Cls Holdings Plc · LSE:CLI
Cls — CLS Holdings USA — Investor Presentation (October 2018)
23 slides from Cls's investor presentation, Oct 4, 2018
Slide 1: CLS Holdings USA, Inc. Investor Presentation
o® geCLs CANNABIS LIFE SCIENCES CLS Holdings USA, Inc. Investor Presentation October 2018
Slide 2: Disclaimer
Disclaimer ‘This presentation has been compiled by the Company solely for information purposes. The presentation is nat, and under no circumstances isto be construedio be, an offering of securties, Nether this presentation, nar its delivery tothe recipient shall constitute an offerto sell or the sol
Slide 3: Investment Highlights
Investment Highlights Oasis Cannabis dispensary in downtown Las Vegas supported by City Trees branded products and cultivation — One of the top dispensaries supplying 42M annual tourists; Currently completing over 350 orders per day at ~$45 per order — Phased buildout of 25,000 sqft cultivation and
Slide 4: The Opportunity — Massachusetts Investments
The Opportunity — Massachusetts Investments Proposed Investments i Massachusetts Market Exposure — $5M loan and option to acquire In InGood | — Accessto strong Massachusetts market Good Health and its Brockton facility, H currently realizing retail flower prices of one of 38 licensed medical Health
Slide 5: Corporate Structure
Corporate Structure CLS Holdings USA, Inc. Holding Company | CLSHto loan $5M to In Good |__| Health, Inc. and form joint venture H with CannAssist, LLC Alternative Solutions, LLC 100%-owned subsidiary of CLSH In Good Health, Inc. Loan and option to acquire 100% ae | ~~ JV with CannAssist, LLC Eam-in
Slide 6: In Good Health — Brockton Dispensary Overview
In Good Health — Brockton Dispensary Overview Vertically integrated with cultivation, production and dispensary licenses in southeastern Massachusetts — 1,500 sqft dispensary in close proximity to Boston, Fall River and Providence, Rhode Island; 25 miles from downtown Boston — Operational since Sept
Slide 7: In Good Health — Key Product Offerings
In Good Health — Key Product Offerings
Slide 8: 20,000 sqft of the current 26,000 sqft facility is dedicated to cultivation
20,000 sqft of the current 26,000 sqft facility is dedicated to cultivation — Currently producing 21 strains at a rate of 3,400 Ibs of flower per year — 1,200 lbs are allocated for extraction which is operating at full capacity — Extraction will triple output after expansion of facility is completed
Slide 9: In Good Health — Brockton Near-Term Expansion
In Good Health — Brockton Near-Term Expansion Current Footprint — 26,000 sqft Expansion Plans — 30,000 sqft Construction plans FAA - . — Current facility: 26,000 saft i — Expansion adds: 30,000 sqft — Completion date: Q2 2019 — Expansion plans include 20,000 sqft cultivation and 1,000 sqft productio
Slide 10: CLSH and CannAssist to form Leicester Joint Venture
CLSH and CannAssist to form Leicester Joint Venture — CLSH will earn an 80% interest by funding $25M-$30M construction capex — Opportunity for CLSH to expand in Massachusetts cannabis market, currently realizing wholesale prices of ~$3,500/lb flower and ~$40/g oil equivalent Leicester designed to be
Slide 11: Our Target Markets — Nevada and Massachusetts
Our Target Markets — Nevada and Massachusetts q Nevada Market (USSM) Massachusetts Market (USSM) $1,189 $980 so77 srig $803 $785 $535 S578 pales $374 $266 $151 “TE 18E 19E 20E21E'22E “TE "(8E 19E 20E E226 =NVMedical » NVRecreational "MA Medical MA Recreational Note: Nevada and Massachusetts market d
Slide 12: M&A Growth Strategy
M&A Growth Strategy — Management team has 120+ years of collective experience in capital markets; medical and real estate lends itself well to pursuing — and executing on — M&A transactions across the United States — CLSH is looking to acquire cannabis opportunities in the United States where medica
Slide 13: Completed and Future Milestones
Completed and Future Milestones Jun-18: Completes C$13.0M private placement of special warrants at a price of C$0.45 per special warrant Q218 Jun-48: Acquires Altemative Solutions and the Oasis subsidiaries for total consideration of US$16.2M “CLS ‘Aug-18: Completes US$5.75M Navy private placement o
Slide 14: Management & Board of Directors
Management & Board of Directors Management Team Management Team Jeffrey Binder Co-Founder, Chairman & CEO Frank Tarantino CFO David Noble President & CEO, In Good Health Prior to founding CLSH, Mr. Binder served as founder, Chairman and President of Power 3 Network, Inc. a company that develops webs
Slide 15: Operating Details
Operating Details Retail Dispensaries — Las Vegas currently completing ~350 orders per day at an average of $45; Aiming for ~500 orders — Brockton completing ~225 orders per day at an average of $125; Targeting ~800-1,000 orders per day with introduction of recreational sales Facility Expansion and
Slide 16: Current Capitalization (US$)
Current Capitalization (US Basic shares outstanding Cash balance CLSH shares pre-Oasis acquisition 53,366,384 Current CLSH cash balance $5,500,000 Shi is dto Alternative Soluti 22,058,823 ares issued to Alternative Solutions 058, Debt outstanding Shi derlyi ial it 33,463,831 ene unestiyng Spec os Yo
Slide 17: CLS Cannabis Life Sciences contact
g@CLSs CANNABIS LIFE SCIENCES , OASIS InGood Hea Ith S¥Z canmasit LLG ——_4 DISPENSARY FOR A BETTER QUALITY OF LIFE Jeff Binder Chairman & CEO T: (888) 438-9132 jeff@clsholdingsinc.com
Slide 18: Certain Key Business and Industry Risk Factors
Certain Key Business and Industry Risk Factors An investmentin the secuntiesis risky and involves a materia riskof complete loss. The following isnot intended to be an exhaustive list ofthe risks associated with the business ofthe Company. Rather, the key risks setout below relate solelyto the requl
Slide 19: Certain Key Business and Industry Risk Factors (Cont'd)
Certain Key Business and Industry Risk Factors (Cont d) The Company’s business is highly regulated and it may not be issued necessary licenses, permits and cards. The Company’s business and products are and will continue to be regulated as applicable laws continue to change and develop. Regulatory c
Slide 20: Statutory Rights for Canadian Investors
Statutory Rights for Canadian Investors ‘Securities legisiation in certain ofthe provinces of Canada provides purchasers wih rights of rescission or damages, or both, where an offering memorandum or any amendment to it contains a misrepresentation. A *misrepresentaton” fs an untrue statement ofa mat
Slide 21: Statutory Rights for Canadian Investors
Statutory Rights for Canadian Investors ‘Saskatchewan Investors (continued) Other defences in Saskatchewan legisation include that no person or company, other than the issuer, willbe lable ifthe person or company proves that (a) the offering memorandum or any amendment to t was sentor delivered with
Slide 22: Statutory Rights for Canadian Investors
Statutory Rights for Canadian Investors New Brunswickinvestors Under New Brunswick secures legislation, certain purchasers who purchase securties offered by an offering memorandum during the period of distribution wilhave a statutory right of action for damages, or while stil the owner ofthe securit
Slide 23: Statutory Rights for Canadian Investors
Statutory Rights for Canadian Investors Prince Edwardislandinvestors fan offering memorandum, together with any amendment thereto, is delivered to a purchaser and the offering memorandum, or any amendment thereto, contains a misrepresentation, a purchaser has, without regardto whetherthe purchaser r
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