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Long-term investmentsin sustainability.
May 2015
The problems are familiar…• Too much CO2 causing unpredictable
climate change
• Communities struggling to retain their economic base and identity
• Increasing concern about GMOs, pesticides, and other contaminants in our food
• Water shortages causing global food insecurity
but there is still good news.
We see tremendous cooperation, innovation, and possibilities.
Out of crisis comes opportunity.Here is one:
Fukushima on March 11, 2011Fukushima I Nuclear Power Plant hit by a tsunami triggered by 9.0 Tōhoku earthquake
Three of the plant's six nuclear reactors melted down
Joined Chernobyl to measure Level 7 on the International Nuclear Event Scale.
Mass Evacuations
Japan evacuated 150,000 residents from a 20-mile radius.
U.S. Nuclear Regulatory Commission recommended 2 million people from a 50-mile radius.
Out of crisis comes opportunity
Out of Japan’s Nuclear Disaster, New Indoor Farms Grow 100x More Food
http://miraigroup.jp/en/
Japan’s new greenhouse technology provided food even in the most hostile environment: 24/7/365
Japan’s Greenhouse Technology
• Hydroponics feeds Japan’s displaced residents• Proven installations• Technical assistance to Japanese Antarctic base
Showa Station• Expanding into China, U.S., Southeast Asia
The Opportunity
Greens, Herbs, Berries
Clean, non-GMO, no pesticidesWith 99% less water100 times/m2 than soil farmingAny climate, year aroundPackaged and delivered Organically Grown, Local Food at a Profit
This Is How We Can Do It
Surplus and/or wasted energyUnusable landClimate controlled buildingsMulti-tier growing platformsHydroponic mediumPolarized waterHigh nutrient, CO2 enriched
Multi-spectrum LED lightingExperienced managementInsured, risk-free investment
Surplus Energy
Biomass
Ethanol
many other industrial processes…
De-salination
Cement
Outline Team Markets Site/Tech Funding Financials
Other Energy
Natural GasCo-Generation
Wind/Solar Hybrid
Geothermal
Unusable Land
Outline Team Markets Site/Tech Funding Financials
Climate Controlled BuildingsStructurally Integrated Panels
1. Steel sheathing
2. Non-CFC polyurethane core, R60
Outline Team Markets Site/Tech Funding Financials
Our Hydroponic Advantages• 99 % less water usage• Polarized, nutrient rich water• CO2 enrichment
• No soil-borne diseases• No pesticides • No animal waste fertilizers• Year around production = stable costs and revenue
Outline Team Markets Site/Tech Funding Financials
Multi-spectrum LED lighting
Outline Team Markets Site/Tech Funding Financials
Packaging and Delivery
• Integrated, efficient, best of class
• Shelf ready• Production local to markets• Maintains freshness
Outline Team Markets Site/Tech Funding Financials
Benefits To Hosting Community
Local employmentinitial constructionlong-term clean tech jobs
Local revenueconstructionproperty taxesspinoffs to other businesses
Local prideleading edge sustainabilityinternational profileincreased self sufficiency
Outline Team Markets Site/Tech Funding Financials
Management Team
Outline Team Markets Site/Tech Funding Financials
Michel Alarcon, President and CEO• 30-year domestic and international career• Government, aeronautics, financial services, health
care, and manufacturing • Building strategic alliances with industry “best of
breed” Americas, Asia, and Europe
Paul Jemmett, Senior VP Special Projects• Canadian Institute of Management • 25 years of experience in development and delivery• Training programs, quality assurance, new products
and services, new markets, corporate security, and customer service and help desk.
Outline Team Markets Site/Tech Funding Financials
John Johnson, Sr. VP Operations• Directed $70m conversion of a 660,000 sq. ft.
hospital from an inpatient to an outpatient facility• Director of Facilities for the City of Kingston with
151 buildings in his portfolio• Led the way for Cienfuegos, Cuba and Kingston,
Ontario to become Sister Cities
Brian Heinz, VP Purchasing• More than 20 years experience in procurement,
contract negotiations, and supplier management• Aeronautics industry • Purchasing process efficiency and cost
management
Outline Team Markets Site/Tech Funding Financials
Steven Moore, VP Communications• Communications and sustainability at Queen’s
University• Clients included Canada’s major banks and major
retailers• Works exclusively with organizations promoting
sustainability• Over 90 articles and four columns in popular
publications • Organic off-the-grid farm, designed earth-sheltered
home.Philippe Archambault, VP Development• Over 20 years of management in oil & gas, retail,
public services (healthcare), gaming, transport, and manufacturing
• United Kingdom and Canada• Health care and logistics• Community building programs in the Kingston region.
Ron Bogart, CFO• Founding Member Mississauga High Technology
Association• Former partner of Ernst & Young• President and Chief Financial Officer of McLaughlin
family’s private investment capital corporation, Greenbriar Holdings Limited
Outline Team Markets Site/Tech Funding Financials
Operations Team
Dario Echeverry, General Manager• Civil engineer specializing in environmental engineering and
banking• Started one of the first environmental engineering firms in
Colombia• Directed the acquisition of Banco de Colombia, the largest
Colombian bank.• Former President and CEO of Inmobiliaria Banco S.A., the largest
Colombian construction firm• Co-directed Fiducolombia S.A., the largest Colombian trust
corporation
Henry Persoon, Chief Technology Officer• World-renowned horticulturist• Pioneered the hydroponic growing of ornamental flowers and
roses• Operated a hydroponic farm in Tortola, British Virgin Islands• Family business is one of the largest flower bulb suppliers in the
world.
Outline Team Markets Site/Tech Funding Financials
Alexandre Gomez –Project Advisor • Raised on a hydroponic farm• Growing plants his entire life• Knows the ups and downs of hydroponic greenhouses• Experience in aquaponics, aeroponics, soil row farming
Ashley Peebles - Agriculturalist• agriculturalist for over 15 years• trained by some of the best master growers in California• expertise in commercial growing of indoor plants• specializing in cannabis and other medicinal herbs
Outline Team Markets Site/Tech Funding Financials
Fresh Produce Markets
ObservationsResilient during economic downturnsGlobal trend toward clean, natural foodConsistently high demandExtreme weather conditions damaging field cropsDrought conditions creating water shortages
AssumptionsWeather patterns continue to be unpredictableOrganic and local demand will continue to increaseTransportation will become increasingly expensive
Outline Team Markets Site/Tech Funding Financials
Equivalency ArrangementOrganic operations certified by the USDA organic regulations or Canada Organic Regime may be labeled and sold as organic in both countries.
=
Outline Team Markets Site/Tech Funding Financials
Products
5% Berries
10% Medicinal Herbs
20% Lettuce
65% Micro Greens
Outline Team Markets Site/Tech Funding Financials
Two Million Pounds a WeekConditional Purchase Agreements
Outline Team Markets Site/Tech Funding Financials
Integrated Controls
• Filtered air and water• MCS® natural gas-fired on-site power
technology • Component systems are portable, modular, built
and assembled off-site• Minimal site work• Scalable
Outline Team Markets Funding FinancialsSite/Tech
Proven Technology
• High-efficiency automated multi-
spectrum solid state lighting
• Complete information management and environmental controls
• State of the art algae nutrient
systems • Structural Insulated Panel building
systems
Outline Team Markets Funding FinancialsSite/Tech
Proprietary Technology
Patented water treatment process • improved plant health• larger plants with higher levels of nutrients• less time than standard growing protocols• prevents mold and bacteria, extends shelf
life• high and stable oxygen reduction potential
(ORP)
Technology + staff expertise providecredible presence on which to build a successful long-term enterprise
Outline Team Markets Funding FinancialsSite/Tech
Sample Site - St. Marys, Ontario
Outline Team Markets Funding FinancialsSite/Tech
• Eight million people in southern Ontario market
• Three main distributors an hour’s drive away
• Underserved with organic produce
• Nov-Apr, Canada imports most fresh produce
• Local production reduces costs and carbon footprint
• Six million people in Detroit area within three hours
Construction Requirements
Outline Team Markets Funding FinancialsSite/Tech
25 acre pilot site
Outline Team Markets Funding FinancialsSite/Tech
Intention of interest from Scotiabank to fund 75% of project construction ($26 million) as long -term debt
For two years, then replaced with 10-year mortgage
Stipulation of an in-place insurance policy and $9 million in seed capital
Cash Flow projections indicate repayment of mortgage well within 10 years.
Risk Insurance
1. “All Risk” Construction and Operational Coverage
2. Comprehensive Boiler and Machinery with Business Interruption
3. Customer and Supplier Risk (including feedstock)
4. Credit Risk of Customer, Payments and Bankruptcy
5. Transportation, including ocean cargo, plus delay in start-up of the project
6. Third Party Liability Outline Team Markets Funding FinancialsSite/Tech
Financial Assumptions
Outline Team Markets Funding FinancialsSite/Tech
1) Lease land, obtain power and heat/cooling for flat $750K/month commencing in month 12
2) Power requirement
Months 1-6 0 MGW $2KMonths 6-9 1 MGW $125KMonths 9 – 12 3 MGW $375KMonth 13 forward 6 MGW $750K
3) Construction draws at 6% - no principal repayments for 1 year.4) Construction financing replaced by mortgage with 10 year term5) Construction team in place until month 12
Financial Assumptions
Outline Team Markets Funding FinancialsSite/Tech
6) 25 year amortization at 6% at the end of year 1
7) Salaries are indexed - 2% /year
8) Insurance expense on funding draws - 2%/annum of amount outstanding
9) Depreciation and amortization - straight line over 10 years; half rate in acquisition year
10) Corporate income tax rate - 35%
Revenue Year 1
Month Micro Greens Lettuce Total Revenue12345678 1.0 0.8 1.89 1.0 0.8 1.810 1.0 0.8 1.811 1.8 1.0 2.812 1.8 1.0 2.8Total 11.1
Outline Team Markets Funding FinancialsSite/Tech
($CDN million)
Revenue Year 2
Outline Team Markets Funding FinancialsSite/Tech
Month MedicinalHerbs
Strawberries %Blueberries
Micro Greens Lettuce Total
1 0.03 0.02 2.6 1 3.652 0.01 0.02 2.6 1 3.633 0.03 0.02 2.6 1 3.654 0.01 0.02 2.6 1 3.635 0.03 0.02 2.6 1 3.656 0.01 0.02 2.6 1 3.637 0.03 0.02 2.6 1 3.658 0.01 0.02 2.6 1 3.639 0.03 0.02 2.6 1 3.6510 0.01 0.02 2.6 1 3.6311 0.03 0.02 2.6 1 3.6512 0.01 0.02 2.6 1 3.63Total 44.0
($CDN million)
Cash Flow Years 1 & 2
Outline Team Markets Funding FinancialsSite/Tech
($CDN)Numbers may differ slightly due to rounding
Balance Sheet Years 1 & 2
Outline Team Markets Funding FinancialsSite/Tech
($CDN)
The problems are familiar…• Too much CO2 causing unpredictable
climate change
• Communities struggling to retain their economic base and identity
• Increasing concern about GMOs, pesticides, and other contaminants in our food
• Water shortages causing global food insecurity
We can help.
Please join us.