Caribbean Botanicals aims to lead the CBD industry in Puerto Rico by developing a vertically integrated operation including a 100-acre farm, extraction facility, and partnership with a pharmaceutical company. The company plans to produce pharmaceutical-grade CBD products from seed to finished goods. Puerto Rico offers tax incentives for such operations and its location provides access to US, Latin American, and European markets. The global CBD market is growing rapidly and companies need high-quality, properly extracted CBD oils.

1. Caribbean Botanicals

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. 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. 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. 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. 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. 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. 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. 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.  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

12. Clone Finished CBD product
Seed
Clone acquisition
Greenhouses for cloning operations
Farming
Extraction
Manufacturing
Sales and Marketing (Retail & On-line)

13. 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

14. SEEDS and CLONE ACQUISITION
Plants from clones in various stages of growth
• Purchase of clones – Denver, CO
• Purchase of high grade, female CBD seeds

15. 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

16. Drying and Curing Barns
• Ventilation
• Dehumidifiers
• Drying racks

17. 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

18. 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.

19. Stages & Costs of Extraction
• Primary Extraction (Crude)
• Equipment Cost:
• Refinement (Distillate, Pharmaceutical Grade Isolate)
• Equipment Costs:
• Pharmaceutical | Separates compounds
• Equipment Costs:

20. 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

21. 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)