Growgeneration Corp. · NASDAQ:GRWG
Growgeneration — Investor Presentation (April 2017)
13 slides from Growgeneration's investor presentation, Apr 19, 2017
Slide 1: Investor Presentation April 2017
OTCQB: GRWG 1 Investor Presentation April 2017 OTCQB: GRWG
Slide 2: Safe Harbor Statement
OTCQB: GRWG 2 Safe Harbor Statement This presentation is being provided for information purposes only and does not constitute an offer to sell or a solicitation of an offer to purchase any of the Company’s securities . This presentation is not intended, nor should it be distributed, for advertising
Slide 3: Investment Considerations
OTCQB: GRWG 3 Investment Considerations • Established, specialty retail presence focused on “picks and shovels” of cultivation equipment & supplies, located in close proximity to commercial growers • U.S. cannabis market is expected to reach $23B by 2020 (1) • Strong year - over - year growth – FY20
Slide 4: Return on Invested Capital / Capital Structure
OTCQB: GRWG 4 Return on Invested Capital 12 stores ,across 3 markets, CO, CA, NV. Capital raised to date has driven exponential revenue growth and strong balance sheet Stock Price 1 $2.05 Shares Outstanding 1 13.55M Warrants Outstanding 1 4.2M Stock Options Outstanding 2 1.9M Equity Market Cap 1 $27
Slide 5: Market Overview
OTCQB: GRWG 5 Market Overview • Commercial cultivation is exploding • Global hydroponic sales projected to exceed $30B by 2020 • Highly fragmented retail space – >1,000 existing hydroponic stores – Smaller players struggling to compete as commercial market expands • ~7,000 licensed commercial grower
Slide 6: Key Financial Metrics
OTCQB: GRWG 6 Key Financial Metrics Attractive business profile for increasing shareholder value Gross Margin ~30% - 35% 27.6% Target 2016 Capital Turnover 3X $ Each $1M in capital drives ~$3M in annual revenue Commercial Cannabis Grower 15 - 20% of total sales will be invested in hydroponic and anc
Slide 7: One-Stop-Shop
OTCQB: GRWG 7 One - Stop - Shop Enabling large, commercial growers to source equipment and supply needs from one supplier Lighting Fans Bench systems Soil Pots Trellis Nutrients On-going supplies ~$200K 1 st Year Revenue for GrowGen 30% of initial Buildout goes to monthly recurring supplies includin
Slide 8: Growth Strategy: National Expansion
OTCQB: GRWG 8 Growth Strategy: National Expansion Growth to be fueled by both new store openings and acquisitions Alabama Arizona Arkansas California (1) Colorado (10) Florida Georgia Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Massachusetts Michigan Minnesota Mississippi Missouri Mo
Slide 9: Growth Strategy: Acquisition Pipeline
OTCQB: GRWG 9 Growth Strategy: Acquisition Pipeline Targeting acquisitions with $1M to $5M in annual revenue that are a STRATEGIC fit based on location, customer list and opportunity to grow quickly • Fragmented and target - rich landscape • Actively considering several targets with ~$1M - $5M in an
Slide 10: GrowGeneration Home Corp.
OTCQB: GRWG 10 GrowGeneration Home Corp. Growing for a Healthy Lifestyle Clean Food - Clean Air - Clean Medicine • GrowGeneration Home Corp., a wholly - owned subsidiary ,sales channel exclusively targeting the home indoor gardening marketplace • Selling an array of indoor gardening appliances and p
Slide 11: Growth Strategy: Online/Social Media
OTCQB: GRWG 11 Growth Strategy: Online/Social Media • Near - term enhancements include online functionality for growers to access commercial pricing - Q2 launch • Growing social media presence with more than 1,000 Instagram followers and 3,500 Facebook “likes” • Creating the searchable inventory of
Slide 12: Leadership and Strategic Investors
OTCQB: GRWG 12 Leadership and Strategic Investors Strategic Investors Board of Directors and Executive Management Darren Lampert CEO Director Steven Aiello Director Jody Kane Director Merida Capital Partners Robert Yosatis Michael Salaman President Director ‒ Founding member of law firm Lampert & La
Slide 13: Contacts
OTCQB: GRWG 13 Contacts Company Contact Darren Lampert , Chief Executive Officer GrowGeneration Corp., Denver, CO Tel 800.935.8420 | [email protected] Investor Relations Brett Maas , Managing Partner Hayden IR Tel 646.536.7331 | [email protected]