Simply Solventless Concentrates Ltd · TSXV:HASH
Simply Solventless Concentrates — Investor Presentation (July 2024)
20 slides from Simply Solventless Concentrates's investor presentation, Jul 3, 2024
Slide 1: Investor Presentation June 2024
INVESTOR TSX-V: PRESENTATION HASH JUNE 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 the market leader in Canadian cannabis through the curation of exceptional, unique, and personalized cannabis journeys.
Slide 3: TSX-V: HASH Summary
TSX-V: HASH SUMMARY STRAIGHT QUARTERS LONG TERM 2023 ACTUAL 2024 PROJ. EXIT 2024 PROJ. EXIT PROFORMA ADJ. OF NET INCOME PROFIT DEBT REVENUE(1) ANNUALIZED REVENUE(2) ANNUALIZED NET INCOME (2) EBITDA MULTIPLE(3) 6 $0 $7M $40M $6M 1.5x TRACK RECORD OF ACQUISITIONS PROFORMA PROJECTED ANNUALIZED NORMALIZ
Slide 4: News Alert! SSC Agrees to Acquire CannMart Inc.
NEWS ALERT! SSC AGREES TO ACQUIRE CANNMART INC.! THIS TRANSFORMATIVE DEAL ESTABLISHES SSC AS A LEADER IN HYDROCARBON CONCENTRATES, BUILDING UPON SSC’S LEADERSHIP POSITION IN SOLVENTLESS CONCENTRATES. PROFORMA, WE EXPECT TO HOLD THE #2 CONCENTRATES MARKET SHARE POSITION IN ALBERTA, #1 IN SASKATCHEWAN
Slide 5: CannMart Inc. Acquisition
CANNMART INC. ACQUISITION(1)(2) PROFORMA PROJECTED ANNUALIZED REVENUE $MILLIONS ANNUAL REVENUE $40.0 $34.0 REVENUE MULTIPLE PAID ACQUIRED $7.0 $12.5 $18.0 0.18x ~$20M 2023 ACTUAL Q1 '24 ACTUAL Q2 '24 PROJ. Q3 '24 PROJ. Q4 '24 PROJ. WORKING CAPITAL DEBT ACQUIRED ACQUIRED PROFORMA PROJECTED ANNUALIZED
Slide 6: Comp. Table
COMP. TABLE SSC HAS THE HIGHEST NET INCOME PERCENTAGE OF PEER GROUP AND CURRENTLY THE THIRD LOWEST MULTIPLE AT 3.7X ADJ. EBITDA (PROFORMA SSC HAS THE LOWEST MULTIPLE AT 1.5X ADJ. EBITDA). THIS IS DESPITE SSC HAVING NO LONG-TERM DEBT WHILE AVERAGE DEBT OF PEER GROUP IS $16 MILLION. NET INCOME % SSC /
Slide 7: Proforma SSC Brands
PROFORMA SSC BRANDS(1) #1 CONCENTRATES BRAND IN MANITOBA AND LIVE ROSIN INFUSED PRE-ROLLS, BLUNTS, EDIBLES, DRIED FRUITS, GUMMIES, BLUNTS! SASK, #2 CONCENTRATES BRAND IN ALBERTA, #8 CONCENTRATES, AND HASH! #3 CONCENTRATES SALES TO QUEBEC! CONCENTRATES BRAND IN ONTARIO.(1) BRAND IN ALBERTA!(1) FLAVOU
Slide 8: Proforma SSC Product Listings & Market Share
PROFORMA SSC PRODUCT LISTINGS & MARKET SHARE PLANNED PRODUCT LISTINGS 160 140 CURRENT PLANNED MARKET SHARE 120 CANNMART MARKET SHARE(1) ACQUISITION ADDS 1.0% 100 ROILTY, ZEST, AND 13.0% RILAXE. 80 LAMPLIGHTER ACQUIRED 60 JANUARY 2024. 7.5% 6.4% 6.2% 40 ASTROLAB + FROOTYHOOTY DEVELOPED IN HOUSE. 0.3%
Slide 9: Less Costs: In-House Hydrocarbon Extraction
LESS COSTS: IN-HOUSE HYDROCARBON EXTRACTION(1) ANNUAL USAGE TOTAL DISTILLATE (G) 129,655 600,000 729,655 HYDROCARBON CONCENTRATES (G) 314,743 - 314,743 DISTILLATE SAVINGS $ PER GRAM $0.35 $0.35 $0.35 HYDROCARBON SAVINGS $ PER GRAM $2.25 $2.25 $2.25 ANNUAL SAVINGS $ $760,034 $240,000 $1, 000,034 EXPE
Slide 10: $0.30 Unit Financing June 18, 2024
$0.30 UNIT FINANCING JUNE 18, 2024 “SSC INTENDS TO USE THE NET PROCEEDS OF THIS FINANCING TO FACILITATE THE HIGHLY ACCRETIVE AND TRANSFORMATIVE CANNMART SERVICES AGREEMENT, TO FUND THE CANNMART ACQUISITION, TO PROVIDE WORKING CAPITAL TO FUEL SALES, AND TO COMMISSION IN-HOUSE HYDROCARBON EXTRACTION E
Slide 11: Post Money Cap Table
POST MONEY CAP TABLE CAP TABLE TYPE # EXERCISE EXPIRY COMMON SHARES 67,808,522 - - WARRANTS 26,084,660 $0.20 AUG. 2026 & 2027 WARRANTS 7,000,000 $0.40 JULY 2027 OPTIONS 4,855,000 ~$0.20 AUG. 2026 & 2027 FULLY DILUTED 105,748,182 - - TYPE $(3) DEBT - EST. WORKING CAPITAL 7,000,000 NET WORKING CAPITAL
Slide 12: Execution and Future Timeline
EXECUTION AND FUTURE TIMELINE June 2024 April 2024 March TSX-V: 2024 ENTERED INTO SERVICES AND PURCHASE AGREEMENT February HASH CLOSED WITH OVER CANNMART INC. 2024 SUBSCRIBED Jan. FINANCING FOR NET ANNOUNCED Dec. 2024 RECORD PROCEEDS Nov. 2023 PROJECTED Q1 OF $800,000 Aug. 2023 REVENUE OF $3,100,000
Slide 13: 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 14: Team
TEAM Alan is a natural born leader with an entrepreneurial spirit that specializes in Supply Chain, Planning and ALAN ARELLANO Operations. He has more than 5 years of Cannabis management experience and more than 10 years of SUPPLY CHAIN AND Operations Management. He is a licensed Realtor in Alberta
Slide 15: 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 16: Disclaimers
DISCLAIMERS This corporate presentation dated June 2024 (the “Presentation”) has been prepared by management of Simply Solventless Concentrates Inc. (the “Corporation” or “Simply Solventless”). This Presentation does not constitute an offer to sell to any person, or a general offer to the public of,
Slide 17: 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 18: 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
Slide 19: Disclaimers: Future Oriented Financial Information
DISCLAIMERS CAUTIONARY NOTE REGARDING FUTURE ORIENTED FINANCIAL INFORMATION This Presentation also contains future-oriented financial information and financial outlook information (collectively, "FOFI") about the Corporation's prospective results of operations including, without limitation, the Corp
Slide 20: Disclaimers: Rights of Action and Reconciliation Tables
DISCLAIMERS RIGHTS OF ACTION - CONTINUED In Manitoba, the Securities Act (Manitoba), in Newfoundland and Labrador the Securities Act (Newfoundland and Labrador), in Prince Edward Island the Securities Act (PEI), in Yukon, the Securities Act (Yukon), in Nunavut, the Securities Act (Nunavut) and in th
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