Invest in tomorrow’s global Cannabis brand and share our vision to help heal the world with the amazing power of cannabis.
Forward Looking Statement This presentation contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. These statements relate to future events or future performance. All statements other than statements of historical fact may be forward-looking statements or information. Forward-looking statements and information are often, but not always, identified by the use of words such as "appear", "seek", "anticipate", "plan", "continue", "estimate", "approximate", "expect", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe", "would" and similar expressions. Forward-looking statements and information are provided for the purpose of providing information about the current expectations and plans of management of the Company relating to the future. Readers are cautioned that reliance on such statements and information may not be appropriate for other purposes, such as making investment decisions. Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the risks associated with the cannabis industry in general such as operational risks in growing; competition; incorrect assessment of the value and potential benefits of various transactions; ability to access sufficient capital from internal and external sources; failure to obtain required regulatory and other approvals and changes in legislation, including but not limited to tax laws and government regulations. Accordingly, readers should not place undue reliance on the forward-looking statements, timelines and information contained in this presentation. Readers are cautioned that the foregoing list of factors is not exhaustive. The forward-looking statements and information contained in this presentation are made as of the date hereof and no undertaking is given to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws or the Canadian Securities Exchange. The forward-looking statements or information contained in this presentation are expressly qualified by this cautionary statement. The Canadian Securities Exchange Inc. has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved of the contents of this presentation.
Wildflower Marijuana Inc. • CSE: SUN • wildflowerUS.com
Market Information
US Market Potential and Market Expansion
US Legal Cannabis Sector by the Number. Cannabis Market Today
CBD Market Today
$6 Billion
$202 Million
Source: Cannabis Business Plan
Source: Forbes.com
Projected Market by 2026
Projected Market by 2020
$50 Billion
$2 Billion
Source: Bloomberg Businessweek
Source: Forbes.com
Market Information Global Potential and Market Expansion
• Many countries are on their way towards legalization, and more for decriminalization. Canada will be legal by summer of 2018 and Mexico, Colombia, Jamaica, France, Portugal, Czech Republic, Italy and Netherlands are speculated to follow soon. South Korea recently introduced legislation to legalize medicinal cannabis. • Potential to increase growth through acquisitions and partnerships. • Expansion into multiple sectors means the Wildflower brand has access to multiple revenue streams.
Weedmaps Wildflower Marijuana Inc. • CSE: SUN • wildflowerUS.com
Weedmaps
About Wildflower Wildflower is a wellness company with a focus on cannabis. We develop, produce and distribute proprietary cannabis products under a growing brand in multiple markets. Through expanding sales and strategic partnerships we continue to increase our market share with diversified revenue streams, new product launches and new market opportunities.
Wildflower Marijuana Inc. • CSE: SUN • wildflowerUS.com
Capital Structure As of April 11, 2018
Company Name
Wildflower Marijuana Inc.
Share Price
1.49 (Price range: Low $0.255~2.94)
Shares Outstanding
59 million
Insiders control
20 million
Friends & Family ownership
6.5 million
Warrants
2 million @ $0.75-2.25
Stock Options
5.0 million @ $0.20-1.55
Volume
300,000 shares/day
Primary Stock Exchange
Ticker Symbol
Canadian Securities Exchange Frankfurt Exchange US Over the Counter
CSE: SUN FWB: RSP OTC: WLDFF
(average volume for last 120 days) RECENT SHARE CHART March 2017 - March 2018 Wildflower Marijuana Inc. • CSE: SUN • wildflowerUS.com
6
Wildflower
Timeline 2012-Current
Wildflower Marijuana Inc. • CSE: SUN • wildflowerUS.com
Wildflower Milestones
● First Canadian public company to launch cannabis products into the regulated Washington market. ● First Canadian cannabis company to acquire all-state distribution channels with one of the world’s largest retail brokers. ● First Canadian public company to launch cannabis products in the newly regulated California market.
Wildflower Marijuana Inc. • CSE: SUN • wildflowerUS.com
●
With a population of over 39 million, and an annual GDP close to 3 trillion dollars. California has the 6th largest economy in the world (behind the rest of the US, China, Japan, Germany and the UK) and is the world's largest cannabis market.
●
Wildflower’s expansion into California comes at an ideal time for the Company to gain brand awareness and market share as legalization for adult recreational use rolls out.
The Wildflower Difference Developed Product Line ● ● ● ● ● ●
3 years of market research, product development and supply chain management. Diversified product line containing both THC and CBD products catering to both the recreational THC market as well as the CBD holistic wellness market. 100% natural plant based ingredients. 3rd party lab tested. Formulated with high grade pure CBD extracts plus other synergistic plant based ingredients. Streamlined branding with elegant packaging that appeals to high-end clientele.
Wildflower Marijuana Inc. • CSE: SUN • wildflowerUS.com
The Wildflower Difference Strong Partnerships ● ●
Over the last 3 years we have established strong partnerships. These partners include various licensees in the regulated sectors, top marketing agency in North America, national retail distributors in the US and leading technology companies.
Retailers
Distributors
Growers
Marketing Wildflower Marijuana Inc. • CSE: SUN • wildflowerUS.com
Technology
Extractors
Research & Development
Scientists
The Wildflower Difference Scalable Model
• Proprietary production facility designed for Wildflower products, allowing for scalability. • Established supply chain. • Diversified sales model which uses in-house sales teams, third-party wholesale distribution, affiliate online partners and the Wildflower e-commerce site.
Wildflower Marijuana Inc. • CSE: SUN • wildflowerUS.com
California Acquisition Assets
Operating Business in central Los Angeles ● Revenues = Gross $3.3M, net $920,000 ● These revenues are derived from a medical market only where the number of dispensaries were historically estimated at 1,500 ● Only known party holding all licenses from seed to sale in Los Angeles ● Los Angeles population = 4 million surrounding counties population = 18 million Wildflower Marijuana Inc. • CSE: SUN • wildflowerUS.com
California Acquisition Retail License
• Only 47 adult-use retail licenses have been granted in the city of Los Angeles • Ability to relocate in high traffic area such as Beverly Hills irrespective of the saturation requirements
Wildflower Marijuana Inc. • CSE: SUN • wildflowerUS.com
California Acquisition Delivery License
• Easy to deliver and distribute Wildflower & King products to retail locations throughout LA • E-Commerce delivery service could be 25-30% of sales • up to 4,000 deliveries per day with an average order of $150 based on prior operators in LA • Easy access to all major highways within Los Angeles Los Angeles Wildflower Marijuana Inc. • CSE: SUN • wildflowerUS.com
California Acquisition Distribution License
• Only 26 distribution licenses granted in the city of Los Angeles • Can partner with other cannabis brands to allow storage and delivery for a 10-15% flow through rate • All products distributed to retailers must go through a distribution license
Wildflower Marijuana Inc. • CSE: SUN • wildflowerUS.com
California Acquisition Manufacturing License
• Only 49 adult-use manufacturing licenses have been issued in Los Angeles • Provides ability to manufacture King and Wildflower products directly in the middle of the most densely populated cannabis market in the world • Potential for acquiring more brands who need a manufacturing license to continue doing business in LA • Manufacturing for third party companies under a licensing joint venture partnership or other arrangement
Wildflower Marijuana Inc. • CSE: SUN • wildflowerUS.com
California Acquisition Cultivation License
• Cultivation License can be moved anywhere in LA • Currently existing grows located in LA that don’t have a new cultivation license may do a 50% profit share to use
Wildflower Marijuana Inc. • CSE: SUN • wildflowerUS.com
Asset Capitalization Breakdown Summary Retail
Delivery
Distribution
Manufacturing
Cultivation
Medical & Recreational License
Delivery License
Distribution License
Manufacturing License
Cultivation License
Estimated Annual Revenue =
Estimated Annual Revenue =
Estimated Annual Revenue =
Estimated Annual Revenue =
Estimated Annual Revenue =
$4.95M
$13.6M
$2.2M
$7.1M
$1.25M
2017
Large delivery company in
Using our license for brands
Manufacturing for other brands
Cultivation for existing growers
$3.3M gross - $920,000 net
California
that need to store & fulfill
through our license
using our cultivation license
$30,000/day at 10% =
$2.5M profit share at 50% = $1.25M per year
w/ Medical License only (retail)
orders from a central hub 2,500 deliveries per day at
2018
$150 average per delivery,
$50,000/day at 12.5% flow
$1.1M per year + Manufacture of
(estimated 50% growth) =
$375,000 -> 10% flow
through rate =
Wildflower & King brands = $5M
$4.95M gross > $2M net
through rate x 365 day =
$2.2M per year
per year (plus 20% increase
w/ Medical & Recreational
$13.6M per year
License (retail)
Wildflower Marijuana Inc. • CSE: SUN • wildflowerUS.com
with delivery license), $6M per year
TOTAL ANNUAL REVENUE = $29,100,000