$100 billion Award Innovative

market Winning Products

Strategies

CONFIDENTIAL
Who We Are
Accelerate was founded by a seasoned alternative investment industry executive
Capitalizing on near-term, game-changing regulatory and technological regime changes
Replicating past success in investment management by leveraging new platforms and protocols

Declining, high fee, low value-add Robo-advisors

Investment Management Growing, low fee, high value-add

Wealth Management

Accelerate will disrupt the alternative investment industry

as robo-advisors disrupted the wealth management industry
CONFIDENTIAL 2
Mission Statement
Accelerate is a blockchain-enabled investment management and data science company
Democratizing alternative investment strategies through Exchange Traded Hedge Funds
(“ETHFs”) on the TSX and Tokenized Funds on the Ethereum blockchain at a fee 75% lower
than competitors

Accelerate Financial Technologies

Accelerate ETHFs Accelerate Tokens

(North America) (International)

Hedge Private Hedge Private

Fund Equity Fund Equity
Strategies Strategies Strategies Strategies

CONFIDENTIAL 3
Market Opportunity
▶ Accelerate’s Exchange Traded Hedge Funds and Tokenized Funds solve 5 key pain points
1. Access Open to everyone; No accredited investor requirement or broker approvals
2. Low fees 75% lower than hedge fund and private equity competitors
3. Ease of use No frightening and complex “risk of total loss” subscription agreements
4. Intraday liquidity vs monthly liquidity (or worse): No lock-ups or gating
5. Tax efficient

Removing 5 key pain points to institutional-quality investments

by leveraging new platforms and protocols
CONFIDENTIAL 4
Why Does This Opportunity Exist?
Regulatory changes

▶ Canadian ETF regulation currently prohibits short selling, derivatives and leverage
▶ The Canadian Securities Administrators released a proposal for a “liquid alternatives” regulatory
framework to allow short selling, hedging, derivatives and leverage; expected to be finalized mid-
2018
Technological advancements
▶ Recent technological advancements in blockchain protocols allow asset-backed security tokens to
be created

Capitalizing on regulatory and technological advancements to create two new

platforms: Exchange Traded Hedge Funds and Tokenized Funds
CONFIDENTIAL 5
Value Add
Yale Endowment Allocation 2017
▶ Alternative strategies are an essential part of Cash
Venture 1% Hedge
a diversified portfolio but are only available to Capital Funds
accredited investors and institutions 17% 25%

▶ The Yale endowment model is regarded as

the gold-standard in asset allocation
Real Estate
▶ Long-term outperformance due to high 11%
allocations to hedge funds and private Domestic
Equity
equity Natural
4%
Resources Fixed Income
8% 5%

Foreign
Private Equity Equity
14% 15%

Bringing access to the gold-standard asset allocation model to all investors

CONFIDENTIAL 6
How It Works
Investment Investment
Domestic International
Capital Capital
Investor Investor

Investor Investor
Stock Receives Receives Blockchain
Exchange Shares Tokens

Accelerate Accelerate
ETHFs Tokens
Management
Fees

CONFIDENTIAL 7
Competitive Advantage

Private Equity Hedge Fund Mutual Fund

Access All Accredited Investors Accredited Investors All

Fees 1.00% 2% + 20% carry 2% + 20% performance 2.35%

Liquidity Intraday 7 - 10 years Monthly Daily

Alternative Strategies Yes Yes Yes No

Global Yes No No No

Tax Efficient Yes No No No

Hedge funds won’t compete and risk cannibalizing their high-fees;

Mutual funds don’t have the strategies
CONFIDENTIAL 8
Team
Julian Klymochko Michael Kesslering
Founder, CEO & CIO Principal
▶ Nearly a decade running alternative investment ▶ Former Senior Analyst and Trader at Ross
strategies Smith Asset Management
▶ Former CIO of Ross Smith Asset Management ▶ Assisted in managing award winning market
▶ Founded and managed top performing Canadian neutral fund and top performing
fund with 203% return in 2017 cryptocurrency fund
▶ Founded award winning event driven arbitrage ▶ Degree in Finance
fund ▶ CFA Level II candidate
▶ Managed 4-time award winning market neutral fund
▶ Degrees in Finance, Engineering
▶ CFA charterholder

CONFIDENTIAL 9
The Proof is in the Pudding
RSAM Funds Return Since Inception
225% ▶ 4-time award winning market neutral
200%
fund; 1st place at Canadian Hedge
175%
Fund Awards (Best 5 Year Sharpe
Ratio)
150%
Cumulative Return (%)

125% Cryptocurrency
▶ 16 consecutive combined years with
100%
Fund: 105.6% positive gross returns while
Investment outperforming Scotiabank Canadian
75% Fund: 93.8% Hedge Fund Index since inception
50%

25%
Opportunities ▶ Top performing Canadian fund with
Fund: 40.4%
203% return in 2017 (Cryptocurrency
0%
Fund)
-25%

Track record of success running up to $80 million AUM in award-winning

alternative strategies for nearly 400 clients
CONFIDENTIAL 10
Market Overview
Canadian Exchange Traded Fund Market

• Canadian ETF assets in 2017 totaled $147 billion, up from $113.7 billion in 2016
• In 2017, a record $26 billion flowed into Canadian ETFs, up 56%
• Liquid alternatives market expected to be over $100 billion¹

Global Crypto Market

• Current crypto asset market is >$300 billion with the potential to grow to $10 trillion²
• Initial coin offerings raised >$3 billion in 2017
• Nascent asset-backed token market has potential to reach >$100 billion

Total addressable market is $100 billion - $1 trillion

CONFIDENTIAL 11

1. CIBC World Markets, “Canadian Liquid Alternatives 2.0: The Next Market Disruptor”
2. RBC Capital Markets, “Crypto Currency & Blockchain Technology: A Decentralized Future”
Marketing Strategy
▶ Differentiated client-focused marketing centered on educating and enlightening market with
consistent content: research, thoughts and “teach-ins”
▶ Free conferences in every major city, events, conference calls, blog, podcasts
▶ Heavy use of social media to publish content
▶ Target market includes financial advisors, institutions and retail investors
▶ Along with client-focused social media strategy, superior investment performance drives flows
▶ Seeking partnerships with various distributions channels such as robo-advisors, brokerages,
financial institutions, crypto exchanges
▶ Significant opportunity in nearly 400 former clients of Ross Smith

Accelerate: Because Performance Matters

CONFIDENTIAL 12
Product Suite
• Quantitative factor-based Canadian equity strategy
Multifactor Enhanced Hedge Fund • 100% net long (e.g. 150% long 50% short)

Multifactor Absolute Return Hedge • Quantitative factor-based long-short Canadian equity strategy
Fund • 50% - 80% net long (e.g. 130% long 50% short)

Multifactor Market Neutral Hedge • Quantitative factor-based market neutral Canadian equity strategy
Fund • 0% - 30% net long (e.g. 130% long 100% short)

• 10+ years of investing in merger transactions with history of alpha

Merger Arbitrage Fund • Proprietary database of over 2,000 risk arbitrage deals

• Leveraged portfolio of North American small / mid-cap value stocks

Private Equity Fund • Replicates private equity leveraged buyout strategy

CONFIDENTIAL 13
Product Suite (Cont’d)
• Actively managed cryptocurrency fund that fits in regulatory environment
Cryptocurrency Fund • Managed by most experienced cryptocurrency portfolio manager in Canada

• Leveraged, momentum-driven dynamic macro asset allocation

Global Macro Fund • “All weather” strategy

• Concentrated portfolio of 20 stocks of proven compounders

Outsiders Fund • Ie. Berkshire Hathaway, Constellation, Charter, Danaher, TransDigm

Tail Risk Fund • Provides insurance-like protection from market declines

Long Short Trend Hedge Fund • Quantitative momentum long-short Canadian equity strategy

CONFIDENTIAL 14
Product Suite (Cont’d)

NEGATIVE ZERO 1.3

BETA BETA 0.5 BETA 1.0 BETA BETA

Market Global Merger Absolute Private

Tail Risk Trend Enhanced Outsiders Crypto
Neutral Macro Arbitrage Return Equity

Accelerate’s “secret sauce”: a product for every market environment

CONFIDENTIAL 15
Blockchain Growth Opportunities
▶ Vast majority of global population lacks access to basic investment opportunities that North
Americans take for granted
▶ Opportunity to provide trusted tokenized funds accessible in an instant through a mobile device:
▶ Stable Coin Access to a legitimate USD-denominated money market fund
▶ MSCI World Access to global equity market
▶ S&P 500 Access to world’s largest equity market
▶ Inverse Crypto Provides hedging opportunities

Nascent tokenized fund market provides opportunity to offer

countless traditional investment products
CONFIDENTIAL 16
Why Accelerate?
▶ Seasoned executive team with experience running innovative hedge funds and alternative
strategies
▶ Established products alternative investment strategies with “real-money” track records or back-
tested performance
▶ Research driven quantitative strategies
▶ Proprietary knowledge, data and technology built over 10 years provides durable competitive
advantage
▶ Track record of success in raising and managing investor capital
▶ Substantial relationships with brokers and sell-side

Accelerate has the track record, relationships and established products

to become a leader in two new growth markets
CONFIDENTIAL 17
Business Plan
▶ Accelerate earns revenue as a % of assets under management
▶ Assuming $100 billion Canadian liquid alternatives market by 2026, a 1% market share will see
Accelerate manage $1 billion
▶ Growth plan includes hiring PhD-level team of data scientists / quantitative analysts to drive R&D,
leading to additional proprietary datasets and alpha-generating quantitative investment strategies,
further widening competitive moat
▶ Performance-oriented sales team and unique marketing strategy to drive fund inflows

Accelerate’s strategies have the capacity to manage $1 billion+

CONFIDENTIAL 18
Roadmap to $1 billion
$1,000.0 $12.0

$900.0
$10.0
$800.0

Assets Under Managerment ($mm)

$8.0

Revenue / EBITDA ($mm)

$700.0
$6.0
$600.0

$500.0 $4.0

$400.0
$2.0
$300.0
$0.0
$200.0
($2.0)
$100.0

$0.0 ($4.0)
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028

AUM (LHS) Revenue (RHS) EBITDA - Capex (RHS)

CONFIDENTIAL 19
Seed Stage Investment Opportunity
▶ Seeking $1 million in equity capital for 20% stake in the company
▶ Get product suite to commercialization stage (development, registration, filings, whitepapers)
▶ Build out of quant team
▶ Pre-launch sales and marketing
▶ Launching initial 3-4 products Jan 2019
▶ Expects to be profitable at $100 million AUM
▶ Estimated by year end 2019
▶ Has a roadmap to $1 billion in assets under management by 2028

Opportunity to partner with a seasoned and driven team

on the ground floor of a $100 billion - $1 trillion market
CONFIDENTIAL 20
Contact Information

Julian Klymochko
Founder & CEO
403.801.2445
[email protected]

THESE MATERIALS SHALL NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY ANY INTERESTS IN
ACCELERATE FINANCIAL TECHNOLOGIES OR ANY OF ITS AFFILIATES

The information contained herein reflects the view of Accelerate Financial Technologies as of the date of publication. All information provided in this
presentation is for informational purposes only and should not be deemed as investment advice or a recommendation to purchase or sell any specific security.
While the information presented herein is believed to be reliable, no representation or warranty is made concerning the accuracy of any data presented. In
addition, there can be no guarantee that any projection, forecast or opinion in this presentation will be realized. This presentation is confidential and may not
be reproduced without prior written permission from Accelerate Financial Technologies.

CONFIDENTIAL 21