To the frontier of the global medical cannabis markets · HOLYCANNA is an Israeli based cannabis...

Aura Health Inc. (CSE:BUZZ)

Q3 2018

INVESTOR DECK

AURA HEALTH INC. (CSE:BUZZ)

To the frontier of the global medical cannabis markets


Forward Looking Statements

The information contained in this presentation does not purport to be all-inclusive or to contain all information that prospective

investors may require. Prospective investors are encouraged to conduct their own analysis and reviews of the Aura Health Inc. (the

"Company“) and of the information contained in this presentation. Prospective investors should consult their own professional

advisors to assess their potential investment in the Company. The remarks contained in this presentation (“Presentation”) may

contain forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995) relating to the

Company’s operations or to its business environment. These statements are identified by the use of forward-looking terminology such

as “believes,” “plans,” “intend,” ”scheduled,” “potential,” “continue,” “estimates,” “hopes,” “goal,” “objective,” “expects,” “may,” “will,”

“should” or “anticipates” or the negative thereof or other variations thereon or comparable terminology, or by discussions of strategy

that involve risks and uncertainties. The safe harbor provisions of Section 21E of the Securities Exchange Act of 1934, as amended,

and Section 27A of the Securities Act of 1933, as amended, apply to forward-looking statements made by the Company. The reader is

cautioned that no statements contained in Presentation should be construed as a guarantee or assurance of future performance or

results. These forward-looking statements involve risks and uncertainties, including those identified within this Presentation. The

actual results that the Company achieves may differ materially from any forward-looking statements due to such risks and

uncertainties. These forward-looking statements are based on current expectations, and the Company assumes no obligation to

update this information. Readers are urged to carefully review and consider the various disclosures made by the Company in it’s

reports filed on SEDAR that attempt to advise interested parties of the risks and factors that may affect the Company’s business. The

information in this current report shall not be incorporated by reference into any registration statement pursuant to the Securities Act

of 1933, as amended. The furnishing of the information in this Presentation is not intended to, and does not, constitute a

representation that such furnishing is required by Regulation FD or that the information this current report contains is material

investor information that is not otherwise publicly available. This summary has been provided to the recipient for information

purposes only and no representation or warranty, express or implied, is made as to the completeness or accuracy of the information

contained herein. The contents are not to be reproduced or distributed to the public or press. The information contained herein is not

guaranteed as to its accuracy or completeness. Throughout this presentation various logos and trademarks will be used. These

trademarks and logos are the property of their respective owners. An investment in the Company's securities should be considered

highly speculative. There is no guarantee that an investment in the Company will earn any positive return in the short or long term.

An investment in the Company is appropriate only for investors who have the capacity to absorb a loss of some or all of their

investment. There are certain risk factors associated with an investment in the Company’s securities.

2


Mission

Aura Health’s mission is to build an international

network of vertically integrated businesses in the

medical cannabis industry.

Our mid term goal is to grow high quality and low

cost flower in Israel to process into extracts and

other end products in Europe for the purpose of

distributing to medical cannabis jurisdictions in

Europe.

3


David Posner

Chairman

• Mr. Posner acted as Chief Executive Officer of NHII. (CSE:EAT)

from May 2014 to July 2016 and remains the Chairman of

the Board of NHII.

• Prior to joining NHII, he had a 20-year career running

privately held real estate funds both commercial and

residential based in Toronto, where he was involved both in

negotiating acquisitions and long-term leases.

• Mr. Posner holds a Bachelor of Arts degree from York

University.

Daniel Cohen

Chief Executive Officer

• Mr. Cohen has nearly 20 years of experience in the capital

markets and most previously served as a partner and head of

institutional equity sales at Beacon Securities.

• Prior to that, he held roles in institutional equity sales,

investment banking and equity research at Wellington West

Capital Markets, RBC Capital Markets and HSBC Securities.

• Mr. Cohen holds an MBA in Finance from McGill University

and is a CFA Charterholder.

4

Keith Li

Chief Financial Officer

• Mr. Li has over 10 years of experiences in both the public

accounting and private sector, specializing in audit and

assurance, corporate accounting, financial reporting and

regulatory compliance services to companies in a number

of industries.

• Mr. Li holds a Bachelor of Commerce Degree in Finance

from McGill University, and has been a CPA, CA since 2012.

Vernon (Jim) Frazier Director• Mr. Frazier acted as Chief Operating Officer of NHII since

April 2016 and currently serves as NHII’s CEO.

• Mr. Frazier has over 23 years of experience in the food and is also the President of Grimaldi Candy.

• Mr. Frazier owns and operates a successful Florida-based candy and chocolate business which has been a well-known manufacturer of confectioneries for over 40 years.

• He holds an MBA from the Dale Carnegie School of Business at University of Cincinnati.

Leadership Team


Company Snapshot

5

Market Info as of August 28, 2018 CSE: BUZZ

SHARES OUT

Basic Common Shares Outstanding 24,309,784

Options & Warrants 11,294,883

*NHII Converts 3,116,640

Investor Converts 1,632,653

Total Shares FD 40,353,960

CONVERTS

NHII Converts

Notional USD120,000

Conversion Price 0.05

Investor Converts

Notional CAD600,000

Conversion Price 0.365

INSIDE OWNERSHIP

Management & Board 14%

NHII 12%

*NHII - Nutritional High International Inc. (CSE: EAT)


Our Strategy

• Signed an LOI with Holycanna, an Israel cultivation license holder with the plan to

build a 50K square foot facility by 2Q 2019.

• Signed a LOI with CannabiSendak to build a high profile dispensary in Tel Aviv that will

be exclusively supplied by HolyCanna.

• In active discussions with several Eurozone parties who have either built or are

looking to build a Euro GMP extraction facility.

6

Focus on Delivering High Quality Medicinal Cannabis Products


Extraction Expertise

Aura’s partnership with Nutritional High allows it to

leverage NHII’s proprietary product development

approach:

• Proprietary techniques of infusing products with THC and CBD

extracts on a semi-automatic basis

• Utilizing both the short-path distillation techniques and VTA

scale machinery to ensure a potent, clean, consistent product

• Mix of manufacturing techniques to ensure consistency in the

product

• International network of experts, specialized in every aspect of

the seed-to-sale industry, able to assist with rolling-out the

company’s operations

• NHII oil has been tested as high as 98% THC

Current Product Capabilities:

• Extracts

• Tablets

• Vape Cartridges

• Edible Products

7 Source: Prohibition Partners Report

NHII Cannabis-Infused Products


HolyCannaHOLYCANNA is an Israeli based cannabis cultivator and nursery

license holder. It strives to bring the best Israeli medicinal

cannabis and related products to the global market.

• The license was issued by the Israeli Medical

Cannabis Agency of the Ministry of Health.

• Initial 50,000 sq. ft. site.

• 26% Partner in Moshav located in Central Israel –

ideal climate for outdoor cultivation.

• Additional 325,000 sq. ft. available for expansion.

• Leveraging its own 7,500 square foot facility,

Holycanna can can develop its own nursery and

engage in tissue culture and R&D.

8

50K sq. ft. of canopy

42.5K sq. ft. outdoor

7.5K sq. ft. indoor

Room to expand on the

moshav, with 325K of

additional sq. footage


HolyCanna

Deal Structure

• Aura Health Inc. entered into binding LOI to

acquire 54% interest in HolyCanna.

• Convertible Note will convert into equity of

HolyCanna upon receiving regulatory approval.

• Should regulatory approval be rejected, note will

convert to royalty agreement entitling Aura to a

15% gross revenue royalty.

• Aura funds the 10M NIS (~$3.6M CAD) in

required capex, with dilution penalty to

HolyCanna in the event of cost overruns.

• Earn-out in place, with HolyCanna receiving $1M

CAD in Aura shares for every incremental $1M in

EBITDA generated, to max of $5M CAD.

9


HolyCanna Economics

10

Estimated Annual Capacity

Annual grams per sq. ft. 70g

Total square footage 50,000 sq. ft.

Growing cycles per year 5

Revenue per gram $2.70

Costs per gram $1.62

Projected Facility Economics

Monthly Annual

Capacity 291,667g 3,500,000g

Revenue $787,500 $9,450,000

Direct Costs $472,500 $5,670,000

Gross Profit $315,000 $3,780,000

Gross Margin 40% 40%

All figures in $CAD


CannabiSendak

Opportunity

• Entered into binding LOI to acquire 57% of the medical

cannabis dispensary in Israel being established by Shlomi

Sendak. The dispensary will be the 1st licensed

dispensary in Israel to feature a café, patient consultation

areas, and a doctor on site.

• CannabiSendak manages two Facebook groups that are

filled with 10,000 Cannabis patients and holds a database

of more than 12,000 medical cannabis patients;

• CannabiSendak holds statements from more than a

thousand medical cannabis patients who undertake to

buy its first merchandise;

• Terms of the Deal:

• Advance an initial US$500,000 to acquire 57% interest in the

medical cannabis clinics that are being established

• Pay an additional $250,000 for every 500 patients that

become clients of CannabiSendak Clinics

• CannabiSendak will use Holycanna as exclusive grower for

its branded product offerings

11

A prominent Israeli cannabis

activist, active in the medical

cannabis industry in Israel for

more than 24 years and

considered to be a 'guru' among

cannabis patients, who follow his

advice and guidance;

Shlomi Sendak

Cannabis Activist

Shlomi

Sendak

Cannabis

Activist


CannabiSendak Economics

12

Estimated Per Gram Economics (CAD):

Sale price per g $5.40

Cost per g $2.60

Gross margin per g 52%

*Average Israeli Patient Consumption per month

Monthly Annual

Grams 35g* 420g

Sale price $189 $2,268

Cost $91 $1,092

Gross margin 52% 52%

Estimated Patient Economics (CAD):

5000 Patients 10,000 Patients

Monthly Annual Monthly Annual

Revenue 945,000 11,340,000 1,890,000 22,680,000

Direct Costs 455,000 5,460,000 910,000 10,920,000

Gross Profit 490,000 5,880,000 980,000 11,760,000

Gross Margin 52% 52% 52% 52%

Financial Projections (CAD):

Projected ramp up:• 1,000 patients in the first month

• 500-1,000 new patients per month

• 10,000 patients in Tel Aviv


Israel - A natural global hub

for medical cannabis

• Global leader in IT

• Global leader in Ag Tech

• A powerful force in pharma and biotech

• Dots already connected - Israel is the birthplace of modern medical cannabis R&D• 1964 - Prof. Raphael Meshoulam and his team discover and

isolate THC

• 1977 - Prof. Ruth Gallily and her team discover anti-anti-inflamatory aspects and medical uses of CBD

• Medreleaf’s award winning products, including globally recognized Avidekel, were developed in Israel

13


Target Market - Israel

14

Old Domestic Medical Regime

• 35,000 registered patients and growing

monthly

• 80 doctors licensed to prescribe

prescriptions need regulator’s approval

• Number of qualifying indications increasing

New Domestic Medical Regime

• New reforms have been written and published

• Pilot for new pharmacies and dispensaries began

in April

• Doctor training program has been established and

first round has already taken place

• Large demand from Israeli MDs

• New regime will not require prescriptions to have

regulator’s approval

• Full start date expected in Q4

Export Law

• Support already received from departments of Finance and Agriculture

• Hold out is department of homeland security

• Israeli trade magazine published an article indicating the full export

announcement will come from Prime Minister Netanyahu’s office in the next

month

Aura Health Inc. (CSE:BUZZ)15

Strategic Expansion Plan

European Market

Source: Prohibition Partners Report

Medical Only

Decriminalized

Illegal

Fully Legal

Ukraine

Russia

Finland

Spain

France

Germany

United Kingdom

Ireland

Italy

Switzerland

Portugal

Greece

AustriaHungary

Slovakia

Serbia

Romania

Albania

Kosovo

Macedonia

Montenegro

Bosnia and Herzegovina

Bulgaria

Moldova

Poland

Czech Republic

Slovakia

Croatia

Belgium

Netherlands

Denmark

Norway

Sweden

Belarus

Estonia

Lithuania

Latvia


Germany boasts the largest economy in

Europe - a global leader across multiple

industries and the forerunner of the

European cannabis industry.

Germany, Europe’s largest potential

market opened up in March 2017 with the

introduction of new medical cannabis

legislation and the creation of eleven

production licenses.

As of January 2017, public health insurers,

which provide cover to 90% of the

population, were required to cover

cannabis medication (up to 5 oz. per

month), making Germany one of the most

valuable markets in Europe.

Mid term strategy will be to grow high

quality / low cost product in Israel, extract

onshore Europe (GMP calibre) for

distribution into Eurozone.

Target Market - Germany

16 Source: Prohibition Partners Report


Existing Clinics Business Sun Valley Clinics in US

Sep 2016

Las Vegas, NV

Clinic Opened

Aug 2017

Ft. Lauderdale, FL

Clinic Opened

May 2017

Tucson, AZ

Clinic Opened

April 2017

Mesa, AZ

Clinic Opened


Existing Clinics Business

Sun Valley Clinics in US

2550 S Rainbow Blvd, Las Vegas, NV 89146

2011 E University Dr., Mesa, AZ 85213 7074 E Speedway Blvd, Tucson, AZ 85710

3267 Davie Blvd, Fort Lauderdale, FL 33312

CONTACT

US

Daniel Cohen

Chief Executive Officer

[email protected]

647-202-1824

Address:

77 King Street West, Suite

2905, Toronto, ON M5K 1H1

www.aurahealthinc.com


Risk Disclosure

The Company is seeking to establish new business lines, which inherently contains a high degree of risk. Potential Investors are cautioned toreview the following risk factors in addition to those contained in public disclosure record of the Company (available on www.sedar.com), relatingto the Company: (1) The Company has a very limited operating history in an emerging area of business and had negative cash flows fromoperations in its most recently completed financial year. (2) Non-compliance with federal, provincial or state laws and regulations, or theexpansion of current, or the enactment of new laws or regulations, could adversely affect the Company's business. (3) The Company may becomesubject to additional government regulation and legal uncertainties that could restrict the demand for its services or increase its cost of doingbusiness, thereby adversely affecting its financial results. (4) The Company may be required to obtain and maintain certain permits, licenses andapprovals in the jurisdictions where their products are licensed, although the Company does not anticipate such approvals will be necessary. (5)As a manufacturer and distributor of products designed to be ingested by humans, the Company faces an inherent risk of exposure to productliability claims, regulatory action and litigation, if its products are alleged to have caused significant loss or injury. (6) Manufacturers anddistributors of products are sometimes subject to the recall or return of their products for a variety of reasons, including product defects, such ascontamination, unintended harmful side effects or interactions with other substances, packaging safety and inadequate or inaccurate labelingdisclosure. (7) The Company may not be able to accurately predict its future capital needs and it may not be able to secure additional financing.(8) The market price of the Common Shares could be subject to significant fluctuations in response to various factors, many of which are beyondthe Company's control. (9) The Company is currently in the early development stage. There is a risk that the additional resources will be neededand milestones will not be achieved on time, on budget, or at all, as they can be adversely affected by a variety of factors. (10) The Company mayface intense competition and expects competition to increase in the future, which could prohibit its development of customer base andgenerating revenue. (11) The Company's operations are subject to environmental and safety laws and regulations concerning, among otherthings, emissions and discharges to water, air and land, the handling and disposal of hazardous and non-hazardous materials and wastes, andemployee health and safety. (12) The Company must rely largely on its own market research to forecast sales as detailed forecasts are notgenerally obtainable from other sources at this early stage of the industry in the U.S. (13) The Company may be subject to growth-related risksincluding capacity constraints and pressure on its internal systems and controls. (14) The Company has no earnings or dividend record, and doesnot anticipate paying any dividends on the Common Shares in the foreseeable future. Dividends paid by the Company would be subject to taxand, potentially, withholdings. (15) Exchange rate fluctuations may adversely affect the Company's financial position and results. (16) In the eventof a dispute arising from the Company's foreign operations, the Company may be subject to the exclusive jurisdiction of foreign courts or maynot be successful in subjecting foreign persons to the jurisdictions of courts in Canada. (17) Officers and directors of the Company own significantshares and can exercise significant influence. (18) Sales of a large number of Common Shares in the public markets, or the potential for suchsales, could decrease the trading price of the Common Shares and could impair the Company's ability to raise capital through future sales ofCommon Shares. (19) Volatile global financial and economic conditions may negatively affect the Company's operations.

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