Growgeneration Corp. · NASDAQ:GRWG
Growgeneration — 2019 Gateway Conference
17 slides from Growgeneration's conference presentation, Sep 5, 2019
Slide 1: 2019 Gateway Conference
OTCQX: GRWG 1 2019 Gateway Conference - September 4 th - 5 th growgeneration.com OTCQX: GRWG
Slide 2: Safe Harbor Statement
OTCQX: GRWG 2 Safe Harbor Statement 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
Slide 3: GrowGeneration is the Supply Chain to the Grower and Cultivator
OTCQX: GRWG 3 • GrowGeneration is a leading marketer and distributor of nutrients, growing media, advanced indoor garden, lighting and ventilation systems and accessories for hydroponic gardening. • M and A and Greenfield Strategy, fragmented industry • Market Size of Hydroponic equipment sales in e
Slide 4: Current GrowGeneration Operations
OTCQX: GRWG 4 Current GrowGeneration Operations growgeneration.com
Slide 5: GrowGeneration Expansion Strategy
OTCQX: GRWG 5 GrowGeneration Expansion Strategy growgeneration.com Potential one of the largest adult use markets 107 potential licenses once recreational licensing opens in 2020 224 active cultivation licenses (THC & CBD) Largest concentrated of licenses are in Clark County Medical and recreational
Slide 6: GrowGeneration locations and corporate divisions
OTCQX: GRWG 6 growgeneration.com GrowGeneration Corp. 24 locations, 9 States HeavyGardens.com Omni - Channel Hemp Corp. Supply Chain to Hemp Farmers Commercial Management Corp. Capital Projects GrowGeneration Distribution Product Exclusives Corporate Divisions
Slide 7: 2019 Highlights
OTCQX: GRWG 7 • Acquired 7 stores and opened 4 stores, 2 in Tulsa, 1 in OK and 1 in Brewer, ME • Closed on $12.8 million in financing in June 2019 • Cash and cash equivalents at June 30, 2019 was $17 million • Successfully integrated Rhode Island, Michigan and Maine store locations into our new ERP
Slide 8: Proven Robust Track Record of Acquisitions
OTCQX: GRWG 8 growgeneration.com 2016/2017 2015 2014 2018 • $25M in acquisitions completed in 2018 • Over $25M in new acquisition completed in 2019 • Purchased all the inventory and product trademarks from 3 rd largest Distributor • Acquisitions are accretive and present significant profit growth •
Slide 9: GrowGeneration Locations
OTCQX: GRWG 9 growgeneration.com Oklahoma City, OK Santa Rosa, CA GrowGeneration Locations
Slide 10: GrowGeneration Locations
OTCQX: GRWG 10 growgeneration.com Livonia, MI GrowGeneration Locations
Slide 11: Marketing & Branding
OTCQX: GRWG 11 growgeneration.com Humboldt/Mckinleyville, CA Out of Home – Billboard In - Store Merchandising Livonia, MI Vehicle Wraps Trade Shows MJBIZ CON 2018 – Las Vegas Social Media Instagram/Facebook All Locations Marketing & Branding
Slide 12: Company Highlights and Q2 2019 Financial Highlights
OTCQX: GRWG 12 growgeneration.com National coast to coast wholesale distributor of hydroponic grow supplies – Over 100% growth year over year with over $25m in acquisition in 2019 • ~$25 bn highly fragmented market • Serving commercial cultivation professionals • Complementary value - add consulting
Slide 13: 4-Wall Economics
OTCQX: GRWG 13 2019 2020 • Gross Profit 30% 31% • Operating Expenses 14% 13% • G and A 7% 6% • Adjusted EBITDA 9% 12% 4 - Wall Economics growgeneration.com
Slide 14: ROI: Store Acquisition – New Store Buildout
OTCQX: GRWG 14 • Store Acquisition ROI - $5,000,000 – Total cost of acquisition, $2.4 million – Acquisition was 2.7 times EBITDA – Payback period expected to be less than 2.25 years • New Store ROI - 10,000 sq. ft. – Store Racking/retail fixtures/buildout/delivery vehicle, $250,000 – Initial Invento
Slide 15: Cap Table September 3, 2019
OTCQX: GRWG 15 Cap Table September 3, 2019 growgeneration.com Cap Table as of September 3, 2019 FDS % Ownership Common Stock (authorized 100,000,000; $.001 par value): 36,168,524 84.7% Preferred Stock (authorized 0; $.001 par value) - 0.0% Total Outstanding Stock: 36,168,524 0.00% Equity Warrants to
Slide 16: Fueling Growth: Plan to $250M+ Revenue
OTCQX: GRWG 16 • Store acquisitions closed to date, over $25M in revenue • Demonstrated ability to open new stores in new markets in 45 - 60 days (organic growth) • Strong pipeline of over $50M of M and A • 3 New locations plan to open in Q4 • Annualized purchasing power of over $50M resulting in in
Slide 17: Company Contact
OTCQX: GRWG 17 Company Contact Darren Lampert , Chief Executive Officer Michael Salaman , President GrowGeneration Corp., Denver, CO Tel 800.935.8420 | darren@growgeneration.com growgeneration.com Contacts