July 2019
DISCLAIMER STATEMENTS This presentation relates to an entity that is directly involved in the United States cannabis industry insofar as its business activities include the cultivation, production, manufacturing and distribution of cannabis and cannabis-related products where use of cannabis is legal for medical and/or adult use purposes, as applicable. While some states in the United States have authorized the use and sale of cannabis, it remains illegal under federal law and the approach to enforcement of U.S. federal laws against cannabis is subject to change. Because the Company engages in cannabis-related activities in the United States, it assumes certain risks due to confmicting state and federal laws. The federal law relating to cannabis could be enforced at any time and this would put the Company at risk of being prosecuted and having its assets seized. For these reasons, the Company’s investments in the United States cannabis market may subject the Company to heightened scrutiny by regulators, stock exchanges, clearing agencies and other U.S. and Canadian authorities. There can be no assurance that this heightened scrutiny will not in turn lead to the imposition of certain restrictions on the issuer’s ability to operate in the United States or any other jurisdiction. There are a number of risks associated with the business of the Company. 2 CSE: TGIF | OTCQX: TGIFF | 1933industries.com
COMPANY OVERVIEW 1933 Industries Inc. is a vertically integrated, Hemp-based, CBD consumer packaged brand-focused cannabis company with goods operations in the United States and Canada. Flower and concentrate branded products Operating through two subsidiary Licensed medical and companies, the Company owns leading adult-use cannabis cannabis brands as well as licensed cultivation cannabis cultivation, extraction, Hemp processing and processing and manufacturing assets. extraction services 3 CSE: TGIF | OTCQX: TGIFF | 1933industries.com
CORPORATE STRUCTURE 1933 Industries Inc. (BC) AMA Infused MFG 91% Ownership 100% Ownership Alternative Medicine Association, LC (AMA), Infused MFG (Infused) produces hemp- a licensed medical and adult-use cannabis based, CBD products, thoughtfully crafted cultivation and production facility that of high quality organic botanical ingredients. produces its own line of unique cannabis- based products and manufactures other third-party brands. 4 CSE: TGIF | OTCQX: TGIFF | 1933industries.com
INDUSTRY AT A GLANCE The CBD 11 market is expected to States grow to with US recreational $21 Billion cannabis cannabis industry is laws in 2020 projected to exceed 33 $50 Billion (Hemp Business Journal) States with by 2026 medical (Cowen & Co.) cannabis laws CATALYSTS Strengthening the Tenth Amendment Through SAFE Banking Act - aims to protect banks that Entrusting States (STATES) Act – gives greater serve cannabis companies in states that have autonomy to individual states in determining legalized it. their cannabis rules without interference from the federal government. 5 CSE: TGIF | OTCQX: TGIFF | 1933industries.com
BUSINESS MODEL Vertical Integration Current Future Highlight 3 3 Cultivation #LasVegasOriginal Distinction of being the fjrst licensed cultivator of medicinal cannabis in Las Vegas, one of the world’s top canna-tourism destinations 3 3 Extraction Branded THC Products AMA branded concentrates account for 70% of the company’s THC business and are sold in licensed dispensaries in Nevada 3 3 White Label Licensing Agreements Production Partnerships with best of breed names in place with Denver Dab Co., OG DNA Genetics, Gotti’s Gold, Kurupt’s Moonrocks 3 3 CBD Branded Proprietary Hemp and CBD Infused Wellness Products Goods Unique formulations developed in-house with verticals in pain management, action sport recovery and pet wellness that appeal to a broad consumer base 3 3 Distribution Coast to Coast Distribution Established proprietary distribution channels for Canna Hemp™ line, now sold to over 800 outlets across 46 US states 3 3 Branding & Innovative Branding and Packaging Packaging Unique branding, packaging with signifjcant brand presence and customer following 3 3 Marketing In-house Marketing and Sales Unrivalled customer service and education offerings and specialized marketing 3 3 E-commerce E-commerce Platform Online sales for CBD products 3 3 CBD Extraction Wholesale Hemp Derived CBC extracts CBD extraction services coming online to produce full spectrum oils, distillates & isolates 8 8 Retail No retail locations 6 CSE: TGIF | OTCQX: TGIFF | 1933industries.com
INVESTMENT HIGHLIGHTS Strong Financial Position Focused on Consumer Growth Centers Packaged Goods (CPGs) - • $12.8 M in sales revenue for the • Nevada-based cultivation, Operating in two Sought-after nine months, ending April 30th production and manufacturing (fjscal 2019), $12.6 M (fjscal Verticals operations 2018) • Huge market opportunity in • Cannabis-concentrate – • Cash on hand ($14M as of Q3) Las Vegas, a global hub of largest market share in Nevada adult-use cannabis tourism • $60M total assets • CBD branded goods - • Expansion opportunities in diversifjed portfolio of • No debt mature markets like California products and brands selling and Colorado, new markets across 46 US states such as Canada and Arizona Vertical Integration Business Model Capital Markets • First ever licensed cultivator • Wholesaler – • Operational expertise with in southern Nevada fmower and concentrates cannabis industry and public market professionals, including • First-mover advantage in • White label partners – long-time cultivators, cosmetic developing IP, production, Denver Dab Co, Gotti’s Gold industry professionals, regulators, distribution and market share • Co-branded products – marketers and fjnanciers • Advanced cultivation facilities Birdhouse Skateboards™, • US/Canada exposure – OG DNA Genetics • Investing in infrastructure – Canadian listed, OTC QX increasing concentrate output, • E-commerce platform for trading hemp processing CBD Canna Hemp™ wellness • Research coverage from products Canaccord Genuity 7 CSE: TGIF | OTCQX: TGIFF | 1933industries.com
CAPITAL MARKETS FINANCINGS TO DATE $35.75 M 1933 INDUSTRIES CAPITALIZATION Issued & Outstanding 279,584,948 1 Warrants Outstanding 56,746,224 2 Stock Options 17,513,330 2 STOCK EXCHANGES USA OTCQX: TGIFF Canada CSE: TGIF INDICES CSE25 Index HORIZONS Emerging Marijuana Growers Index ETF HMJR OTCQX Composite OTCQX Cannabis Index OTCQXMJ 1 as of June 1/19. 2 as of April 30/19. 8 CSE: TGIF | OTCQX: TGIFF | 1933industries.com
CONSUMER PACKAGED GOODS 9 9
BRANDS | CANNABIS FLOWER www.amanev.com | 10 CSE: TGIF | OTCQX: TGIFF | 1933industries.com
BRANDS | CANNABIS CONCENTRATES SHATTER CRUMBLE BATTER SUGAR WAX DIAMONDS www.amanev.com | 11 CSE: TGIF | OTCQX: TGIFF | 1933industries.com
BRANDS – LICENSING AGREEMENTS AND PARTNERSHIPS www.amanev.com | 12 CSE: TGIF | OTCQX: TGIFF | 1933industries.com
HEMP/CBD PRODUCT BRANDS & INTELLECTUAL PROPERTY Canna Hemp™ line of products help those seeking for all-natural organic alternatives. Available in 800 retail outlets across the US www.cannahemp.com | 13 CSE: TGIF | OTCQX: TGIFF | 1933industries.com
CANNA FUSED™ | THC/CBD Full Spectrum CBD Bioavailability Non-GMO Gluten-Free Paraben-free www.cannahemp.com | 14 CSE: TGIF | OTCQX: TGIFF | 1933industries.com
CANNA HEMP X™ All-natural CBD products for athletes to focus on recovery and wellness. www.cannahempx.com | 15 CSE: TGIF | OTCQX: TGIFF | 1933industries.com
INFRASTRUCTURE 16
AMA CULTIVATION FACILITY EXPANSION State-of-the-Art Facility Highlights: Profjle Current Expansion • 5 different zones - 15 bloom rooms and 4 veg rooms • Sophisticated, fully automated irrigation and Footprint 12,000 sq. ft. 67,750 sq. ft. fertigation system • System of small vegetation/cultivation rooms for better crop management Canopy 4,000 sq. ft. 40,000 sq. ft. • Vault • Climate controlled rooms to cater to each phase Production 100 lbs./month 700-800 lbs./month of plant production Capacity • Benching system to maximize growing space • Advanced data tracking system for ‘steering’ the crop scientifjcally Timeline COMPLETED • 5-fold infrastructure expansion 17 CSE: TGIF | OTCQX: TGIFF | 1933industries.com
AMA EXTRACTION Profjle Current Expansion Footprint 500 sq. ft. 12,000 sq. ft. Distillate 40 litres/month 80 litres/month Production Capacity Timeline Fall 2019 18 CSE: TGIF | OTCQX: TGIFF | 1933industries.com
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