Growgeneration Corp. · NASDAQ:GRWG
Growgeneration — Investor Presentation (September 2017)
14 slides from Growgeneration's investor presentation, Sep 25, 2017
Slide 1: Investor Presentation September 2017
OTCQB: GRWG 1 Investor Presentation September 2017 OTCQB: GRWG growgeneration.com
Slide 2: Safe Harbor Statement
OTCQB: GRWG 2 Safe Harbor Statement This presentation is being provided for information purposes only and does not constitute an offer to sell or a solicitation of an offer to purchase any of the Company’s securities . This presentation is not intended, nor should it be distributed, for advertising
Slide 3: Where The Pros Go To Grow
OTCQB: GRWG 3 Where The Pros Go To Grow One of the largest owner / operators of 14 specialty retail hydroponic and organic gardening stores Selection - Service - Solutions growgeneration.com
Slide 4: Market Overview
OTCQB: GRWG 4 Market Overview • Commercial cultivation is exploding • Global hydroponic sales projected to exceed $30B by 2020 • Highly fragmented retail space – >1,000 existing hydroponic stores – Smaller players struggling to compete as commercial market expands • ~7,000 licensed commercial grower
Slide 5: Growth Strategy: National Expansion
OTCQB: GRWG 5 Growth Strategy: National Expansion Growth to be fueled by both new store openings and acquisitions 14 stores , 4 states/ 20 stores, 10 states by 2018 Alabama Arizona Arkansas California (2) Colorado (9) Florida Georgia Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Massac
Slide 6: Hydroponic Cultivation Expansion
OTCQB: GRWG 6 Hydroponic Cultivation Expansion Enabling large, commercial growers to source equipment and supply needs from one supplier, a $23 B Industry Lighting Fans Bench systems Soil Pots Trellis Nutrients On-going supplies ~$200K 1 st Year Revenue for GrowGen 30% of initial Buildout goes to mo
Slide 7: Growth Strategy: Acquisition Pipeline
OTCQB: GRWG 7 Growth Strategy: Acquisition Pipeline Targeting acquisitions with $1M to $5M in annual revenue that are a STRATEGIC fit based on location, customer list and opportunity to grow quickly • Fragmented and target - rich landscape, consolidation of the retail stores, expansion from the grow
Slide 8: Growth Strategy: Online/Social Media
OTCQB: GRWG 8 Growth Strategy: Online/Social Media • Near - term enhancements include online functionality for growers to access commercial pricing - Q3 launch • Growing social media presence with more than 1,000 Instagram followers and 3,500 Facebook “likes” • Creating searchable inventory of grow
Slide 9: Investment Considerations
OTCQB: GRWG 9 Investment Considerations • Established, specialty retail presence focused on “picks and shovels” of cultivation equipment & supplies, located in close proximity to commercial growers • U.S. cannabis market is expected to reach $23B by 2020 (1) • Strong year - over - year growth – FY20
Slide 10: Capital Turnover and Capital Structure
OTCQB: GRWG 10 Capital Turnover 14 stores across 4 markets, CO, CA, NV, WA Capital raised to date has driven exponential revenue growth and strong balance sheet Stock Price 1 $1.75 Shares Outstanding 1 15.7M Warrants Outstanding 1 4.2M Stock Options Outstanding 1 2.1M Equity Market Cap 1 $27.4M Debt
Slide 11: 2017 Highlights
OTCQB: GRWG 11 2017 Highlights • Q1 2017 rev up 68% y/y, Q2 rev $4.1 m versus $1.9m over 100% y/y • Raised $4.3M in equity capital • Acquired Seattle Hydro Spot, located in Seattle, WA • Acquired Sonoma Hydro and consolidated GrowGen Santa Rosa into an over $2.5M run rate operation in Sonoma County,
Slide 12: Key Financial Metrics
OTCQB: GRWG 12 Key Financial Metrics Attractive business profile for increasing shareholder value Gross Margin ~30% - 35% 27.6% Target 2016 Capital Turnover 3X $ Each $1M in capital drives ~$3M in annual revenue Commercial Cannabis Grower 15 - 20% of total sales will be invested in hydroponic and an
Slide 13: Leadership and Strategic Investors
OTCQB: GRWG 13 Leadership and Strategic Investors Strategic Investors Board of Directors and Executive Management Darren Lampert CEO Director Steven Aiello Director Jody Kane Director Merida Capital Partners Robert Yosatis Michael Salaman President Director ‒ Founding member of law firm Lampert & La
Slide 14: Contacts
OTCQB: GRWG 14 Contacts Company Contact Darren Lampert , Chief Executive Officer GrowGeneration Corp., Denver, CO Tel 800.935.8420 | Darren@growgeneration.com growgeneration.com
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