1 CLS Hold ldin ings USA, Inc. Inve vesto tor r Presenta tatio tion December 2017 OTCQB: CLSH
Disclaimer 2 This presentation contains "forward-looking statements" made under the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 that are based on current expectations, estimates, forecasts and assumptions and are subject to risks and uncertainties. Words such as "anticipate," "assume," "believe," "estimate," "expect," "goal," "intend," "plan," "project," "seek," "target," and variations of such words and similar expressions are intended to identify forward-looking statements. Such forward-looking statements are subject to certain risks, uncertainties and assumptions that may cause actual results to differ materially from those expressed by the forward-looking statements, including, but not limited to, the following: general economic, industry and market sector conditions; the Company's future growth and the ability to obtain additional financing to implement the Company's growth strategy; the ability to anticipate and respond to industry trends and preferences; intense competition. In evaluating these statements, you should carefully consider these risks and uncertainties and those described under the headings "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" in the Company's most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, including but not limited to the discussion under “Risk Factors” therein, which the Company has filed with the SEC and which may be viewed at http://www.sec.gov. All forward-looking statements speak only as of the date on which they are made. The Company undertakes no obligation to update any forward-looking statement or statements to reflect events or circumstances after the date on which such statement was made, except to the extent required by applicable securities laws. The professionals listed under the heading “Corporate Information” are identified solely for informational purposes. Such professionals have not reviewed or assisted in the preparation of this presentation and the inclusion of their contact information should not be construed as an endorsement or approval of the information contained herein.
3 1 WHAT Acquisition Strategy of Vertically Integrated Cannabis Licenses for Dispensary, Cultivation & Production 2 A Proven /Validated Proprietary Technology & Method for Extraction & Conversion of Cannabinoids from a Plant IS CLS 3 Resulting in Increased Output from the Plant and Higher Revenue for Growers HOLDINGS 4 Increased Yield, Higher Quality, More Consistency ? 5 Penetrating the $6B Market & Seeking to Grow Market Share Source: Data from ArcView Market Research
Highlights 4 Proprietary Technology & Methods Proven/Validated Extraction & Conversion of $5M Cannabinoids from a Plant Increased Yield, Higher Quality & More Consistency Invested By Management and Insiders Game Changer to the Market by Increasing Plant Output & Revenue for the Growers Developments 72% Vertically Integrated Cannabis Licenses Nevada – Las Vegas Oasis Cannabis Held By Management and Insiders
Market Opportunity 5 Past and Projected North American Legal Cannabis Spending (Billions $) $20.0 $18.0 $18.0 $14.6 $16.0 $14.0 $11.2 $12.0 $10.0 $8.1 $6.7 $8.0 $6.0 $4.0 $2.0 $0.0 2016 2017 2018 2019 2020 State-By State Legalization Reform Is Sweeping The United States 29 States Legalized For Medical Expectations of Additional States to be Legalized for Recreational in 2017/2018 7 States Legalized For Recreational Source: Data from ArcView Market Research
Nevada 6 Past and Projected Nevada Legal Sales of Cannabis (Millions $) $650.0 $700.0 $600.0 Key Points $500.0 $500.0 $350.0 $400.0 Only 45 dispensary licenses issued in the greater Las Vegas $300.0 $150.0 area $200.0 $100.0 $50.0 $100.0 35 additional dispensary licenses available January 2018; $0.0 2015 2016 2017 2018 2019 2020 no more allowed until July 2019 at the earliest (per statute) Expanding medical market Recently passed adult use market, which went into effect July 1, 2017 Source: Data from ArcView Market Research
The Opportunity 7 Consolidation of CLS Holdings, Inc., a high quality public cannabis company with Oasis Cannabis, one of the top cannabis licensees in the rapidly expanding Nevada market Two companies will create a powerhouse publicly traded vertically integrated producer and retailer that should allow for added value for shareholders Nevada cannabis market is one of the fastest growing in the US with a projected 600% growth rate from 2017 to 2020 $20 million projected revenue after first phase of grow and build out of processing facility are completed with profitability expected over next 18 months on an annualized basis with strong exponential growth into 2019 and beyond Opportunity to expand into other western states as a licensee/producer and retailer
8 Vertically Integrated with Dispensary, Cultivation & Production Licenses In Clark County Dispensary location among top 10 in proximity to Las Vegas Blvd (“The (“Strip”) and downtown North Las Vegas Cultivation and Production within the most friendly jurisdiction for medical marijuana establishments Initial planned buildout of 1,150 square feet complete (to qualify for early start on 7/1/2017) Phased planned build out within 22,000 square feet facility capable of over 4,500 pounds Oa Oasis is M Medica dical C l Cannabis bis per year Di Dispensary ry
Oasis Cannabis 9 Adult Use & Medical Cannabis Cannabis Dispensary City of Las Vegas location – 1800 Industrial Ave. Revenues >$600,000 1st month (July, 2017) One block off Las Vegas Blvd 5x increase over historical monthly medical revenues Less than five minutes from main tourist population Based on projected revenues and dispensary numbers alone, average sales per dispensary should increase from $1.3M in 2016 to >$20M in 2020 Operational since 12/24/2015 Market Potential (Medical + Adult Use) Accessible to 45 million tourists/year Large, efficient space can accommodate >800 pt’s/day
Cultivation Overview 10 North Las Vegas location—203 E. Mayflower Ave. 22,000 square foot warehouse—18,000 square feet allocated to cultivation Phased approach to grow with market demand Initial focus on establishing brand presence through high quality, craft cannabis Able to expand rapidly to accommodate demand Potential for over 4,500 pounds of flower per year (full build-out) and over $8M in anticipated annual revenue Potential 30,000 square foot subterranean greenhouse at existing grow/extraction facility Photo Of The Oasis Dispensary
Production Overview 11 4,000 square feet allocated to production Will manufacture solid and oil concentrates, infused products and edible marijuana products CLS’s Proprietary extraction and conversion method with options for supercritical CO2 and hydrocarbon Some Of Oasis’s Many Products Significant growth of concentrate market penetrating over 40% sales in mature markets Currently producing concentrates, pre-rolled joints, vape pens Potential for over $6M in annual revenue North Las Vegas Grow/Production Facility Located At 203 E. Mayflower Avenue.
Competitive Advantages 12 Founders & Management with diverse backgrounds & skillsets Successful healthcare professionals, entrepreneurs, previous CFO/banking, and corporate law experience. Unique strengths in start-ups, small business management, community involvement, and organizational leadership Physician leader with 25 year Las Vegas reputation allows outreach and collaboration to acquire more medical customers Secured key dispensary location in Downtown Las Vegas 1 of approximately 10 dispensaries located to provide direct access to Clark County’s 45 million annual tourists; easy access from strip & downtown Large space with high bandwidth (>800 customers/day) Currently securing 2nd (and possibly 3rd) location for additional Adult Use dispensaries Cultivation/Production in North Las Vegas Warehouse Staged approach to buildout to conserve capital and assess supply/demand CLS’s proprietary extraction and conversion process
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