Cannabis:
The legal cannabis market grew 74% in 2014 to
$2.7 billion, up from $1.5 billion in 2013. Oregon is projected
to see $581 million in sales in 2015. It will have a competitive
advantage over Washington due to its lower cannabis tax
rate—Washington at 37%, Oregon at 17-20%, thus encouraging
canna-tourism from our neighboring states.

Coffee:
There are more than 22,000 coffee shops in the U.S.
with combined annual revenue of about $12 billion. Portland is
one of the top markets for coffee bar patronage.

PRODUCTS AND SERVICES
Coffee and Cannabis: A Blended Experience
Stone House Coffee & Cannabis will provide the best customer
experience in Portland vis-à-vis service, education and quality.
Well-trained employees will speak knowledgeably about
Stone House’s coffee and cannabis products. A welcoming
environment will cater to hesitant or skeptical cannabis buyers.

CUSTOMERS
Stone House’s customers are professionals, baby boomers and
veterans. They make purchasing decisions based on service,
quality and customer experience. They frequently buy coffee
on the go and spend money on recreational substances such as
wine, spirits, and cannabis.

GROWTH STRATEGY
Vertical Integration

Stone House plans to control the cannabis supply chain from seed to sale. We have already acquired a cannabis
grower to handle growing and processing, giving us control over key factors that drive sales, including quality, taste,
benefits, packaging, and price. We plan to acquire delivery and dispensary operations as well.