#1O IONIC BRANDS A PREMIUM PORTFOLIO OF CANNABIS CONCENTRATE CONSUMER BRANDS INVESTOR PRESENTATION | SPRING 2019#2DISCLAIMER DISCLAIMER: This presentation has been prepared by IONIC ("IONIC" or the "Company"). It does not purport to contain all the information that a prospective investor may require in connection with any potential investment in the Company. You should not treat the contents of this presentation, or any information provided in connection with it, as financial advice, financial product advice or advice relating to legal, taxation or investment matters. This presentation does not include all available information in relation to the business, operations, affairs, financial position or prospects of the Company. 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INVESTOR PRESENTATION | 2#3O IONIC BRANDS EXTRACTING VALUE A PREMIUM PORTFOLIO OF CANNABIS CONCENTRATE CONSUMER CONSUMER BRANDS ΤΗΕ FOUR PILLARS REFINED STRATEGY ICONIC BRANDS CLEAN EXECUTION INVESTOR PRESENTATION | 3#4O IONIC BRANDS "IONIC: An attractive vape popular in Washington, IONIC FOCUSES ON POTENCY AND PURITY." URBANDADDY "Nobody smokes marijuana anymore. EVERYONE'S VAPING IT." The New York Times INVESTOR PRESENTATION | 4#5O IONICBRANDS BUILDING CONSUMER FOCUSED MULTI-STATE CANNABIS CONCENTRATE BRAND PORTFOLIO A onia Ionia Ionia Ionic SN-TONIC VAPORIZER PEN SOCIAL HYSE -TONIE VAPORIZER PEN 350-110NIE VAPORIZER PEN 7771 TIO SIRVNNVO ORRY NA SINGLE-USE VAPORIZER PEN SOCIAL INVESTOR PRESENTATION | 5#6O Experienced and proven Luxury Cannabis Concentrates brand HIGHLIGHTS IONIC BRANDS Largest standalone oil manufacturer in the state of Washington Offers investors exposure to a premium luxury cannabis brand The #1 vape brand in WA state with a loyal customer base Consistent sales growth over three years with a verified marketing blueprint Demonstrated to have winning a formula to become the top vape company in WA Massive growth opportunity available with expansion into OR and CA INVESTOR PRESENTATION | 6#7O ● PROBLEM IN AN INDUSTRY WITHOUT HISTORIC ESTABLISHED BRANDS IN A FRAGMENTED MARKET, consumers are looking for brands that they can TRUST. Small regional companies are ill-equipped to build a national product presence for consumers. CONCENTRATES: The Hottest Product Category In Cannabis¹ "Branding is crucial to build consumer trust in a company/or product" "...a lack of consistency in product types and categories from market to market is confusing at the customer level" 'Cannabis Intelligence Briefing - Published by Arcview Research in Partnership with BDS Analytics) INVESTOR PRESENTATION | 7#8O WHY NOW? MARKET DEMAND/GROWTH • Concentrates are the fastest growing segment of the legal marijuana industry. IONIC Brands is building a multi-state premium cannabis portfolio of trusted national brands for consumers CONSUMER NEED ● • Consumers are looking for trustworthy, brand products in this new market. IONIC is the #1 Brand in Washington state and has expanded into other markets. MULTI-STATE OF PLAY ● • Small regional brands are incapable of scaling to operate at a multi-state level. IONIC Brands has a proven ability to operate in multiple states. INVESTOR PRESENTATION | 8#9MARKET DEMAND/GROWTH RETAIL CONSUMER APPEAL IS PROPELLING CONCENTRATES TOWARD AN ESTIMATED $8 BILLION IN RETAIL SALES BY 2022¹, OUTPACING GROWTH IN TRADITIONAL FLOWER SALES Shatter All Other* Wax Oils Live Resin Vape 2016 vs 2017 % Growth by Product Subcategory: CO, WA, OR 19 43 0% 10% 20% 30% 40% 50% *All other includes: Bubble Hash, Crystalline, Hash, Kief and Rosin 'Cannabis Intelligence Briefing - Published by Arcview Research in Partnership with BDS Analytics) 93% Vape sales growth in 2017 67 93 60% 70% 80% 90% 100% Source: BDS Analytics' GreenEdge North American Edibles Spending (in Billions) Edibles $5.0 $4.5 $4.0 $3.5 $3.0 $2.5 $2.0 $1.5 $1.0 $0.5 $0.0 $1.0 2017 $4.1 Billion Forecased growth by 2022 $1.5 2018 Source: Cannabis Intelligence Briefing $2.2 2019 $2.8 2020 $3.5 2021 FORECAST $4.1 2022 *** *** ... INVESTOR PRESENTATION | 9#10CONSUMER NEED MASSIVE GROWTH OF SMALL REGIONAL BRANDS, BUT NO REAL MULTI-STATE MARKET WINNER YET BRANDING HAS BECOME AN IMPORTANT PART OF THE CANNABIS LANDSCAPE "For a long time, there were no marijuana brands. Cannabis growers spent so much time trying to conceal their identity from law enforcement and potential thieves that it simply made no sense to create distinctive packaging that would make it easier to track their product... More than a decade later, widespread legalization has led to an explosion in cannabis brands." Rolling Stone Colorado - Number of Branded Products on the Market 25k 20k 15k 10k 5k O 4.1k 2014 9.0k 2015 14.4k 2016 19.9k 2017 25.5k 2018 Source: BDS Analytics' GreenEdge INVESTOR PRESENTATION 10#11O HIGHLIGHTS CREATE A MULTI-STATE, CONSUMER FOCUSED, PREMIUM CANNABIS PORTFOLIO CONSISTING OF ICONIC NATIONAL BRANDS ICONIC BRANDS BY A WORLD CLASS TEAM • Pure Products driven by IP ● Portfolio Acquisitions in-line with strategy PROVEN, REPEATABLE STRATEGY • #1 Concentrates Company in ● Washington state • Repeated in OR and CA ● • Exponential growth PERFECT POTENTIAL A proven and successful company in the fastest growing segment Stylish and sophisticated products ● ● Strategy, product and brand positioned for maximum impact INVESTOR PRESENTATION | 11#12O SMALL BATCH LUXURY CANNABIS OILS IONIC is passionate about crafting the finest small batch cannabis oils and cannabis concentrates in the world. IONIC is an award-winning vape brand in Washington state. Elevate your cannabis experience. Ionia CANNABIS OIL VAPORIZER PEN 50-31ONIS HYBRID BLACK A CURATED EXPERIENCE This premium twice- refined cannabis oil highlight our signature flavor and aroma. ionic 110 SIRVNNV- VAPORIZER PEN SOCIAL HYBRID PURE FOR THE PURIST This triple-refined cannabis oil contains a higher concentrate and delivers a more potent, whole-plant experience. Always refined without Glycols, Glycerins or Additives. ionic SANNARIE DIE VARORIZER REN TRENTUNE SOCIAL HYBRID WHITE FOR THE CONNOISSEUR This boutique extracted, triple-distilled cannabis distillate offers the most potent cannabis experience with a clean, crisp finish. INVESTOR PRESENTATION | 12#13O Ionia CANNABIS OIL 350-BTNIS VAPORIZER PEN SOCIAL 0 HYBRID IONIC IONIC BLACK "THIS FLAGSHIP PRODUCT is available in vaporizer cartridges (both half-gram and full gram) and single-use vaporizer pens. TRIPLE-REFINED CANNABIS OIL CONTAINS A HIGHER CONCENTRATE AND DELIVERS A MORE POTENT EXPERIENCE." mg mgretailer.com INVESTOR PRESENTATION | 13#14REVENUE LAUNCHED IN 2015, IONIC PREMIUM VAPE PENS IS ITS FLAGSHIP RECREATIONAL BRANDED PRODUCT AND FINISHED 2018 WITH $9.9M USD IN SALES WASHINGTON, OREGON, AND CALIFORNIA ESTABLISHED 2015 • An experienced and proven Luxury Cannabis Concentrates Brand. ● ● ● The #1 Vape Brand in Washington state with a loyal customer base. Operational expertise gleaned from 7-years of hands on experience building company Largest standalone oil manufacturer in the state of WA. Consistent sales growth over three years. Revenue ($USD) $10M $8M $6M $4M $2M IONIC Vape Pen Sales 2016-2018 ($USD) $9.9M USD 110% 3-Year CAGR Without Raising Outside Capital Until Q4 2018 $2,328,321 Total Stores Captured = 65 Active Sotre Count = 46 Active Growth Rate = 71% 2016 $4,743,878 Total Stores Captured = 132 Active Sotre Count = 97 Active Growth Rate = 74% 2017 ................ WA Sales = $9.3M OR Sales = $0.5M CA Sales = $0.1M 2018 INVESTOR PRESENTATION | 14#15EXPERTISE With a focus on Quality, Responsibility and Respectability, IONIC's product lines continue to pioneer the changing landscape landscape of cannabis consumption. Its refinement practices are a result of a passionate commitment to creating the very best concentrates on the market. IC STRATEGY AND EXPERIENCE EXECUTION IONIC, at its core is an oil company, with a focus on Vape. Immediate Product Line Expansion plans include THC/ CBD mixes, Low-Dose Products, High-End Edibles, CASK Oil and Device Innovation. EXPERIENCE With a powerful sales organization, an innovative product team, and a world-class marketing group, IONIC's strategy is to repeat their success in each new market. Leveraging invaluable experience gained over the last 7 years in Washington state, where it has grown to become the #1 Vape Brand in the most competitive market in the U.S. INVESTOR PRESENTATION | 15#16OWN THE WEST-WIN WIN THE REST IONIC BRANDS' STRATEGY IS TO OWN THE HIGHEST-VALUE SEGMENTS OF THE SUPPLY CHAIN IN WEST COAST MARKETS AND EXPAND QUICKLY EASTWARDS VIA ACQUISITIONS HOW TO OWN YOUR SUPPLY CHAIN ● CULTIVATE CANNABIS OUTDOORS for less than $0.10/gram on an 140-acre Eastern Washington Farm to use as input product for the oil EXTRACT AND REFINE the best cannabis oil in the market using ultra-clean CO2 extraction and 7-years operational experience in refining proprietary formulations PATENT-PROTECTED HARDWARE to provide consumers with unparalleled vaporization experience. The best oil deserves the best hardware. DISTRIBUTION & SALES techniques learned from the alcohol industry and from 7-years of competing against 91 direct competitors in WA state. Customer service starts here. Through MedMen dispensaries, IONIC distributes Zoots Edibles in the following states: • Colorado - 80 stores ● Illinois - 3 stores Massachusetts (Q2 2019) • New York (Q3 2019) Pennsylvania (Q3 2019) INDIRECT SALES ● ● It plans to piggy-back these contracts to launch other brands/products in these states and more by the end of 2019. INVESTOR PRESENTATION | 16#17O MULTI-STATE OF PLAY WASHINGTON Currently available in 128 stores in Washington state. Including 80% of Top-Tier Stores. OREGON Targeting to be in 225 stores by January 2020. (Total of 460 stores are open in Oregon as of July 2018). CALIFORNIA Targeting to be in 318 stores in California by January 2020 Total of 470 legal stores are open in California (as of July 2018). Products on the shelves in California starting in August 2018. WASHINGTON Accounts Sold 135 OREGON Accounts Sold 102 NEVADA CALIFORNIA Accounts Sold 30 ARIZONA FUTURE DEVELOPMENTS NEW YORK COLORADO MASS. FLORIDA INVESTOR PRESENTATION | 17#18AT A GLANCE IN 2012, IONIC OPENED ITS DOORS AS A FAMILY-RUN BUSINESS SELLING DISPOSABLE VAPE PENS IN WASHINGTON STATE'S MEDICAL MARKET. IN 2019, ITS PORTFOLIO OF BRANDS HAS SALES IN 6 STATES AND IS POISED TO DO $46M+ USD IN SALES 3 ELITE BRAND PORTFOLIO : Ionic ZOOTS VUBER VERTICAL-INTEGRATION 140-Acre Farm Capable of growing up to 100,000 lbs of cannabis for < than $0.10/gram CO2 Extraction for the Cleanest, Highest- Quality Oil since 2012 Vuber Technologies hardware for the best vaporization experience on the Market Distribution of product to 337 stores in WA with plans to do same in OR & NV VEGAS STICK ¹Direct Sales in WA, OR, NV. Indirect sales in CA, CO, MA. 2Owners of licenses in WA, OR and NV that include cultivation, processing, and distribution. ³Revenue from IONIC Vape Pens, Zoots Edibles, Vuber Hardware, Vegas M Sticks BY THE NUMBERS 6 States IONIC brands have sales in¹ 11 Cannabis licenses owned in 3 states² 685 Stores that carry IONIC brands $34M+ Organically-generated sales since 2015-20183 REVENUE GROWTH PORTFOLIO REVENUE 3 $19M USD 2018 $46M USD 2019 INVESTOR PRESENTATION | 18#19SCALING NATIONALLY AFTER 7 YEARS IN WASHINGTON STATE'S MEDICAL AND RECREATIONAL MARKET, THE IONIC TEAM IS TAKING IONIC ACROSS THE UNITED STATES • IONIC BRANDS offers investors exposure to a portfolio of luxury brands including IONIC vaporizer pens, Zoots Edibles, Vuber Technologies, and Vegas M Sticks Vaporizer Pens • The IONIC team has proven that they have the winning formula to dominate by building lonic to become the top vape company in Washington state, widely considered the most. competitive recreational state • Massive growth opportunity available via recent expansion into Oregon, Nevada and California and application of a proven sales and marketing formula in these massive markets • Management has an aggressive growth strategy via expansion and acquisition. 5 acquisitions are ready to close in Q2 2019, offering significant Top-Line Revenue and EBITDA growth, along with expansion into new markets including Nevada, Massachusetts and Illinois • Diversification of products and product segments, growing from a vape pen company to being vertically-integrated with acquisitions of a local grow in Washington, a leading edibles company, and leading hardware business IONIC BRANDS :lonic ZOOTS VUBER VEGAS STICK INVESTOR PRESENTATION | 19#20● TRANSFORMATIONAL M & A DEALS IONIC HAS 5 TRANSFORMATIONAL ACQUISITIONS THAT ARE IN THE CLOSING STAGE THAT COMBINED WILL ADD $30M+ TO OUR 2019 E REVENUE ZOOTS Description: WA-Based Edibles company Purchase Price: $11.0M USD composed of $600K Cash & $10.4M stock • Status: $600K cash paid and operational integration underway. Deal closes in April 2019. $7.5M USD 2019E SALES WW AGRICULTURE Description: Eastern Washington cultivation farm • Purchase Price: $2.75M USD composed of $2M Cash & $750K stock ● Status: $500K cash paid, equipment transferred, integration complete. Deal closes in May 2019. $1.0M ADDITIONAL 2019E EBITDA ● ● ● Description: Nevada manufacturing license & operating vape pen business. Purchase Price: $21.15M CAD in stock and $1.65M CAD cash Status: Transaction to close in April 2019. $6.6M USD 2019E NEVADA ● VUBER Description: Hardware company Purchase Price: Up to $12.5M USD composed of $2.5M cash & $10M in stock • Status: Signed LOI with $100K working capital cash paid. Deal closes in April 2019. $10M USD 2019E VUBER SALES ● ● ● Description: Licensed CA manufacturing facility Purchase Price: $2.9M USD composed of half stock and half cash Status: LOI signed and working on Definitive Agreement. Expected close May 2019. $8.5M 2019E CA SALES INVESTOR PRESENTATION 20#21O IONIC CORPORATE STRUCTURE IONIC BRANDS WASHINGTON VEGAS ORGEON : Ionic ● IONIC ZOOTS ZOOTS MSTICK VEGAS STICK M CALIFORNIA IONIC : Ionic® ZOOTS ZOOTS MSTICK O VEGAS IS MST STICK HARDWARE VUBER NEVADA VEGAS ¹IONIC WA is a separate company from Blacklist. Blacklist has an Irrevocable Purchase Agreement with IONIC, and upon Federal Legalization will be a 100% wholly-own subsidiary. 2 LOI signed and in place, with deals at various stages in the acquisition process. All deals have some cash or other assets paid, and will be closed in Q2 2019. INVESTOR PRESENTATION | 21#22O CANNABIS TRADING COMPARABLES CANNABIS COMPANIES Planet 13 Mjardin DionyMed Brands TILT Holdings 1933 Industries CLS Holdings USA KushCo Holdings Charlotte's Web AVERAGE OF U.S. COMPANIES 11. Share Prices as of April 9, 2019 Ticker PLTH MJAR DYME TILT TGIF GLSH.U KSHB CWEB Share Price¹ $1.80 $3.60 $3.54 $2.79 $0.54 $0.37 $5.65 $21.71 Market Cap $211 $267 $310 $1,220 $125 $96 $589 $2,313 EV / EBITDA 2019E 7.3x 4.6x 8.4x 6.2x 28.9x 4.0x 904.3x 30.0x 18.6x 2020E 4.7x 2.8x 4.4x 2.9x 10.9x 1.4x 20.6x 15.6x 9.5x EV / REVENUE 2019E 1.7x 2.2x 1.3x 2.0x 4.0x 1.3x 3.1x 10.6x 6.1x 2020E 1.2x 1.4x 0.9x 1.1x 2.9x 0.5x 2.0x 5.3x 2.8x INVESTOR PRESENTATION | 22#23O JOHN P. GORST Chairman and CEO Built, led, and sold four different technology companies with market values up to $ 600 million. He has raised a total of $30 million for his past businesses, and is the largest early investor in IONIC. John has been at the helm throughout IONIC's founding and expansion to into Washington's leading vaporizer company. MANAGEMENT 大 ANDREW SCHELL Vice-Chairman President and CSO Prior to being a Co-Founder of IONIC, Andrew built several successful companies. He founded and was the CEO of a Department of Defense Company that specialized in Military Operations. Expanded into Washington, Oregon, California, Alaska and Hawaii over the course of 14 years. Had over 250 Employees and bid/awarded over 500 Million in contracts, and sold it in 2014. Has an Engineering background rounded in operations, strategy and contract law. He has a passion for M&A Negotiations and Business Strategies. CHRISTIAN STRUZAN Co-Founder and CMO Over 30 years of experience in marketing and branding in the entertainment and consumer goods industries. Founded an ad agency which executed marketing campaigns for many feature films including: the Star Wars franchise, Sideways and television series American Idol, as well as working such global brands as Guinness, Stella Artois and Beck's. Expertise in electronic, mobile, and print media advertising. He was responsible for designing the poster for the 80th Academy Awards. JOHNNY STANGE Chief Revenue Officer Prior to joining IONIC, Johnny was director of sales for the Southern California region for Treasury Wine Estates, a major wine wholesaler, where he was directly responsible for growing and overseeing annual sales of $250 million. He also held sales and management positions for Southern Wine & Spirits and was responsible for growing and developing markets in south Florida and California markets (the largest in the U.S.). Since joining lonic, sales have increased another 40% in less than 18-months. INVESTOR PRESENTATION | 23#24O BRYAN J. SALAS EVP of Sales & General Manager Mr. Salas first co-founded the company in 2012 with a vision into the future. He took the role of Vice President of Sales from 2012-2017 leading the company to become one of the top selling vaporizer brands sold in the State of Washington. Throughout these years, Mr. Salas was critical in supporting the functions of IONIC's supply chain, product development, marketing, human resources and technology. MANAGEMENT ……. SCOTT M. MANSON CFO and General Counsel Scott is both a CPA and an Attorney. Mr. Manson is presently a Managing Member of Greyzdorf LLC, a real estate investment firm. Mr. Manson is also an advisor and has also served on the Board of Sprizzi Drink, a start-up manufacturer and distributor of beverage dispensing machines. Prior to Blacklist Mr. Manson, has been CFO of numerous public and private companies and has consulted for two cannabis companies. Mr. Manson received his J.D. from Hofstra University School of Law. ZACH W. BELL, Ph.D. Chief Science Officer Zach obtained his Ph.D. with Prof. David F. Clayton, Ph.D. at Queen Mary, University of London, investigating experience-dependent cortical gene regulation. Before his Ph.D., he received research training at Mount Sinai Hospital (New York, NY), Columbia University (New York, NY), and the University of Memphis. Zach brings a decade of research and project management experience, and his research findings have been published and presented around the world. DAN DEVLIN Co-Founder Zoots and COO Prior to joining Blacklist, Dan Devlin was a co-founder of Db3 Incorporated, a licensed cannabis company in Washington State and Cofounder of Natural Extractions Inc, the licensing and marketing arm of Zoots. Mr. Devlin brings more than 40 years of experience in business management, finance and market development largely in the consumer products, manufacturing and telecommunications sectors. Dan is a graduate from Harvard Business School. INVESTOR PRESENTATION | 24#25O CAP TABLE CURRENT OUTSTANDING 108,436,716 WARRANTS 2,726,580 @ $0.54 CASH POSITION $3.5 Million April 2, 2019 ISSUED & OUT 118,163,296 INVESTOR PRESENTATION | 25#26O C O N TАСТ SKANDERBEG CAPITAL Mario Vetro Partner- Skanderbeg Capital Advisors O: 604 687 7130 x200 C: 778 846 9970 [email protected] 488 1090 W. Georgia Street Vancouver, BC, Canada V6E 3V7 - INVESTOR PRESENTATION | 26