Ensuring your goods get to you quickly, securely, and discreetly · 2019-11-11 · 10+ years in...
Transcript of Ensuring your goods get to you quickly, securely, and discreetly · 2019-11-11 · 10+ years in...
Ensuring your goods get to you quickly, securely, and discreetly
DISCLAIMER & FORWARD LOOKING INFORMATION
Certain information included in this document contains forward-looking statements. These forward-looking statements include, among others,
statements with respect to the Company’s objectives, goals and strategies to achieve those objectives and goals, as well as statements with respect
to the Company’s beliefs, plans, objectives, expectations, anticipations, estimates and intentions.
The words “may”, “will”, “could”, “should”, “would”, “suspect”, “outlook”, “believe”, “plan”, “anticipate”, “estimate”, “expect”, “intend”, “forecast”,
“objective” and “continue” (or the negative thereof), and words and expressions of similar import, are intended to identify forward-looking
statements.
By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, which give rise to the
possibility that predictions, forecasts, projections and other forward-looking statements will not be achieved.
Certain material factors or assumptions are applied in making forward-looking statements and actual results may differ materially from those
expressed or implied in such statements. The Company cautions readers not to place undue reliance on these statements, as a number of
important factors, many of which are beyond the Company’s control, could cause actual results to differ materially from the beliefs, plans,
objectives, expectations, anticipations, estimates and intentions expressed in such forward-looking statements. These factors include, but are not
limited to, risks relating to industry, competition, customer, legal, taxation and accounting matters. The foregoing list of factors that may affect
future results is not exhaustive. When reviewing the Company’s forward-looking statements, readers should carefully consider the foregoing
factors and other uncertainties and potential events.
2/24
WHAT IS PINEAPPLE EXPRESS DELIVERY?
Cannabis Delivery
Made Easy
Business to Consumer -
Same Day
Business to Business
Technology Driven
Platform
Direct Integration with LPs
Easy integration with
Ample Organics, Shopify,
& other platforms
Experienced
Management Team
Logistics Software behind
Just Eat & Delivery Direct
Fully Compliant with all
provinces
3/24
The proprietary logistics software behind Just Eat and Delivery Direct brings you the most reliable same-day, last mile delivery
services for the cannabis industry
Software
enabled over
5,000,000
deliveries!
RANDY ROLPH, CEO
4/24
Sarah Seale
General Manager 15+ years International Operations experience
Set up over 50 successful companies internationally in Asia, Canada, Caribbean and the UK, ranging from start up to 25 mil
Managing partner for Cannabis Management Resources Inc, sitting on the strategic advisory boards for Vinzan International and Ayurcan
Established and respected Cannabis industry management expert
EXECUTIVE TEAM
Randy Rolph
CEO Serial entrepreneur, founded multiple successful logistics and food services businesses
Facilitated over 5,000,000 deliveries, pioneering food delivery in Canada
1st to develop real-time tracking
Founded Menu Express in 2009, sold to Just Eats Canada in 2014 and launched Delivery Direct
CEO and Founder of Delivery Direct, GeoDispatch, Pineapple Express Delivery and CannDeliv Technologies
Mike Sax
CFO 20 years of progressive finance and accounting experience
10 years experience in logistics and transportation 5 years experience managing audit engagements at KPMG in the Industrial and Automotive department working with clients listed with the OSC and SEC CPA designation
Mike Depault
CTO 10+ years in software engineering: .NET, NodeJS, Mobile App Development, Embedded systems, Geo-tracking solutions, Web development, SEO
Co-founder and development lead of CannDeliv and GeoDispatch
Key technology partner, from inception to completion, of Menu Express and Delivery Direct
Engineering Degree at ETS Montreal
5/24
PROPRIETARY CANNDELIV TECHNOLOGY TM
API integrates with LP e-commerce platform, like
Shopify, Ample Organics, and most other
platforms, allowing for easy integration
Merchant portal allows LP to stay connected
with our processes and track orders
2-Way APP allows dispatch and drivers to stay
connected on the road
LP & customers communicate directly with
dispatch & customer care to ensure first
contact resolution via chat and email
6/24
HOW WE COMPARE
We represent an
additional offering
at checkout,
just like
Canada Post, FedEx,
and Purolator… but
faster!
7/24
CUSTOMER TESTIMONIALS
The drivers that work for this company have really top-notch
communication and work with you to see that your delivery is
convenient for both parties.
I would not hesitate to recommend Pineapple for your next
delivery
- AVenton; April 15, 2019 (Source: CCRB.ca)
Yet again I received fast, courteous service from Pineapple
Express [Delivery]. Can't say enough about the service they
provide!!!
- TrinaR; April 14, 2019 (Source: CCRB.ca)
Was very happy with my service, My order
came super fast I think I got it an hour after I
ordered!
- RickyL; March 17, 2019 (Source: CCRB.ca)
Fantastic first experience with this delivery service!
Friendly, professional, priced perfectly, and on
time as promised. I appreciate the uniform and
photo ID as well as the SMS notifications of when
to expect the delivery. Would 100% recommend
this service!
- Smank; April 29, 2019 (Source: CCRB.ca)
I have had nothing but good experiences with this delivery service. I started using them about 3 months ago and the
convenience is awesome! Every driver has been professional and even funny, they also take the time to work with
your schedule and will do early delivery as well. All in all I am extremely happy and would recommend to anyone
who hasn't tried before. If I hadn't found Pineapple Express I would still be grabbing off joe blow black market.
- marcmac1988; April 28, 2019 (Source: CCRB.ca)
8/24
B2B STRATEGY: CANNABIS DISTRIBUTION CHANNELS
9/24
All LPs are mandated and audited to the production and distribution
of Cannabis processes dictated by Health Canada
No LPs have all the required supply chain processes in their own
facilities
Testing is completed by a Health Canada approved testing
facility for 100% of Canadian LPs
Irradiation is used by 80% of LPs in Canada to sterilize their
products
Secure and compliant distribution required for all
We have identified the following distribution channels that require
compliant, secure, price effective, and fast deliveries
LP to testing facilities (pre-cultivation)
LP to Irradiation (post-cultivation)
LP to testing lab (post-cultivation)
LP to Processor
LP to LP
LP to OCS
LP to Retailer (provincial regulatory requirements apply)
Distribution Centre to Retailer
CANADIAN CANNABIS LICENSES
230 Cannabis Licensed Holders in Canada with at least 1 license
478 Total Cannabis Licenses
624 Retail Locations Across Canada10/24
LH: 17
RL: 21
LH: 104
RL: 25
LH: 2
RL: 25
LH: 9
RL: 13
LH: 2
RL: 4LH: 6
RL: 20
LH: 9
RL: 32
LH: 2
RL: 26
LH: 26
RL: 288LH: 53
RL: 120
= PED Delivery Locations
B2B REVENUE & VOLUMES - As of September 26th, 2019
11/24
B2B ad hoc began in January 2019
Implemented B2B strategy in May 2019
Purchased regular sprinters
Purchased armoured sprinters
Increased B2B workforce
Since May 2019, 111 B2B deliveries have
been completed
100% On Time Delivery Success Rate
80% of clients are repeat (20% are ad
hoc)
Signed GSM agreement in September 2019
INTERPROVINCIAL DELIVERIES
Strategic Partnership with
GTA, GSM & Green Shield Logistics
enables
Interprovincial Deliveries across Canada…
and ALL OVER THE WORLD!
Insured end-to-end travel for
your all your products
Documented Chain of Custody
for every leg of the journey
Real-Time Tracking for ALL
packages
12/24
PED & GSM: Projections 2019-2020
13/24
GSM Facts:
Year 1 in Cannabis B2B
Within the 1st month of our formal contract, we are capturing 32.9% of
GSM’s monthly cannabis shipment volumes
On average, 30% of shipments are non-guarded, ground deliveries that
require same-day or next day shipping
Projecting a conservative 35% GM increase in B2B revenue monthly with
GSM contract alone
GSM’s YTD Results:
9100 shipments from Oct 2018-September 2019
44.5M grams
7M gross revenue
PED Assumptions (Based on GSM’s YTD Results)
Expected Gross Margin of 35% based on success of current B2B Strategy,
including GSM
GSM Contract represents 20% of our overall revenue in September 2019, the
1st month of our formal contract
While not shown, it is safe to assume volumes will increase dramatically
beyond the scope of projected revenue, as both PED & GSM will
independently execute aggressive Business Development strategies in Year 2
Targeting to become delivery company of choice for all of the provincial
organizations which manage distribution of cannabis
Currently delivering for LPs in Ontario, Manitoba, and Saskatchewan
- In the process of obtaining federal medical sales licenses and setting up distribution
centres in key cities to allow storage of inventory for LPs to expand client base,
increase efficiency and reduce delivery cost
Currently delivering for retail locations in Manitoba & Saskatchewan, and will expand
as other provinces allow for delivery of cannabis from retail locations
Have partnered with an American organization to set up a join venture using
CannDeliv Technology with distribution in California, Nevada, and Oregon in 2020 –
Ability to use CannDeliv Technology to partner with other operators in other States
Currently delivery for a number of LPs in BC, Saskatchewan, Manitoba, and Ontario
that require moving products at varying stages of supply-chain from one location to
another. Agreement with GTA, GSM, and Green Shield to enable interprovincial
deliveries across Canada.
Delivery of Medicinal Cannabis for LPs
Business to Business
US Expansion Opportunities
Delivery of Recreational Cannabis
Provincial Service Provider
KEY GROWTH STRATEGIES AND REVENUE DRIVERS
14/24
Major City Centres are our focus for Same-Day delivery
Remote LPs & Retailers will benefit from B2B deliveries
WHERE WE CURRENTLY OPERATE
GTA: Same-Day & B2B
Winnipeg: Same-Day & B2B
Saskatoon/Warmen/Martensville: Same-Day & B2B
Regina/Moosejaw: Same-Day & B2B
BC: B2B
Q4 - St John’s, NFLD: Same-Day & B2B
Q4 - Moncton/Fredericton/St John: Same-Day & B2B
Delivering Now
Great relationships with each provincial board!
London – Leamington – Chatham
Delivering NOW! 15/24
FINANCIAL INFORMATION
2,657
53,273
693,217
1,062,708
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
2018 2019 2020 2021
Number of deliveries
70,914
1,046,539
13,981,677
20,439,903
-612,624 -2,962,779
169,385
1,920,820
-5,000,000
0
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
2018 2019 2020 2021
Financial Forecast
Total Revenue EBITDA
Launch
Oct
2018
16/24
CAPITAL STRUCTURE
Shares(1) 25,598,572
Warrants 2,200,000
Stock Options 1,550,000
Total 29,348,572
Financing Round Shares Terms
Founders 20,227,977
Namaste Subscription 3,570,595 Purchased 15% of company at for $1M at $0.28 per share
CannDeliv Vendin 200,000 Acquisition of 100% of shares of Canndeliv
Namaste Purchase 8,089,977Namaste bought out former founding partners of Pineapple for
approx. $0.375 per share.
Financing 1,600,000 Raised $800k at $0.50 per share, with a $0.50 warrant
(1) Historical Financings
17/24
Driving
Excellence in
Same-Day &
B2B Delivery
Market leader in
same-day delivery
Proprietary
industry leading
technology
Partnered with
top brands in
industry
Experienced Team
to Execute
B2B Opportunities
Significant market
expansion
opportunities with
need for
improved logistics
Necessary service
with limited
qualified
competition
GROWTH & SUMMARY
OCS Same-Day
RFP: Q2 2019
BCCS Same-Day
RFP: Q2 2019
Operating in BC as
of March 2019
Operating in SK as
of April 2019
Software Licensing
and Franchise
US, International
Expansion
18/24
TECHNOLOGY PARTNERS
19/24
SAME-DAY CLIENTS
20/24
B2B CLIENTS
21/24