KEEPERS OF THE CRAFT - (CSE:CRFT) Prepared July 2021 - BC Craft Supply Co.
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(CSE:CRFT) Prepared July 2021 www.bccraftsupplyco.ca | info@bccraftsupplyco.com I N V E S T O R P R E S E N T A T I O N K E E P E R S O F T H E C R A F T
BC Craft Supply Co. Ltd. (Formerly, Pasha Brands Ltd.) (the “Company” or “BC Craft”) was incorporated in the province of British Columbia on April 5, 2018. BC Craft Supply Co Ltd is a diversified wellness company advancing cannabinoid and psychedelic innovation and psychotherapy. Disclaimer. The Company offers a reimagined vision for craft markets through collaboration, expertise, and adaptation. It’s operations include: • CRFT a curator and aggregator of craft cannabis, providing advocacy and access for premium small-batch growers to Canada’s cannabis market; • Medcann Health Products - a cultivation and processing facility in Chemainus BC. • Feelwell Brands, a successful cannabinoid brand house licensed in the state of California; and • AVA Pathways a pre-clinical biotech company focused on neuroplasticity and mental health applications using psilocybin and compounds derived from mushrooms. This presentation provides an overview of the business of BC Craft Supply Co Ltd. (“BC Craft” or the “Company”). This presentation has been prepared for informational purposes only to be provided to shareholders of the Company. No representation, warranty or undertaking, express or implied, is made and no responsibility or liability is accepted by the Company, as to the accuracy or completeness of the information contained herein. This document is not, and under no circumstances is to be construed as, an advertisement or a public offering of the securities of the Company in Canada. No securities commission or similar authority in Canada has reviewed or in any way passed upon this document or the merits of the securities in the Company and any representation to the contrary is an offence. This presentation contains “forward-looking information”, within the meaning of applicable securities laws. This forward-looking information is based on certain assumptions and expectations of management in light of currently available information and historical data, which are subject to significant risks and uncertainties. If underlying assumptions prove inaccurate or risks or uncertainties materialize, actual results may differ materially from those anticipated. While management believes its assumptions and expectations are reasonable, readers of this presentation are strongly cautioned that there can be no assurance that BC Craft will achieve the results predicted, within the periods predicted or at all. To the extent any forward-looking information in this presentation constitutes “future-oriented financial information” or “financial outlooks” within the meaning of applicable securities laws, such information is being provided to demonstrate the potential of BC Craft and the reader is cautioned that this information may not be appropriate for any other purpose and the reader should not place undue reliance on such future-oriented financial information and financial outlooks. Actual results may differ materially from what the Company currently expects and what is projected in this document. Such information is presented for illustrative purposes only. When used herein, the words “anticipate, “estimate,” “plan,” “believe,” “expect,” “forecast,” “project,” or variations or symbols of such words and similar expressions are intended to identify forward-looking information. Factors that may cause actual results to differ materially from those anticipated include, but are not limited to: (i) the Company’s expectations regarding revenues, expenses and anticipated costs; (ii) future production costs and capacity; (iii) actual performance of the Company’s business and operations; (iv) sufficient working capital and the Company’s ability to raise additional financing going forward; (vi) industry growth trends, including with respect to projected and actual industry sales; (vii) the legalization and ongoing regulation of cannabis for recreational use in Canada and the United States, including federal, provincial and state regulations pertaining thereto and the timing related thereof and the Company’s intentions to participate in such markets; (viii) the impact of general business and economic conditions; and (ix) whether the key personnel will continue their employment with the Company. All of the forward-looking information in this presentation is qualified by these cautionary statements and we cannot assure you that the results or developments anticipated by management will be realized or even if realized, will have the expected consequences to, or effects on, us or our business, prospects, financial condition, results of operations or cash flows. Readers are cautioned not to place undue reliance on the forward- looking information in making any investment decision. Forward-looking information made in this presentation applies only as of the date of this presentation. While we may elect to update forward-looking statements from time to time, we specifically disclaim any obligation to do so, even in the light of new information or future events, unless otherwise required by applicable securities laws. 1 Keepers of the craft.
What is CRFT? We are a diversified wellness company advancing cannabinoid and psychedelic innovation and psychotherapy. Canadian CPG Canadian Processing U.S. CPG Psychedelics a curator and aggregator of craft a cultivation and processing facility a successful brand house licensed a pre-clinical biotech company cannabis, providing advocacy and in BC, currently undergoing in the state of California, focused focused on neuroplasticity and access for premium small-batch upgrades to access both Canadian on innovative, micro-dosed and mental health applications using growers to Canada’s cannabis medical and recreational cannabis herbal infused cannabis products psilocybin and compounds derived markets. markets. and formulations. from mushrooms. 2 Keepers of the craft.
Strategic Business World Class Brands Corporate Advantages • Unique agency-based model, driving margin and scale advantages. and Facilities • 10 winning brands, cross sector, with existing and proven formulations and IP. highlights. • Multi-revenue generating assets: processing & tolling, licensing and IP, D2C eCommerce. • Vertically integrated supply chain, driving • 10,000 sq ft cannabis cultivation and processing facility; providing access and sales to recreational and medical cannabis markets. transparency in manufacturing, and • Psychedelic research and innovation, production cost advantages. focused on neuroplasticity and alternative A reimagined vision for craft markets ways to treat debilitating medical • Digital powerhouse, supported by best in conditions, through the use of proprietary through collaboration, expertise and class industry titans. formulations, and compounds from mushrooms. adaptation. Exceptional Cross Veteran Team of Functional Network Change Agents • Robust network of legacy craft growers • Proven team of industry veterans ready to (cannabis and psychedelics) providing tackle major social issues and offer new access to unique, high margin cultivars ideas for wide-scale change. and strains. • Powerful social cause, fighting for fair • Proven multi-disciplinary partners in access and distribution for craft growers supply, service, marketing, and in today’s wellness markets. distribution. • International consortium of elite collages and investors, connecting cannabis and psychedelic markets in Canada, USA, and beyond. • Winning sales and growth opportunities through existing B2B relationships. 3 Keepers of the craft.
A new era North American brand house. United States Canada Cannabis Cannabis Products THC Free CBD Products • Expansive product range • Focused product range • Pre-rolls, vaporizers, tablets, drinks, edibles, Products • Pre-rolled cannabis topicals • Focused product range • CPG toll processing (Medcann) • Cannabis/CBD topicals Strategy Psychedelics Strategy • CPG consumer set Strategy • Legacy consumer set Strategy • Mass production, large scale facility partners • CPG consumer set • Craft production, limited scale • Research and Development • Cost competitive manufacturing • Cost competitive manufacturing • Cost competitive manufacturing • Product formulations • Recreational cannabis markets • National CBD Opportunity (USA) • Recreational and medical cannabis markets • Licensure 4 Keepers of the craft.
Ineffective market implementation. Thriving illicit market Lack of diversity Amnesty ineffective The average price of legal Company ownership and Of all estimated cannabis cannabis in Canada is nearly representation is nearly convictions, approximately $4.50 more per gram 70% male dominated 0.05% of those convicted than cannabis purchased and underrepresented by have been granted amnesty from an illicit source. black and indigenous people by Canadian courts. at less than 2%. This results in a lack of market access, sales & distribution, and competitiveness. 5 Source: Statistics Canada, New York Times, CBC News Keepers of the craft.
The need for change agents. Bridging the gap between commerce and art, we are. committed to fostering a mutually beneficial relationship driving business success and enhancing local communities. • Through advocation, support and fair access, CRFT will ensure the long run viability of craft industries everywhere; helping to eliminate the pricing disparity between illicit and legal cannabis. KEEPERS OF THE CRAFT • When craft wins, we all win – consumers benefit, local communities grow, artistic expression thrives, and society at large flourishes. We’re not about eliminating the large companies, we’re about fair representation, and getting a seat at the table. At our table, our board is 66% female led, and over 70% of our staff are female. • We are advocates on both sides of the aisle, pushing for amnesty and a correction of historical injustices in the cannabis industry. In doing so, we can bring legacy growers out of the grey market and create an industry we can all be proud of, but also identify and resonate with. 6 Keepers of the craft.
Stronger local communities through enduring craft products. • Bridging the gap between commerce and art, CRFT is committed to fostering a mutually beneficial relationship driving business success and enhancing local communities. • 3.5g and 7g flowers of curated legacy cultivars from Canada’s premium craft growers. • Available in Ontario, BC, and Alberta. • Read more: https://bccraftsupplyco.ca • Connect with us: @bccraftsupplyco 7 Keepers of the craft.
Canada’s OG legacy pre- roll has been called out of hibernation. • Grizzlers is back with their best-selling Indica pre-rolls. • Staying true to their roots, we continue to celebrate craft quality and flavour – and only use hang dried,hand trimmed, and hand packed cannabis. • Available in Ontario, BC, and Alberta. • Read more: www.grizzlers.com • Connect with us: @grizzlersoffical 8 Keepers of the craft.
Providing smokers a convenient, premium cannabis experience. • Roll Model’s strain-specific pre-rolls feature only premium craft flowers from the best growers out of British Columbia. • Featuring lab tested, all natural craft cannabis available in three-packs or single rolls. • Read more: https://rollmodelcannabis.com • Connect with us: @rollmodelcannabis 9 Keepers of the craft.
Discover the many benefits of plant based healing. • Award-winning and innovative cannabis wellness and lifestyle brand created by Tessa Serra. • The company brings a youthful, modern, and scientific perspective to wellbeing through their premium artisan topical products. • Read more: https://earthdragonorganics.com • Connect with us: @earthdragonorganics 10 Keepers of the craft.
Clix brings people to new highs with premium, innovative herbal blended cannabis products. Clix contributes to the growing global positive perception of cannabis through their focus on wellness, precise and discreet delivery systems, strategic partnerships, innovative product development and distribution. Clix has established profitable partnerships with: • A licensed manufacturer in California • Sun & Earth certified cannabis cultivators • Distribution from Nabis, a data-driven, analytics-focused distribution company • A cutting edge branding team that merges wellness with contemporary design • Read more: https://lifeclix.com • Connect with us: @lifeclix 11 Keepers of the craft.
Next generation whole flower Heat-Not-Burn designed to create an elevated social experience. • The pre-filled flower sticks and the timed 3 minute session gives you a controlled lift you can count on. No grinding, packing, or cleaning. • All flower sticks are biodegradable and compostable using rainforest safe paper • Only whole flower and whole herb in every stick delivering the full entourage effect. No trim, chemicals, or oils. • Heat-Not-Burn technology delivers minimal vapor and a full terpene taste profile with no burning, charring, smoke, ash, and minimal lingering odor. • Read more: https://www.omura.com/ • Connect with us: @omura 12 Keepers of the craft.
Committed to the future of artisanal craft plant-based medicine. • Ava Pathways Inc. is an R&D-based company that aims to perform preclinical and clinical studies to revolutionize the evidence-based treatment of depression and substance use disorders through the power of neuroplasticity, the ability of the human brain to rewire and heal itself. • A state of heightened neuroplasticity can be unlocked using psychoactive pharmaceutical and nutraceutical formulations. • With a strong research program in place, Ava Pathways Inc. will establish the safety and efficacy of active compounds before bringing such life-saving medicines to the clinic. 14 Keepers of the craft.
$36B $34.29 $31.71 $29.34 The growing $27B $25.14 $27.16 mushroom market. $23.29 $21.57 $19.98 $18.54 $18B The global functional food market is expected to reach $34.3 Billion USD by 2024, registering a CAGR of 8.04% during the forecast period (2019-2024). $9B The market studied is expected to experience huge demand for natural and synthetic psychedelic compounds, formulations and treatment protocols and this is why Ava Pathways Inc. has decided to pursue these avenues. $0B 2016 2017 2018 2019 2020 2021 2022 2023 2024 15 Keepers of the craft.
State of the art facilities. KEEPERS OF THE CRAFT With approximately 10,000 square feet of space, on an acre of land on Vancouver Island, Medcann was granted its processing, cultivation and sales license by Health Canada in March 2019. Medcann provides CRFT with an immediate pathway to bring craft cannabis products to market under Health Canada's new micro-cultivation licence category. The facility will test, process and package high quality craft flower, and package this flower for distribution throughout Canada. • Cultivation • Processing • Packaging • Distribution 16 Keepers of the craft.
Board of directors. CEO + DIRECTOR CFO + DIRECTOR DIRECTOR MATTHEW WATTERS REGAN McGRATH DR. BRIGITTE SIMONS A serial entrepreneur, Matthew Watters brings over 20 years Regan McGrath is the founding partner and CEO of Metrics Brigitte has studied digital technology and information of executive leadership experience in the Cannabis, Consumer Chartered Professional Accounting. Regan holds her Bachelor of Arts management within the regulatory markets. She leads a large team Packaged Goods, and Technology sectors. With an acute focus from McGill University, CPA CA from the Canadian Institute of of cross-functional associates in quality management, IT, and client on brand creation and distribution, Matt has a passion for story Chartered Accountants (now CPA), and has most recently completed services. Together, developing novel tools for supply chain telling, and the resolve to bring products to market. her Certification in Fintech and the Future of Commerce from MIT. management, record keeping, and regulatory drug administration. 17 Keepers of the craft.
Management team. MAREN HANSEN GARETT SENEZ CHANTEL JONAS JUSTIN GURINSKAS CHIEF CORPORATE OFFICER CHIEF MARKETING OFFICER DIRECTOR OF OPERATIONS CREATIVE DIRECTOR With over a decade of leadership experience in a A dynamic leader, Garett brings a With over 20 years experience in leadership, Over eight years as a creative pioneer in the variety of industries, Maren has previously held competitive edge and outstanding brand business development, and administration, Canadian cannabis industry, Justin has worked to positions within large multinational corporations communications expertise to global Chantel brings a wealth of actionable develop some of the most recognizable brands in and small start-ups in emerging sectors alike. companies looking to scale. experience to BC Craft Supply Co. the country’s most prolific emerging market. 18 Keepers of the craft.
Evolving the game. 1Foster positive Canadian fundamentals •Build national distribution with Grizzlers •Expand market access for craft 2 Fill the portfolio gap and scale in USA •Launch tier one brand partnership with Omura •Drive the brand advantage in USA cannabis with Clix 3 Innovate and disrupt •Secure licensure with Ava Pathways •Lead with science and IP on growers with CRFT •Increase CBD B2C eCommerce psychedelics in Canada capability with Earth Dragon •Expand and automate distribution across all channels 19 Keepers of the craft.
Financial overview. High margin business, significant room to run in multiple markets. 2021 2022 2023 Revenue $7,376,168 $19,314,517 $32,695,767 Gross Margin 16.1% 29.7% 35.8% EBITDA ($3,098,949) ($67,778) $4,389,551 Cash from ($2,872,412) $216,405 $3,577,283 operations 20 Keepers of the craft.
Capitalization. Returning to growth through collaboration, expertise, and adaptation. Financials (As of May 28 2021) CSE Index CSE Composite Currency CAD Shares Outstanding 189,318,854 Recent Share Price 0.045 Market Cap $8,519,000 Beta (5Y Monthly) N/A EPS (TTM) -0.209 Average Volume 580,000 21 Keepers of the craft.
Thank you. BC Craft Supply Co. LTD. SUITE 810 – 749 West Pender Street Vancouver, British Columbia V6C 1H2 info@bccraftsupplyco.com @bccraftsupplyco
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