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Page 1: CSE: HS - HealthSpaceweb.healthspace.com › wp-content › uploads › 2017 › 11 › ... · Case Study: Mar-a-Lago Hotel Just recently, the Mar-a-Lago resort and hotel was cited

Q4 2017

CSE: HS

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This presentation contains forward-looking statements and forward-looking

information within the meaning of applicable securities laws. The use of any of

the words "expect“, "anticipate", "continue", "estimate", "objective", "ongoing",

"may", "will", "project", "should", "believe", "plans", "intends" and similar

expressions are intended to identify forward-looking information or statements.

More particularly and without limitation, this presentation contains forward-

looking statements and information concerning HealthSpace’s future financial

performance. The forward-looking statements and information are based on

certain key expectations and assumptions made by HealthSpace, including

expectations and assumptions concerning the success of new product

development, HealthSpace’s ability to integrate acquired businesses and

complete strategic acquisitions of additional business and other factors that

affect demand for HealthSpace’s products.

Although HealthSpace believes that the expectations and assumptions on

which such forward-looking statements and information are based are

reasonable, undue reliance should not be placed on the forward-looking

statements and information because HealthSpace can give no assurance that

they will prove to be correct.

By its nature, such forward-looking information is subject to various risks and

uncertainties, which could cause HealthSpace's actual results and experience

to differ materially from the anticipated results or expectations expressed.

These risks and uncertainties, include, but are not limited to expenditures and

other factors that affect demand for HealthSpace’s products, industry

competition, the need to effectively integrate acquired businesses, uncertainties

as to HealthSpace’s ability to implement its business strategy effectively in

Canada and the United States, labor, equipment and material costs, access to

capital markets, interest and currency exchange rates, technological

developments, political and economic conditions and HealthSpace’s ability to

attract and retain key personnel. Additional information on these and other

factors is available in the continuous disclosure materials filed by HealthSpace

with Canadian securities regulators.

Readers are cautioned not to place undue reliance on this forward-looking

information, which is given as of the date it is expressed in this presentation or

otherwise, and not to use future-oriented information or financial outlooks for

anything other than their intended purpose. HealthSpace undertakes no

obligation to update publicly or revise any forward-looking information, whether

as a result of new information, future events or otherwise, except as required

by law.

Public Disclosure

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Our Mission

It’s our goal to put a tablet into the hands of every inspector,

freeing them from time-wasting paperwork and enabling them

through unfettered mobility.

Further, we are committed to empowering commercial

enterprises into developing comprehensive auditing processes

centered around environmental health scoring, data

management, and machine learning enabled actionable

insights.

HealthSpace aims to be the leading technology vendor for

public sector & commercial enterprise environmental health

software solutions in North America.

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Problems &

Challenges

Commercial Enterprise

Outside the scope of government auditing to ensure citizens’

safety; private businesses have no unified operation

management and reporting tool that is designed around

environmental health. These organizations have low visibility

into how prepared they are for environmental health audits—

almost always operating reactively.

Government

Need to effectively manage environmental

health inspections for their cities and

constituents as well as collect and analyze

data in a cost effective and simple manner.

The

Gap

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Innovation

HealthSpace CS Pro

A platform that combines inspections, reporting, management

and data through our three products.

HealthSpace

Touch

A native iOS,

Android and

Windows app for

field inspections

HealthSpace

Cloud

Cloud based

portal for

managing apps,

licensing, permits

and other data

HealthSpace

Data

Environmental

health reporting

and analytics tool

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HealthSpace Touch

Conduct paperless field inspections

from any place, at any time with our

intuitive suite of native apps for iOS,

Android and Windows.

HealthSpace Cloud

A fully-customizable cloud-based portal

for managing applications, licenses,

permits, inspections and other data.

HealthSpace Data

An environmental health reporting,

analytics and monitoring platform.

HealthSpace Data is a robust platform

that turns information overload into

useful, actionable insights.

Solutions: Public Sector

Public Sector utilizes HealthSpace CS Pro across multiple jurisdictions. This delivers: Performance update,

reliability, geo-tagged data, streamlined workforce management and comprehensive technology matched to

best in class support.

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Solutions: Enhanced Public Sector Engagement

HealthSpace is launching a new pilot with one large US State aimed at enabling an integration between the public and private sectors. Our pilot

partner performs 3,000 inspections per-day of which 900 are restaurant facilities—Approximately 10% of these fail or receive poor results. We

will be alerted to these negative scores and be able to act directly, endorsed by the State. Present our SaaS solution as an effective remedy

delivering value to private businesses and sharing the top-line with our State partner.

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Solutions: Restaurants & Hospitality

Configurability

Our platform can be easily tailored to fit

our users needs without the need for

developers. This means they can

create custom inspections while

integrating their local health agency

requirements.

We empower restaurants to take control and protect their brand by utilizing our platform's customizability and

actionable data insights.

Proactive

We empower our users to act before

their customers complain which helps

them proactively protect their brand.

Useful Data

Our users can easily report and

aggregate their data so that they can

gain actionable insights and

understand what to do next.

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Case Study: Chipotle

National & Local health departments did

investigations and were able to pinpoint the

chains with the issue, the food being served,

where it came from and ultimately the illness.

A class action lawsuit was brought against

Chipotle resulting in a sales drop of 30%, which

lost the company USD$6 billion in market

capitalization.

Outbreaks & Health Department

Response

Food borne illness outbreaks are frequent. When they do

happen, its the job of the Health department to investigate and

determine the source of the outbreak and the illness.

With adequate data management technology from previous

inspections, they can provide faster investigation results and

response to these outbreaks.

As more outbreaks occur and are nationally distributed

throughout the media, more health departments are interested

in having proper technology and software to track the data.

Additionally, more chains and companies would like to monitor

their inspection data from these heath departments.

HealthSpace Touch can be configured for internal auditing

processes using the same standards as the government

inspectors.

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Solutions: Hotels

Integrations

The ability to customize and integrate

data from sources such as equipment

maintenance is invaluable for the

operation of hotels.

Hotels are like small cities. They act as operational entities with lots of moving parts requiring daily,

quarterly, and weekly audits. They require constant monitoring on environmental health and facility

maintenance.

Visibility

Hotels can easily report and aggregate

their data so that they can gain

actionable insights and understand

what to do next.

Proactive

We empower hotels to act before their

customers complain which helps them

proactively protect their brand.

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Case Study: Mar-a-Lago Hotel

Just recently, the Mar-a-Lago resort and hotel was cited with 15

health violations that included meat and seafood stored at

improper temperatures and other health issues by Florida health.

This is nothing new either for the Mar-a-Lago resort and hotel and

it has received 78 violations over the past 3 years.

The HealthSpace CS Pro platform enables hotels to proactively

take action to provide the best customer experience by

integrating local public inspection requirements into the facilities

custom inspection process.

Also useful to this specific vertical is the configurability of our

platform and the ability integrate data such as refrigeration

temperatures.

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Solutions: Cannabis Production and Distribution

Trusted for government

compliance

Our software is used for licence and

business process tracking.

Market research has identified that there are numerous innovation gaps in the cannabis production and distribution space. HealthSpace has

partnered with 1804 Management LLC to further iterate the HealthSpace CS Pro platform which is currently being used for agribusiness

applications to provide a more fully realized cannabis technology for auditing and operations.

Extensive agriculture industry

experience

Over 20 years of experience with

agencies such as the department of

agriculture.

The right fit for the Cannabis

industry

From process, production to

compliance, HealthSpace CS Pro is a

perfect fit.

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Case Study: OrganiGram Type II recall

Health Canada released their first public recall of a cannabis

product since March 2015 today, with the announcement of a

Type II recall of 69 lots of product, this is in addition to five lots

recalled under a Type III recall in late December of last year.

The public recall notice explains that five product lots in

December had tested positive for myclobutanil “and/or”

bifenazate. Both of these are unapproved pesticides under Health

Canada’s ACMPR. Then, On Jan 9 of this year, OrganiGram

initiated a second voluntary recall, this time a Type II recall based

on trace amounts of the same pesticide(s) found.

The HealthSpace CS Pro platform enables cannabises producers

to streamline their operations as well as maintain safety and

compliance with local public health regulations.

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• Agriculture

• Hospitality

• Food & Beverage

• Government & Public

Sector

• Health Care

• Cannabis

• Retail

2015

$3 Billion USD

Market Size 2024 - 12% CAGR

$8.3 Billion USD

Market Size

HealthSpace Components:

• Software

• Quality & Risk Assessment

• Data Analytics

• Environmental Compliance

• Auditing

• Certification

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Why HealthSpace

What we do

Deliver enterprise cloud-based software to

government organizations, such as

Environmental Health Departments.

Deliver current and historical data-sets to

government and commercial businesses.

Ultimately, Health Space enables

organizations to deliver value to their

communities and customers.

How we generate revenue

Through Software-as-a-Service (SaaS),

via subscriptions or termed contracts.

Serving over 300+ government agencies,

with contracts averaging 3-5 years and

launched our commercial enterprise

business development activities.

Deliver new lines of business to

commercial enterprise verticals such as

food and beverage, hospitality and long

term care.

Advantages of our software

Unified HSCloud Suite Pro is the only

environmental health tech solution that

can simultaneously service government

and commercial enterprise out-of-the-box.

Government level applications with

modern tech UI/UX that rapidly

accelerates client adoption.

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Hear from some of our happy customers

We're proud to serve 300+ government and public health agencies as well

as private sector companies. Here’s what some of them have to say about

us.

It's amazing how quick HealthSpace can

produce a module to meet our needs.

This is most appreciated by all with the

Health Canada Public Health Bureau.

Again, Steve THANKS for the great job.

Gus Skinner

Public Health Agency of Canada

HealthSpace has met every one of

our requirements on time and with

great products. Our professional

staff and our clients are fully

satisfied.

Patricia Lemay

Director, P.H.B. Health Canada

I have been extremely satisfied with

the quality of the HealthSpace

system. This is our first computer

program for inspections and I have

found the program to be easy to use.

Brenda Ashworth

Environmental Health Specialist

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2016 - Q1

Completed Initial

rollout/product completion of

the HealthSpace CS Pro Suite

2016 - Q4

First statewide implementation of the

mobile HSTouch in the field for the

State of Tennessee Dept. of

Agriculture. All inspectors for the

department of agriculture switched to

using HSTouch in the field for their

food inspections

2017 - Q1

Second statewide sale of the

HSTouch product for the

Tennessee Dept. of Health

2016 - Q2

Signed first client, East Metro

Health District in Atlanta with

the HealthSpace CS Pro

2016 - Q4

Teamed up with Keboola for

enhancing HealthSpace’s data

product solutions

2017 - Q1

Complete UI/UX

upgrade to HealthSpace

CS Pro Suite

Milestones

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2017 - Q2

Signed first commercial

enterprise SaaS customer in

restaurants and hospitality

2017 - Q3

Signed first commercial

enterprise franchiser in a multi-

state deal

2017 - Q3

Awarded State of Virginia

multi-year deal

2017 - Q2

Awarded City of Fort Worth, Texas

multi-year contract

2017 - Q3

Signed first cannabis partnership

agreement with 1804 Management LLC

2017 - Q3

Launching first hotel group

client engagement*

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Freemium pricing model:

First 1-3 sites are freemium - This allows for faster

onboarding and purchasing activities.

• Hotels - 50 Locations x $500/month x 24

month SaaS term x 4 Customers = $2.4m

USD Annually

• Restaurants - 25 Locations x $100/month x 24

month SaaS term x 25 Customers = $1.5m

USD Annually

• Cannabis - 10 Locations x $500/month x 24

month SaaS term x 6 Customers = $720k

USD Annually

Historical Revenue Commercial Enterprise Sales Model

Public Sector Opportunity

Fiscal 2015 Fiscal 2016 9 months 2017

Revenues $1,860,441 $1,938,684 $1,454,904

Fiscal 2018 - 12 new organizations for an additional reoccurring

revenue of $900,000

Fiscal 2019 - 20 new organizations for an additional reoccurring

revenue of $1,500,000

Fiscal 2020 - 27 new organizations for an additional reoccurring

revenue of $2,000,000

for a total of $6,400,000 annual revenue.

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Management Team

Joseph Willmott - President &

Director

Over 35 years of business experience

Acted as a policy advisor to the Saskatchewan

Minister of Agriculture

Chair of the Canadian Veterinary Medical

Association’s Animal Health Research Fund

Chair of the Organizing Committee for

International Centre for Agricultural Science &

Technology

Ali Hakimzadeh, Chairman of the Board of Directors

Over 20 years experience in the financial services industry, senior Investment Banker at Canaccord

Genuity.

Involved in over $1 billion of financing and Merger and Acquisition activities in the small cap sector

Maureen Garrison - COO

Worked for local newspaper that provided public with information regarding public health inspection

scores for local restaurants & daycares.

Project manager, senior project manager and director of operations for one of the leading providers of

software to Environmental Health Departments in the US.

Silas Garrison, CTO and Director

Leads the design and development of HealthSpace’s suite of software technologies.

Designed and built the company’s industry-first iPad and Android environmental health inspection apps.

Independent Directors

David Eaton - Director

Mr. Eaton has over 25 years experience in public markets with exposure to all aspects of the business

as a trader, financier and market maker. Over his career, Mr. Eaton has started many public companies,

managing the process from creating the structure, organizing the initial public offering and post listing

administration.

Alnesh Mohan - Director

Mr. Mohan has been a partner at Quantum Advisory Partners LLP, a professional services firm focused

on providing chief financial officer and full-cycle accounting services to private and public companies,

since 2005. Mr. Mohan has over 20 years of accounting, auditing and tax experience providing advisory

services to a wide array of clients

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Advisory Board

George Moen - Advisory Board Chairman

Mr. Moen is a serial entrepreneur and business leader who specializes in top-line growth across a

variety of industries, including extensive experience in the food and beverage industry. He founded his

first business, Sandwich Tree, while in university, and grew the restaurant chain to over a hundred

stores across Canada. He subsequently founded and exited a number of successful businesses in

technology, media and hospitality.

Ian Tostenson - Advisory Board

Mr. Tostenson is an appointed director to the premier's permanent small business roundtable (advising

government on issues and opportunities for small business) and took on the challenge as an appointed

member of British Columbia's climate team to chart out B.C.'s carbon future.

Warwick Smith - Advisory Board

Mr. Smith is a venture capitalist specializing in corporate finance and development for publicly traded

companies. Mr. Smith has a background in capital marketing and finance, and he formerly served as the

Chief Executive Officer of Health Space DataSystems. Previously Mr. Smith was Chief Executive Officer

of Western Pacific Resources Corp.

Steven Lee - Advisory Board

Mr. Lee is a dynamic leader and experienced financial executive with a career focused on hypergrowth

companies. As an early employee of Mobify, a privately owned SaaS (software as a service) company

with a staff size of 160, Mr. Lee successfully secured the company's first financing (plus $10-million), led

the M&A (mergers and acquisitions) process of multiple U.S.-based companies, oversaw a 300-per-cent

growth in revenue and a 400-per-cent increase in staff with expansion into the United Kingdom and

United States, while providing strategic advice to the chief executive officer and board of advisers.

Peter Smyrniotis - Advisory Board

Commercialization professional, technology advisor & entrepreneur-in-residence with Victory Square

Labs and the Hillcore Group.

Worked with both private and public companies providing business development, strategic sales,

channel & partnership and cloud brokerage strategic planning and execution.

Atul Jain - Advisory Board

Mr. Jain is a leader in the environmental health profession. He is the past president of the Association of

Supervisors of Public Health Inspectors of Ontario. Atul has spent over 15 years as a health protection

professional and is currently Manager of Environmental Health at Peterborough Public Health.

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CSE: HS

Share Capital 112,413,688

Warrants 17,521,500

Stock Options 7,260,000