Minnesota Medical Cannabis Cultivation and Distribution. Presentation to Minnesota Department of Health October 28, 2014

Transcription

1 Minnesota Medical Cannabis Cultivation and Distribution Presentation to Minnesota Department of Health October 28,

2 INTRODUCTION 2

3 Today s Presenters Peter Bachman Ethan Ruby Jon Lane Daniel Emmans Jeremy Applen Paul Bachman Dag Sohlberg Mitch Baruchowitz Kelly Henry Andrew Bachman, M.D. President/CEO, LeafLine Labs (LLL) Co-founder/Member, Board of Governors & President/CEO, Theraplant Master Grower Member/Chief Operating Officer Manager, Compliance and Quality Control Member, Board of Governors Member, Advisory Board; Security and Law Enforcement Member, Board of Governors Member, Advisory Board; Business Operations Member, Board of Governors 3

4 A Perfect and Potent Partnership Family Pharm + Theraplant Comprised of members of longtime, Highest scoring of only four licensed successful Minnesota business family. medical cannabis manufacturers in Access to large-scale, high quality the state of Connecticut horticultural experience First to market as of September 2014 Unparalleled retail and business (7 months from licensure). experience with live plants. Operations Lead Team has several Medical credentials and patient years of Colorado experience and focus. combined decade(250+ Commitment to quality and integrity. grow/harvest cycles) perfecting medical cannabis production methods. Strong credentialed team from both sides of partnership. Executive Leadership, Product Development & Extractions, Pharmacy, Security, Operations, Retail and more. 4

5 Theraplant: Watertown, CT 64,000 sq. ft. fully operational and scalable pharmaceutical production facility on 10 acres of property with the utmost of safety and security protocols. 5

6 Real results: Theraplant 1 st to harvest, 1 st to dispensaries, 1 st to patients in Connecticut 6

7 PRODUCTS 7

8 Products Overview & Philosophy Commitment to Compliance: Form, Nomenclature/Labeling, Packaging/Safety Innovation Mindset Extraction Expertise 8

9 Product Lineup and Innovation Plan/Vision Pure oils of varying viscosity, tinctures in bottle and individual carpule formats, oils packaged for vaporization in pens or other apparatuses, and pill capsules. As innovations become proven, we will seek to offer patients the best of what s available in the industry as allowed under the Minnesota rules. 9

10 OPERATIONS10

11 LeafLine Labs: Proposed Cottage Grove, MN site Prepared to break ground on a acre location, directly after registration, with construction development partner Ryan Companies. 11

12 LeafLine Labs: Proposed Cottage Grove, MN site 12

13 Construction Schedule Key Dates Temporary Facility--8,000 sq. ft. Start Date: 12/2/14 Occupancy and First Planting: 1/16/15 First Harvest: 6/4/15 Processing, Testing, Packaging, Delivery: First Medicine distributed on 7/1/15 Permanent Facility--50,750 sq. ft. Early Occupancy 7/9/15 Full Occupancy Project Complete 7/21/15 13

14 Trade Secret - Redacted 14

15 Cultivation Operations Overview Medical Cannabis Operations + Practical Business Experience Two distinct and complementary Training Programs MCC + SOPs Proven, stage-based Cultivation protocols Multi-faceted Contamination Risk Minimization plan Pre-emptive, Integrated Pest Management plan Significant CO2 Supercritical Fluid Extraction experience and investment Comprehensive Quality Assurance/Control protocols via explicit, step-by-step Batch Production Recording standard operating procedures On-the-ground knowledge of staffing qualifications, roles and scaleability Horticultural Product Technicians ( HPTs ) 15

16 Product and Waste Streams Process Flows PRODUCT STREAM WASTE STREAM Plant Start (Seed or Clone) Vegetative Growth (2-6 weeks) Drying/Curing (1-2 weeks) Processing (Homogenization, trimming, extraction) (1-2 weeks) OC Lab Testing/Hold (Vault) (2-4 weeks) Further processing (Extraction Products) (1 weeks) Packaging and Labeling Product Hold (Vault) Flowering (6 weeks) Harvest (1 week) Lab Results Content and Contaminants Pass Non-viable plants, males, trimmings, fan leaves, stems, strings, stalks Processing Waste (fine trimmings, machine waste, extract source materials) Fail Non Drug Waste Quarantine Drug Waste Quarantine Packaging waste (trimmings, stems) Disposal (compost, landfill) Secure Destruction (incineration) 16

17 Dispensary Operations Our Dispensary Lead Team has spent thousands of hours caring directly for patients, along with decades of retail expertise. We have outlined an assumption-based model for optimizing the patient experience Scheduling First-time visits/consultations Follow-up/refill Visits Initial capacity at ~300 first-time patient consults per week (20-30 minutes each) Following initial critical mass, anticipate capabilities for ~100 refills per day in combination with smaller flow of first-time patients. Staff will be trained and supplied with various systems and tools for adequate patient medicine information. Minimum staffing would include (per location): 1 (one) pharmacist, 1 (one) receptionist, 1 (one) technician; Maximum staffing would include: 3 (three) pharmacists, 3 (three) receptionists, 3 (three) technicians and 1 (one) distribution site manager. 17

18 Dispensary Locations Overview Service Area A District 3: 8450 Xerxes Ave. N., Brooklyn Park*, MN 55444; operational by Jul. 1st, 2015 District 7: st St S., Willmar, MN 56201; operational by Dec. 31st, 2015 District 1: 121 Sioux Road, Mankato, MN Mar. 31st, 2016 District 5: nd Ave. N., New Hope, MN 55427; operational by Jul. 1st, 2016 Trade Secret - Redacted Service Area B District 2: 4640 Slater Rd, Eagan, MN 55122; operational by Jul. 1st 2015 District 8: 3899 Minnesota 73, Hibbing, MN 55746; operational by Dec. 31st 2015 District 6: rd Ave. S., St. Cloud, MN 56301; operational by Mar. 31, 2016 District 4: 1664 Suburban Ave., St. Paul, MN 55106; operational by Jul. 1st,

19 SECURITY 19

20 Security Experience We will meet or exceed the highest security standards and protocols in the industry. We have a model of success: Fully compliant, operational and 24/7/365 secure Connecticut facility (Theraplant), with zero incidents to-date We have vast insight into what is needed to properly protect a manufacturing facility and distribution centers. Core Security Team has learned and practiced safe and effective techniques to avoid diversion of cannabis while also providing a safe environment for employees. Have provided security to dozens of businesses and high profile individuals across all security situations, with capability of providing security in any threat scenario. Our detailed facility security plan was drafted with input from local law enforcement and will be implemented by LeafLine Labs employees in partnership with one of the large, Minnesota-based security services providers with whom we have consulted, such as Allied Barton. 20

21 Cultivation Center Security Overview - External Security Information - Redacted 21

22 Cultivation Center Security Overview Internal Security Information - Redacted 22

23 Transportation Security Overview Security Information - Redacted 23

24 Dispensary Security Overview Security Information - Redacted 24

25 FINANCE & ORGANIZATION STRUCTURE 25

26 Corporate Structure/Governance BOG Structure offers different expertise and perspective LLC structure maximizes structural transparency More than 60 investors-reflects that others have recognized that our governance and books and records are constructed in most professional manner BOG will be expected to oversee operations and look at the industry from 30,000 ft and make sure that best practices and other innovations are identified and evaluated for MN operation Strict budgetary control and experience in the industry separates our Board. We aren t generalists trying to run a medical cannabis business. We are experts in medical cannabis. 26

27 Financial Information - Redacted 27

28 Financial Information - Redacted 28

29 Organization Org chart is structured to maximize oversight and replication Top down expertise from experienced operators Org chart will be augmented by operators in real time 29

30 APPLICANT S CHOICE 30

31 FINAL PANEL QUESTIONS 31