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Caribbean Botanicals | Benedetto Cerilli


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A brief presentation from Benedetto Cerilli on a new CBD & hemp business set to develop in Puerto Rico. More content from Benedetto can be found on his website:

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Caribbean Botanicals | Benedetto Cerilli

  1. 1. Caribbean Botanicals
  2. 2. Caribbean Botanicals • To develop a company that will lead the CBD, hemp industry in Puerto Rico by providing a high quality seed to finished pharmaceutical grade CBD product. • 100 acre farm in Arecibo to our state of the art extraction facility. It is our mission to lead the industry in producing high quality CBD extraction and to then create pharmaceutical grade CBD products. • We also plan on partnering with a pharmaceutical company to create a research lab that will investigate the beneficial uses of CBD.
  3. 3. What is CBD? Cannabidiol is a non-psychoactive cannabis compound that doesn’t give users the feeling that they are high or stoned. Instead, it is known to have medicinal qualities and has generated significant interest among scientists and physicians in recent years. In November of 2017, the World Health Organization published a report finding that there are no public health risks or abuse potential of CBD. The largest survey on cannabidiol or CBD usage to date found that women were more likely than men to use CBD and once they started using it, were likely to drop their traditional medicine. A new survey from Brightfield Group and HelloMD covered 2,400 of HelloMD’s community of 150,000 members and did a deep dive into the usage of CBD products and their effectiveness. HelloMD is an online community that brings together doctors and cannabis patients. Aug 2, 2017 Survey: Nearly Half Of People Who Use Cannabidiol Products Stop Taking Traditional Medicines FORBES Nov. 6-10, 2017 World Health Organization Expert Committee on Drug Dependence Thirty-ninth Meeting
  4. 4. The cannabidiol (CBD) market is estimated to grow by 700% by 2020, according to Forbes. A new report by market intelligence firm Hemp Business Journal projects that the CBD market will grow to $2.1 billion by 2020, an astronomical jump in value compared to last year’s CBD market of $202 million. US CBD manufacturers are frantically looking for quality, properly extracted CBD oils that are laboratory tested and certified for product grade in various applications. Pharmaceutical companies are looking for pharmaceutical grade CBD for research. Because of hemp’s properties of absorbing contaminants from the soil while it grows, hemp’s cultivation environment is very important. Therefore, location is very important and consumers should be wary and cautious of buying hemp products that are not transparent of their origin. China, Canada and Europe all produce hemp, however, Europe’s hemp industry has been focused around industrial uses, such as material for automobiles and construction. When hemp is imported from other countries, there’s a lack of regulation and transparency behind the quality control. Majority of CBD products on the market are still imported from countries like China and Eastern Europe. This is because there is not enough hemp grown in the US to supply the growing demand for CBD. It’s also cheaper and more lucrative for businesses to import CBD oil from these foreign countries.
  5. 5. It is estimated that in the year 2020 CBD consumer sales will total around 1.15 billion U.S. dollars.It is estimated that in the year 2020 CBD consumer sales will total around 1.15 billion U.S. dollars.
  6. 6. Team • Benedetto Cerilli & Edward Varipapa (VC International) • Founders of VC International both Ben and Edward have extensive experience in start-ups and business development. • Andreas Romero • Native of Puerto Rico and the father of Hemp Legislation in Puerto Rico • Henry Diamond • Founder Pathway Capital E.B. 5 regional center • Ivan Lugo • Executive Director of Indiv pharmacetucal association of Puerto Rico • Sam Palumbo • Pioneer of hemp and cannabis industry in Colorado
  7. 7. Why now? • Legislation in place in Puerto Rico allowing for farming, extraction and manufacturing of CBD products • Growth in CBD market • Availability of greenhouses and fertile soil • Availability of an extraction facility with a clean room • Federal legislation is imminent
  8. 8. Why Puerto Rico? • Privileged geographical location: Easy access to U.S., Latin America and Europe. • Population: 3.4 million (as of July 2016) Languages: Spanish & English • Direct flights to major cities (Miami 2.5 hrs., New York 3.5 hrs., Spain 8 hrs.) • Puerto Rico residents and businesses are subject to the legal protection and mandates of both the U.S. and the Puerto Rico Constitutions
  9. 9. Why Puerto Rico • A new business friendly government has been elected in Puerto Rico and are offering tax deals that can not be refuse. • Puerto Rico offers 4% tax and pay zero in capital gains. • The list of tax incentives in Puerto Rico has become very impressive. • And only Puerto Rico can offer you these tax incentives. • US citizens are taxed on our worldwide income. • The ONLY exception to this is residents of the US territory of Puerto Rico. • Residents of Puerto Rico do not pay US taxes on Puerto Rico sourced income. Residents pay only Puerto Rico tax on local profits and capital gains. See US Tax Code Section 933.
  10. 10.  96% Federal Tax Exemption  4% Fixed income tax rate  1% fixed income tax rate for ‘pioneer” activities  12% fixed income tax rate on royalties  100% tax exemption on dividend distributions  90% tax exemption from personal property taxes  90% tax exemption from real property taxes  60% tax exemption on municipal taxes  100% tax exemption on municipal taxes  100% tax exemption on excise taxes and sales  Accelerated depreciation – 100% first year Tax Exemption under Act 73
  11. 11. Clone Finished CBD product Seed Clone acquisition Greenhouses for cloning operations Farming Extraction Manufacturing Sales and Marketing (Retail & On-line)
  12. 12. Greenhouse requirements 3 greenhouses are required 1 to accept and establish clones | 2 to grow clones to maturity Greenhouse Structure • Double Poly cover • Frames Clone incubator Benches • Galvanized Rolling benches • Galvanized Stationary Benches Irrigation & Drainage Tools Ventilation Lighting Shades Growing Medium Plant Support & cages Tractors with carts
  13. 13. SEEDS and CLONE ACQUISITION Plants from clones in various stages of growth • Purchase of clones – Denver, CO • Purchase of high grade, female CBD seeds
  14. 14. Farming (at appropriate stage of development clones will be moved to farming) 100 acres Water filtration Irrigation system Watering Systems  Tractors with accessories (plow, cultivators, etc.) Backhoes Farm Trucks (pick-up) ATV with carts Loader Fencing Bird deterrents
  15. 15. Drying and Curing Barns • Ventilation • Dehumidifiers • Drying racks
  16. 16. Phase II – Acquisition infrastructure assets and extraction equipment  10,000 purchase or lease of a 10,000 sqft facility with a 3 bay loading docks with AC.  Purchase of extraction equipment  Installation of extraction equipment
  17. 17. Types of Extraction Methods C02 • CO2 method uses carbon dioxide under high pressure and extremely low temperatures to isolate, preserve, and maintain the purity of the pharmaceutical grade medicinal oil. Ethanol • High-grade grain alcohol can be used to create high-quality cannabis oil appropriate for vape pen cartridges and other products.
  18. 18. Stages & Costs of Extraction • Primary Extraction (Crude) • Equipment Cost: • Refinement (Distillate, Pharmaceutical Grade Isolate) • Equipment Costs: • Pharmaceutical | Separates compounds • Equipment Costs:
  19. 19. Extracted CBD can produce a full line of CBD infused products • Pain balms • Soothing lotions and cream • CBD capsules (vegan, gluten free) for full anti-inflammatory benefits • Dry, liquid, full spectrum • Salves • Tinctures • Oral Drops • Isolate 99.9 • Suppositories – For menstrual cramps and pain from endometriosis • Vape cartridges • CBD chewable • Full Spectrum CBD / CBG / CGN and other cannabinoids products
  20. 20. Hemp Colorado – eCommerce Store/Shopify • Creation of website and the purchase of a domain name for the sale of CBD under the brand of Hemp Colorado • Full line of the highest quality Hemp and CBD products on the market including isolate droppers, capsules, topical creams/salves, gummies, suppositories, crystalline, soap, vape-pens and vape juice, water, dog products, and much more. • Using the the cleanest and purest hemp derived CBD isolate testing above 99% CBD. • Fractionated coconut oil is used in our capsules and our droppers as a chain triglyceride. • Lab tested CBD to ensure the highest quality with no harmful chemicals • Full service advertising, marketing, PR, social media, SEO and branding team (G Media, Advertise for America, Amazon specialist)