Investor Presentationcontent.stockpr.com/cabinetgrow/db/Presentations/616/... · 2015. 6. 30. ·...
Transcript of Investor Presentationcontent.stockpr.com/cabinetgrow/db/Presentations/616/... · 2015. 6. 30. ·...
Investor
PresentationJanuary 2015
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
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
Company History
dd
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
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
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”
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.
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
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
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
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
Pro Forma Cap Table
○ 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
949-392-8695
BARRY HOLLANDER
CFO
561-249-6511
CABINET GROW, INC.
17932 Sky Park Circle
Suite F
Irvine, CA 92614
www.cabinetgrow.com
888-544-9376