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Flower One Investor Presentation 2018 11-06

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November 2018 Investor Updates.

Recent updates include: the completion of the acquisition of the assets of NLV Organics, Inc. and related parties (“NLVO”), announced on November 14; commencing trading on the OTCQB under the symbol "FLOOF" in the United States on November 6, 2018; and the acquisition of a key retail property in October.

CSE: FONE | OTCQB: FLOOF

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Flower One Investor Presentation 2018 11-06

  1. 1. CSE:FONE | OTCQB:FLOOF Sharply focused on executional highs Investor Presentation November 2018 CSE: FONE OTCQB: FLOOF
  2. 2. CSE:FONE | OTCQB:FLOOF Disclaimer All statements other than statements of historical fact may be forward-looking statements. Forward-looking statements include forecasts for production, investments, cash flow, capital expenditures and debt levels and are based on estimates. These statements involve known and unknown risks, uncertainties, assumptions and other factors, some of which are beyond the control of Flower One Holdings Inc., that may cause actual results to differ materially from a conclusion, forecast or projection in such forward-looking statements. Flower One Holdings Inc. believes that the expectations reflected in those forward-looking statements are reasonable at the time made but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in, or incorporated by reference into, this presentation should not be unduly relied upon. These statements speak only as of the date of such information, as the case may be, and may be superseded by subsequent events. Flower One Holdings Inc. does not intend, and does not assume any obligation, to update these forward-looking statements whether as a result of information, future events or otherwise. 2
  3. 3. CSE:FONE | OTCQB:FLOOF 3 Flower One is sharply focused on quickly becoming the leading cannabis cultivator, producer & innovator in the highly lucrative Nevada market.
  4. 4. CSE:FONE | OTCQB:FLOOF c 4 Currently converting the largest greenhouse facility in Nevada to prepare for large-scale hydroponic cannabis cultivation, processing, production and high volume packaging. Targeted completion of 400,000 sq/ft cultivation facility in Q1 2019 and 55,000 sq/ft production facility in early Q2 2019. The largest commercial greenhouse in Nevada
  5. 5. CSE:FONE | OTCQB:FLOOF c Becoming a leading cultivator & processor 5 140,000 lbs • 2 medical licenses and 2 recreational licenses for cultivation and production from the State of Nevada • Additional 5 licenses upon closing of the acquisition of NLV Organics Inc. • Submitted retail license applications in September annual cultivation capacity via 400,000 sq/ft greenhouse facility
  6. 6. CSE:FONE | OTCQB:FLOOF c Becoming a leading cultivator & processor 6 420,000 lbs Annual production capacity includes: • 20,000 litres of distillate • 50,000 litres of concentrates • 60,000 lbs of wax • 12,000,000 auto-fill packages • 61,000,000 pre-rolls annual processing capacity through CO2, ethanol and butane extraction via 55,000 sq/ft production facility
  7. 7. CSE:FONE | OTCQB:FLOOF Becoming a leading cultivator & processor 7 Products will include: • Bulk flower & trim • Flower (jars & pouches) • Pre-rolls • CBD oil • Rick Simpson oil • Vape pens • Shatter • Dab • Live resin • Topicals • Edibles • Soft gel caps • Drink mixes
  8. 8. CSE:FONE | OTCQB:FLOOF 8 Ken Villazor President & Chief Executive Officer 20+ years corporate affairs experience Held numerous senior positions with large pharmaceutical companies, working extensively in government regulated aspects of commercial operations Served as an Alternate Governor and advisor to a National Hockey League franchise Leadership team Geoff Miachika Chief Financial Officer CPA with 10 years of experience in finance and accounting Formerly Senior Manager with with one of the big 4 accounting firms in Vancouver where he primarily served Canadian and U.S. public companies in audit, accounting advisory and securities engagements
  9. 9. CSE:FONE | OTCQB:FLOOF Advisory team 9 Anthony MartinJohn NewellSteven Newell 35 years of financial management, experience in commercial greenhouse operations as CFO since 2008. Former CFO, COO and President of one of Canada’s Top 100 TSX listed issuers; President and COO of the largest service provider of banking solutions to financial institutions & ATM networks. Extensive knowledge of Canadian and US taxation, accounting, financial reporting, capital markets, debt markets, corporate governance and operations. Extensive experience in sales & marketing, general management of greenhouse ops., third party grower relationships, and sourcing of bought in product. 30 years of agricultural experience; the last 20 years working in all areas of commercial greenhouse operations. Majored in microbiology at University of British Columbia. Extensive experience in site selection, designing, permitting, planning and building large scale commercial greenhouses and related processing and packaging facilities. 30 years of agricultural experience; the last 20 years working in all areas of commercial greenhouse operations. Global business network with international suppliers of technology and equipment.
  10. 10. CSE:FONE | OTCQB:FLOOF Advisory team track record 10 Built, owns and operates over 11 million square feet of commercial greenhouse operations in North America, 1,500 full time and hourly employees and produces, packages and sells over 350 million lbs of fresh produce annually.
  11. 11. CSE:FONE | OTCQB:FLOOF Advisory team 11 The Advisory team provides strategic advice and operational expertise to the Company in areas of; Operations • Production forecasting • Crop cycle management • Climate and nutrition management • Energy and CO2 management • Labor planning, scheduling, and management • Integrated pest management • Facilities management • Quality assurance Management and administrative services • Finance, accounting, taxation & corporate governance • Human resources • Information technologies Construction and project management services • Site selection and technical design • Procuring entitlements, permits and approvals • Budget and progress schedule • Construction and draw disbursements • Contract and vendor management
  12. 12. CSE:FONE | OTCQB:FLOOF c Greenhouse conversion underway 12 Greenhouse conversion • > 16,000 hours of construction work completed • ~40% of conversion completed • Cultivation Facility Targeted Completion Q1 2019 • Production Facility Targeted Completion Early Q2 2019
  13. 13. CSE:FONE | OTCQB:FLOOF c Nevada's largest cultivation & production facility 13 400,000 sq/ft 400,000 sq. ft. dedicated to cultivation 55,000 sq. ft production facility dedicated to processing and packaging 40,000sq/ft Sustainable cannabis at scale
  14. 14. CSE:FONE | OTCQB:FLOOF Capital structure 14 All figures in Canadian dollars Pre-financing shares 140,804,200 Equity financing – round 2 31,388,079 Total shares 172,192,279 Stock option pool 12,290,000 2nd round equity financing price per share C$2.00 Net proceeds to fund greenhouse acquisition, state-approved licenses, facility conversion & general working capital ~60% of current issued & outstanding shares held by insiders Single class common shares and options (no warrants or preferred shares)
  15. 15. CSE:FONE | OTCQB:FLOOF Why Nevada? 15 289.8 624.4 670.7 708.1 745.9 772.3 2017 2018 2019 2020 2021 2022 IN NEVADA 55 $68 Million annual visitors Average amount spent per transaction Source: 2017 Frontier Financial Group Inc. Adult Use Medical Use Nevada’s legal cannabis market (US$ in Millions)
  16. 16. CSE:FONE | OTCQB:FLOOF c A leading cannabis market 16 Established legal market • No limits on cultivation or production for license holders • Gold standard regulatory framework • Approximately 280 licenses across entire value chain • Legal since 2000 Recreational upside • Legalized for adult-use on July 1, 2017 • 55M+ visitors to Nevada(2017) • 3M population • Strong, stable pricing • 62 dispensaries today – expected to double in 2019
  17. 17. CSE:FONE | OTCQB:FLOOF 27.0 33.0 27.7 37.9 33.4 35.8 32.8 35.4 49.5 47.5 47.9 48.4 July August September October November December January February March April May June Fast growing recreational market (US$ in millions) 17 Since Nevada legalized marijuana for recreational use on July 1, 2017, the State has reported a strong pace of monthly sales Source: State of Nevada, Department of Taxation
  18. 18. CSE:FONE | OTCQB:FLOOF $2,145 $2,268 $2,799 $631 $601 $798 7/1/2017 1/1/2018 7/1/2018 Favourable pricing environment 18 Fair market value per pound (wholesale in US$) Flower Trim Source: State of Nevada, Department of Taxation
  19. 19. CSE:FONE | OTCQB:FLOOF 19 Industry leading food and beverage design build company under exclusive contract to oversee project planning and conversion (including automation of drying, trimming, grading, processing & packaging) In the midst of single conversion of all 8 zones of the greenhouse, with ~80,000 plants growing at any one time once fully canopied Canopy targeted for Q1 2019
  20. 20. CSE:FONE | OTCQB:FLOOF Incorporation of Company (originally as CNX Holdings Inc.). Recent milestones Entered Agreement to acquire the largest commercial scale greenhouse (430,000 square feet) in Nevada. Completed a C$34.7M private placement to support conversion of Nevada greenhouse and construction of an additional 25,000 sq. ft. to enhance production & processing capacity. Received approval from the State of Nevada on the assignment of two provisional marijuana licenses (cultivation and production) to the Company’s greenhouse. Commenced greenhouse conversion. 20 Submitted applications to the State of Nevada for a recreational marijuana cultivation license and production license. Entered amalgamation Agreement with Theia Resources Ltd. (TSX-V:THH). December 2017 March 2018 April 2018 May 2018 June 2018
  21. 21. CSE:FONE | OTCQB:FLOOF Received approval of its medical marijuana cultivation licenses and medical production cultivation license from the State of Nevada. Recent milestones Company’s Shareholders approved reverse takeover transaction with Theia Resources Ltd. Completed transaction to fully acquire the Nevada greenhouse. . Completed C$57.4M private placement financing, bringing the Company’s total private equity financing to C$92.1M. Completed reverse takeover transaction to Theia Resource Ltd. Received approval of recreational cannabis cultivation licenses and recreational production cultivation license from the State of Nevada. Entered a Genetics and Plant Supply Agreement with NLV Organics Inc. Entered definitive agreements for the acquisition of NLV Organics Inc. business assets including 5 additional licenses. Commences trading on the Canadian Securities Exchange under ticker symbol FONE. 21 July 2018 August 2018 September 2018 October 2018
  22. 22. CSE:FONE | OTCQB:FLOOF Turnkey large-scale cultivation & processing Master, senior and assistant growers; integrated pest management; packaging & automation 22 Ability to draw upon a pool of crop/product handling personnel specially trained for the requirements of our facility Extensive network of the best greenhouse industry suppliers Targeted completion of greenhouse conversion and commencement of operations Q1 2019
  23. 23. CSE:FONE | OTCQB:FLOOF c Agreement to acquire Nevada-based NLVO 23 Acquired NLVO assets • 25,000 sq/ft state-of-the-art licensed indoor cultivation and production facility, currently at full operational status • Additional 5 licenses • Established product line • Extensive retail reach • Selling to 30+ dispensaries • Local leadership / management Immediate access to 50+ strains and accelerates greenhouse cultivation plan by supplying genetics and initial cuttings to rapidly canopy greenhouse Photo from NLVO facility
  24. 24. CSE:FONE | OTCQB:FLOOF c Agreement to acquire Nevada-based NLVO 24 Oils and extracts • Topicals • Concentrates • Reloadable & disposable vape cartridges • Ideal for 4-day average visit to Las Vegas • Pure strain & premium flavors Flower product line • Packaged flower in a variety of sizes • Pre-rolls Photo from NLVO facility
  25. 25. CSE:FONE | OTCQB:FLOOF Key statistics 25 US$ Estimated annual cultivation of greenhouse facility State published fair market value wholesale price* Triple A Flower 100,000 lbs $2,799/lb Trim 30,000 lbs $798/lb Small Bud 10,000 lbs $2,227/lb *as at July 2018
  26. 26. CSE:FONE | OTCQB:FLOOF 26 Highlights 1. Will be the largest cultivator & producer in Nevada 2. Licenses for medical and recreational cultivation & production 3. Experienced greenhouse operators with a track record of profitable growth 4. Targeting Q1 2019 for being canopied
  27. 27. CSE:FONE | OTCQB:FLOOF Ken Villazor President Toronto, ON E: kvillazor@flowerone.com Geoff Miachika Chief Financial Officer Vancouver, B.C. E: gmiachika@flowerone.com Media & Investor Inquiries NATIONAL Equicom Toronto, ON T: 416-848-9835 E: ir@flowerone.com 27 Sharply focused on executional highs CSE: FONE OTCQB: FLOOF

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