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RETAIL PORTFOLIO APRIL 2019
RETAIL PORTFOLIO APRIL 2019
Cannabis Retail Portfolio April 2019 | Page �2
Note Regarding Forwarding Looking Statements & Disclaimer
This presentation is strictly confidential and must not be copied, distributed, circulated or disseminated without the express written consent of Eden Empire Inc. (the “Company”). References to “Eden” refer to the tradename the Company proposes to carry its business under. This presentation does not constitute an “offering memorandum” as such term is defined under Canadian securities legislation and confers no statutory, contractual or other similar rights of rescission or other action or remedy to any recipient under securities legislation in Canada, the United States or other jurisdiction for misrepresentation or otherwise. No securities are being offered for sale hereunder. This document does not provide full disclosure of all material facts relating to the securities offered. Readers must conduct their own analysis and review of the Company and of the information contained in this presentation and must contact their own professional advisors.
This presentation contains “forward-looking information”. Forward-looking information includes, without limitation, information concerning the proposed retail cannabis applications (“Applications”) and the approval process associated therewith, expectations regarding whether the Applications will be approved, including whether the Application will be approved on the expected terms, the timing for receiving approval for the Applications, the potential number and location of dispensaries and the timing thereof, or the ability of the Company to successfully achieve business objectives, expectations regarding the Canada cannabis market, including any legalization of adult-use of cannabis in Canada, and expectations for other economic, business, and/or competitive factors.
Similarly, forward-looking information also includes economic analysis of the business of the Company and the results thereof, including, without limitation, cash flow projections, estimated capital and operating costs, and all economic analysis derived from such estimates and forecasts.
In general, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “projects”, “forecasts”, “budget”, “estimates”, “schedule”, “intends”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. The forward-looking information is based upon factors and assumptions the Company believes is reasonable based on information currently available to them. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance of the Company to differ from forward-looking information. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except as required under applicable securities laws.
There are substantial risks in investing in the Company. Investors must have the financial ability, sophistication/experience and willingness to bear the risks of an investment. An investment in the Company is not suitable for all investors.
Market Research and Public Data: This presentation also contains or references certain market, industry and peer group data which is based upon information from independent industry publications, market research, analyst reports and surveys and other publicly available sources. Although we believe these sources to be generally reliable, such information is subject to interpretation and cannot be verified with complete certainty due to limits on the availability and reliability of raw data, the voluntary nature of the data gathering process and other inherent limitations and uncertainties. We have not independently verified any of the data from third party sources referred to in this presentation and accordingly, the accuracy and completeness of such data is not guaranteed.
These materials may contain inaccuracies or typographical errors. The Company shall not be responsible for any errors or omissions contained in these materials and do not guarantee the accuracy, completeness or timeliness of the information contained herein.
NOTE REGARDING FORWARDING LOOKING STATEMENTS & DISCLAIMER
Cannabis Retail Portfolio April 2019 | Page .�3
THE VALUE OF INVESTING IN CANNABIS RETAIL
Cannabis retail currently has one of the highest grossing sales per sqft. figures of all retail segments.
MARKET COMPARABLES AVERAGE ANNUAL REVENUE PER SQFT., U.S., 2018 $USD
Cannabis retail is an emerging sector with significant cash flow.
An investment in cannabis retail provides exposure without the volatility of LP (Licensed Producer) public market fluctuations.
Green GrowthBrands
MedMen
Apple
Tiffany
LuluLemon
Costco
WholeFoods
$874
$1,137
$1,560
$2,951
$5,546
$6,188
$11,277
*
*quarter ended Sept 30, 2018 for California market.
*
Cannabis Retail Portfolio April 2019 | Page .
Cannabis Retail Portfolio April 2019 | Page
EDEN’S COMPETITIVE ADVANTAGE
Award winning, established, nationwide brand with a history of 17 stores across Canada
Dedicated management team with 20+ years combined industry experience
Formerly established brand which received multiple investment & buyout offers
60,000 person database of known customers with one-to-one reach • Can be turned on and monetized immediately
• Database itself received buyout offers in the past from major LPs
Maintained grandfathered locations due to compliance with Federal regulation
Access to US & international opportunities
Diversified revenue streams
Shutdown voluntarily prior to 10/17/2018 in compliance with Federal rules & regulations
Registered Trademark Brand Name with successful enforcement record.
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Cannabis Retail Portfolio April 2019 | Page .�5
AWARDS
Voted best in a cannabis category
5 years consecutively
Most Influential Organization in the Industry
CannAwards 2015
Top Dispensary Branding Lift Co. Canadian Cannabis
Awards 2016
Top Dispensary Branding, West Lift Co. Canadian Cannabis
Awards 2017
Top Dispensary Branding, East Lift Co. Canadian Cannabis
Awards 2017
2 0 1 7
TOP DISPENSARY BRANDING TOP DISPENSARY BRANDING, WEST TOP DISPENSARY BRANDING, EAST
2 0 1 7 2 0 1 6
Cannabis Retail Portfolio April 2019 | Page �6
PROVEN ACCOMPLISHED BRAND DEVELOPMENT
Eden has created and advanced several popular auxiliary cannabis brands. Over a decade of invaluable industry expertise acquired by the management team qualifies them to guide brands in finding their unique culture, facilitating their growth into the established, flourishing brands they are today. The information and customer feedback received through Eden’s industry experience equips them to develop products for a retail environment. The team’s understanding of the market is consulted in the research, development and curation of a wide range of products.
Eden’s unparalleled ability to navigate the cannabis industry is showcased through the massive reach and success of these brands and products.
Gold logo - no white fills
Cannabis Retail Portfolio April 2019 | Page .�7
CANADA RETAIL ROLLOUT 2019 - 2020
Salmon Arm Vancouver2,391 sqft. 1,037 sqft.
……$3,500 ……$25,000
Vernon Victoria2,920 sqft. 3,294 sqft.
……$4,000 ……$20,000 (51% JV)
Rollout to 20 stores across BC, AB and ON.
2019
Q2
Q3
Kamloops Nanaimo1,073 sqft. 1,578 sqft.
……$4,000 ……$15,000
2020
Q2 to
Q4
Forecasted daily sales
Total daily sales of 6 locations
$71,500
Based on a 300 day calendar, annualized revenue run rate expected to exceed
$21,540,000
Based on a 360 day calendar, annualized revenue run rate expected to exceed
$25,740,000
Cannabis Retail Portfolio April 2019 | Page �8
MANAGEMENT
KOLTEN TAEKEMAPRESIDENT
Kolten Taekema’s background in MMAR cultivation compelled him to found Eden. Originating as the first employee, he grew the brand to 17 locations. His invaluable industry knowledge gained through more than a decade of operating a cannabis company from the ground up, starting with two employees and growing to 200. This operational experience provides him with an understanding of the market, aligning him to propel company innovation. His successes have proven him a natural business leader with the ability to achieve company goals. Kolten leads Eden’s domestic expansion by building trust, fostering relationships and driving the leadership team. He encourages and motivates directors to advance employee engagement, resulting in the development of a high performing managerial team. His exceptional social skills, including the ability to liaise with external and internal stakeholders, is a characteristic that supports Kolten in consistently finding success in his business ventures. He is a brand visionary, able to see the “big picture”, enabling him to foster innovative new ideas and future initiatives. Kolten will drive the brand’s development and guide it towards long-term prosperity.
Cale Moodie’s career in capital market finance spans well over a decade in roles as founder, CEO, CFO, director and audit committee chair for numerous publicly traded companies on the TSX-V and CSE. He has been involved in over $120M in financings and instrumental in numerous transactions including IPOs, RTOs, and mergers and acquisitions over a multitude of industries. Prior to working in industry, Mr. Moodie worked for KPMG LLPs Industrial Markets Group in Vancouver. Mr Moodie is a CPA, CA in good standing with CPABC and CPA Canada.CFO
CALE MOODIE BSF, CPA, CA
GERRY TRAPASSOCEO
Gerry Trapasso is a lifelong entrepreneur, with a history of operation and ownership in customer service and retail businesses such as restaurant and mobile. He transitioned early on to become a pioneer in dispensary services, opening multiple locations throughout Vancouver and Toronto over the past 4 years. As a North American trailblazer in the industry, Gerry has seen the ups and downs as Canada has struggled with finding the best solution to the legalization of Cannabis. Gerry has experience consulting with organizations to guide them in the development of a strong network, reaching out to care givers, social workers, physicians and individual British Columbians. Gerry is an innovative, emotionally intelligent, calculated risk taker skilled at creating a strong business model, hiring the right staff, developing the brand, excelling at customer service and then replicating that model time and time again to ensure growth and expansion of company.
Cannabis Retail Portfolio April 2019 | Page .
KOLTEN TAEKEMA
DARIO MELIBOARD MEMBER
Dario Meli has been quietly, you could say, making a big impression on the ways we consume, create and disseminate content. For the past 15 years, the co-founder of Invoke, Foodee, Brightkit and Hootsuite has worked with and within some of the biggest names in the realms of technology and startups. With Quietly the message is loud and clear: quality content makes for happy consumer campers. With that thought front-of-mind, Dario helps brands and publishers fill their distribution channels with exceptional evergreen content backed by strategy, data, distribution and (proprietary) analytics. At the end of the equation, businesses increase their traffic, reach and revenue while consumers are provided with added value in the form of enriching and meaningful content. And if anyone knows a thing or ten about adding value, it’s Dario.
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BOARD OF DIRECTORS
GERRY TRAPASSOBOARD MEMBER BOARD MEMBER
DELANEY SCHWEITZERBOARD MEMBER
CALE MOODIEBOARD MEMBER
Delaney Schweitzer (Global Retail)
Executive Retail; Delaney is adept at strategic and innovative solutions to drive quality, productivity and revenues on global-wide activities. She led global operations for over 300+ retail locations and $2B in total annual sales over the course of her career. Former Executive Vice President (EVP), Global Retail, Lululemon Athletica. Delaney joined Lululemon in 2002 as part of the founding leadership team. She began as an educator and moved through the company to the EVP, North America Retail Operations role before taking on EVP, Global Retail (2013-2015). Currently Delaney is Co-Owner & CEO of TurF, a new experience concept in Kitsilano, BC. She serves on the Board for Bailey Nelson and on a family owned business advisory committee. Delaney is a graduate of Harvard University, Executive Advanced Management Program.
Cannabis Retail Portfolio April 2019 | Page �10
MARKET COMPARABLES
Choom Holdings Inc. CHOO:CSE $0.62 111
National Access Cannabis Corp. META:TSXv $0.88 164
Green Growth Brands Inc. GGB:CSE $4.00 747
Med Men Enterprises Inc. MMEN:CSE $3.75 485
Hightide Inc. HITI:CSE $0.47 92
Westleaf. Inc WL:TSXv $1.96 277
Fire & Flower Holdings Corp. FAF:TSXv $1.35 140
Stock Ticker
Stock Price
Market Cap.(CAD$ M.)Company
Current as of April 11, 2019
Cannabis Retail Portfolio April 2019 | Page .�11
CAPITAL STRUCTURE
Shares in Shell 574,000 Free Trade
Founder Shares 49.5 M All 3 Year Escrow
$0.05 Shares 10 M 6 month hold post listing
$0.15 Shares 5 M 6 month hold post listing
$0.30 Shares 10 M Free Trade
Total Shares 75,074,000
Total Proceeds $4,225,000
For more information contact [email protected]
