KSHB Investor Presentation December 2016 This presentation includes
KSHB Investor Presentation • December 2016
This presentation includes "forward-looking statements" within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. These statements are based upon the current beliefs and expectations of Kush Bottle’s management and are subject to significant risks and uncertainties. If underlying assumptions prove inaccurate or risks or uncertainties materialize, actual results may differ materially from those set forth in the forwardlooking statements. Risks and uncertainties include but are not limited to, general industry conditions and competition; general economic factors, including interest rate and currency exchange rate fluctuations; Kush Bottles undertakes no obligation to publicly update any forwardlooking statement, whether as a result of new information, future events or otherwise. Additional factors that could cause results to differ materially from those described in the forward-looking statements can be found in Kush Bottle’s SEC filings with the Securities and Exchange Commission (SEC) available at the SEC's Internet site (www. sec. gov). The information contained in this presentation was current as of the date presented. The Company assumes no duty to update the information to reflect subsequent developments. Consequently, the Company will not update the information contained in the presentation and investors should not rely upon the information as current or accurate after the presentation date. KSHB © 2016 Kush Bottles. Confidential and Proprietary.
“During the gold rush, it’s a good time to be in the pick and shovel business. ” -Mark Twain © 2016 Kush Bottles. Confidential and Proprietary. 3
Who We Are • Kush Bottles is a leading provider of packaging, supplies and branding solutions for the regulated cannabis industry • We service more than 1, 500 marijuana producers, processors and retailers in the wholesale/B 2 B market for both medical and legal recreational use • Our broad distribution spans across 28 states and Canada • We aim to be the gold standard for responsible, customized branding and packaging in this rapidly accelerating industry © 2016 Kush Bottles. Confidential and Proprietary. 4
Our Large & Growing Addressable Market The forecasted rise of marijuana sales is expected to drive more than $20 B of economic value across the entire cannabis industry Source: 2015 Marijuana Business Factbook, a division of Anne Holland Ventures, Inc. © 2016 Kush Bottles. Confidential and Proprietary. 5
US Marijuana Sales Estimates (US$ in billions) $60 50 10 year Legal Sales CAGR 24% $50 40 $31 30 $50 20 $25 10 $6 0 2016 2026 Legal Sales Informal Sales Source: Cowen Research © 2016 Kush Bottles. Confidential and Proprietary. 6
Current Landscape We have facilities in the three largest U. S. cannabis markets, and plan to penetrate new markets through affiliate facilities and distribution agreements 7
Wide Range of Products & Customizable Solutions • Customized packaging (tubes, bottles, bags, containers, etc. ). – All FDA compliant • Dispensary supplies • Marijuana accessories • Branding solutions – Allows customers to turn their packaging in marketing or re-marketing campaigns © 2016 Kush Bottles. Confidential and Proprietary. 8
Sample Work © 2016 Kush Bottles. Confidential and Proprietary. 9
© 2016 Kush Bottles. Confidential and Proprietary. 11
Kush Bottles Revenue Growth $9, 000 $8, 215, 452 $8, 000 4 Year CAGR 97. 9% $7, 000 $6, 000 $5, 000 $4, 013, 571 4, 000 3, 000 2, 000 $1, 710, 286 $1, 293, 421 1, 000 $536, 129 FY 12 A FY 13 A FY 14 A FY 15 A 1 FY 16 A 1. Kush Bottles acquired Dank Bottles LLC on April 9, 2015 © 2016 Kush Bottles. Confidential and Proprietary. 12
Strong Growth With Current Customers Kush Bottles continues to grow vertically by increasing sales within its current customer-base through distribution of new products and services. 1 1 1. Kush Bottles acquired Dank Bottles LLC on April 9, 2015 © 2016 Kush Bottles. Confidential and Proprietary. 13
Fiscal 2016 Highlights Sales increased from $4. 0 M to $8. 2 M (105%) Growth Drivers: • Strategic acquisition of our exclusive distributor in Colorado • Expanded SKU listing to offer a more diverse array of products • Focus on custom branded packaging • New user friendly website • Established a dedicated sales effort in Washington • Recreational marijuana program began in Oregon © 2016 Kush Bottles. Confidential and Proprietary. 14
Key Takeaways • Further legitimizing the cannabis industry with FDA approved, childresistant packaging and branding solutions • Penetrating a newly established, multibillion dollar regulated industry • Addressing a large and growing need from providers across the entire spectrum of cannabis (growers, retailers, processors) • Despite doubling our business for two consecutive years, we remain in the early stages of growth © 2016 Kush Bottles. Confidential and Proprietary. 15
APPENDIX © 2016 Kush Bottles. Confidential and Proprietary.
Kush Bottles Timeline Kush Bottles has demonstrated significant growth sinception. Kush Bottles began at the ground floor of the emerging cannabis industry and although we have grown a lot in the last few years it pales in comparison to the future opportunities on the horizon. March 2014 Established exclusive distribution agreement in Colorado April 2013 Nov. 2014 4 more states vote to make marijuana legal Began aggressively marketing “Made in USA” Feb. 2012 Nov. 2015 Retail sales commence in Oregon Oct 2013 Acquired Granddaddy Med Bottles Sold 10 millionth bottle 2016 National referendum on legalization of marijuana Jan. 2014 2010 Retail sales commence in Colorado Established Dec. 31 st 2012 Achieved $1 m annual revenue July 2014 Retail sales commence in Washington Apr. 2015 Sales begin in Canadian market Aug. 2013 Opened facility in Washington © 2016 Kush Bottles. Confidential and Proprietary. 17
Leadership Team Nick Kovacevich Co-Founder & CEO Ben Wu President & COO Chris Martin CFO In his role as CEO for Kush Bottles, Nick directs all business relations and financial strategy for the company. Nick also oversees the organization's senior management team. Nick has been integral in making critical strategic, growth, and financial decisions since the company’s inception. Ben Wu brings to Kush Bottles valuable experience in managing small, rapidly growing businesses. Prior to Kush, Ben served as a Vice President at Wedbush Capital Partners, a private equity fund focused on acquiring, professionalizing and accelerating the growth of small entrepreneur owned companies. He is very familiar with a broad range of industries including manufacturing, distribution, branded consumer products and packaging. With over 10 years of experience in both public accounting and private industry, Chris brings a plethora of accounting and financial reporting experience to Kush Bottles. Chris is a licensed California CPA who excels at combining his passion, accounting knowledge and managerial skills towards improving company structure and culture. Nick holds a Bachelor of Science from Southwest Baptist University where he studied Sports Management and earned Academic All-American honors. While at SBU, Nick played small forward for the men’s basketball team, leading the Bearcats to the Sweet 16. © 2016 Kush Bottles. Confidential and Proprietary. Ben joined Kush Bottles in February 2014 and has been instrumental in the development of the Company. Chris was recently a finalist for the Orange County Business Journal’s CFO of the Year Award 2015 for his work in bringing Kush Bottles to the public markets. 18
Fiscal 2016 – For the Year Ended August 31 © 2016 Kush Bottles. Confidential and Proprietary. 19
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