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Evolve Marijuana ETF

Now trading on the TSX.

TSX Ticker: SEED www.evolveetfs.com 1


Disclaimer The information contained herein is confidential and for use of Investment Advisors. The information contained herein is not to be reproduced or distributed to the public or the press. This presentation is not an offer or solicitation of an offer or a recommendation to buy or sell any securities or financial instrument, nor shall it be deemed to provide investment, tax or accounting advice. The information contained herein is intended as a summary only and is qualified entirely by, and should be read in conjunction with, the more detailed information appearing in the prospectuses dated August 4, 2017, August 14, 2017, February 5, 2018, and March 21, 2018. Commissions, management fees and expenses all may be associated with exchange traded mutual funds (ETFs). Please read the prospectus before investing. ETFs are not guaranteed, their values change frequently and past performance may not be repeated. There are risks involved with investing in ETFs. Please read the prospectus for a complete description of risks relevant to the ETF. Investors may incur customary brokerage commissions in buying or selling ETF units. Certain statements contained in this presentation may constitute forward-looking information within the meaning of Canadian securities laws. Forward-looking information may relate to a future outlook and anticipated distributions, events or results and may include statements regarding future financial performance. In some cases, forward-looking information can be identified by terms such as "may", "will", "should", "expect", "anticipate", "believe", "intend" or other similar expressions concerning matters that are not historical facts. Actual results may vary from such forward-looking information. Evolve Funds undertakes no obligation to update publicly or otherwise revise any forward-looking statement whether as a result of new information, future events or other such factors which affect this information, except as required by law.

Invest Better. evolveetfs.com Evolve Funds Group Inc.

| 416.214.4884 | Brookfield Place, 161 Bay Street, Suite 2700, Toronto ON M5J2S1 2


The Growing Medical Marijuana Industry The pain management drugs market accounted for over $58 billion in 2016, and is estimated to reach $77 billion by 2023. Marijuana is disrupting this industry.* From arthritis to inflammation to medical illness – an alternative to the opioid epidemic we are experiencing in North America and globally. The medical benefits of cannabis are many:

“There is conclusive or substantial evidence that cannabis [is] effective for the treatment of chronic pain in adults.” National Academies of Science (2017)

*Source: Allied Market Research 3


Global Medical Marijuana (MMJ) Market

market is expected to reach USD 28,070.0 million by 2024 at CAGR of 19.1% from 2018-2024.

The chronic pain segment held the major share of the global market in 2017, due to presence of chemical compounds in marijuana which aid in relieving pain.

The pharmaceutical industry held the maximum share of the market in 2017.

North America held the largest share of the global medical marijuana market in 2017. The CBD (cannabidiol) segment accounted for the largest share of the MMJ market.

Sativa type emerged as the largest segment in 2017 and is projected to maintain its dominance over the forecast period.

Source: Globenewswire 4


Globalization Opportunities Legalized Medical Marijuana Goes Global

2014

2017

(5 countries)

(25 countries)

There is a rapid increase in the number of countries that have legalized cannabis for medical purposes

Source: Canopy Growth Corp MD&A

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Investment Process Overview Create a universe of stocks that have exposure to the cannabis sector. a) Business activities in the industry b) Screen for market cap c) Not domiciled in the US

Rank each stock based on its medium-term (3-6 month) price momentum, using proprietary scoring model. Build a portfolio of ~25 stocks. Weight each stock such that the portfolio has optimal momentum score. Each stock is assessed on its daily trading liquidity (volume) to ensure that it can be adequately traded within the context of the portfolio size. Each stock is reviewed from a fundamental perspective to ensure that no one holding can unduly influence the dynamics and performance of the portfolio. 6


Legalization Benefits for Canada Legalization could boost Canada’s economy in total by over $22 billion - the economic impact includes growers and distribution, tourism, taxes, paraphernalia, infused products, labs and security.

Source: Deloitte: Recreational Marijuana Insights and Opportunities 7


U.S. State Profits From Cannabis Estimated sales in the past year in the US from cannabis, either medical or recreational. Note: Colorado, Oregon and Washington totals are recreational only.

Source: Forbes, 2018

Alaska

$39.5 million

Massachusetts

$106 million

California

$2.75 billion

Nevada

$102.7 million

Colorado

$1.56 billion

Oregon

$777.6 million

District of Columbia

$17.7 million

Washington

$1 billion

Maine

$83.4 million 8


Other Economic Benefits

Source: New Frontier Data, The Cannabis Industry Annual Report: 2017 Legal Marijuana Outlook

CASE STUDY: Colorado, USA 2014: Colorado legalized recreational cannabis sales 2015: Creates 18,000 full-time jobs in first year of legalization 2016: $1 billion in revenue; over $200 million in tax revenue created 2017: $1.5 billion in revenue; ~$240 million in tax revenue created Source: Marijuana Policy Group 9


Benefits of Investing in SEED 1. Active Management ▪ Avoid single stock risk through diversification ▪ Benefit from superior stock selection ▪ Become opportunistic on M&A activity within the marijuana industry

2. Global Exposure ▪ Potential globalization of the marijuana industry ▪ In 2017, the global cannabis market was worth US$7.7 billion ▪ By 2021, the global market is projected to hit over US$31 billion; a compounded annual growth rate of 60%

3. Privates

Source: Brightfield Group (Canada & International Cannabis Markets)

▪ May invest up to 10% in unlisted issuers. ▪ Benefit from pre-IPO and M&A activity 10


Top 10 Portfolio Holdings 1.

Ticker: WEED

2.

Ticker: LEAF

3.

Ticker: CRON

4.

Ticker: HEXO

5.

Ticker: TRST

As at June 29, 2018

6.

Ticker: OGI

7.

Ticker: CAN

8.

Ticker: TER

9.

Ticker: NEPT

10.

Ticker: MPX

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Evolve Marijuana ETF Evolve Marijuana ETF NUMBER OF HOLDINGS

CLASSES

MANAGER

23

SEED (UNHEDGED)

EVOLVE FUNDS GROUP INC.

MANAGEMENT FEE

MANAGEMENT EXPENSE RATIO (MER)1

CURRENCY

0.75%

1.00%

CAD

GEOGRAPHIC ALLOCATION Name

Canada Australia

Weight

92% 8%

INDUSTRY ALLOCATION Name

Weight

Health Care Consumer Discretionary Consumer Staples Financials Industrials

55% 27% 11% 4% 3%

As at June 29, 2018 1 Includes fixed administration fee of 0.25% 12


Who Should Consider SEED?

Investors who are: Interested in the marijuana industry

Seeking exposure to an actively managed portfolio of equity securities of issuers involved in the marijuana industry

Do not need a steady source of income from their investment

Willing to accept a high degree of risk

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Our Innovative Suite of ETFs: Index-Based

FIRST IN CANADA

FIRST IN CANADA

FIRST IN CANADA

FIRST IN CANADA

Evolve Automobile Innovation Index ETF

Evolve Cyber Security Index ETF

Evolve Innovation Index ETF

Quarterly Rebalancing Management Fee: 0.40%

Quarterly Rebalancing Management Fee: 0.40%

Evolve North American Gender Diversity Index ETF Annual Rebalancing (with Quarterly Reviews) Management Fee: 0.40%

Quarterly Rebalancing Management Fee: 0.40%

Sphere FTSE Canada Sustainable Yield Index ETF

Sphere FTSE Europe Sustainable Yield Index ETF

Semi-Annual Rebalancing

Semi-Annual Rebalancing

Sphere FTSE Emerging Markets Sustainable Yield Index ETF Semi-Annual Rebalancing

Management Fee: 0.45%

Management Fee: 0.50%

Management Fee: 0.54%


Our Innovative Suite of ETFs: Actively Managed

Evolve US Banks Enhanced Yield ETF

Evolve Global Healthcare Enhanced Yield ETF

Evolve Marijuana ETF

Evolve Blockchain ETF

Semi-Annual Rebalancing

Quarterly Rebalancing

Evolve Funds Group Inc.

Evolve Funds Group Inc.

Management Fee: 0.45%

Management Fee: 0.45%

Management Fee: 0.75%

Management Fee: 0.75%

Evolve Active Core Fixed Income ETF

Evolve Active Canadian Preferred Share ETF

Evolve Active US Core Equity ETF

Evolve Active Short Duration Bond ETF

Foyston, Gordon & Payne Inc.

Foyston, Gordon & Payne Inc.

Nuveen Asset Management, LLC

Nuveen Asset Management, LLC

Management Fee: 0.45%

Management Fee: 0.65%

Management Fee: 0.70%

Management Fee: 0.70%


Portfolio Positioning

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MARKETING RESOURCES Quarterly Calls & Webinars

Newsletters

Press & Media

Factsheets

Infographics, Videos & Podcasts

Monthly Commentaries 17


THANK YOU

Invest Better. evolveetfs.com

Evolve Marijuana ETF (SEED)  
Evolve Marijuana ETF (SEED)