Medicine Man Technologies Inc. · OTC:SHWZ
Medicine Man Technologies — Investor Presentation (December 2021)
26 slides from Medicine Man Technologies's investor presentation, Dec 9, 2021
Slide 1: Investor Presentation December 7th, 2021 - Growth by Design
OTCQX: SHWZ Investor Presentation December 7 th , 2021 GROWTH BY DESIGN
Slide 2: Safe Harbor
OTCQX: SHWZ | 2 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,” “anticipates,” “will,” “should,” ”position
Slide 3: Our Strategic Vision
OTCQX: SHWZ | 3 OUR STRATEGIC VISION Leading, Vertically Integrated Operator in our Markets Clear Acquisition & Growth Strategy Consciously Sourced Brands & Products Value Creation & Community Support for all Stakeholders
Slide 4: Strategic Business Update
OTCQX: SHWZ | 4 STRATEGIC BUSINESS UPDATE ▪ Announced capital raise of $95 million from investors on December 3, 2021 – Senior secured convertible notes ▪ Signed definitive documentation to acquire Reynold Greenleaf & Associates, LLC (“RGA”) on November 29, 2021 – Leading cannabis cultivation, manuf
Slide 5: Senior Secured Convertible Notes
OTCQX: SHWZ | 5 SENIOR SECURED CONVERTIBLE NOTES ▪ $95 million gross proceeds ▪ 13% interest rate (9% cash, 4% PIK) ▪ 5 - year maturity ▪ Convertible into Schwazze common stock at $2.24 per share (117.5% of 5 trading day VWAP prior to signing) (1) ▪ Secured by a 1 st lien on unencumbered assets and
Slide 6: Entry into New Mexico
OTCQX: SHWZ | 6 ENTRY INTO NEW MEXICO Schwazze announces definitive agreement to acquire Reynold Greenleaf & Associates, LLC and Elemental Kitchen and Laboratories,LLC RETAIL CULTIVATION MANUFACTURING 10 Retail Locations 26K+ ft 2 26K+ ft 2 of Cannabis Production 65K ft 2 incremental being developed
Slide 7: Acquisition Pipeline
OTCQX: SHWZ | 7 ACQUISITION PIPELINE YTD TARGET STATE PURCHASE PRICE STATUS Total Cash Debt Equity Signed Closed CO $118.7 $44.9 $44.3 $29.5 December 2020 March 2021 Southern Colorado Growers CO 11.3 5.9 5.4 June 2021 July 2021 CO 3.5 1.9 1.6 June Brow CO 6.9 6.9 August CO 4.2 4.0 0.2 (1) November C
Slide 8: Pro Forma Footprint
OTCQX: SHWZ | 8 PRO FORMA FOOTPRINT Existing Schwazze dispensaries Pending acquisitions COLORADO Cannabis Retail Sales (2020) $2.2B 12M Incidence (18+) ~27% Population 5.8M Increase Since 2010: 13% NEW MEXICO Cannabis Retail Sales (2020) ~$200M 12M Incidence (18+) ~21% Population 2.1M Increase Since
Slide 9: Schwazze Value Proposition
OTCQX: SHWZ | 9 SCHWAZZE VALUE PROPOSITION Note: (1) Pro forma for acquisitions of Drift, Brow, Smoking Gun, Emerald Fields and RGA Fast Growing Regional Platform Attractive Acquisition & Growth Pipeline Leadership – Best - in - Class Operational Techniques, Access to Capital Operational Playbook Dr
Slide 10: Management Team
OTCQX: SHWZ | 10 Justin Dye Chief Executive Officer, Chairman Nancy Huber Chief Financial Officer Todd Williams Senior Advisor, Strategy Nirup Krishnamurthy Chief Operating Officer Dan Pabon General Counsel & Government Relations ▪ 25+ years of experience in private equity, general management, opera
Slide 11: Company + Industry Overview
COMPANY + INDUSTRY OVERVIEW Building a “Super Regional” Retail – Manufacturing – Cultivation OTCQX: SHWZ | 11
Slide 12: Sector Tailwinds
OTCQX: SHWZ | 12 SECTOR TAILWINDS Annual: 18% Monthly: 11% U.S. Cannabis Use Incidence Positioned to Take Advantage of a Hypergrowth Industry 45% U.S. Population Living in Recreationally Legal State Note: (1) As of November 2021 18 States Recreationally Legal (1)
Slide 13: Schwazze at a Glance
OTCQX: SHWZ | 13 SCHWAZZE AT A GLANCE Cultivation (1) : 115K ft 2 Indoor 35 Acres Outdoor 60K ft 2 Hoop Houses $239M Market Cap (3) (12/2/2021) 32 Retail Locations (1) $32 - $34M 2021E EBITDA (2) $50M - $65M 2021E PF EBITDA (1) Denver, CO Headquarters $110 - $115 M 2021E Revenue (2) $175M - $200M 20
Slide 14: Brands
OTCQX: SHWZ | 14 BRANDS ROLLING OUT A SUCCESSFUL VERTICAL INTEGRATION FORMULA FOR GROWTH & SUCCESS TO OTHER STATES & MARKETS Note: (1) Pro forma for Drift and Smoking Gun Announced 2021 2 high - volume, upscale dispensaries (7.4K sq. ft. retail space) and additional brand partnership Acquired 2020 -
Slide 15: Prior Acquisition & Success
OTCQX: SHWZ | 15 PRIOR ACQUISITION & SUCCESS Mesa Organics – Retail Impact PRODUCT MARGIN Acquisition Star Buds – Retail Impact PRODUCT MARGIN Purplebee’s – Manufacturing Impact MONTHLY BULK OUTPUT 196% increase since Apr. 2020 acquisition 13.9% increase since Apr 2020 acquisition 4.2% increase sinc
Slide 16: Retail, Cultivation, Manufacturing, R&D
OTCQX: SHWZ | 16 RETAIL CULTIVATION MANUFACTURING R&D SCHWAZZE BIOSCIENCES 32 Locations (1) ~86K retail ft 2 2 Facilities 13K ft 2 Manufacturing (3) Launched May 2021 Cannabinoid & Terpene Research ▪ Deploying grocery retail playbook to cannabis dispensaries ▪ Customer focused retail strategy ▪ Stro
Slide 17: Operational Excellence / Making a Difference
OTCQX: SHWZ | 17 Operational Excellence ▪ We understand that diversity and engagement makes a better and more enriched Company ▪ We are dedicated to making a difference in the communities and neighborhoods in which we operate and serve ▪ We listen to our customers’ needs and wants and make intellige
Slide 18: Q3 Performance
OTCQX: SHWZ | 18 Q3 PERFORMANCE Revenues Q3 2021 YTD Q3 2021 YTD Q3 2020 % Change Retail $20.7 $54.0 $1.9 N/A Wholesale $11.0 $27.7 $12.9 115% Other $0.07 $0.2 $1.3 (85%) Total Revenues $31.8 $81.9 $16.1 409% Cost of Goods & Services $16.8 $44.7 $9.9 Gross Profit $15.1 $37.2 $6.2 Gross Profit Margin
Slide 19: Financial Review
OTCQX: SHWZ | 19 FINANCIAL REVIEW Illustrative Range $0 $75 $150 $225 2019 2020 2021 2022 Pro Forma Revenue $0 $25 $50 $75 2019 2020 2021 2022 Pro Forma Adjusted EBITDA Target Growth Rate >20% Target Adj. EBITDA Margin >30% Note: (1) Mid - range of FY 2021 management guidance provided November 15, 2
Slide 20: Current Capital Structure
OTCQX: SHWZ | 20 Stock Price $1.91 9/30/21 Pro Forma Common Shares Outstanding 48 54 Total Preferred Shares ("As-Converted" to Common) 77 77 Fully Diluted Shares Outstanding 125 131 Equity Value $239 $251 Existing Debt 59 59 RGA Seller Note 17 Senior Secured Convertible Notes 95 Total Debt $59 $171
Slide 21: Peer Comparisons
OTCQX: SHWZ | 21 2021 EBITDA & Margin (Consensus) $300 $207 $314 $369 $485 $23 $29 $26 $81 $91 $98 $26 $33 $58 25% 25% 35% 48% 36% 11% 21% 21% 24% 19% 28% 14% 29% 31% 24.1x 15.9x 15.0x 10.6x 9.8x 28.6x 24.1x 22.2x 12.6x 12.4x 11.2x 10.5x 8.4x 6.5x PEER COMPARISONS ENTERPRISE VALUE / 2021 EBITDA (CON
Slide 22: Contact Information
“We are committed to unlocking the full potential of the cannabis plant to improve the human condition.” Justin Dye Chief Executive Officer Information 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,
Slide 23: Appendix
Sehinazee. APPEN DIX ‘OTeOK SH | 23
Slide 24: Adjusted EBITDA Reconciliation
OTCQX: SHWZ | 24 ADJUSTED EBITDA RECONCILIATION Source: Company filings Note: Adjusted EBITDA represents income (loss) from operations, as reported, before tax, adjusted to exclude non - recurring items, oth er non - cash items, including stock - based compensation expense, depreciation, and amortiz
Slide 25: Experience
OTCQX: SHWZ | 25 EXPERIENCE Dan Pabon, General Counsel and Government Relations: Experienced former Colorado State Representative who was instrumental in the writing and passing of cannabis laws in Colorado. Dan has 15+ years of expertise in emerging regulatory systems, legal research and legislativ
Slide 26: Experience
OTCQX: SHWZ | 26 EXPERIENCE Brian Ruden , Board of Directors: Since 2010, Brian Ruden has owned and operated cannabis businesses under the Star Buds brand. Under his leadership, Star Buds has become one of the most recognized and successful retail cannabis operations in North America. In 2014, Brian
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