Hollywood Farms Inc.

Hollywood Farms Inc.

Executive Summary

In November of 2014 Mr. Prescott purchased the land assets of Wawedash Farm Ltd.; owned by a local rancher. The operation was operated as a ranch for the last 45 years. Due to the owner’s desire to retire, they put their ranch operation up for sale, and on November 27th, 2014 the vendors signed an Agreement of Purchase and Sale with Hollywood Farms.

The ranch consists of 45 quarters of land in Saskatchewan and Alberta located on both sides of the Alberta/Saskatchewan border. The closest community of any size is Oyen 35 km west with a population of 1500; the “Home” Quarter is located 2 km north of Alsask and consists of a 1400 sq./ft Nelson home, an old hip roofed barn, two workshops, 2 x 2 car garages, various bins and out buildings, it has its own well for water and a complete corral system for managing cattle during calving season.

The farming operation consists of 3,830 cultivated acres, of which 915, plus 280 acres (last year of a two-year lease) of the home half section is in transition to organic status with alfalfa sown into 915 acres of it in 2015, the 915 acres is leased to Hollywood farms for a period of 10 years with a ROFR. All the alfalfa is sold to a local alfalfa distributor for $47.50/tonne for the next three years. The balance of the land 2,915 acres is owned by Hollywood Farms and has Vendor financing of $2.6M, currently it is sown to 1180 acres of Hard Red Spring Wheat, 785 acres to hemp; the balance of 900 acres is alfalfa which is being cultivated this year and sown into hemp spring 2017. In addition, there is 2,240 acres of pasture land which is leased out to local ranchers. There is approximately $10,000 in oil revenue annually.

Hollywood Farms initial goal was to certify the land as organic, the company certification # is PC2084. Currently has 2640 acres certified organic and the 2016 crop is certified organic, which is reflected in the commodity price. For the 2016 crop year the company planted 1182 acres of Hard Red Spring Wheat and 785 acres of Industrial Hemp under contract with Hempco from Burnaby BC. (See Attached forecasts for 2016 crop year)Hollywood’s secondary goal was to explore and determine the potential for growing Hemp, realizing that after nearly 70 years of dormancy of Industrial Hemp production, most markets, and in particular North American, have lost the know how to effectively grow industrial hemp and maximise the full potential of this magnificent plant.

Hollywood Farms has determined the opportunity for full scale hemp production and processing is very large. The company will have Hemp in its annual crop rotation with a goal to produce and harvest a 1,000 acre/year within the next 3 years. This amount of production will allow Hollywood Farms to achieve their goal of becoming a leading producer and processor of Industrial Hemp for the production of seed, fibre and chaff for the medical industry in Canada. HFI will accomplish this by licensing current IP for the purpose of harvesting hemp for seed, grain and fibre production.

Hollywood Farms Inc.

Hollywood will license propriety equipment technologies that support broad acre crop production.

Fibre and seed crop agronomy Harvesting systems and techniques for all forms of crops Handling and transport systems for all crops Storage and feed systems for grain and fibre CBD rolling harvesting (4 months continuous) and storage system Stage 1 extraction system for large-scale production

Future of Hemp

“Ecofibre; an Australian company a leader in the development and specializes in the all aspects of Industrial Hemp; has been doing R&D and as a result of this research conducted with University partners, Ecofibre has recently discovered unique structural attributes in the hurd for uses such as antibacterial plastic, bio-remediation products, activated carbon for gas, liquid and other filters and eventually reinforced polymer products for 3D printers.The flowers of industrial hemp are used in medicines. Other than THC (which is a marijuana molecule) there are another 100 different non-psychoactive cannabinoids such as CBD. These non-psychoactive cannabinoids are a source of new (re-discovered) medicines, boosting the immune system, healing cancer, treating epilepsy and much moreThe outer stalk fibre is renowned for being the longest and strongest natural fibre known to man. These fibres produce cloth, rope, paper, bandages, and has the composite materials that replace timber. Further uses even include anti bacterial plastics and graphene for super capacitor batteries.

The technical properties of this fibre go beyond its historical uses. When micronised and treated, hemp fibre can have up to 80% of the technical strength of Kevlar, but is produced at 50% of the cost.Hemp seeds produce a high quality protein, essential fatty acids, and other essential dietary elements perfect for human and animal consumption. This complete protein also provides a rich source of magnesium, zinc, iron and is a good source of dietary fibre.Coupled with today’s modern science, the huge variation in the genetic traits of hemp makes it potentially the perfect plant for all forms of applications.

The oil can be used in paint, power diesel engines and can make polymers that will underpin future applications that will forever change the shape of how we do business in many industries.

The inner stalk cellulose is used today for building materials such as hempcrete. However, the anti-bacterial properties of the cellulose make it a perfect filler in

Hollywood Farms Inc.

plastics to ward against bacteria in food packaging, hospital paint, even man made cellulose viscous fibres. Provision of cannabinoids, and in particular boutique cannabinoids, is poised to become an enormous growth area as the North American regulatory framework rapidly evolves.The traditional use of the outer long fibre (25% of the crop) has been for textiles, paper and non-woven products. Historical legal challenges of growing hemp led to an extended dormancy in research which meant understanding of the potential uses of the hurd (interior cellulose fibre) were relatively non-existent.

However, the recent shifts in growing laws of hemp has meant that the world is only beginning to understand the potential uses of hurd to produce higher value products such as graphene for superconductors.” 1

Mr. Prescott was raised on a small mixed farming operation in Flaxcombe, Sk. 30 kms from Alsask, location of Hollywood Farms. Mr. Prescott left the family farm in his late teens and became an entrepreneur at the age of 21, his career working in Start ups and Acquisitions with a focus on technology. Mr. Prescott sees a lot of opportunity in agriculture, and wanted to bring his business skills and experience to the agriculture industry. Our focus is to grow organic food, diversity of cropping, ie non gluten crops such as Millet, and work towards major hemp production and processing of seed for protein powder and Hemp oil, medicinal cannabinoids and fibre for textiles and the building industry.

Hollywood Farms will provide new and unique employment opportunities to educate people in the many facets of Hemp production and processing, training up people in knowledge and expertise that will be in high demand now and in the future.

1 Ecofibre.com