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Investor Presentation Sep 2019 CSE: SAFE OTCQB: SAYFF
IR@3sixtysecure.com
DISCLAIMER
Important: you must read the following before continuing. This document is being made available by Certain of the information contained in this presentation concerning industry trends and
3|Sixty to current and prospective investors for general informational purposes only. This presentation performance is based upon or derived from information provided by third-party consultants,
is not, and under no circumstances is to be construed as, a prospectus, or advertisement or a public other industry sources and our research. 3|Sixty believes such information is accurate and that
offering of securities of 3|Sixty in Canada, the United States or any other jurisdiction. No securities the sources from which it has been obtained are reliable. However, 3|Sixty cannot guarantee
commission or similar authority of Canada, the United States or any other jurisdiction has reviewed or the accuracy of such information and has not independently verified the assumption upon which
in any way passed upon this document, and any representation to the contrary is an offence. Current projections of future trends and performance are based.
and prospective investors should not assume that this document is complete and should conduct their
Statements containing forward-looking information are made as of the date of this presentation.
own analysis and investigation of 3|Sixty and consult with their own financial, legal, tax and other
business advisors before investing in 3|Sixty. Nothing contained herein is, or should be relied on as, a Cautionary note regarding issuers with U.S. cannabis-related activities. Cannabis is a
promise or representation as to the future performance of 3|Sixty. Unless otherwise noted, all Schedule I controlled substance under the U.S. Controlled Substances Act and is illegal under
information contained herein is provided as of the date hereof and is subject to change without notice. U.S. federal law, the laws of certain U.S. states and many foreign jurisdictions. Even in those
U.S. states where cannabis has been legalized or decriminalized, it remains criminal under U.S.
Cautionary note regarding forward looking statements. This presentation includes estimates,
federal law. Companies and investors participating in the regulated cannabis industry are
projections, and other forward-looking statements, within the meaning of applicable Canadian or United
subject to myriad risks as a result of applicable laws and regulations, including, without
States securities legislation. All estimates, projections, and other forward-looking statements have been
prepared by us on assumptions we consider reasonable, but these estimates, projections, and limitation, the risk of criminal prosecution and asset seizure, burdensome tax liabilities, lack of
access to banking services and an inability to enforce certain creditor and intellectual property
statements involve a high degree of risk and may not prove accurate. No representation is made as to
rights. Investment in 3|Sixty is only suitable for investors that understand and have discussed
the accuracy of such estimates, statements, or projections or their attainability, and nothing in this
with their legal, tax and financial advisors the rapidly changing laws and regulations applicable
presentation shall be relied upon as a promise or representation as to our future performance.
to the regulated cannabis industry and that knowingly accept the associated risks. An investor’s
Statements that are not historical facts or that describe our plans, beliefs, goals, intentions, objectives, contribution to and involvement in such activities may result in federal civil and/or criminal
projections, expectations, assumptions, strategies, or future events are forward-looking statements. In prosecution, including forfeiture of his, her or its entire investment.
addition, terms such as “will,” “believe,” “anticipate,” “estimate,” “plan,” “projects,” “continuing,”
“ongoing,” “expect,” “intend,” “potential,” and similar expressions and discussions of our strategy or 3|Sixty expects to derive a portion of its revenues from the cannabis industry in certain states of
the United States, which industry is illegal under United States federal law. While 3|Sixty’s
other intentions identify forward-looking statements. These statements involve estimates, assumptions
business activities are compliant with applicable state and local law, such activities remain
and uncertainties that could cause actual results to differ materially from those expressed for the
illegal under United States federal law. The enforcement of relevant laws is a significant risk.
reasons described in this presentation. You should not place undue reliance on these forward-looking
statements. The forward-looking statements speak only as of the date on which they are made, and, Cannabis is a new industry subject to extensive regulation, and there can be no assurance that
except as required by applicable law, we undertake no obligation to update any forward- looking it will grow, flourish or continue to the extent necessary to permit 3|Sixty to succeed. 3|Sixty is
statement to reflect events or circumstances after the date on which the statement is made or to reflect treating the cannabis industry as a deregulating industry with significant unsatisfied demand for
the occurrence of unanticipated events. In addition, we cannot assess the impact of each factor on our its proposed products and will adjust its future operations, product mix and market strategy as
business or the extent to which any factor, or combination of factors, may cause actual results to differ the industry develops and matures.
materially from those contained in any forward-looking statements.
Cautionary Note Regarding United States Securities Laws
This presentation includes certain statements and estimates provided by 3|Sixty with respect to the
anticipated future performance of 3|Sixty. Such statements and estimates reflect various assumptions This presentation does not constitute an offer to sell or the solicitation of an offer to buy,
by 3|Sixty concerning anticipated results, which assumptions may or may not prove to be correct. No nor shall there by any sale of the securities in any jurisdiction in which such offer,
representations are made as to the accuracy of such statements and estimates, as well as the exercise solicitation or sale would be unlawful prior to registration or qualification under the
of a substantial degree of judgment by management as to the scope and presentation of such securities laws of such jurisdiction. The securities of 3|sixty have not been and will not
information. Such statements and estimates are based on a number of assumptions, and subject to a be registered under the united states securities act of 1933, as amended (the “u.S.
number of risks and other factors, including those that are not in the control of management and which Securities act”), or any state securities laws and may not be offered or sold within the
may not prove to be true. Actual results achieved during projection periods may differ substantially from united states or to, or for the account or benefit of, “u.S. Persons,” as such term is
those projected. Historical statements contained in this document regarding past trends or activities defined in regulation s under the u.S. Securities act, unless an exemption from such
should not be taken as a representation that such trends or activities will continue in the future. registration is available.
/2SEED-TO-SALE
SECURITY SERVICES
SECURITY ON-SITE SECURE SECURE RETAIL
CONSULTING SECURITY TRANSPORT STORAGE
Applicants Guard services Transport capabilities Secure vaults/facilities Store operations
• Site assessment • LP’s (cultivation, • Cannabis and cash • Climate controlled • Security technology
• Licensing advisory processing, etc.) • Unarmoured and • 24/7 security protection • Security personnel
• Security design & armoured vehicles and monitoring • Training & SOPs
build-out support Security systems • Air transport using • Dock level loading • Compliance audits
bio-thermal packaging • Chain of signature
• CCTV • ATM services
Licensed producers • Real-time vehicle &
• Intrusion alarm • Cash solutions
climate monitoring
• Expansion and and access control Applicants
additional sites systems, monitoring
and service • Site assessment
• Compliance audits
• Store design
• Licensing advisory
/3EXECUTIVE
Management team
MANAGEMENT TEAM
CEO AND FOUNDER CHIEF FINANCIAL OFFICER PRESIDENT CHIEF COMMERCIAL OFFICER
Thomas Gerstenecker Carlo Rigillo David Hyde Neil Weaver
• Expert and industry leader • Has 15+ years financial • Recognized leader and trusted • Has 39+ years of law enforcement
within the international security experience including 4 years senior advisor in the security and security experience in Canada
field with 25+ years experience as Director of Finance and then industry and abroad.
Interim Chief Financial Officer
• Thomas worked for the United at Beretta Farms Inc. • Led a full-service cannabis • Seasoned Executive with
Nations for 15 years. During security and strategic licensing
extensive law enforcement and
this time he held various senior • Previous work experience in advisory practice since 2013 security experience.
level positions to include Chief consumer health, consumer providing services to over 400
of Security, Global Operations products and the businesses in the legal cannabis • Has knowledge, experience and
manufacturing sectors markets understanding of highly regulated
• Spent many years with
Canada’s special forces group, • Extensive experience • Holds a Master of Science industries and his vast network of
Joint Task Force Two establishing and managing degree in Security & Risk resources around the globe
financial controls within small Management and is a graduate position him effectively to lead and
• Holds a Master of Science support a team of risk and security
and large companies of the Wharton School
degree in Risk, Crisis, and Development Program for specialists across the cannabis
Disaster Management from the • Carlo holds a CPA, CA Security Executives markets.
University of Leicester,
England, and is a Certified • Former Security Chief for a • Holds a MSc in Security and Risk
Business Continuity major multi-billion dollar management, and other related
Professional corporation with >500 security certifications.
staff & a $35 million annual
budget
/4 Confidential InformationBOARD OF
DIRECTORS
CHAIRMAN DIRECTOR DIRECTOR DIRECTOR DIRECTOR DIRECTOR DIRECTOR
Gaetan Lussier Vernon White Nancy Croitoru Nitin Kaushal Elmer Kim Rick Gabrielson Thomas Gerstenecker
• Deputy Minister for 18 • Currently a Canadian • Brings a diverse Nitin Kaushal has served Elmer has been an active Rick Gabrielson is an • Expert and industry leader
years, of which 12 was in Senator background of senior as a director since June Advisor with Lighthouse within the international security
investor in high growth
Ottawa leadership roles as a 2019 and has been Maritime Advisors and the field with 25+ years experience
• Previously, was Chief of companies since 1995.
successful entrepreneur,
• Was President of two Police of the Ottawa multi-national senior Managing Director of PWC He has served on a President of RS • Thomas worked for the United
food companies Police Service Corporate Finance Inc. number of private and Gabrielson and Nations for 15 years. During
executive and industry
leader since 2012, and was the public company boards. Associates, LLC, a this time he held various senior
• Previously, member of • Prior to this, led the level positions to include Chief
various boards including Regional Police Service Executive Vice President Elmer was the CFO for consulting and advisory
• Is an institute-certified practice focused on global of Security, Global Operations
Shoppers Drug Mart in Durham, Ontario, and and Managing Director Whitecastle Investments
Board Director and has
spent over 20 years with of Medwell Capital Inc. Limited, a privately held logistics and the • Spent many years with
• Received the Order of international Board
the Royal Canadian from May 2010 to March investment company, transportation sector. He Canada’s special forces group,
Canada in 1981 experience
Mounted Police, leaving 2012. Mr. Kaushal has Managing Director of has extensive supply Joint Task Force Two
• Brings a very diverse as an Assistant • Previously, was CEO of worked in senior roles with Whitecap Venture chain experience in U.S. • Holds a Master of Science
expertise to the 3|Sixty Commissioner a public relations and a number of domestic truckload,
Partners, Co-Founder and degree in Risk, Crisis, and
board crisis management firm Canadian investment intermodal, L.T.L., parcel,
• Has been honoured with Managing Director of Disaster Management from the
and most recently, CEO
• Holds a B.S.A, M.Sc, a number of awards and banks, including Desjardins Whitecastle Private Equity and consolidation University of Leicester,
of Food & Consumer
PhD, O,C. commendations over the Products of Canada Securities Inc., Orion Partners, Managing operations. Mr. Gabrielson England, and is a Certified
years, including a Securities Director of Roynat has broad experience in Business Continuity
(FCPC)
Commissioners Inc., Vengate Capital, Equity Partners and Vice foreign consolidation, Professional
Commendation, a HSBC Securities Inc., and trucking and Customs
President of Growth
Queen’s Jubilee Medal, at operations. He has over
Equity, BDC Capital.
and a United Way
PricewaterhouseCoopers thirty years in various
Community Builder of the
in their M & A, valuation leadership roles, including
Year Award
and audit groups. extensive P&L
responsibility serving two
Fortune 40 companies.
/5CANADA’S
LP’S ARE
GROWING
18
MARITIMES &
49 NEWFOUNDLAND
B.C.
33 16
PRAIRIES
101
ONTARIO
QUEBEC
/6 Source: Health Canada, June 2019; Includes cultivation, nursery, processing and medical sales licenses. Excludes suspended licensesTHE UNITED STATES
IS A LARGE
OPPORTUNITY
15 15
NEVADA
OHIO 39
10
NEW JERSEY
80
CALIFORNIA
MISSOURI
15
FLORIDA
/7 Source: Health Canada, April 2019; Excludes suspended licensesMEANINGFUL
SCALE
June 2019 June 2018
150 50 0 7M 30
650 650 100,000+ 35M 150+
Employees Customers Sq.ft. storage Sq.ft. patrolled Fleet vehicles
/8 Note: As of June 8, 2019OUR
HISTORY
2019 2019
2019
2017 2018
TCSS Commenced
LCBO
Customer National deal trading 2019
Successfully Successfully Win
2013 base expands contract closed the commenced Won LCBO
Canopy was first Wins Canopy Ontario wide
customer to move National Security
acquisition trading under the
security contract
National
of TCSS ticker symbol
3 Sixty genetics/Up Services contract and DHA SAFE (worth more density
Cannabis is customer nationwide than $27m over Operating in
incorporated to move dried product five years) all provinces
2013 2014 2015 2016 2017 2018 2019
“Original 5” National Tilray Canopy INKAS® Entry into
contract footprint and Aphria renewal deal US Market
Contracted by one First air and cross 3|Sixty adds Tilray Canopy 3 year Acquisition of 3|Sixty now
of the "Original 5" country shipments and Aphria to its renewal worth INKAS® operates in
licensed producers for National Cannabis client list for more than $18m Nevada and
customers security services New Jersey
2013 2019
2019
2017 2018 2019
/9A FEW
OF OUR
CUSTOMERS
/10 Note: Customers may include company subsidiariesRECENT
ANNOUNCEMENTS
JANUARY 14, 2019 JANUARY 23, 2019 APRIL 2, 2019 JULY 11, 2019 AUGUST 20, 2019
National Security Providing 3|Sixty Acquires 3|Sixty Enters US 3|Sixty Announces
Services Agreement Security Services INKAS Security Cannabis Market Record Revenue In
with Canopy Growth to The Ontario Services Ltd in Serving 1933 Q2 2019 and
Corporation Cannabis Store Canada Industries in Nevada Provides Guidance
Entered into a three- Entered into a 3 Sixty Secure Corp 3 Sixty Secure Corp is 3 Sixty Secure Corp
year master services multiyear agreement announces acquisition of providing security services announces record
agreement to provide with OCS to provide substantially all of the in the US cannabis revenue of $7.55 million,
security services to secure transport assets and business of market. The Company has up 119% over Q1 2019,
Canopy Growth. 3 Sixty services which INKAS® Security secured applicable provided Q3 2019
to provide 24/7 guarding contribute to the safe Services Ltd. valued at licenses, facilities and guidance of $8.5 million
services to protect delivery of cannabis approx. $13.75 million, office space in the State of and FY 2020 guidance
Canopy Growth’s products within the payable in cash, shares, Nevada and is serving of net guidance of $60
Canadian facilities. OCS distribution vendor take-back note 1933 Industries and to $80 million.
Extends to 3-years, network. and earn-out. multiple dispensaries.
from 1-year, and now
includes all facilities.
/11 Note: Customers may include company subsidiariesGROWTH
STRATEGY
US
ACQUIRE EXPANSION
CROSS
EXPAND SELL
1 2 3 4
Expand services Cross-sell guard and Execute on strategic Expand operations to
across transport services to 550+ and financially U.S. Represents
Canada/enhance DHA clients and continue accretive acquisitions significant growth
route density to onboard 12-15 new opportunities with low
consulting clients / month capital investment
/12DRIVING Q2
2018
Q3
2018
Q4
2018
Q1
2019
Q2
2019
Q3
2019
ORGANIC
GROWTH 20 60 440+ 600+ 650+ 650+
Customers
80 120 220 350 600 700
Personnel
4 10 50 80 150 160
Fleet
440K 2.5M 3.0M 3.5M 7.5M 8.5M+
Revenue
/13 1 Cumulative customers
Source: Management
Note: Customers may include company subsidiariesIMMEDIATE ORGANIC
MARKET OPPORTUNITY
COMPETITIVE LANDSCAPE • Highly fragmented space • Consulting services highly fragmented,
• Consulting services highly specialized and regional (law dictated on state-
and concentrated level)
• Traditional transport providers are not
active in the space as they have
material business with federally
licensed financial institutions
• Guarding mostly serviced by regional
providers
KEY REGULATIONS • Cannabis Act came into effect in • Regulated markets on a state-by-state
October 2018 basis1
• Significantly expands mandated • Cannabis remains federally illegal,
security requirements for LPs & LP meaning
applicants LPs and dispensaries cannot access
traditional banking services
/14 1 Canaccord Genuity ResearchGROWTH THROUGH
ACQUISITION
In addition to
extensive near-term
organic growth
opportunities, there
are potential strategic
“bolt-on” acquisitions
CANADA U.S.
of select
security/consulting • Potential to acquire • Security services are
providers in the complementary cannabis highly fragmented,
consulting company to providing the opportunity
cannabis space expand our offering for acquisitions
• Exploring strategic • In discussions with
acquisition of security strategic partner with
technology and IT/cyber large U.S. presence
security business • Acquire and expand
• Add boots on the ground retail guarding company
through acquisition with (retail represents large
technical experience opportunity in U.S.)
• Acquire small to medium
cash-in-transit companies
/15 1 Canaccord Genuity ResearchNEW MARKET
POTENTIAL
EUROPE
Service
Canadian clients
with European
interests
U.S. EXPANSION
Engaged with
Licensed and operational in Maltese
Nevada and New Jersey, with government
leading U.S. cultivation,
processing and retail
AUSTRALIA
cannabis operator
Leverage
Negotiating strategic
experience from
partnership with leading U.S. existing clients in
consultancy with large client
Australia to service
base across 23+ states
other clients that
have expressed
LATIN & SOUTH AMERICA interest in entering
Leverage experience from existing this market
clients in Latin and South America to
service other clients that have expressed
interest in entering this market
/16INVESTMENT
HIGHLIGHTS
1 2 3 4 5
Full service, Cannabis is the Proven track record Significant pipeline Leading
seed-to-sale Cornerstone of of execution with for near-term management team
security and risk our Business; blue-chip customer growth in Canada and experienced
management tremendous growth base and the U.S. board of directors
service provider opportunities organically and
for the growing through M&A
regulated
cannabis market
/17APPENDIX /18
24-HOUR SITE PHYSICAL ORGANIZATIONAL
MONITORING SECURITY PLAN SECURITY PLAN
Site must be Site security, Site must be
monitored at all storage security, monitored at all
times by visual floor plans with times by visual
recording devices security features recording devices
SAFEKEEPING SECURITY AWARENESS STANDARD
DURING & TRAINING OPERATING
REGULATORY DISTRIBUTION
Must take any steps
Initial and ongoing
security training for
PROCEDURES
To prevent, detect
REQUIREMENTS necessary to ensure
safe distribution
employees and/or
contractors
and respond to
security incidents
/19 1. Canadian Cannabis Regulations (CR), Sept 16, 2018; Cannabis Licensing Application Guide (AG)WASHINGTON NEVADA CALIFORNIA
FIXED CAMERA COVERAGE SURVEILLANCE SYSTEMS VIDEO SURVEILLANCE
All production, transport, 24 hour digital SYSTEMS
delivery, shipping, labeling surveillance systems 24-hour digital video
and packaging areas surveillance systems
INVENTORY TRACKING FIXED CAMERA COVERAGE INVENTORY TRACKING
Track and trace protocols Shall ensure all production, Track and trace protocols
on inventory transport, delivery, shipping, on inventory
labeling and packaging
areas have fixed camera
coverage
STATE-TO-STATE FIXED CAMERA COVERAGE
REQUIREMENTS VARY All production, transport,
delivery, shipping, labeling
and packaging areas
/20 1. North Las Vegas City Council – Ordinance No. 2671;
2. California Bureau of Cannabis Control – Proposed Text of Regulations;
3. Washington State Legislature – Marijuana Licenses, Application Process, Requirement & Reporting – WAC 314-55-083SUMMARY
CAPITALIZATION
CAPITALIZATION OWNERSHIP (FULLY-DILUTED)
Share Price $0.20
19%
Shares Outstanding 154.4 Founders,
Mgmt & Board
Dilutive Securities 10.2
Dilutive Shares Outstanding 164.6
Market Capitalization 32.9 68% 13%
Other Private Placement
Less: Cash & Equiv. (3.5) Free Trading
Add: Debt 11.0
Enterprise Value 40.4
/21 C$ millions, except per share amountYou can also read
