Chalice Brands Ltd. · OTC:CHALF
Chalice Brands — Investor Presentation (June 2021)
26 slides from Chalice Brands's investor presentation, June 2021
Slide 1: Corporate Presentation June 2021
CORPORATE PRESENTATION | JUNE 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 04 CSE: CHAL | OTCQB: CHALF
Slide 5: 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 6: Cannabis Pickup or Delivery
CANNABIS PICKUP OR DELIVERY CHALICEFARMS.COM 06 CSE: CHAL | OTCQB: CHALF
Slide 7: Black Label
BLACK LABEL PORTLAND, om 100% ive Resin
Slide 8: New to Chalice Farms
08 NEW TO CHALICE FARMS CSE: CHAL | OTCQB: CHALF
Slide 9: 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. 09 CSE: CHAL | OTCQB: CHALF
Slide 10: 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 10 CSE: CHAL | OTCQB: CHALF
Slide 11: Executive Management
EXECUTIVE MANAGEMENT JEFF YAPP JOHN VARGHESE ANDREW MARCHINGTON President & CEO Executive Chairman Chief Financial Officer KAREN MORGAN JOHN FORD MEGHAN MILLER BEN ALLMAND Chief Marketing Officer Chief Revenue Officer Chief Cultivation Officer VP of Business Development & Compliance GINGER MOLLO JAN
Slide 12: 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 13: 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 14: 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 15: Retail
RETAIL Seven Chalice Farms stores in the Portland, OR Metro Area. Existing footprint. TIGARD HAPPY VALLEY DOWNTOWN AIRPORT WAY LCC DUNDEE POWELL 15 CSE: CHAL | OTCQB: CHALF
Slide 16: 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 16 CSE: CHAL | OTCQB: CHALF
Slide 17: 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 17 CSE: CHAL | OTCQB: CHALF
Slide 18: Production & Supply Chain
PRODUCTION & SUPPLY CHAIN Future State Future State GMP Certification Streamlined Process 48 – hour turn from delivery to store 18 CSE: CHAL | OTCQB: CHALF
Slide 19: 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 20: Financial Highlights
FINANCIAL HIGHLIGHTS Key Focus: Strong growth, improved working capital discipline, and improved financial performance • Record annual revenues of $21.9M, increase of 39% from 2019 with a 20% decrease in operating costs. Accomplished in-spite of all headwinds faced during 2020. • Q4 revenue of $5.5M
Slide 21: Q1 2021 Highlights
Q1 2021 HIGHLIGHTS Key Focus: Adjusted EBITDA positive, contained operating costs including share-based compensation, contribution from biological assets • Record first quarter Q1 revenues of $5.5M, increase of 18% from 2020 with a 21% decrease in operating costs. • Gross profit margin of 45% compar
Slide 22: Q1 2021 Highlights (continued)
Q1 2021 HIGHLIGHTS (continued) • Further cleaned up the Company’s balance sheet by restructuring convertible debentures due to mature November 16, 2021 to extend the term one year to November 16, 2022 and to reprice the conversion features from C$0.30 to US$0.06. • Since the restructuring, C$3.7 mil
Slide 23: 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 24: Share Metrics
SHARE METRICS CSE: CHAL | OTCQB: CHALF Share Price C$0.06 52-Week Price Range C$0.015 – C$0.095 $0.08 Market Cap ~$72M STOCK PRICE Shares Outstanding (Basic)* 1,290,774,039 $0.06 Warrants 284,444,381 Options 103,737,502 $0.04 Fully Diluted Shares 1,790,341,912 $0.02 Insider Ownership 75,525,915 *As
Slide 25: 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 26: 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