NASDAQ Ticker: CRON TSX Venture Ticker: CRONthecronosgroup.com/wp-content/uploads/2018/03/Cronos...The information found herein, and any other materials provided by Cronos Group (the

NASDAQ Ticker: CRON TSX Venture Ticker: CRON

The information found herein, and any other materials provided by Cronos

Group (the “Company”), are intended solely for discussion purposes and are not

intended as, and do not constitute, an offer to sell or a solicitation of an offer to

buy any security, and should not be relied upon by you in evaluating the merits

of investing in any securities. These materials are not intended for distribution to,

or use by, any person or entity in any jurisdiction or country where such

distribution or use is contrary to local law or regulation. This information is

confidential and should not be distributed, in whole or in part, beyond the

recipient and its advisors.

The Company believes the information contained in this document to be reliable

but makes no warranty or representation, whether express or implied, and

assumes no legal liability for the accuracy, completeness or usefulness of any

information disclosed. Any estimates, investment strategies, and views expressed

in this document are based upon current market conditions and/or data and

information provided by unaffiliated third parties and is subject to change

without notice.

This document may contain “forward-looking information” and “forward-looking

statements” within the meaning of applicable Canadian securities legislation.

Forward-looking information includes, but is not limited to, statements about

strategic plans, including the Company's ability to implement its business

development strategy. Forward-looking statements are necessarily based upon

a number of estimates and assumptions that, while considered reasonable by

management, are inherently subject to significant business, economic and

competitive uncertainties and contingencies. Forward-looking statements

involve known and unknown risks, uncertainties and other factors that may

cause actual financial results, performance or achievements to be materially

different from the estimated future results, performance or achievements

expressed or implied by those forward-looking statements and the forward-

looking statements are not guarantees of future performance. All forward-

looking information contained herein are given as of the date hereof and are

based upon the opinions and estimates of management and information

available to management as at the date hereof. Except as required by law, the

Company disclaims any obligation to update or revise any forward-looking

statements, whether as a result of new information, events or otherwise. Readers

are cautioned not to put undue reliance on these forward-looking statements.

This news release contains information obtained by the Company from third

parties, including but not limited to market data. The Company believes such

information to be accurate but has not independently verified such information.

To the extent such information was obtained from third party sources, there is a

risk that the assumptions made and conclusions drawn by the Company based

on such representations are not accurate.

Disclaimers & Cautionary StatementsC R O N O S G R O U P


Capacity

IP Portfolio

Brands

Distribution

Virtuous CycleC R O N O S G R O U P


Capacity



STRA

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RIO

RITIE

SCapacity

95 acres zoned for cannabis production, on-site well,

natural gas co-gen line, and phase 3 power

Over 150 unique genetics

Good Manufacturing Practice (“GMP”)

certification from Germany

7,000 kg of capacity within existing 70,000 sq. ft.

Dealer’s License enabling R&D of novel products,

export of concentrated derivatives, and

analytical testing

C R O N O S G R O U P


STRATEG

IC PRIO

RITIES

Expansion includes: a state-of-the- art 286,000 sq. ft. indoor

production facility and a 1,200 sq. ft. extraction lab

Indoor facility expected to be largest purpose-built indoor

cannabis production facility in the world, fully operational

by Summer 2018

Domestic capacity expected to reach over

40,000KG prior to 2019

PEACE EXPANSION

CapacityC R O N O S G R O U P


STRA

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Based in Okanagan Valley, BC with a 2,000 sq. ft. pilot facility

31 acres zoned for cannabis production with premium

genetics sourced from WMMC

On-site artesian well providing free source of

water (200+ gallon per minute capacity)

Entered industry first strategic joint venture

with Canadian First Nations, Indigenous Roots

Climate and power costs provide cost

advantage over other Canadian jurisdictions

CapacityC R O N O S G R O U P


STRATEG

IC PRIO

RITIESCapacityC R O N O S G R O U P

Strategic joint venture with Kibbutz Gan Shmuel, which

already exports to 35 countries throughout Europe & Asia

Ideal climate enables production of high quality medical

cannabis at an expected cost of between $0.40 and

$0.50/g

Over 1,000 agriculturally skilled Kibbutz members live on site

and existing infrastructure available to support operations

Situated on 4,939 acres of mixed-use agricultural/industrial

land, with ability to expand beyond 100,000 KG annually

Phase 1: 45,000-sq. ft. greenhouse, 5,000 KG annually

Phase 2: increase capacity to 24,000 KG annually


Distribution



INC

REM

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ION

Exclusive supply agreement with Pohl-Boskamp, an international

pharmaceutical manufacturer and supplier founded in 1835

Pohl distributes products to over 12,000 German pharmacies

German parliament implemented health insurance coverage for patients

Large shortage of medical cannabis exists in Germany

Peace Naturals is exporting 12 different varieties

GERMANY

STRATEG

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RITIESDistributionC R O N O S G R O U P


STRA

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SDistribution


Industry first strategic joint venture with Canadian

First Nations, led by Phil Fontaine to forming a

new company and brand -Indigenous Roots

Underserved indigenous communities stand to

benefit from medical cannabis access

Most Indigenous health needs are covered by

Non-Insured Health Benefits Program (NIHB)

First Nations are subject to different regulations

than traditional businesses

First Nations communities provide optionality

for unique distribution channels

MEDICAL

RECREATIONAL


STRATEG

IC PRIO

RITIESDistributionC R O N O S G R O U P

Recently received both a cultivation and a research license

A 50/50 joint venture that will serve as the hub for Australia,

New Zealand, and South East Asia

Campus is located on 120 acres and will initially include a

20,000 sq. ft. purpose-built facility with an expected

annualized production capacity of 2,000KG

Facility will be designed considering both Good Production

Practices and Good Manufacturing Practices (GMP)


IP Portfolio



STRATEG

IC PRIO

RITIESIP PortfolioC R O N O S G R O U P

New LPs need to source genetics from existing LPs,

Cronos has over 150 unique cultivars

Custom built CO2 extraction equipment removing the need for

post-processing and maintaining natural balance of the plant

GMP facilities & extraction labs allow for metabolite identification,

separation and recombination to produce formulated products

Unique light mapping systems and environmental controls allow

for metabolite manipulation and increased yields

Research projects with experts from Cornell University, University

of Toronto, Hebrew University, Volcani Center, Fluence

Bioengineering and P.L. Light Systems

GENETICS & METHODS


Brands



STRA

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We seek to offer accessible, high-quality products, building

sincere relationships with our patients while supporting them

with medications that can be life-changing

At Peace Naturals our responsibility is to improve

the lives of others, one patient at a time

Peace will remain focused on the building and shaping the

medical cannabis market



STRATEG

IC PRIO

RITIESBrandsC R O N O S G R O U P

Launched Original BC (OGBC) as a platform for two

recreational brands

One brand for mainstream and one brand for premium

The Okanagan Valley in British Columbia is known for producing

Canada’s best cannabis, and we want to leverage that reputation

Focus on a small-batch and crafted look and feel, perfected

by our team of experts, never settling for shortcuts


Dr. Lasse Schulze

10+ years international experience in the

Horticultural Industry

Ph.D. in Plant Physiology and Toxicology from the

University of Toronto

Head of Horticulture

William Hilson

Previously Regional CFO for Serono & Merck

MSc in Clinical Biochemistry and Honors Bachelor of

Genetics

Chief Financial Officer

David Hsu

Financial and operational restructuring expertise

Former VP at Deloitte CRG

Bachelor of Science in Business Management from

Babson College

Head of Operations

Michael Gorenstein

Former Partner at Alphabet Ventures LLC

M&A Law at Sullivan & Cromwell

J.D. from University of Pennsylvania Law School

President, CEO & Chairman

Eric Klein

Brand management at PepsiCo, Chobani, and Kraft

MBA from University of Chicago Booth School of Business

Head of Marketing

Jeff Jacobson

Government relations and regulatory expert

Founder of a Toronto based marketing agency

Founding member of Peace Naturals

Head of Business Development

Thank You

Contact Information720 King Street West, Suite 320Toronto, Ontario M5V 2T3Office: (416) [email protected]

TSX Venture Ticker: CRONNASDAQ Ticker: CRON

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NASDAQ Ticker: CRON TSX Venture Ticker: CRONthecronosgroup.com/wp-content/uploads/2018/03/Cronos...The information found herein, and any other materials provided by Cronos Group (the