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Alpha extraction concept note

Alpha Extraction Labs

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Alpha extraction concept note

  1. 1. ALPHA EXTRACTION LABS
  2. 2. TABLE OF CONTENTS PROJECT DESCRIPTION Greenrock Extraction Corporation wants to create processing & distribution facility for industrial Hemp focused on Cannabidiol extraction. 02 01 PROJECT TIMELINE We have exclusivity to new machinery & an engineering firm on standby ready to start production Machinery is not purchased* 03 COMPETITIVE STATUS We plan to focus on key opportunity areas to make an edge in quality, technology and market network at national & international scale. 04 OFFERING & RETURNS We are seeking equity via joint venture with an option to buy back shares when the venture becomes profitable.
  3. 3. Congressional approval of hemp in the U.S. is sparking a new wave of activity, with companies and investors readying investments to the tune of hundreds of millions of dollars. With the 2018 Farm Bill decriminalizing both hemp and its trendy ingredient known as CBD, this could be a market worth more than $20 billion by 2022. ABOUT THE OPPORTUNITY
  4. 4. CBD is a non-psychoactive cannabinoid found in cannabis. Unlike its cousin THC, the chemical compound that gives weed its signature effects, CBD has been shown to help with everything from PTSD to anxiety to MS & Epilepsy. (Without getting you high)
  5. 5. MEDICINAL ECO-FRIENDLY SUPERFOOD COSMETIC CBD PRODUCTS
  6. 6. Expects to build 154,000 sq. ft facility by May to extract CBD. It also needs to buy 12 million seeds, at as much as 50 cents a pop, just to plant an initial 3,000 acres. Mile High Labs raised $35 million last fall and this month added a $65 million term loan, funding it says will help boost CBD production this year. Lilu’s Garden spent about $50 M to build a 175,000 sq. ft extraction facility, processing 11 million kg of hemp to produce 300K kg of CBD, about 1/2 is already sold. GenCanna harvested and processed over 1,000 acres of hemp last year and plans to boost it by 10 times in 2019. It has raised ~ $50 M in funding. MILE HIGH LABS LILU’S GARDEN GENCANNA INTEGRATED CBD INVESTMENT SIGNALS Heavenly Rx, through SOL Global shall invest US$30.6 million in Blühen, which will allow Blühen to buy assets in the hemp/CBD and THC-free cannabinoid 2018 Sales of $1,960,754 showed increase of over 1,800% over 2017. The 85,000 sq. ft facility sits on a 9-acre area. Hemp is planning to add 300 acre plantation. HEMP INC. HEAVENLY Rx Hempson are global distributor of Cannabinoids expanding Large hemp growing field in Yunnan with 70 scientists & technicians in Yunnan and Colorado. HEMPSON OIL
  7. 7. —JASON KARP “It’s not too often you get to invest and start a business 90 days past prohibition, and we’re really excited to do so in the hemp and CBD space”
  8. 8. THE EXTRACTION: Step 1: Receive hemp plant & remove flowers. Step 2: Flowers produce Crude Hemp Oil in extractor Step 3: Crude Hemp Oil is distilled to produce Distillate Step 4: CBD Distillate is crystalized in HPLC machine & CBD Isolate powder is created. Step 5: CBD Isolate is packaged shipped THE PRODUCE: 1. CBD Raw (Crude CBD Oil) 2. CBD Distillate (Less Crude Oil) 3. CBD Isolate (Isolated CBD powder) 4. Hemp Biomass THE SALE: 1. Lead Generated 2. Sales Call 3. We receive letter of intent 4. We present certificate of authenticity & photos of product with calendar date. 5. Buys samples to test 6. Sign purchase agreement & escrow funds (safefunds.com) 7. Product gets shipped. Buyer pays for shipping. HOW WE GET IT DONE These 4 materials are utilized in pharmaceuticals, nutraceuticals, bioplastics, paper, textiles, hempcrete & cosmetics. Depending on the need, we can change our products.
  9. 9. ECO-FREINDLY PROCESSES Is an ecological waste management company that specializes in digesting Biomass. Micron break down biomass using microorganisms and turns it into non-potable water to be reused or disposed back into the system. By using Micron we are reducing our carbon emissions and responsibly disposing of our waste products.
  10. 10. JUNE JULY AUGUST 2023 2024 2025 First 90 days Year 2023 30 days Growth Strategy After IPO PHASE 1 PHASE 2 Start Sustain Start Sustain Growth Strategy PROJECT ROADMAP Create centralized mass CBD extraction facility. Partnerships with farmers, CBD isolate consumers, & waste product buyers Acquire farming operations. Acquire customer facing product lines. IPO – Initial Public Offering Lobby with hemp industry for deregulation in cannabis advertising & taxation on foreign produce. Merger or continued acquisitions
  11. 11. INTERESTED BUT AFRAID, While CBD is no longer banned federally, the FDA also hasn’t approved it for use in food and beverages. CBD rules likely won’t be in place until 2020, and it’s not clear that hemp will ultimately be legal in all 50 states. Until there’s clarity, most large companies will remain on the sidelines, ENTRY BARRIERS & COMPETITIVE ADVANTAGE That includes Coca-Cola Co., which has expressed interest in CBD as a potential ingredient in wellness drinks, but has said it will wait until it knows the product is safe and legal. Conagra Brands Inc., the maker of Hunt’s ketchup and Slim Jim, also recently said it was studying CBD. ◂ Faster Production: New technology that can extract 1560 kilos of CBD per day. Compared to 900 Kgs per month of regular companies. i.e. What we can do in a day, competitors do in a month. ◂ Cheaper Produce: Solar Panels will reduce energy costs. 110% ethanol production – other extraction companies consume ethanol. Cheaper goods of better purity. 98.9%CBD
  12. 12. Ability to Invest / Raise quickly Technical Edge/Competency Market readiness and Adoption Network and Farm Resources Quality of Production CORPORATES SUBSIDIARIES EXTRACTORS ALPHA COMPETITIVE CHECKLIST
  13. 13. It’s crucial to develop not only strategic farming relationships, but Isolate buyers as aggressively as possible. With a 22B industry to boom, we need to be as scalable as possible and maximize efficiency. CBD & HEMP brand is poor. Govt. has long campaigned against the industry and it is newly legalized. Masses need to adopt the various uses of hemp. Also to educate on how to add hemp to business item. Our operational processes will be quick to setup, operate and scale with proper infusion of funds at the proposed timeline. US Foriegn policy will be slow to open market / deregulate Industry. Historically farmers prefer to keep their networks small. Many deals are face to face and it’s crucial to know how to approach each network. RISKS ASSUMPTIONS ISSUES DEPENDENCIES RISK MITIGATION STRATEGIES PRESELLING & CREATING A DEMAND BUFFER We will be preemptively acquiring sales before our facility even opens. By lining up our suppliers & buyers ahead of time we can be certain we are profitable within the first month of operation. VALUE ADDED REAL ESTATE ACQUISITION We plan to acquire an underperforming real estate asset to create our facility. By updating & getting the location performance ready we will be creating added value in the real estate asset. In a worst-case scenario, we can liquidate at a profit, in addition to selling our machinery. Extraction machines of this caliber are in demand. Selling should be no issue. The margins of the future real estate value should be able to cover the marketing & PR costs assumed during the 4 months of renovation & machinery installation. APPRECIATING EXTRACTION MACHINERY Unlike other manufacturing sites our machinery will be appreciating in value. The manufacturer has agreed to sell below market value. The manufacturer is a former banker and wanted to create an asset that would be a no brainer purchase on books. By having an asset sold at cost, value goes up after you own it.
  14. 14. TEAM Strong and Multifaceted Management Team Experts from various fields are in C’ positions with more partners for key operations getting on-boarded. Hired Workforce Specific opportunities will open up in our company. These include some of the labor positions & sales positions.  Office Managers  Sales Representatives  Executive Assistants  Oversight & Production Managers  Extraction team & HPLC Engineers  Security & General Labour CEO JAISU Former Chief Investment Officer – HHS Capital - (PCI Investments) CMO MIRZA CEO of MME, an event planning company. President of Millennium Cab Corp. AGRO EXPERT JIM Agricultural professional with 15+ years in agriculture. Owns a 40-acre hemp farm in NV. CIO SAMMY A business leader with strong experience in real estate, finance, business strategy and sales COO BURHAN Experienced in daily ops of the company and executive works (IT, Marketing, Sales, Finance etc.) R&D TO ADD PhD chemist in Agriculture domain. Heads R&D.
  15. 15. We are one of 3 Mass Extraction Machineries in the US We can not only mass produce isolates quickly, but can produce them cheaper than any of our competitors. Create a 140,000 - 200,000 SF processing facility located in the Midwest. We will have one of the first major hemp processing machines with the ability to produce up to 1,560 Kilos of CBD isolate in 24 hours. WHERE WE ARE + WHERE WE WANT TO BE
  16. 16. Detroit Michigan 160,000 SF Facility 2.6M Gut rehab, 30 offices, Located between 2 major airports in Detroit Terre Haute 187,000 SF Facility 2.2M Built in 1989 – Needs updates and Addition to roof. Location needs to be gutted & converted to hemp processing Facilities & Space  Warehouse – Clean, storage area, climate control, extraction lab, update rec room, solar panels, addition to the roof for extraction equipment & cafeteria.  Offices – Clean, create war room, meeting room, sales floor, waiting room, bathroom, utilities as needed. Team Workplace
  17. 17. $4,000 - $5,499 GLOBAL 98% or HIGHER1248 Kgs / DAY avg. price per unit with 80% avg. Performance Capacity capability of shipping worldwide CBD Concentrate (Medical Grade Isolate) With an average 5% efficiency of our machinery, our company can generate 41.9M in the first year of operating. PROJECTIONS & TARGETS 30%+ Year over Year Industry Growth Internal Rate of Return is 112% Investment recouped in 24 months If we can capture a market share of 3.82% in year 2 and operate an average of 8% efficiency, we can generate enough capital to repay initial investment by second year.
  18. 18. TRANCHE 1 - FUNDING CLOSE – CONSTRUCTION  11M Real Estate  5.9M Extraction Machinery  16.9M at close IPO ASK & TIMELINE 01 02 03 04 Start up & Reserve Capital in exchange for 49% Equity in the proposed venture. TRANCHE 2 – CONSTRUCTION PHASE From Construction Start to finish  1.2M reserve  5k website  46,500 Permits  2.6M During construction TRANCHE 3 - OPEN  2.8M for Hemp Order  59,000 Ethanol  2.86M at open
  19. 19. FAQs WHAT WILL YOU DO IF THE FACTORY BURNS OR SOMEONE STEALS YOUR PRODUCT? WHAT IF DEMAND FOR CBD ISOLATES CHANGES? No, America just legalized the crop & American farmers need a replacement to soy. With many eco-friendly uses, Hemp is changing multiple industries. Our products are medical grade and our lab is of the highest quality. Regulation will only effect consumer facing products. Our buyers will still need to source their isolate for medicines. In addition, we predict American CBD Isolates to be in demand overseas for medicines & consumer products due to the strict regulations we have for medicinal extractions. We will be fully insured to cover liability, theft, etc.. We’ve also budgeted for heavy security and plan to install cameras throughout the facility. Any theft or damage will be covered by insurance. Analysts at reputable firms and publications have projected tremendous growth, confirmed by actual sales data collected. In the event CBD isolate demand changes our machinery can extract some other isolate that needs mass production. For example, reaching out to major pharm company to provide a pharmaceutical grade isolate of another product. In a worst case scenario, we can always flip the facility. WHAT WILL YOU DO IF FDA REGULATES CBD? WILL THE GOVERNMENT BAN HEMP?
  20. 20. Please contact greenrockextraction@gmail.com with your interest THANKS
  21. 21. The sale of GCC membership interests will not be registered with the U.S. Securities and Exchange Commission (the “SEC”) under the Securities Act of 1933, as amended (the “Act”), in reliance upon the exemptions from such registration requirements provided for under Section 4(a)(2) of the Act and Regulation D thereunder relating to certain limited private offerings. Consequently: Securities Disclosure and Restrictions - Membership interests in the Company are only available to accredited investors which, for natural persons, are investors who meet certain minimum annual income or net worth thresholds. - GCC is not required to comply with specific disclosure requirements that apply to securities registered under the Act. - The securities are subject to legal restrictions on transfer and resale and investors should not assume they will be able to resell their securities. These materials do not constitute an offer to sell or a solicitation of an offer to buy Membership interests in the company. Such offers are made solely to qualified investors to whom a copy of the GCC's Private Placement Memorandum ("Memorandum") has been personally delivered. Potential investors should rely only on the information contained in the Memorandum in making their decision to invest. Investing in our project constitutes undertaking substantial risk. Invest at your own discretion. Do your own research before signing agreements.

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