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C O R P O R A T E   P R E S E N T A T I O N

D O W N L O A D   P D F   V E R S I O N

Best-in-class Cannabis Operator in Oregon led by Chalice Farms Retail



About

Chalice Brands Ltd. is a cash-flow positive U.S. operator in the most competitive, innovative and mature cannabis market in North America.

Leaders in retail, marketing and craft cultivation supported by fully integrated processing and distribution.

 

Brands

Chalice-Farms-Block
Fifth&Root-Block
Elysium-Fields-Block
RXO-Block

C H A L I C E   F R U I T   C H E W S

Gluten, vegan, dairy and soy free. Made with real fruit puree, beet sugar and sunflower lecithin. No artificial colors or flavors.


C H A L I C E   P R E - R O L L S


E L Y S I U M   F I E L D S


E L Y S I U M   F I E L D S  B L A C K  L A B E L

elysium-black-label-social-media-campaign

R X O

rxo-social-campaign

F I F T H  &  R O O T

Chalice_SS21_V-3-29-21_FINAL2

Cannabis Platform

We specialize in brand creation and immersive storytelling married with best-in-class technology.

Our cannabis platform places brands at the forefront of innovation with multiple consumer touch points. 

 
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1.5M

REACH


“The Chalice Farms team executes all aspects of a campaign beautifully and flawlessly. Their incredible team produced some of the best assets and displays across the GLOBE for PAX. The successful work that was done is now used as a case-study and metric of success for other retailers across the US and Canada. ”

— L I V   N A G L E R   PAX


E X E C U T I V E   M A N A G E M E N T

+ 40 years of combined cannabis experience

+20 years of combined cannabis supply chain experience

+40 years of Fortune 25 experience

+75 years of combined retail experience

Jeff Yapp

PRESIDENT/CHIEF EXECUTIVE OFFICER

Jeff-Yapp

John Varghese

EXECUTIVE CHAIRMAN

John-Vargese

Andrew Marchington

CHIEF FINANCIAL OFFICER

Andrew-Marchington

Karen Morgan

CHIEF MARKETING OFFICER

Karen-Morgan

John Ford

CHIEF REVENUE OFFICER

John-Ford

Meghan Miller

CHIEF CULTIVATION OFFICER

Meghan-Miller

Ben Allmand

BUSINESS DEVELOPMENT & COMPLIANCE 

Ben-Allmand

Ginger Mollo

CHIEF INTEGRATION OFFICER
& GM - FIFTH & ROOT

Ginger-Mallo-Headshot-30-1

Jane Sullivan

CHIEF PEOPLE OFFICER

Jane-Sullivan

Joel Klobas

VP OF PRODUCTION

Joel-Klobas


B O A R D   O F   D I R E C T O R S

JOHN VARGHESE, Executive Chair

Professional experience ranges from private equity, venture capital and investment banking to senior management and board of director roles in various industries in both public and private companies. He has served on over 20 boards, acting as Chairman on 9 of those, as well as chairing multiple compensation committees and participating on numerous audit committees.

RICK MILLER, Lead Director

Seventh-generation Oregonian with a prominent local presence as an entrepreneur, highlighted by his co-founding of Rogue Venture Partners. He was the founder and serves as CEO of the Avamere Group. Currently serves on the boards of Diabetomics, Invivo Biosystems, Enviral Tech, Oregon Healthcare Association and is the Lead Director of the Corporation.

BOB MCKNIGHT, Director

Co-founded Quiksilver, Inc. in 1976 and has served as the corporation's President, CEO and Chairman of the board of directors from its inception until 2015. Today, Mr. McKnight serves as a consultant and ambassador to the Corporation and manages the Boardriders Foundation.

LARRY MARTIN, Director

Successful CEO and entrepreneur, with a unique background which includes over 39 years of domestic (i.e., United States) and international business experience in more than 11 different industries, including outdoor hospitality lifestyle, consumer branding, real estate and the medical industry.

SCOTT SECORD, Director

A lifelong entrepreneur, has been a founder, executive, advisor and board member of multiple successful startups leading to various liquidity events. Currently serves as Managing Partner of Shore Capital Sports & Entertainment. He also continues to serve as a director on a number of public and private company boards.

JEFF YAPP, Director

Accomplished corporate executive and entrepreneur with an extensive retail, entertainment, and marketing background, he has been committed to bringing innovation and growth to the corporate environment including Microsoft, Kraft Foods, PepsiCo, Newscorp/20th Century Fox, and Viacom/MTV. He has applied his strategic marketing and consulting skills with various clients, including Microsoft, Vice Media, XBOX, and Windows.


O U R   S T O R Y

We Heal. We Share. We Come Together.

At Chalice Farms we pursue this mission by telling great stories, creating captivating content and leading the industry forward
through education, experiences and collaborations.


M A R K E T I N G

It's all about collaboration!

We specialize in brand creation and immersive storytelling married with best-in-class technology.

Partnerships

Community is at the heart of everything we do.


W O R L D   C L A S S   G R O W

Sustainable & Organic Farm 

Award winning director of cultivation with over 15+ years of cannabis experience


F U T U R E   S T A T E


C R A W L  -  W A L K  -  R U N

“The crawl phase validates, the walk phase starts to invest in acceleration and run is to invest in margin”

— J E F F   Y A P P,   P R E S I D E N T   &   C E O

Screen+Shot+2021-04-15+at+6.38.16+PM

M A R K E T   L E A D E R

Proven track record of success in the most competitive cannabis market in U.S.

 
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Why Oregon Matters?

  • First state to decriminalize small amounts of marijuana. In 1998, Oregon legalized medical marijuana along with Washington, Arizona, and Nevada.

  • Mature & Competitive market #1 in retail stores per capita (16.5 dispensaries per 100,000 residents) with a stable cultivation & supply chain

  • Billion $ market - 3rd largest market in per capita consumption with $275 annual cannabis spend per capita

  • Optimal climate for growing best in class cannabis globally

  • Leading Federal legalization effort - OR Senator Ron Wyden and OR Congressman Earl Blumenaur are leading the federal legalization efforts in WA.


O B J E C T I V E S

2020

Q1

  • Leadership team in place

Q2

  • Record growth of 40% YoY in Oregon

Q3

  • Surpassed total fiscal 2019 revenues by end of Q3
  • First ever cash-flow positive quarter

Q4

  • Adjusted EBITDA positive

2021

Q1

  • Recapitalized balance sheet
  • Raised equity of C$13.5 Million

Q2

  • Expand retail footprint in Oregon by 75%
  • Corporate name change
  • Share consolidation

Q3

  • Add scalable next generation
    e-commerce platform

Q4

  • Full year EBITDA positive and
    5% Oregon market share

2022

Q1

  • Optimized Oregon Vertical integration

Q2

  • “Run Phase” launch of California retail stores
  • Expansion to crawl in additional west coast market

Q3

  • Another new market
    (4 total markets)

Q4

  • 10% market share in Oregon

F I N A N C I A L   H I G H L I G H T S

Key Focus: Strong growth, improved working capital discipline, and improved financial performance

  • Record annual revenues of $21.9M, increase of 39% from 2019 with a 20% decrease in operating costs. Accomplished in-spite of all headwinds faced during 2020.

  • Q4 revenue of $5.5M – a 53% year-over-year increase compared to 2019.

  • First Adjusted EBITDA positive quarter in company history accomplished as a combination of increased revenues and decreased cost structure.

  • Positive cash flow from operations for the last two quarters of $420k for the first time in company history.

  • Full year cash flow from operations at -$1.5M in 2020, compared to -$8.0M in 2019, an improvement of $6.7M.


S H A R E   M E T R I C S

CSE: CHAL   |   OTCQB: GLDFF 

Chalice Brands Ltd. (CHALF:OTC)
Chalice Brands Ltd. (CHAL:CSE)
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I N V E S T M E N T   H I G H L I G H T S

Market Focus
A leader in one of the most competitive, innovative and mature markets in North America with a growing presence in the largest cannabis market in the world: California.

Disciplined Growth
Growth and scale in home market accretive to EBITDA at run phase. New markets follow crawl, walk, run path until proven viable. 

Integration
Production, processing, wholesale distribution, and retail.

Competitive Advantage
Consolidated and efficient retail, distribution and branding presence in fragmented saturated industry.

Competencies
Retail Excellence, Brand Awareness, Scale, Regulatory Expertise, Network Benefits, and Technology.

Brand Identity
Trademarked and recognized brands include Chalice Farms, Elysium Fields, Private Stash and RXO.


D I S C L A I M E R

CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION: This presentation includes forward-looking information and forward-looking statements within the meaning of Canadian  and United States securities laws. Statements containing the words “believe”, “expect”, “intend”, “should”, “seek”, “anticipate”, “will”, “positioned”, “project”, “risk”, “plan”, “may”, “estimate”, “historical”, “expected performance” or,  in each case, their negative and words of similar meaning are intended to identify forward-looking information. Forward-looking information involves risks and uncertainties including, but not limited to, the Company’s anticipated business strategies, anticipated trends in the Company’s business and anticipated market share, general business, economic and competitive uncertainties, regulatory risks including risks related to the market risks, risks associated with acquisitions, risks inherent in manufacturing operations, other general risks of the cannabis industry as well as those risk factors disclosed elsewhere in Golden Leaf’s public disclosure, including but not limited to, the Company’s Management’s Discussion & Analysis of Financial Condition and Results of Operations for the twelve Months Ended December 31, 2020 and the three months ended March 31, 2021 that could cause actual results or events to differ materially  from those expressed or implied by the forward-looking information.  Such statements are based upon the current beliefs and expectations of the Company’s management and are subject to significant business, social, economic, political, regulatory, competitive  and other risks, uncertainties, contingencies and other factors. Many assumptions are based on factors and events that are not within the control of Golden Leaf. Actual future results may differ  materially from historical results or current expectations.  Slides herein titled “Milestones”  “2020 Actual and Expected results”; “2 year projection – No new stores”; “2 year projection – acquisition of 6 new retail stores”; “Forecast assumptions”; “Proforma camp table & Return on investment”; and “Stock Performance” contain forecasts which include forward looking information which is subject a variety of risks and uncertainties.​

These risks, uncertainties and assumptions could adversely affect the outcome and financial effects of the plans and events described herein. In addition, even if the outcome and financial  effects of the plans and events described herein are consistent with the forward-looking information contained in this presentation, those results or developments may not be indicative of  results or developments in subsequent periods. Although Golden Leaf has attempted to identify important risks and factors that could cause actual actions, events or results to differ materially  from those described in forward-looking information, there may be other factors and risks that cause actions, events or results not to be as anticipated, estimated or intended. Forward-looking  information contained in this presentation is based on the Company’s current estimates, expectations and projections, which the Company believes are reasonable as of the current date. The Company can give no assurance that these estimates, expectations and projections will prove to have been correct. You should not place undue reliance on forward-looking information, which is  based on the information available as of the date of this presentation. Forward-looking information contained in this presentation is as of the date of this presentation and, except as require by  applicable law, the Company assumes no obligation to update or revise them to reflect new events or circumstances. Historical statements should not be taken as a representation that such trends will be replicated in the future. No statement in this presentation is intended to be nor may be construed as a profit  forecast. ​

Objectives risks and assumptions:​

  • Objectives assume no material change in selling prices of the Company’s products. If the price of the company’s primary input materials were to materially change, there is a risk that the company could not realize the revenues and expenses currently assumed.​
  • Objectives assume the Company completes the previously announced acquisition of retail stores in February 2021 and can complete further acquisitions during 2021.​
  • The Company is largely relying on raising external capital in order to acquire additional retail dispensaries. If the Company is unable to raise additional capital on reasonable terms, its ability to achieve the expansion implied its Objectives may be limited. ​
  • Current competitive landscape in Oregon remains largely consistent throughout 2021 and 2022.​
  • The Oregon market size growth may accelerate to a degree which limits the Company’s ability to achieve market share objectives.​

EBITDA and Adjusted EBITDA are non‐IFRS financial measure and do not have any standardized meaning prescribed by IFRS and is therefore unlikely to be comparable to similar measures presented by other issuers.​​

Adjusted EBITDA is a supplemental, non-GAAP financial measure. EBITDA is defined as earnings before interest, income taxes, depreciation and amortization. In addition, Adjusted EBITDA as presented excludes impairment charges, all other non-cash items and one-time transaction fees. Management believes providing Adjusted EBITDA is useful to investors’ understanding and assessment of the Company’s ongoing continuing operations and prospects for the future and it is a used by the financial community to evaluate the market value of companies considered to be in similar businesses. Since Adjusted EBITDA is not a measure of performance calculated in accordance with IFRS, it should not be considered in isolation of, or as a substitute for, measures of performance prepared in accordance with IFRS. Adjusted EBITDA, as calculated in the table above, may not be comparable to similarly titled measures employed by other companies. In addition, Adjusted EBITDA is not necessarily a measure of our ability to fund our cash needs.

CURRENCY: All references to $ in this presentation are references to United States dollars, unless otherwise indicated. ​​

Risk Factors ​

Investing in the securities of the Company involves a high degree of risk. Before investing in the securities, prospective purchasers of the securities should carefully consider the other information contained in this presentation and the risks disclosed in the Company’s public disclosure available under Golden Leaf’s SEDAR profile at www.sedar.com, including  but not limited to, the Company’s Management’s Discussion & Analysis of Financial Condition and Results of Operations for the Three Months Ended March 31, 2021 (the “MD&A”). If any such risks occur, the Company’s business could be materially harmed. The risks and uncertainties described in the MD&A are not the only ones  that the Company faces. Additional risks and uncertainties, including those of which the Company is currently unaware or that the Company deems immaterial, may also adversely affect its  business.​