BODY & MIND INC. BODY MIND - Bam Marijuana
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TM
BODY & MIND INC.
OWNER OF NEVADA’S MARQUIS
RETAIL BRAND, BODY & MIND
BODY and MIND
INVESTOR PRESENTATION
NOVEMBER 2017
Disclaimer
This documentation is a presentation (the “Presentation”) of ness strategy, budgets, projected costs, projected capital expen- result of new information, future events or results or other-‐
general background information about BAM Marijuana, (“BAM”) ditures, taxes, plans, objectives, potential synergies, industry wise. There can be no assurance that forward-‐looking state-
activities current as of March 1, 2017. It is information in a sum- trends, construction schedules, construction budgets, and ments will prove to be accurate, as actual results and future
mary form and does not purport to be complete. It is not growth opportunities. OOen but not always, forward-‐looking events could differ materially from those anticipated in such
intended to be relied upon as advice to investors or potential information can be identified by the use of words such as “antici- statements. Accordingly, you should not place undue reliance
investors and does not take into account the investment objec- pate”, “believe”, “expect”, “project”, “estimate”, “likely”, “intend”, on forward-‐looking statements due to the inherent uncertainty
tives, financial situation or needs of any particular investor. “should”, “could”, “may”, “might”, “target”, “plan” and other therein. All forward-‐looking information is expressly qualified in
These should be considered, with or without professional similar expressions or variations (including negative variations) of its entirety by this cautionary statement. Forward-‐looking
advice, when deciding if an investment is appropriate. such words and phrases. Forward-‐ looking information con- information and other information contained herein concerning
tained in this Presentation is based on certain assumptions management’s general expectations concerning the medical
The information contained in this Presentation is derived solely regarding expected growth, results of operations, performance, marijuana industry are based on estimates prepared by man-
from management of BAM and otherwise publicly available industry trends and growth opportunities. agement using data from publicly available industry sources as
third party information and does not purport to be all-‐ well as from market research and industry analysis and on
inclusive or to contain all the information that an investor may While management considers these assumptions to be reason- assumptions based on data and knowledge of this industry
desire to have in evaluating whether or not to make an invest- able, based on information available, they may prove to be incor- which management believes to be reasonable. However, this
ment in BAM. The third party information has not been inde- rect. Forward-‐looking statements involve known and data is inherently imprecise, although generally indicative of
pendently verified. No representation or warranty, express or unknown risks, uncertainties and other factors which may cause relative market positions, market shares and performance
implied, is made or given by or on behalf of BAM or any of its the actual results, performance or achievements of BAM to be characteristics. While management is not aware of any mis-
affiliates, directors, officers or employees as to the accuracy, materially different from any future results, performance or statements regarding any industry data presented herein,
completeness or fairness of the information or opinions con- achievements expressed or implied by the forward-‐looking industry data is subject to change based on various factors.
tained in this Presentation and no responsibility or liability is statements. These risks, uncertainties and other factors include, This Presentation may not be reproduced, further distributed or
accepted by any person for such information or opinions. BAM but are not limited to risks associated with general economic published in whole or in part by any other person. Neither this
does not undertake or agree to update this Presentation aOer conditions; adverse industry events; marketing costs; loss of Presentation nor any copy of it may be taken or transmitted
the date hereof. No person has been authorized to give any markets; future legislative and regulatory developments involving into or distributed in any other jurisdiction which prohibits the
information or make any representations other than those medical marijuana; inability to access sufficient capital from same except in compliance with applicable laws. Any failure to
contained in this Presentation and, if given and/ior made, such internal and external sources, andtior inability to access sufficient comply with this restriction may constitute a violation of appli-
information or representations must not be relied upon as capital on favorable terms; the medical marijuana industry in the cable securities law. Recipients are required to inform them-
having been so authorized. The information and opinions con- USA generally, income tax and regulatory ma]ers; the ability of selves of, and comply with, all such restrictions or prohibitions
tained in this Presentation are provided as at the date of this BAM to implement its business strategies; including facility, and BAM does not accept liability to any person in relation
Presentation. The contents of this Presentation are not to be expansion, within budget and on the schedule currently antici- thereto. The presentation does not constitute an offer to sell or
construed as legal, financial or tax advice. Each prospective pated; competition; crop failure; currency and interest rate the solicitation of an offer to buy securities in any jurisdiction in
investor should contact his, her or its own legal adviser, inde- fluctuations, and the other risks common for a business such as which such offer, solicitation or sale would be unlawful.
pendent financial adviser or tax adviser for legal, financial or tax BAM’s. The foregoing factors are not intended to be exhaustive.
advice. Although BAM has a]empted to identify important factors that
Certain statements in this Presentation may constitute could cause actual actions, events or results to differ materially TM
forward-‐looking information, including future-‐oriented from those described in forward-‐looking statements, there may
financial information and financial outlooks, within the meaning be other factors that cause actions, events or results to differ
of applicable securities laws. Forward-‐looking information may from those anticipated, estimated or intended. Forward-‐looking
relate to BAM’s future outlook and anticipated events or results statements contained herein are made as of the date hereof and BODY and MIND
and may include statements regarding BAM’s financial results, BAM and its directors, officers and employees disclaim any obli-
future financial position, expected growth of cash flows, busi- gation to update any forward-‐looking statements, whether as a
Investment Highlights
Nevada has become a top ‘adult use’ cannabis destination and is
among the fastest growing markets in the world
TM
Limited licensing environment creates ideal operating
conditions in Nevada
Strong brand recognition has enabled BAM to secure shelf BODY and MIND
space in 70% (approx) of state dispensaries
BAM has two major phases of expansion underway to leverage brand,
create economies-of-scale opportunities, and increase profitability
BAM is pursuing out-of-state licensing opportunities which could provide
significant upside for shareholders
3
Achievement Milestones
BaM 2 2
ESTABLISHED A ACHIEVED ONGOING ESTABLISHED SUBMITTED TWO SECURED ADJACENT SECURED TWO
TOP-RATED POSITIVE CASH FLOW LICENSING OUT-OF-STATE LICENSING BUILDING FOR LOCATIONS FOR
BRAND IN NEVADA OPPORTUNITY APPLICATIONS WITH EXPANSION POTENTIAL NEW
IN MONTANA TWO NEW PARTNERSHIP DISPENSARY
GROUPS LICENSES IF AWARDED
2016 Q2 2017 Q2 2017 Q2 2017 Q3 2017 Q4 2017
4
The BaM Advantage
A NEVADA PIONEER HAVING RECEIVED ONE OF THE FIRST NEVADA LICENSES IN 2015
A DIVERSE PRODUCT LINE AND RELATIONSHIPS WITH ALMOST ALL OF NEVADA’S
DISPENSARY OPERATORS
EXTENSIVE BUSINESS AND REAL ESTATE EXPERIENCE
TREMENDOUS GROWTH PROFILE AND A SOLID OPERATIONAL TEAM IN PLACE
PROCESSING MULTIPLE OUT-OF-STATE LICENSING APPLICATIONS WHICH CAN PROVIDE
SIGNIFICANT UPSIDE IF AWARDED
5
Leadership
MANAGEMENT, ADVISORS & BOARD
Robert Hasman Leonard Clough Kevin C. Hooks Dong H. Shim Chris MacLeod
CEO of Nevada Medical Group CEO of Body & Mind Inc. Director Director Director
(a Body & Mind subsidiary) & Director & Director
. Managing Director, Sperry Van Ness, . Partner of Cooper Clough Asset . Founder and former CEO of Catalyst .Mr. Shim is a Chartered. . Chris MacLeod is a Partner in
a NV commercial real estate Mgmt. at RBC for 13 years. RX, a pharmacy benefit manager. Professional Accountant in Canada Cambridge LLP.
brokerage firm. . Over 20 years of capital markets . In 2001, Catalyst RX went public on and a Registered Certified Public . Focuses on complex business
. Involved in the origination and experience. Nasdaq under CRTX. Accountant in the state of Illinois, litigation including cross-border
syndication of more than $1b of . President of Toro Pacific . By 2012, CHSI revenues exceeded USA. dispute resolution, multi-jurisdictional
commercial real estate acquisitions. Management Inc. USD $5B and the company joined . Currently the President and litigation and private international law.
. Over 10 years of experience in . Former investment manager, Fortune 500. founder of both SHIM Accounting . Frequent speaker and writer on
business development and Tyee Growth Fund Ltd. . Later in 2012, the company achieved Corporation and Golden Tree topics relevant to cross-border
operations. . Graduate, University of British over $5B in sales and was sold for Capital Corp. litigation, conflict of laws and private
. Pioneer in the Nevada MJ market. Columbia. usd $4.4B. . Serves as the CFO for International international law.
. Bachelor of Arts, Ohio State . Bachelor of science, Ohio State Private Vault Inc. and as a director . Has appeared before all levels of
University. University. of National Issuer Services Ltd., a Court in the Province of Ontario,
. Board certified pharmacist. transfer agent company based in including the Ontario Court of Appeal.
British Columbia, Canada.
Justin Chorbagian Chuck Rifici
Advisor Advisor
. Co-owner of the largest chain of . Chairman and CEO, Nesta Holding
privately owned hydroponic shops in Ltd.
Canada. . Founder and former CEO of Tweed,
. Co-creating a group of companies that now Canopy Growth.
include Green Planet Nutrients and . Former CFO of Liberal party of
Green Planet Wholesale. Canada.
. His companies, which originated in . Marijuana pioneer in Canada.
Canada, have expanded and now . Chairman & CEO, Cannabis Wheaton.
operate in the UK, Australia, and North
America.
6
. Considered the go-to expert for
cannabis consulting.
Recreational in INTERNATIONALLY
America DECRIMINALIZED
MAY 2017
MEDICAL MARIJUANA
ISRAEL
AUSTRALIA
FEBRUARY 2017
Washington GERMANY
Oregon BRITAIN
PORTUGAL
SOME LEVEL OF SPAIN
TM
Colorado
LEGALIZATION OR
DECRIMINALIZATION
FINLAND
BODY and MIND
FRANCE
ITALY
California
Nevada
MACEDONIA
NETHERLANDS
Alaska
7
Opportunity
PROJECTED HYPER-GROWTH IN NEVADA MARKET
$200M 51%
Since Colorado legalized recre- Nevada’s MJ market is
ational marijuana in 2014, the projecting a higher tra-
industry has seen tremendous jectory at an annualized
revenue growth. Over USD rate of 51% over the next
$200 MILLION has been few years.
returned to Colorado taxpayers
to fund social programs.
Monthly Marijuana Sales in COLORADO Projected Annual Marijuana Sales in NEVADA
In millions of USD In millions of USD
100 750. ANTICIPATED
RECREATIONAL USE
REGULATION IN FORCE
$632M
80 600.
60 450.
40 300.
150.
$122M
20
0 0.
Dec-14 May-15 Oct-15 Mar-16 Aug-16 Jan-17 2016 2017 2018 2019 2020
Recreational marijuana sales Medical marijuana sales
8
Facilities
STATE-OF-THE-ART TECHNOLOGY
CULTIVATION PRODUCTION KITCHEN & LABORATORY
CENTER PACKAGING
EXISTING FACILITY LARGE INVESTMENT INTO NEW PRODUCT TESTING ALL PRODUCT TESTING
~20,000 SQ. FEET PRODUCTION EQUIPMENT OCCURS IN THE KITCHEN OCCURS PRIOR TO SHIPMENT
ADJACENT BUILDING BHO EXTRACTION FACILITY PACKAGING OCCURS IN DEVELOPING NEW STRAINS
~30,000 SQ. FEET HOUSE
(UNDER REZONING)
9
Awards
LV HEMPFEST CUP 2016 THE PRODUCER’S CUP
CONCENTRATE PROFESSIONAL
CHAMPION
THE GROWER’S CUP FLOWER
PROFESSIONAL CHAMPION
BEST INDICA
SIN MINT COOKIES
BEST FULL MELT
TANGERINE POWER
BEST HYBRID
SIN VALLEY OG
10BaM Brand TOPICALS THC AND CBD INFUSED PRODUCTS OIL TIPS BaM EDIBLES 11
Products
SEQUIOA SINMINT COOKIES WHITE NIGHTMARE
STRAWBERRY
AWARD-WINNING STRAIN PERFECTLY BALANCED,
WITH GREAT TASTE AND UPLIFTING STRAIN FOR
• A WELL BALANCED,
HIGH POTENCY DAYTIME USE
ENERGIZING SATIVA WITH
INTENSE FLAVORS.
• NAMED A HIGH TIMES TOP • SATIVA-DOMINATE,
• SEQUOIA STRAWBERRY
TEN STRAIN OF 2014 HIGH-POTENCY HYBRID WITH
IS A CROSS BETWEEN
• HIGH-THC GIRL SCOUT EUPHORIC EFFECTS
WHITESTRAWBERRY AND
COOKIE HYBRID • SUPER-DENSE FLOWERS
WHITENIGHTMARE
• BEAUTIFUL DEEP PURPLE CARRY THE AROMA OF
BUD SATURATED WITH BLUEBERRIES AND CANDY
70% SATIVA
CRYSTALS • CAN HELP BOOST
30% INDICA
• YOU MAY EXPERIENCE A PRODUCTIVITY, ENERGY AND
SENSE OF HEIGHTENED FOCUS
PERSPECTIVE WITH DEEP
RELAXATION
12Future Plans
PHASE 1 + 2
1,600 LBS 20,000 SQFT $4M US
ANNUAL PRODUCTION APPROXIMATE CAPACITY ANNUAL REVENUE
PHASE 3 + 4 and
7,000 LBS 50,000 SQFT $35M US
ANNUAL PRODUCTION APPROXIMATE CAPACITY OF THE ANNUAL REVENUE
CULTIVATION AND PRODUCTION
FACILITIES
13Projections
FINANCIAL PROJECTIONS
REVENUE (USD) PRE TAX PROFIT (USD)
In millions In millions
40 10
8
30
6
20
4
10
2
0 0
2017 2018 2019 2020 2021 2017 2018 2019 2020 2021
ASSUMPTIONS
FLOWER PRICES MODELLED AT $2250 AND DECLINING TO $1750
TWO RETAIL LOCATIONS - OPENING IN Q4 2018
INCORPORATES PRODUCTION FROM TWO EXISTING FACILITIES
DOES NOT INCLUDE ANY FURTHER M&A
DOES NOT INCLUDE ANY ADDITIONAL LICENSES THAT HAVE BEEN APPLIED FOR.
14Future Milestones
STATE OF ARKANSAS
LICENSE
ZONING FOR ANNOUNCEMENT
COMMENCE
PEPPER LANE NORTH ENGINEERING AND COMMENCE RENOVATION
CONSTRUCTION FOR NEW DISPENSARY
OHIO STATE TIER 1 STATE OF NEVADA FOR NEW FACILITY LICENSE AT PEPPER
LICENSE ANNOUNCEMENT DISPENSARY LICENSE LANE NORTH (IF AWARDED)
(IF AWARDED) ANNOUNCEMENT
Q4 Q1 Q2 Q3 Q4
18
18
18
17
18
18
20
0
20
0
0
20
12
2
12
2
3
0,
4
Q
Q
Q
Q
Q
3
V.
O
N
15Value Creation
THIRD PARTY BaM has built additional capacity within its’ extraction infrastructure
EXTRACTION to handle third party flower for those without a production license
or those unwilling to make the capital investment.
NEW PRODUCTS BaM is an innovator in its kitchen and oil products, like THC-infused
beef jerky, gummy slices and dried fruits.
PRODUCT Due to the distribution network that BaM has developed in Nevada,
LICENSING BaM is a natural fit for others to partner with for distribution in Nevada.
ACQUISITIONS Many licensee’s have faced start up issues or have tried to expand to quickly and
have sustained losses. BaM is focused on acquiring companies that can be easily
turned around and contribute to the bottom line.
16Value Creation
OUT-OF-STATE OPPORTUNITIES
IN STATES THAT ARE ACCEPTING APPLICATIONS FOR NEW LICENCES, THE PROCESS IS GETTING
INCREASINGLY DIFFICULT DUE TO THE HIGH BARRIERS OF ENTRY
Merit Based Approach Less Licenses Higher Value
Under a points-based-system, New state’s are awarding less Less licenses concentrated in
a candidate without licenses with immediate build fewer hands means higher value
operations and sales experi- out requirements thereby re- of the underlying licenses. BaM
ence, will not score high ducing one’s ability to specu- see’s huge potential in new
enough to be awarded a new late on licenses. The intent is licenses through application as
license regardless of access to to avoid smaller players. the costs are low but the reward
capital. Means less eligible could be significant.
candidates.
17Market
DEMOGRAPHICS
TARGET MARKET THROUGH 1) ONLINE PRESENCE; 2) PUBLIC AWARENESS AND MARKET BRAND AND PRODUCTS;
AND 3) ACQUISITIONS AND ADDITIONAL LICENSING, UTILIZING BAM PLATFORM AND CREATING SYNERGIES
MEDICAL SECONDARY MEDICAL RECREATIONAL
26K
Estimated number
1.5M
Out-of-state Americans
234M
of users aged 21-55 Estimated number of
with medical marijuana cards. Americans and tourists,
in Nevada Nevada honors reciprocity worldwide
Source: UNODC, ProCon, and research by Nevada Medical Group
18Structure
CURRENT SHARES OUTSTANDING 47,066,799
(CSE: BAMM)
WARRANTS @ $0.90 (2 YR) 9,102,141
STRONG CAPITAL
WARRANTS @ $0.66 (2 YR) 367,293 BASE AND
SHARES OUTSTANDING (F/D) 56,536,233
LOW RELATIVE
MARKET CAPITALIZATION (F/D)
FULLY DILUTED @ CAD $0.66
$37,300,000 VALUATION
CASH F/D $10,700,000
MANAGEMENT OWNERSHIP 25%
19Summary
PLATFORM FOR EXPANSION IN PLACE & OUT OF STATE OPPORTUNITIES PLENTIFUL FOR BaM
SIGNIFICANT EBITDA GROWTH EXPECTED AS STATE’S MOVE TOWARD MERIT BASED
APPLICATION PROCESSES
EXPANSION INITIATIVES IN PLACE INCLUDING
NEW TAXATION FULLY ALLOCATED TO AILING
SECOND FACILITY, THIRD PARTY EXTRACTION,
NEVADA SCHOOL SYSTEM IN 2018 BUDGET
DISPENSARIES, NEW PRODUCTS, LICENSING
NEVADA MJ RIPE FOR CONSOLIDATION AND BaM MANAGEMENT, GROWERS, BOARD OF DIRECTORS
FEW NV PLAYERS HAVE BANDWIDTH AND FINANCIERS ARE INDUSTRY RESPECTED
20TM
BODY and MIND
INVESTOR CONTACT
Justin Rasekh
justin@altuscapital.ca
778-998-4235You can also read
