To our friends and customers across the cannabis industry,

The widely publicized public health issue of liquid vape-related illnesses and deaths is an issue that SLANG takes extremely seriously. We encourage investigation and research into the causes of this issue and hope that our collective understanding of the results leads to more thorough and effective regulation of the industry.

To say that this has been a transformational year not just for SLANG, but for the industry as a whole would be an understatement. To that end, there have been growing concerns as it relates to the safety of vaporizers. Many of you have reached out to our leadership team individually asking for clarity, for reassurance, and for insights into the origins of the products that make up the SLANG portfolio. Some early information points to the use of vitamin E acetate as a possible culprit — SLANG does not now, nor has it ever used vitamin E in its vaporizer products.

But that doesn’t really address the issue, does it? The reality is, it’s going to take time and further research in order to really drill down into the cause, and to ensure that these health issues don’t play out again in the future.

Here’s what we do know: SLANG’s brands have sold tens of millions of products, including vaporizer cartridges, and has never had an issue with product liability.

Consumers know, love, and trust our products, because we’ve delivered consistent branded cannabis servings for longer than almost anyone else. We operate the longest-licensed cannabis extraction facility in the United States. We’ve built a business on putting consumers first, and that’s reflected in our historical sales and safety data.

Checking in on growth process at a SLANG Network facility

Thanks to the long-term vision and strategy of our leadership team, we are well-positioned to weather any headwinds that may arise, regardless of which category they may impact. While this is not the first external factor to affect the broader cannabis market, it is certainly the most widely covered. That said, SLANG continues to grow its business– with branded products selling $350 million at retail with over 2 billion branded servings delivered to consumers. This is all in spite of ever-changing regulatory demands, shifting consumer interests, and countless other outside issues which are the norm in this novel industry.

Despite the current dialogue surrounding vaporizers, we are not seeing a substantial negative impact on sales of O.penVAPE products, a further testament to our belief that brands, not standalone products, drive consumer trust and lead to repeat purchases. Beyond that, we continue to monitor the situation closely, and are working collaboratively with our many retail partners to ensure their success. We’ve taken proactive steps to continue acting as stewards of SLANG brands as they find their way across retail channels and into consumer’s hands.

The Firefly 2+ offers an all-in-one solution for vaporizing both flower and concentrates

As one of the first house of brands in the regulated industry, we offer a product portfolio that is diversified. Currently, SLANG sells products into five categories, meaning vaporizers constitute only one fifth of the verticals covered by the company’s portfolio. From edibles, to beverages, to distillate, to hardware, concentrates, and more, SLANG isn’t just one thing– it’s a multi-product, multi-channel, cannabis CPG leader. We’re an all-inclusive, one-stop-shop for the vast majority of consumer cannabis needs. Our products sit on the leaderboard of branded product sales in nearly every state in which we operate, as we believe that retailers and consumers alike are drawn to the consistency associated with the SLANG name.

As a company, we’ve had laser-focus on expanding our product mix to address new needs in the market. From the introduction of SLANG Health and Wellness, which produces consumer CBD products, to our impending acquisitions of Lunchbox Alchemy and Avitas, which offer a leading edibles company and a leading flower brand, respectively — the SLANG portfolio has never been more diverse.

A taste for every palate: District Edibles offers an assortment of flavors and dominances

These new ventures are additive to an already broad portfolio: District Edibles leads sales across the edibles category, Bakked serves consumers interested in distillate and concentrates, :Pressies addresses the pill and mint vertical, Green House Seed Co. offers flower products, and offerings from The Magic Buzz address consumer needs in the beverage category. Even within the vaporizer category, the Firefly 2+ offers an end-to-end solution for consumers interested in vaporizing flower, concentrates, or both. As more and more eyes turn to the headlines about vaping, some are no doubt asking– how does this impact SLANG? The answer is rooted in the diversity of the offerings inside SLANG’s product mix– we have found success up to this point by serving more than any one singular consumer need.

As a result of our expertise in this space, our products can be found in more than 3,000 licensed cannabis retailers across North America, with ancillary devices sold on five continents. Because of this vast retail network, we are well-positioned to deploy new products into the market on very short order should any regulatory challenges present themselves. We are actively pursuing new product opportunities in the edible and flower categories, while continuing to bolster existing brands like the Firefly 2+ which offers an all-in-one solution for vaporizing both dry herb and concentrates.

Products from the O.penVAPE line, like Craft Reserve and Reserve, contain only cannabis oil and terpenes, a step forward in the evolution of our brands as we constantly improve our product mix to match consumer demand. Again, as with all products in our portfolio– none has experienced a product liability issue, despite selling tens of millions of units over the last decade.

A product for everyone: SLANG sells products into five verticals

On the topic of tenure — the SLANG leadership team offers decades of collective experience operating in the regulated cannabis industry. We didn’t just join the industry overnight– we helped create it. We’ve shaped its trends, nurtured it from its infancy into early-stage maturity, and created nationally recognized brands that fill consumer needs by addressing their collective interests directly.

Because branded servings of our cannabis products have been offered to consumers for nearly a decade, we are confident in our SOP’s, our supply chain, and the purity of our products. Transparency is at the core of what we do: when a consumer purchases a SLANG product, they can rest assured that our brand marks stand as a symbol of consistency and reliability. Many are concerned that due to the actions of bad actors operating within the black market, that consumers may see additional restrictions put in place that may impact their ability to purchase more reliable vaporizer products within the regulated marketplace. While this concern is a valid one, we’re confident in the ability of our product mix to address all consumer needs despite potential changes in the regulatory environment. While widespread legalization won’t completely eradicate the black market, we’re confident that when faced with the choice, many consumers will gravitate toward products that are sold through well-regulated channels. We’re ardent believers in this notion, as our products undergo rigorous testing throughout all of the states in which we operate, and are regularly purchased by consumers because of these standards. From pesticide testing to foreign contaminant testing, SLANG products exceed state regulatory requirements– a further commitment to our consumers.

At the core of our business, SLANG has always set out to offer a product for every consumer, in nearly every vertical, across our expansive retail network. Despite any external forces that may impact businesses with whom we share the space, it is our core belief that our capital-light, brand-first, CPG model, operated by experienced management, will create value for shareholders and consumers alike.

As always, we are here to address any questions– for investors, please send a note to investors@slangworldwide.co, media inquiries can be directed to media@slangworldwide.co and product questions or comments can be sent to info@slangworldwide.co.

Sincerely,

Peter Miller, Co-Founder & CEO

SLANG Worldwide