Simply Solventless Concentrates Ltd · TSXV:HASH
Simply Solventless Concentrates — Investor Presentation (February 2024)
19 slides from Simply Solventless Concentrates's investor presentation, Feb 20, 2024
Slide 1: Investor Presentation
INVESTOR TSX-V: PRESENTATION HASH February 2024
Slide 2: Our Mission and Vision
OUR MISSION Is to provide pure, potent, terpene-rich ready to consume cannabis products to discerning cannabis consumers. OUR VISION Is to be a market leader in Canadian cannabis through the curation of exceptional, unique, and personalized cannabis journeys.
Slide 3: Brands, Profit, No Debt and Growing Revenue
BRANDS 2023 PROFIT TSX-V: HASH FUN BRANDS $13.8M GREAT PRODUCTS GROSS REVENUE (1) GROWING REVENUE COMBINED: $20.0M NET INCOME PROFIT $0 COMBINED: $6.8 $13.8M $6.8 DEBT $13.2 $7.0 $2.8 2022 2023 2024 $0.23-$1.60 Projected Projected $2.2M $1.0M PER SHARE ENTERPRISE VALUES AT 1X - 6X 2023 PROJECTED SSC
Slide 4: Strategy: Shareholder Value and Strong Valuation Multiples
STRATEGY 1. FANTASTIC 2. REVENUE SHAREHOLDER VALUE PRODUCTS & GROWTH AND STRONG ORGANIC THROUGH VALUATION MULTIPLES BRANDED OPPORTUNISTIC ARE ACHIEVED REVENUE GROWTH ACQUISITIONS THROUGH CONSUMER SATISFACTION, 3. NET 4. NO DEBT & REVENUE GROWTH, NET INCOME CLEAN CAP INCOME, AND STRONG PROFIT STRUCTU
Slide 5: Lamplighter Acquisition Integration Update
LAMPLIGHTER ACQUISITION INTEGRATION UPDATE 12 OF 21 SKU LISTINGS PURCHASE ORDERS $511,000 OF PURCHASE TRANSFERRED TO SSC IN RECEIVED FOR 7 OF 12 ORDERS RECEIVED IN FIRST FIRST MONTH(1). TRANSFERRED LISTINGS(1). MONTH ON 7 LISTINGS(1). LAMPLIGHTER ACQUIRED ON 100% VENDOR FINANCED BASIS FOR UP TO $570
Slide 6: Lamplighter Acquisition Integration Update: Ontario Pre-roll Rankings
LAMPLIGHTER ACQUISITION INTEGRATION UPDATE ONTARIO JANUARY 2024 1.5G INFUSED PREROLL RANKINGS Product Name Rank Sales $ Units Producer General Admission - Tiger Blood 1.5g 1 $ 984,696 61,943 DECIBEL General Admission - Peach Ringz 1.5g 2 $ 489,629 30,803 DECIBEL General Admission - Taster Pack - 1.5
Slide 7: Revenue: Brands & Products
REVENUE: BRANDS & PRODUCTS FLAVOURFUL HIGH POTENCY DISTILLATE INFUSED FLAVOUR FOCUSED LIVE ROSIN AMPLIFIED LIVE ROSIN INFUSED PRE-ROLLS, BLUNTS, PRE-ROLLS AND VAPES. #13 1.5G INFUSED DISTILLATE INFUSED PRE-ROLLS, BLUNTS, VAPES CONCENTRATES, AND HASH! #1 AND #9 ROSIN PREROLL SKU IN ONTARIO IN JANUARY
Slide 8: Revenue: 50+ Provincial Listings
REVENUE: 50+ PROVINCIAL LISTINGS PROVINCE / PLATFORM BRAND STATUS WHEN 7 LISTINGS ACCEPTED IN MARKET AVERAGE: OCS 4 LISTINGS ACCEPTED FEBRUARY ’24 & $43,000/SKU(1) MAY ’24 AVERAGE MONTHLY AGLC 4 LISTING ACCEPTED IN MARKET REVENUE PER SKU IN CONCENTRATES, VAPES, 8 LISTINGS ACCEPTED IN MARKET AND INFU
Slide 9: Revenue: Organic + Acquisitions + Profit
REVENUE: ORGANIC + ACQUISITIONS + PROFIT Requires 0.5% Market Share $20.0 MILLION MARKET SHARE(2) COMBINED(1) 0.3% $274 Market Share MILLION NET $13.8 MILLION $6.8 LOSS(3) COMBINED(1) 13.0% $1.6 MILLION NET $249 $17.7 INCOME (3) MILLION NET MILLION NET $6.8 $1.0 MILLION LOSS (3) LOSS(3) COMBINED 7.5
Slide 10: Net Income Drives Valuation Multiple
NET INCOME DRIVES VALUATION MULTIPLE(1) 18% Gross Revenue Multiple Net Income (%) 2.20 2.0 13% 13% 7% 8% Revenue Multiple 1.5 Net Income % 1.44 4% 1.34 3% 2% 2% 2% 1.0 1.00 0.94 -2% -2% 0% 0.5 0.55 0.49 0.48 -7% -7% 0.43 -10% 0.14 0.0 -12% Nextleaf SSC Cannara Canadabis Avant MTL Heritage Decibel Ad
Slide 11: Share Value Opportunity: Multiples
SHARE VALUE OPPORTUNITY(1) $20.0M $13.8M (1) $6.8 ORGANIC QUALITY REVENUE + = $6.8 BRAND BRAND $13.2 EXPANSION ACQUISITIONS GROWTH $2.8M $7.0 2022 2023 2024 Projected Projected (2) 1.4 1.30 1.2 NO DEBT HIGHER GROSS 1.0 0.8 0.55 (1) NET INCOME PROFITABILITY + & CLEAN BALANCE = MULTIPLES REVENUE 0.6 0
Slide 12: Capitalization Table and Enterprise Value per Share
CAPITALIZATION TABLE $2.0 ENTERPRISE VALUE PER SHARE VS. REVENUE AND MULTIPLES Million Current Enterprise Value Based GROSS REVENUE on $0.08/Share ($4.0 Million $ 13,800,000 $ 20,000,000 $ 30,000,000 Market Cap Less $2.0 Million 6x $1.60 $2.34 $3.53 GROSS REVENUE Working Capital) 5x $1.33 $1.94 $2.9
Slide 13: Execution and Future Timeline
EXECUTION AND FUTURE TIMELINE February 2024 SSC HAS RAISED $6.9M AND HAS A MARKET CAP OF $8.6M, IS January LICENSED, HAS INCREASED REVENUE EACH YEAR FROM 2021 2024 TSX-V: TO 2023, HAS ACHIEVED PROFITABILITY, HAS 50 RECORD MONTHLY PROVINCIAL LISTINGS UNDER THREE POPULAR BRANDS, HAS PURCHASE NO DEBT,
Slide 14: Executive & Management Team
EXECUTIVE & MANAGEMENT TEAM Jeff is a passionate executive with over ten years of experience building high-growth public companies in cannabis and oil and gas. Prior to co-founding SSC, Jeff was Co-Founder and Chief Financial Officer of SugarBud JEFF SWAINSON Craft Growers Corp. Prior to SugarBud, J
Slide 15: Team
TEAM PAULA BELEA Paula has twenty years of quality assurance experience in food production and cannabis. Prior to joining SSC, Paula was the QAP of the Rocky View facility with Sundial. QAP Braeden brings to SSC almost a decade of ACMPR personal cannabis production and processing experience, BRAEDEN
Slide 16: Board of Directors
BOARD OF DIRECTORS BILL MACDONALD Bill brings over 40 years of deal making, financing and capital markets experience to the SSC team. He has extensive experience with publicly listed companies and has been involved in four TSX-V recapitalizations in the last five years, and three IPO filings on the
Slide 17: Disclaimers
DISCLAIMERS This corporate presentation dated January 2024 (the “Presentation”) has been prepared by management of Simply Solventless Concentrates Inc. (the “Corporation” or “Simply Solventless”) and is based on public information. This Presentation does not constitute an offer to sell to any person
Slide 18: Disclaimers: Non-GAAP Measures
DISCLAIMERS NON-GAAP MEASURES This Presentation contains certain financial performance measures that are not recognized or defined under IFRS (termed “Non-GAAP Measures”). As a result, this data may not be comparable to data presented by other cannabis companies. For an explanation of these measures
Slide 19: Disclaimers: Forward Looking Information
DISCLAIMERS CAUTIONARY NOTE REGARDING FORWARD LOOKING INFORMATION This Presentation contains forward-looking statements with respect to the Corporation. By their nature, forward-looking statements are subject to a variety of factors that could cause actual results to differ materially from the resul
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