A Leading Canadian Recreational Cannabis Retailer by Revenue

4 Cannabis Retail First Mover Advantage

5 Management Team & Board with Track Record of Creating Shareholder Value

2 35 Stores in Retail Enterprise Network*

6 Leading Retail Data Collection

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Page 19: INVESTOR PRESENTATION€¦ · the launch of Wii, Wii U, Nintendo 3DS and various software franchises. JOY AVZAR VICE PRESIDENT & LEGAL COUNSEL Former head of Real Estate and Corporate

THANK YOU


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