Medicine Man Technologies Inc. · OTC:SHWZ
Medicine Man Technologies — Investor Presentation (November 2022)
29 slides from Medicine Man Technologies's investor presentation, Nov 30, 2022
Slide 1: Corporate Presentation December 2022
1 OTCQX SHWZ NEO SHWZ CORPORATE PRESENTATION | DECEMBER 2022
Slide 2: Safe Harbor
2 OTCQX:SHWZ | NEO:SHWZ SAFE HARBOR 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,” “will,” “should,”
Slide 3: Leading vertically integrated retail operator driving brand development
3 3 We are a Leading, VERTICALLY INTEGRATED Retail Operator Driving BRAND DEVELOPMENT with a REGIONAL Focus
Slide 4: Schwazze at a Glance
4 OTCQX:SHWZ | NEO:SHWZ 4 HEADQUARTERS Denver, Colorado Operating in Colorado and New Mexico RETAIL (1) 37 Dispensaries #2 IN COLORADO (25) #4 IN NEW MEXICO ( 13) CULTIVATION MANUFACTURING AT A GLANCE Note: (1) Based on number of active adult - use stores; includes acquisitions announced, but not ye
Slide 5: Why Invest in Schwazze? (1)
5 OTCQX:SHWZ | NEO:SHWZ WHY INVEST IN SCHWAZZE? Corporate Excellence QUALITY SOCIAL Cannabis – Growth Sector – U.S. legal cannabis TAM expected to be $28.3B in 2022 and growing to $46.2B by 2026, or a 13% CAGR. Total U.S. Cannabis TAM expected to reach $100B in 2030 Cannabis is Recession Resilient G
Slide 6: Why Invest in Schwazze? (2)
6 OTCQX:SHWZ | NEO:SHWZ WHY INVEST IN SCHWAZZE? Corporate Excellence QUALITY SOCIAL Top Performance and Execution – Delivering 37% EBITDA Margin in Mature States Colorado and Playbook Travels – e.g., New Mexico Seasoned Management Team – Track Record in Competitive Low Margin Sectors and Demonstrati
Slide 7: Well positioned to take advantage of a hypergrowth industry
7 OTCQX:SHWZ | NEO:SHWZ Well positioned to take advantage of a hypergrowth industry 20 45% 18% ANNUAL 11% MONTHLY States where Cannabis is Legal Recreationally (1) of the U.S. Population Lives in Recreationally Legal States U.S. Cannabis Use Incidence CANNABIS TODAY Note: (1) As of June 2022; includ
Slide 8: Our goal is to create value by becoming number one in our markets
8 OTCQX:SHWZ | NEO:SHWZ Our goal is to create value by becoming number 1 in the markets we serve as preferred retailers and memorable brands creators. GO DEEP IN RETAIL RUN LEAN DRIVE HOUSE BRANDS MEASURE AND MANAGE Diversified, focused, growing asset portfolio in Colorado and New Mexico Efficiently
Slide 9: Going Deep: What It Is & Why It Matters
9 OTCQX:SHWZ | NEO:SHWZ GOING DEEP WHAT IT IS & WHY IT MA T TERS Sales Volume Geographic Coverage Brands She lf Space Economies of Scale Consumer Choice 9 OTCQX:SHWZ | NEO:SHWZ Concentrated retail operations drive market share gains and cost efficiencies, a winning long - term strategy
Slide 10: Super Regional Footprint: Colorado and New Mexico
10 OTCQX:SHWZ | NEO:SHWZ COLORADO Cannabis Retail Sales (2021) (1) $2.1B 12M Incidence (18+) (1) 18% Population (2020) (2) 5.8M Increase Since 2010 (2) 15% NEW MEXICO Cannabis Retail Sales (2021) (1) $264M 12M Incidence (18+) (1) 13% Population (2020) (2) 2.1M Increase Since 2010 (2) 3% 10 SUPER REG
Slide 11: New Mexico Expected Growth 200% by 2026
11 OTCQX:SHWZ | NEO:SHWZ NEW MEXICO EXPECTED GROWTH 200% BY 2026 (1) MANUFACTURING RETAIL CULTIVATION 1 facility 6K ft 2 13 retail locations 29K+ ft 2 83K+ ft 2 of cannabis production 9K ft 2 incremental being developed 11 OTCQX:SHWZ | NEO:SHWZ $- $100,000,000 $200,000,000 $300,000,000 $400,000,000
Slide 12: Schwazze House of Brands
12 12 SCHWAZZE HOUSE OF BRANDS >30% market share CO wholesale distillate (1) COLORADO & NEW MEXICO NEW MEXICO dispensaries COLORADO dispensaries ) COLORADO dispensaries Banners Relationship Brands Brands &
Slide 13: Why Brands Matter
13 OTCQX:SHWZ | NEO:SHWZ Enterprise Value $0.4 $152 $35 $86 $272 $184 $133 $274 $360 $112 $55 $57 $58 $393 $188 $5 $26 $4 $2 $0.1 $6.0 $1.4 $3.9 $14.1 $10.2 $7.2 $16.2 $21.4 $7.7 $3.8 $4.0 $4.3 $29.0 $19.9 $0.4 $2.3 $0.5 $0.4 32% 45% 34% 22% 32% 24% 20% 19% 26% 35% 38% 20% 33% 33% 34% 9% 19% 20% 19%
Slide 14: Brand Building Success
14 OTCQX:SHWZ | NEO:SHWZ 29.40% 27.61% 28.03% 25.97% 29.64% 27.97% 25.41% 24.46% 24.43% 22.65% 21.23% 15.01% 19.41% 18.87% 15.45% 21.32% 20.77% 20.84% 23.88% 25.28% 24.98% 28.91% 29.31% 30.14% 30.89% 41.93% 31.15% 30.96% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21
Slide 15: Recent Acquisition Performance
15 (11%) (5%) 21% 9% 16% 16% Smoking Gun Drift Emerald Fields Pre-Acquisition Post-Acquisition ~60% 52% 53% 54% 55% 56% 57% 58% 59% Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 54% 52% 60% 55% 56% 58% 57% 59% 65% 55% 56% 61% Last Pre-Acquisition Quarter SHWZ 1st Quarter SHWZ 2nd Quarter Smoking Gun Dri
Slide 16: Drift Acquisition Performance
16 DRIFT ACQUISITION PERFORMANCE Pre-Opening YoY % Post-Opening YoY % Pro Forma Δ Sales (23%) (8%) + 15% Traffic (8%) (2%) + 6% Average Basket $52.93 $49.03 (7%) RE - BANNER PERFORMANCE (2) GROSS MARGIN IMPROVEMENT POST - ACQUISITION 55% 58% Last Pre-Acquisition Quarter SHWZ 2nd Quarter Schwazze has
Slide 17: Smoking Gun Acquisition Performance
17 SMOKING GUN ACQUISITION PERFORMANCE Pre-Opening YoY % Post-Opening YoY % Pro Forma Δ Sales (19%) 34% + 53% Traffic (20%) 20% + 41% Average Basket $56.41 $60.42 + 7% RE - BANNER PERFORMANCE (2) GROSS MARGIN IMPROVEMENT POST - ACQUISITION RELATIVE SALES PERFORMANCE PRE - / POST - ACQUISITION (1)(2)
Slide 18: Management team
18 18 OTCQX:SHWZ | NEO:SHWZ JUSTIN DYE Chief Executive Officer, Chairman Led the growth of Albertsons sales from ~$10B to ~$60B with over creating one of the largest privately held companies in the U.S. 2,300 stores 285,000 employees & experience managing public enterprises, overseeing multifunction
Slide 19: Making a Difference
19 OTCQX:SHWZ | NEO:SHWZ MAKING A DIFFERENCE Corporate Excellence QUALITY GOVERNANCE SOCIAL ENVIRONMENT We understand that diversity and engagement make for a better and more enriched Company We are dedicated to making a difference in the communities and neighbourhoods in which we operate and serve
Slide 20: Current Capital Structure
20 OTCQX:SHWZ | NEO:SHWZ 20 OTCQX:SHWZ | NEO:SHWZ CURRENT CAPITAL STRUCTURE $ 1.73 Stock Price 11/16/22 Source: Company filings and estimate, FactSet as of 11/16/22 Notes (1) Assumes outstanding preferred stock converted to common stock at $1.20 per share for purposes of calculating equity value; in
Slide 21: Q3 2022 Performance
21 OTCQX:SHWZ | NEO:SHWZ Q3 2022 PERFORMANCE Selected Highlights for the Third Quarter Ended September 30, 2022 21 OTCQX:SHWZ | NEO:SHWZ Note: Adjusted EBITDA represents income (loss) from operations, as reported, before tax, adjusted to exclude non - recurring items , other non - cash items, includ
Slide 22: Peer Comparison
22 OTCQX:SHWZ | NEO:SHWZ Source: Company filings, FactSet as of 11/15/22 Note: Peer set pro forma for all significant M&A PEER COMPARISON Rising Industry Leader Trading at a Discount SCHWAZZE TOP 5 MSOs REGIONAL MSOs Enterprise Value / 2023 Adjusted EBITDA (Consensus) Enterprise Value $380 $5,990 $3
Slide 23: Financial Trends
23 OTCQX:SHWZ | NEO:SHWZ 2019 2020 2021 2022 Analyst Consensus 48% 30 % 54% 33 % 31% (32%) 94% Y - o - Y growth 352% Y - o - Y growth 48 % Y - o - Y growth FINANCIAL TRENDS 23 OTCQX:SHWZ | NEO:SHWZ 2019 to 2022 Financials Gross Margin Revenue Adjusted EBITDA Margin $200,000,000 $0
Slide 24: Closing message from CEO Justin Dye
24 24 Justin Dye Chief Executive Officer We are committed to UNLOCKING THE FULL POTENTIAL of the cannabis plant to IMPROVE the HUMAN CONDITION.
Slide 25: Contact
25 25 CONTACT Joanne Jobin, Investor Relations T 647 - 964 - 0292 E ir@Schwazze.com W Schwazze.com CORPORATE OFFICE Schwazze 4880 Havana St., Ste 201 Denver, CO 80239 T 303 - 371 - 0387 OTCQX & NEO SHWZ
Slide 26: Appendix
26 26 APPENDIX
Slide 27: Management Experience
27 OTCQX:SHWZ | NEO:SHWZ MANAGEMENT EXPERIENCE Justin Dye Chief Executive Officer & Chairman, Director 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 and
Slide 28: Board of Directors
28 OTCQX:SHWZ | NEO:SHWZ BOARD OF DIRECTORS Jeff Garwood Jeff Garwood founded and is the Managing Member of Liberation Capital, a private equity fund focused on providing modular, repeatable waste to value project finance. He is also the co - owner of Zysense, an entity providing high precision meas
Slide 29: Adjusted EBITDA Reconciliation
29 OTCQX:SHWZ | NEO:SHWZ Source: Company filings Note: Adjusted EBITDA represents income (loss) from operations, as reported, before tax, adjusted to exclude non - recurring items, other non - cash items, including stock - based compensation expense, depreciation, and amortization, and further adjus
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