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Unless otherwise stated all amounts are in USD
A leading international Cannabis Investment Company
Canaccord Conference
1
May 2019
Unless otherwise stated all amounts are in USD
Disclaimer
This presentation (together with any supplements and any other information that may be furnished to prospective investors by Captor Capital
Corp contains “forward-looking statements” or “forward-looking information” within the meaning of applicable securities laws (collectively,
“forward-looking information”). Forward-looking information is generally identifiable by the use of the words “believes”, “may”, “plans”, “will”,
“anticipates”, “intends”, “budgets”, “could”, “estimates”, “expects”, “forecasts”, “projects” and similar expressions, and the negative of such
expressions. Forward-looking information in this presentation includes, but is not limited to, statements concerning economic trends, the size of
the market, the timing and scope of Captor Capital Corp capital expenditures, the anticipated use of proceeds, financial forecasts, and the
proposed ownership allocation.
Captor Capital Corp has based this forward-looking information on factors and assumptions about future events and financial trends that it
believes may affect it’s financial condition, results of operations, business strategy and financial needs, including the ability of Captor Capital
Corp to generate cash flow from operations and obtain necessary financing on acceptable terms, general economic, financial market, regulatory
and political conditions in which Captor Capital Corp operates, consumer interest in Captor Capital Corp products, competition, anticipated costs,
government regulation of Captor Capital Corp activities and products and in areas of taxation and environmental protection, the timely receipt of
any required regulatory approvals, and Captor Capital Corp ability to obtain qualified staff, equipment and services in a timely and cost efficient
manner. While Captor Capital Corp considers these assumptions to be reasonable, these assumptions are inherently subject to significant
uncertainties and contingencies. Additionally, there are known and unknown risk factors which could cause Captor Capital Corp actual results,
performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the
forward-looking information contained herein. Known risk factors include, among others, regulatory risks, the lack of a public market for the
securities of Captor Capital Corp, the limited operating history and financial track record of Captor Capital Corp and the uncertainty as to
revenues, reliance on key personnel, product liability, unfavourable publicity, management of growth and the difficulty in forecasting.
2
Unless otherwise stated all amounts are in USD
About Captor Capital
3
▪ Captor Capital Corp. (“Captor”) is a vertically integrated
cannabis investment company listed on the Canadian
Securities Exchange, OTC USA, and the Frankfurt Stock
Exchange.
▪ Our primary investment strategy is to
- Acquire leading cannabis companies across all
industry verticals
- Develop brands which can be leveraged into new
markets- e.g. Michigan
- Expand our investment portfolio across the USA
and eventually internationally
- Identify and invest into synergistic industries such
as hemp based CBD
▪ Our goal is to build a valuable and sustainable portfolio of
leading cannabis companies and provide a robust return to
our shareholders.
Unless otherwise stated all amounts are in USD
Our Portfolio of Brands and Operating Companies
4
Cultivation Manufacturing/Distribution Retail
Investments across all industry verticals
Bricks & Mortar Delivery
California
California
Michigan
Washington
Washington
Unless otherwise stated all amounts are in USD
Overview of Achievements
5
Jan 2018 –Agreed to acquire I-5 and its two MedMenbranded stores
Mar 2018 –Completed closing of MedMenequity investment
Aug 2018 –Signed LOI to acquire Chai Cannabis Co dispensary
Sep 2018 –Completed the Mellow Extracts Acquisition
Sept 2018 –Completed acquisition of Chai Cannabis Co dispensary
Nov 2018 –Signed LOI to acquire Santa Barbara dispensary
Dec 2018 –Acquired Higher Level of Care dispensary
Feb 2019 –Sold Medmenbranded dispensaries for $31mm
Feb 2019 –Branded all retail stores as Chai Cannabis
Mar 2019 –Signed LOI to acquire Type 7 manufacturing plant
Apr 2019 –Signed LOI to acquire Michigan retail, cultivation and manufacturing assets
2018
Today
▪ Cash & cash equivalents of c.+$50mm ▪ Unlevered balance sheet▪ Investments across all verticals▪ Solid operating base in California▪ Achieved MSO status in high value market of Michigan
Unless otherwise stated all amounts are in USD6
Company Licence(s) LOI Definitive Agreement
Regulatory Approval
Closed
Cal
ifo
rnia
Mellow Extracts ▪ Manufacturing▪ Distribution
✓ ✓ ✓ ✓
Chai Santa Cruz ▪ Retail▪ Delivery▪ Distribution (Pending)
✓ ✓ ✓ ✓
Chai Castroville ▪ Retail▪ Delivery
✓ ✓ ✓ ✓
Type 7 Extraction Facility
▪ Manufacturing ✓ In Process
Monterey County ▪ Retail▪ Delivery
✓ In Process
Goleta Santa Barbara ▪ Retail (Pending)▪ Delivery (Pending)
✓ In Process
Mic
hig
an Green Buddha and Other Michigan Assets
▪ Retail▪ Manufacturing▪ Cultivation
✓ In Process
Was
hin
gto
n
Fine Detail Greenway ▪ Cultivation ✓ ✓ ✓ ✓
Cascadia Gardens ▪ Cultivation ✓ ✓ ✓ ✓
Mainstem N/A ✓ ✓ N/A ✓
Summary of Our Portfolio – Status of M&A
All annual licence applications have been submitted and are on schedule
Unless otherwise stated all amounts are in USD7
▪ Joint venture
- Captor to own 50.1%
- Green Buddha Group to own 49.9%
- Captor has option to purchase Green Buddha shareholding
▪ 20 cannabis retail licenses
▪ 8 cultivation licenses
- 325,000 sq. ft. cultivation facility
- Projected payback ~1.3 years
▪ 2 processing licenses
▪ Bringing together Captor Capital’s strengths in the cannabis and capital markets
with Green Buddha’s team’s expertise in the cannabis and retail tobacco store
industries
Green Buddha – Under LOI
Michigan Asset Hub
Unless otherwise stated all amounts are in USD
Market – State of the Cannabis Industry
8
▪ California Led- Biggest consumer market- Lots of growth to go – once black market declines- Forefront of brand development- Top genetics and SOPs
▪ Industry Growth for Foreseeable Future- Legalisation expanding to new States- Increase of recreational licencing- Creation of new products (e.g. beverages)- Regulators starting to address black market- Maturing of brands
Source: Marijuana Business Daily 2018
▪ Multi-State Operator’s (“MSO”) Rewarded- Market rewarding:
- Market diversification- Brand extension- Barriers to entry
- Likely will lead to acceleration of consolidation- Brand licencing will become competitive- Ability to monetise existing SOPs in new markets
Unless otherwise stated all amounts are in USD
Market – A Variety of Challenges to Navigate
9
Competition▪ Black Market▪ Uncontrolled licencing can lead to substantial competition and impact profitability (size to survive)▪ CBD market
Regulation▪ Highly fluid, incomplete, contradictory, time consuming……….and expensive!▪ 280E tax▪ Limited “Green Zones” creates hidden costs (e.g. higher than market property leases)▪ Lack of viable banking and finance▪ Construction and other regulatory permitting slow and cumbersome
Interconnected Infrastructure ▪ Despite industry growth many operations taking longer to get up and running – holds back the macro industry▪ Supply Chain Pricing Pressure
- Flower pricing dropping- High end and bio-mass cultivators are surviving the others are at risk of dying- At current prices chances are many smaller operators will struggle to survive- Lots of oil production coming online
Delivery Service▪ Historically marijuana is a delivery culture▪ Current delivery services expensive for retailers▪ Puts stress on brick and mortar retail owners who don’t develop delivery strategy▪ Impact on brick and mortar valuations unknown
Unless otherwise stated all amounts are in USD
2019 Operational Strategy
10
California Market▪ Complete northern “California Retail Cluster”
- Leverage the Chaicannabis.com delivery service▪ Create our own branded products via our Type 7 and Type 6 facilities▪ Licence our brands to new markets▪ Expand our retail footprint in the south via acquisition of revenue producing stores▪ Potentially invest into cultivation for bio-mass to secure supply chain
Michigan Market▪ Complete the acquisition and integrate into Group▪ Seek additional acquisitions to expand retail portfolio▪ Standardise the Green Buddha Retail stores▪ Initiate Green Buddha delivery service▪ Licence California Brands for the local market▪ Implement the cultivation facility with leading genetics and team▪ Develop manufacturing and vertically integrate the operations
Global Market▪ Identify new States in the USA to enter with large population
- E.g. Florida▪ Seek to acquire CBD companies that are synergistic▪ Consider consolidation options that enhance market size▪ Examine international options
Unless otherwise stated all amounts are in USD
Expected Results of Our Strategy
11
-
50,000,000
100,000,000
150,000,000
200,000,000
250,000,000
2019 2020
Total Revenue in US$
California Michigan
-
10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
60,000,000
2019 2020
Total EBITDA in US$
California Michigan
47%
53%
34%
66%
56%
44%
41%
59%
Captor Expects Significant Revenue Growth Equating to $89.6mm and $206mm in 2019 and 2020, Respectively1
Attractive EBITDA Results on an Unlevered Balance Sheet1-Assumes completion of all transactions under LOI by August 2019; and assumes completion of currently owned manufacturing operations by 30 June 2019
Unless otherwise stated all amounts are in USD
How We Compare to Our Peers
12
A Peer Group Comparison Indicates Substantial Undervaluation of Captor Cannabis Comps
Apr 2019
Consensus '19E Consensus '20E Consensus '19E Consensus '20E
52-Week 52-Week FD Mkt. FD EV / EV / EV / EV / Rev EBITDA
Company Last Price High Low Cap. ($M) EV ($M) Rev EBITDA Rev EBITDA Rev EBITDA Rev EBITDA Growth Margin
Canopy $14,440 $14,650 21.9x 141.9x 12.9x 44.8x $669 $103 $1,133 $327 69% 49%
Aurora $8,950 $9,030 14.4x 121.8x 6.6x 22.7x $626 $74 $1,359 $397 117% 63%
Cronos $5,994 $5,959 51.7x 173.3x 24.2x 67.2x $115 $34 $246 $89 114% 77%
Tilray $5,460 $5,400 37.7x 379.1x 16.9x 138.6x $143 $14 $319 $39 123% 27%
Curaleaf $4,070 $420 1.4x 3.6x 0.7x 1.7x $311 $116 $586 $245 89% 79%
Green Thumb $2,990 $2,230 10.6x 24.8x 2.7x 7.7x $211 $90 $833 $290 296% 138%
Aphria $2,410 $2,500 6.7x 31.1x 3.5x 11.9x $371 $80 $716 $210 93% 57%
Trulieve $1,666 $1,590 7.4x 16.6x 5.5x 12.2x $216 $96 $292 $131 35% 60%
MedMen $1,380 $483 1.4x -7.3x 0.7x 26.2x $337 ($66) $707 $18 110% 5%
Hexo $1,333 $1,339 8.8x 48.3x 4.7x 16.9x $152 $28 $286 $79 88% 52%
OrganiGram $1,003 $936 5.8x 14.6x 3.5x 9.4x $161 $64 $271 $99 68% 62%
Green Organic $841 $882 2.9x 12.4x 1.5x 3.4x $300 $71 $600 $259 100% 86%
CannTrust $783 $804 4.4x 24.9x 2.7x 14.8x $185 $32 $301 $54 63% 29%
iAnthus $769 $415 2.3x 14.6x 1.2x 4.6x $182 $28 $338 $90 85% 50%
Village Farms $664 $771 4.0x 26.1x 3.8x 18.3x $193 $30 $204 $42 6% 22%
CannaRoyalty $563 $520 3.4x 25.6x 1.9x 10.2x $155 $20 $269 $51 74% 33%
Supreme $425 $449 4.2x 15.5x 2.6x 7.4x $107 $29 $176 $61 65% 57%
Flowr $383 $383 19.8x 56.3x 2.8x 8.3x $19 $7 $138 $46 615% 238%
Liberty Health $233 $243 3.3x 18.6x 1.7x 5.4x $75 $13 $146 $45 96% 60%
Cannex $233 $323 20.0x - 31.7x - $16 nm $10 nm -37% nm
WeedMD $217 $184 2.9x 10.4x 1.4x 4.4x $64 $18 $132 $42 107% 66%
Captor $41 $81 0.9x 3.5x 0.4x 1.4x $90 $23 $206 $59 129% 66%
Emblem $185 $185 2.5x 16.7x 1.3x 5.1x $75 $11 $142 $36 88% 48%
Average 10.4x 53.3x 5.9x 20.1x $208 $42 $409 $123 113% 65%
High 51.7x 379.1x 31.7x 138.6x $669 $116 $1,359 $397 615% 238%
Low 0.9x (7.3x) 0.4x 1.4x $16 ($66) $10 $18 -37% 5%
Median 4.4x 21.7x 2.7x 9.8x $161 $29 $286 $70 89% 59%
$1B+ EV 19.9x 117.1x 9.6x 40.2x $315 $57 $648 $183 113% 61%
Sub-$1B Mkt Cap 5.9x 19.9x 4.3x 10.2x $125 $29 $226 $74 112% 68%
'20E Rev Growth >75% 11.2x 60.5x 4.7x 21.7x $205 $36 $450 $130 1.5x 0.7x
'20E Rev Growth <75% 8.9x 37.9x 8.1x 16.7x $213 $53 $332 $109 0.4x 0.4x
Unless otherwise stated all amounts are in USD
Appendix
13
Unless otherwise stated all amounts are in USD
Jeffrey Berkowitz
US Legal Counsel
Mr. Berkowitz has practiced corporate, business
and tax law for more than 35 years. He has
extensive experience in a wide variety of
transactions in many industries, with particular
emphasis on structuring complex transactions,
including entity organization, financing, mergers
and acquisitions, real estate and US-Canada
cross-border transactions.
Since 2013, Mr Berkowitz has been actively
involved with the rapidly-growing cannabis
industry, assisting clients in obtaining financing,
securing licenses and acquiring cultivation
facilities and established dispensaries. Earlier in
his career, Mr. Berkowitz practiced as a
Certified Public Accountant.
Wayne Lipschitz
COO of wholly owned subsidiary
Mr. Lipschitz founded a professional firm that
provides outsourced back office accounting and
CFO services to the restaurant and retail
industries since January 2012. Mr. Lipschitz
also served as the outsourced President and/or
CFO for several restaurant concepts. Prior to
this Mr. Lipschitz held various CFO and
controller positions with private, public and
private equity backed companies such as
Spectrum Clubs, Inc. (Spectrum Athletic Clubs),
Grill Concepts. Inc. (Grill on the Alley and Daily
Grill), San Manual Band of Mission Indians (San
Manual Casino and other economic
developments), International Coffee & Tea, LLC
(Coffee Bean & Tea Leaf), The Cheesecake
Factory Incorporated (The Cheesecake
Factory), and Wolfgang Puck Food Company,
L.P. (Wolfgang Puck Cafes and frozen foods).
In addition, Mr. Lipschitz is a CPA and has
worked for a national CPA firm, Laventhol &
Horwath. Mr. Lipschitz holds a BS degree in
Accounting from California State University,
Northridge.
Management Team
A balanced and diverse team with extensive experience in cannabis and M&A
14
John Zorbas
President and Director
Mr. John Zorbas is an entrepreneur with a
proven track record in the metals exploration
and development industry and the investment
banking. He has held senior advisory positions
in various facets of business including
operations, marketing, sales, strategic planning
and structured finance. Mr. Zorbas has been
with the Company since June 2008. He also
serves as URU Metals Ltd (Captor Capital
investment) Chief Executive Officer since 2
June 2014. He was appointed Chairman of
Management Resource Solutions PLC in April
2017. He also served as the President of MGM
Productions Group Inc a company focused in
media and retail investments., as well as
Director of both ZorCorp Capital Holdings and
Starline Capital Holdings Infrastructure Fund.
He served as the Chief Executive Officer and a
Director of Monchhichi PLC (former: Mercom
Capital PLC) until 23 December 2016. Mr.
Zorbas also served as a Director of Stratton
Capital Corp. until 20 October 2016. He is a
founding shareholder of Asian Coast
Development Ltd. Mr. Zorbas holds an Honors
Bachelors in Economics from the University of
Toronto.
Shawn Groshans
Head of Business Development
Mr Shawn Groshans has approximately 20
years in merchant banking and corporate
finance with experience in private equity
investing, advising companies on mergers and
acquisitions, capital raising, business
development, and restructuring. Subsequent to
his experience in banking he took a role as
Head of Business Development for a global
intelligence and cyber-security firm, in addition
to his involvement in entrepreneurial ventures
which includes the cannabis industry.
Mr. Groshans serves as a Non-Executive
Director for Tower Financial and he has
previously worked for Salamanca Group,
Richmond Park Partners, S-RM and PwC.
Unless otherwise stated all amounts are in USD
Gavin Davidson
Head of Communications
Mr Davidson has more than 20 years
of progressive PR experience and a
Masters in Strategic Communication
from the University of Central
Lancashire in the UK. Currently Mr.
Davidson leverages his extensive
and diverse communications
experience in driving Captor Capital‘s
media and investor relations
services.
With proven success in senior
agency and client side roles, he was
previously Vice President of
Communications for Asian Coast
Development, a Canadian company
building a $4 billion integrated resort
complex on the white sand beaches
of Vietnam.
Matt Longo
Director of Manufacturing &
Cultivation
Mr. Matt Longo has over 15 years
operating experience in the cannabis
industry and has extensive
agricultural and supply chain
knowledge. Additionally he has years
of experience in general agriculture,
and held various operational roles at
Anheuser-Busch Distribution.
Mr. Longo has guided the set-up of
Prop 215 compliant businesses in
California and navigated the complex
and multi-layered regulatory
environments. Mr. Longo has owned
and operated two cultivation facilities
with a total of 20,000 square feet and
employed roughly 100 employees.
Prior to his role with Captor he owned
and operated a dispensary and was
involved in three other cannabis-
related business ventures across the
United States, including a 70-acre
hemp production farm in Franklin, TN
and a 22,000 acre licensed hemp
farm in Madisonville, Kentucky. Both
farms are licensed by the Department
of Agriculture and subject to stringent
protocols as a hemp producer.
Joshua Lechner
Purchasing & Inventory Manager
Mr. Lechner has always been a
passionate activist within the
cannabis industry for over a decade.
As the purchasing Supervisor for
Captor, he has been with Chai since
2012, and has an extensive network
in the California cannabis industry.
Furthermore, he has a diverse
operating background ranging from
planting, cloning, and growing, to
harvesting, processing &
manufacturing, and retail dispensary
management.
Prior to his Purchasing Manager role
Mr. Lechner managed the Chai Santa
Cruz dispensary guiding it to a multi-
million dollar operating brand.
Oliver Summers
Director of Retail Dispensaries
Mr. Oliver Summers has been a Los
Angeles Medical Cannabis advocate
since 2005, speaking and promoting
cannabis numerous times on the
behalf of patients. He has owned and
operated three dispensaries in LA
since 2006 and is an experienced
grower of boutique cannabis strains.
Mr. Summers is an original member
and moderator of the Greater Los
Angeles Collective Alliance (GLACA),
a member of Americans For Safe
Access (ASA), Marijuana Policy
Project (MPP), Patients Advocacy
Network (PAN). He is also a former
member of the South Robertson
Neighborhood Council, Pico
Neighborhood Council, Melrose West
Neighborhood Council and UFCW
Local 770.
15
Operations Team
A balanced and diverse team with extensive experience in cannabis and M&A
Unless otherwise stated all amounts are in USD
THANK YOU
16
Captor Capital Corporation
4 King Street West, Suite 401,
Toronto, ON M5H 1B6, Canada
John Zorbas
johnz@captorcapital.com
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