namaste technologies inc. corporate presentation
TRANSCRIPT
NAMASTE TECHNOLOGIES INCInvestor Presentation, January 2017
Canada CSE: N I Germany FSE: M5BQ
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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
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
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
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
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
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%.
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.
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
• 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]