THIS IS THE DEAL

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Invest $4 M to buy all equipment and lab furnishings… including a 10K sq. ft. steel new construction… extraction processing facility… built to cGMP for Pharmaceuticals required by FDA. These regulations are not actually currently codified with specific regard for the emerging hemp oils extraction industry… however, it is without doubt that the FDA will enter to regulate GMP’s.

The line will have a daily throughput… of 5000 pounds of biomass per day.
Thompson publishes 4K pounds however we will run 24 hours ( it is not practical to shut this line down… it takes 4 hours to stop and 4 to start) 
so the numbers will be 7K… but we are working with 5K to stay conservative
with projections.

We will form an LLC specifically to own and operate extraction facilities in one or two locations depending on the final amount of the investment capital… being $5M or $10M. Those locations are Medford, Oregon and Spokane, Washington.

It is imperative to form and fund this business immediately… if… it is to be done at all.

Here is why.
This opportunity is time sensitive pertaining to reliability and longevity of the existing profit margin. We have this season of September through Feb/March with the solid projection of the numbers we have listed below… pertaining to revenue expectation.  The existing price structure may continue for another 12 months but… it is our feeling that is reckless to convince either ourselves or investors that there is not going to be a major market adjustment… which our research projects to happen… as soon as processors stop making the mistakes they are currently making.

We foresee an ever increasing race to the bottom after this season of 2019 through early 2020. Many industry experts forecast a year longer… but our position is conservative…  We choose to view the possibility of an extended period of the current high profit margin continuing…  as being a pleasant surprise if it does occur.  We believe it is a poor plan to count on the market at this margin of profits… beyond Feb/Mar 2020

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REQUIRED CAPITAL TRANCHES SCHEDULE

$1.5M INITIAL DRAW 
Immediately payable – direct to Thompson Global Engineering. This payment triggers equipment throughput line construction with a lead time for delivery of 4 months.

$500K immediately payable to Extraction Facility’s building construction funding account

for facility building construction @ $400K for 10K sq. ft. (steel building with on slab to grade) $100K prudent reserve for building industrial furnishings and cGMP requirements.

There are no personnel draws whatsoever. All investment capital is accounted for buying only business operation equipment and infrastructure.

Balance of $1.5 per throughput line is due at the beginning of month 3… of the four month lead time… that is required for the equipment construction contract with Thompson Global.

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The example being used here is based on a ten percent CBD content example…for the numerical simplicity of Bio-Mass yield and revenue calculation purposes. Actually our operating agreement will specify that a 10% CBD analysis will be our minimum… to accept any Bio-Mass consignment for toll processing any contract with our facility.  All actual yields therefore… will increase by each percentage point above ten for each harvest parcel that is processed.  The measured yields of each batch processed… will be homogenized numerically… upon tallying all included batch runs for each individual clients crop parcel total.

Processing 5,000 pounds of bio-Mass per Day which contains 10% CBD… will yield

5,000 X 6% ÷ 2.2 = 136.36 Liters (Kilos) X $5,000.00 = $ 681,818.18 gross per day of operation.
20 X $ 618.818.18 = $12,376,363.60   …monthly. We’ve arrived at this projection… by dividing our realistic expectations… in half… we have also considered… that we’ll be successful if we divide in half… twice again.

If you look online with the appropriate keywords… you will quickly find that there is a shortage of competent “Processors”… especially when compared to both Farmers with Hemp on hand… and CBD product manufacturers.

Our primary goal will be to make CBD Pure Distillate and CBD Full Spectrum Isolate for wholesale in Bulk Kilo Quantities. This Equipment will make both of those products… with an end to end through-put. Put Hemp Flowers in the front and get purified oil from the fractional distillation column on the end… sell that or turn it into isolate… with the included extra step equipment.

We will contract the entire through-put system from “Thompson Global Engineering”. 

This decision has been made after complete comparative research of all the equipment that is available and being currently used throughout the entire CBD extraction industry.