Unleashing the Urban Grower

Just Vert ical Inc.The Big Idea

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The modern food system is plagued by problems.

• Food insecurity among indigenous youth in the Canadian North • Food deserts in major cities • Food waste at the consumer level costing $40B annually • Environmental degradation of farmland, over 50% of all top soil gone

Can decentralized food production be part of our future?

Just Vert ical Inc.The Opportunity

The

IssueResidential hydroponic systems are limited to a niche market due to cost, ease of use, and appearance

Just Vertical’s Solution

The Ellis

Specialized knowledge of plant science

Increase productivity by 8 times compared to horizontal growing

Take the guesswork out of gardening through seedling service delivery

The Result:

Cost Savings

Cities are on the cusp of a revolution on how we produce food, with a coming disruption to both the hydroponic and broader food industries

Cost savings of up to $1,400 annually per family compared to supermarket prices

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The El l isWhat It Is

Just Vertical’s patent pending Ellis system is aesthetically pleasing, ergonomically designed and will stand out in anyone’s home as a futuristic hybrid between an appliance and piece of furniture.

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1. First of its kind; bio-plastic design

2. Not just a growing machine

3. Trade secret seedling subscription

4. Less than three square feet of space

5. Complete IP ownership to manufacture and sell globally

Customer signs up for a monthly seedling subscription and purchases an easy-to-install Ellis unit outright or through the financing model.

The customer selects plants they wish to grow from Just Vertical’s diverse plant menu.

A fresh package of seedlings using exclusive V-PodsTM is delivered monthly or as needed nutrients are delivered as needed.

Customer maintains water reservoir and nutrients levels. Nutrients and water are delivered directly to the plant via roots.

Just Vertical’s business model includes the sale of hydroponic growing systems, with subscription for proprietary V-PodTM seedling packages delivered regularly creating recurring revenues.

The Just Vert ical ModelSeedl ing Subscr ipt ion Service and Del ivery Model

1 5432

Customer harvests produce, and selects plants for future delivery.

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Go-To-Market Strategy & Target AudienceScalable, Large Niche, Ready to Launch

Just Vertical is moving into Phase 2 of our GTM and expanding our target audience.

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Phase 1 (complete): • Greater Toronto Area only • Word of mouth • Direct to consumers and restaurants• V1 unit customer validation• $60 000 sold in 9 months

Scaling: • Mail delivery • Digital marketing• Fastest growing segment of home & garden • CAGR of 24.8% through 2022

Target Audience: • Urbanites in Canadian and US markets• Environmentally conscious • Condominium or apartment living • Most likely female in the 25-49 age

range • $1.2B - $2.5B+ in market value

Go-To-Market: • Digital marketing and direct e-

commerce • Direct to restaurants & condo

developers

C o m p a n y a n d

P r o d u c t

P r o d u c e c o s t s

c o m p e t e w i t h r e t a i l

p r i c e s

A f f o r d a b l e u n i t c o s t s f o r c o n s u m e r s

E a s e o f u s e

S e e d l i n g s u b s c r i p t i o n

p a c k a g e

P r o d u c t i v i t y p e r d o l l a r s p e n t o n u n i t

P r o d u c t i v i t y f o r a r e a u n i t s i z e

Business LandscapeCompetitor AnalysisJust Vertical competes well against other residential scale products in the urban agriculture industry. See appendix for larger pictures of competitors products and explanations of Just Vertical’s competitive edge .

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Just Vert ical AccomplishmentsBusiness Accolades and Recognit ion

• Awards, Accomplishments and Recognition in 2017• March: 5th Place RBC Innovation Competition

• April: 1st Place Karafarin Pitch Competition

• May: 1st Place ICUBE Pitch Night

• July: Recognized in Toronto Sustainability Speaker Series

• September: Delta Management Clean 20 Project in Clean Capitalism

• September: Delta Management Clean 50 Leadership

• October: Featured exhibitor at the Expo for Design, Innovation and Technology (EDIT) in Toronto

• October: Hong Kong Science Technology Park Global Top 100

• 2017 Timeline

• Upcoming in 2018• April: Pre-Sales of new product opens

• April: Green Living Show vendor

• May: OCE Discovery

• June: Kickstarter launches

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Who is Just Vert icalThe Team

Conner Tidd, Co-Founder, Chief Strategy Officer MSc – University of Toronto, BA – McGill University

3+ Years of international management experience Top 30 under 30 Sustainability Leader Cross sectoral experience in technical and management roles.

Kevin Jakiela, Co-Founder , Chief Research Officer MSc – University of Toronto, BSc – Laurier

Expert in hydroponics, controlled growing environments, and plant health. Worked coast to coast developing hydroponic solutions.

The Advisory Group: Dr. Shashi Kant, Director of the Master of Science in Sustainability Management ProgramEric Amyot, cofounder of Modular FarmsICUBE, business accelerator offering early-stage business development and commercialization services

The Just Vertical team has a cross breed of leadership experience, management skills, plant science expertise, commercialization, and a strong drive to make an impact in the urban agriculture sector. The co-founders spent 2 years working together on various projects before launching the company. Above all the management team is focused on learning; from each other, from their advisors, their mistakes, and successes.

Robert DanielsAdvisorBSc – University of Pennsylvania, WhartonFounder of the Sustainable Alliance Group of Companies

Experience in investing and scaling multiple successful businessventures.

Nate Van BeilenAdvisor, Business DevelopmentMSc – University of Toronto, BA –University of Waterloo Business and strategy development experience at multiple organizationsExperience in investor relations, investment contract development and communications.

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What Have we Accomplished? 8 Bi l l ion Before 8 Bi l l ion

When we started this company we set out 3 Big Hairy Audacious Goals. We made it our mission that before the 8 billionth person is born we will:

1. Eliminate 8 billion food miles: 28,512,000

2. Save 8 million litres of water: 299,376

3. Grow 800,000 lbs of fresh, local, sustainable food: 5,400

With your help we can magnify this impact by $10,000 by: feeding and educating families, communities, and cities

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Appendix

Social Environmental• Increases access to healthy, and safely sourced

food.• Increases awareness around the sustainability of

food supply chains.• Education in schools

• 99% less water use than conventional agriculture• No soil degradation or deforestation.• Reduced packaging compared to store-bought

produce.• Less transportation-based emissions.

Just Vert icalSocial and Environmental Benefits

University of Toronto FarmWallTM Installation

Just Vertical integrates responsibility into its financial model by creating social and environmental benefits.

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• S t r a t e g i c P o s i t i o n i n g• Just Vertical is positioned in growth markets. The hydroponic industry is growing 80% faster than global markets

with a CAGR (compound annual growth rate) of 6.5% because of higher yields, food quality improvements and cheaper production costs.

• In 2018, legalisation will create a Canadian market for cannabis and supporting products and services estimated to be worth $22.7B, and home grown alternatives will play a part of it.

• H i g h M a r g i n O u t l o o k• Potential for high rate of return as an early-stage start-up investment, bolstered by high margins (55-70%) on sales

and recurring revenues through V-PodTM seedling subscriptions that retain customers over 18 months minimum, before any re-financing or sale.

• F i n a n c i a l P o s i t i o n• Recurring revenues and projected sales create a healthy cash balance to create a breakeven of COGS in year 1.

• N e a r Te r m C a t a l y s t s• Strong interest from millennials with growing purchasing power; 37% of millenials currently grow plants indoors

with sub-optimal systems, and are ready to adopt emerging hydroponic technology; push towards healthy and environmentally friendly consumption patterns, and the emerging cannabis market - are all positive catalysts for Just Verticals’ operational outlook.

• E n t e r p r i s e Va l u e C r e a t i o n • Low initial valuation (~$800K), initial shares and convertible debt structure advantageous to investors, management

eager to unlock additional value for shareholders by gaining market share in a growth market; Year-3 valuation projected between of $12M and $53M depending on growth rates and industry multiplier used.

• E a r l y M o v e r A d v a n t a g e a n d C o m p e t i t i v e L a n d s c a p e • No comparable products or financing strategies for revenue stability and growth advanced in this market as of this

time providing early mover advantage; multiple viable exit strategies exist as well.

An investment in Just Vertical Inc. is supported by the following key factors that result in a unique and timely opportunity.

Just Vert ica l Inc .Key Investment Factors

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D e s c r i p t i on

R e s i d e n t i a l C o m m e r c i a l

P r o d u c t

N a m eUrban GrowerTM FarmWallTM

D i m e n s i o n s 69.5” tall, 38” wide, 8” depth5 ft. tall, 4 ft. wide with 4 growing towers5 ft. tall, 8 ft. wide with 8 growing towers

F e a t u r e s

- Can grow 16 plants to full maturity at highly productive rates- Uses Just Vertical’s simple V-PodTM seedling system and the V-JetTM technology for effective nutrient delivery to root systems- 2 LED grow lights, with a 24L water reservoir and LED water level indicator, ultra-quiet pump

- Grows 8-10 plants per tower - For use in commercial settings- Easy to scale and install, comes with optional maintenances services- 2 LED grow lights per 4 towers

R e t a i l C o s t$499 per unit outright or $199 down and $47 monthly financing (includes seedlings) for 18 months ; $29 for a monthly seedling subscription

$1,399 for a 4 tower FarmWallTM, $170 monthly rental$2,199 for a 8 tower FarmWallTM, $320 monthly rental

Y i e l d s6-10 lbs every 4-8 weeks (weight and timing vary based on type of produce)

4 tower: 12-20 lbs every 4-8 weeks8 tower: 24-40 lbs every 4-8 weeks

P r o d u c e G r o w n

Over 45 different types of plants successfully tested – see appendix

Just Vert ica l ProductsCommerc ia l and Res ident ia l Product L ines

Just Vertical offers products and services that support both the residential and commercial customer, based on hydroponic cultivation - a soil-free growing method that utilises mineral nutrient solutions dissolved in water.

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The Urban Grower TM

The Components

*Preliminary Concept Design Only

Just Vertical’s Urban GrowerTM system is designed to minimize manufacturing costs and installation effort, automate functioning for users, and uses high quality hardware and components that optimize conditions for high-yield plant growth.

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Customers save money on organic produce with the Urban GrowerTM compared to purchases from supermarkets. Just Vertical’s customers will satisfy many tastes with their customizable seedling packages, some of which are outlined below. The options are endless… See Appendix for full plant lists.

The Urban Grower TM

What can be produced? What costs can be saved?

A n n u a l S a v i n g s * : $ 5 4 0 - $ 1 , 0 5 0

Herb l i c iou s Ch ef

F u l l B od ied Green s S u p er S a lad M ix

Berr ies/ f ru i t s/ veg g ies

A n n u a l S a v i n g s * : $ 7 5 0 - $ 1 , 4 3 0

A n n u a l S a v i n g s * : $ 5 0 0 - $ 9 9 0 A n n u a l S a v i n g s * : $ 4 6 0 - $ 9 2 0

*Calculation is based on an average of regional prices across Canada. Highs and lows depends on grocer, location, and

price markups.

Kale Swiss Chard Bok Choi Lettuces Spinach Arugula

Basil Cilantro MintEver-bearing

StrawberriesCherry TomatoesHot

peppers

+ 5more

+ 10more

+ 7more

+ 11more

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Customers can select from the many seedling packages, some of which are listed below, and may be customised within or between packages. Three or four plants from each category can be grown on each growing unit, except for package 4 which can grown 1-2 different plants.

The Urban Grower TM

What can be produced

a) Kale (Starbor, red ursa, scarlet, blue

scotch etc.)

b) Collards (baby or mature)

c) Bok Choi

d) Joi Choi

e) Water Cress

f) Swiss Chard

g) Basil (sweet, Thai, Purple, etc.)

a) Lettuces (salanova, buttercrunch,

romaine, loose-leaf, baby leaf, etc.)

b) Spinach (baby, mature)

c) Swiss chard

d) Arugula

e) Radicchio

f) Sorrel

g) Dandelion

a) Basil (sweet, Thai,

Purple, etc.)

b) Chives

c) Parsley

d) Mint

e) Cilantro (and/or

coriander)

f) Rosemary

g) Oregano

h) Dill

i) Thyme

j) Sage

k) Chervil

a) Ever-bearing Strawberries

b) Day-neutral Strawberries

c) Blueberries

d) Cherry Tomatoes

e) Dwarf Pumpkins

f) Dwarf Cucumber

g) Mild Peppers (bell pepper)

h) Hot peppers (habanero, ghost, etc.)

P a c k a g e 3 : H e r b s

P a c k a g e 1 : B r a s s i c a s P a c k a g e 2 : L e a f y G r e e n s

P a c k a g e 4 : B e r r i e s / f r u i t s / v e g g i e s

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Just Vertical’s Urban GrowerTM was designed for everyday produce, but the emerging market for Cannabis presents a significant additional market opportunity for an additional 30-40% in increased sales.

The Just Vert ical ModelThe Urban Grower TM and Cannabis

CannabisMarket s ize Potentia l : $22.7B*

Leg is lat ionRecreational use and growing in Canada

will be permitted through the Cannabis

Act, scheduled for passage no later than

July 2018, subject to parliamentary

approval and royal assent.

The Cannabis Act will allow each

residence to grow up to 4 cannabis

plants, suitable for the Urban GrowerTM.

Access to cannabis will be limited to

stores run by the LCBO (Ontario) and

other similar entities in other

jurisdictions, motivating many

recreational users to contemplate

growing at home.

Home Grown

Cost Fac torsMany medicinal cannabis users

currently grow their own plants with

make-shift systems. Just Vertical’s

product can simplify the growing

process significantly and will be easy to

use and maintain for customers.

M arket S i ze an d D eman dThe size of the cannabis market in Canada

alone is projected to be worth $22.7B,

including ancillary services, according to

Deloitte. Demand is projected to outstrip

supply. Hydroponic suppliers are expecting

a flood of customers after legislation is

passed.

*Deloitte (2017) Recreational Marijuana. Insights and Opportunities

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Don’t understand the ins and outs of growing plants? Just Vertical knows that ease of use and convenience are key for the success of indoor growing. They have done the leg-work so that anyone can have a green thumb.

N u t r i e n t s

T h e F r e s h e s t F o o d P o s s i b l e

L i g h t s

Just Vertical provides the specific nutrients

required to ensure that JV-JetTM allows V-

PodsTM to quickly grow into nutritious produce.

High-efficiency LED grow lights provide

the plants with consistent conditions

that optimize plant growth.

I n s t a l l a t i o n

With very few components or moving parts, the Urban GrowerTM can be installed in a home in

less than an hour. Installing new V-podsTM is as easy as a using a “Keurig” type coffee machine.

C l e a n l i n e s s

No one likes a dirty kitchen. The

Urban GrowerTM doesn’t use any soil

and parts are removable for easy

rinsing.

W a t e r

The Urban GrowerTM has an LED light

indicator that shows when water levels are

low and filling is required. No waterline

required.

Instead of opening the fridge to find slimy cilantro, the

continual growth of the Urban GrowerTM allows customers to

harvest the freshest food possible.

The Urban Grower TM SystemSimpl ic ity and Convenience is Key

S e t - u p

I n p u t s

Re s u l t s

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The Urban Grower TM

Simpl ic ity and Convenience Is Key

*Preliminary Concept Design Only

Easy One Time Assembly

Check water and nutrients – every 1-2 weeks

Simple Unit Maintenance – every 3 months

Time-saving is a key factor for interest in hydroponic technology. Just Vertical’s Urban GrowerTM system is easy to set up and maintain – no more than a few minutes per week on average.

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Just Vertical wants everyone to have access to the equipment they need to grow their own healthy food. The product pricing plan ensures that most consumers will be able to purchase or finance a unit and start growing food sustainably, while ensuring healthy margins for the business.

The Urban Grower TM Pric ing SchemeMargins and Prof its

O p t i o n sP a y m e n t P l a n

+ S e e d l i n g S u b s c r i p t i o n

F u l l P u r c h a s eS e e d l i n g

S u b s c r i p t i o n

D e s c r i p t i o

n

18 month term payment plan and seedling subscription

No financing, full price paid upfront, does not include seedling subscription

Only applicable for full purchase option

P r i c i n g

$199 with $47 per month financing including seedlings subscription

$499 per unit $29 per month

C O G S ( e x c l u d i n g o v e r h e a d )

$225 per unit (estimate)

$8.70 per seedling delivery$225 per unit (estimate) $8.70 per seedling delivery

B r e a k e v e n/

M a r g i n

Breakeven to cover COGS: 2 months

Margin (including seedlings): 64%

Margin: 55% Margin: 70%

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Urban Grower TM

Timel ine to Commerc ia l i zat ion

The commercialization plan, which commenced in January 2018, involves detailed engineered design, prototype production, branding, website development, a Kickstarter campaign and a first production run of 500 units by July 2018.

T I M I N G W O R K S C O P E A N D D E L I V E R A B L E S

J a n / F e b• Financing finalized and fabrication of concept prototype, with basic systems in place.• Marketing plan and website development underway.

F e b / M a r

• Detailed design and engineering of unit structure and all components completed.• Marketing plan and website completed, with media developed to generate consumer interest.• Product distribution plan developed and office/work space secured.• Kickstarter campaign strategy completed.

M a r / A p r• Fabrication of pre production prototype for user testing and marketing; yield testing conducted.• Marketing campaign executed, Kickstarter campaign launched, customer feedback gained.• Presales begin and product is shown in exhibitions across North America.

A p r• Manufacturing drawings finalized, and engineering transfers completed with suppliers.• Seedling package design and delivery logistics completed, presales continually generated through social

media channels, press releases, and news media features.

A p r / M a y• Design packaging, and oversee tooling build, test units and finalize product certification, while continuing to

generate sales through Kickstarter.• Initial test manufacturing run launched to test tooling and production management.

M a y• Hardware supply vendors and and plastic and metal molds and tooling finalized. • Relationships with suppliers established and formalized.

J u n / J u l• 500 units manufactured, packaged, and shipped to warehouse and consumers.• Continual engagement with potential customers through strategic and partnerships.

C o m p l e t e

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Just Vertical’s marketing strategy focuses on key demographics and target markets – primarily urban, health conscious millennials – and consists of four levels that will generate projected sales of 1,500 –2,500 units by the end of year 1.

The Just Vert ical ModelMult i -Tiered Marketing Strategy

Specific demographics and geographies

will be targeted through paid ads on social

media, google ad-words, email opt-ins, and

search engine optimization coupled with

strong customer/user engagement,

starting with a kickstarter campaign to

generate between 750-1,500 unit sales by

mid 2018.

Referral programs will increase brand

awareness and customer loyalty while

technical tracking systems used with retailers

like Amazon and Alibaba will help JV reach

growth markets abroad and maintain healthy

conversion rates.

Referral & Tracking

Outbound SalesTrade Shows/Demos

Digital/In-Bound

An outbound sales team will focus on large on-

line conventional retailers, conventional big

box and specialty stores, large public and

private property owners As well, new

international markets will be identified and

pursued.. By the end of year 2, this marketing

strategy expects to generate up to 50% of

sales.

Attending relevant trade shows and setting

up demos in strategic locations will provide

potential customers and retailers with a

“look and feel” experience to drive sales.

Engaging with customers will help build a

brand and culture around JV.

1.

2.

3.

4.

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F inanc ia l Summar ySa les Pro ject ions : H igh and Low Models

The sales growth rates analysis is conducted through different scenarios based on products in similar retail consumer product categories. The following tables show the Urban GrowerTM unit and financing and V-PodTM numbers per year with associated revenues. The V-Pod TM package sales ramps up as customers purchase each month.

Urban GrowerTM unit Sales 687 2,479 4,963

Urban GrowerTM Down Payment + Financing 836 3,099 6,204

V-PodTM Package 2,923 18,756 66,504

Sales Revenue $ 752,872 $ 3,626,024 $ 8,956,282

Urban GrowerTM unit Sales 710 3,028 7,514

Urban GrowerTM Down Payment + Financing 865 3,785 9,392

V-PodTM Package 2,975 21,014 84,251

Sales Revenue $ 774,998 $ 4,259,596 $ 12,545,348

Urban GrowerTM unit Sales 734 3,969 13,505

Urban GrowerTM Down Payment + Financing 895 4,962 16,881

V-PodTM Package 3,027 24,503 120,159

Sales Revenue $ 97,942 $ 5,307,383 $ 20,485,703

A g g r e s s i v e

M o d e r a t e

C o n s e r v a t i v e

Canada

US

Global

Year 1 Year 2 Year 3

S a l e s G r o w t h R a t e Ma

rk

et

Re

ac

h

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F inanc ia l Summar yHigh and Low Models : Year 1 -3 Revenues and Cost

*For reference only

Year 1 Year 2 Year 3

Revenues $752,872 $3,626,024 $8,956,282

Cost of Inventory $423,942 $1,705,036 $3,743,723

Operating Expenses $696,507 $1,535,230 $2,637,951

EBITDA -$367,577 $385,758 $2,574,609

Va l u a t i o n : $ 1 2 . 8 M - $ 1 8 M

Year 1 Year 2 Year 3

Revenues $774,998 $4,259,596 $12,545,348

Cost of Inventory $437,635 $2,052,287 $5,472,660

Operating Expenses $700,314 $1,580,415 $2,865,400

EBITDA -$362,951 $626,894 $4,207,287

Va l u a t i o n : $ 2 1 M - $ 2 9 . 4 M

Year 1 Year 2 Year 3

Revenues $797,942 $5,307,383 $20,485,703

Cost of Inventory $451,853 $2,640,846 $9,445,029

Operating Expenses $704,282 $1,650,630 $3,343,236

EBITDA -$358,193 $1,015,908 $7,697,437

Va l u a t i o n : $ 3 8 . 4 M - $ 5 3 . 8 M

A g g r e s s i v e

M o d e r a t e

C o n s e r v a t i v e

S a l e s G r o w t h R a t e

A detailed cash flow model includes a range of possible year EBITDA growth trajectories and valuation scenarios based on conservative, moderate, and aggressive sales targets, prior to any re-financing or sale. The valuation is calculated by Year 3 EBITDA with an industry multiplier of range of 5 – 7.

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Ex i t St rategyAcquis i t ion Opt ions

L arge

Gro c er y

Ch ain s

Grocery chains will be interested as Just Vertical’s produce is cost competitive with retail prices. Some are already in discussions to work with Just Vertical on in-store applications.

U rb an

Agr ic u l tu re

Co m p an ies

Established urban agriculture companies with commercial operations may choose to acquire a residential product line into their offerings thereby achieving horizontal integration.

Can n ab is

Eq u ip ment

Su p p l iers

Cannabis suppliers may gain market share through acquiring Just Vertical as many people are expected to grow plants at home. Acquiring Just Vertical would allow these companies to expand market presence.

Several viable exit strategies exist for Just Vertical. There is potential for acquisition from the following three market players and for other investors to refinance the company to allow for expansion and product improvements.

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Just Vert ica l ’s NetworkLaunch Support Contracts

Ben & BexProfessional web developers who are creating a modern, sleek and engaging website for Just Vertical in addition to enhancing the brand through product naming and designs for logos and packaging,

Inertia EngineeringHighly successful and well regarded industrial design and engineering firm that has finalized the design for the Urban GrowerTM unit and is leveraging relationships with overseas contacts to ensure cost effective and high quality supply chains and manufacturing contracts are in place.

The Just Vertical team is working with experienced and driven contractors and organizations that provide expertise to move Just Vertical from the start-up phase to a fully commercialized, professional business.

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PlayFight StudiosBoutique visual effects, creative design and branding studio that has a track record of developing successful kickstarter campaigns. Playfight’s experience in storytelling and visuals will create hype and excitement to help Just Vertical’s kickstarter campaign go viral and generate large pre-sales.

Modular FarmsEstablished urban farming company that provides insight on plant health science, cost effective LED lighting, and nutrient solutions to optimize indoor plant growth while minimizing input costs.

MaRS InnovationProviding an extremely valuable hub of connections to innovative, forward thinking companies that are ready to contract with Just Vertical and integrate the Urban GrowerTM into their offices, franchises, and retail outlets.

Impact CentreThe current home of Just Vertical, providing a space to accelerate and commercialize research, conduct plant science and growth trials. Provides connections to industry clients, academia, government, other entrepreneurs, and access to training, and start-up incubation.

Just Vert ica lLook ing into the future…

Just Vertical‘s management team has developed a rough outline of future business streams that will help the company diversify its revenue streams, stay relevant, and attract more attention and customers.

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• P r o d u c t L i n e I m p r o v e m e n t s• Continued product development and improvements based on customer feedback and surveys, including new

designs and product dimensions (smaller or larger)• Additional components that could be integrated include nutrient sensors, Internet of Things (IoT) enabled data

tracking systems, phone app for remote control/maintenance, and additional plant variety offerings.

• G a i n i n g C o m m e r c i a l C l i e n t s• The Urban Grower may be adapted for growing large quantities in commercial scale grow operations and compete

with current grow technology that requires relatively large amounts of labour. • A B2B Circular Economy approach through a Product as a Service (PaaS) business model, where JV would lease

growing units to commercial clients, would provide the following benefits to commercial growers:• Turnkey growing solutions• No upfront investment needed by commercial client• Maintenance costs and depreciation are avoided• End of product life management costs avoided

• The benefits to JV would include lucrative recurring revenue streams from large commercial clients, marketability of the circular economy PaaS business model, revenue stream diversification, and access to a growing market for suppliers of high quality, yet cost effective hydroponic growing systems.

• P l a n t G r o w t h I n n o v a t i o n / R e s e a r c h & D e v e l o p m e n t• High cost products that are in high demand and require specific growing conditions can be grown with JV’s plant

science knowledge.• Includes hops for use in breweries and specialized feed supplements for large commercial livestock operations.

Summary: 10 reasons why Just Vert ica l wi l l succeed

10 reasons listed below that explain the why Just Vertical will succeed and attract attention from forward-looking investors.

1 . T h e t e a m : driven, adaptive, quick learners, connections to the right industry partners, uniquely knowledgeable in plant

science, team has different but complementary skill-sets.

2 . P r o d u c t : new, exciting and innovative product, developed with help from an experienced and competent industrial

design team that will have superior design compared to competition and create a statement for homes/lifestyles.

3 . V i s i o n a n d D e t e r m i n a t i o n : The Just Vertical team has a strong desire to make a difference, and has a track

record of overcoming challenges. The team’s determination inspires customers and can build a strong brand.

4 . B u s i n e s s M o d e l a n d P r o f i t a b i l i t y : two payment alternatives (one time payment or recurring

revenues) overcome the price barrier, and subscriptions support strong cash flows, recurring revenues with high margins & customer retention, and fast growth beyond Canada and the US.

5 . T i m i n g : strong economy in Canada & US, millennial buying habits, cannabis legislation, compounding climate change

issues and need for solutions, market growth for health-oriented consumers.

6 . C o m p e t i t i o n : weak competition that fails to integrate engineering, plant science, pricing, customer service and

business model development.

7 . M e g a t r e n d s : The world is moving towards ecologically sound principles of living. A sustainable society will grow food

year-round in homes. More and more people are seeing this future and want to be a part of it. Extremely positive feedback from current customers.

8 . C o n v e n i e n c e : working with the Urban GrowerTM is much easier than buying herbs, greens and other vegetables and

storing/forgetting them in a fridge; people are willing to pay for convenience and time saving.

9 . C o s t S a v i n g s : real annual cost savings of up to $1,400 over conventional organic produce creates customer buy-in.

1 0 . L e a n : maintains low overhead expenses, build a driven team that shares the vision, outsource manufacturing to

established network of interested businesses and contacts.

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Compet i t ive ProductsGrowing Need for Affordable Organic Produce Supply

Just Vertical‘s Urban GrowerTM outperforms the competition on plant productivity and cost due to the team’s unique understanding of plant science and seedling service offering. Competitor products cannot compete due to design flaws, size limitations, installation and maintenance requirements, and lower quality lighting and nutrient delivery systems.

Good reception and fundraising in a kickstarter campaign but engineering challenges with water delivery, poorly designed units that limit plant growth ended with a failed enterprise.

Successful indiegogocampaign, but limited success due to high price point, smaller units limit productivity, inadequate lighting system, and difficult installation requirements because of the wall mounted structure. .

Pictures not to scale

Large circular size, requires continual upkeep and external lights, limited service support, and expensive add-ons; not cost competitive.

Successful convertible debt funding raised but small size limits plant size and productivity, wall mounted installation is difficult, high price point for small amount of produce.

Successful venture funding acquired, extremely small table-top units that have limited growing capacity, non competitive with grocery bought food; more for decoration.

Top competitor; public company with different sized units. Productivity limited by sub-optimal plant and nutrient combinations. Misalignment between plant types and nutrients.

Barebones design of plant growing structure, assembly required, limited by lack of seedling offering, with no supporting service, takes up large area.

Urban GrowerTM

Produce Pr ice IncreasesGrowing Need for Affordable Organic Produce Supply

Fresh produce costs are increasing due to:

The factors listed above caused prices for fresh vegetables to increase more than any other category of food in 2016 at 4.5% (Dalhousie University, 2017). Climate change is also expected to jeopardize yields and increase prices in the longer term (FAO, 2017).

Demand for fresh produce is driven by convenience and time-saving (Euromonitor, 2017). Demand for organic produce is driven by concerns about health and safety (Organic Consumer Association, 2017).

Organic food is outperforming conventional alternatives in every core market (Euromonitor, 2017) and sales have increased by 20% annually in the US which is now importing more than $1B a year in imported organic food according to (USDA, 2016).

• loss of processing in Canada• increasing input costs • climate

• a low Canadian dollar• high imported quantities• food retail and distribution landscape

Euromonitor International, (2017) Rise in Global Fresh Food Demand http://www.fruitnet.com/americafruit/article/172813/rise-in-global-fresh-food-demandFood and Agriculture Organization (2017) The future of food and agriculture – Trends and challenges. http://www.fao.org/3/a-i6583e.pdfOrganic Consumers Association (2017) Demand for Organic Food Growing Faster than Domestic Supply https://www.organicconsumers.org/news/demand-organic-food-growing-faster-domestic-supplyUniversity of Dalhousie (2017) Canada’s Food Price Report 2017 https://cdn.dal.ca/content/dam/dalhousie/pdf/management/News/News%20&%20Events/21135-Food-Price-Report-Eng-2017-Final.pdfUSDA, (2018) US: Sales of organic agricultural products continue to increase http://www.freshplaza.com/article/187297/US-Sales-of-organic-agricultural-products-continue-to-increase

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