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Investor PresentationJune 2015
Forward Looking StatementsThis presentation contains forward-looking statements. These forward looking statements are not based on historical facts but rather on Company management expectations regarding future growth, results of operations, performance, future capital and other expenditures (including the amount, nature and sources of funding thereof), competitive advantages, business prospects and opportunities. Statements in this presentation about future plans and intentions, results, level of activity, performance, goals or achievements or other future events constitute forward looking statements. Wherever possible, words such as “anticipate”, “believe”, “expect”, “may”, “could”, “will”, “forecast”, “potential”, “intend”, “estimate”, “should”, “plan”, “predict” or the negative or other variations of statements reflect managements’ current beliefs and assumptions and are based on information currently available to the Company management. Certain risk factors may cause actual results, level of activity, performance or achievements to differ materially from those implied by forward looking statements. These factors should be considered carefully and prospective investors should not place undue reliance on the forward looking statements. Although the forward looking statements contained in this presentation are based upon what the Company management believes to be reasonable assumptions, investors cannot be assured that actual results will be consistent with these forward looking statements. These forward looking statements are made as of the date of this presentation, and the Company assumes no obligation to update or revise them to reflect new events or circumstances.
June 2015 1
Laguna OpportunityIn 2013, the U.S. Direct Sales industry revenues
reached US$32.67 billion
Over 50% of the population above 18 in the U.S. drinks coffee
Global nutritional supplements industry revenues were US$32 billion in 2012 and are expected to double by
2021
June 2015 2Sources available upon request
Corporate OverviewA network marketing company founded in 2014 to focus
on the functional foods categoryInitial products showcase the nutritional health benefits
that are derived from hempProprietary hemp-infused coffeeExclusive rights to hemp-infused single serve flavoured
protein “just add water product” from Naturally Splendid Enterprises Ltd. (TSXV:NSE)
Management team with 25+ years of experience in multi-level marketing, manufacturing and business development
June 2015 3
Go Public TransactionDefinitive Agreement with Grenadier Resource Corp.
(CSE:GAD)1:1 share exchangeLaguna shareholders will own 62.7% of public entityGAD to be renamed Laguna Blends Inc.GAD recently completed $660,000 private placement
Proposed financing of up to $1 million upon completion of transaction
June 2015 4
Laguna Business Plan Research and development into hemp-related
products to expand product lineBuild a distribution network of direct sales affiliates Educate, train, and inform affiliates of industry best
practices, new products, and distribution techniquesLeverage exclusive technology to create efficiencies
and fuel growth
June 2015 5
Why Direct Sales?Proven, successful
modelWellness products have
seen positive growth for each of the past 4 years
Wellness represents 29% of industry revenues
June 2015 6Sources available upon request
Marketing and DistributionLeverage relationships with direct selling network
groups and multi-level marketing industry leadersTarget B2B customers
gyms and fitness centres, mom and pop and specialty coffee shops
Host conferences, webinars, meetings using exclusive online collaboration tools Affiliate growthCustomer engagement
June 2015 7
Laguna Compensation StructureBinary compensation structure with sponsorshipsEncourage affiliates to build strong networks Helps affiliates build long-term residual incomeStructured achievement and reward levelsUtilized in conjunction with advanced network
marketing software
8June 2015
Hemp – A Super FoodContains 33% proteinContains all 20 known
essential amino acidsRich in Omega 3, 6 and 9
essential fatty acids, Only edible oil that
contains the perfect ratio of Omega 6 to Omega 3 EFAs, as recommended by the World Health Organization
June 2015
Hemp products in the U.S. are a US$500 million industry
9
Laguna Hemp-Infused CoffeeProprietary formulaHemp and whey-
infused coffeeRich in proteinConvenient, single use
packaging for nutrition on-the-go
June 2015 10
Laguna HempOmegaTM InfusionsLOI with Naturally
Splendid Enterprises Ltd. Worldwide product
exclusivity agreement to HempOmegaTM protein formulation and flavour HempOmegaTM protein
Novel technology for water soluble hemp products
Laguna’s HempOmegaTM protein infusions are a
convenient, single-serve protein powder ready to be
mixed into liquids and ingested for nutritional wellbeing
June 2015 11
Direct Sales Market Recession proof - four
years of positive y-o-y growth
Employs 16.8 million people in the U.S.
Growth to continue at 3-5% annually for the next 5 years
June 2015
U.S. Direct Sales Industry revenues expected to reach US$41 billion in 2019
12Sources available upon request
People Love CoffeeCanada United States
US$40 billion industrySpecialty coffee sales
account for 51% of the coffee industry
400 million cups of coffee per day
Keurig estimates 9.8 billion K-cup packs were sold in 2014, a 13% increase from 2013
Single-serve cup coffee market to grow annually by 25%
2.1 billion servings of coffee each year
Approximately 1/3 of population has a single-cup brew machine at home
June 2015 Sources available upon request 13
Functional Beverages MarketGlobal functional beverage market revenues US$86
billion in 2013 up 5.1% from 2012North American accounted for US$24 billion of
industry sales (approximately 28%)
Sources available upon request
8.7% y-o-y growth for the next two years to reach sales of US$89.7 billion by the end of 2016
14June 2015
Laguna Technology Advantage3D immersive
technology for real-time interaction
Enables affiliates to work virtually
Advanced technology projects voice based on user location proximity
1-year exclusive license
June 2015
Innovative communication/networking
platform that facilitates training sessions, product presentations,
and client meetings
15
Long Term Growth PotentialLeverage existing product success and distribution
network Expand product offerings to feature hemp-related
products such as skincare, cosmetics, apparel, etc.Expansion into overseas markets to increase
distribution network and salesLicense innovative communication/networking
technology to other direct sales companies
June 2015 16
Experienced ManagementStuart Gray – Founder, President and CEO 18+ years of experience in business and marketing, including training at NSA
(National Safety Associates) and at Quorum International Founded several media and promotional related companies and has
provided consulting to over 120 public and private companies in the U.S. and Canada
Public market experience
Dennis Compo – Vice President Consultant to the music, entertainment, sales and marketing Industries for
35 years Direct experience in network marketing companies that sell coffee products,
namely: GanoLife Canada Inc. and Gano Excel Canada
June 2015 17
Management (cont’d)Martin Carleton – Chief Technical Officer8 years of work experience in the IT sector as a web developer and
project managerRecipient of the “Skype API Developer Award” in 2005 and in 2006Develops commercial websites and architects large IT network systems
Stuart Kei Kawasaki – Chief Operating OfficerExtensive hands-on experience in diverse leadership positions including
25 years in the multi-level marketing industryEstablished and launched operations worldwide with over 5,000
independent distributorsConsultant in the direct sales/network marketing industry and
retail/wholesale industry
18June 2015
Board of DirectorsStuart Gray – Director
Glen Little - Director Previously the Chief Executive Officer and Director of Grenadier Resource Corp. Founder and previously CEO, CFO and Manager of Corporate Development for
Intelimax Media Inc. (now DraftTeam Fantasy Sports Inc. - CSE:DFS) Founder and Director of several publicly listed companies
Rhys Williams - Director Over 25 years of manufacturing experience Co-founded BC Northern Lights Ltd, an indoor greenhouse appliance company, in
2002 Involved in the early development of the Urban Cultivator, a kitchen appliance featured
on Dragons Den in 2011
June 2015 19
Financial Projections
June 2015 20
Year 1 Year 2
$11,114,730
$45,998,140
$4,637,838
$18,051,206
$2,927,838
$15,339,206
Total Revenue Gross Profit Net Profit
Use of Proceeds
Use of Proceeds
Inventory-Coffee $400,000
Inventory-Hemp protein drinks $120,000
Sales and Marketing $120,000
Travel, Exhibitions and Conventions $50,000
General and Administration $260,000
New Product Development $50,000
Total Required $1,000,000
Laguna seeking $1.0 million in new financing to launch the business plan
June 2015 21
Share Structure
June 2015
Grenadier Resource Corp. Common Shares 16,181,414 Common Share Purchase Warrants 1,776,413 Stock Options 1,850,000 Fully-Diluted 19,807,827 Laguna Blends Inc. Common Shares 28,300,100 Common Share Purchase Warrants 4,000,000 Stock Options 1,800,000 Fully-Diluted 34,100,100 Post Proposed Transaction Common Shares 45,112,508 Common Share Purchase Warrants 6,407,407 Stock Options 3,650,000 Fully-Diluted Shares Outstanding 55,169,915 New Shares issued in Financing TBDTotal TBD
Post RTO Laguna shareholders hold approximately 62.7% of the resulting issuer.
22
Guideline Public Companies
Functional food and beverages and direct sales companies trade on average at an EBITDA multiple of 13.07x
June 2015 23
Millions of Canadian Dollars Listed Market TTM TTM TTM TTM Mkt. Cap/ Mkt. Cap/ Mkt. Cap/ Mkt. Cap/
Name Ticker Exchange Capitalization Revenues EBITDA Net Income Cash Flow Revenue EBITDA Net Income Cash FlowNu Skin Enterprises, Inc. NUS NYSE $3,698.20 $3,041.66 $472.33 $212.67 $222.30 1.22 7.83 17.39 16.64
Herbalife Ltd. HLF NYSE $5,993.67 $5,983.58 $798.93 $389.31 $600.73 1.00 7.50 15.40 9.98
USANA Health Sciences, Inc. USNA NYSE $2,032.66 $1,031.48 $161.68 $99.45 $157.42 1.97 12.57 20.44 12.91
Tupperware Brands Corporation TUP NYSE $4,084.40 $3,141.38 $517.83 $238.97 $359.76 1.30 7.89 17.09 11.35
Primerica, Inc. PRI NYSE $2,831.25 $1,695.35 $410.16 $221.68 $331.98 1.67 6.90 12.77 8.53
Nature's Sunshine Products, Inc. NATR NASDAQ $299.24 $444.75 $26.30 $17.58 $15.92 0.67 11.38 17.02 18.80
Natural Health Trends Corp. NHTC NASDAQ $530.05 $177.19 $30.84 $29.83 $48.48 2.99 17.19 17.77 10.93
Reliv' International, Inc. RELV NASDAQ $19.02 $71.94 $2.08 $1.24 $2.67 0.26 9.14 15.38 7.13
CVSL Inc. CVSL NYSEMKT $56.56 $95.65 -$24.01 -$25.93 -$20.14 0.59 n/a n/a n/a
Hain Celestial Group, Inc. HAIN NASDAQ $8,092.18 $3,203.71 $368.89 $165.23 $165.37 2.53 21.94 48.97 48.93
The WhiteWave Foods Company WWAV NYSE $10,485.00 $4,387.96 $499.28 $175.98 $350.84 2.39 21.00 59.58 29.89
Inventure Foods, Inc. SNAK NASDAQ $231.52 $368.69 $10.26 -$7.07 -$6.43 0.63 22.57 n/a n/a
RiceBran Technologies RIBT NASDAQ $39.45 $52.46 -$8.44 -$30.13 -$13.06 0.75 n/a n/a n/a
SunOpta Inc. STKL NASDAQ $856.76 $1,520.83 $78.34 $12.44 $32.31 0.56 10.94 68.87 26.52
Average 1.32 13.07 28.24 18.33 Median 1.11 11.16 17.39 12.91
Corporate HighlightsSkilled and experienced management with direct sales and
public markets experienceExperienced in building businesses from the ground up
Established relationships with multi-level marketing industry leaders
Direct sales model proven for functional foodsUnique high-demand everyday products
Proprietary and exclusive Functional foods market is large and growingInnovative technology platform for recruitment, training,
and client engagement
June 2015 24
