1
CSE:BOSS OTCQB:BOSQF Frankfurt:YG3
BRINGING CANNABIS TO THE LUXURY WELLNESS MARKET
OWNER OF
BRINGING CANNABIS TO THE LUXURY WELLNESS MARKET CSE:BOSS - - PowerPoint PPT Presentation
BRINGING CANNABIS TO THE LUXURY WELLNESS MARKET CSE:BOSS OTCQB:BOSQF Frankfurt:YG3 OWNER OF 1 Disclaimer Forward looking information Market data disclaimer This presentation contains "forward looking information" within the
1
CSE:BOSS OTCQB:BOSQF Frankfurt:YG3
OWNER OF
This presentation contains "forward looking information" within the meaning of applicable Canadian securities legislation. Wherever possible, words such as "plans", "expects", or "does not expect", "budget", "scheduled", "estimates", "forecasts", "anticipate" or "does not anticipate", "believe", "intend" and similar expressions or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved, have been used to identify forward looking information. Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of The Yield Growth Corp. to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Although The Yield Growth Corp. has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Forward looking statements are based on the reasonable assumptions, estimates, analysis and
conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances at the date that such statements are made, but which may prove to be incorrect. Management believes that the assumptions and expectations reflected in such forward looking statements are reasonable.
This presentation includes market and industry data that has been obtained from third party sources including publications from various industries, and where appropriate, certain numbers, including dollar amounts, have been rounded out by us to avoid lengthy numbers. We believe that this industry data is accurate and that its estimates and assumptions are reasonable; however, there are no assurances as to the accuracy or completeness of this data. Third party sources generally state that the information contained therein has been obtained from sources believed to be reliable; however there are no assurances as to the accuracy or completeness of included information. Although the data is believed to be reliable, we have not independently verified any of the data from third party sources referred to in this presentation or ascertained the underlying economic assumptions relied upon by such sources. 2
(BC)
Urban Juve Provisions Inc.
Thrive Activations Inc.
UJ BEVERAGES
UJ Beverages Inc.
YIELD BOTANICALS
Yield Botanicals Inc. Wright & Well Essentials Inc.
WRIGHT & WELL CBD
Wright & Well Manufacturing Inc. 3
➔ Direct to consumer sales within Canada and the US via e-commerce site ➔ Retail distribution agreements with more than 110 brick and mortar stores across North America since the beginning of 2019
➔ Licencing agreement to manufacture and distribute to 400 Oregon stores via partnership with NovaPaths
➔ Legal US retail and e-commerce distribution channel for beauty, health and wellness brands with legal hemp and CBD products for distribution throughout the United States
➔ Line of eight wellness beverage formulas to be infused with CBD and THC and one capsule product intended to treat hangovers.
➔ Proprietary patent pending extraction technology combining Ayurveda therapeutic extraction methods with modern science and commercial hemp root oil production.
➔ Provides management personnel and expertise to small and growing companies
4
Shares Outstanding: Fully Diluted Shares Outstanding: Market Capitalization: Average Volume:
5
Management/Insider Shareholdings: 2018 Revenues: Debt: IPO Financing:
— — — — — —
FINANCIAL HIGHLIGHTS Quarter Ended
Year Ended
Revenue $ 800,714 $ 3,055,442 Cash on hand $ 3,707,096 $ 36,211 Total assets $ 6,959,067 $ 2,612,345 Net assets $ 5,458,774 $ 1,329,204
6
Proven Management Team
The growing executive team has deep experience with global brands including Johnson & Johnson, Procter & Gamble, M·A·C Cosmetics, Skechers, Best Buy, Aritzia, Coca-Cola, and Pepsi Corporation.
A Growing Market for Cannabis and Hemp Wellness Products
Relaxing regulations, secure intellectual property and an intimate understanding of the luxury consumer positions Yield Growth for dominance in the market.
Diverse Revenue Streams
Revenue is driven by e-commerce sales, sales & distribution partnerships, and product licensing and services provided through various subsidiary companies.
Proprietary Formulas and Technology
Yield Growth has proprietary extraction technology for CBD and THC extraction as well as for the production of hemp root extract. It has developed or acquired over 200 high quality cannabis product formulas for edibles, topicals and beverages and has 12 patents pending.
7
➔ Global wellness market value: $4.2 trillion in 2015*. ➔ Global cannabis market value: Expected to surpass $31 billion by 2021**. ➔ US Farm Bill signed into law in December 2018 creates potential $10.6 Billion industrial hemp industry
* Global Wellness Institute “Statistics and Facts”. Summary accessible online at: https://globalwellnessinstitute.org/press-room/statistics-and-facts/ 8
Canada & International
Distribution Channels
1. Urban Juve e-commerce available internationally 2. Urban Juve retail available in Canada and the U.S. 3. Digital kiosk marketing in high traffic malls in Hong Kong 4. Digital media marketing targeting residents in LA, San Francisco, NY, Toronto, Vancouver 5. Wright & Well CBD set up for U.S. Distribution & THC product sales in Oregon, U.S.
** Deloitte. “Insights into the recreational marijuana market: Exploring opportunities and challenges” accessible
***New Frontier Data
➔ Limited direct competition in our area of focus: High-end, natural, wellness products. ➔ Chinese hemp sales totaled $1.1 billion in 2017, approaching 1/3 of the $3.1 billion global market, with sales forecasted to grow to $1.5 billion (up 36%) by 2020***
➔ Aug 01, 2018-Molson Coors Canada (NYSE: TAP; TSX: TPX) Announce Joint Venture with Hydropothecary Corporation (HEXO:TSX) ➔ August 15, 2018-Constellation Brands (STX:NYSE), a massive alcohol beverage company, announced $5 billion investment into Canopy Growth (WEED:TSX) ➔ December 7, 2018-Marlboro maker Altria Group Inc. (MO:NYSE) announced they will invest $2.4 billion in Canadian cannabis producer Cronos Group Inc (CRON:TSX)
Skincare industry poised for investment into the space
Yield Growth and its subsidiaries represent a potential turnkey opportunity for major brands, with leading edge cannabis-infused skincare products already on the market.
9
Penny Green
President, CEO & Director Yield Growth CEO, Urban Juve
mobile payments, blockchain technology, crowdsourcing, renewable energy, pharmaceuticals, e-commerce and cannabis
companies in 2015 and 2016
Rick Huang
CFO
entities, and assets transfers
Amy Frankel
VP Licensing and General Counsel
10
Thomas Bond
Director Yield Growth Chairman Urban Juve
the company was acquired by Estee Lauder (NYSE:EL)
support annual double-digit revenue growth holding C-level financial and operational positions with companies engaged in cosmetics, apparel, and construction including M.A.C Cosmetics, Cover FX Skin Care and Tridel
Sandi Lesueur
President Urban Juve
Association, Dr. Jason Rivers
artist, Derrick Rutledge
Jeff B. Smith
Chairman of Yield Growth Advisory Board
Consumer North America for Johnson & Johnson (NYSE:JNJ)
growth rates. In 2011, Jeff was appointed President, U.S. Skincare for North America and had full P&L responsibility for the Skincare portfolio within the U.S.
11
ipsy: Yield Growth has signed a marketing and sales alliance with ipsy, the world’s largest beauty community of 3 million+ monthly members, more than half a billion content views every month and relationships with more than 8,000 digital content creators, to include Urban Juve’s line of hemp based beauty products in its Glam Bag, making the products available for purchase on Shopper, ipsy’s exclusive ecommerce marketplace. China: Beginning in June, Urban Juve’s line of hemp beauty products will be available for purchase from pop-up kiosks rotating through luxury shopping malls and major locations throughout Hong Kong and through China’s most popular messaging app, WeChat, which has more than one billion monthly active users worldwide.
forecasted to grow to $1.5 billion (up 36%) by 2020*
with 2017** Brick & Mortar: In just 5 months, more than 110 brick and mortar retail locations signed on to carry the Urban Juve line of skin and body care products. Through our internal sales force we expect that number continues to grow with a goal of 1000 stores to carry our products this year. Oregon Yield Growth is preparing to ship its Wright & Well line of therapeutic products this June to our distribution partner, Nova Paths, which has a 400 store network throughout Oregon.
*New Frontier Data **National Bureau of Statistics of China
12
Creating Brands That Truly Resonate
Yield Growth is working with industry-leading partners to capture the hearts of wellness-minded
executed to turn first-time buyers into true brand advocates. ipsy Not only is Ipsy one of the most popular beauty subscription boxes in the world, it’s also a platform with global reach. Their revolutionary community aims to democratize beauty and make it accessible and affordable for everyone. Yield Growth is partnering with ipsy to place Urban Juve products in their subscription box, and deliver custom, educational content to subscribers worldwide. The Design Spot New York-based design firm The Design Spot is an award-winning agency with deep experience in skin care, hair care, doctor brands, cosmetics and fragrance brands. They will lead overall brand direction for packaging, merchandising and point-of-sale deliverables for Yield Growth subsidiaries. The team was selected for their impressive portfolio, including work for Brandt MD, L’Oreal USA, Origins, Revlon, Unilever – Dove and hundreds more. Major Tom Major Tom is a leading digital agency based in New York, Toronto and Vancouver. Their top-level strategy, implementation and technological capabilities help to humanize modern marketing, and drive strategic
creating brand awareness and driving conversions in key markets across North America. Cornerstone Strategic Branding CSB is a New York-based strategic branding firm whose clients include major international brands like Perrier, Nestle, Seagrams and Labatt. They are industry-leaders in research-based strategy—anchoring all their work in thorough market research to yield the best possible results. CSB is undertaking a complete a visual positioning study in order to create brand and packaging design for our hemp and cannabis beverage lines, which are currently in development.
13
Nova Paths LLC Nova Paths LLC is an Oregon Liquor Control Commission approved manufacturer and distributor of cannabis products throughout the state. The company is well established in Oregon, manufacturing and distributing brands like Top Hat, Pure Ratios, Majesty Cosmetics, Doctor Terpene, Happy Daze, Honu Inc. Pure Vape, Lissa’s Tasty Treats, Allay Topicals, Alto Essentials and several
agreement with Nova Paths, who will manufacture and distribute Wright & Well-branded THC and CBD-infused therapeutic products through a wide network of 400 stores in Oregon. Terms: Nova Paths will retain a fee of 25% of the wholesale revenues from sales of Wright & Well, and will pay the balance of wholesale revenue, less certain expenses.
Diversifying revenue through definitive agreements with forward-thinking companies
Blending Ayurveda-inspired wellness with modern science, Urban Juve is launching over 50 proprietary skincare and wellness products infused with Cannabis Sativa hemp root and hemp seed oil. Urban Juve sells directly to North American consumers through its e-commerce site and over 110 retailers. Canadian brick and mortar distribution has just begun in 2019 through a sales partnership. This subsidiary is already in revenues with licensing and sales revenues received and 11 products now for sale.
15
Line of cannabis sativa hemp oil infused skincare products in Canada, US and Europe
*Refer to Urban Juve™ lookbook for timely product information.
Products available world wide via e-commerce website with distribution a growing number of retail locations across North America.
e-commerce and retail sale in Nov. 2018
16
Products
17
Wright & Well branded products will be launching in the legal cannabis market in Oregon, and will serve the growing number of wellness-minded people seeking new ways to take control of their health. Sophisticated, familiar and intelligent, the new brand aims to demystify the world of cannabis and make it more accessible for a wider audience. Through a licensing agreement with Nova Paths LLC—an approved manufacturer and distributor of cannabis products licensed by the Oregon Liquor Control Commission—Wright & Well will manufacture and distribute THC- and CBD-infused topicals through a distribution network of 400 stores. As part of the agreement, Nova Paths will retain a fee of 25% of the wholesale revenues from sales of Wright & Well, and certain expenses, to Wright & Well.
18
Yield Growth Subsidiary
19
Leading the charge with CBD and THC-infused wellness
Wright & Well branded products are launching in the legal cannabis markets of Oregon and California, and will serve the growing number of wellness-minded people seeking new ways to take control of their health. Sophisticated, familiar and intelligent, the new brand aims to demystify the world of cannabis and make it more accessible for a wider audience. Through a licensing agreement with Nova Paths LLC, Wright & Well will manufacture and distribute THC- and CBD-infused topicals through a distribution network of 400
retain a fee of 25% of the wholesale revenues from sales of Wright & Well, and pay the balance of wholesale revenue, less certain expenses, to Wright & Well. Wright & Well is also preparing to launch a line of full spectrum CBD tinctures, body balm, body gel and body oil in California this summer. The Brightfield Group estimates the hemp-CBD market alone could hit $22 billion by 2022.
20
Accessing the marketplace at multiple touchpoints
Yield Growth has an inhouse sales force focused on broadening our presence in brick and mortar retail locations across North
Lesueur, we have secured distribution for Urban Juve products through more than 110 retail locations across North America, and built a state-of-the-art e-commerce site to serve customers in the US and Canada. In addition, licensing agreements and sales alliances provide even broader distribution including in Oregon and China.
20
21
Bringing the power of hemp to the subscription box market
ipsy is the world’s largest beauty community, with over three million monthly members, more than half a billion content views every month and relationships with 8,000+ digital content creators. Yield Growth has signed a consumer marketing and sales alliance with ipsy to put Urban Juve products in the company’s Glam Bag. Educational videos and product details will augment the deliveries and promotion, and ipsy social media marketing is projected to generate millions of
available for purchase on Shopper, ipsy’s exclusive e-commerce marketplace.
“The subscription e-commerce market has grown by more than 100% percent a year over the past five years, with the largest retailers generating more than $2.6B in sales in 2016, up from $57.0M in 2011…Amazon Subscribe & Save, Dollar Shave Club, Ipsy, Blue Apron and Birchbox are the five most popular subscription sites in 2018.”
22
Accessing China’s billion dollar hemp market
Chinese hemp sales totaled $1.1 billion in 2017, approaching one third of the $3.1 billion global market—and sales are forecasted to grow to $1.5 billion (up 36%) by 2020*. Online retail sales in China totaled about $1.33 trillion in 2018, an increase of 23.9% compared with 2017**. Yield Growth has signed an agreement with Pontier Services to make Urban Juve products available for sale through WeChat, China’s number one messaging platform with more than one billion monthly active users. A marketing campaign with a PopSquare kiosk will also rotate through high-traffic shopping destinations in Hong Kong beginning in June 2019.
*New Frontier Data **National Bureau of Statistics of China
23
Entering the market with an expert team
Over 110 retail locations have signed on to carry Urban Juve’s line of wellness products since the beginning of 2019, including Healthy Planet, which now has 29 locations across Canada, New stores being added each week with a goal to reach 1000 locations within the year.
Notable locations carrying Urban Juve include:
1. Vegan Supply, Healthfood stores - Vancouver and Surrey locations 2. Smoking Lily, Designer Boutiques - Vancouver and Victoria locations 3. Vita Save, Healthfood stores - Vancouver, North Vancouver and online stores 4. Yes Wellness, Healthfood store - Surrey and online store 5. Dr Kristen Bovee, Naturopathic Doctor at Hydrate IV Wellness Centre in Victoria BC 6. Market on Millstream, large Healthfood store and grocer in Victoria BC 7. Wellth Pharmacy in Toronto: full-service, compounding pharmacy + clinic located in downtown Toronto 8. Smith’s Pharmacy in Toronto: one of the largest Professional Naturopathic Dispensaries in Canada
23
24
Securing the best in business first
Every aspect of the Wright & Well brand—including its name, packaging and supporting materials—is rooted in thorough industry and consumer research. To complement the formulations, the look and feel of the brand resonates with the intended audience. Our signature “bloom box” creates a surprising experience for the first-time user, along with a special message underneath the bottle designed to
help boost sales. Our entry into the market was thoughtful and executed with intention. We laid a plan to maximize impact in the emerging market while safely working within guidelines and regulations. We are well-positioned to support expanding markets with strategic partners, including a Portland-based media group, Gold and Yashar, who have specialized knowledge of the cannabis industry. Leveraging their expertise, the team is designing omni-channel marketing assets for radio, tv and digital channels that are tailored specifically for the Oregon market. In addition, Yield Growth will host a launch event in Portland with brand ambassadors.
25
Cosmetics and Wellness Products Infused with CBD
Wright & Well Manufacturing is a retail and e-commerce sales distribution channel established for legal cannabis beauty, health and wellness products throughout the US. Based on our proprietary method for hemp root oil extraction, Wright & Well offers consumer skincare and wellness products infused with CBD. All Wright & Well products are formulated by an Ayurvedic practitioner with three decades of experience, and rigorously tested for quality, purity and safety. The initial distribution portfolio goal is ten brands, including Yield Growth’s own Urban Juve and a Wright & Well CBD product line in
include distribution, legal analysis, marketing, B2B sales and e-commerce support for
distribution fee as a percentage of sales, plus fees for added services.
26
CBD is a phytocannabinoid—a chemical compound derived from Cannabis hemp. It has a very similar genetic makeup to tetrahydrocannabinol (THC), but is completely non-psychoactive, and won’t result in a “high.” Numerous medical studies suggest CBD could compete as the leading natural treatment for a variety of conditions. Benefits:
industrial hemp plant
Effectively treats:
27
Yield Growth Subsidiary
Thrive Activations Inc. provides management personnel, technology and marketing strategies, and business incubation services to growing companies. The brand makes leading-edge technology and growth solutions accessible to businesses and licensee partners seeking a competitive advantage. This company is in revenues and currently has two clients: HeyBryan Media and Antler Retail.
Page 1 of 2
28
Page 2 of 2
29
penny@yieldgrowth.com | M +1 604 617 7979 rick@yieldgrowth.com | M +1 778 990 3693
Penny Green
Co-Founder, President & CEO, Director
Rick Huang
Chief Financial Officer
Kristina Pillon
Investor Relations
invest@yieldgrowth.com
M +1 604 908 1695 P 1-833-514-BOSS (2677) P 1-833-515-BOSS (2677)
sandi@yieldgrowth.com | M +1 604 202 1379
Sandi Lesueur
President of Urban Juve Director of Brand Development, The Yield Growth Corp.
30
@yieldgrowth @yieldgrowth
CSE:BOSS OTCQB:BOSQF Frankfurt:YG3
Yield Growth @urbanjuve Urban Juve @urbanjuve The Yield Growth Corp.