Experience. Commitment. Trust.

Transcription

1 Experience. Commitment. Trust. September 25, 2018 Corporate Presentation

2 Disclaimers This presentation does not constitute an offer to sell or solicitation of an offer to buy any of the securities described herein. The sole purpose of this presentation, in paper or electronic form, is strictly for information purposes. Neither Aldershot Resources Ltd. d.b.a. Solo Growth Corp. TM ( Solo Growth or the Company ) nor any of its current or proposed directors, officers, owners, managers, partners, consultants, employees, affiliates or representatives, make any warranty or representation, whether express or implied, or assume any legal liability or responsibility for any action taken in reliance upon this presentation, or for the accuracy, completeness, or usefulness of any information disclosed, including any pro-forma financial statements included in this presentation. Forward Looking Statements. Certain information included in this presentation constitutes forward-looking information under applicable securities legislation. Forward-looking information typically contains statements with words such as will, anticipate, believe, expect, plan, intend, estimate, propose or similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information in this presentation includes, but is not limited to, statements relating to: Solo s business, strategies, expectations, planned operations or future actions, including future retail cannabis locations; the performance of the Company s business and operations; the competitive conditions of the industry in which the Company operates and the competitive advantages of the Company; and the Company s future product offerings. The forward-looking statements contained in this presentation are based on certain key expectations and assumptions made by Solo, including expectations and assumptions concerning: the availability of sufficient capital; the availability of and access to qualified personnel; Solo s ability to protect its intellectual property; the expected growth in the cannabis market; the medical benefits, viability, safety, efficacy, dosing and social acceptance of cannabis; the securities markets and the general economy; the legalization of cannabis for adult-use in Canada, including federal and provincial regulations pertaining thereto and the timing related thereof and the Company s intentions to participate in such market, if and when legalized; the legalization of the use of cannabis for medical and/or adult use in jurisdictions outside of Canada; and applicable laws not changing in a manner that is unfavorable to Solo. Although Solo 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 Solo 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. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks associated with the cannabis industry in general; actions and initiatives of federal and provincial governments and changes to government policies and the execution and impact of these actions, initiatives and policies, including the fact that adult-use cannabis is currently illegal under federal and provincial law; import/export restrictions for cannabinoid-based operations; the size of the medical-use and adult-use cannabis market; and competition from other industry participants. 2

3 Disclaimers Continued Readers are cautioned that the assumptions used in the preparation of forward-looking information, although considered reasonable at the time of preparation, may prove to be imprecise. Solo s actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and accordingly there can be no assurance that such expectations will be realized and/or what benefits Solo will derive therefrom. The forward-looking information contained in this presentation is made as of the date hereof and Solo undertakes no obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless required by applicable securities laws. The forward looking information contained in this presentation is expressly qualified by this cautionary statement. Certain information contained herein has been obtained from published sources prepared by independent industry analysts and third-party sources (including industry publications, surveys and forecasts). While such information is believed to be reliable for the purpose used herein, none of the directors, officers, owners, managers, partners, consultants, shareholders, employees, affiliates or representatives assumes any responsibility for the accuracy of such information. None of the sources cited in this presentation have consented to the inclusion of any data from their reports, nor has Solo sought their consent. FOFI Disclosure. This presentation contains future-oriented financial information and financial outlook information (collectively, FOFI ) about Solo s prospective retail locations, revenue, expenses, profit and components thereof, all of which are subject to the same assumptions, risk factors, limitations and qualifications as set forth in the above paragraphs. FOFI contained in this presentation was made as of the date of this presentation and was provided for the purpose of providing further information about Solo s anticipated future business operations. Solo disclaims any intention or obligation to update or revise any FOFI contained in this presentation, whether as a result of new information, future events or otherwise, unless required pursuant to applicable law. Readers are cautioned that the FOFI contained in this presentation should not be used for purposes other than for which it is disclosed herein. U.S. Registration. This presentation is not an offer of the securities for sale in the United States. The securities have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an exemption from registration. This presentation shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be anysale of the securities in any state in which such offer, solicitation or sale would be unlawful. 3

4 About Solo Growth Completed $25.6MM private placement (Jun ) and appointed new board & management Fully funded to open >60 retail cannabis locations across Alberta by end of 2020 In <60 days since June 28, 2018: Our Vision: To become a premiere retailer and the trusted destination for adult-use cannabis 100 locations identified, 50+ secured across >30 communities and 50 more under negotiation across Alberta 15 development permits in hand Construction underway on first 3 stores with 5 stores expected to be open by end of year 2018 Leverage real estate expertise and Solo Liquor success to become a premiere cannabis retailer End of stores End of stores Today 64 stores Exclusive agreement with Avison Young to secure >100 retail locations in Ontario working towards initial grand openings on or about April 1,

5 Management and Directors Extensive controlled substance retail experience with significant public company expertise Founding shareholders and senior officers of Solo Liquor collectively bring >50 years of controlled substance retail operations Market expertise in adult-use retail including robust customer and real estate analytics Collaborative relationships with municipalities and regulators across Alberta and landlords across Canada Board with extensive public company experience; growing high value companies with strong corporate governance Management Team Pali Bedi, President & CEO CEO of Solo Liquor; 22 years experience in the controlled substance retail market & 30 years of commercial real estate experience, including 18 at Avison Young Jasbir (Jas) Hans, VP Operations President of Solo Liquor since 1996; established 64 stores in 31 communities across Alberta Stephanie Bunch, C.A. VP Finance & CFO 25+ years industry experience; Centrica Energy (Direct Energy Marketing Limited) Seaview Energy Inc., Ketch Energy, Acclaim Energy, Canetic Resources Theo Zunich, VP Corporate Development Eight Capital; 10 years investment banking experience Sony Gill, Corporate Secretary McCarthy Tétrault LLP Board of Directors Richard McHardy Spartan Energy Corp; Spartan Oil Corp; Spartan Exploration Ron Hozjan, C.A. VP Finance & CFO of Tamarack Valley Energy Ltd. Sonny Mottahed CEO of 51 st Parallel, CEO Black Spruce Merchant Capital, CEO CBi2 Capital Michael Stark Independent Businessman James Miller President, Boarder Capital Pali Bedi 5

6 Solo Growth s Competitive Advantage Alberta Gaming & Liquor Commission ( AGLC ) sells to retailers at identical price: Profitability driven by efficient operational execution INDUSTRY RELATIONSHIPS Regulators Municipalities Landlords CAPITAL ALLOCATION Capital cost control Real estate expertise = competitive terms + location PROFIT DRIVERS OPERATIONAL EXCELLENCE Minimize direct costs Inventory management & control Competitive pricing balanced with profitability Commitment to employee training & knowledge Focus on customer experience 6

7 Responsibility Commitment to Strong Corporate Governance Supports Operational Excellence SHAREHOLDERS Corporate governance Return on investment Internal controls EMPLOYEE Inclusion & diversity Education Alignment CORPORATE PARTNERS Strategic alliances 2-way accountability Relationships CUSTOMERS Responsible use Product knowledge Experience focused on expertise, convenience, value & selection Solo Growth COMMUNITY Infrastructure Governments & neighbors Responsible use education REGULATORS Compliance Reporting Relationships Experience Commitment Trust 7

8 Real Estate Knowledge Accesses Opportunity ~4.3MM Population 2,000+ Liquor retailers 1 Ontario market has >3x the population with ~30% fewer retailers ~14.2MM Population ~1,400 Liquor retailers 2 ALBERTA ONTARIO In <60 days since June 28, 100+ locations identified 50+ retail locations secured in >30 communities 50+ additional locations under negotiation 9 development permits granted (Calgary, Edmonton, Fairview, Lloydminster, Spruce Grove, Stony Plain, Vegreville & Vermillion) Open 5 stores by end of 18 and 30 stores by end of 19 Launch 60+ retail cannabis locations in next 3 years Ontario market potential is massive and under-served Repeatable platform supports calculated expansion to new markets, initially Ontario Exclusive Avison Young arrangement to identify and secure 100+ premiere storefronts across province Targeting April 1, 2019 to have initial stores open when privately-run retail sales approved 1 Source: AGLC 2 Source: Government of Ontario 8

9 The Challenge : In t his new world e conomy, cre ate a bra nd that can sta nd out among the clutte r and sta nd the te st of time. 9

10 Discovery and exploration are a part of every human journey. It s a part of us, we are all discoverers in some way. What we re curious about, how we choose to try things even our personal tastes all affect the way we explore and discover. Some of us like to constantly discover, and chase new, while others seek familiarity, safety and a place that feels like they belong. SOLO We have an opportunity to build on trusted heritage, Evolving the trust into something new. by SOLO 10

11 Solo Growth s Retail Principles TRUST Build on existing brand recognition and trusted retailer status while establishing that same trust in the Cannabis market, and within the community. A welcoming and comfortable space in a new territory for everyone. CONVENIENCE Establish a retail footprint across Alberta that focuses on convenience for consumers, and provides a retail experience that works well in all varieties of locations, from rural towns to big city centres, in-store to online. VA LU E Offer quality product at competitive prices, as well as a comfortable and educational retail experience. SELECTION Offer a wide variety of products to provide something for everyone, for various occasions and lifestyles. STA FF Knowledgeable, engaging and trustworthy retail staff that make consumers feel welcome, provide helpful recommendations, and provide an experience that keeps consumers coming back and referring friends. 11

12 Welcome to YSS by Solo Acting as a hub for both discovery and exploration this logo takes its lead from a common language associated with destinations all over Canada. Taking our cue from trusted, directional fonts experienced in travel, we ve created a font that feels familiar and guiding. Elevating the design to create relevancy in its execution, but with a trusting longevity

13 YSS Where Discovery Happens 13

14 YSS Store Design 14

15 YSS Store Design 15

16 ONTARIO ALBERTA Solo Growth Targets End 2018 End 2019 End Total Stores Total Stores 60 Total Stores 3-5 Communities 6-10 Communities 30+ Communities ~Apr 1 19 Grand opening(s) Exclusive Avison Young agreement to secure 100+ Retail Locations 16

17 Why Solo Growth Positioned to capitalize on the market opportunity presented by the legalization of cannabis Balance sheet strength with $23MM of cash and approved $3MM budget for 2018 to open first five stores Focus on Alberta and Ontario: favourable demographics suggest rapid & sizeable adoption Track record of efficient, low-cost operations in retailing controlled substance through 22 years experience operating Solo Liquor Competitive advantage driven by commercial real estate knowledge and collaborative relationships with municipalities and regulators across Alberta and landlords across Canada Commitment to quality within an efficient capital cost & operating model that is complemented with access to a Solo Liquor Administrative Services Agreement Experience Commitment Trust 17

18 Corporate Partners 18

19 Contact Information Pali Bedi President, Chief Executive Officer and Director Phone: (403) Aldershot Resources Ltd. d.b.a Solo Growth Suite 1100, 634 6th Avenue S.W. Calgary, AB T2P 0S4 Stephanie Bunch Vice President, Finance and Chief Financial Officer Phone: (403) Cindy Gray 5 Quarters Investor Relations, Inc. Phone: (403)

20 APPENDIX 20

21 Capitalization As at Sep. 17, 2018 Solo Growth is listed on the TSX-V under ALZ with the legal corporate name Aldershot Resources Ltd., this was the go-public vehicle used Pending approval by the TSX-V, ALZ will change to the TSX-V ticker SOLO and the corporate name Solo Growth Corp. Solo Growth management & board hold ~20% of basic shares & ~42% of fully diluted shares outstanding Capitalization Table Current After Rights Offering (1,2) Share Price (Sep 24, 2018 Close) $0.36 $0.36 Basic Shares Outstanding Basic Market Capitalization $204.9 $261.5 Aldershot Legacy Warrants ($0.06 Exercise) Management Warrants (Vested, $0.05 Exercise) Fully Diluted Market Capitalization $251.3 $314.1 Net Cash $22.8 $31.4 Dilutive Proceeds $6.6 $7.3 Enterprise Value $221.9 $275.4 Note: Figures denoted in millions except share price 1) Assumes all shareholders participate in 4:1 rights offering announced June 12, 2018, record date to be determined 2) Assumes all Aldershot legacy warrants are exercised prior to rights offering record date 21

22 Solo Liquor Success Sets the Stage for Solo Growth Aggregate 50+ years of experience in profitable expansion and operational expertise in Alberta s regulated retail liquor market Deep knowledge of demographics and consumer purchasing habits enables tailoring product brands and consumer retail experiences based on demographics drawn from 20,000+ customers per day Commitment to quality with low-cost model and a proven ability to secure premium locations Strong, collaborative and constructive relationships with municipalities and regulators across Alberta and landlords across Canada Proof of execution and operational strategy demonstrated by Solo Liquor s success with rapid expansion with 90% of stores that are open generating positive EBITDA in 12 months Solo Growth will continue to replicate the successful model and rapid expansion by Solo Liquor End of stores End of stores Today 64 stores 22