Antibe Therapeutics Inc. (ATE:TSXV, $0.51, SPECULATIVE BUY, PT $1.40, 174.5% Return)

Maintaining Top Pick Status For Innovative Pain Therapy Developer. Data From Key Phase II Trial Expected By Quarter-End

IMV Inc. (IMV:TSX, $4.43, SPECULATIVE BUY, PT $12.25, 176.5% Return)

Attractive Immune Therapy Developer with Multiple Clinical Inflection Points in F2020 is a Q120 Top Pick

European Residential REIT (ERE:TSXV, $4.65, BUY, PT $5.25, 16.3% Return)

Strong Leadership Combined to a Tremendous Consolidation Opportunity

Granite REIT (GRT:TSX, $68.91, BUY, PT $71.00, 7.1% Return)

Premier Global Industrial REIT; Exceptional Development Capability

Green Thumb Industries Inc. (GTII:CSE, $12.80, BUY, PT $24.00, 87.5% Return)

Doubling Down on GTI After Exceptional Outperformance, Illinois Adult-Use Sales in Focus

Photon Control Inc. (PHO:TSX, $1.39, BUY, PT $1.75, 25.9% Return)

Compelling Valuation & Industry Strength. Introducing as Top Pick.

Pivot Technology Solution, Inc.

(PTG:TSX, $1.72, BUY, PT $3.30, 101.2% Return)

Rerating Opportunity in 2020 Seen as Likely with Value Creation Top of Mind; Top Pick

Roxgold Inc. (ROXG:TSX, $0.87, BUY, PT $1.40, 60.9% Return)

Reiterating Top Pick Status — Free Cash Flow Growth and Séguéla Updated Resource & PEA to Offset Burkina Faso Risk

Revival Gold Inc. (RVG:TSXV, $0.63, SPECULATIVE BUY, PT $1.80, 185.7% Return)

Resource Estimate Update Expected in Q120 to Combine Beartrack With Maiden Arnett Creek NI43-101 Resource, Lay the Foundation for Critical Mass and Future Growth

AcuityAds Holdings Inc. (AT:TSX, $1.48, SPECULATIVE BUY, PT $3.80, 156.8% Return)

New Product Suite to Drive Larger/Longer Contracts, Continued Financial Outperformance, Sector M&A Highlights Takeover Potential

Score Media and Gaming Inc. (SCR:TSXV, $0.82, SPECULATIVE BUY, PT $1.10, 34.1% Return)

Sports Gambling Monetization; Esports Channel Supports Growth in 2020

Implied target returns are based on closing prices as of January 14, 2020

Page 2 of 75

Echelon Wealth Partners’ Top Picks Portfolio – Q419 Performance, Q120 Introduction

Q419 Performance +19.8% vs. S&P/TSX Composite +3.2%, S&P/TSX Small Cap +6.2%: For Q419, our Top Picks portfolio continued to significantly outperform both the S&P/TSX Small Cap Index by 13.6% and the broader S&P/TSX Composite Index by 16.7%. We are also pleased with our full-year 2019 return of 46.1% compared to the 15.8% returned by the S&P/TSX Small Cap Index and 22.9% return generated by the S&P/TSX Composite Index. All figures are presented as total returns.

We would like to highlight our impressive 46.1% full-year 2019 return following our disappointing performance of -17.5% in 2018 when the S&P/TSX Small Cap returned -18.2%, due to negative market conditions. We further highlight that our long-term relative outperformance record remains intact. Our three-year (2017-2019) and five-year (2015-2019) returns for our Top Picks Portfolio were a healthy 215.3% and 337.4%, respectively, well above the -2.6%/+16.9% for the S&P/TSX Small Cap Index and the 22.1%/35.6% for the S&P/TSX Composite Index.

We highlight that our small-cap heavy Top Picks Portfolio outperformance has continued despite the environment of small cap underperformance in Canadian markets. It is worth highlighting that the S&P/TSX Small Cap Index outperformed relative to the S&P/TSX Composite Index with the Q419 gap at 3.0% following the underperformance of 3.4% in Q319 with the full-year underperformance at 7.0%. Our focus on small cap stocks leaves us sensitive to investors awarding a premium for liquidity, balance sheet strength, and greater stability and visibility on financial expectations.

Consistent with the Canadian market experience, the U.S. Russell 2000 (small cap) Index outperformed the large cap S&P 500 Index in Q419, albeit marginally by 0.9%. On a full-year basis, large caps dominated both US and Canadian markets with the S&P 500 Index gaining around 31.5% with the Russell 2000 returning 25.5%. The market volatility remained relatively modest during the quarter and all year with CBOE Market Volatility (VIX) Index ranging between 24.8 and 11.0 in 2019. The VIX Index averaged ~15.4 in 2019, hovering around the five-year (2015-2019) average of ~15.1. However, the market saw spikes in August (24.6) and October (20.6) when US-China trade talks and impeachment risk intensified fear in the stock market.

Our Q419 Top Picks portfolio was heavily exposed to the Technology and Healthcare (including Cannabis) sectors, with seven out of a total ten companies belonging to these two sectors. The S&P/TSX Capped Information Technology Index outperformed the overall S&P/TSX Composite Index by a huge margin of 38.8% in 2019 and 5.1% in Q419. EWP’s Technology Top Picks (SCR-TSXV, ALYA-TSX, AT-TSX, and KSI-TSX) returns averaged ~32.9% in Q419 significantly above the 8.2% generated by the S&P/TSX Capped Information Technology Index. We would also like to highlight that our Healthcare Top Picks generated an average return of 21.1% in Q419 when the overall S&P/TSX Capped Health Care Index was down by 6.22% due to the challenging capital markets for the cannabis market. Our Cannabis Top Pick for the quarter, Green Thumb Industries, was up 18.3% during a quarter when a majority of cannabis producers were generating losses, evidenced by the Horizons Marijuana Life Sciences Index ETF (HMMJ-TSX, NR) down 24.1% (including dividends) and the Horizons US Marijuana Index ETF (HMUS-NEOE, NR) down 6.8%. Other sectors within our Q419 Top Picks portfolio included REITs and Mining, generating an average return of -4.0% and +3.7%, respectively.

We continue to present our Top Picks Portfolio as an aggressive, catalyst-rich portfolio of high-growth, entrepreneurial companies. Our median performing stock will typically generate returns below our average return as our aggressive risk profile has historically generated significant outperformers within quarters. We have benefitted from positive catalysts with take-outs, mine development/resource enhancement, and regulatory approvals all common events. We specifically strive to select stocks that are catalyst-rich supported by proven execution, positioned for high growth and backed by strong economics.

Page 3 of 75

The top performers for Q419 were kneat.com (KSI-TSX, $2.94, Speculative Buy, $3.00 PT) ahead 103.0% on significant client wins for its SaaS-based Kneat Gx platform. Kneat returned an impressive 179.6% for 2019 and was a significant contributor to our portfolio’s outperformance.

Our second highest returning stock on the quarter, Acasti Pharma (ACST-TSX, $1.21, Speculative Buy, $2.00 PT) gained 29.6% on positive momentum for its phospholipid ester-based omega-3 formulation CaPre. We published Acasti Pharma as a returning Top Pick Portfolio name for Q120 prior to the company releasing disappointing trial results on its CaPre formulation on January 13. With the release Doug Loe reduced his PT with an increased risk profile and potentially deferred timelines. His rating remains a Speculative Buy; however, we didn’t feel confident that it would generate strong near-term results. As such, Doug moved to introduce IMV Inc. (IMV–TSX, $4.43, Speculative Buy, $12.25 PT) as his second name within the portfolio. Within our Q120 Top Pick Portfolio return we are attributing the losses associated with Acasti Pharma up to its close on January 14. We note that ~79.5M shares of ACST traded over the course of the two days as we wanted to allow for the theoretical disposition of shares (of note the share volume equates to 94% turnover of its shares). The performance of IMV will be reflected consistent with its January 13 nomination. We deliberately stuck with Score Media (SCR-TSXV, $0.82, Speculative Buy, $1.10 PT) where we were rewarded by its 24.1% gain in the quarter. Its shares have returned 94.6% since we first added it to our Top Picks at the beginning of Q319.

Q120 Top Picks Portfolio Introduction: Our portfolio saw more moves than usual with five new names added to our six returning names. We continue to find opportunities in quality companies at discounted valuations where prospective catalysts support aggressive target returns.

Turning to our new Top Pick Portfolio names, Amr Ezzat nominated Photon Control Inc. (PHO-TSX, $1.39, Buy, $1.75 PT), Doug Loe added IMV Inc., Frederic Blondeau and Stephan Boire added European Residential Real Estate Investment Trust (ERE-TSXV, $4.65, Buy, $5.25 PT) and Granite Real Estate Investment Trust (GRT-TSX, $68.91, Buy, $71.00 PT), while our Tech Analyst, Gianluca Tucci, nominated Pivot Technology Solutions (PTG-TSX, $1.72, Buy, $3.30 PT). Below, we present our Q120 Top Picks Portfolio followed by our Q419 Top Picks Portfolio performance. We then provide brief profiles on our new additions, returning names, and non-returning names to our portfolio.

Q120 Top Picks Portfolio and Catalyst Drivers Table

Top Picks - Q120 Portfolio

Ticker Name 14-Jan-20

Price

Target

Target Total

Return

Additions beginning in Q120

PHO-TSX Photon Control Inc. $1.39 $1.75 25.9%

ERE.UT-TSXV European Residential REIT $4.65 $5.25 16.3%

GRT.UT-TSE Granite REIT $68.91 $71.00 7.1%

PTG-TSE Pivot Technology Solutions, Inc. $1.72 $3.30 101.2%

IMV-TSE IMV Inc. $4.43 $12.25 176.5%

Returning Top Picks in Q120

GTII-CNQ Green Thumb Industries Inc. $12.80 $24.00 87.5%

ROXG-TSE Roxgold Inc. $0.87 $1.40 60.9%

SCR-TSX Score Media and Gaming Inc. Class A $0.82 $1.10 34.1%

ATE-TSX Antibe Therapeutics, Inc. $0.51 $1.40 174.5%

AT-TSE AcuityAds Holdings Inc $1.48 $3.80 156.8%

RVG-TSX Revival Gold Inc $0.63 $1.80 185.7%

Source: Forecasts/Estimates - Echelon Wealth Partners, Consensus Data - FactSet

Page 4 of 75

Q419 Top Picks Portfolio Performance

Company 1 2 3

Revival Gold Inc. Updated Resource Estimate 2020 Work Plan Potential Financing

Green Thumb Industries Inc. Data from Illinois Adult-use sales

Progress and Timeline on NY State

Government's Push for Adult-use

Legalization in 2020

Potential for Tuck-in M&A Activity

to Bolster Position in Existing

States, or Enter New Markets

Roxgold Inc. Seguela PEA Seguela Updated ResourceQ419 Financial Results - FCF

Growth

Photon Control Inc. Quarterly Results Multiple Re-rating M&A

Antibe Therapeutics Phase II Data Partnership Activities M&A

IMV Inc. Clinical Trial Updates Partnership Activities Furthering Preclinical Initiatives

Score Media and Gaming Inc. Betting App Esports Channel Monetization Strategic Partnerships

AcuityAds Holding Inc. New Product Offerings Financial Outperformance Industry Consolidation

Pivot Technology Solutions Continued y/y EBITDA, FCF

growthSector consolidation Potential services acquisition

European REITStrong Netherlands

Fundamentals for Rental Products

Attractive Going-in Acquisition

Spreads

Solid Access to Capital Markets -

Better Liquidity

Granite REITContinuing Solid Worldwide

Demand for Logistics Space

Exceptional Optionality from

Conservative Balance Sheet

Strength of the Execution on the

Development Pipeline

Q120 Catalyst Ranking

Top Picks - Q419 Portfolio - (shaded names were Q419 additions)

Ticker Name 31-Dec-19 30-Sep-19 Q419 Returns

ATE-TSXV Antibe Therapeutics, Inc. $0.45 $0.39 15.4%

ROXG-TSX Roxgold Inc. $1.04 $1.05 -1.0%

SCR-TSXV Score Media and Gaming Inc. Class A $0.72 $0.58 24.1%

ALYA-TSX Alithya Group inc Class A $3.62 $3.93 -7.9%

ACST-TSXV Acasti Pharma Inc. Class A $3.20 $2.47 29.6%

AT-TSX AcuityAds Holdings Inc $1.37 $1.22 12.3%

IIP.UT-TSX InterRent Real Estate Investment Trust $15.64 $16.36 -4.0%

KSI-TSXV kneat.com, Inc. $2.74 $1.35 103.0%

RVG-TSXV Revival Gold Inc $0.65 $0.60 8.3%

GTII-CSE Green Thumb Industries Inc. $12.79 $10.81 18.3%

Average: 19.8%

Source: Forecasts/Estimates - Echelon Wealth Partners, Consensus Data - FactSet. Returns include dividends

YTD Q419

Indices Tot. Ret. Tot. Ret.

S&P/TSX Composite 22.88% 3.17%

S&P/TSX Small Cap Index 15.84% 6.20%

Relative Performance Tot. Ret. Tot. Ret.

S&P/TSX 16.65%

S&P/TSX Small Cap Index 13.62%

Page 5 of 75

Q120 Top Picks Portfolio – New Names

IMV Inc. (IMV-TSX, Speculative Buy, PT $12.25) – Doug Loe

▪ Value creation in broader oncology drug development universe provides the basis for ascribing top pick

status in a mid-stage drug developer: We are anointing NS-based immune therapy developer IMV as one

of our Top Picks for Q120. For perspective, we have ascribed Top Pick status to IMV before, in the FQ417-

to-FQ119 period specifically, during which IMV shares cumulatively returned 52%, and we believe that

recent market focus on acquisition-based value creation within IMV’s clinical-stage oncology drug

development universe (including Merck’s (MRK-NY, NR) take-out of MA-based tyrosine kinase inhibitor

developer Arqule (ARQL-Q, NR) for US$2.7B, and Sanofi’s (SAN-EU, NR) comparably-valued take-out of

interleukin-2 developer Synthorx (THOR-Q, NR) for US$2.5B, to name two that transpired near end-of-

FQ419) can drive imminent interest in IMV’s pipeline as well. IMV’s market profile has been comparatively

modest in recent months despite substantial clinical activity in the background, and we believe that capital

markets momentum could shift in coming months based on updates from well-advanced Phase II DPX-

Survivac-focused oncology trials.

▪ Catalyst rich pipeline with updates pending in H120: On the milestone watch, the firm just recently

provided an update from its 25-patient Phase II diffuse large B-cell lymphoma (SPiReL) trial at the 2019

American Society of Hematology meeting, testing DPX-Survivac with Merck’s anti-PD1 mAb checkpoint

inhibitor Keytruda, with seven of nine evaluable subjects engendering some magnitude of clinical benefit

(three complete responses, two partial responses, two with stable disease) at interim analysis and we see

these data as encouraging for DPX-Survivac’s prospects in this indication. The next SPiReL update is expected

during FH120, and perhaps as early as FQ120 during which our Top Pick designation applies. On other

milestones, we are still closely monitoring DPX-Survivac performance in the ongoing 85-patient Phase II

recurrent ovarian cancer (DeCidE1) trial, with a few updates that have been shared since the trial

commenced in Q216 and for which we expect a follow-up DeCidE1 interim analysis to transpire during

FQ120. We are also tracking the 184-patient Phase II Basket trial assessing DPX-Survivac in multiple

surviving-expressing solid tumours, though timelines are expected to transpire further out during H120.

▪ DPX-Survivac still drives our IMV valuation but abundant DepoVax-based formulations are already in

development, with antigen-specific immune responses uniformly reported or implied by recent updates:

Though IMV’s own pipeline commentary has been focused on DPX-Survivac in recent months, we remain

positive about the medical prospects for the firm’s DepoVax platform in other indications, including in RSV

lung infection with DPX-RSV in multiple other formulations being developed with collaborators. We do not

have any specific timeline expectations for these pipeline assets, other than for DPX-SurMAGE testing to

commence in bladder cancer within the next quarter or two, but DPX-NEO is particularly attractive to us

because of the antigen-specific immune responses that IMV/University of Connecticut collaborators have

already generated and for the potential for neoepitope-based cancer therapies to become increasingly

attractive within the cancer pharmacopeia in future years (a 15-patient Phase I trial is ongoing (started in

Q119) from which interim immune data could be available by end-of-2020). DPX formulations targeting

malaria and animal health markets are advancing in partnership with Leidos (LDOS-NY, NR) and Zoetis (ZTS-

NY, NR) respectively, and while we see these advances as positive for DepoVax’s broad-spectrum immune-

stimulation activity, neither is as yet embedded into our valuation in model.

Page 6 of 75

European Residential (ERE.un-TSXV, Buy, PT $5.25) – Frederic Blondeau and Stephan Boire

▪ Right Management Team, Right Sponsorship, Right Strategy, at the Right Time. On December 11, 2018,

Canadian Apartment Properties REIT (CAR.un; BUY) and then European Commercial REIT announced having

entered into an agreement pursuant to which ERE would acquire a portfolio of 41 properties, comprising

2,091 multi-residential units, and located in the Netherlands. Although the initial focus is on the

Netherlands, the newly created REIT has a comprehensive/broader European strategy. The total

consideration was $634M, implying a capitalization rate of 4.0%. The special meeting took place on March

21, 2019, and votes in favour of the resolution represented 99.96% of votes cast. The acquisition closed on

March 29. We believe ERE is well positioned to be Netherlands' apartment consolidator, and should

continue to benefit from attractive financing conditions, resulting in going-in investment spreads of the

order of 250-300bps.

▪ Tremendous Leadership. Today, ERE’s portfolio comprises 125 properties, totalling 5,116 units, with a value

of €1.2B ($1.7B) and an occupancy rate of 97.1%.

▪ Optimal Access to Capital and Conservative Balance Sheet. Given ERE’s strong access to external growth

opportunities and to capital markets, we expect ERE’s market capitalization to grow from $920.1M to

$1,415.3M at the end of 2020. Post all announced acquisitions and equity offering, ERE’s D/GBV ratio is

expected to be ~48%. In addition, CAR’s interest in ERE will decrease to 67%.

Granite REIT (GRT.un-TSX, Buy, PT $71.00) – Frederic Blondeau and Stephan Boire

▪ Dominant Canadian Listed Industrial Real Estate Owner, Operator and Developer. GRT is Canada’s largest

listed industrial REIT in terms of market capitalization, currently at $3.1B, owning, managing and developing

industrial, warehouse and logistics properties in North America and Europe. The REIT’s portfolio currently

comprises 82 core properties and 6 development properties, located in 9 countries (with leases paid in either

CAD, USD or EUR), and totalling 36.1M sq. ft. of GLA, with a WALT of 6.0 years and a portfolio occupancy of

99.7%. We would further underline GRT’s conservative attributes, more specifically a D/GBV ratio of 26.5%

(15% net). Moreover, the 4.3% distribution (with the REIT's eight consecutive annual distribution increases),

translates into an AFFO Payout Ratio of 84%. Over the last seven years, the REIT has been expanding its

tenants’ base beyond Magna International (MG-TSE, NR), diversifying from the single tenant heavy industrial

real estate to modern logistics, warehouse and distribution real estate, still within North America and Europe.

At the present time, 39% of the portfolio's GLA is leased on a triple-net basis to Magna International.

▪ Exceptionally Strong Team. On June 4, 2018, GRT announced the appointment of Mr. Kevan Gorrie as Chief

Executive Officer of the REIT (effective August 1, 2018). Mr. Gorrie has more than 20 years of experience in

the sector and most recently had the role of President and Chief Executive Officer of Pure Industrial Real

Estate Trust (PIRET, Private), which owns a portfolio totalling 25M sq. ft. of GLA across North America. The

REIT was privatized by Blackstone Property Partners and Ivanhoe Cambridge in 2018. We would further note

Mr. Gorrie and PIRET’s management team’s constant focus not only on value creation but also on the long-

term “institutional” business plan, notably in terms of growth and communication.

▪ Focus on Development. Given the new management team’s specific expertise in that field, we expect the

REIT to first maintain a relatively sizable pipeline of development projects (management mentioned aiming

at a pipeline of ~$300M of development projects as part of its strategy), with development yields within a

range of 5.00-5.25%, representing spreads within a range of 75-150bps, depending on the markets, and

second, to strongly execute on the business plan. The conservativeness of the balance sheet translates into

tremendous flexibility for the development segment.

Page 7 of 75

Pivot Technology Solution, Inc. (PTG-TSX, Buy, PT $3.30) – Gianluca Tucci

▪ We believe PTG is laser focused on shareholder value creation, with much of its legacy hinderances in the

rear-view mirror and a much cleaned up balance sheet to begin 2020. Pivot continues to deliver robust Adj.

EBITDA & cash-flow as it migrates to a more value-add revenue base with higher margins. Recent

optimizations to drive operating efficiencies will become more evident with y/y growth in EBITDA and EPS

while the removal of Smart Edge costs as of the end of October generates additional savings. We believe

much of the core legacy/integration issues at Pivot have been addressed and the Company is in a much

better position today to focus on shareholder value creation. We look for Q120 to be the first full clean

quarter of opex without Smart Edge related expenses. We note cash flow and gross profit remain healthy

and we believe the dividend to be secure.

▪ Pivot now benefits from a preferred Edge services partnership agreement with its sale announcement to

Intel. We believe the partnership will lead to other rewarding service opportunities in the way data is

managed and collected. We believe early fruits of this partnership should materialise in H220. We weigh the

probability of services growth, margin growth, earnings and cash flow growth over time as potential

catalysts to rerate the equity from its current materially discounted level to levels more in-line with its peers.

The Company’s focus lies in cash flow generation and quality earnings. We believe the risk/reward at current

valuation is quite compelling and worthy of Top Pick status entering 2020.

▪ It was reported in November 2019 that a large VAR, Tech Data (TECD-US, NR), was approached by Warren

Buffet's Berkshire Hathaway (BRK.B-US, NR) to be acquired for $140/shr, but was outbid by private equity

firm Apollo (APO-US, NR) in a US$145/shr, US$5.8B transaction. The offer values TECD at 0.2x LTM EV/Rev,

7.6x LTM EV/EBITDA and 9.7x LTM FCF. Applying the same EV/EBITDA multiple to our 2019E EBITDA yields

a C$3.20 equity value to PTG and applying the same FCF multiple to our 2019E Adj. FCF yields an equity

value north of C$4.10/shr. We note PTG has a 2019/2020 current Adj. FCF Yield of 40% and 29%, respectively

– 2019 being skewed due to the lump sum cash infusion from the Smart Edge sale booked in Q419.

Photon Control Inc. (PHO-TSX, Buy, PT $1.75) – Amr Ezzat

▪ We believe Photon presents exceptional risk-reward characteristics at current levels. Namely, with end-

markets in a full upswing and $0.32/shr in cash on the balance sheet, we expect limited downside and an

upward bias to our forecasts.

▪ Our forecasted EBITDA growth of 24.2% in 2020 on 10.7% top line growth, help sustain the Company’s

healthy ROIC. Furthermore, we see solid FCF generation driving the Company’s cash balance to $0.39/shr

by year end.

▪ Catalysts include a substantial jump in quarterly revenues/earnings relative to soft comparable quarters last

year, as well as the potential for M&A activity.

▪ Our DCF-derived $1.75/shr target price provides for 35% return from current levels. Further industry

strength can shift our forecasts and target price materially higher.

Page 8 of 75

Returning Names

Antibe Therapeutics Inc. (ATE-TSXV, Speculative Buy, PT $1.40) – Doug Loe

▪ Maintaining our Top Pick Status on Antibe: We continue to ascribe Top Pick status to ON-based drug

developer Antibe Therapeutics. Although the firm extended timelines to formal data read out from the

ongoing Phase II trial for lead hydrogen sulfide-releasing naproxen analog ATB-346 (recall the extension was

due to a seasonal factors hindering patient enrolment and strict patient recruitment criteria that was overtly

cautious to distinguish the GI-sparing effects of the therapy), we anticipate that this inflection point could be

plausibly anticipated this quarter, and with data sufficiently demonstrating ATB-346's potential to justify

substantive Phase II/III testing.

▪ ATE Continues to Generate Robust Share Price Performance in Q419 Despite Setback: In spite of the

encroaching timelines to data, ATE shares held steady and generated CQ419 quarterly return of +15%. Our ATE

valuation continues to be solely focused on ATB-346 and not yet to other preclinical-stage hydrogen sulfide

releasing analogs that Antibe is developing in the background, including post-surgical pain-targeted ketoprofen

analog ATB-352 and stroke prevention-targeted acetylsalicylic acid analog ATB-340, though we expect to revisit

our valuation assumptions for these pipeline candidates if/when formal clinical testing commences.

▪ Seminal Phase II ATB-346 Trial Data Could Prove to be a Significant Inflection Point: At present, Antibe

continues to enrol patients in the Phase II ATB-346 trial at four Ontario-based pain centres in collaboration

with regional CRO Veristat. As we have noted before, Veristat is not uniquely recognized as a leader in pain

therapy testing, but it does have demonstrable and diversified expertise in multiple other medical markets

(examples include T-cell lymphoma, ovarian cancer, women's health, hypercholesterolemia, and infectious

disease). We remain positive about Veristat's ability to oversee ATB-346 clinical activities and to provide data

by end of CQ120.

Green Thumb Industries Inc. (GTII-CSE, Buy, PT $24.00) – Matthew Pallotta

▪ GTI Outperforms Closest benchmark by 25% – As we anticipated in our GTI Q419 Top Pick note, the

Company’s share price performance managed to break away from the pack, overcoming sector-wide

declines – evidence by the Horizons Marijuana Life Sciences Index ETF (HMMJ-TSX, NR) down 24.1%

(including dividends) and the Horizons US Marijuana Index ETF (HMUS-NEOE, NR) down 6.8% – to post an

impressive 18.3% q/q gain in Q419. That represented an outperformance of more than 25% over the closest

benchmark, the HMUS ETF. The Company continues to execute on all aspects of the business from an

operational perspective, and we continue to favour the business in the context of the current difficult capital

markets environment considering management's intelligent capital allocation practices along with its fully

funded balance sheet.

▪ GTI Checks All the Right Boxes – In our view, GTI remains exceptionally well positioned and de-risked

relative to the MSOs we have toured and/or reviewed. The Company has conservatively executed its

expansion plans and capital management, helping to insulate itself from the pitfalls of the “land-grab”

expansion strategy undertaken by many of its now over-extended peers. The Company has also managed

to post some of, if not, the strongest EBITDA margins (19% for Q319) to date for any MSO with a comparably

expansive multi-state platform. The strong portfolio of assets also provides excellent visibility towards

growth in 2020 and thereafter. We expect that as more sophisticated capital enters the sector, companies

with stronger operating results, and well-capitalized balance sheets affording optionality for new growth

opportunities, will further decouple from their peers with weaker balance sheets, and exposure to greater

Page 9 of 75

financial and operational risks. Based on its sound financial position and operating profitability, we believe

the market should continue to reward holders of GTI relative to peers.

▪ Business Plan Developing Faster Than Anticipated, Bodes Well for Q419 and Q120 Results – GTI opened 7

new stores in Q419, compared to the 4 we had forecasted, and had 40 dispensaries in operation as January

1st. The Company has already opened more adult-use stores in the lucrative market of Illinois during Q120

than we had expected, and we believe it is likely the Company can open an additional three adult-use stores

in IL before quarter-end. We are optimistic on the Company meeting the Q120 milestones we have modeled,

including the opening of its first adult-use store in California, and the opening of the first of eight additional

licensed stores in Nevada won during the December 2018 licensing round.

▪ Eyes on Illinois as Adult-Use Sales Began on January 1 – GTI is one of the few vertically integrated operators

in this attractive limited-license market, where adult-use sales commenced this past week. With two

cultivation/processing facilities and four stores able to sell adult-use product open on January 1st, we expect

GTI be amongst the leaders in adult-use market share in Illinois from the outset. GTI reported severing

thousands of adult-use customers on its first day, and we expect that official industry-wide sales data will

be impressive once published (first day state-wide reported sales were US$3.2M, or a run rate of US$1.2B,

though we do expect this pace will moderate quickly, as a result of both expected product shortages, as well

as the higher than average customer traffic anticipated on opening day due to the novelty factor and the

holiday season). We believe the growth in sales as a result of Illinois adult-use legalization will be a catalyst

for the stock in Q120, as the Company capitalizes on the new opportunity, and as investors focus on the

attractiveness of the Illinois market.

Roxgold Inc. (ROXG-TSX, Buy, PT $1.40) – Ryan Walker

▪ ROXG shares slipped by 1% during Q419 largely owing to a deadly attack on the road between Fada and

Semafo’s (SMF-TSX, NR) Boungou mine in eastern Burkina Faso, on security November 6, 2019. We note

that the incident occurred in an area of heightened risk, near the eastern borders of Burkina Faso, and a

significant distance from ROXG’s Yaramoko gold mine.

▪ H120 provides for several significant share price catalysts including FCF growth with the Bagassi South

satellite mine now in commercial production, increasing head grades (11.5g/t Au in October versus 9.1g/t

in Q319), and a higher gold price environment in Q419 versus Q319. ROXG reported Q319 FCF of $0.05/shr

in Q319; we forecast FCF of $0.08/shr in Q419.

▪ ROXG also expects to deliver an updated resource estimate and Preliminary Economic Assessment at the

Séguéla project in Ivory Coast in H120. We contend that the PEA has the potential to positively impact the

share price as it could help demonstrate production growth potential (outside of Burkina Faso), thereby

helping to address the discount at which ROXG trades versus its peers.

Revival Gold Corp. (RVG-TSXV, Speculative Buy, PT $1.80) – Gabriel Gonzalez

▪ Revival is currently in the process of updating its combined Beartrack and Arnett Creek resource estimate,

for release sometime between mid to late-Q120. We anticipate the new resource at around a total of

2.7Moz to 2.8Moz, up from 2.36Moz Au which includes the current 1.99Moz Beartrack estimate and 380Koz

Arnett Creek (historical) estimate. The updated estimate will incorporate 15,000 metres of new drilling

completed between 2018 and 2019 (including 5,060 metres in 2019 at Arnett Creek and Beartrack) and may

also benefit from improved metallurgical recovery factors as well an updated gold price.

Page 10 of 75

▪ We were encouraged by the 2019 drill program results that demonstrated the continuity of historical oxide

resources at Arnett Creek’s Haidee Target. The contribution from Haidee will help advance a potential heap-

leach production re-start scenario with Beartrack’s current 330Koz (Indicated + Inferred) heap leach

resource. This scenario will likely be examined in an upcoming PEA, providing economics to a critical mass

of heap-leach amenable resources. We believe such economics could be fairly attractive relative to a

comparable greenfields project, given the existing gold ADR production plant at Beartrack and

commensurate up-front capital save.

▪ We note that there could be further oxide, heap-leach amenable resource growth opportunities at Arnett

Creek, given the 2019 geophysics and soil sampling results that will need to be drill tested. For the most part,

production throughout Arnett Creek's multiple known gold occurrences were historically mined at surface, with

virtually no mechanized mining to test deeper mineralization. At Beartrack, Revival will also look to potential

new target sources of mineralization along unexplored areas of the 5km Panther Creek Fault’s strike length. If

successful, total resource upside could well exceed Revival’s current 3.0Moz resource target.

AcuityAds Holdings Inc. (AT-TSX, Speculative Buy, PT $3.80) – Rob Goff

▪ We are maintaining our Top Pick status on AcuityAds with our Speculative Buy rating and PT of $3.80 unchanged.

AT returned a solid 12.3% in Q419 outperforming S&P/TSX Small Cap Index and S&P/TSX Capped IT Index that

generated 3.2% and 6.2%, respectively. We believe that new product releases, management’s focus on margin

improvement and encouraging industry demand will provide further upside to the shares of AT in Q120.

▪ AT strengthened its product portfolio in 2019 by dedicating significant technology budget on new AI

algorithm for its managed services and UI/UX for its self-service platform. We believe that the enhanced

product portfolio in conjunction with AT’s ability to win/manage longer and larger contracts provides

potential upside to our current forecasts. The self-service business offers the potential for aggressive

revenue scaling given its labour efficient roll-out.

▪ In Q319, the EBITDA margin expanded to 5.9% against our estimates at 4.2% for the quarter. On the

comparative basis, the EBITDA margin improved from 4.3% a quarter ago and decreased from the EBITDA

margin of 6.4% a year ago where the y/y decrease was due to increase in technology and development

expenditures. Our 2020 EBITDA margin at 10.3% up from our forecast of 7.0% for 2019 is also consistent

with management’s focus on margins of 10% or better. We believe that consistent margin improvement will

generate substantial value for the investors.

▪ A number of high-profile ad-tech deals (Roku-Dataxu, The Rubicon Project-Telaria, AT&T-Clypd and Tremor

International–Unruly) were announced recently, predominantly in data-driven video advertising space. This

recent wave of consolidation in the industry supports our argument of AT being an attractive candidate for

acquisition where an industry acquirer would look for significant technology savings when they move to AT’s

platform.

▪ Our one/two-year DCF values of $3.85/$4.18 reflect increased baseline growth expectations. We currently use a

17.5% discount rate; we prefer DCF valuations. We see room to lower our discount rate as the Company executes

on its growth plans relative to our forecasts. A 2.0% reduction in our discount rate increases our target DCF by 3.8%.

▪ We note that the shares of The Trade Desk (where estimates for 2019/2020 revenue growth stand at

38.0%/30.5%) are currently valued at 19.7x/15.1x EV/Revenue and 61.99x/48.75x EV/EBITDA for 2019/2020

relative to AT valued at 0.9x/0.8x and 11.7x/7.7x, respectively. AT noted that it had $5.9M of cash on hand

at the end of the quarter Q319 with overall availability of funds at ~$10M considering its line of credit.

Page 11 of 75

Score Media and Gaming Inc. (SCR-TSXV, Speculative Buy, PT $1.10) – Rob Goff

▪ We are maintaining our Top Pick status on SCR for Q120 following a solid return of 24.1% in Q419 and 140%

in 2019 full year.

▪ We believe that growth in the New Jersey’s sports betting market represents a strong wave to showcase

the potential of the SCR’s betting platform given its tight integration with its Sport news App and

differentiated, seamless user experience. NJ’s monthly sports betting handle reached a record high of

US$562.7M in November, up 70% y/y, with almost 86% coming from online bets.

▪ Betting represents a huge market on its own while it is seen as a significant catalyst for user growth and

advertising. SCR’s clear focus and early mover strategy support aggressive prospects across all drivers. We

recognize the potential for betting to recalibrate Score’s user growth and revenues. As we have noted, SCR’s

focus on mobile users and its heavy in-game usage (~70%) provide direct leverage to monetize on sports

betting.

▪ SCR’s esports channel on YouTube is highly appreciated by the viewers and has been able to garner more

than 1M subscribers from merely 30K in 2018. We look for SCR to monetize on its social media success in

2020 as it has achieved a critical scale on YouTube in particular but also Facebook (FB-Nasdaq, NR) and

Instagram. While the focus is on gambling, we see the potential for SCR’s esports channels on YouTube to

gain further traction and monetization through sponsorships and product placement in 2020.

▪ Our DCF applies a discount rate of 9.0% and terminal valuation of 22x F2024 EBITDA to derive our $1.10

one-year target DCF valuation. With stronger momentum, we have room to consider a lower discount rate.

Page 12 of 75

Non-Returning Names

Acasti Pharma (ACST-TSXV, Speculative Buy, PT $2.00) – Doug Loe

▪ We originally identified Acasti Pharma as a top pick for Q120 just as we had in Q419, based on our original

expectations for positive data from the firm’s Phase III hypertriglyceridemia program and specifically for the

firm’s 245-patient TRILOGY-1 trial testing its flagship phospholipid ester omega-3 formulation CaPre that

has formally reported top-line serum triglyceride-lowering data in recent days. Those data were not

positive, however nuanced our interpretation of data happened to be, and we described that nuance in our

January 13 research comment.

▪ We stand by our view that those nuances matter – CaPre itself hit our expectations on magnitude of average

serum triglyceride-lowering, and there are still multiple serum biomarkers for which we anticipate

laboratory data in coming weeks that could be separately relevant to CaPre’s pharmacology and to its future

FDA review. Moreover, a separate similarly designed Phase III hypertriglyceridemia trial (appropriately

named TRILOGY-2) should generate top-line serum triglyceride-lowering data before end-of-quarter, and

these data could be as impactful on ACST share value as TRILOGY-1 data already have been.

▪ Our sustained Speculative BUY rating holds firm on a positive view on how pending data could impact

CaPre’s prospects. CaPre certainly has unique formulation characteristics as compared to other approved

therapies in the omega-3 pharmacopeia, but it isn’t that unique as to make TRILOGY-1 data easily reconciled

with expectations, and the drug’s own Phase II/III clinical history and that of other similar omega-3 forms

still reveals approvable characteristics, at least to us.

▪ But the reality is that TRILOGY-1 did not meet expectations, regardless of reason, and we are adopting a

more cautious near-term perspective on ACST share price performance until new clinical evidence emerges

from TRILOGY-1 & TRILOGY-2. There is clearly greater clinical risk to both trials than we originally

conceptualized in our Q120 Top Picks note on the firm, and we have revised our Q120 healthcare Top Picks

portfolio as a consequence.

▪ Thus after conducting comparative analysis of our coverage universe, we believe that two other attractive

drug developers with Q120 specific clinical milestones on the horizon (still Antibe Therapeutics with data

from a Phase II knee osteoarthritis trial, and now IMV with updated interim data from a Phase II recurrent

ovarian cancer trial) provide investors with distinct opportunities for event-driven value creation during the

current quarter.

kneat.com, Inc. (KSI-TSX, Speculative Buy, PT $3.00) – Gianluca Tucci

▪ KSI shares rose 103% during Q419 (and 138% since we first declared the Company as one of our Top Picks

in October 2018, and recently hit a 52-week intraday high of $3.17/shr). With the impressive run up in shares

during that time on continued Tier 1 customer announcements and scaling, and in light of our $3.00 PT, we

are replacing KSI with PTG as our Top Pick for Q120, looking for greater beta and alpha generation out of

the PTG shares along with a higher probability of rerating in the context of the current market. PTG has a

host of potential revaluation catalysts (discussed elsewhere in the report) during 2020. That said, we remain

very positive on KSI shares longer term and highlight upcoming potential share price catalysts, including

continued customer wins and scaling, and resulting revenue generation.

Page 13 of 75

Alithya Group Inc. (ALYA-TSX, ALYA-NASDAQ, Buy, PT $5.50) – Amr Ezzat

▪ Alithya Group Inc. recent results reflect disappointing sales in Canada on continued project delays. The silver

lining has been the Company’s impressive margin performance which saw EBITDA higher sequentially last

quarter despite a 6.7% sequential drop in sales (seasonality and the aforementioned project delays).

▪ We recently adjusting our forecasts to take into account the continued slippage in the start of certain

projects, as well as a more tamed growth outlook in Canada.

▪ While the continued flattish top line in Canada is disappointing, we remain fans of the Company’s ability to

high-grade its business and deliver strong margins but we (admittedly) recognize that it will take a couple

of quarters of solid growth before we see a significant upswing in the shares.

InterRent REIT (IIP.un-TSX, Buy, PT $18.00) – Frederic Blondeau and Stephan Boire

▪ Entering in the new year, we made the decision to bring changes to our real estate top pick selection,

introducing large capitalization GRT and mid capitalization ERE as our new favorite names.

▪ InterRent REIT, our Top Pick since we joined the firm and we published our initiation note in November

2017, remains our favourite Apartment REIT. The reason for the change is purely based on valuation. IIP

currently trades at a 19.2% premium to our FTM NAV, and at 28.4x our 2020E FFO/unit. Our long-term thesis

on IIP remains intact.

Page 14 of 75

7 January 2020

Healthcare & Biotechnology

Douglas Loe, PhD MBA | 416.775.1004 | dloe@echelonpartners.com

Siew Ching Yeo | 416.479.8995 | scyeo@echelonpartners.com

Event: We are maintaining our Top Pick status for ON-based drug developer Antibe Therapeutics.

ATE shares performed well in anticipation of pending Phase II knee osteoarthritis pain data for flagship naproxen analog drug ATB-346: During the relevant Q419 period to which our Top Pick status applied, ATE generated total return of 15.4% that we believe reflects favourably on investor optimism for how well the firm’s lead hydrogen sulfide-releasing naproxen analog drug ATB-346 could perform in ongoing Phase II knee osteoarthritis pain testing. For comparison, ATE was also one of our Top Picks during the Q319 financial period, during which the stock also performed well (and presumably on the same Phase II data expectations) by returning 21.9% during that period.

A bit of timeline slippage to Phase II data, but rigors of patient inclusion criteria and ambitious logistics seem to be the likely culprit and not any limitations in ‘346 itself: Our own investment thesis continues to reflect similarly on ATB-346’s medical prospects in pain markets where Bayer’s (BAYN-DE, NR) branded naproxen formulation Aleve continues to generate reasonably strong, if declining, annual sales data (€351M in F2018), though with some recent slippage on patent expiration dynamics. That said, we are moderately disappointed in extended timelines to data for this 360-patient multi-arm trial (two week changes in WOMAC-quantified pain intensity in comparison to baseline and to placebo with ATB-346 daily doses ranging from 150 mg-to-250 mg) that were originally expected by us to be available by end-of-Q319. We reflected on timelines to data in our recent November 28th note.

Our revised projections now assume that patient enrollment will resume imminently (if not already) and that data could be available near end-of-Q120, probably by Mar/20 if final patients are enrolled near end-of-Jan/20 and data lock transpired during Feb/20, both of which seem reasonable to us. Final safety data will be equally important for supporting future ATB-346 clinical testing, and data read-out on this theme could be available later in Q220 (treatment-related adverse events will be tracked over three weeks, and so a bit beyond timeframe over which primary efficacy will be assessed on pain mitigation).

Demonstration of naproxen-like pain relief without naproxen-like side effects is a seminal Phase II expectation embedded into our model: As we have stated before, Antibe has strong Phase I/II evidence from a 244-patient GI ulcer frequency/severity study that showed ATB-346-treated patients (at 250-mg daily dosing, at the top-end of the range being tested in the aforementioned knee osteoarthritis pain trial) experienced dramatically reduced GI ulceration rate as compared to naproxen-treated patients (at its indicated dose of 550-mg twice-daily).

The gap in GI ulceration rate of 42.1% for naproxen-treated patients vs 2.5% for ATB-346-treated patients at two weeks was unambiguously positive for ‘346, and though we did have clear evidence from a 12-patient Phase II open-label knee osteoarthritis pain trial that ‘346 also confers naproxen-like pain relief at this much lower dosage strength, it was clear then as now that Antibe required much more statistically rigorous pain data to engender confidence in the drug’s ability to simultaneously confer naproxen-like pain relief without naproxen-like side effects. Hence our focus on the 360-patient Phase II pain study nearing completion.

Antibe Therapeutics

Maintaining Top Pick Status For Innovative Pain Therapy Dev-eloper. Data From Key Phase II Trial Expected By Quarter-End

ATE-TSXV: $0.46

Speculative Buy $1.40 Target

Projected Return: 204%

Valuation: NPV, 20x EPS, 12.5x

EV/EBITDA (F2025 est, 40% disc)

Page 15 of 75

Antibe Therapeutics (ATE-TSXV) | 7 January 2020

Douglas Loe, PhD MBA | 416.775.1004 | dloe@echelonpartners.com

Exhibit 1 – Income Statement & Financial Forecast Data for Antibe

Source: Historical data - Company filings, forecasts/estimates - Echelon Wealth Partners

Citagenix remains as the firm’s sole revenue generating division: We uphold our continuing view that Citagenix might eventually be of lesser strategic importance to the firm should final Phase II data demonstrate ATB-346’s clinical potential. For now, our valuation ascribes modest value to Antibe’s sole revenue generating dental/ regenerative medicine division Citagenix. As we’ve described in our aforementioned note, we calculate Citagenix to have an implied equity value of $3.17M with a perspective that the business could in time generate value from potential acquirers at 0.7x-1.0x annual revenue. In the interim, we remain optimistic that Citagenix could maintain sustained revenue growth, and with improvements to gross margin and operating expenses placing the firm on the path to profitability in this new year. We suspect that the firm could see suitable acquirers for this business before any upside on ATB-346 economics are identified, thus providing another form of cash inflow to the firm over time.

Exhibit 2 – Valuation Scenarios for Antibe

Source: Forecasts/estimates - Echelon Wealth Partners

Summary and valuation: On our ATE valuation, we maintain our Speculative BUY rating and one-year PT of $1.40, based on our NPV (40% discount) and multiples of our 2025 EPS and EBITDA. Our share-based forecasts assume a notional fd S/O of 365.9M (the firm exited the quarter with 274.2M common shares outstanding, and 355.9M fd shares outstanding) while our EV incorporates cash of $9.6M (consisting of FQ220 cash of $8.3M and $1.3M generated from warrants exercised post quarter) as well as total debt of $2.1M. We do not see any present financial risk to the firm’s clinical activities despite the extension on timelines to data, nor on the commencement of pre-Phase III activities in the quarters proceeding this timeline. We also note that our valuation continues to be squared solely on ATB-346 and not

(C$000, except EPS) 2019A 2020E 2021E 2022E 2023E 2024E 2025E 2026E 2027E 2028E

Product Sales, Citagenix 9,539 10,016 10,517 11,043 11,595 12,174 12,783 13,422 14,093 14,798

Royalty revenue, ATB-346 0 0 0 0 0 70,895 172,879 249,816 303,713 355,780

Total revenue $9,539 $10,016 $10,517 $11,043 $11,595 $83,070 $185,662 $263,238 $317,806 $370,578

Revenue growth (%) 12% 5% 5% 5% 5% 616% 124% 42% 21% 17%

EBITDA ($8,786) ($8,505) ($5,445) ($4,709) ($2,319) $66,270 $165,407 $240,888 $294,283 $346,426

EBITDA growth (%) 57% (3%) (36%) (14%) (51%) (2958%) 150% 46% 22% 18%

EBITDA margin (%) (92%) (85%) (52%) (43%) (20%) 80% 89% 92% 93% 93%

Non-operating expenses $3,928 $1,557 $1,557 $1,557 $1,557 $1,557 $1,557 $1,557 $1,557 $1,557

Net interest expense (income) $525 $427 $427 $427 $427 $427 $427 $427 $427 $427

Net income, fully-taxed ($12,816) ($10,037) ($6,977) ($6,241) ($3,851) $45,316 $114,712 $167,549 $204,925 $241,425

Fully-taxed EPS (basic) ($0.06) ($0.04) ($0.02) ($0.02) ($0.01) $0.16 $0.40 $0.59 $0.72 $0.85

Fully-taxed EPS (fd) ($0.05) ($0.03) ($0.02) ($0.02) ($0.01) $0.12 $0.31 $0.46 $0.56 $0.66

P/E (basic) NA NA NA NA NA 2.9x 1.1x 0.8x 0.6x 0.5x

EV/EBITDA NA NA NA NA NA 1.9x 0.8x 0.5x 0.4x 0.4x

S/O, basic (M) 220.0 274.2 284.2 284.2 284.2 284.2 284.2 284.2 284.2 284.2

S/O, fd (M) 259.8 355.9 365.9 365.9 365.9 365.9 365.9 365.9 365.9 365.9

NPV, discount rate 20% 30% 40% 50% 60% 70%

Implied value per share $3.52 $2.05 $1.37 $0.76 $0.47 $0.30

Price/earnings multiple, F2025 10x 15x 20x 25x 30x 35x

Implied share price1 $0.82 $1.22 $1.63 $2.04 $2.45 $2.86

EV/EBITDA multiple, F2025 5x 10x 12.5x 15x 17.5x 20x

Implied share price1,2 $0.58 $1.17 $1.47 $1.76 $2.05 $2.35

One-year Antibe target price (C$) 1 $1.49

1 Based on F2025 fd fully-taxed EPS of $0.31; EBITDA of $165.6M, discounted at 40%, FD S/O of

355.9M, but with notional fd S/O of 365.9M embedded in our model2 EV incorporates proforma cash of $9.6M (consisting of FQ220 cash of $8.3M and post quarter

exercise of 5.7M warrants for total proceeds of $1.3M) and total debt of $2.1M

Page 16 of 75

Antibe Therapeutics (ATE-TSXV) | 7 January 2020

Douglas Loe, PhD MBA | 416.775.1004 | dloe@echelonpartners.com

on Antibe’s pipeline of preclinical-stage hydrogen sulfide-releasing analogs that the firm is developing in the background, including post-surgical pain-targeted ketoprofen analog ATB-352 and stroke prevention-targeted acetylsalicylic acid analog ATB-340, though we expect to revisit our valuation assumptions for these pipeline candidates if/when formal clinical testing commences.

TEARSHEET - Antibe Therapeutics (ATE-V, $0.46, SPEC BUY, PT: $1.40)

Consensus Return

Rating: Buy

Target: $1.40 204.3%

Median: $1.40 204.3%

High: $1.40 204.3%

Low: $1.40 204.3%

# Est: 1

Consensus Distribution

Sector Outperform/Buy 1

Sector Perform/Hold 0

Sector UnderPerform/Sell 0

Financial Summary/Key Metrics 2018A 2019A 2020E 2021E 2022E 2023E 2024E

C$000s except per share data Key Statistics Value

Product sales, Citagenix 8,510 9,539 10,016 10,517 11,043 11,595 12,174 52-Wk High: $0.54 117.4%

Royalty revenue, ATB-346 0 0 0 0 0 0 70,895 52-Wk Low: $0.24 51.1%

Total product revenue 8,510 9,539 10,016 10,517 11,043 11,595 83,070 Avg Vol (3-Mo) 0.39

Growth (%) 12.1% 5.0% 5.0% 5.0% 5.0% 5.0% Shares O/S: 281.1

Cons. 9.5 10.0 10.3 11.0 11.6 83.1 185.7 Market Cap: 126.1

Cons. 3 Mts. Ago 9.5 10.0 10.3 11.0 11.6 83.1 185.7 Adj. Proforma Cash ($M): 9.6

EBITDA ($5,594) ($8,786) ($8,505) ($5,445) ($4,709) ($2,319) $66,270 Ent. Value ($M): 118.6

Margin NA NA NA NA NA NA 79.8% Div Yield: 0.0%

Cons. (8.8) (8.5) (5.4) (4.7) (2.3) 66.3 165.4 Website: http://www.antibethera.com

Cons. 3 Mts Ago (8.8) (8.5) (5.4) (4.7) (2.3) 66.3 165.4 FYE: Mar 31

Net income, fully-taxed (7,430) (12,816) (10,037) (6,977) (6,241) (3,851) $45,316 Employees: N/A

EPS ( fully taxed) ($0.03) ($0.05) ($0.03) ($0.02) ($0.02) ($0.01) $0.12

Cons. ($0.06) ($0.05) ($0.03) ($0.03) ($0.01) $0.12 $0.31

Cons. 3 Mts. Ago ($0.06) ($0.04) ($0.03) ($0.03) ($0.01) $0.15 $0.37

P/E NA NA NA NA NA NA 2.9x

EV/EBITDA NA NA NA NA NA NA 1.9x

Valuation Top Institutional Ownership M Shares % Held

NPV 30% 40% 50% AlphaNorth Asset Management 0.0810 0.0%

Implied value/share1 $2.05 $1.37 $0.76

Price/earnings multiple, F2025 15.0x 20.0x 25.0x

Implied value/share1 $1.22 $1.63 $2.04

EV/EBITDA multiple, F2025 10.0x 12.5x 15.0x

Implied value/share1 $1.17 $1.47 $1.76 AlphaNorth Asset Management 0.0810 0.0%One Year Antibe Therapeutics Target Price $1.40

Comparables and Peer Analysis

Trading Current Target Dividend Market Ent.

Ticker CCY Price Price Yield % Return Cap Value 1-Week 1-Month 3-Month 1-Year T12M 2018E 2019E T12M 2018E 2019E

Antibe Therapeutics, Inc. ATE-CA CAD $0.46 $1.40 0.0% 204.3% 126.1 118.6 2.2% 8.2% 17.9% 41.5% (15.0) (8.8) (8.5) NA ($0.06) ($0.05)

Anika Therapeutics, Inc. ANIK-US USD $54.06 $52.50 0.0% (2.9%) 771.4 627.3 4.3% (5.9%) (4.9%) 55.8% 46.3 40.3 47.8 ($0.07) $1.27 $2.04

Camurus AB CAMX-SE SEK SEK 85.50 SEK 128.20 0.0% 49.9% 4,420.1 3,940.7 1.3% 2.9% 0.8% 53.5% (367.7) (287.0) (304.9) $2.19 ($5.68) ($5.42)

Collegium Pharmaceutical, Inc. COLL-US USD $20.31 $27.29 0.0% 34.3% 680.9 548.0 (1.3%) (3.6%) 71.7% 34.9% 17.1 (27.7) 0.8 ($6.71) ($0.86) ($0.01)

Assertio Therapeutics, Inc. ASRT-US USD $1.08 $3.25 0.0% 200.9% 87.1 397.4 (13.6%) 51.5% (18.8%) (74.4%) 88.3 155.3 0.0 ($0.34) $1.22 $0.86

DURECT Corporation DRRX-US USD $2.85 $4.20 0.0% 47.4% 548.2 518.2 (25.0%) 45.4% 54.1% 402.3% (21.8) 0.0 0.0 ($0.77) ($0.16) ($0.11)

Nicox SA COX-FR EUR € 4.46 € 14.50 0.0% 225.1% 148.9 124.4 2.9% 15.6% (10.0%) (34.2%) (17.7) (17.8) (8.7) ($0.14) ($0.66) ($0.36)

Novan, Inc. NOVN-US USD $0.82 $1.00 0.0% 22.0% 21.9 6.7 (74.1%) (61.9%) (67.5%) (22.6%) (25.4) (27.0) (32.1) ($0.39) ($0.49) ($1.55)

Vertex Pharmaceuticals Incorporated VRTX-US USD $224.03 $237.09 0.0% 5.8% 57,609.3 55,000.6 2.3% 0.3% 30.2% 27.4% 873.7 1,143.7 1,421.4 ($1.01) $4.08 $4.82

Ampio Pharmaceuticals, Inc. AMPE-US USD $0.69 $4.00 0.0% 483.2% 108.8 91.0 17.7% 63.3% 45.8% 47.2% (12.7) 0.0 0.0 $8.40 NA ($0.13)

Nektar Therapeutics NKTR-US USD $21.00 $32.54 0.0% 54.9% 3,694.4 2,663.9 (2.7%) 2.7% 12.5% (42.7%) (418.0) 698.8 (439.0) ($0.09) $3.78 ($2.55)

Average 0.0% 120.5% (11.2%) 5.8% 12.0% 44.4%

Comparables - Multiples Analysis

T12M 2018E 2019E T12 2018E 2019E T12M 2018E 2019E 2018E 2019E 2020E T12M 2018E 2019E T12M 2017E 2018E

Antibe Therapeutics, Inc. (7.7%) 0.0% 0.0% -7.9x NA NA NA NA NA 11.9x 11.4x 11.1x NA NA NA 13.9x NA NA

Anika Therapeutics, Inc. 4.1% 3.8% 4.6% 13.5x 15.6x 13.1x 13.5x 15.6x 13.1x 5.9x 5.6x 4.9x NA 42.6x 26.5x 2.7x 3.1x NA

Camurus AB (9.3%) (6.5%) (6.9%) -10.7x -13.7x -12.9x NA NA NA 79.9x 23.6x 6.6x NA NA NA 9.8x 9.1x NA

Collegium Pharmaceutical, Inc. 12.3% 24.1% 0.0% 32.1x -19.8x 685.6x NA NA NA 2.0x 1.9x 1.7x NA NA NA 8.1x NA NA

Assertio Therapeutics, Inc. 62.1% 0.0% 0.0% 4.5x 2.6x NA 4.5x 2.6x NA 1.5x 2.3x 2.4x NA 0.9x 1.3x 0.3x 0.5x 14.6x

DURECT Corporation 0.0% 0.0% 0.0% -23.8x NA NA NA NA NA 27.9x 17.9x 17.9x NA NA NA 24.9x NA NA

Nicox SA (15.1%) 0.0% 0.0% -7.0x -7.0x -14.3x NA NA NA 30.9x 14.6x 8.8x NA NA NA 1.2x 1.0x 0.2x

Novan, Inc. (22.9%) 0.0% 0.0% -0.3x NA NA NA NA NA 1.1x 1.5x 1.7x NA NA NA -0.8x NA NA

Vertex Pharmaceuticals Incorporated 3.1% 2.6% (0.6%) 62.9x 48.1x 38.7x NA NA 38.7x 18.1x 14.6x 11.4x NA 54.9x 46.5x 11.0x 27.1x NA

Ampio Pharmaceuticals, Inc. (18.3%) 0.0% 0.0% -7.2x NA NA NA NA NA 0.0x 0.0x 0.0x 0.1x NA NA 23.6x NA NA

Nektar Therapeutics (11.0%) 16.8% (10.2%) -6.4x 3.8x -6.1x NA 3.8x NA 2.2x 24.6x 16.2x NA 5.6x NA 2.5x 37.5x 12.8x

Average 4.5x 4.2x 117.4x 9.0x 7.3x 25.9x 16.5x 10.7x 7.5x NA NA NA 8.8x 13.0x 9.2x1 Targets, forecasts and valuations reflect consensus estimates derived from FactSet

EBITDA EPS

FCF Yield Current - EV/EBITDA Target - EV/EBITDA EV/REV P/E P/BV

Company Description

Antibe is a clinical stage drug developer, whose lead clinical asset is gastro-

protective hydrogen sulfide-releasing analog of naproxen called ATB-346, for

which positive Phase I/II pain and GI ulceration rate data are already available &

future Phase II/III testing is being contemplated, with knee osteoarthritis as the

initial focus market.

Historical ValuationsLTM P/BV

% Return Consensus Valuations

1 Based on F2025 fd fully-taxed EPS of $0.31; EBITDA of $165.6M, discounted at 40%, FD S/O of 355.9M, but with notional fd

S/O of 365.9M embedded in our model2 EV incorporates proforma cash of $9.6M (consisting of FQ220 cash of $8.3M and post quarter exercise of 5.7M warrants for

total proceeds of $1.3M) and total debt of $2.1M

0

5

10

15

20

$0.00

$0.10

$0.20

$0.30

$0.40

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$0.70

Feb

-17

Ap

r-1

7

Jun

-17

Au

g-1

7

Oct

-17

De

c-17

Feb

-18

Ap

r-1

8

Jun

-18

Au

g-1

8

Oct

-18

De

c-18

Feb

-19

Ap

r-1

9

Jun

-19

Au

g-1

9

Oct

-19

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c-19

Vo

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e (M

Share

s)

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)

Price 50-day MA 200-day MA

0.0x

10.0x

20.0x

30.0x

Au

g-1

9

Au

g-1

9

Sep

-19

Sep

-19

Sep

-19

Sep

-19

Oct

-19

Oct

-19

Oct

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No

v-1

9

No

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c-19

De

c-19

De

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c-19

Jan

-20

Antibe Assertio

Page 17 of 75

Antibe Therapeutics (ATE-TSXV) | 7 January 2020

Douglas Loe, PhD MBA | 416.775.1004 | dloe@echelonpartners.com

Important Information and Legal Disclaimers

Echelon Wealth Partners Inc. is a member of IIROC and CIPF. The documents on this website have been prepared for the viewer only as an example of strategy consistent with our recommendations; it is not an offer to buy or sell or a solicitation of an offer to buy or sell any security or instrument or to participate in any particular investing strategy. Any opinions or recommendations expressed herein do not necessarily reflect those of Echelon Wealth Partners Inc. Echelon Wealth Partners Inc. cannot accept any trading instructions via e-mail as the timely receipt of e-mail messages, or their integrity over the Internet, cannot be guaranteed. Dividend yields change as stock prices change, and companies may change or cancel dividend payments in the future. All securities involve varying amounts of risk, and their values will fluctuate, and the fluctuation of foreign currency exchange rates will also impact your investment returns if measured in Canadian Dollars. Past performance does not guarantee future returns, investments may increase or decrease in value and you may lose money. Data from various sources were used in the preparation of these documents; the information is believed but in no way warranted to be reliable, accurate and appropriate. Echelon Wealth Partners Inc. employees may buy and sell shares of the companies that are recommended for their own accounts and for the accounts of other clients.

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U.K. Disclosures: This research report was prepared by Echelon Wealth Partners Inc., a member of the Investment Industry Regulatory Organization of Canada and the Canadian Investor Protection Fund. ECHELON WEALTH PARTNERS INC. IS NOT SUBJECT TO U.K. RULES WITH REGARD TO THE PREPARATION OF RESEARCH REPORTS AND THE INDEPENDENCE OF ANALYSTS. The contents hereof are intended solely for the use of, and may only be issued or passed onto persons described in part VI of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2001. This report does not constitute an offer to sell or the solicitation of an offer to buy any of the securities discussed herein.

Copyright: This report may not be reproduced in whole or in part, or further distributed or published or referred to in any manner whatsoever, nor may the information, opinions or conclusions contained in it be referred to without in each case the prior express written consent of Echelon Wealth Partners

ANALYST CERTIFICATION

Company: Antibe Therapeutics | ATE:TSXV I, Douglas Loe, hereby certify that the views expressed in this report accurately reflect my personal views about the subject securities or issuers. I also certify that I have not, am not, and will not receive, directly or indirectly, compensation in exchange for expressing the specific recommendations or views in this report. IMPORTANT DISCLOSURES

Is this an issuer related or industry related publication? Issuer

Does the Analyst or any member of the Analyst’s household have a financial interest in the securities of the subject issuer? If Yes: 1) Is it a long or short position? Long Position; and, 2) What type of security is it? Common Shares & Share Purchase Warrants.

Yes

The name of any partner, director, officer, employee or agent of the Dealer Member who is an officer, director or employee of the issuer, or who serves in any advisory capacity to the issuer

No

Does Echelon Wealth Partners Inc. or the Analyst have any actual material conflicts of interest with the issuer? No

Does Echelon Wealth Partners Inc. and/or one or more entities affiliated with Echelon Wealth Partners Inc. beneficially own common shares (or any other class of common equity securities) of this issuer which constitutes more than 1% of the presently issued and outstanding shares of the issuer?

Yes

During the last 12 months, has Echelon Wealth Partners Inc. provided financial advice to and/or, either on its own or as a syndicate member, participated in a public offering, or private placement of securities of this issuer?

Yes

During the last 12 months, has Echelon Wealth Partners Inc. received compensation for having provided investment banking or related services to this Issuer? Yes

Has the Analyst had an onsite visit with the Issuer within the last 12 months? No

Has the Analyst or any Partner, Director or Officer been compensated for travel expenses incurred as a result of an onsite visit with the Issuer within the last 12 months? No

Has the Analyst received any compensation from the subject company in the past 12 months? No

Is Echelon Wealth Partners Inc. a market maker in the issuer’s securities at the date of this report? No

Page 18 of 75

Antibe Therapeutics (ATE-TSXV) | 7 January 2020

Douglas Loe, PhD MBA | 416.775.1004 | dloe@echelonpartners.com

RATING DEFINITIONS

Buy The security represents attractive relative value and is expected to appreciate significantly from the current price over the next 12 month time horizon.

Speculative Buy The security is considered a BUY but in the analyst’s opinion possesses certain operational and/or financial risks that are higher than average.

Hold The security represents fair value and no material appreciation is expected over the next 12-18 month time horizon.

Sell The security represents poor value and is expected to depreciate over the next 12 month time horizon.

Under Review While not a rating, this designates the existing rating and/or forecasts are subject to specific review usually due to a material event or share price move.

Tender Echelon Wealth Partners recommends that investors tender to an existing public offer for the securities in the absence of a superior competing offer.

-Dropped Coverage

Applies to former coverage names where a current analyst has dropped coverage. Echelon Wealth Partners will provide notice to investors whenever coverage of an issuer is dropped.

RATINGS DISTRIBUTION

Recommendation Hierarchy Buy Speculative Buy Hold Sell Under Review Restricted Tender

Number of recommendations 50 42 18 1 7 0 4

% of Total (excluding Restricted) 42% 36% 15% 1% 6%

Number of investment banking relationships 14 19 5 0 2 0 0

% of Total (excluding Restricted) 35% 48% 13% 0% 5%

PRICE CHART, RATING & PRICE TARGET HISTORY

Date Target (C$) Rating

19 Apr 2018 $1.40 Spec Buy

Coverage Initiated: Apr 19, 2018

Data sourced from: FactSet

$0.00

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$0.80

$1.00

$1.20

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$1.60

Feb 17 May 17 Aug 17 Nov 17 Feb 18 May 18 Aug 18 Nov 18 Feb 19 May 19 Aug 19 Nov 19

Antibe Therapeutics, Inc. (TSXV:ATE)

Price PT

Page 19 of 75

Douglas Loe, PhD MBA | 416.775.1004 | dloe@echelonpartners.com

Siew Ching Yeo | 416.479.8995 | scyeo@echelonpartners.com

15 January 2020

Healthcare & Biotechnology

Event: We are anointing NS-based immune therapy developer IMV as one of our Top Picks for Q120, with our PT of $12.25 corresponding to a one-year return of 181%. The firm’s flagship lipid-based water-free injectable DepoVax-based cancer immune therapy DPX-Survivac is well-advanced in multiple Phase I/II oncology studies for which cumulative interim data have been positive if not yet definitive, and we anticipate several clinical updates from these programs in coming months. Our valuation is now as before based on NPV and multiples of our F2024 EBITDA/EPS forecasts, discounted at 25%.

For perspective, we have ascribed Top Pick status to IMV before, in the FQ417-to-FQ119 period specifically, during which IMV shares cumulatively returned 52%, and we believe that recent market focus on acquisition-based value creation within IMV’s clinical-stage oncology drug development universe (specific transactions are of course Merck’s [MRK-NY, NR] take-out of MA-based tyrosine kinase inhibitor developer Arqule [ARQL-Q, NR] for US$2.7B, and Sanofi’s [SAN-EU, NR] comparably-valued take-out of interleukin-2 developer Synthorx [THOR-Q, NR] for US$2.5B, to name two that transpired near end-of-FQ419) can drive imminent interest in IMV’s pipeline as well. IMV’s market profile has been comparatively modest in recent months despite substantial clinical activity in the background, and we believe that capital markets momentum could shift in coming months based on updates from well-advanced Phase II DPX-Survivac-focused oncology trials, specifically the Phase II recurrent ovarian cancer (DeCidE1) trial described below.

Clinical milestones focused on DPX-Survivac could drive value in the near-term, specifically in ovarian cancer where interim DeCidE1 data are expected before quarter-end: On the milestone watch, the firm just recently provided an update from its 25-patient Phase II diffuse large B-cell lymphoma (SPiReL) trial at the 2019 American Society of Hematology meeting, testing DPX-Survivac with Merck’s anti-PD1 mAb checkpoint inhibitor Keytruda, with seven of nine evaluable subjects engendering some magnitude of clinical benefit (three complete responses, two partial responses, two with stable disease) at interim analysis and we see these data as encouraging for DPX-Survivac’s prospects in this indication (see our Dec/19 note). The next SPiReL update is expected during FH120, and perhaps as early as FQ120 during which our Top Pick designation applies.

On other milestones, we are still closely monitoring DPX-Survivac performance as a monotherapy (so no other co-administered checkpoint inhibitors even though the trial originally incorporated Incyte’s clinical-stage IDO1 inhibitor epacadostat) in the ongoing 85-patient Phase II recurrent ovarian cancer (DeCidE1) trial, for which a few updates have been shared since the trial commenced in Q216 and for which the most recent update in mid-FQ419 nicely showed correlation of tumor regression and durability of response to infiltration of survivin-targeted T-cells, consistent with DPX-Survivac’s underlying medical rationale (see our Nov/19 note). We expect a follow-up DeCidE1 interim analysis to transpire during FQ120 and to be as positive as prior updates have been.

Preliminary results from the firm’s 184-patient Phase II solid tumor trial (the so-called Basket trial) are also expected by us during H120 though probably not until Q220; the trial is focused on testing DPX-Survivac (again, combined with Keytruda as in the SPiReL trial) in multiple survivin-expressing solid tumors (interestingly including ovarian cancer, for which DPX-Sur-

IMV-TSX: $4.36

Speculative Buy $12.25 Target

IMV Inc.

Attractive Immune Therapy Developer with Multiple Clinical Inflection Points in F2020 is a Q120 Top Pick

Projected Return: 181%

Valuation: NPV, 20x EPS, 12.5x

EV/EBITDA (25% disc rate, F2024

forecasts)

IMV-TSX: $4.36

Speculative Buy

$12.25 Target

Page 20 of 75 Douglas Loe, PhD MBA | 416.775.1004 | dloe@echelonpartners.com

IMV (IMV-TSX) | 15 January 2020

vivac monotherapy is being tested in the DeCidE1 trial as indicated above) and early encouraging interim data from 19 evaluable subjects were already presented back in Q319, as we described in our Sep/19 note. As we described in that note, IMV again reported tight correlation between tumor response and tumor infiltration with survivin-targeted T-cells, if only from a limited data set so far, and we will be interested to see if there is any indication-specific activity (in bladder, liver, ovarian, lung or microsatellite instability-high cancers) that would justify advancing into future single-indication Phase II DPX-Survivac testing.

Exhibit 1 – Income Statement & Financial Forecast Data for IMV

Source: Historicals – company information, forecasts/estimates - Echelon Wealth Partners

DPX-Survivac still drives our IMV valuation but abundant DepoVax-based formulations are already in development, with antigen-specific immune responses uniformly reported or implied by recent updates: Though IMV’s own pipeline commentary has been focused on DPX-Survivac in recent months, we remain positive about the medical prospects for the firm’s DepoVax platform in other indications, including in RSV lung infection with DPX-RSV (positive SH antigen-specific immune response data generated back in Q316) and in multiple other formulations being developed with collaborators (HPV-targeted DPX-E7 with Dana Farber Cancer Institute [eleven patients treated in a 44-patient Phase II HPV-positive cancer trial as of Nov/19], DPX-NEO with the University of Connecticut, bladder cancer-targeted DPX-SurMAGE with University of Laval, to name three).

We do not have any specific timeline expectations for these pipeline assets, other than for DPX-SurMAGE testing to commence in bladder cancer within the next quarter or two, but DPX-NEO is particularly attractive to us because of the antigen-specific immune responses that IMV/University of Connecticut collaborators have already generated and for the potential for neoepitope-based cancer therapies to become increasingly attractive within the cancer pharmacopeia in future years (a 15-patient Phase I trial is ongoing [started in Q119] from which interim immune data could be available by end-of-2020). DPX formulations targeting malaria and animal health markets are advancing in partnership with Leidos (LDOS-NY, NR) and Zoetis (ZTS-NY, NR) respectively, and while we see these advances as positive for DepoVax’s broad-spectrum immune-stimulation activity, neither is as yet embedded into our valuation in model.

Year-end December 31

(C$000, except EPS) 2018A 2019E 2020E 2021E 2022E 2023E 2024E 2025E 2026E 2027E 2028E

Licensing and milestone

payments

0 0 0 0 0 0 0 0 0 0 0

Revenue - DPX-Survivac royalties 0 0 0 0 0 12,920 63,990 133,477 187,807 228,498 281,965

Revenue - DPX-RSV royalties 0 0 0 0 0 0 34,539 70,460 107,804 146,614 186,933

Other revenue

(partnership/milestone)

483 500 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000

Total revenue $483 $500 $5,000 $5,000 $5,000 $17,920 $103,529 $208,937 $300,612 $380,111 $473,897

Revenue growth (%) NA NA NA NA NA 258% 478% 102% 44% 26% 25%

Operational expenses 19,526 24,105 24,302 19,462 19,674 18,924 17,553 16,313 15,192 14,179 13,261

EBITDA ($19,043) ($23,605) ($19,302) ($14,462) ($14,674) ($1,004) $85,977 $192,624 $285,419 $365,933 $460,636

EBITDA growth (%) NA NA NA NA NA NA NA 124% 48% 28% 26%

EBITDA margin (%) NA NA NA NA NA NA 83.0% 92.2% 94.9% 96.3% 97.2%

Non-operating expenses $1,507 $1,075 $1,075 $1,075 $1,075 $1,075 $1,075 $1,075 $1,075 $1,075 $1,075

Net interest expense (income) $1,385 $815 $815 $815 $815 $815 $815 $815 $815 $815 $815

Net income, fully-taxed ($21,935) ($25,495) ($21,192) ($16,352) ($16,564) ($2,894) $67,269 $152,587 $226,823 $291,234 $366,997

Fully-taxed EPS (basic) ($0.49) ($0.50) ($0.42) ($0.32) ($0.33) ($0.06) $1.33 $3.02 $4.48 $5.76 $7.25

Fully-taxed EPS (fd) ($0.47) ($0.48) ($0.40) ($0.31) ($0.31) ($0.06) $1.28 $2.90 $4.31 $5.54 $6.98

P/E (basic) NA NA NA NA NA NA 3.3x 1.4x 1.0x 0.8x 0.6x

EV/EBITDA NA NA NA NA NA NA 2.1x 1.0x 0.6x 0.5x 0.4x

Page 21 of 75 Douglas Loe, PhD MBA | 416.775.1004 | dloe@echelonpartners.com

IMV (IMV-TSX) | 15 January 2020

TEARSHEET - IMV (IMV-T, $4.36, Speculative BUY, PT: $12.25)

Company Description Consensus Return

Rating: Buy

Target: $10.10 131.7%

Median: $11.00 152.3%

High: $14.34 228.9%

Low: $3.92 -10.2%

# Est: 8

Consensus Distribution

Sector Outper/Buy 7

Sector Perform/Hold 1

Sector UnderPerform/Sell 0

List of Ongoing Trials

Financial Summary/Key Metrics 2015A 2016A 2017A 2018A 2019E 2020E 2021E 2022E 2023E 2024E Key Statistics Value

C$000's except for per share data 52-Wk High: $7.75

Total Revenue 130 130 189 483 500 5,000 5,000 5,000 17,920 103,529 52-Wk Low: $2.77

Growth y/y NA NA NA NA NA NA NA NA 258.4% 477.7% Avg Vol (3-Mo) 0.19

Cons. ($M) NA 130 189 483 413 854 2,105 10,045 49,573 162,558 Shares O/S: 50.6

Cons. 3 Mts. Ago ($M) NA 130 189 483 273 2,722 5,958 40,858 75,355 154,236 Market Cap: 220.8

EBITDA (7,428) (6,277) (10,351) (19,043) (23,605) (19,302) (14,462) (14,674) (1,004) 85,977 Net Debt: -11.6

Margin NA NA NA NA NA NA NA -293.5% -5.6% 83.0% Ent. Value: 210.1

Cons. ($M) NA NA NA (19.0) (23.8) (23.6) (25.6) (30.5) (21.3) 42.5 Div Yield: 0.0%

Cons. 3 Mts. Ago ($M) NA NA NA (19.0) (23.5) (24.1) (25.3) (30.2) (20.9) 43.0 Website: http://www.imv-inc.com

Net Income ($M) (8,775) (8,896) (12,028) (21,935) (25,495) (21,192) (16,352) (16,564) (2,894) 67,269 FYE: Dec-31

EPS f.d ($0.27) ($0.22) ($0.29) ($0.47) ($0.48) ($0.40) ($0.31) ($0.31) ($0.06) $1.28 Employees: N/A

Cons. ($M) ($0.32) ($0.29) ($0.32) ($0.50) ($0.51) ($0.48) ($0.50) ($0.50) ($0.27) $0.95

Cons. 3 Mts. Ago ($M) ($0.32) ($0.29) ($0.32) ($0.50) ($0.48) ($0.41) ($0.45) $0.04 $0.20 $1.49 Top Institutional Ownership M Shares % Held

Ruffer LLP 6.8 13.4%

Valuation Fidelity (Canada) Asset Management ULC 2.7 5.2%

NPV 20% 25% 30% Timelo Investment Management, Inc. 0.2 0.4%

Implied value/share $17.94 $12.15 $9.00 First Manhattan Co. 0.1 0.2%

Price/Earnings Multiple 15.0x 20.0x 25.0x RBC Dominion Securities, Inc. (Investment Management) 0.1 0.2%

Implied value/share $10.21 $13.61 $17.02 Guardian Capital Advisors LP 0.1 0.2%

EV/EBITDA Multiple 10.0x 12.5x 20.0x BMO Asset Management, Inc. 0.1 0.1%

Implied value/share $8.37 $10.46 $16.74 Morgan Stanley Canada Ltd. 0.1 0.1%

One year IMV Target Price ($) $12.25 Jacob Asset Management of New York LLC 0.1 0.1%

Hartford Financial Management, Inc. 0.0 0.1%

Comparables and Peer Analysis

Trading Current Target Dividend Market Enterprise

Ticker CCY Price Price Yield % Return Cap Value 1-Week 1-Month 3-Month 1-Year T12M 2019E 2020E T12 2019E 2020E

IMV Inc. IMV CAD $4.36 $10.10 0.0% 131.7% 220.8 209.1 3.8% 13.2% 26.4% (43.3%) (27.1) (23.8) (23.6) ($0.55) ($0.51) ($0.48)

Aduro BioTech, Inc. ADRO USD $1.17 $5.67 0.0% 384.3% 93.4 -104.1 (13.4%) 3.6% 17.5% (59.0%) (80.3) (88.2) (89.8) ($1.12) ($0.99) ($0.84)Advaxis, Inc. ADXS USD $1.13 $5.00 0.0% 342.5% 56.7 -15.2 (13.1%) 73.8% 269.9% (74.0%) (14.4) 0.0 0.0 ($0.03) ($1.09) ($0.70)

Bavarian Nordic A/S BAVA-DK DKK DKK 181 DKK 285 0.0% 57.5% DKK 5,862 DKK 4,807 6.5% 5.7% 4.0% 22.7% (334.6) (281.8) 443.0 ($12.47) ($10.28) ($1.61)

Clovis Oncology, Inc. CLVS USD $8.74 $14.88 0.0% 70.2% 634.0 820.3 3.1% (32.1%) 179.9% (61.6%) (364.8) (370.5) (304.7) ($7.51) ($7.26) ($4.93)

Iovance Biotherapeutics Inc IOVA USD $24.57 $36.11 0.0% 47.0% 3,101.9 2,700.1 (5.5%) (6.0%) 36.9% 172.5% (175.6) (193.1) (236.0) ($1.36) ($1.50) ($1.67)

Immune Design Corp. IMDZ USD - N/A - NA - - - - - - (55.9) 0.0 0.0 ($1.14) - -

Incyte Corporation INCY USD $80.14 $90.07 0.0% 12.4% 17,268.4 15,548.4 3.9% (12.4%) 3.5% 9.0% 468.4 620.4 846.3 $1.89 $1.88 $2.01

Novavax, Inc. NVAX USD $3.87 $13.75 0.0% 255.8% 124.0 350.1 (15.5%) (4.2%) (17.7%) (90.7%) (140.7) (125.0) (115.0) ($7.12) ($5.38) ($3.19)

TESARO, Inc. TSRO USD - N/A - NA - - - - - - (608.8) 0.0 0.0 ($11.86) - -

VBI Vaccines, Inc. VBIV USD $1.79 $4.25 0.0% 137.4% 317.3 151.4 28.1% 82.3% 253.2% (1.1%) (53.5) 0.0 0.0 ($0.72) ($0.45) ($0.20)

Average 0.0% 159.9% 3,075.4 2,718.5 (0.2%) 13.8% 86.0% (13.9%)

1 Targets, forecasts and valuations reflect consensus estimates derived from FactSet

Source: Consensus Estimates - FactSet, Forecasts/Estimates - Echelon Wealth Partners

IMV is a clinical stage biotechnology firm whose main Depovax technology

platform has been adapted to treatment in oncology and infectious disease,

through the firm's lead oncology vaccine DPX-Survivac and lead infectious

disease vaccine DPX-RSV.

% Return Forecast

EBITDA EPS

1 Based on F2024 fully-taxed EPS est of $1.33; EBITDA of $86.0M, discounted at 25%; fd S/O of 52.6M post-consolidation2 EV incorporates FQ319 cash of $21.4M, total debt of $8.3M

0.0000

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Last Sale Price 50-day MA 200-day MA

Program Combination therapy Indication Size (pts) Pri. Endpoint Data by

Oncology pipeline

DPX Survivac Low dose cyclophosphamide Ovarian Cancer 40 Phase II* Immune response, tumor response, PFS-OS H219

DPX Survivac Keytruda & cyclophosphamide DLBCL125 Phase II Objective response rate (1 year) H120

DPX Survivac Keytruda & cyclophosphamide Several (basket)2184 Phase II Objective response rate (2 years) H120

DPX Survivac Keytruda & cyclophosphamide Ovarian Cancer 42 Phase II Objective response rate (5 years) F2024

DPX-E7 Low dose cyclophosphamide HPV-related Cancers 44 Phase Ib Safety F2023

Infectious Diseases

DPX-RSV NA RSV140 Phase I Safety, Ab response, data reported NA

Zika NA Zika Virus NA Preclinical NA NA

1 Abbreviations — DLBCL: Diffuse Large B-Cell Lymphoma, RSV: Respiratory Syncytial Virus

*Announced in Dec/18 that IMV and Incyte will stop dosing patients in this trial with epacadostat

Clinical Trial Stage

2 Basket trial covers five indications including: bladder, liver (hepatocellular carcinoma), ovarian, or non-small cell lung (NSCLC) cancers as well as tumors shown to be positive for the microsatellite

instability high (MSI-H) biomarker

Page 22 of 75 Douglas Loe, PhD MBA | 416.775.1004 | dloe@echelonpartners.com

IMV (IMV-TSX) | 15 January 2020

Summary and valuation: As stated, we are maintaining our $12.25 price target and Speculative BUY rating on IMV, with our PT still based on the average of three distinct valuation methods: NPV (25% discount rate), and multiples of our F2024 EBITDA/fd EPS forecasts ($86.0M/$1.33, respectively), with our model economics still mainly driven by DPX-Survivac though with clear upside to our valuation if/when earlier-stage DepoVax formulations described above advance further into Phase II clinical testing, mostly but not exclusively in oncology where immune modulation has made strong advances in recent years. Our EV incorporates FQ319 cash of $21.4M, total debt of $8.3M, and fully-diluted S/O of 52.6M. At current levels, our PT corresponds to a one-year return of 181%.

Exhibit 2 – Valuation Scenarios for IMV

Source: Forecasts/Estimates - Echelon Wealth Partners

NPV, discount rate 15% 20% 25% 30% 35% 40%

Implied value per share $25.70 $17.94 $12.15 $9.00 $6.42 $4.57

Price/earnings multiple, F2024 10x 15x 20x 25x 30x 40x

Implied share price 1 $6.81 $10.21 $13.61 $17.02 $20.42 $27.23

EV/EBITDA multiple, F2024 5x 10x 12.5x 20x 25x 30x

Implied share price 1,2 $4.18 $8.37 $10.46 $16.74 $20.92 $25.11

One-year IMV target price (C$) 1 $12.08

2 EV incorporates FQ319 cash of $21.4M, total debt of $8.3M

1 Based on F2024 fully-taxed EPS est of $1.33; EBITDA of $86.0M, discounted at 25%;

fd S/O of 52.6M post-consolidation

Page 23 of 75 Douglas Loe, PhD MBA | 416.775.1004 | dloe@echelonpartners.com

IMV (IMV-TSX) | 15 January 2020

Important Information and Legal Disclaimers

Echelon Wealth Partners Inc. is a member of IIROC and CIPF. The documents on this website have been prepared for the viewer only as an example of strategy consistent with our recommendations; it is not an offer to buy or sell or a solicitation of an offer to buy or sell any security or instrument or to participate in any particular investing strategy. Any opinions or recommendations expressed herein do not necessarily reflect those of Echelon Wealth Partners Inc. Echelon Wealth Partners Inc. cannot accept any trading instructions via e-mail as the timely receipt of e-mail messages, or their integrity over the Internet, cannot be guaranteed. Dividend yields change as stock prices change, and companies may change or cancel dividend payments in the future. All securities involve varying amounts of risk, and their values will fluctuate, and the fluctuation of foreign currency exchange rates will also impact your investment returns if measured in Canadian Dollars. Past performance does not guarantee future returns, investments may increase or decrease in value and you may lose money. Data from various sources were used in the preparation of these documents; the information is believed but in no way warranted to be reliable, accurate and appropriate. Echelon Wealth Partners Inc. employees may buy and sell shares of the companies that are recommended for their own accounts and for the accounts of other clients.

Echelon Wealth Partners compensates its Research Analysts from a variety of sources. The Research Department is a cost centre and is funded by the business activities of Echelon Wealth Partners including, Institutional Equity Sales and Trading, Retail Sales and Corporate and Investment Banking.

Research Dissemination Policy: All final research reports are disseminated to existing and potential clients of Echelon Wealth Partners Inc. simultaneously in electronic form. Hard copies will be disseminated to any client that has requested to be on the distribution list of Echelon Wealth Partners Inc. Clients may also receive Echelon Wealth Partners Inc. research via third party vendors. To receive Echelon Wealth Partners Inc. research reports, please contact your Registered Representative. Reproduction of any research report in whole or in part without permission is prohibited.

Canadian Disclosures: To make further inquiry related to this report, Canadian residents should contact their Echelon Wealth Partners professional representative. To effect any transaction, Canadian residents should contact their Echelon Wealth Partners Investment advisor.

U.S. Disclosures: This research report was prepared by Echelon Wealth Partners Inc., a member of the Investment Industry Regulatory Organization of Canada and the Canadian Investor Protection Fund. This report does not constitute an offer to sell or the solicitation of an offer to buy any of the securities discussed herein. Echelon Wealth Partners Inc. is not registered as a broker-dealer in the United States and is not be subject to U.S. rules regarding the preparation of research reports and the independence of research analysts. Any resulting transactions should be effected through a U.S. broker-dealer.

U.K. Disclosures: This research report was prepared by Echelon Wealth Partners Inc., a member of the Investment Industry Regulatory Organization of Canada and the Canadian Investor Protection Fund. ECHELON WEALTH PARTNERS INC. IS NOT SUBJECT TO U.K. RULES WITH REGARD TO THE PREPARATION OF RESEARCH REPORTS AND THE INDEPENDENCE OF ANALYSTS. The contents hereof are intended solely for the use of, and may only be issued or passed onto persons described in part VI of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2001. This report does not constitute an offer to sell or the solicitation of an offer to buy any of the securities discussed herein.

Copyright: This report may not be reproduced in whole or in part, or further distributed or published or referred to in any manner whatsoever, nor may the information, opinions or conclusions contained in it be referred to without in each case the prior express written consent of Echelon Wealth Partners

ANALYST CERTIFICATION

Company: IMV Inc. | IMV:TSX I, Douglas Loe, hereby certify that the views expressed in this report accurately reflect my personal views about the subject securities or issuers. I also certify that I have not, am not, and will not receive, directly or indirectly, compensation in exchange for expressing the specific recommendations or views in this report. IMPORTANT DISCLOSURES

Is this an issuer related or industry related publication? Issuer

Does the Analyst or any member of the Analyst’s household have a financial interest in the securities of the subject issuer? If Yes: 1) Is it a long or short position? No Position; and, 2) What type of security is it? None.

No

The name of any partner, director, officer, employee or agent of the Dealer Member who is an officer, director or employee of the issuer, or who serves in any advisory capacity to the issuer.”

No

Does Echelon Wealth Partners Inc. or the Analyst have any actual material conflicts of interest with the issuer? No

Does Echelon Wealth Partners Inc. and/or one or more entities affiliated with Echelon Wealth Partners Inc. beneficially own common shares (or any other class of common equity securities) of this issuer which constitutes more than 1% of the presently issued and outstanding shares of the issuer?

No

During the last 12 months, has Echelon Wealth Partners Inc. provided financial advice to and/or, either on its own or as a syndicate member, participated in a public offering, or private placement of securities of this issuer?

No

During the last 12 months, has Echelon Wealth Partners Inc. received compensation for having provided investment banking or related services to this Issuer? No

Has the Analyst had an onsite visit with the Issuer within the last 12 months? No

Has the Analyst or any Partner, Director or Officer been compensated for travel expenses incurred as a result of an onsite visit with the Issuer within the last 12 months? No

Has the Analyst received any compensation from the subject company in the past 12 months? No

Is Echelon Wealth Partners Inc. a market maker in the issuer’s securities at the date of this report? No

Page 24 of 75 Douglas Loe, PhD MBA | 416.775.1004 | dloe@echelonpartners.com

IMV (IMV-TSX) | 15 January 2020

RATING DEFINITIONS

Buy The security represents attractive relative value and is expected to appreciate significantly from the current price over the next 12 month time horizon.

Speculative Buy The security is considered a BUY but in the analyst’s opinion possesses certain operational and/or financial risks that are higher than average.

Hold The security represents fair value and no material appreciation is expected over the next 12-18 month time horizon.

Sell The security represents poor value and is expected to depreciate over the next 12 month time horizon.

Under Review While not a rating, this designates the existing rating and/or forecasts are subject to specific review usually due to a material event or share price move.

Tender Echelon Wealth Partners recommends that investors tender to an existing public offer for the securities in the absence of a superior competing offer.

-Dropped Coverage

Applies to former coverage names where a current analyst has dropped coverage. Echelon Wealth Partners will provide notice to investors whenever coverage of an issuer is dropped.

RATINGS DISTRIBUTION

Recommendation Hierarchy Buy Speculative Buy Hold Sell Under Review Restricted Tender

Number of recommendations 50 42 18 1 7 0 4

% of Total (excluding Restricted) 42% 36% 15% 1% 6%

Number of investment banking relationships 14 19 5 0 2 0 0

% of Total (excluding Restricted) 35% 48% 13% 0% 5%

PRICE CHART, RATING & PRICE TARGET HISTORY

Date Target (C$) Rating

30 Sep 2016 $2.25 Spec Buy

6 Feb 2017 $2.75 Spec Buy

5 Dec 2017 $3.25 Spec Buy

3 May 2018 $10.00 Spec Buy

4 Jun 2018 $12.25 Spec Buy

Coverage Initiated: Sep 30, 2016

Data sourced from: FactSet

$0.00

$2.00

$4.00

$6.00

$8.00

$10.00

$12.00

$14.00

Aug 16 Jan 17 Jun 17 Nov 17 Apr 18 Sep 18 Feb 19 Jul 19 Dec 19

IMV Inc. (TSX:IMV)

Price PT

Page 25 of 75

Frederic Blondeau, Managing Director, Head of Real Estate Research | 514.396.3616 | fblondeau@echelonpartners.com

Stephan Boire, Real Estate Analyst | 514.396.3622 | sboire@echelonpartners.com

8 January 2020

Real Estate

Event: Introducing European Residential REIT as One of our Two Top Picks for Q120

Right Management Team, Right Sponsorship, Right Strategy, at the Right Time. On December 11, 2018, Canadian Apartment Properties REIT (CAR.un-TSX, $52.55, Buy, $60.00 PT) and then European Commercial REIT announced having entered into an agreement pursuant to which ERE would acquire a portfolio of 41 properties, comprising 2,091 multi-residential units, located in the Netherlands. Although the initial focus is on the Netherlands, the newly created REIT has a comprehensive/broader European strategy. The total consideration was $634M, implying a capitalization rate of 4.0%.

The special meeting took place on March 21, 2019, and votes in favour of the resolution represented 99.96% of votes cast. The acquisition closed on March 29.

We believe ERE is well positioned to be the Netherlands’ apartment consolidator, and should continue to benefit from attractive financing conditions, resulting in going-in investment spreads on the order of 250-300bps.

Tremendous Leadership. Today, ERE’s portfolio comprises 125 properties, totalling 5,116 units, with a value of €1.2B ($1.7B) and an occupancy rate of 97.1%.

Optimal Access to Capital and Conservative Balance Sheet. Given ERE’s strong access to external growth opportunities and capital markets, we expect ERE’s market capitalization to grow from $920.1M to $1,415.3M at the end of 2020.

Post all announced acquisitions and equity offering, ERE’s D/GBV ratio is expected to be ~48%. In addition, CAR’s interest in ERE will decrease to 67%.

Estimates Impact

Maintaining Estimates, Target Price, BUY Rating. At this juncture, we expect the REIT to acquire €300M in properties in 2020, which could prove to be conservative. Our 12-month target price of $5.25/unit is derived by applying a target multiple range of 22.5-23.0x our 2020 AFFO estimate of €0.155/unit, as well as a warranted premium of 20-25% to our NAV valuation of $4.30/unit.

European Residential REIT

Introducing European Residential REIT as One of our Two Top Picks for Q120

ERE.un-TSXV: C$4.61

Buy C$5.25 Target

Projected Total Return: 17.2%

Valuation: NAV 107.2%

Revisions Current Old

Rating

Target ($C) @ 1.45 EURCAD

2019E FFO/unit

2019E AFFO/unit

2020E FFO/unit

2020E AFFO/unit

Company Data52-Week Trading Range €5.19 - 3.83

Market Capitalization (MM $C) 920.1

Enterprise Value (MM $C) 1719.8

Units Outstanding (MM) 199.6

Avg Volume (000) - Last 1-year 69.0

Financial Data2019E Cash Distribution (Expected Q3-19, annualized) € 0.11

2019E Distribution Yield 3.3%

2019E AFFO Payout Ratio 81%

Debt to Gross Book Value (D/GBV) - MRQ 47%

NAV estimate ($C) @ 1.45 EURCAD 4.30

Cap rate assumed 4.0%

P/NAV 107%

ForecastsFYE: December 2019E 2020EEBITDA (mm) € 27.0 € 54.9

FFO per unit (FD)

Q1 € 0.034 € 0.040

Q2 € 0.039 € 0.041

Q3 € 0.034 € 0.043

Q4 € 0.039 € 0.044

Year-end € 0.145 € 0.168

AFFO per unit (FD) € 0.130 € 0.155

Valuation2019E 2020E

P ($C @ 1.45 EURCAD) /FFO (x) 21.9 19.0

P ($C @ 1.45 EURCAD) /AFFO (x) 24.5 20.5

Company Description

Source: EWP, Company Documents, FactSet

European Residential REIT owns 3 office properties in Germany and

Belgium totalling more than 400K sq. ft. of space along with a

portfolio of 41 multi-residential properties located in the

Netherlands.

0.0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

3.3

3.5

3.7

3.9

4.1

4.3

4.5

4.7

4.9

5.1

Aug-18 Nov-18 Feb-19 May-19 Aug-19 Nov-19

Volume (RHS) Price

BUY

5.25

€ 0.15€ 0.13

€ 0.17

€ 0.16

Page 26 of 75 Frederic Blondeau, Managing Director, Head of Real Estate Research | 514.396.3616 | fblondeau@echelonpartners.com

Stephan Boire, Real Estate Analyst | 514.396.3622 | sboire@echelonpartners.com

European Residential REIT (ERE.un-TSXV) | January 8, 2020

Exhibit 1 – Canadian Valuation Multiple Comparison

Sources: FactSet, Echelon Wealth Partners

Exhibit 2 – European Valuation Multiple Comparison (Not Rated Except ERE)

Sources: FactSet, Echelon Wealth Partners

27

.8x

23

.0x

17

.5x

18

.1x

17

.1x

19

.0x

14

.6x

14

.2x 1

9.8

x

20

.1x3

0.2

x

25

.9x

22

.4x

21

.1x

20

.6x

20

.5x

16

.2x

15

.5x

23

.0x

22

.3x

IIP

CA

R

MEQ

KM

P

BEI

ERE

HO

M

MR

G

Can

. Re

s. A

vg(E

xcl.

FCA

)

US

Re

sid

en

tial

Avg

.

2020E FFO 2020E AFFO

11

7%

11

4%

10

7%

10

7%

10

4%

95

%

92

%

86

%

10

4%

98

%

IIP

KM

P

ERE

NV

U

CA

R

HO

M BEI

MR

G

Can

.R

esi

de

nti

alA

vg.

US

Re

sid

en

tial

Avg

.

P/NAV

24

.1x

19

.7x

19

.0x

20

.5x

18

.0x

26

.2x

19

.1x

20

.9x

24

.0x

21

.4x

20

.5x

0.0

x

0.0

x

0.0

x

0.0

x

24

.2x

DW

NI

LEG

ERE

VN

A

GYC

GFC

CO

V

Eur.

Re

s.A

vg

2020E FFO 2020E AFFO

12

8% 1

07

%

10

0%

93

%

90

%

85

%

85

%

80

% 96

%

ALT

A

ERE

CO

V

LEG

GFC

VN

A

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DW

NI

Eur.

Re

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Avg

.

P/NAV

Page 27 of 75 Frederic Blondeau, Managing Director, Head of Real Estate Research | 514.396.3616 | fblondeau@echelonpartners.com

Stephan Boire, Real Estate Analyst | 514.396.3622 | sboire@echelonpartners.com

European Residential REIT (ERE.un-TSXV) | January 8, 2020

Exhibit 3 – Residential Comps

Multi-Residential Sector Valuation Summary

Boardwalk

REIT

Canadian

Apartment

Properties Real

Estate

Investment

Trust

European

Residential

Real Estate

Investment

Trust

InterRent Real

Estate

Investment

Trust

BSR Real

Estate

Investment

Trust

Morguard North

American

Residential Real

Estate

Investment

Trust

Northview

Apartment Real

Estate

Investment

Trust

Killam

Apartment

Real Estate

Investment

Trust

Mainstreet

Equity Corp.Canadian

Ticker BEI.UT-CA CAR.UT-CA ERE.UT-CA IIP.UT-CA HOM.USD-TSE MRG.UT-CA NVU.UT-CA KMP.UT-CA MEQ-CA Apt. REIT

Exchange TSX TSX TSX TSX TSX TSX TSX TSX TSX Average Apt. Avg

Recommendation BUY BUY BUY BUY BUY BUY BUY HOLD N/R

Target DataC$ C$

C$ unless

otherwise C$ US$ C$ C$ C$ C$

Current Price 06-Jan 45.81 52.11 4.61 15.39 11.47 18.22 29.32 18.60 79.02

12-Month Target Price 55.00 60.00 5.25 18.00 12.00 21.00 30.00 20.00 81.00

12-Month Projected Tota l Return 22.2% 17.8% 16.2% 18.9% 10.8% 19.0% 7.9% 11.0% 2.5%

Impl ied Target Multiple on 2020E AFFO 24.7x 29.8x 23.3x 35.3x 17.0x 17.8x 15.4x 22.6x 22.9x 23.2x

REIT/REOC Data

Market Capita l i zation ($MM) $2,333 $8,394 $1,243 $1,920 $515 $1,024 $1,764 $1,708 $741 $2,183 $127,997

Shares O/S (MM) 50.9 161.1 269.6 124.8 44.9 56.2 60.2 91.8 9.4

Average Dai ly Trading Volume (000s) 124 383 69 295 36 58 144 301 2 157 549

Distribution Rate (Annual ized)* 1.00 1.37 0.11 0.29 0.71 0.68 1.63 0.65 0.00

Yield % 2.2% 2.6% 1.6% 1.9% 6.2% 3.7% 5.6% 3.5% 0.0% 3.0% 4.1%

Spread % over Gov't 10-yr Bond Yield 0.6% 1.0% 0.0% 0.3% 4.6% 2.2% 4.0% 1.9% -1.6% 1.5% 2.3%

Payout as a % of 2020E AFFO 45% 68% 47% 58% 100% 58% 84% 74% 0% 59.3% 78%

Performance

1-wk price change -0.8% -2.0% -1.7% -2.3% -1.6% -2.2% -1.5% -2.1% 0.0% -1.6% 0.7%

1-mth price change -5.7% -5.1% -6.3% -5.0% -2.9% -2.7% -5.4% 11.8% -2.7% -3.4%

3-mth price change 1.9% -7.3% -1.4% -5.6% -10.3% -0.1% -10.1% 24.9% -1.0% -1.2%

YTD tota l return 21.2% 17.6% 22.9% 17.9% 6.2% 19.8% 16.7% 24.2% 18.3% 28.2%

Estimates and Growth Rates

Fisca l Year end Dec Dec Dec Dec Dec Dec Dec Dec Sep

FFO/unit 2018A $2.20 $1.98 $0.45 $1.18 $2.11 $0.94 $3.44

2019E $2.58 $2.08 € 0.15 $0.49 $0.75 $1.20 $2.05 $0.98 $4.29

2020E $2.67 $2.27 € 0.17 $0.55 $0.78 $1.28 $2.22 $1.03 $4.51

Growth Rate (CAGR '18A-'20E) 10.1% 6.9% NA 11.5% NA 4.0% 2.6% 4.2% 14.5% 7.7% 20.8%

Growth Rate + Current Yield 12.3% 9.5% NA 13.4% NA 7.7% 8.2% 7.8% 14.5% 10.5% 24.9%

AFFO/unit 1

2018A $1.75 $2.21 $0.40 $1.07 $1.81 $0.79 $2.29

2019E $2.13 $1.83 € 0.13 $0.44 $0.68 $1.10 $1.77 $0.83 $3.09

2020E $2.23 $2.01 € 0.16 $0.51 $0.71 $1.18 $1.95 $0.88 $3.54

Growth Rate (CAGR '18A-'20E) 12.8% -4.5% NA 12.8% NA 5.1% 3.7% 5.9% 24.2% 8.6% 5.6%

Growth Rate + Current Yield 15.0% -1.9% NA 14.8% NA 8.8% 9.3% 9.4% 24.2% 11.4% 9.7%

Trading Valuation

P/FFO 2018A 20.8x 26.3x 34.5x 15.4x 13.9x 19.7x 23.0x 21.9x 28.8x

2019E 17.8x 25.0x 21.9x 31.7x 15.2x 15.2x 14.3x 19.1x 18.4x 19.8x 20.1x

2020E 17.1x 23.0x 19.0x 27.8x 14.6x 14.2x 13.2x 18.1x 17.5x 18.3x 18.5x

P/AFFO 2018A 26.2x 23.6x 38.4x 17.1x 16.2x 23.6x 34.5x 25.7x 23.4x

2019E 21.5x 28.4x 24.5x 34.7x 16.9x 16.5x 16.5x 22.5x 25.6x 23.0x 22.3x

2020E 20.6x 25.9x 20.5x 30.2x 16.2x 15.5x 15.1x 21.1x 22.4x 20.8x 20.5x

AFFO Spread over Gov't 10-yr Bond Yield

2019E 3.1% 1.9% 2.5% 1.3% 4.3% 4.5% 4.5% 2.9% 2.3% 3.0% 2.8%

2020E 3.3% 2.3% 3.3% 1.7% 4.6% 4.9% 5.1% 3.2% 2.9% 3.5% 3.3%

PEG Ratio 2 1.4x -13.9x NA 2.0x NA 1.8x 1.6x 2.2x 0.9x -0.6x 0.7x

Net Asset Value per Share $49.70 $50.00 $4.30 $13.10 $12.10 $21.20 $27.40 $16.30 $71.65

P/NAV 92% 104% 107% 117% 95% 86% 107% 114% 110% 104% 98%

Impl ied va lue per net owned apt. renta l unit $156,626 $221,093 $292,576 $211,981 $159,300 $197,635 $154,471 $199,097

Impl ied trading cap rate3 5.1% 3.9% 3.6% 5.2% 5.5% 4.7% 3.9% 4.6%

Leverage Analysis (MRQ)

Debt / GBV (incl . conv.) 46% 37% 47% 35% 46% 43% 50% 47% 54% 45%

Debt / GBV (excl . conv.) 46% 37% 47% 35% 46% 41% 50% 47% 54% 45%

Max. D / GBV Permitted Incl . Conv. (per DOT) 60% 70% 60% 65% 70% 65% 80% NA 67%

Acquis i tion Capaci ty Based on Max. D / GBV $2,307 $13,946 $1,567 $580 $3,158 $1,881 NA NA $3,907

Net Debt (incl . conv.) / Enterprise Value 55% 36% 31% 51% 56% 47% 51% 47%

Net Debt (incl . conv.) / MV of RE Assets6 52% NA NA 16% NA NA NA NA 63% 44%

Coverage / Servicing Analysis

EBITDA / Interest + Pref. Div. 4 2.8x 3.6x 1.9x 4.2x 2.7x 3.0x 3.0x 3.3x 0.8x 2.8x

Net Debt / EBITDA (incl . conv.) 15.4x 11.5x 12.2x 13.9x 10.9x 11.4x 12.2x 12.6x 12.5x

Portfolio Statistics (MRQ)

Number of net apartment sui tes owned 32,769 59,844 2,091 10,060 9,758 12,471 26,755 16,172 9,878

Portfol io Occupancy7 98.4% 98.2% 98.5% 95.5% 94.9% 94.8% 91.0% 96.7% 89.3% 95.3%

1 AFFO = FFO less reserve for maintenance capex and any future operating lease payment

2 PEG Ratio = Multiple (2020E) / (Growth + Yield) 6 Demand loans/credit faci l i ties are assumed to come due within 12 months

3 Cda:Cash NOI = FTM for names under coverage, MRQ*4 for names not under coverage US GAAP NOI = LTM 7 Apartment occupancy only for Canadian universe. Tota l occupancy for US universe.

4 EBITDA and interest expense is FTM, except for LREIT 8 NAV and impl ied cap rate based on our ful ly Stabi l i zed NOI estimate

All figures in CA$, unless indicated otherwise. *Assuming Lanesborough REIT does not reinstate i ts quarterly dis tribution

Source: FactSet, Company Reports, Echelon Wealth Partners US Stocks include: AIV, AVB, APTS, BRG, BRT, EQR, IRET, IRT, UMH, UDR, ESS, MAA

Page 28 of 75 Frederic Blondeau, Managing Director, Head of Real Estate Research | 514.396.3616 | fblondeau@echelonpartners.com

Stephan Boire, Real Estate Analyst | 514.396.3622 | sboire@echelonpartners.com

European Residential REIT (ERE.un-TSXV) | January 8, 2020

European Residential REIT ERE.un C$5.25Recommendation BUY Target C$5.25 Units O/S (MM) 199.6

12-month return 2.9% Mkt. Capitalization (MM$) C$1047.8

Al l figures in €, unless s tated otherwiseVALUATION DATA EARNINGS SUMMARY (MM€)

2019E 2020E Year-end Dec. 2019E 2020EEV/EBITDA 37.5x 23.8x Net operating Income 31.3 60.5FFO/unit FD 24.9x 21.6x Other Income 0.0 0.0AFFO/unit FD 27.9x 23.3x G&A expenses 4.3 5.6Distribution yield 1.4% 1.4% EBITDA 27.0 54.9P/NAV* 123% NAV Estimate: € 2.95 YoY growth N/A 103.1%

Assumed Cap rate: 4.0% Less:Net Asset Value Sensitivities (pro-forma capital raise) Financing costs 19.3 26.7

Growth in NOI Other -12.9 -17.9-5.0% 0.0% 5.0% Funds From Operations 20.7 46.0

3.6% € 3.30 € 3.35 € 3.40 Unusual itemsCAP 3.8% € 3.10 € 3.15 € 3.15 Recurring FFO 20.7 46.0Rate 4.0% € 2.90 € 2.95 € 2.95 SL rents& mk-mrkt rents

4.2% € 2.70 € 2.75 € 2.80 Capital expenditures (2.4) (3.4)4.4% € 2.55 € 2.55 € 2.60 TI's and LC's (0.0) (0.0)

Implied Value Per Square Foot Adj. FFO 18.3 42.6

Growth in NOI-5.0% 0.0% 5.0% FFO/unit (FD) 0.15 0.17

3.0% € 2,855,681 € 3,005,980 € 3,156,279 EWP AFFO/unit (FD) 0.13 0.16CAP 3.5% € 2,447,727 € 2,576,555 € 2,705,382 Cash distributions / unit 0.11 0.11Rate 4.0% € 2,141,761 € 2,254,485 € 2,367,210

4.5% € 1,903,788 € 2,003,987 € 2,104,186 Payout Ratios5.0% € 1,713,409 € 1,803,588 € 1,893,768 Recurring FFO 72% 63%

Geographic Distribution - Q2-19 Rep. AFFO 81% 68%

MarginsNOI 80% 76%EBITDA 69% 69%Recurring FFO 53% 58%Recurring AFFO 47% 54%

STATEMENT OF CASH FLOWS SUMMARYYear-end Dec. 2019E 2020ECash Provided by (used in)Operating activities 18.7 29.3Financing activities 425.2 270.5Investing activities (404.7) (300.0)Cash Beginning Of period 2.2 41.5Increase (decrease) 39.3 (0.2)Cash End of the period 41.5 41.3

RISK ANALYSIS - MRQBALANCE SHEET SUMMARYYear-end Dec. 2019E 2020ENet Investment in RE 1323.9 1623.9Total Assets 1393.5 1693.3Mortgage Debt 597.1 597.1Bank indebtness 26.0 26.0Unsecured debt 0.0 0.0Convertible debentures 0.0 0.0Total debt 623.1 623.1Other l iabilities 500.8 500.8Equity 269.5 569.3Liabilities & Unit Equity 1393.5 1693.3Basic units outstanding 47.9 158.5FD units outstanding 47.9 158.5Acquisition Capacity* 807.6 1,364.3

MODEL ASSUMPTIONS *Assuming 65% Leverage

2019E 2020E Leverage RatiosOccupancy 98.5% 98.5% Debt to GBV (incl. conv) 44.7% 36.8%Rental Rate Lift 2.0% 2.0% Net debt / EBITDA 21.5x 10.6xSpeculative Acq'n (MM€) $0 $300 Interest coverage 1.4x 2.1xAssumed cap rate 4.00% 4.00%Source: EWP, Company Documents, FactSet

0.1% 0.3% 0.3%

11.0%

23.3%

65.1%

0%

10%

20%

30%

40%

50%

60%

70%

2019

20

20

20

21

2022

20

23

Ther

eaft

er

% of Total Debt Expiring

731

620

379591218

316

1004

Number of Units

Utrecht (731)Zuid-Holland (620)Noord-Holland (379)Limburg (591)Overijssel (218)Noord-Brabant (316)

1,515

975790

727

308

188 639

NOI

Utrecht (1515) Zuid-Holland (975)

Noord-Holland (790) Limburg (727)

Overijssel (308) Noord-Brabant (188)

Other provinces (639)

Page 29 of 75 Frederic Blondeau, Managing Director, Head of Real Estate Research | 514.396.3616 | fblondeau@echelonpartners.com

Stephan Boire, Real Estate Analyst | 514.396.3622 | sboire@echelonpartners.com

European Residential REIT (ERE.un-TSXV) | January 8, 2020

Important Information and Legal Disclaimers

Echelon Wealth Partners Inc. is a member of IIROC and CIPF. The documents on this website have been prepared for the viewer only as an example of strategy consistent with our recommendations; it is not an offer to buy or sell or a solicitation of an offer to buy or sell any security or instrument or to participate in any particular investing strategy. Any opinions or recommendations expressed herein do not necessarily reflect those of Echelon Wealth Partners Inc. Echelon Wealth Partners Inc. cannot accept any trading instructions via e-mail as the timely receipt of e-mail messages, or their integrity over the Internet, cannot be guaranteed. Dividend yields change as stock prices change, and companies may change or cancel dividend payments in the future. All securities involve varying amounts of risk, and their values will fluctuate, and the fluctuation of foreign currency exchange rates will also impact your investment returns if measured in Canadian Dollars. Past performance does not guarantee future returns, investments may increase or decrease in value and you may lose money. Data from various sources were used in the preparation of these documents; the information is believed but in no way warranted to be reliable, accurate and appropriate. Echelon Wealth Partners Inc. employees may buy and sell shares of the companies that are recommended for their own accounts and for the accounts of other clients.

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U.K. Disclosures: This research report was prepared by Echelon Wealth Partners Inc., a member of the Investment Industry Regulatory Organization of Canada and the Canadian Investor Protection Fund. ECHELON WEALTH PARTNERS INC. IS NOT SUBJECT TO U.K. RULES WITH REGARD TO THE PREPARATION OF RESEARCH REPORTS AND THE INDEPENDENCE OF ANALYSTS. The contents hereof are intended solely for the use of, and may only be issued or passed onto persons described in part VI of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2001. This report does not constitute an offer to sell or the solicitation of an offer to buy any of the securities discussed herein.

Copyright: This report may not be reproduced in whole or in part, or further distributed or published or referred to in any manner whatsoever, nor may the information, opinions or conclusions contained in it be referred to without in each case the prior express written consent of Echelon Wealth Partners.

ANALYST CERTIFICATION

Company: European Residential REIT | TSX:ERE.UN I, Frederic Blondeau, hereby certify that the views expressed in this report accurately reflect my personal views about the subject securities or issuers. I also certify that I have not, am not, and will not receive, directly or indirectly, compensation in exchange for expressing the specific recommendations or views in this report. Company: European Residential REIT | TSX:ERE.UN I, Stephan Boire, hereby certify that the views expressed in this report accurately reflect my personal views about the subject securities or issuers. I also certify that I have not, am not, and will not receive, directly or indirectly, compensation in exchange for expressing the specific recommendations or views in this report. IMPORTANT DISCLOSURES

Is this an issuer related or industry related publication? Issuer

Does the Analyst or any member of the Analyst’s household have a financial interest in the securities of the subject issuer? If Yes: 1) Is it a long or short position? No Position; and, 2) What type of security is it? None.

No

The name of any partner, director, officer, employee or agent of the Dealer Member who is an officer, director or employee of the issuer, or who serves in any advisory capacity to the issuer.

No

Does Echelon Wealth Partners Inc. or the Analyst have any actual material conflicts of interest with the issuer? No

Does Echelon Wealth Partners Inc. and/or one or more entities affiliated with Echelon Wealth Partners Inc. beneficially own common shares (or any other class of common equity securities) of this issuer which constitutes more than 1% of the presently issued and outstanding shares of the issuer?

No

During the last 12 months, has Echelon Wealth Partners Inc. provided financial advice to and/or, either on its own or as a syndicate member, participated in a public offering, or private placement of securities of this issuer?

Yes

During the last 12 months, has Echelon Wealth Partners Inc. received compensation for having provided investment banking or related services to this Issuer? Yes

Has the Analyst had an onsite visit with the Issuer within the last 12 months? See table below Yes

Has the Analyst or any Partner, Director or Officer been compensated for travel expenses incurred as a result of an onsite visit with the Issuer within the last 12 months? No

Has the Analyst received any compensation from the subject company in the past 12 months? No

Is Echelon Wealth Partners Inc. a market maker in the issuer’s securities at the date of this report? No

Page 30 of 75 Frederic Blondeau, Managing Director, Head of Real Estate Research | 514.396.3616 | fblondeau@echelonpartners.com

Stephan Boire, Real Estate Analyst | 514.396.3622 | sboire@echelonpartners.com

European Residential REIT (ERE.un-TSXV) | January 8, 2020

Recent Site Visits

RATING DEFINITIONS

Buy The security represents attractive relative value and is expected to appreciate significantly from the current price over the next 12 month time horizon.

Speculative Buy The security is considered a BUY but in the analyst’s opinion possesses certain operational and/or financial risks that are higher than average.

Hold The security represents fair value and no material appreciation is expected over the next 12-18 month time horizon.

Sell The security represents poor value and is expected to depreciate over the next 12 month time horizon.

Under Review While not a rating, this designates the existing rating and/or forecasts are subject to specific review usually due to a material event or share price move.

Tender Echelon Wealth Partners recommends that investors tender to an existing public offer for the securities in the absence of a superior competing offer.

Dropped Coverage

Applies to former coverage names where a current analyst has dropped coverage. Echelon Wealth Partners will provide notice to investors whenever coverage of an issuer is dropped.

RATINGS DISTRIBUTION

PRICE CHART, RATING & PRICE TARGET HISTORY

ERE.un June, 2019

El isabeth Samsonstraat 9, Netherlands

Faustdreef 267, Netherlands

Auriol laan 18, Netherlands

Havendi jk 151, Netherlands

Thomas Jeffersonlaan 347, Netherlands

Anna Blamanplein 66, Netherlands

Recommendation Hierarchy Buy Speculative Buy Hold Sell Under Review Restricted Tender

Number of recommendations 50 42 18 1 7 0 4

% of Total (excluding Restricted) 42% 36% 15% 1% 6%

14 19 5 0 2 0 0

% of Total (excluding Restricted) 35% 48% 13% 0% 5%

Number of investment banking relationships

Date Target (C$) Rating

25 Apr 2018 $4.00 BUY

25 May 2018 $4.25 BUY

29 Aug 2018 $4.35 BUY

12 Dec 2018 $4.50 BUY

27 Mar 2019 $5.00 BUY

13 Nov 2019 $5.25 BUY

Coverage Initiated: Apr 25, 2018

Data sourced from: FactSet

$0.00

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

$7.00

$8.00

$9.00

Oct 16 Feb 17 Jun 17 Oct 17 Feb 18 Jun 18 Oct 18 Feb 19 Jun 19 Oct 19

European Residential REIT (TSX:ERE.UT-CA)

Price PT Revision

Page 31 of 75

8 January 2020

Real Estate

Frederic Blondeau, Managing Director, Head of Real Estate Research | 514.396.3616 | fblondeau@echelonpartners.com

Stephan Boire, Real Estate Analyst | 514.396.3622 | sboire@echelonpartners.com

Event: Introducing Granite REIT as One of our Two Top Picks for Q120

Dominant Canadian Listed Industrial Real Estate Owner, Operator and Developer. GRT is Canada’s largest listed industrial REIT in terms of market capitalization, currently at $3.1B, owning, managing and developing industrial, warehouse and logistics properties in North America and Europe. The REIT’s portfolio currently comprises 82 core properties and 6 development properties, located in 9 countries (with leases paid in either CAD, USD or EUR), and totalling 36.1M sq. ft. of GLA, with a WALT of 6.0 years and a portfolio occupancy of 99.7%. We would further underline GRT’s conservative attributes, more specifically a D/GBV ratio of 26.5% (15% net). Moreover, the 4.3% distribution (with the REIT’s eight consecutive annual distribution increases), translates into an AFFO Payout Ratio of 84%.

Over the last seven years, the REIT has been expanding its tenants’ base beyond Magna International (MG-TSE, NR), diversifying from the single tenant heavy industrial real estate to modern logistics, warehouse and distribution real estate, still within North America and Europe. At the present time, 39% of the portfolio’s GLA is leased on a triple-net basis to Magna International.

Exceptionally Strong Team. On June 4, 2018, GRT announced the appointment of Mr. Kevan Gorrie as Chief Executive Officer of the REIT (effective August 1, 2018). Mr. Gorrie has more than 20 years of experience in the sector with his most recent role as President and Chief Executive Officer of Pure Industrial Real Estate Trust (PIRET, Private), which owns a portfolio totalling 25M sq. ft. of GLA across North America. The REIT was privatized by Blackstone Property Partners and Ivanhoe Cambridge in 2018.

We would further note Mr. Gorrie and PIRET’s management team’s constant focus not only on value creation but also on the long-term “institutional” business plan, notably in terms of growth and communication.

Focus on Development. Given the new management team’s specific expertise in that field, we expect the REIT to first maintain a relatively sizeable pipeline of development projects (management mentioned aiming at a pipeline of ~$300M of development projects as part of its strategy), with development yields within a range of 5.00-5.25%, representing spreads within a range of 75-150bps, depending on the markets, and second, to strongly execute on the business plan. The conservativeness of the balance sheet translates into tremendous flexibility for the development segment.

Estimates Impact

Maintaining Estimates, Target Price and BUY Rating. We expect the REIT to acquire $800M in properties in 2020. Our 12-month target price of $71.00/unit is derived by applying a target multiple range of 19.5-20.0x our 2020 AFFO estimate of $3.62/unit, as well as a 10-15% premium to our FTM NAV valuation of $61.85/unit.

Granite REIT

Introducing Granite REIT as One of our Two Top Picks for Q120

GRT.u-TSX: $64.90

Buy $71.00 Target

Projected Total Return: 13.7%

Valuation: NAV 104.9%

Revisions Current Old

Rating

Target

2019E FFO/unit

2019E AFFO/unit

2020E FFO/unit

2020E AFFO/unit

Company Data

52-Week Traeing Range $69.12 - 54.29

Market Capitalization (mm) $3,141

Enterprise Value (mm) $3,877

Shares Outstanding, FD (mm) 48.4

Avg Volume (MM) - Last 1-year 156.7

Financial Data

2019E Cash Distribution $2.80

2019E Distribution Yield 4.3%

2019E AFFO Payout Ratio 84%

Debt to Gross Book 26.5%

Net Asset Value per Unit $61.85

Assumed cap rate 6.2%

Price to NAV 105%

Forecasts

FYE: December 2018A 2019E 2020E

EBITDA (mm) 189.8 212.9 250.6

FFO per unit (FD)

Q1 $1.11 $0.89 $0.92

Q2 $0.82 $0.89 $0.96

Q3 $0.85 $0.93 $0.98

Q4 $0.89 $0.93 $1.01

Year-end $3.67 $3.64 $3.88

AFFO per unit (FD) $3.37 $3.34 $3.62

Valuation

2018A 2019E 2020E

P/FFO (x) 17.7x 17.8x 16.7x

P/AFFO (x) 19.2x 19.4x 17.9x

Company Description

Source: EWP, Company Documents, FactSet

GRT is Canada's largest industrial REIT in terms of market

capitalization, owning a global portfolio of both heavy

and light industrial real estate comprising properties

located in nine countries (with leases paid in either CAD,

USD or EUR) and totalling more than 30M sq. ft. of GLA

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

$52.00

$54.00

$56.00

$58.00

$60.00

$62.00

$64.00

$66.00

$68.00

$70.00

Aug-18 Nov-18 Feb-19 May-19 Aug-19 Nov-19

Volume (RHS) Price

BUY

$71.00

$3.64

$3.34

$3.88

$3.62

Page 32 of 75 Frederic Blondeau, Managing Director, Head of Real Estate Research | 514.396.3616 | fblondeau@echelonpartners.com

Stephan Boire, Real Estate Analyst | 514.396.3622 | sboire@echelonpartners.com

Granite Real Estate Investment Trust (GRT.u-TSX) | January 8, 2020

Exhibit 1 – Industrial Multiples Comparison

Source: FactSet, Company Documents, Echelon Wealth Partners

17

.7x

16

.7x

15

.3x

16

.6x 23

.3x

18

.4x

17

.9x

16

.7x

17

.7x 2

7.6

x

SMU

GR

T

DIR

Can

.In

du

stri

alA

vg.

US

Ind

ust

rial

Avg

.

2020E FFO 2020E AFFO

11

1%

10

5%

10

4%

10

6%

11

0%

SMU

GR

T

DIR

Can

.In

du

stri

alA

vg.

US

Ind

ust

rial

Avg

.

P/NAV

Page 33 of 75 Frederic Blondeau, Managing Director, Head of Real Estate Research | 514.396.3616 | fblondeau@echelonpartners.com

Stephan Boire, Real Estate Analyst | 514.396.3622 | sboire@echelonpartners.com

Granite Real Estate Investment Trust (GRT.u-TSX) | January 8, 2020

Exhibit 2 – Industrial Multiples Comparison

Industrial Sector Valuation Summary

Dream

Industrial

Real Estate

Investment

Trust

Granite Real

Estate Investment

Trust

Summit

Industrial

Income REIT

Canadian U.S.

DIR.UT-CA GRT.UT-CA SMU.UT-CA

TSX TSX TVX Average Average

Recommendation BUY BUY HOLD

Target Data C$ C$ C$

Current Price 06-Jan $13.00 $64.90 $11.65

12-Month Target Price $14.50 $71.00 $13.00

12-Month Target ROR % 16.9% 13.7% 16.2%

Impl ied Target Multiple on 2020E AFFO 18.6x 19.6x 20.6x

REIT/REOC Data Sum

Market Capita l i zation ($MM) $1,438 $3,141 $1,394 $5,973

Shares O/S (MM) 110.6 48.4 119.6

Average Shares Traded Dai ly (000s) 441.3 156.7 521.4 373.2 856.4

Distribution Rate 2019 $0.70 $2.80 $0.53

Yield % 5.4% 4.3% 4.6% 4.8% 3.0%

Spread % over Gov't 10-yr Bond Yield 3.8% 2.7% 3.0% 3.2% 1.2%

Payout as a % of 2020E AFFO 90% 77% 84% 84% 73%

Performance

1-wk price change -1.4% -1.8% -4.3% -2.5% 0.3%

1-mth price change -4.8% -5.4% -9.7% -6.6% -2.8%

3-mth price change -2.7% -0.2% -11.5% -4.8% 3.5%

YTD tota l return 36.6% 22.0% 21.9% 26.8% 36.6%

Estimates and Growth Rates

Fisca l Year End Dec Dec Dec

FFO 2018A $0.86 $3.67 $0.56

2019E $0.79 $3.64 $0.60

2020E $0.85 $3.88 $0.66

Growth Rate (CAGR '18A-'20E) -0.4% 2.7% 8.4% 3.6% 6.0%

Growth rate + Current Yield 4.9% 7.0% 13.0% 8.3% 9.0%

AFFO

2018A $0.75 $3.37 $0.51

2019E $0.71 $3.34 $0.56

2020E $0.78 $3.62 $0.63

Growth Rate (CAGR '18A-'20E) 1.9% 3.6% 11.4% 5.6% 6.3%

Growth rate + Current Yield 7.2% 7.9% 16.0% 10.4% 9.3%

Trading Valuation

P/FFO 2018A 15.1x 17.7x 20.8x 17.9x 26.5x

2019E 16.4x 17.8x 19.4x 17.9x 25.0x

2020E 15.3x 16.7x 17.7x 16.6x 23.3x

P/AFFO 2018A 17.3x 19.2x 22.9x 19.8x 31.7x

2019E 18.4x 19.4x 20.7x 19.5x 29.8x

2020E 16.7x 17.9x 18.4x 17.7x 27.6x

AFFO Spread over Gov't 10-yr Bond Yield

2019E 3.9% 3.6% 3.2% 3.6% 2.0%

2020E 4.4% 4.0% 3.8% 4.1% 2.2%

PEG Ratio1 2.3x 2.3x 1.2x 1.9x 3.1x

Net Asset Value per Share $12.55 $61.85 $10.50

P/NAV 104% 105% 111% 106% 110%

Impl ied rea l estate va lue per owned square foot $153 $116 $151 $140

Impl ied trading cap rate2 6.4% 5.9% 4.5% 5.6%

Leverage Analysis (Most Recent Qtr)

Debt / GBV (incl . conv.) 35% 28% 37% 33%

Debt / GBV (excl . conv.) 35% 28% 37% 33%

Net Debt (incl . conv.) / Enterprise Value 34% 20% 33% 29%

Coverage / Servicing Analysis (MRQ)

EBITDA / Interest + Pref. Div.3 5.5x 7.2x 3.5x 5.4x

Net Debt / EBITDA (incl . conv.) 5.9x 3.3x 11.3x 6.9x

Portfolio Occupancy 97% 100% 100% 98.8%

1 PEG Ratio = Multiple (2020E) / (Growth + Yield) / 100

2 Names under coverage cash NOI = FTM est., not under coverage cash NOI = MRQ x 4, US GAAP NOI = MRQ x 4

3 Cda: FTM EBITDA for names under coverage, for names not under coverage '20E EBITDA

*** US Names include: EGP, MNR, STAG, TRNO, FR, PLD

Source: FactSet, Company Reports , Echelon Wealth Partners

Page 34 of 75

Frederic Blondeau, Managing Director, Head of Real Estate Research | 514.396.3616 | fblondeau@echelonpartners.com

Stephan Boire, Real Estate Analyst | 514.396.3622 | sboire@echelonpartners.com

Granite Real Estate Investment Trust (GRT.u-TSX) | January 8, 2020

Granite REIT GRT.UN-T C$64.90

Recommendation BUY Target C$71.00 Units O/S (MM) 48.4Float (MM) 45.9

12-month return 13.7% Mkt. Capitalization (MM$) C$3,141

Al l figures in C$, unless s tated otherwise

VALUATION DATA EARNINGS SUMMARY (MM$)2017A 2018A 2019E 2020E Year-end Dec. 2017A 2018A 2019E 2020E

EV/EBITDA 26.4x 16.7x 15.1x Revenues 222.6 247.5 270.5 321.8

FFO/unit FD 20.0x 17.7x 17.8x 16.7x Operating Expenses 9.3 30.9 34.8 43.4

AFFO/unit FD 21.1x 19.2x 19.4x 17.9x Net operating Income 213.3 216.5 235.7 278.5

Distribution yield 3.6% 5.7% 4.3% 4.5% Other Income 0.5 2.6 8.3 1.6

P/NAV* 105% $61.85 G&A expenses 26.1 29.4 31.2 29.5

Assumed Cap rate: 6.2% EBITDA 187.8 189.8 212.9 250.6

Net Asset Value Sensitivities (pro-forma capital raise) YoY growth -0.2% 1.0% 12.2% 17.7%

Less :

-5.0% 0.0% 5.0% Financing costs 20.0 22.4 28.7 39.6

5.2% $72.35 $77.05 $81.75 Other 2.1 -1.7 6.4 1.0

CAP 5.7% $64.50 $68.80 $73.10 Funds From Operations 165.7 169.0 177.7 210.0

Rate 6.2% $57.90 $61.85 $65.80 Unusual i tems

6.7% $52.30 $55.95 $59.60 Recurring FFO 165.7 169.0 177.7 210.0

7.2% $47.45 $50.90 $54.30 SL rents& mk-mrkt rents 1.1 (4.3) (4.8) (4.2)

Implied Value Per Square Foot Capita l expenditures (3.5) (3.5) (3.6) (3.6)

TI's and LC's (6.1) (6.1) (6.1) (6.1)

-5.0% 0.0% 5.0% Adj. FFO 157.3 155.1 163.2 196.1

5.2% $150 $158 $166

CAP 5.7% $137 $144 $151 Cash dis tributions / unit $2.30 $3.71 $2.80 $2.90

Rate 6.2% $126 $132 $139 FFO/unit (FD) $3.25 $3.67 $3.64 $3.88

6.7% $116 $123 $129 EWP's AFFO/unit (FD) $3.07 $3.37 $3.34 $3.62

7.2% $108 $114 $120

GEOGRAPHIC SEGMENTATION Payout Ratios

Recurring FFO 71% 101% 77% 75%

EWP's AFFO 75% 110% 83% 80%

Margins

NOI 96% 87% 87% 87%

EBITDA 84% 77% 79% 78%

Recurring FFO 74% 68% 66% 65%

Recurring AFFO 71% 63% 60% 61%STATEMENT OF CASH FLOWS SUMMARY(MM$) (MM$) (MM$) (MM$)

Year-end Dec. 2017A 2018A 2019E 2020E

Cash Provided by (used in)

Operating activi ties 158.7 157.9 181.2 213.7

Financing activi ties (105.2) 324.2 68.7 643.0

Investing activi ties (237.8) 95.9 (522.2) (791.3)

Cash Beginning Of period 246.2 69.0 658.2 375.1

Increase (decrease) (184.4) 577.9 (272.3) 65.4

RISK ANALYSIS-MRQ Effect of FX 7.2 11.3 (10.8) 0.0Cash End of the period 69.0 658.2 375.1 440.5

BALANCE SHEET SUMMARY (MM$) (MM$) (MM$) (MM$)

Year-end Dec. 2017A 2018A 2019E 2020E

Net Investment in RE 3,125 3,504 4,107 4,897

Total Assets 3,206 4,189 4,516 5,376

Mortgage Debt 0 0 0 800

Bank indebtness 33 0 0 0

Unsecured debt 647 1198 897 898

Convertible debentures 0.0 0.0 0.0 0.0

Total debt 680 1198 897 1698

Other l iabi l i ties 389 493 463 463

Equity 2,138 2,497 3,155 3,214

Liabilities & Unit Equity 3,206 4,189 4,516 5,376

Bas ic units outstanding 47.1 47.1 50.3 54.1MODEL ASSUMPTIONS Acquis i tion Capaci ty* 975 1,242 1,093 1,118

2017A 2018A 2019E 2020E *Assuming 50% D/GBV

Occupancy 94.4% 94.4% 94.4% 94.4% Leverage Ratios

Rental Rate Li ft 2.0% 2.0% 2.0% 2.0% Debt to GBV (incl . conv) 22.2% 21.8% 21.9% 21.2%

Speculative Acq'n (MM$) $0 $0 $0 $800 Net debt / EBITDA 2.4x 2.5x 2.4x 3.2x

Assumed cap rate 5.0% 5.5% Interest coverage 9.8x 9.3x 9.9x 8.6x

NAV Estimate:

Growth in NOI

Growth in NOI

0%

10%

20%

30%

40%

50%

2019

2020

2021

2022

2023

2024

Ther

eaft

er

% of Leased GLA Expiring-L

% of Leased GLA Expiring-L

Can.20%

USA36%

Ger.10%

NL4%

Austria28%

Other

Eur.2%

Portfolio Breakdown by Q3/19 Revenue

Can.

16%

USA

45%

Ger.10%

NL5%

Austria22%

Other Eur.2%

Portfolio Breakdown by GLA

Granite Real Estate Investment Trust (GRT.u-TSX) | January 8, 2020

Important Information and Legal Disclaimers

Echelon Wealth Partners Inc. is a member of IIROC and CIPF. The documents on this website have been prepared for the viewer only as an example of strategy consistent with our recommendations; it is not an offer to buy or sell or a solicitation of an offer to buy or sell any security or instrument or to participate in any particular investing strategy. Any opinions or recommendations expressed herein do not necessarily reflect those of Echelon Wealth Partners Inc. Echelon Wealth Partners Inc. cannot accept any trading instructions via e-mail as the timely receipt of e-mail messages, or their integrity over the Internet, cannot be guaranteed. Dividend yields change as stock prices change, and companies may change or cancel dividend payments in the future. All securities involve varying amounts of risk, and their values will fluctuate, and the fluctuation of foreign currency exchange rates will also impact your investment returns if measured in Canadian Dollars. Past performance does not guarantee future returns, investments may increase or decrease in value and you may lose money. Data from various sources were used in the preparation of these documents; the information is believed but in no way warranted to be reliable, accurate and appropriate. Echelon Wealth Partners Inc. employees may buy and sell shares of the companies that are recommended for their own accounts and for the accounts of other clients.

Echelon Wealth Partners compensates its Research Analysts from a variety of sources. The Research Department is a cost centre and is funded by the business activities of Echelon Wealth Partners including, Institutional Equity Sales and Trading, Retail Sales and Corporate and Investment Banking.

Research Dissemination Policy: All final research reports are disseminated to existing and potential clients of Echelon Wealth Partners Inc. simultaneously in electronic form. Hard copies will be disseminated to any client that has requested to be on the distribution list of Echelon Wealth Partners Inc. Clients may also receive Echelon Wealth Partners Inc. research via third party vendors. To receive Echelon Wealth Partners Inc. research reports, please contact your Registered Representative. Reproduction of any research report in whole or in part without permission is prohibited.

Canadian Disclosures: To make further inquiry related to this report, Canadian residents should contact their Echelon Wealth Partners professional representative. To effect any transaction, Canadian residents should contact their Echelon Wealth Partners Investment advisor.

U.S. Disclosures: This research report was prepared by Echelon Wealth Partners Inc., a member of the Investment Industry Regulatory Organization of Canada and the Canadian Investor Protection Fund. This report does not constitute an offer to sell or the solicitation of an offer to buy any of the securities discussed herein. Echelon Wealth Partners Inc. is not registered as a broker-dealer in the United States and is not be subject to U.S. rules regarding the preparation of research reports and the independence of research analysts. Any resulting transactions should be effected through a U.S. broker-dealer.

U.K. Disclosures: This research report was prepared by Echelon Wealth Partners Inc., a member of the Investment Industry Regulatory Organization of Canada and the Canadian Investor Protection Fund. ECHELON WEALTH PARTNERS INC. IS NOT SUBJECT TO U.K. RULES WITH REGARD TO THE PREPARATION OF RESEARCH REPORTS AND THE INDEPENDENCE OF ANALYSTS. The contents hereof are intended solely for the use of, and may only be issued or passed onto persons described in part VI of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2001. This report does not constitute an offer to sell or the solicitation of an offer to buy any of the securities discussed herein.

Copyright: This report may not be reproduced in whole or in part, or further distributed or published or referred to in any manner whatsoever, nor may the information, opinions or conclusions contained in it be referred to without in each case the prior express written consent of Echelon Wealth Partners.

ANALYST CERTIFICATION

Company: Granite REIT | TSX:GRT.UN I, Frederic Blondeau, hereby certify that the views expressed in this report accurately reflect my personal views about the subject securities or issuers. I also certify that I have not, am not, and will not receive, directly or indirectly, compensation in exchange for expressing the specific recommendations or views in this report. Company: Granite REIT | TSX:GRT.UN I, Stephan Boire, hereby certify that the views expressed in this report accurately reflect my personal views about the subject securities or issuers. I also certify that I have not, am not, and will not receive, directly or indirectly, compensation in exchange for expressing the specific recommendations or views in this report. IMPORTANT DISCLOSURES

Is this an issuer related or industry related publication? Issuer

Does the Analyst or any member of the Analyst’s household have a financial interest in the securities of the subject issuer? If Yes: 1) Is it a long or short position? No Position; and, 2) What type of security is it? None.

No

The name of any partner, director, officer, employee or agent of the Dealer Member who is an officer, director or employee of the issuer, or who serves in any advisory capacity to the issuer.

No

Does Echelon Wealth Partners Inc. or the Analyst have any actual material conflicts of interest with the issuer? No

Does Echelon Wealth Partners Inc. and/or one or more entities affiliated with Echelon Wealth Partners Inc. beneficially own common shares (or any other class of common equity securities) of this issuer which constitutes more than 1% of the presently issued and outstanding shares of the issuer?

No

During the last 12 months, has Echelon Wealth Partners Inc. provided financial advice to and/or, either on its own or as a syndicate member, participated in a public offering, or private placement of securities of this issuer?

Yes

During the last 12 months, has Echelon Wealth Partners Inc. received compensation for having provided investment banking or related services to this Issuer? Yes

Has the Analyst had an onsite visit with the Issuer within the last 12 months? Yes

Has the Analyst or any Partner, Director or Officer been compensated for travel expenses incurred as a result of an onsite visit with the Issuer within the last 12 months? No

Has the Analyst received any compensation from the subject company in the past 12 months? No

Is Echelon Wealth Partners Inc. a market maker in the issuer’s securities at the date of this report? No

Granite Real Estate Investment Trust (GRT.u-TSX) | January 8, 2020

Recent Site Visit

October 23-24, 2019

1901 Beggrow ST, Lockbourne

15 Commerce Pkwy, West Jefferson

Enterprise Parkway, West Jefferson

115 Enterprise Pkwy, West Jefferson

10 Enterprise Pkwy, West Jefferson

100 Enterprise Pkwy, West Jefferson

3870 Ronald Reagan Pkwy, Plainfield

501 Airtech Pkwy, Plainfield

All Points Court, Plainfield

1451 All Points Court, Plainfield

831 N Graham Rd, Greenwood

4701 S Cowan Rd, Muncie

1301 Chalk Hill Rd, Dallas

3501 N Lancaster Hutchins Rd, Lancaster

201 Sunridge Blvd, Wilmer

RATING DEFINITIONS

Buy The security represents attractive relative value and is expected to appreciate significantly from the current price over the next 12 month time horizon.

Speculative Buy The security is considered a BUY but in the analyst’s opinion possesses certain operational and/or financial risks that are higher than average.

Hold The security represents fair value and no material appreciation is expected over the next 12-18 month time horizon.

Sell The security represents poor value and is expected to depreciate over the next 12 month time horizon.

Under Review While not a rating, this designates the existing rating and/or forecasts are subject to specific review usually due to a material event or share price move.

Tender Echelon Wealth Partners recommends that investors tender to an existing public offer for the securities in the absence of a superior competing offer.

Dropped Coverage

Applies to former coverage names where a current analyst has dropped coverage. Echelon Wealth Partners will provide notice to investors whenever coverage of an issuer is dropped.

RATINGS DISTRIBUTION

PRICE CHART, RATING & PRICE TARGET HISTORY

Recommendation Hierarchy Buy Speculative Buy Hold Sell Under Review Restricted Tender

Number of recommendations 50 42 18 1 7 0 4

% of Total (excluding Restricted) 42% 36% 15% 1% 6%

14 19 5 0 2 0 0

% of Total (excluding Restricted) 35% 48% 13% 0% 5%

Number of investment banking relationships

Date Target (C$) Rating

18 Jan 2019 $62.00 BUY

7 Feb 2019 $63.00 BUY

7 Mar 2019 $66.00 BUY

2 Aug 2019 $66.50 BUY

7 Nov 2019 $71.00 BUY

Coverage Initiated: Jan 18, 2019

Data sourced from: FactSet

$4.00

$14.00

$24.00

$34.00

$44.00

$54.00

$64.00

$74.00

$84.00

Jan 17 May 17 Sep 17 Jan 18 May 18 Sep 18 Jan 19 May 19 Sep 19 Jan 20

Granite REIT (TSX:GRT.UT-CA)

Price Target (C$)

Page 37 of 75

6 January 2020

Special Situations

Matthew Pallotta, CPA, CA, MBA | 647.253.1194 | mpallotta@echelonpartners.com

Andrew Semple | 416.687.6656 | asemple@echelonpartners.com

Event: We reiterate Green Thumb Industries (“GTI”) as our Top Pick in our coverage universe, and once again nominate GTI to EWP’s Q120 Top Picks Portfolio. As we anticipated in our GTI Q419 Top Pick note, the Company’s share price performance managed to break away from the pack, overcoming sector-wide declines to post impressive double-digit q/q gains. The Company continues to execute on all aspects of the business from an operational perspective, and we continue to favour the business in the context of the current difficult capital markets environment considering management’s intelligent capital allocation practices along with its fully funded balance sheet. The Company’s Q319 results, reported in November, also managed to outpace both our, and consensus, estimates (here).

In our view, GTI remains exceptionally well positioned and de-risked relative to the MSOs we have toured and/or reviewed. The Company has conservatively executed its expansion plans and capital management, helping to insulate itself from the pitfalls of the “land-grab” expansion strategy undertaken by many of its now over-extended peers. The Company has also managed to post some of, if not, the strongest EBITDA margins (19% for Q319) to date for any MSO with a comparably expansive multi-state platform. The strong portfolio of assets also provides excellent visibility towards growth in 2020 and thereafter.

We reiterate our Buy rating, Top Pick status, and target price of C$24.00/shr.

▪ GTI Returned 18.3% in Q419 Compared to its Benchmark Down 6.8% – GTI outperformed

its closest benchmark, the Horizons US Marijuana Index ETF (HMUS-NEOE, NR) by an

impressive 25.1% in Q419. The outperformance was driven by strong Q319 financial results

– that handily beat our, and consensus, estimates – along with continued execution of the

Company’s business plan, and perhaps most importantly, its well-funded balance sheet in

the context of the current difficult capital markets environment for cannabis firms. We

believe its strong capital management practices have been in pivotal factor in the resilience

GTI’s shares have displayed relative to its peers.

Exhibit 1 – Total Share Price Return of US MSOs (>5 States, Q419)

Source: FactSet, Echelon Wealth Partners

Green Thumb Industries Inc.

Doubling Down After Exceptional Outperformance: GTI Our Q120 Top Pick

GTII-CSE: C$12.08

Buy C$24.00 Target

Projected Return: 99%

Valuation: DCF, 15% Discount

Rate, 30x Exit Multiple on FCF

Green Thumb Industries Inc.Market Cap. (PD, $M)

Cash (Pro Forma, PD, $M)

Debt (Pro Forma, PD, $M)

Net Debt (Cash) (Pro Forma, Incl. Leases, $M)

Enterprise Value ($M)

Basic Shares O/S (M, as Converted)

Basic Shares (Pro-forma, M, as Converted)

Partially Diluted Shares (Pro-forma, M, As Converted)

Avg. Daily Volume (M)

52 Week High (C$)

52 Week Low (C$)

Financial Metrics31-Dec

Revenue ($M)

Adj. Gross Margin (%)

Adj. EBITDA ($M)

Valuation Data (based on calendar years)

EV/Sales Current

Target

EV/EBITDA Current

Target

Quarterly Data

Revenue ($M) 2018

2019

Adj. GM (%) 2018

2019

EBITDA ($M) 2018

2019

Company Description

43% 46% 46% 47%

47% 52% 51% 52%

0.2

22.02

9.91

206.5

1,923.2

1,995.7

72.6

105.5

59.7

205.1

205.1

2018A 2019E 2020E

62.5 220.0 481.6

(5.2) 33.7 113.2

46% 51% 53%

31.9x 4.1x

2018A 2019E 2020E

9.1x

64.5x 8.4x18.3x

neg 17.6x59.3x

neg 35.6x

Q1 Q2 Q3 Q4

119.8x

10.9 13.6 17.2 20.8

27.9 44.7 68.0 79.4

(1.2) (0.9) (0.3) (2.8)

(0.7) 5.7 12.7 15.8

Source: Company Reports (historical financials), Echelon

Wealth Partners (estimates), FactSet (share pricing)

Green Thumb Industries is a vertically integrated multi-

state operator (MSO) and a leading player in the US cannabis

industry. The Company owns and operates manufacturing

facilities where it produces and distributes cannabis

consumer products under its own suite of brands which

includes Dogwalkers, Rythm, The Feel Collection and Beboe.

The Company also sells its products through its own

licensed dispensaries which operate under the RISETM and

EssenceTM banners in markets across the country.

0.0

0.2

0.4

0.6

0.8

1.0

$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

Jan-19 Apr-19 Jul-19 Oct-19 Jan-20

Volume (M) Price (C$)

All figures in USD unless otherwise stated

Page 38 of 75

Green Thumb Industries Inc. (GTII-CSE) | January 6 2020

Matthew Pallotta, CPA, CA, MBA | 647.253.1194 | mpallotta@echelonpartners.com

▪ GTI Checks All the Right Boxes – We expect that as more sophisticated capital enters the sector, companies with

stronger operating results, and well-capitalized balance sheets affording optionality for new growth opportunities,

will further decouple from their peers with weaker balance sheets, and exposure to greater financial and

operational risks. Based on its sound financial position and operating profitability, we believe the market should

continue to reward holders of GTI relative to peers.

▪ Business Plan Developing Faster Than Anticipated, Bodes Well for Q419 and Q120 Results – GTI opened 7 new

stores in Q419, compared to the 4 we had forecasted, and had 40 dispensaries in operation as January 1. The

Company has already opened more adult-use stores in the lucrative market of Illinois during Q120 than we had

expected, and we believe it is likely the Company can open an additional three adult-use stores in IL before quarter-

end. We are optimistic on the Company meeting the Q120 milestones we have modeled, including the opening of

its first adult-use store in California, and the opening of the first of eight additional licensed stores in Nevada won

during the December 2018 licensing round.

▪ Eyes on Illinois as Adult-Use Sales Began on January 1st – GTI is one of the few vertically integrated operators in

this attractive limited-license market, where adult-use sales commenced this past week. With two

cultivation/processing facilities and four stores able to sell adult-use product open on January 1st, we expect GTI be

amongst the leaders in adult-use market share in Illinois from the outset. GTI reported severing thousands of adult-

use customers on its first day, and we expect that official industry-wide sales data will be impressive once published

(first day state-wide reported sales were $3.2M, or a run rate of $1.2B, though we do expect this pace will moderate

quickly, as a result of both expected product shortages, as well as the higher than average customer traffic

anticipated on opening day due to the novelty factor and the holiday season). We believe the growth in sales as a

result of Illinois adult-use legalization will be a catalyst for the stock in Q120, as the Company capitalizes on the

new opportunity, and as investors focus on the attractiveness of the Illinois market.

Page 39 of 75

Green Thumb Industries Inc. (GTII-CSE) | January 6 2020

Matthew Pallotta, CPA, CA, MBA | 647.253.1194 | mpallotta@echelonpartners.com

Green Thumb Industries Inc. (GTII-CSE, C$12.08) - Data Sheet Buy | PT: C$24.00Company Description Consensus 3 Mths Ago Current Return

Rating: Buy Buy

Target: C$23.82 C$22.15 83%

Median: C$24.00 C$22.60 87%

High: C$32.18 C$31.31 159%

Low: C$17.02 C$16.62 38%

Consensus Distribution

Sector Outperform/Buy 14

Sector Perform/Hold 0

Sector Underperform/Sell 0

# Est 14

Key Financial Metrics Financial Summary 2018A Q119A Q219A Q319A Q419E 2019E 2020E 2021E Key Statistics Value

Consolidated (US$M) 52-Week High C$22.02 82%

Revenue 62.5 27.9 44.7 68.0 79.4 220.0 481.6 742.3 52-Week Low C$9.91 (18%)

Growth y/y 278% 155% 228% 296% 282% 252% 119% 54% Avg Vol (3-Mo, M) 0.2

Cons. 62.5 27.9 44.7 68.0 75.9 216.9 474.6 728.3 Partially Diluted Shares Outstanding (M) 207

Market Cap (PD, $M) 1,923

Adj. Gross Margin (ex. Biological Assets) 46% 47% 52% 51% 52% 51% 53% 54% Net Debt (PD, $M) 72.6

Cons. 49% 48% 50% 53% 53% 52% 52% 55% Enterprise Value (PD, $M) 1,996

FYE Dec 31

Adjusted EBITDA (5.2) (0.7) 5.7 12.7 15.8 33.7 113.2 224.2

Growth y/y nmf nmf nmf nmf nmf nmf 236% 98% Valuation Multiples Current At Target

Margin (8%) (2%) 13% 19% 20% 15% 23% 30% 2019 9.1x 18.3x

Cons. (6.6) 0.1 5.2 13.8 12.0 33.5 124.9 230.7 2020 4.1x 8.4x

2021 2.7x 5.4x

Adjusted Diluted EPS (C$) ($0.08) ($0.15) ($0.12) ($0.01) ($0.35) $0.11 $0.50 2019 59.3x 119.8x

Growth y/y nmf nmf nmf nmf nmf nmf 356% 2020 17.6x 35.6x

Cons. ($0.08) ($0.16) ($0.11) ($0.04) ($0.36) $0.15 $0.57 2021 8.9x 18.0x

2019 nmf nmf

Net Debt (Incl. Leases) (87.0) (12.6) 61.6 68.9 68.9 95.6 1.0 2020 109.5x 217.6x

FCF (Incl. M&A) (28.3) (72.4) (60.0) (19.2) (179.8) 15.3 143.7 2021 24.0x 47.8x

FCF Yield (6%) (15%) (12%) (4%) (9%) 1% 7%

Return on Invested Capital (ROIC) (5%) (1%) 0% 3% 0% 5% 12%

Return on Equity (ROE) (8%) (10%) (9%) (1%) (6%) 2% 8% Discount RateValuation Sensitivity 13.0% 15.0% 17.0%

Other Metrics 2018A Q119A Q219A Q319A Q419E 2019E 2020E 2021E C$22.19 C$20.24 C$18.50

C$24.14 C$22.02 C$20.12

Return on Assets (ROA) (3%) (6%) (8%) (7%) (1%) (5%) 1% 6% C$26.10 C$23.80 C$21.75

CAPEX (incl. Acquisitions) (83.2) (25.1) (76.5) (73.3) (31.0) (205.9) (77.5) (20.0) C$28.05 C$25.58 C$23.37

Operating Cash Flow (ex. NWC) 4.4 (3.2) 3.7 9.4 15.8 25.7 101.3 170.0 C$30.01 C$27.37 C$25.00

EV/Sales

EV/EBITDA

P/E

RISE Store Concept Sample of Product Brands and Formats

Exit FCF

Multiple

25.0x

27.5x

30.0x

32.5x

35.0x

Green Thumb Industries is a vertically integrated multi-

state operator (MSO) and a leading player in the US

cannabis industry. The Company owns and operates

manufacturing facilities where it produces and distributes

cannabis consumer products under its own suite of brands

which includes Dogwalkers, Rythm, The Feel Collection and

Beboe. The Company also sells its products through its own

licensed dispensaries which operate under the RISETM and

EssenceTM banners in markets across the country.

Active State Presence and Pending Acquisitions

0.0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

Jan-19 Apr-19 Jul-19 Oct-19 Jan-20

Vo

lum

e (M

)

Pri

ce (C

$)

Volume (M) Price (C$)

Page 40 of 75

Green Thumb Industries Inc. (GTII-CSE) | January 6 2020

Matthew Pallotta, CPA, CA, MBA | 647.253.1194 | mpallotta@echelonpartners.com

Important Information and Legal Disclaimers

Echelon Wealth Partners Inc. is a member of IIROC and CIPF. The documents on this website have been prepared for the viewer only as an example of strategy consistent with our recommendations; it is not an offer to buy or sell or a solicitation of an offer to buy or sell any security or instrument or to participate in any particular investing strategy. Any opinions or recommendations expressed herein do not necessarily reflect those of Echelon Wealth Partners Inc. Echelon Wealth Partners Inc. cannot accept any trading instructions via e-mail as the timely receipt of e-mail messages, or their integrity over the Internet, cannot be guaranteed. Dividend yields change as stock prices change, and companies may change or cancel dividend payments in the future. All securities involve varying amounts of risk, and their values will fluctuate, and the fluctuation of foreign currency exchange rates will also impact your investment returns if measured in Canadian Dollars. Past performance does not guarantee future returns, investments may increase or decrease in value and you may lose money. Data from various sources were used in the preparation of these documents; the information is believed but in no way warranted to be reliable, accurate and appropriate. Echelon Wealth Partners Inc. employees may buy and sell shares of the companies that are recommended for their own accounts and for the accounts of other clients.

Echelon Wealth Partners compensates its Research Analysts from a variety of sources. The Research Department is a cost centre and is funded by the business activities of Echelon Wealth Partners including, Institutional Equity Sales and Trading, Retail Sales and Corporate and Investment Banking.

Research Dissemination Policy: All final research reports are disseminated to existing and potential clients of Echelon Wealth Partners Inc. simultaneously in electronic form. Hard copies will be disseminated to any client that has requested to be on the distribution list of Echelon Wealth Partners Inc. Clients may also receive Echelon Wealth Partners Inc. research via third party vendors. To receive Echelon Wealth Partners Inc. research reports, please contact your Registered Representative. Reproduction of any research report in whole or in part without permission is prohibited.

Canadian Disclosures: To make further inquiry related to this report, Canadian residents should contact their Echelon Wealth Partners professional representative. To effect any transaction, Canadian residents should contact their Echelon Wealth Partners Investment advisor.

U.S. Disclosures: This research report was prepared by Echelon Wealth Partners Inc., a member of the Investment Industry Regulatory Organization of Canada and the Canadian Investor Protection Fund. This report does not constitute an offer to sell or the solicitation of an offer to buy any of the securities discussed herein. Echelon Wealth Partners Inc. is not registered as a broker-dealer in the United States and is not be subject to U.S. rules regarding the preparation of research reports and the independence of research analysts. Any resulting transactions should be effected through a U.S. broker-dealer.

U.K. Disclosures: This research report was prepared by Echelon Wealth Partners Inc., a member of the Investment Industry Regulatory Organization of Canada and the Canadian Investor Protection Fund. ECHELON WEALTH PARTNERS INC. IS NOT SUBJECT TO U.K. RULES WITH REGARD TO THE PREPARATION OF RESEARCH REPORTS AND THE INDEPENDENCE OF ANALYSTS. The contents hereof are intended solely for the use of, and may only be issued or passed onto persons described in part VI of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2001. This report does not constitute an offer to sell or the solicitation of an offer to buy any of the securities discussed herein.

Copyright: This report may not be reproduced in whole or in part, or further distributed or published or referred to in any manner whatsoever, nor may the information, opinions or conclusions contained in it be referred to without in each case the prior express written consent of Echelon Wealth Partners.

ANALYST CERTIFICATION

Company: Green Thumb Industries Inc. | CSE:GTII I, Matthew Pallotta, hereby certify that the views expressed in this report accurately reflect my personal views about the subject securities or issuers. I also certify that I have not, am not, and will not receive, directly or indirectly, compensation in exchange for expressing the specific recommendations or views in this report. IMPORTANT DISCLOSURES

Is this an issuer related or industry related publication? Issuer

Does the Analyst or any member of the Analyst’s household have a financial interest in the securities of the subject issuer? If Yes: 1) Is it a long or short position? No Position; and, 2) What type of security is it? None.

No

The name of any partner, director, officer, employee or agent of the Dealer Member who is an officer, director or employee of the issuer, or who serves in any advisory capacity to the issuer.

No

Does Echelon Wealth Partners Inc. or the Analyst have any actual material conflicts of interest with the issuer? No

Does Echelon Wealth Partners Inc. and/or one or more entities affiliated with Echelon Wealth Partners Inc. beneficially own common shares (or any other class of common equity securities) of this issuer which constitutes more than 1% of the presently issued and outstanding shares of the issuer?

No

During the last 12 months, has Echelon Wealth Partners Inc. provided financial advice to and/or, either on its own or as a syndicate member, participated in a public offering, or private placement of securities of this issuer?

No

During the last 12 months, has Echelon Wealth Partners Inc. received compensation for having provided investment banking or related services to this Issuer? No

Has the Analyst had an onsite visit with the Issuer within the last 12 months? (May 2019, Joliet, IL production facility and head offices in Chicago, IL) Yes

Has the Analyst or any Partner, Director or Officer been compensated for travel expenses incurred as a result of an onsite visit with the Issuer within the last 12 months? No

Has the Analyst received any compensation from the subject company in the past 12 months? No

Is Echelon Wealth Partners Inc. a market maker in the issuer’s securities at the date of this report? No

Page 41 of 75

Green Thumb Industries Inc. (GTII-CSE) | January 6 2020

Matthew Pallotta, CPA, CA, MBA | 647.253.1194 | mpallotta@echelonpartners.com

RATING DEFINITIONS

Buy The security represents attractive relative value and is expected to appreciate significantly from the current price over the next 12 month time horizon.

Speculative Buy The security is considered a BUY but in the analyst’s opinion possesses certain operational and/or financial risks that are higher than average.

Hold The security represents fair value and no material appreciation is expected over the next 12-18 month time horizon.

Sell The security represents poor value and is expected to depreciate over the next 12 month time horizon.

Under Review While not a rating, this designates the existing rating and/or forecasts are subject to specific review usually due to a material event or share price move.

Tender Echelon Wealth Partners recommends that investors tender to an existing public offer for the securities in the absence of a superior competing offer.

Dropped Coverage Applies to former coverage names where a current analyst has dropped coverage. Echelon Wealth Partners will provide notice to investors whenever coverage of an issuer is dropped.

RATINGS DISTRIBUTION

Recommendation Hierarchy Buy Speculative Buy Hold Sell Under Review Restricted Tender

Number of recommendations 49 42 18 1 7 0 4

% of Total (excluding Restricted) 42% 36% 15% 1% 6%

Number of investment banking relationships 15 19 5 0 2 0 0

% of Total (excluding Restricted) 37% 46% 12% 0% 5%

PRICE CHART, RATING & PRICE TARGET HISTORY

Date Target Rating

12 Aug 2019 C$24.00 Buy

Coverage Initiated: Aug 12, 2019

Data sourced from: FactSet

C$0.00

C$5.00

C$10.00

C$15.00

C$20.00

C$25.00

C$30.00

Jan 19 Feb 19 Mar 19 Apr 19 May 19 Jun 19 Jul 19 Aug 19 Sep 19 Oct 19 Nov 19 Dec 19 Jan 20

Green Thumb Industries Inc. (GTII-CNQ)

Price Price Target Revisions

Page 42 of 75

January 7, 2020

Special Situations

Amr Ezzat | 514.396.3614 | Amr.Ezzat@echelonpartners.com

Bottom line: We are anointing Photon Control (“Photon” or the “Company”) as one of Echelon’s Top Picks. We believe Photon presents exceptional risk-reward characteristics at current levels. Namely, with end-markets in a full upswing and $0.32/shr in cash on the balance sheet, we expect limited downside and an upward bias to our forecasts. Furthermore, we see solid FCF generation driving the Company’s cash balance to $0.39/shr by year end. Our forecasted EBITDA growth of 24.2% in 2020 on 10.7% top line growth, help sustain the Company’s healthy ROIC. Catalysts include a substantial jump in quarterly revenues/earnings relative to soft comparable quarters last year, as well as the potential for M&A activity. Our DCF-derived $1.75/shr target price provides for 35% return from current levels. Further industry strength can shift our forecasts and target price materially higher.

Contextualizing Photon’s current valuation: As we pointed in October 2019, rapidly improving industry fundamentals have yet to be reflected in Photon’s estimates and valuation (see note here). Recent earnings announcements and conference call commentary by Lam Research (LRCX-NASDAQ, NR), Applied Materials (AMAT-NASDAQ, NR), TSMC (2330-TSEC, NR), Tokyo Electron (8035-TYO, NR), and KLA Corp (KLAC-NASDAQ, NR) all point to a bottoming of the cycle and a much more constructive outlook for 2020. All the aforementioned stocks are close to or at all-time highs while Photon’s shares are down ~46% from its summer 2018 high.

On the earnings power front, Q219’s EBITDA of $1.2M is the trough in our mind. We expect that in an upcycle, PHO’s quarterly EBITDA will surpass last year’s Q218 peak of $5.1M with minimal capital investment. That implies current valuation of 21.2x trough EBITDA and 5.0x peak EBITDA. We believe the Company’s products are still not fully entrenched within its customer base, providing for further growth beyond industry dynamics (and beyond its last peak!).

Q319 results point to an uptick in activity: The Company’s strong earnings beat and conference call in early November reflect the increased industry confidence. Concretely, the Company announced (i) the cancelling of plans to shut down its production facilities for two weeks during the vacation period, as well as (ii) its intention to deliberately build inventory through Q419 ahead of an active 2020. Both the latter moves are tangible and definitive signs that rosier days are indeed ahead.

Sales/EBITDA came in at $8.7M/$2.4M (27.9% margin), up 23.0%/102.7% sequentially from trough Q219 levels. We went into the quarter calling for sales/EBITDA of $7.5M/$1.4M (18.3% margin). The Company had guided to sales of $6.5-8.5M and EBITDA margins of 17-21%. The increase in revenues was partly driven by a new supplier in Asia building inventory as well as improving market conditions in the semiconductor industry. EBITDA outperformance was namely due to the sales beat and exceptional cost control. GM% came in at a strong 54.8%, in line with last quarter, while opex came in $0.6M lower than last quarter’s $3.0M.

The Company’s free cash flow came in at an impressive $3.8M during the quarter (includes a $1.7M working capital contribution) vs. last quarter’s -$1.8M (includes a -$2.3M working capital drag). Cash balance ended at $34.0M (vs. 31.4M last quarter) on the positive free cash flow.

Photon Control Inc.

Compelling Valuation & Industry Strength. Introducing as Top Pick.

PHO-TSX: $1.30

Buy $1.75 Target

Projected Total Return: 34.6%

Valuation: DCF (12.0% discount,

3.0% GRIP)

Market Data

Market Cap. ($M) 135.9

Net Cash ($M) 34.0

EV ($M) 101.8

Basic Shares S/O (M) 104.5

Diluted Shares S/O (M) 104.5

Avg. Daily Volume (K) 123.2

52 Week Range $0.82 - $1.57

Dividend Yield 0.0%

Revisions Current Old

2020E Revenue ($M) 36.0 NC

2020E Adj. EBITDA ($M) 8.2 NC

2020E EPS $0.041 NC

Financial Metrics

FYE Dec 31 2016A 2017A 2018A 2019E 2020E

Revenue ($M) 32.2 43.8 46.7 32.5 36.0

Y/Y Growth 16.7% 36.2% 6.6% -30.4% 10.7%

Adj. EBITDA ($M) 9.7 14.3 15.4 6.6 8.2

Margin 30.0% 32.6% 32.9% 20.2% 22.7%

EPS FD $0.06 $0.05 $0.10 $0.03 $0.04

Valuation Data

FYE Dec 31 2016A 2017A 2018A 2019E 2020E

EV/Sales 3.2x 2.3x 2.2x 3.1x 2.8x

EV/EBITDA 10.6x 7.1x 6.6x 15.5x 12.5x

P/E 22.7x 26.7x 13.6x 49.9x 31.8x

P/E (ex-cash) 17.0x 20.0x 10.2x 37.4x 23.8x

Quarterly Data

Q1 Q2 Q3 Q4

Rev. '18 ($M) 13.9 14.6 10.1 8.2

Rev. '19 ($M) 8.0 7.1 8.7 8.6

Adj. EBITDA '18 ($M) 4.7 5.1 3.0 2.5

Adj. EBITDA '19 ($M) 1.5 1.2 2.4 1.9

FD EPS '18 0.03 0.0 0.01 0.02

FD EPS '19 0.00 0.0 0.01 0.01

Company Description

Photon is a precision measurement solutions company,

designing, manufacturing and distributing a range of

optical sensors and instruments to measure

temperature, pressure, position, and flow. The

Company’s products are primarily used by manufacturers

of Wafer Fabrication Equipment (WFE) to the

semiconductor industry. The Company also caters to the

oil and gas, life science, and manufacturing industries.

The Company was originally formed in 1988 and went

public in 2000. Photon is based in Richmond, BC.

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Page 43 of 75

Photon Control Inc. (PHO-TSX) | January 7, 2020

Amr Ezzat | 514.396.3614 | Amr.Ezzat@echelonpartners.com

Photon Control Inc. (PHO-T, $1.30) - Data Sheet BUY | PT: $1.75

Company Description Consensus 3 Mths Ago Current Return

Rating: na na na

Target: na na na

Median: na na na

High: na na na

Low: na na naConsensus Distribution

Sector Outperform/Buy na na

Sector Perform/Hold na na

Sector Underperform/Sell na na

# Estimates na na

Historical Valuation

LTM EV/EBITDA LTM EV/Sales

Key Financial Metrics (in $M, except EPS)Financial Summary 2016A 2017A 2018A Q119A Q219A Q319A Q419E 2019E 2020E Key Statistics Value

Revenue 32.2 43.8 46.7 8.0 7.1 8.7 8.6 32.5 36.0 52-Week High $1.57 21%

Growth y/y 16.7% 36.2% 6.6% (42.0%) (51.2%) (13.0%) 5.0% (30.4%) 10.7% 52-Week Low $0.82 (37%)

Cons. NA NA NA NA NA NA NA NA NA Avg Vol (3-Mo) 126K

Cons. 3 Mts. Ago NA NA NA NA NA NA NA NA NA Shares Outstanding (basic) 105M

Gross Profit 16.2 23.3 25.6 4.2 3.9 4.8 4.3 17.2 19.3 Market Cap $136M

Margin 50.4% 53.2% 54.9% 52.7% 54.8% 54.8% 50.0% 53.0% 53.5% Net Debt (Net Cash) -$34M

Cons. NA NA NA NA NA NA NA NA NA Enterprise Value $102M

Cons. 3 Mts. Ago NA NA NA NA NA NA NA NA NA Div Yield 0.0%

Adjusted EBITDA 9.7 14.3 15.4 1.5 1.2 2.4 1.9 6.6 8.2 FYE Dec 31

Margin 30.0% 32.6% 32.9% 18.5% 16.9% 27.9% 22.2% 20.2% 22.7% Employees ~100

Cons. NA NA NA NA NA NA NA NA NA

Cons. 3 Mts. Ago NA NA NA NA NA NA NA NA NA

Diluted EPS 0.06 0.05 0.10 0.00 0.00 0.01 0.01 0.03 0.04 Top Ownership M Shares ∆ 6 Mnths % Held

Growth y/y -30% -15% 96% -97% -97% 30% -56% -73% 57% Mawer Investment Management Limited10.56 0.00 10.1%

Cons. NA NA NA NA NA NA NA NA NA Franklin Resources, Inc. 3.05 0.00 2.9%

Cons. 3 Mts. Ago NA NA NA NA NA NA NA NA NA PenderFund Capital Management Ltd. 1.84 0.00 1.8%

BMO Global Asset Management 1.36 0.00 1.3%

Other Metrics 2016E 2017A 2018E Q119A Q219A Q319A Q419E 2019E 2020E HSBC Global Asset Management (UK) Limited0.94 0.00 0.9%

Free Cash Flow 7.1 1.3 12.0 -2.3 -1.8 3.8 0.1 -0.3 6.7 Spartan Fund Management Inc. 0.62 0.00 0.6%

/ shr 0.06 0.01 0.11 0.02- 0.02- 0.04 0.00 0.00- 0.06 Dimensional Fund Advisors L.P. 0.57 0.00 0.5%

/ market cap 5% 1% 8% -2% -1% 3% 0% 0% 5% BlackRock, Inc. 0.33 0.00 0.3%

Cash Balance 32.5 34.3 42.4 37.3 31.4 34.0 34.0 34.0 40.6

/ shr 0.29 0.30 0.38 0.34 0.29 0.32 0.33 0.32 0.39

/ market cap 22% 23% 29% 26% 23% 25% 25% 25% 30%

Return EV / Sales EV / EBITDA P / E LTM EBITDA Rev. Growth Dividend LTM

1 Week 1 Month 3 Month YTD 1 Year LTM NTM LTM NTM LTM NTM Margin 2-Yr Est. Yield ROE

Wafer Fabrication Equipment / Semi Cap Equipment

ASML Holding N.V. 1.5% 6.0% 18.4% 1.5% 95.3% 10.2x 8.2x 40.8x 23.9x 49.4x 28.6x 24.5% 10.4% 0.8% 19.3%

Applied Materials, Inc. (1.5%) 6.2% 18.7% (1.5%) 75.3% 3.9x 3.4x 15.2x 12.5x 20.9x 16.0x 25.4% 10.5% 1.4% 35.9%

KLA Corporation (1.8%) 7.5% 8.7% (1.8%) 89.0% 6.0x 5.1x 17.6x 13.0x 24.6x 17.3x 34.2% 14.5% 1.9% 53.0%

Lam Research Corporation (1.1%) 7.2% 24.6% (1.1%) 107.6% 4.3x 4.0x 15.1x 13.1x 21.3x 17.8x 28.5% 7.1% 1.6% 41.4%

Tokyo Electron Limited (1.7%) 4.6% 12.8% (1.7%) 86.0% 3.0x 2.9x 12.5x 11.5x 20.0x 19.5x 24.1% -3.8% 2.3% 23.2%

Hitachi High-Technologies Corporation 1.9% 7.5% 23.5% 1.9% 128.4% 1.2x 1.2x 10.9x 10.4x 23.3x 22.1x 10.9% -0.9% 1.5% 11.1%

Median (1.3%) 6.7% 18.6% (1.3%) 92.2% 4.1x 3.7x 15.2x 12.8x 22.3x 18.6x 25.0% 8.7% 1.5% 29.6%

WFE Component Suppliers

MKS Instruments, Inc. (3.7%) (2.1%) 15.9% (3.7%) 55.6% 3.4x 3.1x 15.7x 14.0x 34.4x 19.2x 21.5% 0.0% 0.8% 8.9%

Advanced Energy Industries, Inc. (2.1%) 6.8% 25.5% (2.1%) 58.3% 4.6x 2.2x 33.1x 18.4x 41.0x 21.9x 13.9% 33.5% - 10.4%

Brooks Automation, Inc. (3.1%) (1.2%) 8.2% (3.1%) 54.5% 3.4x 3.0x 24.1x 15.4x NM 32.0x 14.0% 11.5% 1.0% 1.0%

Ultra Clean Holdings, Inc. (6.9%) (0.9%) 51.0% (6.9%) 133.4% 1.0x 1.0x 11.9x N/A NM 17.8x 8.7% 1.5% - 0.4%

Median (3.4%) (1.0%) 20.7% (3.4%) 57.0% 3.4x 2.6x 19.9x 15.4x 37.7x 20.5x 14.0% 6.5% 0.4% 5.0%

Photon Control (Street) (5.8%) 22.6% 41.3% (5.8%) 14.0% 3.2x 3.0x 16.8x 12.9x 32.0x 31.5x 19.2% -12.5% - 8.5%

Source: Consensus data - CapitalIQ, Historical Data – Company Filings, Forecasts/estimates – Echelon Wealth Partners

Photon is a precision measurement solutions company,

designing, manufacturing and distributing a range of

optical sensors and instruments to measure temperature,

pressure, position, and flow. The Company’s products are

primarily used by manufacturers of Wafer Fabrication

Equipment (WFE) to the semiconductor industry. The

Company also caters to the oil and gas, life science, and

manufacturing industries. The Company was originally

formed in 1988 and went public in 2000. Photon is based in

Richmond, BC.

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Page 44 of 75

Photon Control Inc. (PHO-TSX) | January 7, 2020

Amr Ezzat | 514.396.3614 | Amr.Ezzat@echelonpartners.com

Important Information and Legal Disclaimers

Echelon Wealth Partners Inc. is a member of IIROC and CIPF. The documents on this website have been prepared for the viewer only as an example of strategy consistent with our recommendations; it is not an offer to buy or sell or a solicitation of an offer to buy or sell any security or instrument or to participate in any particular investing strategy. Any opinions or recommendations expressed herein do not necessarily reflect those of Echelon Wealth Partners Inc. Echelon Wealth Partners Inc. cannot accept any trading instructions via e-mail as the timely receipt of e-mail messages, or their integrity over the Internet, cannot be guaranteed. Dividend yields change as stock prices change, and companies may change or cancel dividend payments in the future. All securities involve varying amounts of risk, and their values will fluctuate, and the fluctuation of foreign currency exchange rates will also impact your investment returns if measured in Canadian Dollars. Past performance does not guarantee future returns, investments may increase or decrease in value and you may lose money. Data from various sources were used in the preparation of these documents; the information is believed but in no way warranted to be reliable, accurate and appropriate. Echelon Wealth Partners Inc. employees may buy and sell shares of the companies that are recommended for their own accounts and for the accounts of other clients.

Echelon Wealth Partners compensates its Research Analysts from a variety of sources. The Research Department is a cost centre and is funded by the business activities of Echelon Wealth Partners including, Institutional Equity Sales and Trading, Retail Sales and Corporate and Investment Banking.

Research Dissemination Policy: All final research reports are disseminated to existing and potential clients of Echelon Wealth Partners Inc. simultaneously in electronic form. Hard copies will be disseminated to any client that has requested to be on the distribution list of Echelon Wealth Partners Inc. Clients may also receive Echelon Wealth Partners Inc. research via third party vendors. To receive Echelon Wealth Partners Inc. research reports, please contact your Registered Representative. Reproduction of any research report in whole or in part without permission is prohibited.

Canadian Disclosures: To make further inquiry related to this report, Canadian residents should contact their Echelon Wealth Partners professional representative. To effect any transaction, Canadian residents should contact their Echelon Wealth Partners Investment advisor.

U.S. Disclosures: This research report was prepared by Echelon Wealth Partners Inc., a member of the Investment Industry Regulatory Organization of Canada and the Canadian Investor Protection Fund. This report does not constitute an offer to sell or the solicitation of an offer to buy any of the securities discussed herein. Echelon Wealth Partners Inc. is not registered as a broker-dealer in the United States and is not be subject to U.S. rules regarding the preparation of research reports and the independence of research analysts. Any resulting transactions should be effected through a U.S. broker-dealer.

U.K. Disclosures: This research report was prepared by Echelon Wealth Partners Inc., a member of the Investment Industry Regulatory Organization of Canada and the Canadian Investor Protection Fund. ECHELON WEALTH PARTNERS INC. IS NOT SUBJECT TO U.K. RULES WITH REGARD TO THE PREPARATION OF RESEARCH REPORTS AND THE INDEPENDENCE OF ANALYSTS. The contents hereof are intended solely for the use of, and may only be issued or passed onto persons described in part VI of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2001. This report does not constitute an offer to sell or the solicitation of an offer to buy any of the securities discussed herein.

Copyright: This report may not be reproduced in whole or in part, or further distributed or published or referred to in any manner whatsoever, nor may the information, opinions or conclusions contained in it be referred to without in each case the prior express written consent of Echelon Wealth Partners.

ANALYST CERTIFICATION

Company: Photon Control Inc.| PHO:TSX I, Amr Ezzat, hereby certify that the views expressed in this report accurately reflect my personal views about the subject securities or issuers. I also certify that I have not, am not, and will not receive, directly or indirectly, compensation in exchange for expressing the specific recommendations or views in this report. IMPORTANT DISCLOSURES

Is this an issuer related or industry related publication? Issuer

Does the Analyst or any member of the Analyst’s household have a financial interest in the securities of the subject issuer? If Yes: 1) Is it a long or short position? No Position; and, 2) What type of security is it? None.

No

The name of any partner, director, officer, employee or agent of the Dealer Member who is an officer, director or employee of the issuer, or who serves in any advisory capacity to the issuer.

No

Does Echelon Wealth Partners Inc. or the Analyst have any actual material conflicts of interest with the issuer? No

Does Echelon Wealth Partners Inc. and/or one or more entities affiliated with Echelon Wealth Partners Inc. beneficially own common shares (or any other class of common equity securities) of this issuer which constitutes more than 1% of the presently issued and outstanding shares of the issuer?

No

During the last 12 months, has Echelon Wealth Partners Inc. provided financial advice to and/or, either on its own or as a syndicate member, participated in a public offering, or private placement of securities of this issuer?

No

During the last 12 months, has Echelon Wealth Partners Inc. received compensation for having provided investment banking or related services to this Issuer? No

Has the Analyst had an onsite visit with the Issuer within the last 12 months? Richmond, BC head office visit (November 25, 2019) Yes

Has the Analyst or any Partner, Director or Officer been compensated for travel expenses incurred as a result of an onsite visit with the Issuer within the last 12 months? No

Has the Analyst received any compensation from the subject company in the past 12 months? No

Is Echelon Wealth Partners Inc. a market maker in the issuer’s securities at the date of this report? No

Page 45 of 75

Photon Control Inc. (PHO-TSX) | January 7, 2020

Amr Ezzat | 514.396.3614 | Amr.Ezzat@echelonpartners.com

RATING DEFINITIONS

Buy The security represents attractive relative value and is expected to appreciate significantly from the current price over the next 12 month time horizon.

Speculative Buy The security is considered a BUY but in the analyst’s opinion possesses certain operational and/or financial risks that are higher than average.

Hold The security represents fair value and no material appreciation is expected over the next 12-18 month time horizon.

Sell The security represents poor value and is expected to depreciate over the next 12 month time horizon.

Under Review While not a rating, this designates the existing rating and/or forecasts are subject to specific review usually due to a material event or share price move.

Tender Echelon Wealth Partners recommends that investors tender to an existing public offer for the securities in the absence of a superior competing offer.

Dropped Coverage

Applies to former coverage names where a current analyst has dropped coverage. Echelon Wealth Partners will provide notice to investors whenever coverage of an issuer is dropped.

RATINGS DISTRIBUTION

Recommendation Hierarchy Buy Speculative Buy Hold Sell Under Review Restricted Tender

Number of recommendations 50 42 18 1 7 0 4

% of Total (excluding Restricted) 42% 36% 15% 1% 6%

Number of investment banking relationships 14 19 5 0 2 0 0

% of Total (excluding Restricted) 35% 48% 13% 0% 5%

PRICE CHART, RATING & PRICE TARGET HISTORY

Date Target (C$) Rating

30 Oct 2015 $1.00 Buy

1 Apr 2016 $1.10 Buy

31 May 2016 $1.15 Buy

28 Jun 2016 $1.05 Buy

24 Aug 2016 $1.00 Buy

21 Dec 2016 $1.30 Buy

17 Feb 2017 $1.50 Buy

10 Apr 2017 $2.00 Buy

9 Nov 2017 $2.25 Buy

24 Jan 2018 $2.75 Buy

15 Mar 2018 $3.00 Buy

10 May 2018 $3.25 Buy

11 Oct 2018 $3.00 Buy

8 Nov 2018 $2.50 Buy

4 Mar 2019 $2.00 Buy

9 May 2019 $1.75 Buy

Coverage Initiated: Oct 30, 2015 Data sourced from: Capital IQ 8 Aug 2019 $1.65 Buy

6 Nov 2019 $1.75 Buy

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Photon Control Inc. (TSX:PHO)

Target (C$)

Page 46 of 75

January 8, 2020

Technology – IT Services

Gianluca Tucci | 647.794.1926 | gtucci@echelonpartners.com

Event: We are introducing PTG as our Top Pick. All figures are in US$ unless otherwise noted.

Investment Thesis: We believe PTG is laser focused on shareholder value creation, with much of its legacy hindrances in the rear-view mirror and a much cleaned up balance sheet to begin 2020. Pivot continues to deliver robust Adj. EBITDA & cash-flow as it migrates to a more value-add revenue base with higher margins. Recent optimizations to drive operating efficiencies will become more evident with y/y growth in EBITDA and EPS while the removal of Smart Edge costs as of the end of October generates additional savings. We believe much of the core legacy/integration issues at Pivot have been addressed and the Company is in a much better position today to focus on shareholder value creation. We look for Q120 to be the first full clean quarter of opex without Smart Edge related expenses. We note cash flow and gross profit remain healthy and we believe the dividend to be secure.

Pivot now benefits from a preferred Edge services partnership agreement with its sale announcement to Intel. We believe the partnership will lead to other rewarding service opportunities in the way data is managed and collected. We believe early fruits of this partnership should materialise in H220. We weigh the probability of services growth, margin growth, earnings and cash flow growth over time as potential catalysts to rerate the equity from its current materially discounted level to levels more in-line with its peers. The Company’s focus lies in cash flow generation and quality earnings. We believe the risk/reward at current valuation is quite compelling and worthy of Top Pick status entering 2020. We maintain our BUY rating and our 12-month DCF based price target of C$3.30; Top Pick.

Everyone Loves Free Cash Flow, Especially Private Equity: It was reported in November 2019 that a large VAR, Tech Data (TECD-US, NR), was approached by Warren Buffet’s Berkshire Hathaway (BRK.B-US, NR) to be acquired for $140/sh, but was outbid by private equity firm Apollo (APO-US, NR) in a $145/sh, $5.8B transaction. The offer values TECD at 0.2x LTM EV/Rev, 7.6x LTM EV/EBITDA and 9.7x LTM FCF. Applying the same EV/EBITDA multiple to our 2019E EBITDA yields a C$3.20 equity value to PTG and applying the same FCF multiple to our 2019E Adj. FCF yields an equity value north of C$4.10/sh. We note PTG has a 2019/2020 current Adj. FCF Yield of 40% and 29%, respectively – 2019 being skewed due to the lump sum cash infusion from the Smart Edge sale booked in Q419.

Dividend Secure, Time for a Rerating: We believe its C$0.16/sh/yr dividend to be funded, secure, and a robust source of income in an interest rate deprived macro environment. Pro forma the Smart Edge sale, we are calling for a 2019E and 2020E distribution payout ratio of 20% and 29%, respectively. While we believe the Company has the dry powder available to increase its dividend, we view the present probability as unlikely at its current yield and believe the focus will be to use excess free cash flow to repay debt. We believe as the next few 2020 quarterly financials are released and investors witness the continued improvement in cash flow and earnings, the marketplace should start to place less risk on the dividend and its resulting yield.

Acquisitive Growth on the Horizon?: We note the Company has mentioned in recent conference calls that it has the flexibility to consider a potential return to strategic, acquisitive growth. PTG has not acquired since 2016 when it acquired TeraMach. We believe that should

PTG-TSX: C$1.91

Buy C$3.30 Target

Pivot Technology Solutions Inc.

Rerating Potential in 2020 Seen as Likely with Value Creation Top of Mind; Everyone Loves Free Cash Flow; Top Pick.

Source: Consensus Data – FactSet,

Historicals – Company Filings,

Forecasts/Estimates – Echelon Wealth

Partners

Projected Total Return: 81%

PTG-TSX: C$1.91

Buy C$3.30 Target

Page 47 of 75 Gianluca Tucci | 647.794.1926 | gtucci@echelonpartners.com

Pivot Technology Solutions Inc. (PTG-TSX) | January 8, 2020

the Company find a niche services Company to acquire, it would be one of very strategic merit and likely financed via a combination of upfront cash, stock and deferred earn-out. We look for more commentary surrounding this topic in subsequent quarterly conference calls. The Company’s balance sheet and operating structure is much cleaned up and we believe can support a return to acquisitive growth.

Smart Edge Sale Yields Many Benefits: Pivot recently announced the sale of Smart Edge to Intel (INTC-US, NR) and a Preferred Partnership – see full details in our recent note here – PTG expects to book a pre-tax gain of $21-23M in Q419. In addition to the sale, Pivot was recently selected for the Intel Network Builder's Winners' Circle program as a Leaders Board Partner for its Pivot Edge services. Intel Network Builders is an ecosystem of partners coming together to accelerate the adoption of network functions virtualization – and software-defined networking-based solutions in telecommunications networks and public, private enterprise and hybrid clouds. We view this accolade as a vote of confidence from Intel in Pivot as a capable edge services provider.

Leadership Position in Edge Computing: A highlight from the recent AGM was the vision CEO Kevin Shank shared of Pivot becoming the “Number 1 Edge Services Provider in North America”. According to a survey conducted by ZDNet, 75.9% of businesses noted that Edge Computing is Important, Very Important, or Critically Important to improving business processes and productivity. Cisco estimates that there will be 10B mobile connected devices by 2019 and 30B IoT devices connected to internet by 2020. The proliferation of connected devices at the network edge disrupts traditional WAN services and provides a very compelling case for Pivot to have a fortitude in Edge deployed and managed services. See our full AGM note here.

Cost Reductions: PTG continues to make rapid progress on its cost saving initiatives as part of its transformation, having eliminated over $8M in annual cost from the business as of Q319 against its initial target of $5M. We are inclined to believe there is room to cut additional cost from the business in H120. The Company continues to focus on quality revenue as evidenced by the recent uplift in margins and tighter integration of its subsidiaries – of note PTG plans to combine certain US wholly owned subsidiaries into a single Pivot brand which will allow centralized functions and will generate additional cost reductions and improve efficiencies.

Valuation: Our C$3.30 PT values PTG on a 2020 EV/Rev, EV/Adj. EBITDA, P/E of 0.17x/6.8x/15.5x, respectively. PTG currently trades at a proforma 2020 EV/Rev, EV/Adj. EBITDA, P/E of 0.13x/5.3x/9.0x, respectively, versus its peer averages of 0.73x/11.6x/16.1x, respectively, and currently trades at a 2019 and 2020 Adj. FCF yield of 40% and 29%, respectively.

Page 48 of 75 Gianluca Tucci | 647.794.1926 | gtucci@echelonpartners.com

Pivot Technology Solutions Inc. (PTG-TSX) | January 8, 2020

Valuation

On proforma 2020E, PTG is currently trading at an EV/Sales, EV/EBITDA, and P/E of 0.13x, 5.3x, and 9.0x, respectively, versus its comparables average of 0.73x, 11.6, and 16.1x, respectively.

Exhibit 1 – Global Value Added Resellers (VARs) Comparables

Source: Consensus Data – FactSet

Canadian Technology Dividend Stocks

At the current share price, the dividend results in a yield of ~8.4%. If the yield were to move to the average yield shown below (~2.6%), the shares would be trading at the ~C$6.15 level.

Exhibit 2 – Canadian Technology Dividend Yields

Source: Consensus Data – FactSet, Echelon Wealth Partners estimates, note that TCS is covered by Amr Ezzat.

GLOBAL VAR / IT SERVICES COMPS

Mkt Cap LTM Rev LTM GM EV/Sales EV/EBITDA P/E

Ticker Price (Local$M) (US$M) % 2018 2019 2020 2018 2019 2020 2018 2019 2020

Pivot Technology Solutions, Inc. PTG-CA 1.91 76 1,213 12.3 0.15 0.17 0.16 12.9 7.5 6.3 NM 4.4 6.7

Tech Data Corporation TECD 143.97 5,100 37,082 6.2 0.16 0.16 0.16 7.6 7.5 7.2 12.7 11.5 10.9

SYNNEX Corporation SNX 127.36 6,505 22,798 12.0 0.48 0.41 0.41 11.6 7.4 7.2 11.7 10.1 9.7

Insight Enterprises, Inc. NSIT 71.67 2,527 7,183 14.1 0.50 0.46 0.38 12.5 10.8 8.8 15.5 13.1 11.4

ScanSource, Inc. SCSC 36.20 915 3,907 10.7 0.34 0.33 0.36 9.1 8.8 9.3 11.6 10.8 12.0

Datatec Limited DTC-JSE 32.92 6,812 6,083 15.3 NM NM NM NM NM NM NM NM NM

Softcat Plc SCT-GB 11.58 2,298 1,313 21.3 2.06 2.24 2.01 31.1 25.9 24.2 40.2 33.7 31.8

CDW Corp. CDW 140.92 20,248 17,570 16.8 1.50 1.36 1.29 18.8 17.2 16.0 27.3 23.4 21.5

PC Connection, Inc. CNXN 55.37 1,457 2,813 15.2 0.51 0.49 0.47 13.6 11.0 10.8 23.4 18.1 17.4

ePlus inc. PLUS 84.82 1,146 1,450 22.9 0.86 0.76 0.74 11.7 10.0 9.5 16.6 15.1 14.3

AVERAGES: 15.0 0.80 0.78 0.73 14.5 12.3 11.6 19.9 17.0 16.1

CANADA TECH DIV YIELDS

Ticker Price Mkt Cap LTM Rev EV/Sales EV/EBITDA P/E Div

(Local) (US$) (US$) 2018 2019 2020 2018 2019 2020 2018 2019 2020 Yield

Constellation Software Inc. CSU-CA 1326.24 21,614 3,366 7.0 6.3 5.4 27.5 23.6 20.1 35.3 35.6 28.3 0.4%

Open Text Corporation OTEX-CA 58.11 12,084 2,899 5.0 4.8 4.6 13.9 12.5 12.0 17.5 15.9 15.1 1.6%

Enghouse Systems Limited ENGH-CA 52.22 2,197 290 7.9 7.1 5.4 25.7 23.5 18.6 49.5 40.5 35.2 0.8%

Altus Group Limited AIF-CA 38.91 1,202 414 3.4 3.1 2.8 24.5 20.1 17.5 37.1 28.4 25.1 1.5%

Evertz Technologies Limited ET-CA 17.70 1,046 340 3.1 3.0 2.8 12.3 11.9 10.9 17.9 17.1 15.7 4.1%

Pollard Banknote Limited PBL-CA 20.30 400 277 2.0 1.7 1.5 13.5 11.0 9.9 32.4 23.0 21.7 0.8%

Computer Modelling Group Ltd. CMG-CA 8.07 498 59 8.6 8.4 8.0 20.3 17.8 17.2 28.8 28.9 28.0 5.0%

Absolute Software Corporation ABT-CA 8.96 289 100 2.9 2.7 2.6 29.6 13.9 12.6 NM 37.4 32.5 3.6%

Calian Group Ltd. CGY-CA 38.73 236 259 1.0 0.9 0.8 12.0 11.1 9.2 18.7 15.2 16.7 2.9%

Sylogist Ltd. SYZ-CA 9.55 175 29 NM NM NM NM NM NM NM NM NM 4.2%

TECSYS Inc. TCS-CA 21.85 220 69 3.9 2.9 2.7 118.6 28.7 23.9 NM 102.4 52.0 1.1%

Vecima Networks Inc. VCM-CA 10.35 178 63 2.5 2.3 2.1 13.6 24.1 23.5 60.9 NM NM 2.1%

Quarterhill Inc QTRH-CA 1.74 159 133 1.2 0.7 0.9 NM NM 5.3 NM NM 14.9 2.9%

Mediagrif Interactive Technologies Inc. MDF-CA 6.71 78 60 1.3 1.4 NM 5.0 6.9 NM 10.5 15.6 NM 6.0%

C-COM Satellite Systems, Inc. CMI-CA 1.81 53 9 NM NM NM NM NM NM NM NM NM 2.8%

Pivot Technology Solutions, Inc. PTG-CA 1.91 58 1,213 0.1 0.2 0.2 12.9 7.5 6.3 NM 4.4 6.7 8.4%

Averages: 3.8 3.5 3.3 26.4 17.1 15.1 30.9 32.7 25.9 3.0%

Avg (Excl. PTG): 2.6%

Page 49 of 75 Gianluca Tucci | 647.794.1926 | gtucci@echelonpartners.com

Pivot Technology Solutions Inc. (PTG-TSX) | January 8, 2020

Pivot Technology Solutions Inc. – Tear Sheet (PTG-TSX, BUY, C$3.30 PT)

Source: Consensus Data – FactSet, Historicals – Company Filings, Forecasts/Estimates – Echelon Wealth Partners

Company Description Consensus Current Return

Rating:

Target: 3.30$ 73%

Median: 3.24$ 70%

High: 3.24$ 70%

Low : 3.24$ 70%

Buy 1

Hold -

Sell -

# of Ratings 1

Financial Summary/Key Metrics 2017 2018 Q119 Q219 Q319 Q419E 2019E 2020E 2021E 2022E

Product Sales 1,356 1,216 261 306 232 263 1,061 1,051 1,072 1,093 Top Inst. Ownership % Held

Service Revenues 165 158 34 40 38 41 153 162 172 182 Canoe Financial LP 2.7%

Total Revenue 1,521 1,374 296 346 270 303 1,214 1,213 1,243 1,275 Dimensional Fund Advisors LP 0.2%

Growth y/y -10% -20% -9% -16% 1% -12% 0% 3% 3% GlobeFlex Capital LP 0.2%

Gross Margin 11.1% 11.9% 12.4% 13.0% 14.7% 13.5% 13.3% 13.3% 13.4% 13.5%

Adjusted EBITDA 24.1 15.5 3.3 9.7 6.3 6.5 25.9 29.7 34.8 40.2

Growth y/y -36% 123% 90% 51% 37% 66% 15% 17% 15%

Fully Diluted IFRS EPS (0.14) (0.11) (0.09) 0.04 (0.01) 0.35 0.30 0.16 0.40 0.57

Growth y/y -22% 56% 687% -89% 2853% -362% -45% 144% 42%

Adj. FCFPS (FD) 0.24 0.16 0.59 0.43 0.53 0.63

Net Debt 157 104 145 109 133 100 100 92 77 58 Key Statistics Value

CAPEX 2 3 1 1 2 1 4 3 1 1 52 Wk High 1.95

Major Customers 39% 35% 10% 23% 16% 52 Wk Low 0.83

YTD Chg. 14%

Balance Sheet 2017 2018 Q119 Q219 Q319 Q419E 2019E 2020E 2021E 2022E 1 Yr. Chg. 66%

Cash & Equivalents 5 15 5 15 9 41 41 44 55 69 Beta 0.78

Accounts receivable 293 230 259 268 232 262 262 268 275 282 Market Cap 76

Inventories 95 54 47 48 53 61 61 62 63 65 EV 268

Total Current Assets 419 325 339 359 326 395 395 405 424 447 Shares Outstanding 40

Growth y/y -22% -6% -11% 4% 22% 22% 3% 5% 5% LTM Dividend 0.16$

Total Assets 530 421 453 472 434 477 477 478 491 512 Dividend Yield 8.4%

Deferred revenue & customer deposits 34 28 29 30 29 29 29 30 30 31 Valuation 2018 2019E

Accounts payable & accrued liabilities 301 254 244 287 233 266 266 268 275 282 EV/Rev 0.15 0.17

Revolving credit facility 137 100 132 102 126 125 125 120 115 111 EV/EBITDA 13.3 8.0

Total Current Liabilities 494 401 422 440 404 435 435 433 436 439 P/E (13.0) 5.0

Total Liabilities 512 414 451 470 432 463 463 462 464 467

Total Liabilities & Shareholders' Equity530 421 453 472 434 477 477 478 491 512

Comparables Price Target Div Yield

Multiples Analysis 1 Week 1 Month 3 Month YTD 1 Year 2018 2019 2018 2019 2018 2019

PTG-CA 1.91 3.30 8.4% 14% 16% 47% 14% 66% 1,374 1,228 16 27 (0.12) 0.33

TECD 143.97 0.0% 0% 0% 38% 0% 67% 37,239 37,061 766 783 11.38 12.56

CDW 140.92 1.1% -1% 3% 14% -1% 82% 16,241 17,896 1,296 1,415 5.17 6.02

SNX 127.36 1.2% -1% 1% 13% -1% 53% 20,054 23,164 823 1,293 10.89 12.60

NSIT 71.67 0.0% 2% 9% 27% 2% 72% 7,080 7,800 285 328 4.63 5.46

SCSC 36.20 0.0% -2% -2% 22% -2% 3% 3,846 3,921 144 149 3.11 3.36

Comparables

Multiples Analysis 2018 2019 2018 2019 2018 2019 2018 2019

PTG-CA 204 11.2% 40.3% 0.15 0.17 13.1 7.4 NM NM

TECD 5,858 -- 15.0% 0.16 0.16 7.6 7.5 12.7 11.5

CDW 24,385 4.0% 3.5% 1.50 1.36 18.8 17.2 27.3 23.4

SNX 9,537 6.7% 13.0% 0.48 0.41 11.6 7.4 11.7 10.1

NSIT 3,558 -- -- 0.50 0.46 12.5 10.8 15.5 13.1

SCSC 1,307 2.2% #N/A 0.34 0.33 9.1 8.8 11.6 10.8

Pivot Technology Solutions, Inc. provides information technology services. It designs, sells, and

supports information technology (IT) solutions w hich include hardw are, maintenance, and support. It

also offers data centre, management, infrastructure management, systems architecture, technical

services, and procurement/integration services.

Buy

Consensus

Return Rev (US$M) EBITDA (US$M) EPS (US$)

P/E EV/EBITDA EV/RevFCF Yield EV

0.00

0.10

0.20

0.30

0.40

0.50

0.60

0.70

0.80

$0.00

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

$1.40

$1.60

$1.80

$2.00

Jan/19 Mar/19 May/19 Jul/19 Sep/19 Nov/19

Vol

ume

(M)

Pric

e (C

$)

Page 50 of 75 Gianluca Tucci | 647.794.1926 | gtucci@echelonpartners.com

Pivot Technology Solutions Inc. (PTG-TSX) | January 8, 2020

Important Information and Legal Disclaimers

Echelon Wealth Partners Inc. is a member of IIROC and CIPF. The documents on this website have been prepared for the viewer only as an example of strategy consistent with our recommendations; it is not an offer to buy or sell or a solicitation of an offer to buy or sell any security or instrument or to participate in any particular investing strategy. Any opinions or recommendations expressed herein do not necessarily reflect those of Echelon Wealth Partners Inc. Echelon Wealth Partners Inc. cannot accept any trading instructions via e-mail as the timely receipt of e-mail messages, or their integrity over the Internet, cannot be guaranteed. Dividend yields change as stock prices change, and companies may change or cancel dividend payments in the future. All securities involve varying amounts of risk, and their values will fluctuate, and the fluctuation of foreign currency exchange rates will also impact your investment returns if measured in Canadian Dollars. Past performance does not guarantee future returns, investments may increase or decrease in value and you may lose money. Data from various sources were used in the preparation of these documents; the information is believed but in no way warranted to be reliable, accurate and appropriate. Echelon Wealth Partners Inc. employees may buy and sell shares of the companies that are recommended for their own accounts and for the accounts of other clients.

Echelon Wealth Partners compensates its Research Analysts from a variety of sources. The Research Department is a cost centre and is funded by the business activities of

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Canadian Disclosures: To make further inquiry related to this report, Canadian residents should contact their Echelon Wealth Partners professional representative. To effect any

transaction, Canadian residents should contact their Echelon Wealth Partners Investment advisor.

U.S. Disclosures: This research report was prepared by Echelon Wealth Partners Inc., a member of the Investment Industry Regulatory Organization of Canada and the Canadian Investor Protection Fund. This report does not constitute an offer to sell or the solicitation of an offer to buy any of the securities discussed herein. Echelon Wealth Partners Inc. is not registered as a broker-dealer in the United States and is not be subject to U.S. rules regarding the preparation of research reports and the independence of research analysts. Any resulting transactions should be effected through a U.S. broker-dealer.

U.K. Disclosures: This research report was prepared by Echelon Wealth Partners Inc., a member of the Investment Industry Regulatory Organization of Canada and the Canadian Investor Protection Fund. ECHELON WEALTH PARTNERS INC. IS NOT SUBJECT TO U.K. RULES WITH REGARD TO THE PREPARATION OF RESEARCH REPORTS AND THE INDEPENDENCE OF ANALYSTS. The contents hereof are intended solely for the use of, and may only be issued or passed onto persons described in part VI of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2001. This report does not constitute an offer to sell or the solicitation of an offer to buy any of the securities discussed herein.

Copyright: This report may not be reproduced in whole or in part, or further distributed or published or referred to in any manner whatsoever, nor may the information, opinions

or conclusions contained in it be referred to without in each case the prior express written consent of Echelon Wealth Partners

ANALYST CERTIFICATION

Company: Pivot Technology Solutions Inc. | PTG:TSX I, Gianluca Tucci, hereby certify that the views expressed in this report accurately reflect my personal views about the subject securities or issuers. I also certify that I have not, am not, and will not receive, directly or indirectly, compensation in exchange for expressing the specific recommendations or views in this report. IMPORTANT DISCLOSURES

Is this an issuer related or industry related publication? Issuer

Does the Analyst or any member of the Analyst’s household have a financial interest in the securities of the subject issuer? If Yes: 1) Is it a long or short position? Long position; and, 2) What type of security is it? Common shares.

Yes

The name of any partner, director, officer, employee or agent of the Dealer Member who is an officer, director or employee of the issuer, or who serves in any advisory capacity to the issuer.

None

Does Echelon Wealth Partners Inc. or the Analyst have any actual material conflicts of interest with the issuer? No

Does Echelon Wealth Partners Inc. and/or one or more entities affiliated with Echelon Wealth Partners Inc. beneficially own common shares (or any other class of common equity securities) of this issuer which constitutes more than 1% of the presently issued and outstanding shares of the issuer?

Yes

During the last 12 months, has Echelon Wealth Partners Inc. provided financial advice to and/or, either on its own or as a syndicate member, participated in a public offering, or private placement of securities of this issuer?

No

During the last 12 months, has Echelon Wealth Partners Inc. received compensation for having provided investment banking or related services to this Issuer? Yes

Has the Analyst had an onsite visit with the Issuer within the last 12 months? No

Has the Analyst or any Partner, Director or Officer been compensated for travel expenses incurred as a result of an onsite visit with the Issuer within the last 12 months? No

Has the Analyst received any compensation from the subject company in the past 12 months? No

Is Echelon Wealth Partners Inc. a market maker in the issuer’s securities at the date of this report? No

Page 51 of 75 Gianluca Tucci | 647.794.1926 | gtucci@echelonpartners.com

Pivot Technology Solutions Inc. (PTG-TSX) | January 8, 2020

RATING DEFINITIONS

Buy The security represents attractive relative value and is expected to appreciate significantly from the current price over the next 12 month time horizon.

Speculative Buy The security is considered a BUY but in the analyst’s opinion possesses certain operational and/or financial risks that are higher than average.

Hold The security represents fair value and no material appreciation is expected over the next 12-18 month time horizon.

Sell The security represents poor value and is expected to depreciate over the next 12 month time horizon.

Under Review While not a rating, this designates the existing rating and/or forecasts are subject to specific review usually due to a material event or share price move.

Tender Echelon Wealth Partners recommends that investors tender to an existing public offer for the securities in the absence of a superior competing offer.

Dropped Coverage

Applies to former coverage names where a current analyst has dropped coverage. Echelon Wealth Partners will provide notice to investors whenever coverage of an issuer is dropped.

RATINGS DISTRIBUTION

Recommendation Hierarchy Buy Speculative Buy Hold Sell Under Review Restricted Tender

Number of recommendations 49 43 17 1 7 0 3

% of Total (excluding Restricted) 42% 37% 15% 1% 6%

Number of investment banking relationships 13 18 4 0 2 0 0

% of Total (excluding Restricted) 35% 49% 11% 0% 5%

PRICE CHART, RATING & PRICE TARGET HISTORY

Date Target (C$) Rating

* 21-Feb-17 5.50$ Buy

26-Sep-18 3.00$ Buy

11-Jan-19 2.40$ Buy

28-Feb-19 2.50$ Buy

15-Aug-19 2.75$ Buy

15-Oct-19 3.30$ Buy

Coverage initiated: 02/21/2017 Data sourced from FactSet

*Prior Analyst PT

$0.00

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

Pivot Technology Solutions (TSX:PTG)

Price Target (C$)

Page 52 of 75

8 January 2020

Precious Metals

Ryan Walker, MSc | 416.479.8997 | ryan.walker@echelonpartners.com

Event: We reiterate Roxgold Inc. as one of EWP’s Top Picks for Q120. During Q419, ROXG shares slipped by 1% largely owing to a deadly attack on the road between Fada and Semafo’s (SMF:TSX, NR) Boungou mine in eastern Burkina Faso, on security November 6, 2019. We note that the incident occurred in an area of heightened risk, near the eastern borders of Burkina Faso, and a significant distance from ROXG`s Yaramoko gold mine.

Q419 FCF Growth on Tap: 2019 production through Q319 totals 101,041oz, and ROXG expects to achieve the low end of previous 2019 guidance of 145,000-155,000oz. Q419 production was expected to benefit from increased stoping operations focused on higher-grade ore at Bagassi South (which achieved commercial production in September). Indeed, ROXG notes that during October, production amounted to a monthly record of 16,000oz on the back of record mill throughput (+44,000 tonnes) and higher grades (~11.5g/t). We note that ROXG reported Q319 FCF of $0.05/shr on lower grade and a lower average gold price than in Q419. We forecast CFPS of $0.11/shr (consensus $0.10/shr) and FCFPS of $0.08/shr (consensus NA).

Meanwhile, ROXG expects 2019 full-year costs to come in at the upper end of guidance, with all-in sustaining costs impacted by higher royalty payments owing to the higher gold price (2019 AISC guidance is US$765-795/oz sold).

Ivory Coast Advancement to Help Offset Burkina Faso Risk: ROXG plans to deliver an updated resource estimate and Preliminary Economic Assessment at the Séguéla project in Ivory Coast in H120. The updated resource will include a maiden resource estimate for the Boulder and Agouti satellite areas. Existing NI 43-101 Indicated Resource at Séguéla total 496,000oz at 2.4g/t, with another 34,000oz of Inferred Resources at 2.4g/t at the Antenna deposit.

Comprehensive metallurgical test work at Séguéla has demonstrated the ore’s potential amenability to processing via a simple flowsheet (gravity/carbon-in-leach) to yield high gold recoveries exceeding 94%. Importantly, 38% of the gold reports to a gravity concentrate, suggesting the potential for relatively lower operating costs during any eventual production. Equally important, preliminary acid mine drainage test work indicates non-acid generating materials.

Valuation: We maintain our BUY rating and $1.40/shr price target. ROXG currently trades at 4.0x our 2020 CFPS estimates (3.4x consensus), compared with selected peers at 6.2x. We would expect that gap to narrow with the successful ramp up and sustained increased production at Yaramoko via the Bagassi South satellite mine, bolstered by any exploration success at Yaramoko and Séguéla. The impending Séguéla PEA also has the potential to positively impact the share price as it could help demonstrate production growth potential (outside of Burkina Faso), thereby helping to address the discount at which ROXG trades versus its peers.

Roxgold Inc.

Q120 Top Pick — Free Cash Flow Growth and Séguéla Updated Resource & PEA to Offset Burkina Faso Risk

ROXG-TSX: $1.02

Buy $1.40 Target

Projected Return: 37.3%

Discount Rate: 5.0%

C$, unless otherwise stated Source: FactSet

Market Data

Market Capitalization ($M) 375.3

Net Debt ($M) 60.2

Cash & Equivalents ($M) 38.3

Debt ($M) 98.5

Enterprise Value ($M) 435.4

Basic Shares O/S (M) 371.5

Fully Diluted Shares O/S (M) 376.9

Avg. Daily Volume (k) 687.2

52-Week Range $0.72 - $1.42

Financial Summary

C$ 2018E 2019E 2020E

Au Price ($/oz) 1,588 1,800 1,800

Au Prod. (Koz) 132.1 144.6 127.2

AISC ($/oz) 943 1,182 1,113

Adj. EPS 0.14 0.11 0.12

Op'ng CFPS 0.27 0.28 0.25

P/E 7.1x 9.1x 8.5x

P/CF 3.7x 3.6x 4.0x

DCF Valuation

Discount ($M) $/shr

Yaramoko (90%) 5.0% $301 $0.80

Exploration Upside In Situ $34 $0.09

Project NAV $335 $0.89

Corporate Adjustments ($51) ($0.14)

Cash & Equivalents $38 $0.10

Options & Warrants $5 $0.01

Adjusted NAV $327 $0.87

Share Price $1.00

P/Adjusted NAV 1.15x

Risks

Operational Exploration Results - Q419Political/Social Increased Production - Q419

Commod./Currency Séguéla PEA - H120Company Description

Events/Catalysts

Roxgold Inc. is a gold exploration and development

company focused on ramping-up production at its

principal asset, the Yaramoko gold project which

covers approximately 196 square kilometres of the

Houndé greenstone bel of Burkina Faso, West Africa.

Roxgold declared commercial production at the

Yaramoko gold mine in October 1, 2016. The company

is headquartered in Toronto, Canada.

$0.70$0.80$0.90$1.00$1.10$1.20$1.30$1.40$1.50

0.0

1.0

2.0

3.0

4.0

5.0

Jan-19 Apr-19 Jul-19 Oct-19 Jan-20

Volume (M shrs) Price

Page 53 of 75

Roxgold Inc. (ROXG-TSX) | 8 January 2020

Ryan Walker, MSc | 416.479.8997 | ryan.walker@echelonpartners.com

Roxgold Inc. (ROXG-CA, $1.02) - Data Sheet $0.00 BUY | PT: $1.40Summary Financial/Operating Estimates (C$) 2017A 2018E 2019E 2020E Recommendation

Gold Price EWP Est. US$/oz 1,300 1,350 1,350 1,350 Close Price $1.02Actual Gold Produced oz 126,990 132,075 144,633 127,183 Target: $1.40All-in Sust. Cost (per oz sold) (US$/oz) 826 802 886 835 Return: 37.3%

Consensus 3 Mo. Ago Current Return

Income Statement (C$, unless otherwise stated) Rating: Buy Buy

Metal Revenue ($ 000) 206,924 218,581 244,288 220,563 Target: $1.77 $1.64 61%

Cost of Goods Sold ($ 000) 72,275 74,131 77,512 92,875 Median: $1.79 $1.62 59%

Royalties ($ 000) 8,363 9,713 11,795 11,332 High: $2.01 $1.85 82%

Corporate & Administrative ($ 000) 6,006 6,920 6,584 6,165 Low: $1.40 $1.37 34%

Depreciation & Amortization ($ 000) 39,138 46,739 62,475 48,502 Consensus Distribution 4

Exploration & evaluation expenses ($ 000) 16,559 10,227 20,116 1,000 Sector Outperform/Buy 4

Income (Loss) from Operations ($ 000) 59,217 65,402 58,778 52,555 Sector Perform/Hold 0

Other Income (Expense) Sector UnderPerform/Sell 0

Change in Fair Value of derivative instruments ($ 000) (11,393) 2,180 (4,535) 6,077 Stock Price / Volume Chart

EBIT ($ 000) 48,232 61,302 47,529 58,632

Interest Income (Expense) ($ 000) (8,820) (5,809) (5,711) 37

EBT ($ 000) 39,412 55,493 41,818 58,669

Current Income Taxes ($ 000) - 371 14,811 11,787

Future Income Taxes ($ 000) 9,242 7,819 395 1,054

Net Income (Loss) Before Minority Interest ($ 000) 30,170 47,303 26,613 45,828

Non-Controlling Interest ($ 000) 5,711 5,414 3,108 -

Net Income (Loss) ($ 000) 24,459 41,890 23,504 45,828

Adjusted Net Income (Loss) ($ 000) 39,464 53,927 41,668 44,442

Cash Flow Statement

CFO Before Changes in Non-Cash WC ($ 000) 88,670 103,226 105,751 93,998 Key Statistics

Net CFF ($ 000) (43,884) (15,347) (26,885) (17,642) Current Price (C$) $1.02

Net CFI ($ 000) (42,007) (70,266) (100,311) (29,733) 52-Week Range (C$) $0.72 - $1.42

FCFE ($ 000) 1,612 16,745 (18,401) 45,475 Avg. Vol. (3-Mo, k) 689.6

Shares Outstanding (M) 371.5

Balance Sheet Shares Outstanding (diluted) (M) 376.9

Cash and Equivalents ($ 000) 79,048 79,063 65,591 119,885 Cash (C$) $38.3

Debt ($ 000) 57,686 47,835 29,809 11,019 Market Cap (C$) $371.5

Shares Outstanding M 372.4 374.5 371.6 373.2 Resource (M,I&I - Moz) 1.31

Enterprise Value (C$) $439.1

Adjusted EPS - Fully Diluted ($/sh) 0.10 0.14 0.11 0.12 Enterprise Value/oz (C$/oz) $336

Operating CFPS - Fully Diluted ($/sh) 0.23 0.27 0.28 0.25 FYE Dec 31

P/CF 4.3x 3.7x 3.6x 4.0x CEO John Andrew Dorward, CFA

Note 2016 AISC for Q3-Q416 only Employees 57

Website http://www.roxgold.com

2019 2020 2019 2020

Comparables Ticker Share CFPS CFPS P/CFPS P/CFPS Top Inst. Ownership Shares % Held

Alacer Gold Corp. ASR-CA $6.69 $0.97 $1.26 6.9x 5.3x Ruffer LLP 20.9 5.6%

B2Gold Corp. BTO-CA $5.17 $0.63 $0.82 8.2x 6.3x Van Eck Associates Corp. 19.9 5.3%

Centamin plc CEE-CA $2.17 $0.26 $0.33 8.4x 6.5x 1832 Asset Management LP 16.7 4.5%

Guyana Goldfields Inc. GUY-CA $0.71 $0.17 $0.62 4.3x 1.1x Skagen AS (Investment Management) 9.3 2.5%

Kirkland Lake Gold Ltd. KL-CA $57.73 $5.53 $5.62 10.4x 10.3x ASA Gold & Precious Metals Ltd. (Mutual Fund Manager) 7.2 1.9%

OceanaGold Corporation OGC-CA $2.53 $0.45 $0.59 5.6x 4.3x US Global Investors, Inc. (Asset Management) 6.0 1.6%

Pretium Resources Inc. PVG-CA $14.09 $1.49 $2.40 9.5x 5.9x Invesco Advisers, Inc. 6.0 1.6%

Perseus Mining Limited PRU-CA $0.99 $0.14 $0.16 7.3x 6.1x Mackenzie Financial Corp. 4.9 1.3%

SEMAFO Inc. SMF-CA $2.68 $0.95 $0.91 2.8x 2.9x Company Description

TMAC Resources, Inc. TMR-CA $3.37 $0.74 $1.14 4.6x 3.0x

Torex Gold Resources Inc. TXG-CA $20.69 $4.13 $4.14 5.0x 5.0x

Wesdome Gold Mines Ltd. WDO-CA $9.84 $0.57 $0.63 17.3x 15.5x

7.5x 6.0x

Roxgold Inc. ROXG-CA $1.00 $0.27 $0.29 3.7x 3.4x

Date Last Financing Price Value

08-Mar-16 Bought-Deal $0.80 $23.0

09-Sep-15 Non-Brokered PP (IFC) $0.71 $18.4

Source: Source: Consensus data - FactSet, Historical Data – Company Filings, Forecasts/estimates – Echelon Wealth Partners

All items in Millions except per share items

Roxgold Inc. is a gold exploration and development company focused on ramping-

up production at its principal asset, the Yaramoko gold project which covers

approximately 196 square kilometres of the Houndé greenstone bel of Burkina

Faso, West Africa. Roxgold declared commercial production at the Yaramoko gold

mine in October 1, 2016. The company is headquartered in Toronto, Canada.

0

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)

Page 54 of 75

Roxgold Inc. (ROXG-TSX) | 8 January 2020

Ryan Walker, MSc | 416.479.8997 | ryan.walker@echelonpartners.com

Important Information and Legal Disclaimers

Echelon Wealth Partners Inc. is a member of IIROC and CIPF. The documents on this website have been prepared for the viewer only as an example of strategy consistent

with our recommendations; it is not an offer to buy or sell or a solicitation of an offer to buy or sell any security or instrument or to participate in any particular investing

strategy. Any opinions or recommendations expressed herein do not necessarily reflect those of Echelon Wealth Partners Inc. Echelon Wealth Partners Inc. cannot accept

any trading instructions via e-mail as the timely receipt of e-mail messages, or their integrity over the Internet, cannot be guaranteed. Dividend yields change as stock prices

change, and companies may change or cancel dividend payments in the future. All securities involve varying amounts of risk, and their values will fluctuate, and the fluctuation

of foreign currency exchange rates will also impact your investment returns if measured in Canadian Dollars. Past performance does not guarantee future returns, investments

may increase or decrease in value and you may lose money. Data from various sources were used in the preparation of these documents; the information is believed but in

no way warranted to be reliable, accurate and appropriate. Echelon Wealth Partners Inc. employees may buy and sell shares of the companies that are recommended for

their own accounts and for the accounts of other clients.

Echelon Wealth Partners compensates its Research Analysts from a variety of sources. The Research Department is a cost centre and is funded by the business activities of

Echelon Wealth Partners including, Institutional Equity Sales and Trading, Retail Sales and Corporate and Investment Banking.

Research Dissemination Policy: All final research reports are disseminated to existing and potential clients of Echelon Wealth Partners Inc. simultaneously in electronic form.

Hard copies will be disseminated to any client that has requested to be on the distribution list of Echelon Wealth Partners Inc. Clients may also receive Echelon Wealth

Partners Inc. research via third party vendors. To receive Echelon Wealth Partners Inc. research reports, please contact your Registered Representative. Reproduction of any

research report in whole or in part without permission is prohibited.

Canadian Disclosures: To make further inquiry related to this report, Canadian residents should contact their Echelon Wealth Partners professional representative. To effect

any transaction, Canadian residents should contact their Echelon Wealth Partners Investment advisor.

U.S. Disclosures: This research report was prepared by Echelon Wealth Partners Inc., a member of the Investment Industry Regulatory Organization of Canada and the Canadian Investor Protection Fund. This report does not constitute an offer to sell or the solicitation of an offer to buy any of the securities discussed herein. Echelon Wealth Partners Inc. is not registered as a broker-dealer in the United States and is not be subject to U.S. rules regarding the preparation of research reports and the independence of research analysts. Any resulting transactions should be effected through a U.S. broker-dealer.

U.K. Disclosures: This research report was prepared by Echelon Wealth Partners Inc., a member of the Investment Industry Regulatory Organization of Canada and the

Canadian Investor Protection Fund. ECHELON WEALTH PARTNERS INC. IS NOT SUBJECT TO U.K. RULES WITH REGARD TO THE PREPARATION OF RESEARCH REPORTS AND THE

INDEPENDENCE OF ANALYSTS. The contents hereof are intended solely for the use of, and may only be issued or passed onto persons described in part VI of the Financial

Services and Markets Act 2000 (Financial Promotion) Order 2001. This report does not constitute an offer to sell or the solicitation of an offer to buy any of the securities

discussed herein.

Copyright: This report may not be reproduced in whole or in part, or further distributed or published or referred to in any manner whatsoever, nor may the information,

opinions or conclusions contained in it be referred to without in each case the prior express written consent of Echelon Wealth Partners.

ANALYST CERTIFICATION

Company: Roxgold Inc. | ROXG:TSX I, Ryan Walker, hereby certify that the views expressed in this report accurately reflect my personal views about the subject securities or issuers. I also certify that I have not, am not, and will not receive, directly or indirectly, compensation in exchange for expressing the specific recommendations or views in this report. IMPORTANT DISCLOSURES

Is this an issuer related or industry related publication? Issuer

Does the Analyst or any member of the Analyst’s household have a financial interest in the securities of the subject issuer? If Yes: 1) Is it a long or short position? No position; and, 2) What type of security is it? None

No

The name of any partner, director, officer, employee or agent of the Dealer Member who is an officer, director or employee of the issuer, or who serves in any advisory capacity to the issuer.

No

Does Echelon Wealth Partners Inc. or the Analyst have any actual material conflicts of interest with the issuer? No

Does Echelon Wealth Partners Inc. and/or one or more entities affiliated with Echelon Wealth Partners Inc. beneficially own common shares (or any other class of common equity securities) of this issuer which constitutes more than 1% of the presently issued and outstanding shares of the issuer?

No

During the last 12 months, has Echelon Wealth Partners Inc. provided financial advice to and/or, either on its own or as a syndicate member, participated in a public offering, or private placement of securities of this issuer?

No

During the last 12 months, has Echelon Wealth Partners Inc. received compensation for having provided investment banking or related services to this Issuer? No

Has the Analyst had an onsite visit with the Issuer within the last 12 months? No

Has the Analyst or any Partner, Director or Officer been compensated for travel expenses incurred as a result of an onsite visit with the Issuer within the last 12 months? No

Has the Analyst received any compensation from the subject company in the past 12 months? No

Is Echelon Wealth Partners Inc. a market maker in the issuer’s securities at the date of this report? No

Page 55 of 75

Roxgold Inc. (ROXG-TSX) | 8 January 2020

Ryan Walker, MSc | 416.479.8997 | ryan.walker@echelonpartners.com

RATING DEFINITIONS

Buy The security represents attractive relative value and is expected to appreciate significantly from the current price over the next 12 month time horizon.

Speculative Buy The security is considered a BUY but in the analyst’s opinion possesses certain operational and/or financial risks that are higher than average.

Hold The security represents fair value and no material appreciation is expected over the next 12-18 month time horizon.

Sell The security represents poor value and is expected to depreciate over the next 12 month time horizon.

Under Review While not a rating, this designates the existing rating and/or forecasts are subject to specific review usually due to a material event or share price move.

Tender Echelon Wealth Partners recommends that investors tender to an existing public offer for the securities in the absence of a superior competing offer.

Dropped Coverage

Applies to former coverage names where a current analyst has dropped coverage. Echelon Wealth Partners will provide notice to investors whenever coverage of an issuer is dropped.

RATINGS DISTRIBUTION

Recommendation Hierarchy Buy Speculative Buy Hold Sell Under Review Restricted Tender

Number of recommendations 50 42 18 1 7 0 4

% of Total (excluding Restricted) 42% 36% 15% 1% 6%

Number of investment banking relationships 14 19 5 0 2 0 0

% of Total (excluding Restricted) 35% 48% 13% 0% 5%

PRICE CHART, RATING & PRICE TARGET HISTORY

Date Target (C$) Rating

28 Nov 2016 $2.70 Buy

21 Apr 2017 $2.60 Buy

19 Jul 2017 $2.70 Buy

15 Aug 2018 $2.10 Buy

22 Jan 2019 $1.40 Buy

Coverage Initiated: Nov 28, 2016

Data sourced from: FactSet

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Roxgold Inc. (TSX:ROXG)

Price PT revision

Page 56 of 75 Gabriel Gonzalez, CFA | 647.484.7285 | ggonzalez@echelonpartners.com

10 January 2020

Precious Metals

Updated Resource Estimate in Q120: Revival is currently in the process of updating its combined Beartrack and Arnett Creek resource estimate, for release sometime between mid to late-Q120. We anticipate the new resource at around 2.7Moz to 2.8Moz, up from 2.36Moz Au which includes the current 1.99Moz Beartrack estimate and 380koz Arnett Creek (historical) estimate. The updated estimate will incorporate 15,000 metres of new drilling completed between 2018 and 2019 (including 5,060 metres in 2019 at Arnett Creek and Beartrack), and may also benefit from improved metallurgical recovery factors as well an updated gold price.

Beartrack and Arnett Creek Heap Leach PEA the Next Step: We were encouraged by the 2019 drill program results that demonstrated the continuity of historical oxide resources at Arnett Creek’s Haidee Target. The contribution from Haidee will help advance a potential heap-leach production re-start scenario with Beartrack’s current 330koz (Indicated + Inferred) heap leach resource. This scenario is expected to be examined in an upcoming PEA, providing economics to a critical mass of heap-leach amenable resources. We believe such economics could be fairly attractive relative to a comparable greenfield project, given the existing gold ADR production plant at Beartrack and commensurate up-front capital savings.

Future Resource Growth To Potentially Pass 3.0Moz: We note that there could be further oxide, heap-leach amenable resource growth opportunities at Arnett Creek, given the 2019 geophysics and soil sampling results that will need to be drill tested. For the most part, production throughout Arnett Creek’s multiple known gold occurrences were historically mined at surface, with virtually no mechanized mining to test deeper mineralization. At Beartrack, Revival will also look to potential new target sources of mineralization along unexplored areas of the 5km Panther Creek Fault’s strike length. If successful, total resource upside could well exceed Revival’s current base-line 3.0Moz resource target.

Current Share Price Still a Buying Opportunity: We recognize that along with many junior gold exploration and developers, Revival’s share price hasn’t caught the gold price rally like producers have. However, we are steadfast in our belief that Revival is adding value through the drill bit, and that this should ultimately bear reflection in its share price, especially if the potential to exceed Revival’s base-line 3.0Moz resource target materializes. Moreover, we continue to see a clear valuation gap between revival and its peers, which we believe could begin to close beginning with the upcoming resource estimate and near-term PEA.

Upcoming Potential Catalysts: (1) Updated, combined Beartrack-Arnett Creek resource estimate – Q120, (2) 2020 exploration plans – Q120, 3) Announcement concerning the timing and scope of a Preliminary Economic Assessment - TBD.

Reiterate Speculative Buy Rating, $1.80/shr PT: We continue to base our valuation on a conceptual 2.80moz target resource, but consider future potential upside from exceeding Revival’s 3.0Moz base-case resource target through further exploration. With 2019’s exploration and metallurgical test results, and expectations for the upcoming resource estimate, we are increasingly looking for the valuation gap between Revival and its peers in our 1.0-2.0g/t resource comparable group, which trade at US$9.5/oz (including Arnett Creek’s historical resources) and US$29/oz respectively, to begin to close.

Revival Gold Inc.

Updated Resource Estimate to Show Growth, Potential for Much More; Q120 Top Pick

RVG-TSXV: $0.59

Speculative Buy $1.80 Target

Projected Return: 205%Market Data

Market Capitalization (C$M) $31.1

Cash & Equivalents (C$M) Est. $1.7

Total Debt (C$M) $0.0

Enterprise Value (US$M) $22.5

Basic Shares O/S (M) 52.8

Diluted Shares O/S (M) 61.4

Avg. 3-M Daily Volume (000) 52.8

52-Week Range (C$) $0.43 - $0.87

Div. Yield 12M-Fwd (%) 0.0%

P/NAV 0.3x

P/CF 12m-Fwd NM

Financial Summary (C$M, except /shr data)

Annual 2017A 2018A 2019E 2020E

Total Revenue 0.0 0.0 0.0 0.0

Adj. EBITDA -3.2 -7.2 -6.8 -6.9

Net Income -3.3 -7.1 -6.2 -4.8

EPS -0.17 -0.17 -0.13 -0.07

P/E NM NM NM NM

CFPS -0.08 -0.15 -0.11 -0.06

P/CFPS NM NM NM NM

Cash, ST Inv. 7.7 0.6 7.7 10.7

Quarterly Q1/19A Q2/19A Q3/19A Q4/19E

EPS -0.02 -0.04 -0.05 -0.02

CFPS -0.01 -0.03 -0.05 -0.02

Company Description

Price History

All figurers in C$ unless otherwise noted

Revival Gold Inc. is a gold exploration and development

company holding an option to acquire a 100% interest in the

former producing Beartrack Gold Project located in Lemhi

County, Idaho. Revival also has a 100% interest in the

neighbouring Arnett Creek Gold Project. The company is led by

Hugh Agro, President and CEO, a veteran mining company and

capital markets executive.

Source: Factset, Historical Data – Company Filings,

Forecasts/estimates – Echelon Wealth Partners

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Page 57 of 75

Revival Gold Inc. (RVG-TSXV) | January 10 2020

Gabriel Gonzalez, CFA | 647.484.7285 | ggonzalez@echelonpartners.com

Data Sheet

Source: Company Reports (historical data), Echelon Wealth Partners (estimates), FactSet (share price data, consensus estimates). Financials presented as calendar year end.

CONSENSUS RATINGS 3-M Current FINANCIALS (C$M) 2016A 2017A 2018A 2019E 2020E

Rating: Buy Buy Return Ratings Distribution: PROFIT & LOSS

Target: 1.65 1.60 171% OP/Buy 3 Total Revenue 0.0 0.0 0.0 0.0 0.0

Median: 1.90 1.80 205% P/Hold 0 Cost Of Goods Sold 0.0 0.0 0.0 0.0 0.0

High: 2.00 2.00 239% UP/Sell 0 Gross Profit 0.0 0.0 0.0 0.0 0.0

Low: 1.05 1.05 78% Total 3 Depreciation/Amortization 0.0 0.0 0.0 0.0 0.0

Consensus Ratings: B=Buy, OW=Overweight, Hold, UP=Underweight, S=Sell Operating Expenses 0.2 3.2 7.2 6.8 6.9

Operating Income -0.2 -3.2 -7.2 -6.8 -6.9

PRICE DECK 2016A 2017A 2018E 2019E 2020E Net Interest Expense 0.0 0.0 0.0 0.0 0.0

Gold ($/oz) 1,248 1,258 1,345 1,400 1,400 Net Non-Operating -0.4 0.1 -0.2 0.0 0.0

Silver ($/oz) 17.09 17.06 17.18 19.00 21.55 Pretax Income 0.2 -3.3 -7.1 -6.7 -6.9

Copper ($/lb) 2.20 2.80 3.19 3.40 3.40 Income Tax Expense 0.0 0.0 0.0 -0.5 -2.1

Lead ($/lb) 0.85 1.05 1.07 1.05 1.00 Minority Interest 0.0 0.0 0.0 0.0 0.0

Zinc ($/lb) 0.95 1.31 1.50 1.50 1.40 Extraordinary/Pref.Div 0.0 0.0 0.0 0.0 0.0

CAD/USD 0.75 0.77 0.85 0.89 0.85 Net Income 0.2 -3.3 -7.1 -6.2 -4.8

Adj. Net Income 0.2 -3.3 -7.1 -6.2 -4.8

RESOURCES CASH FLOW

Tonnes (k) Grade Oz (k) Op. Cash Flow bef. WC 0.0 -2.6 -6.4 -5.5 -4.1

Beartrack Indicated - Heap Leach 12,060 0.71 276 Change in WC -0.2 0.0 0.0 0.4 0.0

Beartrack Indicated - Mill 21,305 1.37 938 Cash From Operations -0.2 -2.6 -6.4 -5.2 -4.1

Arnett Creek Indicated (Historical)* 10,900 0.93 327 Capital Expenditure 0.0 -0.7 -0.8 -0.4 0.0

Beartrack Inferred - Heap Leach 2,091 0.81 54 Other Investing Activities 0.0 0.0 -0.1 0.0 0.0

Beartrack Inferred - Mill 14,812 1.49 710 Cash from Investing 0.0 -0.7 -0.9 -0.4 0.0

Arnett Creek Inferred (Historical)* 2,600 0.62 53 Dividends 0.0 0.0 0.0 0.0 0.0

Revival Gold Total* 63,768 1.15 2,358 Issue Of Common, Net 0.1 11.4 0.0 5.0 7.1

US$ EV/oz - M&I* $14.6 Issue Of Debt, Net 0.0 0.0 0.0 0.0 0.0

US$ EV/oz - M&I+I* $9.5 Other Financing 0.0 -0.5 0.1 7.6 0.0

*Includes Historical, Non NI43-101 resources Cash from Financing 0.1 10.9 0.1 12.7 7.1

Net Change in Cash 0.0 7.6 -7.1 7.2 2.9

BEARTRACK PROJECT SUMMARY BALANCE SHEET

Cash, ST Investments 0.1 7.7 0.6 7.7 10.7

Other Current Assets 0.0 0.1 0.2 0.0 0.0

Total Current Assets 0.1 7.7 0.7 7.8 10.7

PP&E, Net 0.0 3.4 5.3 6.1 6.1

Other Long-Term Assets 0.1 7.8 0.8 8.0 11.0

Total Assets 0.1 11.2 6.1 14.1 17.1

Payable/Other ST Liabilities 0.0 0.1 0.2 0.4 0.4

Current Debt 0.2 0.0 0.0 0.0 0.0

Total Current Liabilities 0.3 0.1 0.2 0.4 0.4

LT Debt/Capital Leases 0.0 0.0 0.0 0.0 0.0

Other Long-Term Liabilities 0.3 0.1 0.2 0.4 0.4

Total Liabilities 0.3 0.1 0.2 0.4 0.4

Total Equity -0.2 11.1 6.0 13.7 16.7

RATIOS 2016A 2017A 2018A 2019E 2020E

Basic EPS (C$) 0.09 -0.17 -0.17 -0.13 -0.07

P/E 6.3x NM NM NM NM

VALUATION SUMMARY Adj. Basic EPS (C$) 0.09 -0.16 -0.17 -0.12 -0.07

Target Ev/Oz Moz C$/Sh. DPS (US$) 0.00 0.00 0.00 0.00 0.00

Combined EV/oz $28 2.80 C$1.80 Dividend Yield (%) 0% 0% 0% 0% 0%

12M Target Price (Rounded) C$1.80 CFPS (C$) -0.01 -0.08 -0.15 -0.11 -0.06

P/CF NM NM NM NM NM

OWNERSHIP SUMMARY EBITDA -0.2 -3.2 -7.2 -6.8 -6.9

Management/Insiders 13.0% EV/EBITDA NM NM NM NM NM

Orion Mine Finance 10.0%

U.S. Global Investors, Inc. 4.7% PROFIT & SOLVENCY 2016A 2017A 2018A 2019E 2020E

Konwave AG 3.4% EBITDA, % 0% 0% 0% 0% 0%

Other Institutional/High Net Worth 49.9% FCFPS -0.09 -0.11 -0.17 -0.11 -0.06

Retail 15% ROE, % NM NM NM NM NM

Yamana 4% ROA, % NM NM NM NM NM

Current Ratio 0.3x 107.6x 4.1x 18.8x 25.9x

Net Debt to Equity -1.0x -0.7x -0.1x -0.6x -0.6x

Page 58 of 75 Gabriel Gonzalez, CFA | 647.484.7285 | ggonzalez@echelonpartners.com

Revival Gold Inc. (RVG-TSXV) | January 10 2020

Investment Thesis

Rating

Our SPECULATIVE BUY rating is based on a 12-month $1.80/shr price target. Revival is earning a 100% interest in the past producing Beartrack Gold Mine, and owns 100% of the adjacent Arnett Creek project. Revival is targeting an expansion of Beartrack and Arnett Creek’s heap-leachable resources to potentially re-starting gold production, ahead of a possibly larger milling scenario involving an expansion of Beartrack’s transition/sulphide resources. Our view is further supported by the potential for Revival to show positive heap leach economics that benefit from Beartrack’s already existing gold production facilities, as well as demonstrating resource growth potential beyond Revival’s base-case 3.0Moz target.

Revival is led by Hugh Agro, President & CEO, a veteran mining executive with significant corporate and private equity experience. Wayne Hubert, Revival’s Non-Executive Chairman, led Andean Resources to its $3.6B sale to Goldcorp in 2010.

Valuation

Our $1.80/shr price target is based on an EV in-situ valuation applied to a conceptual 2.80Moz combined resource at Beartrack and Arnett Creek that we expect either to be delineated, or have visibility on 12 months from now.

Valuation

Source: Echelon Wealth Partners.

Risks

Revival’s principal asset is an option to earn a 100% interest in the Beartrack project. As an exploration company with no source of recurring revenues, completing the acquisition includes the risk of raising sufficient capital to complete the earn-in requirement, while minimizing dilution to shareholders. Revival also has a tight capital structure, but has seen limited trading liquidity as a result of cyclically limited investor appetite for the junior gold exploration and development sector.

These risks are in addition to the typical risks associated with mining/mineral investments, including but not limited to operating, financial, political/sovereign, labour, and commodity price risks.

% of US$ C$

EV/OZ TARGET $/oz US$M NAV /Shr /Shr

Beartrack $29.0 68.0 67% 0.84 1.20

Arnett Creek $25.0 16.3 16% 0.20 0.29

Ev/oz Sub-total 84.3 83% 1.04 1.49

CORPORATE

Working Capital 11.3 11% 0.14 0.20

Dilutive ITM Proceeds 5.9 6% 0.07 0.10

Long-Term Debt 0.0 0% 0.00 0.00

Minority Interest 0.0 0% 0.00 0.00

Corporate Sub-total 17.2 17% 0.21 0.30

Total NAV 101.4 100% 1.26 1.80

Page 59 of 75 Gabriel Gonzalez, CFA | 647.484.7285 | ggonzalez@echelonpartners.com

Revival Gold Inc. (RVG-TSXV) | January 10 2020

Important Information and Legal Disclaimers

Echelon Wealth Partners Inc. is a member of IIROC and CIPF. The documents on this website have been prepared for the viewer only as an example of strategy consistent with our recommendations; it is not an offer to buy or sell or a solicitation of an offer to buy or sell any security or instrument or to participate in any particular investing strategy. Any opinions or recommendations expressed herein do not necessarily reflect those of Echelon Wealth Partners Inc. Echelon Wealth Partners Inc. cannot accept any trading instructions via e-mail as the timely receipt of e-mail messages, or their integrity over the Internet, cannot be guaranteed. Dividend yields change as stock prices change, and companies may change or cancel dividend payments in the future. All securities involve varying amounts of risk, and their values will fluctuate, and the fluctuation of foreign currency exchange rates will also impact your investment returns if measured in Canadian Dollars. Past performance does not guarantee future returns, investments may increase or decrease in value and you may lose money. Data from various sources were used in the preparation of these documents; the information is believed but in no way warranted to be reliable, accurate and appropriate. Echelon Wealth Partners Inc. employees may buy and sell shares of the companies that are recommended for their own accounts and for the accounts of other clients.

Echelon Wealth Partners compensates its Research Analysts from a variety of sources. The Research Department is a cost centre and is funded by the business activities of Echelon Wealth Partners including, Institutional Equity Sales and Trading, Retail Sales and Corporate and Investment Banking.

Research Dissemination Policy: All final research reports are disseminated to existing and potential clients of Echelon Wealth Partners Inc. simultaneously in electronic form. Hard copies will be disseminated to any client that has requested to be on the distribution list of Echelon Wealth Partners Inc. Clients may also receive Echelon Wealth Partners Inc. research via third party vendors. To receive Echelon Wealth Partners Inc. research reports, please contact your Registered Representative. Reproduction of any research report in whole or in part without permission is prohibited.

Canadian Disclosures: To make further inquiry related to this report, Canadian residents should contact their Echelon Wealth Partners professional representative. To effect any transaction, Canadian residents should contact their Echelon Wealth Partners Investment advisor.

U.S. Disclosures: This research report was prepared by Echelon Wealth Partners Inc., a member of the Investment Industry Regulatory Organization of Canada and the Canadian Investor Protection Fund. This report does not constitute an offer to sell or the solicitation of an offer to buy any of the securities discussed herein. Echelon Wealth Partners Inc. is not registered as a broker-dealer in the United States and is not be subject to U.S. rules regarding the preparation of research reports and the independence of research analysts. Any resulting transactions should be effected through a U.S. broker-dealer.

U.K. Disclosures: This research report was prepared by Echelon Wealth Partners Inc., a member of the Investment Industry Regulatory Organization of Canada and the Canadian Investor Protection Fund. ECHELON WEALTH PARTNERS INC. IS NOT SUBJECT TO U.K. RULES WITH REGARD TO THE PREPARATION OF RESEARCH REPORTS AND THE INDEPENDENCE OF ANALYSTS. The contents hereof are intended solely for the use of, and may only be issued or passed onto persons described in part VI of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2001. This report does not constitute an offer to sell or the solicitation of an offer to buy any of the securities discussed herein.

Copyright: This report may not be reproduced in whole or in part, or further distributed or published or referred to in any manner whatsoever, nor may the information, opinions or conclusions contained in it be referred to without in each case the prior express written consent of Echelon Wealth Partners.

ANALYST CERTIFICATION

Company: Revival Gold Inc.| RVG:TSXV I, Gabriel Gonzalez, hereby certify that the views expressed in this report accurately reflect my personal views about the subject securities or issuers. I also certify that I have not, am not, and will not receive, directly or indirectly, compensation in exchange for expressing the specific recommendations or views in this report. IMPORTANT DISCLOSURES

Is this an issuer related or industry related publication? Issuer

Does the Analyst or any member of the Analyst’s household have a financial interest in the securities of the subject issuer? If Yes: 1) Is it a long or short position? No position; and, 2) What type of security is it? None

No

The name of any partner, director, officer, employee or agent of the Dealer Member who is an officer, director or employee of the issuer, or who serves in any advisory capacity to the issuer.

No

Does Echelon Wealth Partners Inc. or the Analyst have any actual material conflicts of interest with the issuer? No

Does Echelon Wealth Partners Inc. and/or one or more entities affiliated with Echelon Wealth Partners Inc. beneficially own common shares (or any other class of common equity securities) of this issuer which constitutes more than 1% of the presently issued and outstanding shares of the issuer?

No

During the last 12 months, has Echelon Wealth Partners Inc. provided financial advice to and/or, either on its own or as a syndicate member, participated in a public offering, or private placement of securities of this issuer?

Yes

During the last 12 months, has Echelon Wealth Partners Inc. received compensation for having provided investment banking or related services to this Issuer? Yes

Has the Analyst had an onsite visit with the Issuer within the last 12 months? No

Has the Analyst or any Partner, Director or Officer been compensated for travel expenses incurred as a result of an onsite visit with the Issuer within the last 12 months? No

Has the Analyst received any compensation from the subject company in the past 12 months? No

Is Echelon Wealth Partners Inc. a market maker in the issuer’s securities at the date of this report? No

Page 60 of 75 Gabriel Gonzalez, CFA | 647.484.7285 | ggonzalez@echelonpartners.com

Revival Gold Inc. (RVG-TSXV) | January 10 2020

RATING DEFINITIONS

Buy The security represents attractive relative value and is expected to appreciate significantly from the current price over the next 12 month time horizon.

Speculative Buy The security is considered a BUY but in the analyst’s opinion possesses certain operational and/or financial risks that are higher than average.

Hold The security represents fair value and no material appreciation is expected over the next 12-18 month time horizon.

Sell The security represents poor value and is expected to depreciate over the next 12 month time horizon.

Under Review While not a rating, this designates the existing rating and/or forecasts are subject to specific review usually due to a material event or share price move.

Tender Echelon Wealth Partners recommends that investors tender to an existing public offer for the securities in the absence of a superior competing offer.

Dropped Coverage

Applies to former coverage names where a current analyst has dropped coverage. Echelon Wealth Partners will provide notice to investors whenever coverage of an issuer is dropped.

RATINGS DISTRIBUTION

Recommendation Hierarchy Buy Speculative Buy Hold Sell Under Review Restricted Tender

Number of recommendations 50 42 18 1 7 0 4

% of Total (excluding Restricted) 42% 36% 15% 1% 6%

Number of investment banking relationships 14 19 5 0 2 0 0

% of Total (excluding Restricted) 35% 48% 13% 0% 5%

PRICE CHART, RATING & PRICE TARGET HISTORY

Date Target (C$) Rating

1 May 2018 $1.70 Spec Buy

24 Jul 2018 $1.90 Spec Buy

12 Feb 2019 Restricted

14 Mar 2019 $1.90 Spec Buy

6 Dec 2019 $1.80 Spec Buy

Data sourced from: Factset

$0.00

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

$1.40

$1.60

$1.80

$2.00

Jan 18 May 18 Sep 18 Jan 19 May 19 Sep 19

Revival Gold Inc. (TSXV:RVG)

Price PT revision

Page 61 of 75

8 January 2020

Telecom & New Media

Rob Goff, CFA | 416.933.3351 | rob.goff@echelonpartners.com

Pooja Sharma, B.Eng. (E&C), MFIN | 647.794.1922 | psharma@echelonpartners.com

Event: Returning Top Pick: We are maintaining our Top Pick status on AcuityAds for the sixth

consecutive quarter. AT returned a solid 12.3% in Q419 outperforming the broader S&P/TSX

Composite Index by 9.1%, the S&P/TSX Small Cap Index by 6.1% and the closest benchmark

S&P/TSX Capped IT Index by 4.1%. The shares recorded a full year gain of 19.1% after seeing a

retrenchment of 22.8% in Q319 owing to an uncertain regulatory environment. AT’s closest

competitor Trade Desk Inc. (TTD-Nasdaq, NR) was up 38.5% in Q419 after a Q319 decline of

~20% as fears pertaining to stricter data privacy regulations settled down.

AT significantly strengthened its product/service suite during 2019 with roughly $13.3M of

technology and development expense expected where its new AI and UI/UX platforms

were the primary focus. We were pleased to see the Q319 EBITDA margin at 7.0% exceed the

5.8% for Q318 with the y/y margins looking at EBITDA prior to technology and development

expense at 20.4% against 14.4%. We have our Q419 EBITDA margin at 11.0% up from 10.1%

y/y or 18.6% against 16.5% y/y prior to technology and development expenses. We see

upside potential with our Q419 forecasts.

We expect progress towards our 2020 EBITDA of $13.4M (2019: $8.1M) to support positive revaluation considerations given its enterprise value at $80.5M yielding an EV/EBITDA multiple of 6.0x that is less than half the EV/Revenue multiple of industry bellwether The Trade Desk currently valued at 15.1x’s revenue. On a comparable EV/EBITDA basis, TTD is valued at 48.8x with its EBITDA margins expected at 30.9% (47.5% pre-technology and development expense) for 2020 against our 10.3% (26.9% pre-technology and development expense) for AT.

Price Target: We are reiterating our $3.80 PT and Speculative Buy rating supporting an aggressive upside of 148.4% from the current share price of $1.53. The stock returned 19.1% in 2019 outperforming S&P/TSX Small Cap Index by ~3.1% that returned 15.8% in the past year. However, its outperformance lagged the upwards revision in consensus expectations as we entered 2019 with full year consensus expectations at $84.7M/$8.5M against the current expectation of $116.0M/$8.8M. Note that our beginning of the year EBITDA estimates for 2019 at $9.3M were impacted by an increase in the technology and development expense budget from ~$6.5M that represented a modest increase from the $6.1M in 2018 to ~$13M following the company’s Q119 results where they discussed the increased expenditures in light of its new product/service roll-out (we look for relatively flat technology and development expense in 2020).

Industry Consolidation: We continue to see AT as an attractive acquisition candidate considering the strength of its product/service (measured by its ramping traction), its current valuation where an industry acquirer would look for significant technology savings where the acquirer moved onto the AT platform and in light of the pace of consolidation.

The ad-tech industry underwent significant consolidation exiting 2019 as industry players position themselves for the nascent television market for digital advertising. Investors saw Roku (ROKU-Nasdaq, NR) buying demand-side platform (DSP) Dataxu (private) to strengthen its programmatic video advertising platform in a US$150M cash and stock deal;

AcuityAds Holdings Inc.

Larger, Longer Contract Wins Expected to Continue; Margin Improvement; Industry Consolidation; Maintaining Top Pick Q120 Status

AT-TSX: $1.53

Speculative Buy $3.80 Target

Projected Return: 148.4%

Market DataMarket Capitalization

Net Debt

Enterprise Value

Shares O/S

Avg. Daily Volume (M)

52 Week Range

Dividend Yield

Financial MetricsFYE - Dec 31

Revenue

Adj. EBITDA

EPS

FCF

Net Debt:EBITDA

FCF Yield

Valuation DataDCF - Current/Target

EV/EBITDA Current

Peers

Target

P/E Current

Peers

Target

Quarterly Data

Revenue 2018

2019

EBITDA 2018

2019

EPS 2018

2019

Company Description-$0.07 -$0.07 -$0.04 $0.03

3.3

Q1 Q2 Q3 Q4

8.0 12.0 17.3 32.9

89.0x 59.7x

AcuityAds provides Real-Time Bidding (RTB) solutions for

the digital advertising space. Its programmatic marketing

solution operates as a Demand Side Platform (DSP)

allowing large volumes of marketers and advertisers to

run automated and fully customizable digital advertising

campaigns using both Cost per Click (CPC) and Cost per

Mille (CPM) pricing methods. Its solution can perform all

types of targeting for publishing to traditional display,

rich and social media, as well as mobile platforms.

-$0.05 -$0.06 -$0.12

27.9 25.8 26.9 34.8

(2.0) 0.6 1.0

1.1 1.3 1.9 3.8

-$0.09

84.2x

NM NM NM

58.5x 21.5x 13.0x

NM NM NM

C2018 C2019E C2020E

63.6x 37.5x 29.6x

27.2x 10.0x 6.0x

-8.6% -22.9% 9.7%

$3.85 $4.18

(5.1) (12.4) 5.2

5.0 2.7 1.3

3.0 8.1 13.4

($0.31) ($0.18) ($0.00)

2018A 2019E 2020E

70.2 115.4 130.2

40.9

62.6

17.9

80.5

0.15

$1.07 - $1.94

0.0%

0

200

400

600

800

$0.00

$0.50

$1.00

$1.50

$2.00

Volume (M) Price

Page 62 of 75

AcuityAds Holding Inc. (AT-TSX) | January 8 2020

Rob Goff, CFA | 416.933.3351 | rob.goff@echelonpartners.com

Rubicon Project (RUBI-NYSE, NR) and Telaria (TLRA-NYSE, NR) announcing a merger in an attempt to form world’s largest independent supply-side platform (SSP) outside of the walled gardens in an all stock deal (exchange ratio of 1.082 shares of Rubicon Project for each common share of Telaria); AT&T (T-NYSE, NR) acquiring Clypd (private) which is known for its SSP specialising in both connected and linear TV for an undisclosed amount; and early this year Tremor International (TRMR-LSE, NR, Market Cap. US$211M) a mobile and CTV video ad tech company has agreed to acquire Unruly, News Corp’s (NWSA-Nasdaq, NR) programmatic video marketplace by consenting to pay by issuing ~6.91% of Tremor’s issued voting share with 18 months of lock-up period. The competition for data driven adverting is intensifying with the growth in video ads spending at 36% for H119, as reported by Interactive Advertising Bureau.

Magna Global estimates that in spite of contributing 29% to the total viewership, OTT still only accounts for 3% of the ad budgets. However, we expect OTT budgets to increase and ad-supported streaming services to become a more economically viable option. While clearly with a vested interest, The Trade Desk references a survey they conducted suggesting that more than half of the U.S. consumers are unwilling to pay for more than $20/month for streaming services. We have seen that the increased competition between the top-tier OTT providers such as Netflix, Amazon, Apple and Disney has intensified the urgency to allocate higher than usual budget on original content creation. Thus, the consumer’s unwillingness to pay for multiple subscription services will require some of the content providers to migrate to AVOD services.

We continue to maintain our positive view on the $80B programmatic advertising industry within the $300B digital advertising industry, where the expected growth rate is put at 24%. Within digital advertising, connected TV (CTV) is emerging as a catalyst supporting an increased advertising budget allocated to digital versus traditional channels. We continue to believe that marquee wins validate AT’s AI technology/platform, open doors for further wins, build investor support and put AT under closer watch by competitors and potential acquirers. Consequently, we retain our bullish organic outlook that sees additional upside from our baseline estimates.

Thesis and Results: We retain our longstanding positive view towards AT’s programmatic platform. It was this view that prompted our decision to add AT to our Top Pick portfolio as of September 2018 when the shares were at $1.13.

We noted at the time that we were taking the uncharacteristic move of adding a turnaround situation into our portfolio given the expectation that revenue traction was set to take on a new trajectory.

Valuation: Bellwether Benchmark: We note that the shares of The Trade Desk (where estimates for 2019/2020 revenue growth stand at 38.0%/30.5%) are currently valued at 19.7x/15.1x EV/Revenue and 61.99x/48.75x EV/EBITDA for 2019/2020 relative to AT valued at 0.7x/0.6x and 10.0x/6.0x, respectively. AT noted that it had $5.9M of cash on hand at the end of the quarter Q319 with overall availability of funds at ~$10M considering its line of credit.

While The Trade Desk’s scale, capital flexibility, and execution warrant a premium, the valuation gap warrants consideration before considering takeout potential. We looked at TDD’s quarterly consensus forecasts to highlight its seasonality and y/y growth.

TDD has Q419 q/q revenue advancing at 30.0% and full year growth expectations 2019/2020 are at 38.0%/30.5% compared to 31.6%/65.2%/11.4% (baseline) for AT. We have previously noted that TDD has received some criticism for its rigid pricing. We are encouraged to see AT gain greater traction with larger accounts. AT signed four major contracts in 2019. These larger contracts hold the potential for upside and lumpiness against our baseline forecasts. Furthermore, we note that a prospective acquirer such as The Trade Desk would realize substantial technology savings considering our $13.3M forecast for AT’s 2019 technology and development expense. We take the Company’s four most recent contract wins of $1.7M, $3.3M, $2.0M and $7.0M as evidence of AT’s ability to move up-market.

DCF Valuation Support: Our one/two-year DCF values of $3.85/$4.18 reflect increased baseline growth expectations. We currently use a 17.5% discount rate; we prefer DCF valuations. We see room to lower our discount rate as the Company executes on its growth plans relative to our forecasts. A 2.0% reduction in our discount rate increases our target DCF by 3.8%.

Page 63 of 75

AcuityAds Holding Inc. (AT-TSX) | January 8 2020

Rob Goff, CFA | 416.933.3351 | rob.goff@echelonpartners.com

New Initiatives: The Company announced in the fall of 2019 that their updated algorithm for managed services campaign had led to an average improvement of 15% in campaign ROIs. At that time, AT had tested the enhanced algorithm on ~33% of its existing clients and indicated that it was ready to launch it across the board over the next few weeks. The Company clarified that the new technology is less dependant on cookies and the improvement in ROI is generated by using high quality input variables. We continue to see upside potential in our forecasts and the consensus about both industry growth and the prospects of enhanced outperformance by AT with its product/service momentum. This view further considers the planned release of new user-friendly UI/UX for self-serve platform in Q120 in beta and full-fledged launch in late 2020. We continue to see the potential for AT’s self-service platform to realize significant upside through additional distribution channels building on initial trials with traditional radio where the Company has been active in Canada for over one year and started its first work in the US during Q119. We were encouraged by the bullish view on programmatic advertising to the connected TV (CTV) market (aka Hulu, Roku, Apple TV) where viewership growth and early viewer response rates have seen CTV displace mobile as the hot topic surrounding growth discussions.

We see huge growth potential in the CTV market that currently accounts only 3% of the total advertising budget while commanding 30% of the total viewership hours. We note that Extreme Reach (private) broke down the share of click-through, completion and viewability rates for video ads across desktop, mobile, tablet and CTV show. For 2018, Extreme Reach put CTV at 38% of video ad viewing as it surpassed mobile at 30% with Desktop at 21% against 16%, 34% and 32% for 2017. The significant y/y change is worth dividing to look at Q418 when CTV increased 193% y/y to gain 44% of impressions up from just 16% in Q417. We look for CTV revenues at AT to exit Q120 at ~$1M quarterly.

Programmatic Growth and Emerging Trends: According to IDC Global advertising spend was expected to reach $725B in 2019 and $1T in the next seven years. As expected, digital advertising is expected to continue its outperformance with digital advertising revenues forecast to gain 13.3% Y/Y. Within the digital market, we focus on AT’s target addressable market for real-time bidding programmatic advertising (2018: $28B; 2019: $33B; 18% Y/Y). As advertisers find more value in reaching their audiences through data-driven micro-transactions as compared to intuition-driven bulk-transactions, the expectations are that digital advertising will migrate fully onto programmatic exchanges. We see the increased adoption of connected television (CTV) expanding a premium audience for programmatic advertising. Furthermore, we see audio platforms shifting towards the use of programmatic advertising (AcuityAds has been working on audio for over a year).

As the traditional N. American video platforms see annual subscriber losses of ~2-4%, advertisers are shifting their advertising budgets ($230B in 2018) to CTV and online video platforms away from the linear TV platforms. On the publishing side, major OTT platforms like Comcast and Hulu, have made their inventory available programmatically. With more viewers moving to OTT and more inventory becoming available, the industry is setting itself up for a major shift.

On the last earning call, management gave special mention to the 300% Y/Y growth in the CTV revenues, although absolute $ revenue still small compared to other devices, is an indication that CTV can grow to become a significant growth driver in the quarters to come. We look for CTV revenues to exit Q120 at a quarterly run-rate of ~$1M. Of note, Spotify reported a 48% y/y increase its Q319 programmatic and self-serve ad revenue, representing 24% of its total ad-supported revenue compared to 22% of the total ad-supported revenue in Q318. Programmatic and self-serve advertising on audio platforms is becoming increasingly prevalent and appears to be pushing through its tipping point towards widespread adoption. We see it becoming significant & new normal for audiences to listen to the right ads as they tune into their favorite podcast, away from the screen as they work, cook or drive.

Page 64 of 75

AcuityAds Holding Inc. (AT-TSX) | January 8 2020

Rob Goff, CFA | 416.933.3351 | rob.goff@echelonpartners.com

Exhibit 1 – Results and Forecasts

Source: Company Reports (historical data), Echelon Wealth Partners (estimates), FactSet (share price data, consensus estimates)

AcuityAds Holdings Inc. Q118 Q218 Q318 Q418 2018 Q119 Q219 Q319 Q419E 2019E 2020E 2021E 18-21

Consolidated Act. Act. Act. Act. Act. Act. Act. Act. Est. Est. Est. Est. CAGR

Revenue - Pro Forma 8,036,573 11,964,920 17,298,170 32,936,353 70,236,016 27,921,884 25,811,114 26,864,507 34,794,159 115,391,664 130,201,471 147,874,612 28.2%

Revenue - 140 Proof and VM 0 0 0 0

Growth % -30.3% -30.7% 19.1% 117.5% 20.1% 247.4% 115.7% 55.3% 5.6% 64.3% 12.8% 13.6%

Revenue Consensus 11,851,480 12,278,520 15,933,330 32,900,000 70,200,000 27,921,885 25,811,113 26,900,000 35,398,830 116,001,930 129,150,500 147,874,620

EBITDA - Pro Forma -1,985,407 610,606 997,739 3,338,309 2,961,247 1,050,597 1,310,688 1,877,930 3,824,108 8,063,323 13,368,085 15,746,417 74.5%

Growth % - Pro Forma NM -32.6% -191.3% 272.3% 219.5% NM 114.7% 88.2% 14.6% 172.3% 65.8% 17.8%

Margin % NM 5.1% 5.8% 10.1% 4.2% 3.8% 5.1% 7.0% 11.0% 7.0% 10.3% 10.6%

Flow-through % 63.1% 5.6% 75.3% 13.7% 17.3% 15.3% 5.1% 9.2% 26.1% 11.3% 35.8% 13.5%

EBITDA Consensus -41,100 -200,000 1,200,000 3,300,000 2,850,000 1,003,245 1,152,672 1,669,483 5,004,822 8,790,831 13,293,617 15,746,417

Capex -592,901 -534,211 -659,026 -871,859 2,657,997 -1,751,946 -1,116,704 -3,997,423 -5,177,351 -12,043,424 -13,020,147 -14,787,461 -277.2%

Intensity % -7.4% -4.5% -3.8% -2.6% 3.8% -6.3% -4.3% -14.9% -14.9% -10.4% -10.0% -10.0%

EPS -$0.09 -$0.05 -$0.06 -$0.12 -$0.31 -$0.07 -$0.07 -$0.04 $0.03 -$0.18 -$0.02 -$0.01

EPS Consensus -$0.02 -$0.04 -$0.01 $0.05 -$0.26 -$0.07 -$0.07 -$0.03 $0.04 -$0.13 $0.02 -$0.01

AcuityAds Holdings Inc. Q118 Q218 Q318 Q418 2018 Q119 Q219 Q319 Q419E 2019E 2020E 2021E 18-21

Segmented - Business Line Act. Act. Act. Act. Act. Act. Act. Act. Est. Est. Est. Est. CAGR

Managed Services Revenues MSR 5,470,789 8,322,814 12,887,288 27,726,744 54,407,635 21,646,105 18,740,857 20,156,487 27,865,378 88,408,827 97,956,980 108,536,334 25.9%

% of Total 68.1% 74.5% 74.5% 84.2% 77.5% 77.5% 72.6% 75.0% 80.1% 76.6% 75.2% 73.4%

Growth y/y % 4.8% -26.6% 28.2% 128.0% 40.4% 295.7% 259.1% 142.2% 215.1% 62.5% 10.8% 10.8%Self Service Technology Revenue 2,565,784 3,642,106 4,410,882 5,209,610 15,828,382 6,275,779 7,070,257 6,708,020 6,928,781 26,982,837 32,244,491 39,338,278 35.5%

% of Total 31.9% 30.4% 25.5% 15.8% 22.5% 22.5% 27.4% 25.0% 19.9% 23.4% 24.8% 26.6%

Growth y/y % -59.3% -38.6% -1.4% 74.6% -19.6% 144.6% 94.1% 52.1% 33.0% 70.5% 19.5% 22.0%

Segmented - Geography (M)

Canadian Revenue 1,838,991 3,070,651 4,257,643 4,330,273 13,497,558 3,005,099 4,149,006 3,346,852 5,066,419 15,567,376 16,734,930 17,990,049 10.1%

% of Total 22.9% 25.7% 24.6% 13.1% 19.2% 10.8% 16.1% 12.5% 14.6% 13.5% 12.9% 12.2%

Growth y/y % -17.3% 12.3% 37.3% 63.2% 26.0% 63.4% 35.1% -21.4% 17.0% 15.3% 7.5% 7.5%US Revenue 4,791,078 7,187,303 10,978,490 24,473,288 47,430,159 21,553,416 16,699,934 18,376,582 24,779,189 81,409,121 99,319,128 115,210,188 34.4%

% of Total 59.6% 60.1% 63.5% 74.3% 67.5% 77.2% 64.7% 68.4% 71.2% 70.6% 76.3% 77.9%

Growth y/y % 0.9% -32.5% 25.4% 119.5% 34.3% 349.9% 132.4% 67.4% 1.2% 71.6% 22.0% 16.0%

International Revenue 1,406,504 1,715,966 2,062,037 4,123,792 9,308,299 3,363,369 4,962,173 5,141,074 4,948,550 18,415,166 14,147,413 14,674,375 16.4%

% of Total 17.5% 14.3% 11.9% 12.5% 13.3% 12.0% 19.2% 19.1% 14.2% 16.0% 10.9% 9.9%

Growth y/y % -69.1% -55.7% -22.6% 207.9% -25.1% 139.1% 189.2% 149.3% 20.0% 97.8% 10.9% 9.9%

Costs

Media Costs 3,880,428 5,598,800 7,985,576 16,393,242 33,858,046 15,476,731 13,414,501 13,847,039 17,397,080 60,135,351 65,100,735 73,937,306 29.7%

MC Growth % revenues48.3% 46.8% 46.2% 49.8% 48.2% 55.4% 52.0% 51.5% 50.0% 52.1% 50.0% 50.0%

Page 65 of 75

AcuityAds Holding Inc. (AT-TSX) | January 8 2020

Rob Goff, CFA | 416.933.3351 | rob.goff@echelonpartners.com

AcuityAds Holdings Inc. (AT-CA, $1.53) - Data Sheet SPEC. BUY | PT: $3.80Company Description Consensus 3 Mths Ago Current Return

Rating: Buy Buy

Target: $3.37 $3.33 118%

Median: $3.45 $3.40 122%

High: $3.80 $3.80 148%

Low: $2.65 $2.65 73%

Consensus Distribution

Sector Outperform/Buy 6

Sector Perform/Hold 0

Sector Underperform/Sell 0

# Est 6

Indexed Price Movements Historical Valuation

FactSet- Indexed Price Movements FactSet - HISTORICAL LTM EV/SALES

Key Financial MetricsFinancial Summary 2016 2017 2018 Q119 Q219 Q319 Q419E 2019E 2020E 2021E Key Statistics Value

Consolidated 52-Week High $1.94 26.8%

Revenue 39.6 58.5 70.2 27.9 25.8 26.9 34.8 115.4 130.2 147.9 52-Week Low $1.07 (30.1%)

Growth y/y 91.4% 47.6% 20.1% 247.4% 115.7% 55.3% 5.6% 64.3% 12.8% 13.6% Avg Vol (3-Mo) 149.3

Cons. 39.6 58.5 70.2 27.9 25.8 26.9 35.4 116.0 129.2 147.9 Shares Outstanding 40.9

Cons. 3 Mts. Ago 39.6 58.5 70.2 27.9 25.8 24.6 35.0 113.3 126.7 149.4 Market Cap 62.6

Net Debt 17.9

EBITDA 3.0 0.9 3.0 1.1 1.3 1.9 3.8 8.1 13.4 15.7 Enterprise Value 80.5

Growth y/y NA NA 219.5% NA 114.7% 88.2% 14.6% 172.3% 65.8% 17.8% Div Yield 0.0%

Margin 7.5% 1.6% 4.2% NA 5.1% 7.0% 11.0% 7.0% 10.3% 10.6% FYE 12/31/2018

Flow-Through NA NA 17.3% 15.3% 5.1% 9.2% 26.1% 11.3% 35.8% 13.5% Employees NA

Cons. 3.0 1.9 2.9 1.0 1.2 1.7 5.0 8.8 13.3 15.7

Cons. 3 Mts. Ago 3.0 1.9 2.9 1.0 1.2 1.2 5.2 8.6 13.0 16.9

EPS ($0.03) ($0.21) ($0.31) ($0.07) ($0.07) ($0.04) $0.03 ($0.18) ($0.00) $0.01 Top Inst. Ownership % Held

Growth y/y (81.0%) 569.4% 49.9% (30.9%) 40.7% (39.3%) (126.0%) (41.5%) (98.4%) (587.2%) Fidelity (Canada) Asset Management ULC 11.1%

Cons. (0.03) (0.20) (0.26) (0.07) (0.07) (0.03) 0.04 (0.13) 0.02 (0.01) Timelo Investment Management, Inc. 0.4%

Cons. 3 Mts. Ago (0.03) (0.20) (0.26) (0.07) (0.07) (0.04) 0.04 (0.12) 0.01 (0.02) Arrow Capital Management, Inc. 0.3%

Cash 7.3 4.8 8.0 6.7 5.2 5.9 2.2 2.2 7.5 6.2

Net Debt 2.1 7.3 14.9 18.3 17.7 17.9 21.6 21.6 16.9 17.9

FCF (5.4) (4.1) (5.1) (3.3) (3.5) (1.9) (3.4) (12.4) 5.2 (1.1)

Operating Summary Valuation F2018 F2019E F2020E

Managed Services Revenue 20.9 38.8 54.4 21.6 18.7 20.2 27.9 88.4 98.0 108.5 Revenue 58.5 70.2 115.4

Growth y/y 55.2% 164.9% 40.4% 295.7% 125.2% 56.4% 0.5% 62.5% 10.8% 10.8% EBITDA 0.9 3.0 8.1

Self Service Technology Revenue 18.7 19.7 15.8 6.3 7.1 6.7 6.9 27.0 32.2 39.3 Depreciation (3.1) (6.0) (7.6)

Growth y/y 159.2% 5.5% -19.6% 144.6% 94.1% 52.1% 33.0% 70.5% 19.5% 22.0% Capex (2.0) (2.7) (12.0)

Media Costs 19.6 35.6 33.9 15.5 13.4 13.8 17.4 60.1 65.1 73.9 Discretionary CF (4.1) (5.1) (12.4)

Growth y/y 84.7% 49.5% 15.3% 298.8% 139.6% 73.4% 6.1% 77.6% 8.3% 13.6% Discount Rate 9.50%

General and Administrative 4.0 5.5 6.9 1.4 2.3 1.9 2.6 8.1 8.5 9.0 Terminal EBITDA Multiple 8.50x

G & A as % of Revenue 10.1% 9.4% 9.8% 5.0% 8.7% 6.9% 7.5% 7.1% 6.6% 6.1% Current 1-Yr TGT

CAPEX (1.50) (1.96) (2.66) (1.75) (1.12) (4.00) (5.18) (12.04) (13.02) (14.79) Terminal Value PV 107.0 133.2

CAPEX as % of Revenue -3.8% -3.4% -3.8% -6.3% -4.3% -14.9% -14.9% -10.4% -10.0% -10.0% Equity Value 116.4 123.9

DCF Value $3.85 $4.18

Comparables and EcosystemReturn Revenue EBITDA EPS

1 Week 1 Month 3 Month YTD 1 Year F2018 F2019E F2018 F2019E F2018 F2019E

AcuityAds $1.53 $3.80 - 148.4% 10.1% 21.4% 18.6% 11.7% 29.7% 70.2 115.4 3.0 8.1 -$0.31 -$0.18

Facebook $215.87 $240.96 - 11.6% 2.4% 6.0% 18.6% 3.8% 54.3% 55,838.0 70,487.3 29,676.0 38,785.3 $7.57 $6.38

The Trade Desk $287.67 $256.56 - (10.8%) 2.9% 13.3% 44.4% 7.9% 125.0% 477.3 658.7 118.6 209.4 $1.92 $3.36

The Rubicon Project $10.63 $11.25 - 5.9% 25.4% 33.5% 22.9% 28.8% 164.1% 124.7 155.7 -26.1 24.3 -$1.23 -$0.10

Peer Average - 2.2% 10.2% 17.6% 28.6% 13.5% 114.5%

Enterprise FCF Yield EV/EBITDA EV/EBITDA - Target EV/Sales P/CFPS

Value F2018 F2019E C2018 C2019E C2020E C2018 C2019E C2020E C2018 C2019E C2020E C2018 C2019E C2020E

AcuityAds 81 -8.2% -19.8% 27.2x 10.0x 6.0x 58.5x 21.5x 13.0x 1.1x 0.7x 0.6x NM NM 2.5x

Facebook 569,621 2.5% 3.1% 19.4x 14.1x 11.8x 21.8x 16.0x 13.4x 10.3x 7.8x 6.1x 21.5x 23.3x 18.2x

The Trade Desk 13,351 0.4% 0.7% 107.8x 60.8x 47.3x 95.9x 54.1x 42.1x 26.8x 19.3x 14.7x 152.6x 71.8x 61.0x

The Rubicon Project 496 (4.8%) (0.8%) NM NA NA NM NA NA 3.9x NA NA NA NA NA

Peer Average (0.6%) 1.0% 63.6x 37.5x 29.6x 58.9x 35.0x 27.7x 13.7x 13.5x 10.4x 87.1x 47.6x 39.6x

*Non-coverage names reflect consensus, 2016 numbers for AcuityAds are based on actual results

Source: Consensus Data - FactSet, Historical Data – Company Filings, Forecasts/Estimates – Echelon Wealth Partners.

Comparables

Multiples Analysis

AcuityAds provides Real-Time Bidding (RTB) solutions for

the digital advertising space. Its programmatic marketing

solution operates as a Demand Side Platform (DSP)

allowing large volumes of marketers and advertisers to run

automated and fully customizable digital advertising

campaigns using both Cost per Click (CPC) and Cost per

Mille (CPM) pricing methods. Its solution can perform all

types of targeting for publishing to traditional display, rich

and social media, as well as mobile platforms.

Comparables

and Peer AnalysisPrice Target Div Yield

Pot.

Return

0

200

400

600

800

1000

1200

1400

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

Vo

lum

e (M Sh

ares)Sto

ck P

rice

($

)

Last Sale Price 50-Day MA 200-Day MA

-0.4x

-0.2x

0.0x

0.2x

0.4x

0.6x AcuityAds Holdings Inc Facebook, Inc. Class A Trade Desk, Inc. Class A

0.0x

5.0x

10.0x

15.0x

20.0x AcuityAds Holdings Inc Facebook, Inc. Class A Trade Desk, Inc. Class A

Page 66 of 75

AcuityAds Holding Inc. (AT-TSX) | January 8 2020

Rob Goff, CFA | 416.933.3351 | rob.goff@echelonpartners.com

Important Information and Legal Disclaimers

Echelon Wealth Partners Inc. is a member of IIROC and CIPF. The documents on this website have been prepared for the viewer only as an example of strategy consistent with our recommendations; it is not an offer to buy or sell or a solicitation of an offer to buy or sell any security or instrument or to participate in any particular investing strategy. Any opinions or recommendations expressed herein do not necessarily reflect those of Echelon Wealth Partners Inc. Echelon Wealth Partners Inc. cannot accept any trading instructions via e-mail as the timely receipt of e-mail messages, or their integrity over the Internet, cannot be guaranteed. Dividend yields change as stock prices change, and companies may change or cancel dividend payments in the future. All securities involve varying amounts of risk, and their values will fluctuate, and the fluctuation of foreign currency exchange rates will also impact your investment returns if measured in Canadian Dollars. Past performance does not guarantee future returns, investments may increase or decrease in value and you may lose money. Data from various sources were used in the preparation of these documents; the information is believed but in no way warranted to be reliable, accurate and appropriate. Echelon Wealth Partners Inc. employees may buy and sell shares of the companies that are recommended for their own accounts and for the accounts of other clients.

Echelon Wealth Partners compensates its Research Analysts from a variety of sources. The Research Department is a cost centre and is funded by the business activities of Echelon Wealth Partners including, Institutional Equity Sales and Trading, Retail Sales and Corporate and Investment Banking.

Research Dissemination Policy: All final research reports are disseminated to existing and potential clients of Echelon Wealth Partners Inc. simultaneously in electronic form. Hard copies will be disseminated to any client that has requested to be on the distribution list of Echelon Wealth Partners Inc. Clients may also receive Echelon Wealth Partners Inc. research via third party vendors. To receive Echelon Wealth Partners Inc. research reports, please contact your Registered Representative. Reproduction of any research report in whole or in part without permission is prohibited.

Canadian Disclosures: To make further inquiry related to this report, Canadian residents should contact their Echelon Wealth Partners professional representative. To effect any transaction, Canadian residents should contact their Echelon Wealth Partners Investment advisor.

U.S. Disclosures: This research report was prepared by Echelon Wealth Partners Inc., a member of the Investment Industry Regulatory Organization of Canada and the Canadian Investor Protection Fund. This report does not constitute an offer to sell or the solicitation of an offer to buy any of the securities discussed herein. Echelon Wealth Partners Inc. is not registered as a broker-dealer in the United States and is not be subject to U.S. rules regarding the preparation of research reports and the independence of research analysts. Any resulting transactions should be effected through a U.S. broker-dealer.

U.K. Disclosures: This research report was prepared by Echelon Wealth Partners Inc., a member of the Investment Industry Regulatory Organization of Canada and the Canadian Investor Protection Fund. ECHELON WEALTH PARTNERS INC. IS NOT SUBJECT TO U.K. RULES WITH REGARD TO THE PREPARATION OF RESEARCH REPORTS AND THE INDEPENDENCE OF ANALYSTS. The contents hereof are intended solely for the use of and may only be issued or passed onto persons described in part VI of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2001. This report does not constitute an offer to sell or the solicitation of an offer to buy any of the securities discussed herein.

Copyright: This report may not be reproduced in whole or in part, or further distributed or published or referred to in any manner whatsoever, nor may the information, opinions or conclusions contained in it be referred to without in each case the prior express written consent of Echelon Wealth Partners.

ANALYST CERTIFICATION

Company: AcuityAds Holding Inc. | AT: TSX I, Rob Goff, hereby certify that the views expressed in this report accurately reflect my personal views about the subject securities or issuers. I also certify that I have not, am not, and will not receive, directly or indirectly, compensation in exchange for expressing the specific recommendations or views in this report. IMPORTANT DISCLOSURES

Is this an issuer related or industry related publication? Issuer

Does the Analyst or any member of the Analyst’s household have a financial interest in the securities of the subject issuer? If Yes: 1) Is it a long or short position? No positions; and, 2) What type of security is it? None.

No

The name of any partner, director, officer, employee or agent of the Dealer Member who is an officer, director or employee of the issuer, or who serves in any advisory capacity to the issuer.

No

Does Echelon Wealth Partners Inc. or the Analyst have any actual material conflicts of interest with the issuer? No

Does Echelon Wealth Partners Inc. and/or one or more entities affiliated with Echelon Wealth Partners Inc. beneficially own common shares (or any other class of common equity securities) of this issuer which constitutes more than 1% of the presently issued and outstanding shares of the issuer?

No

During the last 12 months, has Echelon Wealth Partners Inc. provided financial advice to and/or, either on its own or as a syndicate member, participated in a public offering, or private placement of securities of this issuer?

Yes

During the last 12 months, has Echelon Wealth Partners Inc. received compensation for having provided investment banking or related services to this Issuer? Yes

Has the Analyst had an onsite visit with the Issuer within the last 12 months? Management Meeting – Head Office, Toronto in March 2019 Yes

Has the Analyst or any Partner, Director or Officer been compensated for travel expenses incurred as a result of an onsite visit with the Issuer within the last 12 months? No

Has the Analyst received any compensation from the subject company in the past 12 months? No

Is Echelon Wealth Partners Inc. a market maker in the issuer’s securities at the date of this report? No

Page 67 of 75

AcuityAds Holding Inc. (AT-TSX) | January 8 2020

Rob Goff, CFA | 416.933.3351 | rob.goff@echelonpartners.com

RATING DEFINITIONS

Buy The security represents attractive relative value and is expected to appreciate significantly from the current price over the next 12 month time horizon.

Speculative Buy The security is considered a BUY but in the analyst’s opinion possesses certain operational and/or financial risks that are higher than average.

Hold The security represents fair value and no material appreciation is expected over the next 12-18 month time horizon.

Sell The security represents poor value and is expected to depreciate over the next 12 month time horizon.

Under Review While not a rating, this designates the existing rating and/or forecasts are subject to specific review usually due to a material event or share price move.

Tender Echelon Wealth Partners recommends that investors tender to an existing public offer for the securities in the absence of a superior competing offer.

Dropped Coverage

Applies to former coverage names where a current analyst has dropped coverage. Echelon Wealth Partners will provide notice to investors whenever coverage of an issuer is dropped.

RATINGS DISTRIBUTION

Recommendation Hierarchy Buy Speculative Buy Hold Sell Under

Review Restricted Tender

Number of recommendations 50 42 18 1 7 0 4

% of Total (excluding Restricted) 42% 36% 15% 1% 6%

Number of investment banking relationships 14 19 5 0 2 0 0

% of Total (excluding Restricted) 35% 48% 13% 0% 5%

PRICE CHART, RATING & PRICE TARGET HISTORY

Date Target (C$) Rating

8 Aug 2017 $6.40 Spec Buy

11 Sep 2017 $4.25 Spec Buy

8 Nov 2017 $3.60 Spec Buy

9 May 2018 $1.20 Spec Buy

16 Aug 2018 $1.40 Spec Buy

10 Oct 2018 $1.80 Spec Buy

15 Nov 2018 $2.30 Spec Buy

24 Jan 2019 $3.40 Spec Buy

13 Mar 2019 $3.60 Spec Buy

28 May 2019 $3.80 Spec Buy

Coverage Initiated: Jan 27, 2016

Data sourced from: FactSet

$0.00

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

$7.00

Jan 16 May 16 Sep 16 Jan 17 May 17 Sep 17 Jan 18 May 18 Sep 18 Jan 19 May 19 Sep 19

AcuityAds Holdings Inc. (AT-CA)

Price Price Target Revisions

Page 68 of 75

January 9 2020

Telecom & New Media

Rob Goff, CFA | 416.933.3351 | rob.goff@echelonpartners.com

Pooja Sharma | 647-794-1922 | psharma@echelonpartners.com

Event: We are maintaining our Top Pick status on Score Media and Gaming Inc.

SCR returned 24.1% in Q419 following an impressive return of 56.8% in Q319 when we first introduced the Company to our Top Picks portfolio. 2019 was a successful year for the Company with the launch of its sports betting app in New Jersey and led to the current share price of $0.83 after trading in the price range of $0.30-0.40/shr in H119. It is worth noting that SCR was the top performer in our Q319 Top Picks portfolio and second top performer for Q419 portfolio. The shares of Score Media and Gaming have significantly outperformed the boarder S&P/TSX Composite Index by 21.0% in Q419 and S&P/TSX Small Cap Index by 17.9%.

Price Target and Investment Thesis : With this note, we are increasing our PT to $1.10/shr from $0.90/shr and retaining our Speculative Buy rating on the Company. We believe that growth in the New Jersey’s sports betting market represents a strong wave to showcase the potential of the SCR’s betting platform given its tight integration with its Sport news App and differentiated, seamless user experience. NJ’s monthly sports betting handle reached a record high of US$562.7M in November, up 70% y/y, with almost 86% coming from online bets. We continue to look for sports betting to stimulate legacy app user growth, strengthen advertising yield gains, and prospectively introduce new revenue streams on transactions.

On the esports side of the business, management decided to shut down its esports App in May 2019 and shifted focus to its YouTube channel, capitalising on their strength of creating engaging sports/esports content on the right platform. SCR’s esports channel on YouTube is highly appreciated by the viewers and has been able to garner more than 1M subscribers from merely 30K in 2018. We look for SCR to monetize on its social media success in 2020 as it has achieved a critical scale on YouTube in particular but also Facebook (FB-Nasdaq, NR) and Instagram. While the focus is on gambling, we see the potential for SCR’s esports channels on YouTube to gain further traction and monetization through sponsorships and product placement in 2020. We see that the esports content on theScore’s YouTube channel is already getting recognised for its quality amongst viewers and parterns. The Company sealed a deal with Ubisoft (private) to create video content series dedicated to the interactive entertainment company’s esports title, Tom Clancy’s Rainbow Six Siege.

We believe theScore’s focus on mobile users, its heavy in-game usage (~70%), and its scale strengthen its partnership leverage in the betting ecosystem. The impressive success of Draft Kings and FanDuel speak to the value of established client lists and the ability to transfer existing/recent relationships into mobile betting where Draft Kings and FanDuel were put at roughly 44% and 38%, respectively, of the New Jersey sports betting markets in January 2019. We note that since the June 2018 Supreme Court ruling that PASPA was unconstitutional, the New Jersey online sports betting market revenue was put at US$32.9M (US$562.7M total wagered) for November 2019, a y/y increase of ~55%. Just to frame the potential in New Jersey, arbitrarily applying a 5% market share for theScore would have been ~US$1.6M for the month of November US$19.7M annualized where theScore was at a 5% share.

Mobile Betting : Betting represents a huge market on its own while it is seen as a significant catalyst for user growth and advertising. theScore’s clear focus and early mover strategy support aggressive prospects across all drivers.

Score Media and Gaming Inc. Sports and Betting App Integration; User Migration; Esports Channel

Monetization; Retaining Top Pick Q120 Status; PT up to $1.10

SCR-TSXV: $0.83

Speculative Buy $1.10 ↑ (prev. $0.90) Target

Projected Return: 32.5%

Score Media and Gaming Inc.Market Capitalization

Net Debt

Enterprise Value

Basic Shares O/S

FD Shares O/S

Avg. Daily Volume (M)

52 Week Range

Dividend Yield

Revisions

2020E Revenue

2020E EBITDA

2020E EPS

Financial MetricsFYE - Aug 31

Revenue

Adj. EBITDA

EPS

FCF

Net Debt:EBITDA

FCF Yield

Valuation Data

DCF - Current/Target

EV/EBITDA Current

Peers

Target

P/E Current

Peers

Target

Quarterly Data

Revenue 2017

2018

EBITDA 2017

2018

EPS 2017

2018

Company Description

theScore creates mobile sports apps to deliver real-time

news, scores, fantasy updates and alerts to fans on a

variety of sports, players, teams and stats. theScore

publishes its own content as well as third-party content

and has apps on all major mobile platforms including iOS,

Android, Windows Phone and Blackberry. Prior to

becoming a standalone business, theScore represented

the digital media business of Score Media Inc. theScore

began operating on its own in October 2012 and is

headquartered in Toronto, Canada.

($0.00) ($0.01) ($0.01) ($0.01)

($0.00) ($0.01) ($0.00) ($0.01)

(0.4) (1.4) (1.5) (1.9)

0.5 (0.5) (0.0) (2.4)

8.5 6.7 6.4 4.8

8.4 7.1 7.2 5.1

NM NM NM

Q1 Q2 Q3 Q4

NM NM NM

59.0x 32.8x 27.1x

22.0x 17.0x 12.3x

NM NM NM

$1.08 $1.19

NM NM NM

2.7x 0.6x -1.3x

(17.2%) (3.4%) (8.9%)

($0.02) ($0.03) ($0.03)

(4.8) (24.5) (9.3)

27.7 31.1 47.2

(2.4) (6.5) (5.8)

-5.8 -5.8

-$0.03 -$0.03

2018A 2019A 2020E

C2017 C2018 C2019E

202.41

277.7

-4.0

273.7

334.6

334.6

$0.29 - $0.92

0.0%

New Old

47.2 47.2

0

1000

2000

3000

4000

$0.00

$0.20

$0.40

$0.60

$0.80

$1.00

Jan-

19

Feb

-19

Mar

-19

Ap

r-19

May

-19

Jun

-19

Jul-

19

Au

g-19

Sep

-19

Oct

-19

No

v-19

Dec

-19

Jan-

20

Volume (M) Price

Page 69 of 75 Rob Goff, CFA | 416.933.3351 | rob.goff@echelonpartners.com

Score Media and Gaming Inc. (SCR-TSXV) | 9 January 2020

We recognize the potential for betting to recalibrate theScore’s user growth and revenues. We continue to point to Deloitte’s TMT Predictions for 2019 (source: Duncan Stewart) which predicted that “in 2019, 60% of N. American men aged 18-34 who watch sports on TV will also bet on sports – and the more often they bet, the more TV sports they will watch.” Their view can easily translate to theScore in terms of the size of its target market, their propensity to wager, and the user/engagement stimulation to be expected. The Company has a clear opportunity to tap its existing user app base for sports betting, likely with little to no appreciable new customer acquisition costs. As such, monetization of sports betting from its existing user base would be largely accretive to earnings. Management previously noted that New Jersey has seen ~$2B wagered in the last 10 months since betting was allowed with mobile and online betting at 4x in-person betting.

Strategic Financing, Partnering Moves: The Company finished FQ419 with $4.0M in cash with its secured $5.0M demand credit facility with a Canadian bank remaining unused. The credit facility is available for working capital purposes in an amount based on a percentage of Score and certain subsidiaries’ accounts receivable, providing additional capital for the sports betting roll-out. SCR highlighted its US$10M deal in a private placement of Class A subordinate voting shares at a price of US$0.45 ($0.59) at a 40% premium of the market price. In a partnering, pre-funding move, PENN subscribed for US$7.5M the private placement. Other investors include John Levy Family Holdings, the family holding company of theScore founder and CEO John Levy. The proceeds were to be used for the expansion of its sport’s betting platform in the US by effectively prefunding its agreed upfront market access fees of US$7.5M due to Penn National.

We are also very bullish towards the $40.0M strategic investment by Fengate Asset Management Fund. Under the $40.0M agreement with Fengate, the firm’s PE team was to invest in Score to fund the development and growth of the Company’s media and sports betting platform. The investment was made through the $40M purchase of 8.00% (per annum/ payable semi-annually) convertible unsecured subordinated debentures due on August 31, 2024. The conversion price was set at $0.75 for each Class A Share. Fengate’s PE arm has 8+ private equity investments and has $690M equity commitments. The team looks for mid-market opportunities in North American and has investments in Virgin Hotels Las Vegas, eStruxtures Data Centers and Seasons Retirement Communities in Ontario and Alberta.

Valuation: Our DCF applies a discount rate of 9.0% and a terminal valuation of 22x F2024 EBITDA to derive our $1.10 one-year target DCF valuation. With stronger momentum, we have room to consider a lower discount rate.

Page 70 of 75 Rob Goff, CFA | 416.933.3351 | rob.goff@echelonpartners.com

Score Media and Gaming Inc. (SCR-TSXV) | 9 January 2020

Exhibit 1 – Global Gaming Comparables

Source: Consensus Data - FactSet

Page 71 of 75 Rob Goff, CFA | 416.933.3351 | rob.goff@echelonpartners.com

Score Media and Gaming Inc. (SCR-TSXV) | 9 January 2020

Forecasts

Exhibit 2 – Forecasts

Source: Consensus Data - FactSet, Historical Data – Company Filings, Forecasts/Estimates – Echelon Wealth Partner

Scorel Media and Gaming Inc. Class A 2017 2018 Q119 Q219 Q319 Q419 2019 2020E 2021E

All figures in $000 CAD, unless otherwise indicatedConsolidated Act. Act. Act. Act. Act. Act. Act. Est. Est.

Revenue 26,348 27,743 9,475 6,776 8,463 6,407 31,121 47,209 62,971

Growth 10.2% 5.3% 13.5% -4.5% 17.6% 25.7% 12.2% 51.7% 33.4%

Cons. Est. 26,348 28,518 9,479 6,776 8,463 6,400 31,121 42,338 62,576

Cons. Est. (-3months) 26,348 28,518 9,479 6,776 8,463 6,083 30,787 44,435 61,100

EBITDA -6,395 -2,382 967 -2,189 -1,120 -4,148 -6,490 -5,806 1,837

Growth NM NM 82.1% NM NM NM NM NM NM

Margin -24.3% -8.6% 10.2% -32.3% -13.2% -64.7% -20.9% -12.3% 2.9%

Flow-through 40.5% 34.8% 257.8% NM NM NM NM 2352.2% 206.2%

Cons. Est. -5,308 -779 1,265 -2,126 -976 -4,148 -6,212 -5,527 2,098

Cons. Est. (-3months)

-5,308 -779 1,265 -2,126 -976 -2,967 -5,018 -2,900 2,013

EPS -$0.03 -$0.02 $0.00 -$0.01 -$0.01 -$0.01 -$0.03 -$0.03 -$0.01

Cons. Est. -$0.03 -$0.02 $0.00 -$0.01 -$0.01 -$0.01 -$0.03 -$0.03 -$0.01

Cons. Est. (-3months) -$0.03 -$0.02 $0.00 -$0.01 -$0.01 -$0.01 -$0.02 -$0.02 -$0.01

Cash Flow (Pre-W/C) -4,606 -1,559 1,113 -2,089 -735 -4,024 -5,735 -5,842 1,639

CFPS -$0.02 -$0.01 $0.00 -$0.01 $0.00 -$0.01 -$0.02 -$0.02 $0.01

Capex (Incl. Intangibles) -3,214 -3,255 -848 -2,832 -1,340 -13,703 -18,723 -3,484 -3,642

Intensity 12.2% 11.7% 8.9% 41.8% 15.8% 213.9% 60.2% 7.4% 5.8%

Cash, Net of Debt 10,114 6,346 11,736 8,297 6,482 4,035 4,035 -7,605 -12,176

FCF -7,820 -4,814 265 -4,921 -2,075 -17,727 -24,458 -9,326 -2,003

FCF/share -$0.03 -$0.02 $0.00 -$0.02 -$0.01 -$0.05 -$0.08 -$0.03 -$0.01

Operating Statistics

Advertising Revenue 26,348 27,743 9,475 6,776 8,463 6,407 31,121 36,709 42,496

Growth y/y 10.2% 5.3% 13.5% -4.5% 17.6% 25.7% 12.2% 18.0% 15.8%

Sports Betting Revenue 0 0 10,500 20,475

Growth y/y NA NA 95.0%

Monthly Average User Sessions 366,750 351,000 469,000 395,000 395,000 272,000 380,188 419,119 462,078

Growth y/y 6.3% -4.3% 5.9% 13.3% 8.9% 5.0% 8.3% 10.2% 10.3%

Rev. Per User Sessions $0.0060 $0.0066 $0.0067 $0.0057 $0.0071 $0.0079 $0.0068 $0.0073 $0.0077

Growth y/y 3.6% 10.0% 7.1% -15.8% 8.0% 19.6% 3.6% 7.0% 5.0%

Mobile Monthly Average Users 4,075 4,000 4,200 4,000 4,000 3,600 3,950 4,187 4,396

Growth y/y -6.7% -1.8% -2.3% -2.4% 2.6% -2.7% -1.3% 6.0% 5.0%

ARPU $0.54 $0.58 $0.75 $0.56 $0.71 $0.59 $0.66 $0.73 $0.81

Growth y/y 18.1% 7.3% 16.2% -2.2% 14.7% 29.1% 13.6% 11.3% 10.3%

Monthly Sessions Per User 90 88 111 97 102 75 96 100 105

Growth y/y 14.0% -2.5% 7.8% 14.1% 9.7% 7.1% 9.7% 4.0% 5.0%

Page 72 of 75 Rob Goff, CFA | 416.933.3351 | rob.goff@echelonpartners.com

Score Media and Gaming Inc. (SCR-TSXV) | 9 January 2020

Source: Consensus Data - FactSet, Historical Data – Company Filings, Forecasts/Estimates – Echelon Wealth Partners

Score Media and Gaming Inc. Class A (SCR-CA, $0.83) - Data Sheet SPEC. BUY | PT: $1.10Company Description Consensus 3 Mths Ago Current Return

Rating: Buy Buy

Target: $1.00 $1.00 20%

Median: $1.00 $1.00 20%

High: $1.10 $1.10 33%

Low: $0.90 $0.90 8%

Consensus Distribution

Sector Outperform/Buy 2

Sector Perform/Hold 0

Sector Underperform/Sell 0

# Est 2

Indexed Price Movements Historical Valuation

FactSet - Indexed Price Movements FactSet - HISTORICAL LTM EV/SALES

Key Financial MetricsFinancial Summary 2017 2018 Q119 Q219 Q319 Q419 2019 2020E 2021E 2022E Key Statistics Value

Consolidated 52-Week High $0.92 11%

Revenue 26.3 27.7 9.5 6.8 8.5 6.4 31.1 47.2 63.0 79.3 52-Week Low $0.29 (66%)

Growth y/y 10.2% 5.3% 13.5% (4.5%) 17.6% 25.7% 12.2% 51.7% 33.4% 25.9% Avg Vol (3-Mo) 205

Cons. 26,348 27,743 9,475 6,776 8,463 6,400 31,121 42,338 62,576 74,217 Shares Outstanding 335

Cons. 3 Mts. Ago 26,348 27,743 9,475 6,776 8,463 6,083 30,787 44,435 61,100 71,101 Market Cap 278

Net Debt -4

EBITDA (6.4) (2.4) 1.0 (2.2) (1.1) (4.1) (6.5) (5.8) 1.8 8.9 Enterprise Value 274

Growth y/y NM NM 82.1% NM NM NM NM NM NM 382.6% Div Yield 0.0%

Margin (24.3%) (8.6%) 10.2% (32.3%) (13.2%) (64.7%) (20.9%) (12.3%) 2.9% 11.2% FYE Aug 31

Flow-Through 40.5% 34.8% 257.8% NM NM NM NM 2352.2% 206.2% 232.3% Employees NA

Cons. (5,156.0) (2,109.0) 1,023.5 (2,126.0) (976.0) (4,148.0) (6,211.5) (5,527.3) 2,098.0 7,434.0

Cons. 3 Mts. Ago (5,156.0) (2,109.0) 1,023.5 (2,126.0) (976.0) (2,967.3) (5,017.7) (2,899.7) 2,012.5 7,315.5

EPS ($0.03) ($0.02) $0.00 ($0.01) ($0.01) ($0.01) ($0.03) ($0.03) ($0.01) $0.02 Top Inst. Ownership % Held

Growth y/y NM NM NM NM NM NM NM NM NM (456.6%) StoneCastle Investment Management, Inc. 0.2%

Cons. ($0.03) ($0.02) $0.00 ($0.01) ($0.01) ($0.01) ($0.03) ($0.03) ($0.01) $0.02 Jacob Asset Management of New York LLC 0.1%

Cons. 3 Mts. Ago ($0.03) ($0.02) $0.00 ($0.01) ($0.01) ($0.01) ($0.02) ($0.02) ($0.01) $0.01 Arrow Capital Management, Inc. 0.0%

Cash 10.1 6.3 11.7 8.3 6.5 4.0 4.0 (7.6) (12.2) (9.9)

Net Debt (10.1) (6.3) (11.7) (8.3) (6.5) (4.0) (4.0) 7.6 12.2 9.9

FCF (7.8) (4.8) 0.3 (4.9) (2.1) (17.7) (24.5) (9.3) (2.0) 4.8

Operating Summary Valuation F2017 F2018 F2019

Advertising Revenue 26.3 27.7 9.5 6.8 8.5 6.4 31.1 36.7 42.5 49.2 Revenue 26.3 27.7 31.1

Growth y/y 10.2% 5.3% 13.5% (4.5%) 17.6% 25.7% 12.2% 18.0% 15.8% 15.8% EBITDA (6.4) (2.4) (6.5)

Mobile Monthly Average Users 4.1 4.0 4.2 4.0 4.0 3.6 4.0 4.2 4.4 4.6 Depreciation (3.1) (3.8) (3.1)

Growth y/y (6.7%) (1.8%) (2.3%) (2.4%) 2.6% (2.7%) (1.3%) 6.0% 5.0% 5.0% Capex (3.3) (3.3) (18.7)

Monthly Average User Sessions 366.8 351.0 469.0 395.0 395.0 272.0 380.2 419.1 462.1 509.4 Discretionary CF (4.9) (4.9) (24.9)

Growth y/y 6.3% (4.3%) 5.9% 13.3% 8.9% 5.0% 8.3% 10.2% 10.3% 10.3% Discount Rate 10.00%

Sessions per User 90.0 87.8 111.0 97.0 102.0 75.0 96.3 100.1 105.1 110.4 Terminal EBITDA Multiple 20.00x

Growth y/y 14.0% (2.5%) 7.8% 14.1% 9.7% 7.1% 9.7% 4.0% 5.0% 5.0% Current 1-Yr TGT

ARPU (Monthly) $0.54 $0.58 $0.75 $0.56 $0.71 $0.59 $0.66 $0.73 $0.81 $0.89 Terminal Value PV 287.5 316.3

Growth y/y 18.1% 7.3% 16.2% (2.2%) 14.7% 29.1% 13.6% 11.3% 10.3% 10.3% Equity Value 284.8 316.4

DCF Value $0.96 $1.07

Comparables and EcosystemReturn Revenue EBITDA EPS

1 Week 1 Month 3 Month YTD 1 Year F2018 F2019E F2018 F2019E F2018 F2019E

Score Media and Gaming Inc. $0.83 $1.10 - 10.8% 10.8% 18.8% 36.7% 13.9% 141.2% 28 31 -2 -6 -$0.02 -$0.03

Facebook $215.22 $241.07 - 3.4% 3.4% 7.0% 21.1% 4.9% 51.0% 55,838.0 70,487.3 29,676.0 38,785.3 $7.57 $6.38

Alphabet Inc. $1,405.04 $1,492.99 - 3.7% 3.7% 4.9% 18.1% 4.9% 29.5% 136,958 162,704 44,062 58,970 $43.70 $46.51

Tripadvisor $30.59 $34.92 - 1.0% 1.0% 5.3% (17.8%) 0.7% (46.5%) 1,615 1,563 301 435 $0.81 $1.75

Peer Average - 2.7% 2.7% 5.8% 7.1% 3.5% 11.3%

Enterprise FCF Yield EV/EBITDA EV/EBITDA - Target EV/Sales P/CFPS

Value F2018 F2019E C2018 C2019E C2020E C2018 C2019E C2020E C2018 C2019E C2020E C2018 C2019E C2020E

Score Media and Gaming Inc. 274 - - NM NM NM NM NM NM 10.3x 8.1x 5.6x NM NM NM

Facebook 575,829 2.5% 3.1% 19.3x 14.1x 11.8x 21.8x 16.0x 13.4x 10.3x 7.7x 6.1x 21.5x 23.2x 18.2x

Alphabet Inc. 873,569 2.5% 3.1% 19.6x 14.5x 12.0x 21.0x 15.5x 12.8x 6.3x 5.3x 4.3x 20.6x 20.8x 18.1x

Tripadvisor 3,530 7.9% 7.3% 12.2x 8.3x 7.0x 14.2x 9.7x 8.3x 2.3x 2.3x 2.0x 10.6x 10.7x 10.3x

Peer Average 4.3% 4.5% 17.0x 12.3x 10.2x 19.0x 13.7x 11.5x 6.3x 5.1x 4.1x 17.5x 18.2x 15.5x

*Non-coverage names reflect consensus, 2016 numbers for theScore are based on actual results

Source: Consensus Data - FactSet, Historical Data – Company Filings, Forecasts/Estimates – Echelon Wealth Partners.

Comparables

Multiples Analysis

theScore creates mobile sports apps to deliver real-time news,

scores, fantasy updates and alerts to fans on a variety of sports,

players, teams and stats. theScore publishes its own content as

well as third-party content and has apps on all major mobile

platforms including iOS, Android, Windows Phone and Blackberry.

Prior to becoming a standalone business, theScore represented

the digital media business of Score Media Inc. theScore began

operating on its own in October 2012 and is headquartered in

Toronto, Canada.

Comparables

and Peer AnalysisPrice Target Div Yield Return

0

0.1

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0.9

1

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Vo

lum

e (M Sh

ares)Sto

ck P

rice

($)

Price 50-Day MA 200-Day MA

-0.7x

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0.0x

0.1x Score Media and Gaming Inc. Class A Facebook, Inc. Class A Alphabet Inc. Class A

0.0x

2.0x

4.0x

6.0x

8.0x

10.0x Score Media and Gaming Inc. Class A Facebook, Inc. Class A Alphabet Inc. Class A

Page 73 of 75 Rob Goff, CFA | 416.933.3351 | rob.goff@echelonpartners.com

Score Media and Gaming Inc. (SCR-TSXV) | 9 January 2020

Important Information and Legal Disclaimers

Echelon Wealth Partners Inc. is a member of IIROC and CIPF. The documents on this website have been prepared for the viewer only as an example of strategy consistent with our recommendations; it is not an offer to buy or sell or a solicitation of an offer to buy or sell any security or instrument or to participate in any particular investing strategy. Any opinions or recommendations expressed herein do not necessarily reflect those of Echelon Wealth Partners Inc. Echelon Wealth Partners Inc. cannot accept any trading instructions via e-mail as the timely receipt of e-mail messages, or their integrity over the Internet, cannot be guaranteed. Dividend yields change as stock prices change, and companies may change or cancel dividend payments in the future. All securities involve varying amounts of risk, and their values will fluctuate, and the fluctuation of foreign currency exchange rates will also impact your investment returns if measured in Canadian Dollars. Past performance does not guarantee future returns, investments may increase or decrease in value and you may lose money. Data from various sources were used in the preparation of these documents; the information is believed but in no way warranted to be reliable, accurate and appropriate. Echelon Wealth Partners Inc. employees may buy and sell shares of the companies that are recommended for their own accounts and for the accounts of other clients.

Echelon Wealth Partners compensates its Research Analysts from a variety of sources. The Research Department is a cost centre and is funded by the business activities of Echelon Wealth Partners including, Institutional Equity Sales and Trading, Retail Sales and Corporate and Investment Banking.

Research Dissemination Policy: All final research reports are disseminated to existing and potential clients of Echelon Wealth Partners Inc. simultaneously in electronic form. Hard copies will be disseminated to any client that has requested to be on the distribution list of Echelon Wealth Partners Inc. Clients may also receive Echelon Wealth Partners Inc. research via third party vendors. To receive Echelon Wealth Partners Inc. research reports, please contact your Registered Representative. Reproduction of any research report in whole or in part without permission is prohibited.

Canadian Disclosures: To make further inquiry related to this report, Canadian residents should contact their Echelon Wealth Partners professional representative. To effect any transaction, Canadian residents should contact their Echelon Wealth Partners Investment advisor.

U.S. Disclosures: This research report was prepared by Echelon Wealth Partners Inc., a member of the Investment Industry Regulatory Organization of Canada and the Canadian Investor Protection Fund. This report does not constitute an offer to sell or the solicitation of an offer to buy any of the securities discussed herein. Echelon Wealth Partners Inc. is not registered as a broker-dealer in the United States and is not be subject to U.S. rules regarding the preparation of research reports and the independence of research analysts. Any resulting transactions should be effected through a U.S. broker-dealer.

U.K. Disclosures: This research report was prepared by Echelon Wealth Partners Inc., a member of the Investment Industry Regulatory Organization of Canada and the Canadian Investor Protection Fund. ECHELON WEALTH PARTNERS INC. IS NOT SUBJECT TO U.K. RULES WITH REGARD TO THE PREPARATION OF RESEARCH REPORTS AND THE INDEPENDENCE OF ANALYSTS. The contents hereof are intended solely for the use of, and may only be issued or passed onto persons described in part VI of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2001. This report does not constitute an offer to sell or the solicitation of an offer to buy any of the securities discussed herein.

Copyright: This report may not be reproduced in whole or in part, or further distributed or published or referred to in any manner whatsoever, nor may the information, opinions or conclusions contained in it be referred to without in each case the prior express written consent of Echelon Wealth Partners.

ANALYST CERTIFICATION

Company: Score Media and Gaming Inc.. | SCR:TSX.V I, Rob Goff, hereby certify that the views expressed in this report accurately reflect my personal views about the subject securities or issuers. I also certify that I have not, am not, and will not receive, directly or indirectly, compensation in exchange for expressing the specific recommendations or views in this report. IMPORTANT DISCLOSURES

Is this an issuer related or industry related publication? Issuer

Does the Analyst or any member of the Analyst’s household have a financial interest in the securities of the subject issuer? If Yes: 1) Is it a long or short position? No position; and, 2) What type of security is it? None

No

The name of any partner, director, officer, employee or agent of the Dealer Member who is an officer, director or employee of the issuer, or who serves in any advisory capacity to the issuer.

No

Does Echelon Wealth Partners Inc. or the Analyst have any actual material conflicts of interest with the issuer? No

Does Echelon Wealth Partners Inc. and/or one or more entities affiliated with Echelon Wealth Partners Inc. beneficially own common shares (or any other class of common equity securities) of this issuer which constitutes more than 1% of the presently issued and outstanding shares of the issuer?

No

During the last 12 months, has Echelon Wealth Partners Inc. provided financial advice to and/or, either on its own or as a syndicate member, participated in a public offering, or private placement of securities of this issuer?

No

During the last 12 months, has Echelon Wealth Partners Inc. received compensation for having provided investment banking or related services to this Issuer? No

Has the Analyst had an onsite visit with the Issuer within the last 12 months? King Street, Toronto HQ - AGM January 2019 – investors/analysts Yes

Has the Analyst or any Partner, Director or Officer been compensated for travel expenses incurred as a result of an onsite visit with the Issuer within the last 12 months? No

Has the Analyst received any compensation from the subject company in the past 12 months? No

Is Echelon Wealth Partners Inc. a market maker in the issuer’s securities at the date of this report? No

Page 74 of 75 Rob Goff, CFA | 416.933.3351 | rob.goff@echelonpartners.com

Score Media and Gaming Inc. (SCR-TSXV) | 9 January 2020

RATING DEFINITIONS

Buy The security represents attractive relative value and is expected to appreciate significantly from the current price over the next 12 month time horizon.

Speculative Buy The security is considered a BUY but in the analyst’s opinion possesses certain operational and/or financial risks that are higher than average.

Hold The security represents fair value and no material appreciation is expected over the next 12-18 month time horizon.

Sell The security represents poor value and is expected to depreciate over the next 12 month time horizon.

Under Review While not a rating, this designates the existing rating and/or forecasts are subject to specific review usually due to a material event or share price move.

Tender Echelon Wealth Partners recommends that investors tender to an existing public offer for the securities in the absence of a superior competing offer.

Dropped Coverage

Applies to former coverage names where a current analyst has dropped coverage. Echelon Wealth Partners will provide notice to investors whenever coverage of an issuer is dropped.

RATINGS DISTRIBUTION

Recommendation Hierarchy Buy Speculative Buy Hold Sell Under Review Restricted Tender

Number of recommendations 50 42 18 1 7 0 4

% of Total (excluding Restricted) 42% 36% 15% 1% 6%

Number of investment banking relationships 14 19 5 0 2 0 0

% of Total (excluding Restricted) 35% 48% 13% 0% 5%

PRICE CHART, RATING & PRICE TARGET HISTORY

Date Target (C$) Rating

26 Jul 2017 $0.35 Buy

19 Oct 2017 $0.25 Speculative Buy

11 Jul 2018 $0.50 Speculative Buy

18 Oct 2018 $0.45 Speculative Buy

29 Jan 2019 $0.55 Speculative Buy

25 Jul 2019 $0.60 Speculative Buy

1 Aug 2019 $0.70 Speculative Buy

16 Aug 2019 $0.80 Speculative Buy

3 Oct 2019 $0.90 Speculative Buy

9 Jan 2020 $1.10 Speculative Buy

Coverage Initiated: May 30, 2014

Data sourced from: FactSet

$0.00

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$0.40

$0.60

$0.80

$1.00

$1.20

May 14Oct 14Mar 15Aug 15Jan 16Jun 16Nov 16Apr 17Sep 17Feb 18 Jul 18 Dec 18May 19Oct 19

Score Media and Gaming Inc. (SCR-CA)

Price Price Target Revisions

Toronto Wealth Management

1 Adelaide St East, Suite 2000

Toronto, ON M5C 2V9

416-572-5523

Toronto Capital Markets

1 Adelaide St East, Suite 2100

Toronto, Ontario M5C 2V9

416-572-5523

Montreal Wealth Management and Capital Markets

1000 De La Gauchetière St W., Suite 1130

Montréal, QC H3B 4W5

514-396-0333

Calgary Wealth Management

525 8th Ave SW, Suite 400

Calgary, AB T2P 1G1

403-218-3144

Calgary Wealth Management

123 9A St NE

Calgary, AB T2E 9C5

1-866-880-0818

Oakville Wealth Management

1275 North Service Road, Suite 612

Oakville, ON L6M 3G4

289-348-5936

Edmonton Wealth Management

8603 104 St NW

Edmonton, AB T6E 4G6

1-800-231-5087

London Wealth Management

235 North Centre Rd, Suite 302

London, ON N5X 4E7

519-858-2112

Ottawa Wealth Management

360 Albert St, Suite 800

Ottawa, ON K1R 7X7

613-907-0700

Vancouver Wealth Management and Capital Markets

1055 Dunsmuir St, Suite 3424, P.O. Box 49207

Vancouver, BC V7X 1K8

604-647-2888

Victoria Wealth Management

730 View St, Suite 210

Victoria, BC V8W 3Y7

250-412-4320

Saskatoon Wealth Management

402-261 First Avenue North

Saskatoon, SK S7K 1X2

306-667-2282