SSENTIALS
DISTRIBUTION
INC.
HempSSentials™
Carefully Curated All-Natural Tobacco Free Hemp Cigarettes for a Modern Lifestyle.
FORWARD LOOKING
STATEMENTS
This Presentation also future-oriented financial information and financial outlook information (collectively, “FOFI”) within the meaning of applicable securities laws, including but not limited to estimated revenues, EBITDA, sales, net sales, cost of sales and gross profit. The FOFI has been prepared by HempSSentials™ Therapeutics management, also known as “HempSSentials™”, to provide an outlook of “HempSSentials™” activities, including on the assumption of the completion of the Financing. Readers are cautioned that reliance on such information may not be appropriate for other purposes. The FOFI has been prepared based on the same assumptions, risk factors, limitations and qualifications as set forth in the above paragraphs and elsewhere specifically in this presentation, as well as assumptions with respect to the costs and expenditures to be incurred by “HempSSentials™”, product development, capital equipment and operating costs, industry trends, foreign exchange rates, and general and administrative expenses. Management does not have firm commitments
for all of the costs, expenditures, prices or other financial assumptions used to prepare the FOFI or assurance that such operating results will be achieved and, accordingly, the complete financial effects of all of those costs, expenditures, prices and operating results are not objectively determinable. The actual results of operations of “HempSSentials™” and the resulting financial results will likely vary from the amounts set forth in the analysis presented in this Presentation, and such variation may be material. “HempSSentials™” and its management believe that the FOFI has been prepared on a reasonable basis, reflecting the best estimates and judgments, and represent, to the best of management’s knowledge and opinion, “HempSSentials™” expected expenditures and results of operations. However, because this information is highly subjective and subject to numerous risks, including the risks discussed above, it should not be relied upon as necessarily indicative of future results. Readers are cautioned not to place undue reliance on the FOFI or financial outlook contained in this presentation.
OUR
BRAND
Carefully Curated, All-Natural, Tobacco Free, Hemp Cigarettes
HEMP
CIGARETTES
YOU CAN
FEEL GOOD
ABOUT
HempSSentials™ was developed to provide traditional tobacco smokers with the tobacco flavour, scent, and ritual of smoking, without nicotine and tobacco.
HempSSentials™ hemp cigarettes maintain the user experience with no tobacco content allowing HempSSentials™ to be competitively priced and positioned.
FACTS
Global Market
The global tobacco market was USD $888 billion in 2018, and with one of six people worldwide using tobacco, it is forecasted to have a CAGR of 4% through 2024.
Good Valuation
The U.S. tobacco market was valued at over USD $100 billion in 2016 In volume terms.
Demand
Over 215 billion cigarettes were sold to 34 million adults in the U.S. in 2018, equating to almost 14% of the population purchased. Of those, almost two-thirds smoked more than 15 cigarettes a day.
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TERMS OF
THE OFFER
-
Issuer
Ssentials Distribution Inc. (“Ssentials” or the “Company”) -
Amount
$2,500,000.00 -
Offering
5,000,00 units (the “Offered” units) of the company. Each offered Unit consists of one common share of the Company and one common share purchase under warrant of the Company (a “Warrant”) Each warrant entitles the holder to purchase one common share of the Company at an exercise price of $1.00 for a period of 12 months. -
Issue Price
$0.50 per unit -
Use of Proceeds
Corporate and general working capital purposes -
Closing Date
TBA
WHY HEMP CIGARETTES?
- By 2025, Nielsen expects the smokable- hemp market to reach $300 million to $400 million. The 2020 market is approx. $70-$80M, according to Nielsen.
- 24% of traditional smokers have used it to help quit smoking*.
- 41% of quitters have entirely replaced tobacco with hemp CBD*.
- 50%+ Margins on all products.
*Brightfield Group survey of more than 5,000 CBD users in the U.S.
WHY HempSSentials™?
- HempSSentials™ intends to launch HempSSentials™ Hemp Cigarettes in the United States in early-Q2 2021.
- Finalized a market-ready focus group tested HempSSentials™ Hemp Cigarette product for the US consumer.
- Procured low-cost redundant commercial-scale manufacturing with key partner(s).
- A carefully curated selection of American states for initial entry.
- Partnering with vital retail banners for distribution.
- Ensuring resources to support sales in each geography.
PRODUCT FEATURES
- Slow Burning
- Plant-Based Filter
- All-Natural Hemp Paper
- Hemp Packaging
- High-grade Hemp Flower
- 20 Hemp Cigarettes Per Pack
- 100% Biodegradable
- 10 Packs Per Carton
PRODUCT SPECIFICATIONS
Tobacco and Nicotine Free
All-Natural Hemp Flower
Available in Original, Menthol and CBG Select
Made in the USA
Lab Tested
Innovative
CBG Select (10% CBG)
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RETAIL MARKETING
Every authorized retailer will receive in-store signage, such as the above
KIP BRENNAN
This Presentation also future-oriented financial information and financial outlook information (collectively, “FOFI”) within the meaning of applicable securities laws, including but not limited to estimated revenues, EBITDA, sales, net sales, cost of sales and gross profit. The FOFI has been prepared by HempSSentials™ Therapeutics management, also known as “HempSSentials™”, to provide an outlook of “HempSSentials™” activities, including on the assumption of the completion of the Financing. Readers are cautioned that reliance on such information may not be appropriate for other purposes. The FOFI has been prepared based on the same assumptions, risk factors, limitations and qualifications as set forth in the above paragraphs and elsewhere specifically in this presentation, as well as assumptions with respect to the costs and expenditures to be incurred by “HempSSentials™”, product development, capital equipment and operating costs, industry trends, foreign exchange rates, and general and administrative expenses. Management does not have firm commitments
SHANE LOWRY
With over 20 years of experience in both the private and public capital market sectors, Shane Lowry has participated in every aspect of business development. From nurturing startups, to facilitating large corporate mergers and acquisitions, to acting as the majority financier of various successful enterprises, Mr. Lowry has a uniquely overarching perspective. Shane has served on various boards within both the Canadian and American corporate climate as Executive Director, and has also held the position of CEO for a multitude of companies. In this capacity, he has been instrumental in bringing several companies to Public Offering. A strong background in business development and marketing has allowed Mr. Lowry the ability to nurture and grow each company he has had involvement with to their greatest potential. His diverse skill set and vast network continue to serve him well, as he builds this dynamic new company.
KA KHOON TAN
Extensive experience in assurance and audit for large finanical institutions icnluding Sun Life Financial (TSE: SLF) and multiple large priveate equity funds. He co-founded Bloomera, a licensed Producer (LP), that was sold for over 700% of the initial invested capital.
A seasoned entrepreneur with an extensive network across the Canadian and international markets as well as an early investor in Ample Organics, a SaaS company providingsale tracking software to Canadian cannabis cultivators including Aphria (TSE: APHA) and Aurora Cannabis (TSE: ACB). He is also advising another early-state company with operating licenses in Columbia, Jamaica and Greece.
GUR
JOHAL
Gurdeep Johal acts as a senior executive and advisor for numerous public and private companies. He has served on the Board of Directors on multiple listed companies on the Canadian Securities Exchange and the TSX Venture Exchange. In these capacities, Mr. Johal has led several companies through a successful listing process, leveraging his extensive experience and network, whilst facilitating institutional and private financing, and navigating regulatory and exchange reporting and compliance. Mr. Johal is also the principal of a residential development and construction company, having recently completed a 126 Single Family development. Mr. Johal received his undergraduate degree from the University of British Columbia.
FRANCISCO CARASQUERO
For twenty-five years Francisco has been providing strategic corporate and compliance services to publicly and privately held early-stage corporations. He brings extensive experience in structuring the acquisition and sale of business operations, strategic business alliances, mergers and acquisitions.
He is the Co-Founder of www.FintechWerx.com, a payment services technology company and the Executive Director of ETC3 Holdings LTD. www.ETC3.ca, a for-profit innovation centre for emerging technologies leveraging international connections between industry, government and academia.