Transcript Disclaimer - Cannabis Funding Group, LP

This presentation is confidential and private. Distribution is restricted. It may not be reproduced, copied or
replicated in any form without the express and written authorization of Cannabis funding Group LP.
Disclaimer
This presentation contains statements about future events and expectations that can be characterized as forward-looking
statements, including, in particular, statements about Cannabis Funding Group (“Company”) plans, strategies and prospects.
The use of the words “anticipate,” “estimate,” “expect,” “may,” “project,” “believe” and similar expressions are intended to
identify forward-looking statements. Although the Company believes that the plans, intentions and expectations reflected in or
suggested by such forward-looking statements are reasonable, they do involve certain assumptions, risks and uncertainties,
and the Company cannot assure you that those expectations will prove to have been correct. Actual results could differ
materially from those anticipated in these forward-looking statements as a result of the factors described in this presentation.
Many of these factors are beyond the Company’s ability to control or predict. The Company cannot assure you that its future
results will meet its expectations and parties are cautioned not to place undue reliance on any forward-looking statement
made by the Company or its authorized representatives. All subsequent written and oral forward-looking statements
attributable to the Company and persons acting on its behalf are qualified in their entirety by the cautionary statements
contained in this paragraph and elsewhere in this presentation.
The Company does not have any obligation or undertaking to disseminate any updates or revisions to any forward-looking
statement contained in this presentation or the admission document to reflect any change in the Company’s expectations
about the statement or any change in events, conditions or circumstances on which the statement is based.
Presentation material and any proposals are subject to market change and political change. Anything in the following pages
do not constitute a contract or binding agreement. Any recipient of this document acknowledges and agrees with following:
(1) Company disclaims any and all liability and responsibility for the quality, accuracy, completeness and materiality of this
document; (2) Recipient will conduct its own independent evaluation and analysis of the information contained herein.
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Investment Summary
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Fund Overview
Executive Summary
The Fund, CANNABIS FUNDING GROUP, LP., is a limited partnership formed under the laws of the State of Texas.
The Fund’s parent company is Smart Ventures, Inc. a Nevada public corporation which owns 100% of the common
stock of Cannabis Funding Group, Inc. Cannabis Funding Group, Inc. owns 1% of Cannabis Funding Group, LP as
General Partner and Smart Ventures, Inc. owns 99% of the LP currently because of the seed capital invested by
Smart Ventures. Cannabis Funding Group, LP will be selling limited partnership units which will proportionately
reduce the ownership of Smart Ventures to its pro-rata ownership of the LP. The General Partner will receive a 2%
management fee and 20% performance fee.
Management Fee:
2% of total capitalization
Performance Fee:
20% of all returns after Pay Back of Seed Capital
Ownership Wire Diagram
Cash Distribution
CFG, LP
Investment
Investment
Investment
100%
Member Interest
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GP
GFG, Inc
LP
Investors
20% LP
80% LP
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Investment Summary – Offering Terms
Cannabis Funding Group, LP.
$10,000,000 Limited Partnership Units
Issuer:
Cannabis Funding Group, LP,. a Texas Limited Partnership (the
Company)
Securities Offered:
Limited partnership Units in Cannabis Funding Group, LP,.
Size of Offering:
10,000 Limited Partnership Units
Price Per Unit:
$1,000 (the "Purchase Price")
Minimum Investment:
$10,000 (10 LP Units)
Fund Term:
1 year with 90 day redemptions
(Offering made by prospectus only, this appears as a matter of record only)
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Cannabis Funding Group
Overview
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Cannabis Funding Group – Overview
About Us and Our Philosophy
Cannabis Funding Group, LP, a private equity sponsor, is a wholly owned subsidiary of Smart Ventures,
Inc. (SMVR) a Nevada public company listed on the OTC Market. We are a source of private capital and
strategic support to the legal cannabis industry. We create value by providing growth capital to
experienced management teams, established markets and proven business models. We feel our
investment philosophy provides a method for a conservative, risk mitigated, and disciplined approach to
consistently provide value to our investors.
Targeted Opportunities
Cannabis Funding Group Strategy
CFG will target the following opportunities:
We will attempt to increase the value of these
investments by:
•
Providing growth capital
•
Improving management/marketing
•
•
Lowering expense through economies of
scale
Venture Capital to start-ups with proven
management
•
•
Investing into experienced management
teams and proven business models
Public and Private investments using a
PIPES transaction, public equities, or
fixed income
•
Real-Estate Buy and Lease Back
Opportunities
Investment Process
Sourcing/
Due Diligence
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Value
Building
Management/
Exit
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Targeted Opportunities – PIPES, Growth and Venture Capital
PIPES
Purchasing, managing and selling common shares of stock in public companies and private companies
contemplating a PIPES transaction, and may invest in fixed income assets such as bonds or notes of
cannabis related businesses in states licensed to conduct said business. The Fund will generally invest in
Micro Cap Stocks of issuing corporations involved in a wide range of industries in an effort to diversify. The
fund will typically purchase micro-cap stocks at a significant discount to market price such as a discount of
5-50% of its market value, and purchase bonds and notes with an interest rate of 8%-16% interest rates.
Target Returns: 8 – 20%
Growth Capital
Growth Capital description:
- Proven management teams
- Established business models
Target Returns: 12 – 20%
Venture Capital
Venture Capital description –
- High growth opportunities
- Established management teams with track record
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Target Returns: 15 –
33%
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Targeted Opportunities – Real Estate
Real Estate
Colorado has 450 licensed dispensaries using nearly 1,000 commercial properties and is occupying over
5 million square feet of space.
Summary & Targeted Returns
Annualized ROI of 25% - 35%
• NNN Leases
• Purchase of existing growing facilities
• Design and Build new growing facilities
• Both Indoor and Light Deprivation
Greenhouse properties
• Projects sized from $500k to $6.5 million
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Cannabis Market Overview
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Current Legal Overview by State
States and district with
Medical marijuana laws
States that have removed jail time for
possessing small amounts of marijuana
States that both have a medical marijuana law and have
Removed jail time for possessing small amounts of marijuana
Marijuana is legal for adult use and the state will regulate
and tax marijuana sales, Colorado and Washington also have
medical marijuana laws
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In Alaska, the courts have found that the state constitution’s
right to privacy includes the right to posses modest amounts
of marijuana in one’s home
SOURCE: Marijuana Policy Project
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Industry Timeline
Industry Timeline
1996 - California becomes the first state to legalize Medical Marijuana
2000 - Colorado legalizes Medical Marijiuana
2010 - Colorado creates legal framework and laws for the operation of for profit Medical Marijuana dispensaries
2012 - CO and WA citizens vote to legalize marijuana sales for adult use
2013 - Colorado formalizes laws for adult use sales
2014 – January, CO becomes first state to open up for adult use retail sales to CO residents and tourists.
2014 – Washington
2014-Nevada
•
•
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The US Medical Marijuana Industry size is estimated to be $1.8b in 2013
CO and WA Adult Use sales will likely top $400m in 2014.
Oct 2013 Gallup Poll shows 58% of Americans support marijuana legalization
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Industry Projections
Current Projections
The US national legal marijuana
market value is now assessed at
$1.53 billion, comprising all states
that have active and open sales of
cannabis to people legally allowed to
possess it under state law. The
national market is projected to grow
68 percent from current levels to
$2.57 billion by 2014.
The five-year national market
potential is $10.2 billion, which is
more than a 700 percent increase
above the current national market
value. Gains will come in the form of
increased demand in existing state
markets, as well as from new state
markets coming online within a fiveyear horizon.
SOURCE: Arcview Research
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Public Market
450%
400%
350%
300%
250%
200%
150%
100%
50%
0%
OTCPK:CANN - Share Pricing
OTCPK:CANV - Share Pricing
OTCBB:CBCA - Share Pricing
OTCPK:MDBX - Share Pricing
OTCPK:CBIS - Share Pricing
OTCPK:REFG - Share Pricing
Publicly Traded Cannabis Industry Companies
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Medical Marijuana Inc. – MJNA - $.22 share price (06-06-2014)
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Market Capitalization: $128.7 million
CannaVest Corp. – CANV - $16.25 share price (06-06-2014)
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Market Capitalization: $533.8 million
Cannabis Sciences – CBIS - $0.12 share price (06-06-2014)
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Market Capitalization: $97.6 million
Cannabis-Rx Inc. – CANA – $0.38 share price (06-06-2014)
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Market Capitalization - $62.4 million
Cannabis Capital Corp – CBCA - $12.99 share price (06-06-2014)
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Market Capitalization - $1,750 million
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Contact Info
Roger AT Smith
Fund Manager
[email protected]
www.cannabisfundinggrouplp.com
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