Slide 1: Where The Pros Go To Grow
Darren Lampert, CEO /Co - founder Michael Salaman, President/Co - founder December 7, 2016 Where The Pros Go To Grow
Slide 2: Safe Harbor
2 Safe Harbor This presentation is being provided for information purposes only and does not constitute an offer to sell or a solicitation of an offer to purchase any of the Company’s securities. This presentation is not intended, nor should it be distributed, for advertising purposes, nor is it int
Slide 3: GrowGeneration Corp.
GrowGeneration Corp. Corp. 3 GrowGeneration Corp. (“GrowGen”) owns and operates specialty retail hydroponic and organic gardening stores in Colorado, California and Nevada. * (As of 12/2/2016) Exchange OTCQB Ticker GRWG Headquarters Denver, CO Number of Employees 40 Founded 2014 Stock Price $2.70 Ma
Slide 4: Investment Considerations
• Specialty retail focus. We do not touch the plant. • Focused on the picks and shovels of cultivation - equipment and grow supplies. • Targeting home and commercial growers. • Operation and Sales centers near concentrated areas of growers. • Customized and consolidated inventory solutions for the c
Slide 5: Capital Structure
0 500,000 1,000,000 1,500,000 2,000,000 Capital Structure 2014 2015 2016 Capitalization (as of Dec. 1,2016) Year 2014 2015 2016 Number of Investment Shares 1,300,000 2,465,000 1,890,714 Number of Management Shares 5,100,000 292,833 - Total Number of Shares Outstanding 6,400,000 9,157,833 11,048,548
Slide 6: Revenue Growth
Thank you. $0.00 $2.00 $4.00 $6.00 $8.00 $10.00 2014 2015 2016* 2016 (Projected) GrowGeneration 4 Stores 8 Stores 11 Stores 12 Stores Number of Stores Revenue Growth in Millions $2M $3.5M $5.6M $8M Revenue Growth 6 * as of 9 - 30 - 2016 130% Revenue Growth 2015 - 2016
Slide 7: Key Performance Indicators
Key Performance Indicators • Each $1,000,000 in capital acquires 3,000,000 in revenue. • Stores operate at a 18% operating income. • Average store sq. ft. is 5,000 - 10,000. • Average rent is $10 per sq. ft. • Inventory turns every 90 days. • Average inventory value per store $250,000. • Gross Profi
Slide 8: GrowGeneration Company Highlights
GrowGeneration Company Highlights 8 Business Activities • Currently one of the largest chain of hydroponic/gardening stores, with 12 stores in CO, CA, and NV. • On Nov. 14, 2016, signed a 5 year lease , for 10,000 sq. ft. in Las Vegas for its 12 th store. • Opened 5,000 sq.ft.operation in Denver Apr
Slide 9: Hydroponic Cultivation Acceleration
Hydroponic Cultivation Acceleration • Legal cannabis has created a massive growth opportunity for the hydroponics industry. • Projected market size for hydroponic equipment and grow supplies is in the Billions. • Even without national legalization, the U.S cannabis market potential by 2020 is $23b.
Slide 10: Growth Strategy 2017 - 2018
10 • Year end 2016, revenue run rate forecasted to be over $10.0 M. Fueled by continued organic growth and the addition of new stores the company will open or acquire. • Focus on building out Denver metro market, with the addition of a 2 nd store, giving GrowGen a North and South Denver presence. •
Slide 11: National Expansion
National Expansion revised Alabama Arizona Arkansas California Colorado Florida Georgia Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Mexico New York North Carolina North Dakota Ohio Oklahom
Slide 12: Growth Drivers - A Singular Solution For the Grower
Growth Drivers - A Singular Solution For the Grower 12 Equipment & Growing Supplies • Sales, marketing and distribution near growers Dispensary Ancillaries • One stop shopping for all vertically integrated dispensaries GGEN Distribution • Proprietary products and direct to manufacturer items Online
Slide 13: Store Branding - Where the Pros Go To Grow
Store Branding - “Where the Pros Go To Grow” 13
Slide 14: Ecommerce Strategy
Ecommerce Strategy • We intend to create the largest searchable inventory of grow supplies on the Internet, well over 10,000 unique products. • Flexibility to order online and have products shipped direct to grow facilities or pick them up at a GrowGeneration store. • GrowGen will enable the growers
Slide 15: Darren Lampert and Michael Salaman
Darren Lampert - Chief Executive Officer and a Director since inception • F ounding member of the law firm of Lampert and Lampert, where he concentrated on securities litigation, NASD (now FINRA) compliance and arbitration and corporate finance matters . • P ortfolio manager and proprietary trader a
Slide 16: Directors and Strategic Investor
• Steven Aiello has been a Director since May 2014. Mr. Aiello was a partner at Jones and Company from 2003 - 2006. From 2001 - 2003, Mr. Aiello was a partner at Asset Management and from 1987 - 2001, he was a partner at Montgomery Securities. Mr. Aiello received a B.A. in Psychology from Ithaca Col
Slide 17: Thank you.
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