Chalice Brands Corporate Pre
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CORPORATE PRESENTATION | JUNE 2021 LEADING CANNABIS OPERATOR CSE: CHAL | OTCQB: CHALF DISCLAIMER CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION: This presentation includes forward-looking information and forward-looking statements within the meaning of Canadian and United States securities laws. Statements containing the words “believe”, “expect”, “intend”, “should”, “seek”, “anticipate”, “will”, “positioned”, “project”, “risk”, “plan”, “may”, “estimate”, “historical”, “expected performance” or, in each case, their negative and words of similar meaning are intended to identify forward-looking information. Forward-looking information involves risks and uncertainties including, but not limited to, the Company’s anticipated business strategies, anticipated trends in the Company’s business and anticipated market share, general business, economic and competitive uncertainties, regulatory risks including risks related to the market risks, risks associated with acquisitions, risks inherent in manufacturing operations, other general risks of the cannabis industry as well as those risk factors disclosed elsewhere in Chalice Brand’s public disclosure, including but not limited to, the Company’s Management’s Discussion & Analysis of Financial Condition and Results of Operations for the twelve Months Ended December 31, 2020 and the three months ended March 31, 2021 that could cause actual results or events to differ materially from those expressed or implied by the forward-looking information. Such statements are based upon the current beliefs and expectations of the Company’s management and are subject to significant business, social, economic, political, regulatory, competitive and other risks, uncertainties, contingencies and other factors. Many assumptions are based on factors and events that are not within the control of Chalice Brands. Actual future results may differ materially from historical results or current expectations. Slides herein titled “Milestones” contain forecasts which include forward looking information which is subject a variety of risks and uncertainties. These risks, uncertainties and assumptions could adversely affect the outcome and financial effects of the plans and events described herein. In addition, even if the outcome and financial effects of the plans and events described herein are consistent with the forward-looking information contained in this presentation, those results or developments may not be indicative of results or developments in subsequent periods. Although Chalice Brands has attempted to identify important risks and factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors and risks that cause actions, events or results not to be as anticipated, estimated or intended. Forward-looking information contained in this presentation is based on the Company’s current estimates, expectations and projections, which the Company believes are reasonable as of the current date. The Company can give no assurance that these estimates, expectations and projections will prove to have been correct. You should not place undue reliance on forward-looking information, which is based on the information available as of the date of this presentation. Forward-looking information contained in this presentation is as of the date of this presentation and, except as require by applicable law, the Company assumes no obligation to update or revise them to reflect new events or circumstances. Historical statements should not be taken as a representation that such trends will be replicated in the future. No statement in this presentation is intended to be nor may be construed as a profit forecast. Objectives risks and assumptions: Objectives assume no material change in selling prices of the Company’s products. If the price of the company’s primary input materials were to materially change, there is a risk that the company could not realize the revenues and expenses currently assumed. Objectives assume the Company completes the previously announced acquisition of retail stores in February 2021 and can complete further acquisitions during 2021. The Company is largely relying on raising external capital in order to acquire additional retail dispensaries. If the Company is unable to raise additional capital on reasonable terms, its ability to achieve the expansion implied its Objectives may be limited. Current competitive landscape in Oregon remains largely consistent throughout 2021 and 2022. The Oregon market size growth may accelerate to a degree which limits the Company’s ability to achieve market share objectives. EBITDA and Adjusted EBITDA are non‐IFRS financial measure and do not have any standardized meaning prescribed by IFRS and is therefore unlikely to be comparable to similar measures presented by other issuers. Adjusted EBITDA is a supplemental, non-GAAP financial measure. EBITDA is defined as earnings before interest, income taxes, depreciation and amortization. In addition, Adjusted EBITDA as presented excludes impairment charges, all other non-cash items and one-time transaction fees. Management believes providing Adjusted EBITDA is useful to investors’ understanding and assessment of the Company’s ongoing continuing operations and prospects for the future and it is a used by the financial community to evaluate the market value of companies considered to be in similar businesses. Since Adjusted EBITDA is not a measure of performance calculated in accordance with IFRS, it should not be considered in isolation of, or as a substitute for, measures of performance prepared in accordance with IFRS. Adjusted EBITDA, as calculated in the table above, may not be comparable to similarly titled measures employed by other companies. In addition, Adjusted EBITDA is not necessarily a measure of our ability to fund our cash needs. CURRENCY: All references to $ in this presentation are references to United States dollars, unless otherwise indicated. Risk Factors Investing in the securities of the Company involves a high degree of risk. Before investing in the securities, prospective purchasers of the securities should carefully consider the other information contained in this presentation and the risks disclosed in the Company’s public disclosure available under Chalice Brand’s SEDAR profile at www.sedar.com, including but not limited to, the Company’s Management’s Discussion & Analysis of Financial Condition and Results of Operations for the Three Months Ended March 31, 2021 (the “MD&A”). If any such risks occur, the Company’s business could be materially harmed. The risks and uncertainties described in the MD&A are not the only ones that the Company faces. Additional risks and uncertainties, including those of which the Company is currently unaware or that the Company deems immaterial, may also adversely affect its business. 02 CSE: CHAL | OTCQB: CHALF COMPANY OVERVIEW Best-in-class Cannabis Operator in Oregon led by Chalice Brands Ltd. Chalice Brands Ltd. is a cash-flow positive U.S. operator in the most competitive, innovative and mature cannabis market in North America. Leaders in retail, marketing and craft cultivation supported by fully integrated processing and distribution. Flagship Store 03 CSE: CHAL | OTCQB: CHALF BRANDS: Why they matter (and always will) The Company is committed to developing a dynamic brand portfolio with a focus on health and wellness. EXPLORE CHALICE FARMS EXPLORE ELYSIUM FIELDS EXPLORE RXO EXPLORE FIFTH & ROOT 04 CSE: CHAL | OTCQB: CHALF A TOTALLY AMERICAN EXPERIENCE Celebrate Spring and Summer with products from a company shaping the cannabis industry. It is deeply ironic that the legality of cannabis is still a question in our country. The truth is, in our early days as a nation, many of our founders were actively growing the plant. President Thomas Je!erson, George Washington, and James Madison all farmed hemp1. While serving in the Mexican-American war, Franklin Pierce discussed in a letter that smoking marijuana was the only good part SELECT ELITE of being in combat2. Further, James Monroe, while working as an ambassador to France, was a notorious hashish smoker3. And in a Delivering an activated, John F Kennedy documentary, JFK claimed to use marijuana while in broad-spectrum oil with the 4 the White House to help cope with a back injury he endured in WWII . highest THC levels possible, As we get closer and closer to today, we know more and more about this best-selling vape cartridge our presidents and their cannabis use. Pretty sure almost every- is popular for a reason. one has seen the iconic images of our forty-fifth president, Barack Obama, smoking while he was in college. It seems the free world leaders, whether they admit it or not, have all either participated in cannabis or have at least been exposed to it in some regards. They are humans, after all. Regardless of what it has been depicted as in culture and media, cannabis is a medicine that is not all about getting high and being a stoner when used correctly. In honor of 2021, a pivotal year for cannabis legality, we have selected products that warrant praise and attention. When we were RATIO DROPS brainstorming what products to feature, we recognized that Select’s There are options for everyone in their products were the obvious choice because they’re on a journey to create the most accessible cannabis products in the nation. One of ratio drops line and, therefore, allow the most well-known brands in the country,