Namaste Technologies Inc. Corporate Presentation

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NAMASTE TECHNOLOGIES INC Investor Presentation, January 2017 Canada CSE: N I Germany FSE: M5BQ

Transcript of Namaste Technologies Inc. Corporate Presentation

Page 1: Namaste Technologies Inc. Corporate Presentation

NAMASTE TECHNOLOGIES INCInvestor Presentation, January 2017

Canada CSE: N I Germany FSE: M5BQ

Page 2: Namaste Technologies Inc. Corporate Presentation

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This presentation contains forward-looking information based on current expectations. These statements should not be

read as guarantees of future performance or results. Such statements involve known and unknown risks, uncertainties and

other factors that may cause actual results, performance or achievements to be materially different from those implied by

such statements. Namaste assume no responsibility to update or revise forward-looking information to reflect new events

or circumstances unless required by law.

Although the Company believes that the expectations and assumptions on which the forward-looking statements are based

are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no

assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by

their very nature they involve inherent risks and uncertainties. These statements speak only as of the date of this

Presentation. Actual results could differ materially from those currently anticipated due to a number of factors and risks

including various risk factors discussed in the Company's disclosure documents which can be found under the Company's

profile on www.sedar.com.

This Presentation contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as

amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are

made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The CSE has neither

reviewed nor approved the contents of this Presentation.

Forward Looking Statements

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Continue to be the leading e-commerce supplier of vaporizers and accessories to the medical and recreational consumer of cannabis.

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Management & Board of Directors

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Darren Collins

EVP, Corp Dev

Kory Zelickson

COO

Phillip van den Berg

CFO

Sean Dollinger

CEO

Peter Simeon

Chairman

Sefi Dollinger

Director

Kiran Sidhu

Director

Over 14 years

of legal

experience

Specialist in

securities and

M&A

transactions

Management team and board combines financial, legal, managerial and industry expertise.

Over 15 years

e-commerce

experience

Generated

$300m+ of

online sales

internationally

Over 30 years

of finance

experience

Former

member of

Goldman

Sachs

Over 15 years

of product

development

Electrical

engineer and

product

expert

Over 10 years

transactional

experience

Expertise in

development

of growth

companies

Over 25 years

of business

management

Manager of

profitable

family

business

Over 25 years

of finance

experience

Former

member of

Merrill, PWC,

Party Gaming

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Search trend for “vape” have grown exponentially across the globe.

Google Search – Interest Over Time

0

10

20

30

40

50

60

70

80

90

100

Google searches for “vape”

are at peak interest over

last 5 years

2011 2012 2013 2014 2015 2016

“Vape” has become a common

search term globally. US is leading

the market by search

Low:

Medium:

High:

Search by Region

Global Search Trend

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Source: Google Trends

Page 6: Namaste Technologies Inc. Corporate Presentation

Regulatory changes, health considerations, and technology advancements are accelerating growth in

the vaporizers and accessories industry.

$2.0 $2.6$4.3

$5.8

$9.7

$15.8$17.8

$20.4

$22.5

2014 2015 2016 2017 2018 2019 2020 2021 2022

CAGR

35.3%

Industry Growth Projections

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All amounts in billions USD

Source: Wells Fargo

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Focused on consolidating the $400 million e-commerce segment of the industry.

Industry Segmentation

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$0.4

$1.2

$0.4

Online

VapeShops

C-Store,Mass Retail

VAPORS, TANKS,

MODS AND

PERSONAL

VAPORIZERS

E-CIGARETTES

$2.0$1.5

All amounts in billions USD

Source: Wells Fargo

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Vendors

• Suppliers of the

latest vaporizers,

pipes and

accessories.

• ~200 vendors list.

• Preferred terms and

trade credit.

Processing

• Multiple processors

currently in place

and in reserve.

• Favorable terms

including low rates

and reserves.

• Fraud detection

systems.

Fulfilment

• State of the art

inventory and e-

commerce

management systems.

• Fulfillments centers in

UK, US, Brazil and

Australia.

• Launch of

management system.

Reporting

• Implementing full

enterprise resource

planning system.

• E-commerce tracking

and optimization with

Google Analytics,

Trustpilot, MOZ,

CrazyEgg.

E-Commerce Platform

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2016 Traffic Growth

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34,664 33,227 40,479 45,599 49,673 51,775 48,103

284,680

233,183 233,779

612,875 576,846

Acquisition

Acquisition

Original platform at RTO

Grown monthly site traffic from 34,664 in January to 576,846 in December. Increase of over 1500%.

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Geographic International US US, UK

Demographic Ages 18-44 Broad focus Broad focus

Traffic 84,235 132,573 360,038

Conversion 1.9% 1.6% 0.9%

Average Ticket US$208.45 US$79.83 US$61.40

Domain www.namastevapes.com www.vaporseller.com www.everyonedoesit.com

Unique portals selling over 3,000 products. Enhancing conversion and basket price of acquisitions.

Main Domains for December

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December Traffic by Country

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Traffic from 184 countries (94% of countries!). Arguably most global company in cannabis.

373,787 68%

89,026 16%

27,652 5%

12,384 2%

7,961 1%41,439 8%

United States United Kingdom Canada Australia Brazil Other

US, UK and Canada

account for 89% of

traffic.

Ideally positioned in

key US states (e.g.

California).

Significant growth

opportunity in

Canada with LPs.

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Quarterly Profit & Loss

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Nov-14 Feb-15 May-15 Aug-15 Nov-15 Feb-16 May-16 Aug-16

Sales 1,113,967 1,270,197 1,087,256 1,096,856 1,175,341 698,331 738,199 877,031

Cost of goods sold 547,658 737,475 691,396 588,722 812,506 424,549 445,224 686,149

Gross profit 566,309 532,722 395,860 508,134 362,835 273,782 292,975 190,882

Gross Margin 50.8% 41.9% 36.4% 46.3% 30.9% 39.2% 39.7% 21.8%

Operating expenses 325,599 556,331 299,283 232,944 488,479 846,744 656,469 1,294,974

Other income - - - - - 125,137 - 113,279

Pre-tax profit 240,710 (23,609) 96,577 275,190 (125,644) (447,825) (363,494) (990,813)

Forward revenues

expanding due to

VaporSeller & URT1.

Proforma trailing 12-

months ~$12.4m.

Margins anticipated

to increase with

buying power /

optimization of

VaporSeller.

Op costs ~$200,000

monthly in steady

state. 12-month

trailing results

include ~$1.4m

non-cash / non-

recurring.

Objective to be

profitable in 2017.

Note: Audited by MNP, LLP

All amounts in CAD

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• Leading e-commerce supplier of vaporizers, pens,

bongs and accessories.

• Targeting medicinal and recreational consumers.

• Consolidator of the e-commerce segment of

industry.

• Industry growing at CAGR of 35% to 2022.

• 26 websites with local presence 20 countries.

Monthly traffic of nearly 600,000 visitors and over

250,000 name customer list.

• Proforma trailing 12 months revenues ~$12.4

million.

• Increased profits from enhanced buying power and

reduction in overhead.

• Diverse management and board backgrounds.

Investor SummaryParticipate in Cannabis Industry Roll-up

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Capitalization

Item Amount

Price $0.24

Shares (m) 113.4

Warrants (m) 24.6

Options (m) 8.4

Fully diluted (m) 146.4

Market capitalization (m) $27.2

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Canadian Office

Namaste Technologies Inc

82 Richmond Street East

Toronto, Ontario, M5C 1P1

Tel: +1 800 867 0267

Contact Information

US Office

Namaste Technologies USA Inc

5155 Corporate Way, Unit K

Jupiter, Florida, 33458

Email: [email protected]