Cannabis Investor cannabusinessplans.

com

Pitch Deck PRESENTER: 2018 Month

Purpose: Do good for the People and Planet.

Content

1 Executive Summary 6 Strategy

2 Project/Vision 7 Production/Sales Forecast

3 Start-up Summary 8 Team/Management

4 Products & Services 9 Financials

5 Market Opportunities
 3

Executive
Summary
New Business Introduction 4

MISSION
CANNACULT is a new company in the California
To build our brand on the core values of
medical/recreational cannabis industry, will have the
customer service and care, hospitality,
ability to vegetate up to 1,000 plants and flowers
highest standards of quality, honesty,
concurrently.
integrity and community outreach.
CANNACULT is also dedicated to creating cannabis
extractions, concentrates and topical products to TECHNOLOGY
service the exploding concentrates industry. Own and operate cannabis cultivation and
manufacturing facilities in the state of
CannaCult is a brand of medical dispensaries that will
California. Utilize cutting edge and
provide an unparalleled patient shopping experience.
proprietary growing and extraction
Beginning with our flagship store in City, patients will
processes.
enjoy shopping in a beautiful environment that inspires
healing, creativity and comfort.
PRODUCTS
Our knowledgeable budtenders will navigate and guide Produce and sell the highest-quality
our patients through our vast product variety featuring products.
locally sourced medicines along with our namesake
core product line of the highest quality medical
cannabis flowers, concentrates, edibles and more.
Technology Supercritical C02 Extraction 5

Supercritical C02 Pounds Processed

Extraction
24
Run Time (Minutes) 480
Changeover/Prep (Minutes) 30 21
Time Window (Hours) 24
18
Capacity (Litres) 100

Hours
CO2
Biomass Per Run (Pounds) 50 15
Biomass within Window (Pounds) 141
Yield within Window (Tons) 0.07 12

Oil Yield (Pounds) 21

9
Pounds Per Acre 625
Acres Processed in Window 0.23 0 50 100 150 200
Pounds
 Financial Summary 6

$1,600 $0 $100 $200 $300 $400

Thousands

$1,400
$1,200 Year 5
$1,000
$800 Year 4

$600
Year 3
$400
$200
Year 2
$0
-$200
Year 1
Year 1 Year 2 Year 3 Year 4 Year 5

Revenue Net Income Cash Flow (ending period)

Majority of profits will be re-invested The cash flow projections show

in company development and that business will have sufficient
expansion. cash to support the activity.
 7

Project Vision
Mission Statement 8

To provide high-quality cannabis

products to the qualified customers

Main Goals:
A. To grow one of the best cannabis.
B. To produce high-grade cannabis bulk oil, and build a
recognizable brand in a rapidly growing industry.
C. To be fully compliant with all state and local
municipalities and be primed and ready for national
expansion as federal laws adjust and evolve to the
benefit of the cannabis industry.
D.To have the CannaCult brand become a trusted
household name nationally for high quality cannabis
products and stores.
E. To align ourselves with investors and partners who
share our values.
Business Objectives
01
Getting the California Cannabis
Grower and Manufacture licenses
Own and operate a cannabis cultivation
facilities in the state of California.
Lookout for ways to improve our
processes and maximize our returns on
the cannabis plants we use.
03
Net annual income to support
operational expenses
Maintaining exemplary production
standards and becoming a leading
supplier of extracts.Focusing on
producing unique, high quality, cannabis-
concentrate medication
9
02
Getting the California
Cannabis Retailer license
To build our brand on the core values of
customer service and care, hospitality,
highest standards of quality, honesty,
integrity and community outreach.
04
To provide high quality cannabis customers
with a product and service they can trust
To build our brand on the core values
of customer service and care,
hospitality, highest standards of
quality, honesty, integrity and
community outreach.
 10

Start-up
Summary
Start-Up Summary 11

$ 0,000,000
The cost to start-up our company

$ 0,000,000 $ 000,000 $ 000,000

Assets Direct Costs Operating Costs
Start-Up Assets & Use of Funds 12

Start-Up Assets Quarter 1 Use of Funds

Building for cultivation $000,000 Assets $0,000,000
Light System, CO2 generators,
Direct costs, cultivation $000,000
A/C system, other equipment for $000,000
growing Direct costs, processing &
$000,000
manufacturing
Extraction equipment $000,000
Operating expenses, first 6
$000,000
months
Manufacturing equipment $000,000
Salaries $000,000
Other equipment $000,000

Building for equipment $000,000

Dispensary Building and
$000,000 Total Use of Funds $0,000,000
Equipment
Security System $00,000

Total $0,000,000
 13

Products
Services
Product & Services 14

Flowers Concentrates Vendors

Description: Description: Description:

Company will have the
ability to vegetate up to
1,000 plants and flowers
concurrently, will grow up
to 11 different strains of
cannabis.
Company will produce Strategic Partnership with
and sell cannabis manufactures to distribute
concentrates, edibles their cannabis products,
and topicals as own including devices and
product line in the accessories.
dispensary.
Target Customers 15

Our customers 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.
 16

Market
Analysis
Cannabis Legalization 17

30 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.
 Legal cannabis sales reached almost $10
billion in 2017. That represents an
unprecedented 33% increase over 2016.
 Market Growth 18

38% 28% 22% 18%

15 15 15 15
Medical
12 12 12 12
Recreational
9 9 9 9
Billion $

6 6 6 6

3 3 3 3

0 0 0 0
2018 2019 2020 2021

Report from cannabis industry analysts Arcview Market Research, in partnership with BDS Analytics predicts the
entire legal cannabis market to reach $24.5 billion in sales – a 28% annual growth rate by 2021 – as more states
legalize cannabis for recreational use and existing markets mature.
 U.S. Cannabis Retail Sales 19

The increase in retail sales over the next five years will To get another idea of just how big the marijuana
provide a substantial economic boost for the United industry has become, look to employment numbers.
States. The total economic output from legal cannabis The industry employed 121,000 people in 2017. If
will grow 150% from $16 billion in 2017 to $40 billion by cannabis continues its growth trajectory, the number of
2021, according to the “US Legal Cannabis: Driving $40 workers in that field could reach 292,000 by 2021,
Billion Economic Output” report. according to BDS Analytics.

20 45.0
40.0
Massage Therapists
15 35.0
30.0 Bakers Number of
25.0 Employees
billion $

10 Dental Hygenists
20.0
15.0 Telemarketers
5 10.0
Cannabis Industry
5.0

0 - Pharmacists
2016 2017 2018 2019 2020 2021
Dispensary/Store Sales
0 100,000 200,000 300,000
Additional Economic Impact of Dispensary/Store Sales

Copyright 2018 Arcview Market Research in partnership with BDS Analytics. All rights reserved Source: U.S. Bureau Of Labor Statistics Employment Projections: 2014-2024
California Market 20

Sales in California represent about 34 percent of legal sales

in the United States
$2,000

Millions
In March of 2017, BDS Analytics began tracking and $1,800
reporting dispensary sales trends for California’s
$1,600
cannabis industry. Between March and October of
$1,400
2017, total sales through dispensary and delivery
services across the most populous state in the $1,200

country reached $1.856 billion. $1,000

According to a study by the University of California $800

Agricultural Issues Center, California’s recreational $600
cannabis market could be worth more than $5
$400
billion. While recreational cannabis market is
$200
expected to grow, medical cannabis sales are
expected to decline down to $600 million as people $0
CA CO OR WA
migrate toward the adult-use market to avoid
March - October 2017 Cannabis Sales by State
medical cannabis ID fees.
Target Market 21

A new era for

cannabis extracts
10%
Californians spend most of their dollars (53 percent)
on flower. Concentrates, the next largest slice of the 12%
cannabis pie, captures 25 percent of the market.
Edibles, with 12 percent, come in third. Pre-rolled
joints grab 5 percent of the market, and non-THC Californian 53%
items like apparel and devices represent much Market
smaller slivers of the marketplace.
25%
1 Flowers 3 Edibles

2 Concentrates 4 Pre-rolled and other

California Concentrates Market 22

Companies will need to clearly

communicate their value proposition
180%
160% Concentrates and edibles are the fastest growing
159%
category in the cannabis industry, proving
140%
extremely popular with recreational consumers
120%
and medical patients alike. While flower still
100% 98% accounts for the majority of retail sales,
80% 78% concentrates and edibles continue to eat into
60% flower’s share of the market with each passing
54%
40% year.
20% 23% In 2017, the contribution of sales from flower
19% 19%
dropped to less than 50 percent in Colorado’s
0%
2014 2015 2016 2017 2018 2019 2020 cannabis industry.
Like Colorado, California will likely see flower’s
% Growth in annual concentrates sales in California
contribution to total revenue dip below 50
percent in 2018.
 SWOT Analyses 23

STRENGTHS
Well-equipped rooms can run produce the year-round harvests.
Diversification of business – cultivation, extraction, processing,
manufacturing and retail
Positive Negative
WEAKNESSES
Product liability / legal issues
The limitation of the number of Licenses
Strengths Weaknesses
Lack in professional workforce for a cannabis industry
Internal
Marketing and promotional Obstacles
S W OPPORTUNITIES
High growth industry
O T Trend toward greater cannabis legalization, including the use of
cannabis for recreational purposes
Opportunities Threats
The concentrates segment will continue to experience strong demand
External
There is more room for innovation and iteration in the concentrates
category than any other segment of the industry

THREATS
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
 24

Marketing Strategy and

Implementation
Marketing Strategy and Positioning 25

PRODUCT PLACE

TARGET
MARKET

Our knowledgeable budtenders will … area have the highest

navigate and guide our customers number of registered
through our vast product variety patients.
featuring locally sourced medicines
along with our namesake core product
line of the highest quality medical
cannabis flowers, concentrates, edibles
and more
Marketing Strategy and Positioning 26

TECHNOLOGY PROMOTION WEBSITE

weedmaps.com Website development,

Cutting edge growing
leafly.com Branding appearance
technologies and CO2
stickyguide.com development, including
supercritical extraction
www.cannasaver.com mission statement, logo,
processes
cannabiscouponcodes.com colours, brochures etc. SEO
weedealio.com optimization.
Marketing Strategy and Positioning 27

TARGETED CUSTOMER
PEOPLE ACQUISITION

We have a CRM software Word of mouth / reputation.

that will enable us manage a Social media presence on Instagram,
one-on-one relationship with Snapchat, and YouTube.
our patients no matter how Online and offline campaigns beginning 6
large our patient base grows months into the first year.
 28

Production Sales
Forecast
Growing Forecast 29

Company intends to mix outdoor cultivation from LBS 14,000

April to October period and all around year
greenhouse cultivation. 12,000

10,000
CannaCult will produce up to 2 strains within 5
months of becoming a licensed cultivator.
8,000
Company will have the ability to vegetate up to
1,000 plants and flowers concurrently, will grow up
6,000
to 11 different strains of marijuana, and will have
the ability to grow from seedling to finished 4,000
product.
2,000
Company will use a Perpetual Harvest technique in
which growers utilize multiple grow tents/areas to 0
Year 1 Year 2 Year 3
ensure that there are always plants in both the
flowering stage and in the vegetative stage. Indoor Outdoor
Concentrates Production Forecast 30

gram
40,000
Company will acquire all marijuana plants in
accordance with the laws and regulations. 35,000

30,000
For the purposes of this plan, CannaCult will
25,000
assume that a 100 lbs. harvest of dried flower
20,000
will also produce 33 lbs. of trim to be used for
cannabis extractions and concentrates. 10 lbs. 15,000

of high quality trim will yield about 1.2 lbs. of 10,000

high quality extractions.
5,000

We intend to start with 2.0 pounds of material 0

Year 1 Year 2 Year 3
per day for first month and increase on 0.2
pound more during next months until gram per unit % of end products
Concentrates (oil) 1.00 25%
reaching 4.2 pounds per day. Disposable Vape Pens 0.50 45%
Pre-filled Cartridges 0.50 20%
Capsules 1.00 5%
Tinctures 0.15 5%
Infused Products (units/servings production) 31
Topicals Candy, chocolate, infused foods Beverages
Tinctures (150mg) Capsules, Pills (1000mg) Pre-filled Cartridges (500mg)
Disposable Vape Pens (500mg) Oils, wax, shatter (1000mg)

1,187
17,804
11,870
Year 3 6,239
936
7,487
16,846
4,679
952
14,283
9,522
Year 2 6,101
915
7,321
16,473
4,576
461
6,913
4,609
Year 1 2,603
390
3,123
7,027
1,952
 Sales Forecast 32

$10,000

Thousands
$9,000
Year 1: Sales of the vendors’ product $8,000
line to generate $0,000,000.
$7,000
Year 2: Dispensary income from
$6,000
Sales Growth $3,500-$7,000 a day for the first few
$5,000
months with increasing to about
$20,000 a day within 1-2 years. $4,000

$3,000

Cash will be retained in the business $2,000

to cover cash operating needs as $1,000

well as future expansion to meet $0

Operating Needs Year 1 Year 2 Year 3 Year 4 Year 5
the demands.

Concentrates, own line wholesale Flowers, own line wholesale

After the first year of operations, it
Accessories etc. Topicals
is expected that CannaCult will be
able to trim expenses through Candy, chocolate, infused foods Beverages

Expenses Cut realizing business efficiencies, Tinctures (150mg) Capsules, Pills (1000mg)

gaining operational experience and Concentrates Flowers

industry knowledge.
 33

Team
Management
Management Team 34

Cristopher Johnson Shean Collins Eva Smith

Company CEO Company CEO Company Co-Owner
Experience: 15 years Experience: 8 years Experience: 10 years

Confidential Confidential Confidential

Company Organization 35

Director

Production Operational
Sales Department Master Grower
Department Directors

Manager, Admin and

Assistant Budtenders
Extraction Services Logistics Personnel

Sales & Marketing Trimmers/

Extraction Tech Inventory Manager
Personnel Packagers

Security

Receptionists
 36

Financial Plan
 Projected Profit and Loss, $000 37

YEAR 1 YEAR 2 YEAR 3

Revenue
Direct Costs
Gross Profit
% of revenue

Operating Expense
Initial & General Costs
Operating Expenses (cultivation business)
Operating Expenses (processing business)
Operating Expenses (retail business)
Total Sales & Marketing Expenses
Total Senior Management Salaries & Benefits
Total IT Salaries & Benefits
Total Other Salaries & Benefits
Misc.
Total Operating Expense

Operating Income (EBITDA)

% of revenue

Depreciation and Amortization

Earnings Before Interest & Taxes (EBIT)

Interest Expense

Earnings Before Taxes (EBT)

Income Tax
Net Income
% of revenue
 Projected Cash Flow, $000 38

YEAR 1 YEAR 2 YEAR 3

Net Income

Cash Flow from Operations

Depreciation
Change in Receivables
Change in Inventory
Change in Accounts Payable
Change in Accrued Expenses
Total Cash Flow from Operations

Cash Flow from Investing

Capital Expenditures (CAPEX)
Other
Total Cash Flow from Investing

Cash Flow from Financing

Revolver Issuance / (Repayment)
Long-Term Debt Issuance / (Repayment)
New Equity Investments
Dividends
Total Cash Flow from Financing

Total Change in Cash

Beginning Period Cash
Ending Period Cash
Ratio Analysis 39

Ratio Analysis Year 2 Year 3 Year 4 Year 5 Avg. (2-5 years)

Return on Equity

Return on Assets
Return on Sales
Asset turnover

Profitability
Gross margin
SG&A as % of Sales
Operating Margin

Asset Turnover Ratios

Accounts Receivable Turnover
Fixed Asset Turnover
Funding Analyses, $ 000 40

Company intends to raise $ 0,000,000 for 5 years with ROI 15% and profit share 5%. First
repayment will start from 11th month.

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7

Long-Term Debt Beginning Balance

Long-Term Debt Repayment

Long-Term Debt Ending Balance

ROI

Profit Share (Investors)

 41

Thank You