Preview
FILED: NEW YORK COUNTY CLERK 01/11/2022 02:12 PM INDEX NO. 652343/2018
NYSCEF DOC. NO. 520 RECEIVED NYSCEF: 12/02/2022
EXHIBIT 38
March 31, 2018 email from Liberty's CEO speculating
that Fiorello had an agreement with either Acreage or
Cresco
Index No. 652343/2018
FILED: NEW YORK COUNTY CLERK 01/11/2022 02:12 PM INDEX NO. 652343/2018
NYSCEF DOC. NO. 520 RECEIVED NYSCEF: 12/02/2022
From: George Scorsis
Sent: Saturday, March 31, 2018 2:25 PM
To: andy@delavaco.com; reneg@aphria.com
Subject: Fp Deck/Information NYC
Attachments: Fp Management Presentation_January 2018_v1.pdf; ATT00001.htm; Dispensary
Locations.pdf; ATT00002.htm; NY Registered Organizations.xisx; ATT00003.htm
Andy,
As per our discussion today. This is the group that is out of exclusivity and gets bound on Monday again by
another group. My instinct is telling me it was either the Murph or Cresco.
I think we can take this for 25 MM.
NYC is going to be a monster and has a limited license profile with chronic pain just being approved.
Thanks
George Scorsis
M: 416.721.9220
Exhibit 17
Witness:RENE GULLIVER
Date: 9/24/20
Court
Reporter:
DINAMANCILLAS
CONF I DENT IAL LHS00000057
FILED: NEW YORK COUNTY CLERK 01/11/2022 02:12 PM INDEX NO. 652343/2018
NYSCEF DOC. NO. 520 RECEIVED NYSCEF: 12/02/2022
PHARMA E j TI C I 8
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FILED: NEW YORK COUNTY CLERK 01/11/2022 02:12 PM INDEX NO. 652343/2018
NYSCEF DOC. NO. 520 RECEIVED NYSCEF: 12/02/2022
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in p e a a a i has bee ebe ed p
iite usee th pa
The sta nents ontained n s p esenta!i n a e hased on 0u currept ekpectations a id belle s
on eï n Inture de iOp ents â ei potent ef óniofellehardaceutica e tak¼n hit
a ceileñ infeefDåties u pppi!7 ailable s Th eeen be ne asseeane thei feti¼pe dee n s
f7Dti is o h flaÆeli II.be th é that ha i te) d en1 ehl alien
a a e e heeke a ef ne efoee See e en bee se
shewsñtementsinv6 nurnbe isks üDeertainties (some hid a epond oür ntrol
otl assmz )o hat map enus etual esulte as e to be ate f aBy diVepen these
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FILED: NEW YORK COUNTY CLERK 01/11/2022 02:12 PM INDEX NO. 652343/2018
NYSCEF DOC. NO. 520 RECEIVED NYSCEF: 12/02/2022
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Fp Overview
---------------
Flut eliu wa.sfornfat)
e-- 181011
Fiscs.iwd po no m Build the preerninent
a e--
ppe.n ed Ined 1 211 estrtrittbis
a Neuoubet m.5 cl)••l fl.
n n n .
o u -,- e itrt t onlftfilled to O
. pandma . sim)
Fiore 10 which n:cans !it . medical cannabis as an eheet ve
ll0Wel' it! and woli a eprod inorapeune
Itallat!, dt"3W's
opiration f rom NYC Mayor on january x*2e opt on wtittin the mairst)ea111
Fiorello IL LaGmirdiD Pia::or Inedical colmnunity and to address
deep c.sobs:nd
" 40 SfhMi the l:11rriet needs of p aler1ts
PO!Tim i ??ient 10 wier1cP .·Uld V nn C
opposition to the Marihuana Feh:..ow 25
6:Ust lin awa..(,M3a Ü
Trix Act of )37 a vtu grated 2310
n·>d:u! m.tr: o;::i;; i t.·>tN
Proprie u'y a Id ConGdem al FIf)RFLI.C)
PHARMACEUTICALS
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FILED: NEW YORK COUNTY CLERK 01/11/2022 02:12 PM INDEX NO. 652343/2018
NYSCEF DOC. NO. 520 RECEIVED NYSCEF: 12/02/2022
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Senior Leadership Team
Susan Yoss Eric Sirota Judi Tytel
Co ChiefExecutive OHicer Co-ChiefExecudve O&cer General Counsel and
ChiefFinancial Officer Chief Operating Omeer Chief Compliance Omeer
{
abe ors J n fron: Pharnun-x.isq:n irmo Wa ington oisrrsity
Winu m::Sr no 8:::i Mi HG)Prs tiis.T:rsityarid MBA and a fr9
ftur0 GOitruh a rthTrmt it DO:filP Wh tlo: hool o
Josh Mahnan Darwin Millard Dave Pompei
f4 N Director VP Manufacturing VP Dispensary Operations
. of Cultivation Opentione and QA Omeer and Medical Mfairs
hr Chnk onr of the larg-w
u factu neo . np n
Bae c of Scitrt de:grrt it Mor mit a f a cr Son: i%Mad son a d MIM from
l inr it uhare at ti::: I'nivt n.ht the lanrct sawofWnintada st Brem h Zickih humiM
of hrout:n-Madiano Bo:úler Bus:ce s
PmpriM:1ry mid OnÛderi?i:Ù I'IC)RI LI·()
PIIA.lt h1 ACIsl JTICALS
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FILED: NEW YORK COUNTY CLERK 01/11/2022 02:12 PM INDEX NO. 652343/2018
NYSCEF DOC. NO. 520 RECEIVED NYSCEF: 12/02/2022
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Strategic Partners
THE .
CLINIC uUPharmacy
The Clinic o;:ened its lirst inedical t mu oana PCG has over wyears ofhands-o11 The isrooklyn oUep of Ph:wmacy was
dispensary anti culti vation titcility in canmthis ex traction anci fon rmlation established m . SSH by tile hings County
Nevernher 2009 experience as';ístin rategic cannabis Pharrnaemitical Society
partmu s
The Clinic operates Sve dispensarir÷ and Brooklyn College of i'lurm:tcy becanw a
th ree co!tivation facilities in Colorado and PCG will assist with operational part of t ong.ts).md t niversity in me
roultiple medical marijmma EUilities in management, product development and
post. Formalizing relationship with LIU School
Nevad a and lilinois quality assurance during the initial
licensing phase of Pharmacy to develop pharmacist
The Clinic Sntriboed cannabis cultivation certification program, medical marijuana
and manufacturing operations expertise to PCG will support tim Fp effons to bring the fellowship, educational platformfor
Fiorello s original application and will assist most innovative and cost effective medical practitioner and patient outreach and
in start-up and operational phases post- cannabis product s in New York State scientific research
license
Proprieury and Confidenhal FIORU,I O
PHAR M ACEUTICALS
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FILED: NEW YORK COUNTY CLERK 01/11/2022 02:12 PM INDEX NO. 652343/2018
NYSCEF DOC. NO. 520 RECEIVED NYSCEF: 12/02/2022
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Advisory Boards
Scientific Advisory Board Business Advisory Board
Daniel Siegel MD John Pezzuto PhD Charles Catalano RPh Margie Kuo MBA
Clinical Professor of Dermatology, Dean, Arnold & Maric Schwartz College President of C&S Pharmacy Consultants Vice President, Strategic Marketing,
SUNY at Downstate School ofMedicine of Pharmacy and Heath Sciences i':vsnigut and f o-me' t 1::orman o!1.g Adamas Pharmaceuticals, Inc.
0.id es.pe Es.o;:: :nech: ;::c. poh: s iÄ:w Omn of ila> ('uil·qa o N'ew o: kh r uust Soc t 1eand Ad;Hv : 121ulesso1 a: NW las:ci s 01
ecomm:: s and be a::y I'h.i. 9:m 3 N : met¿ and 1fealth !o: me: P:e tde: : of Oto % w ': m i ( ;ty S: ein e for Inh p::m i 'ila: kat::q
Me·nbtr Fp [iom d of 1: trot s 4 mnces at p::: :ior t 4 or:4ty I'hs: 9:nims N:cte· v p a r doe: ce p"op on
Leon Landau MD Alex Neumeister MD Neil Leibowitz MD Lauren Handel JD
Climcal Assistant P"ofessor at the Director of Stress and Trauma Research Medical Director, United Healthcare Pa*tner, Handei Food Law LLC
Jbert Einstein College of Medicine Progrant University of Ottawa pt r on ment.)i.hei.G nd Spcual m equid·n c to mpho:n .
Boo d m·ofied bouninaim RowarcL :c post-; cauna:R s· cess ;absta ."s abu :e., wnh ds·g:ees.·. ;:nd in or beci, , ai an
.UtÖO .it:fl·%t diFOfÔt hiltd h3 ti:c WHO noam :fi · :edu ;:: .ú chah: bt ra er b newe 4
K.evin Phelan PhD Tamar Wise Jennifer Grossman JD Jeff Masonek JD
President, Kevir: A Phelan LLC Partner and co-founder of Founder and President of Partner and co-founder of
¼ oresen n, a specul:c aq Plant Consulting Group Fann Co NewYork Plant Consulting Group
m :w d rug d·v n!wn n1 Syual:st . pi:arruaenk;ne m s acd Conmm at:nmm w;in t .2 Naim al Accompi:shmddome c :o:fi
Pmptimin and GnÛdemial FIf)RELLC)
P HAR M ACEU Tl CALS
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FILED: NEW YORK COUNTY CLERK 01/11/2022 02:12 PM INDEX NO. 652343/2018
NYSCEF DOC. NO. 520 RECEIVED NYSCEF: 12/02/2022
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US Cannabis Market
Legal medical cannabis market was es ablished in the late 1990's
LE Cannabis Sales ( lions
Approximately 200 million people (62%) currently live in states where $22.8
medical cannabis is legal
18,2
Adult cannabis was first legalized in 2012 in Colorado and Washington
$12 5
Medical cannabis and adult cannabis currently legalized in 29 and 8 States
Approximately half of US population has tried cannabis
2015 2016 2017 2018 2019 2020
More than 7 times as many Americans think alcohol (s9%) is more ..
memeal B adult use
dangerous than cannabis (7%)
81% and 61% of Americans supnon medical and adult use eannabis
$12.1b
.tegalization respectively
$10.7b
States beginning to derive significant tax revenue from sales of cannabis
- Colorado tax revenue over $500 million ..
since immary :ma $4.4b
2015 2020
Propriecu'y and (unfidemial FIC)RIU,I.C)
PHARM ACEUTl CALS
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FILED: NEW YORK COUNTY CLERK 01/11/2022 02:12 PM INDEX NO. 652343/2018
NYSCEF DOC. NO. 520 RECEIVED NYSCEF: 12/02/2022
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Impact of Medical Cannabis
............................................................................................................................................................................
...............................................................................................................................................
Legalization of Medical Marijuana and Reduction in Legalization of Medical Marijuana and
Medicare Part D Prescriptions (2010-2013) Incidence of Opioid Mortality (1999-2010)
.. .. .. ... .. .. .. .. .. .. .. ... ... .. ..
Reduction in daily doses annually prescribed per physician Difference in age-adjusted mortality (%)
3%
0% - -
0%
-s%
40%
........................................................................................................................................
......................................................................................................................................................,
PHAR M ACEUTICALS
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FILED: NEW YORK COUNTY CLERK 01/11/2022 02:12 PM INDEX NO. 652343/2018
NYSCEF DOC. NO. 520 RECEIVED NYSCEF: 12/02/2022
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New York Medical Cannabis darket
Large Market Potential RedefiningIndustry Standards
· sh !:treen l sum - .2o mijlion nointlanon "én:r!0ttoet a of pl:.a3inaceut3c:ti-ba d
* idr est poplil Li011detaily in l S Wif11 T7 (10 one
pri1U i pl atid qG,llity re
reciderd s p::1 square mile
PTd CBJkV4D PdT½ Rd JVlodR< \
O O her profj[ ni O in
low3 comre! of nttre supply cil:ue as e of
--0 November 2016
n,uidt d pl w.: i t ed a c e eh ma.n m. o
U mer 9 has poaK
= March 20p
Compassionate Care Act oiesa m a
A ida chronic ain as emroved
ho.tne deh en setuo
qG-lilÍ yl)¾ t olid!lloll
ev wweaeb1.tMr q pa that :.here.ma:woer .
de esc n s cierada 2,11tha d ! o:ct Una, r,1p11nicy
thr has m:olerab a vie #fgem w has :sted fro o' .2
per en as: t., at e.s ee months s-d :> Ft trer
7 e'PPT ?TN lish the first pharrnaceutical 13ased inedical rnarijuana orgaritzation
alld capitalize 011 the currem competitive environment and long-term market opportunity in New York
of n ia! for W,1olesale Inarliet and 11011-Yertically illtegrated bUSilleSS rnodel provides even greater flexibility
regarding entry stratF:gy and deployment of Capital
enmrisay md r andernial FIORF1LO
PHARMACEUTICALS
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FILED: NEW YORK COUNTY CLERK 01/11/2022 02:12 PM INDEX NO. 652343/2018
NYSCEF DOC. NO. 520 RECEIVED NYSCEF: 12/02/2022
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Strategic Business Drivers
Establish Fp as the 1st true pharrnaceutical
medical marijuana company
Corporate
Deploy capital in fiscally conservative Create highly differentiated
speeme"
rnanner commensurate with condition brands that
Infrastructme Development
market demand engender strong Fp brand equity
Create strong patient preference Patient Practitioner Expand nmnber of NY registered practitioners
for Fp brands and dispensary services Experience Registration and build strong base of Fp loyalists
Pmprie ry ;md (unfidernial FIORFLI,0
PHAR M ACEUTICALS
FILED: NEW YORK COUNTY CLERK 01/11/2022 02:12 PM INDEX NO. 652343/2018
NYSCEF DOC. NO. 520 RECEIVED NYSCEF: 12/02/2022
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Fp Cultivation and Manufacturing Facility
-::r=:::r=:::r=:::r=::r=::r=:::r=:::r=:::r=::r=::r=:::r=:::r=:::r=::r=::r--
Temporary Manufacturing Proposed Perrnament Cultivation and
Facility Manufacturing Facility Site
7 BUSENESS
MSKAYUNA PARK
Emlding acL A Street Glenville, NY .
Leased 44k of 120,oco si u.a 4.e+
high ceiling heights
Build out approximately 2k SF to supper ?
initial launch of Fp brands *
Right to termmate lease with 6 month notice Build custom 40k SF facility on S acres in
Exceptional highway access W th Niekayuna Business Park with adjacent la-ad
t rom me hmn. suitable for potential expansion
F TOR E l T O
P i I A R M ACE U T! C A I.S
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FILED: NEW YORK COUNTY CLERK 01/11/2022 02:12 PM INDEX NO. 652343/2018
NYSCEF DOC. NO. 520 RECEIVED NYSCEF: 12/02/2022
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Fp Dispensaries
Fp Dispensary Deployment
Monroe County
Strategically located to ensure
optimal geographic distribution and 44 ("h'd
maximum reach . Population = 220 thousand
ampumon Emumrna (w )
Downstate counties encompass ') Only dispensary
3 million residents No competition
approximately
Upstate counties encompass
approximately i million residents
"
with only 1 compeung dispensary
Total reach (including nearby
counties) of approximately 14 Populatior = 1 34 millicn
million (71% of State population) 1 er 5 caspenarnes
" ' Competition. PalliaTech, MedMen
Working with RPG, awara wnmng New York County (Manhattan) 7
design firm, to create unique and - ..
Npalaeon w nulhon
welcoming dispensary experience
Compen1ton ( o upth a Cm ai p rocl; ict i o n in j ul y P.0i 9. Pot enriat t e re duce ca p it a r eq u ire ro en i h as:wl on wh el esalb ef f ct it en ,s
Co!!ivation oianufacturin acility to increa e to 40!s.SF in 2021 and 9ek SF in 2G22 to accotumod:ue patient
de tuold
Dispens;tries are i;trgeted at 1.72s SF eacit, with e pausion plans i i 20211or 2 dowi:r·tate locaitons to supp rt
psient growth
L i m nse fe o ai $2 ' c s p idd !a l4 | a3i I ne0 t of 1i eàI th e .+3 y f W6 ye;a s
OpT Pi ify Ul ItÍideri? :Ù l'IC)RELL()
..: Pl fA.11tv1ACIslJTICALS
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FILED: NEW YORK COUNTY CLERK 01/11/2022 02:12 PM INDEX NO. 652343/2018
NYSCEF DOC. NO. 520 RECEIVED NYSCEF: 12/02/2022
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o U es ofta h
i in ase
isting CashBalance
Tota Souree
Op tions SA $ e $ &
apitalE pendithre 6 12
fash Bahne ear En $ $ as j 36 6
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FILED: NEW YORK COUNTY CLERK 01/11/2022 02:12 PM INDEX NO. 652343/2018
NYSCEF DOC. NO. 520 RECEIVED NYSCEF: 12/02/2022
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Plan
Phasing
Capital investment and staffing based on phasing plan and projected patient derrumd
N tJM BER O F FU il TI M E EM PLOYEES*
Total Cash . . .
Require ment
Avera.ge # of
Patients
Revenues o St 1 s :
---
EBITDA (s 2 (8 ;.9) ( 40 0
# of FTE 19
............................................................................................................................................
P HA R M ACEU Tl CAL S
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FILED: NEW YORK COUNTY CLERK 01/11/2022 02:12 PM INDEX NO. 652343/2018
NYSCEF DOC. NO. 520 RECEIVED NYSCEF: 12/02/2022
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Phased Investment
-------------------
mmmm
Cultivation/
Manufacturing
$O-t) $4-0 $O
.
" Phase i luciudes
rnanitiarturitty lil sle:1ville
Nassau dispensaries
build-olu of ternparary
tuid )vlanitattan alid
" Phase 2 initi:tl build-out of perinauent
Dispensary on o£ c.2 |
manufacturum faciurv 06k 510 and saratoga and
Operat:ions 23 24 0.8 RUr?faCT C
Total Investment $5.9 $7.0 316 ......................................................................................................................................
Pnmrietuy u1d m didemial FIORELLO
:x PHAR M ACEUTICALS
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FILED: NEW YORK COUNTY CLERK 01/11/2022 02:12 PM INDEX NO. 652343/2018
NYSCEF DOC. NO. 520 RECEIVED NYSCEF: 12/02/2022
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Financial Projections By Phase
-Net Income - Avg. Patients
$800,000 6,000
$800,000
Breakeven
$400,000
4,000
$200,000
1,000
$400,000)
($600,000)
Phase 2
J.)IIA.11A1 ACI61J Tl CALS
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FILED: NEW YORK COUNTY CLERK 01/11/2022 02:12 PM INDEX NO. 652343/2018
NYSCEF DOC. NO. 520 RECEIVED NYSCEF: 12/02/2022
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p contaets
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FILED: NEW YORK COUNTY CLERK 01/11/2022 02:12 PM INDEX NO. 652343/2018
NYSCEF DOC. NO. 520 RECEIVED NYSCEF: 12/02/2022
CONFI
DENT
IAL
LHS00000085
FILED: NEW YORK COUNTY CLERK 01/11/2022 02:12 PM INDEX NO. 652343/2018
NYSCEF DOC. NO. 520 RECEIVED NYSCEF: 12/02/2022
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tr1
R a Z 512 3.5 29 437 $ 45 2 $ $
ReneweGrö…th
% 899W 13.2% BW 9% 12%
co weo syo (1 a (5 538ÿ468 845A62 5 795655 7 5269 9]Ä ( 500 84)
GrossProfit 195 28 8,871,955 25¾64215 33 64412 46211 90 47,50¼869
O eratingE pehses
sales&NIkketin 45625) (461 50) (571 75) (821 75) (1(s6 875) (1 96 75)
Rs Deý I t . ( 4000 . - . . ($¾87 . (589212) . 32 60 . (2
GeneraiandAielministratiñ
i (23i156 6 (1;302,422 1,74 188) 1,854188 (1,9453 3 945313
TotalOperdingExpenses0 (4316 S7) 4552009 (62227 8 152933 9,282005 1 045194
Mn
Operefig!PEofit/(Úö 4 3i2385) . 4 51%946 19 19Ü738 . 25 981 . 36 2 686 374 Ã}ü
ñOerating Margin% a e a se % 498 Asa
ea Ireme Expense) 9 4M) 6 66 (4000) 13 3
EBT ( 21847) Ä513279 29A 38. .255 Ö647 3645 686 374 2 #4
BTMĤ % n% 299% ssM sid6 493% 4s2%
eTâxExpense - 2 463,7Ú } 436 29 9 62825 & 401;390& 77.282&
et es 524847) 1 s62 11,97s409 15 4)823 230282 6 23685393
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FILED: NEW YORK COUNTY CLERK 01/11/2022 02:12 PM INDEX NO. 652343/2018
NYSCEF DOC. NO. 520 RECEIVED NYSCEF: 12/02/2022
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Fp Balance Sheet Projections
$$ 12/3 2/31/ /19 2/31 21 2/31fÊÊ 1/23
ASSETS
Curren:A of :
tash 1,035,56 2.078.410 s '.83,8h6 38,211,255 25212,M,7 6E
36,711,1 59,6.48,w>v
Accounts,
Receiv.3ble - - - - - - -
Inventory - 676,463 1,257,393 1.514.494 248
1,776, 4.1C7.582 4.865.274
P ...jict . . . . . - -
TctalCouentAsser.s 1,035,565 2,754,933 4,641,258 16,7
31,748 20,989,115 40.818.750 64.504,143
Proper
tyanc
Preview
FILED: NEW YORK COUNTY CLERK 01/11/2022 02:12 PM INDEX NO. 652343/2018 NYSCEF DOC. NO. 520 RECEIVED NYSCEF: 12/02/2022 EXHIBIT 38 March 31, 2018 email from Liberty's CEO speculating that Fiorello had an agreement with either Acreage or Cresco Index No. 652343/2018 FILED: NEW YORK COUNTY CLERK 01/11/2022 02:12 PM INDEX NO. 652343/2018 NYSCEF DOC. NO. 520 RECEIVED NYSCEF: 12/02/2022 From: George Scorsis Sent: Saturday, March 31, 2018 2:25 PM To: andy@delavaco.com; reneg@aphria.com Subject: Fp Deck/Information NYC Attachments: Fp Management Presentation_January 2018_v1.pdf; ATT00001.htm; Dispensary Locations.pdf; ATT00002.htm; NY Registered Organizations.xisx; ATT00003.htm Andy, As per our discussion today. This is the group that is out of exclusivity and gets bound on Monday again by another group. My instinct is telling me it was either the Murph or Cresco. I think we can take this for 25 MM. NYC is going to be a monster and has a limited license profile with chronic pain just being approved. Thanks George Scorsis M: 416.721.9220 Exhibit 17 Witness:RENE GULLIVER Date: 9/24/20 Court Reporter: DINAMANCILLAS CONF I DENT IAL LHS00000057 FILED: NEW YORK COUNTY CLERK 01/11/2022 02:12 PM INDEX NO. 652343/2018 NYSCEF DOC. NO. 520 RECEIVED NYSCEF: 12/02/2022 PHARMA E j TI C I 8 c.o FILED: NEW YORK COUNTY CLERK 01/11/2022 02:12 PM INDEX NO. 652343/2018 NYSCEF DOC. NO. 520 RECEIVED NYSCEF: 12/02/2022 O O in p e a a a i has bee ebe ed p iite usee th pa The sta nents ontained n s p esenta!i n a e hased on 0u currept ekpectations a id belle s on eï n Inture de iOp ents â ei potent ef óniofellehardaceutica e tak¼n hit a ceileñ infeefDåties u pppi!7 ailable s Th eeen be ne asseeane thei feti¼pe dee n s f7Dti is o h flaÆeli II.be th é that ha i te) d en1 ehl alien a a e e heeke a ef ne efoee See e en bee se shewsñtementsinv6 nurnbe isks üDeertainties (some hid a epond oür ntrol otl assmz )o hat map enus etual esulte as e to be ate f aBy diVepen these ! ... HIM CEUT co 8 8 8 FILED: NEW YORK COUNTY CLERK 01/11/2022 02:12 PM INDEX NO. 652343/2018 NYSCEF DOC. NO. 520 RECEIVED NYSCEF: 12/02/2022 O O Fp Overview --------------- Flut eliu wa.sfornfat) e-- 181011 Fiscs.iwd po no m Build the preerninent a e-- ppe.n ed Ined 1 211 estrtrittbis a Neuoubet m.5 cl)••l fl. n n n . o u -,- e itrt t onlftfilled to O . pandma . sim) Fiore 10 which n:cans !it . medical cannabis as an eheet ve ll0Wel' it! and woli a eprod inorapeune Itallat!, dt"3W's opiration f rom NYC Mayor on january x*2e opt on wtittin the mairst)ea111 Fiorello IL LaGmirdiD Pia::or Inedical colmnunity and to address deep c.sobs:nd " 40 SfhMi the l:11rriet needs of p aler1ts PO!Tim i ??ient 10 wier1cP .·Uld V nn C opposition to the Marihuana Feh:..ow 25 6:Ust lin awa..(,M3a Ü Trix Act of )37 a vtu grated 2310 n·>d:u! m.tr: o;::i;; i t.·>tN Proprie u'y a Id ConGdem al FIf)RFLI.C) PHARMACEUTICALS t~ c.o O O O O O O Ch O FILED: NEW YORK COUNTY CLERK 01/11/2022 02:12 PM INDEX NO. 652343/2018 NYSCEF DOC. NO. 520 RECEIVED NYSCEF: 12/02/2022 O o Senior Leadership Team Susan Yoss Eric Sirota Judi Tytel Co ChiefExecutive OHicer Co-ChiefExecudve O&cer General Counsel and ChiefFinancial Officer Chief Operating Omeer Chief Compliance Omeer { abe ors J n fron: Pharnun-x.isq:n irmo Wa ington oisrrsity Winu m::Sr no 8:::i Mi HG)Prs tiis.T:rsityarid MBA and a fr9 ftur0 GOitruh a rthTrmt it DO:filP Wh tlo: hool o Josh Mahnan Darwin Millard Dave Pompei f4 N Director VP Manufacturing VP Dispensary Operations . of Cultivation Opentione and QA Omeer and Medical Mfairs hr Chnk onr of the larg-w u factu neo . np n Bae c of Scitrt de:grrt it Mor mit a f a cr Son: i%Mad son a d MIM from l inr it uhare at ti::: I'nivt n.ht the lanrct sawofWnintada st Brem h Zickih humiM of hrout:n-Madiano Bo:úler Bus:ce s PmpriM:1ry mid OnÛderi?i:Ù I'IC)RI LI·() PIIA.lt h1 ACIsl JTICALS t~ co O O O O O O Ch FILED: NEW YORK COUNTY CLERK 01/11/2022 02:12 PM INDEX NO. 652343/2018 NYSCEF DOC. NO. 520 RECEIVED NYSCEF: 12/02/2022 O O Strategic Partners THE . CLINIC uUPharmacy The Clinic o;:ened its lirst inedical t mu oana PCG has over wyears ofhands-o11 The isrooklyn oUep of Ph:wmacy was dispensary anti culti vation titcility in canmthis ex traction anci fon rmlation established m . SSH by tile hings County Nevernher 2009 experience as';ístin rategic cannabis Pharrnaemitical Society partmu s The Clinic operates Sve dispensarir÷ and Brooklyn College of i'lurm:tcy becanw a th ree co!tivation facilities in Colorado and PCG will assist with operational part of t ong.ts).md t niversity in me roultiple medical marijmma EUilities in management, product development and post. Formalizing relationship with LIU School Nevad a and lilinois quality assurance during the initial licensing phase of Pharmacy to develop pharmacist The Clinic Sntriboed cannabis cultivation certification program, medical marijuana and manufacturing operations expertise to PCG will support tim Fp effons to bring the fellowship, educational platformfor Fiorello s original application and will assist most innovative and cost effective medical practitioner and patient outreach and in start-up and operational phases post- cannabis product s in New York State scientific research license Proprieury and Confidenhal FIORU,I O PHAR M ACEUTICALS O O O O O O Ch tO FILED: NEW YORK COUNTY CLERK 01/11/2022 02:12 PM INDEX NO. 652343/2018 NYSCEF DOC. NO. 520 RECEIVED NYSCEF: 12/02/2022 O o Advisory Boards Scientific Advisory Board Business Advisory Board Daniel Siegel MD John Pezzuto PhD Charles Catalano RPh Margie Kuo MBA Clinical Professor of Dermatology, Dean, Arnold & Maric Schwartz College President of C&S Pharmacy Consultants Vice President, Strategic Marketing, SUNY at Downstate School ofMedicine of Pharmacy and Heath Sciences i':vsnigut and f o-me' t 1::orman o!1.g Adamas Pharmaceuticals, Inc. 0.id es.pe Es.o;:: :nech: ;::c. poh: s iÄ:w Omn of ila> ('uil·qa o N'ew o: kh r uust Soc t 1eand Ad;Hv : 121ulesso1 a: NW las:ci s 01 ecomm:: s and be a::y I'h.i. 9:m 3 N : met¿ and 1fealth !o: me: P:e tde: : of Oto % w ': m i ( ;ty S: ein e for Inh p::m i 'ila: kat::q Me·nbtr Fp [iom d of 1: trot s 4 mnces at p::: :ior t 4 or:4ty I'hs: 9:nims N:cte· v p a r doe: ce p"op on Leon Landau MD Alex Neumeister MD Neil Leibowitz MD Lauren Handel JD Climcal Assistant P"ofessor at the Director of Stress and Trauma Research Medical Director, United Healthcare Pa*tner, Handei Food Law LLC Jbert Einstein College of Medicine Progrant University of Ottawa pt r on ment.)i.hei.G nd Spcual m equid·n c to mpho:n . Boo d m·ofied bouninaim RowarcL :c post-; cauna:R s· cess ;absta ."s abu :e., wnh ds·g:ees.·. ;:nd in or beci, , ai an .UtÖO .it:fl·%t diFOfÔt hiltd h3 ti:c WHO noam :fi · :edu ;:: .ú chah: bt ra er b newe 4 K.evin Phelan PhD Tamar Wise Jennifer Grossman JD Jeff Masonek JD President, Kevir: A Phelan LLC Partner and co-founder of Founder and President of Partner and co-founder of ¼ oresen n, a specul:c aq Plant Consulting Group Fann Co NewYork Plant Consulting Group m :w d rug d·v n!wn n1 Syual:st . pi:arruaenk;ne m s acd Conmm at:nmm w;in t .2 Naim al Accompi:shmddome c :o:fi Pmptimin and GnÛdemial FIf)RELLC) P HAR M ACEU Tl CALS O O O O O O Ch FILED: NEW YORK COUNTY CLERK 01/11/2022 02:12 PM INDEX NO. 652343/2018 NYSCEF DOC. NO. 520 RECEIVED NYSCEF: 12/02/2022 O O US Cannabis Market Legal medical cannabis market was es ablished in the late 1990's LE Cannabis Sales ( lions Approximately 200 million people (62%) currently live in states where $22.8 medical cannabis is legal 18,2 Adult cannabis was first legalized in 2012 in Colorado and Washington $12 5 Medical cannabis and adult cannabis currently legalized in 29 and 8 States Approximately half of US population has tried cannabis 2015 2016 2017 2018 2019 2020 More than 7 times as many Americans think alcohol (s9%) is more .. memeal B adult use dangerous than cannabis (7%) 81% and 61% of Americans supnon medical and adult use eannabis $12.1b .tegalization respectively $10.7b States beginning to derive significant tax revenue from sales of cannabis - Colorado tax revenue over $500 million .. since immary :ma $4.4b 2015 2020 Propriecu'y and (unfidemial FIC)RIU,I.C) PHARM ACEUTl CALS O O O O O O Ch FILED: NEW YORK COUNTY CLERK 01/11/2022 02:12 PM INDEX NO. 652343/2018 NYSCEF DOC. NO. 520 RECEIVED NYSCEF: 12/02/2022 O O Impact of Medical Cannabis ............................................................................................................................................................................ ............................................................................................................................................... Legalization of Medical Marijuana and Reduction in Legalization of Medical Marijuana and Medicare Part D Prescriptions (2010-2013) Incidence of Opioid Mortality (1999-2010) .. .. .. ... .. .. .. .. .. .. .. ... ... .. .. Reduction in daily doses annually prescribed per physician Difference in age-adjusted mortality (%) 3% 0% - - 0% -s% 40% ........................................................................................................................................ ......................................................................................................................................................, PHAR M ACEUTICALS O O O O O O Ch FILED: NEW YORK COUNTY CLERK 01/11/2022 02:12 PM INDEX NO. 652343/2018 NYSCEF DOC. NO. 520 RECEIVED NYSCEF: 12/02/2022 O O New York Medical Cannabis darket Large Market Potential RedefiningIndustry Standards · sh !:treen l sum - .2o mijlion nointlanon "én:r!0ttoet a of pl:.a3inaceut3c:ti-ba d * idr est poplil Li011detaily in l S Wif11 T7 (10 one pri1U i pl atid qG,llity re reciderd s p::1 square mile PTd CBJkV4D PdT½ Rd JVlodR< \ O O her profj[ ni O in low3 comre! of nttre supply cil:ue as e of --0 November 2016 n,uidt d pl w.: i t ed a c e eh ma.n m. o U mer 9 has poaK = March 20p Compassionate Care Act oiesa m a A ida chronic ain as emroved ho.tne deh en setuo qG-lilÍ yl)¾ t olid!lloll ev wweaeb1.tMr q pa that :.here.ma:woer . de esc n s cierada 2,11tha d ! o:ct Una, r,1p11nicy thr has m:olerab a vie #fgem w has :sted fro o' .2 per en as: t., at e.s ee months s-d :> Ft trer 7 e'PPT ?TN lish the first pharrnaceutical 13ased inedical rnarijuana orgaritzation alld capitalize 011 the currem competitive environment and long-term market opportunity in New York of n ia! for W,1olesale Inarliet and 11011-Yertically illtegrated bUSilleSS rnodel provides even greater flexibility regarding entry stratF:gy and deployment of Capital enmrisay md r andernial FIORF1LO PHARMACEUTICALS O O O O O O O FILED: NEW YORK COUNTY CLERK 01/11/2022 02:12 PM INDEX NO. 652343/2018 NYSCEF DOC. NO. 520 RECEIVED NYSCEF: 12/02/2022 O O Strategic Business Drivers Establish Fp as the 1st true pharrnaceutical medical marijuana company Corporate Deploy capital in fiscally conservative Create highly differentiated speeme" rnanner commensurate with condition brands that Infrastructme Development market demand engender strong Fp brand equity Create strong patient preference Patient Practitioner Expand nmnber of NY registered practitioners for Fp brands and dispensary services Experience Registration and build strong base of Fp loyalists Pmprie ry ;md (unfidernial FIORFLI,0 PHAR M ACEUTICALS FILED: NEW YORK COUNTY CLERK 01/11/2022 02:12 PM INDEX NO. 652343/2018 NYSCEF DOC. NO. 520 RECEIVED NYSCEF: 12/02/2022 O O Fp Cultivation and Manufacturing Facility -::r=:::r=:::r=:::r=::r=::r=:::r=:::r=:::r=::r=::r=:::r=:::r=:::r=::r=::r-- Temporary Manufacturing Proposed Perrnament Cultivation and Facility Manufacturing Facility Site 7 BUSENESS MSKAYUNA PARK Emlding acL A Street Glenville, NY . Leased 44k of 120,oco si u.a 4.e+ high ceiling heights Build out approximately 2k SF to supper ? initial launch of Fp brands * Right to termmate lease with 6 month notice Build custom 40k SF facility on S acres in Exceptional highway access W th Niekayuna Business Park with adjacent la-ad t rom me hmn. suitable for potential expansion F TOR E l T O P i I A R M ACE U T! C A I.S O O O O O O FILED: NEW YORK COUNTY CLERK 01/11/2022 02:12 PM INDEX NO. 652343/2018 NYSCEF DOC. NO. 520 RECEIVED NYSCEF: 12/02/2022 O 0 Fp Dispensaries Fp Dispensary Deployment Monroe County Strategically located to ensure optimal geographic distribution and 44 ("h'd maximum reach . Population = 220 thousand ampumon Emumrna (w ) Downstate counties encompass ') Only dispensary 3 million residents No competition approximately Upstate counties encompass approximately i million residents " with only 1 compeung dispensary Total reach (including nearby counties) of approximately 14 Populatior = 1 34 millicn million (71% of State population) 1 er 5 caspenarnes " ' Competition. PalliaTech, MedMen Working with RPG, awara wnmng New York County (Manhattan) 7 design firm, to create unique and - .. Npalaeon w nulhon welcoming dispensary experience Compen1ton ( o upth a Cm ai p rocl; ict i o n in j ul y P.0i 9. Pot enriat t e re duce ca p it a r eq u ire ro en i h as:wl on wh el esalb ef f ct it en ,s Co!!ivation oianufacturin acility to increa e to 40!s.SF in 2021 and 9ek SF in 2G22 to accotumod:ue patient de tuold Dispens;tries are i;trgeted at 1.72s SF eacit, with e pausion plans i i 20211or 2 dowi:r·tate locaitons to supp rt psient growth L i m nse fe o ai $2 ' c s p idd !a l4 | a3i I ne0 t of 1i eàI th e .+3 y f W6 ye;a s OpT Pi ify Ul ItÍideri? :Ù l'IC)RELL() ..: Pl fA.11tv1ACIslJTICALS O O O O O O FILED: NEW YORK COUNTY CLERK 01/11/2022 02:12 PM INDEX NO. 652343/2018 NYSCEF DOC. NO. 520 RECEIVED NYSCEF: 12/02/2022 O O o U es ofta h i in ase isting CashBalance Tota Souree Op tions SA $ e $ & apitalE pendithre 6 12 fash Bahne ear En $ $ as j 36 6 8 O O O FILED: NEW YORK COUNTY CLERK 01/11/2022 02:12 PM INDEX NO. 652343/2018 NYSCEF DOC. NO. 520 RECEIVED NYSCEF: 12/02/2022 O 0 Plan Phasing Capital investment and staffing based on phasing plan and projected patient derrumd N tJM BER O F FU il TI M E EM PLOYEES* Total Cash . . . Require ment Avera.ge # of Patients Revenues o St 1 s : --- EBITDA (s 2 (8 ;.9) ( 40 0 # of FTE 19 ............................................................................................................................................ P HA R M ACEU Tl CAL S O O O O O O O0 FILED: NEW YORK COUNTY CLERK 01/11/2022 02:12 PM INDEX NO. 652343/2018 NYSCEF DOC. NO. 520 RECEIVED NYSCEF: 12/02/2022 O O Phased Investment ------------------- mmmm Cultivation/ Manufacturing $O-t) $4-0 $O . " Phase i luciudes rnanitiarturitty lil sle:1ville Nassau dispensaries build-olu of ternparary tuid )vlanitattan alid " Phase 2 initi:tl build-out of perinauent Dispensary on o£ c.2 | manufacturum faciurv 06k 510 and saratoga and Operat:ions 23 24 0.8 RUr?faCT C Total Investment $5.9 $7.0 316 ...................................................................................................................................... Pnmrietuy u1d m didemial FIORELLO :x PHAR M ACEUTICALS O O O O O O O0 tO FILED: NEW YORK COUNTY CLERK 01/11/2022 02:12 PM INDEX NO. 652343/2018 NYSCEF DOC. NO. 520 RECEIVED NYSCEF: 12/02/2022 O O Financial Projections By Phase -Net Income - Avg. Patients $800,000 6,000 $800,000 Breakeven $400,000 4,000 $200,000 1,000 $400,000) ($600,000) Phase 2 J.)IIA.11A1 ACI61J Tl CALS O O O O O O O0 W FILED: NEW YORK COUNTY CLERK 01/11/2022 02:12 PM INDEX NO. 652343/2018 NYSCEF DOC. NO. 520 RECEIVED NYSCEF: 12/02/2022 O O 1 p contaets S 0S . . . . 0 . e åKef2kåöau• ýieer co cK r2xe úd9e O 0cer CMåFFi HaIdiai OBìàår C+ef O#eradñg|O'1ðer síeen@Dny7e¬ erie@fpny com ... 27 M 0E CA 8 8 FILED: NEW YORK COUNTY CLERK 01/11/2022 02:12 PM INDEX NO. 652343/2018 NYSCEF DOC. NO. 520 RECEIVED NYSCEF: 12/02/2022 CONFI DENT IAL LHS00000085 FILED: NEW YORK COUNTY CLERK 01/11/2022 02:12 PM INDEX NO. 652343/2018 NYSCEF DOC. NO. 520 RECEIVED NYSCEF: 12/02/2022 O O tr1 R a Z 512 3.5 29 437 $ 45 2 $ $ ReneweGrö…th % 899W 13.2% BW 9% 12% co weo syo (1 a (5 538ÿ468 845A62 5 795655 7 5269 9]Ä ( 500 84) GrossProfit 195 28 8,871,955 25¾64215 33 64412 46211 90 47,50¼869 O eratingE pehses sales&NIkketin 45625) (461 50) (571 75) (821 75) (1(s6 875) (1 96 75) Rs Deý I t . ( 4000 . - . . ($¾87 . (589212) . 32 60 . (2 GeneraiandAielministratiñ i (23i156 6 (1;302,422 1,74 188) 1,854188 (1,9453 3 945313 TotalOperdingExpenses0 (4316 S7) 4552009 (62227 8 152933 9,282005 1 045194 Mn Operefig!PEofit/(Úö 4 3i2385) . 4 51%946 19 19Ü738 . 25 981 . 36 2 686 374 Ã}ü ñOerating Margin% a e a se % 498 Asa ea Ireme Expense) 9 4M) 6 66 (4000) 13 3 EBT ( 21847) Ä513279 29A 38. .255 Ö647 3645 686 374 2 #4 BTMƒ§ % n% 299% ssM sid6 493% 4s2% eTâxExpense - 2 463,7Ú } 436 29 9 62825 & 401;390& 77.282& et es 524847) 1 s62 11,97s409 15 4)823 230282 6 23685393 O O O O O O O0 Ch FILED: NEW YORK COUNTY CLERK 01/11/2022 02:12 PM INDEX NO. 652343/2018 NYSCEF DOC. NO. 520 RECEIVED NYSCEF: 12/02/2022 O O L Fp Balance Sheet Projections $$ 12/3 2/31/ /19 2/31 21 2/31fÊÊ 1/23 ASSETS Curren:A of : tash 1,035,56 2.078.410 s '.83,8h6 38,211,255 25212,M,7 6E 36,711,1 59,6.48,w>v Accounts, Receiv.3ble - - - - - - - Inventory - 676,463 1,257,393 1.514.494 248 1,776, 4.1C7.582 4.865.274 P ...jict . . . . . - - TctalCouentAsser.s 1,035,565 2,754,933 4,641,258 16,7 31,748 20,989,115 40.818.750 64.504,143 Proper tyanc