Chill Brands Group PLC · LSE:CHLL

Chill Brands — Zoetic International — Investor Presentation (February 2020)

22 slides from Chill Brands's investor presentation, February 2020

  1. Slide 1: Overview of Zoetic International plc

    Overview of Zoetic International plc February 2020

  2. Slide 2: Overview of Zoetic International plc

    Overview of Zoetic International plc •33,000 square foot indoor •16 acres outdoors facility •Sufficient production for •Bespoke built for cannabis own products and / hemp wholesale •Total control over climate •Chemical free / “organic” and environment farming methods •53 acre site Seed Outdoor genet

  3. Slide 3: From seed to shelf

    From seed to shelf Vertically integrated hemp genetics, growing, manufacturing and products Growing & Manufacturing Two Retail Brands – Genetics – Feminised Seeds Operations Zoetic & Chill Higher margin Middle ground becoming Higher margin increasingly commoditised Building a transparent and trusted

  4. Slide 4: The rise of CBD

    The rise of CBD • Sales of CBD in the US are Japan 14 86 forecast to surpass $23bn by 2023 (Brightfield Group) France 23 77 • 6m people in the UK are using, or have used, CBD Germany 38 62 products (Times) • More popular than Vitamin Greece 44 56 C and Vitamin D in the UK Switzerland 60 40 • UK mark

  5. Slide 5: Main reasons for regular use of CBD

    Main reasons for regular use of CBD Pain Anxiety Stress Improve Health Sleep Prevention Skin Condition Other 0 5 10 15 20 25 30 35 40 45 50 Stress Anxiety Pain 0 20 40 60 80 100 0 20 40 60 80 100 Female Male 35 and older Under 35 5 Source: CBD-Intel, 2019

  6. Slide 6: Feminised seed production

    Feminised seed production Only feminised hemp seeds produce a commercial yield 33,000 sq ft state of the art indoor grow facility with capacity for up to 10,000 hemp plants at least 3 times per annum Bespoke built for cannabis / hemp plants Vast amounts of Ability to control climate and environment

  7. Slide 7: Outdoor growth

    Outdoor growth 16 acres in Palisade, Western Colorado Around 2,500 plants per acre Strictly organic farming methods only – no chemical pesticides or herbicides Vast amounts of Harvested in September / October 2019 yield-enhancing Plants dried and Zoetic intends to process them for our own use and /

  8. Slide 8: US retail

    US retail • Tobacco alternative products ➢ Smokables – herbal cigarettes infused with CBD – 3 blends ➢ Chew pouches – mint, vanilla & peach flavoured • All products are tobacco-free, nicotine-free and THC-free • Currently selling in convenience stores in the US ➢ Original distribution via Schrader O

  9. Slide 9: UK retail

    UK retail • Commenced sales in August 2019 via www.zoetic.uk.com ➢ Since expended to 19 product lines, including tinctures, softgels, massage oil, skincare products and, most recently, CBD gummies • All products are THC-free (0.0%) and many of our products are manufactured with a higher CBD content

  10. Slide 10: Developing sales channels

    Developing sales channels Online retail www.zoetic.uk.com www.thechillway.com Social media Instagram and Twitter Specialist distribution LeafyQuick stocking products in Chicago The CBD Warehouse recently began stocking full UK range Affiliate marketing programmes in UK and US Retail stores Convenien

  11. Slide 11: Summary

    Summary • Rapid growth of CBD industry in US and Europe ➢ Zoetic is the only vertically integrated CBD company listed on the London Stock Exchange ➢ Shares also trade on the OTC in New York • Two key revenue streams ➢ Sale of feminised seeds – will commence when sufficient quantities are in stock ➢

  12. Slide 12: Appendices

    Appendices ie, Wat NZ Oe: wicy/

  13. Slide 13: Awareness of CBD by gender

    Awareness of CBD by gender Japan 59 41 France 52 48 Germany 48 52 Greece 55 45 Switzerland 50 50 UK 46 54 US 48 52 0 10 20 30 40 50 60 70 80 90 100 Male Female 13 Source: CBD-Intel, 2019

  14. Slide 14: Use of CBD by gender

    Use of CBD by gender Japan 55 45 France 55 45 Germany 45 55 Greece 45 55 Switzerland 51 49 UK 40 60 US 47 53 0 10 20 30 40 50 60 70 80 90 100 Male Female 14 Source: CBD-Intel, 2019

  15. Slide 15: Use of CBD by age

    Use of CBD by age Japan 71 29 France 75 25 Germany 50 50 Greece 50 50 Switzerland 48 52 UK 46 54 US 58 42 0 10 20 30 40 50 60 70 80 90 100 18-44 45+ 15 Source: CBD-Intel, 2019

  16. Slide 16: Product types regularly consumed

    Product types regularly consumed 60 50 40 30 20 10 0 Oil/Tinctures E-Liquid Capsules Edibles Topicals Flower Crystals 16 Source: CBD-Intel, 2019

  17. Slide 17: Product categories stocked online

    Product categories stocked online Oil E-Liquid Topicals Capsules Edibles (Gummies/Candies/Etc.) Soft Drinks/Soda Paste Smokeable Extracts Crystals Tea Pet Products Flower Coffee Water Lubricant Suppositories Wine Powder Supplements 0 10 20 30 40 50 60 70 80 90 100 17 Source: CBD-Intel, 2019

  18. Slide 18: Brand awareness

    Brand awareness 18 Source: CBD-Intel, 2019

  19. Slide 19: Importance of product attributes

    Importance of product attributes UK made Terpene profiles Organic Lab Reports Price Trustworth retailer 0 20 40 60 80 100 120 Absolutely essential Very important Of average importance Of little importance Not important at all 19 Source: CBD-Intel, 2019

  20. Slide 20: Natural resources operations

    Natural resources operations Colorado Shale Kansas Gas Resource Recovery of funds • 2 shale oil and gas projects with • First well capable of producing 2,500 • $270,000 lodged with US states due potential for additional projects Mcfpd of hydrogen-nitrogen gas back during 2020, with $50,000 due • 7.5

  21. Slide 21: Board and senior management

    Board and senior management Nick Tulloch Paul Mendell Eric Anderson Trevor Taylor Antonio Russo Chief Executive Chairman Senior Vice President CSO CRO • 20 years’ investment • Discovered Kansas • A third generation • Former CEO of • Previously banking experience, Gas Resource Landman, Eric District

  22. Slide 22: Disclaimer

    Disclaimer This presentation, which has been prepared by Highlands Natural Resources plc (the “Company”), has not been approved in any jurisdiction by a securities regulator or person authorised under applicable financial services legislation and does not constitute or form part of any offer for sal

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