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Chase BC

Cannabis Project Brief

1186626 BC Ltd.

July 2019

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Private & Confidential

The information contained herein is confidential and is provided to its audience solely for the purpose of evaluation of project presented by 1186626 BC Ltd. This information is not to be shared, distributed, or otherwise used, for any other purpose by any other individual, organization, company or business entity, without the prior written permission of 1186626 BC Ltd.

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Project Highlight

  • Develop indoor medicinal, organic cannabis cultivation facility at Chase BC
  • Joint Venture with Public Company (CSE:CGRO) - see illustration on the left
  • Obtained a late-stage (ACMPR) application
  • Obtained local approval
  • Up to 486,000 sq. ft. of bio-secure space
  • Up to 100,000 kg of certified organic cannabis per year
  • Phase 1: 30,000 sq. ft. facility, 6,000 kg yield

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US $5.2 B

US $40.6 B

Canadian Cannabis Market by 2024

World-wide Cannabis Market by 2024

Source: BDS Analytics - April 9 2019

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Disclaimer Statements

This presentation and certain statements may constitute forward- looking statements. Terms such as “expect”, “believe”, “continue”, “going forward”, “expand”, and “grow”, as well as similar comments, are forward-looking in nature. These forward-looking statements include, but are not limited to, references to future capital investment, financial guidance of any kind, business strategies and measures to implement strategies, competitive strengths, goals, expansion and growth of the business and operations, plans and references to the future success or the risk profile of the company. These forward-looking statements are based on certain assumptions and analyses made by management in light of its experience and its perception of historical trends, current conditions and expected future developments as well as other factors it believes are appropriate in the circumstances. However, whether actual results and developments will conform with the expectations and predictions are subject to a number of risks and uncertainties including availability and cost of capital, general business and economic conditions, and other factors, many of which are beyond the control of the company. Should one or more of these risks materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those as described herein. Consequently, all of the forward-looking statements made in this presentation are qualified by these cautionary statements, and there can be no assurance that actual results or developments anticipated by management will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, the company. The information contained in 1186626 B.C. Ltd. marketing materials (the “Marketing Information”) is not part of an offering memorandum, subscription agreement or other such offering document. The Marketing Information may contain references and information about 1186626 B.C. Ltd. The Marketing Information is for informational purposes only. 1186626 B.C. Ltd uses reasonable efforts to provide up to date and accurate information in its marketing materials, however, errors and omissions may occur. Further, any performance data that may be expressed in the Marketing Information is an indication of past performance only and does not indicate or guarantee future results. No information in the Marketing Information should be construed as a solicitation, offer, recommendation, representation of suitability or endorsement of any security or investment. Offerings of securities in BC are made only by a private placement memorandum, offering memorandum or subscription agreement distributed by persons authorized by 1186626 B.C. Ltd

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Project Timeline

Interim License Building 1 Complete

First 30,000 sq ft. building constructed, Health Canada issue interim license to cultivate

Dec. 2019

Investment Round

Current investment Round to fund Facility Phase 1 construction

Q3 2019

Land & Late-stage Application Acquired

Land purchased and obtained a late-stage application to fast-track the process

Q1 / Q2 2019

License

First Sale

First crop passes inspection and facility receive approval to sale. Acquire finalized ACMPR LP License.

Q1 2020

Capital Pay-back

Target date to pay back investors’ original capital

July 31, 2021

Dividend Payout Begins

Quarterly Dividend payout begins

Oct. 31, 2021

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Indoor Facility

  • Local government approved
  • Certified organic method
  • 30,000 sq. ft. prefab building
  • Built one facility within 3 months (see examples)
  • Planned first crop Q4 2019 - Q1 2020
  • Annual yield 6,091 kilogram of cannabis

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Development Site - Chase BC

  • Total size of land 120 acres
  • 40 acres easily developable into building clusters of 3 phases
  • Total development size of 486,000 sq. ft.
  • Phase 1 would have total indoor space of 155,000 sq. ft. (over 30,000 kg yield)

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$36 Million

Annual Revenue

6,000 kilograms of cannabis

Forecast conservatively based on non-organic wholesale price of $6 /gram

One 30,000 sq. ft. Building

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Valuation

Cannabis company valuations are roughly linked to its revenue and revenue-producing potential. Table below shows some Canadian companies and their valuation (market cap). 118 expect our annual revenue at Phase 1 completion to be $180 million ($36M per building x 5 buildings)

Licensed Company

4Q of Revenue ($M)

Market Cap ($M)

Conventional

Canopy Growth

290.9

11,532

Aurora

170.4

7,634

Tilray

94.5

3,669

Aphria

237.1

2,201

HEXO

33.5

1,297

Organigram

67.3

1,070

Supreme

26.4

490

National Access

1.4

84

Sunniva

27.8

40

Organic

Rubicon

1.2

80

Green Organic Dutchman

7.2

864

Whistler Medical* acquired by Aurora 01/2019

5000kg

175

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Project Advantages

  • Participate in Massive Growth Cannabis Industry
  • $36M revenue per 30,000 sq. ft. building (site up to 486,000 sq. ft.)
  • Building built and operational within 4 months
  • Partner with public company with proven cultivation ability
  • Late-Stage ACMPR Licensed Producer Application
  • Premium Certified Organic Cannabis - out of 212 (as of August 2019) Licensed Producers, only less than 5 are certified organic cultivators.

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Chase BC

Cannabis Project

1186626 BC Ltd.

To Learn More:

Henry Lo (778) 378-5696

Kevin Hu (604) 992-8778

info@1186626bc.com

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News Release - Joint Venture