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Palm Beach Vapors Corp
and
GnuPharma Corp
Breakthroughs Straight From Nature™
Executive Summary
Palm Beach Vapors and GnuPharma Corporation are ‘arms length’ companies controlled by Chip
and Cynthia Paul.
➢ GnuPharma® was then founded to continue development of other products for health and
wellness. The company has developed a ‘covering law’ theory regarding the endocannabinoid
system (ECS) and its influence on the human body. Current research indicates that the ECS
plays a role in almost every major function within the body. The company has looked across
the scope of research on the ECS and believes that the ECS is "the" master regulatory system
in the body and is the bodies’ major mechanism of action for control. Given this, we have
developed a predictive model for the ECS which enables us to design and engineer natural
medicines to affect specific results within the body. 
➢ Palm Beach Vapors® started early in 2013 with a single unit . In December of 2013, after much
fanfare in the press, the company became the nation's first brick and mortar franchisor of an
e-cig concept. By early 2015 the company had sold over 12 units and was making steady
progress. The company combines personalized service with customer education, and science
to help better achieve quitting smoking or multiple personal health goals. The companies
employees are well trained to provide the highest quality customer service, and education
that’s available today. As part of their growth, the company’s co-owner developed and
patented a technology called ‘GnuVape’ to replace nicotine.
The companies are looking to raise $2,980,000 to fuel both companies' growth and enable them to
continue the momentum that has accelerated over the past 2 quarters. Individuals may invest in
both companies, or select an investment in the company which matches their own personal
investment criteria. As such, the Use of Proceeds breaks out the two company’s needs individually.
Breakthroughs Straight From Nature™
Background – Rationale - Discovery
The twin companies of Palm Beach Vapors© and GnuPharma© were founded by husband and wife team Chip and
Cynthia Paul. The couple, both [now past] cigarette smokers were looking for a better way to quit smoking. In the
process they discovered the emerging world of vaping. In almost a personal defensive maneuver, the couple opened
their own vape shop to learn and take advantage of this new industry and importantly its technology and products.
Chip, with a solid history in both ‘inventing and discovery’ and business believed he could create a nicotine
replacement in a vape format that could mirror the effects of nicotine without the additional poison included in
cigarettes. Cynthia, with a history of business and healthcare felt she could create a ‘new’ type of vape store; one
committed to health. And so Palm Beach Vapors and later GnuPharma were born.
During the first year the company drew a lot of press and began franchising their Palm Beach Vapers concept. Within
two years, the company had expanded to almost 20 locations across multiple states, and began attracting more
attention from the press.
In the interim, while studying addiction in mind and behavior, Chip discovered a new scientific and medical bodily
system called the ‘endocannabinoid system’ [ECS] which had only been discovered within the last 20 years. Chip soon
learned that while 1000's of studies had been performed on this new ECS, including many with the use of spices,
because of traditional medical and scientific practices the majority of these studies fit nicely within the research
[Ph.D.'s] or practice [MDs] area of medicine. As the saying goes the cardiologist had no idea what the rheumatologist
was saying. Chip began to take note and began development of a taxonomy that could show, effect and even begin to
predict the ‘entourage effect’ of these spices across the different disease states studied, thereby being able to affect
multiple parts of the body in more comprehensively supporting the body in its interrelationship of biological and
neurological systems .
Breakthroughs Straight From Nature™
Our History
• Palm Beach Vapors opened its first corporate store in March of 2013. The
store met with immediate success.
• In December of 2013, Palm Beach Vapors became the nation's first e-cig
brick and mortar franchisor of an e-cig concept.
• By early 2015 the company had sold over 12 units and was making steady
progress.
• In early 2015 it became clear that Palm Beach Vapors would patent a
technology called GnuVape
• By mid-2015 it became clear that Palm Beach Vapors could patent
several technologies that were unrelated although synergistic to vapor
• Late in 2015 GnuPharma was formed to hold the technological
developments spawned by Palm Beach Vapors as an independent R & D,
licesnsing and marketing company.
Breakthroughs Straight From Nature™
From Cynthia Paul – Co-Founder
My husband Chip Paul and I started Palm Beach Vapors in March of 2013 with one
corporate owned store in Owasso, Ok. We did it for fun, we had no idea that our concept
would take off like it did. We were not happy with the local electronic cigarette stores in
our area and we realized that others felt the same way. The customer service in our local
vapor stores, was awful, the products were confusing, no one took the time to educate
you. So we decided we can do this better, and we did! Now we have 17 open units and
growing more and more every day. We are the world’s first electronic cigarette franchise
concept. We are literally “Changing the World One Bottle at a Time”.
My advice to someone getting into our business is to really do the research about
franchising first. The Palm Beach Vapors franchise opportunity has taken the
guesswork, research time, and unnecessary expense out of launching a vapor store.
Our turnkey franchise opportunity provides everything you’ll need to start your business.
It includes our proprietary trade secrets, operating systems, operating procedures, and
support. You run into many challenges when opening a vapor store. We have tried to
take the guess work out of that.
Additionally, we are just entering a world where “vape” will be regulated. We intend to
lead the industry with innovative new products from our sister company GnuPharma
Corp. We believe we are on the road to changing medicine in GnuPharma! That will
certainly translate into exciting new products. And, we intend to begin to introduce
exciting new delivery methods in the future. We believe between our two companies we
are perfectly situated to both lead the lead industry and lead a revolution in new health
and wellness.
Breakthroughs Straight From Nature™
IP - Patents & Trademarks
Palm Beach Vapors
Breakthroughs Straight From Nature™
Palm Beach Vapors
• Began in December of 2013
• Brick and mortar retail concept
• Turnkey and low cost system
• First to franchise a US vapor concept
• National brand and National leader
• Gross profit averages 68% across system
• 14 open units
• Consistent national media coverage: 2014 - current
• Launching Palm Beach Vapors 2.0 soon!
Breakthroughs Straight From Nature™
Palm Beach Vapors
Value Proposition 1
• Proprietary juice system allows owners very high profit margins
• Collective buying helps drive wholesale pricing down
• Significant IP emerging from GnuPharma including
herbal nicotine replacement
• Established national brand
• Affords owners the flexibility to add additional lines of business
(ALB’s)
• ALB’s do/will/could include herbal, homeopathic, cannabis, &
others
• SOP’s in place for core business and SOP’s being written for
ALB’s as they roll out into stores
Disruptive Retail Brand and Approach
Breakthroughs Straight From Nature™
Palm Beach Vapors
Value Proposition 2
Metrics We Can Develop
• 50% of PBV sales are juice
• The average PBV sale is $22
• The average customer will visit
2 X / month.
PBV Quick Facts National Quick Facts
• Market is $3.5B
• Juice market is $1.75B (implied)
• 10% or $32M vape
• Market is growing at 20%-25% annually
0
2
4
6
8
2016 2017 2018 2019 2020
US VAPOR MARKET (20% Growth)
Breakthroughs Straight From Nature™
Palm Beach Vapors
Value Proposition 2
Disruptive Juices
• In early 2016 GnuPharma developed an herbal nicotine replacement
• Decision was made to hold the discovery until post FDA ruling
• Herbal nicotine replacement ameliorates concerns with FDA regulations
• NO OTHER VAPOR COMPANY IS IN THIS POSITION
• Initially dubbed GnuNic, the company is looking at rebranding its name
• Herbal nicotine replacement juice was introduced by the
Palm Beach Vapors franchise system in early July.
Breakthroughs Straight From Nature™
Palm Beach Vapors –
3 Corporate owned locations set the foundation
Breakthroughs Straight From Nature™
Palm Beach Vapors
Simple Clean Design allows for focus on products and inside signage
Breakthroughs Straight From Nature™
Palm Beach Vapors/GnuPharma
Relationships
Unrestricted
Advertising
Restricted
Advertising
Consumers Consumers
Wholesale
Vapor and related
products direct
to consumer
Intellectual property, including
juice is supplied by GnuPharma
Intellectual property could be
licensed
Direct to consumer
sales of GnuEndo
and GnuVape
products
GnuPharma Corp
Breakthroughs Straight From Nature™
The ECS - -What Does It Do?
The endocannabinoid system is not unique to humans. Research has shown that this
system is common to all humans and vertebrate animals – suggesting its significance in the
process of evolution.
Experts believe that the endocannabinoid system has existed in living organisms for 500
million years.
Although the endocannabinoid system affects a wide variety of biological processes (such
as appetite and sleep), experts believe that its overall function is to regulate homeostasis.
Homeostasis is a key element in the biology of all living things and enables the body
to maintain stable internal conditions that are necessary for survival.
Disease is simply a result of some aspect of failure in achieving homeostasis,
making the endocannabinoid system a unique target for medical applications.
Breakthroughs Straight From Nature™
Foundation & Science
The Endocannabinoid System
The endocannabinoid system (ECS) is a central regulatory system that affects a wide range
of biological processes in the body. The human body produces a number of cannabinoids.
Decades of scientific research on the endocannabinoid system has resulted in the
discovery of two types of cannabinoid receptors, CB1 and CB2. These receptors are found
in every part of the body, but are most prominent in the brain and immune system.
When cannabinoids bind to CB1 or CB2 receptors, they act to change the way the body
functions.
While cannabinoid receptors are primarily expressed in the brain and immune system,
researchers have identified cannabinoid receptors in a variety of other places as well,
including the peripheral nervous system, cardiovascular system, reproductive system, and
gastrointestinal and urinary tracts.
The discovery of the ECS is very new. The bulk of the research occurring within the past
10-15 years. In fact, ECS is so new, that it is only taught in about 20 medical schools.
The research curve is just beginning on the ECS and the number
of ‘medications’ based upon an ECS model are modest.
Breakthroughs Straight From Nature™
The Endocannabinoid System
Our Approach and Model
It is clear from the research literature that the endocannabinoid system (ECS) is a master
neurological system. The company believes that it is, in fact, THE master regulatory of all
bodily systems, and superior to specific organ control mechanisms themselves.
➢
It plays a role in almost every human physiological function.
➢
It appears to be the master body regulator.
➢
Organs are regulated (balanced) thru ECS action
➢
Neurology is regulated thru ECS action
➢
It is variable (resource levels change) and resource driven system.
➢
It can be influenced, certainly by cannabis, but also other herbs.
We believe the GnuPharma theoretical model is PREDICTIVE.
This means we can predict the effect that will be achieved by stimulating one neurological
target over another. For instance, by exciting one set of neurological circumstances, we can
stimulate appetite, by exciting another we can decrease appetite. We can 'tune' between the
extremes and make predictive assumptions as to effects.
Breakthroughs Straight From Nature™
There are thousands (1000’s) of research studies that indicate that the ECS is involved in a
variety of physiological processes. A simple search of NIH.GOV as indicated below will
return numerous studies.
Immune Response The ECS is the complete regulator of the immune response. From
inflammation to stem cell cueing the ECS is deeply involved here.
Appetite The ECS controls and manages feeding and craving behaviors
Pain The ECS controls the pain response is several ways. Inflammation is closely tied to pain and
the ECS reduce inflammation. Further, pain is a synaptic event and the ECS manages and
more effectively regulates synaptic interactions
Mood The ECS’s main internal transmitter is something called anandamide. Anandamide is also
known as “the bliss molecule”. In order for mood to be elevated, anandamide has to bind with
greater frequency.
Memory The ECS regulates memory functions thru the brain. Several studies indicate that the
ECS is involved in memory package and storage. While thought to effect short term memory,
engagement of the ECS actually leads to better storage and retrieval of information.
The ECS - -What Does It Effect?*
*To see the significant number of research studies on the ECS,
search endocannabinoid + any of the above functions
Breakthroughs Straight From Nature™
The Endocannabinoid System
Our Theory and Its Importance
Our theory indicates that the ECS needs DAILY resources. Very similar to how
we think of nutrition. We understand that without certain vital vitamins, our
bodies cannot function at peak performance. Similarly without ECS resources,
our bodies will not function at full capacity.
THIS IS THE VERY REASON MEDICAL CANNABIS APPEARS TO BE A
PANCEA MEDICINE. ALL THAT IS HAPPENING IS THAT THE BODY IS
GIVEN THE RESOURCES IT NEEDS TO HEAL ITSELF ACROSS AND BY
EVOKING OTHER BIOLOGICAL SYSTEMS.
Breakthroughs Straight From Nature™
What Happens Without ECS Resource?
Or What If My “Lake Level” Is To Low?
• By theory, the ECS is what regulates our
functioning as humans. Without resources,
like Apollo 13, things have to be shut down
• By theory, organs are shut down as to
function by the ECS
- For instance, if you only have resources to
power 75% of your liver, that is what you
will use. In times of stress, your organ
might not have the “horsepower” it needs
to deal with the stress
• With a degraded ECS our bodies are
incapable of proper regulation and will begin
to break down along our genetics
• This could be in the form of cancers, auto-
immune or other systematic failures.
Breakthroughs Straight From Nature™
Can Your ECS Resources or “Lake Level” Be Measured?
Yes! The ECS level can be
measured by a protein in the blood
called Anandamide.
The ECS level will fluctuate daily as
resources are short lived
Basically, the ECS resources give your body the fuel to
be genetically complete
Breakthroughs Straight From Nature™
A Good Analogy
What happens without resources?
What if our “lake level” is low? This is measurable by the amount of
anandamide in the blood.
ECS with low resources
on injury
Ideally ECS would cue
resources to the area and
would deal with pain
response, inflammation,
and stem cell cueing.
Without resources
something will suffer
(Pain, inflammation, or cell
cueing) and will suffer
along the lines of
resources and genetics.
Injury
Breakthroughs Straight From Nature™
How Do We Increase Our ECS Resources?
Take GnuPharma Products
AND
Cut down on the amount of gluten in our
diets
Understand that we need nutrients and
resources to fuel our body
Begin eating for our neurology as well as
general health
Breakthroughs Straight From Nature™
Tremendous Promise
If our theory is correct, we have just scratched the surface
with what we can do. We are simply giving the body the
resources it needs to heal itself. Perhaps, in the near
future it will be possible to:
Target organs for direct CB1
stimulation, resulting in full and
better organ function
Breakthroughs Straight From Nature™
Tremendous Promise
If our theory is correct, we have just scratched the surface
with what we can do. We are simply giving the body the
resources it needs to heal itself. Perhaps, in the near
future it will be possible to:
Better regulation of the body,
resulting in longer life span, better
health, better functioning, and
better satisfaction
Breakthroughs Straight From Nature™
Tremendous Promise
If our theory is correct, we have just scratched the surface
with what we can do. We are simply giving the body the
resources it needs to heal itself. Perhaps, in the near
future it will be possible to:
Direct targeting and healing of
auto-immune diseases
Breakthroughs Straight From Nature™
Tremendous Promise
If our theory is correct, we have just scratched the surface
with what we can do. We are simply giving the body the
resources it needs to heal itself. Perhaps, in the near
future it will be possible to:
Strong promise for healing
cancers
Breakthroughs Straight From Nature™
Tremendous Promise
If our theory is correct, we have just scratched the surface
with what we can do. We are simply giving the body the
resources it needs to heal itself. Perhaps, in the near
future it will be possible to:
Mood improvement
Breakthroughs Straight From Nature™
How We Do It!
Herbal Manipulation of the ECS
Because of our theory of the ECS, and because of our understanding of what is
necessary to “activate” the ECS, we view the system as a series of channels with
“sliders” that can be tuned for influence. So, we have herbs that will influence
directionally in a channel, and others that will influence in the opposite. Theory said
that “pain” should be better managed at certain “slider” positions, and we have found
that to be the case. Further, we postulated sleep would live at another “slider” position,
and have found that to be true.
When we say our theory is “predictive” we are saying that by our theory and knowledge
of herbal influence we are able to develop formulations for very specific influence.
Breakthroughs Straight From Nature™
FINANCE
Breakthroughs Straight From Nature™
Use Of Proceeds
GnuPharma
R & D and facility $250,000
FDA studies, regs and complaince $250,000
G & A and corporate development $500,000
Marketing and Trade shows $500,000
Product Launch/s $100,000
Total $1,600,000
Downtown Tulsa Location $250,000
Oklahoma City locations (2) $250,000
IT, Web & Social Media Infrastucture $500,000
Franchise Director and Support $120,000
Advertising, Media and Collaterals $200,000
Total $1,320,000
Grand Total $2,920,000
Breakthroughs Straight From Nature™
Proforma For Combined Entities
2016 2017 2018 2019 2020
Revenues
PBV Company Stores $ 770,346 $ 2,468,078 $ 4,967,881 $ 7,986,452 $ 11,971,492
PBV OnLine Juice Sales $ 450,000 $ 3,500,000 $ 5,250,000 $ 7,000,000 $ 8,750,000
PBV Franchise Royalties $ 720,092 $ 2,271,079 $ 6,449,091 $13,368,563 $ 35,314,758
GnuPharma Sales $ 480,000 $ 1,440,000 $ 4,320,000 $16,000,000 $ 40,000,000
GnuPharma Licensing $ 3,000 $ 12,000 $ 18,000 $ 24,000 $ 36,000
Gross Revenue $ 2,423,438 $ 9,691,157 $ 21,004,973 $44,379,014 $ 96,072,250
Cost of Goods Sold
COGS $ 688,645 $ 2,649,513 $ 5,784,157 $12,026,803 $ 26,408,873
Total COGS $ 688,645 $ 2,649,513 $ 5,784,157 $12,026,803 $ 26,408,873
Gross Profit $ 1,734,793 $ 7,041,644 $ 15,220,816 $32,352,211 $ 69,663,377
Gross Profit Margin 71.6% 72.7% 72.5% 72.9% 72.5%
Selling, General & Administrative
PBV Wages & Compensation $ 613,500 $ 1,253,675 $ 1,432,684 $ 1,441,634 $ 1,469,082
GnuPharma Wages & Compensation $ 399,500 $ 720,975 $ 926,049 $ 936,302 $ 1,065,815
Marketing $ 372,512 $ 728,311 $ 1,664,379 $ 2,430,975 $ 5,233,134
Rent, Utilities & Communication $ 137,250 $ 207,000 $ 212,250 $ 212,250 $ 215,250
Depreciation & Amortization $ 50,000 $ 137,500 $ 197,500 $ 260,000 $ 320,000
Other Selling, General & Administrative $ 181,125 $ 276,000 $ 343,625 $ 348,625 $ 355,125
Total SG&A $ 1,753,887 $ 3,323,461 $ 4,776,486 $ 5,629,787 $ 8,658,406
Net Operating Income (EBIT) $ (19,094) $ 3,718,183 $ 10,444,330 $26,722,424 $ 61,004,971
Breakthroughs Straight From Nature™
Palm Beach Vapors
Pro Forma
Breakthroughs Straight From Nature™
Investment Opportunity
• Each company is currently valued at $8m.
• Minimal investment is $25,000
• Each $25,000 investment will generate .312% of the issued and outstanding shares of the companies
or .156% of each individual company.
• A maximum of $3.0m will be raised at this round which will represent 37.50%
of the combined companies’ issued and outstanding shares or 25,409,501 shares.
• An individual may chose to invest in one of the companies specifically, which would in effect double
their investment in % and shares for this first round.
Breakthroughs Straight From Nature™
MARKET POTENTIAL & EXECUTION
Breakthroughs Straight From Nature™
The Brands
Breakthroughs Straight From Nature™
Market Potential For GnuPharma
• Disruptive at a minimum!
• Focused Markets
• Finding proper messaging
• Products work and work well
GnuPharma Quick Facts
“There be dragons!” We are in unchartered
waters, with something never done before,
that is very difficult to explain and discuss!
Breakthroughs Straight From Nature™
• Total vape market is currently $3.5B with steady growth
• The [vape] juice market alone is $1.75B
• 10% or $32M are vape adjuncts and hardware.
• Market is growing at 20%-25% annually
Market by the numbers
Breakthroughs Straight From Nature™
Marketing, Promotions and Social Media
Breakthroughs Straight From Nature™
Social Media, or Influencer Marketing:
Holds four main activities
Identifying key social influencers in our markets, and ranking them in
order of importance.
Marketing to influencers, to increase awareness of the company and
products within the influencer community.
Marketing through influencers to increase market awareness of the
company and its products amongst target markets.
Marketing with influencers, turning influencers into advocates of the
Companies.
Breakthroughs Straight From Nature™
Social Media Affords the Company
1. New prospects to be introduced to the company.
2. Current users [and key influencers] to be reinforced &communicate to their peers
3. Halo effect of users ‘sharing’ information with friends, thereby
turning customers into a motivated salesforce.
Breakthroughs Straight From Nature™
Traditional Advertisements
Reinforce Social Media Messages
1. In Store Ads
2. Local Publications
3. Inserts
4. Posters for Local Store Marketing
Breakthroughs Straight From Nature™
In-Store and Area Canvassing
Breakthroughs Straight From Nature™
In Store, Local Store Marketing, & ‘insert’
Advertising
Breakthroughs Straight From Nature™
Segmentation between ‘Juices’
as with products from Automobile Brands to Alcohol
House Blends
Premiums; upscale… pre-blended
The finest pre-blends in limited batches
Breakthroughs Straight From Nature™
…and always targeting potential Franchisees
Breakthroughs Straight From Nature™
PRODUCTS
Breakthroughs Straight From Nature™
Pain Pathway Immune Pathway Mood Pathway
Craving/Regulation
Pathway
GnuRelief - provides
increased resources and
down regulates ECS
Provides resources to
increase ECS tone. Down
regulates the ECS
resulting in better pain
management
Some Benefit
GnuRelief increase ECS
tone, but down regulates
the ECS system. This
results in a relaxed state
with high sense of well
being being
Increased ECS tone and
down regulation result in
somewhat higher craving
behaviors (munchies).
Will modify opiates or
benzo’s to more moderate
GnuSleep - provides
increased resources and
down regulates ECS
Provides resources to
increase ECS tone. Down
regulates the ECS
resulting in better pain
management
Some Benefit
GnuSleep increases ECS
tone, but down regulates
the ECS system. This
results in a relaxed state
with high sense of well
being being
Increased ECS tone and
down regulation result in
somewhat higher craving
behaviors (munchies).
Will modify opiates or
benzo’s to more moderate
GnuFoundation - provides
increased resources and
up regulates the ECS
Some Benefit
Provides resources to
increase ECS tone. Up
regulates the ECS
resulting in better immune
response
Provides resources to
increase ECS tone. Up
regulates the ECS
resulting in more
anandamide, also called
“The Bliss Molecule”
Up regulated ECS results
in less hunger and better
management of cravings.
Craving more directly
equal resources need
GnuFoundation - provides
increased resources and
up regulates the ECS
Some Benefit
Provides resources to
increase ECS tone. Up
regulates the ECS
resulting in better immune
response
Provides resources to
increase ECS tone. Up
regulates the ECS
resulting in more
anandamide, also called
“The Bliss Molecule”
Up regulated ECS results
in less hunger and better
management of cravings.
Craving more directly
equal resources need
Our Current Formulations
What We Think We Are Effecting and How
Breakthroughs Straight From Nature™
Mind: Designed to improve the mood,
increase clarity and focus.
Body: Designed to provide the core and
basic resources for the endocannabinoid
system (ECS). Inflammation response
should improve, craving behaviors should
be less intense, general auto immune
conditions should lessen. Absorption
should increase as well as overall digestive
function. A decrease in appetite is normal.
Spirit: Gently uplifting
Breakthroughs Straight From Nature™
GnuVape Foundation is a a Vape based product using
the GnuFoundation ore of herbs, but also containing
an herbal nicotine replacement.
Breakthroughs Straight From Nature™
Product Information
GnuFoundation/GnuVape Foundation
Form: Capsule = GnuFoundation (60 capsules) / Vape =
GnuVape Foundation (15ml bottle)
Description: our overall ECS boosting product.
What we can claim: anti-inflammatory, anti-oxidant, anti-
cancer, anti-depression, anti-nausea, improved energy,
improved cognition, allergy prevention.
How we describe the product: Our general health product
designed to improve mood, increase immune function,
and improve overall health.
What we have seen anecdotally: Any auto-immune illness
will improve with general use, including MS and Crohn’s
(most data). Autoimmune skin conditions such as
psoriasis will improve. Feed and craving behaviors will
come in line and weight will be regulated.
Breakthroughs Straight From Nature™
Mind: Designed to provide relaxation while
still keeping clarity
Body: Designed to provide the core and
basic resources for the endocannabinoid
system (ECS). Targeted at the pain response
and inflammation response, reports are of a
consistent two level drop in pain on a 10 point
scale.
Spirit: Calm and relaxed
Breakthroughs Straight From Nature™
GnuVape Relief uses the GnuRelief
core of herbs, but also containing an herbal
nicotine replacement.
Breakthroughs Straight From Nature™
Product Information
GnuRelief/GnuVape Relief
Form: Capsule = GnuRelief (60 capsules) / Vape =
GnuVape Relief (15ml bottle)
Description: our pain management product.
What we can claim: anti-oxidant, anti-cancer, pain relief,
anti-nausea, improved cognition, allergy prevention.
How we describe the product: Our pain management
product designed to assist in managing day to day chronic
pain or incidental pain.
What we have seen anecdotally: drops pain by at least 2
levels on a 1-10 pain scale. Most get better results.
Some get pain to zero. Almost everyone will see very
positive results. We have had this product work over
99.9% of the time where work=2 level pain drop.
Breakthroughs Straight From Nature™
Mind: Designed to provide deep relaxation
Body: Designed to provide the core and
basic resources for the endocannabinoid
system (ECS). Targeted at deep relaxation
and the pain response.
Spirit: Calming, relaxing, sedating
Breakthroughs Straight From Nature™
Product Information
GnuSleep
Form: Capsule = GnuSleep (60 capsules)
Description: our sleep management product.
What we can claim: anti-oxidant, anti-cancer, pain relief,
anti-nausea, improved cognition, allergy prevention.
How we describe the product: Our sleep management
product designed to assist in managing insomnia or an
inability to fall asleep.
What we have seen anecdotally: product assist with
inflammation, pain, and sleep. We have people using the
product who insist it is the only product that will help them.
Breakthroughs Straight From Nature™
Product Information
Herbal Nicotine Replacement
Form: Licensed..currently only to Palm Beach Vapors
Description: herbal nicotine replacement, satisfies the
“nicotine” craving
What we can claim: works as good as nicotine with no
withdrawal or anxiety from transition. Also contains
theobromine, in chocolate, which is a drug designed for
COPD and asthma.
How we describe the product: Why would anyone every
use nicotine again? Our product has things in it which
could help the lungs.
What we have seen anecdotally: many, many nicotine
vapors have converted with no issues
Breakthroughs Straight From Nature™
MANAGEMENT
Charles “Chip” Paul has made a difference in every environment he has worked in. He started his career with
Southwestern Bell in the mid 80’s after finishing his Mathematics degree from the University of Oklahoma. Paul
was tasked with developing statistical methodologies to measure the, then new, Southwestern Bell Affirmative
Action Program. Paul’s method was adopted by the company and Paul won numerous awards within Bell and
was place on an executive development track.
Paul stayed with Bell until the early 90’s when he returned home to his native Oklahoma to work for Phillips
Petroleum company. Paul held several corporate jobs until finishing his corporate career with Williams
Communications company. At Williams Paul headed a product development group of 40 developers and had a
budget of $40MM. Paul worked with such major clients as the NFL, NFL Films, PGA Tour, NBA, NHL, CBS,
NBC, ABC, ESPN, and others.
Paul then started his entrepreneurial career and has owned and developed a diverse set of businesses
including retail candy, senior in home care and assistance, massage therapy, and several other health and
wellness companies.
Paul shares a health and wellness passion and a service mission with his wife and partner Cynthia. Together
they have laid the groundwork for a tremendous health and wellness network. Not only by building and
developing Palm Beach Vapors and GnuPharma, but also by laying the groundwork and foundations for a
successful medical marijuana program within Oklahoma.
Paul is a six generation native Oklahoman and a proud Chickasaw. Paul and, his companies, have been
featured in numerous news articles.
Entrepreneur Magazine Articles:
https://www.entrepreneur.com/article/241548
https://www.entrepreneur.com/article/231952
Franchise Times Articles:
http://www.franchisetimes.com/May-2014/Operator-Q-A/
http://www.franchisetimes.com/news/April-2014/Palm-Beach-Vapors-Founder-May-Test-Pot-Sales%20/
http://www.franchisetimes.com/March-2016/Secret-club-gives-an-experience-as-all-retailers-should/
Breakthroughs Straight From Nature™
MANAGEMENT
A “quiet” Operator and Brand Guru
Current Efforts:
President and Co-Founder Palm Beach Vapors Corp:
Paul has lead Palm Beach Vapors as its operations and branding officer since its inception in late 2013. Palm
Beach Vapors has positioned itself as a leader in the emerging electronic cigarette industry by developing 18
franchised units in an environment overshadowed by pending FDA regulations. With FDA regulations now
known, the company, by virtue of its national standing, is positioned to lead.
Co-Founder GnuPharma Corp:
Paul and her husband Chip, have developed a working theory of the endocannabinoid system, its functions,
and its possible influence. GnuPharma is currently proving its science and claims, and will release products
my mid- summer.
CoChair, Oklahomans For Health:
Paul and her husband Chip co-founded a 501c4 organization called Oklahomans for Health. The group
petitioned across the state of Oklahoma in 2014 for medical marijuana. Efforts fell short of the signature goal
and the group is petitioning again May 2016 to August 2016 (90 day window) in hopes of making the 2016
ballot
Breakthroughs Straight From Nature™
David M. Klein, Ph.D. – Advisor & Interim CEO
Management, [Con’t]
 
Dr. Klein is a cross-disciplinary executive and has consulted with both Fortune 500 and emerging growth companies. He also
creates and brings to market his own wellness concepts. David has consulted and/or worked with Huizenga Holdings, Nation’s
Rent, Disney Entertainment & Frito Lay.
 
He has developed and brought to market products across a wide array of industries - - in order of development – from HiMedics,
a pharmaceutical company developing a novel drug delivery system for children and the elderly, which he took from the original
business plan to $18 million in funding culminating in an IPO to ‘The 5-Star Plan for Better Health’ one of the first wellness
programs for businesses to offer to their employees for home health, to Surgeware, a first responder medical modeling software
program to help hospitals route patients during a major biologic or radioactive event.
 
Prior to joining Cool Frootz [ www.coolfrootz.com ] to help turn it around, Klein’s focus was on his twin companies Natural
Weight for Optimized Living™, a franchisor of medically supervised weight management and wellness centers and Nutribites,
LLC, a product development company focusing on development of small portion protein based products for dieting and
maximizing performance of athletes. Dr. Klein holds a BA in Communication from Rider College, and M.A. in Communication
Theory from the University of Arizona and a Ph.D. in Cognitive Communication Theory with a magnate in Marketing from
Louisiana State University. He is well published in both academic journals and in general newspaper and magazine articles as a
guest columnist.
 
Contact Information
Chip Paul chip@gnupharma.com
Cynthia Paul Cynthia@palmbeachvapors.com
GnuPharma: www.GnuPharma.com
Palm Beach Vapors: www.palmbeachvapors.com
Phone: 918-949-6699

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PPM GnuPharma and PBV Combined

  • 1. Palm Beach Vapors Corp and GnuPharma Corp
  • 2. Breakthroughs Straight From Nature™ Executive Summary Palm Beach Vapors and GnuPharma Corporation are ‘arms length’ companies controlled by Chip and Cynthia Paul. ➢ GnuPharma® was then founded to continue development of other products for health and wellness. The company has developed a ‘covering law’ theory regarding the endocannabinoid system (ECS) and its influence on the human body. Current research indicates that the ECS plays a role in almost every major function within the body. The company has looked across the scope of research on the ECS and believes that the ECS is "the" master regulatory system in the body and is the bodies’ major mechanism of action for control. Given this, we have developed a predictive model for the ECS which enables us to design and engineer natural medicines to affect specific results within the body.  ➢ Palm Beach Vapors® started early in 2013 with a single unit . In December of 2013, after much fanfare in the press, the company became the nation's first brick and mortar franchisor of an e-cig concept. By early 2015 the company had sold over 12 units and was making steady progress. The company combines personalized service with customer education, and science to help better achieve quitting smoking or multiple personal health goals. The companies employees are well trained to provide the highest quality customer service, and education that’s available today. As part of their growth, the company’s co-owner developed and patented a technology called ‘GnuVape’ to replace nicotine. The companies are looking to raise $2,980,000 to fuel both companies' growth and enable them to continue the momentum that has accelerated over the past 2 quarters. Individuals may invest in both companies, or select an investment in the company which matches their own personal investment criteria. As such, the Use of Proceeds breaks out the two company’s needs individually.
  • 3. Breakthroughs Straight From Nature™ Background – Rationale - Discovery The twin companies of Palm Beach Vapors© and GnuPharma© were founded by husband and wife team Chip and Cynthia Paul. The couple, both [now past] cigarette smokers were looking for a better way to quit smoking. In the process they discovered the emerging world of vaping. In almost a personal defensive maneuver, the couple opened their own vape shop to learn and take advantage of this new industry and importantly its technology and products. Chip, with a solid history in both ‘inventing and discovery’ and business believed he could create a nicotine replacement in a vape format that could mirror the effects of nicotine without the additional poison included in cigarettes. Cynthia, with a history of business and healthcare felt she could create a ‘new’ type of vape store; one committed to health. And so Palm Beach Vapors and later GnuPharma were born. During the first year the company drew a lot of press and began franchising their Palm Beach Vapers concept. Within two years, the company had expanded to almost 20 locations across multiple states, and began attracting more attention from the press. In the interim, while studying addiction in mind and behavior, Chip discovered a new scientific and medical bodily system called the ‘endocannabinoid system’ [ECS] which had only been discovered within the last 20 years. Chip soon learned that while 1000's of studies had been performed on this new ECS, including many with the use of spices, because of traditional medical and scientific practices the majority of these studies fit nicely within the research [Ph.D.'s] or practice [MDs] area of medicine. As the saying goes the cardiologist had no idea what the rheumatologist was saying. Chip began to take note and began development of a taxonomy that could show, effect and even begin to predict the ‘entourage effect’ of these spices across the different disease states studied, thereby being able to affect multiple parts of the body in more comprehensively supporting the body in its interrelationship of biological and neurological systems .
  • 4. Breakthroughs Straight From Nature™ Our History • Palm Beach Vapors opened its first corporate store in March of 2013. The store met with immediate success. • In December of 2013, Palm Beach Vapors became the nation's first e-cig brick and mortar franchisor of an e-cig concept. • By early 2015 the company had sold over 12 units and was making steady progress. • In early 2015 it became clear that Palm Beach Vapors would patent a technology called GnuVape • By mid-2015 it became clear that Palm Beach Vapors could patent several technologies that were unrelated although synergistic to vapor • Late in 2015 GnuPharma was formed to hold the technological developments spawned by Palm Beach Vapors as an independent R & D, licesnsing and marketing company.
  • 5. Breakthroughs Straight From Nature™ From Cynthia Paul – Co-Founder My husband Chip Paul and I started Palm Beach Vapors in March of 2013 with one corporate owned store in Owasso, Ok. We did it for fun, we had no idea that our concept would take off like it did. We were not happy with the local electronic cigarette stores in our area and we realized that others felt the same way. The customer service in our local vapor stores, was awful, the products were confusing, no one took the time to educate you. So we decided we can do this better, and we did! Now we have 17 open units and growing more and more every day. We are the world’s first electronic cigarette franchise concept. We are literally “Changing the World One Bottle at a Time”. My advice to someone getting into our business is to really do the research about franchising first. The Palm Beach Vapors franchise opportunity has taken the guesswork, research time, and unnecessary expense out of launching a vapor store. Our turnkey franchise opportunity provides everything you’ll need to start your business. It includes our proprietary trade secrets, operating systems, operating procedures, and support. You run into many challenges when opening a vapor store. We have tried to take the guess work out of that. Additionally, we are just entering a world where “vape” will be regulated. We intend to lead the industry with innovative new products from our sister company GnuPharma Corp. We believe we are on the road to changing medicine in GnuPharma! That will certainly translate into exciting new products. And, we intend to begin to introduce exciting new delivery methods in the future. We believe between our two companies we are perfectly situated to both lead the lead industry and lead a revolution in new health and wellness.
  • 6. Breakthroughs Straight From Nature™ IP - Patents & Trademarks
  • 8. Breakthroughs Straight From Nature™ Palm Beach Vapors • Began in December of 2013 • Brick and mortar retail concept • Turnkey and low cost system • First to franchise a US vapor concept • National brand and National leader • Gross profit averages 68% across system • 14 open units • Consistent national media coverage: 2014 - current • Launching Palm Beach Vapors 2.0 soon!
  • 9. Breakthroughs Straight From Nature™ Palm Beach Vapors Value Proposition 1 • Proprietary juice system allows owners very high profit margins • Collective buying helps drive wholesale pricing down • Significant IP emerging from GnuPharma including herbal nicotine replacement • Established national brand • Affords owners the flexibility to add additional lines of business (ALB’s) • ALB’s do/will/could include herbal, homeopathic, cannabis, & others • SOP’s in place for core business and SOP’s being written for ALB’s as they roll out into stores Disruptive Retail Brand and Approach
  • 10. Breakthroughs Straight From Nature™ Palm Beach Vapors Value Proposition 2 Metrics We Can Develop • 50% of PBV sales are juice • The average PBV sale is $22 • The average customer will visit 2 X / month. PBV Quick Facts National Quick Facts • Market is $3.5B • Juice market is $1.75B (implied) • 10% or $32M vape • Market is growing at 20%-25% annually 0 2 4 6 8 2016 2017 2018 2019 2020 US VAPOR MARKET (20% Growth)
  • 11. Breakthroughs Straight From Nature™ Palm Beach Vapors Value Proposition 2 Disruptive Juices • In early 2016 GnuPharma developed an herbal nicotine replacement • Decision was made to hold the discovery until post FDA ruling • Herbal nicotine replacement ameliorates concerns with FDA regulations • NO OTHER VAPOR COMPANY IS IN THIS POSITION • Initially dubbed GnuNic, the company is looking at rebranding its name • Herbal nicotine replacement juice was introduced by the Palm Beach Vapors franchise system in early July.
  • 12. Breakthroughs Straight From Nature™ Palm Beach Vapors – 3 Corporate owned locations set the foundation
  • 13. Breakthroughs Straight From Nature™ Palm Beach Vapors Simple Clean Design allows for focus on products and inside signage
  • 14. Breakthroughs Straight From Nature™ Palm Beach Vapors/GnuPharma Relationships Unrestricted Advertising Restricted Advertising Consumers Consumers Wholesale Vapor and related products direct to consumer Intellectual property, including juice is supplied by GnuPharma Intellectual property could be licensed Direct to consumer sales of GnuEndo and GnuVape products
  • 16. Breakthroughs Straight From Nature™ The ECS - -What Does It Do? The endocannabinoid system is not unique to humans. Research has shown that this system is common to all humans and vertebrate animals – suggesting its significance in the process of evolution. Experts believe that the endocannabinoid system has existed in living organisms for 500 million years. Although the endocannabinoid system affects a wide variety of biological processes (such as appetite and sleep), experts believe that its overall function is to regulate homeostasis. Homeostasis is a key element in the biology of all living things and enables the body to maintain stable internal conditions that are necessary for survival. Disease is simply a result of some aspect of failure in achieving homeostasis, making the endocannabinoid system a unique target for medical applications.
  • 17. Breakthroughs Straight From Nature™ Foundation & Science The Endocannabinoid System The endocannabinoid system (ECS) is a central regulatory system that affects a wide range of biological processes in the body. The human body produces a number of cannabinoids. Decades of scientific research on the endocannabinoid system has resulted in the discovery of two types of cannabinoid receptors, CB1 and CB2. These receptors are found in every part of the body, but are most prominent in the brain and immune system. When cannabinoids bind to CB1 or CB2 receptors, they act to change the way the body functions. While cannabinoid receptors are primarily expressed in the brain and immune system, researchers have identified cannabinoid receptors in a variety of other places as well, including the peripheral nervous system, cardiovascular system, reproductive system, and gastrointestinal and urinary tracts. The discovery of the ECS is very new. The bulk of the research occurring within the past 10-15 years. In fact, ECS is so new, that it is only taught in about 20 medical schools. The research curve is just beginning on the ECS and the number of ‘medications’ based upon an ECS model are modest.
  • 18. Breakthroughs Straight From Nature™ The Endocannabinoid System Our Approach and Model It is clear from the research literature that the endocannabinoid system (ECS) is a master neurological system. The company believes that it is, in fact, THE master regulatory of all bodily systems, and superior to specific organ control mechanisms themselves. ➢ It plays a role in almost every human physiological function. ➢ It appears to be the master body regulator. ➢ Organs are regulated (balanced) thru ECS action ➢ Neurology is regulated thru ECS action ➢ It is variable (resource levels change) and resource driven system. ➢ It can be influenced, certainly by cannabis, but also other herbs. We believe the GnuPharma theoretical model is PREDICTIVE. This means we can predict the effect that will be achieved by stimulating one neurological target over another. For instance, by exciting one set of neurological circumstances, we can stimulate appetite, by exciting another we can decrease appetite. We can 'tune' between the extremes and make predictive assumptions as to effects.
  • 19. Breakthroughs Straight From Nature™ There are thousands (1000’s) of research studies that indicate that the ECS is involved in a variety of physiological processes. A simple search of NIH.GOV as indicated below will return numerous studies. Immune Response The ECS is the complete regulator of the immune response. From inflammation to stem cell cueing the ECS is deeply involved here. Appetite The ECS controls and manages feeding and craving behaviors Pain The ECS controls the pain response is several ways. Inflammation is closely tied to pain and the ECS reduce inflammation. Further, pain is a synaptic event and the ECS manages and more effectively regulates synaptic interactions Mood The ECS’s main internal transmitter is something called anandamide. Anandamide is also known as “the bliss molecule”. In order for mood to be elevated, anandamide has to bind with greater frequency. Memory The ECS regulates memory functions thru the brain. Several studies indicate that the ECS is involved in memory package and storage. While thought to effect short term memory, engagement of the ECS actually leads to better storage and retrieval of information. The ECS - -What Does It Effect?* *To see the significant number of research studies on the ECS, search endocannabinoid + any of the above functions
  • 20. Breakthroughs Straight From Nature™ The Endocannabinoid System Our Theory and Its Importance Our theory indicates that the ECS needs DAILY resources. Very similar to how we think of nutrition. We understand that without certain vital vitamins, our bodies cannot function at peak performance. Similarly without ECS resources, our bodies will not function at full capacity. THIS IS THE VERY REASON MEDICAL CANNABIS APPEARS TO BE A PANCEA MEDICINE. ALL THAT IS HAPPENING IS THAT THE BODY IS GIVEN THE RESOURCES IT NEEDS TO HEAL ITSELF ACROSS AND BY EVOKING OTHER BIOLOGICAL SYSTEMS.
  • 21. Breakthroughs Straight From Nature™ What Happens Without ECS Resource? Or What If My “Lake Level” Is To Low? • By theory, the ECS is what regulates our functioning as humans. Without resources, like Apollo 13, things have to be shut down • By theory, organs are shut down as to function by the ECS - For instance, if you only have resources to power 75% of your liver, that is what you will use. In times of stress, your organ might not have the “horsepower” it needs to deal with the stress • With a degraded ECS our bodies are incapable of proper regulation and will begin to break down along our genetics • This could be in the form of cancers, auto- immune or other systematic failures.
  • 22. Breakthroughs Straight From Nature™ Can Your ECS Resources or “Lake Level” Be Measured? Yes! The ECS level can be measured by a protein in the blood called Anandamide. The ECS level will fluctuate daily as resources are short lived Basically, the ECS resources give your body the fuel to be genetically complete
  • 23. Breakthroughs Straight From Nature™ A Good Analogy What happens without resources? What if our “lake level” is low? This is measurable by the amount of anandamide in the blood. ECS with low resources on injury Ideally ECS would cue resources to the area and would deal with pain response, inflammation, and stem cell cueing. Without resources something will suffer (Pain, inflammation, or cell cueing) and will suffer along the lines of resources and genetics. Injury
  • 24. Breakthroughs Straight From Nature™ How Do We Increase Our ECS Resources? Take GnuPharma Products AND Cut down on the amount of gluten in our diets Understand that we need nutrients and resources to fuel our body Begin eating for our neurology as well as general health
  • 25. Breakthroughs Straight From Nature™ Tremendous Promise If our theory is correct, we have just scratched the surface with what we can do. We are simply giving the body the resources it needs to heal itself. Perhaps, in the near future it will be possible to: Target organs for direct CB1 stimulation, resulting in full and better organ function
  • 26. Breakthroughs Straight From Nature™ Tremendous Promise If our theory is correct, we have just scratched the surface with what we can do. We are simply giving the body the resources it needs to heal itself. Perhaps, in the near future it will be possible to: Better regulation of the body, resulting in longer life span, better health, better functioning, and better satisfaction
  • 27. Breakthroughs Straight From Nature™ Tremendous Promise If our theory is correct, we have just scratched the surface with what we can do. We are simply giving the body the resources it needs to heal itself. Perhaps, in the near future it will be possible to: Direct targeting and healing of auto-immune diseases
  • 28. Breakthroughs Straight From Nature™ Tremendous Promise If our theory is correct, we have just scratched the surface with what we can do. We are simply giving the body the resources it needs to heal itself. Perhaps, in the near future it will be possible to: Strong promise for healing cancers
  • 29. Breakthroughs Straight From Nature™ Tremendous Promise If our theory is correct, we have just scratched the surface with what we can do. We are simply giving the body the resources it needs to heal itself. Perhaps, in the near future it will be possible to: Mood improvement
  • 30. Breakthroughs Straight From Nature™ How We Do It! Herbal Manipulation of the ECS Because of our theory of the ECS, and because of our understanding of what is necessary to “activate” the ECS, we view the system as a series of channels with “sliders” that can be tuned for influence. So, we have herbs that will influence directionally in a channel, and others that will influence in the opposite. Theory said that “pain” should be better managed at certain “slider” positions, and we have found that to be the case. Further, we postulated sleep would live at another “slider” position, and have found that to be true. When we say our theory is “predictive” we are saying that by our theory and knowledge of herbal influence we are able to develop formulations for very specific influence.
  • 31. Breakthroughs Straight From Nature™ FINANCE
  • 32. Breakthroughs Straight From Nature™ Use Of Proceeds GnuPharma R & D and facility $250,000 FDA studies, regs and complaince $250,000 G & A and corporate development $500,000 Marketing and Trade shows $500,000 Product Launch/s $100,000 Total $1,600,000 Downtown Tulsa Location $250,000 Oklahoma City locations (2) $250,000 IT, Web & Social Media Infrastucture $500,000 Franchise Director and Support $120,000 Advertising, Media and Collaterals $200,000 Total $1,320,000 Grand Total $2,920,000
  • 33. Breakthroughs Straight From Nature™ Proforma For Combined Entities 2016 2017 2018 2019 2020 Revenues PBV Company Stores $ 770,346 $ 2,468,078 $ 4,967,881 $ 7,986,452 $ 11,971,492 PBV OnLine Juice Sales $ 450,000 $ 3,500,000 $ 5,250,000 $ 7,000,000 $ 8,750,000 PBV Franchise Royalties $ 720,092 $ 2,271,079 $ 6,449,091 $13,368,563 $ 35,314,758 GnuPharma Sales $ 480,000 $ 1,440,000 $ 4,320,000 $16,000,000 $ 40,000,000 GnuPharma Licensing $ 3,000 $ 12,000 $ 18,000 $ 24,000 $ 36,000 Gross Revenue $ 2,423,438 $ 9,691,157 $ 21,004,973 $44,379,014 $ 96,072,250 Cost of Goods Sold COGS $ 688,645 $ 2,649,513 $ 5,784,157 $12,026,803 $ 26,408,873 Total COGS $ 688,645 $ 2,649,513 $ 5,784,157 $12,026,803 $ 26,408,873 Gross Profit $ 1,734,793 $ 7,041,644 $ 15,220,816 $32,352,211 $ 69,663,377 Gross Profit Margin 71.6% 72.7% 72.5% 72.9% 72.5% Selling, General & Administrative PBV Wages & Compensation $ 613,500 $ 1,253,675 $ 1,432,684 $ 1,441,634 $ 1,469,082 GnuPharma Wages & Compensation $ 399,500 $ 720,975 $ 926,049 $ 936,302 $ 1,065,815 Marketing $ 372,512 $ 728,311 $ 1,664,379 $ 2,430,975 $ 5,233,134 Rent, Utilities & Communication $ 137,250 $ 207,000 $ 212,250 $ 212,250 $ 215,250 Depreciation & Amortization $ 50,000 $ 137,500 $ 197,500 $ 260,000 $ 320,000 Other Selling, General & Administrative $ 181,125 $ 276,000 $ 343,625 $ 348,625 $ 355,125 Total SG&A $ 1,753,887 $ 3,323,461 $ 4,776,486 $ 5,629,787 $ 8,658,406 Net Operating Income (EBIT) $ (19,094) $ 3,718,183 $ 10,444,330 $26,722,424 $ 61,004,971
  • 34. Breakthroughs Straight From Nature™ Palm Beach Vapors Pro Forma
  • 35. Breakthroughs Straight From Nature™ Investment Opportunity • Each company is currently valued at $8m. • Minimal investment is $25,000 • Each $25,000 investment will generate .312% of the issued and outstanding shares of the companies or .156% of each individual company. • A maximum of $3.0m will be raised at this round which will represent 37.50% of the combined companies’ issued and outstanding shares or 25,409,501 shares. • An individual may chose to invest in one of the companies specifically, which would in effect double their investment in % and shares for this first round.
  • 36. Breakthroughs Straight From Nature™ MARKET POTENTIAL & EXECUTION
  • 37. Breakthroughs Straight From Nature™ The Brands
  • 38. Breakthroughs Straight From Nature™ Market Potential For GnuPharma • Disruptive at a minimum! • Focused Markets • Finding proper messaging • Products work and work well GnuPharma Quick Facts “There be dragons!” We are in unchartered waters, with something never done before, that is very difficult to explain and discuss!
  • 39. Breakthroughs Straight From Nature™ • Total vape market is currently $3.5B with steady growth • The [vape] juice market alone is $1.75B • 10% or $32M are vape adjuncts and hardware. • Market is growing at 20%-25% annually Market by the numbers
  • 40. Breakthroughs Straight From Nature™ Marketing, Promotions and Social Media
  • 41. Breakthroughs Straight From Nature™ Social Media, or Influencer Marketing: Holds four main activities Identifying key social influencers in our markets, and ranking them in order of importance. Marketing to influencers, to increase awareness of the company and products within the influencer community. Marketing through influencers to increase market awareness of the company and its products amongst target markets. Marketing with influencers, turning influencers into advocates of the Companies.
  • 42. Breakthroughs Straight From Nature™ Social Media Affords the Company 1. New prospects to be introduced to the company. 2. Current users [and key influencers] to be reinforced &communicate to their peers 3. Halo effect of users ‘sharing’ information with friends, thereby turning customers into a motivated salesforce.
  • 43. Breakthroughs Straight From Nature™ Traditional Advertisements Reinforce Social Media Messages 1. In Store Ads 2. Local Publications 3. Inserts 4. Posters for Local Store Marketing
  • 44. Breakthroughs Straight From Nature™ In-Store and Area Canvassing
  • 45. Breakthroughs Straight From Nature™ In Store, Local Store Marketing, & ‘insert’ Advertising
  • 46. Breakthroughs Straight From Nature™ Segmentation between ‘Juices’ as with products from Automobile Brands to Alcohol House Blends Premiums; upscale… pre-blended The finest pre-blends in limited batches
  • 47. Breakthroughs Straight From Nature™ …and always targeting potential Franchisees
  • 48. Breakthroughs Straight From Nature™ PRODUCTS
  • 49. Breakthroughs Straight From Nature™ Pain Pathway Immune Pathway Mood Pathway Craving/Regulation Pathway GnuRelief - provides increased resources and down regulates ECS Provides resources to increase ECS tone. Down regulates the ECS resulting in better pain management Some Benefit GnuRelief increase ECS tone, but down regulates the ECS system. This results in a relaxed state with high sense of well being being Increased ECS tone and down regulation result in somewhat higher craving behaviors (munchies). Will modify opiates or benzo’s to more moderate GnuSleep - provides increased resources and down regulates ECS Provides resources to increase ECS tone. Down regulates the ECS resulting in better pain management Some Benefit GnuSleep increases ECS tone, but down regulates the ECS system. This results in a relaxed state with high sense of well being being Increased ECS tone and down regulation result in somewhat higher craving behaviors (munchies). Will modify opiates or benzo’s to more moderate GnuFoundation - provides increased resources and up regulates the ECS Some Benefit Provides resources to increase ECS tone. Up regulates the ECS resulting in better immune response Provides resources to increase ECS tone. Up regulates the ECS resulting in more anandamide, also called “The Bliss Molecule” Up regulated ECS results in less hunger and better management of cravings. Craving more directly equal resources need GnuFoundation - provides increased resources and up regulates the ECS Some Benefit Provides resources to increase ECS tone. Up regulates the ECS resulting in better immune response Provides resources to increase ECS tone. Up regulates the ECS resulting in more anandamide, also called “The Bliss Molecule” Up regulated ECS results in less hunger and better management of cravings. Craving more directly equal resources need Our Current Formulations What We Think We Are Effecting and How
  • 50. Breakthroughs Straight From Nature™ Mind: Designed to improve the mood, increase clarity and focus. Body: Designed to provide the core and basic resources for the endocannabinoid system (ECS). Inflammation response should improve, craving behaviors should be less intense, general auto immune conditions should lessen. Absorption should increase as well as overall digestive function. A decrease in appetite is normal. Spirit: Gently uplifting
  • 51. Breakthroughs Straight From Nature™ GnuVape Foundation is a a Vape based product using the GnuFoundation ore of herbs, but also containing an herbal nicotine replacement.
  • 52. Breakthroughs Straight From Nature™ Product Information GnuFoundation/GnuVape Foundation Form: Capsule = GnuFoundation (60 capsules) / Vape = GnuVape Foundation (15ml bottle) Description: our overall ECS boosting product. What we can claim: anti-inflammatory, anti-oxidant, anti- cancer, anti-depression, anti-nausea, improved energy, improved cognition, allergy prevention. How we describe the product: Our general health product designed to improve mood, increase immune function, and improve overall health. What we have seen anecdotally: Any auto-immune illness will improve with general use, including MS and Crohn’s (most data). Autoimmune skin conditions such as psoriasis will improve. Feed and craving behaviors will come in line and weight will be regulated.
  • 53. Breakthroughs Straight From Nature™ Mind: Designed to provide relaxation while still keeping clarity Body: Designed to provide the core and basic resources for the endocannabinoid system (ECS). Targeted at the pain response and inflammation response, reports are of a consistent two level drop in pain on a 10 point scale. Spirit: Calm and relaxed
  • 54. Breakthroughs Straight From Nature™ GnuVape Relief uses the GnuRelief core of herbs, but also containing an herbal nicotine replacement.
  • 55. Breakthroughs Straight From Nature™ Product Information GnuRelief/GnuVape Relief Form: Capsule = GnuRelief (60 capsules) / Vape = GnuVape Relief (15ml bottle) Description: our pain management product. What we can claim: anti-oxidant, anti-cancer, pain relief, anti-nausea, improved cognition, allergy prevention. How we describe the product: Our pain management product designed to assist in managing day to day chronic pain or incidental pain. What we have seen anecdotally: drops pain by at least 2 levels on a 1-10 pain scale. Most get better results. Some get pain to zero. Almost everyone will see very positive results. We have had this product work over 99.9% of the time where work=2 level pain drop.
  • 56. Breakthroughs Straight From Nature™ Mind: Designed to provide deep relaxation Body: Designed to provide the core and basic resources for the endocannabinoid system (ECS). Targeted at deep relaxation and the pain response. Spirit: Calming, relaxing, sedating
  • 57. Breakthroughs Straight From Nature™ Product Information GnuSleep Form: Capsule = GnuSleep (60 capsules) Description: our sleep management product. What we can claim: anti-oxidant, anti-cancer, pain relief, anti-nausea, improved cognition, allergy prevention. How we describe the product: Our sleep management product designed to assist in managing insomnia or an inability to fall asleep. What we have seen anecdotally: product assist with inflammation, pain, and sleep. We have people using the product who insist it is the only product that will help them.
  • 58. Breakthroughs Straight From Nature™ Product Information Herbal Nicotine Replacement Form: Licensed..currently only to Palm Beach Vapors Description: herbal nicotine replacement, satisfies the “nicotine” craving What we can claim: works as good as nicotine with no withdrawal or anxiety from transition. Also contains theobromine, in chocolate, which is a drug designed for COPD and asthma. How we describe the product: Why would anyone every use nicotine again? Our product has things in it which could help the lungs. What we have seen anecdotally: many, many nicotine vapors have converted with no issues
  • 59. Breakthroughs Straight From Nature™ MANAGEMENT Charles “Chip” Paul has made a difference in every environment he has worked in. He started his career with Southwestern Bell in the mid 80’s after finishing his Mathematics degree from the University of Oklahoma. Paul was tasked with developing statistical methodologies to measure the, then new, Southwestern Bell Affirmative Action Program. Paul’s method was adopted by the company and Paul won numerous awards within Bell and was place on an executive development track. Paul stayed with Bell until the early 90’s when he returned home to his native Oklahoma to work for Phillips Petroleum company. Paul held several corporate jobs until finishing his corporate career with Williams Communications company. At Williams Paul headed a product development group of 40 developers and had a budget of $40MM. Paul worked with such major clients as the NFL, NFL Films, PGA Tour, NBA, NHL, CBS, NBC, ABC, ESPN, and others. Paul then started his entrepreneurial career and has owned and developed a diverse set of businesses including retail candy, senior in home care and assistance, massage therapy, and several other health and wellness companies. Paul shares a health and wellness passion and a service mission with his wife and partner Cynthia. Together they have laid the groundwork for a tremendous health and wellness network. Not only by building and developing Palm Beach Vapors and GnuPharma, but also by laying the groundwork and foundations for a successful medical marijuana program within Oklahoma. Paul is a six generation native Oklahoman and a proud Chickasaw. Paul and, his companies, have been featured in numerous news articles. Entrepreneur Magazine Articles: https://www.entrepreneur.com/article/241548 https://www.entrepreneur.com/article/231952 Franchise Times Articles: http://www.franchisetimes.com/May-2014/Operator-Q-A/ http://www.franchisetimes.com/news/April-2014/Palm-Beach-Vapors-Founder-May-Test-Pot-Sales%20/ http://www.franchisetimes.com/March-2016/Secret-club-gives-an-experience-as-all-retailers-should/
  • 60. Breakthroughs Straight From Nature™ MANAGEMENT A “quiet” Operator and Brand Guru Current Efforts: President and Co-Founder Palm Beach Vapors Corp: Paul has lead Palm Beach Vapors as its operations and branding officer since its inception in late 2013. Palm Beach Vapors has positioned itself as a leader in the emerging electronic cigarette industry by developing 18 franchised units in an environment overshadowed by pending FDA regulations. With FDA regulations now known, the company, by virtue of its national standing, is positioned to lead. Co-Founder GnuPharma Corp: Paul and her husband Chip, have developed a working theory of the endocannabinoid system, its functions, and its possible influence. GnuPharma is currently proving its science and claims, and will release products my mid- summer. CoChair, Oklahomans For Health: Paul and her husband Chip co-founded a 501c4 organization called Oklahomans for Health. The group petitioned across the state of Oklahoma in 2014 for medical marijuana. Efforts fell short of the signature goal and the group is petitioning again May 2016 to August 2016 (90 day window) in hopes of making the 2016 ballot
  • 61. Breakthroughs Straight From Nature™ David M. Klein, Ph.D. – Advisor & Interim CEO Management, [Con’t]   Dr. Klein is a cross-disciplinary executive and has consulted with both Fortune 500 and emerging growth companies. He also creates and brings to market his own wellness concepts. David has consulted and/or worked with Huizenga Holdings, Nation’s Rent, Disney Entertainment & Frito Lay.   He has developed and brought to market products across a wide array of industries - - in order of development – from HiMedics, a pharmaceutical company developing a novel drug delivery system for children and the elderly, which he took from the original business plan to $18 million in funding culminating in an IPO to ‘The 5-Star Plan for Better Health’ one of the first wellness programs for businesses to offer to their employees for home health, to Surgeware, a first responder medical modeling software program to help hospitals route patients during a major biologic or radioactive event.   Prior to joining Cool Frootz [ www.coolfrootz.com ] to help turn it around, Klein’s focus was on his twin companies Natural Weight for Optimized Living™, a franchisor of medically supervised weight management and wellness centers and Nutribites, LLC, a product development company focusing on development of small portion protein based products for dieting and maximizing performance of athletes. Dr. Klein holds a BA in Communication from Rider College, and M.A. in Communication Theory from the University of Arizona and a Ph.D. in Cognitive Communication Theory with a magnate in Marketing from Louisiana State University. He is well published in both academic journals and in general newspaper and magazine articles as a guest columnist.  
  • 62. Contact Information Chip Paul chip@gnupharma.com Cynthia Paul Cynthia@palmbeachvapors.com GnuPharma: www.GnuPharma.com Palm Beach Vapors: www.palmbeachvapors.com Phone: 918-949-6699