Lyle A. Bogorad

PRESENTER:

1 Our Platform 2

3 4

5

Summary Market Analysis

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Marketing Strategy

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Table of Contents

Executive Management

Financial Plan

Introduction

3 Introduction

The legalization of cannabis has opened a new and promising market for many businesses.

Cannabis has emerged from a seedy underground marketplace of yesteryear to a legitimate business in the United States and other global economies.

Chromatic Clouds seeks to capitalize on this green market by providing an ecosystem that consists of an advanced, yet easy-to-use platform that will service cannabis entrepreneurs and freelances in their pursuit to build profitable and sustainable businesses. Chromatic Clouds offers its platform to principal industry members operating in all states where medical and/or recreational cannabis is legal, and globally, to ancillary industry product and service providers.

Chromatic Clouds is a cannabis ecosystem, connecting buyers, sellers, freelancers, and businesses, where participants must adhere to requirements for membership in order to conduct business within its platform.

At the core, Chromatic Clouds will provide a plethora of products and services to all tranches of the cannabis sector. Chromatic Clouds will partner with freelancers specializing in legal, compliance, and sales and marketing services who will connect and interface with cannabis clients.

Chromatic Clouds is a one-stop-shop for all things cannabis. Through webinars, online courses, one-on-one coaching, and consulting services, Chromatic Clouds’ ecosystem will host an interactive community with its in-house consultants, preferred group of partners, and experts in a variety of practice areas that service cannabis clients.

The Chromatic Clouds’ platform will provide a space for cannabis businesses, organizations, and consumers to connect with each other and offer goods and services to industry clients (B2B), to customers/patients (B2C), and between customers (C2C) in a variety of categories. It will also allow producers, wholesalers, retailers, and manufacturers to engage in trading thanks to Chromatic Clouds’ auction software. This will be critical to the reduction and liquidation of cannabis inventory.

4

Business Development

Today, a new freelance economy exists. Workers in this economy are becoming their own bosses. The transformative impact of the freelance economy cannot be understated. Over the last decade, there has been an erosion of the traditional workforce model where workers would enter a company at an entry-level position and remain there until retirement. This model is changing at an accelerated pace. Every business sector has witnessed the explosion of the new freelance economy. The cannabis industry is no exception. Still, as freelance entrepreneurs rapidly enter this field, a salient problem exists. They lack fundamental business expertise that is vital to sustain a profitable business. In other words, the art of knowing the “business behind doing business” is lacking. In order to maintain a profit, a freelancer must be knowledgeable about these business fundamentals. However, with the increased and competing demands of start-up businesses, freelance entrepreneurs struggle to remain focused on the fundamental, yet complex cornerstones of managing a business. Chromatic Clouds seeks to resolve this problem.

Our Platform Business Development

Chromatic Clouds will solve this problem by offering a forum where freelance entrepreneurs can have easy access to the “nuts and bolts” of building and sustaining a business; simply put, the “business behind doing business.” For example, Chromatic Clouds will offer business advice on the embryonic, early development stages of a business, its gradual development, acquiring entrepreneurial and leadership skills, raising capital, and exit strategies. Specifically, select Chromatic Clouds’ advisors will instruct freelancers on how to create pitch decks, business plans, and proof of concepts, as well as on the art of pitching business ideas to investors and venture capitalists. Additionally, Chromatic Clouds will connect freelancers with business opportunities as Preferred Providers on a contract base.

Our Platform Business Development

Legal, Compliance, and Regulatory Cannabis, laws and regulations are ever-changing as the industry is being transformed in individual states. Furthermore, cannabis regulations differ between states while remaining illegal under federal laws. Undoubtedly, the need for consistency is critical for cannabis businesses, entrepreneurs, and freelancers because it ensures reliability, and ultimately, sustainable profit. Failure to stay abreast of the rules and regulations can be detrimental to a cannabis business as it may suffer increased fines, and worse yet, loss of a license. Chromatic Clouds, through its network of in-house and Preferred Providers, will advise clients on the changing laws, rules, and regulations governing the cannabis industry in every state where cannabis is legal.

Through its ecosystem, Chromatic Clouds will connect businesses and freelance workers to its network of legal, compliance, and regulatory experts who will provide up-to-date information on the changing rules and regulations that govern the cannabis industry at every governmental level. Chromatic Clouds will also assist clients and start-up companies to navigate the highly regulated cannabis industry by providing crucial information on its website as well as consulting services offered by their Preferred Providers in different states.

Our Platform Legal and Compliance

7 This platform will be an ecosystem where Buyers and Sellers meet. Sellers will have the ability to open up their own stores and hold live inventory and charity auctions on a state of the art technological platform dedicated to the cannabis industry. It will be the Shopify, eBay, and Upwork of the cannabis industry. 

B2B Problem

The market has not yet defined a convenient, affordable, and comprehensive system with which to network with and

advertise to existent and potential players in the industry and sell to

them using auction software.

B2C Problem

No other website offers goods and services in all cannabis

industry- related categories in one convenient space for

consumers in multiple locations.

C2Problem

Chromatic Clouds offers users a reputable platform with which to expand their reach for both deals and clients and sell to them using auction software.

Our platform offers cannabis goods and services in all

categories via a user-friendly marketplace and allows for

sale through auction software.

Our platform solves this problem by offering a

platform where buyers bid for goods and services.

C2C Problem

No other website offers a way for consumers to sell to each

other using auction capabilities.

Our Platform Sales and Marketing

8 Summary

$ 400,000 The cost to start-up our company

$ 140,000 Platform Design &

Development, Assets

$ 160,000 $ 100,000 Operating Costs,

including hardware Marketing Costs

By investing primarily in developing a quality platform, marketing, and business set-up, the Company expects to penetrate the market and establish a substantive subscription base within a one-year time frame.

*based on 2 years of expenditures

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Market Analysis Cannabis Legalization 30 states have already

legalized cannabis

ü  The biggest driver of growth in coming years is the legalization of marijuana in some forms by more states.

ü  In 2015, legal cannabis sales in the U.S. reached $5.7 billion, a 23% jump from the year before.

ü  In 2016, legal cannabis sales in the U.S. reached $6.7 billion, a 17.5% jump from the year before.

ü  Legal cannabis sales hit $9.7 billion in 2017. That represents an unprecedented 33% increase over 2016.

10 Market Growth

Report from cannabis industry analysts Arcview Market Research, in partnership with BDS Analytics predicts the entire legal cannabis market to reach $24.5 billion in sales – a 28% annual growth rate

by 2021 – as more states legalize cannabis for recreational use and existing markets mature.

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2018

Bill

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$

Medical Recreational

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2019 0

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2020 0

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2021

38% 28% 22% 18%

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10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

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2016 2017 2018 2019 2020 2021

billi

on $

Dispensary/Store Sales Additional Economic Impact of Dispensary/Store Sales

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The increase in retail sales over the next five years will provide a substantial economic boost for the United States. The total economic output from legal cannabis will grow 150% from $16 billion in 2017 to $40 billion by 2021, according to the “US Legal Cannabis: Driving $40 Billion Economic Output” report.

U.S. Cannabis Retail Sales and Economic Impact

Copyright 2018 Arcview Market Research in partnership with BDS Analytics. All rights reserved 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000

Pharmacists

Cannabis Industry

Telemarketers

Dental Hygenists

Bakers

Massage Therapists

Number of Employees

To get another idea of just how big the marijuana industry has become, look to employment numbers. The industry employed 121,000 people in 2017. If cannabis continues its growth trajectory, the number of workers in that field could reach 292,000 by 2021, according to BDS Analytics.

Source: U.S. Bureau Of Labor Statistics Employment Projections: 2014-2024

12 Competition

WEEDMAPS https://weedmaps.com/

Marijuana dispensary finder with over 7,750 listings throughout the U.S., Canada, and Europe.

LEAFLY https://www.leafly.com/

Leafy is a cannabis information resource for finding the right strains and products. Services include: cannabis finder,

online store, branding, doctors’ portal.

GREEN MARIMBA https://www.greenmarimba.com/

Green Marimba is an e-commerce platform for marijuana wholesalers and dispensaries.

365 CANNABIS http://d365cannabis.com/

365 Cannabis includes a build-in eCommerce solution allowing your customers to place orders online and receive

via delivery or collect in dispensary.

13 SWOT Analyses •  Targets many ancillary businesses, which are low risk customers •  Goods and services deal in a much more comprehensive list of categories than do

competitors •  Offers a B2B, B2C and C2C platform - also in a comprehensive list of categories •  Functions as a one-stop resource in the cannabis industry, thereby delivering a more

convenient, efficient user experience

STRENGTHS

Positive Negative

Internal

External

Strengths

S

Weaknesses

W

Threats

T

Opportunities

O

•  Obstacles related to advertising opportunities •  Limited initial online presence •  Limited product / service selection due to an industry-specific focus

WEAKNESSES

•  High growth industry •  Trend toward greater cannabis legalization, including the use of cannabis for

recreational purposes •  Introduction of a new service to the industry •  Flexible expansion-ready platform

OPPORTUNITIES

•  Enforcement of federal law, uncertainty •  Established indirect competitors in the market •  Competition with the black market •  Indicators of a slowed global economy

THREATS

14 Marketing Plan

Website with detail information

AdWords Advertising and articles Online Publications

Social Media Special Events Email Marketing

Business events and conferences. Business and industry associations.

Mass Mailing using MailChimp or other services, noteworthy monthly newsletter.

LinkedIn, Facebook, Instagram.

Testing various keywords to select familiar to topic and at the same time acceptable by Google’s algorithm.

DopeMagazine, Marijuana Business Daily, Sensi,Ganjapreneur, High Times.

SEO optimization. Maintaining a high ranking in the Google and Bing/Yahoo search engines.

For a detailed marketing strategy please contact info@chromaticlouds.com.

15 Advertising Strategy

Offers solid and growing networks with a large reach including local, national, and

international distribution under a Pay Per-Click pricing model.

LinkedIn, Facebook, Google AdWords

Women Grow is now the largest national

network of cannabis professionals with Monthly Events for women & men in 45 cities

across the US & Canada. CannaGather is New York’s largest cannabis industry

community. MBA is one of the leading national b2b organizations in legal cannabis.

Women Grow, CannaGather, The Marijuana Business Association

Publications with both print and digital media with increased web traffic and growing social media platforms.

Dope Magazine, MJBiz, Sensi, Ganjapreneur

Offering targeted Pay Per Click ads that display across their network of cannabis related websites, 420 Click can be a great option for getting service in front of an interested audience, and only be charged when someone clicks an ad.

420 Click

Three most effective strategies for legal cannabis companies are direct marketing at industry conferences and other events, building communities around cannabis-related concerns such as health and wellness and aggregating online cannabis publishers, which don’t raise any legal concerns.

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Lyle Bogorad, Esq. Founder and President

Confidential Experience: 15+ years

Executive Team

Ann Marie James, Esq. Vice President

Confidential Experience: 15+ years

James Vena Lead Consultant and Chief

Development Advisor

Confidential Experience: 30+ years

17 Projected Profit and Loss

For pro forma financial statement and future projections, please contact info@chromaticlouds.com.

18 Projected Cash Flow

For pro forma financial statement and future projections, please contact info@chromaticlouds.com.

Thank You