Investor Deck MAY 2019
Marketing Strategy & Implementation
Project / Vision
Production & Sales Forecast
Products & Services
Team/Management Investment Highlights
Introduction BioCan Sciences “BioCan” is a designer,
manufacturer, distributor, and retailer of hemp
INDUSTRY Experts project that CBD products
derived CBD products.
market will have a compound annual
BioCan is dedicated to growing hemp, then
growth rate of 39% from 2017 through
extracting and reﬁning the crude oil into a highly
puriﬁed concentrate using proprietary extraction
and distillation processes.
Own and operate hemp cultivation
BioCan is dedicated to producing and selling
and CBD extraction / manufacturing
premium oil, vape cartridges and disposable pods,
facilities in New York utilizing cutting
tinctures, capsules, and topicals to service the
edge and proprietary extraction.
exploding CBD infused products industry.
PRODUCTS Produce and sell the highest-quality CBD products through wholesale and online transactions.
From a total investment of $10 million, Company is expected to generate $30 million in gross revenues with pre-tax income of $9.3 million (31%) in Year 1, its ďŹ rst full year of operations. Revenues are expected to grow to nearly $80 million in Year 2, with pre-tax income of $32 million (40%).
To grow one of the best hemp plants and produce high-quality CBD concentrates and infused products
Main Goals: ● Partner with farmers and hemp cultivation and CBD oil extraction / manufacturing facilities in New York. ● To build a recognizable brand in a rapidly growing industry. ● To be fully compliant with all state and local municipalities. ● To have the BioCan brand become a trusted household name nationally for high quality CBD products. ● To align ourselves with investors and partners who share our values.
Getting the State Cultivation and Processing licenses
Processing the hemp in a clean and compliant laboratory
Partner with hemp
Lookout for ways to improve
cultivation and GMP
our processes and maximize
manufacturing facilities in the
our returns on the hemp
state of New York.
plants we use
Net annual income to support operational expenses
Become proﬁtable by the end of the ﬁrst year of operations
Monthly sales and capacity
Maintaining a nimble operational structure
and cultivation strong relationships with
throughout the ﬁrst year.
wholesalers and retailers that will allow it to quickly respond to shifting customer needs
Products & Services
Product & Services
Company will have the
BioCan will produce
Company intends to
ability to grow up to
distribute CBD products
68,673 plants from
through wholesale and
seedling to ďŹ nished product in Year 1.
Products Revenue Structure We will strive to provide our clientele with both high-end and affordable hemp-derived CBD products. We want to build a brand that our customers will count on for professionalism, consistency, quality, and innovation. % of Revenue by Product Category: Concentrates / Tinctures Beverages, Vape & Soft Gels Topicals & Accessories
Revenue 35% 55% 10%
Existing Product Line
● BioCan currently offers multiple lines of hemp derived CBD products including HempLucid and Funky Farms ● Our product lines consists of water soluble liquids, MCT oils, hemp seed oils, vape / drips, concentrates, body butters / lotions, edibles, and soft gels ● Existing agreements with suppliers do not limit BioCan from selling other brands or products
2018 Farm Bill ✔ The 2018 Farm Bill defines hemp as the plant Cannabis sativa L. and any part of the plant with a delta-9 THC concentration of not more than 0.3 percent by dry weight. ✔ The 2018 Farm Bill removes hemp from the Controlled Substances Act, paving the way for the wholly legal cultivation, possession, sale and distribution of the hemp plant. ✔ The 2018 Farm Bill delegates to states and Indian tribes the broad authority to regulate and limit the production and sale of hemp and hemp products within their borders. States and Indian tribes cannot, however, limit the transportation or shipment of hemp and hemp products through their respective jurisdictions. ✔ CBD products produced from industrial hemp are no longer considered Schedule I substances, CBD products that come from marijuana plants with more than 0.3 percent THC are still federally illegal.
Hemp & CBD Legalization
17 ✔ In September, 2018, DEA announced that certain drug products that have been approved by FDA and which contain CBD will be considered Schedule V drugs. ✔ In December 2018, President Trump signed the bill into law making hemp legal for the ﬁrst time since the 1930s and allowing it to be grown,
States with enacted hemp legislation
processed, and sold as an agricultural commodity. ✔ The farm bill completely removes from the drug schedule all hemp plants and derivatives with much higher THC levels, 0.3%.
41 states enacted the bill
78,176 acres of hemp
Overall hemp acreage reached 78,176 in 2018 recording a tripling of land under hemp from 25,713 in 2017, with the total number of hemp growing states up to 23 from 19 states, according to the American hemp advocacy group Vote Hemp. The total number of hemp licenses more than doubled, from 1,456 in 2017 to 3,546 in 2018. More universities also got involved with hemp research.
Hemp Market 18.4%
According to the Global State of Hemp Report, the hemp industry is expected to grow with a combined annual growth rate (CAGR) of 18.4% from 2018-2022 to become a $2.5-billion industry.
CBD Market Following passage of the 2018 Farm Bill, CBD producers will have much greater incentive to use hemp as their primary source for CBD ✔ The U.S. market for CBD products hit $291 million in 2017 – including both hemp and marijuana-derived sources – while the hemp CBD market has reached an estimated retail value of $145 million. In 2018, hemp-derived CBD products sales accounted for about $390 million. ✔ Hemp legalization and new methods of CBD oil extraction with a growing number of various CBD infused products available in mainstream markets will lead to an increase in consumer spending on CBD products. ✔ New Frontier Data estimates hemp-derived CBD market to reach $1.3 billion in 2022, representing a 27.2% 5-year CAGR. ✔ Brightﬁeld Group analysts forecast that the total legal market for CBD can be worth more than $20 billion.
Strengths S O
In New York State the weather conditions are ideal for cultivating hemp outside. BioCan Cultivation and manufacturing partners are seasoned and experienced hemp cultivators, and manufacturers for over 30 years with extensive industry knowledge.
WEAKNESSES Enhanced risk of banking / ďŹ nancial / IRS scrutiny Crop loss possibility due to pests, heat, human error, etc. Lack in professional workforce for a Hemp/CBD industry High starting capital
W T Threats
OPPORTUNITIES High growth industry Hemp and hemp-derived products legalization Growing interest and demand for natural, alternative medicine Trend toward greater legalization THREATS Possible hemp/CBD law changing Testing requirements Indicators of a slowed global economy Large companies entering the market
Marketing Strategy & Implementation
Marketing Strategy & Positioning
Company will utilize small
BioCan will set its price very
amount production to always
ensure that consistently high-quality products are in fresh supply.
Marketing Strategy & Positioning
The management team will
We will work closely with
always be available to talk
retailers and practitioners across
with customers and potential
the state. We will establish a
customers, providing them
referral network that supports
with years of experience and
product consistency, brand
recognition, and reliable delivery.
About 7% of Americans are already using CBD products, placing the potential market capacity at $16 billion by 2025
✔ According to a new analysis by Cowen & Co, CBD products use is highest among consumers aged 18 to 34. ✔ The survey also found that liquid form (tinctures) accounted for the biggest share of the market at 44%, followed by topical forms at 26%, edible forms (capsules) at 22% and drinks at 19%. ✔ CBD users consistently ranked CBD’s lack of psychoactive effects as its best feature, comparing to the price and other factors.
26 Merchandise & Event Sponsorships BioCan branded products such as shirts, hats, grinders, cases/containers, etc. Sponsor CBD-related industry events to gain brand exposure and bring the BioCan name to the forefront of the community.
Information Kits Registration forms, brochures, and general information. They will provide information on what our products are. Brochures We will produce high-quality brochures with detailed information for each product. Direct Marketing The marketing and sales strategy of BioCan will be based on generating long-term personalized relationships.
F E D C
Website We will have a professionally-design ed website.
Social Media We will have a signiďŹ cant social media presence. Appropriate forums will be monitored daily, with dedicated staff resources to be active and knowledgeable participants. We will develop a social media content strategy which will include Twitter, Facebook, Instagram, LinkedIn and YouTube.
Production & Sales Forecast
Growing & Manufacturing Facilities The cultivation operations will take up 100 acres and will be adequate to grow up to 68,673 plants. The extraction/manufacturing premises will include extraction and distillation equipment. This facility will offer a signiďŹ cant advantage in the development and manufacture of our CBD products. We have contracted for our facilities for 1 year with options for an additional years without price increase.
Cartridge & Disposable Pod Vape Products
BioCan cartridges include 300 milligrams CBD and they are compatible with any 510-thread battery and have been tested at <0.3 THC, making them the perfect choice. BioCan also intends to offer disposable pods, pure oil, capsules / pills and tinctures. All BioCan CBD products include Laboratory Test Results in their packaging.
Year 1: Sales are expected to start conservatively the ﬁrst few months and increase steadily through the second, third and fourth quarters of the ﬁrst year of operations. Cash will be retained in the business to cover cash operating needs as well as future expansion to meet the demands.
After the ﬁrst year of operations, it is expected that BioCan will be able to trim expenses through realizing business efﬁciencies, gaining operational experience and industry knowledge.
Vas Koutsogiannis Founder & CEO
Perry Hill Director Product Development Perry is a seasoned executive level natural product development manager with 6-years as Account Manager, Educator, R&D of product Development for Garden of Life Industries prior to its acquisition by Nestle in 2017. He was also responsible for all Northeast territory retail store relationships and educational management which included Wegmans, GNC, and Feel Rite to name a few. Under his tenure at Garden of life he was instrumental for GL’s average annual revenue growth of over 200% from 2012 - 2017. Prior to the Nestle acquisition he developed the ﬁrst prenatal probiotic line, Fit Bar, Organic Plant Protein powder. He is currently Product Development manager for Toro Development LLC, a private New York State hemp cultivator and processor which has developed proprietary GMP extraction and manufacturing processes methods for industrial hemp and its applications. His intuitive sense and knowledge of national natural market trends has been the key to his success in the quickly evolving natural products space, which is why Toro Development was one of the few approved New York State Hemp Licensees.
Vas is currently Vice President of Sales with Arise BioScience, formerly Grander Distribution, acquired by TerrAscend Jan 15, 2019. He assisted Grander in building distributor sales from its inceptional stage to over $25M run rate within 18-months. Vas is deeply involved with national distributor relationships and personally manages most of the companies largest national distributor accounts wholesaling to thousands of stores nationwide. Vas has intimate understanding and experience of the OTC cannabis market, and ability to forecast market and regulatory movements on a national and state level. His experience in capital market transactions and relationships has been instrumental in structure and acquisition of Grander. Vas is also registered principal with ACP Capital Management (Member FINRA & SIPC). He deploys 25-years of registered ﬁnancial market experience in private equity, and executive level risk advisory. Vas received a Bachelors of Science in Finance from the Stillman School of Business, Seton Hall University in 1992 and holds Series 7, 24 and 63 licenses.
Ronald P. Russo, Jr. Chief Financial Ofﬁcer Ron is the former director and CFO of Cocoanut Row Capital. He has been an active member of the private equity and investment banking communities for over 26-years with key roles in brokerage operations and management, as well as strategic consulting and investment banking for emerging growth companies. Prior to CRC Ronald ws a principal advisor to Silicon Alley Capital Management, a family ofﬁce where he advised on funding and actively managed several technology companies. Prior to SACM, Ronald was a FINRA registered Financial Operations Principal with Series 7, 24, 27 and 63 licenses. He received a Bachelor of Science, Business Administration, St. John’s University 1993.
Company Organization Directors
Admin and Logistics Personnel
Senior Operational Management
Series A Capital
$ 10,000,000 The cost to expand our company
Series A Assets & Use of Funds Start-Up Costs
Use of Funds ﬁrst 12 Months
Feminized seed plants
Payment for growers
Administrative / Sales Cost
Direct costs, cultivation, processing, & manufacturing Direct costs, marketing, sales and fulﬁllment Operating expenses, ﬁrst 12 months
Reserves and R&D
Direct costs marketing, sales, and fulﬁllment
Total Use of Funds
$150,000 $3,872,524 $1,500,000 $1,300,000 $300,000
Projected Financials YEAR 1 Gross Revenues
% OF REV
YEAR 2 $80,000,000
% OF REV 266.67% Yearly Revenue Growth %
Cost of Goods Sold
Operating Cash Flow
Gross Proﬁt Gross Proﬁt % of Revenues
● Currently generating revenues in excess of $400,000 per-month ● Explosive quarter over quarter top line revenue growth ● Healthy gross margins with room for improvement
38 Forward Looking Statements 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.
Contact Details Vas Koutsogiannis +1 917 776 9169 | email@example.com
Copyright Copyright© 2019. BioCan Sciences, Inc. All rights reserved. The information in this document is the property of BioCan Sciences. Reproduction or transcription by any means, in whole or in part, without the prior written consent of BioCan Sciences is prohibited. This document is private and conﬁdential and is for informational purposes only. If the reader of this document is not the intended recipient, you are hereby notiﬁed that any dissemination, distribution, copying, or use of this document is strictly
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HEMP VENTURES, LLC Investor Deck / MAY 2019
Vape Pens Herbal, Oil & Wax Vaporizers
Designer, manufacturer, distributor, and retailer of hemp derived CBD products
Calming CBD Dog Treats Made with 100% Pure CBD Oil
Current Seed Round
KEY INVESTMENT MERITS Founder & CEO Product Category Personel # of Shares Authorized # of Shares Outstanding # of Shareholders
Vas Koutsogiannis CBD Products 4 25 m 1m 4
Current Seed Round $
# of Shares to be Sold
Price Per- Share % to be Sold Post Money Valuation Structure Use of Funds
$0.50 16.67% $600,000 Reg CF Legal and Marketing for Series A Round