Gsrx Industries Inc · OTC:GSRX
Gsrx Industries — Investor Presentation (November 2018)
42 slides from Gsrx Industries's investor presentation, Nov 2, 2018
Slide 1: Investor Presentation November 2018 Update
INVESTOR PRESENTATION NOVEMBER 2018 UPDATE OTCQB: GSRX @@@O@D@OOO ha - ” 0:
Slide 2: Forward-Looking Statements
Forward-Looking Statements 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 expressions, as they relate to GSRX Industries
Slide 3: Corporate Overview
Corporate Overview GSRX Industries Inc. is in the business of acquiring, developing and operating retail cannabis dispensaries, and is in the process of expanding its business to include the extraction, manufacturing and delivery of cannabis and cannabinoid products. Currently, GSRX operates five ca
Slide 4: Experienced Management Team
Experienced Management Team Les Ball, CEO GSRX Previously served as CEO/President of Corral West Ranchwear, expanding to 140 locations in US; President at Montgomery Ward; 22 years at R.H. Macy, incl. President Macy’s East, President Macy’s Wholesale, President Macy’s South, and Chairman/CEO of Macy
Slide 5: Board of Directors
Board of Directors Christian Briggs 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 Directors and C
Slide 6: Board of Advisors
Board of Advisors Luis F. Toledo-Bayouth A security specialist with more than 20 years’ experience, Toledo-Bayouth began his career as a Special Agent for the U.S. Drug Enforcement Administration in Miami. He returned to Puerto Rico, where he was Director of Security & Loss Prevention for Olympic Mi
Slide 7: GSRX Industries Inc - Operations in US
GSRX Industries Inc - Operations in US Through its subsidiaries, GSRX is a cannabis-focused company operation in California and Puerto Rico as follows: California: Extraction & manufacturing* operations; dispensary and delivery operations. 1 dispensary currently operating. Binding LOI executed for 1
Slide 8: GSRX Company Highlights
GSRX Company Highlights = $75 billion dollar market opportunity by 2030 (Cowen & Co.) = Experienced management team = Plans for expansion into other medical and/or adult use markets through acquisitions/JVs with existing operations and experienced operators = Building vertically integrated business;
Slide 9: Highlights
Highlights The cannabis market is already bigger than the major commodity markets, including coffee, iron, aluminum, and wheat. And, it’s is on track to becoming bigger than gold. As demand continues to rise, GSRX is prepared to expand on its operations in key markets. CANNABIS DWARFS OTHER MAJOR CO
Slide 10: Current State of CBD
Current State of CBD According to Hemp Business Journal, 2017 sales for the U.S. hemp industry were $820 million overall, with sales of hemp-derived CBD products contributing $190 million to that total (Hemp Business Journal). In a study released earlier this month by MJBizDaily (IMJBiz Daily Report
Slide 11: Vertically-Integrated Business Model
Slide 12: California Opportunity
. California Opportunity California is the most populous state in the United States with a population of 39.3 million residents. California’s $2.67 trillion economy is larger than any state. California sales have grown from $444 million in medical for 2013 to a projected $6.6 billion of combined med
Slide 13: Manufacturing SPIRULINEX
Manufacturing SPIRULINEX. HIGHLY SCIENTIFIC = GSRX is the majority owner of Spirulinex, LLC, a manufacturing company in San Francisco that has developed a broad slate of cannabinoid ingestibles, both THC and CBD. = Spirulinex's manufacturing headquarters is located on Bryant Street in San Francisco'
Slide 14: Manufacturing: DragonGlass (patents pending)
Manufacturing: DragonGlass (patents pending) SPIRULINX HIGHLY SCIENTIFIC GSRX Industries Inc. | OTCQB: GSRX Developer of DragonGlass (a.k.a Flake & Bake), the Company's proprietary dried activated THC powder. = Allnatural, vegan and gluten free; made with organic Spirulina = Zero Calorie. Zero Alcoh
Slide 15: Extraction & Processing
Extraction & Processing Using state of the art equipment to produce non-volatile high- terpene extractions. Under a licensing and manufacturing agreement with the Betty Project, Spirulinex plans to process the th é B E T T Y extractions into a variety of premium products and concentrates, Pe resulti
Slide 16: Manufacturing: CBD
Manufacturing: CBD One of the most important quality of CBD is its lack of psychoactive properties. Meaning, it wont get you high. CBD comes from marijuana or hemp and has dozens of medical properties from stopping seizures to relieving pain to reducing inflammation. When added to beauty products, i
Slide 17: GSRX + Pure and Natural CBDs
GSRX + Pure and Natural CBDs GSRX plans to launch several retail stores under the name “Pure and Natural CBDs” in the United States (anticipated to open first half of 2019) which will be based in strategic locations in several key markets. Through these stores, GSRX plans to offer a broad range of h
Slide 18: California Operations Flow Chart
California Operations Flow Chart NN 51% SALES SALES GSRX Industries Inc. | OTCQB: GSRX
Slide 19: California Dispensary Operations
thegreen California Dispensary Operations =" Company plans to identify and acquire more dispensary operations with significant growth potential in key markets across California = First dispensary acquired in Point Arena on April 1, 2018 = Adult use sales, which began Jan. 1, expected to drive market
Slide 20: The Coughy Shop - Desert Hot Springs, CA
The Coughy Shop - Desert Hot Springs, CA 64949 Mission Lakes Blvd #114, Desert Hot Springs, CA 92240 GSRX executed a binding LO! to acquire the Coughy Shop, a licensed retail cannabis dispensary currently operating in DHS, CA. The company has commenced due diligence and anticipated completion during
Slide 21: Puerto Rico Opportunity
Puerto Rico Opportunity Puerto Rico has a population of 3.6 million people and not only has the largest mall in the Caribbean (Plaza Las Americas), but is also currently one of the the only Caribbean islands where cannabis has been legalized for medicinal purposes. Anyone with medical-issued license
Slide 22: 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 island in 2016. The 2018/2019 cruising season is expected to witness a record-breaking
Slide 23: Carolina
Carolina OPEN Trujillo Bajo, Carolina 00987, Puerto Rico * Ahigh-density population over 175,000, Carolina is a tourist center for vacationers from all over the world. * Carolina is a tourist center near Puerto Rico's international airport and home to top luxury hotels and casinos such as The Ritz C
Slide 24: Dorado
Dorado OPEN Paseo del Plata Shopping Center, 696 Avenue José Efron #3, Dorado, 00646, Puerto Rico * One of the wealthiest communities in Puerto Rico a few miles west of San Juan with a population of near 40,000. * A tourist favorite with three golf courses, and upscale, five-star hotels such as the
Slide 25: Hato Rey
Hato Rey OPEN 508 Calle Teniente César Luis Gonzalez, San Juan, 00918, Puerto Rico * San Juan’s most densely populated district located in close proximity to a large concentration of doctor’s offices and medical practices.
Slide 26: San Juan
San Juan OPEN 509 Av. Andalucia, San Juan, 00920, Puerto Rico * San Juan - the capital and largest city in Puerto Rico with nearly 400,000 residents. A major cruise destination, with 1.5 million cruise passengers arriving annually, and 10 million visiting Puerto Rico by air. GSRX San Juan dispensary
Slide 27: Caguas
Caguas LEASE SIGNED - PRE QUALIFICATION PENDING Carr. #1 Km27.8 Caguas, PR One of the largest municipalities, with a population of close to 140,000 Located in the largest valley in Puerto Rico, the "Valle de Caguas" (or "Valle del Turabo-Turabo Valley") which it shares with Gurabo and part of Aguas
Slide 28: Fajardo
Fajardo Completed- Awaiting final permit Carr. 3, KM 44.1 Bo Quebrada, Fajardo, PR 00738 * With its nearly 5000 square feet, it will be one of the largest dispensaries in Puerto Rico and the Caribbean. * A population just shy of 40,000 and some of the finest places to stay, including Las Casitas and
Slide 29: Bayamon
Bayamon UNDER CONSTRUCTION 15 Av. Lomas Verdes, Bayamon, 00956, Puerto Rico With a large population of 240,000, Bayamon is second only to San Juan in population. Bayamon has some of the best hotels, including the Hyatt Place Bayamon. oaveod Fig yaw van Lonerwy DORADO TORALTA' TOR ALTA @ 33 %, a TOA
Slide 30: Isla Verde
Isla Verde UNDER CONSTRUCTION 1060 Av. Isla Verde, Carolina, Puerto Rico 00913 * The most popular beach vacation destination in all of Puerto Rico for both residents and tourists, luring both leisure and business vacationers. * Voted number one best urban beach 2016 by USA Travel readers.
Slide 31: Condado
Condado CONSTRUCTION TO BEGIN SOON Ashford Ave. #1022, Units 5 and 6, San Juan 00907 2,300 SF dispensary located in Hotel District of San Juan; building is in front of Hotel Vanderbilt and Serafina Hotel. On Ashford Avenue, a main thoroughfare of Condado with business and residential buildings, incl
Slide 32: Guaynabo
Guaynabo BUILDING UNDER LEASE, CONSTRUCTION STARTED Urbanizacion Mufioz Rivera, Calle Acuarela C-15 (local A), Guaynabo, Puerto Rico, 00969 * Guaynabo is known as "Capital del Deporte" (capital of the sport) with a population around 100,000. Guaynabo is located in the northern coast of the island, w
Slide 33: Old San Juan
Old San Juan BUILDING UNDER LEASE, 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 traffi
Slide 34: US Cannabis Growth Rates
US Cannabis Growth Rates CALIFORNIA MARIJUANA SALES GROWTH COLORADO MARIJUANA SALES GROWTH WASHINGTON MARIJUANA SALES GROWTH PROJECTED $1.5078 pabiegten $1.48B $1.1B sagem ume souaM $323M ‘om $49M_ mows 576M sasam__ fen,“ a $1990 a a Be co $123 2013 «2014 «2015 2016 2017 2018 2012 2013 2014 2015 201
Slide 35: Puerto Rico Cannabis Growth Rates
Puerto Rico Cannabis Growth Rates PUERTO RICO ESTIMATED CANNABIS SALES GROWTH 2018: 48k Medical cards x $15k/year $1 8B 2019: 125k Medical cards x $15k/year MEDICAL & ADULT $500M MEDICAL 2018 2019/2020 *Guesstimates Do not rely on this for investment, decisions.
Slide 36: Industry Comps
Industry Comps Company Name Ticker Price Close Market Cap Revenue (ttm) P/S (ttm) Aphria Inc. APHQF 12.39 $2.18B $36.92M 59.04x Aurora Cannabis Inc. ACB 7.24 $9.07B $18.07M 501.93x Cannagrow Holdings Inc. CGRW 1.01 $97.99M $1.24M 79.02x Canopy Growth Corporation CGC 38.32 $8.76B $77.95M 112.37x Cron
Slide 37: Total Revenues
otal Revenues GSRX 2018 QUARTERLY REVENUES GSRX Industries Inc. | OTCQB: GSRX 85-100% GROWTH FROM PRIOR QUARTER $706,428 $353,430 a2 Q3 a4 ACTUAL ACTUAL FORECAST r crumble and Dre produc Version 4.0 37
Slide 38: Puerto Rico Gross Margin %
Puerto Rico Gross Margin % GSRX PUERTO RICO GROSS MARGIN % 2018 46-49% 41.71% 43.79% Q1 Q2 2018 2018 2018 ACTUAL ACTUAL ACTUAL FORECAST (04 Gross margin based on the actual October gross margins of. GSRX Industries Inc. | OTCQB: GSRX Version 4.0 38
Slide 39: California Gross Margin %
California Gross Margin % GSRX CALIFORNIA GROSS MARGIN % 57.97% 56-58% Q2 Q3 04 2018 2018 2018 ACTUAL ACTUAL FORECAST Q4 Gross margin based on the GSRX Industries Inc. | OTCQB: GSRX Version 4.0 33
Slide 40: Operating Expenses
Operating Expenses GSRX 2018 OPERATING EXPENSES $8,510,033 $3,809,311 $2,198,056 Qi Q2 ACTUAL ACTUAL GSRX Industries Inc. | OTCQB: GSRX Version 4.0 40
Slide 41: Loss Per Share
Loss Per Share GSRX LOSS PER SHARE 21¢ .04¢ a1 Q2 Q3 2018 2018 2018 ACTUAL ACTUAL ACTUAL GSRX Industries Inc. | OTCQB: GSRX Version 4.0 4
Slide 42: November 2018 Update
INVESTOR PRESENTATION NOVERMBER 2018 UPDATE GS RX TwousTRIES OTCQB: GSRX CORPORATE CONTACT: GSRX — Puerto Rico The Green Room Dispensary www.greenspiritrx.com https://www.thegreenroomcollective.org Thomas Gingerich Instagram @GreenRoomMendo Chief Financial Officer SPIRULINEX www.spirulinex.com Build
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