Two Hands Corporation is a food distribution company serving the food service customers with digital enabled logistics capabilities.

We are a food distribution company that serves food service customers with digital-enabled logistics capabilities. Our goal is to consolidate the highly fragmented micro food merchant wholesaler market in Canada through acquisitions.

We are quoted as TWOH on the OTC and listed under the same ticker on the CSE in Canada. The CSE is a fully regulated stock exchange located in Toronto, Canada.

There are over 2,600 micro food merchant wholesalers in Canada, with nearly 1,000 based in Ontario alone.

To qualify as a micro wholesaler, they must employ between 1-4 employees and generate $1.5 million to $5 million in annual revenue.

These micro merchants face a multitude of challenges that threaten their survival:

• Reliance on manual processes - With limited staff, they lack capacity to adopt technology and automation tools to modernize operations. Most still use paper-based records. This leads to inefficiency and human error.

• Narrow product range - Typical micro wholesalers may carry only 50-150 SKUs focused on very specific categories. This limits their customer appeal and makes them expendable.

• Limited purchasing power - Due to low order volumes, micro wholesalers pay up to 30% more for inventory compared to large competitors. This severely impacts margins.

• High customer concentration - The average micro wholesaler depends on just 2-5 major customers for 80% of revenue. The loss of even one customer can be devastating.

• Delivery challenges - With no warehousing or in-house delivery, micro wholesalers are forced to outsource logistics. This increases costs, damages items, and frustrates customers.

• Lack of marketing - Micro wholesalers rarely have expertise or budget for digital marketing and customer acquisition. They rely solely on legacy sales tactics.

• Access to capital - The limited scale and financial metrics of these small businesses makes it extremely difficult for them to secure loans or investments.

• Vulnerability to shocks - Supply chain disruptions, recessions, and rising costs hit micro merchants the hardest. They lack the reserves and resilience of larger players.

In the current environment, these challenges are amplified:

• Post-pandemic – Extended closures, labor shortages, safety costs damaged many micro merchants

• Inflation – Rising costs are squeezing already thin margins to the breaking point

• Supply chain turmoil – Micros can’t secure consistent inventory as larger competitors

• Recession fears – Consumers reducing spending on dining out impacts food service revenues

This combination of internal and external threats leaves micro food wholesalers extremely vulnerable at this moment. Our solution provides a pathway to stabilize and grow their business.

At Two Hands, our solution is centered around strategically acquiring and integrating micro food merchants onto our scalable platform. Here's how it works:

First, we identify acquisition targets based on criteria like customer lifetime value, retention rates, operations size, and culture fit. We look for merchants with high-quality customers and established supplier relationships.

Next, we onboard them by migrating their customers and data onto our unified e-commerce platform. This instantly expands their reach to our existing 200+ restaurant, hotel and venue customers.

We integrate their unique product catalog of specialty ingredients into our distribution network of over 10,000 SKUs. This boosts their selection while giving our customers more variety.

Our team of logistics experts provides end-to-end distribution capabilities, from storage to last-mile delivery. This eliminates overhead for merchants and ensures reliable nationwide reach.

We leverage our buying power to negotiate lower costs from suppliers and pass those savings to merchants. This significantly improves their margins.

Our digital platform provides merchants robust analytics on sales, inventory, and customers. This allows data-driven decisions to optimize operations.

We incentivize owners to join Two Hands through stock and options. This allows them to reduce day-to-day stresses while participating in the growth upside.

Post-acquisition, our team provides hands-on support to elevate every aspect of their business. As part of Two Hands, micro merchants gain resources and capabilities exceeding their standalone potential.

By acquiring merchants in a targeted manner, we rapidly scale our customer base, distribution footprint, and offerings. Our approach turns mom and pops into major players.

We have a refined playbook for acquiring micro food merchants and seamlessly integrating them into the Two Hands ecosystem. Here are the key steps:

Targeting:

• We use data and metrics like customer lifetime value, retention rate, and basket size to identify high-quality prospects.

• Ideal targets have strong community ties, growth potential, and a cultural fit.

• Our initial focus is wholesalers with $1-5M revenue and 1-4 employees to efficiently onboard.

Evaluation:

• We thoroughly assess financial records, supplier relationships, product mix, and operations.

• meetings with owners build rapport and align expectations.

• If Two Hands can clearly unlock growth, we extend an offer.

Onboarding:

• We migrate customers to our e-commerce platform for a turnkey digital shopfront.

• Our logistics network kicks in for warehousing and delivery.

• We provide training to optimize their use of our systemic tools and data.

Integration:

• Their product catalog integrates with our 10,000+ SKU distribution capability.

• Our buying power immediately reduces their inventory costs.

• We implement unified marketing and sales processes.

• Ongoing support helps them capitalize on Two Hands resources.

Incentives:

• Equity in Two Hands gives original owners upside while reducing day-to-day ownership burdens.

• We structure deals for the right motivations, with earn outs based on growth targets.

This systematic process allows us to rapidly consolidate merchants under Two Hands. Owners gain instant access to new capabilities while retaining identity. Unlocking their potential catalyzes our growth flywheel.

We began operations in mid-2020, validating our model with two complementary business lines:

1) Online Grocery - Served Greater Toronto before pivoting to a special program model for universities and corporate campuses. This allowed us to refine our e-commerce technology, delivery operations, and category management. We reached 1,300 customers with a catalog of over 3,000 SKUs.

2) Food Service Wholesale - Our core business today, serving 200+ restaurants, hotels, and event venues. We carry 1,000+ Italian food products. This generated steady growth, with Q1 2023 revenue exceeding $200k.

These successes gave us confidence in the Two Hands concept. But running both businesses spread our focus.

So, in Q2 2023 we divested the online grocery operations through an asset sale. This unlocked resources to accelerate our wholesale growth strategy.

We are now focused entirely on rapidly scaling our wholesale business through targeted merchant acquisitions. Our goal is bringing 4 merchants onboard by end of 2023, adding another 5 annually after that.

To fund this growth, we are engaged in financing discussions.

By consolidating merchants under Two Hands, we can transform independent operators into an industry powerhouse. Our traction to date shows our model delivers results.