CORPORATE OVERIVEW MARCH 2019

Transcription

1 A Niche Market Growth Company in the U. S. Cannabis Industry CSE: VCAN CORPORATE OVERIVEW MARCH

2 Disclaimer STIKEMAN Certain statements contained in this presentation constitute "forward-looking information" as such term is defined in applicable Canadian securities legislation. The words "may", "would", "could", "should", "potential", "will", "seek", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions as they relate to the Company. Such statements reflect the Company's current views and intentions with respect to future events, and current information available to the Company, and are subject to certain risks, uncertainties and assumptions. The forwardlooking information included are made as of March 11, 2019 and the Company undertakes no obligation to publicly update or revise any forward-looking information, other than as required by applicable law. VCAN holds or is acquiring marijuana assets in the United States. Previously disclosed acquisitions are still subject to closing. Marijuana is legal in each state VCAN is looking to operate, however marijuana remains illegal under US federal law and the approach to enforcement of US federal law against marijuana is subject to change. Shareholders and investors need to be aware that adverse enforcement actions could affect their investments and that VCAN's ability to access private and public capital could be affected and or could not be available to support continuing operations. For additional information about forward looking statements and the risks of investing, please refer to the page on our website with the conference call transcript. All figures are in Canadian dollars unless otherwise indicated. Disclaimer 2

3 A Large, New and Developing Market in the U.S. for Cannabis The U.S. market for cannabis, which was largely non-existent 10 years ago, is expected to reach $45 billion by 2027 The market is in the early stages of adoption and development Market segments are just forming as the regulatory framework continues to be organized Cannabis is being regarded by a large and wide demographic in the US as a legitimate medical treatment and lifestyle alternative Market Size 3

4 Ventura Cannabis (CSE:VCAN) Investment Highlights Clear Strategy for Long-term Value Business Model: A Niche-focused, Branded Products Business with Vertical Integration A revenue generating, vertically integrated approach and data driven strategy to dominate niche markets with specialized products Acquire or build a revenue generating distribution network of sales centers (dispensaries, detox centers, etc.) as a first step to obtain data and customer preference information Identify favorable niche markets through data collected at sales centers Invest in branded products (from strain to sale) to address the niche market needs First niche specialized market is addiction treatment a strain and product for opioid addiction Strong Platform for Near Term Growth: Revenues and Cash Cannabis-focused detox business had 2018 revenues of $10M; expected to grow through THC/CBD revenues 2019 expected annualized revenues from 3 cannabis dispensary acquisitions take total annualized revenues to $13M expected to grow through post acquisition integration plan Balance Sheet: Over $5M in cash; $3M in leverage-able assets Cap Table: 35 million shares outstanding; $27M market cap (as of Feb 28, 2019) Investment Highlights 4

5 Vertical Integration in a Specialized Niche: Strain-to-Sale Dominate Niche Markets; Generate Significant Revenues With High Margins and Solid Barriers to Entry Sale Branded Products Strain Acquire or Build Distribution Network of Dispensaries and Sales Centers 3 acquisitions underway (1 in California, 2 in Oregon) Increase revenues in the short-term through additional acquisitions management has a deep pipeline of deals Increase 2019 revenues through greenfield centers (several licensing applications underway) creates potential for targeted demographic sales centers Specialized Products and Brands to Address Niche Markets First Niche Market Already in Process: A CBD/THC product for addiction treatment Vetted through existing network of rehab centers Invest in product design and functionality to best suit the needs to the niche Develop TCH/CBD strains for Niche Markets Invest in strain development to address the specific demographic needs Strain-Sale 5

6 Growth Strategy Targeted and Data Driven Step 1 Building, through acquisitions and greenfield start-ups, a distribution network of sales centers that directly sell cannabis to consumers Sales centers include dispensaries, detox clinics, or other customer facing business with direct sales of cannabis to the consumer It is a low cost method to get data on trends as well as having the revenue benefit of owning a large network of distribution at the same time There is an ulterior motive in acquiring these sales centers or dispensaries to ultimately vertically integrate into several lucrative, fast-growing and sustainable niches Step 2 Launching or acquiring brand-oriented products design, manufacturing and strain development Using data from the revenue generating sales centers build a data-driven branded product designed for certain specialized and niche market segments A focus on brands specifically the design, process and manufacturing of products targeted for the niche demographics Focusing on niche markets generally results in significant barriers to entry, superior margins and high growth profiles = niche domination Growth Strategy 6

7 Revenue Growth Plan Immediate revenue target of $25M can be reached through several paths with the current balance sheet Additional acquisitions of small dispensaries Deep pipeline of acquisition targets at x revenues (3 already in process) Targeted approach with a focus on customer demographics Acquire talent and management along with the revenues and assets Organic growth postacquisition/integration Improve operations and introduce more sophisticated analysis of customer base Expand licensing in the location Create event-based opportunities Improve retail store aesthetics Focus on increasing per visit revenue by offering additional products and services to existing customers Greenfield licensing - build additional sales centers from scratch Plan underway to build several greenfield centers Applications are underway $2M has been set aside and is expected to generate over $10M in annual revenues when fully ramped Revenues from cannabis sales to addicts Plan underway to capitalize on a deep database of patients and expertise in the niche Revenue Growth Plan 7

8 The First Niche- Addiction Treatment Using THC/CBD Annualized Revenues of $10M from detox services with immediate opportunity to increase sales with cannabis products in California 1000 patients per year eligible for THC treatment Over 7,000 patients in the database from over 7 years of operation (both in and outpatient) for eventual THC marketing Growing momentum for using THC as a method for treatment for addiction cravings $10M in current annualized sales from Detox centers $13M in annualized revenues once 3 additional dispensaries are closed $25M in annualized sales = short term revenue goal with current market cap $50M in annualized sales = medium range goal as products are developed and additional greenfield operations come online First Niche 8

9 Summary / Capital Structure Clear Strategy For Long Term Value Focus on Brands and Products While Building Revenue Generating Distribution Vertically integrated approach and data driven strategy to dominate niche markets with specialized products Acquire distribution network as a first step to get revenues, cash flow, data and customer preferences First niche specialized market is addiction treatment a strain and product for addicts $13M expected in Annualized Revenues for Q Short-term Plan to Achieve $25M in Annual Revenues Through Four Channels: Greenfield/start-up sales centers Acquisitions of existing revenue generating centers Post-acquisition organic revenue growth through integration and business improvements Cannabis sales for addiction treatment Strong and Experienced U.S. Management Team Focused on Execution and Urgency Market Cap = $27M (as of February 28, 2019) - 35 million shares outstanding Summary 9