Proposed Design Style for

webinar

420Group, LLC Proprietary &

Confidential
 Investing in the
Legal Cannabis Industry Webinar

Matthew Greene
Managing Partner
Matt@420Group.co
www.420Group.co

March 2, 2017
420Group, LLC Proprietary &
Confidential
BIO SLIDE Appears During verbal
statement
Verbal statement
My name is Matthew Greene, Managing Partner of 420Group, and I along with
Dan Strachman, our Strategic Advisor, will be sharing our outlook,
perspectives, facts and some informed speculation on the current cannabis
industry and forward-looking opportunities for investors.

We also will be sharing our thoughts on what impact the new administration
might have on our industry.

So thanks for joining us for what we hope is in informative and even more
importantly, a useful conversation if youre considering how you might
participate in whats been described as the Green Rush a term I dont like
particularly as it conjures-up images of the Wild West and bawdy mining towns
with very few laws and protections.

In fact, theres a tremendous amount of regulations, state, couty and city laws
and procedural hoops that every entrepreneur as well as multi-state company
must abide by.
And theres very little happening in the way of gunfights in the center of town in
the particluar wild west..
420Group, LLC Proprietary &
Confidential
 BIO SLIDE
Matthew Greene Daniel Strachman Picture
Managing Partner Strategic Advisor
35 years advertising, Picture 35 years advertising,
marketing, ecommerce marketing, ecommerce
expertise expertise
Founder/CEO Blue Ribbon Founder/CEO Blue Ribbon
Digital. Leading interactive ad Digital. Leading interactive ad
agency agency
(The Estee Lauder Companies; (The Estee Lauder Companies;
Discount Tire Company; Discount Tire Company;
Citibank, etc.) Citibank, etc.)
VP, Group Director Ogilvy & VP, Group Director Ogilvy &
Mather Mather
and Ammirati & Puris (Steve and Ammirati & Puris (Steve
Jobs/NeXT Computers; Jobs/NeXT Computers;
Picture
American Express Steve Blood American Express
CIO / Columbia Care / Multi-State
Medical Dispensary Group
Technology blah blah

420Group, LLC Proprietary & Confidential

 Todays Discussion
Verbal
Design
Key industry facts Visuals
& trends /Words
An historical
perspective 3 Discussion
Industry verticals
Investing trends
so far:
VC/Funds/Public
Areas
Mkts
Entrepreneurs/In 1. Historical and Future Outlook for Legal
dividual Cannabis Sector
Investors
Our investment
approach
2. The 420Group Approach & What Were Looking
Cannabis & the At
Trump
Administration 3. Trump Administration & Assessment
Q&A

4. The Cannabis Wrap-Up

420Group, LLC Proprietary &
Confidential
America Likes Cannabis

60%
60 % of US Population lives in medical and/or adult use states
(following
NOV. 16 election results)
63 Million Americans live in adult use states
29 states with medical and/or adult use laws now enacted
420Group, LLC Proprietary &
57% of U.S. Adults favorConfidential
legalization (PEW 16)
 Legal Cannabis Gets Real
Note to designer. Lets $21.6 Billion*
use a growing
cannabis leaf under 2021 (est.)
each yearly tally as a
visual proxy to show
growth.
$5.7 Billion
2015
$4.6 Billion
$370% Increase
2014
In 6 years

NOTE: These figures only describe

420Group, LLCflower/extracts/Infused
Proprietary & Pen
etc.,sales nationally. Confidential
*Source: 2017 ArcView / BDSAnalytics
 Total Industry Value
Designer: Massive
Chart style
$ 15.1B Total Market*

$ 9.7B ancillary
businesses

$ 5.4B cannabis
sales

2015
420Group, LLC Proprietary &
Confidential
Adult Use Drives Industry

Adult Use sales will quickly outpace

and
sustaingrowth
420Group,likely
LLC Proprietary
in 2018
Confidential
&
Source: Arcview Market Research / BDS
Analytics 5th Edition 2017
An Economic Powerhouse

For every $1 spent in dispensaries and stores,

economic impact in terms of jobs, consumer
420Group, LLC Proprietary &
purchases, housing market,
Confidentialetc.
Its All About Tax Revenues

!
Cannabis delivers significant new revenues to state coffers
CO Marijuana taxes collected: $120MM (15) and $63.4MM (14)
With $1.1BB in adult use and medical sales combined: 2016
banner year
CO model being replicated in Proprietary
420Group, LLC each new & adult use market given
Source: CO Department of
its success Confidential
Revenue
 Historical Observation
Will legal cannabis surpass last centurys fastest-
growing industry?
We looked at the Internet ad media industry*

1997 1999 2005 2010 2015

$ 906.5 MM $8.2BB $12.5BB $26BB $59.6BB

1,280% Increase in 8 yrs 6,475% in 18 yrs.

*Source: Internet Advertising Bureau

420Group, LLC Proprietary &

Confidential
 420Group Investment
Foundation
Over $21B market by 2021
More states, and more citizens
approving cannabis legislation each
year
Early companies and entrepreneurs
proving-out various models (or not)
Inflection point for products &
services
to drive growth happening now
420Group, LLC Proprietary &
Confidential
 420Group Approach
Momentum clearly indicates that time is ripe for smart investments into the
space, across the board

Focused exclusively on start-up and early-stage companies that

do not touch the plant

Mitigate risk while facilitating investment into the category

Concentrate on consumer products, business and retail innovation, science and

technology verticals that execute at scale, higher multiples at exit

Look for great teams w/great products or service modelsliterally opportunity

across the entire spectrum of business lines and models

420Group team deeply engaged in our portfolio companies, bring

expertise, experience and strategic relationships

420Group, LLC Proprietary &

Confidential
 Were Focused on Ancillary
Businesses
And so are entrepreneurs.

420Group, LLC Proprietary & Confidential

Target Verticals for
Investment

420Group, LLC Proprietary &

Confidential
Some Funded Companies

420Group, LLC Proprietary & Confidential

 The Politics of Cannabis
In case you hadnt heard, Donald Trump won the
Presidential election, same day that adult use and
medical use states expanded by 8 (incl. CA)
Attended (and presented) @ major cannabis
conferences
Nov. 11-16
Kitchen survey among polled investors
entrepreneurs, legislators and business owners
similar to findings from MJBizNiz Study
Weve looked at the entire Trump Administration,
reports, quotes and editorial and assessed situation

420Group, LLC Proprietary &

Confidential
 420Group, LLC Proprietary &
Confidential
Red States Want Adult Use

420Group, LLC Proprietary &

Confidential
 The Trump Effect

Optimisticto
Neutral =
42.5%

420Group, LLC Proprietary &

Confidential
JESSICA WILL FINISH THIS SLIDE AND SEND
Trump Administration
TOMORROW -TUES

Psychodynamics
As stated in repogrting.

Anti Unclear Pro Cannabis

Cannabis
Mike Pence,
VP
Cannabis
H
i
g
h Pro Tobacco
Against MJ
John Kelly
SEC
Homeland
Security

L
O
W

420Group, LLC Proprietary & Confidential

 The Wrap-Up
Very bullish on the future of the
industry
Need for companies with technology,
service focus with ability to solve
problems, especially in the ancillary
sector
Not concerned about potential
Administration interference: Key
promise to let States set their own
agendas, serve their communities
420Group, LLC Proprietary &
Confidential
 Thank You!
If interested in learning more about
investment opportunities, send me
an email:

MATT@420GROUP.CO

420Group, LLC Proprietary &

Confidential