#1isracann BIOSCIENCES CSE: IPOT Israel's First Pure- Play Cannabis Firm Corporate Presentation#22 Legal isracann BIOSCIENCES Information contained in this presentation is the property of Isracann Biosciences Inc. (Isracann or the "Company"). This presentation does not constitute, or form part of, any offer or invitation to sell or issue, or any solicitation of any offer to subscribe for or purchase any securities in the Company, nor shall it, or the fact of its communication, form the basis of, or be relied upon in connection with, or act as any inducement to enter into, any contract or commitment whatsoever with respect to such securities. The communication of this presentation in or to persons in certain jurisdictions may be restricted by law and persons who may receive communication of this presentation should inform themselves about, and observe, any such restrictions in advance of communication to them of this presentation. No securities exchange or affiliated service provider has reviewed or accepts responsibility for the adequacy or accuracy of the content of this presentation. The material contained in this presentation is provided solely for your general knowledge and is not intended to be a comprehensive review of all matters and developments concerning Isracann or its affiliates. The Company has taken all reasonable care in producing the information contained in this presentation. This information may contain technical or other inaccuracies, omissions, or typographical errors, for which Isracann assumes no responsibility. Isracann makes no representation or warranty regarding, and assumes no responsibility for, the use, validity, accuracy, completeness, reliability or currency of any claims, statements or information in this presentation. To the extent permitted by law, Isracann and its employees, agents, affiliates and consultants exclude all liability for any loss or damage arising from the use of, or reliance on, any such information, whether or not caused by any negligent act or omission. Statements in this presentation other than purely historical information, including statements relating to Isracann's future plans, objectives or expected results, constitute forward-looking statements within the meaning of the U.S. federal and Canadian securities laws. Forward-looking statements are based on numerous assumptions and are subject to the risks and uncertainties inherent in Isracann's business, including risks inherent in early to development stage start-up ventures. These may include the state of the legal cannabis agri-sector, global market conditions, the ability of the Company to identify and acquire key assets, the nature of potential business acquisitions, capital expenditures, successful development of technologies, currency fluctuations, government policy and regulation, geopolitical uncertainty and environmental regulation. As a result, actual results may vary materially from those described in the forward-looking statements. Isracann disclaims any obligation to update any forward-looking statements. This presentation was prepared to assist interested parties in making their own assessment of Isracann and its business plans and does not purport to contain all of the information that a prospective investor may desire. In all cases, interested parties should conduct their own investigation and analysis of the Company, its assets and the information provided in this presentation. Any and all statements, forecasts, projections and estimates contained in this presentation are based on management's current knowledge and no representation or warranty is made as to their accuracy and/or reliability. isracann BIOSCIENCES#33 About isracann Israel's First Pure-Play Cannabis Firm Isracann, Israel's first pure-play cannabis firm, is focused on becoming a premier, low-cost cannabis producer. Isracann has a joint venture agreement in place with a built 55,000 sq ft farm, which is expandable to 160,000 sq ft in the near term and has access to over 2,000,000 sq ft of private land. The company is targeting undersupplied domestic demand combined with an immense international market opportunity through Israel's new medical cannabis export framework for 2020. Located in the cannabis research capital of the world, Isracann has relationships with the research, scientific and medical community to identify opportunities and develop a pipeline of drugs and devices. The company is targeting an undersupplied domestic market and anticipates near-term expansion to major European marketplaces. isracann BIOSCIENCES#44 The Opportunity in Israel Optimal climatic conditions to grow medical cannabis Ideal Humidity Safeguarding the plant from insects and enabling optimal growth. Optimal Temperature Reduces energy in winter and summer, saving considerable production costs. Approx. 300 days of Sun per Year Optimal sun exposure leads to further reduced production costs. High UV rays Vital for effective growth of cannabis and high yields. Conditions allowing for low production costs estimated at approximately one third of the cost of growing in colder climates such as Canada or Europe. Multiple growing cycles of the cannabis plant and allows for high production per square foot over other countries. isracann BIOSCIENCES#55 Israeli Market Haifa Tel Aviv Jerusalem Israel Dead Sea Optimal climate for growing conditions will allow Isracann to be a low-cost producer serving the domestic market 10,000 patients on waitlist for medical cannabis due to supply constraints ↑ Number of medical cannabis patients doubles in under 2 years (topping 70,000) despite persistent supply & regulatory challenges. - Israeli Medical Cannabis Agency (IMCA) Israel indicates they will open the recreational cannabis market in 2021. Government studies show that as many as 27% of Israelis (aged of 18 to 65) consumed cannabis in the last year - the highest cannabis use per capita in the world History of cannabis innovation and research with THC and CBD cannabinoid structure discovered at Hebrew University of Jerusalem 000 Access to top researchers in the field provides valuable strategic data for the development of formulations and cannabinoid profiles isracann BIOSCIENCES#66 Israel's Regulatory Overview Israeli government granted export approvals in Q2, 2020 In 2007 Israel became the first country to allow medical research and cannabis cultivation. Now its the 3rd country in the world to allow exports. Cannabis is legal for medical purposes in Israel & decriminalized for recreational use. Patients purchase directly from pharmacies. Isracann's focus is on the acquisition of nursery, cultivation and manufacturing licenses. If successful, this strategy will allow Isracann to control the value chain and maximize value to its shareholders. Exports now legal with licenses being granted under trial basis 6 types of licenses Nursery Cultivation Manufacture Distribution Pharmacy Scientific research ישרא isracann BIOSCIENCES#7European Market Israel approved framework for exports of medical cannabis in January 2019 which positions it as the third country behind Canada and Netherlands able to export medical cannabis. Medical cannabis already available in 10 European countries. Europe population over 740 million, double USA and Canada -the two largest cannabis markets today. EU medical market estimated to be $64B USD by 2028. Initial entry point to be Germany, a medical market potentially larger than the rest of Europe combined. Largely decriminalized Medical use by exception Generic medical use Illegal isracann BIOSCIENCES#88 Business Model: Factors For Success Agricultural and Manufacturing Excellence Drive Industrial Scale Capability Cultivation 。 Architectural design reviewed by Security consultant and Best Practices consultant. o Designs submission to Israeli Land Authority. 。 Application submission to use land as a joint venture. o Land inspection by the Israeli Land Authority. 。 Specific Genetics offtake program designed to provide highest quality gene material within Israel. 。 EU GMP certified packing/drying facility targets highest quality product for domestic and export markets. Manufacturing 。 ISL/EU GMP Manufacturing Processes 。 Strategic LOI with Israeli manufacturer defines a clear path to in-country revenue. o Sourcing additional capacity to meet future demand. 。 Low-cost production (est. $0.40/gram). 。 IMC-GAP/GSP certified for export compliance. 。 Production layout offers excellent modularity for irrigation, electrical distribution and maintenance. o Ideal climate for industrial scale cultivation. isracann BIOSCIENCES#99 Business Model: Factors For Success Distribution to Major Markets Leverages Israeli Climatic, Cultural and Creative Excellence Distribution Branding • Israel's massive domestic undersupply drives regional demand. 。 Proximity to the EU allows efficient export under new legislation (January 2019). 。 Strategic distribution partner provides practical intermediate multinational trans-shipment entry point. o Product access to Germany, United Kingdom, Poland & Denmark. o Existing product lines provide access to domestic and export markets. o Israel is recognized worldwide as a center for excellence in agronomy, research, genetics, manufacturing and quality assurance. o Regional expertise allows for branding differentiation that resonates across the globe. o Brand positioning will focus on high quality "made in Israel Cannabis." o Israeli brand will aid positioning of new commercial formulations. o Build out of Cannabis/CBD product lines will emphasize regional attributes and quality. isracann BIOSCIENCES#10The Facility Isracann has a joint venture agreement in place with a built 55,000 sq. ft. farm, which is expandable to 160,000 sq. ft. in the near term and has access to over 2,000,000 sq. ft. of private land. 10 NAHE HERMON 9.6 CAT. NO FILE NAME CADASHI BORIS IZOMETRIA DESIGN NAME Boris OATE 05.07.17 SIGNATURE APPROVE SCALE REVISE Het to acols isracann BIOSCIENCES !!!! Low-cost producer of high-grade medical marijuana, with anticipated cost of $0.40 per gram Partnership with leading Israeli research institutions and Universities to leverage their expertise and bring novel products to market. Fully funded multi-canopy layout offers excellent modularity for irrigation, electrical distribution and maintenance. Israel's climate ideal for cannabis cultivation. Modern greenhouse canopies offer the highest quality production environment at the lowest potential cost to growers. Facility will be IMC-GAP/GSP certified, to meet all regulatory standards isracann BIOSCIENCES#11Preliminary Nursery and Cultivation Licenses Issued TIMELINE Architectural Design Complete STEP 2 Architectural Design Started STEP 4 and Submitted To Israeli Land STEP 6 Authority for Approval ISRACANN TIMELINE START |!) STEP 1 Israel Passes Export Regulations Israel Off Take Agreement STEP 12 Israel Settlement Commissioner Approval A STEP 3 Security and IMC-GAP Review STEP 11 Project Characterization Started STEP 9 ་་་ STEP 5 Israeli Land Authority Approves Greenhouse Design European Distribution Partner Signed STEP 7 </> European GMP Consultant Engaged STEP 10 STEP 14 Israeli Ministry of Health Approval Israel Land Authority Approves IsraCann to Use the Land as a Joint Venture STEP 8 Agronomic Support Added STEP 16 First Crop STEP 18 $ STEP 13 Construction Starts STEP 15 Construction Complete STEP 17 Initial Revenues میرا#1212 The Team Darryl Jones, President & CEO Mr. Jones has over 15 years of capital market experience and an established financial network. Prior to joining Isracann in 2018, Mr. Jones was an Investment advisor with PI Financial Corp Canada and Raymond James Ltd Canada. He was responsible for raising significant risk capital for growth companies in all sectors, with a particular focus on medical cannabis and natural resources. Mr. Jones took True Leaf Medicine public in early 2014 at $10MM valuation and exited in 2016 at $150MM market capitalization. Matt Chatterton, COO Mr. Chatterton brings over 15 years of experience in the design, development and execution across a variety of projects and manufacturing operations. His expertise includes project management, facility management, logistics, supply side processes and procedures at a number of international manufacturing operations in Canada, China, Bulgaria, the Philippines and now in Israel. He is a Professional Engineer and graduate of Canada's Queens University with a Master's degree in Chemical Process Engineering (2003). Nitin Kaushal, Strategic Advisor Mr. Kaushal is a managing director with PwC in the Corporate Finance Practice in Toronto 25 years experience in the healthcare industry Mr. Kaushal has participated in capital market transactions ranging from private placements, IPO's, and bought deal underwritings in excess of $2B. He has been involved in over 40 M&A, strategic advisory & licensing assignments for a range of companies from early stage biotechs to large pharmas. Previously the Managing Director of leading healthcare investment banking teams in Canada, Mr. Kaushal was also awarded "Top-gun" investment banker in Canada for healthcare industry (Brendan Wood 2008/09). He was also previously Senior Investment Manager with MDS Capital Corp. responsible for sourcing, evaluating, and negotiating investments in US/Canadian healthcare companies. Mr. Kaushal holds a CA, CF qualifications from Canadian Institute of Chartered Accountants; BSc (Chemistry) University of Toronto. Desmond Balakrishnan, Director Partner, McMillan LLP, a commercial and business law firm since January 2004 isracann BIOSCIENCES#1313 The Team Irit Arbel, Ph.D, Director Dr. Arbel serves as CEO, Co-Founder and Director of Neurocords Ltd., a company focused on developing new treatments for peripheral and spinal cord regeneration, and previously served as Director & President of Brainstorm Cell Therapeutics, and as Executive VP of R&D at Savicell Diagnostic and previously as Chairperson of Real Aesthetics (cellulite ultrasound) and BRH Medical (wound healing). Previously, Director of M&A at RFB Investment House (early stage technology-related focus). President and Chief Executive Officer of Pluristem Life Systems, and Israeli Sales Manager of Merck, Sharp & Dohme pharmaceutical. Earned her PhD in 1997 in Neurobiology, and holds a Chemical Engineering degree from the Technion, Israel's Institute of Technology Sean Bromley, Director Mr. Bromley works in corporate finance at a boutique merchant bank. A former investment advisor with experience working with public companies, he is currently a director of White Gold Resources (WGO.V) and Pacific Rim Cobalt (CSE:BOLT). Brett Allan, Advisory Board Member Mr. Allan has over 10 years of investment and capital markets experience. Mr. Allan has assisted in raising $400MM in the cannabis sector as the VP of Corporate Development for Organigram (OGI:TSXV), founding member of Emblem Health (EMC:TSXV), and founding member of The Green Organic Dutchman (TGOD:TSX). Yana Popova, CFO, Corp. Secretary & Director CFO of the Issuer since November 15, 2017; Controller at Fortuna Investment Corp. since September 2017; Accountant at Platinum Group Metals (2015-2017); Accountant at PowerOne Capital Markets Limited (2011-2014); Director and CFO of Big Sky Petroleum since 2018; director of Upper Canyon Minerals Corp. since 2018. Justin Cooper, Advisory Board Member Mr. Cooper is Co-Owner of Green Planet Wholesale, the largest privately-owned hydroponics chain in Canada. For +25 years he has built manufacturing, wholesale, & retail locations servicing some of the biggest growers in the world. Currently supplying products to over 50 licensed producers (LPs). isracann BIOSCIENCES#14Sector Comparables Capitalization FY 2021 FY 2021 Share Enterprise Company Name Ticker Price Value ($CAD) Revenue ($MM) EBITDA ($MM) Enterprise Value / Revenue ($MM) Valuation Statistics EV ($MM) / EBITDA ($MM) IMC Cannabis IMCC $2.60 403 44.0 12.0 9.2 x 33.6 x Intercure Ltd INCR.TA $378.31 174 22.5 N/A 7.7 x N/A Pharmacielo Ltd PCLO $2.07 239 65.0 43.7 3.7 x 5.5 x Khiron Life Sciences KHRN $0.36 39 34.0 N/A 1.2 x N/A Avicanna AVCN $1.12 32 14.0 N/A 2.3 x N/A 14 Average 288.3 35.9 27.8 4.8 x 19.5 x Isracann Biosciences 0.27 32.9 21.2 2.4 Implied Valuation (As of January 12, 2021) SA 1.5 x 13.7 x 101.7 46.8 isracann BIOSCIENCES#15isracann BIOSCIENCES Thank You Isracann Biosciences Inc. 1600-595 Burrard Street Vancouver, BC V7X 1L3 Canada Invictus Investor Relations +Toll Free: +1 855.205.0226 Email: [email protected] www.isracann.com CSE: IPOT