Chalice Brands Ltd. · OTC:CHALF
Chalice Brands — Investor Presentation (December 2021)
31 slides from Chalice Brands's investor presentation, December 2021
Slide 1: Corporate Presentation | December 2021
C O R P O R ATE P R E SE NT AT IO N | DEC EMBER 2021 L E A D I N G C A N NA BI S O P E R ATO R CSE: CHAL | OTCQB: CHALF
Slide 2: Disclaimer
D I S CL A I M ER 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”, “s
Slide 3: Company Overview
CO M PA N Y O V ERV I EW Chalice Brands Ltd. A Best-In-Class Multi-State Operator Chalice Brands is an Adjusted EBITDA1 positive, financially disciplined MSO focused on building a leading brand presence in the west coast. High level competencies in retail, marketing, and craft cultivation supported
Slide 4: Investment Highlights
I N V ES TMENT H I G H L IG HTS 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
Slide 5: Chalice Today
CH A L I CE T O D A Y Chalice Brands Ltd. is an adjusted-EBITDA positive, undervalued MSO, with a presence nationally through Fifth and Root, as well as operations in Oregon and California. Chalice Brands’ operational footprint: • A combined workforce of over 250 employees. • A combined retail portf
Slide 6: Brands: Why they matter (and always will)
B RA N D S: 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. E XP LOR E C H A LIC E F A R MS EXP LOR E ELYSI UM F I ELDS EXPLORE RXO EXPLORE FIFTH & ROOT CSE: CHAL | OTCQB: CHALF 06
Slide 7: #1 in Consumer Engagement
# 1 I N CO N S U MER EN G A G EM EN T 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 enga
Slide 8: 08
08
Slide 9: mo) (i 5.0.
mo) (i 5.0. Shall ag the Fouse of Pan 2 y G NCH Med Fe hess Kealin Y W one lhe <ar le 09
Slide 10: 100% Live Resin
100% dive Resin
Slide 11: New to Chalice Farms
NEW TO CHALICE FARMS 11
Slide 12: Cannabis Platform
CA N N A BI S P L A T F ORM 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 12
Slide 13: Where We Come From
W H ERE W E CO M E F RO M + 45 years + 20 y e a r s of combined of combined cannabis cannabis experience supply chain experience + 5 0 years + 8 5 years of Fortune 25 of combined experience retail experience CSE: CHAL | OTCQB: CHALF 13
Slide 14: Executive Management
EXECU T I VE M A N A G EMENT JEFF YAPP JOHN VARGHESE MEGHAN MILLER Chief Operating Officer President & CEO Executive Chairman ANDREW MARCHINGTON, CPA GINGER MOLLO Chief Financial Officer Chief Integration Officer & GM of Fifth & Root KAREN MORGAN JANE SULLIVAN JOEL KLOBAS Chief Marketing Officer Chi
Slide 15: Board of Directors
B O A RD O F D I RECT ORS 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, highlighte
Slide 16: Crawl Walk Run
CRA W L W A L K RU N “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,
Slide 17: Oregon
O REG O N A Leader in the U.S. Cannabis Industry 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 market #1 in retail stores per capita (16.5 dispensaries per 1
Slide 18: Chalice Retail Operations
CH A L I CE RET A I L O P ERA T IONS 16 Retail Stores in Oregon (Portland, Salem, Albany, Eugene, and Springfield). 12 Owned, with 7 operating under the Chalice brand, and 4 under management services agreement until receipt of all regulatory approvals. TIGARD HAPPY VALLEY DOWNTOWN A I R P ORT WA Y L
Slide 19: Homegrown Oregon
H O M EG ROWN O REG O N 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 EBITDA 1 of $2 million based on unaudited results. • All locations are easily accessible from Chali
Slide 20: Introduction to Cannabliss & Co.
I N T RO DUCTION T O CA N N A B LI SS & CO . 4-Store retail chain anchored in Portland, Eugene, and Springfield , Oregon. • Effective September 16, 2021, operating 4 stores acquired from Acreage Holdings, Inc. under management services agreement until all regulatory approvals in hand. Chalice will d
Slide 21: Marketing
M A RK ET ING 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 21
Slide 22: World Class Grow
W O RL D CL A S S G RO W 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 22
Slide 23: Production & Supply Chain
P RO D U CTION & S U P P L Y CH A I N Future State Future State GMP Certification Streamlined Process 48 – hour turn from delivery to store CSE: CHAL | OTCQB: CHALF 23
Slide 24: Q3 2021 Highlights
Q 3 20 21 H I G H L IGH TS Key Focus: Fourth consecutive quarter of positive Adjusted EBITDA1, contained operating costs, disciplined capital allocation, and strategic acquisitions. • Record quarterly revenues from continuing operations of $8.0 million, a 29% year- over-year increase compared to $6.
Slide 25: Q3 2021 Highlights (continued)
Q 3 20 21 H I G H L IGH TS ( conti nued) • Record positive Adjusted EBITDA1 of approximately $600,000 represents the fourth consecutive quarter of achieving positive Adjusted EBITDA1 and is over a 300% improvement compared to a loss of $260,000 1 for the same period in 2020. • For the nine months en
Slide 26: Progress Towards Profitability
P RO G RES S T O W A RDS P RO F I TABI LIT Y Continuing trend of positive Adjusted-EBITDA* Results Quarterly EBITDA 1000 1000 500 500 0 0 -500 -500 -1000 -1000 -1500 -1500 -2000 -2000 -2500 -2500 -3000 -3000 -3500 -3500 -4000 -4000 Q419 Q120A Q220A Q320A Q420A Q121A Q221A Q321A CSE: CHAL | OTCQB: CH
Slide 27: Peer Analysis
P EER A N A L YS IS Chalice Brands’ Peers with Highlights on Brands and Relevant Metrics (as of October 20, 2021) Company Ticker Enterprise Value (USD millions) Market Cap (USD millions) Brands/ Products Price/ Sales EV/ Sales CSE:PLTH TRENDI, HaHa, Medizin, Dreamland Planet 13 Holdings Inc. $ 748.1
Slide 28: Capital Structure
CA PI T A L S T RU CT URE CSE: CHAL (as of 2021/11/22) C$0.64 Common Shares Outstanding 63.0M November 2021 Equity Financing Shares 1.7M Market Cap C$40.32M Less: Cash C$7.4M Add: OTM Convertible Debt1 C$4.1M Add: HGO Debt2 C$2.3M Add: Cannabliss Debt3* C$7.5M Add: Other Debt4 C$3.3M Add: OTM Novemb
Slide 29: Objectives
O B J ECTI VES 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
Slide 30: Investment Highlights
I N V ES TMENT H I G H L IG HTS 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
Slide 31: Contact Us
CO N T A CT U S Chalice Brands Ltd. Address 13315 NE Airport Way, Unit 700 Portland, OR 97230 Investor Relations: John Varghese, Executive Chairman Email: ir@chalicebrandsltd.com Phone: 416.706.2312 L E A D I N G C A N NA BI S O P E R ATO R CSE: CHAL | OTCQB: CHALF
Chalice Brands — Investor Presentation (December 2021) on 6ix