Investor PresentationNovember, 2019
Forward Looking Statement Disclaimer
This presentation contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Statements in this presentation that are not representative of historical facts or information or current condition may be deemed to be forward-looking information. Generally, but not always, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as, "may," "will," "should," "could," "would," "expects," "plans," "anticipates," "believes," "estimates," "projects," "predicts," "potential" or "continue" or the negative of those forms or other comparable terms. All of the forward-looking information herein is qualified by this cautionary statement.
Forward looking statements in this presentation include, but are not limited to: statements with respect to forward looking statements.
Forward-looking statements contained herein are made as of the date of this presentation and are based on assumptions management believed to be reasonable at the time such statements were made, including management's perceptions of future growth, results of operations, operational matters, historical trends, current conditions and expected future developments, as well as other considerations that are believed to be appropriate in the circumstances. While Namaste considers these assumptions to be reasonable based on information currently available to management, there is no assurance that such expectations will prove to be correct. By their nature, forward-looking statements are subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities will not be achieved. A variety of factors, including known and unknown risks, many of which are beyond our control, could cause actual results to differ materially from the forward-looking information in this presentation. Such factors include, without limitation: [risks relating to the Company's ability to execute its business strategy and the benefits realizable therefrom, risks specifically related to the Company's international operations, and risks relating to the market price of the Common Shares. Readers are cautioned that the foregoing list of factors is not exhaustive. Because of these uncertainties, readers should not place undue reliance on the forward-looking statements. No assurances are given as to the future trading price or trading volumes of Namaste's shares, nor as to its financial performance in future financial periods. Except to the extent required by applicable laws, Namaste does not intend to update any of these factors or any of the forward-looking statements contained herein, whether as a result of new information, future event or otherwise.
Namaste highlights
• Global leader – leading online platform for cannabis products, accessories, and responsible education
• Footprint – Namaste operates the most comprehensive online marketplace for cannabis products and accessories in the world; 24 unique websites, 5 warehouses, 20 countries, 3 continents
• Unique business model - working alongside global producers (LPs) to connect with their customer base. We do the heavy lifting, to enable vendors to connect with customers, while benefiting from supply chain pricing pressure.
• Scalable – leverage AI technology to operate the world’s first personalized platform where consumers can learn, interact, and seamlessly purchase the right product
• Strong balance sheet - over $49M in cash as at August 31st
• Strong competitive advantages in business to consumer (“B2C”) and business to business (“B2B”) markets
Namaste is a leading online marketplace, leveraging innovative technology at scale to deliver a holistic e-commerce experience for everything Cannabis. Our success is based on our customer-centric approach to commercial and consumer business opportunities.
Namaste AI Health
Customer Experience
Shopping Experience
Where does Namaste fit?
Are we a tech company?Or a cannabis company?
Neither.We’ve created an incredible online marketplace, targeting a billion dollar market, where
customers enjoy a one-stop-shop approach for everything Cannabis. We are in
Cannabis 1.0 PLUS 2.0 with products available today and more to come!
ProductTechnology Community
Pillars to success
Distribution
Expanding our cannabis marketplacethrough advanced technology
AI integration into the Namaste ecosystem
Namaste is in a unique position within the cannabis domain
We expect to deliver a true full-stack marketplace, that has
access to an unbelievable dataset. When it comes to
machine learning, nothing is more important than data
In the marketplace setup, we expect to have access to this data, as we facilitate the entire customer journey, from education to consumption, including:• Content sites• Telemedicine flow• Cannabis Marketplace• Delivery system e-comm sites• Uppy journaling app
Technology: Namaste AI
There are multiple use cases we can address using AI, but let’s take the most painful one. Which strain is right for you?
How does this relate to cannabis?
To answer this, let’s look at a standard doctor’s appointment flow
You go see a doctor, and tell them you have a really hard time sleeping.
The doctor reviews your medical history, examines and interviews you.She takes the information above, and combines it with:• Their past experiences with people with similar
symptoms• Their knowledge of the existing medications
She then prescribes you medication.
After a week you come back and say “Doctor, this made things even worse. I sleep a bit better now, but I have headaches and depression”
The doctor says “I see. This is a possible side effect for people with your specific history, let’s try medicine B”
Repeat until solved.
But what if….
…this doctor knew your medical history?
…and that of every other patient with a similar profile to you?
…this doctor knew the details about all the available medications for this condition?
…and they remembered the outcome for each time they prescribed that medicine to a patient ?
…this doctor could connect all that information within seconds?
How much better do you think their choice of medicine could be?
This is what we’re building with our cannabis A.I.
Case examples
Next step – building the recommender engine
We believe this flow will allow us to reduce the “trial and error” cycle significantly, and help
people get relief for their specific condition
much faster!
Jane Doe, a patient, indicates that:• She’s 170 cm tall• Weighs 55 Kilograms• She suffers from anxiety and depression
Jane purchases “Kosher Kush” that has the following characteristics:• Form: dry• THC level: 29%• CBN level: 0.5%• CBD level: 1%
30 minutes post vaporizing, Jane reports:• Stress relief: 8/10• Insomnia relief: 6/10• Depression relief: 8/10
Based on this flow, user profile and product profile, our algorithm was able to recommend [strain name here].
Further build a personal recommendation profile
Purchase across different brands
Bundle different products
Unparalleled shopping experience
Unbiased information, yielding personal recommendations
Unique product bundling
How is purchasing products from Namaste / CannMart different?
Online products - Cannabis 1.0
CANNABIS
Infused Oils
Dried Flower
Glass Tasters
Pre-Rolls
Shake
OTHER PRODUCTS
Hemp pet supplements
Multivitamins
Skin Care
Cannabis books
Odor Control
ACCESSORIES
Portable Vaporizers
Desktop Vaporizers
Grinders / Storage
Rolling Papers / Trays
Bongs / Pipes
Products - Cannabis 2.0
● On October 17, 2019 edibles, extracts and topicals were
legalized in Canada.
● Edibles market to be considerably larger than leaf.
As one example of our edibles market potential, Namaste has a 49% equity ownership in Choklat, a premium, small-batch chocolate manufacturer with existing sales in Alberta, with a goal to roll out in western Canada and beyond; provides entry into the THC or CBD-infused edibles market in the event proposed regulations are passed.
B2B - offering larger order to provincial markets where CannMart is able to leverage its compliance expertise, packaging, storage capacity, and value added services.
Distribution
B2C - delivering legal, dependable, quality medicinal cannabis to home, work, hotel, café or private venue free of charge
Namaste has created a Community. Our marketplace integrates high quality brands, global customers, licensed producers, and a customer-
centric approach to ensure a frictionless experience.
Moreover, Namaste is not a competitor to LPs or brands - we are an enabler.
50% of consumers use marketplaces to conduct their online transactions
> 67% within the next 5 years.
~Forrester Research
Customer Obsession
Integrated media
Extreme personalization
Marketplace platform
Network effect
Namaste’s marketplace for consumers
To help consumers cut through the noise that
surrounds cannabis health and wellness products,
and help them better understand their individual
needs, enable informed decisions and delivering a
frictionless shopping experience.
The Namaste ecosystem
NamasteMD – Integrated telemedicine application connecting medical clients with
health care practitioners
Namaste AI – The Uppy app powered by Namaste’s unique AI engine identifies the
right product and pairing to address specific medical cannabis requirements
CannMart – Namaste’s “everything cannabis store” offering clients a large variety of products and strains to fill their prescription needs
Findify – Namaste’s e-commerce machine learning application that personalizes online experiences in real-time; a Shopify Plus Technology partner
Namaste Vapes – Namaste’s global e-commerce businesses that sell vaporizers, glassware, and related
accessories
Global Market Opportunity: Just 5% market share potential is 101.4BN.
(Source: Cannabis Data Forrester Forecast & Accessories Data - BIS Research)
How we’re maximizing B2C opportunities
Streamlining the customer experience
Being available to the customer wherever they are (WhatsApp, Facebook Messenger, SMS)
Reliable, quick shipping
We offer the consumer the full spectrum from start to finish. From the initial consultation with a nurse practitioner at NamasteMD to product fulfillment and delivery from CannMart.
How we’re maximizing B2B Business Opportunities
Control the supply chain and develop closer relationships with suppliers.
According to Health Canada, there are approximately 194 LPs in Canada. There are tens of thousands of growers in California alone, growing more cannabis than the market needs. As global legalization proceeds, this number will only grow, leading to more producers, more products, and more competition.
This is the heavy lifting that we take on:
● Attracting qualified leads - using our integrated media strategy
● Compliance requirements - where needed, through our telemedicine, EHR and privacy platform
● CRO - through personalization, elevated UX
● Fulfillment - through our own warehousing network, 3PL or same/next day delivery network
● Customer support - with professional, knowledgeable domain experts
The next biggest opportunity? Cannabis 2.0
Extracts
Diversified product selection
CBD
Topicals
Whatever the future holds
Glass
Edibles
Financials - Business Drivers
Vapes
Namaste Vapes and Australian Vaporizers - the Company’s global
e-commerce businesses that sell hardware, including vaporizers,
glassware and related accessories.
B2C - CannMart
CannMart is a customer centric online marketplace servicing the medical cannabis marketplace in Canada and around the world
Replacing sales from discontinued online businesses
B2B - Strategic Partners
Product distribution to large customers including the The Ontario Cannabis Store, BC Cannabis Stores, Saskatchewan LGA, CannTx
Products are sold to the adult-use market through retail stores
03
01 02
Financial Information
Beginning in Q1 2019, the Company has been steadily replacing discontinued businesses with new revenue channels, thus shifting reliance away from current Vape sites.
We’ve attracted leaders who have already accomplished so much.
(Built Global Payments) (+20% Net Revenue, +7% Stock Price, Dethroned Adidas to Become #2 Sports Apparel Brand)
($0 - $1.3MM Attributed Social Revenue, +98% Brand Share of Voice, +1.1MM Social Audience)
(Built proprietary technology to leverage AI)
(Market leader in unaided brand awareness )
(Mobile UX, 15K+ positive reviews)(Increased organic sessions on category landing pages by 53%)
(Apple Design Award winners)
(UX Design, Biometric UX Testing)
Management Team
• Meni Morim, Chief Executive Officer
• Meni has 17+ years of software development experience, most of which has been spent leading teams developing new, bleeding-edge products in Tokyo, NYC, Tel-Aviv, Stockholm, and for Mamram.
• Annie Holmes, Chief Financial Officer
• Annie brings over 15 years of senior executive experience leading corporations through complex restructurings, international expansion and large capital transactions, and has held the chief financial officer position for a number of private companies.
• Dave Giardino, Chief Operating Officer
• Dave has spent the last 14+ years in various roles in the Operations field. He has managed significant global operations; focusing mainly on distribution, logistics & customer service where he has been fortunate enough to build amazing teams with some very successful brands.
Board of Directors
• Branden Spikes, Chairman
Mr. Spikes brings twenty years experience working as CIO for Elon Musk at Zip2, PayPal, Tesla, and SpaceX where he helped pioneer, architect, and build some extraordinary technology.
• Andrew Wilczynski
Mr. Wilczynski is a highly seasoned senior business leader with extensive experience with a wide range of start-ups and multinational corporations. Mr. Wilczynski had been a partner in PwC’s deals practice for 20 years and has advised on and led significant financial and operational restructurings and reorganizations.
• Baran Dilaver
Mr. Dilaver will guide the development of the CannMart online marketplace. He has served as CEO and COO at public and private companies, launched over a dozen well-known brands worldwide, and is an expert in cannabis and consumer packaged goods and is a frequent speaker at industry conferences.
• Laurens Feenstra
Mr. Feenstra is currently the Product Manager at Waymo. Prior to this, he worked on some of Google’s most well-known products such as Android, Search & Chromebooks. He holds degrees in Human-Computer Interaction and Artificial Intelligence from University of Groningen, Netherlands.
• Meni Morim
Key Strategies and Priorities
• We will continue to leverage technology and scale up CannMart.com revenue as new products and customers are unveiled and join respectively.
• Create a community where consumers can learn about health & wellness products, interact with a variety of brands and purchase effortlessly.
• Create meaningful partnerships to fuel growth in the marketplace while reducing supply chain costs
• Create and maintain thought leadership in medical and adult-use cannabis and health/wellness
• Strategic expansion into new geographies and demographics
When do we expand to new geographies?
When medical is legal
When adult-use is legal
When cannabis derivatives are legal (CBD)
TAM is larger than >$1B.
Strategically expand into new demographics and geographies.
When do we expand our demographic?
When there’s rapid, growing demand for a new product
with TAM >$1B
When said product is legalized
First new markets and demographics
UKCBD by Sep 2019
Cannabis by Q2 2020
AustraliaBy Q3 2020
USCA, CO, NY, MA - Q4 2020
(CBD) Q2 2021 (Adult-Use)
CanadaCBD and oils by Dec 2019
Edibles in Dec 2019
Nootropics and
supplementsGlobal, by Q1, 2021
Capital Markets Profile
• Common shares outstanding – 323.8 million
• Stock options – 13.5 million (average $1.55 exercise)
• Warrants – 30.2 million (average $3.15 exercise)
• Fully diluted – 367.5 million
• Market Cap - $123 million
• Cash - $49.1 million
50% of consumers use marketplaces to conduct their online transactions
> 67% within the next 5 years.
Namaste Highlights
• Global leader – leading online platform for cannabis products, accessories, and responsible education
• Footprint – Namaste operates the most comprehensive online marketplace for cannabis products and accessories in the world; 24 unique websites, 5 warehouses, 20 countries, 3 continents
• Unique business model - working alongside global producers (LPs) to connect with their customer base. We do the heavy lifting, to enable vendors to connect with customers, while benefiting from supply chain pricing pressure.
• Scalable – leverage AI technology to operate the world’s first personalized platform where consumers can learn, interact, and seamlessly purchase the right product
• Strong balance sheet - over $49M in cash as at August 31st
• Strong competitive advantages in business to consumer (“B2C”) and business to business (“B2B”) markets