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Hemp CBD Vertically Integrated Business Pitch Deck

Hemp CBD Vertically Integrated Business Pitch Deck will help you to prepare your presentation to potential investors, because raising money from investors for your growing startup is challenging at any stage and requires a great pitch.

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Hemp CBD Vertically Integrated Business Pitch Deck

  1. 1. website PRESENTER: 2019 Month Purpose: Do good for the People and Planet. Investor Pitch Deck
  2. 2. 1 Start-up Summary 2 Project/Vision 3 Executive Summary 4 Products & Services 5 6 Market Opportunities 7 Strategy 8 Production/Sales Forecast Content Team/Management 9 Financials
  3. 3. 3 Executive Summary
  4. 4. 4New Business Introduction BUSINESS NAME is applying for the marijuana and hemp cultivator, processor and retailer licenses and will be conducting business in City, State, Country. Company will have the ability to vegetate up to 0,000 marijuana and 0,000 hemp plants. BUSINESS NAME is also dedicated to making the cleanest, safest, and premium quality THC and CBD concentrates and infused products. The company will distribute products through wholesale and retail transactions. Produce and sell the highest-quality THC and CBD products through wholesale and retail transactions. Own and operate hemp and cannabis cultivation and manufacturing facilities in State. Utilize cutting edge and proprietary extraction. Experts project that CBD products market and cannabis industry will have a compound annual growth rates of 39% and 28% correspondingly from 2017 through 2021. INDUSTRY TECHNOLOGY PRODUCTS
  5. 5. 5Financial Summary -$2.0 $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 Year 1 Year 2 Year 3 Year 4 Year 5 Millions Revenue Net Income $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 Year 1 Year 2 Year 3 Year 4 Year 5 Millions Cash Flow (ending period) From a total investment of $0 million, Company is expected to generate nearly $0 million in gross revenues with pre-tax income of nearly $0 million in Year 3, its first full year of operations. Revenues are expected to grow to nearly $0 million in Year 4 and $0 million in Year 5, with pre-tax income of nearly $0 million and over $0 million respectively.
  6. 6. 6 Project Vision
  7. 7. 7Mission Statement To grow one of the best plants and produce high-quality concentrates to provide customers with a products and service they trust Main Goals: A. Own and operate 00-acre outdoor hemp and 0,000-sq. ft. indoor cannabis cultivation facilities in …. B. To produce high-grade THC and CBD products and build a recognizable brand in a rapidly growing industry. C. To be fully compliant with all state and local municipalities and be primed and ready for expansion. D. To align ourselves with investors and partners who share our values.
  8. 8. 8Business Objectives Own and operate hemp and cannabis cultivation facilities in the state of State. Lookout for ways to improve our processes and maximize our returns. Getting State Cultivation licenses BUSINESS NAME will seek to leverage on expertise to build the business brand as a premiere THC and CBD products producer within the state of State Brand and distribute our product line throughout State Monthly sales and capacity increasing steadily throughout the first year. To open our first store by the end of the 2019 year. Net annual income to support operational expenses To build our brand on the core values of customer service and care, hospitality, highest standards of quality, honesty, integrity and community outreach. To provide customers with a product and service they can trust 01 02 03 04
  9. 9. 9 Start-up Summary
  10. 10. 10Start-Up Summary $ 0,000,000 The cost to start-up our company $ 0,000,000 Assets $ 000,000 $ 000,000 Direct Costs Operating Costs
  11. 11. 11Start-Up Assets & Use of Funds Start-Up Assets Quarter 1 Building/Land for cultivation $000,000 Equipment for growing $000,000 Building for equipment $000,000 Extraction equipment $000,000 Manufacturing equipment $000,000 Other equipment $000,000 Store Building and Equipment $000,000 Security System $00,000 Total $0,000,000 Total Use of Funds $0,000,000 Use of Funds Assets $0,000,000 Direct costs, cultivation $000,000 Direct costs, processing & manufacturing $000,000 Operating expenses, first 6 months $000,000 Salaries $000,000
  12. 12. 12 Products Services
  13. 13. 13Product & Services Cultivation Company will have the ability to grow up to 0,000 hemp and 0,000 marijuana plants from seedling to finished product. Description: Manufacturing BUSINESS NAME will produce high-quality THC and CBD concentrates, edibles and topicals as own product line Description: Distribute Company intends to distribute THC and CBD products through retail and wholesale transactions. Description:
  14. 14. 14Products Revenue Structure We will strive to provide our clientele with both high-end and affordable hemp- and marijuana- derived CBD and THC products. We want to build a brand that our customers will count on for professionalism, consistency, quality, and innovation. % of Revenue by Product Category: revenue Concentrates 55% Beverages & Edibles 35% Topicals & Accessories 10%
  15. 15. 15 Market Analysis
  16. 16. 16Cannabis Legalization ✓ In 2017, legal cannabis sales in the U.S. reached $8.5 billion, a 26.9% jump from the year before. ✓ Legal cannabis sales reached $10.4 billion in 2018. That represents a 22.4% increase over 2017. ✓ In September, 2018, DEA announced that certain drug products that have been approved by FDA and which contain CBD will be considered Schedule V drugs. ✓ In December 2018, President Trump signed the bill into law making hemp legal for the first time since the 1930s and allowing it to be grown, processed, and sold as an agricultural commodity. ✓ The farm bill completely removes from the drug schedule all hemp plants and derivatives with much higher THC levels, 0.3 percent. States with enacted hemp legislation 41 states enacted the bill 3,546 licenses 78,176 acres of hemp
  17. 17. 172018 Farm Bill ✓ The 2018 Farm Bill defines hemp as the plant Cannabis sativa L. and any part of the plant with a delta-9 THC concentration of not more than 0.3 percent by dry weight. ✓ The 2018 Farm Bill removes hemp from the Controlled Substances Act, paving the way for the wholly legal cultivation, possession, sale and distribution of the hemp plant. ✓ The 2018 Farm Bill delegates to states and Indian tribes the broad authority to regulate and limit the production and sale of hemp and hemp products within their borders. States and Indian tribes cannot, however, limit the transportation or shipment of hemp and hemp products through their respective jurisdictions. ✓ CBD products produced from industrial hemp are no longer considered Schedule I substances, CBD products that come from marijuana plants with more than 0.3 percent THC are still federally illegal
  18. 18. 18Cannabis Market Growth The North America legal cannabis market amounted to $12 billion in 2018, growing by 30 percent on the year. The largest market was the United States, which totaled $10.4 billion. It was followed by Canada with $1.6 billion. Report from cannabis industry analysts Arcview Market Research, in partnership with BDS Analytics, predicts the overall cannabis market for legal adult-use and medical sales in North America to reach $24.5 billion by 2021 with the compound annual growth rate (CAGR) to almost 28% and will grow to $47.3 billion six years later. 0 3 6 9 12 15 2018 Billion$ Medical Recreational 0 3 6 9 12 15 2019 0 3 6 9 12 15 2020 0 3 6 9 12 15 2021 30% 28% 22% 18%
  19. 19. 19 Flowers1 Edibles3 2 All Others4 Concentrates Sales of cannabis edibles in Arizona, California, Colorado and Oregon reached US$685 million between January and October of 2018, according to data provided by BDS Analytics. But consumers in those states spent more than US$1.4 billion on cannabis concentrates during the same period. According to a report by Arcview Market Research in partnership with BDS Analytics, consumer spending on cannabis concentrates in the U.S. is projected to reach nearly $3 billion in 2018, an increase of49 % over last year’s sales. According to the report, cannabis concentrate's market share grew from 11.7% to about 29% from 2017 to 2018. Demand for cannabis concentrates and edibles is exploding Concentrates and Infused Products Sector Trend sample in Colorado 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2015 Q1 2015 Q4 2016 Q1 2016 Q2 2016 Q3 2016 Q4 2017 Q3
  20. 20. 20Hemp Market Growth Overall hemp acreage reached 78,176 in 2018 recording a tripling of land under hemp from 25,713 in 2017, with the total number of hemp growing states up to 23 from 19 states, according to the American hemp advocacy group Vote Hemp. The total number of hemp licenses more than doubled, from 1,456 in 2017 to 3,546 in 2018. More universities also got involved with hemp research. 0 10000 20000 30000 40000 50000 60000 70000 80000 2018 acres 0 10000 20000 30000 40000 50000 60000 70000 80000 2017 acres 25,713 78,176
  21. 21. Hemp Market According to the Global State of Hemp Report, the hemp industry is expected to grow with a combined annual growth rate (CAGR) of 18.4% from 2018-2022 to become a $2.5-billion industry. 0 0.5 1 1.5 2 2.5 3 2018 billion$ 0 0.5 1 1.5 2 2.5 3 2022 18.4% automotive products 12% industrial products 21% hemp derived CBD products 52% consumer textiles 15%
  22. 22. 22CBD Market Following passage of the 2018 Farm Bill, CBD producers will have much greater incentive to use hemp as their primary source for CBD ✓ The U.S. market for CBD products hit $291 million in 2017 – including both hemp and marijuana-derived sources – while the hemp CBD market has reached an estimated retail value of $145 million. In 2018, hemp-derived CBD products sales accounted for about $390 million. ✓ Hemp legalization and new methods of CBD oil extraction with a growing number of various CBD infused products available in mainstream markets will lead to an increase in consumer spending on CBD products. ✓ New Frontier Data estimates hemp-derived CBD market to reach $1.3 billion in 2022, representing a 27.2% 5-year CAGR. ✓ Brightfield Group analysts forecast that the total legal market for CBD can be worth more than $20 billion. 0 200 400 600 800 1000 1200 1400 2017 2018 2019 2020 2021 2022 U.S. Hemp CBD Sales (in $ millions)
  23. 23. 23SWOT Analyses Focus on two growing industries Diversification of business - cultivation, extraction, manufacturing and retail Diversified, Strategic Partnerships Extensive industry knowledge STRENGTHS Positive Negative Internal External Strengths S Weaknesses W Threats T Opportunities O Product liability / legal issues Enhanced risk of banking / financial / IRS scrutiny Crop loss possibility due to pests, heat, human error, etc. Lack in professional workforce High energy consumption High starting capital WEAKNESSES High growth industry Growing interest and demand for natural, alternative medicine Trend toward greater cannabis legalization, including the use of cannabis for recreational purposes Hemp and hemp-derived CBD products legalization OPPORTUNITIES A significant drop in cannabis wholesale pricing Enforcement of federal cannabis law, new DEA rules Possible cannabis and CBD regulations changing Indicators of a slowed global economy THREATS
  24. 24. 24 Marketing Strategy and Implementation
  25. 25. 25Marketing Strategy and Positioning TARGET MARKET PRODUCT QUALITY BUSINESS NAME will provide the best products available to establish its brand and to always ensure that consistently high-quality products are in fresh supply. LOCATION One of the busiest streets in …. The facility is well positioned and it matches the ideal picture of a community store.
  26. 26. 26 PERSONALIZED SERVICE We will train knowledgeable and friendly staff who will help clients select the best product for their needs. The management team will always be available to talk with customers, providing them with years of experience and expertise. PRICING BUSINESS NAME will set its price competitively. Average prices range from $0.00 to $0.00 per gram and we will deliver premium products at $0.00 per gram retail. We will provide free shipping for all orders over $000. Marketing Strategy and Positioning BRAND We will establish a referral network that supports product consistency, brand recognition, and reliable delivery
  27. 27. 27Target CBD Products Customers About 7% of Americans are already using CBD products, placing the potential market capacity at $16 billion by 2025 ✓According to a new analysis by Cowen & Co, CBD products use is highest among consumers aged 18 to 34. ✓The survey also found that liquid form (tinctures) accounted for the biggest share of the market at 44%, followed by topical forms at 26%, edible forms (capsules) at 22% and drinks at 19%. ✓CBD users consistently ranked CBD’s lack of psychoactive effects as its best feature, comparing to the price and other factors. 87% 12% 1% 2017 Supplements Topicals Food&Other Products 79% 16% 5% 2022
  28. 28. A B C D E F Merchandise & Event Sponsorships BUSINESS NAME -branded products such as shirts, hats, grinders, cases/containers, etc. Sponsor cannabis-related industry events to gain brand exposure and bring the BUSINESS NAME name to the forefront of the community. Social Media We will have a significant social media presence. Appropriate forums will be monitored daily, with dedicated staff resources to be active and knowledgeable participants. We will develop a social media content strategy which will include Twitter, Facebook, Instagram, LinkedIn and YouTube. Information Kits Registration forms, brochures, and general information. They will provide information on what our products are. Brochures We will produce high-quality brochures with detailed information for each product. Website We will develop a professionally- designed website. Direct Marketing The marketing and sales strategy of BUSINESS NAME Company will be based on generating long-term personalized relationships. 28Marketing Plan
  29. 29. 29 Production and Sales Forecast
  30. 30. 30Growing and Manufacturing Facilities The physical address of our cultivation and manufacturing facilities will be …. Company intends to mix hemp outdoor cultivation from April to October period and all around year cannabis greenhouse/warehouse cultivation. The manufacturing premises will be located in a 00,000-sq. ft. building and will include extraction and refining equipment, vacuum ovens and packaging machines. This facility will offer a significant advantage in the development and manufacture of our flowers, compounds, edible and topical forms. We have contracted for our facilities for 0 years with options for an additional 00 years without rent increase. Lease costs is $0,000 per month. ❖Vegetative Rooms ❖Flowering Rooms ❖Drying & Trim Rooms ❖Curing Rooms ❖Extraction Rooms ❖Compounding Rooms ❖Cannabis Infused Production room ❖Packaging Rooms
  31. 31. 31Growing Forecast LBS BUSINESS NAME will have the ability to grow up to 0,000 plants in greenhouses/warehouses and over 00,000 plants outdoor. Company will use a Perpetual Harvest technique for cannabis cultivation in which growers utilize multiple grow tents/areas to ensure that there are always plants in both the flowering stage and in the vegetative stage. 3,060 6,120 6,120 YEAR 1 YEAR 2 YEAR 3 Bio-mass Seeds Fiber 714 1,904 1,904 918 2,448 2,448 YEAR 1 YEAR 2 YEAR 3 Indoor Cannabis Greenhouse Cannabis
  32. 32. 32Technology 0 20 40 60 80 100 120 140 160 9 12 15 18 21 24 Pounds Hours Pounds Processed CO2 Supercritical C02 Extraction Run Time (Minutes) 480 Changeover/Prep (Minutes) 30 Time Window (Hours) 24 Capacity (Litres) 100 Biomass Per Run (Pounds) 50 Biomass within Window (Pounds) 141 Yield within Window (Tons) 0.07 Oil Yield (Pounds) 21 Pounds Per Acre 625 Acres Processed in Window 0.23 Supercritical C02 Extraction We intend to use a High Production CO2 Extraction Equipment to get a primary extract. The equipment utilizes a Dual-Phase Pumping System – a liquid pump that allows for high CO2 flows at higher pressures and the Diaphragm Compressor Technology gas pump for energy efficiency and cold separation, this system will provide high production with a wide range of processing options for supercritical and subcritical extractions. We will then use a High Production WFE system which offers high-capacity, high-production operations with fast, efficient molecule of botanical oils without thermal degradation.
  33. 33. 33Technology 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Dry Herb Ethanol Water CO2 BHO Rosin THC Strengths of Cannabis Extracts BHO Extraction BHO extraction technique is the most cost-efficient extraction method available. With an average extraction cycle of less than one hour, BHO is the fastest commercial extraction method. That is 9 times faster than the average 9 – 10 hours comparable CO2 supercritical extraction cycle. The cost of BHO extraction equipment is also much lower than CO2 equipment.
  34. 34. We intend to use High Production Extraction system, which efficiently extract botanical oils without thermal degradation at industry-leading processing rates. System utilize alcohol which acts as a solvent and strips the THC, CBD, Terpenes, Chlorophyll, and wax compounds from plant material then carrying them in solution form within the alcohol. Advantages ✓ The FDA classifies ethanol as “Generally Regarded as Safe,” or GRAS, meaning that it is safe for human consumption. ✓ Ethanol is safer than butane and more effective than supercritical CO2. ✓ The ethanol removed from the finished concentrate can be reused in multiple extractions, which effectively eliminates the production of chemical waste. 34Ethanol ExtractionTechnology
  35. 35. We intend to use a High Production Extraction system, which is equipped for both ethanol and hydrocarbon based solvents, to get a primary cannabis extract. We will then use a High Production WFE system which offers high-capacity, high- production operations with fast, efficient molecule of botanical oils without thermal degradation. 35Ethanol & Hydrocarbon ExtractionTechnology Ethanol Advantages ✓ The FDA classifies ethanol as “Generally Regarded as Safe,” or GRAS, meaning that it is safe for human consumption. ✓ The ethanol removed from the finished concentrate can be reused in multiple extractions, which effectively eliminates the production of chemical waste. ✓ Ethanol extraction can eliminate the need for a dewax or winterization and suites for creating a full spectrum cannabis extracts and tinctures. Hydrocarbon Advantages ✓ Butane/Propane extraction technique is the most cost-efficient extraction method available. ✓ BHO is the fastest commercial extraction method. ✓ Can resolve some ethanol extraction disadvantages, including the limitation in the products can be produced and high post processing labor intensive, involving the use of several different methods of refinement and filtration.
  36. 36. 36Production Forecast BUSINESS NAME intends to produce a wide range of cannabis oil infused products with different concentration, including pure oil (1000mg), cartridges (500mg), pills (500mg), tinctures (430mg), beverages (120mg), edibles (100mg) and topicals (250mg). BUSINESS NAME cartridges will include 500 milligrams co2 cannabis oil and will be compatible with any 510-thread battery. All BUSINESS NAME cannabis products will include Laboratory Test Results in their packaging. unit 5,557 13,440 14,971 18,524 44,799 49,902 7,410 17,920 19,961 12,924 31,255 34,816 55,573 134,396 149,707 37,049 89,598 99,805 14,820 35,839 39,922YEAR 1 YEAR 2 YEAR 3 CANNABIS OIL (1000mg) PRE-FILLED CARTRIDGES (500mg) CAPSULES, PILLS (500mg) TINCTURES (430mg) BEVERAGES (100mg) GUMMIES, COOKIES AND CHOCOLATE (100mg) TOPICALS (250mg) BUSINESS NAME will also produce 1000 mg CO2 CBD oil Vape Pens/ Cartridges, 1000mg capsules and suppositories packs, 1000mg pure oils and 450mg tinctures jars. BUSINESS NAME intends to offer CBD-infused beverages and a wide range of topicals, including patches, creams and ointments. All BUSINESS NAME CBD products will include Laboratory Test Results in their packaging. 3,341 11,214 14,555 3,341 11,214 14,555 18,561 62,299 80,861 7,424 24,920 32,344 3,341 11,214 14,555 2,227 7,476 9,703 22,273 74,759 97,033 8,909 29,904 38,813 YEAR 1 YEAR 2 YEAR 3 CBD OIL (1000mg) VAPE, PENS, CARTIDGES (1000mg) CBD-INFUSED BEVERAGES (12-b pack, 120mg) TINCTURES (450mg) SOFT GEL PILLS 30 COUNT BOTTLE (1000mg) DAYTIME FORMULA, SUPPOSITARIES (1000mg) PATCHES SINGLE BOX (100mg) CREAMS AND OINTMENTS (250mg)
  37. 37. 37 Expenses Cut Operating Needs Sales Growth Year 1: Sales are expected to start conservatively the first few months and increase steadily through the second, third and fourth quarters of the first year of operations. Years 2-3: Retail income from $0,000-$0,000 a day for the first few months with increasing to about $00,000 a day within 1-2 years. Cash will be retained in the business to cover cash operating needs as well as future expansion to meet the demands. After the first year of operations, it is expected that BUSINESS NAME will be able to trim expenses through realizing business efficiencies, gaining operational experience and industry knowledge. Sales Forecast $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 Year 1 Year 2 Year 3 Year 4 Year 5 Millions CBD Hemp CBD Products $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 $8.0 Year 1 Year 2 Year 3 Year 4 Year 5 Cannabis Dried Cannabis Cannabis Products
  38. 38. 38 Team Management
  39. 39. 39 Cristopher Johnson Company CEO Confidential Experience: 15 years Confidential Eva Smith Company CEO Experience: 10 years Management Team Shean Collins Company CEO Confidential Experience: 8 years
  40. 40. 40Company Organization Director Production Department Manager, Extraction Services Extraction Tech Sales Department Admin and Logistics Personnel Sales & Marketing Personnel Master Grower Assistant Growing Tech Operational Directors Customer Assistants Inventory Manager Security Receptionists
  41. 41. 41 Financial Plan
  42. 42. 42Projected Profit and Loss, $ YEAR 1 YEAR 2 YEAR 3 Revenue COGS - Cost of Goods Sold Gross Profit % of revenue SG&A Expense Initial & General Costs Operating Expenses Total Sales & Marketing Expenses Total Senior Management Salaries & Benefits Total IT Salaries & Benefits Total Other Salaries & Benefits Total SG&A Expense Operating Income (EBITDA) % of revenue Depreciation and Amortization Earnings Before Interest & Taxes (EBIT) Interest Expense Earnings Before Taxes (EBT) Income Tax Net Income % of revenue
  43. 43. 43Projected Cash Flow, $ YEAR 1 YEAR 2 YEAR 3 Net Income Cash Flow from Operations Depreciation Change in Receivables Change in Inventory Change in Accounts Payable Change in Accrued Expenses Total Cash Flow from Operations Cash Flow from Investing Capital Expenditures (CAPX) Other Total Cash Flow from Investing Cash Flow from Financing Revolver Issuance / (Repayment) Long-Term Debt Issuance / (Repayment) New Equity Investments Dividends Total Cash Flow from Financing Total Change in Cash Beginning Period Cash Ending Period Cash
  44. 44. 44Ratio Analysis Ratio Analysis YEAR 2 YEAR 3 YEAR 4 YEAR 5 Avg. (2-5 years) Return on Equity 76.1% 47.5% 33.9% 25.3% 45.7% Return on Assets Return on Sales 29.9% 30.6% 30.9% 30.9% 30.6% Asset turnover 2.55 1.55 1.10 0.82 1.50 Profitability Gross margin 56.9% 57.7% 58.1% 58.1% 57.7% SG&A as % of Sales 6.9% 6.5% 6.3% 6.3% 6.5% Operating Margin 49.8% 51.0% 51.6% 51.6% 51.0% Asset Turnover Ratios Accounts Receivable Turnover 36.2 36.1 36.1 36.0 36.1 Fixed Asset Turnover 38.5 48.2 58.4 69.0 53.5
  45. 45. 45Funding Analyses, $ YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 Long-Term Debt Beginning Balance Long-Term Debt Repayment Long-Term Debt Ending Balance ROI Profit Share (Investors) Company intends to raise $0,000,000 for 5 years with ROI 12% and profit share 5%. First repayment will start from 11th month.
  46. 46. 46 Thank You
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Hemp CBD Vertically Integrated Business Pitch Deck will help you to prepare your presentation to potential investors, because raising money from investors for your growing startup is challenging at any stage and requires a great pitch.


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