Retail Expansion

By the end of 2022, we anticipate that 50 additional cities in California will pass retail cannabis ordinances.

Retail Opportunities in California

State cannabis law allowed local control, resulting in more than 80% of local governments rejecting cannabis retail in their local community in the market's first two years. California is the largest cannabis consumer market in the U.S., but out of 482 cities in California, only 110 allow cannabis retail. This leaves the state's cannabis market at a fraction of its long-term potential. In fact, HDL's breakdown of the state can be seen in the county breakdown image.

By the end of 2022, we anticipate that 50 additional cities in California will pass retail cannabis ordinances. By the end of 2024, we anticipate that a majority of the 482 California cities will allow cannabis retail businesses. Legal cannabis sales in California will exceed $6B in 2022 and will likely approach $10B in 2024.

Local governments are now inviting applicants into retail zones through either a competitive application process or a joint development agreement. This leaves cannabis operators and investors with a window of opportunity to expand the retail footprint while Federal law and deeply nuanced local markets frustrate large competitors from entering.

Learn how to become a cannabis investor and fund the future of California cannabishere.

• ~247employees and growing
• 250,000visits annually per site
• $1Mcannabis tax contributions, per site
• 90+ yearscannabis experience

Retail shopping center foot traffic is decreasing, but our retail expansion methodology is turning that around. We increased foot traffic in Union Landing Shopping Center; with our extensive hours of operation and 7-minute average transaction time, we are able to maintain a consistent flow of traffic – for our customers and our neighbors. This is shown most dramatically in a case study of our Union City location. Overall traffic is still down from 2019 due to COVID, but after we opened traffic is closer to 2019 numbers.Our store opening and method of keeping heightened foot traffic has a lot to do with the additional ~80,000 customers at this shopping center.

• Compared to the same months in 2018-2019, from September 2020 – March 2021, monthly traffic was down ~30%.
• In April, May, and June 2021, numbers were down ~15%.
• After the store opening, July and August 2021 was only down 6% from July and August pre-COVID.
• And traffic has overall increased 10% from June's numbers, which has historically been flat.

Traffic

30,000 ADT at Site

Population

60,000+ (Trade Area)

Median Income

$45,000+ (Trade Area)

Lot Size

30,000+ (Trade Area)

Building Area

Approximately 3,500 – 4,500 sq ft

Minimum Parking Required

25 parking spaces

Preferred Sites

Dynamic, high activity areas near retail mass, freeway locations, major intersections, and commercial shopping center pads

Signage

Prominent Pylon, or monument on major arterial

Zoning

Permitting 6AM – 10PM hours of operation, 7 days a week

Deal Structure

Purchase or Lease (with option to purchase)

• 77+ yearsexperience in cannabis
• 0 incidentsof security across all stores
• 2×as many security cameras as required by the State
• 24 hoursecurity on site and offsite monitoring
• Competitiverental rates
• Traditional Bankingsupports us
• ~3 Milliontransactions since opening
• No TItenant improvement allowance needed

Retail West is our preferred vendor.

Employee Benefits

• 7 paid holidays annually
• Medical, Dental, and Vision Insurance Coverage
• LifeMart Employee Discount Membership
• Employees trained in CPR, First Aid, and use of fire extinguishers
• 401K Savings Plan with Life Insurance Offering
• Competitive starting hourly rates
• Employee Recognition Program
• Leadership Training via HR University Program
• Employee Product Discount
• Employee Assistance Program (EAP) as a resource

We believe in adding value to our local communities by supporting local non-profit organizations and providing educational opportunities to our employees, customers, and residents. This also extends to supporting neighboring local businesses with our store's regular business needs, i.e. printing services, collaborations, etc. Ultimately we are store operators, not license aggregators. When we apply for a new retail location, we immediately start exercising our licenses upon local approval – collecting taxes and revenue – and set upon proving our best-in-class retail experience. This has been shown repeatedly in our speed to open. Grupo Flor does not collect cannabis licenses to sell them for our own profit, we earn cannabis licenses to bring cannabis retail to new municipalities of California. We exclusively plan to own and operate only $10M+ GAR locations.

The Weed For Warriors Projectis a social justice lifestyle brand supporting holistic rehabilitation for veterans through community-based projects, proactive care advocacy, cannabis education and compassion. WFWP urges change for the empowerment of the people and Grupo Flor has supported their effort since 2020. We have an annual schedule with WFW to support a monthly donation to our veterans, circulating throughout our network of retail stores.

Upcoming WFW Days: Please bring your California State ID, Veteran ID, and cannabis medical recommendation with you to receive a WFW bag.

2023 Dates pending

• 1,400+ SKUslargest selection in California
• 7.5 minuteaverage store transaction time
• 2.5 minuteaverage curbside transaction time
• 88 daysfrom local approval to open doors
• 100%hire locally
• Weeklyin person brand demonstrations
• Wellness Educatoron site for customer consultations
• Customer Service Educatorfull time on staff
• 60%of the business is women run
• 90%of managers are female
• 60%of our customers are 35+ years old
• 15%of our customers are 65+ years old

We have a Retail Expansion team dedicated to finding the most strategic locations, which enables us to open with little to no TI required from landlord and therefore pay very competitive rental rates. First and foremost, we pick the location strategically — population-dense with high visibility and traffic, and a limited number of local licenses to control competition.