Post on 22-Sep-2020
An Emerging Leader in the Health & Wellness and
Functional Food & Beverage Markets
Phivida | November 2018 2
LOOKING FORWARDThis corporate update contains “forward-looking statements”, “forward-looking information” and “future-oriented financial information” (collectively herein referred to as
“forward looking statements” within the meaning of applicable securities laws. Phivida Holdings Inc. (the “Company”) is providing cautionary statements identifying
important factors that could cause the Company’s actual results to differ materially and significantly from those projected in these forward-looking statements, including
information regarding the Company’s revenue; profit margins; and proposed share structure. The words “anticipate”, “expect”, “believe”, “attempt”, "may", "could", "should",
“ensure”, "estimate", "plan", "project", “strategy”, "intend", "outlook", “strive”, "forecast", "likely", "probably" or other similar words are used to identify forward-looking
information. Such statements represent the Company’s internal projections, estimates, expectations, beliefs, plans, objectives, assumptions, intentions or statements
about future events or performance. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause actual
results or events to differ materially from those anticipated in such forward-looking statements. Although the Company believes that the expectations reflected in the
forward-looking statements are reasonable, no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not
be unduly relied upon. Many factors could cause the Company’s actual results to differ materially from those expressed or implied in any forward-looking statements
made by, or on behalf of, the Company. Such forward-looking information may relate to, without limitation: the future activities and performance of the Company; the
value of the Company’s common shares; the technological development of the Company; estimates relating to the amount of funds available to the Company; volatile
securities markets; and the manner in which such funds will be used. Additional factors that could cause actual results to differ from the Company’s expectations include,
but are not limited to: the Company’s ability to launch its products in an efficient manner; competition; legal requirements and limitations and the possibility that the law
relating to the Company’s business could change in a manner that materially adversely affects the Company’s business; the Company’s ability to enter into advantageous
agreements and business relationships; the Company’s ability to attract customers for its products; general economic conditions and those economic conditions specific
to the hemp and cannabinoid industry; the Company’s ability to innovate and improve monetization; the growth of the market for hemp and cannabinoid products; the
Company’s ability to reach a broad consumer base; the Company’s ability to expand to different cities nationally and internationally; geopolitical events such as war,
threat of war or terrorist activities; as well as any specific risk factors discussed in this presentation.
This does not constitute an offer to sell or the solicitation of an offer to buy any securities of the Company in any jurisdiction in which such offer or solicitation would be
unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
These statements have not been evaluated by the FDA and are not intended to diagnose, treat or cure any disease. Always check with your physician before starting
a new dietary supplement or nutrition program. *Cannabidiol (CBD) is a natural constituent of hemp oil.
Phivida | November 2018 3
Phivida strives to provide the world with a natural path
to health and wellness through a variety of products
infused with organic active hemp extracts.
As part of our vision, Phivida is looking to become a
leader in whole-plant solutions by providing holistic
remedies for a more natural alternative to
pharmaceuticals, and guiding people towards a vibrant,
healthy life.”
Phivida | November 2018 4
A premium functional food
and beverage company
Healthy Lifestyle• Focus on holistic health and wellness
• Part of balanced lifestyle
Natural Product• Focused on whole plant nutrition and natural ingredients
• Organic, natural, plant-based foods and beverages
• Natural alternatives to pharmaceuticals
Never Takes Shortcuts• Top professional partners, quality ingredients and
product sources
• Committed to making a positive difference
WHO IS PHIVIDA?
Phivida | November 2018 5
1. Well-positioned to build share in large and fast-growing
markets
2. Two distinct brand offerings to address health supplement
and functional food and beverage markets
3. Launching OKI and Vida+ product lines in USA, supported
by extensive consumer research and testing
4. Poised to enter Canadian cannabis beverage market
with proven brands
5. Entrepreneurial management team with a track record
of success in product innovation and marketing
INVESTMENT HIGHLIGHTS
Phivida | November 2018 6
WHAT ISACTIVE HEMP?
• Active hemp is better known as
Cannabidiol or CBD
• CBD is one of nearly one
hundred cannabinoids found in
hemp and is non-psychoactive
• CBD interacts with each of our bodies
differently and can potentially provide
relief for countless ailments and
wellness challenges
• CBD helps our bodies regulate
important functions
• CBD acts as a mediator
• CBD is non-addictive and non-toxic
• CBD is an adaptogen
WHY DOWE NEED IT?
Phivida | November 2018 6
Phivida | November 2018 7
OUR STANDARDS
• Formulation, manufacturing, laboratory, and agricultural
partners follow the strictest QA and QC protocols
• Organically-grown hemp is cold pressed to preserve the
full spectrum of hemp phytonutrients, terpenes, and
cannabinoids
• Incorporates both cannabis-specific testing and highly
specialized microscopal phytoforensic investigation
• Verify the integrity, potency, and purity of products at the
molecular level
• Strives to set a higher bar for the industry
• Every ingredient and formulation adheres to strict
pharmaceutical quality standards
POTENCY
Pharmaceutical-quality QA
to verify potency &
consistency
SAFETY
450+ contaminant testing
via microscopal
phytoforensics
PURITY
Full spectrum of
phytonutrients preserved for
superior product
EFFICACY
Full botanical
authentication for
every compound
Phivida | November 2018 8
QUALITY ASSURANCE,
FROM SEED TO SHELF
L E G A L C O M P L I A N C E T E S T I N G T R A N S P A R E N C Y
P R O D U C T I N T E G R I T Y S A F E T Y
P E E R R E V I E WS A F E T Y
F A R M P R O C E S S O R
Phivida | November 2018 9
THE CBD MARKET IS ESTIMATED TO EXPLODE
$360Min 2017
$2.1Bin 2020• Global Health and Wellness Market
reached $1 trillion in 20171
• Hemp-based CBD-infused products
expected to achieve 700% growth to $450
million by 20202
• CBD and cannabinoids as functional
ingredients in body-care and supplement
categories reflect year-over-year growth of
300%3
1 Euromonitor Report2 Hemp Industry Association3 Forbes4 Brightfield Group Research
CBD (cannabidiol)
Market Growth4
Phivida | November 2018 10
CONSUMER TARGETING
Core Segments CBD Users at a Glance1
› 59% are female
› The majority of users purchase
from dispensaries
› More than 50% use CBD
products daily, 80% use at least
once a week
› Consumers use CBD products to
provide the best medical relief
S1 Active Professionals S2 Professional Athletes
S3 Healthcare Practitioners S4 Patients / MMJ Converts
1 CBD Market Study Report 2017 - HelloMD
Phivida | November 2018 11
CONSUMER RESEARCH KEY RESULTS
› Those aware of CBD seem to be more steeped in healthy
lifestyles
› When it comes to favorite drinks, those aware of CBD are more
likely to list their functional beverages as their favorites
› Those who are living in West Coast states are more likely to be
aware of CBD
› More adventurous and curious in their flavor choices than
unaware
› Deal-breakers artificial colors or ingredients, HFCS, added
sugars, sugar substitutes, and more and more— caffeine
› Want simpler and more minimalist, muted, packaging
› Had personal experience with the substance from years ago
Phivida | November 2018 12
OF CURRENT CBD CONSUMERS, ANXIETY
IS THE TOP MEDICALCONDITION
TO TREAT
64%
55%
49%
39%
36%35%
31% 31%
17%
71%
Anxiety
Insomnia
Joint pain &
inflammation
Depression
Muscle
tension
or strainSevere or
chronic pain Migraines
Arthritis Nausea
PTSD
Top Ten Medical Conditions1
1CBD Market Study Report 2017 - HelloMD
Phivida | November 2018 13
TARGETED DISTRIBUTION
Focused Distribution Channels
1. eCommerce
2. Natural Specialty Retailers
3. Convenience Retailers
4. On Premise Retailers (hotels, airport, gyms, cafes)
5. Health Clinics
39 Million
Washington
California
Oregon
Colorado
5 Million
7 Million
4 Million
Target CitiesSeatt le
San Francisco
Por t land
San Diego
Los Angeles
Phivida / WeedMD
(Can Bev Inc.)
Phivida | November 2018 14
ACOSTA DISTRIBUTION
Exclusive agreement with Natural Specialty Sales (“NSS”), an Acosta, Inc. company
• Acosta is North America’s largest food and beverage broker
› NSS has a wide retail channel across America and is well known in the
natural/specialty sector
› The national network includes major retailers, such as Sprouts Farmers
Market, Whole Foods Market and National Coop Grocers
• Provides Phivida access to over 2,400 retail locations
• NSS will represent Phivida’s OKI brand of premium products as its exclusive
distributor of the line of Full Spectrum Active Hemp Extract-infused beverage and
supplements
Phivida | November 2018 15
INDUSTRY OVERVIEW
Natural
Product Channel
Specialty
Product ChannelSupermarket
Channel
Other
Channels
1600+ stores
25+ HQ
700 independent stores
2 national distributors
Natural product STANDARDS
600+ stores
2 national distributors
6+ regional distributors
Multiple wholesalers
25,000+ stores
150+ HQ
2 national distributors
6+ regional distributors
Multiple wholesalers
Direct warehouse
Distributors
Direct Warehouse
Specific SKU’s and categories
by customer
Phivida | November 2018 16
CANADIAN MARKETS
Cannabis Beverages Inc. Joint Venture
• Partnering with WeedMD Inc.
(TSX-V: WMD)
• The new joint venture company, named Cannabis
Beverages Inc. (“CanBev”)
• Focused on manufacturing, marketing and
distribution of CBD-infused beverages for legal
medical and adult-use cannabis markets in
Canada
• WeedMD will be the exclusive cannabis supplier
and distributor for CanBev
• Phivida will provide product innovation, research
and development, formulation and branding
Phivida | November 2018 17
SHIFTING U.S. REGULATIONS
US Farm Bill
• Legalization of hemp has cross-party support and appears likely to pass
• Awaiting approval (as of September 2018), the 2018 omnibus farm bill – incl. the Hemp Farming Act of 2018 – will allow cannabidiol (CBD) to be legally grown in the U.S.
• Expected change will support Phivida’s expansion plans to operate and distribute its products in all 50 states
“The Act further provides for easier funding for industrial hemp research, makes crop insurance
available to the industry, and states that the Act, in and of itself, may not be construed to authorize the federal
government to interfere with the interstate commerce of industrial hemp.” Benjamin Pirie, Associate at Lane
Powell Law Firm
Momentum
› Constellation Brands Canopy: 1st major
investment from beverage sector
› WADA Report: CBD Removed from
Global Prohibited List
› WHO Report: CBD is safe, non-toxic and
medicinal
› Cole Memo (Rescinded): CBD-hemp
unaffected
Phivida | November 2018 18
PHIVIDA
OUR BRANDS
Rise & Restore
Help you find your
balance every day
Health &
Wellness in
harmony
Professional
clinical grade
strength
Phivida | November 2018 19
• Professional Grade, Organic Hemp Oil Extracts
• All products are assured full-spectrum, pharmaceutical
grade and cGMP certified and meet rigorous clinical
standards through a quality-controlled CO2 extraction
process and third-party lab testing
• Under the VIDA+ brand, a range of CBD-infused
tinctures, capsules and other supplement products are
distributed across the United States through alternative
health care clinics and direct to consumers via Vida+
website
Vida+ is the company’s premium clinical grade strength, full spectrum hemp oil
extracts and capsules designed to help people feel their best. The products are
sourced from the best organic hemp and natural ingredients on the market and
are third-party lab tested for quality, purity and potency at world-class
facilities.
VIDA+ hempvidaplus.com
Phivida | November 2018 20
OKIOki lifestyle brand is the company’s newly launched line of functional beverages and
supplements infused with Active Hemp Extract
• Products blend the best of nature with CBD-infused beverages and supplements.
• All products contain non GMO, natural and organic ingredients
• Plant based and Vegan friendly and packaged in sleek 100% recyclable glass
containers
• Oki beverages - 16oz containers
› Infused with 10 mg of active hemp extract
per bottle
› 2 different formulations: iced teas and
flavor-infused water
› 4 different flavors
• Oki health supplements
› Available in tinctures or capsules
› Doses from 600-1800 total mg
feeloki.com
Phivida | November 2018 21
OKI CONSUMER MARKETING
Phivida | November 2018 222222
Phivida is focused on growing awareness throughinforming and educating consumers
BRAND AWARENESS
1
3 4
2
• On-going local content creation cater to each platform
• Encouraging user generated content via fan engagement
• feeloki social media pages to build awareness, interest and
engagement
• Initial focus across Facebook, Instagram and YouTube
Influencer Partnerships
• Store ambassadors to drive trails
• On going 12 month program
• Highly selective & qualitative focus
• Educate the public on “Active Hemp”
• Generate positive stories for category
• Build positive WOM, trust & credibility
Malia Manuel is the face of the Oki product line
• Youngest female to win the US Open of Surfing (2008)
• She has 200k Instagram followers, 110k on Facebook
• Embodies the idea of living natural, healthy, plant based
lifestyle
• Part of the Oki launch campaign
Social Media
Sampling Public Relations
Phivida | November 2018 232323
FEELOKI.COM
Phivida | November 2018 242424
OUTDOOR
Phivida | November 2018 252525
CONTENT
Phivida | November 2018 26
Executed
Product Pipeline
Tinctures
Flavor Infused Water
Ice Tea
Prospective
Product Lines
Expanded Flavor Offering
(Beverage & Tinctures)
Functional Beverage
(Protein Drink, Teas,
Kombucha, etc.)
Food Products Lifestyle Products
PRODUCT OPPORTUNITIES
Phivida | November 2018 27
MANAGEMENT TEAM
Former President of Red Bull Canada and global Chief Marketing Officer Merrell Outdoors
Former Chief Executive Officer of Beneath Apparel, and senior executive Adidas, Blue Goose (organic foods)
and Salomon Expertise in driving new marketshare and revenue growth via multi-channel DTC and
distribution management strategies
James Bailey | President & CEO
Bachelor of Commerce Marketing Management University of Otago
Specializing in CPG brand equity development, experiential and aspiration/endorsement marketing
Former Chief Marketing Officer Samsung NZ, Former CMO Microsoft NZ, Former Director of Marketing
Red Bull Canada
Michael Cornwell | Chief Marketing Officer
Doug Campbell | Chief Commercial Officer
Former Director of National Accounts Stoli Group
Former Director of Sales Red Bull North America
Accomplished Senior Sales and Marketing Management Professional with over 20 years
Key Account Retention and Major Brand Management expertise
Phivida | November 2018 28
Greg McCauley | Senior Vice President, Distribution
Over 30 years’ experience in the consumer products industry with major brands such as Jägermeister, Muscle Milk and Red Bull
Vice President and General Manager of Mast Jägermeister, responsible for sales and distribution in 18 U.S. states and Canada
Several years at Red Bull North America where he was responsible for a distributor network comprising of 375 sales territories and
500 employees with sales in excess of US$150 million
Experienced financial controller, public companies audits and financial statements to GAAP and IFRS
+10 with companies in various industries ranging from private companies to junior start up companies Chartered Accountant
designation through the Institute of Chartered Accountant British Columbia Bachelor of Business Administration, Diploma in
Accounting – Kwantlen University
Founder and President of GVK Group Chartered Accountant
George Kovalyov, CA | Vice President, Finance
MANAGEMENT TEAM
Carmelo Marrelli, CPA, CA, CGA | Chief Financial Officer
+25 years of experience in executive financial management for publicly traded companies
Principal of Marrelli Support Services Inc., a firm that delivers accounting and regulatory compliance services to listed
companies on the Toronto Stock Exchange (TSX), TSX Venture Exchange (TSX-V) and the Canadian Securities
Exchange (CSE), Chartered Professional Accountant (CPA, CA, CGA) and a member of the Institute of Chartered
Secretaries
Phivida | November 2018 29
CAPITAL STRUCTURE
As at November 15, 2018
Issued
Common shares 61,729,963
Warrants 4,133,713
Share Options 8,653,750
Fully Diluted 74,517,426
Current cash position $ 13,000,000
Fully diluted cash position $ 25,894,000
Phivida | November 2018 30
1. Well-positioned to build share in large and fast-growing
markets
2. Two distinct brand offerings to address health supplement
and functional food and beverage markets
3. Launching OKI and Vida+ product lines in USA, supported
by extensive consumer research and testing
4. Poised to enter Canadian cannabis beverage market
with proven brands
5. Entrepreneurial management team with a track record
of success in product innovation and marketing
INVESTMENT HIGHLIGHTS
Phivida | November 2018 31
Contact Info 422 Richards Street, Suite 170
Vancouver, BC, V6B 2Z4
ir@Phivida.com
+1 (844) 744-6646 ext. 2
@Phivida