INVESTMENTS
FOCUSED M&A
INVESTMENT STRATEGY
HANDS ON APPROACH
Nabis Management’s hands-on approach will assist investee companies enhance their operational pedigree
STRATEGY
Investments through combination of Cash & Shares along with incentive bonuses
ALIGNMENT
Strong preference for sellers to take a significant portion of the consideration in the form of equity—want sellers to be aligned with existing shareholders
THE CRITERIA
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Positive EBITDA, vertically integrated operators in limited license states with large addressable markets
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Emphasis on operations that add material EBITDA within 12 months with enhanced access to capital and Nabis’ value add approach on operations and brand consistency
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Identifying proven operators with good expertise to add value to a consolidation strategy
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Focused on MSO’s (Multi State Operators) with strong Brand traction
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Pharma grade Cultivation, Extraction, Dispensaries and other addressable operations
CASE STUDY | ARIZONA
3rd largest
medical cannabis market in the US
Expected 25%
patient growth
10% cap
on number of allowable dispensaries of the states total pharmacies
Legal Status: Medical
Estimated consumption rate: 7%+
Estimated medical spending: $630 Million
Source: Arcview Market Research & BDS Analytics
CASE STUDY | CALIFORNIA
Largest cannabis market in the US
License obtainment is process oriented versus competitive
~1800 license holders in California with 13 companies holding 10% of the licenses
Aggressive enforcement by state of illegal operators
Existing opportunity for sophisticated and mature operators
Legal Status: Medical and recreational
Estimated consumption rate: 10.7%+
Estimated medical spending: $3.4 Billion
FUTURE GROWTH TO OTHER MARKETS
MICHIGAN
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Medical & recently Recreational legal
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Is one of the largest medical markets
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in the US
MASSACHUSETTS
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Recreational is legal with sales just recently starting
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Favorable, workable regulations has lead to smooth roll-out
NEVADA
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Fastest roll-out of recreational use to date
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Demand far exceeded expectation
The global legal marijuana market is expected to reach USD 146.4 Billion by end of 2025
Grand View Research, Inc. April 2018