Yield Growth Corp.

Integrating Cannabis into the Wellness and Cosmetics Industries

This profile is part of a paid investor education campaign.*

Overview

Yield Growth Corp. (CSE:BOSS) is a cannabis asset growth corporation with assets in media, technology and products. The company primarily acquires, develops, markets and sells wellness and cosmetic products through their wholly-owned subsidiary Urban Juve Provisions Inc. under the brand Urban Juve.

Urban Juve is responsible for creating the company’s Ayurveda-inspired wellness brand that offers hand-crafted, daily-use cosmetic and therapeutic products. Their products are sold directly to consumers through their e-commerce platform and will be available in retail stores across Canada. Yield Growth Corp. also licenses its products, intellectual property (IP) and technology to companies around the world, including CROP Infrastructure Corp. (CSE:CROP,OTC:CRXPF), who has acquired the exclusive right to distribute proprietary cosmetic and therapeutic products in Italy for a period of three years.

To date, Yield Growth Corp. has developed 50 hemp- and cannabis-based products to sell under their Urban Juve brand, including anti-aging serums, bath salts, pain patches and antihistamines and more. Two of the 50 products that have been developed are available for purchase on the company’s e-commerce platform and the remainder of their products will be rolled out in four phases.

Yield Growth Corp.’s second subsidiary, Thrive Activations Inc., was created with the intent to provide technology solutions to businesses looking for a competitive advantage. To meet this goal, Thrive offers technology advisory and marketing services, among others, to businesses in Vancouver, British Columbia.

Yield Growth Corp.’s management team is comprised of industry leaders with experience at major retail brands such as Skechers USA Inc. (NYSE:SKX), Aritzia LP (TSX:ATZ), PepsiCo (NASDAQ:PEP) and the Coca-Cola Company (NYSE:KO). Heading the team is Yield Growth Corp. President and CEO Penny Green, who is the co-founder of Merus Labs Inc.(TSX:MSL), which was sold in July 2017 for approximately $342 million, and the co-founder and former President of Glance Technologies (CSE:GET), which obtained a $480 million market cap valuation under her leadership.

Company Highlights

  • Operating under a B2C and B2B business model.
  • Global cannabis market expected to surpass $31 billion by 2021.
  • Global wellness market reached $4.2 trillion in 2017.
  • Developed 50 unique hemp- and cannabis-based wellness and cosmetic products.
  • 26 Health Canada product registrations have been completed to date.
  • 11 US patent applications filed to date.
  • CROP is a strategic partner that provides the company with exposure in Italy and the US.
  • Led by an experienced management team that has worked with big-name retail brands from across the globe.

The Global Cannabis and Wellness Markets

The global cannabis market is expected to surpass $31 billion by 2021. A lot of the growth is being driven by the increasing number of countries around the world legalizing medical and recreational cannabis and the research being conducted into CBD. While a lot of the attention of the recreational market is looking toward developing edible cannabis delights, there is an equal emphasis being placed on the plant by the medical community.

As more research is conducted on the potential benefits cannabis has to offer, the wellness industry is looking at ways to incorporate that research into their cosmetics and therapeutics sectors. In 2017, the global wellness market reached $4.2 trillion. Within that, $1.08 trillion is attributed to the personal care, beauty and anti-aging sector and $575 billion is attributed to the preventative and personalized medicine and public health sector. With the legalization and development of the global cannabis market, analysts are expecting these sectors to continue performing well in the coming years.

The US Farm Bill

In December 2018, The US Senate passed a five-year farm bill that renewed agricultural subsidies and food aid for low-income families. While the bill predominantly focused on agriculture in the industry as a whole, there was one section that the US cannabis industry paid close attention to. There was a provision included in the bill that would make hemp a legal agricultural commodity.

With the passing of the bill, hemp will be removed from the federal list of controlled substances. The passing of the bill will enable hemp companies to sell their wellness products in stores across the US. However, formal regulations have not been formulated or passed for moving hemp across state lines, which will limit the sale of hemp and hemp-based products across state lines.

The Yield Growth Corp. Business Model

Yield Growth Corp. operates under a B2C and B2B business model. The company develops, markets and sells cannabis and wellness-related assets and technology solutions through their e-commerce platform and through retailers throughout Canada.

Yield Growth Corp. also licenses its products, IP and technology to other companies across the world while providing systems, processes, framework and support to their licensing partners. Additionally, the company provides businesses with additional technology, media and marketing services.

Urban Juve

Yield Growth Corp.’s wholly-owned subsidiary, Urban Juve, is responsible for creating the company’s modern, Ayurveda-inspired wellness brand that offers hand-crafted, daily-use cosmetic and therapeutic products. Each product is made with cannabis sativa, hemp root oil or hemp seed oil, high-quality essential oils and all-natural ingredients.

Ayurveda wellness

A main proponent behind Urban Juve is based on the ancient medical knowledge of Ayurveda, one of the world’s oldest medical systems that originated in India over 5,000 years ago. Ayurveda is centered around the idea of interconnectedness among people, their health and the universe as well as the body’s constitution and life forces. The practice emphasizes good health through the prevention and treatment of illness through lifestyle practices and the use of herbal remedies.

Yield Growth Corp. has tailored their products using these principles. The company has developed three body bios that are tailored for a person’s body biology. Additionally, each product is infused with cannabis sativa hemp seed oil and hemp root oil, which contain antioxidants, essential amino acids, vitamins and minerals to help balance the skin.

Products

Yield Growth Corp. has developed approximately 50 cannabis- and hemp-based cosmetic and therapeutic products under their Urban Juve brand. The products will be launched in four phases. Phase 1 will launch 12 cosmetic products and will include moisturizers, daily ritual oil, face mists, an anti-aging serum, a deodorant and lip balm. To date, the company has launched the lip balm and an anti-aging serum and both products are available for purchase on Urban Juve’s website.

Phase 2 will initiate the launch of 10 additional cosmetic products, which will feature bath salts, face masks, lip gloss, a facial cleanser and face oil. Phase 3 will launch seven products, two of which will be food-based, one cosmetics-based and the remaining four will be natural health products. Finally, Phase 4 will initiate the launch of 16 products that are currently under development.

Yield Growth Corp is also looking into developing a variety of additional products, including eye cream, body wash, facial exfoliant, hand sanitizer, beard oil, a pain patch and antihistamine, among others.

Urban Juve R&D

Yield Growth Corp.’s R&D division at Urban Juve is tasked with not only developing new products, but also designing packaging, manufacturing and testing their products and preparing them to be displayed on the company’s e-commerce platform. To date, the R&D division at Urban Juve has completed 26 Health Canada product registrations and has filed 11 patent applications in the US.

Strategic Partnerships

CROP Infrastructure

In June 2018, Yield Growth Corp. signed a definitive licensing agreement with CROP Infrastructure Corp. for US distribution rights and for the exclusive Italian rights to Yield Growth Corp.’s proprietary cosmetic and therapeutic products that can be infused with cannabis. Under the terms of the agreement, CROP can infuse high-CBD and low-THC cannabis into Yield Growth Corp. subsidiary Urban Juve’s products and exclusively distribute them in Italy for three years.

Urban Juve will be responsible for creating customized branding and labelling of its products for CROP. CROP also obtained non-exclusive rights to distribute a line of hemp root oil-based Urban Juve products in California and Washington.

“We are thrilled to be aligned with CROP Infrastructure Corp. to infuse with cannabis and distribute our extensive line of wellness products throughout Italy,” said Yield Growth Corp President and CEO Penny Green. “CROP is at the forefront of the burgeoning cannabis industry as it now seeks to move beyond the State of Washington and California with this deal as its entry into the European cannabis market.”

Management

Tom Bond — Chairman of Urban Juve and Director of Yield Growth

Thomas Bond has over 35 years experience partnering with entrepreneur businesses to build and deliver the operational and financial infrastructure to support annual double-digit revenue growth.  During that time, he has held C-level financial and operational positions with companies engaged in cosmetics, apparel, and construction including M.A.C Cosmetics, Cover FX Skin Care and Tridel.

Thomas was with M.A.C Cosmetics from 1993 until its sale to Estee Lauder in 1999. He started as the CFO and in 1994 the COO role was added to his portfolio. From 1993 to 1999, annual revenues at M.A.C Cosmetics grew from $12 million to over $300 million.  His achievements included building an executive team that could support the growth objectives, opening M.A.C owned retail stores, diversifying the business geographically by expanding into the U.K., France, Italy and Hong Kong, and mitigating the retailer concentration risk in the U.S. by adding distribution agreements with a number of major department stores.  He was personally responsible for leading the discussions with Estee Lauder and negotiating the final sale agreement. After the acquisition, he continued to provide full time consultant services to M.A.C Cosmetics until 2002. Thomas holds an MBA from the Rotman School of Business at the University of Toronto and is a CPA. C.A.

Penny Green, LLB — President, CEO and Director

Penny Green has been recognized on PROFIT Magazine’s W100 list of top Canadian female entrepreneurs. Under her leadership as CEO, her law firm Bacchus Law was in the PROFIT 500 Fastest Growing companies in 2015 and 2016. She has deep experience in capital markets and has been involved in over 100 going-public transactions. She was also a Co-Founder of Merus Labs Inc., which was acquired by Norgine B.V. in July 2017.

Green regularly participates as a speaker for keynotes and panels on fintech, capital-raising and blockchain, including CryptoHQ alongside the World Economic Forum in Davos. She has been featured in The National Post, The Globe and Mail, BNN, Chatelaine, Business in Vancouver, among others. She is also a published author for Forbes and a member of the invite-only, Forbes Technology Council.

Sandi Lesueur — President of Urban Juve

Highlights of Sandi Lesueur’s professional experience include the design and launch of several product lines for physicians and celebrities such as dermatologist Dr. Jason Rivers, and Oprah Winfrey’s makeup artist, Derrick Rutledge at OOH Lifestyle. Over her eight-year tenure, she played part in the meteoric rise of M.A.C Cosmetics where she developed expertise to recognize and situate innovative brands as future dominant players in the cosmetics business.

Her health and wellness knowledge — combined with experience in global production, distribution and brand cohesion — will position the newly launched Urban Juve as a unique force in a lucrative, growing sector in full-spectrum health.

Rick Huang — CFO

Rick Huang served as CFO of Hanwei Energy Services Corporation. He has also served as CFO for other publicly-traded companies where he has managed all aspects of finance, banking, compliance, accounting, reporting, internal control, admin and provided support rothe board of directors in financial oversight. He has also supervised all aspects of accounting for various subsidiary companies in Canada, China, Russia, Kazakhstan and consolidations under IFRS. He has worked on investor relations activities, roadshows AGM preparations and licensing agreements.

Huang has also led various public equity financing projects and is responsible for raising funds of up to $90 million and leading acquisitions of up to $80 million. He has done negotiations for international joint ventures, including drafting shareholders’ agreements, establishing international legal entities and assets transfers. He also serves as Chair of the Audit Committee for Datable Technology Corp. and was previously the Chair of the Governance Committee and member of the Audit Committee of Poydras Gaming Finance Corp.

Amy Frankel — VP Licensing

Amy Frankel has over 15 years of experience working with consumer product companies. In her various roles as in-house counsel, she has gained vast experience building, protecting and expanding international brands. Previously, she was Co-General Counsel of Aritzia LP and Associate General Counsel of Skechers USA Inc. Frankel’s expertise includes negotiating inbound and outbound licensing deals, developing intellectual property strategies and managing international intellectual property portfolios. Her experience also includes corporate governance for private and public US and Canadian companies, as well as a wide breadth of commercial matters, including distribution agreements and technology contracts.

Frankel started her career as a business litigator in Los Angeles, appearing before numerous state and federal courts before moving in-house with Skechers. She practiced law in California for 10 years prior to moving to Vancouver, BC. In 2008, she was admitted to the Law Society of British Columbia. She obtained her Bachelor’s degree from the University of California, Santa Barbara and her Juris Doctorate from the University of California, Hastings. She is licensed in California and British Columbia.

Spiros Margaris — Director

Spiros Margaris holds a Master’s in Business Administration from the University of Toronto. He is a venture capitalist and thought leader in the fintech and insurtech industries. He is a frequent speaker at international fintech and insurtech conferences and publishes articles on innovation and thought leadership.

Krystal Pineo — Director

Krystal Pineo has eight years of venture capital experience as an early-stage investor and fund raiser. She is the founder, CFO and director of KP Capital Inc, a family office that invests in early-stage startups, as well as providing corporate advisory services. Pineo has also championed women empowerment causes and has done charitable work and fund raising for the Portland Hotel Society, a lower east side women’s shelter providing recovery services for marginalized homeless women.


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