Cls Holdings Plc · LSE:CLI
Cls — CLS Holdings USA — Investor Presentation (October 2019)
36 slides from Cls's investor presentation, Oct 3, 2019
Slide 1: Investor Presentation
NT CN CANNABIS LIFE SCIENCES N14 Lu WJ Investor Presentation CLS Holdings USA, Inc. OTCQB: CLSH / CSE:CLSH.CN September 2019
Slide 2: Forward Information and Risk Acknowledgement
Forward Information and Risk Acknowledgement This document contains “forward-looking statements” and “forward-looking information” within the meaning of applicable securities law (collectively, “forward-looking information") with respect to the Company and its acquisition target, In Good Health, Inc
Slide 3: Forward Information and Risk Acknowledgement
Forward Information and Risk Acknowledgement Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made including among other things assumptions about: completion of the financing, exe
Slide 4: Information Provided by Others
Information Provided by Others The facts, estimates, forecasts and other information regarding In Good Health, Inc. and the Massachusetts cannabis market were obtained from In Good Health, Inc., are theirs alone, and do not represent predictions of CLS Holdings or its management. CLS Holdings does n
Slide 5: Company Milestones
Company Milestones >) Completed purchase of Oasis Cannabis Dispensary in Las Vegas Successfull competion of ‘mutiple capa intusions Cbained a tna receipt rom the OSC {or alongtorm prospectus Entred into an agreement in Massachusetts Rapid growth of City Trees brand Obtained patents for extraction IP
Slide 6: Investment Overview
Investment Overview Oasis Cannabis dispensary in downtown, Las Vegas supported by City Trees branded products and cutivation + Voted best spensary for Pot Pros March 2019 + Current completing over 650 ordees per day at $45 per order + Phased buldout of 25,000 st eltvation and rodction fect o produce
Slide 7: Oasis voted best dispensary for Pot Pros March 2019
Oasis voted best dispensary for Pot Pros March 2019
Slide 8: Our Target Markets
Our Target Markets Low Geographic Coverage 60 licensed medical dispensaries and Nevada and Massachusetts Under 30 reci ional license granted for tail 45 dispensary licer er Las Vegas area Massachusetts Market Nevada Market = Medical m= MAMedical wig NV Recreational ia MaReesionl uss tex uss : sm 755
Slide 9: Oasis Cannabis Dispensary
Oasis Cannabis Dispensary Top Dispensary in Las Vegas Additional License Opportunities * Open 24 hours /7 days a week * Walking Distance from the Strip and Downtown Las Vegas * Home Delivery to locals * Operating since 2015 Highlights * Phased buildout of 25,000 sf cultivation * Production facility
Slide 10: City Trees
City Trees About Production and Cultivation facility based out of North Las Vegas, Nevada We provide Nevada with high quality THC distillate products infused with terpenes in either effect-based or strain-specific flavors We use ethanol-distilled pure THC distillate and botanically derived terpenes
Slide 11: City Trees
& CITYTREES Cultivation Production Distribution Fastest Growth Capturing Market Share 75% || 2017 Available dispensaries and counting Founded Wide Variety of Products, Consistent Results * Disposable Vape Pens and Cartridges + Ingestible Capsules * Tinctures * Premium Dab Oil Applicators (8) ecirytR
Slide 12: We love convenience, but we love our planet much more!
We love convenience, but we love our planet much more! & All proceeds generated are donated to the Arbor Day Foundation We recycle any battery, any brand It does NOT need to be City Trees.
Slide 13: CENTR CBD Water
CENTR CBD WATER Exclusive Nevada Distribution CLS has entered into an exclusive agreement with CENTR CBD Water and has begun to distribute their 15mg and 30mg sparkling CBD beverages to cannabis dispensaries throughout Nevada.
Slide 14: General Massachusetts Market Overview
General Massachusetts Market Overview Massachusetts Market = MA Medical MA Recreational uss $1,159 $977 ‘$755 $578 $374 “LTE "1819 '20E "2B '22E Early Stage Market Low quality of product © Equal playing field 100k sf per grow ‘Only 3 medical licenses and 3 recreational licenses per license holder Ad
Slide 15: Massachusetts
Massachusetts Recreational Dispensary Locations As seen in the map above, the one area in Massachusetts with no recreational dispensary coverage is Brockton/ Plymouth County. With the approval of their recreational license, In Good Health is poised to capitalize on the market opportunity.
Slide 16: Investments
Investments Dispensary and Cultivation Massachusetts Investment Overview ‘S5M loan and agreement in place to acquire In Good Health and its Brockton facility, one of 60 licensed medical dispensaries and ‘one of only 30 recreational dispensaries in Massachusetts Brockton dispensary generating ~$1.0M
Slide 17: Advantages of Being a Multi-State-Operator
Advantages of Being a Multi-State-Operator Cross promote brands Product expansion and licensing, ability to sell and market brands over a larger geography Economies of scale and streamlining Fan of operations Shared knowledge among different states Ability to leverage growth, operational and marketi
Slide 18: Brockton Acquisition
Brockton Acquisition Deal Terms $50M total investment consideration Terms + $36M cash + S10M seller note 5 year at 6% interest with a balloon at year 5 ‘+ S5M equity/stock to be issued in January of 2020
Slide 19: Massachusetts Growth Opportunities
Massachusetts Growth Opportunities INITIAL FOOTPRINT — 18,000 sf of the 26,000 sf facility dedicated to cultivation * Currently producing 21 strains at a rate of 3,400 Ibs of flower per year * 1,200 Ibs are allocated for extraction which is operating at full capacity + Extraction will triple output
Slide 20: In Good Health
In Good Health Brockton Dispensary Overview Vertically integrated with cultivation, production and dispensary licenses in southeastern Massachusetts Highlights + Brockton has a history of being one of the top medical dispensaries in Massachusetts, serving 25,000 registered patients and delivering to
Slide 21: In Good Health Brockton Construction / Future Outlook
In Good Health Brockton Construction / Future Outlook Construction Previous Footprint Expansion 26,000 sf _ initial facility | 26,000 sf 3 30,000 sf ‘ 30,000 sf With expansion T = 7 Future Outlook Technology li proprietar
Slide 22: In Good Health Product Inventory
In Good Health Product Inventory Flower 1,Packaged Flower + 20+ varieties grown * Indica, Sativa and Hybrid options + Available in grams, 1/8 02, and 1/4 07 packages 2, Slim Pre-Rols + 1g of flower in each pre-rolled cone * Indica, Sativa and Hybrid options 3, Mini Pre-Rolls ‘5g of flower in each mi
Slide 23: In Good Health Product Inventory
In Good Health Product Inventory Non-Edible MIPS (Topicals) 4. Topical Stok + Small and large stick options + Doses range rom 100mg to 500mg + Coconut oi and shea butter base + Generally dosed higher CBD than THC 2.Supposiores * Coconut oi base + 50mg dose + Comes with Sephure applicator ‘3. Transde
Slide 24: Product Innovation
Product Innovation Manna Transdermal Patches ‘The manna Molecular Science cannabis transdermal patch is the first cannabis optimized patch that has been developed by real pharmaceutical scientists from MIT and Genzyme using state-of-the-art product design and research methods. It works for all canna
Slide 25: In Good Health Competitive Advantage
In Good Health Competitive Advantage Medical Business Prior to Receiving Recreational License 25,000 Registered patients Home Delivery ‘Avg price of rder Hub for Delivery Dispensary locations First mover advantage Fully integrated Seed to sale all under one roof Better quality product Best in class
Slide 26: In Good Health New Brand Identity
In Good Health New Brand Identity OO0Od \) health
Slide 27: In Good Health New Brand Identity
In Good Health New Brand Identity
Slide 28: CLS Management & Boards of Directors
CLS Management & Boards of Directors Management Team Board of Directors and Founding Members sefitey Binder Co-Founder, Charman & CEO + Piorto founding CLSH, Mir. Binder served as founder, Chairman and President of Power $ Network, Ine, a company that develops. Websites and back ofces for home-based
Slide 29: In Good Health Management & Boards of Directors
In Good Health Management & Boards of Directors Management Team David Noble Chiat Execute Ocer, President David Noble was responsible for submitting a winning application to be one of the first licensed RMD in the state of Massachusetts. Mr. Noble oversaw the design and construction of the IGH facil
Slide 30: In Good Health Management & Boards of Directors
In Good Health Management & Boards of Directors Management Team Bary Kirshner, CPA Chiat Financial Otcer Barry Kshner has been alongside the CEO since the inception of IGH in preparing a winning application for a licensed AMD. Mr, Kirshner isa leansed Certtied Publi Accountant who oversees all nanci
Slide 31: Nevada Operating Results
Nevada Operating Results Qasis Cannabis 2019, 2018 YOY % Increase ela eels: # of Customer Orders, 2019 Sales. © # of Customer Orders, 2018 Sales, -—_—# of Customer Orders. Sales Jan 0.908, $478,870 9.469, $401/534 15% oe Feb 10,420, $455,863 8,396 ($989,567 24%. 19% Mar 12,937 $961,181 40,198, $485,
Slide 32: CLS Nevada Financials
CLS Nevada Financials* 2019 EBITDA Annual Revenue J} EBITDA *Pro Forma financial performance as if CLS Holdings had acquired IGH on January 1, 2019 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 SO $19,686,666 $17,118,840 $14,208,480 $4,761,925 $4,140,804 $2,170,188 £2019 £2020 £2021
Slide 33: In Good Health Financials
In Good Health Financials In Good Health Actual and Projected Revenue and EBITDA Annual Revenue ™ EBITDA $67,310,000 $51,745,000 $17,486,455 $27,049,739 $28,301,892 {$10,763,762 $11,092,928 $3750000 | $4277.005 © $6397,082 = ie A2017 A2018 E2019 2020 E2021
Slide 34: CLS Holdings + IGH Pro Forma Financials
CLS Holdings + IGH Pro Forma Financials Annual EBITDA Annual Revenue I csitpa $100,000,000 $90,000,000 $80,000,000 $70,000,000 $60,000,000 $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000 $0 $86,996,666 $68,863,840 $33,063,817 $31,694,935 $31,190,543, $8,507,270 E2019 £2020 £2021
Slide 35: Cap Table
Cap Table Expiry Date Exercise Price #Warrants 30-Nov-21 $0.34 4,635,684 es Outstanding 30-Nov-21 $0.49 33,463,826 - $1.25) ————_ 6 300 6-Feb-22 $0.50 1,740,000. yertible Notes —————————._ 22,375,000 21-Feb-22 $0.50 160,000 Fully Diluted —————————— 211. 645, 28-Feb-22 $0.50 130,000 sh On Hand (as of
Slide 36: @ OAS'S
@ OAS'S =a OASIS SS disrensany COOd J health & CITYTREES INT CN CANNABIS LIFE SCIENCES X41 Li WV Jeffrey Binder Andrew Glashow Chairman / CEO President & COO T: 888.438.9132 E: andrew@clsholdings.com Visit clsholdingsinc.com
CLS Holdings USA — Investor Presentation (October 2019) on 6ix