nhp corporate presentation september2019...affecting crops, such as grey mould (viticulture,...

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Corporate Presentation September 2019 TSXV | NHP

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Page 1: NHP Corporate Presentation September2019...affecting crops, such as grey mould (viticulture, vegetables) and powdery mildew (cannabis). ... World Intellectual Property Organization

Corporate Presentation

September 2019

TSXV | NHP

Page 2: NHP Corporate Presentation September2019...affecting crops, such as grey mould (viticulture, vegetables) and powdery mildew (cannabis). ... World Intellectual Property Organization

FORWARD-LOOKING STATEMENTS

This presentation contains forward-looking statements that reflect the Company’scurrent expectations regarding future events. There’s a risk that expectations, and theforward-looking statements on which they are based, will not prove to be accurate.

Readers are cautioned not to place undue reliance on forward-looking statements, as they involve risks anduncertainties that could make actual results differ materially from those projected therein and depend on anumber of factors, including, but not limited to, the Company’s lack of history of profitability, the availability offuture financing, the Company’s ability to protect its intellectual property rights and obtain patents, dependenceon key personnel, the competitiveness of the marketplace, technological obsolescence, share price volatilityand other risks described from time to time in the Company’s filings.

While Mondias acknowledges that future events and developments may cause its views to change, itundertakes no obligation to update forward-looking statements, except as required by applicable securitieslaws.

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TSXV | NHP

Page 3: NHP Corporate Presentation September2019...affecting crops, such as grey mould (viticulture, vegetables) and powdery mildew (cannabis). ... World Intellectual Property Organization

> Mondias Natural Products (TSXV: NHP) specializes in the commercialization and development of evidence-based botanical products for the bio-agriculture and healthcare markets.

> Mondias is focused on large, growing markets, such as biopesticides, biostimulants, agriculture, cannabis, sleeping aids, wound healing, acne, nail fungus, and hair loss.

> The Company has a strong IP portfolio, including 53 products with Health Canada Natural Product Numbers (NPNs) and 4 patents.

> Mondias generates revenues by selling its products through its Holizen division and web platform (www.holizen.com), as well as through retailers, distributors, and co-branding partnerships.

-A GROWTH STORY

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Page 4: NHP Corporate Presentation September2019...affecting crops, such as grey mould (viticulture, vegetables) and powdery mildew (cannabis). ... World Intellectual Property Organization

Patrick Frankham, PhD, MBAChief Executive OfficerMore than 25 years of diverse natural products and pharmaceutical experience across both business and research leadership roles in domestic and international markets.

Jamil Samsatly, M.Sc.Chief Scientific OfficerOver 10 years of experience in global sustainable agriculture, healthy agri-food systems and molecular biotechnology.

Sabino Di Paola, CPA, CAChief Financial OfficerOver 10 years of experience in audit, finance and accounting as an auditor for PricewaterhouseCoopers and BDO Canada.

André RancourtExecutive Chairman and Co-Founder of Mondias(previously CEO and Chairman for Tetra Biopharma)

Louis DoyleExecutive Director of Quebec Bourse(previously VP of TSX Venture Exchange, Montreal)

Frank PalantoniCEO of LabM2(previously President of Pet and Life Science, Global CEO of Gerber Products and CEO of Novartis Consumer Health)

Michel TimperioPresident - Cannabis Business, Neptune Wellness Solutions

Bertrand VenneConsultant(previously COO at Fromage Côté, President and CEO of Entreprises Pâtes et Croûtes LB and Aliments Novali)

BOARD OFDIRECTORS

LEADERSHIP -Broad expertise in natural products development and

commercialization-

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Page 5: NHP Corporate Presentation September2019...affecting crops, such as grey mould (viticulture, vegetables) and powdery mildew (cannabis). ... World Intellectual Property Organization

BiopesticidesBiostimulants

Grey mould and powdery mildew postharvest infections1 causes global annual economic losses of US$10 billion to $100 billion

Sleeping aids Global sleeping aids market valued at US$69.5 billion in 2017, expected to reach US$101.9 billion by 20232

2020

Insect repellent Global insect repellent market expected to grow at a CAGR of 6.5%to reach US$7 billion by 20263

Acne Global acne drug market expected to grow at a CAGR of 4.2%to reach US$5.9 billion by 20254

Nail fungus Global nail fungus market expected to grow at a CAGR of 7.6%to reach US$6.7 billion by 20265

Wound healing Global wound healing market valued at US$23.3 billion in 2016, expected to reach US$35 billion by 20256

Hair loss Global hair loss market valued at US$7.3 billion in 2015, expected to reach US$11.8 billion by 20247

FOCUS ON LARGE, GROWING MARKETS

2019

51 L. Hua et al., 2018; 2 P&S Market Research, May 2018; 3 Transparency Market Research, April 2018;4 Grand View Research, Inc., November 2018; 5 Persistence Market Research, July 2018;6 Transparency Market Research, March 2018; 7 Grand View Research, Inc., June 2016.

TSXV | NHP

Page 6: NHP Corporate Presentation September2019...affecting crops, such as grey mould (viticulture, vegetables) and powdery mildew (cannabis). ... World Intellectual Property Organization

> The global pesticide market, which includes synthetic pesticides and biopesticides, is expected to grow to US$90 billion by 20232.

> Synthetic pesticides pollute ecosystems, cause human health problems (recent example of Glyphosate or Roundup) and create pest resistance.

> The global biopesticides market is anticipated to grow at a CAGR of about 21.2% during 2017-20253, due to:

- Increasing demand for organic food- Awareness about harmful effect of synthetic pesticides- Novel products- Easy decomposability- Advent of new kind of pests- Growers seeking eco-friendly alternatives.

1 L. Hua et al., 2018;2 Research and Markets, August 2018;3 Inkwood Research, Sept. 2017.

A BETTER ALTERNATIVETO SYNTHETIC PESTICIDES?

-Biopesticides Biostimulants +US$10 billion

market opportunity1

-

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Page 7: NHP Corporate Presentation September2019...affecting crops, such as grey mould (viticulture, vegetables) and powdery mildew (cannabis). ... World Intellectual Property Organization

> CELEXT07 bio-defense stimulant proven to be a superior, eco-friendly alternative to synthetic pesticides.

> Developed and tested with McGill University to prevent and fight diseases affecting crops, such as grey mould (viticulture, vegetables) and powdery mildew (cannabis).

> Successful large-scale greenhouse trials on tomatoes, lettuce and hops.

> Positive field tests on cannabis plants with leading cannabis producer.

> Patent pending on herbal phytosanitary composition and methods for the prevention and treatment of plant infections in Canada, the U.S., Europe, China, Australia, Brazil and the World Intellectual Property Organization (WIPO).

CELEXT07 BOTANICAL EXTRACT-

Mondias’ superior eco-

friendly alternative to

synthetic pesticides

-

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Page 8: NHP Corporate Presentation September2019...affecting crops, such as grey mould (viticulture, vegetables) and powdery mildew (cannabis). ... World Intellectual Property Organization

NEXT STEPS

> Product is ready to market.

> Ongoing product testing and discussions with leading cannabis producers, as well as agriculture and horticulture companies.

> Strategy to develop co-branding partnerships.

> Production capacity secured to meet demand from potential clients.

-CELEXT07

-Production

capacity secured and

product ready to market

-

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Page 9: NHP Corporate Presentation September2019...affecting crops, such as grey mould (viticulture, vegetables) and powdery mildew (cannabis). ... World Intellectual Property Organization

SLEEP DISORDERS ARE:

> Common: about 50% of adults experience occasional bouts of insomnia and 1 in 10 suffers from chronic insomnia2.

> Diverse: insomnia, sleep apnea, restless legs syndrome, narcolepsy.

> Likely to increase: 24/7 society.

ANXIETY AND DEPRESSIVE DISORDERS ARE:

> The two most common psychiatric illnesses across the globe.

> The main causes of sleep deprivation.1 P&S Market Research, May 2018;2 IndustryARC, April 2018.

-SLEEP DEPRIVATION AND ANXIETY: A GROWING PROBLEM

-Combined

+US$100 billion sleeping aid and anxiety market by

20231

-

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TSXV | NHP

Page 10: NHP Corporate Presentation September2019...affecting crops, such as grey mould (viticulture, vegetables) and powdery mildew (cannabis). ... World Intellectual Property Organization

> Mondias developed its first natural health product line with proven efficacy for sleep and anxiety disorders.

> Ongoing research to assess if our product can induce restorative sleep in patients suffering from chronic pain.

> Patent pending on herbal compositions for the treatment of sleep and dream‐related disorders in the U.S. and WIPO.

NEXT STEP

> Launch of our new product line planned for 2019.

SLEEPING AID PRODUCT LINE

-Proven efficacy

for sleep and anxiety

disorders-

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Page 11: NHP Corporate Presentation September2019...affecting crops, such as grey mould (viticulture, vegetables) and powdery mildew (cannabis). ... World Intellectual Property Organization

Mondias has 53 Natural Product Numbers (NPNs) registered with Health Canada in various health market segments. It has commercialized approximately 30 products in the following market segments:

-Goal is to bring these products to market in the

next three years

-

-NATURAL PRODUCTS PIPELINE

> Bone health> Stress and anxiety> Cardiovascular health> Hair health> Pain management> Skin health> Joint pain> Digestive health> Energy and vitality

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Page 12: NHP Corporate Presentation September2019...affecting crops, such as grey mould (viticulture, vegetables) and powdery mildew (cannabis). ... World Intellectual Property Organization

> Mondias generates revenues by selling its consumer products through natural health product stores via its Holizen division.

> Expanding into the rest of Canada and grow sales in Quebec by stepping up promotional activities.

> Sales representation agreement signed with a leading company specializing in retail sales of natural health products in Ontario.

> Ontario has 450 natural health products stores, compared to 200 in Quebec.

> Next step includes expansion into Western Canada.

HOLIZEN -2019 expansion could generate

significant growth

-

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Page 13: NHP Corporate Presentation September2019...affecting crops, such as grey mould (viticulture, vegetables) and powdery mildew (cannabis). ... World Intellectual Property Organization

FINANCIALPERFORMANCE

-Gross margin of 69% in Q2

2019-

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Fiscal year ended November 30 2018 2017

Revenues(no comparative figure as F2017 consisted of a single quarter)

$537,000 n/a

Q2 ended May 31 2019 2018

Revenues $121,515 $129,131

Gross margin 69% 69%

Focusing on growing revenueLaunching new productsCommercializing IP portfolio

TSXV | NHP

Page 14: NHP Corporate Presentation September2019...affecting crops, such as grey mould (viticulture, vegetables) and powdery mildew (cannabis). ... World Intellectual Property Organization

> CELEXT07: form co-branding partnerships with leaders in the agriculture, horticulture and cannabis markets.

> Sleeping aid product line: launch planned in 2019.

> Looking at complementary acquisitions to boost revenues, profitability and product offering.

> Expand Holizen’s operations into the rest of Canada.

> Continue to develop other products with the goal of bringing them to market.

GROWTH STRATEGY-

Focus is on lead products

and short-term growth

opportunities-

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Page 15: NHP Corporate Presentation September2019...affecting crops, such as grey mould (viticulture, vegetables) and powdery mildew (cannabis). ... World Intellectual Property Organization

TSX Venture Exchange(On November 26, 2018, Mondias completed a reverse takeover of Element 79 Capital Inc.)

NHP

Shares outstanding 63.1M

Warrants(exercice price: $0.25)

6.9M

Options(average exercice price: $0.22)

4.3M

Fully diluted shares 74.3M

Stock price(as of August 31, 2019)

$0.105

Insider ownership 36.3M(58%)

CAPITALIZATION

-Committed

insiders hold 58% of the

shares-

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Page 16: NHP Corporate Presentation September2019...affecting crops, such as grey mould (viticulture, vegetables) and powdery mildew (cannabis). ... World Intellectual Property Organization

-CONTACT INFORMATION

Patrick FrankhamChief Executive Officer-1 [email protected]