Corporate Profile - c9egc9eg.com/wp-content/uploads/2017/08/CNEG-Aug-2017.pdf · CORPORATE PROFILE 2016 2 DISCLAIMER The material in this presentation has been prepared by Cloud Nine

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Corporate Profile 2017

CORPORATE PROFILE 2016

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DISCLAIMER


The material in this presentation has been prepared by Cloud Nine Education Group. In this regard, readers should be aware that seeing thewords “the Company” or “Cloud Nine Education Group” relate to the same entity.

The presentation provides general background information about the Company’s current activities. This information is given in summary formand does not purport to be complete. Information in this presentation, including forecast financial information, should not be considered asadvice or a recommendation to investors or potential investors in relation to holding, purchasing or selling securities or other financial productsor instruments and does not take into account your particular investment objectives, financial situation or needs.

Before acting on any information you should consider the appropriateness of the information having regard to these matters, any relevantoffer document and in particular, you should seek independent financial advice.

All securities and financial product or instrument transactions involve risks, which include (among others) the risk of adverse or unanticipatedmarket, financial or political developments and, in international transactions, currency risk.

This presentation may contain forward looking statements including statements regarding our intent, belief or current expectations withrespect to the Company’s businesses and operations, market conditions, results of operation and financial condition, capital adequacy, specificprovisions and risk management practices. Readers are cautioned not to place undue reliance on these forward looking statements.

The Company does not undertake any obligation to publicly release the result of any revisions to these forward looking statements to reflectevents or circumstances after the date hereof to reflect the occurrence of unanticipated events. While due care has been used in thepreparation of forecast information, actual results may vary in a materially positive or negative manner. Forecasts and hypothetical examplesare subject to uncertainty and contingencies outside the Company’s control. Past performance is not a reliable indication of futureperformance.



World Wide Market

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Of the 1.7B people studying English each year, less than 20M do so using cloud hosted, digital curriculums

ALL OTHER LANGUAGESESL50% 50%

French

SpanishEnglish has become the language of business and science. People study English to create pathways and opportunities in their lives.

Textbook Domination


Having become the language of business and science, studying English generates $35B annually. That is more revenue than all the other languages combined at $24B.

1.7B textbook learners

20M digital learners

Today, an opportunity exists fordigital curriculum developers tosecure a profitable position inthe international ESL market

Has created room for cloud collaborators


The Challenge

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ESL schools around the world are being challenged with ever increasing

diversity in today’s classroom

But textbook based studies do not address this reality, forcing students to progress as a group and not allowing

them to customize their learning program

The Company is focused on exploiting this deficiency and providing a competitive

alternative for students with our

Cloud Nine ESL Program

created at

Cloud Nine College



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Showcase for Individualized

ESL Studies

The College is a fully accreditedschool in BC which provides ashowcase for how to use digitallearning materials to customizeand personalize the study of ESL.

Both Cloud Nine College and theCloud Nine ESL Program havebeen accredited by the Provinceof BC through its governingagency (PTIB).



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Learning outcomes are based on international standards: (CEFR)

Common European Framework of Reference

The curriculum supports a flipped classroom approach:

Test, Teach, Test (TTT)

Cloud Nine ESL Program – Creating Customized Results

The Cloud Nine ESL Program combines technology with proven teachingpedagogies to create personalized study programs that deliver superior results.



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Teachers send students a link to video about the nextlesson. Students watch the video before class at a timemost convenient to them.

How the flipped classroom approach works (example):

Students can stop and repeat the video as many times asneeded to in order to grasp the lesson objectives.

Students take a short quiz after the video so they knowwhere to focus their attention. Teachers also receive thestudent’s answers so they know where best to assist.

The next day in class, teachers support those who needmore study. Other students are able to complete advancedexercises and take what they have learned to a new level.

More advanced students have opportunities to engage withtheir peers on a one-to-one basis.

The result is that students and teachers can now spend more class time ensuring that they are achieving targeted learning outcomes. Students can progress at their own pace.

Enhanced Methodology



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Teacher TrainingDigitally-based English Language Curriculum

Interactive Classroom Setting

Textbooks Tablets Photocopies Internet Links Recitation Real Conversations

Digital Benefits

The Cloud Nine ESL Program meets the challenge of today’s diverse classroomdemographics by integrating technology with pedagogy and enabling studentsto individualize their ESL program and progress at their own pace.



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Competition

The Cloud Nine Cloud Nine ESL Program - focused on disrupting educationpublishers by providing a competitive alternative to static, out of date, textbooks.Interactive learning materials with extensive visual content combines technologywith proven teaching pedagogy to achieve superior learning outcomes. Ongoingrevisions keep the Cloud Nine ESL Program exercises current, relevant and engaging.

The Challenge:

The Answer:

For decades publishing companies havedominated the market forcing schools andtheir students to buy new editions of textbookswith minor edits that are frequently out ofdate by the time students purchase them.

Cambridge University Press

Cloud 9

Education

Group

ALTA Book

Center

Publishers

Cambridge

University

Press

Delta

Systems

Dominie

Press

Heinle

& Heinle

Linmore

Publishing

National

Centre

for

English

New

Readers

Press

Oxford

University

Press

Perason

Education

ESL

Pro

Linqua

Associate

s

SMRT

English TESOL

University

of

Michigan

Press

Cloud BasedDigital Curriculum X X X X X X X X X X X X X

CEFR Guidelines Applied X X X X X X X X X X X X X X

ESL Instructor Certification Providied X X X X X X X X X X X X X

University Pathways X N/A X X X X X X X X X X N/A N/A

Presence in South America or Asia X N/A X X X X X X X X N/A X



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Cloud Nine ESL Program provides access to 31k pages of content thatincludes search functions and embedded links to active URL sites.

Our dynamic curriculum is designed for delivery in a classroom, by aninstructor. The cloud hosted, digital content provides students accessto study materials anywhere and any time – and at less cost than atextbook studies program.

Targeted Marketing

Broad Content and Personalized Study Programs

The Company has targeted its marketing efforts at existing schools and language providersinside Canada and in Latin America that teach ESL as part of their studies program.

The Cloud Nine ESL PROGRAM is specifically designed to meet the needs of students aged15 years and older. Cloud Nine ESL Program learners pay a licensing fee which is below thecost of textbooks when amortized over a 12 month period.


Cloud Nine provides teacher training ad certification programs forinstructors at client institutions.

The Cloud Nine ESL Program uses technology to support teachers byproviding insights into their student’s learning patterns that textbookscannot replicate.

Teacher Training and Students Analytics


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Cloud Nine College Revenue Profile

Fiscal Year Duration Earnings

2014 - 2015 9 months $476,000 CAD

2015 - 2016 12 months $821,000 CAD

2016 - 2017 12 months $850,000 CAD*

*Projected


Note to investors – the figures for 2014-2015 and 2015-2016 are from audited financial statements. The figures for 2016-2017 are estimated. There is no guarantee that such earnings will be achieved.


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Michael Hunter - PRESIDENT & CHIEF EXECUTIVE OFFICER

Mr. Hunter, an experienced teacher, has a degree in International Relations with a minor in Asian Linguistics. Hefounded Cloud Nine Education Group in 2013 and has led the company since that time. Mr. Hunter has raisedmore than $100M in equity for private & public companies since 2005 and has provided shareholders with anopportunity to secure a significant return on their investments in his last two corporate ventures.

Dalton Larson - CHAIRMAN, BOARD OF DIRECTORS

Mr. Larson has over 40 years of academic, legal and corporate experience. He is a highly regarded businessmanwith extensive experience managing private and public companies. Mr. Larson worked with Mr. Hunter between2005 – 20011 when they started First Coal Corporation with an initial investment of just $60,000 beforedeveloping the company and selling it to Xstrata for $157M in 2011.

Kulwant Sandher - AUDIT COMMITTEE CHAIRMAN

Mr. Sandher is a practicing Chartered Accountant who brings over 20 years of diverse and valuable experience in financing and company growth strategies to the Company. Mr. Sandher also holds an engineering degree from London University, England and is well positioned to assist Cloud Nine develop and achieve its corporate development plans.

Jim Matkin - DIRECTOR, SUSTAINABILITY COMMITTEE CHAIRMAN

Law degree from UBC. Former Director of the Bank of Canada (BC) and founding Chair and Director of GT Group Telecom Inc., an early stage Canadian Local Exchange Carrier (CLEC) telecommunications service provider that raised more than $2 billion in equity and debt on the NASDAQ big board and Toronto Stock Exchange. Mr. Matkin obtained a Master of Laws from Harvard University and a Bachelor of Laws and Arts from the University of Alberta. He is a Queens Counsel (Q.C.).

Fergus Fadden - DIRECTOR, TEACHER TRAINING & CURRICULUM DEVELOPMENT

Fergus Fadden is an experienced and well recognized ESL instructor and teacher trainer, mentor and manager. Heearned his first degree in law before joining the international ESL community in 2010 and has since worked inFrance, Spain, Brazil, the United States, South Africa, Canada and Ireland before joining the Cloud Nine team inearly 2015.

Team Leaders



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Team Support

Jason Deering SENIOR CURRICULUM DEVELOPER

Anna Zhao CURRICULUM DEVELOPMENT, TEAM COORDINATOR

Fatima Tehrani CURRICULUM DEVELOPMENT

Peter Lee CHIEF FINANCIAL OFFICER

Paul Searle INVESTOR RELATIONS

Cory Thomas TECHNICAL SERVICES SUPPORT, CLOUD NINE COLLEGE

Cameron Metcalf ACADEMIC DIRECTOR, CLOUD NINE COLLEGE

Karla Mendez MARKETING MANAGER, CLOUD NINE COLLEGE


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Corporate Structure & Trading Information

Share structure as of December 01, 2016 - post IPO

Shares 36,797,410 Outstanding 44,086,490 Fully Diluted

Gross proceeds raised $2,900,000

Ownership & Stock Restrictions

Management and staff own 33% of outstanding shares

36 month stock restriction…………………………………. 11,289,110 30%10% at listing & 15% every 6 months thereafter

18 month stock restriction…………………………………. 5.0M shares 10%25% at listing & 25% every 6 months thereafter

Active trading on the CSE

Commenced on December 01, 2016 Symbol CNI



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With a Worldwide MarketWorld linguistic market generates over $56B annually

More than 1.5 billion people around the world study English eachyear with no foreseeable end in sight

ESL dominates all other languages with more than 55% share of theglobal linguistic market

With Our Competitive Advantages

Ability to support students in creating personalized ESL programs thatallow them to progress at their own pace

Ongoing development and cataloguing of proprietary IP which supportthe Cloud Nine ESL Program, and create barriers to entry for competitors

Ability to provide professional development and certification forteachers working at our client institutions

With Our Industry Expertise

Qualified ESL teacher trainers on staff

Cloud Nine ESL COLLEGE: Accredited school in Vancouver

Experienced digital curriculum developers in-house

Developing a Winning Outcome


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A Profitable Business Model

Establish school now able to add recurring revenue from an ESLindustry of more than 1.5B potential users located all over the world

Highly scalable program with EBITDA exceeding 30%

Long term business opportunity with English remaining as thedominant international language for the foreseeable future

A Well Rounded Management Team

Management experience in capital markets and ESL industry

Growing international marketing and sales capacity

Comprehensive expertise with digital curriculum development

The Right Time with the Right ProductsBreadth & scope of Cloud Nine ESL Program includes over 31K pagesof content and includes videos, embedded URL links & collaborativeexercises that are current and engaging.

Cloud Nine Education ESL Program allows students to customize theirstudy program and progress at their own pace

Summary – Creating opportunity with:


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Change is the law of life. And those who look only to the past or present are certain to miss the future. -John F. Kennedy

Closing Quote:


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To learn more about our cutting edge approach to teaching English

as a Second Language contact:

Contact Information

Paul SearleInvestor Relations

Email: [email protected] Telephone: 778-240-7724


Documents

Corporate Profile - c9egc9eg.com/wp-content/uploads/2017/08/CNEG-Aug-2017.pdf · CORPORATE PROFILE 2016 2 DISCLAIMER The material in this presentation has been prepared by Cloud Nine