Excerpts OF 1st Q2020 presentation of A. Gordon-- Conf. callHere are several excerpts from the presentation of Alison Gordon 48Nrth at her conference call for the 1st Q 2020 (on 26-Nov-2019). Hopefully A, Gordon, at its next meeting (Feb 2020) will confirm a good volume of sales, reasonable profits and she will give us an update on licensed drying space.--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Transcript of NRTH.V earnings conference call or presentation 26-Nov-19 1:30pm GMT Edited A. Gordon.. Good morning, everyone, and welcome again. For the first quarter of 2020, 48North remains focused on delivering on its core foundation of protecting low-cost cultivation, building brands and developing consumer-focused cannabis products. --------------------------------------- , low-cost, high-quality, consistent and organic cannabis will be a critical ingredient to remaining competitive in an increasingly crowded cultivation marketplace.------------------------------------------------------ --- With that in mind, the metric of success when looking at the cultivation of cannabis is not simply supply volume, but rather production costs, quality and the consistency of product.---------------------------------------- At our first year at the farm, 48North harvested 12,000 kilos of dried cannabis. While we initially projected a higher final yield from the farm, we remain steadfast in our commitment to outdoor cultivation at Good Farm. In 2019, the company successfully cultivated enough cannabis at Good Farm to meet its initial 2019 projections, but total harvest volume was reduced due to significant delays in the availability of licensed drying space. 48North is committed to playing by the rules and adhering to Health Canada's regulatory framework and, therefore, was limited to drying the cannabis at Good Farm in the limited drying space we have licensed. --------------------------------------. While we were not successful in receiving all of the necessary licenses required by Health Canada in the time frame we needed, we do not blame Health Canada for this.------------------------------------------------------ . We look forward to continuing to work closely with Health Canada to ensure we are granted all of the necessary licenses that we need moving forward. Looking ahead to 2020, 48North has been granted the necessary approvals from the local municipality to build a custom-built state-of-the-art drying facility located on the Good Farm, which will be able to dry our entire crop moving forward. The majority of the capital costs required to finish the facility have been spent. We intend on updating our stakeholders as we complete construction of the drying facility and are granted the necessary licenses. With that in mind, the company remains on track to meet its previously announced supply agreements with provincial wholesalers in Alberta, Ontario and Qubec. In addition, 48North is on track to meet its commitment to supply humble+fume with a significant surplus of biomass for the development of next-generation cannabis products such as vapes and topicals. ---------------------------------------------------- Today, 48North has commitments for approximately 11,000 kilos of its outdoor-grown cannabis with an average wholesale price of approximately $3.35 a gram. Today's financial results do not include revenue from the sale of cannabis grown at Good Farm as it is currently being processed andprepared for retail sale and extraction. The cannabis from Good Farm is expected to generate significant revenue for the company in upcoming quarters. We look forward to further optimizing our operations at Good Farm in 2020 by applying lessons learnt on the farm in 2019, including adding licensed drying capacity, ------------------------------------------ 48North has made significant changes to our senior operations team. These changes position the company to preserve the 2019 crop and to optimize 2020 yields. In 2019, the company made inroads in perfecting outdoor cultivation and now looks to the successful processing of its outdoor-grown product. -----------------------------------------------------------------, 48North is pleased to announce the completion of construction of Fume Labs, our large-scale CO2 and ethanol extraction facility operated in partnership with humble+fume at Good House. With the capacity to process over 30,000 kilos of biomass annually, Fume Labs will allow us to produce package and distribute in excess of 5 million concentrate vaporizers annually. While the company was not able to dry the full capacity at Good Farm due to licensed drying capacity, 48North remains committed to growing cannabis outdoors at scale. ------------------------------------------------- in August, 48North announced that it had acquired Quill, a manufacturer and developer of disposable controlled-dosage vape pens that currently has distribution in Oregon and Washington and near-term plans for rollout into other states. The acquisition allows 48North to make its first entrance into the U.S. market, while staying on-site with its TXSE listing.------------------------------------- In addition, we have secured 1 billion milligrams of highly active, high-quality active CBD oil from Iverson Family Farms, based in Willamette Valley, Oregon through an industrial and production contract. Since, the company announced that it acquired Sackville, a leading U.S.-based cannabis brand focused on design, forward cannabis accessories and CBD based products. In addition, the company also announced that it signed an exclusive licensing agreement with U.S.-based APCNA Holdings, Apothecanna, to bring its best-selling premium cannabis top U.S. brands to Canadian consumers. At 48North, we strongly believe that it's imperative to future success when and if the United States becomes a federally legal jurisdiction that the company has a robust, meaningful and strategic U.S. expansion plan. -------------------------------------------------- We also have a number of exciting announcements to make with respect to our Canadian operations. The company recently announced the launch of its outdoor-focused dried flower brands: First Harvest and Trail Mix. First Harvest, 48North's seasonal high-quality outdoor grown cannabis, is expected to be available to retail sales in Winter 2020. Trail Mix, the company's affordable natural cannabis brand, is also expected to be available in Winter 2020. 48North expects that Trail Mix will be the lowest-cost legal cannabis available for Canadian consumers. In addition, I'm happy to announce that 48North products available in Ontario, Qubec and Alberta have been consistently best-sellers. -------------------------------------- Looking ahead, 48North has received notification from the provincial wholesalers that they will be selling our next-generation cannabis products, including the Avitas vapes, our Apothecanna topical line and Mother & Clone. In a dollar understanding, that 48North vape SKUs will represent over 10% of the Ontario vape market listings, which is projected to be as big as $600 million by 2021.------------------------------------------------ 48North is ready to With the product coming off our farms, our extraction lab ready to go, licensing agreements for best-in-class next-generation products achieve new heights and begin showing significant revenue and near-term profitability. Alison Gordon, 48North Cannabis Corp. - CEO & Director [5] -------------------------------------------------------------------------------- Looking ahead, I'm confident that 48North is better prepared than ever to execute on our plan to become one of the most trusted cannabis brands in Canada, with sales contracts in place in 3 of Canada's largest provinces, low-cost cultivation from our farm, our robust plans for the legalization of next-generation cannabis products and a U.S. expansion plan, the company is well positioned for fiscal 2020. Most importantly, the company is fully funded to deliver on our business plans and expect to begin showing significant revenue largely from the Farm in upcoming quarters.