ams pitch deck 0909merchant banking services • banking solutions for dispensaries, distributors,...
TRANSCRIPT
ALCHEMIST INC
Certain information regarding the company contained herein may constitute "forward lookinginformation" within the meaning of applicable securities law (“forward looking statements”).Forward looking statements are frequently characterized by words such as "plan", "continue","expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "potential", "proposed"and other similar words, or statements that certain events or conditions "may" or "will" occur.These statements are only predictions. Various assumptions were used in drawing the conclusionsor making the projections contained in the forward looking statements throughout this deck.
Forward looking statements are based on the opinions and estimates of management at the datethe statements are made, and are subject to a variety of risks and uncertainties and other factorsthat could cause actual events or results to differ materially from those projected in the forwardlooking statements. The company is under no obligation, and expressly disclaims any intention orobligation, to update or revise any forward looking statements, whether as a result of newinformation, future events or otherwise, except as expressly required by applicable law.
FORWARD LOOKING STATEMENTS
Our StoryAlchemist is a global provider of SaaS
technology solutions to the cannabis
sector. We are primarily focused on
investing and building a sustainable
portfolio of business entities, by
actively identifying opportunities in
the developing global cannabis
market, through a combination of
acquisitions, incubations and
investments.
Our MissionOur mission is to invest and build a
sustainable portfolio of technology
companies within the global
cannabis ecosystem with the goals
to create shareholder value.
Our VisionAlchemist's vision is to be recognized
as a global leader providing the most
reliable technology solutions that
seamlessly integrate into existing
processes with the aim of making
businesses more efficient and
profitable.
ABOUT US
“I wish we had the Alchemist technology available to us when I was director ofconsumer affairs it would have saved us a lot of time and headaches”
Awet Kidane, Former Director of Consumer Affairs for the State of California.
“I personally believe the Alchemist technology offering is truly a game changer when itcomes to compliance and reporting in todays cannabis sector”
Brian Clay , Former Chief , California Corrections (Parole Division) State of California
“Cannabis businesses need robust, dependable banking services and in our opinion,Alchemist is the first company to do it the right way.”
Harold Shaw, Chairman, 1st Federal Financial
WHAT WE DO
Software As A Service (SaaS)
v Software licensing fee’s
v Transaction fee’s
v Consulting & maintenance fee’s
Cannabis focused Fintec Solutions
v Merchant banking fee’s
v Transaction fee’s
v Service fee’s
`
Oddysee
• Automation and streamlining of the Local and state cannabis licensing process. DIY, Hybrid and full consulting (Green Rush Consulting).
Certicraft
• Blockchain validated Track and Trace application. One click process makes it easy for cultivators and manufacturers to become and
remain compliant
Aqua
• Inventory Management, CRM, ERP, and POS integrated to major accounting platforms such as Sage, QuickBooks etc. - API’s to Metric,
GMP, and CTLS. Desktop and mobile POS. Geo location, facial recognition, card present, running fully integrated browser based sits and
mobile applications.
Software As A Service
Merchant Banking Services
• Banking solutions for dispensaries, distributors, wholesalers, home delivery and manufacturers.
Bank Solutions
• Automated monitoring of all transactions, configurable to provide custom reporting including SARS and COLES audit reports and Tax collection.
Banking Solutions
`
Business Plans
Business plans are required to create a successful cannabis business and when applying for your state license. By
using business plan software with specific tools and information, it accelerates the process and takes a fraction of
the time to develop comprehensive plans. You and your team can whip through a series of professional plans to add
insight, creativity, and ultimately, success.
Project Management
Starting a cannabis business such as a marijuana dispensary, it takes a team to strategically coordinate everyone
involved and to ensure they are executing their tasks. A pre configured project management software is provided with
all the steps to successfully opening your business or securing your state license. Being combined with the Business
Plan editor everyone will stay on target directly with the content that is being developed.
Cannabis Resource Library
The Cannabis Resource Library is a databank full of categorized content related to the specific license type you are
developing. Tools within the library work with the business plan editor, giving the user features such as drag and drop
options to quickly build content for the business plans.
Dashboards and Reporting
Dashboards are used to manage all projects and tasks associated with each member of your team. This gives you a
easily manageable view to ensure your projects are completed on time, every time. Graphs and reporting tools let you
put together presentations in a flash.
OddyseeCannabis Licensing Software
OddyseeManagement Team
CertiCraftCompliance Reporting and tracking
Track and Trace
Know where every batch, plant, and product is from seed to sale.
Compliance
Stay compliant with our one-click report generation. Download Health Canada (CTLS) and CRA reports with ease.
Automated Data Capture & Analysis
Reduce your labour costs with our automated sensors and equipment.
Product Information
Easily differentiate your product and protect your brand with your certification of analysis backed inventory
management. Collects database of cannabinoids, terpenes & contaminant data.
Connect with Consumers
Mobile app will help you engage directly with consumers, provide real-time sales & interaction data as consumers
interact with your product.
CertiCraft is a product information and
Seed-to-Sale (S2S) tracking platform for
the cannabis industry. Combining RFID
and IoT technologies with blockchain
immutability provides a secure,
automated, and comprehensive data
solution. We pair all that with an easy-to-
use interface that saves your employees
time, and provide analytics to help you
greatly optimize your cannabis operations.
AQUACustomer Compliance
Aqua strictly adheres to all state regulatory procedures and protocols. We use a myriad of biometric identification methods such
as facial recognition, voice authentication, ID scan verification to protect both the customer and the client. Use of Quick comply
QR Code for verification of customers in the mobile app.
Automatic Sales Tax Payments
Aqua automatic sales tax collection, payment, and filing reduces significant overhead and solves the most challenging problem in
the industry. Our technology connects directly with the state tax authority to automatically collect, pay and file the appropriate
sales tax. No more expensive cash management services, security risks, or accounting nightmares.
Mobile Ordering And Delivery
Customers can download the Aqua mobile app to review menu items, order and pay(online or in-store), gain loyalty and rewards,
and give valuable feedback directly to you. Customers are even notified when they come close to your location
Marketplace
Aqua is the first fully integrated POS and e-commerce solution. Customers can order directly from your personalized marketplace
which then automatically appears on the POS. True omni-channel commerce.
Aqua Financial
• Online Banking
• Cash Logistics
• Payroll
• Card Issuing
• B2B Transfers
Integrated Enterprise Application
• CRM – ERP – Cash Management
• Accounting & Payments
• Human Resources
• Inventory Management
• Marketing
• Compliance
• IT
• Retail Operation
A T P - Competitive Matrix
CBD Transdermal Patch
Whatever your purpose for using CBD, whether it be, anxiety, pain, inflammation, depression, or anything else, your sure to love the consistency of the
transdermal patch. Special slow release system conveniently doses out a constant supply of CBD throughout the day to maximize the benefits of this
amazing cannabinoid. Simply apply the patch to a clean, dry, veinous surface of your skin and wear for up to 24 hours
CBD Pain Cream
Antioxidants are a skin’s best friend, helping to ward off the ravages of time and daily living. Steeped with luscious organic avocado and jojoba oils, plus
rosehip, carrot, and organic neem oil too; it deeply replenishes and revives dry, dull skin, leaving it renewed and rejuvenated. In a soothing base of organic aloe,
with nourishing vitamins A, B5, C and E. These ingredients combined with a healthy dose of CBD and Lavender essential oil make for the perfect cream to
relieve your aches and pain.
Full Spectrum Oil CBD Tincture
Full spectrum CBD tincture also contains other active plant compounds, that our CBD isolate tincture does not. This gives it the potential for a wider array of
health benefits, as well as in some cases, people tend to find CBD more effective when used alongside other compounds of the cannabis plant.
CBD Tincture
Hand crafted using the highest quality starting materials available, CBD Tincture is simply the finest on the market.
Projected Revenue
2019 | ALCHEMIST INC.
$9,900,000
$34,200,000
$85,000,000
$5,310,000
$13,700,000
$31,000,000
$4,590,000
$20,500,000
$54,000,000
$-
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
$80,000,000
$90,000,000
Year 1 Year 2 Year 3
Total Revenue
Revenue Costs Gross Margin
Revenue Breakout
2019 | ALCHEMIST INC.
$3,000,000
$5,000,000
$16,000,000
$3,600,000
$12,000,000
$24,000,000
$1,800,000
$7,200,000
$15,000,000
$1,500,000
$10,000,000
$30,000,000
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
Year 1 Year 2 Year 3
PRODUCT REVENUE
Oddysee CertiCraft Aqua Products
USE OF PROCEEDS
2019 | ALCHEMIST INC.
Operational Costs
Capital Market
$1,000,000
Mar
ketin
g $1
,500
,000
Trade Events$800,000
Travel
$500,000
Filing, Insurance,
Legal
$750,000
Consulting$765,600
Salaries
$370,000
Development Costs
Aqua
$750,000
CertiCraft$800,000
Island
Therapeutics
$750,000Oddysee
$3,500,000
$12,000,000
CAP TABLESHARE STRUCTURE
PROJECTED CAP TABLEAFTER CONSOLIDATION AND FINANCING
COMMON SHARES DATE ISSUE PRICE # OF SHARES
Common Shares As of Oct 31, 2018 $ — 42,440,990
Shares Issued on Financing (Round 1) March 14, 2019 0.05 16,470,909
Total Common Shares Outstanding 58,911,900
WARRANTS DATE EXERCISE PRICE # OF SHARES
Warrants September 7, 2019 0.075 8,707,591
Financing Warrants March 14, 2019 0.075 16,470,909
Total Outstanding Warrants 25,174,500
ACQUISITION SHARES ISSUE PRICE # OF SHARES
Odyssey, Lady Chatterley, CertiCraft, Island Genetics & Island Therapeutics
0.05 47,507,640
Total acquisition shares outstanding 42,257,640
OPTIONS EXPIRY DATE EXERCISE PRICE # OF SHARES
May 24, 2019 0.06 700,000
June 1, 2019 0.06 50,000
January 5, 2021 0.24 1,150,000
March 26, 2021 0.24 420,000
Total Outstanding Option 2,320,000
DILUTED SHARES OUTSTANDING 128,670,040
2019 | ALCHEMIST INC.
* FOUR TO ONE CONSOLIDATIONz ISSUE PRICE # OF SHARES
Shares Outstanding after Consolidation 32,167,510
* PROJECTED COMMON SHARES ISSUE PRICE # OF UNITS
Projected Shares to be Issued in the second round of financing Post Consolidation
0.25 48,000,000
Total Shares Outstanding Post Consolidation 80,167,510
* WARRANTS EXP DATE
EXERCISE PRICE # OF UNITS
Financing Warrants (Round 2) 2021 0.60 48,000,000
* PROJECTED FULLY DILUTED SHARES OUTSTANDING 128,167,510
CAP TABLE
2019 | ALCHEMIST INC.
SHARE STRUCTURE
PROJECTED CAP TABLE AFTER CONSOLIDATION AND ROUND 2 FINANCING*SUBJECT TO CHANGE
ISSUED SHARE COST BASES DATE ISSUE PRICE WARRANTS
Private Placement 2016 .07 0.10
Private Placement 2016 .05 0.075
Private Placement 2017 .05 0.075
Average cost price .0625 0.25
POST CONSOLIDATION PRICE
Average Share Cost Base Fully Diluted 0.21
A veteran of the technology sector, Mr. Mann has managed and successfully exited nine start-ups on three continents. Under his leadership VeridicomInternational become one of the first North American companies to secure supply agreements with the Chinese military as well as to many of the united states TLA’s. Mann’s network within the Law enforcement and military space was further established with the launch in 2010 of Hastings Tactical Systems, a company suppling covert body armour to Canadian and US police, Correction’s and close protection services. Mann has been involved in the US Cannabis sector since 2013 and has worked with cannabis start-ups in Washington State, Oregon and California. Most recently Mann held the post of Chief Operating Officer at a public company listed on the Canadian securities exchange, where he was instrumental in negotiating the Californian acquisitions of HS Airways (CaliGold), 8 Points Management (Bravo Distro), and 420 Realty. Mann joined Alchemist in July of 2018 as a director, a was appointed CEO in December of the same year .
PAUL MANN AWET KIDANEDIRECTOR
BRIAN CLAYDIRECTOR
Mr. Kidane has worked for nearly 15 years in public service in both the Legislative and Executive branches, including as Director of the Department of Consumer Affairs, as Chief of Staff to Assembly member Steve Bradford and as Senior Advisor to State Assembly Speaker Karen Bass. During his career in the California State Assembly, Kidane led a department that oversaw more than 40 professional licensing boards, including ones that regulate medical cannabis, construction and nursing. Kidane was the staff point-person who oversaw the release of bills from the Assembly Appropriations Committee. Other key works included the creation of the film tax credit during budget negotiations and the first CEQA exemption for a Los Angeles stadium during a special session. His other works included the passage of the first and second Renewable Portfolio Standard. As Director of Consumer Affairs, Kidane oversaw the development of the budget and the legislative package, managed close to 5,000 staff and led efforts to reform licensing and enforcement for all consumer boards and commissions
DIRECTOR & CEO
MANAGEMENT & DIRECTORSALCHEMIST TEAM
Mr. Ceti is a globally recognized cannabis consultant and advocate, he has more than 25 years of experience within multiple industry segments. Founder and CEO of Green Rush Consulting, an international cannabis consulting firm, Zeta and his team have the enviablesuccessful track record of winning more than 150 Cannabislicenses across the United States of America. He has consulted with, and assisted some of the most successful cannabis companies in Europe, Canada, Colombia, and Australia and is today considered to be amongst the top cannabis advisors in the world.
Mr. Clay owns and operates a (California) state-licensedprivate investigation company, and state-licensed private patrol operator (uniformed security guard) company, pro-viding services to the cannabis industry in areas of: execu-tive protection of high-profile clients and politicians, com-pany due diligence, high-level background investigations,uniformed security guards, alarm, access control and CCTV, business security needs/requirements related to security assessments/CPTED, security awareness for owners, staff and vendors, security consulting needs for facil it ies, staff-ing, supply chain, currency transport, policy and proce-dures, and regulation requirements for city government, county, state and federal.
ZETA CETIDIRECTOR
Mr. Meghji was an active member of the brokerage industry acting as an Investment Advisor and Registered Represen-tative for over 20 years. He currently serves as a director and officer of several public companies including Wildflower Brands Inc., a CSE listed issuer with interests in the cannabis industry in Washington State and California.
N A S H M E G H J ICFO DIRECTOR
Mr. Sandhu has a BBA in business management. Previously, Sukh has worked in a corporate environment bridging com- munication channels between various levels of management & the executive team. With his extensive knowledge in the cannabis investment industry, he brings intrinsic value to Alchemist through financing capabilit ies and business development.
SUKH SANDHUV. P. INVESTOR RELATIONS
KELLY PLADSONCORPORATE SECRETARY
Kelly has acted as Corporate Secretary and provided corpo- rate governance and regulatory compliance services tomany TSX Venture and CSE listed companies since 2009.She works closely with the company's CEO and legal coun- sel in maintaining corporate records, managing theday to day operations of the company and ensuring thecompany's filings with the securit ies commissions and ex-changes are accurately filed and in accordance with their deadlines. Prior to 2009, Ms. Pladson was an investment advisor's assistant for two years.
MANAGEMENT & DIRECTORSALCHEMIST TEAM
Mr. Gdanski is a graduate from the University of Western Ontario and has over a decade of experience with private corporations and public companies in the capital markets. Mr. Gdanskiprovides strategic advisory services to public and private companies including corporate finance where he has directly led million dollar financings, marketing and communications, investor and public relations, mergers, acquisition and joint venture transactions.
DAVID GDANKSKI
