CANNAINVESTOR Magazine June 2016 - Page 10

PRODUCTS & SERVICES CLS aims to accelerate Cannabis Extraction & Conversion through proprietary methods while increasing quality & volume/output in a Compliance, Testing & Standardization Environment. Processing Revenue: Arrange with growers to apply proprietary technology to generate cannabinoid concentrates which may be delivered in bulk or in individually-labeled retail-ready packages of oils, edibles, wax or shatter Charge a flat fee by weight of the finished product or render our services in exchange for a percentage of the finished product which we will then sell to cannabis distributors or dispensaries. Processing Facilities: Lease buildings at which to construct processing facilities (Cost est. between US $1M - $3M) built within approx. 4-6 months after any applicable licensing and permitting requirements have been met Subject to the availability of capital, open 2-3 processing facilities in the next 18-24 months (with the capacity to process between 2,000 - 5,000 lbs of cannabis/month), for use by licensee or directly Sale of Products and Brand Creation: CLS may purchase unprocessed cannabis plants from growers, process the cannabis, then sell the resulting cannabinoid concentrates, such as oils, wax, edibles and shatter to distributors or dispensaries Eventually, CLS may explore creation of its own brand of concentrates for consumer use Consulting Services CLS Consulting will offer consulting services, regarding a variety of areas such as licensure, growing, marketing and distribution to cannabis-related businesses such as growers and dispensaries COMPETITIVE ADVANTAGES • CLS’ patent pending proprietary process is expected to reduce growers’ costs and provide them with double the amount of Delta-9 THC compared to our competitors. • CLS expects to produce a much larger amount of Delta-9 THC from plants resulting in higher revenues. • The patent pending proprietary process is expected to result in market-changing product consistency. • CLS expects to produce cleaner, safer products as a result of the advanced testing that will be used at its sophisticated labs. • CLS expects to provide one-stop, multi-state services to companies wishing to build private label brands that deliver consistent products. Market Drivers and Opportunity • Legalized cannabis market expected to grow from $7.1B in 2016 to $22.8B in 2020 (Arcview Group) • 24 States Legalized for Medical • 4 States & Washington DC Legalized for Recreational Deployments • Licensing Partner’s Affiliate Completes Construction of Cannabis Grow in Denver, Colorado • Expect to be Cash Flow Positive from this One Partner in 12 Months People • Management & Insiders Invested $2.43M To-Date 75% Held by Management & Insiders Proprietary Technology & Methods • Proven/Validated Extraction & Conversion of Cannabinoids from a Plant • Increased Yield, Higher Quality & more Consistency • Disrupting the Market by Increasing Output from the Plant & Revenue for the Growers