Medicine Man Technologies Inc. · OTC:SHWZ
Medicine Man Technologies — Investor Presentation (May 2021)
27 slides from Medicine Man Technologies's investor presentation, May 17, 2021
Slide 1: The Premier Cannabis Company: A New Gold Standard
OTCQX: SCHWZ | 1 OTCQX: SHWZ | The Premier Cannabis Company INVESTOR PRESENTATION May 17, 2021 A NEW GOLD STANDARD OTCQX: SHWZ
Slide 2: Safe Harbor
OTCQX: SCHWZ | 2 OTCQX: SHWZ | SAFE HARBOR OTCQX: SHWZ | 2 This presentation contains “forward - looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 . Forward - looking statements can be identified by words such as “believes,” ”plan” “expects,” “anticipates
Slide 3: Our Strategic Vision
OTCQX: SCHWZ | 3 OTCQX: SHWZ | OTCQX: SHWZ | 3 Our Strategic Vision Leading, Vertically Integrated Operator in our Markets Clear Acquisition & Growth Strategy Consciously Sourced Brands & Products Value Creation & Community Support for all Stakeholders Pronounced: SHHwahZZ A NEW GOLD STANDARD
Slide 4: Value Proposition
OTCQX: SCHWZ | 4 OTCQX: SHWZ | VALUE PROPOSITION OTCQX: SHWZ | 4 The Premier Colorado Cannabis Company – Vertically Integrated ▪ A Growing Power - House – Generating Free Cash Flow – Revenue $ 125 M in 2021 * – Up 421 % y - o - y ▪ Colorado is just the beginning - 2 nd largest market in USA - $ 2 .
Slide 5: Experience
OTCQX: SCHWZ | 5 OTCQX: SHWZ | EXPERIENCE OTCQX: SHWZ | 5 Justin Dye, Chief Executive Officer and Chairman: 25+ years of experience in private equity, general management, operations, corporate finance and M&A. He led the growth of Albertsons from ~$10Bn to over ~$60Bn in sales with over 2,300 stores
Slide 6: Experience
OTCQX: SCHWZ | 6 OTCQX: SHWZ | EXPERIENCE OTCQX: SHWZ | 6 Pratap Mukharji, Board of Directors: Mr. Mukharji is a retired consultant working over 30 years in management consulting, the majority with Bain & Company leading its Supply Chain and Service Operations practices. With a concentration in Indu
Slide 7: Overview: Our Numbers Count
OTCQX: SCHWZ | 7 OTCQX: SHWZ | OVERVIEW OTCQX: SHWZ | 7 OUR NUMBERS COUNT SUMMARY ▪ Est . 2014 - Denver, CO – consulting, nutrients, supplies ▪ Led lobby efforts for 2019 legislation allowing out of state investors ▪ Backed by Dye Capital ▪ Acquired Purplebee’s/Mesa Organics – April 2020 ▪ Concluded
Slide 8: Investor Snapshot
OTCQX: SCHWZ | 8 OTCQX: SHWZ | INVESTOR SNAPSHOT OTCQX: SHWZ | 8 Capital Structure – March 31, 2021 – Q1 2021 Closing Share Price (May 14, 2021) $2.43 Issued & Outstanding Shares 42.3M Issued & Outstanding Pref. 87.2K Fully Diluted * 120 .0M Market Capitalization $291.6M Enterprise Value $322.8 M Ad
Slide 9: Financial Review 2019-2021 Proforma
OTCQX: SCHWZ | 9 OTCQX: SHWZ | FINANCIAL REVIEW OTCQX: SHWZ | 9 Building a House of Distinguished, Consciously Sourced Brands - 50 100 150 200 250 300 2019 2020 2021 Proforma Estimated Revenue ($000’s) MMT Base Revenue Range Added M&A growth - 20,000 40,000 60,000 80,000 100,000 120,000 140,000 2019
Slide 10: Q1 Performance Selected Highlights
OTCQX: SCHWZ | 10 OTCQX: SHWZ | Q1 – PERFORMANCE OTCQX: SHWZ | 10 Building a House of Distinguished, Consciously Sourced Brands SELECTED HIGHLIGHTS Revenue up 504% EBITDA 30% of Revenue Revenues Q1 2021 % of Revenue Q1 2020 % of Revenue Retail $11.8 61.1% -- 0.0% Wholesale $7.4 38.3% $2.5 78.1% Othe
Slide 11: Q1 Retail Stats
OTCQX: SCHWZ | 11 OTCQX: SHWZ | Q1 RETAIL STATS OUR NUMBERS COUNT WHAT’S UP? RETAIL SALES 38%** BASKET SIZE 19.5% CUSTOMER VISITS 15.8% COLORADO Y - o - Y SALES 25%* SCHWAZZE OUTPERFORMED BY 13% * BDS Analytics **does not include Mesa Organics
Slide 12: Acquisition - Revenue Expansive Post-Consolidation Footprint
OTCQX: SCHWZ | 12 OTCQX: SHWZ | ACQUISITION - REVENUE OTCQX: SHWZ | 12 EXPANSIVE POST - CONSOLIDATION FOOTPRINT STAR BUDS ACQUISITION ▪ Closed December 2020 – 1 st of 6 of 13 Star Buds Colorado retail locations ▪ Closed February - March 2021 – remaining 7 of 13 Star Buds retail locations & one culti
Slide 13: Case Studies: M&A Integration & Synergy Realization
OTCQX: SCHWZ | 13 OTCQX: SHWZ | CASE STUDIES M&A INTEGRATION & SYNERGY REALIZATION Implementation of a Synergy Realization Office – “SRO” 13 Mesa Organics – Retail Impact PRODUCT MARGIN Acquisition Star Buds – Retail Impact PRODUCT MARGIN Purplebee’s – Manufacturing Impact MONTHLY BULK OUTPUT ▪ Stro
Slide 14: Consciously Sourced
OTCQX: SCHWZ | 14 OTCQX: SHWZ | CONSCIOUSLY SOURCED What Consciously Sourced Means to Schwazze ▪ We understand our Products ▪ Produced in North America, our products are crafted by well - trained, fairly compensated team members, who have opportunities to grow with the Company as the Company succeed
Slide 15: Our Brands Present & Future
OTCQX: SCHWZ | 15 OTCQX: SHWZ | OTCQX: SHWZ | 15 The Premier Cannabis Company OUR BRANDS PRESENT & FUTURE Pronounced: SHHwahZZ A NEW GOLD STANDARD
Slide 16: Vertical Integration
OTCQX: SCHWZ | 16 OTCQX: SHWZ | VERTICAL INTEGRATION OTCQX: SHWZ | 16 Building a House of Distinguished, Consciously Sourced Brands RETAIL 17 DISPENSARIES Customer Focused Retail Strategy Supported by Variety of Banners. Strong Local Ties & Tailored Merchandising MANUFACTURING 1 CAMPUS Brand Buildin
Slide 17: Our House
OTCQX: SCHWZ | 17 OTCQX: SHWZ | OUR HOUSE OTCQX: SHWZ | 17 Acquired 2020 - 2021 17 Recreational Dispensaries - 33,000 sq ft. retail space Acquired 2020 CO’s leading pure CO2, ethanol extractor & manufacturer. Produces edibles for leading Colorado companies & high - quality vape cartridges & syringes
Slide 18: Brands Offered, Dispensaries, Our Customers
OTCQX: SCHWZ | 18 OTCQX: SHWZ | BRANDS OFFERED 17 Dispensaries OTCQX: SHWZ | 18 OUR CUSTOMERS Building a House of Distinguished, Consciously Sourced Brands
Slide 19: Omnichannel
OTCQX: SCHWZ | 19 OTCQX: SHWZ | OMNICHANNEL OTCQX: SHWZ | 19 Interactive Digital Experiences Tasting Lounge Consumption & Event Venue Premium Experiential Branding eCommerce Concierge (click & collect, subscription) Store Within A Store Concepts Building a House of Distinguished, Consciously Sourced
Slide 20: A New Era: Becoming a Mainstream Staple
OTCQX: SCHWZ | 20 OTCQX: SHWZ | A NEW ERA BECOMING A MAINSTREAM STAPLE “…celebrities and athletes are no longer just partaking, they are making cannabis their business…” CannaCon Beau Wrigley, Parallel (Ceres) Wrigley Family Ben Kovler , GTI, Jim Beam Constellation Brands, Canopy Altria, Cronos Char
Slide 21: Outlook: Poised to Surpass Many Prominent U.S. Industries
OTCQX: SCHWZ | 21 OTCQX: SHWZ | OUTLOOK OTCQX: SHWZ | 21 POISED TO SURPASS MANY PROMINENT U.S. INDUSTRIES (2) HIGHLIGHTS ▪ 1 st state to legalize recreational cannabis, attractive geography to build platform , opportunity to acquire sophisticated, profitable co’s that weathered early boom & bust cyc
Slide 22: Outlook: U.S. Cannabis Revenues Estimated to Nearly Double by 2023
OTCQX: SCHWZ | 22 OTCQX: SHWZ | OUTLOOK OTCQX: SHWZ | 22 U.S. CANNABIS REVENUES ESTIMATED TO NEARLY DOUBLE BY 2023 (1) (1) BDS Analytics (2) Brewers Association, Statista, Wall Street research, Organic Trade Association, Entertainment Software Association, IBIS Worl d CANNABIS FUNDAMENTALLY ATTRACTI
Slide 23: Growth Platform: Expansive Post-Consolidation Footprint
OTCQX: SCHWZ | 23 OTCQX: SHWZ | GROWTH PLATFORM OTCQX: SHWZ | 23 EXPANSIVE POST - CONSOLIDATION FOOTPRINT RETAIL DISPENSARY LICENSES (2) COMPANY # OF SITES % OF TOTAL SHWZ Pro Forma 17 3% Other Top 10 Players 118 22% Other Retail Operators 468 78% Total 603 100% Ripe for Rollup: 468 retail dispensar
Slide 24: Our Next Steps
OTCQX: SCHWZ | 24 OTCQX: SHWZ | ▪ CAPTURE NEW STORES, NEW GEOGRAPHIES ▪ MERCHANDISING ▪ OPERATIONS : IMPROVE OVERALL MANAGEMENT, STAFF, CUSTOMER FIRST ▪ OMNICHANNEL OFFERINGS ▪ E COMMERCE GROWTH PLAYBOOK TRANSFERABLE BUSINESS MODEL MULTISTATE EXPANSION & ROLL - OUT RETAIL WHOLESALE SERVICES 24 ▪ LEV
Slide 25: Success Strategy
OTCQX: SCHWZ | 25 OTCQX: SHWZ | SUCCESS STRATEGY OTCQX: SHWZ | 25 World - Class Leadership Best - in - Class Operating System Consciously Sourced Retail First Model in Select States with Differentiated Position Most Admired Cannabis Company Investor Relations Capital Formation Analyst Coverage Regul
Slide 26: The Investment
OTCQX: SCHWZ | 26 OTCQX: SHWZ | THE INVESTMENT OTCQX: SHWZ | 26 Building a House of Distinguished, Consciously Sourced Brands Unique Cannabis Space Growth Opportunity Positioned for National Success in a Hypergrowth Industry Aggressive Acquisition & Growth Pipeline Leadership – Best - in - Class Ope
Slide 27: Next Steps
OTCQX: SCHWZ | 27 OTCQX: SHWZ | NEXT STEPS OTCQX: SHWZ | 27 “We are committed to unlocking the full potential of the cannabis plant to improve the human condition.” Justin Dye Chief Executive Officer Information Contact Joanne Jobin, Investor Relations T 647 964 0292 E ir@Schwazze.com W Schwazze.com
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