Tonight’s Schedule

Cannabis Tech

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@mitefcmb

#InnoSeries

www.mitforucambridge.org

5:30 - 6:00pm

Registration and Networking

6:00 - 7:45pm

Welcome & Panel Discussion

8:00 - 9:00pm

Networking in R&D Pub – 4th Floor

Thank You Annual Sponsors!

Innovation Series Team

Co-Chairs

• Chris CarltonCHEN PR

• Christina LicursiWolf Greenfield

MIT Enterprise Forum of Cambridge Staff

• Katja WaldExecutive Director

• Amy GogginsProgram Director

• Ronnie DeaverProgram & Sponsorship Coordinator

Committee Members

• Dean Adams, Adams Intellex

• Ricky Ashenfelter, Spoiler Alert

• Randy Cronk, greatwriting

• Carolyn d’Agincourt, PretiFlaherty

• Chris Denaro, Digital Guardian

• Chitra Dwarka

• Peter Dwyer

• Keegan Caldwell, Caldwell Intellectual Property

• Suresh Gopalan, ReSurfX

• Gabriel Itoka, Canopy City

• Susan Kennedy, Marketing Boston

• Juan Necochea, ChileMass

• Rita Sahu, cogniHive

• Chris Sowa, ToonCrier

• Alan Steele, LathropGage

• Jerry Wolosenko, Terrific Corp

Upcoming Events

• December 11, 2017

Launch Smart Clinic (EdTech)

• January 10, 2018

Entrepreneur & VC Perspectives On Patents

• January 18, 2018

The Inversion Factor, How to Thrive in the IOT

Economy

• February 26, 2018

Start Smart Class

Cannabis Tech

• Vinit Nijhawan, Entrepreneur, Venture Capitalist, Academic

• Aja N. Atwood, CoFounder, Trella Technologies, LLC

• John de la Parra, Department of Chemistry and Chemical Biology, Northeastern University

• Richard Gibble, Founding Partner, Akras Research & Capital

• Shanel Lindsay, Founder and President, Ardent

• Russel Wilenkin, Senior Manager, Flower Sales, Kiva Confections

Follow the Convo@mitefcmb | #InnoSeries

Stick around for networking

@ R&D Pub (4th floor)!

MIT Enterprise Forum

Vinit Nijhawan

December 5, 2017

Questrom

School of Business

12/6/2017

Source: CannaKorp

Cannabis a Global Opportunity

7

12/6/2017

Source: Cannakorp

States leading the way…

8

• 29 States approved medical cannabis

• ..of which 7 approving recreational

• Federal• Class 1 substance so cannot

ship across state lines• Cannot deduct business

expenses• Lack of Capital

• IPO in Canada

Cannabis Opportunity

Source: CB Insights

9

Cannabinoids are Medicine

Source: Hyasynth Bio

10

• But there are over 100 different cannabinoids and even more terpenes that are found in cannabis

• Some of these, like THC and CBD are already established as medicines, and others are being discovered

Cannabis Research

12/6/2017

Source: Hyacinth Bio

11

Cannabis Inventions

Source: UW

12

Canada a leader..

12/6/2017

Source: Deloitte

13

Tissue Culture,

Metabolic Engineering,

and Phenome Analysis How Plant Biotechnology Techniques

Stand to Change the Cannabis Industry

John de la Parra

Vine Research and Consulting

john@vinerc.com

339-221-1203

Northeastern University

Department of Chemistry and Chemical Biology

Bio

Early Life

Raised on a farm in Alabama

Father’s family is from Mexico

Grandmother taught me about medicinal plants

Education

Cooper Union (engineering studies)

Rutgers, University of South Florida (graduate research)

Northeastern (PhD, Chemistry)

Work

Owner, Vine Research and Consulting Ethnobotanical research and consulting around the country

Cannabis biotech consulting around the country

Visiting Lecturer, Tufts University

Technology: Tissue Culture

https://www.linkedin.com/pulse/plant-tissue-culture-dr-tohid-nooralvandi/

Technology: Metabolic Engineering

Metabolic Network

Chemical Analysis

Flux Analysis

Genetic engineering

Technology: Phenome Analysis

Why it’s important

Tissue Culture Scalability

Controllable environment

Allows for engineering

Metabolic Engineering Genetic manipulation

Maximize potential

Understand the influence of genetics

Phenome Analysis Analytical rigor

Understand the influence of environment

Why it’s novel

Tissue Culture Standard R&D for large agricultural productions

Not being used widely for cannabis

Metabolic Engineering At the cutting edge of medicinal plant understanding

Not being used widely for cannabis

Phenome Analysis

New priority for ASPB (and industrial agriculture) Not being investigated/cataloged rigorously for cannabis

How this can shape the industry

Tissue Culture Leads the way into more advanced biotech

Portability of varieties

Scalability

Metabolic Engineering Cannabis operation meets state-of-the-art

Contribution to fundamental science leads to unexpected innovation

Phenome Analysis Pharmacuetical innovation must rely on analytical rigor

Control over specific chemical production profiles

Case Examples

Tissue Culture Currently consulting on efficient cloning for industry

Used first for transporting cloned material

Metabolic Engineering Many other medicinal plants

Madagascar periwinkle, Taxus spp., Podophyllum spp.

Phenome Analysis ASPB emphasis

MIT Media Lab

Currently collaborating with Brown U.

Financing the Cannabis IndustryRichard Gibble, CFA

Akras Research & Capital

Disclosure

Information contained in this presentation is strictly confidential. Recipient shall use the confidential information only for

educational purposes. This presentation is for informational purposes only and does not constitute an offer to purchase any

securities.

The contents of this presentation have not been independently verified and they do not purport to be comprehensive, or to

contain all the information that a prospective investor or entrepreneur may need. No representation, warranty or

undertaking, expressed or implied is or will be made or given and no responsibility or liability is or will be accepted by the

Company or by any of its directors, employees or advisors in relation to the accuracy or completeness of this document or

any other written or oral information made available in connection with the Company.

Akras Research & Capital accepts no liability for the content of this presentation or for the consequences of any actions

taken on the basis of the information provided.

2

34

Richard Gibble, CFAFounding Partner, Akras Research & Capital

Previous:

Portfolio Manager and Investment Analyst

FlowPoint Capital Partners, Longfellow Investment Management

Company, Lake Partners, Rydex Series Trust, Æxpert Advisory

Professor of Finance, Bentley University

Education:

MBA, MS, Bentley University

BA, Saint Anselm College

35

The Cannabis Capital Struggles

• No access to federally chartered banks

• Investors still wary of cannabis industry stigmas

• No traditional pathway to go public in the US

• Company valuation is difficult due to lack of transparency

36

Conventional Financial Solutions

• Private Capital: Angels/Friends and Family/Crowdfunding/Personal Credit• Substantial risks: both financial and relational

• Private Equity/Venture Capital• Expect large ownership stakes, sometimes cede control, onerous terms

• Convertible Vehicles• Fixed income security with option to convert to equity

37

Innovative Financial Solutions

• New Private Equity Structures• SAFE (Simple Agreement for Future Equity)

• KISS (Keep It Simple Security)

• Loan/Debt Vehicles• Flexible/favorable term options

• Rarely have to cede equity or control

38

Disruptive Investments Drive the Future

• The first winners will be determined by earning large capital allocations

• Provide more funding options for smart entrepreneurs

• Encourage more financial transparency and best practices

• Generate rigorous due diligence

• Industry will truly launch, creating value for all stakeholders

39

Case Example

European-based vertically integrated cannabis cultivator

• Distressed financial state

• Classic start-up dilemmas, profitable with negative cash flow

• Convertible note with line of credit and American style purchase option

40

www.AkrasCapital.comRGibble@AkrasCapital.com

4

1

Cannabis & Technology

How did we get here?

Strategies

Challenges

MA Cannabis Licenses

• Cultivation

• Manufacturing

• Retail

• Testing Laboratory

• On-site consumption

• Limited-use/Small business licenses

Social Consumption

Cannabis Delivery

Cannabis Tech

• Vinit Nijhawan, Entrepreneur, Venture Capitalist, Academic

• Aja N. Atwood, CoFounder, Trella Technologies, LLC

• John de la Parra, Department of Chemistry and Chemical Biology, Northeastern University

• Richard Gibble, Founding Partner, Akras Research & Capital

• Shanel Lindsay, Founder and President, Ardent

• Russel Wilenkin, Senior Manager, Flower Sales, Kiva Confections

Follow the Convo@mitefcmb | #InnoSeries

Stick around for networking

@ R&D Pub (4th floor)!