Gsrx Industries Inc · OTC:GSRX
Gsrx Industries — Investor Presentation (February 2019)
34 slides from Gsrx Industries's investor presentation, Feb 28, 2019
Slide 1: February 2019 Update Investor Presentation
“6G 8 RX INDUSTRIES FEBRUARY 2019 UPDATE INVESTOR PRESENTATION
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS ‘GSRX industries Inc. | OTCOB: G5RX Statements in this presentation may be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "anticipate", "believe", "estimate", "expect", “intend', and similar expression
Slide 3: Table of Contents
GGSRX Industries inc. | OTCOB: GSRX 04, 05. 06. 07. 08. TABLE OF e CONTENTS 6 Company Overview Management Board of Directors Board of Advisors Operations Flow Chart GSRX Operations in US. Pure and Natural CBD Point Arena Palm Springs Puerto Rico Opportunity US Cannabis Growth Rates Industry Comps GS
Slide 4: Corporate Overview
CORPORATE OVERVIEW Point Arena, CA Palm Springs, CA ‘GSRX industries Inc. | OTCOB: G5RX Confidential “Any unauthorized use or cissemination of this communication is strictly prohibited.
Slide 5: Experienced Management Team
EXPERIENCED MANAGEMENT TEAM Les Ball, CEO Gustavo Pinto Executive Vice President, Puerto Rico Operations Mr. Pinto has extensive operational experience g several customer service, manufacturing, istics for large scale companies over the past 10 years. John Grainer tor of Operations and Sales Mr. Gra
Slide 6: Board of Directors
BOARD OF DIRECTORS Christian Briggs Executive Chairman of the Board Mr. Christian Briggs co-founded Cinsay Inc. in 2007, which is engaged in the development of an interactive advertising, marketing and e- commerce video platform. From 2009 to 2016, Mr. Briggs served as Chairman of the Board of Direc
Slide 7: Board of Advisors
BOARD OF ADVISORS Luis F. Toledo-Bayouth Asecurit ‘alist with more than 20 year experience, Toledo-Bayouth began his career as ecial Agent for the U.S. Drug Enforcement Prevention for Olympic Mills Corporation before opening the Toledo Consulting Group, Inc., a ate security firm he led for 15 years.
Slide 8: Operations Flow Chart
Operations Flow Chart GSRX Industries Inc. CALIFORNIA PUERTO RICO | Pure and Natural, LLC OPERATIONS OPERATIONS ‘Hemp CBD Products q POINT ARENA MANUCATURING: GREEN SPIRIT RETAIL ‘Manufacturing and Processing DISPENSARIES 50) NASHVILLE, TN RETAIL STORE POINT ARENA DISTRIBUTION Wholesale Cannabis Dis
Slide 9: GSRX Industries Inc. Operations in US
GSRX INDUSTRIES INC. OPERATIONS IN US Through its subsidiaries, GSRX is a cannabis, THC, and hemp focused company operating in California, Texas, Tennessee, and Puerto Rico as follows: California: Distribution and Manufacturing operations; dispensary and delivery operations. 1 dispensary currently o
Slide 10: Vertically-Integrated Business Model
VERTICALLY-INTEGRATED BUSINESS MODEL MANUFACTURING | RETAIL THC PERMITTED | DISTRIBUTOR, AND CBD STORES TRANSPORTATION & HOME DELIVERY
Slide 11: Pure and Natural CBD retail store launch
GSRX is set to launch several retail stores under the wholly owned subsidiary and brand name “Pure and Natural CBD” in the United States (anticipated to open first half of 2019) which will be based in strategic locations in several key markets. Through these retail stores, GSRX will offer a broad @W
Slide 12: Demographic Snapshot
DEMOGRAPHIC SNAPSHOT AUSTIN LOCATION anes SMES 2018 Total Population 8 105 LAKEWAY, TX 78734 2018 Average HH Income 3 5 $157.14 2018 Daytime Popul 21,361 34,159 Pure & Natural specializes in creating premium, full spectrum CBD products with organic agricultural practices and cutting-edge technology.
Slide 13: Nashville Location
NASHVILLE LOCATION Very close to Amazon’s new executive operations center at The Gulch, which will bring 5,000 jobs to the area, making it the largest jobs announcement in Tennessee history. Close to many hospitals, including Vanderbilt Medical Center, TriStar Centennial Medical Center, Nashville Ge
Slide 14: Clarksville Location
CLARKSVILLE LOCATION Trade Area Facts Governor's Square Mall + OurGovernor’s Square Mall kiosk will be the first of several kiosks to offer top-quality CBD products. Governor's Square Mall Facts 1 November 2014 1.1 milion + 9. ft +h ‘i iL IN Eval Madisoy Cape ,\sPraducah Girardeau.) * Union City ia
Slide 15: In The Zone
IN THE ZONE CBD ENERGY + FOCUS e VERY BERRY BLUEBEF 500M¢ IN THE ZONE IN THE ZONE f usnceoricat
Slide 16: Point Arena, CA
Point Arena, CA ‘GSRX industries Inc. | OTCOB: G5RX a, sMendocin POINT ARENA DISTRIBUTION * Point Arena distribution can buy directly from the growers and manufacturers and sell to the dispensaries located throughout the entire state of California. Not only will we manufacture, but through our distr
Slide 17: Point Arena Manufacturing, LLC
POINT ARENA MANUFACTURING, LLC * GSRX Industries Inc., its recently issued state and local permits, is in the business pending final approval of manufacturing products related to vape cartridge filling and fulfillment * According to Arcview, vape cartridges were a once-overlooked category with sales
Slide 18: Point Arena The Green Room
POINT ARENA THE GREEN ROOM ndocino Coast = First dispensary acquired in Point Arena on April 1, 2018 = Asmall boutique dispensary on the southern Mendocino coast. Located on HWY 1 a short tance from the ocean in the Heart of Point Arena, a little town with alot of personality! We currently sell both
Slide 19: Palm Springs The Green Room
PALM SPRINGS THE GREEN ROOM = GSRX currently leased space for an approximately 5,000 square foot dispensary in Palm Springs, California. It'll be one of the largest dispensaries in Southern California. Green Room Palm Springs will be one of the very first stores as you enter the city. * Close to sur
Slide 20: Early-Mover Advantage in Puerto Rico
Early-Mover Advantage in Puerto Rico * Economics could accelerate addition of adult use * Reciprocating agreement with medical marijuana card holders from other states; an estimated 10 million tourists visited the istand in 2016. The 2018/2019 cruising season is expected to witness a record-breaking
Slide 21: Carolina Dorado
CAROLINA DORADO OPEN OPEN ‘Trupilo Bajo, Caroling 00987, Puerta Rico Paseo del Plata Shopping Center, 696 Avenue José Efrén #3, Dorado, 00646, Puerto Rico + A high-density population over 175,000, Carolina isa tourist center for vacationers from all over the world. + One of the wealthiest communitie
Slide 22: Hato Rey / Fajardo
HATO REY César Luis Gonzélez, San Juan, 00918, Puerto Rico San Juan's most densely populated district located in close proximity to a largeconcentration of doctor's offices and medical practices. =] SSS Confidential ~Any unauthorized use or dsemination ofthis commurication is strictly prohibited FAJ
Slide 23: San Juan Bayamon
SAN JUAN BAYAMON OPEN UNDER CONSTRUCTION 509 Av. Andalucia, San Juan, 00920, Puerto Rico 15 Av. Lomas Verdes, Bayamén, 00956, Puerto Rico + SanJuan - the capital and largest city in Puerto Rico with nearly 400,000 + Witha large population of 240,000, Bayamén is second onlyto SanJuan residents. inpop
Slide 24: Caguas / Condado
CAGUAS IED — AWAITING PRE QUALIFICATION Carr, #1 Km27.8 Caguas, PR One of the largest municipalities, with a population of closeto 140,000 Located in the largest valley in Puerto Rico, the "Vallede Caguas” (or "Valle del Turabo-Turabo Valley") which it shares with Gurabo and partof ‘Aguas Buenas. It
Slide 25: Guaynabo Isla Verde
GUAYNABO ISLA VERDE R CON uN RUCTION AWAITING FINAL INSPECTION Urbanizacién Mufoz Rivera, Calle Acuarela C-15 (local, Guaynabo, Puerto Rico, 00969 1060 Av. Isla Verde, Carolina, Puerto Rico00913 The most popular beach vacation destination in allof Puerto Ricofor both residents and tourists, luring b
Slide 26: Old San Juan Green Spirit
Green tu OLD SAN JUAN Spirits - CONSTRUCTION TO BEGIN SOON + Old San Juan “San Juan Antiguo’, is one of the most popular cruise destinations in the Caribbean and the most visited place in Puerto Rico. * Dispensary is next to the Governor’s mansion and located in “Old San Juan’, the tourist trafficis
Slide 27: US Cannabis Growth Rates
US Cannabis Growth Rates CALIFORNIA MARLIUANA SALES GROWTH sas 28 SE ‘GSRX industries Inc. | OTCOB: G5RX WASWINGTON MARLIUANA SALES GROWTH tase te $1.18 sascm =m 123M _S4M 2013 2014 2015 2016 2017 2018 isa ‘sore PROJECTED $1.38 Seo eae scone a ~ sam on i ee a a 2012 2013 2014 2015 2016 2017 2018 ‘Co
Slide 28: Industry Comps
INDUSTRY COMPS Company Name Aphria Inc Aurora Cannabis Inc Cannagrow Holdings Inc Canopy Growth Corporation Cronos Group Inc Earth Science Tech Inc. GW Pharmaceuticals ple MedMen Enterprises Inc (CAD) Tilray Inc. United Cannabis Corp, GSRX Industries Inc. Ticker Price Close Market Cap Revenue (ttm)
Slide 29: Total Revenues
Total Revenues GSRX 2018/2019 QUARTERLY REVENUES $2.7-$2.9M $1.9M. (unaudited) $706,428 $353,430 $2196 gi718 «602718 «©Q3'18 «0418 0119 ACTUAL ACTUAL ACTUAL FORECAST FORECAST ‘OTCOB: GSRX Confidential “Any unauthorized
Slide 30: Gross Margin %
Gross Margin % GSRX CALIFORNIA/PUERTO RICO/CBD COMBINED GROSS MARGIN % 62.61% 53.25% 45.13% 4732% 48.44% 13% 893899988 a a a3 18 0418 01 19 2018 2018, 2018 ACTUAL FORECAST FORECAST (24 Gross margin based onthe actual October gross margins of 4 stores, 3c. | OTCOB: GSRX
Slide 31: Project 1493 LLC Five-Year Projection
Project 1493 LLC Puerto Rico Dispensaries FiveYear Projection. 2019 2020 20a 2022 2023, Revenues: Dorado $ 3,000,000 3,500,000 | $ "3,675,000 3,675,000 3,675,000 Carolina 2,700,000 3,240,000 3,402,000 3,402,000 3,402,000 Hato Rey 2,500,000 3,000,000 3,150,000 3,150,000 3,150,000 Jandalucia 2,500,000
Slide 32: 2018 Revenues, COS and Gross Margin
GSRX Industries Inc. 2018 Revenues, COS and Gross Margit (Unaudite) second Thi Fourth Totals for Quarter uarter Quarter orl -December PuertoRico Revenues 132525 527383 4,501,283 261,751 Cost of sales 7314 294984 796,802 4.168,099, Gross Margin 55.211 232,959, 704,482 992,652, Gross Morgin “41.66% 44
Slide 33: Pure and Natural LLC Kiosk Pro Forma
Pure and Natural LLC Kiosk Pro Forma FiveYear Projection Diz mths 3-24 mths 25-36 mths 37-48 mths 49-60 mths. Revenues Retail sales $4,775,000 $ 2,125,000 2,231,250 2,342,816 2,459,954 Total Revenues 3,775,000 2,125,000 2,231,250 2,342,816 2,459,954 Coes. [Cost of Products ‘887,500 4,062,500 4,115,6
Slide 34: Corporate Contact
CORPORATE CONTACT: Thomas Gingerich Chief Financial Officer Building No. 3, P. R. 696 Int. Jose Efron Ave. Dorado, PR, 00646 +1 (214) 808-8649 tom @greenspiritrx.com GSRX INVESTOR PRESENTATION FEBRUARY 2019 UPDATE OTCQB: GSRX GSRX = Puerto Rico www.greenspiritrx.com www.getpureandnatural.com ‘GSRX i
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