HBH_2020BusinessModel_03.20_REV5

2020 Business Model

HIGHBRIDGE PREMIUM CANNABIS PRODUCTS / 2020 BUSINESS MODEL / PAGE 1

Setting the Stage by the Numbers –––––

Non-Alcoholic Cannabis-Infused Drinks Emerge as the Fastest Growing
Category in the Cannabis Marketplace

The entire market of alcoholic beverages faces the risk of disruption given the cannabis’s ability to
replicate the effect of alcohol with zero calories, and with established health benefits. The current
market trend in cannabis beverages space is also resonating for infused products formulations.

1. Changing Consumer Preferences
Consumers will drive Research & Development, as well as product proliferation. As global
alcohol sales fall, nearly half of the cannabis consumers who drink are expected to eventually
replace at least some of their alcohol use with cannabis.

74% 73% 28% 46%

Of consumers Are more likely to Like cannabis and Prefer cannabis
think cannabis is use cannabis if alcohol equally over alcohol
safer than alcohol it’s legal

2. Adult 21+ Use Drives Sales Growth in US and Canada

There is a continued gap Projected US Legal Cannabis Spending ($USD Billions)
enlargement between the
health and medical user, 25 $11.5 $13.8 $15.7
and the recreational and 20 $9.1
social user. This is mainly 15 $7.10 $7.70
due to the latter group 10 $2.6 $6.7 $5.30 $6.30
using for both medicinal $5.90 2021 2022
and recreational reasons. 5 $4.30
0 2017
2018
2019 2020
Medical Adult

HIGHBRIDGE PREMIUM CANNABIS PRODUCTS / 2020 BUSINESS MODEL / PAGE 1

3. Product Innovation
The functional beverage space is already bursting with product innovations and THC will
add fuel to this fire.
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• B randed cannabis products continue to see tremendous growth attributing to
>48% of all cannabis related sales
• Consumers are strongly influenced by brand familiarity, recognition,
association and memory
• 50% of all consumers are largely INFLUENCED by convenience of
consumption when choosing a product where beverages qualify as one of the
5 top influences

5. Social Consumption Emerges
The marketplace has already seen an emergence and acceptance of social consumption
• 71% Consume for social/recreational purposes
• 32% Consume BEFORE getting together with others
• 28% Attend a public event (concert, sporting event, etc.) after consuming
• 18% Consume in public spaces

6. Purchasing Experience
Convenience and professionalism drives the purchasing experience
• 72% Trustworthy transaction
• 67% Sales process is convenient
• 64% Professional sales staff
• 62% Brand choice from top influencers

Source: BDS Analytics Cannabis Market Trends 2019 & 2020; OurCrowd market report Cannabis: A growing Investment Sector 2019
HIGHBRIDGE PREMIUM CANNABIS PRODUCTS / 2020 BUSINESS MODEL / PAGE 2

HighBridge Business Model HighBridge Premium
Cannabis Products

Our continuing goal is to be a niche leader in the cannabis
industry, producing and providing premium consumable
products. We are excited for the pending California
launch of our THC-infused beverage line, scheduled in
early 2020.

–––––VALUE PROPOSITION

The Value Propositions building block describes the bundle of products
and services that create value for a specific customer segment. Each
HighBridge Value Proposition consists of a selected bundle of products
and/or technology that caters to the requirements of the HighBridge
customer segment, it is an aggregation (or bundle) of benefits that
HighBridge offers customers and are INNOVATIVE and represent a
NEW and DISRUPTIVE offer.

Customer Experience & Customization

• Non-alcoholic • L ow calorie • Superior taste

• Non-GMO • G luten free • Q uality above all else

Customization and Brand Status and Price

• Premium cannabis/strains/terpenes
• Marketplace distinctiveness
• Packaging

Design & Brand Status

• Targeted demographic marketing

Innovative & Disruptive Technology

• Cutting edge THC infusion and emulsification process

HIGHBRIDGE PREMIUM CANNABIS PRODUCTS / 2020 BUSINESS MODEL / PAGE 3

–––––CUSTOMER SEGMENTATION

The Customer Segments building block defines the different groups of people or organizations an
enterprise aims to reach and serve. They are reached through different distribution channels.
The HighBridge business model targets the niche cannabis market and caters to specific and
specialized customer segments. The following value propositions, distribution channels, and
customer relationships are all tailored to the specific requirements of a HighBridge cannabis niche
market. The HighBridge customers are influencers, early adopters and lead indicators and are
defined as:

• W illing to spend more for QUALITY
• Keep up with the LATEST technology
• C are that products are LOCALLY grown
• Prefer LOCAL, NATURAL, SOCIALLY INTERESTED brands

Our Unique production process creates a pure and complete infusion of
ingredients to ensure a superior taste with absolutely 0% alcohol.

HIGHBRIDGE PREMIUM CANNABIS PRODUCTS / 2020 BUSINESS MODEL / PAGE 5

HIGHBRIDGE ––––– C HANNELS
STRATEGY
The Channels building block describes how a
Our strategy is a combination company communicates with and reaches its
of the DIFFERENTIATION customer segments to deliver a value proposition.
Communication, distribution, and sales channels
and FOCUS strategies comprise the HighBridge interface with customers
(Porter’s Strategies). and play an important role in the customer experience.
The entire HighBridge How and where the HighBridge customer chooses to
shop is a key parameter in the HighBridge business
product range seeks multi- model.
dimensional consumer
HighBridge-Owned Direct Channels: Website
satisfactions criteria such and social media (brand awareness and product
as: quality, style, natural, evaluation, and after sales evaluation); HighBridge is
convenience, price, and poised to claim the market leadership
socially interested branding.
HighBridge-Owned Indirect and Partner
Our 2020+ VISION calls Indirect Channels: Partner stores and wholesale
for the development of our (purchase point and delivery of VP)

product line that offers HighBridge Joint Ventures
unique attributes that are
valued by customers and –––––CUSTOMER RELATIONSHIPS
perceived to be better than/
different from the products The Customer Relationships building block describes
the types of relationships a company establishes
of the competition. with specific customer segments. HighBridge has a
customer-vendor relationship.

Personal Assistance: Point of sale or through e-sales
(customer experience)

Co-Creation: Co-create value with the customer –
engagement through social media

Communities: Develop on-line community or market
directly to specific demographics

–––––KEY ACTIVITIES BUSINESS Model

The Key Activities building block describes the most important
things a company must do to make its business model work.
Like Key Resources, they are required to create and offer a value
proposition, reach markets, maintain customer relationships, and
earn revenues.
Production: Develop, create, and deliver premium cannabis
products

–––––KEY PARTNERS

The Key Partnerships building block describes the network of suppliers and partners
that make the business model work. HighBridge will forge partnerships and will create
alliances to optimize the business model, reduce risk, or acquire resources. HighBridge
will utilize four different types of partnerships:
1. STRATEGIC ALLIANCES between non-competitors
2. COMPETITION strategic partnerships between competitors
3. JOINT VENTURES to develop new businesses
4. BUYER-SUPPLIER RELATIONSHIPS to assure reliable supplies

–––––KEY RESOURCES

The Key Resources building block describes the most important assets required to make
a business model work.
Physical: Potential cannabis licenses in multiple states, distribution network,
package opportunities
Intellectual: HighBridge brand, proprietary infusion technology, knowledge base
Human: Diverse and experienced leadership and board members
Financial: HighBridge as adequate funds to complete its licenses and support
operations. HighBridge will secure institutional partners to assure its continued
growth & expansion

Our continuing goal is to be a niche leader in the cannabis industry, producing and
providing premium consumable products. We are committed to the research and

continued development of our exclusive THC infused product range.

HIGHBRIDGE PREMIUM CANNABIS PRODUCTS / 2020 BUSINESS MODEL / PAGE 6

–––––COST STRUCTUREHighBridge Business Model

The Cost Structure describes all costs incurred to operate a business model.
Value Driven: Premium value propositions
Economies of Scale: Develop cost advantages as the industry deregulation
progresses
Economies of Scope: Cost advantages to utilize same marketing activities
and distribution channels to support multiple products

–––––REVENUE STREAMS

The Revenue Streams building block represents the cash a company generates
from each customer segment. If customers comprise the heart of a business
model, Revenue Streams are its arteries. In the cannabis industry, price is still
the number one driver of customer product choice.
Asset Sale: Premium product and premium fixed price (list price, product
feature dependent, customer segment dependent, volume dependent)
Passive Income: Joint ventures, multi-state & international distribution/
licensing agreements.

HIGHBRIDGE PREMIUM CANNABIS PRODUCTS / 2020 BUSINESS MODEL / PAGE 7

faux BEERTM

HighBridge has developed a truly alcohol-free THC-infused beer -
not a traditional brewing method and not an alcohol extracted beer! 
Gluten free and non-GMO, it tastes like a real beer! Whether you
enjoy the traditional feel of a great THC experience, want something
to help you sleep, or maybe just need something to get you through a
stress filled day,  our “faux beers” have just what you are looking for. 
And all HighBridge products contain 10mg THC per serving.

ENERGY DRINKS

HighBridge is pleased to announce our new line of THC-infused
energy beverages that will be introduced in early 2020. Our
HighBridge energy drink will be available in a variety of perfectly pure
tasting flavors: Kiwi, Açai Berry, and Mango are just the starting line
up. Always refreshing and revitalizing! Get a burst of energy with
every flavor!

HIGHBRIDGE PREMIUM SOCIAL SELTZER

New to the HighBridge lineup is our flavored THC-infused seltzers. This premium beverage will
have 5% THC and be available in a variety of exciting and refreshing flavors such as Pomegranate,
Green Apple & Basil; Grapefruit, Rosemary & Pineapple; and Ginger & Mint.

WHAT MAKES OUR PRODUCTS PREMIUM

Superior Taste Complete Infusion 0% Alcohol

Palette pleasing flavors and The perfect amalgamation of Every HighBridge beverage
pure ingredients that are the select elements contains 0% alcohol. No
perfectly blended together alcohol added and, more
to create delicious taste that prevents separation importantly, no alcohol
experiences. and boasts a longer removed.
shelf life.

HIGHBRIDGE PREMIUM CANNABIS PRODUCTS / 2020 BUSINESS MODEL / PAGE 8

HighBride 2020 Business Model

Key Partners Value Propositions

4 Types of HighBridge Customer Experience & Customization:
Partnerships: • Non-Alcoholic, Non-GMO,

1. Strategic Alliances Between Low Calorie, Gluten Free,
Non-Competitors Superior Taste

2. Coopetition: Strategic Design & Brand Status:
Partnerships Between • Targeted Demographic Marketing
Competitors Innovative & Disruptive Technology:
• THC Infusion and
3. Joint Ventures to Develop
New Businesses Emulsification Process

4. Buyer-Supplier Relationships Customization & Brand Status & Price:
to Assure Reliable Supplies • Premium Cannabis/Strains
• Marketplace Distinctiveness

Key Resources Key Activities

Physical: Licensing, Network, and Packaging Production:
Intellectual: Brand, IP
Human: Experience Leadership Develop, Create, Deliver
Financial: Funding Secured for 2020+ Premium Cannabis
Products

Cost Structure Value Driven: Economies of Scope:

Economies of Scale: Premium Cost Advantages to Utilize
Value Same Marketing Activities
Develop Cost and Distribution Channels
Advantages as the Propositions
Industry Deregulation to Support Multiple
Products
Progresses

HIGHBRIDGE PREMIUM CANNABIS PRODUCTS / 2020 BUSINESS MODEL / PAGE 10

Customer Segments Customer Relationships

Niche Market: Personal Assistance:

Cannabis Point of Sale or Through
e-Sales
Customers are Influencers,
Early Adopters and (customer experience)
Lead Indicators
Communities:
Channels
Develop Online Communities
HighBridge Direct and Direct Market
Channels: WEB & SM
HighBridge Indirect & Partner Co-Creation:
Indirect Channels: Stores and
Wholesales Co-Create Value with the
Joint Ventures Customer – Engage with
the Customer Through

Social Media

Revenue Streams

Asset Sale: Fixed Pricing: Passive
Income:
Premium Product List Price, Product Feature
and Premium Dependant, Customer Joint Ventures
Fixed Price Segment Dependant,
Volume Dependant and Distribution

Agreements

HIGHBRIDGE PREMIUM CANNABIS PRODUCTS / 2020 BUSINESS MODEL / PAGE 11

Setting Research & Design &
the Stage Analyze Innovate

Critical Factor for Success: Critical Factors for Success: Critical Factors for Success:
People, Experience, and • Deep understanding of • C ollaborate With Industry
Knowledge
target market Experts
HighBridge • Look beyond the boundaries • S ee Beyond Status Quo
• Explore Multiple Ideas
defining target market
and Avenues

The HighBridge EXECUTIVE The cannabis-based beverages Delivering our value proposition
TEAM is based firmly on (CBD & THC infused) market to our consumer in the cannabis
experience that will help to held a market share of USD marketplace requires that
evolve and innovate our vision 1.57 billion in 2019 and is our HighBridge EXECUTIVE
and products as we grow. forecasted to grow at a rate TEAM continue to think outside
of 15.4%. of the traditional beverage
The HighBridge Holdings manufacturing process and
Inc. Board of Directors are Our cannabis infused beverage establish key partnerships and
pleased to announce the line contains clean ingredients, develop key resources.
appointments of Dr. Susanne low sugar content, and the
MacMahon as HighBridge’s measured quantity of cannabis HighBridge has developed a
CEO & Chairman and Larry is a fast growing market but is truly innovative product line;
Severson as General Counsel and devoid of PREMIUM products. one that encompasses disruptive
Executive Secretary. technology and results in a
Our business model points to beverage product that stands
As the HighBridge Board and a clear understanding of our apart from the competition.
Company continues to grow, consumer and the depth of
the focus will remain on recruiting potential in our value proposition. Bringing our products to market
talented, experienced executives requires strategic alliances and
and leading industry experts to HighBridge has positioned itself has opened the door to Joint
support our HighBridge 2020+ to be the leader in the THC venture opportunities, which
Vision. Infused beverage marketplace. alone are additional and valuable
revenue streams.

HIGHBRIDGE PREMIUM CANNABIS PRODUCTS / 2020 BUSINESS MODEL / PAGE 11

Implement Continuous VISION 2020+
Improvement
Critical Factors for Success:
• B est practice project Critical Factors for Success:
• L ong-term perspective
management • P roactiveness
• Ability and willingness to • Governance of business

rapidly adapt the business models
model

Translating the HighBridge An agile business model continues
Business Model into an beyond implementation; this is the
implementation plan includes foundation of our HighBridge
defining all related projects, 2020+ Vision.
specifying milestones, organizing
state cannabis licenses, preparing Our HighBridge EXECUTIVE
a detailed budgets and product/ TEAM is continuously assessing
project roadmaps. the model and scanning the
cannabis marketplace to
The HighBridge 2020+ Vision understand how it might be
is the business plan and project affected by external factors over
management document. the long term.

Our success is related to managing PROACTIVE response to market
uncertainties, monitoring how evolutions is very important
risk/reward expectations play to sustainability, and having an
out against actual results and, agile business model—one that
more importantly, developing is larger than a simple cash-
mechanisms to quickly adapt the generating business model and is
HighBridge business model to replaced with growth models for
market feedback. tomorrow’s marketplace—is the
HighBridge 2020+ Vision.

HIGHBRIDGE PREMIUM CANNABIS PRODUCTS / 2020 BUSINESS MODEL / PAGE 12

VISION 2020+ –––––MARKETPLACE BY THE NUMBERS

The U.S. cannabis industry forecast is built around a new classification of the
states by the launch date of the legal cannabis program in effect by 2024. Adult-
use states at that point will include the following:
Mature adult-use: states like Colorado and Washington that launched
adult-use programs prior to January 2017; on track to grow at a 5.8% CAGR
2018-2024 and to represent 15% of the 2024 market.
Emerging adult-use: states like California, Nevada, and Massachusetts that
launched programs between January 2017 and January 2020; forecast to grow
at a 20.8% CAGR and to generate 41% of U.S. legal revenue in 2024.
New adult-use: states like Arizona, New York, and Florida for whom program
start dates are forecast before 2024; forecast to grow at a 39% CAGR to become
32% of the 2024 market.

–––––HIGHBRIDGE OBJECTIVES

In the first two years of operation, the objectives for HighBridge will be:
• To launch THC Infused Faux Beer and other THC infused Beverages in
California and Nevada and at least one additional state in 2020.
• To keep the COG and Distribution/Packaging costs <40% of revenue.
• To maintain a reputation of providing premium quality products.
• To increase sales year over year annually as we expand into other states in
the U.S. and develop new market and licensing opportunities.
• To achieve >20% profit for the first year and increase to 30%+ through each
subsequent year.
• To expand our marketing and social media efforts as the market grows.

HighBridge

HIGHBRIDGE PREMIUM CANNABIS PRODUCTS / 2020 BUSINESS MODEL / PAGE 14

–––––DISTRIBUTION: GO TO MARKET

Business-to-consumers (B2C) holds the largest market segment in the cannabis industry with 53%
in 2019. It is forecasted to grow 15.1% in 2020. HighBridge will be focusing on California for its
first product launch, and is working with a local distributor with over 400 stores to capture the B2C
market. North American targets for 2020 include Nevada, Arizona, and Illinois. Mexico would serve
as our first international market, and is being developed with our Mexican partner. HighBridge also
believes that with the pending national legalization, the direct to consumer market will be a major
retail platform. To that end, HighBridge, with its marketing partner, is developing a state-of-the-art
D2C platform for initial “intra-state” implementation in 2021.

–––––EXIT STRATEGY

HighBridge is developing a two-pronged exit strategy:
First, as a producer and supplier of premium cannabis consumable products—and as an emerging
publicly trading company—HighBridge expects rapid growth, both in terms of profits, and in market
and share valuation.
Second, as U.S. laws adjust to make commerce in the cannabis industry easier, HighBridge expects
to be a likely buyout target when the large players enter the arena. Companies such as R.J. Reynolds
Tobacco, PepsiCo., Nestlé, Budweiser, etc. have each started positioning for entry into the cannabis
market with billions of dollars ready to deploy. However, because of the conflicting laws in the U.S.,
their respective charters, and the need to effectively utilize their distribution networks, all seem
content to wait until the laws are changed nationally. This is consistently speculated to occur in 2022.

Invest in What Comes Next…

HIGHBRIDGE PREMIUM CANNABIS PRODUCTS / 2020 BUSINESS MODEL / PAGE 15

Corporate Headquarters

HighBridge Holdings Inc.
1712 Pioneer Ave. Suite 1994

Cheyenne, Wyoming
 +1.307.637.0979

[email protected]
For product information, to become a retailer or distributor, or for information

on Investment Opportunity, simply give us a call +1.307.637.0979

For more information about HighBridge
www.hbhcannabis.com

©2020 HighBridge Holdings, Inc.
This material has been prepared for general information purposes only.

HIGHBRIDGE PREMIUM CANNABIS PRODUCTS / 2020 BUSINESS MODEL / PAGE 16