Vireo Growth Inc · CSE:VREO
Vireo Growth — Goodness Growth Holdings — Investor Day (June 2021)
43 slides from Vireo Growth's investor day presentation, Jun 9, 2021
Slide 1: Investor Day June 9, 2021
Investor Day MN June 9, 2021 goodness
Slide 2: Forward Looking Statement Disclaimer
Forward Looking Statement Disclaimer CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION: This presentation includes information, statements, beliefs, and opinions which are forward-looking, and which reflect current estimates, expectations, and projections about future events, referred to herein
Slide 3: Management Introduction: Today's Agenda
Management Introduction Today’s Agenda: • Introduction • The Evolution to Goodness Growth • Who We Are • The Horizon Strategy • Achieve Scale Across the MSO Footprint • Build Trusted Consumer Brands & Experiences • Leverage Science for Better Outcomes • Financial Performance & Outlook • Q&A Session
Slide 4: The Evolution to Goodness Growth
THE EVOLUTION TO GOODNESS GROWTH 4
Slide 5: Holding Company Separates Plant-Touching & Ancillary Businesses
Holding Company Separates Plant-Touching & Ancillary Businesses U.S. Cannabis MSO Science & IP Incubator 5
Slide 6: Our Mission
Our Mission TO BRING THE POWER OF PLANTS TO THE WORLD 6
Slide 7: Who We Are
WHO WE ARE 7
Slide 8: Mission, Vision & Core Values
Mission, Vision & Core Values MISSION: To bring the power of plants to the world. VISION: A world where plants replace pharmaceuticals, alcohol, and tobacco. CORE VALUES: • Goodness: We fully respect and take care of our people, communities, and our planet. • Innovation: We forge new paths for human
Slide 9: A Proud Commitment to Our Communities
A Proud Commitment to Our Communities Ongoing Initiatives: • Partnering with Minorities for Medical Marijuana to host a series of Expungement Clinics which help people clear their records of non-violent cannabis charges. Over 100 records expunged at recent events in Maryland and Arizona. • Additiona
Slide 10: The Horizon Strategy
THE HORIZON STRATEGY 10
Slide 11: Horizon Strategy
Horizon Strategy 1. Achieve Scale Across 2. Build Trusted Consumer 3. Leverage Science for Our Operating Footprint Brands and Experiences Better Outcomes • Focus on Core Markets • Delight All Demographics with • Clinical Research; Proprietary Welcoming Retail Dispensaries Products & Formulations • M
Slide 12: Achieving Scale Across Our Footprint
ACHIEVING SCALE ACROSS OUR FOOTPRINT 12
Slide 13: Our MSO License Portfolio
Our MSO License Portfolio A unique portfolio of assets widely regarded as one of the most attractive in the U.S. cannabis industry… MN NY MA NV MD AZ NM Puerto Rico 13
Slide 14: Our MSO Operating Footprint
Our MSO Operating Footprint The MSO portfolio has been assembled through merit-based license awards and strategic M&A in markets where the Company can produce low-cost biomass outdoors at agricultural scale Core markets expected to transition to adult-use within the next 6-18 months Candidates for d
Slide 15: Per Capita Spending Patterns Reflect Strong Upside in Key Markets
Per Capita Spending Patterns Reflect Strong Upside in Key Markets Monthly Sales Per Capita Since Adult-Use Legalization $25 $20 $15 Current AZ & NM Medical Sales $10 Current MD Medical Sales $5 Current MN & NY Medical Sales $0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27
Slide 16: The Empire State Opportunity
The Empire State Opportunity 16
Slide 17: New York Retail Footprint & Expansion Plans
New York Retail Footprint & Expansion Plans We are positioned to capitalize on our first-mover advantage as 1 of 10 vertically-integrated manufacturers in New York’s expected $5B+ cannabis market Market Highlights & Expansion Plans Operating Footprint • Current Market Run Rate (Annual): $149M • We O
Slide 18: New York Manufacturing Expansion Update
New York Manufacturing Expansion Update We have submitted expansion plans to the state of New York for an additional 200,000 sq. ft. of cultivation and manufacturing capabilities Facility Expansion Highlights: • Current cultivation capacity = 41,600 sq. ft. • 100,000 sq. ft. expansion of full indoor
Slide 19: Minnesota Market Update
Minnesota Market Update Market Highlights & Expansion Opportunities Operating Footprint • Current Market Run Rate (Annual): $41M Operating Dispensaries • 8 Existing Green Goods Medical Dispensaries Moorhead Hermantown Manufacturing • 62% of dispensaries currently operating in / Duluth market Otsego
Slide 20: New Mexico Market Update
New Mexico Market Update Market Highlights & Expansion Opportunities Operating Footprint • Current Market Run Rate (Annual): $333M • 4 Existing Medical Dispensaries Santa Fe Operating Dispensaries Gallup • Plan to add at least 2 more dispensaries Future Dispensaries Albuquerque* within the next year
Slide 21: Arizona Market Update
Arizona Market Update Market Highlights & Expansion Opportunities Operating Footprint • Current Market Run Rate (Annual): $1.5B • Remodel and rebrand of Phoenix dispensary Santa Fe Operating Dispensary currently underway Current Manufacturing • Construction of second 9-acre outdoor cultivation Albuq
Slide 22: Arizona Expansion Update
Arizona Expansion Update thats —
Slide 23: Maryland Market Update
Maryland Market Update Market Highlights & Expansion Opportunities Operating Footprint • Current Market Run Rate (Annual): $529M • Recently-opened Frederick dispensary is Frederick Massey outperforming expectations • First wholesale sales from Massey cultivation facility Operating Dispensary Hurlock
Slide 24: Maryland Expansion Update
Maryland Expansion Update 24
Slide 25: Non-Core Assets Provide Long-term Optionality & Upside
Non-Core Assets Provide Long-term Optionality & Upside The Company has the potential to develop non-core assets in Massachusetts, Nevada, and Puerto Rico in the future… Nevada Site (13 acres) Puerto Rico Site (40 acres) Nevada and Puerto Rico assets provide additional hedge on low-cost production of
Slide 26: Build Trusted Consumer Brands & Experiences
BUILD TRUSTED CONSUMER BRANDS & EXPERIENCES 26
Slide 27: Green Goods Retail Dispensaries
Green Goods™ Retail Dispensaries 27
Slide 28: Differentiated Brands & Product Offerings
Differentiated Brands & Product Offerings A micro dose of cannabis in a traditional Premium-grade cannabis handpicked Trusted Pharmaceutical-grade Products pre-roll, offering the right feeling time and packaged, with deep aromatics Geared Toward Patients. and time again. Just Lite. Just Rite.™ and a
Slide 29: Differentiated Brands & Product Offerings
Differentiated Brands & Product Offerings tm A combination of THC and CBN in an Premium flower with longer Innovative soft gels that deliver elegant soft gel, designed to help lasting freshness and terpene consistent and precise doses for the consumers sleep better. enhanced packaging. desired effec
Slide 30: Leverage Science to Improve Outcomes
LEVERAGE SCIENCE TO IMPROVE OUTCOMES 30
Slide 31: Science & IP Incubator Provides Substantial Long-Term Upside Opportunity
Science & IP Incubator Provides Substantial Long-Term Upside Opportunity Resurgent Biosciences is a non-plant/fungus touching entity focused on the development and commercialization of products and technologies that could transform our future • Clinical Research of Cannabis and Psychedelic Medicines
Slide 32: Our Progress in Clinical Research is Frequently Overlooked
Our Progress in Clinical Research is Frequently Overlooked $6.0M Private and government grant funding currently being applied to research of Vireo products Ongoing Clinical Trials Listed on clinicaltrials.gov 2 5 Publications already in calendar year 2021 IRB-approved research projects 15+ 1 PPO – P
Slide 33: Case Study #1: Terpene Preserving Packaging (TerpSafe)
Case Study #1: Terpene Preserving Packaging (TerpSafe™) Primary Packaging Proof of Concept Primary Chamber Cannabis Inflorescence Inert Matrix – Houses external volatiles tm Secondary Chamber U.S. Patent Application No. 15/971,851. 33
Slide 34: Case Study #2: The Confluence Vaporizer
Case Study #2: The Confluence Vaporizer The confluence vaporizer is a multichannel vaporizer that will enable consumers to adjust the constituents of vaporizable formulations in real time U.S. Patent Application No. 17/114,097. 34
Slide 35: Case Study #3: Portioned Cannabis Extract & Vaporizer
Case Study #3: Portioned Cannabis Extract & Vaporizer An acute issue preventing widespread adoption of concentrates is ease of use and consistent portioning. The jewels project productizes connoisseur concentrates to be approachable by all consumers. U.S. Patent Application No. 17/116,464. 35
Slide 36: Case Study #4: Method for Harm Reduction of Tobacco Products
Case Study #4: Method for Harm Reduction of Tobacco Products We have been granted a patent by the USPTO for the addition of CBD and THC to tobacco to reduce cancer risks. We are A549 interested in licensing this technology to help Cell Proliferation make safer tobacco products. H460 Cell Proliferati
Slide 37: Financial Performance & Outlook
FINANCIAL PERFORMANCE & OUTLOOK 37
Slide 38: Greater Scale Driving Stronger Performance
Greater Scale Driving Stronger Performance Over the past several quarters, improvements in operating efficiencies and growth of our retail dispensary footprint have driven strong improvements in gross margin $14,000,000 50.0% $13,000,000 Revenue ($ US millions) 45.0% $12,000,000 40.0% $11,000,000 $1
Slide 39: Greater Scale Driving Stronger Performance
Greater Scale Driving Stronger Performance As our footprint continues to scale and expansion projects come online, we expect to drive substantial improvement in revenue growth and profitability across all our core markets Minnesota New York Arizona New Mexico Maryland FY22 Outlook Range $14,000,000
Slide 40: Greater Scale Driving Stronger Performance: Biomass Production
Greater Scale Driving Stronger Performance As our footprint continues to scale and expansion projects come online, we expect to drive substantial improvement in revenue growth and profitability across all our core markets Minnesota New York Arizona New Mexico Maryland FY22 Adj. EBITDA 350,000 Outloo
Slide 41: Balance Sheet & Outlook Assumptions
Balance Sheet & Outlook Assumptions • We had $40.5M on our balance sheet as of March 31, 2021 • We expect net CapEx (excluding financing from real estate partners) to execute this plan of approximately $15-$20M through FY22 • We plan to open an additional 6-10 new retail dispensaries by the end of F
Slide 42: Share Capital
Share Capital Share Capital Summary As of 3/31/2021 Share Class Share Count As Converted Super Voting Shares 65,411 6,541,100 Multiple Voting Shares 459,950 45,995,000 Subordinate Voting Shares 72,660,602 72,660,602 Stock Options 23,772,642 23,772,642 Subordinate Voting Share Warrants 3,037,649 3,03
Slide 43: Q&A Session
goodness ith Q&A Session