A vertically integrated cannabis company providing recreational and medical marijuana based products through our leading retail stores Shareholder Presentation August 2018 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 (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. Unless otherwise stated all amounts are in USD 2
Table of Contents § About Captor § Our Strategy § Cannabis market § Our Pipeline § Our Performance § Our Team Unless otherwise stated all amounts are in USD 3
About Captor Capital Corp • Captor Capital Corp. (“Captor”) is a vertically integrated cannabis company providing recreational and medical marijuana based products to consumers via its leading brands and dispensary locations. • Listed on the Canadian Securities Exchange, the OTC USA, and the Frankfurt Stock Exchange, Captor owns and operates advanced growing facilities which produce consistent high quality contaminant free marijuana for its customers, as well as other high demand cannabis based goods for consumption. • Through ownership of top brands and high value dispensary locations, Captor’s revenue is expected to exceed a run rate of $45 million, without considering future acquisitions. • Furthermore, Captor seeks to capitalize upon the combination of its intellectual property and extensive network of industry relationships to provide its customers with a wide variety of products, and a best in class experience. Unless otherwise stated all amounts are in USD 4
The Captor Strategy • To efficiently engage Captor’s well defined and deep pipeline of cultivation and dispensary targets, acquire them at favourable prices, and unlock the intrinsic value of these companies through Acquire operational enhancements. Profitable Operations at • The primary strategic focus of Captor is to acquire profitable, established cannabis focused Favourable companies that require capital to scale. Pricing Expand • Target investments will be top quality operations with experienced management and defined Geographies Identify business plans. and Product Synergies Offerings • Acquisitions will be selected based off of synergy, possibly with current existing brands, locations, Robust & and operations. Consistent Shareholder • Upon acquisition the investments will be integrated and supported to enhance operations and Return profitability. Expand Integrate Team and Ops and • Expand team of experienced operators to support organic growth. Intellectual Achieve Property Synergies • Initial geographic focus will be on California and Nevada as these are high growth markets, with large populations and direct synergies. Deploy Capital to • Captor will continue to expand its geographic footprint as the industry evolves legally within the Scale USA, and potentially internationally, depending on the regulatory framework. • The management team at Captor believe that having a controlled scaling with a primary focus on profitability will lead to a consistent and robust shareholder return. Unless otherwise stated all amounts are in USD 5
Market Unless otherwise stated all amounts are in USD 6
The Current Cannabis Market Source: Marijuana Business Factbook 2017 Marijuana Legalization Status Medical marijuana broadly legalized Marijuana legalized for recreational use No broad laws legalizing marijuana Source: www.governing.com Unless otherwise stated all amounts are in USD 7
California Cannabis Market Formalizing the informal market alone is a $24 billion opportunity* California's population is more than 3x larger than Colorado and Washington State combined. Tes4ng Microbusiness 1% Percentage of total sales 3% Delivery 3% 2019 Estimate $6 Billion Retailer 7% Legal Dispensary 9% Cul4vator 49% Distributor 12% $24 Billion Black Market Manufacturer 16% California marijuana licenses by activity Source: University of California *2016 cannabis report from the Cowen Group Agricultural Issues Center Unless otherwise stated all amounts are in USD 8
California Cannabis Licensing Reviewing the data in the Cannabiz Media Licensing Database reveals some interesting facts about California marijuana licenses that help to paint the picture of how the state’s marijuana marketplace is developing. Here are some key facts: • There are 1,780 license holders in total in California. • 13 companies account for 10% of the licenses statewide. • The company with the most licenses is Central Coast Farmer’s Market Management, LLC with 106. That’s 3% of all licenses in the state. • Many license holders seem to be acquiring multiple cultivation licenses. • Just under 900 companies have secured the 1,732 cultivation licenses. • 15 jurisdictions account for half of all licenses o Oakland, Los Angeles, Sacramento, San Francisco, Carpinteria, Salinas, Buellton, Eureka, San Jose, Arcata, Santa Barbara, Cathedral City, Desert Hot Springs, Lynwood, and Santa Rosa. • 1 jurisdiction accounts for nearly 1 in 10 licenses in the state – Oakland (282 licenses). • Three jurisdictions account for nearly 20% of licenses in the state o Oakland (282 licenses), Los Angeles (203 licenses), and Sacramento (139 licenses). Unless otherwise stated all amounts are in USD 9
California Opportunity • Lots of independent stores doing well, but few retail brands being established across the state. • Customers are loyal to dispensaries that provide exceptional user experience. RETAIL The Opportunity: By License Numbers • Establish a network of retail dispensaries offering quality products, superior Cul4vators 1,732 49% service and expertise. Manufacturers 564 16% • Hub and spoke model supplying acquired retailers with high quality I-5 grown Distributors 417 12% products. Dispensaries 316 9% • Provide capital and management, economies of scale to targeted acquisition. LOGISTICS Retailers 258 7% • Consolidate growers, processors, retailers. Delivery 112 3% • Mandatory testing will remove many products from marketplace. Microbusinesses 96 3% • Establish a broad regional brand for consistent and quality product. Tes4ng 23 1% BRANDING • Customers will pay a premium for a high quality, consistent product. Unless otherwise stated all amounts are in USD 10
Our Pipeline Unless otherwise stated all amounts are in USD 11
Deal Timeline – Platform for Growth Company LOI Defini0ve Regulatory Closed Agreement Approval Mellow Extracts ✓ ✓ ✓ Pending MedMen (Santa Ana) ✓ ✓ N/A ✓ California MedMen ✓ ✓ N/A ✓ (W. Hollywood) Chai Cannabis ✓ ✓ Castroville ✓ Fine Detail Greenway ✓ ✓ ✓ Par4al Washington Cascadia Gardens ✓ ✓ ✓ Par4al Mainstem ✓ ✓ N/A ✓ Unless otherwise stated all amounts are in USD 12
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