The TINLEY BEVERAGE COMPANY CORPORATE PRESENTATION Q4 2016
Tinley develops and distributes a variety of drinkable cannabinoid products in the USA Tinley was founded in May 2015 • Launched the “Hemplify” hemp stalk drink in California in July 2016 • Hemp stalk drink with added vitamins, electrolytes and Omega 3 • Producing via a contract bottler in Riverside, California • Currently in stores in California and Nevada; orders received from • stores in 5 other states; e-commerce store and Amazon listing launched in August 2016; available in all 50 states Leadership team from the mainstream beverage and cannabis industries • Jeff Maser, CEO: Previously at Jacob Securities, where he financed • several Canadian licensed cannabis producers, and the Watt Design Group (wholly owned by Cott Corporation) Frank and Richard Chessman, Sales and Beverage Operations: Built a • publicly-traded hydration drink company from inception to $1 million/mo. in sales Ted Zittell, Board Member and Brand Advisor: Previously President • of Cott’s private label brand division and partner at the Watt Design Group; internationally-renowned brand consultant Developed a lineup of THC beverages and a turnkey solution for licensed • producers to manufacture and distribute these products “Tinley ‘27” THC beverages are based on popular alcoholic spirits • including Jamaican rum, Canadian whisky and amaretto, as well as carbonated fruit drinks Offers a turnkey solution for licensed producers to manufacture THC • beverages under their brands while enabling Tinley to have bottling line time its own Tinley products; in discussions with licensed producers in various states and provinces Page 2 Confidential
Tinley’s leadership team and board members have extensive entrepreneurial experience in the marijuana and beverage industries Ted, Zittell, Brand Advisor and Director Jeffrey Maser, CEO and Director • Previously President of Cott Corporation's Retail Brands International, where • Previously at Jacob Securities, where he financed several medical he led the creation and launch of dozens of premium retailer brand and marijuana companies in Canada and the USA marketing programs worldwide • Began career at the Watt Design Group, the wholly-owned beverage Senior partner at Cott's Watt Design Group for 17 years • strategy and design agency of Cott Corporation; at the time, Watt was Senior consultant for McMillan Doolittle LLP, a leading Chicago-based retail • the second-largest food and beverage branding firm in North America and consumer experience agency and Cott was the largest cola company in the world after Coke and Pepsi Advisor for US private equity and investment funds in the food and beverage • sectors • 10 years in venture capital, merchant and investment banking with a focus on emerging industries including marijuana, health foods and Recent executive-level engagements include work for Walmart, Kroger, CVS • technology Pharmacy, P&G, Nestlé, Loblaws, Sainsbury's and Tesco Andrew Stodart, Director Richard Chessman, Beverage Operations and Sales Launched Crystal Head Vodka and brought from concept to nationwide North • • 10 years beverage operations experience, including a successful, American distribution in 18 months technologically-advanced hydration beverage company Oversaw the launch of Dan Aykroyd Wines at Diamond Estates Wines and • • 20+ independent salespeople in network across the USA Spirits; oversaw a team that won 5 awards for marketing excellence from the LCBO International brand manager for Black Velvet Canadian Whisky; built from a • Amy Stephenson, Chief Financial Officer declining brand into the third-largest selling brand in its category Other engagements include work for Patron Tequila and Everfresh Juice Ltd. • Past CFO of Bedrocan Cannabis Corporation, a Canadian licensed • producer that merged with Canopy Growth Corp. David Ellison, Director • MBA in Finance from California State University, BA from the University of Hong Kong, CFA Charter holder, Chartered Professional Accountant • Principal at Acuity Corporate Securities Lawyers in Toronto; has provided (CPA, CMA) and a member of the Financial Executive International (FEI) capital markets, legal and operational services to US-based cannabis cultivators, processors and extractors over the past two years Clifford Chance LLP (UK) - International Structured Finance Group • David Posner, Director Solicitor of the Supreme Court of England and Wales • • Chairman of Nutritional High, which is building a 25,000 square foot licensed marijuana edibles manufacturing facility in Colorado • Brought “Hempen Gold”, the first hemp -infused beer to Canada Page 3 Confidential
Tinley is producing some of North America’s first premium hemp extract drinks Hemp Hemp Extract Also sold as Hemp Seeds, Hemp Hearts, Also sold as Hemp Stalk, Phytocannabinoids Hemp Oil, Hemp Protein and Hemp Nuts or by individual hemp extract constituent names • Virtually all “hemp” food and beverage products • Contains ingredients common to other Cannabaceae available today are made from hemp seeds, not from family plants including cannabis and hops the green plant material • Category is increasingly gaining consumer awareness, • Hemp seed products have seen a resurgence in though no FDA-approved claims yet demand, now known for their health benefits rather • CV Sciences, a prominent, publicly-traded raw than for their relationship with marijuana ingredient supplier, generated $14 million (last 12 • Beverages like Hemp2O and Rocky Mountain High months), largely at the wholesale level are popular • One of the most requested supplements at several • Hemp extract may soon be seen as “next generation health food chains in LA; seen as the next “hot” hemp” supplement ingredient “The enthusiasm is incredible. I’ve never seen anything like this before.” -Mark Blumenthal, founder of the American Botanical Council, regarding hemp extract Page 4 Confidential
“Hemplify” enables consumers to enjoy non -psychoactive hemp stalk constituents in a mainstream, premium drink format • Refreshing, drinkable vitality • Manufactured with patented supplement containing hemp stalk formulation technology extract combined with ingredients • The technology infuses oil-based found in popular sports and functional ingredients into water-based drinks in a drinks manner that masks the oil’s taste, • 8.5mg hemp stalk extract elevates bioavailability and ensures shelf • 100% Vitamins B12, C and D stability • 20-60% A, B1, B2, B5, B6 and E • Works by creating micelles that preserve • 200mg Omega 3 the structure of the oil as it progresses • 9-12x the electrolyte potassium through the digestive system, and then content of major sports drinks induces the gut into absorbing more oil • Sugar-free, vegan, non-GMO and into the bloodstream and through the gluten-free blood-brain barrier • No artificial ingredients • The consumer therefore enjoys superior • Non-psychoactive (no/trace THC) taste and more of the benefits of the • Supercritical CO2 extraction; solvent- nutrients than other consumption • Manufactured in a large-scale, cGMP- free methods compliant facility • Hemp stalk sourced mainly from • All batches are third-party tested Western Europe where high food handling, environmental and labor • Sleep and energy versions in standards exist development • Shelf stable for 12 months • Manufactured in Southern California Page 5 Confidential
The hemp extract category lies at the confluence of 3 major consumer trends 1. Legalization of marijuana is creating one of 3. Consumers Are Shifting Away from the largest consumer product categories in 80+ Sugary Sodas to Healthier Alternatives years, and it’s driving awareness of the non - psychoactive ingredients in cannabis and hemp Hemp extract creates an ability to bring non- • psychoactive constituents to mainstream retail channels in all 50 states using mainstream beverage industry infrastructure The mainstream health drink market is • significantly larger than the marijuana market No need to incur capex to build a licensed • facility and no sharing economics with local licensees for hemp extract 2. “Whole - Body Vitality” is emerging as a key consumer trend Page 6 Confidential
Tinley’s go to market strategy involves 4 channels: Health/natural food stores, head/smoke/liquor shops, online and music/lifestyle festivals Health, grocery & natural foods stores • Launched in Vintage Grocers, a large format premium grocery store in Malibu, CA • 6-store test listing with a Southern California distributor that offers a large catalog of natural foods • Engaged a third-party sales force that reps beverages and grocery items nationally Convenience, liquor, college and head/smoke shops • Initial listing with 8 stores from a major convenience chain • Distribution agreement with head shop distributor that covers 1,000 stores • Launched in a major convenience and liquor store on Bally’s property in Las Vegas Online • Listed on Amazon.com • Available on drinkhemplify.com • Vendor agreement with an online store owned by a national vitamin store chain • Available on the USA’s largest affiliate marketing network; program being managed by a leading Colorado agency - commission sales model similar to Acai Berry drinks Festivals and Events • Sold products at music and art festivals in California and Nevada throughout the summer Page 7 Confidential
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