CBD YOU CAN TRUST - SEED TO CONSUMER - CSE:SWEL - Sativa Wellness Group
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DISCLAIMER This confidential presentation (together with the investment activity may expose an individual to a significant representatives nor any other person accepts any liability forward-looking statement, whether as a result of new accompanying oral presentation, “Presentation”) is being risk of losing all of the property or other assets invested. whatsoever for any errors, omissions or inaccuracies in such information, future developments or otherwise, except as provided to you (the “Recipient”) by Sativa Wellness Group Whilst the Presentation has been prepared in good faith, no information or opinions or for any loss, cost or damage required by applicable law or regulation. The Presentation Inc. (the “Company”) for information purposes only. This representation or warranty, express or implied, is given by or suffered or incurred howsoever arising, directly or indirectly, may have been sent to you in an electronic form. 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The on this Presentation for the purpose of engaging in any members, directors, officers, employees, agents or Company is under no obligation to update or review any 2 / 30 CSE:SWEL
THE #1 CONSUMER While other companies CONCERN IS claim to "control the TRUST AND supply chain," Sativa owns the entire supply SAFETY IN THEIR chain. CBD PRODUCTS THE SATIVA DIFFERENCE 3 / 30 CSE:SWEL
THE SATIVA DIFFERENCE SEED TO CONSUMER INTEGRATION Extraction Proprietary extraction Manufacturing Sales Channels techniques that set the State of the art product Retail and wholesale standard for quality. development and white channels designed for labeling services. today's fast evolving consumer expectations. Cultivation Quality Control Brands By far the largest hemp The UK’s premier testing A portfolio of unique cultivator in Poland and one facility for CBD and hemp- brands tailored to key of the largest in Europe. based products. consumer demographics. 4 / 30 CSE:SWEL
3 out of 4 consumers report that CBD use has positively impacted their lives while 65% of current CBD users are likely to buy CBD again in the next 6 months. MARKET OPPORTUNITY THE EUROPEAN CBD 16% of Europeans ages 18 and over have tried CBD MARKET IS EXPECTED 18% of non-consumers report TO GROW 400% BY that they are likely to try CBD in the next 6 months 2023 WITH A TOTAL Source: www.healtheuropa.eu/applying-data-address-europes-burgeoning-cbd-market/98012/ VALUE OF $1.7 BILLION Non-consumers list factors like product quality and being able to ask for advice on products among the top reasons influencing their potential CBD purchases. Source: www.brightfieldgroup.com/press- releases/europe-cbd-market-through-2023 More than half (55%) of the EU’s general population is interested in learning more about CBD 5 / 30
Recent FDA product testing showed that only 45% of products contained the SAFETY AND TRUST amount of CBD as advertised, and 49% of all products tested had higher A BOOMING than allowable levels of THC. Even more surprising A low barrier of entry has led to over 1,000 retail UNREGULATED was that many brands contained no CBD brands in the CBD space. Many of them formulate in INDUSTRY whatsoever, while some others also tested positive kitchens, garages and basements and have little for toxic substances. or no product control. “FDA WARNS 15 COMPANIES “WHAT'S IN YOUR CBD? “CBD LABELING WHAT “FEARS TOXIC CANNABIS FOR ILLEGALLY SELLING BUYER BEWARE” YOU SEE IS NOT ALWAYS POLLUTED IN CHINA COULD VARIOUS CBD PRODUCTS” WHAT YOU GET” FLOOD UK SEED MARKET” Read Article Read Article Read Article Read Article 6 / 30 CSE:SWEL
SAFETY AND TRUST Complete control of the entire state-of-the-art cannabis testing THE SATIVA supply chain from seed to consumer laboratories, established brands, is the only way to produce consistent, and existing wholesale and retail ANSWER high-quality products. With the cultivation and extraction of all sales channels Sativa Wellness is well-positioned to thrive in a cannabinoids, fully operational mature, more regulated market. Complete traceability of all All processes performed All products thoroughly cannabinoids from seed to in certified, safe, state-of- laboratory tested for consumer the-art facilities consistency, purity and safety Pending government legislation on labelling and product testing will reduce the number of brands significantly. 7 / 30 CSE:SWEL
CULTIVATION IT STARTS WITH A SEED Current Unregulated Industry The Sativa Difference Hemp modified seeds, fertilizers, Hemp grown exclusively on and pesticides in untested soil. certified organic land tested to Hemp biomass with illegal THC be free of heavy metals, levels, pesticides, and heavy pesticides, and within legal THC metals make it in to the limits. production cycle and onto the Testing of biomass in certified shelves. laboratories during growth and Recent testing has shown "most after harvest. of the cultivars and biomass Tracking of biomass through grown using most of the chain of custody from our fields varieties that we're currently to consumers' homes. Sativa is ahead of the using in the U.S. would no longer expected global be defined as hemp." agriculture testing and compliance standards. 8 / 30 CSE:SWEL
EXTRACTION EXTRACTING PURE EXCELLENCE Current Unregulated Industry The Sativa Difference Sativa is ahead of the anticipated global legislation on certification Many small and sizeable Initial extraction using grain and health requirements for unlicensed extraction facilities alcohol in a licensed, inspected cannabinoid extraction facilities. are using carcinogenic solvents facility adhering to food safety as their primary method, standards under Hazard Analysis including Butane and Benzene. and Critical Control Point (HACCP) Unregulated and unlicensed certification. extraction facilities do not Tracking and laboratory testing of mandate mandatory product the product in every step of the testing throughout the extraction process from biomass to finished process and have no certifiable CBD. standard operating procedures. Resulting in a safe, pure, This results in impure, untested consistent product in consumers' products in consumers' hands, hands. which are mislabeled and potentially even dangerous. 9 / 30 CSE:SWEL
TESTING & MANUFACTURING MANUFACTURING & QUALITY CONTROL Current Unregulated Industry The Sativa Difference Of the thousands of brands of Testing of all products for purity, CBD, only a handful make their safety and consistency in our own consumer products, own industry-recognized, many smaller players mix and certified laboratory, PhytoVista. bottle in non-sterile kitchen, State-of-the-art food-safe garages and basements with bottling facility which formulates no required testing. Sativa brands as well as Only a few CBD providers provides white-label services to laboratory test their finished other brands. products before selling to an unsuspecting consumer. Sativa is ahead of the anticipated Less than 50% of industry global legislation on testing and health products provide what is requirements for a Cannabinoid promised on the label. formulation and packaging facility. 10 / 30 CSE:SWEL
BRANDS BRANDS YOU CAN TRUST Current Unregulated Industry The Sativa Difference A large number of unregulated and Products that meet or exceed current unlicensed products sold through regulations with advanced stage Novel the Internet make illegal health Food licencing (a requirement in many claims about their product. E.U. countries past March 2021) There is still no clear brand Ownership of some of the most leader, while many products recognized brands in Europe with retail have no physical presence and presence and distribution in place. sell online only. Owning the entire supply chain enables High product cost equates to high the lowest possible cost of goods in retail cost, CBD becomes the industry and can be used to price a unaffordable for many consumers. competitive advantage in the marketplace. 11 / 30 CSE:SWEL
WHOLESALE FROM A TRUSTED SOURCE Current Unregulated Industry The Sativa Difference In an unregulated marketplace, Fully compliant cannabis we are seeing untested, impure cultivation and those of bulk CBD sold globally. In Europe approved agricultural partners only CBD from European produce legal and traceable approved hemp is legally wholesale CBD products. allowed to be sold. CBD products that are Many companies are buying compliant with all European Chinese and American bulk CBD laws from seed to consumer and passing it off as European As governments begin to product. enforce current regulations Many larger established Sativa will benefit through its businesses investigate bulk current and ongoing "chain of custody" to assure they compliance are purchasing a compliant product. 12 / 30 CSE:SWEL
RETAIL OWNED SALES CHANNELS Current Unregulated Industry The Sativa Difference Loose and unenforced packaging Consumer confidence in requirements lead to inferior recognized, stable brands with products on the shelf. retail outlets and distribution in Many products have no testing, well-known pharmacies, wellness no return policy, and no stability and retail outlets. as brands come and go daily. Addressing the move towards the preference for online purchasing, we have launched goodbodystore.com. The e- commerce site houses Goodbody and supplementary brands through an innovative "Pillars" structure designed to flow consumers to areas of need. Our flagship store is set up for a franchise model with scalable 13 / 30 CSE:SWEL infrastructure.
2020-2021 CATALYSTS
Sativa, from lessons learned in 2019, has taken a diversified approach to agriculture: 2020-2021 CATALYSTS CULTIVATION • Along with our own certified organic crops, we've • The company expects to have access to 450,000 kilos of partnered with hemp growers high-grade biomass with a throughout Europe. gross CBD content of 225 million grams. • This multipronged approach • The company has to date reduces or eliminates secured more high-quality agricultural risk while assuring biomass than any in Europe at the highest quality certified very competitive pricing. CBD biomass available in Europe. 15 / 30 CSE:SWEL
2020-2021 CATALYSTS Proprietary extraction techniques that set the standard for quality. EXTRACTION • Two completed extraction • We believe Kosher, HACCP, facilities: Origin in Romania and Novel Foods and Nexus in Poland, are each certifications combined with capable of producing up to already low production costs 1000 finished Kilos of CBD will enable us to dictate the monthly. bulk pricing of CBD in Europe. • The company feels combined with its cost of biomass and cost of manufacturing it will be able to produce the lowest cost CBD in Europe. 16 / 30 CSE:SWEL
It is anticipated that mandatory testing will become one of the most significant single global events across the cannabis industry. • Sativa's Phytovista laboratory • Additionally, Sativa has is already a recognized, ownership of its laboratory, so trusted and certified our owned brands receive 2020-2021 CATALYSTS laboratory to the cannabis priority testing enabling us to QUALITY CONTROL industry in Europe. bypass potential backlogs and minimize costs. • With product testing expected to become mandatory, Sativa expects to see a substantial increase in testing enquiries and business. 17 / 30 CSE:SWEL
The majority of brands do not formulate their own products or own anything. They come to companies like Sativa for their product. 2020-2021 CATALYSTS • As Novel Food certification is • Now, with the ability to offer required for many countries beyond March 2021 only a third-party clients all services from seed to consumer in a MANUFACTURING handful of manufacturers like compliant, low-cost, and safe Sativa will be able to offer this manner, the company expects certification. increased manufacturing revenue that generally goes • The company anticipates a hand in hand with its White sharp increase in white label Labelling. orders, as brands will start to seek compliant manufacturers to keep their brands on the shelf. 18 / 30 CSE:SWEL
Product Line Expansion: 2020-2021 CATALYSTS BRANDS • Alongside our recently launched CBD oils with • The product range will also enable us to strengthen our Vitamin D, there are plans wellness offering for to expand the product marketing collateral. range further. • The expansion of the product range will ensure that we have the biggest range on offer to retailers and consumers UK wide. 19 / 30 CSE:SWEL
2020-2021 CATALYSTS SALES CHANNELS Focus: Accelerating Online Growth TRIAL CBD CBD YOU CAN TRUST BRAND STRATEGY PRODUCT/PRICING STRATEGY Testing, CBD Education Case studies, Research Botanicals: Papers, Reviews, Pharmaceuticals Content, Promotions, Target Professional Bodies Wellness/Hemp: Health Audiences, Competitors, clubs, spas Cross Promote AFFILIATES ONLINE SOCIAL OFFLINE SEO/PPC ASSOCIATIONS/ ADVERTISING TO ONLINE EXPERIENTIAL • Affiliate Scheme • Facebook • SEO • Amazon • Programmatic • Instagram • Press ads • Blogger • Like minded target • eBay • Banners • Twitter • Advertorials • PPC market associations • Groupon • Guest Blogging • Snapchat • PR • Display adverts • Forums • Discount Sites • 3rd Party Advertising • Pinterest • Sponsorships • Subscriptions • Events with high • Promo Sites • YouTube • Influencer • OOH footfall • Retargeting • LinkedIn • 3rd party • Email mktg/lists • On pack • Word of mouth 20 / 30 CSE:SWEL
2020-2021 CATALYSTS WHOLESALE Owning the entire supply chain from seed, Sativa will see one of its most significant benefits in the bulk CBD business: • Sativa in unaware of any other • With the lowest costs in all company in the industry that phases of CBD production, the owns the entire supply chain. company feels it will be able They may claim they control it to dictate the pricing of bulk through third-party contracts, CBD and become one of but this is far different than Europe's leading suppliers. outright ownership. 21 / 30 CSE:SWEL
2020-2021 CATALYSTS While concentrating on organic Although the company has growth, the company also concentrated in CBD, it does MERGERS AND intends to leverage its strong position to look at growth have a medical THC handling permit and does grow a ACQUISITIONS through acquisitions. The relatively small amount of company feels the current marijuana for medical research global cannabis economy, purposes. Should the business along with the emergence of opportunity arise and make COVID-19, has created some sense, the company may well-priced opportunities. increase its involvement in the medical marijuana space. 22 / 30 CSE:SWEL
PEER COMPARABLES Company CULTIVATION EXTRACTION LABORATORY MANUFACTURING BRANDS SALES CHANNELS Wholesale Retail Sativa Wellness Dragonfly Charlotte’s Web Mile High Labs Isodiol Endoca CV Science * based on publically available information 23 / 30 CSE:SWEL
LICENCING STRATEGY POCA Industrial Hemp 3 Year Research Research & Proceeds of ISO Accreditation Novel Food Application Low THC ( 0.2%) standard for testing and • Product formulation and • Genotoxicity study calibration laboratories specification • Sub chronic toxicity • Production process study (SOPs) • Stability testing • Absorption, distribution, • History of use and metabolism and proposed usage excretion (ADME) Engaged with: 24 / 30 CSE:SWEL
LEADERSHIP TEAM BOARD OF DIRECTORS HENRY LEES-BUCKLEY JOSEPH COLLIVER JONATHAN WEARING Chief Executive Officer Chief Financial Officer Non-Executive Chairman JASON DUSSAULT ANGUS KERR MARK BLOWER Non-Executive Director, Non-Executive Director Non-Executive Director Corporate Communications ANNE TEW Corporate Secretary 25 / 30 CSE:SWEL
COMBINED SHARE STRUCTURE STILLCANNA Undiluted Issued and Outstanding 111,874,727* Outstanding Warrants (Average strike price $1.40) 15,174,425* Outstanding Options 3,635,000* SATIVA WELLNESS Undiluted Issued and Outstanding 190,720,026 Outstanding Warrants (Average strike price $xx) 10,328,631 (Average strike price = $0.25) Outstanding Options 39,793,377 Fully Diluted Issued & Outstanding 371,526,206 26 / 30 CSE:SWEL
Tel: 02079711255 The Blue Building enquiries@ Stubbs Lane sativawellnessgroup.com Beckington, BA11 6TE CSE:SWEL
APPENDIX
BOARD DIRECTOR BIOS JONATHAN WEARING JOSEPH COLLIVER ANNE TEW ANGUS KERR Non-Executive Chairman CFO Company Secretary Non-Executive Director Jonathan joins as non-Executive Chairman. Joseph is a qualified Chartered Accountant with Anne is an experienced Accountant, Corporate Angus is an adviser and capital markets Jonathan is an experienced, City-based corporate significant commercial finance experience. Before Secretary and professional business mentor with professional with nearly 25 years’ experience in financier, who began his City career after graduating joining Sativa, Joseph was a Director of Consulting at over 30 years’ experience across a range of global banking with specific expertise in strategic from Cambridge University with a M.A. in Kantar Consulting, part of WPP plc (“WPP”) which industries including the NHS, testing laboratories, and equity advisory, M&A and ECM. He has held, Economics. He was Chairman of Ideagen plc on its advises Retail, Sales and Shopper clients on manufacturing and farming. She has successfully inter alia, managing director and management admission to the AIM market in July 2012 until April enhancing their commercial capability and the led projects to achieve business turnaround, roles covering advisory, equity advisory and ECM 2018. Following eight years in Citibank London’s commercial competency of their staff. Prior to this, restructuring, growth and development. Anne has at a number of organisations, including head of corporate banking division, providing debt finance Joseph was Chief Financial Officer and a senior worked as an Executive and Non-Executive Director Mid-Market Advisory and Broking at Credit board member at WPP’s Kantar Futures, which as well as advising board members in financial and Suisse and head of UK ECM Dresdner Kleinwort. for growth and acquisition purposes, he moved to advises its clients on enhancing profit through governance matters as the Corporate Secretary or He has a long track record of advising Citicorp’s London investment bank (CIBL) where, as change and shaping strategy. Here, Joseph was as an external consultant. companies and high-profile individuals in the UK, a Director in the Corporate Finance Department, he accountable for financial performance, managing a USA and Europe. Prior to his career in finance worked on both UK and cross-border transactions. global finance team. From 2012-2015 Joseph was Angus was an Army Officer. Angus has a BA Global Commercial Director of WPP’s Kantar MARK BLOWER (Hons) in Politics and International Relations subsidiary Taylor Nelson Sofres, a $1.8 billion Non-Executive Director from the University of Reading. HENRY LEES-BUCKLEY turnover marketing agency. CEO Mark is an experienced finance professional, having spent the last 20 years actively overseeing the Chief Executive Officer of Sativa Group PLC, is a financial performance of over 70 UK SME’s, with a seasoned corporate executive, with extensive JASON DUSSAULT Non-Executive Director, Corporate Communications particular focus on raising debt and private equity. experience of leading companies in the public He began his career in 1996 at the Investment markets. Henry was previously CEO of Uni-Select A multi-talented man, known for his innovative Banking division of a large UK bank, before joining [TSX:UNS], a Canadian TSX quoted company, with marketing style, and as an accredited artist.A man of NM Rothschild in 2000. He then ran a highly operations in the UK, Canada and the USA. Prior to great accomplishments, he was the star and successful leveraged debt team for another UK that, he was a senior global executive and officer in producer of the Dussault Inc. a City TV reality show. lending institution for five years before starting his the USA and Canada for W.W. Grainger, a US$15 Dussault has received significant media attention on Private Equity career in 2010. During his career to- billion market capitalisation Fortune 500 company. FOX NEWS, Entertainment Tonight, CityTV, ETalk on date he has held a number of board positions, Henry is currently a non-Executive Director of CTV, CBC, MTV, The Wall Street Journal and New across a variety of sectors. NASDAQ-quoted BMC (Building Materials Corp) York Times to name a few. Jason is well versed in [NASDAQ:BMCH] which has sales of US$3.8 billion the capital markets and mining, with decades of and a market capitalisation of US$1.6 billion. Henry experience in the North West Territories diamond holds an MBA from Queens University, Kingston, boom. Over the past several years he has pushed the Ontario and has held numerous executive level global frontier in the Cannabis marketplace as CEO of positions both in North America and the United Stillcanna Inc. a Canadian public company focused Kingdom. on manufacturing CBD in Europe. He raised over 30 million dollars, built large extraction facilities in Romania and Poland, built an experienced global team and negotiated significant strategic alliances 29 / 30 including the merger with Sativa. CSE:SWEL
GOODBODY BOTANICALS PRODUCTS CBD Oil Peppermint Peppermint CBD CBD Oil 5% (500mg) CBD Oil Oil 2.5% (250mg) 20% (2000mg) 15% (1500mg) CBD Oil CBD Soft gels CBD Balm CBD Gummies 10% (1000mg) 30 x 10mg 1% (300mg) 14 x 10mg 30 / 30 CSE:SWEL
GOODBODY WELLNESS VITAMIN D RANGE Orange and Lemons with Vitamin D CBD Oil Peppermint with Vitamin D CBD Oil 31 / 30 CSE:SWEL
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