IPO Targeted Vertical Hemp Investmentfastballcapitalgroup.com/wp-content/uploads/2019/12/IPO... ·...

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- Farm Specs & Projections - Expectations & Revenues - Capacity & Relationships - Executives & Organization - Divisions & Investment - Use of Funds & Contact IPO Targeted Vertical Hemp Investment

Transcript of IPO Targeted Vertical Hemp Investmentfastballcapitalgroup.com/wp-content/uploads/2019/12/IPO... ·...

Page 1: IPO Targeted Vertical Hemp Investmentfastballcapitalgroup.com/wp-content/uploads/2019/12/IPO... · 2019-12-30 · HempCrete, Pet Food, Fibers/Cloth, Oils, Plastics, BioFuel. Executive

- Farm Specs & Projections - Expectations & Revenues- Capacity & Relationships- Executives & Organization- Divisions & Investment- Use of Funds & Contact

IPO Targeted Vertical Hemp Investment

Page 2: IPO Targeted Vertical Hemp Investmentfastballcapitalgroup.com/wp-content/uploads/2019/12/IPO... · 2019-12-30 · HempCrete, Pet Food, Fibers/Cloth, Oils, Plastics, BioFuel. Executive

Specs: Farm & Distribution Information- Located near Greeley, Colorado

Cultivation 160 acre farm

16 water sheds

15,000 sqft storage

5,000 sqft kitchen

Fully vertical capacity

Decades of Experience

Additional acres available

Full Team Available 140+ Full Time Employees

200+ Part Time Employees

Manufacturing Cartridge, Tablets, Topicals.

Tinctures, Mixes, Gummies, More

White Label / JV Capacity With Partnership Investment

Distribution 10 Test Dispensary locations in CO.

Previous Placement Relationships: Walmart, Walgreens, CVS, Casey’s

HyVee, Kum & Go, Fareway

HBA & OTC Homeopathic Focus.

Page 3: IPO Targeted Vertical Hemp Investmentfastballcapitalgroup.com/wp-content/uploads/2019/12/IPO... · 2019-12-30 · HempCrete, Pet Food, Fibers/Cloth, Oils, Plastics, BioFuel. Executive

Projections: Future Values in Hemp- Based on projected market rates.

2020 Raw Goods: 630 Acres of Cultivation

High Grade CBD Hemp

1,500,000+ lbs of Raw Hemp

$30M++ Raw Goods Revenue

Isolate: In house production & white label

In house tolling process

50k+ KG of pure isolate

$125M+ Projected Revenue

Page 4: IPO Targeted Vertical Hemp Investmentfastballcapitalgroup.com/wp-content/uploads/2019/12/IPO... · 2019-12-30 · HempCrete, Pet Food, Fibers/Cloth, Oils, Plastics, BioFuel. Executive

Acre Cultivation ExpectationsBased on historical success, strain awards, & previous cultivation experience successes.

Acr

eage

Set

up• 4800 plants /

acre

• Raised beds & custom fertilizer

• Plastic mulch & supports

• 3’x3’x6’ high plants Pr

oduc

tion

Spec

s • ½+ lb flower / plant

• Extractable biomass

• Avg 2400lb / acre biomass

• Highly valuable biomass Iso

late

Ext

ract

ion • 18-22% CBD

ratio

• 20-25 lbs of biomass/ kg

• 80-100 kg of isolate / acre

• $150,000+ gross goods / acre

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Projected Revenue Models

Revenue Notes: All Values Are Forward Looking, All Investments Carry Risk.

- Isolate pricing is $2,000/ kg. - Current tested grow results:

- Isolate pricing drop projected. - 4800 plants / acre.

- No distribution / partnership value added. - ½ lb Extractable biomass / plant

- No consumer goods & retail revenue added. - 18-22% CBD strain. Sub .3% THC.

Pre-Raise FY01 FY02 FY03Acres 5 630 1000 1500Biomass LBs 12,000 1,500,000 2,400,000 3,500,000Isolate KGs 500 65,000 110,000 160,000Pricing $2,000 $1,800 $1,750 $1,700Gross Revenue $1M $117M $190M $272M

IPO Review IPO @ 8-10xNet Ratio 40% 40% 40% 40%Net Revenue $400k $46M $76M $108M

Page 6: IPO Targeted Vertical Hemp Investmentfastballcapitalgroup.com/wp-content/uploads/2019/12/IPO... · 2019-12-30 · HempCrete, Pet Food, Fibers/Cloth, Oils, Plastics, BioFuel. Executive

Current Manufacturing CapacityBased on 10+ years of Extraction & Manufacturing, 10 dispensary test markets.

Formulations Already Developed: Lotions / Roll-ons / Creams / Oils

Teas / Lemonades / Sport Drinks

Water / Soluble Drink Mixes

Candies / Gummies

Bath Scrubs / Salts

Vape Cartridges

Tinctures / Pills

Toothpicks

Phase I Products: Creams / Lotions / Roll-ons

Bath Scrubs / Salts

Vapes

Phase II Products: Water / Drink Mixes / Lemonade

Candies / Gummies / Lozenges

Tinctures / Oils

Sports Drinks

Toothpicks

Page 7: IPO Targeted Vertical Hemp Investmentfastballcapitalgroup.com/wp-content/uploads/2019/12/IPO... · 2019-12-30 · HempCrete, Pet Food, Fibers/Cloth, Oils, Plastics, BioFuel. Executive

Active & Target Retail RelationshipsExecutive relationships & current placement capacity along with future expansion targets.

With 10 stores in Colorado, Nature’s Herbs and Wellness will be our initial test market for all CBD related releases. With in-house ownership of NH&W, there is no need for placement contracts. We will simply be placing new formulations regularly once approvals are obtained.

Having current retail relationships already established with these retailers selling various Homeopathic & OTC Healthcare products, these stores provide a natural next step for product distribution.

A new product will require a ramp up process, but these chains are open to & have taken meetings with our team.

Once products are approved, test runs in each retailer will be executed in various national markets.

With a plan to go nationwide, and eventually international, our natural next steps are travel spaces, online and direct.

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Potential Partnership Models:

Vertical Cultivation 1 ACRE / 200 SQFT

SxSW Tech Winner

Low Employee $

Multiple Turns

Year Round Production

~$8-10M /Year

Container Seeds 40’ CUBES

Cloning & Seeds

Sub $.10 / seed

Multiple Turns

Year-Round Production

~$1M /Year /CUBE

White Labeling 1M UNITS / Order

20+ SKUs

All Costs Included

Multiple Formulations

Asia Exports

~$20M /Year

Carbon Negative Offtakes: HempCrete, Pet Food, Fibers/Cloth, Oils, Plastics, BioFuel.

Page 9: IPO Targeted Vertical Hemp Investmentfastballcapitalgroup.com/wp-content/uploads/2019/12/IPO... · 2019-12-30 · HempCrete, Pet Food, Fibers/Cloth, Oils, Plastics, BioFuel. Executive

Executive Team Members- A seasoned team on all fronts with full time representation.

John Rotherham – Full time. Owner, Nature’s Herbs & Wellness

23 Operational Locations

10+ yrs legal industry experience

Full cultivation/extraction team

Multiple white label contracts

Allen Stoye – Full time. BC/BE Anesthesiologist

20 yrs of pain medicine practice

Multi state canna-management

Multi state operational COO

Matthew Jennings – Financial Mgmt. Series 7 & 66 Licensed

20+ yrs of Finance Experience

9+ Figure Financial Modeling

National Performance Awards

US Air Force Pararescue

Scott Noerr – Full time. 10+ yrs of CEO/CFO experience

15+ yrs of sales & distribution work

4+ yrs of M&A consultant.

Nationwide logistics capacity

Page 10: IPO Targeted Vertical Hemp Investmentfastballcapitalgroup.com/wp-content/uploads/2019/12/IPO... · 2019-12-30 · HempCrete, Pet Food, Fibers/Cloth, Oils, Plastics, BioFuel. Executive

Operational DivisionsTeam members and partners for operations.

Cultivation & Acquisitions

Lead Grower

Nature’s Herb’s & Wellness

10+ years of THC & CBD farm grow ops experience with a

focus on award wining high CBD

strains.

Extraction & Manufacturing

Formulations Lead

Nature’s Herbs and Wellness

PhD from John’s Hopkins and 10+

years of pharmacy grade experience focused on white

label formulations & mfg excellence for

THC & CBD branded products.

National Sales Division

Owner

Nutritional Alliance

30+ years of historical placements with multiple national

retailers focusing on HBA and nutritional

items.

Marketing Division

FDA Review Compliance

President

Tier 3 Media

20+ years of marketing, product

design and development for

Fortune 100 companies, startups,

and non-profits.

Consultant

FDA Consultant & Uni. Professor

10+ years of bio science and

innovation consultant work with Fortune 500, startup, and publicly traded

companies.

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Investment & Capital Needs- Already Placed: $3.5M – land & equipment.- Additional Raised: $1.5M for expansions.

Full Raise = $12M for 30% 10% Guaranteed Return FY01. Conversion to Common Stock in FY02.

FY02 - Isolate Gross Projections are ~$190M. Net Assumes 50% Isolate sales, 50% product manufacturing.

FY03 - Isolate Gross Projections are ~$272M. Assume operational, but not fully developed sales and distribution model.

Net Assumes 50% Isolate sales, 50% product manufacturing.

FY03 & 4 - Partnerships, Expansion Opportunities & IPO Future 1000+ Acres in Colorado. - Partnerships in development.

1000+ Acres in Florida. - Land already available.

2000+ Acres in Iowa. - License hub / spokes in development.

1000+ Acres in Pennsylvania. – Equity / lease splits created.

IPO Evaluation & Market Exit

Page 12: IPO Targeted Vertical Hemp Investmentfastballcapitalgroup.com/wp-content/uploads/2019/12/IPO... · 2019-12-30 · HempCrete, Pet Food, Fibers/Cloth, Oils, Plastics, BioFuel. Executive

Detailed Use of FundsBased on a $12M raise for 30% venture ownership.

Farm Investments: $2,500,000 Acreage - $1,300,000

Equipment- $1,200,000

Manufacturing: $700,000 Extraction ~$350,000

Formulation ~$350,000

Container Operations: $500,000

Vertical Partnership: $2,500,000

White Label Build Out: $2,000,000

Catch Up / Misc: $200,000

Safety Testing: $1,000,000 Approvals - ~$350,000

Labeling - ~$250,000

Testing - ~$400,000

Marketing: $600,000 Design / Dev ~$300,000

Sales Team ~$300,000

Escrow & Fees: $2,000,000 10% ROI ~$1,200,000

House Fee ~$800,000

These numbers include equipment, design and development work, marketing, testing, approval, and additional employee acquisitions and salary expectations for a full 2 year budget to be 100% debt free and profit producing by FY02. For full estimates and projections review the documented proforma in the offering.

Page 13: IPO Targeted Vertical Hemp Investmentfastballcapitalgroup.com/wp-content/uploads/2019/12/IPO... · 2019-12-30 · HempCrete, Pet Food, Fibers/Cloth, Oils, Plastics, BioFuel. Executive

Contact Information

717-437-0437

[email protected]

www.FastBallCapitalGroup.com