Chalice Brands Ltd. · OTC:CHALF
Chalice Brands — Investor Presentation (September 2021)
27 slides from Chalice Brands's investor presentation, September 2021
Slide 1: Leading Cannabis Operator
CORPORATE PRESENTATION | SEPTEMBER 2021 LEADING CANNABIS OPERATOR CSE: CHAL | OTCQB: CHALF
Slide 2: Disclaimer
DISCLAIMER CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION: This presentation includes forward-looking information and forward-looking statements within the meaning of Canadian and United States securities laws. Statements containing the words “believe”, “expect”, “intend”, “should”, “seek”, “
Slide 3: Company Overview
COMPANY OVERVIEW Best-in-class Cannabis Operator in Oregon led by Chalice Brands Ltd. Chalice Brands Ltd. is a cash-flow positive U.S. operator in the most competitive, innovative and mature cannabis market in North America. Leaders in retail, marketing and craft cultivation supported by fully integ
Slide 4: Brands: Why they matter
BRANDS: W h y t h e y m a t t e r ( a n d a l w a y s w i l l ) The Company is committed to developing a dynamic brand portfolio with a focus on health and wellness. EXPLORE CHALICE FARMS EXPLORE ELYSIUM FIELDS EXPLORE RXO EXPLORE FIFTH & ROOT CSE: CHAL | OTCQB: CHALF 04
Slide 5: #1 in Consumer Engagement
#1 IN CONSUMER ENGAGEMENT According to Pioneer Intelligence, the homegrown Oregon company that’s #1 for consumer engagement – July 2021. “At Chalice Farms, our consumer engagement strategy revolves around three key elements: community, events, and content. The foundation of consumer engagement is al
Slide 6: A Totally American Experience
A TOTALLY AMERICAN EXPERIENCE Celebrate Spring and Summer with products from a company shaping the cannabis industry. It is deeply ironic that the legality of cannabis is still a question in our country. The truth is, in our early days as a nation, many of our founders were actively growing the plan
Slide 7: Cannabis Pickup or Delivery
CANNABIS PICKUP OR DELIVERY CHALICEFARMS.COM 07
Slide 8: Black Label
BLACK LABEL 100% dive Resin
Slide 9: New to Chalice Farms
NEW TO CHALICE FARMS 09
Slide 10: Cannabis Platform
CANNABIS PLATFORM We specialize in brand creation and immersive storytelling married with best-in-class technology. Our cannabis platform places brands at the forefront of innovation with multiple consumer touch points to and audience reach of +1.5M. CSE: CHAL | OTCQB: CHALF 10
Slide 11: Where We Come From
WHERE WE COME FROM +40 y e a r s +20 y e a r s of combined of combined cannabis cannabis experience supply chain experience +40 y e a r s +75 y e a r s of Fortune 25 of combined experience retail experience CSE: CHAL | OTCQB: CHALF 11
Slide 12: Executive Management
EXECUTIVE MANAGEMENT JEFF YAPP JOHN VARGHESE ANDREW MARCHINGTON JOHN FORD MEGHAN MILLER President & CEO Executive Chairman Chief Financial Officer Chief Revenue Officer Chief Cultivation Officer KAREN MORGAN GINGER MOLLO JANE SULLIVAN JOEL KLOBAS BEN ALLMAND Chief Marketing Officer Chief Integration
Slide 13: Board of Directors
BOARD OF DIRECTORS JOHN VARGHESE, Executive Chairman RICK MILLER, Lead Director Professional experience ranges from private equity, venture Seventh-generation Oregonian with a prominent local presence capital and investment banking to senior management and board as an entrepreneur, highlighted by hi
Slide 14: Crawl Walk Run
CRAWL WALK RUN “The crawl phase validates, the walk phase starts to invest in acceleration and run is to invest in margin” – Jeff Yapp, President & CEO Crawl Walk Run Growth Opportunities Phase Phase Phase Outsourced In-sourced Vertically integrated manufacturing, sales. retail, distribution, distri
Slide 15: Market Leader in Oregon
MARKET LEADER IN OREGON Proven track record of success in the most competitive cannabis market in the U.S. Why Oregon matters • First state to decriminalize small amounts of marijuana. In 1998, Oregon legalized medical marijuana along with Washington, Arizona, and Nevada • Mature & Competitive marke
Slide 16: Retail
RETAIL Seven Chalice Farms stores in the Portland, OR Metro Area. Existing footprint. TIGARD HAPPY VALLEY DOWNTOWN AIRPORT WAY LCC DUNDEE POWELL CSE: CHAL | OTCQB: CHALF 16
Slide 17: Marketing
MARKETING It’s all about collaboration! We specialize in brand creation and immersive storytelling married with best-in-class technology View Our Monthly Update Partnerships Community is at the heart of everything we do CSE: CHAL | OTCQB: CHALF 17
Slide 18: World Class Grow
WORLD CLASS GROW Sustainable & Organic Farm Award winning director of cultivation with over 15+ years of cannabis experience Genetics Lab Breeding facility with unmatched legacy CSE: CHAL | OTCQB: CHALF 18
Slide 19: Production & Supply Chain
PRODUCTION & SUPPLY CHAIN Future State Future State GMP Certification Streamlined Process 48 – hour turn from delivery to store CSE: CHAL | OTCQB: CHALF 19
Slide 20: Objectives
OBJECTIVES 2020 2021 2022 ✓ Q1 ✓ Q1 Q1 • Leadership team in place • Recapitalized balance sheet • Optimized Oregon Vertical ✓ Q2 • Raised equity of C$13.5 integration • Record growth of 40% YoY Million Q2 in Oregon ✓ Q2 • “Run Phase” launch of ✓ Q3 • Expand retail footprint in California retail stor
Slide 21: Financial Highlights
FINANCIAL HIGHLIGHTS Key Focus: Strong growth, improved working capital discipline, and improved financial performance • Record annual revenues of $21.9M in 2020, increase of 39% from 2019 with a 20% decrease in operating costs. Accomplished in-spite of all headwinds faced during 2020. • 2020 Q4 rev
Slide 22: 2021 Highlights
2021 HIGHLIGHTS Key Focus: Adjusted EBITDA positive, contained operating costs, disciplined capital allocation, and strategic acquisitions. • Recorded Q1 revenues of $5.5M, increase of 18% from 2020 with a 21% decrease in operating costs. Gross profit margin of 45% compared to 37% in Q1 2020. Sustai
Slide 23: 2021 Highlights (continued)
2021 HIGHLIGHTS (continued) • On April 8, 2021 the Company announced its 80% acquisition of CBD skincare brand Fifth & Root with a national presence in over 400 retail outlets across the United States. • A record 412 million shares voted at the Company’s annual general meeting held on May 10th, 2021
Slide 24: 2021 Highlights (continued)
2021 HIGHLIGHTS (continued) • Record second quarter 2021 revenues of $6.9M, a 26% year-over-year increase compared to $5.5 million for the same period in 2020. Gross profit grew 131% year-over-year to $3.1 million. Gross margin almost doubled from 23% in Q2 2020 to 45% in Q2 2021. • Continued the po
Slide 25: Introduction to Homegrown
INTRODUCTION TO HOMEGROWN 5-Store retail chain anchored in Salem, Oregon. Well-run, profitable, turn-key and accretive. • Run rate of $11 million in first quarter 2021 with 49% gross margin and Adjusted EBITDA1 of $2 million based on unaudited results. • All locations are easily accessible from Chal
Slide 26: Investment Highlights
INVESTMENT HIGHLIGHTS Market Focus Disciplined Growth Integration Production, processing, wholesale A leader in one of the most Growth and scale in home market distribution, and retail. competitive, innovative and mature accretive to EBITDA at run phase. markets in North America with a New markets f
Slide 27: Contact Us
CONTACT US Chalice Brands Ltd. Address 13315 NE Airport Way, Unit 700 Portland, OR 97230 Email info@chalicebrandsltd.com Phone 971.371.2685 LEADING CANNABIS OPERATOR CSE: CHAL | OTCQB: CHALF
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