investor overview - tru•trace technologies, inc. · investor overview confidential and...
TRANSCRIPT
Ideas that move people, technology that moves mountains
TICKER: CSE – TTT / OTCQB – TTTSF
Investor Overview
Confidential and proprietary
All currency amounts are in CAD unless stated otherwise
These factors may cause our actual performance and financial results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements. Forward-looking statements do not take into account the effect that transactions or non-recurring or other special items announced or occurring after the statements are made have on our business. For example, they do not included the effect of asset impairments or other changes announced or occurring after the forward-looking statements are made. The financial impact of such transactions and non-recurring and other special items can be complex and necessarily depends on the facts particular to each of them.
This corporate presentation constitutes “forward-looking statements.” within the meaning of applicable Canadian securities laws. Forward-looking statements can be identified by the use of the words such as “anticipates,” or “believes,” “budget,” “estimates,” “expects,” or “is expected,” “forecasts,” “intends,” “plans,” “scheduled,” or variations of such words and phrases or state that certain actions, events or results “could,” “may,” “might,” “will,” “would,” or be taken, occur or be achieved.These forward-looking statements relate to, among other things, our future results, levels of activity, performance, goals or achievements or other future events. These forward-looking statements are based on current expectations and various assumptions and analyses made by us in light of our experience and our perceptions of historical trends, current conditions and expected future developments and other factors we believe are appropriate in the circumstances. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differmaterially from those anticipated in our forward-looking statements.
We believe the expectations represented by our forward-looking statements are reasonable, yet there can be no assurance that such expectations will prove to be correct. The purposed of the forward-looking statements is to provide the reader with a description of management’s expectations regarding our anticipated financial performance and may not be appropriate for other purposes. Furthermore, unless otherwise stated, the forward-looking statements contained in this report are made as of the date of this report and we do not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise unless required by applicable legislation or regulation. The forward-looking statements contained in this document are expressly qualified by this cautionary statement.
Data has the power to transform an industry
This young industry has enormous risks:
• A disparate and fractured supply chain
• Lack of product quality and consistency
• Piracy and counterfeiting of brands
TruTrace designed a platform to establish integrity and quality assurance measures that will transform the industry.
The global cannabis market is projected to surpass $146 billion by 2027, but it won’t get there without legitimacy.
FROM GENESIS TO EVOLUTION
The STORY of BLOCKStrain, NOW
StrainSecureIn 2018 we gave birth to the most elegant and efficient software platform in the cannabis industry focused specifically on the quality and provenance of cannabis. In 2019, we renamed the platform to better describe the benefits to our consumer market.
The StrainSecure™ platform is the premier global solution for classifying and tracking cannabis under medical standards. NOW
S T R A I N S E C U R E ™ P R O T E C T S T H E S U P P LY C H A I N F R O M I L L I C I T P L AY E R SWe use big data with an immutable, cryptographically secure blockchain to establish
a provenance for cannabis strains and their ownership
S E C U R I T Yfor consumers
I P P R O T E C T I O Nfor growers
T R A N S P A R E N C Yfor regulators
CERTIFIED SEAL & DIGITAL MARK
Each time an item is tested and verified by the network, a Registration Affidavit is auto-generated and given a unique “StrainSecure Address” and traceable QR Code.
Producers, patients and consumers can not only verify the test, they can also rate the product, and share reviews. This detail is stored within StrainSecure. As with the test results, these details cannot be modified or tampered with.
The StrainSecureCertification & Verification Platform
TM
TRACEABILITY IDENTIFIERS BETWEEN PLATFORMS
Every product within the StrainSecure™ platform will have the support for Seed to Sale and other application identifiers as required by Health Canada. We make it easy for producers to integrate their current systems with StrainSecure to have one complete product profile
Seed to Sale Integration: Inventory Management
Document ManagementOur platform helps Licensed Cultivators manage and validate all of the documents required in the testing and verification process.
Producers can collaborate with laboratories and regulators through our activity log and collaboration tool. They are notified when documents have been satisfactorily submitted. All documents are safely stored in one place.
STRAINSECURE IN ACTION: Scan to see live results
Tested products receive a “Certified Seal” with an actionable QR code used to access real-time status of genetic, microbial and chemistry tests conducted.
DRIVE USERS FROM SCAN RESULTS TO INFO OR TRANSACTION
Genetic Chemistry Microbial
Consumer/Patient
STRAINSECURE: THE SMART HUB FOR QUALITY MEDICAL CANNABIS
StrainSecure™
GS1
PRODUCT TRACEABILITY AND UNIQUE IDENTIFIER FOR ALL TRADE ITEMS
STRAINSECURE™ MASTER REGISTRY AND “SMART HUB” FOR ALL TESTING, VERIFICATION AND QA
Track & Trace
CULTIVATION, GROW & INVENTORY MANAGEMENT SYSYTEMS
Regulatory / Health Canada
Laboratories
ACCREDITED, LICENSED LABS THAT PERFORM ANALYTICAL TESTING OF CANNABIS AND DERIVED PRODUCTS
Insurance Clinical Trials / University Research
E-commerce,Point-of-Sale
REPORTING AND COMPLIANCE ENFORCMENT
ONLINE ANDIN-STORE SALES
CLINICAL CANNABIS DATABASE / CORE R&D IP POOL
1
2
3 4
5
7
6
VERIFY PRODUCTS FOR MEDICAL BILLING AND CLAIM SETTLEMENT
Medical LP Sales Licenses
Provincial Wholesaler/Retailer
8 9 10 11
REAL-TIME ACCESS TO PRODUCT SAFETY AND TESTING HISTORY
INDUSTRY LEADERS, STANDARDS AND COMPLIANCE ENFORCEMENT
API API
API
STRAINSECURE’S VERIFIED TESTING PROCESSREGISTEREach user group creates an account within StrainSecure™
Seed Farm
Grower
Cultivator
Producer
Test Facility
1SUBMIT FOR TESTINGOrganizations and independent growers submit seeds, flower and post-extraction product for testing to a registered facility.
2aSUBMIT PRE-EXISTING GENETICSOrganizations that have pre-existing data can submit via StrainSecure™ verification administrators.
2b
TESTINGRegistered and Approved testingfacilities test submissions and prepare results for StrainSecure™.
3
TEST RESULTS SUBMISSIONTest results are submitted into StrainSecure™ and transaction recorded.
4
START OF TRANSACTIONVerification by Network
TRANSACTION COMPLETEDRecorded and Verified by Network.
SUBMISSION COMPLETED & RECORDEDBlocks of data are submitted into StrainSecure™ and transaction recorded. Verification and Certification earned by all parties for participation.
5
VERIFIABLE RESULTS
Verification and payment throughout the process.
Government /
OPEN BLOCKCHAIN
UNLIMITED INDUSTRY CONNECTIONS
API
the
StrainSecureOpen APIBlockchain open technology makes the platform available to everyone, resulting in widespread adoption and use.
StrainSecure’s secure API network fuels technology and innovation by enabling providers and software developers to build cannabis-centric applications.
StrainSecure™ will have billions of data points on every step of the cannabis logistics chain allowing us to own the market.
TM
M A S T E R T R A C E A B I L I T Y P I L O T P R O G R A M , D E S I G N E D F O R S H O P P E R S
Strain PrintPATIENT / COMMUNITY
TruTrace™GENETIC / TESTING REGISTRY
Deloitte
Metrc (CGI)
Ample Organics
AnandiaGENETICS / CHEM & MICRO
Tata ConsultingGS1 Canada
Aleafia
Aphria
Aurora
Tilray
United Greeneries
365 Cannabis
NexTec Sage X3
TRACK & TRACE PARTNERS
LICENSED PRODUCERS
ShoppersDrug Mart
CONSULTING PARTNERS
DISTRIBUTION PARTNERS
LAB PARTNERS
THIRD-PARTY PARTNERS
Segra Int’l.GENETICS
MSCCHEMISTRY / MICROBIAL
WeedMD
AirMed
Zenabis
A&L LabsCHEMISTRY / MICROBIAL
T H E M A R K E T I S R E A D Y
S T R A I N S E C U R E ™ : C A N N A B I S V E R I F I C A T I O N S A A S M O D E L
• Genetic provenance• Standard cannabinoids• Standardized terpenes• Verified test results• Historical data
Accessed in real-time by:
• Distributors• Physicians• Pharmacists• Patients• Insurance Providers• Regulatory Agencies
Global testing and traceability smart-hub connects suppliers and distributors
Interoperability with laboratories for standardized testing
Genetic
Chemistry
Microbial
Vendors’ seed to sale inventory integrated into StrainSecure
Monetization of StrainSecure™
• Monthly SaaS Usage Fees• Genetic Verification Fees• Standardized Test Verification Fees• Traceability Fees• Custom Development• Third Party Publishing Licensing Fees
2019RevenueAvailable
3.68B
1.26B
T R U T R A C E : R E V E N U E M O D E L A N D A S S U M P T I O N S
A S S U M P T I O N S• Total Expected Market (2019): $50 Billion• Total Expected Market (2025): $146 Billion• Cannabis Testing Market 2017: $919 Million• Cannabis Testing Market (2024): $2.48 Billion• CBD Market (2019): $600 Million• CBD Market (2025) $16 Billion
S TA N D A R D I Z E D T E S T I N GTOTAL AVAILABLE MARKET FOR STRAINSECURE$880 Million Dollars Per Year (2019)$2.57 Billion Dollars Per Year (2025)
P R O D U C T V E R I F I C AT I O N
V E R I F I E D P R O D U C T T R A C K I N G A N D P U B L I S H I N GTOTAL AVAILABLE MARKET FOR STRAINSECURE$220 Million Dollars Per Year (2019)$644 Million Dollars Per Year (2025)
TOTAL AVAILABLE MARKET FOR STRAINSECURE$160.8 Million Dollars Per Year (2019)$471 Million Dollars Per Year (2025)
2025RevenueAvailable
TRU Trace TECHNOLOGIES: A WORLD BEYOND CANNABIS
2018: PHASE 1
Canadian Cannabis Industry
Development of the core blockchain secured genetic registry and traceability framework for the Canadian cannabis industry: StrainSecure™ and building the sales pipeline.
Keystone targets include:
§ Shoppers Drug Mart
§ Ontario Cannabis Stores
§ BC Cannabis Stores
§ Alberta Cannabis Stores
§ McKesson*
2019: PHASE 2
Expansion into the Unite
d States
2020: PHASE 4
Food Testing and Traceability
TruTrace has started an expansion into the California and Washington markets with an emphasis on legal cannabis producers, as well as CBD manufacturers and distributors throughout the United States.
Keystone targets include:
§ Walgreens
§ CVS
§ NXT Water
§ Harvest Health
§ Mr. Nice Guy
TruTrace has started initial discussions with key players in the nutraceutical industry with an emphasis on bringing a greater level of efficiency and transparency to the source materials used to manufacture nutritional supplements.
Keystone targets include:
§ Wal-Mart
§ Walgreens
§ CVS
§ Whole Foods
§ Twinlab
TruTrace has started initial discussions to develop and implement a blockchain secured food tracing program in a collaboration with supply chain software company Orion 1. Initiatives are underway to roll this out in 2020.
Keystone targets include:
§ Loblaws
§ Whole Foods
§ McDonald’s / Golden State Foods
§ Proctor & Gamble
§ Nestle
2020: PHASE 5
Pharmaceutical T
raceability
TruTrace has received initial interest and engagement regarding the development of a blockchain secured traceability system in collaboration with supply chain software company Orion1. Initiatives are underway to roll this out in 2020.
Keystone targets include:
§ McKesson
§ Pfizer
§ Shoppers Drug Mart
§ Walgreens
§ CVS
2019: PHASE 3
Nutraceutical T
esting and Traceability
Management Team
To m m y S T E P H E N S O N
CTO of TruTrace - Founder and CEO of Heated Details, Inc. a 19 year Seattle based award winning design & development firm delivering technology and creative services to fortune 500 companies including Microsoft, Google, Mercedes-Benz. Former CTO of Ghost Group (Weedmaps). Co-founder of Globatom, a revolutionary global supply chain SaaS platform.
R o b e r t G A L A R Z A
CEO of TruTrace - Co-founder of Spark Digital Technologies, a software company specializing in revolutionary enterprise technology. Over 10 years of experience in advertising and mass media communications, as well as five years in digital technologies and seven years as an attorney.
C a m e r o nC H E L L
Chairman of TruTrace - Cameron is an advisor on two ICOS (Central Coin & WENN). Cameron is also serial entrepreneur with over 25 years experience in the energy, technology and finance sectors. Cameron is the founder and co-founder of several successful ventures, including Slyce(TSX: SLC), Draganfly, RaptorRig, ColdBore, and Urthecast (TSX: UR). Cameron's primary responsibility is to provide project and strategic management facilitation
T H A N K Y O U
T R U • T R A C E T E C H N O L O G I E S , I N C .
HQ 4115 Redwood AvenueLos Angeles, CA 90066