Investor Presentation April 2019
Caution on c con once cerning f for orward-look ooking s g statements This document contains forward looking statements or information (collectively "forward-looking statements") within the meaning of the "safe harbour" provisions of applicable securities legislation. All statements and information other than statements of historical fact contained in this document are forward-looking statements. In particular, this document contains forward-looking statements, with respect to, without limitation, our future financial position, capital and liquidity, cash dividends, business strategy, proposed acquisitions, expansion plans, budgets, government regulation and laws, projected costs, plans and objectives of or involving Alcanna. Prospective investors can identify many of these statements by looking for words such as "believes", "expects", "will", "intends", "projects", "anticipates", "estimates", "continues" or similar words and the negative thereof. Forward-looking statements reflect the Company’s current plans, intentions, and expectations, which are based on Management’s perception of historical trends, current conditions and expected future developments, as well as other factors it believes are appropriate in the circumstances. The Company’s plans, intentions, and expectations are inherently subject to significant business, economic, competitive and other uncertainties and contingencies regarding future events and as such, are subject to change. There is no assurance that the plans, intentions, or expectations upon which these forward-looking statements are based will occur. Forward looking statements are subject to risks, uncertainties and assumptions, including, but not limited to, those discussed elsewhere in this document. Although Management believes that the expectations represented in such forward looking statements are reasonable there can be no assurance that such expectations will prove to be correct and such forward-looking statements included in this document should not be unduly relied upon. Some of the factors that could affect future results and could cause results to differ materially from those expressed in the forward looking statements contained herein include, but are not limited to: risks relating to government regulation and changes thereto (whether by court decisions, citizen referenda, or otherwise); competition; the state of the economy including general economic conditions in Canada (including Alberta) and the U.S.; the unpredictability and volatility of Alcanna’s common share price; restrictions on potential growth; availability of sufficient financial resources to fund the Company's capital expenditures; changes in commodity tax rates and government mark-ups; risks relating to future acquisitions and development of new stores; the ability of management to execute the Company's business and strategic plans; Alcanna’s ability to locate and secure acceptable store sites and to adapt to changing market conditions; poor weather conditions; dependence on key personnel; labour costs, shortages and labour relations including Alcanna’s ability to hire and retain staff at current wage levels and the risk of possible future unionization; supply interruption or delays; dependence on suppliers; reliance on information and control systems; income tax changes; leverage and restrictive covenants in agreements relating to current and future indebtedness of Alcanna; credit risks arising from operations; dilution and future sales of Alcanna common shares; and the potential lack of an active trading market for Alcanna’s common shares and convertible debentures. These factors should not be construed as exhaustive. The information contained in this document, including the information set forth under "Risk Factors", and as disclosed in other filings made by the Company with Canadian securities regulatory authorities and available on SEDAR at www.sedar.com, identifies additional factors that could affect the operating results and performance of Alcanna. Readers are cautioned that this list of risk factors should not be construed as exhaustive. The forward looking statements contained herein are expressly qualified in their entirety by this cautionary statement. The forward looking statements included in this document are made as of the date of this document and Alcanna assumes no obligation to update or revise them to reflect new events or circumstances except as expressly required by applicable securities law. 2
New Name, New Company ALCANNA signals a departure from the Company’s previous history and a transformed business focused on growth in our two divisions: Al cohol and canna bis • One of the largest private sector retailers of alcohol in North America and the largest in Canada • Revenues in 2019 will be in excess of $700 million per year, with 20+ million transactions processed annually • 236 liquor retail stores: Large-format / “category-killers”, convenience-format, and discount-focused stores • Five retail cannabis stores launched Oct 17, 2018, with a multi-year growth plan grounded by good business sense 3
Highligh ghts Focused on Growth – Alcohol ALCANNA is aggressively focused on winning market share in its alcohol division Q4 2018 Same-store sales growth vs. LY: through growth in its new discount partnership (Canadian Liquor Retailers • Canada: 7.4% Alliance) and expansion of its Wine and Beyond brand, and further buildout of its • Alaska: 6.0% private label program in current markets and new potential markets such as Ontario Focused on Growth – Cannabis ALCANNA has quickly become an industry leader in the Canadian cannabis retail industry with the launch of its Nova Cannabis brand and industry leading sales per store metrics Fully Funded Plan ALCANNA has a strong balance sheet to execute its growth plans with no amounts drawn on its credit facility and ~$90 million in inventory fully paid for. 4
Capital Markets P Prof ofile TSX: Analyst Coverage: CLIQ (common shares) CLIQ.DB (convertible debentures) 37.1 million Shares outstanding: (April 5, 2019): $ 5.87 Recent price ~ $ 216 million Market capitalization: high / low: $ 11.56 / $ 4.00 52-week 5
Leadership T Team Executive Team Role Brief Biography James F.C. Burns Vice Chair and CEO Former private equity investor and Partner at Gordon Investment Corporation and Gordon Capital Corporation, Managing Director at CIBC Wood Gundy, Co- owner Director & CFO of Scott’s Restaurants and priszm brandz Inc., served 12 years in the Federal Government where he had many roles including the Chief of Staff to the Deputy Prime Minister of Canada. Paul Reid President & COO, Liquor 27 years of retail experience. Former VP, Corporate Retail Operations at FGL Division Sports with responsibility for $1.2 billion in sales from 216 corporate retail stores and 13,000 sales associates for the Sport Check, Nevada Bob’s Golf, Atmosphere, and Hockey Experts banners. David Gordey, CPA, CA CFO & EVP Served as an officer of Alcanna since March 2012 in the roles of Chief Corporate Services Operating Officer, Liquor (2016-2018), CFO (2014-2016), and VP Finance (2012-2014). Formerly of KPMG LLP where he served in their public company audit practice. Marcie Kiziak, B.Mgt., CPHR Managing Director Formerly the Vice President of Human Resources and Safety for Corrosion and (Cannabis Division) Abrasion Solutions Ltd. which included a secondment into Operations to lead SVP Human Resources a business transformation. 15 years in the oil and gas and construction sectors focused on senior HR Leadership, M&A and Integration. 6
Current St Stor ore Loc ocation ons and G Growth P Pot otential Alaska Anchorage: 17 Secondary Markets: 4 Alberta Cannabis Total: 21 - 5 cannabis stores opened in Alberta on October 17, 2018 British Columbia Ontario Cannabis + Liquor Lower Mainland: 12 – Private sector cannabis retailing now allowed + Vancouver Island: 11 private liquor retail model has been announced Interior: 10 - 1 cannabis store to open in spring 2019 Total: 33 Alberta Liquor Edmonton: 82 Calgary: 42 Secondary Markets: 57 Total: 181 7
Al Alcohol ohol R Retail D Division on
Recommend
More recommend
