Wildpack Beverage Inc.

Hello, everyone, and welcome to WildPak Beverages' second quarter 2021 earnings call and live corporate webinar. This is David Vidalla from RBMG. WildPak is listed on the TSX Venture Exchange under the symbol C-A-N-S. Joining us today are WildPak CEO Mitch Barnard, their CFO Ryan Mason, and COO Chuck Sadlow. who will be going through WildPak second quarter earnings. This will include an overview of current operations, recent achievements, and upcoming milestones. At the end of the presentation, management will address questions. If you are interested in asking a question and haven't done so already, please forward them to wildpak at rbmilestone.com, and we will answer them in a timely fashion. Please note, This presentation is being recorded today, Tuesday, August 31st, and will soon be made available on the company's website. Before we begin, please remember that during the course of this call, management may make forward-looking statements. These statements are based on management's current expectations and beliefs and involve various known and unknown risks and uncertainties, which may prove to be incorrect and actual results could differ materially from those described in these forward-looking statements. Please refer to the text in Wildpac's press release and financial filings issued yesterday for a discussion of the risks and uncertainties associated with such forward-looking statements. Please note that the company is under no obligation to update any forward-looking statements discussed today, except as required by applicable law, and investors are cautioned not to place undue reliance on these statements. Lastly, RBMG is not a registered investment advisor or broker dealer. For more information, please visit rbmilestone.com. I will now turn the call over to Mitch Barnard, CEO of Wild Pack Beverage, Inc.

Mitch. Thanks, David. Good afternoon, everybody. Welcome to Wild Pack's Q2 2021 earnings webcast. I'm joined today by my CFO, Ryan Mason, and COO, Chuck Zadlow. Our Q2 results were announced yesterday at about 4 p.m. Eastern time being August 30th via press release and CDAR filing. Today, for reference, all currency amounts discussed will be in U.S. dollars unless expressly stated. Our second quarter was successful from a realized growth perspective by increasing revenue by 26% quarter over quarter. notably before any of our recently disclosed acquisitions hit our P&L. More importantly, though, we continue to establish the base from which Wildpac will realize on significant opportunities by building to solve the four primary problems for our customers and ultimately build on long-term strategic advantage. Those four problems that we've identified and set out to solve are number one, the lack of available manufacturing capacity, number two, Supply chain complexity due to disconnected services and vendors. Number three, high costs resulting primarily from shipping costs and production inefficiency. And finally, four, access to a sustainable RTD packaging alternative to plastic and glass. As these problems are solved in accordance with our strategic business plan through our build and buy investments, we expect to see ongoing sustained growth in our top line with a disproportionate increase to our bottom line. The key achievements of our second quarter, being those that moved us closer to solving these problems, include in the bucket of lack of manufacturing capacity, we completed our go public transaction, which creates a more efficient platform from an M&A and fundraising perspective to execute on our geographically diversified facility roll-up strategy. Our dedicated M&A team through a maturing assessment template entered into three letters of intent for new manufacturing facilities, which to date has materialized into two completed acquisitions, the first being our Marietta, Georgia location, and the second being our location in Longmont, Colorado. Our build team is designing, planning, and allocating capital to the addition of three decorating lines within existing facilities, which to date has resulted in the completion of a line in our Baltimore, Maryland facility, and the start of the build in our Las Vegas, Nevada facility. And finally, we've onboarded key experienced, skilled operational personnel, including Chuck Zadlow, our COO, who you will hear from shortly today, that have begun optimizing our existing operations to achieve increased throughput and simultaneously decrease scrap. Moving on to the customer supply chain complexity bucket, we successfully deployed a new ERP that binds all of our existing facilities into a single system creating the framework for new facilities and manufacturing lines to be integrated. We've onwarded key technological personnel, including Matt Cope, our director of technology, that have accelerated the development of our customer portal that will eventually provide our customers with unparalleled insights into their supply chain by integrating directly with our ERP and our external partners. And finally, we've internalized another aspect of our customer's vertical supply chain, by commencing construction on the Las Vegas printing division, which will result in the sleeves that are used in our decorating division to be designed, printed, and applied more effectively and in a much more timely manner. In the decreased customer total product cost bucket, we have moved from two to five facilities and seen our customers avail themselves on access to facilities on the east and west coast and in between to decrease shipping costs to market for finished goods. We've increased our total enterprise consumption of key inputs, such as aluminum cans, for example, which allows us to negotiate better pricing from our vendors, which can ultimately be passed on to our customers. And finally, we've moved filling, decorating, and standing aluminum can inventory into the same facilities, which removes the need for several shipments by our customers and thereby reduces their total product costs. And finally, in the addressing sustainability bucket, We've increased the market's manufacturing capacity for the aluminum can, which requires the least greenhouse gas emissions, has the highest recycle rates among consumers, and contains the highest recycled content with respect to glass and plastic. And finally, we've begun to develop operational ESG policy with the intention of reporting ESG KPIs commencing in 2022. Looking forward though, management remains relentlessly focused on our primary growth goals of reaching six facilities by the end of 2021 and 12 by the end of 2022. This growth is expected to primarily occur via acquisition as our growth team has a deep pool of targets identified in key geographic regions that are amenable to joining WILDPAC. Up to today, out of prudence related to the speed of our growth, management has not provided guidance except for that related to facility count over the next 16 months. We expect to be in a position where we can begin to provide guidance on key operating metrics, such as cans filled, cans decorated, cans brokered, on a 12-month forward-looking quarterly basis beginning in Q3 to 4 of this year. We will then follow that up with full guidance commencing in the first quarter of 2022. To conclude, WildPak is currently executing on time and on budget against its strategic business plan, by focusing entirely on building a platform that can integrate new facilities efficiently and comfortably handle operating them as our scale continues to accelerate via acquisitions. This is largely due to the spectacular individuals who have seen what WildPak is building and jumped in with both feet across every division of our business. Getting this many industry leaders and doers excited about middle market beverage manufacturing speaks to the fact that what we are striving to achieve

transcends the actual business we operate within i would now like to turn it over to ryan mason our chief financial officer who will discuss our q2 financial results thank you mitch q2 was a strong quarter for wild pack beverage inc with an increase of 26 in revenue over quarter one 2021 a successful debenture issuance and our public listing revenues were 8.135 million and 6.433 million for the second quarter ended June 30th, 2021 and the first quarter ended March 31st, 2021 respectively. Revenue increased in the second quarter of fiscal 2021 due to filling and decorating volume improvements. Listing expense was $748,253 and nil for the second quarter ended June 30th, 2021 and the first quarter ended March 31st, 2021 respectively. Listing expense originates from the completion of the transaction with Ponderous Panda Capital Corp. Please reference note six in the interim condensed consolidated financial statements for the six month periods ended June 30th, 2021 and 2020. Positive adjusted EBITDA was approximately 184,000 and 156,000 for the second quarter ended June 30th, 2021 and the first quarter ended March 31st, 2021 respectively. Adjusted EBITDA increased in the second quarter of fiscal 2021 from Q1 due to initial throughput within the Las Vegas facility offsetting overhead expenses. The company had a net loss of $2.038 million and $888,770 for the second quarter ended June 30, 2021 and the first quarter ended March 31, 2021 respectively. The net loss increased in Q2 from Q1 2021 due to some alignment of salaries with the market value for comparable public entities, stock-based compensation, listing expenses, and interest on leased assets from operations. Our balance sheet remains strong with 40.467 million in total assets. The company had 15.02 million of cash and a networking capital surplus of 16.99 million. We continue to explore opportunities to minimize our interest payments in cash and enhance our liquidity to support our strategic growth goals. During the three months ended June 30th, 2021, the company raised 8.32 million in equity and another 15.20 million through a public offering of convertible debentures. These debentures have a four-year term maturing June 30th, 2025, 8% interest, which is payable quarterly. The proceeds in part were used to complete our public listing and in acquisitions of CraftPak LLC and Vertical Distilling LLC. I'll now turn it over to Chuck Sadlow, Chief Operations Officer, to expand on our efforts operationally.