Investor Presentation Winter 2019...Q3 Q4 2015/2016 2016/2017 2017/2018 2018/2019 Q1 = MAY 1 –...

Investor PresentationWinter 2019

CSE: QCC

2 QUADRONCANNATECH.COM CSE: QCC

This investor presentation dated Summer 2018 (the “Presentation”) contains “forward- looking information” within the meaning of applicableCanadian securities laws and “forward looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995(collectively, “Forward Looking Statements”) regarding Quadron Cannatech Corporation (“Quadron” or the “Company”) and its subsidiaries. Exceptfor statements of historical fact, certain information contained herein constitutes forward- looking statements which include management ’sassessment of future plans and operations and are based on cur rent internal expectations, estimates, projections, assumptions and beliefs, which mayprove to be incorrect. Often, but not always, forward- looking statements can be identified by the use of words and phrases such as “estimates”,“forecasts”, “projection” “anticipates”, “believes” “expects” or “is expected”, or “plans”, “intends”, “budgets”, “goals”, “objectives”, “targets”, or“scheduled” or variations (including negative variations) of such words and phrases, or statements that certain actions, events or results “may”,“could”, “should”, “would”, “might” or “will” be taken, occur or be achieved. Forward- looking statements are based on the opinions and estimatesof management as of the date such statements are made and are based on various assumptions such as: (i) the Company’s ability to generate cashflow from operations and obtain necessary financing on acceptable terms; (ii) general economic, financial market, regulatory and political conditions inwhich the Company operates; (iii) consumer interest in Company products; (iv) anticipated and unanticipated costs; (v) government regulation of theCompany’s activities and products; (vi) the timely receipt of any required regulatory approvals; (vii) the Company’s ability to obtain qualified staff,equipment and services in a timely and cost efficient manner; the Company’s ability to conduct operations in a safe, efficient and effective manner;(viii) and the Company’s construction plans, expansion of facilities, its costs and timeframe for completion of such plans. Forward- looking statementsare not guarantees of future performance and undue reliance should not be placed on them. Forward- looking statements involve known andunknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of Quadron to be materially differentfrom any future results, performance or achievements expressed or implied by the forward- looking statements. Many of these risk factors anduncertainties are discussed in certain Company documents, in a section entitled “Risk Factors”, and filed with the Canadian Securities Administratorswhich are available on SEDAR at www.sedar.com. Although the Company has at tempted to identify important factors that could cause actualactions, events or results to differ materially from those described in forward- looking statements, there may be other factors that cause act ions,events or results to differ from those anticipated, estimated or intended. Forward- looking statements contained herein are made as of the date ofthis Presentation and the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, futureevents or results, except as may be required by applicable securities laws. There can be no assurance that forward-looking statements will prove tobe 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. Securities Laws. This Presentation is for informational purposes and does not constitute anoffer or a solicitation of an offer to purchase the securities referred to herein. No Reproduction or Distribution: The contents of this presentation arenot to be reproduced or distributed to any third party, including the general public or the media, without the express written consent of Quadron.The information contained herein, while obtained f rom available sources which the Company believes are reliable, is not guaranteed as to its accuracyor completeness. Third Party Information: Certain information contained in this Presentation with respect to market trends and products has beenobtained or quoted from publicly available sources, such as continuous disclosure documents, independent publications, media articles, third partywebsites (collectively, the “Publications”). In certain cases, these sources make no representations as to the reliability of the information they publish.Further, the analyses and opinions reflected in these Publications are subject to a series of assumptions about future events. There are a number offactors that can cause the results to differ materially from those described in these publications. None of the Company or its representativesindependently verified the accuracy or completeness of the information contained in the Publications or assume any responsibility for thecompleteness or accuracy of the information derived from these Publications. Additional Information: Additional information relating to the Companyhas been filed electronically through SEDAR and is available online at www.sedar.com or at the Company’s website at www.quadroncannatech.com.

Forward Looking Statements


The World is Turning to Oils

3 QUADRONCANNATECH.COM

The cannabis oil market, that accounted for only 10% of cannabis sales in the U.S. in 2014, is expected to end 2018 with a market share of roughly 27%, outpacing the growth of flower and edible sales [1]

Growth in concentrates sales are set to outpace that of traditional flower sales, projecting $8.5 billion in retail sales by 2022. [2]

[1][2]https://www.greenentrepreneur.com/article/321016


About Quadron

Extraction & Processing

Product Development

Facility Design

Research & Development

Quadron provides turn-key extraction and processing solutions for the cannabis industry including proprietary industrial grade equipment, custom build processing facilities, ancillary products, and scientific services.

Quadron is committed to developing streamlined, cost-effective and innovative solutions to help licensed growers, producers and processors develop market ready products and achieve quicker ROI.

From Green to Gold


Integrated OfferingsQuadron operates through three vertically integrated subsidiaries with specialization in engineering, automation, science, manufacturing and product development.

Engineered automation solutions for industrial equipment and processes. From conceptual design and engineering to manufacturing and installation, Cybernetic Control Systems brings experience and innovation to any sized project.

Designs and develops dispensing and consumption devices specifically for cannabis extracts with a specialty in vape hardware. Greenmantle offers integrated extract and product development consultations to branding and packaging solutions.

Providing customized facility set-up services and turn-key solutions for cannabis extraction and processing. Soma works with licenced growers and processors to develop new equipment, technology, and processes through hands on R&D.


Turn-Key Extraction & Processing SolutionsQuadron provides extraction and processing solutions from green to gold:

Quadron’s science and engineering team works to automate and

innovate for quicker ROI.

TURN-KEY SOLUTIONS

We provide turn-key extraction solutions in CO2, ethanol and

hydrocarbon extraction.

EXTRACTION PROCESSING

In house Chemists and product developers formulate extract to produce desired effects and enhance shelf life stability.

FORMULATION

End product development solutions for dispensing and consumption devices to ensure successful brand development.

HARDWARE & PACKAGING

Quadron’s tailored processing facilities turn quality extracts into

value added products.


Extraction & Processing SolutionsUsing expertise to provide turn-key extraction systems and processing facilities tailored to licensed industry participants.

Processing Facilities Include:

Biomass preparation Extraction (CO2 and Ethanol) Filtration Solvent recovery, refinement and formulation Analytical equipment for testing concentrates Industrial grade packaging equipment

In-house engineers and chemists provide onsite training, servicing and upgrades in addition to full facility design.

Turn-key extraction facilities start at $2 million CDN.

7


Our Extraction TechnologyThe BOSS is an automated, plug & play CO2 extraction system with remote monitoring and control features for extracting large volumes of cannabis oil from dried flower.

High flow CO2 for greater efficiency

45L vessel for industrial scale extract production

Scalable system

Processes up to 400 lbs per/day

Smaller footprint and lower energy requirement than competitors

The BOSS price starts at $325,000CDN

The BEAST is a continuous flow ethanol extraction system, which can process industrial quantities of cannabis.

Extraction capacity 1000kg - 5000kg per/day

Ideal for CBD extraction from hemp

The BEAST price starts at $1.5 million CDN.

8 QUADRONCANNATECH.COM


Ancillary Products

Greenmantle Products (GMP) provides:

Extract and Product Development Consultation Custom Vape Hardware

Branded Consumption Devices

Packaging Services

GMP has over 50 different cartridges, pens and vape solutions for licensed participants.Health Canada has stated the legalization of vape pens is expected in Q4 2019.

With in-house engineering and hands-on formulation experience, GMP designs and develops ancillary devices specifically for cannabis extracts. GMP works directly with manufacturers to design innovative solutions.


Capital Structure

QUADRON CANNATECH

Issued & Outstanding (as at January 31, 2019) 71,650,447

Warrants @.30 Grant Oct 2017 - Exp Oct 2020 (with accelerated clause at $0.50 for 10 days) 3,576,500

@.83 Grant Jan 2018 – Exp Jan 2020 (with accelerated clause at $1.50 for 10 days) 7,142,858

Options @.20 Set Feb 2017 - Exp Feb 2022 - Vest 12.5% per quarter 1,875,000

@.20 Set Feb 2017 - Exp Feb 2022 - Vest 25% per quarter 350,000

@.40 Set Mar 2018 - Exp March 2023 - Vest 12.5% per quarter 3,305,000

@.25 Set Oct 2018 - Exp Oct 2023 - Vest 12.5% per quarter 875,0000

Total Fully Diluted 88,774,805

Insider and closely held 45%


The Road Ahead for Quadron

Soma Labs Founded

2013

Research & Development

2014/2018 2018/2019

Equipment Sales

Sales of Extraction & Processing Facilities

2018/2019 2020/2021

JV - Infused Products

Manufacturing

2021/2022

International Expansion

2023/2024

Acquisition of JVs

2019/2020

JV – Facility Operation


Comparables in Processing

Neptune Bioresources (TSE:NEPT, NASDAQ:NEPT) Market Cap: $400 million

Processing License ACMPR with existing $28 million revenue from other wellness products

200,000kg capacity at 50,000 Sqft Laval Facility

B2B strategy with white label products and Agreement with Canopy

MediPharm Labs Corp. (TSXV:LABS, OTC:MLCPF) Market Cap: $204 million

Relationships with 13 LPs secured 1,600 kg of dried cannabis for proessing

150,000kg Capacity (potential to produce 29.1 million vape pens)

Cannabis Concentration Program Agreement with 6 LPs (including Emerald)

Valens GroWorks (CSE:VGW, OTC:MYMSF) Market Cap: $214 million

25,000 Sqft Facility in Kelowna

Extraction & Processing License ACMPR and Narcotics Control Regulations

Processing Agreement with Canopy


Quarterly Revenue

$0.00

$500,000.00

$1,000,000.00

$1,500,000.00

$2,000,000.00

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2015/2016 2016/2017 2017/2018 2018/2019

Q1 = MAY 1 – JULY 31

Q2 = AUG 1 – OCT 31

Q3 = NOV 1 – JAN 31

Q4 = FEB 1 – APR 31

2019 Q3 REVENUE

$1,870,000


Highlights

Quadron has a proven management team, with expertise in engineering and extraction technology, regulation and legislation, corporate & securities law and finance

Quadron has completed substantive R&D to commercialize turn-key industrial solutions for CO2 and Ethanol extraction equipment.

The Canadian landscape for recreational cannabis is estimated to be $7 billion in 2019 (Deloitte 2018), and it’s expected that extracts and concentrates will quickly exceed the demand for cannabis flower.

Quadron is well capitalized, with $1M in working capital as at January 31, 2019 and organic revenue growth of $3.64M since 2016.

To date, the Company has sold 5 BOSS machines, 2 full lab services, and are currently in active discussions with 7 potential customers / partners.

Announced LOI for a 33% partnership in a flagship extraction and processing facility with Genetic Properties.


Management

Co-founder of Soma Labs Scientific Inc. and a successful entrepreneur bringing over 30 years of finance, skills in negotiations, and strategic business development working with both private and publicly listed companies.

Prior to his appointment with Quadron, he lead a venture capital group and a financial services company. He has developed a reputation as a strong leader.

Leo Chamberland PresidentQuadron Cannatech

Tamas JozsaPresident Soma Labs Scientific

Over 20 years of R&D engineering and management experience. Tamas has developed a wide range of multi-discipline engineering knowledge and manufacturing data-driven process strategies.

Tamas is a registered professional engineer and holds a M.Sc. Degree in mechanical engineering.

Over 20 years capital market experience working on the capital market trading floors in top ten international Investment banks.

Worked at BNP Paribas, Bank of America and Union Bank of Switzerland. Experience with complex & structured derivative process control, management, efficient operational growth & regulatory governance.

Kieran ForristalVP FinanceQuadron Cannatech

Shane LanderChief R & D Officer Quadron Cannatech

Over 30 years of business experience as an innovator and successful entrepreneur.

CEO of Odorchem, manufacturer and distributor of ‘ONA’.

15 years’ experience working with supercritical CO2 & 25 years’ experience in mechanical design and systems automation.

Over 20 years of business, entrepreneurial and legal experience specializing in corporate law and regulatory affairs. Served as strategic advisor and counsel in the venture capital space for over a decade.

Co-founder and Executive Director of the Cannabis Trade Alliance of Canada (CTAC), Advisory Board member of FinCanna Capital Corp. and Special Advisor to the Canadian Association of Canadian Cannabis Retailers.

Rosy Mondin Director, CEOQuadron Cannatech

Michael MacDonaldFounder and PresidentCybernetic Control Systems

Extensive experience in automation & machine development, utilizing a combined education in electronics engineering, chemistry & business.

Co-founder of Cybernetic Control Systems.

Mike holds a degree as an A.Sc.T. (Electronics Engineering) from BCIT.

Rosy MondinDirector & CEO

[email protected]+1-604-346-8118

Caleb Jeffries Investor Relations

[email protected]+1-604-684-6730

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Investor Presentation Winter 2019...Q3 Q4 2015/2016 2016/2017 2017/2018 2018/2019 Q1 = MAY 1 –...

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