Investing in companies of th e future.A unique, well defined process of investing in North American small and mid-capitalization biotechnology companies.

NEXT EDGE BIO-TECH PLUS FUNDMonthly Report as of

FUND COMMENTARY

The biotech sector was flat in September though the midcaps endured a sharp correction. The Next Edge Bio-Tech Plus Fund (the "Fund") returns were supported by three of its gene therapy investments: Sarepta Therapeutics Inc. (SRPT), Applied Genetic Technologies Corp. (AGTC) and Tocagen Inc. (TOCA). Gene therapy, a major focus of the Fund since its inception in 2015, will be the ultimate medical disruptor in the near future as it delivers potential cures to genetic-based diseases. Its model is a ‘one and done’ approach rather than treating chronic diseases over a lifetime. In the years ahead, investors will become enamoured with the breakthroughs that unfold, perhaps more so than they have with farmed commodity crops whose harvest enhances mood.

For September, the Fund’s Class A Units advanced +0.21% and the Class F Units appreciated +0.29%versus +4.67% for the Fund's Benchmark. Thereturns were in line with the Nasdaq Biotech Index(^NBI) which declined -0.19%, while the SPDR Equal-

weighted Biotech Index (^XBI) declined a significant -4.26%.

Nevertheless, the Fund's Benchmark continues to be skewed by the +60% marijuana weighted TSX Healthcare Index (^TTHC), which surged +13% on continued pot-mania. These ‘healthcare’ companies partnered with beer, and possibly tobacco companies, will serve the recreational consumer market. After all, nothing symbolizes health and longevity better than tobacco and alcohol.

Even though the percent of over 100 Canadian healthcare companies above their 200-day moving average declined sharply from over 60% to under 30% during the past six weeks reflecting significant sector weakness, nevertheless, the TSX Healthcare Index (^TTHC) vaulted upward in the face of this on the back of three cannabis companies. Perhaps this distortion has reached its zenith with the advent of legalization.

September 28, 2018

Source: Bloomberg Data, Concept: Next Edge Capital Corp.

For Existing Investors and Investment Professional Use Only. Please see accompanying important disclosures.

PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS

1 Toronto Street, Suite 200, Toronto, ON M5C 2V6 CLIENT SERVICES 1.844.656.2321 E info@nextedgecapital.comTF 1.877.860.1080 T +1.416.775.3600 W nextedgecapital.com

BIOTECH BAROMETER TECHNICAL OVERVIEW

We posted a more detailed mid-month chart book to our website to update where key breadth, sentiment, and valuation indicators were after the sharp -11% decline in the Nasdaq Biotech Index (^NBI) and -17% decline in the SPDR Biotech Index (^XBI) between the end of August to mid-October. Several breadth indicators point to significant oversold readings, last seen two years ago.

Click here to view

The percent of the top 250 biotech companies trading above their 50-day moving average declined to 20% from 60% in August, and down 75% from a year ago.

Source: Bloomberg Data, Concept: Next Edge Capital Corp.

The percent of the 191 Nasdaq Biotech Index (^NBI) companies trading above their 200-day moving average declined to 28% from 60% in August, also a two year low.

Source: Bloomberg Data, Concept: Next Edge Capital Corp. as of October 11, 2018

US & Foreign Equities

Canadian Equities

Cash

Finally, the ratio of the Price-to-Earnings Ratio of the S&P Biotech Index to the PE of the S&P 500 remains mired among the lowest readings over the past 25 years. As such, the sector remains appealing to value shoppers.

COMPOSITION OF HOLDINGS FOR SEPTEMBER 30, 2018

During September, U.S. and Foreign holdings declined from 52% to 45% due to monetizing gains on a few smaller cap holdings that had big rallies. Positions such as IntelGenix Technologies Corp. (IGXT), Applied Genetic Technologies Corp. (AGTC), Tocagen Inc. (TOCA) and Clementia Pharmaceuticals Inc. (CMTA) were reduced in weight after +30% to +50% rallies. They will be added back on a pullback.

Source: RBC Investor & Treasury Services Inc., Next Edge Capital Corp as of

The weight of Canadian holdings increased from 37% to 39% as a result of averaging down on core long-term positions after cash was increased from reducing several US holdings. Canadian Healthcare has been a challenging sector to earn positive returns so far in 2018 but that may reverse in the back half of 2018. Cash increased from 12% to 16% to provide more purchasing power in front of an anticipated correction in the market. That cash will be deployed again as soon as several core holdings have experienced a -20% corrections.

Source: Bloomberg Data, Concept: Next Edge Capital Corp.

September 28, 2018September 28, 2018

45%

39%

16%

FUND PERFORMANCE

Class A1 Class A11 Class F1 Class F11 Fund'sBenchmark2

NAV

1 month

YTD

1 year

3 year annualized

Annualized return since inception

Standard deviation

Worst drawdown

-30%

-20%

-10%

0%

10%

20%

30%

Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Apr-18 Jul-18

Class A Units Class F Units Fund's Benchmark

NEXT EDGE BIO-TECH PLUS FUND CLASS A UNITS1 & F UNITS1 VS. FUND’S BENCHMARK2

1 1 2

Source: RBC Investor & Treasury Services Inc., Next Edge Capital Corp.

1

- - - - -

23.13% 22.50% 22.54% 22.42% 23.65%

2.27% 4.14% 3.90% 5.05% 3.36%

5.18% 5.91% 5.67% 6.82% 5.77%

6.33% 7.77% 7.51% 8.96% 33.63%

5.97% 7.04% 6.86% 7.95% 22.07%

$10.82 $11.64 $11.54 $12.03 N/A

0.21% 0.32% 0.29% 0.40% 4.67%

-32.25% -31.68% -31.81% -31.23% -43.25%

April 13, 2015 (Class A Units Inception Date) to September 28, 2018

HISTORICAL PERFORMANCE1 Class AJAN FEB MA R A PR MA Y JUN J UL A UG SEP OCT NOV DEC Y TD

2018

2017

2016

2015

HISTORICAL PERFORMANCE1 Class A1JAN FEB MA R A PR MA Y JUN J UL A UG SEP OCT NOV DEC Y TD

2018

2017

2016

2015

HISTORICAL PERFORMANCE1 Class FJAN FEB MA R A PR MA Y JUN J UL A UG SEP OCT NOV DEC Y TD

2018

2017

2016

2015

HISTORICAL PERFORMANCE1 Class F1JAN FEB MA R A PR MA Y JUN J UL A UG SEP OCT NOV DEC Y TD

2018

2017

2016

2015

JAN FEB MA R A PR MA Y JUN J UL A UG SEP OCT NOV DEC Y TD

2018

2017

2016

2015

HISTORICAL PERFORMANCE2 Benchmark

-

0.48%4.05% 0.87% 6.40%--

26.51%8.58%1.35%

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-

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-- -- --

--

-

------

--

-

-- -- --

-- -- -- -

-- -- --

-30.94%-2.62%2.81%-10.37%0.78%-2.57%2.03%3.79%-3.07% -9.03% 8.51%-5.30%-18.33%

5.84%*9.67%0.70%-14.52%-8.95%6.76%-1.68%4.53%**--

3.95%-3.01%1.24%-1.80%-0.85%-2.63% 7.97% 0.93%6.17%2.68%

5.52%*0.80%7.38%-1.22%-6.66%-2.31%4.98%-4.18%0.34% 3.69% 1.43%1.97%**--

-7.12%6.72%3.01%-9.23%5.09%2.19%0.88%5.12%2.43% -7.85% 14.21%-6.16%-19.21%

13.70%-0.75%0.02%1.68%5.67%1.69%-8.58%3.18%2.50% 9.66% -12.31%8.08%4.32%

7.95%*------0.40%4.72%2.47%-8.62%1.80% 2.22% -2.74%2.02%6.20%

3.69% -7.10% 0.79%3.38%-0.59% -3.19% 7.01% 12.82% 4.67% -- -- -- 22.07%*

4.15%*0.67%7.21%-1.35%-6.79%-2.43%4.86%-4.29%0.22% 3.56% 1.31%1.93%**--

-8.30%6.65%2.92%-9.33%4.97%2.06%0.76%5.01%2.40% -7.94% 14.09%-6.36%-19.29%

13.08%-0.86%-0.08%1.57%5.59%1.66%-8.60%3.12%2.24% 9.55% -12.41%8.01%4.85%

6.86%*------0.29%4.56%2.36%-8.72%1.69% 2.11% -2.85%1.92%6.07%

4.44%*0.69%7.27%-1.32%-6.76%-2.41%4.88%-4.26%0.24% 3.58% 1.33%1.93%**--

-19.27% -6.24% 14.12%2.34% 5.04% 0.78% 2.09% 5.00% -9.31% 2.95% 6.69% -8.01%-7.92%

4.74% 8.05% -12.39%9.56%2.47% 3.13% -8.69% 1.60% 5.58% 1.59% -0.07% -0.84% 13.20%

6.10% 1.94% -2.83%2.13%1.71% -8.70% 2.38% 4.56% 0.32% -- -- -- 7.04%*

-- -- 0.81%3.25%-- -6.01%*** 4.76% -2.52% -6.94% -1.44% 7.15% 0.57% -1.25%*

-19.36% -6.35% 14.00%-8.01%2.23% 4.93% 0.73% 1.96% 5.06% -9.56% 2.73% 6.71% -9.11%

4.70% 9.94% -12.49%9.44%2.23% 3.04% -8.81% 1.49% 5.47% 1.47% -0.17% -0.94% 13.74%

5.97% 1.84% -2.94%2.02%1.60% -8.80% 2.26% 4.43% 0.21% -- -- -- 5.97%*

1. Next Edge Bio-Tech Plus Fund returns are net of all fees and expenses associated with ClassA Units charged from May 1st, 2015. Next Edge Bio-Tech Plus Fund returns are net of all fees andexpenses associated with Class A1 Units, Class F Units, and Class F1 Units charged from March 1st, 2015. Thehistorical annualized rates of return for the Next Edge Bio-Tech Plus Fund Class A Units as of September 28, 2018for Class A are 1 yr 6.33%, 3 yr 5.18%, 5 yr – N/A, 10 yr – N/A, CARR 2.27% for Class A1 are 1 yr 7.77%, 3 yr 5. 1%, 5 yr –N/A, 10 yr – N/A, CARR .1 % for Class F are 1 yr 7.51%, 3 yr 5.67%, 5 yr – N/A, 10 yr – N/A, CARR 3. 0% for Class F1are 1 yr 8. 6%, 3 yr 6.82%, 5 yr – N/A, 10 yr – N/A, CARR 5.05%.

i 40% of the percentage gain or loss of the S&P/TSX Capped Health Care Index; plusii 60% of the percentage gain or loss of the NASDAQ Biotechnology Index

The Benchmark returns are unaudited and subject to final confirmation. The historical annualized rates of return for the Benchmark for as of September 28, 2018 are 1 yr 33.63%, 3 yr 5.77%, 5 yr – N/A, 10 yr – N/A, CARR 3.36%.

The Benchmark is not representative of the Fund’s investment strategy as the Fund invests in small and mid-capitalization biotechnology and healthcare companies based in the US and Canada whereas the Benchmark involves investing in predominantly large capitalization biotechnology and healthcare companies based in the US and Canada.

* Part Year** Part Month start date: February 17, 2015 to February 27, 2015.*** Part Month start date April 13, 2015 to April 30, 2015

There are inherent limitations in any comparison between a managed portfolio and a passive index. Each index is unmanaged and does not incur management fees, transaction costs or other expenses associated with a private fund. There are risks inh erent in h edge fund investing programs.

Note to Investment Professionals: The information in the Monthly Report is being provided to current investors in the Fund and is being provided to their registered dealers for informational purposes only.

This is not a sales literature and cannot be used as such.

The Fund is not a trust company and does not carry on business as a trust company and, accordingly, the Fund is not registered under the trust company legislation of any jurisdiction. Units of the Fund are not ‘deposits’ within the meaning of the Canada Deposit Insurance Corporation Act (Canada) are not insured under provisions of that Act or any other legislation.

No securities regulatory authority has expressed an opinion about these securities and it is an offence to claim otherwise. These securities have not been and will not be registered under the United States Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold in the United States or to U.S. persons except pursuant to an exemption from th e registration req uirements of th ose law s.

The information provided herein is for information purposes only and does not constitute a solicitation, public offering, advice or recommendations to buy or sell interests in the Fund, the Portfolio, Units or any other Next Edge Products. Please refer to the Fund’s prospectus for more information on the Fund as any information in this Report is qualified in its entirety by the disclosure therein.

Opinions expressed are those of the author as of the date of their publication, are subject to change and may not reflect the opinion of all members of the Company. Some statements contained in this material concerning goals, strategies, outlook or other non-historical matters may be “forward-looking statements” and are based on current indicators and expectations at the date of their publication. We undertake no obligation to update or revise them. Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those implied in the statements.

For Existing Investors and Investment Professional Use Only. Please see accompanying important disclosures.

PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS

1 Toronto Street, Suite 200, Toronto, ON M5C 2V6 CLIENT SERVICES 1.844.656.2321 E info@nextedgecapital.comTF 1.877.860.1080 T +1.416.775.3600 W nextedgecapital.com

2. The Benchmark for the Next Edge Bio-Tech Plus Fund is: