Leaf Concepts, LLCPartnership Opportunity

Licensed Type 7 Volatile Extraction Facility Costa Mesa, CA

CONFIDENTIAL

ContentsOpportunity

Executive Summary

Market Trends

Facility

Organization

Manufacturing Process

Financials

Appendix

CAUTIONARY NOTE ON FORWARD-LOOKING STATEMENTS AND DISCLAIMERThis presentation contains or may contain forward-looking statements about our plans and future outcomes, including, without limitation, statements containing the words “anticipates”, “projected”, “potential”, “believes”, “expects”, “plans”, “estimates” and similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which might cause the actual results, financial condition, performance or achievements of Leaf Concepts, LLC (including without limitation, the results of legal changes and commercialization efforts), or industry results, to be materially different from any future results, financial conditions, performance or achievements expressed or implied by such forward-looking statements. Given these uncertainties, both legal and otherwise, the audience is advised not to place any undue reliance on such forward-looking statements. These forward-looking statements speak only as at the date of this presentation. Leaf Concepts, LLC expressly disclaims any obligation to update any such forward-looking statements in this presentation to reflect any change in its expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based, unless required by law or regulation.

Neither Leaf Concepts, LLC nor any of its officers, employees, managers, advisers, or agents makes any representation or warranty, express or implied, as to any matter or as to the truth, accuracy, or completeness of any statement made in this presentation, made in conjunction therewith or in any accompanying materials.

Opportunity:

Partner with a proven cannabis operator & flagship manufacturing facility located in coastal Orange County.

Executive SummaryEstablished in 2017, Leaf Concepts, LLC is the crowned jewel of the Southern California cannabis manufacturing community. Located at 3505 Cadillac Avenue, Building E, Costa Mesa, CA 92626, our 7,833 square foot facility is entitled with an Type 7 Volatile Extraction annual state license and is capable of manufacturing a wide range of bulk and finished goods cannabis products.

Leaf Concepts, LLC responsibly sources raw cannabis materials and refines them into cannabis concentrates. Our product is manufactured and sold to licensed brands, distributors, copackers, and formulators operating in compliance with the applicable municipal and state laws of California. Leaf Concepts has the specific capacity to produce 40,384 grams of THC distillate per week and 2.1 million grams per year.

As one of very few licensed Type 7 Volatile Extraction facilities in California, Leaf Concepts, LLC is a truly unique opportunity to secure an equity or joint venture position with a proven operator in one of the industry’s premier locations.

Founder

Perry Srey, CEO

Founded in 2017, Leaf Concepts, LLC is developed and wholly owned by Phinaro “Perry” Srey, CEO. Mr. Srey has more than ten years of experience in the cannabis industry and has fifteen years of successful entrepreneurial experience. Mr. Srey began his career as a caregiver supplying

collectives with quality flower for patients. In 2011, he began working with local biotechnology professionals to develop medical and adult-use cannabis concentrates. His work in the manufacturing space afforded him the opportunity to help early-stage cannabis companies and

investment groups find commercial real estate, acquire the property, and secure licensing to operate in the local municipality. He has since developed and operated five (5) licensed cannabis manufacturing facilities and currently manages a cannabis investment portfolio valued over

$200 million.

Research & Development

Edward Zachowski

Prior to Leaf Concepts, Mr. Zachowski founded Alpha Omega Technologies, Inc. (AOTI), providing Engineered Chromatography Solutions for Petroleum, Biodiesel, Pharmaceutical, Specialty Gases, and Environmental Sciences companies. As a Channel Partner, AOTI applicated Agilent

HPLC, LC-MS, GC and GC-MS platforms to build a suite of custom ASTM certified analyzers, and held patents for High Speed Refinery Gas Analysis. He also worked for Waters Corporation, another market leader in HPLC and LS-MS. Mr. Zachowski has also served as Scientist/Group

Leader for Pharma companies such as Carter Wallace, Parke Davis/Warner Lambert, and Pfizer. He holds a Masters in Analytical Chemistry from SUNY at Buffalo, an MBA Certificate from Rutgers, and a BS in Chemistry from Stockton University. He also served as President of The Monmouth

County Section of the American Chemical Society.

Understanding market trends

Combined market share of vape, concentrate, edible, tincture and topical categories in California

55%

● Product categories dependent on distillate and concentrate continue to grow and take market share from the traditional flower category.

● Brands will demand increased quantities of wholesale distillate and concentrates, validating manufacturing as an integral part of the supply chain.

Projected revenue of California’s cannabis industry by 2024

$7.2 b

● The California cannabis industry is poised for tremendous growth.

● Consumer demand for cannabis products far outpaces the number of licensed retail outlets. As more retail outlets come online, overall sales of distillate-based products will continue to increase.

Total number of Type 7 licenses that have been awarded in Southern California

<20

● Annual Type 7 licenses are incredibly difficult to acquire, can take upwards of a year to gain approval, and cost hundreds of thousands of dollars to secure.

● Unlike Costa Mesa, Type 7 licenses have historically been awarded in undesirable cities and regions, making it difficult to recruit and bring products to market in key regions.

Market segments

Leaf Concepts has the capacity to produce and sell high volumes of THC distillate that powers retail brands, distributors, co-packers, and formulators focused on the fastest growing brand categories:

● Vape ● Edibles● Topicals & Tinctures

In addition to B2B distillate production, our facility also has the capability to:

● Provide 3rd party co-packing and formulation services

● Formulate, manufacture and accelerate “owned” brands

● Tolling crude to distillate for extractors

Understanding the facility

Facility ConstructionThe Leaf Concepts development project consisted of $2.2 million in tenant improvements to free-standing 7,833-square foot facility located at 3505 Cadillac Avenue, Costa Mesa, CA, creating new offices, laboratory, processing areas, and electrical service upgrades. The project was executed in two phases, with electrical service upgrades taking place in Phase 2.

The critical aspects of the project included electrical service upgrades, and meeting current building code accessibility requirements and security requirements of cannabis regulatory agencies.

Mr. Srey possesses an extensive background in construction, with expertise in commercial and residential renovation. Most important, Mr. Srey has documented success in the development and operation of industry-leading cannabis manufacturing facilities.

Leaf Concepts, LLC contracted LCS Constructors, Inc. (LCS) to manage the design and construction of this project. LCS is the leading industry specialist for the planning, design coordination and construction of laboratory and technical facilities with over 25 years of experience.

FLOOR PLAN

AERIAL

CONFERENCE ROOM

OFFICE SPACE

BREAK ROOM

MANUFACTURING

EXTRACTION ROOM

PRODUCTION ROOM

PRODUCTION ROOM

DISTILLATION ROOM

COMM. KITCHEN

K-CUP ROOM

FINISHED GOODS

SHIPPING

EQUIPMENT

Versatile Capabilities Concentrate Production

Extract. Refine. Repeat.

Leaf Concepts, LLC was built with high volume THC distillate manufacturing in mind. Our proven manufacturing process supports up to 40,384 grams per week of distillate production. Our facility also allows for production of all types and styles of concentrate including shatter, sauce and other connoisseur products.

Co-Packing

Formulate, Fill, & Ship.

The cannabis marketplace is long on brands, but short on 3rd party co-packing expertise. Our facility allows for the manufacturing, packaging, and fulfillment of all types of finished goods, including infrastructure for a commercial kitchen. Leaf Concepts is an ideal headquarters for this underserved piece of the supply chain.

Brand Incubation

Your Brand Is Born Here.

Our facility is built with full autonomy to support formulation, R&D, and production of nearly every product category. From distillate to live resin concentrates to edibles in our commercial kitchen to Kcups for beverage; Leaf Concepts provides the jet fuel to get your brand off the ground and into market.

Facility Assets ● Free Standing 7,883 square feet building (purchase option)● Prime Coastal Orange County location with Freeway Access● Type 7 Volatile Extraction license with C1D1 extraction room● Dedicated Intake, Raw Material, Subzero Storage, Extraction,

Distillation, Specialty Packaging, Finished Goods and Shipping rooms

● Commercial Kitchen-ready ● Integrated security system & access controls with 4 hour safe

room● Precision PXP v2017 extractor ● 2 Root Sciences VTA VKL70 ● 1 Propitiatory K-cup filling machine

Mar ‘19 April ‘19 May ‘19 June ‘19 July ’19 Aug’19 Sept ‘19 Oct ‘19

Construction Timeline

Development Occupancy

Temp License Go-live: 12/31/18

Advanced projects

● Equipment Delivery ● Staffing

Understanding the organization

Organizational Structure Leaf Concepts, LLC will employ a traditional flat organizational structure, with owners/founders overseeing most or all aspects of management and executive managers responsible for all regular employees/staff oversight.

Leaf Concepts, LLC has built great value in the methods and processes behind its product. As such, the company has developed a proprietary in-house training program for all new and existing employees. This program involves two primary elements:

● General practices and procedures to maintain product quality and workflow safety.

● Position-specific training elements.

Organizational Structure

COO

Manufacturing DirControllerMarketing Director

Head Distiller

Sales Manager

Social Media Coord

Asst Distiller Fulfillment Team Lead

Fulfillment Specialist

CEO

Understanding our process

Manufacturing Process Leaf Concepts, LLC strives to produce the highest quality medical cannabis oil on the market. Each step of our manufacturing process is critical to ensure quality and consistency.

To provide a better understanding of how Leaf Concepts, LLC will produce high-quality distillate at our facility, the following section details our 10-Step production process, from raw material procurement to the sale of finished goods.

Manufacturing Process (Steps 1 & 2)1. Product Intake

Following the completion of a raw material purchase, all material is forwarded to the receiving area for staging. Each incoming batch is then thoroughly cleaned to ensure that no stems, seeds, or debris are present during the balance of the production process. Material is then sorted into batches and stored in our secured freezer to maintain product integrity prior to testing.

2. Microextraction

Once a batch is slated for extraction, the raw material is taken to our grinding room, reduced to the proper size and packed into material socks. A representative sample of raw material is then microextracted to ensure each specific batch meets our quality control, potency, yield and compliance requirements prior to a full production run.

Manufacturing Process (Steps 3 & 4)3. In House Testing

Using High Pressure Liquid Chromatography, Gas Chromatography, and Headspace, along with our own proprietary methods, we perform in-house quality control testing of potency, residual solvents, and terpene profile throughout all phases of the manufacturing process.

Biomass is tested at intake to ensure its suitability for processing. Raw materials then undergo testing at specific points in the manufacturing process to determine any needs for corrective action. And finally, quality control testing is performed on all finished product to ensure it falls within our specifications.

4. Extraction

Following successful testing, the raw material is placed into our extraction machines and converted into crude oil. Our inline, closed loop extraction system from ExtractionTek Solutions provides us with the flexibility to utilize multiple solvents, including butane and propane. However, we utilize 99.9% N-Butane with no C02, ethyl, or propane mix.

After all the material has been processed, the crude oil is quarantined and retested to ensure it is free of any contaminants.

Manufacturing Process (Steps 5, 6 & 7)5. Room Temperature Soak

Following extraction, crude oil contains an excess of plant waxes and fats that can negatively affect the quality and consistency of our final product. We remove these plant waxes and fats through our RT soak and winterization processes.

Crude oil is first broken down by adding ethyl alcohol to create a room temperature solution. This solution is agitated over a period of time to ensure the crude oil breaks down into the solution. The agitated solution is then moved to the next step of the process called “winterization”.

6. Winterization

The solution in moved to our secured freezer to reduce the temperature and separate and coagulate the plant waxes and fats prior to filtration. This process lasts 24 hours at specific temperatures to ensure sufficient winterization.

7. Filtration

The coagulated fats and lipids created during the winterization process are now removed by filtering the winterized crude oil through grade-specific filter paper. Our desired material passes through the filter paper, and the unwanted plant waxes and fats remain are disposed of.

Manufacturing Process (Steps 8 & 9)8. Solvent Recovery

We now separate the ethyl alcohol from the winterized crude oil using a process called falling film evaporation. This process forces the ethyl to evaporate and turn from a liquid into a vapor.

The crude oil does not evaporate because it has a much higher boiling point, and will continue to fall down the column into a collection pot. The ethyl vapors are condensed and collected to be reused. The winterized crude oil is now considered “refined crude” and is void of any fats or ethyl alcohol.

9. Decarbonization & Devolatilization

Using controlled heat and vacuum pressure, we then convert the THCA to THC in a process called decarboxylation. We then remove the unwanted terpenes from our refined crude oil in a process called devolatilization.

Manufacturing Process (Step 10)10. Distillation

The final stage of the manufacturing process is molecular distillation. Because each cannabinoid is heat-sensitive and possesses a different boiling point, molecular distillation is the most appropriate thermal separation and causes the least amount of thermal degradation of the final product.

Using VTA’s from Root Sciences, we run a two-step wiped film distillation process that produces distillate rich in THC. The first step is our terpene cut, which removes unwanted terpenes from the refined crude. The second step distills the Delta 9 fraction down to what is called “clear distillate”. The clear distillate is then stored and retested for potency and pesticides prior to sale.

Understanding the financials

5

Pre-Revenue Run RateThree Year Pro FormaThe full pro forma can be viewed in Appendix A: Financials & Pro Forma.

Assumptions:

● This assumes trim to distillate operation only selling business to business in bulk wholesale

● Does not account for co-packing operations● Does not account for incremental per gram price increase when selling

as a finished consumer packaged good (i.e. vape carts, gummies, chocolates, cookies, etc.)

Operating Expenses

Revenue

Year 1

$11.5 M

Year 2

4

$22.9 M

Year 3

4

$34.1 M

22

$11 M

$20.6 M

$29.7 M

40,384 gramsWeekly Production Capacity

10%+Projected Net Profit Margin

Additional Resources

Appendix A ● Financials ● Pro Forma

Appendix B ● Annual Licensing ● Conditional Use Permit

Appendix C ● Equipment Specifications ● Site Plan, Floor Plan and Security Plan

Available Upon Request