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Investor Presentation January 2015

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Page 1: Investor Presentationcontent.stockpr.com/cabinetgrow/db/Presentations/616/... · 2015. 6. 30. · Alex Leon, Brand & Media Consultant Alex has over 20 years in the Media, Marketing

Investor

PresentationJanuary 2015

Page 2: Investor Presentationcontent.stockpr.com/cabinetgrow/db/Presentations/616/... · 2015. 6. 30. · Alex Leon, Brand & Media Consultant Alex has over 20 years in the Media, Marketing

Safe Harbor

This presentation contains "forward-looking statements" which

are not purely historical and include statements regarding beliefs,

plans, expectations or intentions regarding the future. Such

forward-looking statements include, among other things, the

development, costs and results of new business opportunities.

Actual results could differ from those projected in any forward-

looking statements due to numerous factors. Such factors

include, among others, the inherent uncertainties associated with

new projects. These forward-looking statements are made as of

the date presented, and we assume no obligation to update the

forward-looking statements, or to update the reasons why actual

results could differ from those projected in the forward-looking

statements. Although we believe that any beliefs, plans,

expectations and intentions contained herein are reasonable,

there can be no assurance that any such beliefs, plans,

expectations or intentions will prove to be accurate. Investors

should consult all of the information set forth herein and should

also refer to the risk factors disclosure outlined in our reports filed

with the Securities and Exchange Commission.

The following information is a summary of the S-1 registration

statement on file with the SEC. All Cabinet Grow investors must

review our complete prospectus by following this link to the SEC

website:

http://www.sec.gov/Archives/edgar/data/1610462/000155479514

000713/cg1223form424b3.htm

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Executive Summary

Cabinet Grow’s mission is to deliver an unprecedented home cultivation user experience.

Achievable through innovative design and dynamic cultivation support delivered by our

professionally trained staff. We believe in, and will continue our commitment to, consumer centric

market education. Cabinet Grow is managed by our founders, who aspire to be the thought

leaders and influencers in our field.

We define ourselves by one statement:

THE STANDARD IN HOME GROWING

MANUFACTURES AN AWARD WINNING HOME CULTIVATION EXPERIENCE FOR NOVICE INDOOR GROWERS

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Company History

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1 http://www.mpp.org/states/medical-marijuana-patient.html

The OpportunityMarket Observations

Increasing Medical Cannabis

Demand

○ 24 of 50 states have some form of

legalized medical cannabis1

○ Safety concerns relating to

contents and availability of

unregulated cannabis

○ Repressed hobbyist demand

resulting from regulatory

environment

Industry Focused on

Commercial Cultivation

○ Overwhelmed by brand, product,

and medium choices

○ Limited availability of educational

resources dedicated to indoor

home growing

Home Grow Box Customers

○ Cabinet Grow has sold into 47

states and 14 countries

○ Challenged with steep learning

curve

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The Cabinet Grow SolutionOUR COMMITMENT TO THE HOME GROWER

o Offer fully assembled, self-contained, modular Grow Cabinets

o Provide our customers with a 100% satisfaction guarantee

o Enhance customer experience through market and consumer education

o Provide home scale, tailored kits and parts for the horticulture DIY “Do It Yourselfers”

o Continue to deliver award winning designs

STRIVE TO BE THE STANDARD IN HOME GROWING

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The Yielder Max (YM) is the company's

midsized, scaled down version of the

Earth Cab Pro. Often paired with the

larger, ECP, the Yielder Max is also

available in soil or hydroponics, and Flip

LED 360 or horticulture grade CFL grow

lighting. YM’s boast the same powder

coated steel construction, fire resistant

and lockable safety, and exclusive

design features found in it’s big brother,

the ECP. Though smaller in stature, the

YM also comes standard with a

secondary adjustable grow chamber.

The Earth Cab Pro (ECP) is our largest

Grow Box and are available in; Soil or

hydroponics medium, and traditional HID

or Flip LED 720 lighting. Made from a

powder coated steel cabinet with a 3-point

lock for fire resistant and safe operation.

Some exclusive features in the complete

kit include; casters for mobility, washable

& reusable pre-filter, and removable &

adjustable height grow shelf for a

secondary light tight propagation

chamber.

The Medicab Micro (MCM) is the

company's smallest Grow Box intended

for low consumption, personal growing.

All Medicabs are available in soil or

hydroponics medium and come standard

with both CFL bulbs and LED lighting to

maximize energy efficiency and

temperature control. The MCM includes

Cabinet Grow’s custom designed, micro

version of a commercial carbon filter,

specifically produced to pair with an axial

fan in order to prevent offensive odors.

Grows from seed through harvest.

Current Product Line

74.5”x46”x31” 60”x24”x31” 26”x24”x17”

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Management Team 20+ YEARS IN THE CANNABIS INDUSTRY

Samuel May, Chief Executive Officer

Mr. May’s 7 years cannabis industry experience began in 2008 when Sam and co-founder Matt Lee started and led the Cabinet Grow (formerly Universal Hydro) company.

Cabinet Grow is Sam’s fourth venture in fourteen years. He has been involved in a variety of companies as a founder and operator since 2000. In 2004 he co-founded Main

Street Lending, a mortgage company that developed a mortgage loan program designed to leverage a debtor’s home equity to obtain an early exit from Chapter 13 bankruptcy.

Matthew Lee, Chief Operating Officer

In 2008, Mr. Lee co-founded Universal Hydro with Sam May. Matt has had a record of success in his previous ventures and extensive experience in brand acquisition, marketing,

and brand licensing in the consumer products industry. In 2007, he was a Co-Founder and remains a Managing Partner at JMM Lee Properties (“JMM Lee”). JMM Lee owns a

diversified portfolio of fashion, tele-communications, and home appliance trademarks including flagship brands Bendix, AirTouch, Litton, Packard Bell (U.S. only) and Slates. JMM

Lee is a leading consumer brand licensing company and licenses brands to industry leading manufacturers and retailers worldwide. In 2008 to 2012, Matt also co-founded and

built Thor Appliance Company into a leading laundry appliances supplier .

Barry Hollander, Chief Financial Officer

Mr. Hollander was named Chief Financial Officer on May 14, 2014 and has nearly 30 years of business experience including 15 years as Chief Financial Officer of private and

public companies. Over his career, Mr. Hollander contributed to acquisitions, mergers assisting companies preparing to go public and public reporting responsibilities, thereafter.

Barry will lead us through the completion of the Company "going public", culminating in the trading of our common stock and will be instrumental to our growth and meeting our

long-term objectives.

Alex Leon, Brand & Media Consultant

Alex has over 20 years in the Media, Marketing and Sales business. In 2002, he worked for URB Magazine where he eventually ran the day-to-day operations yielding two million

dollars of ad revenue. In 2007, Alex joined Guerilla Union event production. As the Account Director, he managed a production team and sold six million dollars of event

sponsorships. In 2010, Alex left Guerilla Union to work for hydroponic nutrient giant, Advanced Nutrients. He was hired as the Associate Publisher to run the newly launched

media division, Rosebud Magazine. Alex rebranded the publication and it became the leading, authoritative voice within the industry. Additionally, Alex saved Advanced Nutrients

over a million dollars in operating costs and turned the publication into a profitable business unit. In 2013, Alex joined Apothecary Genetics, as CEO and focused on developing

Apothecary into a successful global brand. Alex is also an owner of The Republiq Agency, a media marketing agency serving the hydroponic industry.

Philip Gonzales, Marketing Consultant

Philip Gonzales is an award-winning, seasoned marketer with a successful track record increasing client brand equity, operational efficiency and profitability. Over the past 14

years Phil has held various leadership and executive management positions for some of the most renowned advertising agencies and brands in N. America managing over $200

Million in total client advertising across Automotive, Entertainment, Consumer Packaged Goods, Fashion, Technology & Agriculture. Most recently in 2013, as the Advertising

Director and Global Marketing Director for Advanced Nutrients, Phil restructured and consolidated the 100 person marketing team across N. America, India & Europe saving the

company $1.2 Million annually while maintaining ongoing marketing initiatives across portfolio of products. With their recent successes in the hydroponic market Phil Co-founded

The Repuqliq Agency, a Media Architecture and Brand Management Agency specializing in the Hydroponic and emerging MMJ Market.

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Revenue & Use of FundsSCALING PREPARATIONQ3 & Q4 2014 Cabinet Grow expanded into a new production and retail facility. Resulting in:

Increased production capacity

New revenue opportunity

Operational Infrastructure

IPO capital deployment focused on revenue growth strategy

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

2012 2013 2014

REVENUE OF EXISTING PRODUCTS ASSUME 100% OF IPO $1,960,000

Digital Content &

Social Media Marketing

$300,000

Staffing & Administration

$200,000

Inventory & Working Capital

$635,000

Sales & Marketing

$775,000

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Growth Strategy

New Markets

Existing New Products

Product Development

• Control Systems & Automation

• Improve LED Technology

• Expand DIY Grow Kits & Packages

• Services & Supplies

Market Development

• Expand Home & Garden Reach

• Business to Business

• Retail Distribution

• Affiliate Programs

Diversification

• Consulting Services

• Original Digital Content Production and Syndication

• Learning Management System

Market Penetration • Increase Awareness

• New Sales & Distribution Model

• Optimize Web Conversion

• Expand Touch Points

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Customer Acquisition and Sales Strategy

Direct to Customer

○ Newly Enhanced Website

○ Print Advertising

○ Trade Shows

○ Social Media Marketing

○ Digital Advertising

○ Email Marketing

Optimize Existing Touch Points Future Revenue StreamsBusiness to Business

○ Retail Distribution

○ Regional Market Saturation

○ Consulting Services

○ Affiliate Programs

Subscriber Database

○ Cross Selling & Upselling

○ Subscription Services

○ Track & Leverage Key Data Points

Content Conversion

○ Drip Campaigns: Synchronize

product & service offering based on

grow cycle

○ Learning Management System &

Master Grower Curriculum

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Competitive Landscape

A HIGHLY DEFENSIBLE, FULL USER EXPERIENCE STRATEGY

DEVELOPS AS THE MARKET EDUCATION CONTINUES

PLAN TO INCREASE MARKET

SHARE BY DELIVERING:

o Safe, simple, and functional grow

systems

o Innovative energy efficient design

o Grow packages tailored to suit

customer’s specific needs and

budget

o Enhanced customer experience

through market and consumer

education

o Outstanding service, total

satisfaction, and best-in-class

product guarantee

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Pro Forma Cap Table

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○ Industry Experienced and Diverse Management Team

○ Four Year Sales History Proves Concept

○ Fully Reporting Public Company - $2M Registered Offering via S-1

○ Clear Competitive Advantage - A Safe, Simple, and Functional User Experience

Conclusion

CONTACT INFORMATION

SAM MAY

CEO

[email protected]

949-392-8695

BARRY HOLLANDER

CFO

[email protected]

561-249-6511

CABINET GROW, INC.

17932 Sky Park Circle

Suite F

Irvine, CA 92614

www.cabinetgrow.com

888-544-9376