Flower One Holdings, Inc. · OTC:FLOOF
Flower One — Investor Presentation (March 2021)
35 slides from Flower One's investor presentation, March 2021
Slide 1: Investor Presentation
INVESTOR PRESENTATION CSE: FONE OTCQX: FLOOF FSE: F11 MARCH 2021
Slide 2: Disclaimer
Disclaimer Statements in this presentation that are not statements of historical or current fact constitute "forward-looking information" within the meaning of Canadian securities laws and "forward-looking statements" within the meaning of United States securities laws (collectively, "forward-lookin
Slide 3: Brands built from the heart (Howard Schultz quote)
In this ever-changing society, the most powerful and enduring brands are built from the heart. They are real and sustainable. Their foundations are stronger because they are built with the strength of the human spirit, not an ad campaign. . The companies that are lasting are those that are authentic
Slide 4: Let's grow cannabis together
Let’s grow cannabis together. 4
Slide 5: Flagship facility in Nevada: watch the video
Our flagship facility in Nevada is one of the top yielding facilities in North America. Flower One has built an industry-leading team focused on becoming the first national high-quality, low-cost brand fulfillment partner in cannabis. Watch the video 4
Slide 6: U.S. Cannabis Opportunity
U.S. Cannabis Opportunity BEER WINE & SPIRITS COFFEE CANNABIS $100B+ $150B+ $85B+ $15B+* 25% Penetration 20% Penetration 50% Penetration 14% Penetration Source: Market size and penetration rates based on 2019 figures from | Brewers Association (beer), Statista (wine and spirits), Specialty Coffee As
Slide 7: Cannabis Legalization Highlights
Cannabis Legalization Highlights 2012 2016 2018 2020 2021 Colorado and Washington Recreational cannabis The 2018 Farm Bill The House of Following the 2020 election, become first two states to becomes legalized in Nevada, legalizes low-THC hemp Representatives passes the there are now 15 states with
Slide 8: About Flower One
About Flower One GREENHOUSE FACILITY PRODUCTION FACILITY 400K 55K 25K 16+ Square Feet Square Feet Square Feet Brand Partners Flagship greenhouse, Nevada’s Capability to process over 1,000 Current indoor cultivation and And counting with industry largest and among North pounds of bulk and branded flo
Slide 9: Industry-Leading Brand Partners
Industry-Leading Brand Partners * * In-house brand 9
Slide 10: Why Nevada?
Why Nevada? Nevada Retail Cannabis Sales Flower One serves the entire Nevada market, 2020* including tourists near Nevada Market Stats 2019 the Las Vegas Strip and 2018 local consumers • Flower One has the only large-scale throughout Nevada greenhouse in Nevada $730M • Limited licensing structure $5
Slide 11: Strategic Expansion
Strategic Expansion States with Legal Medical States with Legal & Recreational Cannabis Medical Cannabis Key Factors • Total number of licenses vs. total addressable market sizes • Competitive cultivation landscape (greenhouse, outdoor, etc.) • Wholesale & retail regulatory landscape • Current inven
Slide 12: The Next State
The Next State Enterprise Valuation by Number of States Additional Markets Typically Accelerates Valuation Multiples* 25 Flower One is well positioned to replicate its model as the industry’s leading seed-to-shelf 21.3 provider (cultivation, manufacturing and 20 distribution) 16.2 4.3 15 Deciding Fa
Slide 13: Development Timeline
Development Timeline Start of Construction Fully Canopied First Harvest Production / Extraction Lab Completed MAY 2018 MAY 2019 SEPTEMBER 2019 FEBRUARY 2019 AUGUST 2019 First Crop Planted First Licensed Sale out of Greenhouse 13
Slide 14: Brand Performance Highlights
Brand Performance Highlights Flower One Announces Old Pal Recognized as Successful Cookies Launch Lift Tickets & 22Red Launch Partnership with Cookies, Top Selling Flower & Announcement of Nature’s Lab Extracts Q2 2020 Old Pal & Kiva Based on Total Units Sold Cookies Las Vegas Store Launch Q3 2019 Q
Slide 15: Cultivation
Cultivation Image: June 2019 100K+ lbs $0.69 25+ 150 Potential annual Average cash cost / gram Years of large scale Cannabis strains production capacity As of Q3 2020* greenhouse excellence Cas *Cash cost per harvested gram has historically been reported between $0.40-$0.49, prior to Q2-20 15
Slide 16: Extraction, Manufacturing & Production
Extraction, Manufacturing & Production Multiple Premium Capabilities Products 500kg+ 1,800 Liters 100+ Ethanol, LPG and CO2 Diverse product offerings, Hydrocarbon cannabis Commercial scale distillation SKUs emerging from contract manufacturing, extraction annually capacity; throughput Production Fac
Slide 17: Distribution, Sales & Marketing
Distribution, Sales & Marketing Leading Brand Established Retail Localized Sales Just-In-Time Portfolio Partnerships & Marketing Experts Delivery Top selling brands from 90%+ Dispensary Launch campaigns, Dispensaries preserve California and beyond Penetration in-store activations working capital and
Slide 18: Revenue Performance
Revenue Performance Reported Actual Highest Recorded Quarterly Revenue of $11.9M $12,000,000 $11,000,000 Record Monthly Sales $10,000,000 in March of $3.9M $9,000,000 Launch of $8,000,000 Production Lab Revenues Improved $7,000,000 128% from Prior Revenue Ahead of Quarter Company Guidance $6,000,000
Slide 19: Restructuring Highlights
Restructuring Highlights January 2021 February 2021 March 2021 • First Tranche Closed of Convertible Debenture • Implemented Various Automation Measures that • Announced Proposed Convertible Debenture Financing (USD$10.1M) Increased Productivity and Further Cut Labor Restructuring Transaction with M
Slide 20: Our New Leadership Team
Our New Leadership Team Kellen O’Keefe Richard Groberg Salpy Boyajian President & Interim CEO Interim Chief Financial Officer Executive Vice President Leveraging over a decade of cannabis industry Accomplished financial executive with a Founder of NLV Organics, one of Nevada’s experience and a demon
Slide 21: Our New Board of Directors
Our New Board of Directors Mitchell Kahn* Eliza Gairard* Nitin Kaushal* Kellen O’Keefe** Salpy Boyajian** Mr. Kahn brings with him more than Mrs. Gairard is a Partner at Richmond Mr. Kaushal has spent the past eight Mr. O’Keefe has over a decade of Ms. Boyajian officially joined Flower 20 years of s
Slide 22: Appendix
Appendix 22
Slide 23: Cookies
Cookies Cookies is one of the most well recognized and top-selling cannabis brands in the world. Cookies was founded in the Bay Area of Northern California in 2012 by Berner, the prolific rapper and entrepreneur, and his partner Jai, a well-respected Bay Area cultivator and breeder. Cookies is now g
Slide 24: Kiva
Kiva Kiva was founded in 2010 with a clear mission – change how the world views and uses cannabis. Frustrated by the inconsistent, low-quality edibles available at the time, a young couple began making chocolate bars out of their Bay Area, CA home kitchen. Today, their award- winning edibles are the
Slide 25: NLVO | Flower One's In-House Brand
NLVO | Flower One’s In-House Brand NLVO is a premium cannabis brand co-founded in 2016 by Salpy Boyajian, Flower One’s Executive Vice President and Chairwoman of the Board and Shatony Sargeant, Flower One’s Director of Client Services. NLVO elevates the senses with premium connoisseur quality cannab
Slide 26: Old Pal
Old Pal Old Pal, a popular lifestyle cannabis brand out of California, is the lowest cost provider of legal cannabis in its home state and in Nevada. With the value-oriented segment of the market in mind, Old Pal’s suite of products include primarily pure, dried flower available in three varieties:
Slide 27: 22Red
22Red Founded by Grammy award-winning and multi-platinum recording artist, Shavo Odadjian, System Of A Down‘s bassist, 22Red is a premier Southern California cannabis brand, known for its brand authenticity and proprietary genetics. 22Red’s entire product line is available for purchase in Nevada, in
Slide 28: Heavy Hitters
Heavy Hitters Since originating in Southern California during the cannabis renaissance of the late 90’s, Heavy Hitters has been the connoisseur’s choice for the highest quality cannabis. Ultra Pure, Ultra Potent. A better experience starts with a premium product, continues with an innovative and exc
Slide 29: Lift Tickets
Lift Tickets Lift Tickets was founded in 2014 by cannabis enthusiasts and connoisseurs looking to elevate the consumer experience and revolutionize the pre-roll category. Passionate strain hunters and aficionados, they developed their unique skills over the last decade, creating several award winnin
Slide 30: The Clear
The Clear Clear Cannabis Inc. is the Denver-based parent company of The ClearTM. Founded in 2013, The Clear has established itself as the first and original cannabis distillation company. Featuring a robust menu of 17 flavorful vape cartridges, among other high-quality products, The Clear utilizes s
Slide 31: Nature's Lab Extracts
Nature’s Lab Extracts Nature’s Lab Extracts is a high-end cannabis extraction company that offers premium quality products. Natures’s Lab Extract first gained their reputation for leading the market in producing the world’s finest “Sauce” a cannabis product that is 50/50 blend of THC-A Crystalline a
Slide 32: Huxton
Huxton HUXTON, is an Arizona-based lifestyle cannabis brand known for their curated, consistent, multi- strain blended flower. Each of HUXTON’s three product series (HIFI, RISE, and ZEN) comprises a hand-selected variety of cannabis genetics that unite full terpene, cannabinoid, and trichrome profil
Slide 33: CannAmerica
CannAmerica CannAmerica Brands is a Colorado-based, marine-veteran-founded cannabis brand known for its line of top-tier cannabis gummies and edibles. New variations of CannAmerica Brands’ best selling Fruit Juice Gummies and Super Soft Gummies products will be available for purchase in the state of
Slide 34: Palms
Palms Palms Premium is a California-based, experience-driven cannabis brand known for high-quality pre-rolls that offer consumers a thoughtful and consistent cannabis experience. Their products lines such as ‘Social’ and ‘Chill’, ensures that consumers are able to find a product that speaks to their
Slide 35: Let's grow cannabis together
Let’s grow cannabis together. Kellen O’Keefe, President & Interim CEO Richard Groberg, Interim Chief Financial Officer E [email protected] E [email protected] Investor Inquiries Media Inquiries E [email protected] E [email protected]
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