HempCBD Investor Magazine Issue 2 - February 2020 | Page 62

HCI: Your revenue increases in Year 1 from $9.4M to $570.2M in Year 5 and Adjusted EBITDA increases in Year 1 from $2.9M to $334M in Year 5. Do you feel your estimates are aggressive? If not, why so?

Q

A

EP: We have PO's and sales to support our estimates.

HCI: After you scale, over the next 5 years estimated Adjusted EBITDA Margins are approximately 59%. How do you plan on obtaining such a high margin? How do you plan on maintaining and increasing margins? Are you seeing price contractions in the market?

Q

A

EP: Because we are vertically integrated and the volume we expect to obtain, we are poised to take advantage of price contraction.

HCI: I see you have $29.?M in Land, Licenses, and Other. Does Other include any intellectual property or patents?

Q

62