OpportunityInvitationCannaSystemsbruceryan@cannasystems.ca• 416 939-6143 • 905 420 4078https://cannasystems.ca

We process industrial cannabiswith new technology

CCANNASYSTEMS

INTEGRATING AGRICULTURAL TECHNOLOGY

THE CORE PROBLEM

Industrial Cannabis Sector is changing rapidly across North America

INTEGRATING GREENCARBON TECHNOLOGY

CannaSystems isdriving thebio-fibreproduction&consumerdemandmarketsinthe‘green’carbontech-nologysector.Companystrategy iscreatingsales intoexisting industrialmarketsona large scale todevelopthe growing industrial cannabis (hemp) sector with asustainablebusinessmodel.

Canadianproductionofrawfibre&corematerialsisunder-developedintoday’sindustry.Thetypicalfieldmaterial currently is notprocessed;goesun-usedandbecomesfarm‘waste’orissimplyburned.Hundredsofthousandsoftonsareavailable.Thisisawasteoftherawmaterialthatisproducedeveryyear.Turningthisintorevenueratherthanexpensecreatesvalue.

This provides farmers with additional income,makesthefarmoperationmoreprofitableandgivesusasteadysourceofrawmaterials.

Existing competitors operating three stationaryfactorieshavetwo issues.First is the logisticstobringraw stalk to their facility. Second is thewaste createdusing existing technology.Our systemaddressesbothissues.ExpansionintothenewUSmarketrunstandemwithbringingnewadvances&patentedtechnologyintothissector.

Our model solves this basic problem.

THE CORE SOLUTION

Industrial cannabis impacts several large commercial sectors. Food, clothing, shelter, fuel & plastics all come from the ability of cannabis (hemp)to convert carbon (CO2) from the atmosphere into useful products. A sustainable “green” cycle.

The KEY to this agricultural green carbon rev-olution is found in modern technology. New and patented machinery that processes cannabis in the field or in the factory is now available. This allows us to scale production & ship directly to industrial consumers. We are importing & developing this technology in the North American market sector.

Our approach solves the existing basic core problem in this market sector. To provide sufficient raw materials, industrial processing is essential. Our system does exactly that. Each unit that we deploy has the capacity to process all fibre material in any given geographical area. This solution does not require remote central facilities and the atten-dant logistical issues. As the industry & markets expands, our overall production and processing capacity expands accordingly. Thisscalesfibreprocessingefficiently.

1.DecorticatorMachinetechnology2.ProductionModulesystems3.EFuelProductiontechnology

CCANNASYSTEMS

EcoBloom  Quick  Spec  Sheet  Cleantec  Agriculture  LLC  

 

Eco  Bloom  Summary  –  6  Agriculture  production  units  operating  in  symbiosis  creating  highly  sustainable  ecosystem  resulting  in  remarkable  increase  in  goods  production,  profit,    and  system  efficiency.  Carbon  footprint  is  almost  zero  

Value  of  goods  produced  in  full  production  is  between  

$40,000  and  $70,000  a  MONTH.    

 

ShroomBloomSystem      

• Production  of  Gourmet  Mushrooms    • Output  of  greater  than  1000LB  per  

month  • Output  of  high  quality  C02    • Output  of  cold  air    

 

Cannabloom  System    

• Production  of  medical  grade  Cannabis    licensed  and  legal)    

• Output  of  20LB  +  per  month  of  high  dollar  product  

• Intake  of  Cold  air  for  cooling  • Output  of  O2  supply    • Output  of  warm  air    

 

 

BioBloomSystem  

• Production  of  high  value  sea  vegetables    

• Output  of  2000LB  +  a  month    • Intake  of  O2  warm  air  • Output  of  clean  water  for  system  

MOBILEFACTORY

SHIPDIRECTLYTOINDUSTRY

BUSINESSMODEL

CGPSDATALOGISTICS

WE PROCESS EVERYTHING

CUSTOMER BASE

Customermarketingiscomprisedoflargescaleindustriallevelconsumersoffibre&corematerials.Composites,paper,cellulose,construction,textilesandcordageusesformtheprimarytargetcustomerbase.Infrastructure considerations control the sector development in the current market. Mass production of fibre & core materials is required to serve potential customers.Sellingintolargefibre&coremarketshasvariabilitiesthatimpactsalespotentialandsuc-cess.SalesinbulkfibremarketsrequiresconsistentandEXISTINGsourcematerials.Thisisthelimitingfactor:PROCESSING.Ineachoneofthetargetfivemarketareas,itisnecessarytoprovidesamplesoftheprospectivefibresorcorematerials.Securingadequatesupplyofrawmaterialsiscriticalforsupplychainlogistics.

Significantcustomerbasedevelopmentrequires: 1.Targetmarketresearch:existingconsumersatindustriallevels. 2.Supplychainandlogistics:geo-locationmappingandshippingtocustomers. 3.Bulkfibre/coreprocessingforspecificmarkets.MarketingObjectives: A.Fibremarketdevelopmentinlocalmarkettoglobalmarkets. B.Canadiansourcingofhempfibrematerials. C.Majorconsumersoffibreproducts:corecellulose&strandfibresforindustrialpurposes.DevelopmentMilestones •Companycandeliverrawmaterial(fieldstalk)fibreagreementsfor10,000+acresundercontract. •Wecanprovideagriculturalequipmentimportpermits&rail-sidedestination. •WecanprovideimportandtransportlogisticstodeliverequipmenttoanyrailstopinCanada. •Companycanarrangethird-partycapitalequipmentfinancing.

SALES PROSPECTS

SUMMARYOFCUSTOMERPROSPECTS

CURRENT SALES PROJECTIONS

Projected first year sales:$2,200,000infibresalestocurrentprospects.Note:industrialapplicationsinautomotiveindustry.Weareworkingacustomerinquiryregarding30-40tonsoffibrematerialperweekusedinmanufacturing.Thisisanexistingoperationthatusesjute&sisalbio-fibres.Companyinterestisinadditionalstrengthaffordedbyindus-trialcannabisfibres.

Equipment sales: $1,200,000inD-8unit:$150,000kx8unitsunitstocompaniesintheindustry.Note:Canadian&USprospectswhicharecurrentlyinoperationorcon-ductingresearchinanticipationofindustrialpermits.UniversityintheUShasexpressedinterestinpurchasingdecorticationtechnology.

Field clearing contracts: $400,000@10,000acresx$40acre.Servicetoseedpro-ducersinCanada.Existingproducersofseedgrainhavea“waste”problemwiththetoughstalkmaterial.Interestisinprovidingourservicetoaddresstheissue.Ratherthanburningthestalk,farmersarewillingtopayforfieldclearing.Thisgivesusalowacquisitioncostforrawmaterialsandcreatesanadditionalrevenuestream.

Total Projected Sales: $4,000,000

Additionallong-cyclesalesprospectshavebeeninitiatedwithsuchcompaniesasautopartsmanufacturers,BombardierCanada,LSIFlooringandHomeDepot.CompaniessettingupnewCanadianconstructionoperationsfor“hempcrete”buildingarepotentialcustomersfortonsofcorematerial.

Immediateobjective:$4.2Minsales.$420kingrossprofit.Scale-upvolume&logistics.Targetgoalatfullrunrate:$10Mpermonthinbasesalesvolume.

ProductionPotential:MAXIMUMof100kacres@7tonsperacre.700,000tonsinbulksalesx$520average/ton=$365MmarketpotentialintotalcurrentCanadianoutput.

MARKET POTENTIALS

2%

15%80%

EXISTING CANNABIS MARKETS:- 2% MEDICAL - 15% SOCIAL - 80% INDUSTRIAL CONSUMER BASE

COMPETITORS

• COMPOSITES INNOVATION CENTRE

• PLAINSHEMP - MANITOBA

• EMMERSON HEMP - ALBERTA

CENTRALIZEDREGIONALFACILITIES

HAMMER MILL TECHNOLOGY

LINKSABOVEDetailsavailableuponrequest.MoreinformationonourapproachcanbefoundontheHolacracy website

TEAMBrandon PitcherHEMP CIRCLEINDUSTRIES

Bruce Ryan

Rohan Tulloch

Charles LarsenGLOBAL HEMP

GROUP

Clayton CruseCRUSE

ENVIRONMENTAL

Mark PredergastDEITY

METALLURGY

CANNASYSTEMS

FIVEMAINENTREPRENEURIALGROUPSARECREATINGANDDEVELOPINGKEYELEMENTSOFTHEHEMPINDUSTRYINFRASTRUCTURE.

CANNASYSTEMS:DECORTICATORTECHHEMP CIRCLE:INDUSTRIALCONSUMERSGLOBAL:INTERNATIONALPUBLICCOMPANYCRUSE:ENVIRONMENTALFUELTECHNOLOGYDEITY:INDUSTRIALMACHINEDESIGN

OPEN-SOURCEINFORMATION,OPERATIONSANDMANAGEMENTSYSTEMS.

GLOBALMANAGEMENTPLATFORM

•CANNASYSTEMS

•HEMPCIRCLEINDUSTRIES

•GLOBALHEMPGROUP

•CRUSEENVIRONMENTAL

•DEITYMETALLURGY

MARKET ESTIMATES

GLOBALMARKETSIZEISBASEDONGROWINGDEMANDExISTINGINDUSTRIESSUCHASCONCRETE,FIBERGLASS,TExTILES,PULP&PAPERAREALLPRIMECANDIDATESFOR“GREENCARBON”PRODUCTS.

ProductionTargetEstimates:MAxIMUMof100kacres@7tonsperacre.700,000tonsinbulksalesx$520average/ton=$364MmarketpotentialintotalcurrentCanadianoutput.

Fiberglassmarkets:compositepanels.23lbspervehicle.x20,000vehicles@$500/lb.$230M.

Textilemarkets:210,000tons@$1200/tonascottonreplacement.=$252Mmarket.

Celluloseisreaching$770/ton.Canadianoutput490,000tons=$377Mannualsales.

Pulpintopapermarkets;endlessdemand@$800/ton=$392M.

Usedas“hempcrete”70,000homes@10tonseach@$10,000perhomeascementblock=$700M.

BioMidwouldconsume1.5Blbsofcellulose.TotalCDNoutput=490,000tons=40%ofrequirements.

Increasing production to meet endless global demand

FINANCIALPROJECTIONS

$.8M D-8UNITS

$4M 1000acres

$10M 7000acres

$30M 21000 acres

$100M 42000acres

$200M 71000acres

$385M 100000 acres

$1.3M Grosscosts

$2.6M Grosscosts

$6.1M Grosscosts

$24M Grosscosts

$75M Grosscosts

$150M Gross costs

$289M Grosscosts

($.5M)EBIT

$1.4MEBIT

$3.9MEBIT

$6MEBIT

$25M EBIT

$50M EBIT

$96MEBIT

NOTE: SEE ESTIMATES & ASSUMPTIONS APPENDIX

FUNDINGREQUIREMENTS

FUNDING REQUIREMENTS - PROOF OF CONCEPT @ STAGE ONE

Industrial building processing $300,000 Six company positions: (annual) $420,000Power generation - 150 HP electric power unit $ 35,000 Sales & Marketing staff (2) $100,000D-8 Decorticator unit (stationary) $150,000 Marketing & Advertising $100,000 Seed processing & drying equipment $ 25,000 Sales Office & costs $78,000Material feeder unit $ 10,000 De-gumming equipment $ 30,000 TOTAL MARKETING & STAFF $698,000Compactor & baler unit $ 35,000 Fork lift machinery $ 18,000 Packing & shipping equipment $ 60,000 Industry sales reps (commission rate % of gross sales)TOTAL $665,000 Contracting of seed grain harvesting

Mobile D-8 Decorticator $155,000150 HP power unit diesel $ 35,000Loader $ 8,000Material Feeder unit $ 10,000Compactor & baler unit $ 35,000Tractor trailer rig for transport. $180,000TOTAL $418,000

Second Mobile D-8 Decorticator unit $418,000

TOTAL CAPITAL EQUIPMENT COSTS: $ 1,501,000

HD-4 Field Decorticator Development (AU) $ 2,000,000*M-6 Decorticator Development (Canada) $600,000*Zeoform Licensing & Production site (CDN) $ 1,250,000*

TOTAL EQUITY & DEVELOPMENT COSTS: $ 3,850,000

FINANCING REQUIRED $6,050,000

NOTES*

Equity & Development section is creating partnership positions in existing core technology development.

* HD-4 Field Decorticator (patent) investment represents 20% ownership of Textile & Composites Industries in Australia. See term sheet.

* M-6 Decorticator is new design work in Canada. Part-nership equity investment in technology.

* Zeoform (patent)* licensing ($250,000) and production site ($1M)* in Canada is end-use of core materials (hurd)

TIMELINE

SEED UNIT 1 3 UNITS FIELDWORK SALES

$10M $30M $100M $200M $385M

YEAR 1

MAJORUSCULTIVATIONBEGINS2018

YR 2 YR 3 YR4 YR 5 YR6

Developmenttime-linebuildsfirstunitformarket.Designlayoutisduplicated.Threemobileunitsaredeployedwithlargestcustomers.Fibreproductionisthensoldintoindustrialmarkets.Additionalunitsarebuiltaccordingtoincreasingdemand.

$385MINDUSTRIALMARKETSIZE

$4.2MIMMEDIATESALESPROSPECTS

NEWINDUSTRYTECHNOLOGY&PATENTS

EFFICIENT-SCALEABLEBUSINESSMODEL

GREENINDUSTRY/CARBONCREDITS

1800ValleyFarmRd•Pickering,ON•9054207048skype:brucewayne.ryan•4169396143

C CANNASYSTEMS contact:BruceRyan@CannaSystems.ca

Bruce Ryan