Reliq Health Technologies Inc (RHT – V)

February 14, 2018

Monitor This Stock: Explosive Growth Ahead

Company Profile
Hamilton-based Reliq Health Technologies has developed innovative Initiating Coverage
remote patient monitoring, care collaboration and telemedicine
Spec Buy $3.00
solutions for community-based healthcare. Prev ious Close $1.97
Investment Thesis 12-month Target Price $3.00
Potential Return 52%
We believe the exponential increase in healthcare costs associated
Estimates (C$)
with managing at-home individuals with multiple chronic conditions YE: Jun FY18E FY19E FY20E
has created the opportunity for Reliq to win significant market share Rev enue (M) 4.5 25.2 51.2
with its remote patient monitoring software platform. With a slew of EBITDA (M) -0.1 9.4 23.8
early wins and a very strong pipeline of opportunities, we believe the EBITDA m argins -2.8% 37.5% 46.6%
company is well positioned to show meaningful organic growth and EPS ($) GAAP 0.00 0.05 0.13
operating leverage over our forecast period. Valuation

Investment Highlights FY18E FY19E FY20E

EV/Sales 51.7x 9.3x 4.6x
- Reliq is focused on servicing the Community Care market (largely EV/EBITDA nmf 24.8x 9.8x
in the US), which refers to healthcare services received by patients P/E nmf 39.4x 15.2x
outside of the hospital setting. A key challenge within this segment Stock Data (M)
of the population stems from poor management of chronic
Shares O/S (Basic) 98.0
conditions at home, which is contributing to rising healthcare costs.
Shares O/S (FD) 125.6
- Reliq has developed a next-generation platform for chronic Market Cap (Basic) $193.0
disease management and remote patient monitoring, which will Market Cap (FD) $247.4
help to lower home healthcare costs, lower ER visits and Pro-forma Cash $13.0 $0.10/sh
readmissions and improve medical adherence, thereby helping to Pro-forma Debt $0.0 $0.00/sh

enhance a patient’s quality of life and improve health outcomes. EV $234.4

Patients Deployed ~8,000
- Reliq has had good early success with 4 groups signed on and Patient Backlog 50,000+
expected to deploy Reliq’s solutions to their ~50k+ at-home Company Description
patients, which represents over US$30M in potential annual
recurring revenues. Reliq’s monthly fees of US$50/patient are Hamilton- based Reliq Health Tec hnologies has developed

covered under the new CMS billing code 99490 for Chronic Care
innovative remote patient monitoring, c are c ollaboration and
telemedic ine solutions (c alled iUGO Care) for c ommunity- based
Management, which further incentives for healthcare providers. healthc are, whic h refers to patients outside of the hospital setting.

- Based on ~38M Medicaid/Medicare beneficiaries, who have two Research Team

or more chronic conditions, we value Reliq’s near-term opportunity Gabriel Leung 416-507-3963
gleung@beaconsecurities.ca
at ~US$23B in potential annual recurring revenues.
Stock Performance
- Reliq’s solution is cloud-based, which we believe could lead to
incredibly strong operating leverage (the company has spoken
about ~85% EBITDA margin passthrough).
- Given Reliq’s strong value proposition and pipeline of
opportunities, we believe the company could be poised to
announce numerous new signings, which could act as a catalyst
for the stock (on top of hitting deployment milestones with existing
customers). We are launching coverage with a Speculative Buy
rating and $3.00 target price, which is based on 15x FY20e (ending
June 2020) EV/EBITDA.

Beacon Securities Ltd.| 66 Wellington Street West, Suite 4050, Toronto, Ontario, M5K 1H1 |416.643.3830|www.beaconsecurities.ca
 Who They Are and What Do They Do?

• Hamilton-based Reliq Health Technologies (“Reliq”) has developed innovative remote patient
monitoring, care collaboration and telemedicine solutions (called iUGO Care) for community-based
healthcare, which refers to patients outside of the hospital setting.
• iUGO Care is a powerful platform for care coordination and home healthcare that integrates wearables,
sensors, voice technology and intuitive mobile apps and desktop user interfaces for patients, families,
clinicians and healthcare administrators. Key advantages to deploying iUGO Care include improving
health outcomes, enhancing quality of life for patients and families, reducing the cost of care delivery,
and preventing costly hospital readmissions and ER visits.
• Reliq has generated good early traction having signed four contracts representing over 50,000 patient
deployments or over US$30M in potential annual recurring revenues once fully deployed. Reliq’s
addressable market is represented by ~38M Americans (Medicare/Medicaid recipients) who have two
or more chronic conditions, which represents ~$23B in annual recurring revues. Reliq’s pipeline of
opportunities is currently in the hundreds of thousands of at-home patients.
• Reliq went public via the RTO between Golden Virtue and MobSafety in April 2015 at which time it
changed the name of its company to Moseda Technologies. Reliq acquired the core iUGO Care
platform through the acquisition of CareKit Health in February 2016 and changed its name to Reliq
Health Technologies in May 2016 to reflect its Community Care focus. Reliq spent the following year on
R&D, leading to several pilot projects and ultimately commercial launch in September 2017.

Gabriel Leung, 416-507-3963 1

 Managing Outpatient Chronic Care Challenges

• Reliq is addressing the challenges within the global Community Care market. Community Care is an
umbrella term that refers to the healthcare services patients receive outside of the hospital setting. With
inpatient costs continuing to escalate, one trend to help mitigate this has been to move care into the
Community, which is burdened by its own challenges.
– Poor access to specialized care in remote, rural and inner city areas
– The revelation that chronic diseases account for ~80% of all healthcare spending. However, chronic conditions are
typically poorly managed by patients at home leading to complications (e.g. 50% of patients do not take
medication as prescribed) and the need for hospitalizations, ER visits and other costly and disruptive interventions

• To elaborate on the last point, the Centers for Disease and Control and Prevention reports that about
half of adults in the US or ~117M individuals had one or more chronic health conditions. One in four
adults had two or more chronic health conditions.

• As it relates to hospital readmission costs, we’d note that Kaiser Health News expects Medicare/Medicaid
to fine US hospitals ~$564M in FY 2018 for “preventable readmissions”. Preventable hospital
readmissions are estimated to account for more than $17B in Medicare expenditures annually.
• Furthermore, as Medicaid/Medicare reimbursements continue to shift towards more value-based
structures (versus fee-for service), we believe there is a greater incentive for healthcare organizations to
look for ways to reduce costs and provide better healthcare outcomes.

Gabriel Leung, 416-507-3963 2

 Chronic Care Patients Want More Data

• While moving chronic care patients to the home setting has helped to relieve inpatient cost
burdens, it has created its own cost challenges.
• Based on a recent report “Strengthening Chronic Care” by West Corporation, it is clear that
chronic patients desire more support with 70% of patients with a chronic condition wanting
more resources or clarity to help manage their disease and 91% say they need help managing
their disease.
• Furthermore, the report found that only 6% of patients surveyed believed that a two-way, at-
home device that collects data, reports data, and communicates information back to patients
would not be useful.
• The current model for home care is very “high touch” and relies on increasingly scare human
resources such as nurses, personal support workers with monthly costs running in the $2,000 –
$10,000 per patient range (scaling higher with age).
• As such, we believe there is an opportunity for a technology provider to offer a two-way home
monitoring solution that will improve collaboration between chronic care providers and patients
and engage them to improve chronic disease management, while also helping to lower the
overall costs of delivering healthcare to at home chronic care patients.

Gabriel Leung, 416-507-3963 3

 iUGO Care - Bringing The Hospital Home
• Reliq’s iUGO Care is a next generation platform for chronic disease management and remote patient
monitoring. The platform essentially turns a patient’s home into a “virtual hospital ward” using sensors, a
two-way voice technology hub, biometric monitoring devices and other internet of things tools to
provide unobtrusive monitoring, coaching and alerts for patients at home. The entire platform is
managed with iUGO’s backend, cloud-based software.
– iUGO Care uses cutting edge technologies like the Amazon Echo hardware and Alexa voice recognition software.
For example, patients receive audible reminders to take their medications and measure their vitals using Bluetooth
enabled biometric devices.
– iUGO Care will automatically summon emergency services (911) if the system detects a fall or if the patient verbally
requests emergency medical assistance.
– Small sensor stickers placed around the home allow iUGO Care to track movement, detect falls and help patients
find their mobility aids, medications, and medical devices
– Patients and clinicians can view graphs showing trends and correlation in patients’ vital signs, medication adherence,
nutrition, sleep patterns and activity levels over time.
– Sensors automatically turn on the TV at the patient’s request to show informational and instructional videos to
support self-management of their chronic conditions.
– Data collected in the home is automatically uploaded to the iUGO Care secure cloud where it is available to all
members of the patient’s circle of care.
– Patients and families can use iUGO Care to access educational videos, review self-care instructions and contact care
team members through secure messaging or virtual visits

Gabriel Leung, 416-507-3963 4

 A Win For Providers and Patients

• In our opinion, the successful adoption of any software platform is predicated on potential ROI
and ease of use.
• In our opinion, Reliq’s iUGO Care platform checks a lot of the boxes including:
- Ease of use for patients given that functions are voice-based and largely automated in nature. Note that
Reliq’s initial healthcare customers have employed a hybrid model, which utilizes monitoring tools, care
workers (at a patient’s home) and mobile applications (with data all flowing into Reliq’s cloud platform) to
help ease the patient to a more automated model.
- Ease of deployment for providers given that the software platform is cloud-based and most of the
associated hardware are off the shelf.
- Given the monthly cost of ~US$50 per patient, we believe there is huge potential reduction in healthcare
costs vis-à-vis sending a nurse or personal support worker to the home (this monthly cost is also
reimbursed by CMS).
- iUGO should also help improve medication adherence, which is one of the key catalysts for properly
managing chronic conditions. This should help to enhance a patient’s quality of life and improve health
outcomes thereby reducing hospital readmissions, ER visits (and therefore healthcare costs and
readmission penalties). The reduction in costs are important for providers, particularly those which are
being compensated via fee for value (versus fee for service).

Gabriel Leung, 416-507-3963 5

 Revenue Model Focused on Predictability

• iUGO Care is offered as a subscription service with monthly costs at US$50 per patient.

• Reliq is focused exclusively on providing the back-end software infrastructure, while the healthcare
provider is responsible for procuring all the associated hardware and deploying the platform to their
at-home patients. Reliq provides initial training to the provider’s deployment team.

• As noted above, hardware costs, including sensors, voice recognition device, docking station, patient
monitoring tools are borne by chronic care providers (and are typically reimbursed by CMS).

• The company estimates that ~38M Americans who are covered by Medicare or Medicaid have two or
more chronic conditions and also qualify for virtual care in the home under the new CMS billing code
99490 for Chronic Care Management.

• Under this billing code, iUGO Care’s entire $50 monthly fee should be reimbursed, which we believe
provides significant financial incentive for a provider to consider adopting iUGO Care.

• Based on the aforementioned ~38M target individuals, we believe the annual recurring revenue
market opportunity in the US for Reliq is in the ~US$23B range. The company is in early stages of
exploring opportunities outside of the US (notably in Canada and the UK), which could increase the
near-term market opportunity.

Gabriel Leung, 416-507-3963 6

 Key Milestones To Date…With More To Come

• In our opinion, Reliq has achieved several key milestones including those associated with new
customer signups, deployments and financials.
– On February 16, 2017, the company announced that it had signed an agreement with Paz Home Health
LLC in Texas to provide iUGO to over 10k at-home patients
– On April 6, 2017, the company announced it had signed an agreement with Rio Grande Valley Health
Alliance, LLC in McAllen, Texas to pilot iUGO with its primary care patients. Rio Grande has over 30k
registered at-home patients.
– On December 20, 2017, the company announced that signed an agreement with B Golden Care
Services in McAllen, Texas to implement iUGO Care for its 1,000 complex continuing care patients.
Onboarding of patients is expected to begin in late Q1 2018.
– On January 11, 2018, the company announced it had deployed over 6,000 patients representing
monthly recurring revenues of US$300k and that it was profitable for the month of December.
– On January 25, 2018, the company announced it had signed True Life Home Health LLC in Texas to
provide iUGO Care to over 2,000 home care clients.

• In our opinion, near-term milestones will continue to revolve around deployment milestones and
new customer wins. In recent discussions, management suggests that it is dealing with a very
strong pipeline, which have been largely referral-based or have been in-bound, which have
minimized sales and marketing spend.

Gabriel Leung, 416-507-3963 7

 Financial Review – Strong Growth Out Of The Gate

• To date, Reliq’s financial results have been relatively anemic with revenues coming from milestone
payments. However, we would remind investors that iUGO Care only went live in early Q4 2017.
• However, based on the company’s mid-December update, we believe it exited CY17 with ~$4.5M in
annualized recurring revenues (~6,000 patients deployed) and EBITDA positive operations.
• With deployments currently running in the ~2,000 per month range, we estimate that the company
should be comfortably hit its target of 30,000 patient deployments (of the over 50,000 in its backlog) by
the end of CY18. In our opinion, any new provider win could increase the 2018 deployment target.
• Furthermore, given the company’s focus on providing only the software aspect of the platform (with
hardware to be procured and deployed by customers), we believe there could be very strong EBITDA
flow through (the company has hinted at ~85% EBITDA flow-through).
• The company currently has ~20 employees, and it expects to exit CY18 with a higher figure (up to ~30).
• From a balance sheet perspective, we estimate the company has ~$13M in cash. There are ~25M
warrants outstanding with exercise prices between $0.18 – 1.75 and 7.65M options with an average
exercise price of $0.14. The company also has ~$13.5M in tax loss carry-forwards to help mitigate
potential cash taxes over the near-term.
• The company most recent financings were in June 2017 where it raised $763k at $0.11/sh (1/2 warrant at
$0.165), in November 2017 where it raised $5M at $0.40/sh (1/2 warrant at $0.60) and in January 2018
where it raised $10M at $1.12/sh (1/2 warrant at $1.75).

Gabriel Leung, 416-507-3963 8

Forecast Assumptions

• We are forecasting the company to hit its target of ~30,000 patients deployed by the end of
CY18, which should come from its existing backlog of ~50,000 patients (note that the company
has a June fiscal year). We further model the company to announce additional wins that could
add another ~12,000 patients deployed in CY18.
• The net impact is that we think the company could exit CY18 with ~US$25M in annualized
recurring revenues.
• For FY19 (ending June 2019) and FY20 (ending June 2020), we model the company to exit with
62,000 and 100,000 patients deployed respectively representing a revenue exit run-rate of
US$37M and US$60M respectively.
• From a margin perspective, we are modeling EBITDA margins of negative 3% for FY18, 38% for
FY19 and 47% for FY20 with increases in operating expenses coming primarily from advertising
and promotion and R&D. While we acknowledge that there could be greater operating leverage
than what we have modeled (the company has alluded to this), we also acknowledge that we are
in the early stages of growth and that operating expenses will likely need to increase as the
company rolls out its solution nationally across the US.

Gabriel Leung, 416-507-3963 9

Financial Estimates

Reliq Health - Financial Estimates

FY18e FY19e FY20e
($) 30-Jun-18 30-Jun-19 30-Jun-20
Revenues 4,534,106 25,200,000 51,159,375

Patients deployed end of period 22,000 62,000 100,000

Revenue run-rate end of period 16,500,000 46,500,000 75,000,000

EBITDA -128,803 9,448,420 23,815,951

EBITDA margins -2.8% 37.5% 46.6%

EPS (taxed at 35%) 0.00 0.05 0.13

Source: Beacon Securities

Gabriel Leung, 416-507-3963 10

Initiating With a Spec. Buy Rating and $3.00 Target

- As highlighted by the table in the following page, comparable SaaS-based companies are
trading at forward EV/Sales multiple of ~6x and EV/EBITDA of ~20x (excluding outliers).
- By comparison, based on our FY20 forecasts (ending June 2020), Reliq is trading at ~4.6x and
10x.
- In our opinion, given its earlier stage, we believe Reliq could experience much higher growth
rates relative to the group justifying a higher valuation multiple.
- The market’s willingness to reward the company with a multiple expansion will be predicated on
financial and new customer milestones over the coming quarters. We are however, buoyed by
the company’s progress to date, along with its large pipeline of opportunities, which we
understand to be in the hundreds of thousands of potential at-home patients.
- Applying a 15x EV/EBITDA multiple to our FY20e estimates results in a target price of C$3.00
- This represents a 50%+ potential return leading us to initiative coverage with a Spec. Buy rating.
We will reconsider the Speculative aspect of our rating as additional data points are released
(most notably in the from of additional new wins and additional financial disclosures).

Gabriel Leung, 416-507-3963 11

 Comparable Analysis

Reliq Health: Peer Group Analysis

EV/Sales 2-Year EV/EBITDA 2-Year P/E
Ticker Mkt Cap ($M) FY - 1 FY1 FY + 1 Revenue CAGR FY - 1 FY1 FY + 1 EBITDA CAGR FY -1 FY1 FY + 1

Comps
Descartes DSGX.O 1,984.59 9.8 x 8.5 x 7.4 x 15% 28.6 x 24.9 x 21.1 x 16% 83.0 x 71.1 x 52.5 x
Solium Capital SUM.TO 593.30 6.8 x 6.1 x 5.2 x 14% 39.1 x 49.8 x 39.4 x 0% 135.3 x 145.3 x 102.1 x
Open Text OTEX.O 9,143.84 5.0 x 4.1 x 3.9 x 13% 14.4 x 11.1 x 10.4 x 18% 8.6 x 13.1 x 12.1 x
Constellation Software CSU.TO 16,755.72 7.8 x 6.8 x 5.8 x 16% 30.0 x 25.9 x 21.8 x 17% 81.0 x 36.8 x 30.2 x
Mediagrif MDF.TO 170.61 2.5 x 2.4 x 2.3 x 4% 6.8 x 8.0 x 7.1 x -2% 10.9 x 18.4 x 13.5 x
Shopify SHOP.N 12,611.55 29.9 x 17.6 x 12.2 x 57% 6391.4 x 621.6 x 235.5 x 421% nmf 2441.2 x 485.0 x
Tecsys TCS.TO 228.94 3.2 x 2.9 x 2.6 x 10% 23.4 x 28.2 x 20.0 x 8% 35.9 x 52.0 x 33.0 x
Kinaxis KXS.TO 2,127.87 17.0 x 14.8 x 12.2 x 18% 69.3 x 51.9 x 41.8 x 29% 201.7 x 77.7 x 69.2 x
Cortex CBX.V 35.93 2.7 x 2.2 x 1.8 x 21% 70.9 x 13.1 x 7.9 x 200% -85.5 x 26.8 x 12.3 x
Global Average 9.4 x 7.3 x 5.9 x 18.8% 741.5 x 92.7 x 45.0 x 78.6% 58.9 x 320.3 x 90.0 x
Global Median 6.8 x 6.1 x 5.2 x 15.1% 30.0 x 25.9 x 21.1 x 17.3% 58.5 x 52.0 x 33.0 x

Reliq Health RHT.V 249.86 52.2 x 9.4 x 4.6 x 236% nmf 25.1 x 9.9 x nmf nmf 39.8 x 15.3 x
Source: Thomson, Company filings, Beacon Securities
Note: For Reliq Health FY-1 = June 2018, FY = June 2019, FY = June 2020

Gabriel Leung, 416-507-3963 12

Risks To Our Analysis
Ability to grow profitably – While the company has done a great job in signing up initial customer contracts,
it is still in the very early innings of its revenue growth initiatives and its ability to grow profitably will be a
key item to watch. The company also has a limited history of reported revenue, which creates uncertainty
around financial forecasts.
Deployment Cycle Beyond Reliq’s Control – Deployment of iUGO Care is managed by Reliq’s customers.
While this helps to reduce deployment expenses to Reliq, it also creates potential uncertainty around the
timing of deployments, which could impact our growth forecasts.
CMS Reimbursement Cuts – While Reliq’s monthly service fees are currently reimbursed by CMS, we believe
that any cuts could impact revenue growth and profitability.
Company May Need to Boost Sales / Marketing Expenses – One of the main negatives we heard about
Reliq from customers was the company’s relative lack of presence from a sales and marketing perspective
(deals have mostly come from referrals and have been in-bound). This suggest that as the company
expands its national footprint, it may need to increase sales and marketing meaningfully over the near-term,
which could impact margins.
Competition – While discussions with Reliq’s customers suggest that the company has a good head start
against competitors (Reliq has more features/functionality and is more price competitive) we believe there
could be an increase in competition particularly if Reliq is able to demonstrates strong growth and
profitability over the near-term.

Gabriel Leung, 416-507-3963 13

Seasoned Management Team
Lisa Crossley, CEO is an experienced healthcare IT executive. She was previously CEO of VitalHub, Quantum Dental and Natrix
Separations. Ms. Crossley has helped to raise over $40M in venture capital and angel financing in the US and Canada.

Giancarlo De Lio, Chief Visionary Officer is a serial entrepreneur who previously founded and/or led successful business in digital,
mobility, healthcare and IT.

Stephen Samson, CTO is an internationally recognized cybersecurity expert with extensive experience in healthcare. He was previously
Director of Cybersecurity at PwC, Senior Security Architect for Adobe, Best Buy, Accenture, and CenterPoint Energy.

Aman Thindal, CFO was formerly CFO of a mid-tier real estate development firm with expertise in financial reporting, corporate
structuring and tax management.

Richard Sztramko, Chief Medical Officer, is a practicing geriatric and general internal medicine physician in Hamilton, ON. He is a serial
entrepreneur who previously founded Virtual Ward Inc. and created the online iGeriCare tool for dementia patients.

Board of Directors:

Lisa Crossley, CEO of Reliq Health

Aman Thindal, CFO of Reliq Health

Eugene Beukman, Corporate Counsel of Pender Street Corporate Consulting. Mr. Beukman was previously employed as legal advisor to
the predecessor of BHP Billiton. He has over 20 years experience in the acquisition of assets and joint ventures.

Brian Storseth, businessman and was a Member of Parliament with the Conservative Party of Canada from 2006 – 2015. During his
tenure as an MP, he served on committees for Aboriginal affairs, agriculture and agri-food

Gabriel Leung, 416-507-3963 14

Capital Structure

Reliq Health Capital Structure

Basic shares outstanding 98,564,009

Warrants 25,467,239 - Exercise price ranging between $0.18 - 1.75

Options 15,300,000 - Average exercise price of $0.14

Fully diluted shares outstanding 139,331,248 - Without considering strike price

Source: Beacon Securities, Company filings

Gabriel Leung, 416-507-3963 15

Disclosure Requirements

Does Beacon, or its affiliates or analysts collectively, beneficially own 1% or more of any class of the issuer's equity securities? Yes No

Does the analyst who prepared this research report have a position, either long or short, in any of the issuer’s securities? Yes No

Has any director, partner, or officer of Beacon Securities, or the analyst involved in the preparation of the research report, received remuneration for
any services provided to the securities issuer during the preceding 12 months?
Yes No

Has Beacon Securities performed investment banking services in the past 12 months and received compensation for investment banking services for
this issuer in the past 12 months? Yes No

Was the analyst who prepared this research report compensated from revenues generated solely by the Beacon Securities Investment Banking
Department? Yes No

Does any director, officer, or employee of Beacon Securities serve as a director, officer, or in any advisory capacity to the issuer? Yes No

Are there any material conflicts of interest with Beacon Securities or the analyst who prepared the report and the issuer? Yes No

Is Beacon Securities a market maker in the equity of the issuer? Yes No

Has the analyst visited the head office of the issuer and viewed its operations in a limited context? Yes No

Did the issuer pay for or reimburse the analyst for the travel expenses? Yes No

All information contained herein has been collected and compiled by Beacon Securities Limited, an independently owned and operated member of
the Investment Industry Regulatory Organization of Canada (IIROC). All facts and statistical data have been obtained or ascertained from sources,
which we believe to be reliable, but are not warranted as accurate or complete.

All projections and estimates are the expressed opinion of Beacon Securities Limited, and are subject to change without notice. Beacon Securities
Limited takes no responsibility for any errors or omissions contained herein, and accepts no legal responsibility from any losses resulting from investment
decisions based on the content of this report.

This report is provided for informational purposes only and does not constitute an offer or solicitation to buy or sell securities discussed herein. Based on
their volatility, income structure, or eligibility for sale, the securities mentioned herein may not be suitable or available for all investors in all countries.

As at January 31, 2018 #Stocks Distribution

BUY 68 68.0% Buy Total 12-month return expected to be > 15%
Speculative Buy 19 19.0% Speculative Buy Potential 12-month return is high (>15%) but given elevated risk, investment could result in a material loss
Hold 12 12.0% Hold Total 12-month return is expected to be between 0% and 15%
Sell 0 0.0% Sell Total 12-month return is expected to be negative
Under Review 1 1.0%
Tender 0 0.0% Tender Clients are advised to tender their shares to a takeover bid or similar offer
Total 100 100.0%

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The Beacon Securities Analyst named on the report hereby certifies that the recommendations and/or opinions expressed herein accurately
reflect such research analyst’s personal views about the company and securities that are the subject of the report; or any other companies
mentioned in the report that are also covered by the named analyst. In addition, no part of the research analyst’s compensation is, or will
be, directly or indirectly, related to the specific recommendations or views expressed by such research analyst in this report.

Beacon Securities Ltd.| 66 Wellington Street West, Suite 4050, Toronto, Ontario, M5K 1H1 |416.643.3830|www.beaconsecurities.ca