INVESTOR PRESENTATIONM A Y 2 0 2 0 | T S X V : M E T A
FORWARD LOOKING INFORMATIONCertain statements and information set forth in this Presentation constitute "forward-looking statements" and "forward-looking information" under applicable securities laws (collectively, "forward-looking statements") in respect to the Corporation. By their nature,forward looking statements are subject to a variety of factors that could cause actual results to differ materially from the results suggested by the forward looking statements. In addition, the forward looking statements require the Corporation to make assumptionsand are subject to inherent risks and uncertainties. Except for statements of historical fact, certain information contained herein constitutes forward-looking statements which include management's assessment of future plans and operations and are based on currentinternal expectations, estimates, projections, assumptions and beliefs, which may prove to be incorrect. There is significant risk that the forward looking statements will not prove to be accurate, that the Corporation’s assumptions may not be correct and that actualresults may differ materially from such forward looking statements. Accordingly, readers should not place undue reliance on the forward looking statements.
Forward-looking statements contained in this Presentation include, but are not limited to, future developments, including statements with respect to the acquisition of additional locations throughout Canada, the opening of additional locations throughout Canada, theestimated buildout production costs and gross margins for dispensaries, the success of the Corporation’s pharmacy operations, the approval of pending license applications, future financial performance including the sufficiency of cash on hand, the ability of theCorporation to generate positive cash flow and the ability of the Corporation to meet its obligations as they become due, the successful execution of the Corporation’s business strategies, goals, objectives or prospects including its business model, M&A strategy andmission and the exploration of other business opportunities in the cannabis industry, the use and benefits of the Corporation’s products and services, the Corporation’s favourable position in the market on a go-forward basis, demographic and market size/trends,forecasts of revenue and financial projections/growth potential/opportunities, competitive analysis, proposed synergies, projected milestones and other expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events orperformance, expected regulatory filings, review and approval dates, go forward management of the Corporation, start-up timelines and schedules, statements related to the continued overall advancement of the Corporation’s business and the Corporation’s plan tobecome a model for legalized safe distribution of cannabis and cannabis products throughout Canada, expected operations and possible future action on the Corporation’s part. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as “plans “, “expects” or “does not expect”, “is expected”, “proposed” “budget”, “scheduled”, “estimates “, “forecasts “, “intends “, “anticipates” or “does not anticipate”, or “believes; or variations of such words and phrases or statementsthat certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”.
Forward-looking statements are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance or achievements of the Corporation to be materially different from those expressed orimplied by such forward-looking statements. Such factors include, but are not limited to: general business, economic, competitive, political and social conditions; the accuracy of cost estimates; ability to obtain sufficient capital on satisfactory terms; changes incustomer demand; the successful and timely implementation of projects; continuance of the go forward management team’s position with the Corporation; the impact of changes in applicable laws and regulations at the Federal, Provincial and Municipal levels; theresults of continued development, marketing and sales; the risk that retail locations may not be opened or acquired; and the risk that pending licenses will not be granted approval. Although management of the Corporation believes that the expectations reflected insuch forward-looking statements are based upon reasonable assumptions and have attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that causeresults not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should notplace undue reliance on forward looking statements. The Corporation’s forward-looking statements are made only as of the date of this Presentation or the dates specifically referenced in this Presentation and the Corporation does not undertake to update or reviseany forward-looking statements to reflect new information or future events or circumstances, unless specifically required by applicable securities legislation. All forward looking statements contained in this presentation are expressly qualified by this cautionarystatement.
This Presentation contains future oriented financial information (“FOFI”) within the meaning of applicable securities laws about prospective results of operations, financial position or cash flows, based on assumptions about future economic conditions and courses ofaction and that is not presented in the format of a historical balance sheet, income statement or cash flow statement. The FOFI has been prepared by the Corporation’s management to provide an outlook of the Corporation’s activities and results. The FOFI has beenprepared based on a number of assumptions including the assumptions discussed above and assumptions with respect to the costs and expenditures to be incurred by the Corporation, capital expenditures and operating costs, taxation rates for the Corporation andgeneral and administrative expenses. Management does not have firm commitments for all of the costs, expenditures, prices or other financial assumptions used to prepare the FOFI or assurance that such operating results will be achieved and, accordingly, thecomplete financial effects of all of those costs, expenditures, prices and operating results are not objectively determinable.
The actual results of operations of the Corporation and the resulting financial results will likely vary from the amounts set forth in the analysis presented in this Presentation, and such variation may be material. The Corporation and its management believe that theFOFI has been prepared on a reasonable basis, reflecting management’s best estimates and judgments. However, because this information is highly subjective and subject to numerous risks including the risks discussed above, it should not be relied on as necessarilyindicative of future results. Except as otherwise required by applicable securities laws, the Corporation undertakes no obligation to update such FOFI and forward-looking statements and information.
The Presentation Materials reference to certain non-IFRS measures including “EBITDA” and to certain operating metrics in the industry. Non-IFRS measures including industry metrics do not have a standardized meaning prescribed by IFRS and are therefore unlikely tobe comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of our results of operations from management’s perspective.Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS.
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READER’S ADVISORYThis corporate presentation (the “Presentation”) has been prepared by management of Meta Growth Corp. (the “Corporation”), formerly National Access Cannabis Corp.,
as of May 26, 2020, and is based on public information and the Corporation’s confidential information. The information contained in this Presentation is subject to
updating, completion, revision, verification and amendment without notice which may result in material changes. This Presentation is not intended to provide financial, tax,
legal or accounting advice and does not constitute an offer to sell to any person, or a general offer to the public of, or the general solicitation from the public of offers to
subscribe or purchase securities of the Corporation. No securities commission or similar regulatory authority in Canada has reviewed or in any way passed upon the
Presentation, and any representation to the contrary is an offence.
Certain information contained herein includes market and industry data that has been obtained from or is based upon estimates derived from third party sources, including
industry publications, reports and websites. Third party sources generally state that the information contained therein has been obtained from sources believed to be
reliable, but there is no assurance or guarantee as to the accuracy or completeness of included data. Although the data is believed to be reliable, neither the Corporation
nor its agents have independently verified the accuracy, currency or completeness of any of the information from third party sources referred to in this presentation or
ascertained from the underlying economic assumptions relied upon by such sources. Any unauthorized use of this Presentation is strictly prohibited.
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COMPANY OVERVIEW
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A LEADING NATIONAL RECREATIONAL CANNABIS RETAILERRETAIL ENTERPRISE NETWORK OF 36 LOCATIONS*
* Corporately owned and operated, or services agreements locations.** Q2 quarter ended February 29, 2020
1 $13.5M in Retail Revenue Last Reported Quarter (30% Retail Gross Margin)**
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Roadmap for Improvement in Average Revenue Per Store & Gross Margin
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Senior Management Team with Extensive Retail & Brand Experience
2 Ontario Market Represents Substantial Growth Potential & is our Top Priority
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Significant Embedded Value – We Control a Growing Customer Data Set
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CALGARY, AB
EDMONTON, AB
ST. ALBERT, AB
LETHBRIDGE, AB
AIRDRIE, AB
36 LOCATIONS IN RETAIL NETWORK
TORONTO, ON*
KITCHENER, ON*
WINNIPEG, MB
BRANDON, MB
OPASKWAYAK, MB
PORTAGE LA PRAIRIE, MB
THOMPSON, MB
MORDEN, MB
MOOSE JAW, SK
12 Meta Cannabis Co.*services agreement
23 NewLeaf Cannabis
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1
1
1
1
1
1
13
4
1
3
23 91
2
6
1 Sicamous Trading Company*services agreement
SICAMOUS, BC*1
1
1
2
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WE KNOW RETAILPROVEN TRACK RECORD OF RETAIL EXPANSION & EXCELLENCE
⌲ 36 Stores in Retail Network⌲ 5 Provinces⌲ 66K+ Sq. Ft. Retail Space
⌲ $13.5M in Quarterly Retail Revenue**⌲ Experienced Retail Team of 350+ Employees
⌲ 950+ SKUs ⌲ 2.3M+ Transactions*⌲ $39 Average Purchase Value*
Metrics to date:
7* As of April 2020** As of Q2 quarter ended February 29, 2020
CANADIAN RETAILERS OWN THE CUSTOMER RELATIONSHIPThe retailer controls the relationship with both the consumer and the supply chain
⌲ We control the shelf and guide purchasing
⌲ We provide marketing in an age restricted environment
Real-time data drives inventory management, real-estate strategy, retail merchandising
⌲ We collect, aggregate and disseminate critical data
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PREPARING FOR NEW PRODUCTS
⌲ Adjusting retail environment & merchandising
⌲ Adapting to a more balanced and sustained supply from LPs
⌲ Educating store staff and consumer on the new product choices and cannabis in general
⌲ Implementing new technology at retail and online
CANNABIS 2.0 PRODUCT & MARKET EXPANSION
PREPARING FOR NEW MARKETS
⌲ More players
⌲ Saturated markets
⌲ Growth markets (ON, BC)
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WE ARE OPERATING EXPERTSProven Management Team with Retailing, Cannabis, Real Estate, HR and Compliance Expertise
TEMPLATED store design, staffing and training
CENTRALIZED SUPPORT for efficiencies of scale – HR, marketing, finance, legal
EXPERIENCED real estate management identifying best locations and leases
OUR BUSINESS MODEL & EXPERTISE ALLOWS SCALABLE OPERATIONS
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RETAIL BANNER |
⌲ 2 stores opened in Ontario (Toronto and Kitchener) & more stores planned for 2020+
⌲ New retail design
⌲ Efficiency & operational enhancements
⌲ Customer experience is paramount
⌲ Rich retail environment focused on merchandising, live sell
⌲ META is all about vibe
Welcome to META 2.0
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RETAIL BANNER |
Convenient Comfortable Community Focused
⌲ Network of 23 stores in Alberta – Calgary, Edmonton, Lethbridge
⌲ NewLeaf is your friendly neighborhood cannabis shop
⌲ Safe, inclusive & educational cannabis experience
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RETAIL BANNER |
Quality Expertise Responsibility
⌲ Network of 10 stores – 9 in Manitoba, 1 in Saskatchewan
⌲ Premium cannabis retail driven by innovation, technology & service
⌲ Welcoming, inviting & educational cannabis experience
VALUE CREATION BY INCREASING SAME STORE SALES & GROSS MARGIN
The projections in this slide are subject to a variety of factors which management cannot guarantee the accuracy of. Management used assumptions in creating this slide based on management’s judgement, analysis and internal forecasts.
Increasing Same Store Sales
E-Commerce Expansion
Improved LP Supply
Increased Focuson Accessories
Increased Product Assortment
Programs to Increase Average
Customer Purchase
Improved Product Quality and Consistency
Increasing Gross
Margin
Data Monetization
Evolving Pricing Strategy
Increased Focuson Accessories
Impact of Edibles& Concentrates
Introduction of White Label Products
Management Services
Agreements
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INVESTOR INFORMATION
CAPITALIZATION TABLE (AS OF MAY 21, 2020)
COMMON SHARES 236,679,786
OPTIONS 5,536,892
WARRANTS 54,536,422
RSU’s 4,264,601
CONVERTIBLE DEBT MATURES NOV 30, 2021
$21,150,000 convertible @ $1.08 per Common Share
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MANAGEMENT TEAM
CHRISTOPHERKANECHIEF OPERATING OFFICER
Former SVP of Operations and Strategy – Katz Group Canada/Drug Trading as well as VP of Category Management & Shared Services at McKesson Canada. Previously VP of Operations at Sobeys, and VP of Merchandising and Category Management at Price Chopper.
MARKGOLIGERCHIEF EXECUTIVE OFFICER
Former COO of QualicareFamily Homecare, previously COO of Right at Home Canada, and VP Sales and Operations of CrestcomOntario.
MATTRYANVICE PRESIDENT OF MARKETING
Former lead at Nintendo of Canada for retail & channel marketing as well as communications, marketing gaming experiences to the masses via product-to-market campaigns for the launch of Wii, Wii U, Nintendo 3DS and various software franchises.
JOY AVZARVICE PRESIDENT & LEGAL COUNSEL
Former head of Real Estate and Corporate Services for Royal & Sun Alliance Insurance Company of Canada (RSA). Prior to this acted as the Director of Legal and Assistant Corporate Secretary for RSA.
MIKE COSICCHIEF FINANCIALOFFICER
Former CFO of Lithium Americas Corporation and DLT Labs Inc. Current Chair of the Audit Committee of Eastern Platinum Limited.
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MARK GOLIGERDIRECTOR
As the former COO of QualicareFamily Homecare, Mr. Goligeroversaw the expansion of their business units across Canada and the United States.
As the former COO of Right at Home Canada, Mr. Goligerreduced caused employee turnover by 84%.
History of empowering front-line staff to provide high touch customer experience.
CHIEF CHRISTIANSINCLAIRDIRECTOR
Member of Opaskwayak Cree Nation (OCN, Manitoba), Co-chair of Manitoba’s Northern Economic Development Strategy.
Has worked with aboriginal groups focused on corporate development for major natural resource projects since 2002.
Well connected and regarded by the First Nations communities across Manitoba.
ANDREAELLIOTTDIRECTOR
Ms. Elliott brings over 20 years of retail executive experience to Meta Growth. She currently is Executive Vice President, Direct to Consumer at Moose Knuckles, a successful global Canadian luxury outerwear brand. Previously Andrea founded r2 retail resources, was VP & General Manager of PVH Canada, as well as an EVP at PwC and COO with Karabus Management, a wholly owned subsidiary of PwC focused on the retail industry. Prior to PwC, Ms. Elliott was the Director of Canada Operations for Williams-Sonoma Inc. and held various senior positions at Gap Inc.
BOARD OF DIRECTORS
CHRISTOPHER BRAWNDIRECTOR
Mr. Brawn brings over 30 years of real estate experience to Meta Growth, including 15 years as Vice President of Real Estate at Dollarama Inc. He is currently Principal of AEffectiveReal Estate Limited. Mr. Brawn obtained his HBA and MBA from the Ivey Business School at Western University.
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MICHAELSALIKENDIRECTOR
Partner and 11 years experience at Borden Ladner Gervais LLP, Canada’s largest law firm. Mr. Saliken has provided corporate advisory and legal services to companies of all stages, from start-ups to international exchange-listed companies.
Focused practice on advising information technology, entheogen and cannabis industry clients, in addition to working with private equity firms, investment banks and investment funds in those industries.
INVESTOR HIGHLIGHTS
The projections in this slide are subject to a variety of factors which management cannot guarantee the accuracy of. Management used assumptions in creating this slide based on management’s judgement and analysis.* Corporately owned and operated, or services agreements locations.
1 A Leading Canadian Recreational Cannabis Retailer by Revenue
4 Cannabis Retail First Mover Advantage
5 Management Team & Board with Track Record of Creating Shareholder Value
2 36 Stores in Retail Enterprise Network*
6 Leading Retail Data Collection
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THANK YOU