Cryomass Technologies Inc. · OTC:CRYM
Cryomass Technologies — Redwood Green — Investor Day (April 2020)
31 slides from Cryomass Technologies's investor day presentation, Apr 22, 2020
Slide 1: Investor Day April 21, 2020
REDWOOD GREEN Investor Day April 21, 2020
Slide 2: Forward-looking statements
1 This Presentation contains “forward - looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Exchange Act of 1934, as amended (the “Exchange Act”). Forward - looking statements discuss matters that are not hist
Slide 3: 2019 Highlights
2 2019 Highlights 3 4 5 Appointed Dr. Delon Human as Chairman of the Board Reported revenues of $3.5M ($6.8M FY) 2 Completed first acquisition (Good Meds, $9.6M) 1 Completed $7.2M private placement 6 Completed all regulatory filings, incl. 10 - K Built world - class board
Slide 4: Since February: Set, Ready, Go
3 Since February Set • Ready to execute • Team is in place • Key advisors in place Go • Acquire • Integrate • Grow 1 3 February 2 Ready • Refined our mission with top - 3 Firm • Recruited the talent to execute • Develop growth plans for existing assets
Slide 5: Highlights: Why invest with Redwood Green Corp.?
4 Highlights | Why invest with Redwood Green Corp.? • Public company established with strong corporate governance & transparency • Solid business in Colorado providing platform for cannabinoid experience & insights Public revenue generating co. • Experienced management with deep expertise in regulat
Slide 6: Refined Mission
5 Refined Mission | Supported by clearly defined strategic pillars Build a portfolio of attractive CBD brands in priority markets via roll - up M&A play Partner for research and efficacy studies in medical & agricultural to prove efficacy & build credibility Optimize Good Meds value & maintain THC p
Slide 7: Team: Experienced and proven track record
6 Strategic advisor in support of capital transactions Team | Experienced and proven track record Executive Team Key Advisors Michael Saxon CEO & Director 25+ years growing F100 businesses; held various leadership positions with Altria Group and Philip Morris International Board of Directors Susan
Slide 8: Table of contents
7 Table of contents 3 4 5 What does success look like? Q&A 2 Where to play in the cannabinoids market 1 The attractive cannabinoids market at a glance RDGC's strategic direction towards 2023 • Pillar I: Build portfolio of CBD brands via M&A • Pillar II: Differentiate with research & efficacy studies
Slide 9: Global market: 2028 global cannabinoid market estimated at ~$180-220B
8 Global market | 2028 global cannabinoid market estimated at ~ $180 - 220B Projected global cannabinoid market by 2028 ~$60B ~$8B ~$80B ~$50B Europe US RoW Canada Global market $180 - 220B 1. Based on Colorado state form factor value Source: Colorado Gov , Piper Jaffray ; Constellation
Slide 10: Consumers: CBD adopted by all generations
9 Consumers | CBD adopted by all generations, more prevalent with younger users Millenials Baby boomers Gen X Source: Consumer Reports survey of 1000+ CBD users ( MarketInsight , 2019) 29% 39% 31% 16% 11% 10% Ages 65+ Ages 55 - 64 Ages 18 - 24 Ages 25 - 35 Ages 35 - 44 Ages 45 - 54 32% 1
Slide 11: Table of contents
10 Table of contents 3 4 5 What does success look like? Q&A 2 Where to play in the cannabinoids market 1 The attractive cannabinoids market at a glance RDGC's strategic direction towards 2023 • Pillar I: Build portfolio of CBD brands via M&A • Pillar II: Differentiate with research & efficacy studie
Slide 12: Where to play key dimensions
11 ~ HIGHLY CONFIDENTIAL ~ Copyright © 2020 by Boston Consulting Group. All rights reserved. ~ HIGHLY CONFIDENTIAL ~ “Where to play” key dimensions Menu of options RDGC's strategic focus for “where to play” in the short term A B E Product type End markets Geographies CBD (hemp - based cannabis) THC
Slide 13: State cannabinoid market size and priority states
12 State Cannabinoid market size '19 ($M) Cannabinoid spend per capita '19 ($) 1 Market size CAGR ('19 - '22) # Major health & wellness stores 2 Population growth CAGR ('19 - '22) Rationale CA 75 19% 1922 0.6% Large state with significant growth and store presence CO 280 5% 242 1.2% Large
Slide 14: Table of contents
13 Table of contents 3 4 5 RDGC's strategic direction towards 2023 • Pillar I: Build portfolio of CBD brands via M&A • Pillar II: Differentiate with research & efficacy studies • Pillar III: Optimize Good Meds & drive consumer insights • Pillar IV: Develop needed capabilities & secure funding What d
Slide 15: RDGC's 2023 strategy is based on core strategic pillars
14 RDGC's 2023 strategy is based on 4 core strategic pillars Build a portfolio of attractive CBD brands in priority markets via roll - up M&A play Partner for research and efficacy studies in medical & agricultural to prove efficacy & build credibility Optimize Good Meds value & maintain THC platfor
Slide 16: Methodology: M&A screening with strategic focus
15 Screen universe and identify relevant targets Assess identified targets on 3 dimensions Methodology | M&A screening with strategic focus and disciplined evaluation Size & geography Product formats & brands IP, R&D and innovation Execution capabilities 1 4 3 2 Company size (revenue and # of empl
Slide 17: Short list: High priority targets evaluated on five key criteria
16 Short list | High priority targets evaluated on five key criteria 2 - 4 Assess identified targets 5=Best Score 1=Worst Score Consumer positioning Athletic Recovery Women’s Wellness Personal Care Company Proven Scale Brand Strength Capa - bilities IP & R&D Team Total Concen - trates Edibles
Slide 18: Opportunistic: Other companies with potential for partnership
17 Opportunistic | Other companies identified with potential for partnership 2 - 4 Assess identified targets I Build CBD portfolio Selected Targets Logo Logo Logo Logo Logo Logo Logo Logo PK3
Slide 19: Assumptions: M&A transactions and growth capital
18 Assumptions | M&A – Transactions & Growth Capital • Cash and stock for each deal • All stock deals will be more difficult • All cash deals easier and quicker • All targets will require capital to grow • Growth plans built during diligence • Valuations likely at historic lows • Unclear COVID - 19
Slide 20: Next Steps: RDGC is ready to initiate outreach
19 Next Steps | RDGC is ready to initiate outreach & execute on priority targets • Define corporate strategy • Develop conviction on theses for priority markets • Build list of targets in selected markets • Prioritize targets within lists • Cultivate relationships • Approach targets • Develop outsid
Slide 21: RDGC's 2023 strategy is based on core strategic pillars
20 RDGC's 2023 strategy is based on 4 core strategic pillars Build a portfolio of attractive CBD brands in priority markets via roll - up M&A play Partner for research and efficacy studies in medical & agricultural to prove efficacy & build credibility Optimize Good Meds value & maintain THC platfor
Slide 22: Research: Key benefit of research partnerships
21 Key benefit Research | Research partnerships benefit cannabinoid companies by providing credibility, opportunities to explore new use cases, and research influence CBD Credibility Research influence Explore use cases Industry players benefit from additional brand recognition alongside top univers
Slide 23: Research: Priority universities evaluated
22 Research| Priority universities evaluated for competitive differentiation IP friendly & collaborative Partnership infrastructure Prestige & talent Relationship 1 4 3 2 8 universities selected as high - priority targets 0 II All universities with active research partnerships 8 Targeted universitie
Slide 24: RDGC's 2023 strategy is based on core strategic pillars
23 RDGC's 2023 strategy is based on 4 core strategic pillars Build a portfolio of attractive CBD brands in priority markets via roll - up M&A play Partner for research and efficacy studies in medical & agricultural to prove efficacy & build credibility Optimize Good Meds value & maintain THC platfor
Slide 25: Good Meds: Leverage and grow for maximum optionality
24 Mission Strategy Good Meds | Leverage and grow Good Meds for maximum optionality • Maintain presence to have toe in THC market if regulation changes • Optimize business to lift valuation • Leverage THC presence for retail and consumer insights • Keep Good Meds stand - alone business for banking a
Slide 26: RDGC's 2023 strategy is based on core strategic pillars
25 RDGC's 2023 strategy is based on 4 core strategic pillars Build a portfolio of attractive CBD brands in priority markets via roll - up M&A play Partner for research and efficacy studies in medical & agricultural to prove efficacy & build credibility Optimize Good Meds value & maintain THC platfor
Slide 27: Capabilities: Lean corporate center as strategic guide
26 Capabilities | Lean corporate center as strategic guide & functional leader Capability Description Decision Rights M&A team Team that leads corporate development efforts; actively scans market for opportunistic acquisitions Center (input from subsidiaries) Research Partnerships Collaboration with
Slide 28: Table of contents
27 Table of contents 3 4 5 RDGC's strategic direction towards 2023 • Pillar I: Build portfolio of CBD brands via M&A • Pillar II: Differentiate with research & efficacy studies • Pillar III: Optimize Good Meds & drive consumer insights • Pillar IV: Develop needed capabilities & secure funding What d
Slide 29: Highlights: Why will Redwood Green Corp. win in the market?
28 Highlights | Why will Redwood Green Corp. win in the market? • Public company established with strong corporate governance & transparency • Solid business in Colorado providing platform for cannabinoid experience & insights Public revenue generating co. • Experienced management with deep expertis
Slide 30: Table of contents
29 Table of contents 3 4 5 RDGC's strategic direction towards 2023 • Pillar I: Build portfolio of CBD brands via M&A • Pillar II: Differentiate with research & efficacy studies • Pillar III: Optimize Good Meds & drive consumer insights • Pillar IV: Develop needed capabilities & secure funding What d
Slide 31: Q&A
REDWOOD GREEN Q&A