Cosmic Cognition Company...Mar 12, 2020 · Additional support from PR, digital agencies and creative partners allow Old Pal to greatly expand our execution capabilities. OLD PAL

Cosmic Cognition Company

O L D P A L C O S M I C C O G N I T I O N C O M P A N Y C O N F I D E N T I A L F O R I N T E R N A L U S E O N L Y

Company Overview


We will become the most recognized brand in the cannabis industry and a cultural leader

in the normalization of the cannabis plant.

OUR WHY

We aren’t just a cannabis company, we are an experience company connecting the cannabis consumer of today with the pioneers and

advocates before us who believed in the power of sharing and growing.

Our authenticity resonates with consumers andour dedication to value-oriented products has and will

continue to create brand awareness and loyalty.

W H O W E A R E


FREEDOM KINDNESS

EXPANSION HAPPINESS


STRENGTH OF ACCESSIBLITY

Our goal is to keep weed local, accessible and

provide quality-consistent product through a brand

first expreience.

Old Pal product prices index at a 44% average of

the 1/8th on the shelf in CA – staking claim to the

value shelf. We’ve sold 14 tons of weed in 2019,

proving that the value shelf consumer appreciates the

comitment to both product and brand.

BRAND FOCUS

We are the only group singularly focused on best-

in-class branding for the value shelf. While other

companies are spread thin trying to master vertical

integration, Old Pal is focused on being best in class at

one portion of value chain, BRAND! This hyper focus

differentiate us from the rest of the value industry.

SCALABLE STRUCTURE

No licensing requirements, minimal infrastructure, and

low working capital requirements mean that Old Pal

can expand without the growing pains of vertically-

integrated producers.

Speed to market, price and quality are driving rapid

growth across California, Nevada and Washington.

With expansion into additional states in 2020, we will

prove the national viability of our business model.

INCLUSIVE &SHAREABLE

COMMUNITY& HONESTY

COMPANY VALUE PROPOSIT ION


Our Products


1/8TH OZ PACKSA CLASSIC EIGHTH OF SHAREABLE CANNABIS

SATIVA HYBRID INDICA

A simple 1/8th oz of weed is all you need to get the day rolling. A classic option for any

situation. If you’re wondering which option you’ll like best, no sweat, you can afford to try

all three. Quality, shareable cannabis for the everyday smoker, or the first-time user.

QUALITY CANNABIS

WHOLESALE PRICE

$8.50CALIFORNIA SUGGESTED

RETAIL PRICE

$17.00


1 OZ PACKS


NEVADA WHOLESALE

$60.00NEVADA SUGGESTED

RETAIL PRICE

$120.00


READY TO ROLL 1/2 OZ PACKSHALF OUNCE OF PRE-GROUND FLOWER, READY TO ROLL

QUALITY CANNABIS PLUS PAPERS

SATIVA INDICAHYBRID

Ready for the road and priced to share. These convenient

all in ones are a hit with everyone from the outdoor crowd

to the daily user, as well as compassionate use patients

who need a quality product at a budget price.

WHOLESALE PRICE


RETAIL PRICE

$50.00


A LOW-VOLUME VAPORIZER CREATED FOR CANNABIS TOURISTS + SAMPLING

VACATION VAPES

We’ve taken care to ensure that 85% of this product is recyclable,

reducing our impact on the environment.

On an overnight trip and need a couple puffs? Our newest vacation vape

has you covered for those overnight treks to weed world.

HYBRIDMIMOSA

HYBRIDGUAVA

INDICAGRAPE APE

SATIVAMAUI WOWIE

WHOLESALE PRICE


RETAIL PRICE

$15.00


510 CANNABIS OIL CARTRIDGES


HALF GRAM BLENDS

SATIVACLEMENTINE

HYBRIDSTRAWBERRY BANANA

INDICAPURPLE PUNCH

HALF GRAM STRAINS


ONE GRAM BLENDS ONE GRAM STRAINS

SATIVACLEMENTINE


INDICAPURPLE PUNCH

QUALITY OILS PRICED TO SHARE

Choose from our 510 Blends or 510 Strains.

WHOLESALE PRICE

$7.50

WHOLESALE PRICE

$12.50

WHOLESALE PRICE

$10.00

WHOLESALE PRICE

$17.50

CALIFORNIA SUGGESTED RETAIL PRICE

$15.00


$25.00


$20.00


$35.00


GPEN GIO CANNABIS OIL CARTRIDGESWE TEAMED UP WITH THE BEST IN VAPOR DELIVERY TECHNOLOGY.

We’ve got you covered for the most premium tasting GIO cartridges on the market.

Affordable enough to try all three.

SATIVACLEMENTINE


INDICAPURPLE PUNCH

PREMIUM VAPORIZERCARTRDIGES

CUSTOM BATTERY COLLABORATION

WHOLESALE PRICE


RETAIL PRICE

$25.00


ROLLING PAPERS

SLOW + EVEN BURN | 40 LEAVES PER PACK | UNBLEACHED HEMP PAPER | 50 UNITS PER CASE

ROLL WITH THE BEST

Our very own rolling papers, popular among the best rollers out there.

WHOLESALE PRICE

$.50WHOLESALE PRICE

$.75CALIFORNIA SUGGESTED

RETAIL PRICE


RETAIL PRICE

$1.50


Business Overview


UNIQUE LICENSING BUSINESS MODEL

FOCUS ON BRANDLicensing model lets Old Pal focus on customer relationship and

go-to-market strategy, versus vertical orgs that need to do all of it.

NIMBLE STRUCTUREOld Pal can go to new states quickly and enter new product

categories in a matter of weeks, not months.

RESILIENCY IS BUILT-INMinimal working capital outlay, detailed product SOPs and an in-house

sales team allows Old Pal to rapidly restructure our supply chain

and channel strategy quickly.


CPG EXPERTISE

L A N D CHIEF CREATIVE

OFFICERS

World renowned art and design studio with 20+ years of brand building

experience in the CPG space.

Excel in package design for brands in health/wellness, beer/alcohol, coffee/cafe,

hospitality and most recently the cannabis industry with Old Pal.

Select Clients include Hermés, Levi’s, Nike, Ace Hotel, Patagonia, Stumptown

Coffee, Fender, Scribe Winery, Campari, Mountain Valley Spring Water.

Our leadership team has extensive knowledge in CPG brand building strategies.

Experience includes:

Creative and execution strategy at world renowned ad agencies Anomaly (NYC + LA) and R/GA (NYC). Clients

included Converse, Squarespace, Beats by Dre to name a few.

Retail marketing expertise from experience both in big box retail, Target, and smaller boutique brands l ike Deus Ex

Machina and Stumptown Coffee.

National sales strategy and execution at Anheuser-Busch InBev, MillerCoors and Ninkasi Brewing.

Extensive cannabis knowledge from previous roles at Kiva, MedMen, Loudpack, Flow Kana and Nativ.

IN-HOUSEMARKETING

TEAM

Our marketing team is a team of 6 strong, full time employees focusing on digital

marketing and growth, events + experiential, trade marketing, influencer seeding

and Old Pal Provisions.

Our team has a wide array of experience both in and outside of the cannabis space, providing a well rounded approach to our

marketing efforts.

Additional support from PR, digital agencies and creative partners allow Old Pal to greatly

expand our execution capabilities.


DIGITAL MARKETINGDigital growth consumes a lot of our time and energy. While our branding often leans into the nostalgic ties of cannabis generations before us, we understand the importance of building a strong, digital first brand. ROI being easier to track and attribute to efforts allows us to evalute and adjust quickly to meet KPI goals. We

also gain a wealth of knowledge about our consumers and their purchasing behaviros, something that is difficult in more traditional marketing efforts.

•Email List Growth: +16K

•Email Driven Revenue: 29%

(OLD PAL AND OLD PAL PROVISIONS)

•Average Open Rate: 14%

( INDUSTRY AVG. OPEN RATE: 15.68%)

•Average Click-Thru Rate: 2.4%

( INDUSTRY AVG. CLICK-THRU RATE: 2.01%)

•Variety of content shared

via email marketing

- NEW PRODUCT INFORMATION - EVENT HAPPENINGS - COSMIC CONTENT STORY TELLING

•Average Post Engagement :

455 Likes

•Brand love shared from our

followers: #oldpalcannabis

•IG Follower Growth:

+14K / 168% Increase

•Average Daily Growth:

40 New Followers

S O C I A L S TAT I S T I C S

E M A I L S TAT I S T I C S

25,000

20,000

15,000

10,000

8,580

23,096

5,000

Jan DecFeb Mar Apr May Jun July Aug Sep Oct Nov

20,000

15,000

10,000

5,000

0

Jan Feb Mar Apr May Jun July Aug Sep Oct Nov Dec

16,000+

2 019 E M A I L L I S T G R O W T H

2 019 I N S TA G R A M G R O W T H


Old Pal Provisions lifestyle brand extension give us the ability to target consumers on a national level to introduce them to the ethos and the aesthetic of Old Pal, as well our community of believers.

Besides pushing brand recognition beyond the geographies where Old Pal licenses cannabis products, Old Pal Provisions allows us to leverage the Direct-to-Consumer digital marketing practices that have revolutionized the way the fastest

growing CPG brands communicate and connect with their customers today. We can target consumers by age, geography or similar interest, and communicate directly with them through stories, community events or emails from the OP Journal

-- all while tracking the tangible return on our marketing spend and generating additional soft goods revenues.

And, for our team, we love that Old Pal Provisions is built as more than a storefront, but a reflection of the spirit behind the brand, with a commitment to connecting our community with the artisans that make our products, the causes that

motivate us, and the connection that Old Pal has to the legacy of the cannabis culture.

OLD PAL PROVISIONS


YEAR 1 STATS$68,000+ in top-line sales

1,472 orders

Orders shipped to all 50 US states & 13 countries

17 new products launched

3 product collabs: Sister Ceramics, Summerland Bongs, Slowtide

Q4 HOLIDAYBlack Friday/Cyber Monday sales saw

a 132% increase vs the previous week,

bringing $9309 in revenue

250+ orders during Q4 holiday weeks

vs average 33 orders per week during

non-seasonal shopping

REVENUE SOURCES

ORGANIC

2 9 . 4 %EMA I L

2 9 %PA ID SOC IAL

4 1 . 6 %

OLD PAL PROVISIONS STATISTICSDespite only launching the Old Pal Provisions site in October 2019, the early returns have exceeded our expectations and go a long way towards

proving out the concept. We currently generate nearly $1 of Revenue for each $1 of traffic purchased, and our growth to-date suggest it may be

possible to improve that conversion to a point where Old Pal Provisions is self-funding.


Unlike most other cannabis brands, Old Pal is a pure licensing model -- we are not licensed, we never touch the plant, and never participate in cannabis sale transactions. Large cultivators license the Old Pal brand

name in order to have access to our channel at retail and move their product at a higher volume and lower cost than they could do otherwise on their own.

However, the customer only knows Old Pal, large channel partners like Eaze and MedMen only work with Old Pal, and dispensary buyers must consolidate orders through Old Pal (before orders are disaggregated

to Licensees), so the brand is functionally severable from its supply chain and fully portable -- a business model large beer and alcohol companies leverage extensively.

LICENSING MODEL


VALUE PROPOSITION FOR PARTNERS

TOP CANOPY

LOWER CANOPY

More economically priced flower

per pound

Premium priced flower per pound

Old Pal value proposition isn’t just for consumers.

Old Pal products allow manufacturers, MSOs and production houses to

leverage their lower canopy material in mass scale, without impacting their

mid-market or up-market brands. They can buy-down their overall cannabis

raw material costs, drive economies of scale on the production floor, and

drive additional margin and cash flow with very little investment.

In a commoditizing market, Old Pal de-risks our partner’s cultivation

assets by insuring they have a brand that will sell through as the price of

their biomass decreases. Large-scale cultivators can leverage our details

SOPs and production operations expertise to move up the value chain and

take additional margin on trimming, grinding and packaging services.


MATURE PROCESSES DRIVE SUCCESS AND RESILIENCY

Standard Operating Procedures for Old Pal Partner Licensee’s:

1/8 CLASSIC SHAREABLE FLOWERLAST UPDATED: 082919

SOP: 1/8 CLASSIC SHAREABLE FLOWER CONFIDENTIAL: 3

PurposeOld Pal (“OP”) is a cannabis brand focused on providing quality, sun-grown flower that comes in three varieties: Indica, Sativa, and Hybrid.

Accessible, affordable, and abundant, Old Pal’s vision is simple: It’s just weed, man. They call it “shareable” for a reason. Old Pal believes cannabis and spending time with friends go hand-in-hand.

The purpose of this standard operating procedure (“SOP”) is to provide structural insight into how Old Pal Partner Licensee’s (“PL”) deliver consistent shareable sun-grown cannabis flower in our signature 1/8th Classic Shareable Flower products.

ScopeThis SOP applies to all Old Pal Partner Licensees who manufacture and distribute Old Pal’s 1/8th Classic Shareable Flower products in active and future markets.


Input Flower “Spec”These specifications (“Spec”) are intended to create a concrete parameter on acceptable Input Flower for Old Pal products.

RAW FLOWER

To achieve the ideal Input Flower for Classic Shareable Flower products, partner licensee must source clean and compliant cannabis flowers.

The flower’s age must not exceed more than 6 months from harvest date to meet specifications.

MANICURE

Old Pal’s brand standards requires all input material to have minimal sugar trim affixed to the cannabis flowers.

An acceptable amount of sugar trim will not exceed .25 inches. No water leaves or fan leaves will be tolerated.

MOISTURE CONTENT

Moisture content for Old Pal cannabis product must be between 8% and 12% or within the State Compliant parameters.

POTENCY

Input flower must have an overall batch potency of 15% Total THC and higher or have written acknowledgment of usage from the Old Pal team for all batches below 15% Total THC.

It is recommended that Partner Licensee’s conduct an internal R&D test to gauge total THC potency when on-boarding new suppliers or in the change in season.

SIZE

Input flower must be between .25 inches and .75 inches. Anything below the bottom half of the range must receive written approval from Old Pal’s Product Team to go into packaging.

AROMA

All input flower must have a present and attractive aroma that compliments the cultivar’s name. No oxidized or generally foul odors will be accepted for Old Pal flower product Spec.

SUGAR LEAVES

≤.25”

BATCH POTENCY

≥15%THC

MOISTURE CONTENT

≤12%8%≤

FLOWER SIZE

.25”- .75”

AROMA

RAW FLOWER AGE

≤6mos


Packaging Diagram At-A-GlanceTHE DIAGRAM BELOW ILLUSTRATES THE ENTIRE MAKEUP OF THE 1/8 PACKAGE. DETAILED INSTRUCTIONS CAN BE FOUND ON THE FOLLOWING PAGES.

Primary Package: 1/8th Pouch

Secondary Package: POP Box

CA UNIVERSAL SYMBOL & NET WT LABEL

CASE LABEL

INFORMATION PANEL LABEL(ON BACK)

POP INFORMATION PANEL LABEL(ON BACK)

WAFER SEAL

PACKAGED BY XXXXXXXXXXXXX

BEST BY : 03.26.20

BATCH # : 1117SSOG1

UID XXXXXXXXXXXXXXXXXXXXXXXXTHC

XX% / XXX.XX mg XX% / XXX.XX mgCBD

XXXXXXXXXX.COM

PACKAGED : 03.26.19

SATIVA

CHEM DAWG

PACKAGED BY XXXXXXXXXXXXX XXXXXXXXXX.COM

CBDXX% / XXXX mgXX% / XXXX mg

THC

PACKAGED : 03.26.19

BEST BY : 03.26.20

BATCH # : 1117SSOG1

UID XXXXXXXXXXXXXXXXXXXXXXXX

INDICA

PURPLE PUNCH

Secondary Package: Master Carton

*SEE “APPENDIX: LABELS” for artwork and size specifications.


Primary Package: LabelingThe 1/8 Classic Shareable flower Primary Package requires two label applications before input flower filling.

1. Start by making sure to work with packaging that is UNFILLED and flat to ensure quality adhesion of labels.

2. On the primary panel, carefully center the CA Universal Symbol Label horizontally with the entire package and adhere 2mm below the “W” in “Flower” as shown in the image on the left

3. On the back of the package, carefully center the Information Panel Label horizontally with the entire package and adhere 4mm above the bottom boundary of the package.

It is important that the new labels fully cover the portion of the printed package that they are replacing!


BEST BY : 03.26.20

BATCH # : 1117SSOG1



XXXXXXXXXX.COM

PACKAGED : 03.26.19

SATIVA

CHEM DAWG


BEST BY : 03.26.20

BATCH # : 1117SSOG1



XXXXXXXXXX.COM

PACKAGED : 03.26.19

SATIVA

CHEM DAWG


BEST BY : 03.26.20

BATCH # : 1117SSOG1



XXXXXXXXXX.COM

PACKAGED : 03.26.19

SATIVA

CHEM DAWG

ALL 1/8 PACKAGES: PRIMARY PANEL (LABELED) BACK PANEL (LABELED)

CA UNIVERSAL SYMBOL & NET WT LABEL

INFORMATION PANEL LABEL

PACKAGE ELEMENTS

INSTRUCTIONS

2mm


BEST BY : 03.26.20

BATCH # : 1117SSOG1



XXXXXXXXXX.COM

PACKAGED : 03.26.19

SATIVA

CHEM DAWG

4mm

Consumers expect CPG best practices for CPG purchases. Best practices and quality control are not commonplace in the industry

today. Old Pal is a market leader in implementing rigorous product SOPs that insures consistency nation wide. We provide

all product development, product specifications, manufacturing standards, and brand marketing, so our partners can focus on

manufacturing and distributing consistent product for us.

Detailed SOPs and mature processes drive quality, but they also simplify the process of expanding our production base and

moving into new states. If a Licensee halts production for some reason, Old Pal can quickly on-board new partners and spin up

capacity, or in new states, we can offer a large scale production houses with a full suite of products complete with all go-to-

market features built in.


Performance Overview


IN 2019 WE PACKAGED, LABELED AND SOLD 14 TONS (NEARLY 2MM 1/8THS) OF WEED.

SATIVA INDICAHYBRID

#1 FLOWER BRAND IN CA FOR 2019

3.3% MARKET SHARE

11% MARKET SHAREIN NEVADA

IN 270 RETAILERS ACROSS 3 STATES


Since our cannabis oil cartridges launched on Eaze in April, we have ranked #1 in unit sales and revenue since May.

Data shows 40% of Old Pal customers on Eaze have made between 2 to 10 repeat purchases, the most of any brand on the platform.

Jane Data also shows Old Pal has highest retention rate of vape products.

PEOPLE LOVE OUR DIGITAL DOOBIES

50%

45%

40%

35%

30%

25%

20%

15%

10%

5%

0%O

LD P

AL

RAW

GA

RDEN

SELE

CT

PURE

EXT

RACT

S P2

O.P

EN V

APE

PLA

TIN

UM

VA

PE

MYC

HRO

N

ABS

OLU

TEXT

RACT

S

HEA

VY H

ITTE

RS

OU

TCO

KURV

AN

A

ROVE

GO

LD F

LORA

SKU

NK

FEA

THER

EDEN

EXT

RACT

S

AIR

O P

RO

JETT

Y EX

TRA

CTS

WIN

BERR

Y FA

RMS

CARE

BY

DES

IGN

BLO

OM

FA

RMS

ORC

HID

ESS

ENTI

ALS

BEEZ

LE E

XTRA

CTS

SHER

BIN

SKI’S

GO

LD D

ROP

CRES

CO L

ABS

#1 RANKING IN TOP 25 VAPE CARTS: CUSTOMER RENTENTION RATE

i .e. “Customers who purchase [brand] have [x%] chance of repurchasing.”

Data points provided by Jane.com


2019 ANNUAL TOTAL

Q1 Q2 Q3 Q4E 2019E 2020 2021 2022

Total Revenue (Wholesale) 3,725,392 5,852,654 6,962,856 6,892,964 23,433,866 44,793,516 68,631,434 82,344,059

Total Old Pal Revenue 594,720 1,280,642 1,446,082 1,204,112 4,525,556 9,430,748 15,320,674 18,742,269

Licensing as % Revenue 16.0% 21.9% 20.8% 17.5% 19.3% 21.1% 22.3% 22.8%

Cost of GoodsPackaging 184,745 518,719 440,327 320,403 1,464,195 2,968,684 5,221,278 6,421,028

Old Pal Provisions 10,404 30,218 40,622 169,605 255,921 374,695

Gross Profit 409,974 761,923 995,351 853,490 3,020,739 6,292,458 9,843,475 11,946,547

Gross Margin (Licensing) 68.9% 59.5% 68.8% 70.9% 66.7% 66.7% 64.2% 63.7%

Gross Margin (Wholesale) 11.0% 13.0% 14.3% 12.4% 12.9% 14.0% 14.3% 14.5%

SG&APayroll & Benefits 401,121 709,359 813,820 844,921 2,769,220 3,611,901 3,852,717 3,895,282

Contractors 155,726 168,231 122,683 381,829 828,468 866,400 965,400 980,400

Sales & Marketing 372,488 660,692 715,512 159,305 1,907,998 2,164,000 2,421,000 2,539,000

Travel & Meals 91,111 109,131 129,091 110,869 440,202 476,033 505,244 536,248

Legal & Professional 205,880 217,787 8,118 43,472 475,257 180,518 199,258 219,944

Rent & Utilities 31,290 69,942 56,078 66,421 223,730 262,418 278,521 295,612

General Office 63,885 126,555 135,392 228,693 554,524 567,126 601,927 638,863

Other (52,694) (49,699) (12,010) 4,983 (109,420) - - -

Total Operating Expenses 1,268,805 2,011,998 1,968,684 1,840,493 7,089,980 8,128,397 8,824,068 9,105,349

Operating Income (858,831) (1,250,074) (973,333) (987,003) (4,069,241) (1,835,938) 1,019,407 2,841,198

PROJECTED FINANCIALS


Old Pal is looking to raise $11M at a $110M valuation to fund state expansion and provide operational runway to reach nationwide legalization in 18-24 months.

Old Pal’s asset light model means new investment only fuels new markets, not growth in existing markets. And we have the ability to pare down spending and go cash flow break-even above $4.5M in monthly GMV.

New Class C unit will have liquidation preference and the Class will select a Board seat.

F U N D R A I S E O V E R V I E W



@oldpal.us

oldpal.com

oldpalprovisions.com

Learn more and spread the word

Documents

Cosmic Cognition Company...Mar 12, 2020 · Additional support from PR, digital agencies and creative partners allow Old Pal to greatly expand our execution capabilities. OLD PAL