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OTC SYMBOL: SMKC

J U LY 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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mission
To create a meaningful experience for
all types of cannabis consumers while
leading the way in innovation of the
smoking accessories industry.

GLASS • VA P E S • LIFESTYLE • TECH Through:


W W W. S M O K E C A R T E L . C O M
• Proprietary data analytics & technology
T I C K E R : S M KC W W W. S M O K E C A R T E L . C O M

• Developing new branded product lines

• Establishing a presence in every state in


preparation for cannabis legalization

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management
DARBY COX SEAN GENG
CEO & Chairman COO & President

• Studied Service Design at • Founder of Kryptotrader—


SCAD sold the company
• South Magazine’s • Background in Predictive
Entrepreneur of the Year Analytics
• Passion for understanding • Studied Advertising at
cannabis consumers SCAD
• Leader of Reform Georgia, • Award-winning designer
a local group of activists
working for reform of local
drug laws

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Smoke Cartel is the online retail Glassheads Distribution is the
sales channel platform of Smoke wholesale division of Smoke Cartel,
Cartel Inc. The division sells glass Inc. Glassheads serves over 1,000
pipes, vaporizers, bongs, and other brick and mortar and ecommerce
cannabis accessories to over 125,000 retailers. Glassheads was created
customers in over 50 countries. after the 2016 acquisition of UPC
Distribution and rebranded as
Glassheads.

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customer statistics

1.07% $63.02 76%


We have an approximate Our average order value Roughly 76% of our traffic
conversion rate of 1.07% hovers around $60 to $70. comes from mobile devices.
across all site traffic. We have optimized our
mobile site for fast load
times and personalized
recommendations.

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product
design
Smoke Cartel strives for full market
control. Our extensive experience in
product design and manufacturing PATENT PENDING

enables us to service the full market


spectrum. Smoke Cartel creates
unique brands for each customer
demographic segment.

We successfully secured our first


patent for the design of the Viosparc
lighter, which will be available for our
retail and wholesale customers later
this year.

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sesh supply
Sesh Supply is one of our most popular in-house brands, winning 2nd place
in High Times Cannabis Cup 2018. The glass line is known for its 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 as 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
Cinderwitch Torches is the consumer electronic brand for Smoke Cartel,
carrying the Company’s latest innovative design, Viosparc (patent pending).
Products include other 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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www.warely.io

• Advanced proprietary inventory


management software
• Shipping and fulfillment services:
machine learning and predictive
shipment calculations to forecast and
speed up the fulfillment process
• Shopify integration
• Consumer data mining and analytics
• Financial reporting

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b2b services
Dropshipping and App Services - Smoke Cartel Proprietary
Technology
The Warely dropshipping app connects other e-commerce stores
to Smoke Cartel’s custom made inventory fulfillment system
so all changes to stock are made in real time, and sent across all
connected stores.
Warely’s interface includes a dropshipper portal where customers
can access their orders and integrate products. Through this
interface, Smoke Cartel will be able to offer tech service to serve
customers with valuable insights to grow their business, and also
grow Smoke Cartel’s network.

Whitelabeling Services
We offer whitelabeling services for other businesses, putting their
branding on our products for them to sell.

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advanced
fingerprinting
technology
Our proprietary software enables us to
data mine from our own customers as
well as all of our networked websites.

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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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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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demographic
60%

trends
45% 29.6%
FEMALE

CURRENT MARKET PENETRATION


30% 70.4% Approximately 90% of our customers are
MALE
domiciled in the United States, with 10% 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 and
21 - 24 25 - 35 34 - 44 45 - 54 55 - 64 65+ 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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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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$5.9 million Achieved 5.9 million in revenue in 2017.

186,000+
One hundred and eighty-six thousand e-commerce retail orders
shipped and counting. That’s a lot of happy customers!

1,000+ That’s a thousand shops around the nation carrying


our exclusive branded merchandise.
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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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“ [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.

“ Two young pioneers have positioned their Savannah-based business at


the vanguard of a billion-dollar industry, and are investing not only in


the future of their company, but in the future of their community.

also featured in...

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INVESTOR CONTACT MAILING INFORMATION

investors@smokecartel.com 1313 Rogers St.


Savannah, GA 31415

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