Element Apothec

I’d like to invite you to take a moment to think about yourself and the people in your life who are important to you. Now, think about who has struggled or continues to struggle with life’s pain points: getting enough quality sleep, sore and achey muscles, unbalanced mood, tension from life’s stressors, etc.

And now, I’d like you to imagine being a part of something that can help those people in your life and the millions of others who suffer from these same stressors. How would it feel knowing that your investment will help these people (and possibly yourself) feel rested, happy, relaxed, and ache-free and also provide you with a good ROI? Pretty good, I imagine. 

INTRODUCING: ELEMENT APOTHEC

Element Apothec (Pending B Corp) is a purpose-driven brand focused on positively impacting the quality of people’s lives through doctor formulated, functional cannabinoid products, wellness education, and a supporting community that results in vibrant health and flourishing well-being. Using the healing power of nature and innovations in science, we help customers live a better life, everyday. We are positioned to become a market leader in a $16B industry.

THE PROBLEM

Part of the reason we are excelling right now is because of the problems that exist in the current market.

There is a lack of trust in the space due to limited industry regulations, an influx of bandwagon brands and white labeled products using toxic and harmful ingredients with limited transparency, little or no medical oversight, and a lack of innovation. This puts everyone at risk.

There is a lack of education with so much misinformation and misunderstanding about CBD and the endocannabinoid system. And once you purchase a body care or wellness product, now what? Who can I talk to? Expert information is hard to find.

No brand is taking a whole-person, whole-life approach to well-being.

Element Apothec is looking to change that.

OUR ORIGIN STORY

Element Apothec’s story begins over 8 years ago when my Great Aunt - ailing from several complex medical conditions and suffering from everyday life stressors - was given a dire prognosis. Bedridden and hurting, with traditional medicine not only failing to help her but making things worse, she decided to take her care into her own hands.

Over the next several years she became an expert in essential oils and plant-based remedies, creating formulations that helped her feel better and dramatically improve her quality of life. In time, she would create over 40 custom formulations that would go on to help her and countless others.

And that’s where the story of Element Apothec picks up…

Now, those time-tested formulations which have helped so many people - have found new life as we partner with integrative practitioners and bring them to the world.

WHY ELEMENT APOTHEC

From the very beginning we decided we were going to do things differently from all of the other body care and wellness brands out there. We are not just another CBD brand. 

In everything we do we are actively designing for the qualities of trustworthiness as shown through our third-party certifications, Pending B Corp, commitment to clean and high-quality products, radical transparency via blockchain technology, an governed by an internal ethical decision making platform.

We are trusted and respected for our highly experienced Medical Advisory Team that vets, augments and develops functional and effective product formulations using the research on all cannabinoids like CBD, CBG and CBN and other alternative plant based remedies.

We do good and give back to our employees, our communities, and the world.

We commit to sustainability and being good stewards to the planet.

We dedicate ourselves to educating people - not just our customers - about the power of plant-based, natural remedies and how to care for yourself, better.

And, we are creating a community of like-minded individuals and strategic partnerships to help us spread the word and learn from, grow, and support one another.

This unique 360-degree integrated approach - trust, education, sustainability, social purpose, and community - is what Element Apothec is all about and why we will be successful.

OUR TEAM

In addition to our founding team, Element Apothec is supported by an incredible advisory board to give us the mentorship, advice, and guidance we need in their respective areas to lead our company to success. They are not just names on our deck, but actively involved, meeting with our founding team weekly or bi-weekly.

OUR PRODUCTS

In December of 2020, in the middle of a worldwide pandemic, we launched Element Apothec. Our product line contains doctor-driven, functional, and highly-effective formulations utilizing CBD, CBG, CBN and other, beneficial phytocannabinoids and plant-based remedies.

• REST RELAX RECOVER | TINCTURE (CBD/CBN)
• CALM COOL COLLECTED | TINCTURE (CBD/CBG)
• RELIEF | BALM (CBD/CBG/CBN)
• NOURISH | LOTION (CBD/CBG)
• BELLE VISAGE | FACE SERUM (CBD/CBG)

In addition, we continue to develop new and exciting products designed to address specific health concerns and challenges. We already have over 40 custom formulations.

And our products stack up well against the leading competition…

THE OPPORTUNITY

The CBD market is continuing to expand rapidly and is expected to expand to over $16 billion by 2026.

Additionally our products fit into the ever-growing personal care and wellness space targeted to be a 1.9 trillion dollar market by next year.

Currently, the top 20 companies make up only 17% of the market. As a result, we have an opportunity for exponential growth.

Based on our business model we have an aggressive but reachable goal of $45 million within 5 years with unit economics of 3:1 and margins averaging 70%.

To date, we have had 56% Month-Over-Month growth and expect a significant increase in Q3 and Q4.

ELEMENT APOTHEC IRL

Element Apothec launched just over 7 months ago and we already have a growing base of passionate customers and exciting retail partnerships, typically reserved for much more established brands.

BUSINESS MODEL

Based on our business model we have an aggressive, yet reachable goal of $45 million within 5 years with unit economics of 3:1 and margins averaging 70%. To date, we have had 56% Month-Over-Month growth and expect a significant increase in Q3 and Q4 2021 and into 2022. Success will look like thoughtful scaling with growth in retail distribution.

MARKETING PLAN

We connect with our customers at multiple touch points, utilizing an omni-channel business model that includes B2C and B2B - including a unique distribution opportunity through medical partners.

CURRENT TRACTION & GROWTH OPPORTUNITIES

Not only are we gaining customer validation on our products but we also have some great traction. 

In 2021, we have signed several agreements and started retail on-boarding to activate growth.

This includes an Exclusive Partnership Agreement with VerdePharmHealth - a premier medical GPO providing access to their network of 1700+ clinics and 2500+ doctors,. This, along with Clinical Studies planned for Q4 2021, positions us for significant growth in the medical channels.

Recently, we signed with a distributor that works with some of the top brands in the space including MedTerra, CV Science, and Charlotte’s Web.

We’ve established retail partnerships with Showfields, dispensaries, online marketplaces & many more on the way.

We are also creating exciting partnerships to expand our brand reach with well-know, established communities thereby expanding our presence.

In addition to our exclusive partnership with VerdePharmHealth, two other partnerships have presented themselves as extremely lucrative opportunities.

• 
  A well-known cosmetics formulator and celebrity make-up artist with over $50 million in yearly sales looking to co-brand and formulate new products. It will open up new markets and new distribution channels including high-end department stores.
• One of the top matcha companies is also looking to formulate new and exciting products with our expertise in phytocannabinoids and plant-based remedies.

EXIT STRATEGY

With the CBD industry’s anticipated growth over the next few years, partnerships and mergers & acquisitions are heating up in the space - from both US and International companies. This is where we would focus on as an exit strategy.

USE OF FUNDS

We are raising a convertible note of up to $500,000 at a market cap of $4M. We will use the funds for: Product Inventory, Marketing, General Operating Costs, Business Development (incl. R&D), and WeFunder Fees

IN CONCLUSION

As an early-stage investor, you have the opportunity to back a company with not only huge market-growth potential but one that actually does good and you can feel good about being a partner to. With the convergence of the emerging hemp/CBD market, natural wellness, and clean beauty movements, a need for sustainable practices, and consumer desire for evidence-based products, the time is now for Element Apothec — and you.

Thank you for your interest.

Most Sincerely,

Davina Kaonohi, CEO & Co-Founder, Element Apothec

EXECUTIVE SUMMARY

Element Apothec, Inc., founded in 2020, is a Delaware Public Benefit Corporation startup operation with four entrepreneurial founders who have established our unique brand, IP portfolio (including proprietary formulas, domains, and trademarks) and a full infrastructure from operations to finance. We have a team with decades of e-commerce, branding, marketing, human resources, executive leadership, operational management, integrative medicine, pharmacology, fitness, and CPG experience and are poised to become a market-leading brand in the soon-to-be $22+ billion-dollar Hemp/CBD industry*.

*Source: Brightfield Group