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OTC SYMBOL: SMKC

M AY 2 0 1 8
disclosures
This Executive Summary (this “Summary”) is being provided by Smoke Cartel, Inc. (the “Company”) solely for
the use of prospective parties in determining whether or not to pursue a possible investment in the Company
(the “Purpose”). All information contained herein is of a proprietary, confidential and non-public nature, and is
only being furnished to those parties who have agreed to be bound by the terms and conditions of Company’s
nondisclosure agreement (the “Non-Disclosure Agreement”). By accepting this Executive Summary, the
recipient agrees that it will, and it will cause its affiliates, directors, officers, employees, representatives and
agents to use this Executive Summary and all of the information contained herein only for the Purpose and
shall return this Executive Summary and any copies hereof to the Company upon request. By accepting this
Executive Summary (or a copy hereof), the recipient agrees to maintain the information contained herein in
strict confidence and in accordance with the Non-Disclosure Agreement. This Executive Summary does not
constitute an offer to sell or the solicitation of an offer to buy any securities or assets of the Company, nor
should this Executive Summary be construed to indicate that the business of the Company remains unchanged
since the date of this Executive Summary. This Executive Summary includes certain statements, estimates and
projections provided by the Company with respect to its anticipated future performance. Such statements,
estimates and projections reflect various assumptions concerning anticipated results, which assumptions may or
may not prove to be correct. Such projections and estimates are not necessarily indicative of current value or future
performance, which may be significantly more or less favorable than as reflected herein. The recipient should not
rely on such statements, estimates and projections. This Executive Summary does not purport to contain all of
the information that may be required to evaluate the purpose and any recipient hereof should conduct its own
independent analysis of the Company and the data contained or referred to herein. In furnishing this Executive
Summary, the Company does not undertake any obligation to provide additional information or to correct or
update any of the information set forth herein. The Company does not make any representation or warranty
of any kind, including expressed or implied, as to the accuracy or completeness of the information contained
herein, or made available in connection with any further investigation of the Company, and nothing contained
herein is, or shall be relied upon as, a promise, representation or warranty, whether as to the past or the future.

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Smoke Cartel is the online retail sales Glassheads Distribution is the
channel platform of Smoke Cartel wholesale division of Smoke Cartel,
Inc. The division sells glass pipes, Inc. Glassheads serves 3,000 brick
vaporizers, bongs, and other cannabis and mortar and ecommerce retailers.
accessories to 90,000 customers in Glassheads was created after the
44 countries. 2016 acquisition of UPC Distribution
and rebranded as Glassheads.

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mission strategy
To create a meaningful To utilize our proprietary
experience for all types of data analytics technology to
cannabis consumers while identify new consumers and
leading the way in innovation develop new product lines,
of the smoking accessories and establish a first-mover
industry. advantage in each and every
state as it legalizes cannabis.

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national
statistics
Arcview Market Research estimates that by 2021, the
legal cannabis market in North America will be worth
$22.6 billion.

Smoke Cartel benefits from the expansion of the


legal cannabis market, but it does not touch the plant
itself, and therefore it has an advantage over cannabis
companies since it is still illegal at the federal level.

29 states have legalized medical marijuana and nine


F U L LY L E G A L
states have legalized recreational marijuana. MEDICAL AND DECRIMINALIZATION
DECRIMINALIZATION FOR SMALL AMOUNTS
Popular sentiment is changing; Arcview’s polls show M E D I C A L LY L E G A L
that 80% of Americans approve of legal access to ILLEGAL
medical cannabis and 60% approve of full adult use
legalization.

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a rapidly
Medical Recreational
expanding
market
2016
2017
2018
2019
2020
2021 By 2025, New Frontier estimates that the more
2022 than two-dozen states with medical marijuana
programs, and the nine recreational marijuana
2023
markets (including Washington, D.C.) should
2024
be fully operational, with the goliath California
2025 accounting for more than $6.59 billion — more
$0.00 $7.50 $15.00 $22.50 than one-quarter — of the national sales.
(in billions)
Colorado, the first state with legalized adult-
use cannabis sales, is projected to reach $1.94
billion in medical and recreational sales by 2025,
placing it fourth behind California, Florida’s
medical-only market ($2.51 billion), and
Washington state ($2.14 billion).

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problem
Ancillary cannabis companies lack
technology, data analytics, experience,
and professional fulfillment services.

Smoke Cartel brings unprecedented


professionalism, advanced data analytics,
excellent customer service, sophisticated

solution
fulfillment technology, and experience
into an infant industry. Smoke Cartel
provides an attractive vehicle to invest in
the Green Rush, without being directly
involved with the plant.

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management
SEAN GENG - PRESIDENT DARBY COX - CEO JORGE VERAR - CFO

• Founder of Kryptotrader—sold the • Studied Service Design at SCAD • Years of experience in accounting and
company consulting
• South Magazine’s Entrepreneur of the
• Background in Predictive Analytics Year • Served as CFO of an international not
for profit company as well as for other
• Studied Advertising at SCAD • Passion for understanding cannabis
public companies
consumers
• Award-winning designer
• Master’s Degree in Accounting and
• Leader of Reform Georgia, a local group
Management Information Systems and
of activists working for reform of local
Bachelor’s degree in Accounting
drug laws
• Certified accountant in Texas
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competitor overview
KUSH BOTTLES (KSHB) NAMASTE TECHNOLOGIES MASSROOTS (MSRT)
• Much lower traffic ranking, (NXTTF:US) • Cannabis compliance technology
according to Amazon Alexa’s • Canadian based online headshop and social network platform
online traffic ratings. Smoke with no significant market share • No manufacturing or retail
Cartel is ranked 14,658 most in the US products, solely a technology
popular site in the US and Kush company. We also have a team
Bottles is ranked at 43,033 (as of • Primarily produces vaporizers;
we sell vaporizers in addition to of programmers and advanced
5/22/18) technology systems.
glassware and other smoking
• They focus on packaging accessories • Lower revenue streams as they
products, which is just one small have no tangible products
part of the cannabis industry. • Stock Price: $1.22
We focus on manufacturing, • Market Cap: 353.700M • Stock Price: $0.26
packaging, and all varieties of • Market Cap: 40.31M
cannabis accessories
• Stock Price: $6.30
• Market Cap: 400.58M
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product
design

Smoke Cartel strives for PATENT PENDING

full market control. Our


extensive product design,
manufacturing, and
distribution capabilities enable
the company to service the
full market spectrum. Smoke
Cartel is creating unique
brands for each customer
demographic segment.

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sesh supply
Our premier private label glass brand, Sesh Supply was launched in Miami
in 2015 to great success in the United States market. Sesh Supply is a line
of glass water pipes known for their unique design and spinning propeller
percs. Each Sesh Supply piece is named from a creature or character from
Greek mythology and follows a bold and colorful theme, which is all part of
a marketing strategy for a younger generation of smokers.

kraken grinders
Kraken Grinders is our branded line of grinders made from high-quality
stainless steel and aluminum alloys. Grinders are used for grinding tobacco
and herbs, and the Kraken grinder features unique designs like stash
windows, easy clear buttons, pollen screens, and more.

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upc (until prohibition ceases)
UPC was a brand acquired from UPC Distribution, a Los Angeles based
company in business for over a decade. UPC pieces are dedicated to the
classic and timeless design known to scientific glass, and their iconic logo,
which is also trademarked, gives each piece its own unique twist. UPC is
marketed for simple, traditional smokers.

china glass
A unique play on a common trope in the American glass industry, China
Glass was unveiled in Winter of 2016 at the Denver CHAMPS Trade Show.
Our ability to rapidly design and produce innovative products sets us apart
in the market space.

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cinderwitch torches
The lead butane-torch product line, this brand is yet another vertical in the
smoking space with room to expand. Products include premium ignition
devices like butane and electronic torches. Cinderwitch has unique products
that are unlike most conventional torches, both in style and function.

heady pet
Smoke Cartel acquired Early Bird Distribution in November 2017, which
included HeadyPet, a cannabis-themed product line of leashes, collars, dog
toys, and other pet accessories. This acquisition allowed us to enter the pet
industry; finding overlapping markets like this allows us to sell products
completely separate from the cannabis industry and not restricted by
advertising platforms or other industry regulations.

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innovative Recently Expanded Warehouse

distribution
Smoke Cartel services thousands of retail shops
and ecommerce sellers, both through traditional

technology
wholesale practices and through dropshipping,
which provides an additional cash advantage over
our competitors who utilize our advanced fulfillment
system and distribution services.

26,000 ft² hub


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demographic
60%

trends
45% 29.6%
FEMALE
CURRENT MARKET PENETRATION
Approximately 90% of our customers are
30% 70.4% domiciled in the United States, with 10%
MALE
of our reach coming from international
markets.
15%

FUTURE MARKET PENETRATION


We expect growth in new markets within the
0% US as legalization laws pass in more states
21 - 24 25 - 35 34 - 44 45 - 54 55 - 64 65+
and the legal cannabis market expands.
Smoke Cartel also plans to extend into EU
and Canadian markets, focusing on countries
that already have reformed cannabis laws.

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website
display
Smoke Cartel built a custom
analytics program and data-
driven website. We are able to
customize each unique visitor site
experience to maximize profit and
retention for future sales.

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mobile
display
Our interactive and intelligent
website specifically targets
consumers for conversion.
Smoke Cartel provides a
personalized experience
over multiple platforms.
With mobile driving 75% of
web traffic, the company
continuously optimizes the
mobile display.

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$5.9 million Achieved 5.9 million in revenue in 2017.

178,000+
One hundred and seventy-eight thousand e-commerce retail
orders shipped and counting. That’s a lot of happy customers!

3,000+ That’s three thousand shops around the nation


carrying our exclusive branded merchandise.
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past financial milestones
YEAR 1 YEAR 3
$560,000 in Revenue $4,850,000 in Revenue

Smoke Cartel is YEAR 2 YEAR 4

founded with $600. $2,600,000 in Revenue $5,895,000 in Revenue

2013 2014 2015 2016 2017


Successful Acquisition of
acquisition and Early Bird
integration of
UPC Distribution

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“ [Smoke Cartel] rose from the social media advertising barrier to
using social media to market their company and grow it to... an


online store, 45 employees and millions of dollars in annual revenue.

“ Though Savannah is steeped in historical context the owners of


Smoke Cartel, Sean Geng and Darby Cox, represent leaders for a
new generation of entrepreneurs. With them, Savannah has become
a cradle of innovation and a place where people feel comfortable


ushering in a new wave of creative and diverse culture.

also featured in...

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key LEAFLESS INVESTMENT

Smoke Cartel is a leafless investment into


PROPRIETARY TECHNOLOGY

Smoke Cartel developed the proprietary

highlights
the cannabis space, providing a low-risk software required to handle all operations
vehicle for ventures in the “Green Rush.” for maximum efficiency in warehousing,
fulfillment, and ecommerce sales. This
technology furthers the firm’s vertical
integration model.

CONTINUED INCREASE IN REVENUE PREVIOUS M&A SUCCESS VERTICAL INTEGRATION

Smoke Cartel has had sustained and Smoke Cartel previously acquired and Smoke Cartel controls every level of
continued growth and increase in saw through the successful integration operation in both the retail and wholesale
revenue each year since inception; of UPC Distribution, a wholesaler of divisions, including innovative proprietary
revenue reached $5.9 million in 2017. 10 years, and Early Bird Distribution in software, product design, manufacturing,
The company consistently invests in long 2017. fulfillment and distribution, and
term growth through brand development, marketing and sales.
customer base growth, and immense
research and web development.

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INVESTOR CONTACT MAILING INFORMATION

investors@smokecartel.com 1313 Rogers St.


912-226-2802 Savannah, GA 31415

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