Investor Presentation - We simply grow better. The Supreme Cannabis Company T SX
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Investor
Presentation.
We simply grow better.
The Supreme Cannabis Company T SX : F I R E
1
Company does not undertake to update any such forward-looking cautions that the list of risk factors and uncertainties described in the
information whether as a result of new information, future events or AIF is not exhaustive and other factors could also adversely affect its
Disclaimer. otherwise, except as required under applicable securities laws in results. Certain industry data contained in this presentation have been
Canada. Although the Company believes that the expectations and obtained from third party sources and the Company has not
Certain information regarding The Supreme Cannabis Company, Inc.
assumptions on which the forward-looking statements are based are independently verified any of the data from third party sources nor it
(“Supreme” or the “Company”) contained herein may constitute
reasonable, undue reliance should not be placed on the forward- ascertained the underlying assumptions relied upon therein, or
forward-looking statements within the meaning of applicable securities
looking statements because the Company can give no assurance that whether such data has changed since the date thereof. The Company’s
laws and or be subject to change without notice. Forward-looking
they will prove to be correct. Many factors could cause our actual forward-looking statements are expressly qualified in their entirety by
statements may include estimates, plans, expectations, opinions,
results, level of activity, performance or achievements or future events this cautionary statement.
forecasts, projections, guidance or other statements that are not
or developments to differ materially from those expressed or implied
statements of fact. Forward-looking statements are current as of the
by the forward-looking statements, including, without limitation, the
date they are made and are based on applicable estimates and
factors discussed in the “Risk Factors” section of the Company’s Annual
assumptions made by us at the relevant time in light of our experience
Information Form dated September 24, 2020 (“AIF”). A copy of the AIF
and perception of historical trends, current conditions and expected
and the Company’s other publicly filed documents can be accessed
future developments, as well as other factors that we believe are
under the Company’s profile on the System for Electronic Document
appropriate and reasonable in the circumstances. However, the
Analysis and Retrieval (“SEDAR”) at www.sedar.com. The Company
2
We exist to use our
knowledge of the plant to
create transformative
brands that deliver
positive experiences.
3
FOCUSED CONSUMER-DRIVEN PA S S I O N AT E P E O P L E .
.
INFRASTRUCTURE. .
BRANDS. .
Bringing together people with a FIRE for the
Completed and fully licensed facilities Creating strong consumer-centric brands plant and a strong respect for the consumer
serving specific functions from seed to sale. with high-quality products that address it reaches.
specific needs.
A SIMPLE APPROACH ON THE PATH TO PROFITABILITY.
4
Cultivation.
7ACRES FACILITY
440,000 SQFT. FACILITY IN KINCARDINE, ON.
Core Capabilities
Scaled cultivation 280,000 Sqft. of flowering, vegetation and propagation space
Small batch grow 10,000 Sqft. cultivation rooms
Hybrid facility Indoor sealed cultivation with greenhouse roof
Advanced processing Proprietary whole-plant dry and hand-trim finish
Value-add processing Pre-roll and concentrates production
Automated packaging Packaged to high quality visual specification
Genetics practice Cambium Plant Sciences R&D lab within 7ACRES
Licenses Processing license amended and research license authorized
by Health Canada
Capacity
Current packaging 24,000 containers per day
Current cultivation 33,580 KG annually
Expected cultivation 50,000 KG annually
5
Extraction.
BLISSCO FACILITY
12,000 SQFT. FACILITY IN LANGLEY, BC.
Core Capabilities
Extraction lab C02 and ethanol extraction
2.0 oil processing Vaporizer pod filling
Flower processing Pre-roll manufacturing
Pharmaceutical grade Built to GMP standards
Capacity
Oil bottling 7,000,000 bottles per year
6
JOHN GRIESE DAN SIPPEL TODD MCADAM
CHIEF OPERATING OFFICER GM, CULTIVATION GM, CBD & WESTERN SUPPLY
⁺ International cannabis operations experience and over ⁺ Over 30 years of professional experience in high-volume ⁺ Over 30 years working in the food and beverage industries.
30 years of executive level CPG operations and supply regulated food production environments including Natra Most recently served as General Manager at Labatt
chain roles at global corporations, including Nestle and Chocolate, Export Packers Seafood Limited, Eurocan Pet Breweries of Canada’s Turning Point Brewery in British
Pepsico. Products and Sofina Foods. Columbia.
DEEP MANUFACTURING EXPERTISE ACROSS OPERATIONS.
7
Diverse Cannabis Brands and Products.
High-quality products at every key price point.
International medical brand Accessible recreational brand Ultra-premium brand extension Multi-award-winning cannabis Premium wellness brand Affordable cannabis brand
delivering CBD and cannabis focusing on high-quality delivering high-potency craft brand regarded for its high- producing high-quality cannabis delivering quality products at an
products. convenience products. cannabis products. quality flower products and and CBD offerings. accessible price.
inputs.
For medical cannabis consumers. For new cannabis and For experienced enthusiast For discerning recreational For wellness-focused consumers. For experienced value-oriented
convenience consumers. consumers. consumers. consumers.
CBD Medicinal Products Pre-Rolls Whole Flower Whole Flower CBD Oils Hash
Medical Cannabis THC and CBD Oils Whole Flower Pre-Rolls Whole Flower
Milled Flower Vaporizer (PAX Pods) Pre-Rolls
Vaporizer (5:10) Concentrates
8
Expanding Product Portfolio Under
Existing Brands.
Enhancing existing brands with new products
+ 7ACRES Craft Collective brand extension to enhance
cannabis flower product offering with rare and
desirable strains
+ First 2.0 products introduced under premium 7ACRES
brand including 7ACRES PAX Era pods and high -quality
7ACRES concentrates
9
9
Introducing Brands to Address
New Consumer Segments.
Launching brands at every key price point
+ Utilizing inputs not intended for 7ACRES brand
+ Driving incremental revenue for the Company
+ Introducing premium, mid and value brands
+ Sugarleaf provides an accessible consumption experience at
an affordable price
10Product Portfolio Will Address 86%
of Potential Market.
Category Mix in California1
36% Flower
1% Beverages
13% Edibles 7% Non-Vape
Concentrates
7% Other
11% Pre-rolls
25% Vape
1. BDS Analytics, February 2020
11Coast-to-coast Distribution.
CANNABIS RETAIL IN CANADA
At maturity, cannabis retail stores are expected to reach 3,000 locations across
Canada. 70% of cannabis shoppers report purchasing cannabis in-person as their last
purchase occasion and approximately 42% of consumers make their purchase decision
in store.1 Supreme Cannabis is addressing this retail store and distribution opportunity
through a sales representation agreement with humble+fume.
SUPREME CANNABIS X HUMBLE+FUME
Canada-wide coverage 24 sales professionals across Canada and continued growth
with retail store roll-out
Deep distribution Humble+fume currently in 85% of cannabis retailers in
Canada
Complete solution Only sales force to offer cannabis brands and accessories to
retailers
Building brands Store-level brand advocacy and budtender education
through the Company’s fire.io platform
Shared cost-structure Benefits from leading sales team at half the cost
1. Cannatrack, Cannabis Consumption Study (Canada, Jul 2019 to Dec 2019, general population, n=6,137) 12Select Results for the Three Months
Ended September 30, 2020. FINANCIAL PERFORMANCE
3 MONTHS ENDED SEPTEMBER 30, 2020
+ Net Revenue: $11.9 million
+ Gross Margin, excluding fair value items and
impairment charges: $6.2million
+ Adjusted EBITDA: $0.3 million
NET REVENUE
($ millions)
B R A N D S T R AT E G Y
$8.0
$7.5
$7.3 + 7ACRES secured brand of the year
$7.0 + Integrated Blissco and sugarleaf brands
+ Created 7ACRES super premium brand extension
$6.0 $5.7 $5.7 Craft Collective
+ Distributed products to 10 provinces
$5.0
$4.4 + Launched 2.0 cannabis products
$4.0
$4.0
$3.4
Rec SIGNIFICANT DEVELOPMENTS
$3.0
$2.3
B2B + Amended Convertible Debenture terms, reducing debt
$2.0
by $63.5 million
+ Amended the three-year term credit facility announced
$1.0
on November 14, 2019.
$0.0
+ Completed right sizing of company, reducing operating
expenses by 65% year-over-year
Q2
Q2 QQ33 Q44
Q QQ11
2020 2020 2020 2021
13A C C E L E R AT I N G R E V E N U E FA C I L I T I E S C O M P L E T E D COSTS OPTIMIZED .
.
Enhancing distribution and introducing brands and Benefiting from completed cultivation and extraction Optimizing expenses and continuing to look for
high-quality products at every key price point to infrastructure, reducing capital expenditure and further efficiencies to create a more effective
address more consumer experiences. increasing scaled efficiencies. organization and reach sustainable profitability.
FY2021 NEAR-TERM GROWTH DRIVERS 14Experienced Leadership.
BEENA GOLDENBERG* JOHN GRIESE JOEL TOGURI NIKHIL HANDA
PRESIDENT AND CEO CHIEF OPERATING OFFICER CHIEF REVENUE OFFICER CHIEF FINANCIAL OFFICER
⁺ Former CEO of Hain-Celestial Canada, a leading organic and ⁺ International cannabis experience and over 30 years of ⁺ Over 20 years of regulated industry expertise. ⁺ Previously, Vice President of Finance at Well.ca, a leading
natural products company. Prior to Hain Canada, held executive level CPG operations and supply chain Previously led sales for a large Ontario-based licensed online destination for wellness products and prior to that
senior roles at other CPG companies and has served on the expertise from global corporations, including Nestle and producer and held leadership roles at Southern held senior finance and operational roles at Restaurant
board of Food and Consumer Products of Canada, the Pepsico. Glazer’s, MolsonCoors and Beam Global Spirits & Brands International.
largest CPG industry association, since 2008. Wine.
ASH RAJENDRA VALERIE ROTHER JEFF ADAMS
CHIEF INFORMATION OFFICER EVP PEOPLE AND CULTURE EVP BUSINESS DEVELOPMENT
⁺ Previously, CIO at Just Energy, an NYSE listed organization ⁺ 16 years of recruitment, talent management and HR ⁺ 18 years in executive roles working for Canada's largest
which specializes in electricity, natural gas, solar and experience, most recently Director of People and Culture generic drug producer, Apotex Inc.
green energy. at Wave Financial.
Strong Corporate Governance.
MICHAEL LA BRIER COLIN MOORE JACKIE PORIADJIAN ASCH KEN MCKINNON RON FACTOR
CHAIRMAN OF THE BOARD DIRECTOR OF THE BOARD DIRECTOR OF THE BOARD DIRECTOR OF THE BOARD DIRECTOR OF THE BOARD
⁺ Founder of Canderel Stoneridge ⁺ Previously, President of Starbucks ⁺ Previously held senior marketing roles ⁺ Managing Partner at Citrus Capital ⁺ President of Geolam, Inc. Previously, a
Equity Group, Inc. Canada and the Americas.. at ecobee, Canada Goose and UFC Partners Ltd. partner at Deloitte
15
*Executive also serves as a director of the boardSUPREME QUICK FACTS ANALYST COVERAGE
(September 30,2020)
NET REVENUE (LFQ) $11.9 million Tamy Chen
NET REVENUE (LTM) $40.2 million Matthew Bottomley
CASH (UNRESTRICTED) $20.4 million Jesse Pytlak
MARKET CAP* $71.4 million
Graeme Kreindler
SHARES O/S* 503 million
Andrew Partheniou
WARRANTS, RESTRICTED STOCK UNITS, 143 million
OPTIONS AND CONVERTIBLE DEBT*
Fully Diluted Shares O/S* 646 million
*As at November 16, 2020
16$FIRE
The Supreme Cannabis Company TSX : FIRE
Supreme.ca
The Supreme Cannabis Company
TheSupremeFIRE
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