September 2019 - Columbus Group · This presentation is very forward-looking in its statements, and these statements may not be based on fact, including without limitation, statements

September 2019

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This presentation is very forward-looking in its statements, and these statements may not be based on fact, including without limitation, statements

regarding Xebra Brands Ltd’s (“XEBRA”) expectations in respect of its ability to successfully execute its business plan; its ability to raise additional capital

and fund its ongoing operations; plans for future growth and the direction of the business; financial projections including expected revenues, gross profits,

and EBITDA (which is a non-GAAP financial measure); plans to increase product volumes, the capacity of existing facilities, supplies from third party

growers and contractors; expected growth of the cannabis industry generally; management’s expectations, beliefs and assumptions; events or

developments that XEBRA expects to take place in the future; and general economic conditions. All statements, other than statements of historical facts,

are forward-looking information and statements. The words “believe”, “expect”, “anticipate”, “contemplate”, “target”, “intends”, “continue”, “budget”,

“estimate”, “may”, “will”, and similar expressions identify forward-looking information and statements.

Such forward-looking information and statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by

XEBRA as of the date of such information and statements, are inherently subject to significant business, economic and competitive uncertainties and

contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking information and

statements. Such factors include, but are not limited to, the inability of XEBRA to generate sufficient revenues or raise sufficient funds to carry out its

business plan; changes in government legislation, taxation, controls, regulations and political or economic developments in various countries; risks

associated with agriculture and cultivation activities generally, including inclement weather, access to supply of seeds, poor crop yields, and spoilage;

compliance with import and export laws of various countries; significant fluctuations in cannabis prices and transportation costs; the risk of obtaining

necessary licenses and permits; inability to identify, negotiate and complete a potential acquisition for any reason; the ability to retain key employees;

dependence on third parties for services and supplies; non-performance by contractual counterparties; general economic conditions; and the continued

growth in global demand for cannabis products and the continued increase in jurisdictions legalizing cannabis; and the timely receipt of regulatory approval

for Medicannabis’ license applications. The foregoing list is not exhaustive and XEBRA undertakes no obligation to update any of the foregoing except as

required by law. Many of these uncertainties and contingencies could affect XEBRA’s actual performance and cause its actual performance to differ

materially from what has been expressed or implied in any forward-looking information and statements made by, or on behalf of, XEBRA. Readers are

cautioned that forward-looking information and statements are not guarantees of future performance. There can be no assurance that such information and

statements will prove to be accurate and actual results and future events could differ materially from those acknowledged in such information and

statements.

XEBRA disclaims any intention or obligation to update or revise any forward-looking information and statements whether as a result of new information,

future events or otherwise, except to the extent required by applicable laws.

Disclaimer

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Overview

We are an emerging cannabis company, with attractive high-margin products under development that leverage our cultivation, processing and marketing expertise. Our verticals include Beverages and Health & Wellness products.

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*

US legalization is on a state by

state basis

* Source: New Frontier - November 2017

The Legalization of Cannabis

A global trend presenting significant opportunities

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The Cannabis Market in Europe

Estimated Cannabis Market Potential

Medical €35.7 billion (~CDN$54 billion)

Recreational €20.5 billion (~CDN$31 billion)

Total €56.2 billion (~CDN$85 billion)

Source : European Cannabis Report - November 2017

Population

Million

Existing Cannabis Users

Million

Significant Retail Price Premium to

North American Market

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The Cannabis Market in the USA

States are leading the way to legalization Expanding edibles & infused product sales Increasing public support Additional states anticipate legalizing

Estimated Cannabis Market Potential by 2025 Medical 13 billion (~CDN$17 billion) Recreational 11 billion (~CDN$14 billion) Total 24 billion (~CDN$31 billion)

States Recreational

Use

Population

Million

States Medical

Use

* At November 2017

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The Cannabis Market in Canada

Source: Eight Capital

Recreational Use Legal as at

(October)

Population

Million

Medical $3 billion Recreational $5 billion

Estimated Cannabis Market Potential by 2024

Total $8 billion

Medical Marijuana Use Growth

Compound Annual Rate

Within 3 years, cannabis sales will overtake wine and spirits sales.

$5bn SPIRITS

(2018)

$6bn CANNABIS

(2018)

$7bn WINE (2018)

Figures in CDN$

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The Cannabis Market - Europe, USA and Canada

Estimated combined cannabis market potential by 2025:

Medical $74 billion

Recreational $50 billion

Figures in CDN$

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Our Low Cost Cultivation Strategy†

“We aim to grow cannabis on an large scale, directly in the ground, in low-cost countries; in open-fields for CBD and in inexpensive hoop-

house type greenhouses for THC.”

Figures in CDN$. Projected financial information, actual results may differ.

We will supplement cultivation with

supply from local third party

growers

† XEBRA's acquisition of Medicannabis SAS in Colombia, remains subject to the approval of the shareholders of Organto Foods Inc. and the approval of the TSX Venture Exchange.

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The Colombian Cannabis Advantage†

Low Cost Growing Region Production costs as low as C$0.05 per gram and up to C$0.20 per gram compared to approximately C$0.85 to

C$3.00 for North American peers. Low cost lands available to support growth.

Skilled, Low-Cost Labour Abundant agricultural workforce with expertise in flowers. Second largest exporter of cut flowers in the world, and first in the LATAM region.

Optimal Growing Conditions Consistent 12-hour light cycles, consistent humidity, warm year-round temperatures, fertile soil and abundant

natural water.

Established Agricultural Industry Supplies 70% of the cut flowers sold in Canada and the U.S. and 17% globally. Historically recognized for superior cannabis cultivation.

International Trade Advantages Free trade agreements for export products with most Latin American countries, Europe, and North America.

Stable Government Government has been careful to draft a manageable medical cannabis policy.


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Our Colombian Subsidiary - Medicannabis SAS†

Our initial cultivation operations will be located on ~1 hectare of land in Guasca, located approximately 1 hour from Bogota Airport – plenty of additional land available nearby for expansion.


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Positioned for LATAM Growth†

Mexico

POPULATION 129 million

Colombia: An ideal initial market to cultivate in; Positions XEBRA for Latin America expansion


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Regulations in Mexico

From prohibition to decriminalization and legalization

Mexican Supreme Court allows the

first constitutional claim in favor of

legalization

2015 November 4

Framework for medical and CBD products (legal reform)

2017 June 19

Guidelines for health regulations implementing

2017 legal reform

2018 October 30

Law initiative for cannabis regulation

2018 November 6

2019 2nd Half

Approvals of CBD products expected

to resume

Temporary suspension and review of CBD product guidelines

2019 1st Half

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What Do Regulations Allow in 2019*

Regulations for the import, production, and commercialization of CBD cannabis products for the following uses:

October 30, 2018

Applications must contain:

Requirements:

Product description

Intended use

Certificate of THC <= 1%

Intended label complying with regulation

APPLICATIONS REGULATIONS

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2

3

Pharmaceutical

Medical and Scientific R&D

Food and Beverages with THC <= 1%

* Guidelines for submittal of applications for CBD products temporarily suspended by Mexican government. The application process is expected to resume in the 2nd half of 2019.

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Our Cannabis Business Model (2019-2021)

Cultivate and process

Cannabis in Colombia

Production of Cannabis

Beverages and other Products in Colombia &

Mexico

LATAM Sales & for Export

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CBD Capsules

CBD Balm

CBD Oil

CBD Water

Our Mexican CBD Products - Elements Bioscience

XEBRA has acquired Elements Bioscience and Sativa Group, Mexican companies that have applied for a raw materials and supplies license, and authorizations to manufacture and sell a number of cannabis CBD Health & Wellness products:

Elements Product Line

Elements Health & Wellness Products

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Our Mexican CBD Products - Sativa Group

Sativa Health & Wellness Products

Sativa Product Line

CBD Balm

CBD Oil

CBD Water

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The Beverage Market

Ready-to-Drink beverages and packaged beers currently represent US$1 trillion in the global market.

The US market is greater than US$225 billion while the Canadian market is in excess of CDN$25 billion.

According to some estimates, the relative market for THC infused beverages could be 14% of the overall alcohol beverage market.

Canada and US represent more than 2.6 billion cases of alcoholic beverages annually – 14% of that market equates to 400 million cases.

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Beverages Are Forecasted to Be the Largest Component of the Cannabis Industry

Beverage Industry Forecast

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Beverage Industry Cannabis Deals

Notable News

Constellation Brands’ US$4 billion investment in cannabis company may signal industry shakeup

Cannabis stocks jump after reports that Diageo is in talks with three pot producers

Corona owner makes US$4 billion bet on cannabis

Molson Coors Canada enters into joint venture to develop cannabis infused beverages

The CBD market was less than $200 million in 2016, and is expected to reach around $1 billion by the end of 2019

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Water and Oil Don’t Mix We Have Solutions for Water Insoluble Cannabinoids!

Creating Cannabis Infused Beverages

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Our Solution for Water Insoluble Cannabinoids

Patent pending IP for flavourless extract that:

Is water-soluble and shelf stable

Doesn’t require flavour masking

Delivers a consistent serving of THC and CBD

Has the ability to suspend within a bulk flavoured concentrate

Can maintain freshness for a minimum of 90 days

Is highly scalable

Can easily be integrated into existing manufacturing processes

XEBRA has signed an LOI to licence exclusive IP to make cannabinoids water soluble for the commercial production of beverages.

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Our Beverage Products Under Development

A clear, flavourless, water-soluble THC or CBD extract

A concentration of 1 mg will provide a consumer experience similar to a single serving of alcohol

The formula has the ability to be active almost immediately

Early tests show that the product will maintain stability for the time required to get to market

Can be blended and bottled using well-established industrial processes

The final consumer product will feature a 1 mg concentration of THC or CBD extract

Packaged in single serve cans and bottles

The effects will mimic the onset of an alcoholic beverage

Unique processes

The technology and process is unique and will be protected with US and Canadian patents

Audit and quality assurance

The technology and process allows the application of a standard for quality management, such as ISO

XEBRA has a number of cannabis-infused beverage products under development, including soft drinks, iced tea, a premium line of sparkling flavored water, a sports beverage, a lemonade, and an adult-use recreational energy drink.

Our Water-Soluble Advantage

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Our Cannabis Production and Manufacturing Model*†

Products - Colombia / Mexico

• Mixes Easily in Liquids

• Does Not Require Flavor Masking

Water Soluble - Colombia / Mexico

• Control of Raw Ingredient

• Carefully Selected Strains

Flower - Colombia

• Removes Undesirable Components

• Produces Highest Quality Oil

Distillation - Colombia • Safe and Non-Toxic

• Versatile Process

Extraction - Colombia

• Competitive Advantage

• Virtually Unlimited Product Possibilities Final

Step #1

Step #2 Step #3

Step #4

* Projected start in 2020/21


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Our Cannabis Production Timeline*†

Projected key dates for the build-out of cannabis operations include the following:

Registered 144 cultivars (strains) with Colombia’s agricultural authority – JANUARY 2019 Colombian CBD cultivation license received – JANUARY 2019 Colombian THC processing licenses received – JULY 2019 Colombian THC cultivation licenses expected in Q4 2019 Erection of hoop-houses commencing Q1 2020 with ~1 ha initial build Commence planting in Colombia in Q2 2020 Construction of production facility in Q2 2020 First harvest in Colombia in Q4 2020 Initial sales from Colombia in Q4 2020 Mexican beverage and product production Q1 2021

* Estimated/Projected


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Colombia Budget and Projections for 1 Hectare*†

Projected Initial Capital Expenditures (CAPEX) CDN$

Hoop-houses ~1 hectare $1,668,600

THC and CBD processing equipment (not a recurring cost) 1,232,550

Total Initial Capital Expenditures $2,901,150

* XEBRA’s Colombia business plan evaluated 3 CAPEX, OPEX, and revenue scenarios: low, medium and high. The above figures assume high costs, and low revenue.

** OPEX for 1 hectare of cultivation and processing (high-cost scenario) is estimated at CDN$468,450.

Cultivation and Processing to a Refined Extract

Gross Annual Revenues from 1 Hectare of Cultivation CDN$2.8 million for CBD, processed to Isolate CDN$6.6 million for THC, processed to Distillate

EBITDA and Gross Margins** CBD: 55-65% THC: 65-75%


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Pro-forma Capital Structure*†

Shares Outstanding* 82,593,530

Stock Options nil

Warrants nil

Pro-Forma

Colombian Acquisition** 10,000,000

Beverage IP 3,200,000

Publicly Traded RTO Shell 5,474,368

Proposed Private Placement 10,000,000

Pro-forma Shares Outstanding 111,267,898

* As at September 10, 2019.


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Our Colombian Peers*†

Company Ticker Market Cap* License Status

XEBRA N/A TBD CBD cultivation and THC processing licences received

Aphria APH $2.1B CBD license received

Avicanna AVCN $89M CBD license received (60-63% interest in Colombian assets)

Blueberries Medical BBM $24M CBD license updated

Canopy Growth WEED $10.1B All licenses received

Chemesis CSI $84M CBD license received

Khiron Life Sciences KHRN $156M All licenses received

MYM Nutraceuticals MYM $33M All licenses received

Pharmacielo PCLO $459M All licences received

Wayland Group WAYL $68M CBD license received

* CAD$ (September 10, 2019)


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Our Leadership

Todd Dalotto - President Mr. Dalotto is a horticultural scientist, public policy consultant, and court-qualified expert witness specializing in cannabis. He breeds and conducts horticultural research, teaches, and consults businesses on the horticultural science and public policy of cannabis. His cannabis activities during the past seventeen years include breeding of in-bred lines, morphology, sustainable practices, mutualisms, and hoop-house cannabis production. He created the curriculum for and teaches the Cannabis Horticultural Science Course, which is a certificate course on core horticultural science topics such as Soil Science, Seed Biology, Plant Pathology, Breeding & Genetics, and more. Mr. Dalotto has a horticultural research degree with an emphasis on sustainable agriculture and plant breeding from Oregon State University, and is the former Chair of the Oregon Health Authority’s Advisory Committee on Medical Marijuana (ACMM), and of the ACMM’s Horticulture, Research & Safety Committee. He currently serves on Americans for Safe Access’ Patient-Focused Certification Review Board, on the Cannabis Certification Council’s Technical Advisory Committee, and on various legislative advisory committees for the State of Oregon. Mr. Dalotto was instrumental in the drafting of the regulations for Oregon’s Medical Marijuana Dispensary Program, and he founded Oregon’s first cannabis medical clinic.

Jorge Martínez - Director Mr. Jorge Martinez is a Colombian national with 25 years of experience in senior roles in venture capital, with both private and publicly traded companies. Throughout his career, he has worked in Latin America, the United States and in Canada, in the hospitality, technology and resource sectors. Mr. Martinez specializes in the areas of corporate operations and efficiency, technology, and marketing. He holds a BA from the University of Miami with a concentration in Business Administration, and has completed studies in Project Management at the University of British Columbia in Vancouver, Canada and in Advertising at the School of Communications at UPB University in Medellin, Colombia.

Jordi Chemonte - Director Mr. Chemonte is a civil engineer and entrepreneur who has cofounded several enterprises. In these, he has held executive positions in the food and services, entertainment, real estate, construction, and engineering industries. Being a cofounder and CEO of Mexican cannabis firm Elements Bioscience, Mr. Chemonte seeks to inform about the benefits of cannabis in healthcare while bringing novelty wellness products.

A strong board and executive team is being assembled around the following individuals:

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Our Leadership

Rodrigo Gallardo - Country Manager, Mexico Mr. Gallardo is an international business executive with two decades of experience in marketing and business development. A lawyer by training with a certification in Executive Management, Mr. Gallardo has held executive roles in a number of entrepreneurial driven ventures, which have also provided him with broad knowledge of the food and entertainment industries. Leveraging his experience as Administrative Director of Mexican cannabis company Elements Bioscience, Mr. Gallardo currently acts as Country Manager Xebra Brands’ Mexican operations.

Diego Martínez - Country Manager, Colombia Mr. Diego Martinez is a senior business executive with more than 20 years of experience in key strategic roles in management, marketing and business development throughout Latin America, particularly in Colombia. He has broad knowledge in the fields of consumer goods (FMCG), financial services, education, information technology and the media industry. Mr. Martinez has held executive roles with Mastercard, and in Colombia with Absolut Vodka, Diageo, Helm Bank, and Televisa Group. He has managed annual multi-million-dollar budgets and supervised large teams of over 50 people in various companies. Mr. Martinez is a results-oriented leader, with exceptional interpersonal communication skills and the capability to lead and inspire cross-functional teams to success based on long-term thinking and strategic vision.

Rosendo Emisel Fonseca - Food Scientist Mr. Fonseca is a food scientist and biotechnology engineer with a certificate in Sports Nutrition and Physical Activities. He is certified in Hazard Analysis and Critical Control Points (HACCP) and the American National Standards Institute’s Prerequisite Programs for Food Safety Systems. Active in the Latin American academic community, his research has examined dietary supplements for overweight and obese people and technology for biological products. Mr. Fonseca heads a cosmetic and dietary supplements manufacturer and a consultancy specialized in Mexico’s health regulatory procedures.

1090 Hamilton St. Vancouver, BC V6B 2R9

Canada

www.XebraBrands.com

Documents

September 2019 - Columbus Group · This presentation is very forward-looking in its statements, and these statements may not be based on fact, including without limitation, statements