A F F I N O R G R O W E R S , I N C .

Transcription

I N C .
Affinor Growers: Patented Technology to Solve the Global Food Supply Crisis
Affinor Growers, Inc.
BUSINESS DESCRIPTION
Address:
410 Saint Nicolas
Suite 236
Montreal, QC H2Y 2P5
Canada
Affinor Growers (“RSSFF” or the “Company”) is a diversified agriculture and biotechnology
Phone:
514-947-2272
G R O W E R S ,
Website:
www.AffinorGrowers.com
A F F I N O R
Status:
Public: (OTCQB: RSSFF)
Key Financial Data
Key Contacts
Chief Executive Officer:
Sebastien Plouffe
company that is committed to solving the world’s food security problems with proprietary
growing and cultivating systems capable of producing fresh, non-GMO delicious foods and
nutraceutical / medicinal foods without pesticides or dangerous chemicals with near zero
water waste. Affinor leveraged its expertise and experience to industrialize and automate a
profitable system, which mass produces high quality, in-demand produce and pharmacy grade
plants for global distribution. The Company has developed a diversified business model, with
multiple revenue streams by focusing on the development of growing technologies that span
both the traditional agriculture and cannabis industries. Through its recent acquisitions, the
company has also built indirect exposure to the cannabis industry, becoming the first
Canadian company to legally grow and sell cannabis within the United States.
Chief Financial Officer
Pierre C. Miron

Chief Operating Officer
Jarrett Malnarick
R&D based on predecessor systems, prototypes, and significant third party validation. A
Market / Industry Snapshot
24,000 acres of farmland. In addition to the normal vertical farming advantages, the Affinor
Industry:
Agriculture
System yields an estimated 30% reduction in space required to produce the same output.
Sectors:
Organic Food
Market Size:
2013: $33.8 Billion
2018E: $66.2 Billion
Financial Snapshot
2013 Revenue: NM
2013 EBITDA: NM
2014 Revenue: NM
2014 EBITDA:NM
Balance Sheet
Validated Vertical Farming Advantage. Affinor designs and builds innovative, fully
sustainable and complete vertical growing solutions which are the result of over 12 years of
vertical farm of one square block, 30 stories high could produce the same amount of food as

Leading Technology and Valuable IP. Affinor’s patented and patent pending
technology positions the company like no other in the vertical farming industry. Affinor
can offer software driven growing solutions that produces high quality products at a
fraction of the price. Traditionally, the commercial horticultural and agricultural growth of
plants has been carried out in nurseries and greenhouses, where the plants are arranged
horizontally and are stationary. Traditional "vertical farming" includes methods of growing
plants using a central light source in which rows of plants are rotated to increase productivity,
however, harvesting product can be complicated and time consuming. Affinors’ vertical
growing technologies use and control precise combinations of light, temperature, water, and
nutrients to create specific growing conditions that result in optimum crop production with
maximum product quality and shelf-life. The flexibility of the system enables Affinor to produce
a diverse number of high quality agricultural products.

Large Market Opportunity. The global food system will experience a food security crisis
Current Assets: $2.45M
Current Liabilities: $0.19M
Total Liabilities: $0.19M
Shareholders’ Equity: $3.14M
over the next 40 years. On the demand side, global population size will increase from nearly
Trading/Stock Price
is able to grow grade A1, non-GMO crops year-round without chemicals or pesticides.
Stock Price (12/2/14): $0.16
52-Wk.High/Low:$0.88-$0.14
Avg. Daily Volume: 27,034
Market Cap: 11.0M
Float: 64.88M
Shares Outstanding: 79.89M
seven billion today to eight billion by 2030, and probably to over nine billion by 2050, requiring
global food production to increase by 70%. Affinor’s proven technology can help to solve
global food security and food shortage by utilizing automated, software-driven technology that

Diversified Business Model. Affinor Growers Inc. has diversified its business model
through multiple revenue streams by focusing on the development of growing technologies
that span can be used for a wide variety of products and industries, such as leafy green,
natural health products, flowering fruits, and cannabis.
This report is published solely for information purposes and is not to be construed as investment advice or as an offer to sell or the
solicitation of an offer to buy any security in any state. See Important Disclosures on back page of this report.
Broker dealer services provided through Pickwick Capital Partners, LLC. Member FINRA/SIPC.
December 2014
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TABLE OF CONTENTS
EXECUTIVE SUMMARY ..................................................................................... 4
THE COMPANY .......................................................................................................................... 4
MARKET AND OPPORTUNITY ................................................................................................. 5
COMPANY HIGHLIGHTS ........................................................................................................... 7
GROWTH STRATEGY ............................................................................................................. 11
KEY MANAGEMENT & DIRECTORS................................................................... 13
ADVISORS...................................................................................................... 15
RECENT NEWS AND PRESS RELEASES ............................................................... 17
THE COMPANY ............................................................................................... 19
PRODUCTS AND TECHNOLOGY OVERVIEW ...................................................... 22
PATENTED TECHNOLOGY ...................................................................................................... 23
CASE STUDIES ................................................................................................ 26
PROBLEM CROP SOLUTION – STRAWBERRIES ................................................................... 26
BUSINESS MODEL .......................................................................................... 37
SALES AND MARKETING ................................................................................. 39
OPERATIONS ................................................................................................. 41
RESEARCH AND DEVELOPMENT ...................................................................... 42
COMPETITION ............................................................................................... 46
SELECTED FINANCIAL DATA ............................................................................ 48
BALANCE SHEET ..................................................................................................................... 48
INCOME STATEMENT .............................................................................................................. 49
STATEMENT OF CASH FLOWS............................................................................................... 50
WEBSITE ........................................................................................................ 51
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EXECUTIVE SUMMARY
THE COMPANY
Affinor Growers (“RSSFF” or the “Company”) is a diversified agriculture and biotechnology
company that is committed to solving the world’s food security problems with proprietary growing
and cultivating systems capable of producing fresh, non-GMO delicious foods and nutraceutical /
medicinal foods without pesticides or dangerous chemicals with near zero water waste. Affinor
leveraged its expertise and experience to industrialize and automate a profitable system, which
mass produces high quality, in-demand produce and pharmacy grade plants for global distribution.
The dramatic rise in global food prices has created a ‘perfect storm’, which has made global food
and nutrition security one of the preeminent challenges facing society today. The most common
method of tapping into this market is with greenhouses. Unfortunately, this is a solution with high
fixed costs and high variable costs. Due to the harsh winters and the encroachment on prime
agricultural land, there is no realistic way for greenhouse growers to rapidly scale their operations
to service all major urban markets. Affinor’s management team has been actively creating and
developing new methods and processes to grow high-quality in-demand crops such as lettuce,
strawberries to help solve food security problems as consumption continues to increase while
traditional agriculture production decreases, creating a reliable and existing demand for Affinor's
products.
Headquartered in Montreal, Quebec, Affinor has introduced new patent pending vertical farming
technology to the agriculture industry, positioning the Company to become a major food producer
in Canada and the United States. All of Affinor’s vertical growing technology can be used for a wide
variety of products and industries.

Leafy Greens – traditional lettuce, spinach and herbs with quick growth cycles and
superior shelf life.

Natural Health Products – over the past few decades, the world has witnessed the
explosive growth of a multi-billion dollar nutraceutical industry – food and food products
providing health and medical benefits. Example crops that can be exploited using
Affinor's technology include: alfalfa, aloe vera, peppermint, ginger, sage, arina.

Flowering fruits – Affinor’s proprietary pollination process allows crops like strawberries
and other flowering fruits requiring pollination to be grown vertically.

Cannabis – seed to flower quickly, under controlled conditions to produce maximum
yields, high quality marihuana in a safe secure location using specific technology.
It is the mission of Affinor Growers to be the world-wide technology and market leader in creating
and commercializing the most economical vertical farming technologies that use the least possible
resources (e.g. land, water, and energy resources) to produce the highest quality pesticide-free
produce year-round.
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MARKET AND OPPORTUNITY
Global agriculture and food production are facing multiple pressures. Experts often believe the
main challenge of global agriculture often is feeding a growing population, which is expected to
increase from seven billion people today to approximately nine billion in 2050. As a result, The
United Nations Food and Agriculture Organization estimates that food production must increase by
70 percent over the next forty years to satisfy increasing demand. The primary factor driving the
population growth is urbanization, where the number of cities over 1,000,000 people experienced
the fastest growth in the developing world. Billions of people already moved from rural areas into
rapidly growing urban cities, and billions more are expected to make this transition over the next 40
years.
Specifically in North American, the last 50 years have brought a major cultural shift that has
removed consumers further and further away from their food sources. U.S. Census data showed
around 80% of Americans living in urban areas, while the Mexican Household Survey conducted
by Harvard School of Public Health found that in the last forty years, the number of Mexicans living
in urban areas rose from 51 percent to 74 percent. According the Canadian Geographic, two-thirds
of the entire population of Canada lives in one of eight urban environments.
At the same time, there is limited opportunity to expand the land used in agricultural production,
while facing an increasingly hostile environment due to climate change and diminishing resources.
From mechanized feedlots to automatic irrigation systems to agricultural machinery, North
American agriculture has become increasingly industrialized, placing ever-greater demands on
fossil fuel, water and topsoil resources.
Water around the world is becoming scarcer and contaminated while groundwater is becoming
more polluted by agricultural runoff and other toxins. Irrigating crops uses 70% of all available fresh
water on Earth, and rates of water extraction for irrigation are exceeding rates of replenishment in
many places According to the US Geological Society, the amount of ground water drawn for use in
irrigation has tripled since the 1950s. Additionally, this water — after being contaminated with
pesticides, herbicides, fungicides, and fertilizers — seeps into rivers, streams, and aquifers and
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causes salinization of once arable land; this toxic runoff is responsible for more ecosystem
disruption than any other kind of water pollution. While water resources are not permanently finite,
they do have limits. Climate models also suggest that rainfall may become less predictable and
dependable.
While in the past the industry has been able to expand agricultural croplands in order to meet
increased demand for food, viable land for expansion is rapidly running out. The amount of arable
land available for each person has dropped from 1 acre in 1970 to half an acre in 2000 and will be
one third of an acre by 2050. 25% of the world's land is now highly degraded, with soil erosion,
water degradation and biodiversity loss. Another 8% is moderately degraded, while 36% is stable
or slightly degraded and 10% is improving. The rest of the Earth's surface is either bare or covered
by inland water bodies. Furthermore, climate change is creating significant pricing and demand
pressures on agriculture. The recent report on future food pries commissioned by Oxfam,
estimated that under normal circumstance, food commodity prices are likely to increase about 50
percent between now and 2030. If estimates of climate change are factored in, food prices could
be up to 100 percent higher.
The environmental challenges posed by agriculture are huge, and they will only become more
pressing as we try to meet the growing need for food worldwide. This has created a massive
opportunity to leverage technology that allows producers to bypass these challenges, such as
vertical farming.
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COMPANY HIGHLIGHTS
 Market Penetration
Affinor's advanced technologies in vertical farming methods will allow quick market penetration due
to Affinor's crops and products being strategically selected and in demand to help solve food
security problems.
Over the next 40 years, world population is expected to swell to 9 billion people. The United
Nations’ Food and Agriculture Organization predicts that in that time global food production will
need to increase by 70 percent in order to prevent massive famine. Simultaneously, producers
must learn to cope with changes in climate, intensification of floods and droughts, depletion of
resources, and dramatic political shifts. Meeting the coming demand for food will mean addressing
these large challenges that threaten the future of conventional agricultural production and food
security worldwide. Therefore, the market's demand for local, reliable, sustainable food supply is
high with no current solution. Affinor's organic and locally grown products will be pesticide free, non
GMO, growing organically and locally, allowing the Company to penetrate the fresh food retail
market quickly to meet this demand and provide superior products at competitive pricing. Public
sampling of Affinor’s products have resulted in 100% positive feedback, causing many retailers
already inquiring about purchasing products. Furthermore, Affinor has already potential
partnerships and strategic alliance with national retail distributors with plans to purchase and
distribute all products Affinor will produce.
 Vertical Farming
By utilizing vertical farming, Affinor has created many competitive advantages compared to
traditional growing methods, such as:

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

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
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Year-round production anywhere in the world and on land otherwise not suitable for food
production,
Mechanical pollination as bee shortages continue to grow as an issue,
Increased yield per square foot of land estimated to be 10 to 15 times depending on the
crop. A vertical farm of one square block, 30 stories high could produce the same amount
of food as 24,000 acres of farmland.
Significantly reduced growth-cycle due to optimal lighting, nutrition and air flow,
Dramatically reduced spoilage and extended shelf life estimated at up to 100% depending
on the crop – a large competitive advantage for distributors, retailers and a significant
benefit to customers,
Greatly reduced shipping (e.g. most spinach sold in Ontario is imported and shipped over
2,000 miles from California),
Minimized environmental impact in terms of water use, land, and power,
Eliminating the use of pesticides and other chemical inputs, other than organic-based
fertilizer,
Improved market-based pricing with consistently available local product, and
Reduced capital requirements in terms of expensive to maintain large scale farming
equipment.
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 Optimal Return on Investment
Affinor has optimal “return on investment” by focusing on a business model by minimizing capital
coast which translates into superior value for everyone in the value chain, for example:
The cost of land: it generally does not make sense to build vertical farms in premium retail
or downtown space. There are vast amounts of less expensive land in areas close to city
centers, including environmentally contaminated sites that are well suited to vertical farming.
Labor: intelligent automation reduces labor by up to an estimated 70% over competing
vertical farming systems,
Waste: The amount of produce typically thrown away by a retail store can be as high as
30%. The consumer can also throw away a large portion because it likely only lasts a few
days. The Affinor's system was designed to produce the highest quality products with the
longest shelf life and best flavor. Importantly it reduces hard costs and increases value
making it a preferred product of retailers and consumers, even at top end prices.
Electricity: intelligent automation optimizes the impact of light on the growth cycle and
improving the quality of the product. The use of alternative energies such as wind and solar,
combined with recent advancements in energy storage can further increase efficiencies.
 Disruptive Technology
The company plans to become a major grower using an integrated system of automated vertical
farming techniques and cloning technologies. Affinors’ vertical growing technologies, use and
control precise combinations of light, temperature, water, and nutrients to create specific growing
conditions that result in optimum crop production with maximum product quality and shelf-life. The
Affinor system can be used to produce a number of high quality agricultural products including
herbs, lettuce, spinach, and plants that require pollination such as strawberries.
This disruptive approach ensures quality controlled plant reproduction in a way unmatched by
traditional seeding, together with a controlled environment that removes the need for all the
chemicals the market is trying to escape. In addition, their vertical layering system greatly
increases yield per land footprint, while minimizing the effects of weather and location. As such it is
designed to promote job creation and food sustainability in previously remote and unproductive
areas of the world, and even promises zero water waste.
Affinor’s patented technology positions the company like no other in the vertical farming
industry. Affinor can offer software driven growing solutions that can produce high quality,
organically grown products at a fraction of the price than traditional growers in any location.
Significant advantages of the Affinor system, over what has previously been considered to be
the market leading system, include:

Optimized and automated air flow, temperature and CO2 at every vertical level
allowing plants to breath properly and more rapid and proper tissue development,
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
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An estimated 60-70% estimated labor advantage using
Reduced risk related to watering times due to unique irrigation systems,
Dramatically improved lighting design for faster growth and significantly higher yield,
An estimated 25-35% reduction in equipment costs by mass producing components,
An estimated 30% reduction in space required to product the same output,
A patent-pending pollination technology allowing Vertical Designs facilities to grow
crops like strawberries that require pollination (e.g. by bees).
 Good Manufacturing Practices Standards
Good manufacturing practices (GMP) are the practices required in order to conform to guidelines
recommended by agencies which control authorization and licensing for manufacture and sale of
food, drug products, and active pharmaceutical products globally, and within North America. GMP
guidelines provide minimum requirements that producers must meet while manufacturing food or
food products, in order to assure that the products are of high quality and do not pose any risk to
the consumer or public and are safe for distribution.
Affinor’s GMP's are developed in collaboration with horticulturalists, compliance managers and
engineers. The GMP followed by Affinor will include information on how to produce food and food
products safety with zero water waste and zero pesticides using an organic medium. All analytics
will be tested to comply with food labelling standards, the Canadian Food Inspection Agency, the
Food and Drug standards or FDA in alignment with Standard Operational Procedures applicable
for each of Affinor’s equipment, product being cultivated and / or facility.
 Diversification through Acquisition
Affinor Growers Inc. has diversified its business model by developing growing technologies that
allow multiple revenue streams, in both the traditional agriculture and cannabis industries. Through
its recent acquisitions, the company has also built indirect exposure to the cannabis industry,
becoming the first Canadian company to legally grow and sell cannabis within the U.S. To
accomplish this, the company has been extremely active in executing the acquisition strategy.
Affinor’s recent acquisitions include:

On September 23, 2014 Affinor concluded an agreement with Herbal Analytics, a
Washington State testing laboratory, to provide quality control for cannabis products. Herbal
Analytics has the staff, instrumentation, and procedures necessary to comply with the
scope of tests that Washington State requires for SI502 quality control of Cannabis and
associated derivatives. Under the terms, Affinor Growers paid $150,000 cash, $150,000 in
a repayable loan over a maximum of 4 years and issued 949,612 of Affinor common shares
at $0.516 per share for 49%. The proceeds will be used to build the laboratories to meet the
demand and handling the volume necessary of SI-502 and medical clients in Washington
State, including, but not limited to, the equipment, employee salaries, marketing, sales and
regular business needs.
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
On September 24, 2014, Affinor concluded an agreement to acquire a 49% interest in
Affinor Growers LLC ("Growers”), a medical Marijuana dispensary and grower located on
the Olympic Peninsula in Washington State. Affinor Growers LLC is a Marijuana growing
operation, which has brought serious attention to the Port of Willapa Harbor, an area that is
set to mature with the new marijuana industry. Growers has been fully operational and in
May 2014, Affinor signed a letter of intent to acquire an interest in the company founded by
Robert Montoure. Affinor shall invest US$600,000 to improve the existing facility and bring it
up to the strict standards required by the Washington State Liquor Control Board for
growing and dispensing marijuana.
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GROWTH STRATEGY
Affinors’s management has created a growth strategy that has been effectively used in the past to
build and grow strong companies across a broad spectrum of industries and includes a growth
platform of market penetration, market expansion, product expansion, diversification and
acquisition.
 Market Expansion
While Affinor's immediate plan is to rapidly penetrate the North American urban retail produce
market with all natural healthily fresh food products through strategic distribution partnerships with
Mastronardi Produce and potentially with Loblaw's, Choices Markets and others, the Company’s
current plans and discussions include:
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Local rural communities throughout North America that are reliant on importing all or most
food products. Affinor is currently in talks with large First Nation bands across North
America to bring viable solutions to all communities in need.

Extreme climates and growing conditions. Affinor has been approached to help meet the
demand for local food production in arid conditions including Arizona, Nevada and Texas.
Worldwide interest includes Dubai, Arab Nations, Mexico, Colombia, Peru, Chile, Israel,
Central Africa and South American Countries.

Market expansion also includes difference distribution channels and product use. Affinor
will actively develop the market for frozen products and high volume processing
opportunities with its products.
 Product Expansion
Affinor's technology and growing methods will allow them to expand and develop multiple products.
The Company’s starting focus will be the commercialization and production of high grade June
Bearing Strawberries and leafy greens including lettuce, spinach and herbs.
The Company’s current Product expansion and development opportunities include:

Supplying the nutraceutical markets - various plants and vegetables have nutraceutical
compounds that can be grown in high volumes and extracted for use.

Supplying the pharmaceutical markets - various plants and vegetables have pharmaceutical
compounds that can be grown in high volumes and extracted for use.
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 Execute on Current Business Pipeline
Affinor Growers plans to implement its growing technologies for its own production in its recently
purchased 45-acre agricultural property in St. Chrysostome, Quebec, Canada. The high
percentage of annual sunlight coupled with its proximity to national produce distributors and NY
State border makes it a prime location for industrial greenhouses to operate. At the location, the
company plans to build a state-of-the-art strawberry growing facility that leverages the robust and
growing demand for strawberries to create jobs and long-term shareholder value. These efforts
reflect management's long-term plans to become leaders in redefining the agricultural industry with
its innovative growing technology that involves zero water waste, no pesticides, and guaranteed
production.
Future opportunities in traditional agriculture could include previously announced strawberries and
romaine lettuce, as well as other crops experiencing global shortages, such as kale. By addressing
these food shortages with rapid growing of high quality crops, the company aims to solve some of
the key industry supply issues, while enabling growers to cut prices and/or improve their margins.
Affinor has targeted Quebec as a prime location to start growing strawberries.
 Strategic Acquisitions
The agriculture industry is very fluid and dynamic, creating many M&A opportunities for Affinor
to drive “inorganic” growth through strategic partnerships and acquisitions. As a public
company, Affinor has the added advantage of a publicly-traded equity that can be used as
consideration for these strategic initiatives.
Affinor has identified potential acquisition candidates with vertical integration synergies in the
agriculture industry, resulting in new markets, advertisers and revenue streams for Affinor. As
a result, Affinor expects to be able to generate operational efficiencies by sharing best
practices across the portfolio, while leveraging size and scale. The management team
evaluates acquisition candidates on a macro and micro economic basis valued at multiples
below a future consolidated multiples.
Affinors has created an acquisition strategy which includes the following:
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Strategic companies that can provide increase sales, profitability and align with the
core values and direction of Affinor that increases market penetration, diversification or
expansion.
Technology and IP that can enhance our growing processes and systems allowing
product diversification and market expansion.
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December 2014
KEY MANAGEMENT & DIRECTORS
Sebastien Plouffe | President & CEO
Mr. Plouffe graduated in 1994 with a bachelor’s degree in Business Administration with honor
(B.A.A.) from the Ecole des Hautes Etudes Commerciales (H.E.C.-Montreal). Former successful
VP Senior Investment Advisor from 1995 to 2003 with such as the Canadian brokerage firm Nesbitt
Burns and Canaccord Capital, for which he achieved the Chairman’s Club level. Since then he cofounded and financed various private and public companies in different sectors and get specialized
internationally. He’s fluent in French, English and Spanish. Mr. Plouffe dedicates all his time for the
success of Affinor and is presently building a very solid team of experts and management in order
to become the leader in agriculture vertical farming. Through the years he has built and developed
a huge recognition on management skills in different sectors and difficult areas, which shall be key
and helpful for the success of Affinor.
Pierre C. Miron | Chief Financial Officer
Mr. Miron worked over 25 years in the International audit and financing department of the banking
industry, including International Auditor and Administrative Director with Scotia Bank, Banking
Manager at TD Bank, Portfolio Manager and Account Director at National Bank and Director Major
Account at the Caisse Centrale Desjardins. He also worked as CFO with private and public
companies in different sectors such as technology, real estate management and franchise industry.
Throughout his career Mr. Miron has often acted as a consultant, advising companies in their
growth and M&A, which helped him to develop strong management and financial skills. Mr. Miron
has held a bachelor degree in Business Administration from École des Hautes Études
Commerciales.
Jarrett Malnarick | Chief Operating Officer
Jarrett Malnarick ran his own successful consulting company for over 10 years assisting
companies with acquisitions, product development, design costing and ROI analysis,
organizational budgets, developmental funding through grants and tax credit programs, new facility
process planning, quality engineering and product regulatory compliance to Health Canada and
international standards through the design and implementing operational systems. He originally
worked with Vertical Designs Ltd. as a consultant and later joined their team in 2011.
Jarrett Malnarick has held a number of executive positions and has earned a Bachelor of Science
from the University of Victoria.
Colin Wiebe | Marketing Director
Colin Wiebe has over 25 years’ experience as a Creative Director and marketing professional.
Colin began as a graphic artist and illustrator for the Vancouver Sun and The Province newspapers.
He quickly became the Creative Director of advertising for both papers working on projects such as
the Vancouver Sun Run, The Province Golf Classic, The Molson Indy plus continuous promotions
for the BC Lions and the Vancouver Canucks and many more. He worked with the Pacific Press
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December 2014
team which pioneered the digital advertising methods adopted by many major daily newspapers
around the world. Colin foundedFastcreative.com, the world’s first virtual marketing department,
and has worked with a variety of clients ranging from pro audio, insurance, digital online
advertising, banks, entertainment, public companies, non-profits and many others. Colin is an
experienced copywriter, designer and direct marketing specialist and brings his unique knowledge
of web development, lead generation and marketing strategies to the Affinor team.
Nick Brusatore | Chairman
Nick Brusatore is known globally for being a top designer and leader in vertical farming technology.
He was the Chairman of the Applied Research Committee for BCIT for several years and was
nominated for the AGRI Award of Excellence for Canada in 2012. Nick was a keynote speaker at
the International Conference on Marihuana in New York City and the moderator in San Francisco
and regularly sits on discussion panels as an expert in this industry. Nick is the original designer of
Terrasphere Systems started in 2001 and currently the major shareholder and designer of Vertical
Designs Ltd started in 2010. Nick brings over 14 years’ experience in AGRI Designs, plant
physiology and the manipulation of metabolic pathways to achieve organic chemistry. No current
expert or company compares to Brusatore or his ability. It will be hard to compete with the quality
and depth of knowledge to automate, industrialize and drive the marihuana markets in Canada and
the USA. Nick recently worked in the Biotech sector growing transgenic Tobacco for a large
pharmaceutical giant as well as transgenic Safflower to create insulin’s for medical use
Dr. Alan R Boyco | Independent Director
Alan R Boyco B.Sc., O.D. is a practicing Optometrist in Coquitlam, British Columbia with his
expertise focused on anterior segment / glaucoma. Dr. Boyco is a member of the NHLTPS
“National Hockey League Team Physicians Society” and the Official Optometrist to the Vancouver
Canucks and Rogers Arena. He is also the Official Optometrist to the B.C. Lions and B.C. Place
Stadium and the Official Optometrist to the Vancouver Giants and Pacific Coliseum. Dr. Boyco has
a Bachelor of Science (Biology & Psychology) From the University of Alberta and is a graduate of
the Pacific University School of Optometry. He appears on morning television as authority Eye
specialist in a segment called "Eyes of Vancouver".
Jeff Sopatyk | Independent Director
Jeff Sopatyk is a prominent Saskatchewan farmer and select seed grower. For the past 35 years,
Mr. Sopatyk has been farming in the Saskatoon, Saskatchewan area. Mr. Sopatyk has a diploma
in Agriculture from the University of Saskatchewan. Twenty years ago he established a commercial
seed growing business as a pedigree and Select Status seed grower. He has been growing a wide
array of seed crops including wheat, canola, barley, lentils, peas, hemp, and Faba beans on his
7,000 acre farm. He also has cooperated with several researchers from the U of S over the years
with on farm research, focusing on environmental issues, germ plasm trials, inoculants, fertilizers,
and plant breeding programs. For several years, Mr. Sopatyk was a director of the Saskatchewan
Pulse Growers Association as well as a Director of Pulse Canada.
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December 2014
ADVISORS
Dr. Sazzad Hossain
Sazzad has more than 20 years of academic and industrial experience in new drug discovery,
natural health product development. He was Group Leader and Senior Scientist at Bio-technology
Research Institute of National Research Council Canada, Government of Canada’s prime
biotechnology research organization where he set up pharmacology laboratory to evaluate safety
and efficacy of new drugs under development in the areas of cancer, cardiovascular and ocular
diseases. Prior to joining the National Research Council Canada, he was at Xenon
Pharmaceuticals in Vancouver, B.C, where was Associate Director of Pharmacology and led
pharmacology teams targeting pain, inflammation and cardiovascular diseases. Sazzad received
his PhD in Biology from Moscow State Academy of Veterinary Medicine & Biotechnology and
received post-doctoral training in the Department of Nutritional Science and Department of Medical
Genetics of University of British Columbia. He was associate professor of pharmacology at Federal
University of Minas Gerais, Brazil between 1988-1996. He is the author of more than 40 peerreviewed papers, primarily in the pharmacology, genetics and nutritional sciences.
Dr. Hyder A. Khoja
Dr. Hyder A. Khoja’s industrial experience spans from initiation, operation, advising and
contribution towards developing several Research and Technical proposals including: Renewable
resource, Biofuels & Feed-stock, Agri-Food Safety, Sovereignty & Security, Agri-Land
Management, Field Exploration, Hydroponics, Breeding & Genetics for medicinal plant compounds
based on geographically isolated strains and their cyto-morphological studies, Herbal Drugs
Development focusing on Natural Health Products from Plant extracts. In past, he held several
senior advisory roles where he dealt business and research operations. He successfully led multidisciplinary teams from (professionals-biologists, engineers, planners and scientists) at different
organizations which resulted in consistent delivery of a broad range of products in a timely fashion.
His work was also shortlisted for US-DOE multi-million dollars grant. While working with a team of
experts; he built a foundation of strong cross-functional skills including Research & Business
development. Dr. Khoja holds a Ph.D., in Cellular & Molecular Biology from the INP-ENSA
Toulouse, France and Post-Doctoral training from Michigan State University. Later, he served as a
Faculty for Virginia-Tech, University of Wyoming, and Texas-Tech respectively; where he
demonstrated an “Out-of-Box” approach for R&D. His work was presented many times in
government and academia and was recognized by the United Nation's-FAO Environment & Natural
Resources Management. Most prominently, he has an authorship in over 18 peer-reviewed papers.
Andrew Riseman
Andrew Riseman, Ph.D. an influential UBC Senator and Associate Professor of Plant Breeding and
Genetics to its advisory board. Dr. Riseman is in the Applied Biology Program within the Faculty of
Land and Food Systems at UBC. His areas of expertise include plant breeding, genetics, cultivar
development, agroecology, organic production, sustainable production systems, and horticultural
and agricultural technologies. Dr. Riseman is also the Academic Director, Centre for Sustainable
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December 2014
Food Systems (CSFS) and the co-chair of the CSFS Steering Committee. He earned his Ph.D.
from The Pennsylvania State University and has strong interests in Community Based Action
Research (CBAR) and the Scholarship of Teaching and Learning (SoTL).
Thomas Baumann
Thomas Baumann is a member of the North American Strawberry Growers Association, the
American Society of Horticultural Sciences and current Director of the Pacific Berry Resource
Centre at UFV to its advisory board. Thomas Baumann taught at the UBC Department of Plant
Science in Small Fruit Culture, Tree Fruit Culture, Vegetable Production, and Protected Culture
(Greenhouse) and continued as Sessional Lecturer at UBC as well as Kwantlen University College.
He is a Professor at the University of the Fraser Valley, Agriculture Technology Department, for
Vegetable, Fruit, Greenhouse, Pest Management, Nursery Production and Propagation,
Introduction to Computers, Advanced Computer Training and Introduction to Horticulture Lab,
responsible for a modern range of greenhouse research and teaching facilities. He is also a
member of UFV Senate, Chair of the UFV Senate Awards and Honors Committee, and a member
of the Senate Appeals Committee.
Rick Easthom
Rick Easthom's previous experience as Director of Corporate Brands for the Overwaitea Food
Group, and Manager of Retail Development for Choices Markets, will give Affinor Growers an
instant advantage in the merchandising and distribution its products. Mr. Easthom has extensive
grocery retail experience. He is an authority in developing products, packaging, launching and
merchandising them at retail while maximizing sales and profit. He has a comprehensive
background in management and brings superior skills as an analyst, negotiator and planner. Rick
has the unique ability to lead and direct merchandising teams. As Director of Corporate Brands for
Overwaitea, he used his people skills and his negotiating talents to develop a dynamic team that
created new products to meet changing market demographics and improve on old products by repackaging. These changes and his new team focus, helped to deliver exceptional increases in
sales and profit.
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December 2014
RECENT NEWS AND PRESS RELEASES
Affinor Growers
December 2, 2014
Engages Pierre C. Miron as VP Finance,
CFO, & Director,
Affinor announced that it has engaged Pierre C. Miron as VP Finance, CFO & Director.
Affinor Growers Engages Secure Strategy Group, December 1, 2014
Affinor announced that it has engaged Secure Strategy Group for financial and corporate
advisory services.
Affinor Growers Announces Select Seed Grower Jeff Sopatyk to Board of Directors,
November 20, 2014
Affinor announced Jeff Sopatyk, a prominent Saskatchewan farmer and select seed grower,
has been appointed to Affinor's Board of Directors.
Affinor Growers Receives an Exclusive 5 Year Purchase Order from Mastronardi
Produce for Strawberries, November 5, 2014
Affinor announced that it has received an exclusive purchase order from Mastronardi Produce,
a leading North American greenhouse vegetable company for all strawberries grown by Affinor
at the facility in St-Chrysostome, Quebec.
Affinor Growers Signs LOI with North Country Natural Solutions LLC in New York State,
November 4, 2014
Affinor announced that it has signed a Letter of Intent with North Country Natural Solutions
LLC and Iroquois Consulting Group LLC for a proposed Joint Venture in the agricultural
business.
Affinor Growers Signs NHL Veteran Georges Laraque for Business Developme nt in
Quebec, November 3, 2014
Affinor announced that 13-year, NHL veteran, Georges Laraque, will join the Affinor team for
business development and to endorse their healthy products, including strawberries.
Affinor Growers Signs Definitive Agreement to License Vertical Growing Technology to
GeoNovus, October 23, 2014
Affinor announced that it will sub-license its patented, food growing technology licensed from
Vertical Design Ltd. previously announced on October 22, 2014, to GeoNovus Minerals Corp.
giving them access to the agricultural market place.
Affinor Growers Signs Exclusive Licensing Agreement with Vertical Designs Ltd.,
October 22, 2014
Affinor announced that it has enter into an Exclusive Patent License Agreement with Vertical
Designs Ltd. to become the commercial licensor of VDL patented, food growing technology on
a worldwide territory excluding only Ontario, Alberta and the Maritimes.
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December 2014
Construction Permit Approved to Build Strawberries Greenhouse in Saint -Chrysostome,
Quebec, October 16, 2014
Affinor announced that the City of St-Chrysostome, Quebec, has approved the construction of
the Strawberries Greenhouse on Affinor property in the Province of Quebec.
Affinor Growers Announces Licensing LOI with Herbal Clone Bank Canada Inc. , October
14, 2014
Affinor announced that Herbal Clone Bank Canada Inc. have entered into a letter of intent to
license a new designed automated vertical cloning machine technology from Affinor.
Affinor Growers Closes Acquisition of Vancouver Rooftop Growing Facility and
Intellectual Property, September 11, 2014
Affinor closed the deal of previously LOI announced on July 11, 2014 and acquire all the
assets of 0993341 "BC" Ltd related to the operation of the Vancouver rooftop growing facility,
located at 523/535 Richards Street, in Vancouver BC.
Affinor Growers Partners with Herbal Analytics for Cannabis Quality Control in
Washington State, September 9, 2014
Affinor signed an agreement with Herbal Analytics, a Washington State testing laboratory, to
provide quality control for cannabis products. Under the terms, Affinor Growers paid $150,000
cash, $150,000 in a repayable loan over a maximum of 4 years and issued 949,612 of Affinor
common shares at $0.516 per share for 49%.
Former CEO of Medbox, Dr. Bruce Bedrick, Joins Affinor Growers as a Consultant ,
September 2, 2014
Affinor announced that former Medbox Inc. CEO and founder of Kind Clinics Medical
Marijuana Dispensaries will be providing consulting services to the Company.
Affinor Growers Announces DTC Approval, August 20, 2014
Affinor announced that the common shares of the Company have been made eligible for bookentry delivery and depository services of The Depository Trust Company to facilitate electronic
settlement of transfers of its common shares in the United States.
Affinor Growers Closed 49% Acquisition of Good to Grow in Washington State, August 5,
2014
Affinor announced the acquisition of a 49% interest in Good to Grow LLC, a medical Marijuana
dispensary and grower located on the Olympic Peninsula in Washington State.
Affinor Growers Completes 45-Acre Land and Facilities Acquisition in Quebec to
Produce Strawberries, July 21, 2014
Affinor purchased 45 Acres of agriculture property in St-Chrysostome, Quebec, for $340,000.
The Company plans to build a state-of-the-art, strawberry-growing facility in St-Chrysostome,
Quebec.
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December 2014
THE COMPANY
As food production, distribution and consumption have become a growing concern due to the
movement of populations into more urban settings. It is predicted that there will be a need to
increase overall agricultural production by 70% before the year 2050. As a result, global food
prices are increasingly becoming a significant threat to global food and nutrition security. Affinor
Growers was organized for the purpose of integrating the best of breed vertical farming equipment
with proprietary technology to create sustainable solutions for the cultivation of indoor and outdoor
agriculture. Headquartered in Montreal, Canada, Affinor was incorporated in Canada on August 27,
1996, originally as Affinor Resources, which operated as a mining company with multiple projects
in Quebec, Canada. After a change in business operations approved by the company’s
shareholders and Canadian Securities Exchange in May 2014, Affinor Resources became Affinor
Growers. The Company has leveraged the experience of its team of expert horticulturists,
engineers and scientists to industrialize and automate a profitable system to mass-produce
nutrient-rich foods, free of pesticides and chemicals.
To truly develop an industry leading vertical growing system, Affinor entered strategic partnership
with Vertical Designs ltd. (‘’VDL’’) to become the commercial licensor of patented food growing
technology on a worldwide territory excluding only Ontario, Alberta and the Maritimes. Furthermore,
this agreement provides Affinor a unique, technological advantage into the multi-billion dollar
agricultural markets. VDL's automated, software-driven technology is unique for its ability to grow
grade A1, non-GMO crops year-round without chemicals or pesticides.
Affinor offers proven technology specifically designed to help solve global food security and food
shortage issues. Affinor designs and builds innovative, fully sustainable and complete growing
solutions which are the result of over 12 years of R&D based on predecessor systems, prototypes,
and significant third party validation. The Company has developed one of the most scalable and
profitable vertical farming systems available.
The Affinor vertical growing system is essentially a controlled cultivation micro-environment,
integrating lighting, climate control, anti-mildew, anti-odor and dissolved oxygen water systems.
The system employs vertically stacked grow plots with an autonomous hydroponic nutrient delivery
system; organic, nutrient-rich fertilizer solution mixtures. The system utilizes high efficiency lighting,
with an automated-computer controlled lighting, watering and nutrient delivery cycles. The system’s
proprietary software automatically adjusts light and nutrient cycles based on plant variety and
maturity. The technology can be customized to fill the space intended for their use, which could
allow a single square foot of uncultivable desert land to subsequently become ten, fifteen or even
twenty square feet of productive space, layered on top of one other.
By utilizing Affinor’s proprietary vertical farming system, the Company and/or sub-licensees can
provide competitively-priced, locally-grown produce in large urban structures, such as warehouses
or factories, incorporating the use of concentrated production in a reduced physical footprint.
These cultivation facilities create many advantages compared to traditional farming facilities, due to
these specialized facilities being able to be located in densely-populated areas within easy reach of
consumers, resulting in dramatically reducing the costs and consequences of today's significant
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December 2014
carbon footprint. Moreover it will result in fresher produce with longer shelf-life, as well as the
technology significantly reducing, if not eliminating, the need for chemical herbicides and pesticides.
By addressing the concerns of current food security issues, the fruits and vegetables produced by
Affinor will experience increased consumer demand.
Affinor plans to become a leading supplier of produce to large retail chains by differentiating it fruits
and vegetables from other available produce and substantially lowering the shipping costs required
to transport most produce from its point of origin to point of sale. To do this, the Company plans to
acquire warehouse-type facilities in high-density strategic locations, beginning in Montreal, and
equip them with proprietary vertical farming systems to cultivate a variety of fruits and vegetables.
The technology will allow Affinor to grow fruits and vegetables with high yields using a fast growing
cycle in any location regardless of the local climate. The Company will provide consumers with a
desirable degree of food security in addition to the other benefits associated with vertical farming,
such as a reduced ecological footprint. By integrating VDL’s patented technology, the Affinor
Vertical Growing system allows for efficient production utilizing minimum space and a quick growth
system yielding maximum production per square foot. This has strategically positioned the
company to capitalize on the rapid Globalization of Growing with Vertical Farms.
As of November 20, 2014, Affinor has acquired and began building out a 45-acre food crop
growing facility in Quebec, utilizing a highly controlled and automated environment of multiple
growing layers to significantly increase yield per acre. At the location, the Company plans to build a
state-of-the-art strawberry growing facility that leverages the proprietary technology and high
growing demand for strawberries to create jobs and long-term shareholder value. The Quebec
facility is expected to begin commercial-scale sales and operations by August 2015.
What truly differentiates Affinor from the rest of the competition is its development and licensure of
growing technologies, which has diversified applications that span both the traditional agriculture
and cannabis industries. Through its recent acquisitions, the company has also built indirect
exposure to the cannabis industry, becoming the first Canadian company to legally grow and sell
cannabis within the U.S.
Affinor Growers LLC
In September 2014, Affinor concluded an agreement to acquire a 49% interest in Affinor
Growers LLC, a medical marijuana dispensary and grower located on Washington's
Olympic Peninsula for a consideration of $ 600,000. Once the Company receives the 502
license, which is expected to happen in spring 2015, Affinor will be able to mass produce
weed for Washington State's recreational users. With a market of more than 700,000 users
including out of state visitors, this provides the Company with the potential of an additional
near-term revenue stream.
Initiative 502 legalizes marijuana use in Washington, which opens the door to legal
investment in a $1 billion plus industry. Washington is one of 4 US states that has legalized
and now regulates and taxes recreational marijuana use. With the substantial tax revenues
involved, additional jurisdictions could be expected to follow suit in the future.
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December 2014
Currently, Affinor Growers LLC is fully operational with a 5,000 square foot facility. Affinor's
$600,000 investment will be used to scale it up to a state of the art production facility. The
company has been generating cash flow supplying the medical marijuana market from a
facility that is already I-502 compliant and with the granting of 502 status it will become a
major revenue generator and local employer. Part of Affinor's improvements to the facility
will be the implementation of their automated vertical farming technology, since it decreases
the time it takes to cultivate cannabis from seed to flower. Moreover, the system ensures
controlled growing conditions, which maximize the yield of each plant, while still producing
high quality cannabis.
Herbal Analytics
In September 2014, Affinor partnered with Herbal Analytics, a Washington State testing
laboratory, to provide quality control for botanical and cannabis products. Herbal Analytics
is a full service analytical and consulting laboratory for botanical quality testing and natural
product drug development. Additionally, the testing lab offers I-502 compliant quality and
safety testing for medical and recreational Cannabis products in Washington State. Herbal
Analytics leverages its management’s extensive herbal product industry experience to
integrate efficient and innovative analytical platforms, based on Bio Analytical Method
Validation, resulting in increased levels of accuracy and precision.
Under the terms, Affinor Growers paid $150,000 cash, $150,000 in a repayable loan over a
maximum of 4 years and issued 949,612 of Affinor common shares at $0.516 per share for
49%. The proceeds will be used to build the laboratories to meet the demand and handling
the volume necessary of SI-502 and medical clients in Washington State, including, but not
limited to, the equipment, employee salaries, marketing, sales and regular business needs.
With the wide range of services and extensive background in Botanical Medicine that the
testing laboratory brings, Affinor has access to critical analytical data. The Company plans
on leverage this data to create additional revenue streams through product development for
specific plant chemo types and standardization for efficacy.
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December 2014
PRODUCTS AND TECHNOLOGY OVERVIEW
Traditionally, the commercial horticultural and agricultural growth of plants has been carried
out in nurseries and greenhouses, where the plants are arranged horizontally and are
stationary. Traditional "vertical farming" include methods of growing plants using a central light
source which rows of plants are rotated to increase productivity, however, harvesting product
can be complicated and time consuming.
Affinor’s vertical growing technologies, use and control precise combinations of light,
temperature, water, and nutrients to create specific growing conditions that result in optimum
crop production with maximum product quality and shelf-life. The flexibility of the Affinor
System allows the Company to produce a diverse number of high quality agricultural products
including:
Leafy Greens – traditional lettuce, spinach and herbs with quick growth cycles and
superior shelf life using Affinor technology.
Natural Health Products – over the past few decades, the world has witnessed the
explosive growth of a multi-billion dollar nutraceutical industry – food and food products
providing health and medical benefits. Example crops that can be exploited using
vertical technology include: alfalfa, aloe vera, peppermint, ginger, sage, arina.
Flowering fruits – Affinor’s rotating design and proprietary pollination process allows
crops like strawberries and other flowering fruits requiring pollination to be grown
vertically.
Cannabis and Marijuana – seed to flower quickly, under controlled conditions to
produce maximum yields, high quality marihuana in a safe secure location using
vertical technology.
By utilizing the Company’s specialized vertical farming system, Affinor has created many
benefits compared to traditional growing methods and other vertical farming systems, such as:
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Year round production anywhere in the world and on land otherwise not suitable for
food production
Increased yield per square foot of land estimated to 10 to 15 times depending on the
crop
Reduced growth cycles
Reduced spoilage and scrap due to operational controlled conditions
Longer shelf life products
No chemicals or pesticides and other chemical inputs
No genetically modified inputs
Organically produced
Locally supplied agricultural products reducing transportation cost and reliance on
imports.
Increase harvest volumes and decrease harvest times
50% labor advantage due to extensive automation and optimized work flow.
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December 2014
PATENTED TECHNOLOGY
 Patented IP - “Method and Apparatus for Automated Horticulture and Agriculture”
Affinor licensed patents includes “Method and Apparatus for Automated Horticulture and
Agriculture” - international publication number: WO 2013/113096 A1. The patent covers A
method and system for continuous automated growing of plants utilizes production lines each
comprising a number of growth sections, each growth section comprising multiple horizontal
transport levels, each level of each section having a source of light and liquid nutrient, and
plant growing trays which move horizontally into, along and out of each transport level;
whereby each subsequent growth section has a greater length than the previous section to
receive a greater number of growing trays than the previous section so that as plants grow,
the number of plants per growing tray is decreased but the number of plants per growth
section remains constant. A group of plants is thereby broken out into an ever greater number
of trays as it proceeds through the growing sections from germination to harvest, with the
ability to simultaneously start the growth cycle for additional crops
Affinor's exclusive licensed technology includes patented IP providing a metho d and system
for continuous automated growth of plants. The technology utilizes one or more production
lines each comprising a first and subsequent growth sections, with each growth section
comprising a plurality of horizontal transport levels with each level of each section having an
independent source light and nutrient supply. The growing trays are adapted to move
horizontally into, along and out of each transport level. This technological advantage results in
each subsequent growth section having a greater length than the previous section to receive a
greater number of growing trays than the previous section so that as plants grow naturally in
the growing trays. The number of plants per growing tray decreases but the number of plants
per growth cycle remains constant.
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December 2014
The process of utilizing this technology includes:
1. Plant the first group of seeds or seedlings (Batch A) in each tray being selected
according to the type of plant, size of trays and relative number of lengths of growing
section.
2. Start and introduce first group of seeded trays (Batch A) into the first allocated growing
section - germination.
3. After germination or growth size achieved, transplant the first group of plants (Batch A)
from the first group of trays into a greater number of trays and move to the next
subsequent growing section - phase two equipment.
4. Replace the first growth trays with new seeds or seedlings (Batch B) to start the
process again in the first allocated growing section - germination.
5. Transplant Batch A plants (now completed the second stage of growth) from the
second growing area into a greater number of trays and move to the next subsequent
third growing section - phase three equipment.
6. Transplant Batch B group of plants from the first growing area (germination) in to a
greater number of trays and move to the second growing area - phase two equipment.
7. Replace the second growth trays with new seeds or seedlings (Batch C) to start the
process in the first allocated growing section - germination.
8. Repeat steps 1 through 7 until all equipment is propagated and growing at specified
cycles.
9. Once the plants in a group of trays are in the final growth section and are ready to
harvest, remove the group of trays from the final section and harvest the product - end
of phase three.
After a sufficient germination period, each tray of seedlings is broken out into the number of
trays required to fill the second stage section at that transport level. The breaking out into
additional trays and loading into the next section is done manually on scissor lifts. Once the
entire section has been loaded the plants are permitted to grow for a sufficient period of time
until it is necessary to break them out again into a greater number of trays. This is done
manually as well. Again the plants are left until they are ready to harvest, meanwhile the other
sections are filled and are growing with a new crop. Once the plants are sufficiently mature,
the trays are manually removed from each level onto scissor lift and loaded onto conveyors.
The trays are taken to the processing area where the plants are removed. Trays are then
moved to the cleaning section using washer and drier and returned to the seeding section
where they are refilled with seeds.
The technology and equipment is designed that each grow section comprises of multi-level
growing units, each independently controlled for light cycle, feeding and irrigation controlled
by a central computer so the system can be programmed for different plants having different
growth cycles, without any changes to the configuration of the installation. The technology
includes proprietary growing trays specially designed for horizontal movement on rollers within
the multi-level growing units. The growing tray has an automatic filling and draining cycle
which is regulated by specially designed bell siphon. The siphon uses a baffle having
passages of variable diameter creating a vacuum that can be selected and the timing of the fill
and drain cycle selected as necessary.
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December 2014
 Patented IP - “Method and Apparatus for Automated Vertical Horticulture and Agriculture”
The Company’s licensed patent pending for the technology and process, includes “Method
and Apparatus for Automated Vertical Horticulture and Agriculture” (patent pending, no
international publication number)
Affinor's exclusive licensed technology also includes patent pending IP providing a method
and system for continuous automated growth of plants including mechanical pollinating. The
specialty-designed equipment includes a vertical array of plant supporting arms extending
radial from a central axis. Each arm has a plurality of pot receptacles which holds the plant
seedling, nutrient and water. The potting arms are rotated beneath grow lamps and pollinating
arms. The frequency of feeding is increased as the plant grow. The micro environment can be
manipulated to favor plant growing requirements including CO2 enriched air, O2 enriched air,
temperature and humidity. Once the plants are ready to harvest, they are manually exchanged
for new seedlings and mature plants are removed. Different lighting, temperatures, humidity
and nutrition can be programmed for the different growth stages of a crop and for different
crops remotely by a central computer.
A variety of light sources can be used including light emitting diodes (LED's), high pressure
sodium lamps, metal halide lamps or incandescent light bulbs. The electrical control switches
may be programmed to provide a coordinated light cycle (photoperiod) for the plants at each
growth stage and used as supplemental light when grown within greenhouses.
In operation, seedlings and pucks are prepared in a separate location and each plant goes
through a first germination stage prior to being placed in the growing equipment. After a
sufficient germination period, and once the plants are ready to be transferred to the equipment,
a scissor lift is used to load the plant into the pot receptacles on each level of the potting arms.
One end of a conveyor is connected to the scissor lift and the plants are loaded on the o ther
end of the conveyor. The plants remain on each growing arm until they are ready to harvest.
Once the plants are sufficiently mature, they are manually removed from each level onto a
scissor lift and loaded onto the conveyor. New seedlings replace each harvested plant at the
same time the plants are harvested. A growing facility may house a large number of growing
until and may also include the germination area, packaging area, cold storage, cleaning area,
seeding area and feed tank storage area.
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December 2014
CASE STUDIES
PROBLEM CROP SOLUTION – STRAWBERRIES
Strawberry Consumption has been one vertical in the agricultural industry that has experienced a
steady increase over the past decade, specifically in Canada. Strawberry consumption in Canada
has been on the rise fairly consistently over the last 20 years, raising around 94% since 1991, 73%
of which increased in the last 10 years.
Strawberry consumption in Canada has been increasing however because a large portion have
been imported. In specific, Canadian production in 2011 accounted for only around 14.3% of total
percent available to market, with 85.7% coming from imported berries. Moreover, most Canadian
provinces have been experiencing an overall decline in production, aside from those located in
Quebec whom are all members of their province’s producer group (547 farms).
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December 2014
Furthermore, the Canadian Industry’s capacity to grow and provide for the population dwindles
throughout the winter and spring months, when imports from USA to Canada are at their highest
once most household’s frozen storage of strawberries are down, and summer weather and healthcampaigns kick in for spring.
With over ten years of research, development and experimentation, through its license agreements
in technology, partners and the advisory board, Affinor is creating the first commercial strawberry
facility that will be able to harvest year round, pesticide free, non-GMO organic strawberry fruit.
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December 2014
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December 2014
Affinor's exclusive licensed technology, partners and advisory board have created a
proprietary process to commercialize strawberry production. The process includes the
strategic use of the patented equipment (IP's) using specific environmental triggers creating a
continuous automated growth of seedlings, vegetative growth, mechanical pollinating and
harvesting year round.
Through years of research and experimentation, unique microenvironments and operational
conditions have been discovered and developed to manipulate and control the natural
metabolic pathways of the June bearing Strawberry (Fragaria x ananassa). As a result, a
proprietary growing process with perpetual year round harvesting was achieved without any
genetic modifications. By exposing the strawberries to specific environmental conditions
(temperature, humidity, light, duration, nutrition), Affinor was able to simulate naturally
occurring seasons and bring the plants into prolonged fruiting stages under controlled
conditions.
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December 2014
The above illustration depicts a typical June Bearing fruiting cycle. Affinor’s proprietary
strawberry cultivation system and technology condenses this natural four -year cycle to 9
months. The following is a summary technical description of the process.
Seedlings are planted in the slide trays and placed within the vertical roller equipment. There
are 18 machines at 14 levels. The room will be made of insulated polar panels and completely
enclosed. Within this room, growth phase one to establish root mass, winter simulation,
reanimation and the second growth phase will occur within 4 weeks.
The plants are then transferred to the rotating towers to continue vegetative growth within the
greenhouse under natural and supplemental light. The greenhouse is designed with diffused
polycarbonate to reduce shadows and promote fruiting and under strict operational conditions
in temperature and humidity. There will be 36 rotating towers with 13 levels per tower. Half the
towers (18) are filled with the first batch of plants from the slide tray equipment or the "chill
room" that have undergone the first growth phase, winter simulation, reanimate and second
growth phase. The second half (remaining 18 towers) are filled 1 to 2 weeks later from a
second batch of plants from the "chill room". The first fruit harvest will occur approx. in four
weeks with the second harvest two weeks later once transferred to the greenhouse. Each
plant within the greenhouse will have a three cycle harvest. After the last third harves t, the
plant is replaced with a new one from the chill room and the cycle is repeated.
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December 2014
The process is designed to harvest half of the towers in the greenhouse every two weeks,
resulting in a full harvest every four weeks. At capacity, the greenhouse will harvest 29,952
plants per month at approx. 1 lbs. to 1.5 lbs. per plant.
Seedlings are planted in starter pots, phase one
Seedlings are vegetated to a proprietary stage, transplanted, trimmed and enter the winter
simulation cycle.
Plants undergo a proprietary winter simulation, then reanimation or "wake up" phase.
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December 2014
After reanimation, second growth phase is started to establish root mass.
End of second growth phase when plants flower. They are moved to the vegetative growth and
fruiting towers.
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December 2014
Plants are transferred to vegetative growth and fruiting towers for mechanical pollination and
ripen under proprietary operating conditions.
Plant continue to vegetate until the first harvest - four months from start of process.
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December 2014
Plants are pruned and replenished with nutrients and allowed to fruit again for second harvest on
the fruiting towers. Plants are kept in a constant fruiting stage under proprietary operating
conditions. No chemical or genetic influence.
Second harvest, usually the fruit is 20 to 30% bigger due to larger established root mass.
The plants are pruned and replenished with nutrients and allowed to fruit again for a third harvest
on the fruiting towers resulting often in even larger fruit again.
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December 2014
Fist harvest average strawberry size
22.3 grams
Second harvest, average strawberry size
30.2 grams
Third harvest, up to 53 grams per
strawberry
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December 2014
Flow chart showing the proprietary cultivation system for a three harvest cycle per plant. The
process will allow for month perpetual harvesting of strawberries using Affinor's equipment
and proprietary cultivation system.
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December 2014
BUSINESS MODEL
Affinor has identified a revenue opportunity in the agricultural produce industry which the Company
believes is currently underutilized. This consists primarily of producing select fruits and vegetables
in a secure, indoor environment in close proximity to urban centers, where the population of
potential consumers exceeds that of rural locales, regardless of regional climate or outdoor
growing season constraints. As a result the Company’s business model seeks to eliminate two
major logistical problems facing both producers and consumers of organic and conventional fruits
and vegetables today, which are the costs and delays related to shipping fresh produce from
where it is grown to where it can be sold; and variations in climate that prevents certain produce
from being grown in certain markets. The company plans to become a major producer by utilizing
an integrated system of automated vertical farming techniques and cloning technologies.
Affinor believes it will also have significant sub-licensing and consulting opportunities to
commercial operators in a variety of agricultural divisions, as well as horticulture research
professionals. The Company negotiates consulting and sub-license agreements with commercial
growers and research professionals. During the term of the 5 years agreement, the Company
renders consulting services related to the implementation and use of the technology, establishment
of the facility, assist the sub licensee to use the technology and sublicensed IP to produce the
sublicensed product in a specific territory. As consideration for the services rendered by the Sub
licensor during the term of the consulting services, the sub-licensee agrees to pay; $500,000; outof-pocket expenses; and 3% to 5% royalty on net sales. By entering into a sublicense agreement
with Affinor, these companies or individuals will gain access to innovative, fully sustainable and
complete growing solutions, which are the result of over 12 years of R&D based on predecessor
systems, prototypes, and significant third party validation. By leveraging the Company’s expertise
in advanced vertical farming designs and patented technology, Affinor is positioned to become a
leading global licensor of the proprietary vertical farming technologies.
1. Revenue from sale of Company grown produce
2. Revenue from technology Sub-licensing and Consulting fees
3. Revenue from sale of Medical and Recreational Cannabis
4. Revenue from botanical and cannabis laboratory testing fees
As Affinor is successful in growing and providing quality strawberries, other farming and tech
companies will no doubt spark interest in similar forms of operations. Affinor’s success may
attract new companies interested in developing similar programs in Canada.
Entrance of new companies into the Canada market for strawberries is an ongoing possibi lity
Affinor is keenly aware of industries moderate barriers to entry, given the extensive capital
involved in most farming operations and pricing of farmland in Canada (+/- 100k/acre).
However, the Company already secured a purchase order from Mastronardi Produce for all its
products that will be produce in the Saint-Chrysostome facility, Quebec to ensure a
sustainable income stream. Also rather than seeing others as producers to compete with,
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December 2014
Affinor will partner with these competitors to collaborate with and share resources with,
working to secure its positioning as leader in the industry.
In addition, while the focus of Affinor is growing plants and food crops, its advisory team is
uniquely composed not only of plant and food production expertise, but also of drug and
neutraceutical specialists. Working with a diversified advisory team will allow Affinor to
access additional industries for product sales that may otherwise not be available.
Diversifying its income stream will allow Affinor to remain stable in the face of income
challenges from any one given source.
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December 2014
SALES AND MARKETING
There are strong indications that consumers interested in purchasing safe, locally -grown
produce that is subject to a standard of quality such as organic certification. The recent growth
of farmer’s markets and the expansion of supermarket chains such as W hole Foods Market
and Trader Joe’s demonstrates that demand for such produce exists, as does public concern
over herbicide and pesticide use, country-of-origin labeling and greenhouse gas emissions
associated with shipping produce hundreds, and even thousands, of miles from farm to retail
outlet. Affinor plans to capitalize on the opportunity presented by this shift in consumer
attitudes by offering them fresh, non-GMO delicious foods and nutraceutical / medicinal foods
without pesticides or dangerous chemicals with near zero water waste, which are
competitively-priced and capable of instilling a measure of brand recognition. With the
Company’s ability to provide a constant supply of select high volume fruits and vegetables
regardless of the local climate create a significant competitive advantage over traditional
agricultural producers. Affinor plans to target markets that require bulk produce on a
continuous basis by distributing its locally grown produce through the following channels:





Direct through Farmer’s Markets, CSAs, On Premise, and Online
Grocery Store Chains, Specialty Food Stores, Mass Merchandisers, Club Stores
Wholesalers
Food Service
Restaurants
On the consumer level, Affinor is planning to capitalize on the consumer attitude shift towards
locally-grown organic produce, by targeting the following produce consumers




Generally well educated
Higher disposable income
Environmentally conscious consumer
Organic purchaser
When seeking to purchase strawberries for food consumption in Canada, there are countless
other providers retailers, distributors and consumers can consider. Consumers look for
strawberries that are affordable, available, non-GMO, organic and most importantly, that taste
good.
Many of the berries available on the Canadian market today (84% on estimate) have been
imported from California and other southern parts of the world. Berries shipped are often
picked early before ripening and left to either ripen en route or chemically supported
applications. Water shortages and climate change effects are beginning to prevail in the
southern parts of North America where most of our berries are currently imported from.
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December 2014
Affinor will work with various berry associations, ministry groups and retail grocers across the
Country to ensure promotions of local and Canadian strawberries are heard, enhancing
consumer awareness of their availability and the importance of supporting local growers.
While others may enter the realm of vertical farming to compete with Affinor’s yield and quality,
Affinor will continue with their R&D facility exploring and continually enhancing their designs
and production methods; they will keep on top of all industry news and their competitors to
ensure their products will always be the best quality at an affordable price.
In regards to consulting and Sub-licensing agreements, Affinor targets two specific markets,
commercial growers and Horticulture research professionals, who are currently utilizing indoor
growing technologies.

Commercial Growers: Commercial agriculture is beginning to migrate to control indoor
environments. Due to the ability to both maximize space and mitigate energy costs, the
Affinor system provides an affordable vertical farming solution for urban commercial
growers who produce for local restaurants, hotels, wholesale and retail markets.

Horticulture Research Professionals: The Affinor Vertical Growing System utilizes high
efficiency lighting, with an automated-computer controlled lighting, watering and
nutrient delivery cycles, which allows for a variety of delivery and plant support
configurations. As a result, the system offers maximum flexibility to research
professional, who are experimenting with different plant species and maturities, while
attempting to keep costs low.
The sub-licensing agreement will allow potential clients access to one of the world’s most
advanced and potentially profitable vertical farming systems. Moreover, the technology
potentially compliments these sub-licensees current operations and opens up tremendous
potential within the multi-billion dollar agricultural market place.
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December 2014
OPERATIONS
Affinor Growers, Inc. is a Canadian corporation, which is headquartered in Montreal, Canada. The
Company currently has two investments in the state of Washington, Affinor Growers LLC, a
company currently cultivating and supplying patients for medical marijuana in the State of
Washington, and Herbal Analytics LLC, a full service analytical and consulting laboratory for
botanical and cannabis quality testing and natural product drug development. Affinor owns a 49%
interest in each company. The Company currently has one full time employee, five consultants,
serving on the management team, and three independent consultants. Moreover, the Company’s
investment, Affinor Growers LLC has five employees, while Herbal Analytics LLC has four.
In regards to the patented technology in the Company’s vertical growing system, Affinor is
engaged in an exclusive patent license agreement with Vertical Designs ltd. (‘’VDL’’) to become the
commercial licensor of VDL patented food growing technology on a worldwide territory excluding
only Ontario, Alberta and the Maritimes (the ‘’Territory’’). Under the terms of the agreement, the
Company will use VDL’s technology to produce high quality non-GMO fruits and vegetables,
royalty free to VDL.
The Company issued a total of 1,388,888 common shares to obtain the worldwide exclusivity to
use the VDL technology. Also under the agreement, the Company will be able to sublicense VDL’s
technology for fruits and vegetables to any other company of facility on the territory and receive a
royalty on sub-licensed production. The Company will receive 50% of any fee or royalty paid to it
by any sublicense of the VDL technology, the other portion being paid to VDL.
As of November 20, 2014, Affinor has acquired and began building out a Strawberry-growing
facility on a 45-acres of prime agriculture property. This will be the first of its kind and it will supply
organic, non-GMO, strawberries and other crops grown without pesticides to Eastern Canada and
the Eastern seaboard of the United States. The unique structure of this facility is designed to
increase efficiency by a 10 - 12 timer per square meter of that of any traditional greenhouse design
and will be located on 45 acres of agricultural land in Saint-Chrysostome, in the regional county
municipality of Haut-Saint-Laurent in the Montérégie administrative region of the Province of
Quebec.
The greenhouse will include a state-of-the-art, 40m x 40m, 4 bay, fully diffused growing area and a
20m x 40m, 2 bay auxiliary facility, for the propagation, packaging, storage and shipping of high
quality produce, specifically strawberries.
Once Affinor has grown the organic, non-GMO produce, the Company plans to leverage the
extensive network of its management to create an infrastructure, which distributes its fruits and
vegetables on a cost-effective basis. Affinor anticipates entering into agreements with a variety of
regional distributors in the locations in which it plans to operate once the validity of the Company’s
business model is established.
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December 2014
RESEARCH AND DEVELOPMENT
Affinor is currently in the final stages of releasing a new, sophisticated vertical cloning design that it
would offer to third parties looking to develop pharmaceutical and cannabis clones in the U.S.
Cloning ensures that plants are bred exactly the same in order to ensure the same clinical effects.
This technology technologies that will also allow grape seedlings to produce grapes in just a year,
versus 8 years, through safe metabolic manipulation instead of genetic manipulation. The
company's technology automates the typically manual cloning process, with the ability to produce
200 clones per square foot in a 15-level stack using 50% less labor than traditional methods.
The software driven, automated airflow lid removal process allows the Company to mass-produce
high quality, legal cannabis seedlings. The root development system, including automated root
watering, will be at least 30% faster than any traditional system and can reduce cost by 50%. Since
clones sell for about $5 to $10 a piece and can be created every 10 days, there is significant
revenue potential. In addition to the cannabis industry, the same technology could become
incredibly valuable with the pharmaceutical and traditional agricultural industries where clones are
used to ensure quality.
Traditionally, the commercial horticultural and agricultural growth of plants has been carried out in
nurseries and greenhouses, where the plants are arranged horizontally and are stationary.
Traditional "vertical farming" include methods of growing plants using a central light source which
rows of plants are rotated to increase productivity, however, harvesting product can be complicated
and time consuming.
Affinor has reviewed available information on existing installations in the vertical farming sector
including those of SkyGreen, Alterrus Systems, Verticorp, AeroFarms, FarmedHere, Omega
Gardens, Urban Barns and Terrasphere Systems. Affinor believes it has developed whole
solutions that are superior in maximizing food quality while minimizing costs and maximizing
productivity per square foot of growing space.
Affinor's partner (Vertical Designs) Reach and Development facility located in Port Coquitlam
Vancouver, British Columbia has been developing vertical farming equipment and technology for
over 5 years. Vertical Design Ltd inventor and management have been developing vertical farming
equipment and technology for over 20 years.
The facility is over 4,000 square feet and houses both patented technology prototypes. A pilot plant
was developed to grow and test various plants and crops under different operating conditions to
methodically design:
 The equipment for best ergonomic interaction
 Optimal crop models for reduced harvest cycle time while maintaining shelf life integrity
 Design operational software and crop models
 Test a variety of leafy green products (non GMO, pesticide free, organically grown)
 Develop unique cultivation processes and operational requirements to grow fruiting crops
perpetually (year round - strawberries) by designing a crop model to simulate seasonality
condensing the fruiting cycle from 4 years to 9 months.
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December 2014
The following product trials and examples over the next several pages, were performed within the
Research and Development facility over the last several years to develop operational parameters,
environmental controls, lighting development, crop models and automation. All product trials were
successfully produced using VDL's technology, equipment prototypes and pilot processes within
the facility.
Leafy green development and trials within Research and Development facility.
Product trial: Basil
One week growth from seed
Transplanted, phase two of the growing cycle
Day 15 - ready for harvest
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December 2014
Product Trial: Romaine Lettuce
10 days from seeding
Day 17
Transplant, phase two of the growth cycle.
Day 23
Day 31
Heart formation and harvest within 4 to 5 weeks, organic, no pesticides in natural dirt medium.
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December 2014
Product Trial Spinach:
Four weeks after seeding, ready for harvest.
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December 2014
COMPETITION
Within BC, Canada and the world, it is likely that Affinor Growers will face competition from both
commercial strawberry suppliers and those committed to growing their own food. This sections
seeks to first understand key risks Affinor may experience in industry, followed with mitigation
efforts currently planned or underway. To begin, a list of growers by province currently producing
strawberries in Canada is listed below with locations and comments on their facilities/companies. A
list of strawberry growers by province as well as the 9 growers associations available to Canada
are listed below.
Competitors with existing installations in the vertical farming sector include those of SkyGreen,
Alterrus Systems, Verticorp, AeroFarms, FarmedHere, Omega Gardens, Urban Barns and
Terrasphere Systems. Affinor has developed whole solutions that are superior in maximizing food
quality while minimizing costs and maximizing productivity per square foot of growing space.
SkyGreens
Any dependency on sunlight can result in cell elongation on cloudy days resulting in inferior shelf
life and lower nutritional value. Without supplemental lighting the growing cycle can be longer when
natural growing seasons shift.
Alterrus / Verticorp
Use of sun radiation hydroponically can result in cell elongation, unless growing “baby” products,
inferior shelf life and lower nutritional value. Spraying feed increases susceptibility to high bacteria
count and increasing possibility of washing to pass food safety regulations. If washed, then
possibility of damage rises because of cell elongation. Supplemental lighting is likely insufficient in
winter or if cloudy for 5 or more days which can negatively impact quality.
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December 2014
Aerofarms
Largely shelves with pumps and misters. More of a home type set up and poorly suited for large
production, as it would be too labor intensive.
Farmed Here
Appears to grow products by floating them in oxygenated water. It appears labor intensive and
lacking automatic lighting and process automation with seeding and packaging by hand.
Urban Barns
Many moving parts and in the video the lettuce appears to not be forming properly due to
insufficient airflow. The use of space appears to not be optimized. Plants appear to be
continuously moving which can vary the distance from light and negatively impact quality.
Omega Garden
Rotation creates stress on the plants, which can result in ethylene gas and negatively impact the
organic chemistry. Water running to the surface of roots and dripping onto leaf tissue provides
potential for stalk rot. The design has significant relative inefficiencies from seeding to harvesting.
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December 2014
SELECTED FINANCIAL DATA
BALANCE SHEET
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December 2014
INCOME STATEMENT
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December 2014
STATEMENT OF CASH FLOWS
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December 2014
WEBSITE
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December 2014
LEGAL NOTES AND DISCLOSURE
This report has been published by Secure Strategy Group, LLC (SSG). The contents of this report
with respect to Affinor have been compiled primarily from information available to the public
released by the Affinor through news releases, Annual Reports, and U.S. Securities and Exchange
Commission (SEC) filings. SSG assumes no responsibility to update the information contained in
this report. Information as to other companies has been prepared from publicly available
information and has not been independently verified by Affinor or SSG. Some of the information in
this report relates to future events or future business and financial performance. Such statements
constitute forward-looking information within the meaning of the Private Securities Litigation Act of
1995. Such statements can be only predictions and the actual results or events may differ from
those discussed due to, among other things, the risks described in Affinor’s reports on 10-K, 10-Q,
8-K, press releases, and other forms filed from time to time.
Affinor has compensated SSG for its service. SSG, its employees and affiliates may maintain
positions and buy or sell the securities or warrants of the Company. For more complete information
about the risks involved in an investment in the Company, please see Affinor’s most recently filed
Annual Report on Form 10‐K for the year ended December 31, 2013. Investors should carefully
consider risks and information about Affinor’s business. Investors should not interpret the order in
which considerations are presented in this or other filings as an indication of their relative
importance. Additional risks and uncertainties not presently known to Affinor or that it currently
believes to be immaterial may also adversely affect its business. If any of such risks and
uncertainties develops into an actual event, Affinor’s business, financial condition, and results of
operations could be materially adversely affected, and the trading price of the Company’s shares
could decline.
This report is published solely for information purposes and is not to be construed as investment
advice or as an offer to sell or the solicitation of an offer to buy any security in any state. Past
performance does not guarantee future performance. For more information about Affinor, the
reader is directed to the Company’s website at www.affinorgrowers.com. Additional information
about Affinor and its public filings, as well as copies of this report, can be obtained by visiting the
Company’s website or by calling (514) 947-2272.
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December 2014

A F F I N O R G R O W E R S , I N C .

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