Cls Holdings Plc · LSE:CLI
Cls — CLS Holdings USA — Investor Presentation (September 2015)
24 slides from Cls's investor presentation, Sep 17, 2015
Slide 1: CLS Holdings USA, Inc. Investor Presentation
ce CANNABIS LIFE SCIENCES CLS Holdings USA, Inc. Investor Presentation September 2015 OTCQB: CLSH http://www.clsholdingsinc.com
Slide 2: Disclaimer
Disclaimer 5 This presentation contains “forward-looking statements" made under the "safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 that are based on current expectations, estimates, forecasts and assumptions and are subject to risks and uncertainties. Words such as
Slide 3: Investment Highlights
Investment Highlights 2 Market Drivers and Opportunity = End of Prohibition = 23 States Legalized for Medical = 4States and Washington, D.C. Legalized for Recreational People = Forefront of Movement in Colorado = Public Company Experience Proprietary Technology & Methods = Improved Extraction & Conv
Slide 4: What is CLS Holdings USA?
What is CLS Holdings USA? 2 “Cannabis Life Sciences” Holdings USA Proprietary Method of Extracting Various Cannabinoids from the Marijuana Plant & Converting Them Into Higher Quality & Quantity * Profit Motive * Set Gold Standard * Labeling * Compliance * Testing * Standardization * Create National
Slide 5: Market Opportunity
Market Opportunity ‘ Opportunity in the Mainstream for a Dominant Cannabis Industry Player * End of Prohibition * Landscape Littered with Hundreds of Unqualified Entrepreneurs * State-by-State Legalization Reform Sweeping the U.S. * Rapid Proliferation of Dispensaries 2011-2013 Actual / 2014-2018 Pr
Slide 6: Changing Regulatory Environment
Changing Regulatory Environment 5 National Trend Toward Legalization States andaistictwin = medical manjuanalaws regulations in the next dons atten eon SSSA aman five years Bil Sitstettchton ened nanpentonaiie = Po a ee De ee Bo etotehenetarcne meme + Callan expected to Bi tauren same ve ne atenarpa
Slide 7: Progress Toward Legalization Nationally
Progress Toward Legalization Nationally « 23 states have legalized medical marijuana since 2010; Six more expected by 2016 Four states and D.C. have legalized recreational use by adults; Four more, including California, considering same More os ‘Two States, Three Recreational Recreational D.c. State
Slide 8: The People — Sector & Legislation Expertise
The People — Sector & Legislation Expertise 7 Jeffrey Binder — Chairman, President & CEO onary in the Strategic Start-Up & Growth of Companies Mr. Binder was one of the individuals who founded CLS Labs in 2014 and served asits Chairman, President, Chief Executive Officer and a director. Since Novemb
Slide 9: The People — Sector & Legislation Expertise
The People — Sector & Legislation Expertise 2 Alan Bonsett- COO = Cannabis Industry Leader in Colorado Mr. Bonsett joined CLS Holdings USA as its Chief Operating Officer in August 2015. Mr. Bonsett has extensive experience within the cannabis industry, spanning production and processing facility bui
Slide 10: The Method
The Method : Proprietary Method of Extraction Extraction of Various Cannabinoids from the Marijuana Plant * Ata Pharmaceutical Grade for Improved Standardization Converting the Resulting Cannabinoid Extracts into Concentrates * Oils, Waxes, Edibles & Shatter Conversion & Capture of Certain Cannabino
Slide 11: The Trade Secret
The Trade Secret 10 A proprietary method of extracting cannabinoids from cannabis plants and converting the resulting cannabinoid extracts into concentrates such as oils, waxes, edibles and shatter. These concentrates may be ingested in a number of ways, including through vaporization via electronic
Slide 12: Products & Services
Products & Services a Multiple Opportunities for Revenue Growth * Licensing Operations * Agree to build out a processing facility and then lease the facility and equipment therein to the customer for what will generally be a ten year term + License our proprietary technology, methods and processes s
Slide 13: Growth Strategy
Growth Strategy 2 Plan for 2015-2016 * Construction of Processing Centers * Denver, CO - Expected to be Operational in Q2 2016 * Obtaining the Necessary State & Local Licensure for Each Proposed Facility * Securing Licensing, Processing or Sales Arrangements with Growers & Dispensaries * Constructio
Slide 14: The Colorado Arrangement
The Colorado Arrangement 3 April 2015 — Executed Agreement & Broke Ground Commercialization Target = Q2 2016 * On April 17, 2015, CLS Labs took its first step toward commercializing its proprietary methods and processes by entering into an arrangement in Colorado, with Picture Rock Holdings, LLC (“P
Slide 15: The Colorado Arrangement
The Colorado Arrangement “ September 2015 — Grow Construction Completed Commercialization Target = Q2 2016 * Cannabis grow is in final inspections in order to get its Certificate of Occupancy * Once attained plants will be brought in and should start its grow by the end of September * Licensing part
Slide 16: Set the Standard
Set the Standard 6 Goal of Being the Pre-Eminent National Brand * Labeling * Compliance * Testing * Standardization of Dosage CLS Holdings USA, Inc.
Slide 17: The Business Model — Profit Motive
The Business Model — Profit Motive * Joint Ventures & Strategic Partnerships Multiple Strategies for Various Parts of Vertical Chain Flexible Structure Intend to Monetize * Processing of Cannabis for Others * Licensing of Proprietary Process to Others * Purchase of Cannabis & Processing and Sale of
Slide 18: Financial Projections
Financial Projections 7 Relationships Lead to Partnerships to Generate Revenue Per Proposed Processing Facility (Run-Rate After Initial 12 Months of Operation) (in $ Millions Revenues $210 Gross Margin $14.0 Contribution Margin $135 Operating Income $30 Key Assumptions: Each facility operates differ
Slide 19: Financial Projections - Disclaimer
Financial Projections - Disclaimer s THE ENCLOSED PROJECTED FINANCIAL INFORMATION RELATES TO A PROCESSING FACILITY'S ANTICIPATED REVENUE AND THE COMPANY'S ANTICIPATED OVERHEAD EXPENSES, MEANING THOSE EXPENSES THAT ARE NOT DIRECTLY RELATED TO THE PROCESSING OF CANNABIS. BECAUSE THE COMPANY WILL LIKEL
Slide 20: Comparable Valuation
Comparable Valuation » http://marijuanaindex.com/index-us-reporting/ ~ 100 U.S. Listed Public Cannabis Companies Reverse Mergers & Penny Stocks Most Touting Similar Capabilities Most Still Pre or Minimal Revenue GW Pharmaceuticals (GWPH) with a $2B Market Cap on $50M Revenue The Ones That Execute a
Slide 21: Cap Table
Cap Table od Inside Ownership of 58% * 20.25 million basic shares — 15.25 million restricted/insider — 5 million float CLS Holdings USA, Inc.
Slide 22: Corporate Information
Corporate Information a Attorney Auditor Broad and Cassel M&K CPAS, PLLC Kathleen Deutsch, Partner Casey Kinchen, CPA, Audit Partner 1 North Clematis Street 4100 N. Sam Houston Parkway W., Suite 200B Suite 500 Houston, TX 77086 West Palm Beach, FL 33401 p832-242-9950x209 p561-832-3300 Transfer Agent
Slide 23: Stock Snapshot
Stock Snapshot 22 * Symbol: * Stock Price: * 52-Week Range: + Average Daily Volume: * Shares Outstanding: * Inside Ownership: * Market Cap: OTCQB: CLSH $1.29 $0.75 - $1.80 5,800 shares 20.25M 58% $25M CLS Holdings USA, Inc.
Slide 24: g&CLs
OTCQB: CLSH http://www.clsholdingsinc.com CLS Holdings USA, Inc. g&CLs CANNABIS LIFE SCIENCES ee Jeff Binder Da&rROWASSOCIATES __ INVESTOR RELATIONS AND CoRPORATE Communications Chief Executive Officer Peter Seltzberg 888-438-9132 516-510-8768 jeff@clsholdingsinc.com pseltzberg@darrowir.com
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