11/7 Leafbuyer Investor Update from CEO Kurt Rossner

Published: Thu, 11/07/19

Fellow shareholders,

Thanks to a strong summer focusing on our key strategic initiatives of market expansion and increasing demand for our loyalty platform, I am pleased to report record cash sales for the quarter ending September 30, 2019.

These initiatives will continue to drive our team. Looking ahead, we have several exciting developments to roll out over the next few months. We are looking to launch our comprehensive mobile application, align with new partners, and ultimately accomplish our goal of profitability in the first half of 2020.

As always, my objective is to keep you informed of our progress. On behalf of the Leafbuyer team, thank you for your support.

Kurt Rossner, Chairman and CEO

Sales Growth

While major competitors in the cannabis industry are downsizing, Leafbuyer continues to grow its team and cash sales. For the quarter ending on September 30, 2019, Leafbuyer announced record cash sales growth. Combined efforts from the sales teams in Denver and Los Angeles led to a 27% increase compared to the same quarter of the previous year. This increase exceeds the current industry growth average of 24%, a statistic reported in an Arcview and BDS Analytics report released June 20, 2019.

Leafbuyer sales executives succeeded in signing on large retail dispensary chains in recent months. Terrapin Care Station, a leading Colorado-based chain signed on its 6 locations and its infused product company. Leafbuyer’s bundled services appeal to individual dispensaries for the cost savings but also to multi-state operators (MSO’s) that want a reliable, effective marketing solution for multiple locations.

Email Platform

As announced in a press release last week, Leafbuyer launched a cannabis-friendly email platform as an advancement of the popular Leafbuyer Loyalty system. Email marketing is widely known as a cost-effective way for modern businesses to engage potential and former customers. According to a VentureBeat Insight study, users of email marketing systems achieve $38 in ROI for every $1 spent. Cannabis businesses are often barred from using the leading email platforms and can have their accounts suddenly deactivated.

Leafbuyer Loyalty is thriving. The platform saw an 84% increase in bookable revenue based on client usage during the 6-month period beginning March 2019 through August 2019. By advancing the system, Leafbuyer plans to grow its user base and take more market share from competitors in the loyalty arena.

The Leafbuyer team strives to increase shareholder value through a metric-based strategy. To accelerate the company’s progress to profitability, the executive team continues to review several potential acquisition possibilities. While exploring those options, the Leafbuyer team will optimize its products and aggressively widen its market footprint.

Leafbuyer will issue timely communications as important information becomes available.