A leading international Cannabis Investment Company Canaccord Conference May 2019 Unless otherwise stated all amounts are in USD 1
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 (co llectively, “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 th e 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 abi lity 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. Unless otherwise stated all amounts are in USD 2
About Captor Capital ▪ 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 3
Our Portfolio of Brands and Operating Companies Cultivation Manufacturing/Distribution Retail Washington California California Bricks & Mortar Delivery Washington Michigan Investments across all industry verticals Unless otherwise stated all amounts are in USD 4
Overview of Achievements ▪ Cash & cash equivalents of c.+$50mm ▪ Unlevered balance sheet Today ▪ Investments across all verticals ▪ Solid operating base in California ▪ Achieved MSO status in high value market of Michigan Apr 2019 – Signed LOI to Mar 2019 – acquire Signed LOI to Michigan retail, Feb 2019 – acquire Type 7 cultivation and Branded all manufacturing Feb 2019 – manufacturing retail stores plant Sold assets as Chai Dec 2018 – Medmen Cannabis Acquired branded Nov 2018 – Higher Level dispensaries Signed LOI of Care Sept 2018 – for $31mm to acquire dispensary Completed 2018 Santa Sep 2018 – acquisition Barbara Completed of Chai Aug 2018 – dispensary the Mellow Cannabis Co Signed LOI Extracts Mar 2018 – dispensary to acquire Acquisition Completed Chai Jan 2018 – closing of Cannabis Co Agreed to MedMen dispensary acquire I-5 equity and its two investment MedMen branded stores Unless otherwise stated all amounts are in USD 5
Summary of Our Portfolio – Status of M&A Company Licence(s) LOI Definitive Regulatory Closed Agreement Approval ✓ ✓ ✓ ✓ ▪ Manufacturing Mellow Extracts ▪ Distribution ✓ ✓ ✓ ✓ ▪ Retail Chai Santa Cruz ▪ Delivery ▪ Distribution (Pending) ✓ ✓ ✓ ✓ ▪ Retail California Chai Castroville ▪ Delivery ✓ ▪ Manufacturing Type 7 Extraction In Process Facility ✓ ▪ Retail Monterey County In Process ▪ Delivery ✓ ▪ Retail (Pending) Goleta Santa Barbara In Process ▪ Delivery (Pending) ✓ ▪ Retail Green Buddha and In Process Michigan ▪ Manufacturing Other Michigan Assets ▪ Cultivation ✓ ✓ ✓ ✓ ▪ Cultivation Fine Detail Greenway Washington ✓ ✓ ✓ ✓ ▪ Cultivation Cascadia Gardens ✓ ✓ ✓ Mainstem N/A N/A All annual licence applications have been submitted and are on schedule Unless otherwise stated all amounts are in USD 6
Michigan Asset Hub Green Buddha – Under LOI ▪ 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 Unless otherwise stated all amounts are in USD 7
Market – State of the Cannabis Industry ▪ 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 ▪ California Led - Biggest consumer market - Lots of growth to go – once black market declines - Forefront of brand development - Top genetics and SOPs ▪ 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 8
Market – A Variety of Challenges to Navigate 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 9
2019 Operational Strategy 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 10
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