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Cannabinoid Biosciences, Inc.
- 1. Cannabinoid Biosciences Inc. ACalifornia Corporation
- 2. The Cannabinoid Biosciences Business Plan: AUnique Opportunity to Build an Investment Grade Company in the Emerging Cannabis Industry This Cannabinoid Biosciences presentation contains certain forward-looking statements that are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Such risks and uncertainties include, but are not limited to the Risk Factors noted in the Company’s filings with the Securities and Exchange Commission. The Company undertakes no obligations to update any forward-looking statements, whether as a result of new information, future events or otherwise.
- 3. About US • CannabinoidBiosciences, Inc.Company: • Frank Igwealor, CPA, JD, MBA, CMA, CFM, MSRM Sr. Vice President and CFO Prepared by: • Biopharmaceutical Research & Development, Investing, Financing and Service Solutions in the Cannabis Industry Products:
- 4. OUR MARKET: As atNovember 30, 2018, Thirty-three states and the District of Columbia currently have passed laws and/or regulations that recognize, in one form or another, legitimate medical uses for cannabis and consumer use of cannabis in connection with medical treatment. The District of Columbia and 10 states -- Alaska, California, Colorado, Maine, Massachusetts, Michigan, Nevada, Oregon, Vermont and Washington -- have adopted the most expansive laws legalizing marijuana for recreational use. It is no wonder then that the legal marijuana market in the U.S. is estimated to grow from $9.2 billion in 2017 to $47.3 billion in 2027. Another report from RBC Capital Markets showed that American cannabis sales are quickly catching up to those of beer and wine, and the market could be worth $47 billion within a decade.
- 5. REGULATION: The regulatory environmentis gradually shifting more favorably on medical cannabis and biopharmaceutical cannabinoid at both federal and state level. For example, the H.R. 2, the Agriculture Improvement Act of 2018, also known as the 2018 Farm Bill, H.R. 2 includes a provision that lift the ban on hemp, authorize hemp production and research and amend the Controlled Substances Act. See. https://rules.house.gov/bill/115/hr-2. On December 12, 2018, U.S. Congress approved a Bill to Make CBD Federally Legal. Passage of 2018 Farm Bill clarifies CBD legal status and lets U.S. farmers grow hemp, but some regulatory questions remain. https://www.consumerreports.org/marijuana/will-new- farm-bill-make-cbd-legal-everywhere/
- 6. CUSTOMER BASE AND MARKETACCEPTANCE: • There is excitement in the air as market sentiment among investors and customers alike in the legal marijuana industry grows more positive. Many states are promising to deliver new markets, reducing risk exposure from the federal government legally intervening. This situation is creating an inviting paradigm for investors; stabilized business environments, breakthroughs in Congress, and shifts in federal enforcement. Cannabis-related business such as our research and development of cannabinoid, cannabidiol, endocannabinoids, phytocannabinoids, and synthetic cannabinoids product platform suitable for specific treatments, are gaining acceptance in the eyes of the general public including the recent pronouncements and conducts of the U.S. Food and Drug Administration (FDA), showed that federal authorities are not opposed to such research and development.
- 7. COMPETITION: Right now thereis no fund focused on rollup of existing high-margin dispensaries California and across the U.S. marketplace. In California for example, with 358 licensed recreational marijuana stores, the state’s three licensing authorities have issued over 5,000 commercial cannabis licenses. So competition is not an issue now.
- 8. OPPORTUNITIES: • Above marketdata was one of the reasons that informed our principals’ decision to raise $75 million in capital through the Regulation D 506(c) via crowdfunding platform with which to acquire/rollup ≥10 select dispensaries, consolidate their operation and financial information, and IPO on the NASDAQ or NYSE and Canadian Securities Exchange (CSE). In addition, we are raising $50 million for acquisition of additional 8-10 dispensaries via the Regulation A+ T2. We have completed the filings and are waiting for the U.S Securities and Exchange Commission (SEC) to qualify our Reg. A+ Offering Circular.
- 9. ROLLUP OPPORTUNITY • We’reraising $50 million through Reg A+ and $75 million via Reg. D to acquire 10 dispensaries which we’ll rollup into our holding company and IPO on the NASDAQ or New York Stock Exchange. Based on the most recent large-scale buy/sell transactions in the stock market (STZ buyinto CGC and Altria buyinto CRON), and the fact that the market is paying on average $131 per $1 of revenue for Cannabis businesses, a successful rollup as contemplated would fetch about $4.6 billion or $215 per share after consolidation and listing on NASDAQ or NYSE.
- 10. Five-Year Pro FormaFinancial Summary 2019 2020 2021 2022 2023 Revenue Retail and Wholesales 54,237,238 63,544,375 74,448,621 87,224,040 102,191,728 Real Estate and Financial 372,320 1,703,880 3,420,480 4,593,480 5,383,480 Industry Turnkey Solutions 294,000 3,243,600 13,149,321 17,318,186 22,068,824 Compliance Solutions 56,000 1,329,000 4,212,000 5,122,000 7,642,000 Industry Rollup 0 0 0 60,000,000 Total Gross Revenue (USD) 54,959,558 69,820,855 95,230,422 114,257,706 197,286,032 Net profit $17,091,402 $20,024,295 $23,460,474 $27,486,303 $32,202,966 Dividend Distributions 8,545,701 10,012,148 11,730,237 13,743,151 16,101,483 Reinvestments 8,545,701 10,012,148 11,730,237 13,743,151 16,101,483 Projected Market Capitalization $4.68 Billion $5.48 Billion $6.42 Billion $7.52 Billion $8.82 Billion
- 11. The following summarizesthe key terms of the Secured Convertible Notes and the private placement. Please refer to the relevant sections of the PPM and related documents, including the Company‛s articles of incorporation (“Articles”) for more complete details about the Secured Convertible Notes and the private placement.
- 12. Issuer Cannabinoid Biosciences,Inc. Security Secured Convertible Note into Common Stock Discount 0% Interest Rate 8% Per Annum (payable fifteen days after the end of the year) Maturity December 31st 2023 Valuation Cap N/A Floor N/A Minimum Subscription $1,000 per investor Maximum Subscription $75 million per investor Initial Closing Min. of $10K before 03/08/2020 Additional Closings One or more; up to a total of $75 million Use of Proceeds Rollup Cannabis and fund growth across US Dividend Declarations Dividend payment in year 4, subject to Board approval Liquidity Event Sale of company or listing on a major stock exchange Mandatory Conversion Converts to Shares of Common Stock Resale Restrictions No resale permitted within 12 months & Board approval Voting Rights Per Cannabinoid Biosciences Inc. Articles of Incorporation and By Laws Registrar and Transfer Agent FundAmerica (VStock Transfer) Escrow Company Prime Trust Corporate Bank Bank of America Legal Counsel Law Office of Azuka L Uzoh ISIN / CUSIP To be issued Governing Law Laws of California
- 13. This Cannabinoid Biosciencespresentation contains certain forward-looking statements that are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Such risks and uncertainties include, but are not limited to the Risk Factors noted in the Company’s filings with the Securities and Exchange Commission. The Company undertakes no obligations to update any forward-looking statements, whether as a result of new information, future events or otherwise.