democratizing the cannabis bioactives supply chain for indigenous businesspersons

1. Direct to Consumer (DTC)
Industrial Hemp Condominium Driven
Market Optimization
Hemp/Canterpene Bio-Derivatives (CBDs)
Opportunity
Morris Johnson / Lifespan Pharma Inc.
Saskatoon, SK S7H 5B2
306-716-7822 lifespan.pharma.inc@gmail.com
Presented: 19 March 2018
Indigenous Inclusion in the Hemp and Cannabis Industries
Saskatoon Inn, Saskatoon

2. Those who do not learn from history are doomed to repeat it.
Can you see what is missing from this picture ….

3. USA markets see stable growth

4. The biggest impediment for Hemp CBDs is that
Hemp CBDs are not
medical/recreational Marijuana or Rx Cannabidiol

5. Rebrand, Rename and Repurpose Hemp
for the supplement and food market?
Canterpene (hemp) Bio Derivatives (CBD’s)

6. CBDs fit the emerging multi trillion dollar a year
healthspan industry search for natural bioactives

7. A LEAN, integrated supply chain
Specifically Designed For
Industrial Hemp
•Faster
•Better
•Cheaper
• Remember hemp people … The total market capitalization in
Canada for the marijuana industry is 14 billion for the 2 biggest
players and 37 billion for 84 public company supply chains so you
need a really clever plan or you will indeed be cannon fodder and
roadkill and survive on scraps others reject as non viable.

8. Why redesign the supply chain?

9. Threats
• Taxation of cannabis bioactives – The Washington and Oregon and California
experience – fixed priced taxes in a variable price market
• Canadian taxation plan- marijuana YES, Industrial Hemp foods - NO
• Advertising of Cannabis bioactives – THC or Cannabidiol my be prohibited in new
legislation; Canterpene or rebranded CBDs - not
• HC (Advertising of health claims vs DSHEA in usa) requires carefully designed
work arounds …. An uneducated consumer is the killer impediment.
• Consumer Ownership at retail is traditional model - MMPR-like condo notion
• Marijuana sold in regulatory specified specialized stores/segregated store
sections VS hemp ideally in multimodal open access display

10. Opportunities
• Patent protected lightly regulated condo supply chain – NAFTA provides
sovereignty of IP and prohibits regulations which would devalue it
• Training of workforce of aboriginal healing consultants and herbalists
• Cash from consumer sales down payments distributed to all players in the chain
of custody funds, production beginning at the farm field and continuing with
harvest to a hemp derivative, custom concentration and protection of bioactives,
nutraceutical and food formulation manufacture and distribution = Coopetition
• Transparent supply chain preserves identity from field to plate
• Ownership as virtual grow space with a physical location with a guaranteed
quantity of Canterpene (hemp) Bio Derivatives (CBDs) annual production.
e.g. 24 grams (CBDs) / unit 1X

11. Weaknesses
• Cannabis and hemp are subject to legislative controls as a result of lobbying by
marijuana industry – moral hazard is akin to competing with a racketeering
monopoly tax collection scheme disguised as a public health and safety
“protection scheme” (racket) .
• Supply chain is constrained by bottlenecks during ramp up period
• Initial advertising to alert the 300,000 legal cannabis users and broader audience
that an industrial hemp value priced alternative is required.
Within the impediment of regulations
• Public policy has moral hazard. Tax a regulated industry. Spend on law
enforcement, public marketing education, subsidization of medicare dispensed
products, discretionary spending for general revenue. A self regulating market
economy would support all the foregoing as well as increase the general
population wellness and reduce public medicare spending. Medicare benefit
thus frees up resources to reduce the cost based rationing of services.

12. Strengths
• Value pricing … when the numbers are run each .1 cents a mg of CBDs translates
into 1000$$ an acre for farmers - 2.5 cents a mg which costs consumer 620$ in
total creates the equivalent of 25,000 per acre of total retail value
• Farmers/ farmer coops, primary harvesting and conversion into primary flour or
oil derivative , secondary bioactives preservation and concentration services,
compounding of single and multi component health products and aboriginal
healer consultations are all services which can over time be performed by
aboriginal enterprises.
• Third party outsourcing available at start-up combined with condos = positive
cash flow. Market cap is based on cash flow not speculation
• NHP, NPN# exemption for Aboriginal Healers direction of Custom compounding
services

13. PATENT EXERPT: Consumer buys a virtual grow space production unit defined as a
field land location (hemp condo) Crop which is converted into unharvested bales of
hemp with ID number (seed to plate tracking)

17. PATENT EXERPT: Consumer directs crop to be converted into “bin run” grain and then milled
to a flour. Flour is mechanically fractionated , bioactives preserved and protected and
converted to secondary derivatives.
Consumer condo unit guarantees 24 grams CBD within derivatives.

19. PATENT EXERPT: Derivatives are processed into compounded nutraceuticals, finished foods or
other forms upon the direction of the consumers. By clustering requests into scaleable
groupings, the efficiencies of mass production are embodied in “custom compounded” foods
and supplements which are exempt from required NPN numbers.

22. Distribution of Benefits
• Example:
• Farmer gets ¼ cent a mg (1 kg/ acre = 2,500 farmer revenue)
• Primary processor gets ¼ cent a mg. (2,500 per acre processed)
• Secondary conversion gets 1/4 -1/2 cent a mg (extraction/purification)
• Finished conversion to compounded foods or supps gets 3/8 cent a mg
• Distribution gets 1/4 cent a mg allowance
• Marketing gets 3/8 cent a mg allowance
• DTC option for primary flour reduces total distribution and marketing
allowance to 1/4 cent a mg (1 cent a mg total )

23. Economics for Consumer
• 2 cents a mg for 65 mg a day or 24 grams = 480.00 as finished goods
• 1-1.5 cents a mg for DIY material = 240.00-360.00 economical and
affordable
• 2 cents a mg for 260 mg therapeutic crisis DIY 4X dose = 1920.00
• 1 cent a mg for Consumers who take delivery of their 65 mg a day condo
unit as a primary derivative creates a DIY economy priced option for 240.00
a year.
• There may be opportunites for consumers to get health insurance
subsidization, however LEAN pricing enables those without insurance to
not have to ration their consumption due to lack of means to pay.
• No federal excise tax of .3-.7 cents a mg for industrial hemp foods

24. System Economics
• Each acre generates 1 kg CBD using current Canadian varieties
• This base scenario generates 20,000/ acre maximum gross or 240 million of
system wide revenue per 12,000 acre cluster of farms plus local primary
processing plant at 2 cents or 120 million at 1 cent.
• Estimate is that this DTC model delivers to consumers CBD at 1 cent a mg
• Condo delivered at 15-50 percent of comparable cannabis based, federally taxed
products means accessibility and affordability
• At least ½ of total revenue can remain at the local communities where hemp is
grown
• Condos sold as a unit with 20 percent down, balance on delivery, enables
prepayment of farmers and service providers.

25. Scope and Scale of Hemp market returns….CDN hemp is the 1 percent purple bar.
Actual Canadian field CBD yield is closer to 2-4 pounds per acre.
Note that this is priced at .33 USD cents a mg.

30. Let’s grow this industry to 500,000 acres, supplying
1,000,000 kg of CBDs to 36 million people, while
generating 20 billion in system wide revenue within
10 years and distribute the 10 billion margin above
COGS ( benefits) fairly.