Investor Presentation January, 2020 - Namaste Technologies
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Investor Presentation
January, 2020
Forward Looking Statement Disclaimer This presentation contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Statements in this presentation that are not representative of historical facts or information or current condition may be deemed to be forward-looking information. Generally, but not always, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as, "may," "will," "should," "could," "would," "expects," "plans," "anticipates," "believes," "estimates," "projects," "predicts," "potential" or "continue" or the negative of those forms or other comparable terms. All of the forward-looking information herein is qualified by this cautionary statement. Forward looking statements in this presentation include, but are not limited to: statements with respect to forward looking statements. Forward-looking statements contained herein are made as of the date of this presentation and are based on assumptions management believed to be reasonable at the time such statements were made, including management's perceptions of future growth, results of operations, operational matters, historical trends, current conditions and expected future developments, as well as other considerations that are believed to be appropriate in the circumstances. While Namaste considers these assumptions to be reasonable based on information currently available to management, there is no assurance that such expectations will prove to be correct. By their nature, forward-looking statements are subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities will not be achieved. A variety of factors, including known and unknown risks, many of which are beyond our control, could cause actual results to differ materially from the forward-looking information in this presentation. Such factors include, without limitation: [risks relating to the Company's ability to execute its business strategy and the benefits realizable therefrom, risks specifically related to the Company's international operations, and risks relating to the market price of the Common Shares. Readers are cautioned that the foregoing list of factors is not exhaustive. Because of these uncertainties, readers should not place undue reliance on the forward-looking statements. No assurances are given as to the future trading price or trading volumes of Namaste's shares, nor as to its financial performance in future financial periods. Except to the extent required by applicable laws, Namaste does not intend to update any of these factors or any of the forward-looking statements contained herein, whether as a result of new information, future event or otherwise.
Namaste highlights
• Global leader – leading online platform for cannabis • Scalable – leverage AI technology to operate the
products, accessories, and responsible education world’s first personalized platform where
consumers can learn, interact, and seamlessly
purchase the right product
• Footprint – Namaste operates the most comprehensive
online marketplace for cannabis products and
accessories in the world; 24 unique websites, 5 • Strong balance sheet - over $49M in cash as at
warehouses, 20 countries, 3 continents August 31st
• Unique business model - working alongside global • Strong competitive advantages in business to
producers (LPs) to connect with their customer base. consumer (“B2C”) and business to business (“B2B”)
We do the heavy lifting, to enable vendors to connect markets
with customers, while benefiting from supply chain
pricing pressure.
Where does Namaste fit?
Namaste AI Health
Customer
Experience
Namaste is a leading online marketplace,
leveraging innovative technology at scale to
deliver a holistic e-commerce experience for
everything Cannabis. Our success is based on
Shopping our customer-centric approach to commercial
and consumer business opportunities.
Experience
Are we a tech company?
Or a cannabis company?
Neither.
We’ve created an incredible online marketplace, targeting a billion dollar market, where
customers enjoy a one-stop-shop approach for everything Cannabis. We are in
Cannabis 1.0 PLUS 2.0 with products available today and more to come!
Pillars to success
Technology Product Distribution CommunityExpanding our cannabis marketplace through advanced technology
AI integration into the Namaste ecosystem
Namaste is in a unique position
within the cannabis domain
In the marketplace setup, we expect to
have access to this data, as we facilitate
the entire customer journey, from
education to consumption, including:
• Content sites
• Telemedicine flow
We expect to deliver a true full- • Cannabis Marketplace
stack marketplace, that has • Delivery system e-comm sites
access to an unbelievable • Uppy journaling app
dataset. When it comes to
machine learning, nothing is
more important than dataTechnology: Namaste AI
There are multiple use
cases we can address
using AI, but let’s take the
most painful one. Which
strain is right for you?How does this relate to cannabis?
You go see a doctor, and tell them you have a really
hard time sleeping.
The doctor reviews your medical history,
examines and interviews you.
She takes the information above, and combines it with:
• Their past experiences with people with similar
symptoms
• Their knowledge of the existing medications
She then prescribes you medication.
After a week you come back and say “Doctor, this made
things even worse. I sleep a bit better now, but I have
To answer this, let’s look at a standard headaches and depression”
doctor’s appointment flow The doctor says “I see. This is a possible side effect for
people with your specific history, let’s try medicine B”
Repeat until solved.But what if….
…this doctor knew your medical …and that of every other patient with a similar
history? profile to you?
…this doctor knew the details about …and they remembered the outcome for each
all the available medications for this time they prescribed that medicine to a
condition? patient ?
…this doctor could connect all that
information within seconds?
How much better do you think their choice of medicine could be?
This is what we’re building with our cannabis A.I.Next step – building the recommender engine
Jane Doe, a patient, indicates that:
• She’s 170 cm tall
• Weighs 55 Kilograms
• She suffers from anxiety and depression
Jane purchases “Kosher Kush” that has the following characteristics:
• Form: dry
• THC level: 29%
• CBN level: 0.5% We believe this flow will
• CBD level: 1% allow us to reduce the
30 minutes post vaporizing, Jane reports: “trial and error” cycle
• Stress relief: 8/10 significantly, and help
• Insomnia relief: 6/10 people get relief for
Case examples • Depression relief: 8/10 their specific condition
much faster!
Based on this flow, user profile and product profile, our
algorithm was able to recommend [strain name here].How is purchasing products from Namaste / CannMart different?
Unbiased information, yielding
Purchase across different brands
personal recommendations
Unique product bundling Bundle different products
Unparalleled shopping Further build a personal
experience recommendation profileOnline products - Cannabis 1.0 CANNABIS ACCESSORIES OTHER PRODUCTS Infused Oils Portable Vaporizers Hemp pet supplements Dried Flower Desktop Vaporizers Multivitamins Glass Tasters Grinders / Storage Skin Care Pre-Rolls Rolling Papers / Trays Cannabis books Shake Bongs / Pipes Odor Control
Products - Cannabis 2.0 ● On October 17, 2019 edibles, extracts and topicals were legalized in Canada. ● Edibles market to be considerably larger than leaf. As one example of our edibles market potential, Namaste has a 49% equity ownership in Choklat, a premium, small-batch chocolate manufacturer with existing sales in Alberta, with a goal to roll out in western Canada and beyond; provides entry into the THC or CBD-infused edibles market in the event proposed regulations are passed.
Distribution B2B - offering larger order to provincial markets where CannMart is able to leverage its compliance expertise, packaging, storage capacity, and value added services. B2C - delivering legal, dependable, quality medicinal cannabis to home, work, hotel, café or private venue free of charge
Namaste has created a Community. Our marketplace integrates high
quality brands, global customers, licensed producers, and a customer-
centric approach to ensure a frictionless experience.
Moreover, Namaste is not a competitor to LPs or brands - we are an enabler.
Customer Obsession 50% of consumers use
marketplaces to conduct
Integrated media
their online transactions
Extreme personalization
Marketplace platform > 67% within the next
5 years.
Network effect ~Forrester ResearchNamaste’s marketplace for consumers To help consumers cut through the noise that surrounds cannabis health and wellness products, and help them better understand their individual needs, enable informed decisions and delivering a frictionless shopping experience.
The Namaste ecosystem
NamasteMD – Integrated telemedicine
application connecting medical clients with
health care practitioners
CannMart – Namaste’s “everything cannabis
store” offering clients a large variety of
products and strains to fill their prescription
needs
Namaste AI – The Uppy app powered by
Namaste’s unique AI engine identifies the
right product and pairing to address specific
Findify – Namaste’s e-commerce machine
medical cannabis requirements
learning application that personalizes online
experiences in real-time; a Shopify Plus
Technology partner
Namaste Vapes – Namaste’s global e-commerce
businesses that sell vaporizers, glassware, and related
accessoriesGlobal Market Opportunity: Just 5%
market share potential is 101.4BN.
(Source: Cannabis Data Forrester Forecast & Accessories Data - BIS Research)How we’re maximizing B2C opportunities
Streamlining the
customer experience
Being available to the customer
wherever they are (WhatsApp,
Facebook Messenger, SMS)
Reliable, quick shipping
We offer the consumer the full spectrum from
start to finish. From the initial consultation
with a nurse practitioner at NamasteMD to
product fulfillment and delivery from
CannMart.How we’re maximizing B2B Business Opportunities Control the supply chain and develop closer relationships with suppliers. According to Health Canada, there are approximately 194 LPs in Canada. There are tens of thousands of growers in California alone, growing more cannabis than the market needs. As global legalization proceeds, this number will only grow, leading to more producers, more products, and more competition. This is the heavy lifting that we take on: ● Attracting qualified leads - using our integrated media strategy ● Compliance requirements - where needed, through our telemedicine, EHR and privacy platform ● CRO - through personalization, elevated UX ● Fulfillment - through our own warehousing network, 3PL or same/next day delivery network ● Customer support - with professional, knowledgeable domain experts
The next biggest opportunity? Cannabis 2.0
CBD
Edibles
Extracts
Topicals
Whatever the Glass
future holds
Diversified product selectionFinancials - Business Drivers
B2C - CannMart
CannMart is a customer centric online
03 marketplace servicing the medical
cannabis marketplace in Canada and
around the world
Vapes
Namaste Vapes and Australian Replacing sales from discontinued
Vaporizers - the Company’s global online businesses
e-commerce businesses that sell
hardware, including vaporizers, B2B - Strategic Partners
glassware and related accessories. 02
01
Product distribution to large customers
including the The Ontario Cannabis
Store, BC Cannabis Stores,
Saskatchewan LGA, CannTx
Products are sold to the adult-use
market through retail storesFinancial Information
Beginning in Q1 2019, the
Company has been steadily
replacing discontinued
businesses with new revenue
channels, thus shifting
reliance away from current
Vape sites.We’ve attracted leaders who have already
accomplished so much.
(Built Global Payments) (+20% Net Revenue, +7% Stock Price, Dethroned Adidas to (Built proprietary technology to leverage AI)
Become #2 Sports Apparel Brand)
($0 - $1.3MM Attributed Social Revenue, +98% Brand (Market leader in unaided brand awareness ) (Apple Design Award winners)
Share of Voice, +1.1MM Social Audience)
(Increased organic sessions on category landing (Mobile UX, 15K+ positive reviews) (UX Design, Biometric UX Testing)
pages by 53%)Management Team
• Meni Morim, Chief Executive Officer
• Meni has 17+ years of software development experience, most of which has been spent
leading teams developing new, bleeding-edge products in Tokyo, NYC, Tel-Aviv, Stockholm,
and for Mamram.
• Annie Holmes, Chief Financial Officer
• Annie brings over 15 years of senior executive experience leading corporations through
complex restructurings, international expansion and large capital transactions, and has held
the chief financial officer position for a number of private companies.
• Dave Giardino, Chief Operating Officer
• Dave has spent the last 14+ years in various roles in the Operations field. He has managed
significant global operations; focusing mainly on distribution, logistics & customer service
where he has been fortunate enough to build amazing teams with some very successful
brands.Board of Directors
• Branden Spikes, Chairman
Mr. Spikes brings twenty years experience working as CIO for Elon Musk at Zip2, PayPal, Tesla, and
SpaceX where he helped pioneer, architect, and build some extraordinary technology.
• Andrew Wilczynski
Mr. Wilczynski is a highly seasoned senior business leader with extensive experience with a wide range
of start-ups and multinational corporations. Mr. Wilczynski had been a partner in PwC’s deals practice
for 20 years and has advised on and led significant financial and operational restructurings and
reorganizations.
• Baran Dilaver
Mr. Dilaver will guide the development of the CannMart online marketplace. He has served as CEO
and COO at public and private companies, launched over a dozen well-known brands worldwide, and is
an expert in cannabis and consumer packaged goods and is a frequent speaker at industry conferences.
• Laurens Feenstra
Mr. Feenstra is currently the Product Manager at Waymo. Prior to this, he worked on some of Google’s
most well-known products such as Android, Search & Chromebooks. He holds degrees in Human-
Computer Interaction and Artificial Intelligence from University of Groningen, Netherlands.
• Meni MorimKey Strategies and Priorities
• We will continue to leverage technology and scale up CannMart.com revenue as new products and
customers are unveiled and join respectively.
• Create a community where consumers can learn about health & wellness products, interact with a variety
of brands and purchase effortlessly.
• Create meaningful partnerships to fuel growth in the marketplace while reducing supply chain costs
• Create and maintain thought leadership in medical and adult-use cannabis and health/wellness
• Strategic expansion into new geographies and demographicsStrategically expand into new
demographics and geographies.
When do we expand to new geographies? When do we expand our demographic?
When medical is legal When there’s rapid, growing demand for a new product
When adult-use is legal with TAM >$1B
When cannabis derivatives are legal (CBD) When said product is legalized
TAM is larger than >$1B.
First new markets and demographics
Australia US Canada Nootropics and
By Q3 2020 CA, CO, NY, MA - Q4 2020 CBD and oils by Dec 2019 supplements
(CBD) Q2 2021 Edibles in Dec 2019 Global, by Q1, 2021
(Adult-Use)Capital Markets Profile
• Common shares outstanding – 323.8 million
• Stock options – 13.5 million (average $1.55 exercise)
50% of consumers use
• Warrants – 30.2 million (average $3.15 exercise) marketplaces to conduct
their online transactions
• Fully diluted – 367.5 million
> 67% within the next
• Market Cap - $123 million 5 years.
• Cash - $49.1 millionNamaste Highlights
• Global leader – leading online platform for cannabis products, accessories, and responsible education
• Footprint – Namaste operates the most comprehensive online marketplace for cannabis products and accessories
in the world; 24 unique websites, 5 warehouses, 20 countries, 3 continents
• Unique business model - working alongside global producers (LPs) to connect with their customer base. We do the
heavy lifting, to enable vendors to connect with customers, while benefiting from supply chain pricing pressure.
• Scalable – leverage AI technology to operate the world’s first personalized platform where consumers can learn,
interact, and seamlessly purchase the right product
• Strong balance sheet - over $49M in cash as at August 31st
• Strong competitive advantages in business to consumer (“B2C”) and business to business (“B2B”) marketsThank You www.namastetechnologies.com ir@namastetechnologies.com
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