This 2019 investor deck from Level Brands (LEVB) serves as a transition document following the company's December 2018 acquisition of cbdMD. Unlike a typical startup seed deck, this is a public company presentation designed to justify a 'transformational acquisition' to shareholders and the broader market. The deck highlights a shift from general brand licensing to a focused play in the then-booming CBD industry. With 71% insider ownership and a $82M market cap at the time of the deck, the narrative leans heavily on the celebrity branding of Kathy Ireland and aggressive marketing milestones,…
Key takeaways
- The company completed its IPO on the NYSE American in November 2017, as stated on slide 3.
- A transformational acquisition of cbdMD was completed in December 2018, shifting the company's primary goal to becoming the #1 CBD company (slide 3).
- The product line is extensive, featuring 78 SKUs including 24 oils, 18 topicals, and 13 pet products (slide 11).
- Marketing is a core pillar, highlighted by a Times Square advertisement on December 31, 2018 (slide 15).
- Financials show 2018 pro-forma sales of $15.9M and a cash position of $4.3M as of September 30, 2018 (slide 17).
- The acquisition agreement includes aggressive revenue earnout hurdles, targeting $300M in total revenue by 2023 (slide 17).
- Insider ownership is notably high at 71%, indicating significant founder/management skin in the game (slide 17).
- The deck omits a traditional 'Problem' slide, assuming the audience is already sold on the growth of the CBD market (slide 7).
Executive Summary and Corporate Identity
Slide 1: Title Slide
The deck opens with the corporate identity of Level Brands (LEVB) and its new subsidiary, cbdMD. The header explicitly mentions 'NYSE American: LEVB' and the date 'January 2019.' The subtitle, 'CREATING VALUE & BRAND AWARENESS,' sets a tone focused on marketing and market presence rather than technical innovation.
Slide 3: Level Brands’ History
This slide provides a timeline of the company's evolution. It notes the founding in 2015 by Kathy Ireland and Martin Sumichrast. Key milestones include the expansion into licensing in 2016, the IPO in November 2017, and the 'transformational acquisition' of cbdMD in December 2018. The slide claims cbdMD products are in 700 retail outlets and states a clear objective: 'build cbdMD into the #1 CBD company.' A Forbes cover featuring Kathy Ireland is used as a visual trust signal.
Slide 5: Innovative Licensing & Brand-Management Business Units
Level Brands details its existing business structure, focusing on 'instant brand recognition.' It lists four specific brands: kathy ireland Health & Wellness, I’M1 (Ireland Men One), EE1 (Encore Endeavor One), and Beauty & Pin-Ups. The text emphasizes creating brand awareness and accessing new markets for consumer products in health, wellness, fashion, and beauty.
The CBD Market and Product Strategy
Slide 7: What is CBD?
This is an educational slide, likely intended for investors unfamiliar with the cannabis sector in 2019. It defines Cannabidiol (CBD) as a compound from hemp with 'significant beneficial properties' and explicitly states it is non-psychoactive, meaning customers will not experience a 'high.' The visuals include a hemp field, a lab setting, and a finished bottle of cbdMD oil.
Slide 9: From Seed to Sale
This slide outlines the operational workflow: Product Dev > Formulation > Marketing. It claims to start with 'organic, domestically-sourced hemp' and follows an 'extensive production process.' The final pillar, Marketing, reiterates the strategy of targeting the 'masses, not the few,' signaling a move toward mainstream retail rather than niche dispensaries.
Slide 11: Innovative Products
This is the core 'Product' slide. It lists 78 total SKUs, broken down into 24 oils, 6 capsules, 2 gummies, 9 vape oils, 18 topicals, 6 bath bombs, and 13 pet products. The visual shows a wide array of branded packaging, emphasizing that the company has already achieved significant product depth and variety. The mention of '100% natural, hemp-derived' products serves as a quality claim.
Marketing Execution
Slide 13: Robust Marketing Campaign (Print)
Level Brands showcases its media presence with full-page spreads and advertisements in 'Entrepreneur Magazine' from September and November 2018. The slide uses these clippings to prove market validation and the 'Ahead of the Curve' positioning of the cbdMD brand. It highlights a 'Superior All-Natural Relief' message.
Slide 15: Robust Marketing Campaign (Out-of-Home)
This slide features a large photograph of a cbdMD advertisement in Times Square, dated December 31, 2018. The caption claims they were the 'First CBD company to advertise in Time Square.' This is presented as a major milestone in achieving the 'mass market' awareness mentioned in earlier slides.
Financials and Governance
Slide 17: Investor/Corporate Summary
This slide contains the most critical data for an analyst. It lists 25.4M shares outstanding and a high insider ownership of 71%. The market cap is cited at $82M with a recent price of $3.24. Financial health is shown via $15.9M in 2018 pro-forma sales, $0 long-term debt, and $4.3M in cash as of September 30, 2018. The right side of the slide details 'Revenue Earnout Hurdles,' showing a tiered share release structure tied to reaching $300M in cumulative revenue by 2023.
Slide 19: Contact Information
The deck concludes with a 'Thank you' and contact details for Investor Relations at RedChip Companies, specifically naming CEO Dave Gentry. It provides a phone number and email addresses for both the IR firm and Level Brands.
What Level Brands Does Well
The deck excels at establishing credibility through association . By leaning on the Kathy Ireland brand and the NYSE listing, it separates itself from the 'wild west' reputation of the early CBD industry. The product depth is also impressive; showing 78 SKUs suggests a mature supply chain and a ready-to-scale retail strategy. Furthermore, the Revenue Earnout Hurdles on slide 17 are a transparent way to show investors how management is incentivized to perform, linking their personal gain (shares) directly to top-line growth.
What is Missing from the Deck
Despite being a public company deck, there are significant omissions. There is no competitive analysis ; in 2019, the CBD market was becoming incredibly crowded, yet the deck does not explain how cbdMD wins against Charlotte's Web or other early leaders. There is also a lack of unit economics . While we see pro-forma sales, we don't see gross margins or the cost to acquire a customer (CAC). Finally, the regulatory risk is largely ignored. Given the shifting legal landscape of hemp and CBD in 2019, a slide addressing FDA compliance or legal hurdles would have been standard for the sector.
Lessons for Founders
Founders can learn the power of milestone-based storytelling . Level Brands doesn't just say they are good at marketing; they show a Times Square billboard. They don't just say they have products; they list 78 SKUs. For a startup, this level of specificity is much more persuasive than vague promises. Additionally, the use of insider ownership percentages is a strong signal of confidence. If you are pitching and your team owns a significant portion of the company, highlighting that 'skin in the game' can be a powerful way to align yourself with potential investors.
Frequently asked questions
- What was the primary purpose of this deck?
- This deck was created for investors following Level Brands' acquisition of cbdMD. It aims to rebrand the company in the eyes of the public market, moving from a general licensing firm to a specialized CBD powerhouse. It focuses on the scale of the new product line and the marketing reach already achieved to justify the $82M market capitalization.
- How does the company leverage celebrity involvement?
- Slide 3 and 5 highlight that the company was co-founded by Kathy Ireland. It uses her 'Supermodel Supermogul' Forbes status to lend credibility to their 'kathy ireland Health & Wellness' brand. This suggests a strategy of using established celebrity trust to bypass the typical trust-building phase required for new consumer health products.
- What are the specific financial targets mentioned?
- Slide 17 outlines 'Revenue Earnout Hurdles.' To trigger share releases, the company aimed for $20M in revenue in 2019, $40M in 2020, $80M in 2021-2022, and $160M in 2022-2023. This total target of $300M provides a clear roadmap for what management considers 'success' for the acquisition.
- What is the distribution strategy for the CBD products?
- According to slide 3, the products were available in 700 retail outlets in the US as of January 2019, alongside an 'expanding e-commerce channel.' Slide 9 reinforces this by stating their goal is to market CBD products 'for the masses, not the few,' implying a high-volume, broad-retail approach.
- What critical startup metrics are missing from this deck?
- Because this is a public company deck, it lacks typical venture metrics like Customer Acquisition Cost (CAC), Lifetime Value (LTV), or a detailed 'Burn Rate.' It also lacks a slide dedicated to the competitive landscape, which is unusual for a sector as crowded as CBD was in 2019.






