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www. cannabusinessplans.com
PRESENTER: 2017 January
Purpose: Do good for the People and Planet.
Cannabis Investor
Pitch Deck
1
Start-up Summary2
Project/Vision
3 Problem/Solution
4 Products & Services
5
6
Market Opportunities
7
Strategy
8
Production/Sales Forecast
Content
Team/Management
9 Financials
3
Project
Vision
4Project/Vision
CannaCult is a brand of medical dispensaries that will
provide an unparalleled patient shopping experience.
Beginning with our flagship store in City, patients will enjoy
shopping in a beautiful environment that inspires healing,
creativity and comfort.
Our knowledgeable budtenders will navigate and guide our
patients through our vast product variety featuring locally
sourced medicines along with our namesake core product
line of the highest quality medical cannabis flowers,
concentrates, edibles and more.
CannaCult Cannabis Dispensary will be located on one of the
busiest streets in City California. The facility is well positioned
and it matches the ideal picture of a community dispensary
store. Although the business is launching with just one outlet
in City, we have plans to open other outlets in key locations
all around California and the United States.
To align ourselves with investors and
partners who share our values.
To have the CannaCult brand become a trusted
household name nationally for high quality
cannabis products and stores.
To build our brand on the core values of
customer service and care, hospitality, highest
standards of quality, honesty, integrity and
community outreach.
MISSION
VISION
GOAL
5Financial Summary
0
5
10
15
20
25
Year 1 Year 2 Year 3 Year 4 Year 5
Million$
Revenue Net Income
0 5 10 15 20 25 30 35
Year 1
Year 2
Year 3
Year 4
Year 5
Million $
Cash Flow (ending period)
Majority of profits will be re-invested
in company development and
expansion.
The cash flow projections show that
business will have sufficient cash to
support the activity.
6Business Objectives
Getting the California
Cannabis Producer and
Retailer licenses
Net annual income
to support
operational expenses
Monthly sales
and capacity
increasing steadily
Become profitable by
the end of the
first year of operations
01 02
03 04
7
Start-up
Summary
8Start-Up Summary
$ 1,491,000
The cost to start-up our company
$ 820,000
Assets
$ 300,855 $ 370,145
Direct Costs Operating Costs
9Start-Up Assets & Use of Funds
Start-Up Assets Quarter 1
Building for cultivation $400,000
Light System $100,000
CO2 generators, A/C system,
other equipment for growing
$100,000
Dispensary space improvement,
hardware, shelving and others
$150,000
Security System $50,000
Computers and software $20,000
Total $820,000
Total Use of Funds $1,491,000
Use of Funds
Assets $820,000
Direct costs, cultivation $211,104
Direct costs, processing $0,000
Direct costs, vendors products $89,751
Operating expenses, first quarter $291,800
Salaries $78,345
Total $1,491.000
10
Products
Services
11Product & Services
Flowers
Company will have the ability to
vegetate up to 500 plants and
flowers concurrently, will grow
up to 11 different strains of
cannabis.
Description:
Concentrates
Strategic Partnership with
processors to process high-
quality cannabis
concentrates.
Description:
Vendors
Strategic Partnership with
manufactures to distribute their
cannabis products, including
devices and accessories.
Description:
12Target Customers
Our patients come from the most
diverse group ages, races and
socioeconomic backgrounds.
Ranging from young
professionals dealing with stress
and anxiety to patients of all
ages treating chronic and
terminal illnesses such as cancer,
epilepsy, HIV/AIDS, and beyond.
13
Market
Analysis
14Cannabis Legalization
28 states have
already legalized
cannabis
✓ The biggest driver of growth in
coming years is the legalization
of marijuana in some forms by
more states.
✓ In 2015, legal cannabis sales in
the U.S. reached $5.7 billion, a
23% jump from the year before.
✓ In 2016, legal cannabis sales in
the U.S. reached $6.7 billion, a
17.5% jump from the year before.
✓ It is predicted that sales will
further grow in 2017, reaching an
estimated $8.1 billion in total
U.S. sales.
15Market Growth
According to the 5th edition of Cannabis Market research, the overall market projection for legal adult-use and medical sales in the
U.S. will reach $22.6 billion by 2021. That brings the compound annual growth rate (CAGR) to 28%
0
3
6
9
12
15
2018
Billion$
Medical
Recreational
0
3
6
9
12
15
2019
0
3
6
9
12
15
2020
0
3
6
9
12
15
2021
57% 30% 19% 25%
16Target Market
California1
Washington3
2
Massachusetts4
15%
13%
42%
Share of
Cannabis
Market
2020
7%
Colorado
A new era for
cannabis extracts
Retail sales of concentrates in the medical and recreational
markets surged 125% in the last year from the same period
in 2015.
Edibles sales, meanwhile, rocketed 53%. Those gains far
outpace the 11% rise in sales of marijuana flower.
17SWOT Analyses
In California the weather conditions are ideal for cultivating cannabis outside
Diversification of greenhouse cultivation and outdoor cultivation
Greenhouses will allow significantly decrease electricity bills and increase
profit while competitive prices
STRENGTHS
Positive Negative
Internal
External
Strengths
S
Weaknesses
W
Threats
T
Opportunities
O
Product liability / legal issues
The limitation of the number of Producers and Retailers Licenses
Lack in professional workforce for a cannabis industry
Marketing and promotional Obstacles
WEAKNESSES
High growth industry
Trend toward greater cannabis legalization, including the use of cannabis for
recreational purposes
Global Market
OPPORTUNITIES
Enforcement of federal law, uncertainty
Possible California law changing
While the state of California sets broad guidelines for the industry, local
municipalities can set stricter guidelines and choose how they will be enforced
Indicators of a slowed global economy
THREATS
18
Marketing Strategy and
Implementation
19Marketing Strategy and Positioning
TARGET
MARKET
PRODUCTS
Our knowledgeable budtenders
will navigate and guide our
patients through our vast product
variety featuring locally sourced
medicines along with our
namesake core product line of the
highest quality medical cannabis
flowers, concentrates, edibles and
more
PLACE
San Francisco and San Francisco
Bay area have the highest
number of registered patients at
17,812 – roughly 30% of the
state’s total.
20
LOCATION
One of the busiest streets in City,
California. The facility is well
positioned and it matches the
ideal picture of a community
dispensary store.
PROMOTION
weedmaps.com
leafly.com
stickyguide.com
www.cannasaver.com
cannabiscouponcodes.com
weedealio.com
Marketing Strategy and Positioning
WEBSITE
Website development, Branding
appearance development,
including mission statement, logo,
colours, brochures etc. SEO
optimization.
21Marketing Strategy and Positioning
TECHNOLOGY
We have a CRM software that will
enable us manage a one-on-one
relationship with our patients no
matter how large our patient base
grows
TARGETED
CUSTOMER
ACQUISITION
Word of mouth / reputation.
Social media presence on Instagram, Snapchat,
and YouTube.
Online and offline campaigns beginning 6 months
into the first year.
22
Production
Sales Forecast
23Growing Forecast
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
Year 1 Year 2 Year 3
Indoor Outdoor
LBSCompany intends to mix outdoor cultivation from April to
October period and all around year greenhouse cultivation.
CannaCult will produce up to 2 strains within 5 months of
becoming a licensed cultivator. Company will have the
ability to vegetate up to 500 plants and flowers
concurrently, will grow up to 11 different strains of
marijuana, and will have the ability to grow from seedling
to finished product.
Company will use a Perpetual Harvest technique in which
growers utilize multiple grow tents/areas to ensure that
there are always plants in both the flowering stage and in
the vegetative stage.
24
Expenses Cut
Operating Needs
Sales Growth
Year 1: Sales of the vendors’ product
line to generate $0,000,000.
Year 2: Dispensary income from
$3,500-$7,000 a day for the first few
months with increasing to about
$20,000 a day within 1-2 years.
Cash will be retained in the business
to cover cash operating needs as
well as future expansion to meet the
demands.
After the first year of operations, it is
expected that CannaCult will be able
to trim expenses through realizing
business efficiencies, gaining
operational experience and industry
knowledge.
$000
Sales Forecast
-
5,000
10,000
15,000
20,000
25,000
Year 1 Year 2 Year 3
Accessories and others
Edibles, vendors
Concentrates (wax, shatter, and oil), vendors
Flower to sale, vendors
Concentrates (wax, shatter, and oil) to sale, own line
Flower to sale, own line
25
Team
Management
26
Cristopher Johnson
Company CEO
Confidential
Experience: 15 years
Confidential
Eva Smith
Company Co-Owner
Experience: 10 years
Management Team
Shean Collins
Company CEO
Confidential
Experience: 8 years
27Company Organization
Board
Head Cultivator Cultivators (4)
Trimmers/
Packagers
General Manager Assistant Manager (2)
Operational Director (2)
Security (4)
Receptionist (3)
Budtenders (6)Inventory Director
PR Director
28
Financial Plan
29Projected Profit and Loss
YEAR 1 YEAR 2 YEAR 3
Revenue 12,370,188 19,625,381 21,649,610
Direct Costs 5,570,631 8,452,381 9,150,987
Gross Profit 6,799,557 11,173,000 12,498,623
% of revenue 55% 57% 58%
Operating Expense
Initial & General Costs 150,000 35,000 35,000
Operating Expenses (cultivation business) 12,000 12,000 12,000
Operating Expenses (retail business) 402,000 402,000 402,000
Total Sales & Marketing Expenses 430,455 611,835 662,440
Total Senior Management Salaries & Benefits 280,000 280,000 280,000
Total IT Salaries & Benefits - - -
Total Other Salaries & Benefits - - -
Misc. 6,000 6,000 6,000
Total Operating Expense 1,280,455 1,346,835 1,397,440
Operating Income (EBITDA) 5,519,102 9,826,166 11,101,183
% of revenue 45% 50% 51%
Depreciation and Amortization 59,900 59,900 59,900
Earnings Before Interest & Taxes (EBIT) 5,459,202 9,766,266 11,041,283
Interest Expense - - -
Earnings Before Taxes (EBT) 5,459,202 9,766,266 11,041,283
Income Tax 2,183,681 3,906,506 4,416,513
Net Income 3,275,521 5,859,759 6,624,770
% of revenue 26% 30% 31%
30Projected Cash Flow
YEAR 1 YEAR 2 YEAR 3
Net Income 3,275,521 5,859,759 6,624,770
Cash Flow from Operations
Depreciation 59,900 59,900 59,900
Change in Receivables (514,692) (56,229) (56,229)
Change in Inventory - - -
Change in Accounts Payable - - -
Change in Accrued Expenses - - -
Total Cash Flow from Operations 2,820,729 5,863,431 6,628,441
Cash Flow from Investing
Capital Expenditures (CAPX) (599,000) - -
Other - - -
Total Cash Flow from Investing (599,000) - -
Cash Flow from Financing
Revolver Issuance / (Repayment) - - -
Long-Term Debt Issuance / (Repayment) - - -
New Equity Investments 1,491,000 - -
Dividends - - -
Total Cash Flow from Financing 1,491,000 - -
Total Change in Cash 3,712,729 5,863,431 6,628,441
Beginning Period Cash - 3,712,729 9,576,160
Ending Period Cash 3,712,729 9,576,160 16,204,601
31Ratio Analysis
Ratio Analysis Year 2 Year 3 Year 4 Year 5 Avg. (2-5 years)
Return on Equity 76.1% 47.5% 33.9% 25.3% 45.7%
Return on Assets
Return on Sales 29.9% 30.6% 30.9% 30.9% 30.6%
Asset turnover 2.55 1.55 1.10 0.82 1.50
Profitability
Gross margin 56.9% 57.7% 58.1% 58.1% 57.7%
SG&A as % of Sales 6.9% 6.5% 6.3% 6.3% 6.5%
Operating Margin 49.8% 51.0% 51.6% 51.6% 51.0%
Asset Turnover Ratios
Accounts Receivable Turnover 36.2 36.1 36.1 36.0 36.1
Fixed Asset Turnover 38.5 48.2 58.4 69.0 53.5

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Cannabis Investor Pitch deck template

  • 1. www. cannabusinessplans.com PRESENTER: 2017 January Purpose: Do good for the People and Planet. Cannabis Investor Pitch Deck
  • 2. 1 Start-up Summary2 Project/Vision 3 Problem/Solution 4 Products & Services 5 6 Market Opportunities 7 Strategy 8 Production/Sales Forecast Content Team/Management 9 Financials
  • 4. 4Project/Vision CannaCult is a brand of medical dispensaries that will provide an unparalleled patient shopping experience. Beginning with our flagship store in City, patients will enjoy shopping in a beautiful environment that inspires healing, creativity and comfort. Our knowledgeable budtenders will navigate and guide our patients through our vast product variety featuring locally sourced medicines along with our namesake core product line of the highest quality medical cannabis flowers, concentrates, edibles and more. CannaCult Cannabis Dispensary will be located on one of the busiest streets in City California. The facility is well positioned and it matches the ideal picture of a community dispensary store. Although the business is launching with just one outlet in City, we have plans to open other outlets in key locations all around California and the United States. To align ourselves with investors and partners who share our values. To have the CannaCult brand become a trusted household name nationally for high quality cannabis products and stores. To build our brand on the core values of customer service and care, hospitality, highest standards of quality, honesty, integrity and community outreach. MISSION VISION GOAL
  • 5. 5Financial Summary 0 5 10 15 20 25 Year 1 Year 2 Year 3 Year 4 Year 5 Million$ Revenue Net Income 0 5 10 15 20 25 30 35 Year 1 Year 2 Year 3 Year 4 Year 5 Million $ Cash Flow (ending period) Majority of profits will be re-invested in company development and expansion. The cash flow projections show that business will have sufficient cash to support the activity.
  • 6. 6Business Objectives Getting the California Cannabis Producer and Retailer licenses Net annual income to support operational expenses Monthly sales and capacity increasing steadily Become profitable by the end of the first year of operations 01 02 03 04
  • 8. 8Start-Up Summary $ 1,491,000 The cost to start-up our company $ 820,000 Assets $ 300,855 $ 370,145 Direct Costs Operating Costs
  • 9. 9Start-Up Assets & Use of Funds Start-Up Assets Quarter 1 Building for cultivation $400,000 Light System $100,000 CO2 generators, A/C system, other equipment for growing $100,000 Dispensary space improvement, hardware, shelving and others $150,000 Security System $50,000 Computers and software $20,000 Total $820,000 Total Use of Funds $1,491,000 Use of Funds Assets $820,000 Direct costs, cultivation $211,104 Direct costs, processing $0,000 Direct costs, vendors products $89,751 Operating expenses, first quarter $291,800 Salaries $78,345 Total $1,491.000
  • 11. 11Product & Services Flowers Company will have the ability to vegetate up to 500 plants and flowers concurrently, will grow up to 11 different strains of cannabis. Description: Concentrates Strategic Partnership with processors to process high- quality cannabis concentrates. Description: Vendors Strategic Partnership with manufactures to distribute their cannabis products, including devices and accessories. Description:
  • 12. 12Target Customers Our patients come from the most diverse group ages, races and socioeconomic backgrounds. Ranging from young professionals dealing with stress and anxiety to patients of all ages treating chronic and terminal illnesses such as cancer, epilepsy, HIV/AIDS, and beyond.
  • 14. 14Cannabis Legalization 28 states have already legalized cannabis ✓ The biggest driver of growth in coming years is the legalization of marijuana in some forms by more states. ✓ In 2015, legal cannabis sales in the U.S. reached $5.7 billion, a 23% jump from the year before. ✓ In 2016, legal cannabis sales in the U.S. reached $6.7 billion, a 17.5% jump from the year before. ✓ It is predicted that sales will further grow in 2017, reaching an estimated $8.1 billion in total U.S. sales.
  • 15. 15Market Growth According to the 5th edition of Cannabis Market research, the overall market projection for legal adult-use and medical sales in the U.S. will reach $22.6 billion by 2021. That brings the compound annual growth rate (CAGR) to 28% 0 3 6 9 12 15 2018 Billion$ Medical Recreational 0 3 6 9 12 15 2019 0 3 6 9 12 15 2020 0 3 6 9 12 15 2021 57% 30% 19% 25%
  • 16. 16Target Market California1 Washington3 2 Massachusetts4 15% 13% 42% Share of Cannabis Market 2020 7% Colorado A new era for cannabis extracts Retail sales of concentrates in the medical and recreational markets surged 125% in the last year from the same period in 2015. Edibles sales, meanwhile, rocketed 53%. Those gains far outpace the 11% rise in sales of marijuana flower.
  • 17. 17SWOT Analyses In California the weather conditions are ideal for cultivating cannabis outside Diversification of greenhouse cultivation and outdoor cultivation Greenhouses will allow significantly decrease electricity bills and increase profit while competitive prices STRENGTHS Positive Negative Internal External Strengths S Weaknesses W Threats T Opportunities O Product liability / legal issues The limitation of the number of Producers and Retailers Licenses Lack in professional workforce for a cannabis industry Marketing and promotional Obstacles WEAKNESSES High growth industry Trend toward greater cannabis legalization, including the use of cannabis for recreational purposes Global Market OPPORTUNITIES Enforcement of federal law, uncertainty Possible California law changing While the state of California sets broad guidelines for the industry, local municipalities can set stricter guidelines and choose how they will be enforced Indicators of a slowed global economy THREATS
  • 19. 19Marketing Strategy and Positioning TARGET MARKET PRODUCTS Our knowledgeable budtenders will navigate and guide our patients through our vast product variety featuring locally sourced medicines along with our namesake core product line of the highest quality medical cannabis flowers, concentrates, edibles and more PLACE San Francisco and San Francisco Bay area have the highest number of registered patients at 17,812 – roughly 30% of the state’s total.
  • 20. 20 LOCATION One of the busiest streets in City, California. The facility is well positioned and it matches the ideal picture of a community dispensary store. PROMOTION weedmaps.com leafly.com stickyguide.com www.cannasaver.com cannabiscouponcodes.com weedealio.com Marketing Strategy and Positioning WEBSITE Website development, Branding appearance development, including mission statement, logo, colours, brochures etc. SEO optimization.
  • 21. 21Marketing Strategy and Positioning TECHNOLOGY We have a CRM software that will enable us manage a one-on-one relationship with our patients no matter how large our patient base grows TARGETED CUSTOMER ACQUISITION Word of mouth / reputation. Social media presence on Instagram, Snapchat, and YouTube. Online and offline campaigns beginning 6 months into the first year.
  • 23. 23Growing Forecast 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 Year 1 Year 2 Year 3 Indoor Outdoor LBSCompany intends to mix outdoor cultivation from April to October period and all around year greenhouse cultivation. CannaCult will produce up to 2 strains within 5 months of becoming a licensed cultivator. Company will have the ability to vegetate up to 500 plants and flowers concurrently, will grow up to 11 different strains of marijuana, and will have the ability to grow from seedling to finished product. Company will use a Perpetual Harvest technique in which growers utilize multiple grow tents/areas to ensure that there are always plants in both the flowering stage and in the vegetative stage.
  • 24. 24 Expenses Cut Operating Needs Sales Growth Year 1: Sales of the vendors’ product line to generate $0,000,000. Year 2: Dispensary income from $3,500-$7,000 a day for the first few months with increasing to about $20,000 a day within 1-2 years. Cash will be retained in the business to cover cash operating needs as well as future expansion to meet the demands. After the first year of operations, it is expected that CannaCult will be able to trim expenses through realizing business efficiencies, gaining operational experience and industry knowledge. $000 Sales Forecast - 5,000 10,000 15,000 20,000 25,000 Year 1 Year 2 Year 3 Accessories and others Edibles, vendors Concentrates (wax, shatter, and oil), vendors Flower to sale, vendors Concentrates (wax, shatter, and oil) to sale, own line Flower to sale, own line
  • 26. 26 Cristopher Johnson Company CEO Confidential Experience: 15 years Confidential Eva Smith Company Co-Owner Experience: 10 years Management Team Shean Collins Company CEO Confidential Experience: 8 years
  • 27. 27Company Organization Board Head Cultivator Cultivators (4) Trimmers/ Packagers General Manager Assistant Manager (2) Operational Director (2) Security (4) Receptionist (3) Budtenders (6)Inventory Director PR Director
  • 29. 29Projected Profit and Loss YEAR 1 YEAR 2 YEAR 3 Revenue 12,370,188 19,625,381 21,649,610 Direct Costs 5,570,631 8,452,381 9,150,987 Gross Profit 6,799,557 11,173,000 12,498,623 % of revenue 55% 57% 58% Operating Expense Initial & General Costs 150,000 35,000 35,000 Operating Expenses (cultivation business) 12,000 12,000 12,000 Operating Expenses (retail business) 402,000 402,000 402,000 Total Sales & Marketing Expenses 430,455 611,835 662,440 Total Senior Management Salaries & Benefits 280,000 280,000 280,000 Total IT Salaries & Benefits - - - Total Other Salaries & Benefits - - - Misc. 6,000 6,000 6,000 Total Operating Expense 1,280,455 1,346,835 1,397,440 Operating Income (EBITDA) 5,519,102 9,826,166 11,101,183 % of revenue 45% 50% 51% Depreciation and Amortization 59,900 59,900 59,900 Earnings Before Interest & Taxes (EBIT) 5,459,202 9,766,266 11,041,283 Interest Expense - - - Earnings Before Taxes (EBT) 5,459,202 9,766,266 11,041,283 Income Tax 2,183,681 3,906,506 4,416,513 Net Income 3,275,521 5,859,759 6,624,770 % of revenue 26% 30% 31%
  • 30. 30Projected Cash Flow YEAR 1 YEAR 2 YEAR 3 Net Income 3,275,521 5,859,759 6,624,770 Cash Flow from Operations Depreciation 59,900 59,900 59,900 Change in Receivables (514,692) (56,229) (56,229) Change in Inventory - - - Change in Accounts Payable - - - Change in Accrued Expenses - - - Total Cash Flow from Operations 2,820,729 5,863,431 6,628,441 Cash Flow from Investing Capital Expenditures (CAPX) (599,000) - - Other - - - Total Cash Flow from Investing (599,000) - - Cash Flow from Financing Revolver Issuance / (Repayment) - - - Long-Term Debt Issuance / (Repayment) - - - New Equity Investments 1,491,000 - - Dividends - - - Total Cash Flow from Financing 1,491,000 - - Total Change in Cash 3,712,729 5,863,431 6,628,441 Beginning Period Cash - 3,712,729 9,576,160 Ending Period Cash 3,712,729 9,576,160 16,204,601
  • 31. 31Ratio Analysis Ratio Analysis Year 2 Year 3 Year 4 Year 5 Avg. (2-5 years) Return on Equity 76.1% 47.5% 33.9% 25.3% 45.7% Return on Assets Return on Sales 29.9% 30.6% 30.9% 30.9% 30.6% Asset turnover 2.55 1.55 1.10 0.82 1.50 Profitability Gross margin 56.9% 57.7% 58.1% 58.1% 57.7% SG&A as % of Sales 6.9% 6.5% 6.3% 6.3% 6.5% Operating Margin 49.8% 51.0% 51.6% 51.6% 51.0% Asset Turnover Ratios Accounts Receivable Turnover 36.2 36.1 36.1 36.0 36.1 Fixed Asset Turnover 38.5 48.2 58.4 69.0 53.5