Slide 1: Leading the Nicotine Vape Revolution
Leading the Nicotine Vape Revolution Investor Update August 2024 This document is for the use of recipient only and should not be copied or distributed to any other person or entity. (CSE: NIC)
Slide 2: Disclaimer
2 Disclaimer Forward-looking Statements This private and confidential document has been prepared by the management of Delota Corp. (“Delota” or the “Company”). It does not constitute or form part of, and should not be construed as, an offer, solicitation or invitation to subscribe for, underwrite or
Slide 3: Corporate Overview
3 Corporate Overview Delota Corp. is at the forefront of Canada's smoke-free movement, offering groundbreaking alternatives to traditional combustible tobacco. Catering specifically to adult Company Snapshot consumers, our aim is to redefine the way individuals transition away from smoking by provid
Slide 4: Investment Highlights
4 Investment Highlights ✓ Untapped Market Potential $2 billion market by 2025 in Canada alone; Delota outpaced industry growth by 25.5%. ✓ Strong Recurring Revenue $34MM in revenue for the 12 months ended January 31, 2024; 40% gross margin and positive Adj. EBITDA ✓ Diversified Revenue Split Nicotin
Slide 5: Shaping the Nicotine Vape Revolution
5 Shaping the Nicotine Vape Revolution Canadian Nicotine Vape Market1 vs Delota Vape Revenue ($ MM) Why Delota is well positioned? $2,500 $35 • The Canadian nicotine vape market continues its Canadian Nicotine Vape Market Size (LHS) robust growth, set to reach a staggering $2 billion by Delota Nicot
Slide 6: Vape Product Categories
6 Vape Product Categories Pods Hardware Nicotine Vape Revenue by Product Category 7.7% 8.1% 23.1% E-liquids 61.1% Disposables Disposables E-Liquids Pods Hardware
Slide 7: Diverse Revenue Mix
7 Diverse Revenue Mix Primary (Nicotine Vape) Secondary B2C B2B Partnership Cannabis 22 corporately-owned brick- Authorized supplier to 9 Merchandising and marketing and-mortar stores in Ontario franchisee locations and a 3 corporately-owned brick– investments from Big and a Canada-wide small-scale
Slide 8: 180 Smoke Overview
8 180 Smoke Overview Average Monthly Corporate Store and Online Sales ($) Brick & Mortar $3,000,000 Number of Stores1: 31 Monthly Online Sales Average Monthly Traffic 3K Monthly Corporate Store Sales $2,500,000 per Store2: $2,000,000 Online Delota acquires 180 Smoke Website: 180smoke.ca $1,500,000 A
Slide 9: 180 Smoke – Significant ROI
9 180 Smoke – Significant ROI Woodbridge Square Conversion Key Areas of Improvement Elevated Retail Experience • Revamped store following 180 Smoke's brand guidance • Implemented consistent product mix and streamlined advertising & promotion activities • Unified new and existing customers through th
Slide 10: Offside Cannabis Overview
10 Offside Cannabis Overview Monthly Revenue ($) and Gross Margin (%) Brick & Mortar $300,000 Pickering store Clifton store 31.0% closure (Aug 2023) closure (Oct 2023) Number of Stores: 3 28.3% 29.0% $290,000 Average Monthly Traffic 3K 28.7% 28.2% 26.5% 27.0% per Store1: 27.0% $280,000 25.2% 25.9% 2
Slide 11: Key Milestones and Capital Structure Summary
11 Capital Structure Summary Key Milestones Issued & Outstanding Common Shares: 29,110,330 2021: Add: Convertible Debentures 9,000,000 ✓ March 2021 – Completes acquisition of 180 Smoke; a strategic investor acquires all of the debt of 180 Smoke. Add: Issued Warrants 10,535,715 ✓ May 2021 – Appoints
Slide 12: Experienced Leadership Team
12 Experienced Leadership Team Cameron Wickham Ankit Gosain, CPA, CA, CFA Christina Pan, MBA Daniel Pelchovitz Executive Vice Chair & CEO Chief Financial Officer Chief Operating Officer Director, CEO of Cannabis Division Mark Pelchovitz Steven Glaser Marc Askenasi Executive Chair Director Director
Slide 13: Investment Summary
13 Investment Summary ✓ Untapped Market Potential $2 billion market by 2025 in Canada alone; Delota outpaced industry growth by 25.5%. ✓ Strong Recurring Revenue $34MM in revenue for the 12 months ended January 31, 2024; 40% gross margin and positive Adj. EBITDA ✓ Diversified Revenue Split Nicotine
Slide 14: The Future of Nicotine
14 THE FUTURE OF NICOTINE Contact Us: Delota Corp. (CSE: NIC) 7941 Jane Street, Unit 2 Concord, ON L4K 2M7 ir@delota.com www.delota.com