Medicine Man Tech Pitch Deck Teardown: A Publicly Traded

Introduction and Market Context

The Medicine Man Technologies investor update from December 2017 serves as a snapshot of a company attempting to professionalize the 'picks and shovels' side of the cannabis industry. Unlike many startups seeking seed funding, Medicine Man was already a public entity on the OTCQB (MDCL) at the time of this presentation. The deck is structured to validate their multi-pronged revenue model to public market investors, focusing on their transition from a pure consultancy to a diversified product and services firm.

Slide 1: Title Slide

The title slide establishes the corporate identity with the Medicine Man Technologies logo and the date, December 2017. Notably, it includes the ticker symbol 'OTCQB: MDCL' in the bottom left corner. This immediately signals to the reader that this is an investor update for a publicly traded company rather than a private placement deck. The branding is clean, utilizing a green and white color palette consistent with the cannabis sector.

Slide 3: At a Glance

This slide provides a high-level summary of the company’s vitals as of November 30, 2017. It defines the company as a 'leading cannabis consultancy and product brand warehouse.' Key metrics listed include a market cap of $37M, a share price of $1.70, and 21.8M shares outstanding. The company reported 21 employees and year-to-date revenue of $2.351M. A footnote mentions that the market cap and shares outstanding are 'Adjusted to reflect recent acquisitions,' indicating an active M&A strategy during the 2017 fiscal year.

Slide 5: Core Services

Slide 5 outlines the four pillars of the company's value proposition. Consulting Services focus on helping clients secure state-issued operating licenses. Cultivation Max is described as a methodology to help existing operators optimize facilities. Three A Light is a cultivation tutorial for marijuana growing. Finally, Success Nutrients is a nine-part product line required to maximize the results of the other services. This slide effectively demonstrates the company's 'full suite' approach, showing how they capture value at different stages of a grower's lifecycle.

Slide 7: Cannabis Market Facts and Figures

This slide provides the macro-economic justification for the business. It notes that 29 states and D.C. allowed medical cannabis at the time, with eight states having approved adult-use legalization. It highlights Colorado’s $1.3B in FY 2016 sales as a benchmark. Citing Arcview Market Research, the slide points to a 30% growth in North American sales in 2016 ($6.7 billion) and projects the market to reach $20.2 billion by 2021. This data is used to illustrate the massive tailwinds supporting the company's expansion.

Slide 9: Cultivation Max

This slide dives deeper into the 'Cultivation Max' service. It lists four key areas of improvement: Yield, Consistency, Quality, and Efficiency. The monetization strategy is explicitly stated: Medicine Man takes a portion of the 'improvement delta' (the increase in value created by their intervention) and generates recurring revenue through nutrient sales. As of July 2017, the company had four clients in this program, with the first two expected to generate revenue by the end of 2017. The imagery shows a large-scale cultivation facility and a staff member holding harvested plants to visualize the scale of operations.

Slide 11: Success Nutrients

Focusing on the product side of the 'brand warehouse,' Slide 11 describes the Success Nutrients line. It is positioned as a 'key and required component' for the Three A Light methodology. The slide notes that the product is carried in several Colorado supply stores, including 'Way to Grow' and 'Cultivate.' It also mentions an initial California presence via Pacific Coast Hydro and plans for a Canadian footprint. This slide represents the company's shift toward scalable, physical product sales that aren't as labor-intensive as consulting.

Slide 13: Business Highlights Transition

Slide 13 is a simple transition slide titled 'Business Highlights.' In the context of the full 16-slide deck (of which 8 are analyzed here), this likely preceded specific case studies or recent corporate milestones. It maintains the consistent branding seen throughout the presentation.

Slide 15: Management Team

The final slide in this set introduces the leadership. Brett Roper (CEO) is credited with managing SEC filings and industrial real estate. Andy Williams (Chairperson) is highlighted as a 'lifelong entrepreneur' who launched Medicine Man in 2009. Joshua Haupt (Chief Cultivation Officer) is perhaps the most strategic addition, described as the 'Steve Jobs of Marijuana.' His inclusion follows the June 2017 acquisition of his companies, Pono Publications and Success Nutrients. The slide emphasizes that his book, 'Three A Light,' has global reach, providing the company with significant intellectual property and industry credibility.

What Medicine Man Tech Does Well

The deck excels at explaining a complex, multi-layered business model. By breaking the company down into 'Consulting,' 'Methodology,' and 'Products,' the founders show how they avoid the 'one-off' nature of consulting by attaching recurring product sales (nutrients) to every engagement. The use of the term 'brand warehouse' is a clever way to describe a holding company model that is focused on the supply chain rather than retail dispensaries.

Furthermore, the inclusion of specific market cap and revenue figures (Slide 3) provides immediate transparency. For a company trading on the OTCQB, which can sometimes be perceived as opaque, providing clear share counts and YTD revenue helps build investor trust. The 'improvement delta' monetization strategy (Slide 9) is also a highlight, as it aligns the company's incentives with those of the growers, making the service an easier sell to potential clients.

What is Missing from the Deck

The most glaring omission in this 8-slide selection is a detailed financial breakdown or a forward-looking projection. While YTD revenue is mentioned, there is no information on margins, burn rate, or profitability. For a company with 21 employees and a $37M market cap, investors would typically want to see a path to EBITDA positivity.

Additionally, there is no 'Ask' slide in this selection. While this may be because it is an 'Investor Update' for a public company, most decks of this nature still include a slide regarding future capital needs or the intended use of proceeds from any potential secondary offerings. The deck also lacks a competitive analysis. While it claims to be a 'leading' consultancy, it does not name or differentiate itself from other cannabis consulting firms that were emerging in the 2017-2018 period.

Founder Takeaways: What to Copy

The 'Picks and Shovels' Strategy: Medicine Man avoids the direct risks of plant touching (in some jurisdictions) by focusing on the technology, nutrients, and expertise required to grow. Founders in highly regulated industries should look at how they can provide essential infrastructure rather than just the end product. · Methodology as a Lead Magnet: By owning the 'Three A Light' methodology and book, the company creates a natural marketing funnel. People buy the book, try the method, and then realize they need the 'Success Nutrients' to get the best results. This is a classic 'Razor and Blade' model applied to agriculture. · Clear Ticker and Exchange Info: If you are a public company, your ticker and exchange should be on the cover and the summary slide. Medicine Man does this perfectly, ensuring there is no confusion about where the stock is traded. · Incentive Alignment: The 'improvement delta' model is a powerful way to close deals. Telling a client 'we only make more money if you make more money' is one of the most effective sales pitches in B2B consulting. · Validating the 'Guru': Bringing in Joshua Haupt and labeling him the 'Steve Jobs of Marijuana' gives the company a face and a brand. In a nascent industry, having a recognized expert on the management team provides a significant competitive advantage in terms of PR and perceived authority.