Corporate Presentation November 2015 : PNPL

Transcription

1 Corporate Presentation November 2015 : PNPL

2 Forward Looking Statements & Disclaimer This presenta-on contains forward- looking statements within the meaning of Sec-on 27A of the Securi-es Act of 1933, as amended, and Sec-on 21E of the Securi-es and Exchange Act of 1934, as amended. Statements that are not a descrip-on of historical facts cons-tute forward- looking statements and may oeen, but not always, be iden-fied by the use of such words as "expects", "an-cipates", "intends", "es-mates", "plans", "poten-al", "possible", "probable", "believes", "seeks", "may", "will", "should", "could" or the nega-ve of such terms or other similar expressions. Actual results may differ materially from those set forth in this presenta-on due to the risks and uncertain-es inherent in the Company's business, including that we have a limited opera-ng history, are dependent upon key personnel whose loss may adversely impact our business, and some of our business ac-vi-es and the business ac-vi-es of some of our customers and counterpar-es, while believed to be compliant with applicable state law, may be illegal under federal law because they violate the Federal Controlled Substances Act. Readers are cau-oned not to place undue reliance on these forward- looking statements, which speak only as of the date hereof. All forward- looking statements are qualified in their en-rety by this cau-onary statement and the Company undertakes no obliga-on to revise or update this presenta-on to reflect events or circumstances aeer the date hereof. This presenta-on has been prepared by Pineapple Express Inc., (The Company ). It should not be considered as an offer or invita-on to subscribe for or purchase any securi-es in the company or as an inducement to make an offer or invita-on with respect to those securi-es. No agreement to subscribe for securi-es in the company will be entered into on the basis of this presenta-on or any informa-on, opinions or conclusions expressed in the course of this presenta-on. This presenta-on is not a prospectus or other offering document under U.S. Law or under any other law. It has been prepared for informa-on purposes only and the content is subject to change without no-ce. This presenta-on contains general summary informa-on and does not take into account the investment objec-ves, financial situa-on and par-cular needs of any individual investor. It is not investment advice and prospec-ve investors should obtain their own independent advice from qualified financial advisors having regarding to their objec-ves, financial situa-on and needs. Pineapple Express Inc All rights reserved. Confiden-al. 2

3 A Fresh Take On Canna-business ² Headquartered in Los Angeles, Pineapple Express provides expert consul-ng, product licensing, and capital to help dis-nguish and grow new and exis-ng businesses within the cannabis industry. ² In supplying industry specific technologies and ancillary support services, the company provides a turnkey opera-ng environment to canna- business managers. ² Pineapple Express is home to some of the most experienced and well- connected minds in the business, immediately placing its investors and clients at the forefront of an industry that is foreign to most. 3

4 Business Model ² Provide Capital To Our Canna- business Clientele Including Licensed Growers/Cul-vators and Dispensaries. ² Lease Real Proper-es To Those Canna- businesses. ² Provide Consul-ng And Technology. ² Enhances And Expands Exis-ng And Newly Formed Canna- businesses. ² Product Licensing. 4

5 Industry Specific Technology Patent- pending Top- Shelf display safe system converts four cri-cal components of the current dispensary model and combines them into one technologically advanced and aesthe-cally pleasing unit. Our display safe system: ü Allows for a dispensary operator to safely display product. ü Secures all product in an armored safe. ü Weigh all product in real- -me, and then dispense the product using an integrated Point- of- Sale, (POS) system compa-ble with all POS systems currently in use in dispensaries. ü An-cipated retail price - $25,000 per unit with an an-cipated 60% gross profit margin. 5

6 Proprietary Top Shelf System Expect to commence sales in the first quarter of 2016 and to produce and sell five units per quarter in 2016 with consistent but modest growth thereaeer. 6

7 Leveraging The Pineapple Express Brand Create na-onally branded chain of cannabis retail stores under the "Pineapple Express" brand name as soon as federal laws allow*: ü Supported by an-cipated Company- owned cul-va-on and processing facili-es. ü Featuring products from an-cipated Company- owned manufacturers. ü Expected 5 Year Growth to 100 Company- owned and 200 licensee- owned cannabis retail stores. *As long as cannabis remains federally illegal our opera-ons will be limited to inves-ng in exis-ng and new canna- businesses, leasing real property to canna- businesses, consul-ng, product licensing, leasing and selling industry specific technology, and providing ancillary 7 support services.

8 Stock Symbol: PNPL Exchange: OTC Pink Recent Price: $1.11 ( ) 52- Week Range: $0.02 to $2.80 Shares Outst: 55.9M ( ) Market Cap: $59.7M ( ) Fiscal Year End: Dec. 31 Industry: Business Services Headquarters: Los Angeles, CA Key Statistics Pineapple Express Inc. 8

9 Industry Perspective Two Explosive Growth Industry Targets u Medical and RecreaZonal Marijuana Stores Industry * Stores that retail medical marijuana (by prescrip-on only) and recrea-onal marijuana. The legal sale of recrea-onal marijuana is currently limited to the states of Colorado, Washington, Alaska, and Oregon as well as the District of Columbia. ² 2014 Revenue $4bn ² Annual Growth % ² Employment 74,222 ² Businesses 5,169 u Medical and RecreaZonal Marijuana Growing Industry ** Establishments that grow marijuana for medical and recrea-onal use. ² Revenue $2bn ² Annual Growth % ² Employment 405,498 ² Businesses 100,742 *Source: April 2015 IBISWorld Medical & Recrea-onal Marijuana Stores in the US Market Research **Source: April 2015 IBIS World Medical & Recrea-onal Marijuana Growing Market Research Report 9

10 Cannabis Industry In Context By 2019, all of the state-legal marijuana markets combined will make for a potential overall market worth almost $11 billion annually. ² Medical marijuana is now legal in 23 states and the District of Columbia. ² The Medical and Recrea-onal Marijuana Stores industry has a low level of market share concentra-on. ² In 2015, the four largest firms account for less than 10.0% of industry revenue. Source: The State of Legal Marijuana Markets 3rd Edi-on, 2015, ArcView Market Research, Cannabis Industry Update Report, October 2015, Chardan Capital Markets ² Recrea-onal use has been approved in four states: Colorado, Washington, Alaska, and Oregon as well as the District of Columbia. ² At least 10 states are considering legalizing recrea-onal marijuana in the next two years through ballot measures or state legislatures. 10

11 Evolving Market Dynamics ² Marijuana is the fastest growing industry in the U.S. ² In 2014 Legal Adult Use sales began for the first -me in Colorado and Washington, adding $370 million in new sales dollars. ² In 2014 voters in two more states and Washington, D.C., approved Adult Use measures, three states approved new medical use laws, and 11 states passed laws that allow for limited distribu-on of cannabidiol (CBD) products, a non- psychoac-ve but poten-ally medically useful component of cannabis. ² Maryland, New York and Minnesota passed new Medical Use laws in 2014, while states such as Illinois, Nevada and Massachuseqs took further steps to ac-vate their markets by gran-ng dispensary and cul-va-on licenses. ² Eleven states passed CBD- only laws in 2014, including Florida, Utah and Alabama. Source: The State of Legal Marijuana Markets 3rd Edi-on, 2015, ArcView Market Research 11

12 Select Market Sales Colorado July 2015 sales of $93.1 million, a record, up 13% from June and 64% year- over- year with recrea-onal sales topping $54 million (before sales and excise tax), and $38.5 million for medical marijuana. Washington State retail sales (before the 37% excise tax) reached $36 million in September 2015, a new record since legal sales began in July Source: Cannabis Industry Update Report, October 2015, Chardan Capital Markets 12

13 Market Growth U.S. Marijuana Sales Es-mates Five states now boast markets greater than $100 million, while one addizonal state posted sales above the $50 million mark. Annual marijuana consumpzon in the US is growing between 6% to 8% annually. Source: Marijuana Business Factbook CannaBusiness Media,, The State of Legal Marijuana Markets 3rd Edi-on, 2015, ArcView Market Research, The Na-onal Survey on Drug Use and Health,

14 Market Outlook ² The Marijuana Policy Project and the Drug Policy Alliance, along with their state level counterparts, have already planned for legaliza-on ballot ini-a-ves in at least six states in 2016, including an Adult Use ini-a-ve in California. ² Should an Adult Use legaliza-on ini-a-ve pass in California in 2016 the en-re industry could rapidly DOUBLE in size. ² By 2020, ArcView Market Research ( AMR ) predicts that 18 states will have passed Adult Use legisla-on. ² Based on the exis-ng markets, AMR projects that full legaliza-on of marijuana na-onwide would result in $36.8 billion in retail sales, larger than the $33.1 billion U.S. organic foods market. Source: The State of Legal Marijuana Markets 3rd Edi-on, 2015, ArcView Market Research 14

15 Pineapple Express Highlights ² Well posi-oned to capitalize on high growth Retail and Growers markets. ² Operate both as an opera-ng business and as a business that invests in other en--es. ² Enables us to quickly develop recurring and easily replicable revenue sources and avoid large upfront investments in infrastructure, escala-ng payroll costs associated with expansion, and the years of ini-al losses oeen typical of start- up companies. ² Strong compe--ve advantages include unique business model, our exclusive proprietary technology, our employees and consultants years of experience in the business and our key industry contacts. 15

16 Favorable Industry Trends In addi-on to the growing market and expected new state market entrants, the trends occurring in both the Retail and Growers Markets represent value drivers for Pineapple Express in execu-ng our model: ² InnovaZve Delivery Systems: Healthier and easier alterna-ve delivery formats are rapidly gaining market share. ² MulZstate Licensing: Strong na-onal cannabis brands are finding ways to emerge in a state- segmented market. ² QA/QC and Product TesZng: Product potency and contaminant tes-ng requirements are to ensure consumer safety and new laboratories are emerging to meet these needs. ² Brand Building: Cannabis brands are no longer hiding in the shadows and the branding bar is rising fast. ² Changing Landscape of CulZvaZon: Licensed cul-va-on facili-es are becoming much larger and that s crea-ng opportuni-es and challenges in mee-ng the needs of these new businesses and the fast growing demand for legal cannabis. Source: The State of Legal Marijuana Markets 3rd Edi-on, 2015, ArcView Market Research 16

17 Policy Shifts Aid Banking and New Markets Drug Policy Reform Moving Forward NaZonally and in the States. ² The Department of Jus-ce (DOJ) recently announced a policy shie aimed to encourage banks to accept cannabis- related business accounts. ² Congress recently passed a law that prohibits the use of federal funds to prosecute people who follow their state s medical cannabis laws. ² The DOJ also issued a memo in late December 2014 to allow Na-ve American tribes to grow and sell marijuana within their territories as long as they follow established federal guidelines. ² Senate Appropria-ons Commiqee, July 2015, passed bill to allow banks to provide services to state- legalized marijuana stores. The Senate commiqee approved three other marijuana amendments earlier this year - - allowing Veterans Administra-on doctors to recommend marijuana to their pa-ents, prohibi-ng the DEA from undermining state medical marijuana laws, and prohibi-ng the DEA from undermining state hemp research laws. 17

18 Recent and Contemplated Transactions ² Consummated Real Property Purchase Agreement and Subsequent Sublease to Canna- Business Tenant in California. ² Proposed Acquisi-on of Popular Clothing Brand and Website. ² Investment in Dispensary in Illinois. 18

19 Seasoned Management Team & Board Madhew Feinstein CEO, Chairman, and Co- Founder, has been ac-vely involved in the cannabis industry since At Pineapple Express, he manages sourcing investment opportuni-es, joint venture rela-onships, and iden-fies acquisi-on targets. He is also responsible for assuring the various components of the company s portolio either have or develop the necessary infrastructure to support the company s future branded chain of cannabis retail stores, cul-va-on centers, processing facili-es, and products. P. Vincent Mehdizadeh Senior Technology Advisor, has been a key force in the cannabis industry since Today, he serves as a senior advisor at Pineapple Express subsidiary MJ Business Consultants and assists with technology development. Christopher Plummer Chief Compliance Officer, Director supports Pineapple Express in the area of compliance, diligently overseeing, monitoring, and advising the company in its ac-vi-es, behavior, and ac-ons as rela-ng to the Securi-es and Exchange Commission (SEC). He regularly interacts with the company s advisors, outside counsel, execu-ves, consultants, and staff in regards to compliance. Anya Mikhaylova MJ Business Consultants OperaZons Director, has been ac-vely involved in the cannabis industry since At Pineapple Express subsidiary MJ Business Consultants, Ms. Mikhaylova oversees office management and company bookkeeping. She is also instrumental in assembling client applica-ons and registra-ons throughout the na-on. Jaime Ortega MJ Business Consultants, Project Manager, has been ac-vely involved in the cannabis industry since At Pineapple Express, he is responsible for business development opportuni-es at MJ Business Consultants. 19

20 For More InformaZon Company Contact: Maqhew Feinstein CEO/President/Chairman/Co- Founder Pineapple Express, Inc Avenue of the Stars, 2nd Floor Los Angeles, CA Office: PNPL FREE pineappleexpress.com Investor RelaZons Contact: Scoq Arnold CorProminence LLC 377 Oak Street Garden City, NY