Medicine Man Technologies Inc. · OTC:SHWZ
Medicine Man Technologies — Investor Presentation (August 2022)
28 slides from Medicine Man Technologies's investor presentation, Aug 17, 2022
Slide 1: Corporate Presentation | August 2022
1 OTCQX SHWZ NEO SHWZ CORPORATE PRESENTATION | AUGUST 2022
Slide 2: Safe Harbor
2 OTCQX:SHWZ | NEO:SHWZ SAFE HARBOR This presentation contains “forward - looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 . Forward - looking statements can be identified by words such as “believes,” “plan,” “expects,” “projects,” “anticipates,” “will,”
Slide 3: Leading, Vertically Integrated Retail Operator Driving Brand Development with a Regional Focus
3 3 We are a Leading, VERTICALLY INTEGRATED Retail Operator Driving BRAND DEVELOPMENT with a REGIONAL Focus
Slide 4: Schwazze at a Glance
4 OTCQX:SHWZ | NEO:SHWZ 4 HEADQUARTERS Denver, Colorado Operating in Colorado and New Mexico RETAIL (1) 33 Dispensaries #2 IN COLORADO (23) #5 IN NEW MEXICO (10) CULTIVATION MANUFACTURING AT A GLANCE Note: (1) Based on number of active adult - use stores 7 Facilities 111K ft 2 Indoor 2 Acres Outdoor
Slide 5: Well positioned to take advantage of a hypergrowth industry
5 OTCQX:SHWZ | NEO:SHWZ Well positioned to take advantage of a hypergrowth industry 20 45% 18% ANNUAL 11% MONTHLY States where Cannabis is Legal Recreationally (1) of the U.S. Population Lives in Recreationally Legal States U.S. Cannabis Use Incidence CANNABIS TODAY Note: (1) As of June 2022
Slide 6: The Strategy
6 OTCQX:SHWZ | NEO:SHWZ Our goal is to create value by becoming number 1 in the markets we serve as preferred retailers and memorable brands creators. GO DEEP IN RETAIL RUN LEAN DRIVE HOUSE BRANDS MEASURE AND MANAGE Diversified, focused, growing asset portfolio in Colorado and New Mexico Efficiently
Slide 7: Going Deep: What It Is & Why It Matters
7 OTCQX:SHWZ | NEO:SHWZ GOING DEEP WHAT IT IS & WHY IT MA T TERS Sales Volume Geographic Coverage Brands She lf Space Economies of Scale Consumer Choice 7 OTCQX:SHWZ | NEO:SHWZ Concentrated retail operations drive market share gains and cost efficiencies, a winning long - term strategy
Slide 8: Super Regional Footprint
8 OTCQX:SHWZ | NEO:SHWZ COLORADO Cannabis Retail Sales (2021) (1) $2.1B 12M Incidence (18+) (1) 18% Population (2020) (2) 5.8M Increase Since 2010 (2) 15% NEW MEXICO Cannabis Retail Sales (2021) (1) $264M 12M Incidence (18+) (1) 13% Population (2020) (2) 2.1M Increase Since 2010 (2) 3% 8 SUPER REGIO
Slide 9: New Mexico Expected Growth 200% by 2026
9 OTCQX:SHWZ | NEO:SHWZ NEW MEXICO EXPECTED GROWTH 200% BY 2026 (1) MANUFACTURING RETAIL CULTIVATION 1 facility 6K ft 2 10 retail locations 26K+ ft 2 83K+ ft 2 of cannabis production 9K ft 2 incremental being developed 9 OTCQX:SHWZ | NEO:SHWZ $- $100,000,000 $200,000,000 $300,000,000 $400,000,000 $5
Slide 10: Our House of Brands
10 10 OUR HOUSE OF BRANDS >30% market share CO wholesale distillate (1) COLORADO & NEW MEXICO COLORADO & NEW MEXICO COLORADO COLORADO NEW MEXICO 4 grows in CO & 3 in NM 19 dispensaries in CO 4 dispensaries in CO 10 dispensaries in NM Note: (1) Per internal estimates using BDSA data
Slide 11: Why Brands Matter
11 OTCQX:SHWZ | NEO:SHWZ SCHWAZZE Enterprise Value / 2022 Adjusted EBITDA (Consensus) BRANDED CPG PRIVATE LABEL WHY BRANDS MATTER 11 Source: Company filings, FactSet as of 6/30/22 CY 2022 ADJ. EBITDA & MARGIN (CONSENSUS) Market Cap $0.2 $34 $117 $272 $91 $184 $100 $230 $345 $88 $48 $43 $45 $306 $106
Slide 12: Brand Building Success: Third Party
12 OTCQX:SHWZ | NEO:SHWZ 29.40% 27.61% 28.03% 25.97% 29.64% 27.97% 25.41% 24.46% 24.43% 22.65% 21.23% 15.01% 19.41% 18.87% 15.45% 21.32% 20.77% 20.84% 23.88% 25.28% 24.98% 28.91% 29.31% 30.14% 30.89% 41.93% 31.15% 30.96% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21
Slide 13: Brand Building Success: Internal Brand
13 OTCQX:SHWZ | NEO:SHWZ 13 OTCQX:SHWZ | NEO:SHWZ BRAND BUILDING SUCCESS 13% 11% 10% 16% 17% 20% 20% 27% 20% 7% 12% 17% 22% 27% 6/1/2021 7/1/2021 8/1/2021 9/1/2021 10/1/2021 11/1/2021 12/1/2021 1/1/2022 2/1/2022 % of Vape Category Sold One time promotion 20 % Of Vape Category Sold by Internal Brand
Slide 14: Purplebee's Manufacturing Production Improvement
14 OTCQX:SHWZ | NEO:SHWZ 529.7 414.6 628.0 592.2 858.9 717.4 350 450 550 650 750 850 2020 Q3 2020 Q4 2021 Q1 2021 Q2 2021 Q3 2021 Q4 189 % 14 OTCQX:SHWZ | NEO:SHWZ Total Finished Goods Produced (kg) Increase in Bulk Output Since April 2020 Acquisition (1) Acquisition PURPLEBEE’S MANUFACTURING PRODUC
Slide 15: Retail Operating Playbook
15 OTCQX:SHWZ | NEO:SHWZ RETAIL OPERATING PLAYBOOK Retail Acquisition Impact – Gross Margin 5.5% Average Retail Gross Margin Improvement Two Quarters Post Acquistion 45% 50% 55% 60% 65% 70% Last Pre-Acquisition Quarter SHWZ 1st Quarter SHWZ 2nd Quarter Star Buds Smoking Gun Drift Emerald Fields Aver
Slide 16: CO Retail COGS Management
16 OTCQX:SHWZ | NEO:SHWZ CO RETAIL COGS MANAGEMENT 16 OTCQX:SHWZ | NEO:SHWZ Note: As a % of Total COGS includes spot buys | for Participating Suppliers is only for permanent reductions Total COGS Reductions Period As a % of Total COGS As a % of Total COGS for Participating Suppliers FY 2021 1.8% 14.
Slide 17: Management Team
17 17 experience managing public enterprises, overseeing multifunctional management 30+ years CFO of Forward Foods , oversaw improvements in revenue, margins and EBITDA Nancy Huber Chief Financial Officer JUSTIN DYE Chief Executive Officer, Chairman Led the growth of Albertsons sales from ~$10B to ~
Slide 18: Making a Difference
18 OTCQX:SHWZ | NEO:SHWZ MAKING A DIFFERENCE Operational Excellence QUALITY GOVERNANCE SOCIAL ENVIRONMENT We understand that diversity and engagement make for a better and more enriched Company We are dedicated to making a difference in the communities and neighbourhoods in which we operate and serv
Slide 19: Current Capital Structure
19 OTCQX:SHWZ | NEO:SHWZ 19 OTCQX:SHWZ | NEO:SHWZ CURRENT CAPITAL STRUCTURE $ 1.15 Stock Price 06/30/22 Source: Company filings and estimate, FactSet as of 6/30/22 Notes (1) Assumes outstanding preferred stock converted to common stock at $1.20 per share for purposes of calculating equity value; inc
Slide 20: Q2 2022 Performance
20 OTCQX:SHWZ | NEO:SHWZ Q2 2022 PERFORMANCE Selected Highlights for the Second Quarter Ended June 30, 2022 20 OTCQX:SHWZ | NEO:SHWZ Note: Adjusted EBITDA represents income (loss) from operations, as reported, before tax, adjusted to exclude non - recurring items , other non - cash items, including
Slide 21: Peer Comparison
21 OTCQX:SHWZ | NEO:SHWZ Source: Company filings, FactSet as of 6/30/22 Note: Peer set pro forma for all significant M&A PEER COMPARISON Rising Industry Leader Trading at a Discount SCHWAZZE TOP 5 MSOs REGIONAL MSOs Enterprise Value / 2022 Adjusted EBITDA (Consensus) ($ in millions) Market Cap $157
Slide 22: Financial Trends
22 OTCQX:SHWZ | NEO:SHWZ 2019 2020 2021 2022 Analyst Consensus 48.3% 29.7% 50.5% 29.8% 30.7% (31.7%) 94% Y - o - Y growth 352% Y - o - Y growth 67% Y - o - Y growth FINANCIAL TRENDS 22 OTCQX:SHWZ | NEO:SHWZ 2019 to 2022 Financials Gross Margin Revenue Adjusted EBITDA Margin $200,000,000 $0
Slide 23: Unlocking the full potential of the cannabis plant
23 23 Justin Dye Chief Executive Officer We are committed to UNLOCKING THE FULL POTENTIAL of the cannabis plant to IMPROVE the HUMAN CONDITION.
Slide 24: Contact
24 24 CONTACT Joanne Jobin, Investor Relations T 647 - 964 - 0292 E ir@Schwazze.com W Schwazze.com CORPORATE OFFICE Schwazze 4880 Havana St., Ste 201 Denver, CO 80239 T 303 - 371 - 0387 OTCQX & NEO SHWZ
Slide 25: Appendix
25 25 APPENDIX
Slide 26: Management Experience
26 OTCQX:SHWZ | NEO:SHWZ MANAGEMENT EXPERIENCE Justin Dye Chief Executive Officer & Chairman, Director 25+ years of experience in private equity, general management, operations, corporate finance and M&A. He led the growth of Albertsons from ~$10Bn to over ~$60Bn in sales with over 2,300 stores and
Slide 27: Board of Directors
27 OTCQX:SHWZ | NEO:SHWZ BOARD OF DIRECTORS Jeff Garwood Jeff Garwood founded and is the Managing Member of Liberation Capital, a private equity fund focused on providing modular, repeatable waste to value project finance. He is also the co - owner of Zysense, an entity providing high precision meas
Slide 28: Adjusted EBITDA Reconciliation
28 OTCQX:SHWZ | NEO:SHWZ Source: Company filings Note: Adjusted EBITDA represents income (loss) from operations, as reported, before tax, adjusted to exclude non - recurring items, other non - cash items, including stock - based compensation expense, depreciation, and amortization, and further adjus
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