Download Medical and Recreational Marijuana Growing Industry

Corporate Presentation
February 2016
: PNPL
Forward Looking Statements & Disclaimer
This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities and Exchange Act of 1934, as amended. Statements that are not a description of
historical facts constitute forward-looking statements and may often, but not always, be identified by the use of such words as
"expects", "anticipates", "intends", "estimates", "plans", "potential", "possible", "probable", "believes", "seeks", "may", "will",
"should", "could" or the negative of such terms or other similar expressions. Actual results may differ materially from those set
forth in this presentation due to the risks and uncertainties inherent in the Company's business, including that we have a limited
operating history, are dependent upon key personnel whose loss may adversely impact our business, and some of our business
activities and the business activities of some of our customers and counterparties, while believed to be compliant with applicable
state law, may be illegal under federal law because they violate the Federal Controlled Substances Act. Readers are cautioned not
to place undue reliance on these forward-looking statements, which speak only as of the date hereof. All forward-looking
statements are qualified in their entirety by this cautionary statement and the Company undertakes no obligation to revise or
update this presentation to reflect events or circumstances after the date hereof.
This presentation has been prepared by Pineapple Express Inc., (The “Company”). It should not be considered as an offer or
invitation to subscribe for or purchase any securities in the company or as an inducement to make an offer or invitation with
respect to those securities. No agreement to subscribe for securities in the company will be entered into on the basis of this
presentation or any information, opinions or conclusions expressed in the course of this presentation. This presentation is not a
prospectus or other offering document under U.S. Law or under any other law. It has been prepared for information purposes only.
This presentation contains general summary information and does not take into account the investment objectives, financial
situation and particular needs of any individual investor. It is not investment advice and prospective investors should obtain their
own independent advice from qualified financial advisors having regarding to their objectives, financial situation and needs.
© Pineapple Express Inc. 2016 All rights reserved. Confidential.
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A Fresh Take On Canna-business
 Headquartered in Los Angeles, Pineapple Express provides
expert consulting, product licensing, and capital to help
distinguish and grow new and existing businesses within
the cannabis industry.
 In supplying industry specific technologies and ancillary
support services, the company provides a turnkey
operating environment to canna-business managers.
 Pineapple Express is home to some of the most
experienced and well-connected minds in the business,
immediately placing its investors and clients at the
forefront of an industry that is foreign to most.
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Business Model
 Provide Capital To Our Canna-business Clientele Including Licensed
Growers/Cultivators and Dispensaries.
 Lease Real Properties To Those Canna-businesses.
 Provide Consulting And Technology.
 Enhances And Expands Existing And Newly Formed Cannabusinesses.
 Product Licensing.
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Industry Specific Technology
Patent-pending “Top-Shelf” display safe system converts four critical
components of the current dispensary model and combines them
into one technologically advanced and aesthetically pleasing unit.
Our display safe system:
 Allows for a dispensary operator to safely display product.
 Secures all product in an armored safe.
 Weigh all product in real-time, and then dispense the product
using an integrated Point-of-Sale, (POS) system compatible with
all POS systems currently in use in dispensaries.
 Anticipated retail price - $25,000 per unit with an anticipated
60% gross profit margin.
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Proprietary Top Shelf System
Expect to commence sales in the first quarter of 2016 and to
produce and sell five units per quarter in 2016 with consistent but
modest growth thereafter.
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Leveraging The Pineapple Express Brand
Create nationally branded chain of cannabis retail stores under the
"Pineapple Express" brand name as soon as federal laws allow*:
 Supported by anticipated Company-owned cultivation and
processing facilities.
 Featuring products from anticipated Company-owned
manufacturers.
 Expected 5 Year Growth to 100 Company-owned and 200
licensee-owned cannabis retail stores.
*As long as cannabis remains federally illegal our operations will be limited to investing in existing and new canna-businesses, leasing real
property to canna- businesses, consulting, product licensing, leasing and selling industry specific technology, and providing ancillary
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support services.
Strengthening The Brand
In Dec. 2016 Pineapple Express signed LOI to acquire the
business and assets of THC Industries, Inc. (“THC”), including
the web domain www.THC.com and the trademark “THC®” –
expected close early Feb 2016.
 Deep Market and Brand Affinity - THC has been an operating business in
California since 1996, making it one of the first internet based cannabis
related businesses in the nation.
 Branding Extension and Retail Presence - The acquisition includes the
THC.com URL address, the THC® branded clothing line, a clothing
distribution facility, and the rights to exclusively sell apparel – T-shirts,
Hats, Beanies, Pants, Shorts, Baseball Jerseys, Jackets, Sweatshirts, Polo
Shirts, and Sweat Pants displaying the THC® trademarked name and logo.
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Key Statistics
Pineapple Express Inc.
Stock Symbol: PNPL
Exchange: OTC Pink
Recent Price: $9.25 (1.28.16)
52-Week Range: $0.02 to $12.05
Shares Outst: 55.9M (9.16.15)
Market Cap: $517.M (1.28.16)
Fiscal Year End: Dec. 31
Industry: Business Services
Headquarters: Los Angeles, CA
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Industry Perspective
Two Explosive Growth Industry Targets
 Medical and Recreational Marijuana Stores Industry*
Stores that retail medical marijuana (by prescription only) and
recreational marijuana. The legal sale of recreational marijuana is
currently limited to the states of Colorado, Washington, Alaska, and
Oregon as well as the District of Columbia.
 2014 Revenue – $4bn
 Annual Growth 2010-2015 – 34.2%
 Employment – 74,222
 Businesses – 5,169
 Medical and Recreational Marijuana Growing Industry**
Establishments that grow marijuana for medical and recreational use.
 Revenue – $2bn
 Annual Growth 2010-2015 – 30.2%
 Employment – 405,498
 Businesses – 100,742
*Source: April 2015 IBISWorld Medical & Recreational Marijuana Stores in the US Market Research
**Source: April 2015 IBIS World Medical & Recreational Marijuana Growing Market Research Report
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Cannabis Industry In Context
By 2019, all of the state-legal marijuana markets combined will
make for a potential overall market worth almost $11 billion
annually.
 Medical marijuana is now legal
 Recreational use has been
in 23 states and the District of
approved in four states:
Columbia.
Colorado, Washington,
 The Medical and Recreational
Marijuana Stores industry has
a low level of market share
concentration.
 In 2015, the four largest firms
account for less than 10.0% of
industry revenue.
Alaska, and Oregon as well
as the District of Columbia.
 At least 10 states are
considering legalizing
recreational marijuana in
the next two years through
ballot measures or state
legislatures.
Source: The State of Legal Marijuana Markets 3rd Edition, 2015, ArcView Market Research,
Cannabis Industry Update Report, October 2015, Chardan Capital Markets
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Evolving Market Dynamics
 Marijuana is the fastest growing industry in the U.S.
 In 2014 Legal Adult Use sales began for the first time in Colorado and
Washington, adding $370 million in new sales dollars.
 In 2014 voters in two more states and Washington, D.C., approved Adult
Use measures, three states approved new medical use laws, and 11
states passed laws that allow for limited distribution of cannabidiol (CBD)
products, a non-psychoactive but potentially medically useful component
of cannabis.
 Maryland, New York and Minnesota passed new Medical Use laws in
2014, while states such as Illinois, Nevada and Massachusetts took
further steps to activate their markets by granting dispensary and
cultivation licenses.
 Eleven states passed CBD-only laws in 2014, including Florida, Utah and
Alabama.
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Source: The State of Legal Marijuana Markets 3rd Edition, 2015, ArcView Market Research
Select Market Sales
Colorado July 2015 sales of
$93.1 million, a record, up 13%
from June and 64% year-overyear with recreational sales
topping $54 million (before
sales and excise tax), and $38.5
million for medical marijuana.
Washington State retail sales
(before the 37% excise tax)
reached $36 million in
September 2015, a new
record since legal sales began
in July 2014.
Source: Cannabis Industry Update Report, October 2015, Chardan Capital Markets
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Market Growth
U.S. Marijuana Sales Estimates 2015 – 2018
 Five states now boast markets greater than $100 million, while
one additional state posted sales above the $50 million mark.
 Annual marijuana consumption in the US is growing between
6% to 8% annually.
Source: Marijuana Business Factbook 2014 - CannaBusiness Media,, The State
of Legal Marijuana Markets 3rd Edition, 2015, ArcView Market Research, The
National Survey on Drug Use and Health, 2014
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Market Outlook
 The Marijuana Policy Project and the Drug Policy Alliance,
along with their state level counterparts, have already
planned for legalization ballot initiatives in at least six states
in 2016, including an Adult Use initiative in California.
 Should an Adult Use legalization initiative pass in California
in 2016 the entire industry could rapidly DOUBLE in size.
 By 2020, ArcView Market Research (“AMR”) predicts that 18
states will have passed Adult Use legislation.
 Based on the existing markets, AMR projects that full
legalization of marijuana nationwide would result in $36.8
billion in retail sales, larger than the $33.1 billion U.S.
organic foods market.
Source: The State of Legal Marijuana Markets 3rd Edition, 2015, ArcView Market Research
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Pineapple Express Highlights
 Well positioned to capitalize on high growth Retail and
Growers markets.
 Operate both as an operating business and as a business
that invests in other entities.
 Enables us to quickly develop recurring and easily replicable
revenue sources and avoid large upfront investments in
infrastructure, escalating payroll costs associated with
expansion, and the years of initial losses often typical of
start- up companies.
 Strong competitive advantages include unique business
model, our exclusive proprietary technology, our employees’
and consultants’ years of experience in the business and our
key industry contacts.
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Favorable Industry Trends
In addition to the growing market and expected new state market
entrants, the trends occurring in both the Retail and Growers Markets
represent value drivers for Pineapple Express in executing our model:
 Innovative Delivery Systems: Healthier and easier alternative delivery
formats are rapidly gaining market share.
 Multistate Licensing: Strong national cannabis brands are finding ways to
emerge in a state-segmented market.
 QA/QC and Product Testing: Product potency and contaminant testing
requirements are to ensure consumer safety and new laboratories are
emerging to meet these needs.
 Brand Building: Cannabis brands are no longer hiding in the shadows and
the branding bar is rising fast.
 Changing Landscape of Cultivation: Licensed cultivation facilities are
becoming much larger and that’s creating opportunities and challenges in
meeting the needs of these new businesses and the fast growing demand
for legal cannabis.
Source: The State of Legal Marijuana Markets 3rd Edition, 2015, ArcView Market Research
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Policy Shifts Aid Banking and New Markets
Drug Policy Reform Moving Forward Nationally and in the States.
 The Department of Justice (DOJ) recently announced a policy shift aimed to
encourage banks to accept cannabis-related business accounts.
 Congress recently passed a law that prohibits the use of federal funds to
prosecute people who follow their state’s medical cannabis laws.
 The DOJ also issued a memo in late December 2014 to allow Native American
tribes to grow and sell marijuana within their territories as long as they follow
established federal guidelines.
 Senate Appropriations Committee, July 2015, passed bill to allow banks to
provide services to state-legalized marijuana stores. The Senate committee
approved three other marijuana amendments earlier this year -- allowing
Veterans Administration doctors to recommend marijuana to their patients,
prohibiting the DEA from undermining state medical marijuana laws, and
prohibiting the DEA from undermining state hemp research laws.
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Recent and Contemplated Transactions
 Jan. 2016, executed management and consulting agreement with Nature’s
Treatment of Illinois, Inc., which is engaged in the distribution of cannabis for
medical use in Illinois. Client will employ Pineapple Express’ industry first “Top
Shelf” inventory weighing, product securing, product display, and point-of-sale
system in the first half of 2016.
 Jan. 2016, executed purchase agreements for additional 3.78 Acres (total now
8.82 acres) in Desert Hot Springs and expands landlord footprint with plans to
rent approximately 125,000 sq. ft. of warehouse space to qualified cannabis
cultivating tenants (total now 150,000 sq. ft.).
 Acquisition of THC.COM - Popular Clothing Brand and Website, expected to
close early February 2016.
 Consummated Real Property Purchase Agreement and Subsequent Sublease
to Clonenetics Inc. in Desert Hot Springs, CA.
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Seasoned Management Team & Board
Matthew Feinstein – CEO, Chairman, and Co-Founder, has been actively involved in the cannabis
industry since 2013. At Pineapple Express, he manages sourcing investment opportunities, joint venture relationships,
and identifies acquisition targets. He is also responsible for assuring the various components of the company’s
portfolio either have or develop the necessary infrastructure to support the company’s future branded chain of
cannabis retail stores, cultivation centers, processing facilities, and products.
P. Vincent Mehdizadeh – Co- Founder, Senior Technology Advisor, has been a key force in the
cannabis industry since 2008. Today, he serves as a senior advisor at Pineapple Express subsidiary MJ Business
Consultants and assists with technology development.
Christopher Plummer – Chief Compliance Officer, Director, supports Pineapple Express in the area of
compliance, diligently overseeing, monitoring, and advising the company in its activities, behavior, and actions as relating
to the Securities and Exchange Commission (SEC). He regularly interacts with the company’s advisors, outside counsel,
executives, consultants, and staff in regards to compliance.
Theresa Flynt – VP of Business Development, oversees the development of new and existing businesses
that Pineapple Express consults for, in addition to assisting the company in its licensing and branding efforts. Ms. Flynt
advises Pineapple Express clients on their business models, development and growth, and assists with means and
methods of increasing profitability and cash flow. She is former VP of Operations for Hustler Hollywood.
Anya Mikhaylova – MJ Business Consultants Operations Director, has been actively involved in the
cannabis industry since 2014. At Pineapple Express’ subsidiary MJ Business Consultants, Ms. Mikhaylova oversees office
management and company bookkeeping. She is also instrumental in assembling client applications and registrations
throughout the nation.
Jaime Ortega – MJ Business Consultants, Project Manager, has been actively involved in the cannabis
industry since 2010. At Pineapple Express, he is responsible for business development opportunities at MJ Business
Consultants.
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For More Information
Company Contact:
Investor Relations Contact:
Matthew Feinstein
CEO/President/Chairman/Co-Founder
Pineapple Express, Inc.
1901 Avenue of the Stars, 2nd Floor
Los Angeles, CA. 90067
Office: 877-310-PNPL FREE
pineappleexpress.com
Scott Arnold
CorProminence LLC
377 Oak Street
Garden City, NY 11530
516 222 2560
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