Hempacco Co, Inc. is Disrupting Tobacco™ and its nearly $1 trillion industry by manufacturing and selling herb and hemp smokables from San Diego, California. Through its own brands and joint venture businesses, the Company has launched various brands and products, including The Real Stuff, Hemp Hop with rapper Rick Ross, and Cheech & Chong's Hemp Smokables.
Hempacco also provides full-service private label herb and hemp smokables product development, manufacturing, and logistics and owns 600 vending machines to sell its brands. Hempacco is Disrupting Tobacco as it executes its mission to become the most recognized name in herb and hemp smokable products globally.
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Hempacco Investor Presentation August 2022
1. INVESTOR PRESENTATION
AUGUST 2022
Past performance is not indicative of future results. Investments may be speculative, illiquid, and there is a risk of principal loss. There is no guarantee that any specific outcome will be achieved.
2. This document contains forward-looking statements. In addition, from time to time, we or our
representatives may make forward-looking statements orally or in writing. We base these forward-looking
statements on our expectations and projections about future events, which we derive from the information
currently available to us. Such forward-looking statements relate to future events or our future performance,
including: our financial performance and projections; our growth in revenue and earnings; and our business
prospects and opportunities. You can identify forward-looking statements by those that are not historical in
nature, particularly those that use terminology such as “may,” “should,” “expects,” “anticipates,”
“contemplates,” “estimates,” “believes,” “plans,” “projected,” “predicts,” “potential,” or “hopes” or the
negative of these or similar terms. Factors that may cause actual results to differ materially from current
expectations include, among other things, those listed under the heading “Risk Factors” and elsewhere in the
registration statement that we have filed with the U.S. Securities and Exchange Commission. Forward-
looking statements are only predictions. The forward-looking events discussed in this document and other
statements made from time to time by us or our representatives, may not occur, and actual events and
results may differ materially and are subject to risks, uncertainties and assumptions about us. We are not
obligated to publicly update or revise any forward-looking statement, whether as a result of uncertainties
and assumptions, the forward-looking events discussed in this document and other statements made from
time to time by us or our representatives might not occur. Past performance is not indicative of future
results. There is now guarantee that any specific outcome will be achieved. Investments may be
speculative, illiquid and there is a total risk of loss.
Past performance is not indicative of future results. Investments may be speculative, illiquid, and there is a risk of principal loss. There is no guarantee that any specific outcome will be achieved. 2
DISCLAIMER
4. RISK FACTORS
Since inception, we have experienced operating losses and negative cash flows from operating activities
and anticipate that we will continue to incur operating losses in the near future.
If we are not able to successfully execute on our future operating plans, our financial condition and
results of operation may be materially adversely affected, and we may not be able to continue as a
going concern.
We may be unable to effectively manage future growth.
We will need additional financing in the future, which may not be available when needed or may be
costly and dilutive.
If we are unable to continue as a going concern, our securities will have little or no value.
We have a limited operating history, and we may not be able to successfully operate our business or
execute our business plan.
We may incur significant debt to finance our operations.
We compete in an industry that is brand-conscious, so brand name recognition and acceptance of our
products are critical to our success.
Our brand and image are keys to our business and any inability to maintain a positive brand image could
have a material adverse effect on our results of operations.
Competition from traditional and large, well-financed tobacco or nicotine cigarette manufacturers or
distributors may adversely affect our distribution relationships and may hinder development of our existing
markets, as well as prevent us from expanding our markets.
We compete in an industry characterized by rapid changes in consumer preferences and public perception,
so our ability to continue developing new products to satisfy our consumers' changing preferences will
determine our long-term success.
We may be unable to respond effectively to technological changes in our industry, which could reduce the
demand for our products.
Past performance is not indicative of future results. Investments may be speculative, illiquid, and there is a risk of principal loss. There is no guarantee that any specific outcome will be achieved. 4
We may experience a reduced demand for some of our products due to health concerns and legislative
initiatives against smokables products.
Legislative or regulatory changes that affect our products, including new taxes, could reduce demand for
products or increase our costs.
Our ability to develop, commercialize and distribute hemp smokables products and comply with laws and
regulations governing cannabis, hemp or related products will affect our operational results.
International expansion efforts would likely significantly increase our operational expenses.
Our reliance on distributors, retailers and brokers could affect our ability to efficiently and profitably
distribute and market our products, maintain our existing markets and expand our business into other
geographic markets.
We incur significant time and expense in attracting and maintaining key distributors, and loss of distributors
or retails accounts would harm our business.
The COVID-19 pandemic has and could continue to negatively affect various aspects of our business,
make it more difficult for us to meet our obligations to our customers, and result in reduced demand for
our products and services, which could have a material adverse effect on our business, financial condition,
results of operations, or cash flows.
We rely on suppliers, manufacturers and contractors, and events adversely affecting them would adversely
affect us.
We have a single customer that accounts for a substantial portion of our revenues, and our business
would be harmed were we to lose this customer.
Wholesale price volatility may adversely affect operations.
The Company may sustain losses that cannot be recovered through insurance or other preventative
measures.
The Company may be subject to product liability claims and other claims of our customers and partners.
5. RISK FACTORS (CONT.)
If we encounter product recalls or other product quality issues, our business may suffer.
It is difficult to predict the timing and amount of our sales, and as a result our sales forecasts are
uncertain.
If we do not adequately manage our inventory levels, our operating results could be adversely affected.
Increases in costs or shortages of raw materials could harm our business and financial results.
Increases in costs of energy and increased regulations may have an adverse impact on our gross margin.
Disruption within our supply chain, contract manufacturing or distribution channels could have an adverse
effect on our business, financial condition and results of operations.
If we are unable to attract and retain key personnel, our efficiency and operations would be adversely
affected; in addition, staff turnover causes uncertainties and could harm our business.
If we lose the services of our Chief Executive Officer, our future operations could be impaired until such
time as a qualified replacement can be found.
We are required to indemnify our directors and officers.
If we fail to protect our trademarks and trade secrets, we may be unable to successfully market our
products and compete effectively.
Disruptions to our information technology systems due to cyber-attacks or our failure to upgrade and
adjust our information technology systems, may materially impair our operations, hinder our growth and
materially and adversely affect our business and results of operations.
Our business is subject to many regulations and noncompliance is costly.
Significant additional labeling or warning requirements may inhibit sales of affected products.
Our industry may become subject to expanded regulation and increased enforcement by the Food and
Drug Administration (FDA) and the Federal Trade Commission (FTC).
Past performance is not indicative of future results. Investments may be speculative, illiquid, and there is a risk of principal loss. There is no guarantee that any specific outcome will be achieved. 5
Litigation or legal proceedings could expose us to significant liabilities and damage our reputation.
Climate change may negatively affect our business.
Our business and operations would be adversely impacted in the event of a failure or interruption of our
information technology infrastructure or as a result of a cybersecurity attack.
Our results of operations may fluctuate from quarter to quarter for many reasons, including seasonality.
Changes in our effective tax rate may impact our results of operations.
Global economic, political, social and other conditions, including the COVID-19 pandemic, may continue to
adversely impact our business and results of operations.
We are currently operating in a period of economic uncertainty and capital markets disruption, which has
been significantly impacted by geopolitical instability due to the ongoing military conflict between Russia and
Ukraine. Our business may be materially adversely affected by any negative impact on the global economy
and capital markets resulting from the conflict in Ukraine or any other geopolitical tensions.
Changes in accounting standards and subjective assumptions, estimates and judgments by management
related to complex accounting matters could significantly affect our financial results.
There has been no public market for our common stock prior to this offering, and an active market in
which investors can resell their shares of our common stock may not develop.
We may not be able to satisfy listing requirements of Nasdaq or obtain or maintain a listing of our
common stock on Nasdaq.
Listing our common stock on a securities exchange will likely increase our regulatory burden.
The market price of our common stock may fluctuate, and you could lose all or part of your investment.
You will experience immediate and substantial dilution as a result of this offering.
6. RISK FACTORS (CONT.)
We have considerable discretion as to the use of the net proceeds from this offering, and we may use
these proceeds in ways with which you may not agree.
We do not intend to pay any cash dividends on our shares of common stock in the near future, so our
shareholders will not be able to receive a return on their shares unless they sell their shares.
Prior to this offering, we were majority-owned by Green Globe International, Inc. ("GGII"), and a small
group of Company officers and directors hold a majority of the control of GGII. As a result, those officers
and directors are able to control the election of members of GGII’s Board of Directors, as well as the
election of members of our Board of Directors, and they are able to generally exercise control over our
affairs.
Our executive officers and the majority of our directors are also officers and directors of our majority
owner, GGII, and conflicts of interest may arise as a result.
We will be a “controlled company” within the meaning of the listing rules of Nasdaq and, as a result,
can rely on exemptions from certain corporate governance requirements that provide protection to
shareholders of other companies.
During the six months ended June 30, 2022, GGII advanced $252,805 in funding to us, and we may
need additional funding from GGII in the future, which may not be available when needed.
We have broad discretion in how we use the proceeds of this offering and may not use these proceeds
effectively, which could affect our results of operations.
There has been no independent valuation of our stock, which means that our common stock may be
worth less than the offering price in the offering.
The offering price of the primary offering and resale offering could differ.
The resale by the selling stockholders may cause the market price of our common stock to decline.
Past performance is not indicative of future results. Investments may be speculative, illiquid, and there is a risk of principal loss. There is no guarantee that any specific outcome will be achieved. 6
Future issuances of our common stock or securities convertible into, or exercisable or exchangeable for,
our common stock, or the expiration of lock-up agreements that restrict the issuance of new common
stock or the trading of outstanding common stock, could cause the market price of our common stock to
decline and would result in the dilution of your holdings.
Future issuances of debt securities, which would rank senior to our common stock upon our bankruptcy or
liquidation, and future issuances of preferred stock, which could rank senior to our common stock for the
purposes of dividends and liquidating distributions, may adversely affect the level of return you may be
able to achieve from an investment in our common stock.
We are authorized to issue "blank check" preferred stock without stockholder approval, which could
adversely impact the rights of holders of our common stock.
If our shares of common stock become subject to the penny stock rules, it would become more difficult
to trade our shares.
7. Issuer Hempacco Co., Inc.
Exchange & Ticker
Nasdaq Capital Market
Reserved Symbol: HPCO
Common Shares Outstanding Prior to
Completion of the IPO
22,010,124 shares of Common Stock
Common Shares Offered by the Company
1,000,000 shares of common stock (or 1,150,000 shares if the underwriter exercises the over-
allotment option in full)
Common Shares Outstanding
Immediately After the Offering
23,010,124 shares of common stock (or 23,160,124 shares if the underwriters exercise the
over-allotment option in full)
Offering Price $6.00 per share of Common Stock
Use of Proceeds
• Sales, marketing and advertising
• Acquisitions of companies and technologies aligned and synergistic with our technologies
and growth objectives
• Expansion and upgrades to our existing manufacturing facility
• Research and development
• General corporate and working capital purposes.
Lead Underwriter Boustead Securities, LLC
Issuer’s U.S. Legal Counsel Brunson Chandler & Jones PLLC
Underwriter’s U.S. Legal Counsel Bevilacqua PLLC
Auditor dbbmckennon LLC
OFFERING SUMMARY
Past performance is not indicative of future results. Investments may be speculative, illiquid, and there is a risk of principal loss. There is no guarantee that any specific outcome will be achieved. 7
8. Hempacco is Disrupting Tobacco™ and its nearly
$1 trillion industry by manufacturing and selling herb
and hemp smokables from San Diego, California.
Through its own brands and joint venture businesses,
the Company has launched various brands and
products, including The Real Stuff, Hemp Hop with
rapper Rick Ross, and Cheech & Chong's Hemp
Smokables.
Hempacco also provides full-service private label
herb and hemp smokables product development,
manufacturing, and logistics and owns 600 vending
machines to sell its brands. Hempacco is Disrupting
Tobacco as it executes its mission to become the most
recognized name in herb and hemp smokable
products globally.
COMPANY OVERVIEW
Past performance is not indicative of future results. Investments may be speculative, illiquid, and there is a risk of principal loss. There is no guarantee that any specific outcome will be achieved. 8
9. $1 TRILLION AND GROWING GLOBAL
TOBACCO AND CIGARETTE MARKET
Hempacco is Disrupting Tobacco®
with Hemp Smoking Paper and
Hemp, Herb and Spice Cigarettes
Tobacco & nicotine
annual sales are
nearly $1 trillion
$1T
Tobacco companies
generally spend around
$1m hourly on
marketing
$1M 19%
Over 19% of
the adult world
population smokes
The tobacco industry
has historically grown
by 3% per year
▲3%
E-cigarette sales increased
by approximately 122%
from 2017 to 2020
▲122%
A pack of cigarettes sells
for $5 to $15 depending
on state taxes
$5-$15
Cigarette sales in the
USA are driven by
convenience stores
Sources: CDC.gov updated May 25, 2021
and Euromonitor International via BAT’s
report “The Global Market.”
Past performance is not indicative of future results. Investments may be speculative, illiquid, and there is a risk of principal loss. There is no guarantee that any specific outcome will be achieved. 9
10. OUR BUSINESS SEGMENTS
Co-Branded
Manufacturing
Partnerships
Intellectual Property,
Research & Development,
and Patent Licensing
Selling our own products
and joint venture
products in our 600
vending machines
Our own brands
Past performance is not indicative of future results. Investments may be speculative, illiquid, and there is a risk of principal loss. There is no guarantee that any specific outcome will be achieved. 10
11. Made from 100% organic hemp
Our goal is to provide the best hemp and
the best all-natural flavor
Our hemp smokables are made from
100% organic hemp, which includes:
• Filter
• Paper
• Box
THE REAL STUFF™ HEMP SMOKABLES
Sold for $10
for 20 sticks
Sold for $2 for
single stick
Past performance is not indicative of future results. Investments may be speculative, illiquid, and there is a risk of principal loss. There is no guarantee that any specific outcome will be achieved. 11
12. Intellectual Property Development
We expect that our intellectual property portfolio will
enable us to launch a line of functional smokes and
create technology to develop and manufacture hemp,
herb, and spice smokables and smoking paper.
CREATING INTELLECTUAL
PROPERTY AND BRANDS
Past performance is not indicative of future results. Investments may be speculative, illiquid, and there is a risk of principal loss. There is no guarantee that any specific outcome will be achieved.
Current Patent:
Spraying Hemp
with Terpenes
Patent Pending:
Infusing Filters with
Flavors and Terpenes
Brands:
SolitoTM Hemp
Smokables
12
Terpenes are highly aromatic
compounds that determine the
smell of many plants and herbs
13. HOW DOES HEMPACCO
INTEND TO GROW?
Past performance is not indicative of future results. Investments may be speculative, illiquid, and there is a risk of principal loss. There is no guarantee that any specific outcome will be achieved.
More than just Hemp Cigarettes!
In addition to hemp cigarettes, we also produce hemp smoking paper and
herb cigarettes. Both hemp smoking paper and herb cigarettes throughout
the industry are sold in certain major supermarkets and convenience stores,
with herb cigarettes also available on Amazon.
13
Early Adaptors
Go after early
adaptors, including
marijuana smokers.
Social Smokers
Reach social smokers
with our functional
smokes with unique
flavors that do not
produce the
marijuana smell.
Step 1 Step 2 Step 3
Heavy Smokers
Market to heavy
smokers with high
percentages of
cannabinoids and
herb cigarettes.
14. 20 CURRENT PRIVATE LABEL
PARTNERS AND GROWING
Celebrity Joint Ventures:
• Hemp Hop founded by Rick Ross and James Lindsay
• Cheech & Chong Smokables
Our Partnerships with Large Distributors:
• Include HBI-Raw, the world’s largest seller of rolling papers
• Help with economies of scale and raw materials negotiations
• Sign licensing agreements
• Enable fast and steady cash-flow
• Create go-to-market partnership opportunities
• Lead to master distribution opportunities
Past performance is not indicative of future results. Investments may be speculative, illiquid, and there is a risk of principal loss. There is no guarantee that any specific outcome will be achieved. 14
PARTNERSHIPS & JVS
15. In our private label relationship with
HBI International, we’re creating:
HBI-RAW RELATIONSHIP
Past performance is not indicative of future results. Investments may be speculative, illiquid, and there is a risk of principal loss. There is no guarantee that any specific outcome will be achieved. 15
Hemp
Cigarettes
Hemp Blunt
Smoking Paper
Hemp Cones
Smoking Paper
HBI RAW IS THE WORLD'S LARGEST
SELLER OF ROLLING PAPERS
16. Hempacco partnered with the entity of
hip-hop legend, music producer and
rapper Rick Ross to manufacture and
sell the Hemp Hop™ line of products
including:
NEW JOINT VENTURE:
HEMP HOP SMOKABLES
FOUNDED BY RICK ROSS
AND JAMES LINDSAY
Past performance is not indicative of future results. Investments may be speculative, illiquid, and there is a risk of principal loss. There is no guarantee that any specific outcome will be achieved. 16
• Hemp Cigarettes
• Hemp Blunts
17. Hempacco partnered with
the entity of legendary comedy duo
Cheech & Chong to manufacture and sell
hemp CBD cigarettes and hemp blunt rolling
paper using the Cheech & Chong brand.
Past performance is not indicative of future results. Investments may be speculative, illiquid, and there is a risk of principal loss. There is no guarantee that any specific outcome will be achieved. 17
NEW JOINT VENTURE:
CHEECH & CHONG SMOKABLES
• Hemp Cigarettes
• Hemp Blunts
18. HEMP BOX
18
Past performance is not indicative of future results. Investments may be speculative, illiquid, and there is a risk of principal loss. There is no guarantee that any specific outcome will be achieved.
Our strategy is to place a HempBox in the store
and our displays on the counter, driving sales
with point-of-sale real estate in the store.
Hempacco owns 600 vending machines
that can sell Hempacco’s smokables as well as
products from current and potential joint ventures
with leading smokables companies. They are
targeted to be located in supermarkets, smoke
shops, and convenience stores.
HempBox™ state-of-the-art vending machines:
• Automated age verification
• Credit card transaction
• On-screen consumer education
• Highly visible merchandising
• Security
19. HEMPACCO KEY
DIFFERENTIATORS
19
Past performance is not indicative of future results. Investments may be speculative, illiquid, and there is a risk of principal loss. There is no guarantee that any specific outcome will be achieved.
Manufacturing
Intellectual Property
Functional Smokes
Joint Ventures
• Rick Ross
• Raw
• 20 Other Brands
Vending Machines
Own Brand
20. THANK YOU
CONTACT:
HEMPACCO CO. INC.
SANDRO PIANCONE
PRESIDENT & CEO
SAN DIEGO, CA
EMAIL:
SANDRO@HEMPACCOINC.COM
PHONE:
(619) 779-0715
BOUSTEAD SECURITIES
DANIEL MCCLORY
HEAD OF EQUITY CAPITAL MARKETS
IRVINE, CA
EMAIL:
DAN@BOUSTEAD1828.COM
PHONE:
(949) 502-4408