XPhyto Therapeutics Investor Presentation...This presentation contains “forward-looking...

A Next Generation Cannabis Company

I N V E S T O R P R E S E N TAT I O N | O C T O B E R 2 0 1 9

C S E : X P H Y F S E : 4 X T

F O R WA R D L O O K I N G S TAT E M E N T

This presentation contains “forward-looking information” within the meaning of applicable securities laws in Canada, including statements about XPhyto’s business andcorporate strategy, product utility, development and performance, regulatory matters, manufacturing plans and intellectual property plans and the expected development ofXPhyto’s business, trials, products, projects and partnerships. Particularly, information regarding our expectations of future results, performance, achievements, prospects oropportunities is forward-looking information. In some cases, forward-looking information can be identified by the use of forward-looking terminology such as “may”, “will”,“expect”, “intend”, “estimate”, “anticipate”, “believe”, “continue”, “plans” or variations of such words. In addition, any statements that refer to expectations, intentions,projections or other characterizations of future events or circumstances contain forward-looking information. For this purpose, any statement that is not a statement ofhistorical fact should be considered forward-looking information.

Forward-looking information contained in this presentation is based on our opinions, estimates and assumptions in light of our experience and perception of historical trends,current conditions and expected future developments, as well as other factors that we currently believe are appropriate and reasonable in the circumstances. Despite acareful process to prepare and review the forward-looking information, there can be no assurance that the underlying opinions, estimates and assumptions will prove to becorrect. Forward-looking information is also subject to numerous risks and uncertainties, including: XPhyto’s short operating history; the possibility that XPhyto may neverreceive any product sales revenue or achieve profitability; risks involved in completing the clinical development of, and receiving regulatory approval for product candidates;uncertainties related to whether our product candidates under development will become effective; permit and licensing risk, as well as those risks and uncertainties set outin XPhyto’s Final Long Form Prospectus, dated May 17, 2019 and available on the Company’s SEDAR profile at www.sedar.com.

Although we have attempted to identify important risk factors that could cause actual results to differ materially from those contained in the forward-looking information inthis presentation, there may be other risk factors not presently known to us, or that we presently believe are not material, that could also cause actual results or futureevents to differ materially from those expressed in the forward-looking information in this presentation. There can be no assurance that the forward-looking information inthis presentation will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. The forward-lookinginformation contained in this presentation represents our expectations as of the date of this presentation or the date indicated, regardless of the time of delivery of thepresentation. XPhyto undertakes no obligation to update the forward looking information in this presentation except as required by applicable law. All of the forward lookinginformation contained in this presentation is expressly qualified by the foregoing cautionary statements.

THIS PRESENTATION IS FOR INFORMATION PURPOSES ONLY AND DOES NOT CONSTITUTE AN OFFERTO SELL OR SOLICITATION OF AN OFFER TO BUY ANY SECURITY.

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CO R P O R AT E OV E RV I E W

XPhyto Therapeutics Corp. (“XPhyto” or the “Company”) is a Canadian public company focused on

cannabis formulation, drug delivery, clinical validation, and European markets. XPhyto’s 100%

owned German subsidiary, Bunker Pflanzenextrakte GmbH (“Bunker”), has been granted a unique

German cannabis cultivation and extraction licence for scientific purposes by the German health

authority (“BfArM.”) Bunker has two exclusive R&D collaboration agreements with the Technical

University of Munich, Faculty of Chemistry as well as the Chair of Beverage and Brewing

Technology. XPhyto has also acquired 100% of Vektor Pharma TF GmbH (“Vektor”), a German

narcotics manufacturer, importer and researcher with deep expertise in the design, testing and

manufacture of thin film drug delivery systems, particularly transdermal patches and sub-lingual

(oral) wafers. In Canada, two exclusive 5-year engagements with the Faculty of Pharmacy at the

University of Alberta provide certified extraction, isolation, and formulation facilities, drug research

and development expertise, as well as commercial analytical testing capability.

X P H Y T O T H E R A P E U T I C S C S E : X P H Y , F S E : 4 X TI N V E S T O R P R E S E N T A T I O N 2 0 1 9

3X P H Y T O T H E R A P E U T I C S C S E : X P H Y , F S E : 4 X TI N V E S T O R P R E S E N T A T I O N 2 0 1 9

XPhyto was created to bridge the gap between traditional cannabis-based medicine and modern scientific approaches to therapeutic validation.

CO R P O R AT E V I S I O N

To capture the next generation of cannabis investment opportunities: novel formulation, efficient and non-invasive delivery, clinical validation, and emerging European markets.

CO R P O R AT E M I S S I O N


B U I L D I N G A N EX T G EN ER AT I O N C A N N A B I S CO M PA N Y: Intelligent Capital and Human Resources

EXTENSIVE GLOBAL SUPPLY NETWORKSPremium quality products with no capital investment in cultivation infrastructure;

WORLD-CLASS DRUG DELIVERY EXPERTISEMarket-leading technology that is safe for patients;

WORLD-CLASS DRUG DISCOVERY EXPERTISEA future investment in a high-margin business.

UNIQUE GERMAN R&D LICENCESFirst-mover advantage and industry leadership;

EFFICIENT M&A TRANSACTIONSPrudent management committed to building shareholder value;

R&D COLLABORATIONSAccess to world-class facilities with limited capital investment;

GERMAN IMPORT LICENCESNear-term revenue;

Business opportunities subject to government licencing, regulatory compliance and financing, among other risks.

XPhyto is set to leverage its strategic alliances and acquisitions, building the right team at the right time.


N EX T G EN E R AT I O N C A N N A B I S A S S ET S A N D CO L L A B O R AT I O N S

B U N K E R P F L A N Z E N E X T R A K T E G M B H

100% owned, based in Bavaria;

Unique German cannabis cultivation and

extraction licence for scientific purposes

from German Federal Institute for Drugs

and Medical Devices (BfArM);

Exclusive R&D collaboration with the

Technical University of Munich, Faculty of

Chemistry;

Exclusive R&D collaboration with the

Technical University of Munich, School of

Life Sciences Weihenstephan, Chair of

Brewing and Beverage Technology.

V E K T O R P H A R M A T F G M B H

100% owned, based in Bavaria;

World-class thin-film drug delivery expertise

and equipment;

Extensive narcotics import and

manufacturing licences including a

commercial import licence for cannabis

flower;

EU GMP facilities.

F A C U LT Y O F P H A R M A C Y A N D P H A R M A C E U T I C A L S C I E N C E S , U N I V E R S I T Y O F A L B E R TA

Exclusive agreement for cannabis extraction, isolation, formulation, and clinical validation;

Exclusive agreement for cannabis analytical

QA/QC testing (cannabinoids, heavy metals,

pesticides, etc.);

ISO-certified clean room, cannabis

extraction equipment, and manufacturing

equipment.

S T E P H E N S C H R O E D E R

Exclusive European consulting engagement;

British Columbia, Canada based, world

renowned cannabis cultivation and industry

expert with unrivaled commitment to

quality of product


ST R AT EG I C G ER M A N ACQ U I S I T I O N : B U N K ER P F L A N Z EN EX T R A K T E G M B H

German Cannabis Licence for Scientific Cultivation and Extraction

XPhyto Therapeutics Corp. acquired 100% of Bunker

Pflanzenextrakte GmbH, a Bavarian-based German cannabis

company. Bunker holds a unique German cannabis cultivation

and extraction licence for scientific purposes awarded by the

German health authority. Subject to meeting BfArM security

requirements, the licence authorizes the Company to

cultivate, extract up to 70 different strains of Cannabis sativa

and Cannabis indica for scientific purposes.


01 High security facility is the basis for German health authority approval;

02 Optimal logistic connections and proximity to Munich West Commercial Airport;

03Excellent mechanical and security infrastructure; security concept for BfArM approval is complete;

04 Long-term lease for the entire building;

05Approx. 10, 741 sq. ft., with nearby expansion space available.

ST R AT EG I C G ER M A N ACQ U I S I T I O N : B U N K E R P F L A N Z E N E X T R A K T E G M B H

E xam ple of one of m any air - locked doors in the bunker.


ST R AT EG I C G ER M A N ACQ U I S I T I O N : V EK TO R P H A R M A T F G M B H

Extensive Narcotics Import and Manufacturing Licences

XPhyto Therapeutics Corp. acquired 100% of Vektor Pharma TF GmbH, a German narcotics

manufacturer, importer, and researcher. For over a decade, the company and its team have been

leaders in the design, testing and manufacture of thin film drug delivery systems, particularly

transdermal patches and sub-lingual (oral) strips for the clinical management of pain. Vektor holds a

number of valid narcotics licences pursuant to EU GMP certification and other governing regulations:

Import Permit for drug dosage forms; Import Permit for cannabis; Manufacturing Permit for clinical

samples; Manufacturing Permit for final drug product release; Analytical Permit for chemical and

physical testing; Permit to handle narcotic drugs; and a Permit to handle animal tissue. Vektor’s various

narcotics licences include authorizations related to conventional and cannabis-related prescription

medications, including but not limited to: Buprenorphine, Cannabis, Dronabinol, Fentanyl,

Hydromorphone, Oxycodone, and THC.

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ST R AT EG I C C A N A D I A N A L L I A N C E: T H E U N I V E RS I T Y O F A L B ERTA

XPhyto has developed two strategic collaborations with the University of Alberta’s Faculty of Pharmacy and Pharmaceutical Sciences.

At a minimal cost of entry, two exclusive 5-year engagements provide the Company

with certified analytical testing capability, as well as a certified extraction, isolation, and

formulation facility. The University of Alberta is home to the Alberta Drug Development

& Innovation Centre (DDIC), specializing in: Biopharmaceutics, Drug Delivery, Quality

Control, Regulatory Sciences.



S T R AT E G I C G E R M A N A L L I A N C E : T E C H N I C A L U N I V E R S I T Y O F M U N I C H

E x c l u s i v e R & D Co l l ab o r at i o n w i t h T U M ’s Fac u l t y o f C h e m i s t r y

XPhyto’s wholly-owned German subsidiary, Bunker,

has signed an exclusive cannabis R&D agreement with

the Technical University of Munich (“TUM”). The initial

research project will focus on the identification and

assessment of novel R&D approaches to utilize the

cannabis plant and its derivatives, including

cannabinoids, terpenes, terpenoids, polyphenols and

flavones. Promising targets will be advanced through

pilot studies and pending preliminary success, pursued

via separate joint research projects on a case-by-case

basis for potential commercialization.

S T R AT E G I C G E R M A N A L L I A N C E : T E C H N I C A L U N I V E R S I T Y O F M U N I C H

E x c l u s i v e R & D Co l l ab o r at i o n w i t h t h e C h ai r o f B r e w i n g & B e v e r ag e Te c h n o l o g y

Bunker has also entered into an exclusive cannabis

R&D agreement with the Chair of Brewing and

Beverage Technology at the TUM School of Life

Sciences in Weihenstephan. Pursuant to the

Agreement, initial research will focus on the

identification and development of new research

approaches targeting potential commercial

applications for the use and inclusion of cannabis

plants, parts thereof, or derived ingredients, active

ingredients and flavours for the production of

beverages, food and dietary supplements. Preliminary

testing will include analysis of the chemical-physical

suitability of the cannabis derived materials for use in

various food and beverages. Specific cannabis

applications with prospective commercial viability will

be pursued via separate joint research projects on a

case-by-case basis.


ALL EYES ON GermanyI N T H E G ROW I N G C A N N A B I S M A R K ET

In regards to legal cannabis spending and consumption, Germany is projected to have one of the highest growth rates compared to the rest of the world – accelerating to $1.6 Billion at a 76.8% CAGR to 2022.1

1 Arcview Market Research

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T H E LU C R AT I V E C A N N A B I S I N D U ST RY

According to Ameri Research, the cannabis market was

worth $14.3 billion in 2017 and is forecasted to grow to

$63.5 billion by 2024,registering a CAGR of 21.1%.



T H E R I S E I N C A N N A B I S -B A S E D PAT E N T S A N D T R A D EM A R K S

Approximately 70% of the trademark applications are for pharmaceuticals and medicinal preparations.

A review of the over 2000 "marijuana" and

"cannabis"-related trademark applications filed in the

Canadian Intellectual Property Office ("CIPO") reveals

several recent trends.

APPLICATIONS

REGISTRATIONS

308

839

452

2016

2017

2018

4451

232016

2017

2018 174REGISTERED

1,646PENDING

2,072CURRENT MARKS


B U I L D I N G A N EX T G EN ER AT I O N C A N N A B I S CO M PA N Y: Intelligent Capital and Human Resources

EXTENSIVE GLOBAL SUPPLY NETWORKSPremium quality products with no capital investment in cultivation infrastructure;

WORLD-CLASS DRUG DELIVERY EXPERTISEMarket-leading technology that is safe for patients;

WORLD-CLASS DRUG DISCOVERY EXPERTISEA future investment in a high-margin business.

UNIQUE GERMAN R&D LICENCESFirst-mover advantage and industry leadership;

EFFICIENT M&A TRANSACTIONSPrudent management committed to building shareholder value;

R&D COLLABORATIONSAccess to world-class facilities with limited capital investment;

GERMAN IMPORT LICENCESNear-term revenue;

Business opportunities subject to government licencing, regulatory compliance and financing, among other risks.

XPhyto is set to leverage its strategic alliances and acquisitions, building the right team at the right time.

I N V E S T O R P R E S E N TAT I O N | O C T O B E R 2 0 1 9

CONTACT

Hugh Rogers, CEOT: +1.780.818.6422E: [email protected]: www.xphyto.com

XPhyto Therapeutics Investor Presentation...This presentation contains “forward-looking...

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