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Corporate Profile 2016

CORPORATE PROFILE 2016

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DISCLAIMER


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

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

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

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

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

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


World Wide Market

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English as a Second Language (ESL)dominates the world linguistic

market and generates in excess of $35B annually

ALL OTHER LANGUAGESESL

50% 50%

French

Spanish

With a simple, 26 letter alphabet, English has become the language of business and science.

Market Domination


The Opportunity

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Schools around the world have an active interest in sourcing ESL curriculums which are supported by teacher training and certification programs.

Today, a very limited number of competitorsare addressing this issue

The Company is focused on exploiting this deficiency and disrupting traditional

textbook publishers with our

Cloud Nine ESL Program


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Teacher TrainingDigitally-based English Language Curriculum

Interactive Classroom Setting

Textbooks Tablets Photocopies Internet Links Recitation Real Conversations

The Solution

The Cloud Nine ESL PROGRAM is a cloud based, digital curriculum which provideseducators and students a competitive alternative to static, textbook-based programs.


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Learning outcomes are based on international standards:

Common European Framework of Reference (CEFR)

The curriculum supports a flipped classroom approach:

Test, Teach, Test (TTT)

The Product – Cloud Nine ESL Program

The Cloud Nine ESL Program is designed to be delivered by teachers in a classroom setting


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Students watch a video grammar presentation outside of the classroom at a time most convenient to them.

How the flipped classroom approach works (example):

They stop and repeat the video as many times as they need to in order to grasp the lesson objectives.

Online comprehension checks assess the level to which they have acquired the information.

The next day in class, teachers support those who need it while they guide others to take what they have learned to a new level.

The more advanced students have opportunities to engage with their peers on a one-to-one basis.

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

Enhanced Methodology


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Competition

Our Cloud Nine ESL Program - which is focused on disrupting education publishers byproviding a competitive alternative to static, out of date, textbooks. Ongoing contentrevisions keep our digital ESL curriculum current and engaging. Changes to the Cloud NineESL Program are provided to our users immediately and at no additional cost.

The Challenge

The Answer

For decades, large publishing companies havedominated the market forcing educators andtheir students to buy new editions of textbookswith minor edits that can be out of date evenbefore being shipped to the school.

Cambridge University Press

Cloud 9

Education

Group

ALTA Book

Center

Publishers

Cambridge

University

Press

Delta

Systems

Dominie

Press

Heinle

& Heinle

Linmore

Publishing

National

Centre

for

English

New

Readers

Press

Oxford

University

Press

Perason

Education

ESL

Pro

Linqua

Associate

s

SMRT

English TESOL

University

of

Michigan

Press

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

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

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

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

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


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Instructors at client schools are provided complimentary training and internationally recognized ESL teacher certification

Unlike textbooks, revisions to our digital curriculum are uploaded immediately and at no additional cost to the student

Dynamic and interactive curriculum designed to meet the needs of today’s adult ESL students in a classroom setting

Students subscribe for the curriculum directly through theCloud Nine website www.cloudnineesl.com

Targeted Marketing

Adult Study Program designed for the classroom

Technical Schools – Universities – ESL Providers

The Cloud Nine ESL PROGRAM is specifically designed to meet the needs of students aged 15 years and older. Users pay a monthly licensing fee to access the curriculum which replaces the current cost of textbooks.

The Company targets its marketing efforts at existing schools and ESL providers outside of Canada that teach English as part of their studies program.

http://www.cloudnineesl.com/


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Initial Clients & Active Proposals

MEXICO CITY

Colegio Manantial

200 studentsSao Paulo, Brazil

2,500 studentsPlaya, Mexico

100 studentsVancouver, CND

150 studentsCancun, Mexico

200 studentsMexico City

300,000 studentsSao Paulo, Brazil2M across Brazil

1,000 studentsCancun, Brazil

14,000 students30 schoolsAcross Mexico

4,000 studentsSao Paulo, Brazil

30,000 studentsacross Mexico

TamaulipasPopulation 3.2M 1,500 ESL teachers

Active pilot programs and initial contracts

March-May 2017

Quintana RooPopulation 1.3M

2,000 usersState Government

Active contract April, 2017

15,000 studentsOnline learning

MexicoPopulation 122M

Immigration 37,000Inspection Div 2,700

Active contract May, 2017

Combined enrolment of active schools - 348,150Percentage learning English 62% - 215,300

Users needed to achieve positive cash flow - 2.5%


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Expanding User Base

Initial Focus

The Company will continue to expand its user base in Mexico and Brazil which have acombined population of 350M people. ESL skill in both countries in low which is matchwith very high demand.

Second Wave

Once establish in Mexico and Brazil, and having achieved a cash flow positive position, CloudNine will expand its marketing in Latin / South America and then seek market penetration inSouth Korea, Japan and Taiwan.

Ongoing growth will take Cloud Nine into China & S.E. Asia & Middle East before extending its reach intoAfrica.

Established Leads

Brazil Mexico Peru / Chile

CNA 600,000 Panamericana 5,000 Norte Americana 17,000

Unisan 35,000 Playa de Carmen 25,000 DUOC 100,000

PUCPR 20,000 Instituto Mexico 15,000 Grange School 5,000

CEFET 17,000 Mexico City 50,000 PUIRA 27,000

Totals 672,000 95,000 149,000


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Revenue Objectives

Year End Active Users Annual Revenue*

2017 40,000 $4,800,000 USD

2018 100,000 $12,000,000 USD

2019 250,000 $30,000,000 USD

2020 500,000 $60,000,000 USD

2021 1,000,000 $120,000,000 USD

*Annual revenue figures noted above are based on the lowest subscription rate of $10 per user permonth which has been assigned to Latin America. Other countries and regions are expected togenerate higher subscriptions. For example, Japan and South Korea are estimated to generate $20per user per month. Students in North America typically pay $60 per month as a “materials fee”.


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Sales & Marketing

The Company closed IPO Nov 25th. Proceeds used to hire sales and marketingpersonnel in Mexico and in Brazil. The sales teams will augment the activities ofdistributors already working in the region.

Corporate Development

Website Presence & Key Recruitments

The Company will be upgrading its website content to create a more user friendlyarchitecture which optimizes the client’s experience.

Cloud Nine will continue to develop its reputation as an industry leader andexpand its technical capacity through key recruitments to our team of experiencedmanagement and staff.

IP Development

Cloud Nine is actively developing Intellectual Property that will create significantbarriers to entry for competitors and assist to establish the Company as anindustry leader


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Michael Hunter - PRESIDENT & CEO

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

Dalton Larson - CHAIRMAN, BOARD OF DIRECTORS

Mr. Larson has over 40 years of academic, legal and corporate experience. He is a highly regarded businessmanwith extensive experience managing private and public companies. Mr. Larson worked with Mr. Hunterbetween 2005 – 20011 when they started First Coal Corporation with an initial investment of just $60,000before developing the company and selling it to Xstrata for $157M in 2011.

Kulwant Sandher - BOARD of DIRECTORS

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

Boris Mann- Chief Technology Officer

Mr. Mann brings considerable experience to the Company following his work at Full Stack Ventures and Human Experience Research Corporation. His primarily focus at Cloud Nine will be to leverage scalable technology platforms to support the Company’s cutting edge digital ESL curriculum, and to and explore a optimized approaches to support delivery of the Cloud Nine ESL Program direct to a student’s mobile device.

Fergus Fadden - DIRECTOR OF TEACHER TRAINING & CURRICULUM DEVELOPMENT

Fergus Fadden is an experienced and well recognized ESL instructor and teacher trainer, mentor and manager.He earned his first degree in law before joining the international ESL community in 2010 and has since workedin France, Spain, Brazil, the United States, South Africa, Canada and Ireland before joining the Cloud Nine teamin early 2015.

The Team Leaders


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Cloud Nine College

In addition to selling its digital ESLcurriculum, the Company operatesCloud Nine College which is locatedin the heart of downtown Vancouver.

The schools serves as a venue inwhich the Company’s ESL Programcan be properly tested and vetted.

Both Cloud Nine College and theCloud Nine ESL Program have beenaccredited by the BC Provincethrough its governing agency (PCTIA).


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Corporate Structure & Trading Information

Share structure as of December 01, 2016 - post IPO

Shares 32,104,210 Outstanding 40,278,090 Fully Diluted

Gross proceeds $2,700,000

Ownership & Stock Restrictions

Management and staff own 35% of outstanding shares

36 month stock restriction…………………………………. 11,289,110 35%10% at listing & 15% every 6 months thereafter

18 month stock restriction…………………………………. 5.0M shares 16%25% at listing & 25% every 6 months thereafter

Active trading on the CSE

Commenced on December 01, 2016 Symbol CNI


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With a Worldwide Market

World linguistic market generates over $56B per year

More than 1 billion people per year study English

ESL dominates all other languages with more than a 50% share of the global linguistic market

Our Competitive Advantages

Government Accredited, Cloud Based ESL Curriculum

The capacity to train and certify ESL instructors provides a competitive advantage that positions the Cloud Nine ESL PROGRAM as an attractive option for school administrators

Ongoing cataloguing of Company IP and patent rights

Our Industry Expertise

Qualified ESL teacher trainers on staff

Cloud Nine ESL COLLEGE: Accredited school in Vancouver

Ability to develop cloud hosted, digital based ESL curriculums

How We Create a Winning Outcome


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A Profitable Business Model

Recurring revenue from a market of more than 1B potential users located all over the world

EBITDA projected to exceed 30%

English will remain the dominant international language for the foreseeable future

A Proven Management Team

Management team with a track record of successful liquidity events

Experience in private and public company settings

Comprehensive expertise with digital curriculum development

The Right Time with the Right Product

Cloud Nine Education Group is one of a limited number of companies able to design, develop and deliver digital ESL curriculums

Institutions seeking cloud based English language curriculums will have their requirements met with the Cloud Nine ESL Program, which is complemented with ongoing training & support for client teachers

Summary


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To learn more about our cutting edge approach to teaching English

as a Second Language contact:

Contact Information

Paul SearleInvestor Relations

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

corporate profile - scp-cdn-hp2ihgdztoaaaxh.netdna … · unisan 35,000 playa de carmen 25,000 duoc...

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