Q2 2019
CORPORATE PRESENTATION
CSE:EAT OTCQB:SPLIF
CANNABIS BRANDS MANUFACTURING DISTRIBUTION STRATEGIC ACQUISITIONS
CORPORATE PRESENTATION CANNABIS MANUFACTURING DISTRIBUTION - - PowerPoint PPT Presentation
CORPORATE PRESENTATION CANNABIS MANUFACTURING DISTRIBUTION STRATEGIC BRANDS ACQUISITIONS CSE:EAT OTCQB:SPLIF Q2 2019 FORWARD LOOKING STATEMENTS AND RISK DISCLOSURE The information contained in this presentation does not purport to be
Q2 2019
CSE:EAT OTCQB:SPLIF
CANNABIS BRANDS MANUFACTURING DISTRIBUTION STRATEGIC ACQUISITIONS
FORWARD LOOKING STATEMENTS AND RISK DISCLOSURE
The information contained in this presentation does not purport to be all-inclusive or to contain all information that prospective investors may require. Prospective investors are encouraged to conduct their own analysis and reviews of the Company and of the information contained in this presentation. Prospective investors should consult their own professional advisors to assess their potential investment in the Company. The remarks contained in this presentation ("Presentation") may contain forward- looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995) relating to the Company's
"believes," "plans," "intend," "scheduled," "potential," "continue," "estimates," "hopes," "goal," "objective," "expects," "may," "will," "should" or "anticipates" or the negative thereof or other variations thereon or comparable terminology, or by discussions of strategy that involve risks and uncertainties. The safe harbor provisions of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended, apply to forward-looking statements made by the
assurance of future performance or results. These forward-looking statements involve risks and uncertainties, including those identified within this Presentation. The actual results that the Company achieves may differ materially from any forward-looking statements due to such risks and uncertainties. These forward-looking statements are based on current expectations, and the Company assumes no obligation to update this information. Readers are urged to carefully review and consider the various disclosures made by the Company in it's reports filed on SEDAR that attempt to advise interested parties of the risks and factors that may affect the Company's business. The information in this current report shall not be incorporated by reference into any registration statement pursuant to the Securities Act of 1933, as amended. The furnishing of the information in this Presentation is not intended to, and does not, constitute a representation that such furnishing is required by Regulation FD or that the information this current report contains is material investor information that is not otherwise publicly available. This summary has been provided to the recipient for information purposes only and no representation or warranty, express or implied, is made as to the completeness or accuracy of the information contained herein. The contents are not to be reproduced or distributed to the public or press. The information contained herein is not guaranteed as to its accuracy or completeness. Throughout this presentation various logos and trademarks will be used. These trademarks and logos are the property of their respective owners. An investment in the Company's securities should be considered highly speculative. There is no guarantee that an investment in the Company will earn any positive return in the short or long term. An investment in the Company is appropriate only for investors who have the capacity to absorb a loss of some or all of their investment. There are certain risk factors associated with an investment in the Company's securities.
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Retail Clients Across California In-House Brands Facilities Across 5 U.S. States & Canada Trailing 12 Month Sales1
1 Figures in CAD $M
Nutritional High is a leading multi-state cannabis company, leveraging best- in-class distribution infrastructure & manufacturing expertise to develop leading-edge consumer products & brands
Colorado: Partnership with Palo Verde, an LP with state-of-the art- extraction and manufacturing capabilities for cannabis concentrates and edibles. Rapidly increasing footprint. California: Acquired and expanded Calyx Brands, a leading statewide wholesale distributor. Owner of FLI Labs NorCal, a license applicant with extraction and manufacturing facilities. Oregon: Acquired La Pine facility and have since completed buildout and commenced sales. Will be the exclusive producer of Marley Natural™ products in the state. Washington: Will be the exclusive producer of Marley Natural™ products in the state, sublicensing manufacturing to a local licensed LP.
Nutritional High is establishing a footprint into the following jurisdictions that spent a combined $8 billion on legal cannabis products in 2018.
4 Nevada: Acquiring a 75% interest in Green Therapeutics, a Las Vegas based producer and processor with established brands. Canada: JV with Abba Medix Group to manufacture cannabis extracts and infused products in Canada and internationally, as permitted by regulations.
Nutritional High is focused on being the leading international house of cannabis brands.
Watch our corporate video at nutritionalhigh.com
Own the Pipeline & Capture Shelf Space
By controlling distribution channels, we can efficiently and effectively capture shelf space and scale our portfolio of in-house branded
reaches into 500+ retail outlets.
Turn Promising Products into Strong Global Consumer Brands
Leverage our expansive distribution network to identify what products and brands are poised to succeed. Current core focus is on high quality extracts and edibles with consistent dosing.
Best-in-Class Production & Brand Development
Own a curated portfolio of novel consumer products and deploy superior production know-how, marketing strategies & branding expertise to unsure our products penetrate the market and develop into successful brands.
Transport Proven Brands into New Markets
Expand into new geographies with favorable market dynamics and deploy a curated portfolio of high-performance brands. 5
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PRODUCTION & EXTRACTION DISTRIBUTION BRAND PORTFOLIO
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CALYX BRANDS Leading Footprint: #1 distributor of edibles in California: the fastest growing category in the largest cannabis market in the world. Retailers & Brands: 500+ licensed retailers served. 14 market leading brands in edibles, concentrates and flower, including an exclusive relationship with the world’s #1 edible. Dynamic Salesforce: 14 dedicated Calyx salespeople in the field, focused
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DISTRIBUTION SUPERIOR CONSUMER INSIGHT BRANDED PRODUCTS DEVELOPING LEADING-EDGE BRANDS & PRODUCTS
In-house & Leading 3rd Party Brands California’s Top Retailers First Mover Consumer Data Curated Product Selection
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burgeoning Nevada market
across adult-use dispensaries state-wide)
5,400 ft2 processing lab
US$5.8M
distribution licenses
management team with complementary skill sets and expertise
PORTFOLIO OF ESTABLISHED BRANDS TO BE EXPORTED
manufacturing facility to produce cannabis concentrates and edible products
both the short-path distillation techniques and VTA scale machinery to ensure a potent, clean, consistent product
and edible products were launched in November 2017
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Palo Verde LLC Arm’s-length private Colorado company, which holds license to manufacture marijuana-infused products at NH’s facility in Pueblo, Colorado.
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WASHINGTON OREGON
EXCLUSIVE LICENSE TO PRODUCE MARLEY NATURAL PRODUCTS IN OR & WA
state-of-the-art extraction and manufacturing facility to produce cannabis concentrates and edible products in La Pine, OR
extraction expertise to drive superior efficiencies and margins
to be launched in the near future
manufacturing facility in Bainbridge, WA
regulatory approval for license transfer
includes:
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CANADA
leveraging our extraction/branded product expertise across Canada and internationally
NEVADA
utilizing our California expertise to establish strategic positioning between brands and premier retailers
USA
distributors and producers, targeting recreational, lifestyle-focused companies
David Posner Co-Chair of the Board and Director
various other alcoholic products in Canada
managed real estate and brokered deals in Canada and US Dakota Sullivan CEO, Calyx Brands Inc.
distributor California Holistic Transfer to create Calyx Brands
two mobile ad tech providers
network sold to Yahoo for $300M
LookSmart, one of the first search engines
graduate work at Columbia and School of Visual Arts, NYC Tom Siciliano President
500, Private Equity and startup companies
America where he turned the company into the 2nd largest security company within the cannabis industry
Columbus University and a leadership excellence certificate from Penn State Jeremy Pace SVP, Operations
Management Officer on rotation across a number of key strategic U.S Embassy locations in the Middle East and Asia
based extraction company where he directed single-site cannabis concentrate manufacturing operation through a team
(production, operations and sales
Northwestern University
Adam K. Szweras Co- Chair of the Board, Corporate Secretary and Director
investment bank and Exempt Market Dealer
incoming Director at Harborside Inc.
Jim Frazier Chief Executive Officer
record of developing and implementing branded and private label programs and driving profits
business which has been a well-known manufacturer of confectioneries for over 40 years
sales and developed new customer bases across all retail channels Billy Morrison Chief Technology Officer and Director
deployed nearly autonomous grow system that mitigates labor and reduces cost
Collective, a successful delivery dispensary; Capstone Analytical, one of the first Bay Area thin layer chromatography testing facilities; and Temez Extracts
water change outs Michael DiNapoli Chief Financial Officer
aspects of operations, finance and long term strategic planning for a number of large- to medium-size companies
Val Winery, Bounty Hunter Wine and Spirits, Cameron Hughes, Coppola Wines
the financial services industry
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Undervalued: A Comparison with the Field
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Company Market Info TTM Financials Share Price Market Cap Enterprise Value Rev TTM EV/Rev TTM
Nutritional High1 $0.26 $85.1 $97.0 $17.7 5.5x
Origin House $12.10 $754.4 $692.6 $11.9 58.2x SLANG Worldwide $2.67 $680.3 $657.6 $4.8 137.0x Cannabis One Holdings $4.56 $471.4 $462.7 $2.4 192.8x Cannex Capital Holdings $1.74 $389.8 $353.2 $16.1 21.9x Dixie Brands1 $1.17 $161.8 $130.8 $6.6 19.8x Halo Labs $0.76 $155.1 $138.9 $14.7 9.4x DionyMed Brands $2.60 $143.8 $125.5
$0.74 $92.5 $83.9 $3.2 26.2x Golden Leaf Holdings $0.13 $77.9 $82.7 $21.6 3.8x C21 Investments $1.64 $75.7 $70.7 $0.5 141.4x The Tinley Beverage Company $0.84 $75.4 $69.1 Yield Growth Corp. $0.71 $64.8 $62.8 $3.1 20.3x Next Green Wave Holdings $0.49 $59.7 $49.1
$0.89 $57.1 $45.3 $0.1 452.6x Wildflower Brands $0.73 $49.3 $58.5 $3.0 19.5x Chemistree Technology $0.73 $41.3 $33.4 CENTR Brands $0.65 $38.8 $35.0
$0.35 $36.4 $27.2 $0.1 272.3x Ignite International Brands $1.72 $35.6 $30.2
$0.38 $34.4 $33.9 $1.5 22.6x Weekend Unlimited1 $0.10 $24.7 $20.9
$0.10 $21.2 $20.7 $0.2 103.7x CannAmerica Brands $0.19 $9.4 $12.7 $0.3 42.3x
Median $64.8 $62.8 $3.1 34.2x Mean $154.4 $143.4 $5.6 96.5x
Financial Data/Projections as per Capital IQ - Apr 23, 2019 All Figures in CAD $M (except per share figures)
1 Management Projections
EV / TTM Revenue vs. Peers
3.8x 5.5x1 9.4x 19.5x 19.8x1 20.3x 21.9x 21.9x 22.6x 26.2x 42.3x 58.2x 103.7x Golden Leaf Holdings Nutritional High Halo Labs Wildflower Brands Dixie Brands Yield Growth Corp. Cannex Capital Holdings Median Gabriella's Kitchen Ionic Brands CannAmerica Brands Origin House International Cannabrands
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Exchange/Symbol Canadian Securities Exchange EAT OTCQB SPLIF Frankfurt 2NU Capitalization Info as of April 25, 2019 Basic Shares Out. 317,011,616 Options (CAD $0.07 - $0.51) 21,062,517 Warrants (CAD $0.06 - $0.80) 28,237,565 Convertible Debt $11.8M Share Price $0.26 Fully Diluted Market Cap1 $85.1M
1 Assumes Treasury Method for in-the-money dilutive securities
David Posner Co-Chairman of the Board and Director T: (647) 985-6727 E: dposner@nutritionalhigh.com Adam Szweras Co-Chairman of the Board and Director, Corporate Secretary T: (416) 564-5926 E: aszweras@nutritionalhigh.com Jim Frazier Chief Executive Officer T: (321) 576-7171 E: jfrazier@nutritionalhigh.com