One Love Executive Business Plan 4

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BUSINESS PLAN | 2019

ONE LOVE COLOMBIA BUSINESS PLAN


– Notice –

The information presented in this document is highly sensitive and confidential and is to be used by
authorized parties for the purpose of determining a preliminary indication of interest in One Love
Colombia SAS, (“One Love Colombia” or “the Company.”) The recipient of the Business Plan agrees by its
receipt not to reproduce, duplicate, or reveal, in whole or in part, information presented herein without
the written permission of the Company.

The information contained in the Business Plan was provided by the Company and other sources. It has
been reviewed, approved, and released by the Company, who assumes responsibility for its contents.
Estimates and projections contained herein have been prepared by the management of the Company,
involve significant elements of subjective judgment and analysis, and are based on certain assumptions.
Actual results may vary from estimates and projections and these variations may be material.

No representation or warranty, expressed or implied, is made as to the accuracy or completeness of the


information contained in this overview, and nothing contained herein is, or shall be relied upon as, a
promise or representation, whether as to the past or the future. The Business Plan does not purport to
contain all of the information that may be required to fully evaluate the Company for a potential business
relationship, and any recipient thereof should conduct its own independent analysis and due diligence
process.

THIS PRESENTATION IS FOR INFORMATION PURPOSES ONLY AND DOES NOT CONSTITUTE AN OFFER TO
SELL OR SOLICITATION OF AN OFFER TO BUY ANY SECURITY.

For additional information, contact:

ONE LOVE COLOMBIA SA S


Alfie McKenzie
Address: Colombia
Tel: (604)312-5176
Email: [email protected]

This Business Plan was prepared by:

CONCORD BUSINESS DEV ELOPMENT INC.


500-666 Burrard Street
Vancouver, BC V6C 3P6 Canada
Tel: (604) 689-2556 Fax: (604) 689-7758
Website: www.concordbusiness.com
Email: [email protected]

ONE LOVE COLOMBIA BUSINESS PLAN


BUSINESS PLAN HIGHLI GHTS

Name of Company One Love Colombia SAS

Major cultivation, production and manufacture of cannabis seeds, seedlings,


Business premium dried flower and CBD oil and derivates in the prime legal agricultural
region of Colombia, SA.
All Right Mind Enterprises, Old School Breeders Association, Monster Breeders,
Partnerships
and Reeferman Genetics™ and LifeTech.
Colombia - One active licence and two pending licences.
Licenses
Canada – One active license – MMAR.
Winner of major industry awards such as the High Times Cannabis Cup; El Copo,
Awards
Medellin, Colombia, and High Times Jamaica.

Market Size Cannabis producers global market worth $500 billion by 2025.

Proprietary library of award-winning cannabis strains, seed; deep knowledge base


Value Proposition
in propagation and cultivation; lower cost production & price points.

Funds Required $10,000,000

Year 1: $19,140,000; Year 2: $36,360,000; Year 3: $48,480,000;


Revenue Projections
Year 4: $60,600,000 Year 5: $70,800,000.

TOTAL REVENUES AND O PERATING INCOME

T O TA L R E VE NUES & O P E R AT I NG I N COM E


Total Revenues Operating Income

$80,000,000
$70,000,000
$60,000,000
$50,000,000
$40,000,000
$30,000,000
$20,000,000
$10,000,000
$-
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

ONE LOVE COLOMBIA BUSINESS PLAN


TABLE OF CONTENTS

1 EXECUTIVE SUMMARY ............................................................................................................................. 1


1.1 Company Overview ......................................................................................................................................1
1.2 Products .......................................................................................................................................................1
1.2.1 Guarantee ............................................................................................................................................2
1.2.2 Proprietary Genetic Strains..................................................................................................................2
1.3 Awards .........................................................................................................................................................3
1.4 Brand Recognition ........................................................................................................................................4
1.5 Licenses ........................................................................................................................................................4
1.6 Why Colombia ..............................................................................................................................................4
1.6.1 Colombia's Regulatory Framework is the Benchmark for Latin America (LATAM): ............................4
1.7 Operations Overview ...................................................................................................................................5
1.8 Legal Environment .......................................................................................................................................5
1.9 Global Cannabis Market ...............................................................................................................................6
1.9.1 Colombian Cannabis Export Market ....................................................................................................6
1.9.2 Canadian Market .................................................................................................................................6
1.10 Capital Requirements ...................................................................................................................................7
1.10.1 Use of Proceeds ...................................................................................................................................7
1.11 Revenue projections ....................................................................................................................................7
1.12 Pending buyer contracts ..............................................................................................................................8
1.13 The Opportunity ...........................................................................................................................................8
2 COMPANY OVERVIEW .............................................................................................................................. 9
2.1 Corporate Data .............................................................................................................................................9
2.2 Mission Statement .......................................................................................................................................9
2.3 Management ..............................................................................................................................................10
2.3.1 Alfie Mandell McKenzie, CEO, Founder, |Breeder .............................................................................10
2.3.2 Bertrand Vick, PhD, Director ..............................................................................................................10
2.3.3 Lee Ann Wolfin, Director ....................................................................................................................10
2.3.4 Rene Diazgranados, Director .............................................................................................................11
2.3.5 Kevin Kardosh, Director .....................................................................................................................11
2.3.6 Gabrielle Butterfield, Director, Public Relations, Communications ...................................................11
2.3.7 Dawn Cox, M.Ed., RCC, Director ........................................................................................................12
2.4 Advisory to the Board ................................................................................................................................12
2.4.1 Andrés Jaramillo, Advisory to the Board, Lawyer ..............................................................................12
2.5 Management Team ....................................................................................................................................12
2.5.1 Luis Guillermo Reyes Peñaloza, Director, Head of Processing & Extraction ......................................12
2.5.2 Erik Biksa, Agronomist, Organic Plant Specialist ...............................................................................13
2.5.3 Sebastian Corrales, Master Brewer, Master Grower .........................................................................13
2.6 Strategic Alliances ......................................................................................................................................14
2.6.1 Allright Mind Enterprises ...................................................................................................................14
2.6.2 Reeferman Genetics™ ........................................................................................................................14
2.6.3 Old School Breeders Association ("OSBA") ........................................................................................14
2.6.4 Monster Breeders Association ...........................................................................................................14
3 PRODUCTS ............................................................................................................................................. 15
3.1 Introduction ...............................................................................................................................................15
3.2 Seed Sales - Portfolio of Proprietary Seed Strains .....................................................................................15

ONE LOVE COLOMBIA BUSINESS PLAN


3.3 Cannabis Industry Awards ..........................................................................................................................16
3.4 Seed Production rate & Sales .....................................................................................................................17
3.4.1 Industry Advantage ...........................................................................................................................17
3.5 Seedling Sales .............................................................................................................................................18
3.5.1 Industry Advantage ...........................................................................................................................18
3.6 CBD Oil Extracts ..........................................................................................................................................19
4 OPERATIONAL STRATEGY ....................................................................................................................... 22
4.1 Phase One ..................................................................................................................................................22
4.2 Environmental Profile ................................................................................................................................22
4.3 BUSINESS PROCESS MANAGEMENT (BPM) ................................................................................................23
4.4 Current Good Manufacturing Practices (cGMP) ........................................................................................23
4.5 CBD Processing ...........................................................................................................................................23
4.6 Crop management .....................................................................................................................................24
4.7 Cultivation Areas ........................................................................................................................................24
4.8 License and Legal Status.............................................................................................................................24
5 FUTURE PLANS AND PROJECTS ............................................................................................................... 25
5.1 CBD Beer ....................................................................................................................................................25
5.2 Research Projects .......................................................................................................................................26
5.3 CBD Products – branded and white label ...................................................................................................26
5.4 Cultivation in Canada .................................................................................................................................28
5.4.1 Key Metrics of the Canadian Property ...............................................................................................28
5.5 Ecuador ......................................................................................................................................................28
6 MARKET RESEARCH AND ANALYSIS ........................................................................................................ 29
6.1 Global Cannabis Market .............................................................................................................................29
6.1.1 Global Distribution and First Mover Advantage ................................................................................30
6.2 Global Cannabis Legal Status .....................................................................................................................30
6.2.1 World Health Organization (WHO) ....................................................................................................30
6.3 Colombian competitive Advantages in Cannabis Production ....................................................................31
6.3.1 Legality ..............................................................................................................................................31
6.3.2 Quota .................................................................................................................................................31
6.3.3 Climate ..............................................................................................................................................31
6.3.4 Natural Resources .............................................................................................................................31
6.3.5 Agricultural History............................................................................................................................31
6.3.6 Cost of Cannabis Compared ..............................................................................................................32
6.4 Summary of Colombian Competitive Advantages in the Cannabis Sector.................................................33
6.5 Canadian Market ........................................................................................................................................34
6.5.1 Supply Shortage in Canada ................................................................................................................34
6.5.2 Canadian Buying Preferences ............................................................................................................34
6.5.3 Canada Recreational Cannabis Market Size ......................................................................................35
6.6 CBD Market ................................................................................................................................................35
6.6.1 Aggregate Demand for CBD ..............................................................................................................36
6.6.2 Growth of Concentrates ....................................................................................................................36
6.6.3 Benefits of CBD ..................................................................................................................................37
6.7 Crop Value ..................................................................................................................................................37
6.8 A Year of Milestone Events ........................................................................................................................38
7 FINANCIAL PROFORMAS ........................................................................................................................ 39
7.1 Capital Requirements & Use of Proceeds ..................................................................................................39

ONE LOVE COLOMBIA BUSINESS PLAN


7.2 Cash Flow ...................................................................................................................................................40
7.3 Revenue Summary .....................................................................................................................................41
7.4 Income Statement ......................................................................................................................................42
7.5 Gross Revenues & Net Income ...................................................................................................................42
7.6 Return on Investment ................................................................................................................................43
7.7 Break-Even Analysis ...................................................................................................................................43
7.8 Balance Sheet .............................................................................................................................................44
7.9 Ratio Analysis .............................................................................................................................................45
7.10 NPV / VRR ...................................................................................................................................................45
7.11 Sensitivity Analysis .....................................................................................................................................46
8 APPENDIX .............................................................................................................................................. 47
8.1 Licenses ......................................................................................................................................................47
8.2 License Agreement re: Strains ...................................................................................................................48
9 BIBLIOGRAPHY ....................................................................................................................................... 49

ONE LOVE COLOMBIA BUSINESS PLAN


Executive Summary

Reeferman Genetics Proprietary


Grape Gorilla, grown from
Feminized Seeds via Old School
Breeders Association. Blueberry X
G.Bud X special strain.

ONE LOVE COLOMBIA BUSINESS PLAN


1 EXECUTIVE SUMMARY
1.1 COMPANY OVERVIEW
One Love Colombia SAS ("One Love Colombia", "One Love" or the "Company") is a producer, breeder,
grower and manufacturer of cannabis seeds, seedlings, premium flower and CBD derivatives in Colombia,
South America. The Company has over 111 proprietary strains that have been developed by a master
breeder and will provide seeds and seedlings to other growers globally, as well as producing flower for
pharmaceutical companies and manufacturing bulk CBD oil. One Love Colombia strains have won
worldwide recognition for years and garnered prestigious awards such as the coveted High Times
Cannabis Cup. The Company holds itself to the highest standards in genetic strain development,
production and manufacturing and guarantees its products.

$1 invested with Cannabis in Colombia generally goes about five times further than the typical cannabis
company in Canada as the capital costs are substantially lower. The country is poised to become one of
the largest producers and exporters of marijuana in the world on the basis of the export quota assigned
by the International Narcotics Control Board last year. As per the INCB, Colombia is authorized to grow
40.5 tonnes per year, or roughly 44 percent of the world’s legal marijuana.

1.2 PRODUCTS
One Love Colombia is dedicated to advanced technical horticulture that focuses on the production,
processing and distribution of medicinal and therapeutic products based on medicinal cannabis. The
Company enjoys a direct association with Reeferman Genetics™. Reeferman has developed Strain Seeds
over several generations and is well known, with award winning seeds and strains that have a generated
a solid fan base globally.

One Love's cannabis products undergo a potency, purity


and quality test that confirms and guarantees their
efficacy before being brought to market.
One Love's medical cannabis cultivation, processing and production practices are the most advanced in
the industry. Crops are cultivated according to the requirements and quality standards of the
pharmaceutical industry demanded by international and national customers. Medical cannabis crops are
100% organic, and no fertilizer or chemical insecticide products are used.

ONE LOVE COLOMBIA BUSINESS PLAN 1


1.2.1 Guarantee
▪ All seeds purchased are backed by an uncompromised ONE HUNDRED PERCENT SATISFACTION
GUARANTEE.
▪ Guaranteed World Delivery
▪ Knowledgeable Service
▪ +90% germination
▪ +60% female seeds

One Love, with its 111 proprietary strains and low-cost operations
in Colombia,
has the opportunity to become one of the main sources of quality
cannabis seeds in the world.
1.2.2 Proprietary Genetic Strains
Under its association with several well-known brand names in the industry, the Company has over 111
proprietary strains that were developed by influential cannabis breeders. Some of the names of its award-
winning strains are; Pink Kush, Ultra King, Willie Nelson, Love Potion Next Gen, Black Willie, Kodiak Gold
X Mango, Harmony Kush Feminized, Tuna Kush, and Early Purple Kush.

2 ONE LOVE COLOMBIA BUSINESS PLAN


1.3 AWARDS
In October 2015, at the 1st Annual High Times World Cup, Reeferman Genetics™ took
home FOUR Awards, including Best Indica, Best High CBD Strains, People’s Choice and
Best Non-Solvent Hash. A list of other major industry awards is included in Chapter 3,
Products.

ONE LOVE COLOMBIA BUSINESS PLAN 3


1.4 BRAND RECOGNITION
One Love Colombia, through its Strategic Alliances, enjoys a broad industry recognition that covers its
products from seed to sale.

The One Love Colombia and Reeferman Brands are Well Known Internationally

1.5 LICENSES
One Love has one active cannabis license in Colombia with two pending licenses as follows:

1.6 WHY COLOMBIA


1.6.1 Colombia's Regulatory Framework is the Benchmark for Latin America (LATAM):
▪ Rigorous pre-application screening + ongoing post-licensing compliance standards
▪ Legalizes cannabis extracts and oils, no distribution of flowers or plant material to date
▪ Focus on promoting science, and global commercial integration
▪ Patients not required to register with a national agency; low-THC meds available OTC

4 ONE LOVE COLOMBIA BUSINESS PLAN


1.7 OPERATIONS OVERVIEW
As shown in the following image, it is visualized that the entire productive period from cultivation to the
last step called "inventory control" takes a total time of approximately 26 weeks. Subsequently, from the
second cycle and adopting the pre-nursery technique, the times are reduced to 19 total weeks per crop
area. That is, in total it is projected to have three work areas concurrently cultivated. Therefore, as a total
area it is estimated that 0.51 hectares will be needed, with the purpose of maintaining a continuous
production.

ACTIVITY ACTIVITY TIME


Cultivation 17 weeks
Curing flower 1 week
Receipt and Collection 1 week
Extraction process 3 weeks
Packaging and Storage 1 week
Production batch quality control 1 week
Deliveries 1 week
Inventory Control 1 week
Total Production Timeline per Crop 26 weeks

Young Cannabis Seedling with its First Sprout

1.8 LEGAL ENVIRONMENT


On December 22, 2015, the President of Colombia signed a decree that formally legalizes the cultivation
and sale of medical cannabis. Although MMJ has technically been legal in the country since 1986, the new
law established a regulatory structure for the cultivation and distribution of medical marijuana – in effect
creating an industry around cannabis.

Under the regulations, growers need to obtain licenses from the National Narcotics Council, and those
interested in manufacturing cannabis-based medicines have to get permits from the country’s health
ministry. The ministry oversees exporting MMJ to countries where it is legal.

One Love Colombia has a license to grow THC, to manufacture products with CBD and 10 strains classified
with the government. See more license information in Appendix.

ONE LOVE COLOMBIA BUSINESS PLAN 5


1.9 GLOBAL CANNABIS MARKET
According to a new report from BMO in October 2018, the global cannabis sector is projected to attain a
value of $194.6 Billion by 2025.

1.9.1 Colombian Cannabis Export Market


Colombia is now the second largest federally regulated medical cannabis market in the world by
population, recent estimates from the International Narcotics Control Board at the UN, show Colombia
could supply as much as 44 percent of global demand for medical marijuana. In as little as a few years,
cannabis-based exports could eclipse the Andean nation’s more traditional export products including coal,
flowers, bananas and even coffee1.

One Love Colombia will Produce and Sell Cannabis Seeds


1.9.2 Canadian Market
Canadians are expected to spend as much as $7.17 billion on cannabis products in 2019 and increase their
overall consumption by up to 35% post-legalization, according to a new Deloitte report titled “A Society
in Transition, an Industry Ready to Bloom: 2018 Cannabis Report.” This outpaces spending on alcohol.

Estimated Number of Legal Recreational Users & Kgs of Consumption (2017-2021)

1 https://investingnews.com/innspired/latin-american-hub-medical-marijuana-market-in-colombia/

6 ONE LOVE COLOMBIA BUSINESS PLAN


1.10 CAPITAL REQUIREMENTS
In order to undertake the purpose of this business plan, the company requires $10,000,000.

1.10.1 Use of Proceeds

Capital Requirement
Year 1
Building & Equipment
Infrastructre & Equipment $ 216,473
Offices & Cellar $ 366,705
Production Costs/Sowing Cycle/CBD $ 1,115,108
Extraction Costs/Sowing Cycle/CBD $ 1,472,727
Land/Seeds $ 150,000
Seedlings Greenhouse $ 200,000
Buildout Cost/Seeds $ 5,000,000
Subtotal $ 8,521,014
Marketing & Admin
Operating Costs $ 321,873
Company Staff Costs $ 427,636
Licenses $ 54,370
Financing for Villagers $ 152,422
Marketing 522,686
Subtotal $ 1,478,986
Total $ 10,000,000

1.11 REVENUE PROJECTIONS


Revenue Summary
Year 1 Year 2 Year 3 Year 4 Year 5
Total Revenues $ 19,140,000 $ 36,360,000 $ 48,480,000 $ 60,600,000 $ 70,800,000
Total COGS $ 3,207,027 $ 6,021,081 $ 7,228,107 $ 8,035,134 $ 8,235,134
Operating Expenses $ 2,016,007 $ 4,518,022 $ 6,024,029 $ 7,530,036 $ 8,550,036
Operating Income $ 13,916,966 $ 25,820,898 $ 35,227,864 $ 45,034,829 $ 54,014,829

ONE LOVE COLOMBIA BUSINESS PLAN 7


1.12 PENDING BUYER CONTRACTS
One Love Colombia has pending contracts with potential customers of its seeds and seedlings:

1.13 THE OPPORTUNITY


One Love Colombia presents the opportunity to invest in the Cannabis industry in a company that:
▪ Has a catalogue of over 111 proprietary and award-winning strains
▪ Institutional level demand for the highest quality hybridized seeds (for CBD) and hemp
▪ Adheres to medical cultivation and processing best practices
▪ Will be a major bulk wholesaler of cannabis seeds and seedlings globally
▪ Will be a major bulk wholesaler of CBD oil globally
▪ Can produce seeds, seedlings and CBD oil at highly competitive prices as it is located in Colombia
▪ Large export market - export to Canada and other countries globally
▪ Is managed by a Canadian and experts with deep industry knowledge in the cannabis sector
▪ Founder, Alfie McKenzie, has over 20 years and is in a class of under ten Virtuosos of this craft in
the world.

The enormous growth in the Cannabis sector that has been realized with legalization, has opened up one
of the biggest commercial opportunities of this time and with its key competitive advantages, One Love is
positioned to become a major player.

8 ONE LOVE COLOMBIA BUSINESS PLAN


2 COMPANY OVERVIEW

2.1 CORPORATE DATA

ONE LOVE COLOMBIA CO RPORATE DATA

Name of Incorporation One Love Colombia SAS


Date of Incorporation September 23, 2016
Street 65, #86 – 62, Bogota, Columbia
Address of Incorporation Carrera 9 #7-65 Centro, Zipaquira
Cundinamarca 25052 Colombia
Jurisdiction Colombia
Telephone Number +57 300 667 4956
Website www.onelovecolombia.com
Email [email protected]
Legal Counsel Abogado Andres Jaramelo
Accountant Claudia Medina Mora
CEO Alfie Mandall McKenzie
Ernest Alfred McKenzie, Director
Directors
Dwight Diote (right hand man of Nevil Schumacher – Operation
Advisory to the Board Green Merchant)
Dr. Restrepo
Eric Biska, Agronomist
Management
Madeline McKenzie, Seed Breeder

2.2 MISSION STATEMENT

One Love's mission is to provide seeds, seedlings and products


of high pharmaceutical and therapeutic quality for
global sale and distribution.

ONE LOVE COLOMBIA BUSINESS PLAN 9


2.3 MANAGEMENT
2.3.1 Alfie Mandell McKenzie, CEO, Founder, |Breeder
https://www.linkedin.com/in/al-mac-kenzie-426a9382/

Well respected industry leader, Alfie McKenzie (on the right in the photo above),
is the founder and CEO of One Love Colombia. He brings a 20+ year background
in selective breeding and cultivation that captured top industry awards from High
Times Magazine's annual "Cannabis Cup" and others. His knowledge of breeding
and strains is legendary in the business and his catalogue of special and unique
recognized strains numbers over 90 entrants that are catalogued and
proprietary. Mr. McKenzie has held a legal MMAR license2 in Canada since 2009.
Founder of One Love Colombia,Reeferman Genetics, Allright Mind Enterprise,
Monster Breeders Association, Old School Breeders Association.
Education: British Columbia Institute of Technology, Microbiology.

2.3.2 Bertrand Vick, PhD, Director


https://www.linkedin.com/in/bertrand-vick-4056044/
Bertrand Vick, PhD, brings considerable experience in plant biology and genomics
to his role as a Director in One Love Colombia. He is a Bio-industrials entrepreneur
and executive, and was formerly the Chief Scientific Officer and Founder of Aurora
Algae Inc. He is currently the CEO and Founder of Rev Genomics, Inc.
Specialties: R&D/science strategy and operations, molecular genetics, strain
development, IP strategy, general management and leadership, algal
biotechnology, microbiology, gene expression, venture capital
PhD, Molecular and Cell Biology, University of California, Berkeley.

2.3.3 Lee Ann Wolfin, Director


https://www.linkedin.com/in/leeannwolfin/
Ms. Lee Ann is a seasoned executive with a strong background in public and
private companies. Currently, she is the CEO of Cresval Capital Corp., a junior
mining company focused on exploration of North American metal properties and
listed on the TSX.V Exchange (CRV) and the Frankfurt Exchange (CFV).

Ms. Wolfin is a non-practicing lawyer in both California and British Columbia. She
holds a Juris Doctor from Southwestern University of Law, California, 1984.

2
MMAR stands for the Marijuana Medical Access Regulations which provided Canadians with a licensing means to
grow and possess their own cannabis for medical purposes. This was introduced in 2001.

10 ONE LOVE COLOMBIA BUSINESS PLAN


2.3.4 Rene Diazgranados, Director
https://www.linkedin.com/in/rene-diazgranados-b58779100/
Rene Diazgranados is the Embassy Officer, Ministry of Foreign Affairs, Colombia, and has a history of
working with the Colombian government in several capacities including international business
development. Mr. Diazgranados resides in Bogota, the capital of Colombia.

MSc Administrative Science, Organizational Leadership, Fairleigh Dickinson University.

2.3.5 Kevin Kardosh, Director


https://www.linkedin.com/in/kevin-kardosh-4904912a/
Kevin Kardosh has extensive & diverse academic and practical experience, both
in North & South America spanning three decades, covering all aspects of:
entrepreneurship, Leadership, Sales Management, Marketing & Branding,
Achievement Science, Supply chain management, International trade, and
Mentorship.
Public speaking to audiences up to 2,000 in the areas of running an efficient
enterprise and establishing superlative (beyond the exceptional) brands,
corporate cultures, and relationships with all the constituents (stakeholders) of
the business -i.e.: colleagues (all staff are colleagues, collaborators, co-
conspirators and co-creators), along with clients, and service providers.
Specialties: Relationship management and Leadership (achieving and maximizing superlative working
relationships) and an unassailable brand, efficiencies, marketing, human behavior and buyer psychology.
Also, 'bootstrapping' a startup and raising seed/ working capital and employing massive creative breathing
life into successful enterprises.

Other past experience includes investment management at Scotia McLeod and a founder at a mutual fund
managed by Aventine Management Group and, Alpha Delta Funds.

2.3.6 Gabrielle Butterfield, Director, Public Relations, Communications


https://www.linkedin.com/in/gabrielle-butterfield-526818149/
Ms. Gabrielle Butterfield brings a diverse cultural background to One Love
Colombia, including a proficiency in the Spanish language. Her extensive travels
in Latin America and familiarity with the customs and language, enables her to
provide support and clarity in communications with government and
agriculture associates in Colombia.
Key Attributions
▪ Member of Global Innovational Wellness Research Institute
▪ Alliance of Veterans and Family Services Inc.
▪ Member of the Board of One Love Colombia
▪ Founding member of Reeferman Genetics

ONE LOVE COLOMBIA BUSINESS PLAN 11


2.3.7 Dawn Cox, M.Ed., RCC, Director
https://www.linkedin.com/in/dawn-cox-m-ed-psyc-rcc-b4040519/
Dawn Cox brings a history of work in trauma recovery and is registered with the
BC Association of Clinical Counsellors (BCACC). Her studies and training have
focused on trauma recovery, multicultural counselling and the areas of self-
esteem.
In addition to her private practice, Dawn Cox maintains a counselling position at
BC Families in Transition – BCFIT, a not-for-profit organization in the Victoria, BC
area. She is also a counsellor/case manager for Lifetime Networks Victoria (LNV),
an organization that builds safe and secure futures for those isolated and
vulnerable due to disabilities.
M.Ed., Counselling, Psychology, University of Victoria.

2.4 ADVISORY TO THE BOARD


2.4.1 Andrés Jaramillo, Advisory to the Board, Lawyer
Mr. Andres Jaramillo, is a lawyer in Bogota, Colombia with a practice that supports business and cultural
interests in Colombia. His firm protects copyrights, negotiates contracts, labor rights and management for
clients. Areas of practice include corporate law, foreign investment, IP dispute resolutions and litigation.

His firm seeks to strengthen the use of intellectual property tools and the right of clients to promote
business to those who work in cultural industries such as film, music and / or plastic and visual arts.

J.D., University Del Rosario, Bogota, 2010.

2.5 MANAGEMENT TEAM


2.5.1 Luis Guillermo Reyes Peñaloza, Director, Head of Processing & Extraction
https://www.linkedin.com/in/luis-guillermo-reyes-pe%C3%B1aloza-79269a94/

Luis Penaloza is an Industrial Engineer with 18 years of work experience in areas such as Processes,
Financial, International Commerce, Commercial and Projects, of companies related to chemicals, alcoholic
beverages and pharmaceuticals sectors. He has been part of the teams dedicated to design, construct
and certify with Good Manufacturing Practices, two alcoholic beverages facilities and one pharmaceutical
plant for liquids in Colombia.

He has managed strategic customers, such as multinational and government companies, in the chemical,
alcoholic beverage and pharmaceutical sectors in Colombia and Ecuador, including Neopharma that
includes 13 facilities and more than 100 people in 10 cities of 4 different countries.

Mr. Penaloza has established business relationships with several companies in more than 15 different
countries globally, that includes selection, contract negotiation and acquisitions in countries such as
Colombia, Ecuador and the United States of America. Additionally, Luis Penaloza has been in charge of
expanding operations in the chemicals sector, achieving the opening of two distribution facilities in
Ecuador, and commercial offices in Panamá and the United States of America.

12 ONE LOVE COLOMBIA BUSINESS PLAN


He led teams in the development of new International commerce operations including import and export
of raw materials, packaging materials and final products in Colombia, Ecuador, Panamá and the United
States of America, using containers, isotanks and bulk vessels.

2.5.2 Erik Biksa, Agronomist, Organic Plant Specialist


linkedin.com/in/erik-biksa-2337a317
Erik Biksa has been writing about and discussing hydroponics growing, related
technologies and cropping methods since 1999 in a variety of professional
publications and platforms globally, including the prestigious High Times
magazine. Erik has travelled the world learning and teaching modern growing
techniques and technologies and is appreciated by many growers for his
informative yet hands on approaches. Presently, he is the Editor at Grozine
Hydroponics Magazine.

Erik Biksa holds a diploma in agriculture with majors in fertilizer sciences and crop
production. Erik has amassed over 18 years of indoor gardening experience and
intensive research. Since first appearing in Maximum Yield in 1999, the “Ask Erik”
column and numerous articles have reached growers throughout the world.
Key Attributions
▪ High Times Magazine: Author - https://hightimes.com/author/erikbiksa/
▪ Grozine Hydroponics Magazine: Editor - https://www.grozine.com/
▪ Maximum Yield Magazine: https://www.maximumyield.com/contributors/erik-biksa
▪ http://www.rosebudmag.com/growers/hydroponic-tips-ideas/hydroponics-journalist-gives-
insider-info

Erik Biksa holds a diploma in agriculture with majors in fertilizer sciences and crop production.

2.5.3 Sebastian Corrales, Master Brewer, Master Grower


Sebastian Corrales is an experienced Master Brewer at the craft brewery named "CERVECERIA EL
ARTESANO" in Quito, Ecuador. Trained by experts, Mr. Corrales is one now and claims several industry
awards such as:

◾ Bronze medal in the 2017 Copa Cerrvezas Mitad del Mundo in the “fruit beer category/Passion
fruit blonde ale”.
◾ Bronze medal in the 2018 Copa Cerveceros del Ecuador in the “fruit beer category/Passion fruit
blonde ale”.
◾ Honorific Medal in the 2018 “fruit beer category/Coconut porter”.
◾ Best brewer of the north award in the 2018 Copa Cerveceros del Ecuador.

Mr. Corrales has a M.Sc. in Brewing Technology, M.Sc. in Biotechnology; post M.Sc. in Biorefinery; PhD In
Food Sciences-Enology) and is a certified Beer Judge (BJCP).

ONE LOVE COLOMBIA BUSINESS PLAN 13


2.6 STRATEGIC ALLIANCES
One Love Colombia has strategic alliances with the following leaders in cannabis breeding and genetics:
2.6.1 Allright Mind Enterprises
Allright Mind Enterprises owns the premium strains and seeds grown by One Love Colombia with a 10%
royalty agreement for all sales of seeds and plants grown with its strains. Allright owns the trademarks
Reeferman Genetics, Old School Breeders Association, and Monster Breeders Association.

2.6.2 Reeferman Genetics™


http://reefermangenetics.com/
Reeferman Genetics™ has earned Multiple Cannabis Cup Awards and International
Recognition for the breeding and development of World Best Medicinal Cannabis Seed
Genetics for decades.
▪ REEFERMAN GENETICS is a trademark of Allright Mind Enterprises Ltd.
▪ "Reeferman Genetics" was trademarked on 2013-05-21 with the Serial Number 85938708.

2.6.3 Old School Breeders Association ("OSBA")


https://oldschoolba.com/
Old School Breeders Association, Monster Breeders, and Reeferman Genetics™ source, select and develop
only the finest medicinal cannabis strains, providing rare and unique land race qualities for growers
seeking World Best Cannabis seeds. All seeds purchased through OSBA are backed by an uncompromised
ONE HUNDRED PERCENT SATISFACTION GUARANTEE.
▪ Old School Breeders Association has over 18 years of Marijuana breeding experience. Old School
brings to market well bred and quality strains and offers a 100 percent satisfaction guarantee.
They carry many of the hard to find and rare Marijuana strains.

2.6.4 Monster Breeders Association


https://oldschoolba.com/index.php/monster-breeders-association/
Monster Breeders Association Inc. is a joint production, combining some of the world’s
best (and biggest) medicinal marijuana cultivators, cannabis breeders and researchers
under one umbrella. Members hail from professional seed breeders from Australia
California, Canada and Jamaica. The Association is working hard to ensure that they
will be able to continue to help patients and carry their work forward in breeding and cultivating of the
finest cannabis strains on the planet.
Proprietary genetics selected for terpenes taste, medicinal effect, and THC or CBD levels including the
length of high, and the strength of the high. Bred for Increased yield, with stellar growth rates, and the
ability to handle diverse growing conditions.
MBA Monster Breeder Association is a trademark of Allright Mind Enterprises Ltd.
" MBA Monster Breeder Association" was trademarked on 2/26/2014 with the Serial Number 86205439.

14 ONE LOVE COLOMBIA BUSINESS PLAN


3 PRODUCTS
3.1 INTRODUCTION
One Love Colombia is a producer, breeder, grower and manufacturer of cannabis seeds, seedlings,
premium flower and CBD derivatives. The Company has over 111 proprietary strains that have been
developed by a master breeder and will grow and distribute their exclusive seeds and seedlings to other
growers in Colombia and globally, and produce bulk CBD oil to achieve aggregate sales of over $170 million
in 5 years.

3.2 SEED SALES - PORTFOLIO OF PROPRIETARY SEED STRAINS


One Love Colombia has the world's largest portfolio of 111 proprietary strains of cannabis that includes
101 with THC content and 10 with CBD content.

With its library of seeds and its cultivation knowledge, One Love can wholesale the award-winning seeds
and small plants to other cannabis sector entrants and become a main supply source to the industry in
multiple countries where it is legalized including Canada and Colombia and others as they become legal.

One Love has the opportunity to become one


of the most trusted sources of quality
cannabis seeds in the world.

ONE LOVE COLOMBIA BUSINESS PLAN 15


3.3 CANNABIS INDUSTRY AWARDS

16 ONE LOVE COLOMBIA BUSINESS PLAN


3.4 SEED PRODUCTION RATE & SALES

One Love curates their specialty variations from 100's of


seedlings to obtain the best of breed. Their cultivators have
over 18 years of experience that includes knowledge of
equipment, and growing methodology to bring high quality
F1 -IBL and feminized seeds to market.
The Company will sell its famous, award-winning seeds under license to other growers in Colombia and
globally.
A trajectory of the number of hectares under cultivation and the number of crops per year, results in the
product output and revenues as shown in the five-year chart below:

SEEDS
Year 1 Year 2 Year 3 Year 4 Year 5
Yearly Seeds 2,500,000 2,500,000 2,500,000 2,500,000 2,500,000
# of Hectares 3 6 8 10 12
# of Crops/Per year 4 4 4 4 4
Total Seeds Output 30,000,000 60,000,000 80,000,000 100,000,000 120,000,000
Seeds Price $0.50 $0.50 $0.50 $0.50 $0.50
Cost of Operation $1,000,000 $900,000 $800,000 $700,000 $600,000
Total Costs/Seeds/Seedlings $3,000,000 $5,400,000 $6,400,000 $7,000,000 $7,200,000
Total Revenues/Seeds $15,000,000 $30,000,000 $40,000,000 $50,000,000 $60,000,000

3.4.1 Industry Advantage


By becoming a major source of seeds to the cannabis industry, One Love can sell to hundreds of clients
globally instead of only furnishing its seeds for cultivation on its own properties. A global market in the
enormous growth cycle being experienced in the Cannabis industry offers the opportunity for the
Company to become entrenched as a major supplier for decades to come.

ONE LOVE COLOMBIA BUSINESS PLAN 17


3.5 SEEDLING SALES
One Love's second product will be the sales of seedlings to other industry cannabis cultivators. The
seedlings will be grown in the ideal climate conditions of Colombia which offers one of the most fertile
agricultural regions in the world. Additionally, as Colombia is near the equator, the light/dark ratio is
almost 50/50 which is preferred by cannabis plants, making this an ideal environment for cultivating this
crop.

A trajectory of the number of hectares under cultivation and the number of crops per year, results in the
product output and revenues as shown in the five-year chart below:

SEEDLINGS
Year 1 Year 2 Year 3 Year 4 Year 5
# of Plants/Hectare 20,000 20,000 20,000 20,000 20,000
# of Hectares 3 6 8 10 12
# of Crops/Per year 5 5 5 5 5
Total Seeds Output 300,000 600,000 800,000 1,000,000 1,200,000
Seeds Price $1.00 $1.00 $1.00 $1.00 $1.00
Total Revenues/ Seedlings $300,000 $600,000 $800,000 $1,000,000 $1,200,000

3.5.1 Industry Advantage


One Love plans to produce seedlings for other growers in the cannabis space thus positioning itself as a
major supplier to the emerging cannabis sector.

Mass Cultivation of Cannabis Seedlings Sold Wholesale to the Trade

18 ONE LOVE COLOMBIA BUSINESS PLAN


3.6 CBD OIL EXTRACTS
This sector has an advantage in that CBD oil is used to produce a wide variety of products from face cream
and shampoo to pet food. One Love Colombia will produce CBD oil extracted from its plants. CBD oil is
highly sought after, and the competitive pricing offered by growing in Colombia will ensure that the
Company becomes a significant player in the cannabis oil space.

A trajectory of the number of hectares under cultivation and the number of litres of CBD oil produced per
cycle, results in the product output and revenues as shown in the five-year chart below:

4 Month Growing Cycle


Year 1 Year 2 Year 3 Year 4 Year 5
Hectares 2 3 4 5 5
Cycles/Year 4 4 4 4 4
Liters Produced/Cycle 160 160 160 160 160
Price/Liter $3,000 $3,000 $3,000 $3,000 $3,000

4 Months/ Revenues $960,000 $1,440,000 $1,920,000 $2,400,000 $2,400,000


Total Revenues/Year $3,840,000 $5,760,000 $7,680,000 $9,600,000 $9,600,000

One Love Colombia will be known for its:

◾ Premium Quality
◾ Brand and Premium products
◾ Product innovation
◾ Competitive costs / prices
◾ Wide distribution
◾ Directed brands
◾ Strategic alliances
◾ R & D product development + research
◾ Collaboration with academic institutions
◾ Ability to serve large niche markets alike

ONE LOVE COLOMBIA BUSINESS PLAN 19


20 ONE LOVE COLOMBIA BUSINESS PLAN
ONE LOVE COLOMBIA BUSINESS PLAN 21
4 OPERATIONAL STRATEGY

To produce all cannabis under safe


phytosanitary conditions in compliance with
the technical conditions being established by
international and Colombian regulations.
4.1 PHASE ONE
◾ Develop the land with green houses
◾ Build and install fencing, security and lighting
◾ Build green houses for to produce seedlings (2.800 m2)
◾ Build offices, warehouse, laboratory
◾ Buy equipment and supplies for to cultivate
◾ Buy extraction equipment
◾ Support 10 months of salaries
◾ Support 10 months to launch operations
◾ Improvement of 2 Greenhouses (property of the local farmers)

Developing for the pharmaceutical industry includes


environmentally sustainable crops based on organic
and clean production.
4.2 ENVIRONMENTAL PROFILE
One Love Colombia is committed to cultivate and produce the best products and promote a sustainable
environment in all its cultivation and production areas. The Company is dedicated to ensuring that all its
cultivation and laboratory processes will have high environmental standards, and be free of contaminants.
A training program for farmers will be introduced to teach sustainable and profitable farming methods.

The Company plans to implement a waste reduction plan that delivers at least a 30 % reduction in the
generated waste. The corporate philosophy is to maintain a policy of continuous improvement focused
on waste reduction and maintaining a sustainable environment for future generations.

22 ONE LOVE COLOMBIA BUSINESS PLAN


4.3 BUSINESS PROCESS MANAGEMENT (BPM)
One Love Colombia plans to become a first choice when it comes to medical cannabis crops. The
Company's production standards have been configured under the requirements established by FDA and
CSA & Health Canada, which have strict requirements for laboratory and security systems. Likewise, their
pharmaceutical strategic partners have the infrastructure and adequate experience to develop any type
of medical product for human consumption. Having national certifications in good Business Process
Management (BPM) laboratory methods and allows the Company to give an extra guarantee offering safe
products to its customers.

4.4 CURRENT GOOD MANUFACTURING PRACTICES (CGMP)


GMP stands for Good Manufacturing Practices, and refers to a system of manufacturing that guarantees
reproducibility of product quality to set specifications. cGMP is Current Good Manufacturing Practices and
refers to compliance with current regulations. One Love will manage its operations with high standards in
order to achieve status as a medical cannabis provider.

4.5 CBD PROCESSING


One Love Colombia will use Best-in-Class extraction equipment to produce CBD oil. CBD oil is Cannabidiol
or Cannabis Oil, a high demand product use in other intake methods, such as smoking or vaporizing, as
well as nutraceuticals, pharmaceuticals, health care, personal care, pet food, edibles and even beer. The
demand for this product dwarfs the demand for THC or flower to smoke. One Love Colombia's production
systems help optimize the CBD extraction process.

Lab technicians will be trained in best practices to medical standards.

ONE LOVE COLOMBIA BUSINESS PLAN 23


4.6 CROP MANAGEMENT
Crops are located mainly in the Andean Region of Colombia, where they are handled under closed
structures equipped with modem technology which allows for the control and optimization of the best
environmental conditions. The Company closely monitors the quality of water, irrigation, physical
characteristics - chemical and organoleptic. Management also maintains the ambient temperature and
relative humidity ideals that offers the best conditions for the development of plants.

Additionally, the region offers the opportunity to develop crops in different climatic zones of the
Colombian geography, from the Andes to the Caribbean region; where plants receive sunlight for 12.5
hours day and the fresh water from the mountains. Plant geneticists will provide ongoing monitoring and
audits of the cultivation process for optimum yield and quality.

4.7 CULTIVATION AREAS


The production system of the seedlings is based on a corporate strategic alliance between farmers in each
region through their peasant association with the company; thus positioning One Love Colombia as a
model of stable, and profitable business for all parties.

As an example, through a partner, Reeferman GENETICS CANADA, the Company brings genetics and
lessons for the cultivation and development of new and better strains, permanent research and
continuous improvement. This allows the farmer to have an excellent source of genetic knowledge as well
as ensuring more and better crops are transferred into higher profits for him and his family.

Small farmers own their land and as a supplier, they are required to comply with the standards of ONE
LOVE COLOMBIA SAS. This system bases it's success on the technical and technological support that the
Company brings to its partners and suppliers.

4.8 LICENSE AND LEGAL STATUS


Licenses with the government in Colombia to date are one active licence and two more pending:

◾ Non-Psychoactive Cannabis Licence: Active


◾ Derivative products manufacture licence: In process
◾ Seed Certification: In process Certification – 10 strains certified.

See Appendix for more on Licenses.

24 ONE LOVE COLOMBIA BUSINESS PLAN


5 FUTURE PLANS AND PROJECTS

One Love Colombia has ambitious plans for growth that expand beyond the borders of Colombia and
beyond cultivation. These plans include:

5.1 CBD BEER


One Love plans on brewing a beer in Ecuador and Colombia with plans for the same craft brewery brand
in both countries. We are going to do a collaboration and are currently in negotiations with a University
in Ecuador. The first beer will be a CBD (cannabidiol) India Pale Ale with other varieties planned for the
future.

The Company has strong associations in the craft beer sector in Latin America and has a team member
that is the Head Brewer at Cerveceria El Artesano, a craft brewer in Ecuador with Knowledge of large-scale
commercial plant cultivation in addition to his brewing knowledge.
See section 2.3.11

Examples of Craft Beer from Latin America

ONE LOVE COLOMBIA BUSINESS PLAN 25


5.2 RESEARCH PROJECTS
One Love Colombia has signed a Letter of Intent with the Antonio Nariño University in Colombia wherein
the two parties are committed to a providing the business alliance with technological and scientific
infrastructure and capital for the purpose of developing research projects of the derivatives scopes and
medicinal benefits of CBD.

5.3 CBD PRODUCTS – BRANDED AND WHITE LABEL


The Company plans to produce CBD oil that can be made into health and beauty products. For example,
the Company plans to make capsules in a lab environment that offer health benefits to users. These СBD,
Cannabis, Hemp and Herbal oil capsules will have a shell of algae material agar-agar, both vegan and
organic.

26 ONE LOVE COLOMBIA BUSINESS PLAN


One Love Colombia plans to introduce products in the Health, Beauty and Consumables sectors that will
be developed according to cGMP standards and that can be exported globally. The Company will produce
under its own brand and white label as a wholesale manufacturer to the trade.

Vegan and Organic Health Products

Health Beauty Consumables

▪ CBD CAPSULES ▪ CBD SOAP ▪ CBD EDIBLES


▪ CBD MUSCLE GEL ▪ CBD CREAM ▪ CANDY CBD
▪ CBD FOR PETS ▪ CBD BATH BOMBS ▪ CBD CHOCOLATE
▪ CBD SALTWATER ▪ CBD TATTOO RECOVERY ▪ CBD CARAMELS
▪ CBD TABLETS ▪ CBD HAIR CAIR ▪ CBD HONEY
▪ CBD TERPENES ▪ CBD LIP BALM ▪ CBD SYRUP
▪ CBD TERPS ISOLATE ▪ DAILY SERUM CBD ▪ CBD TEA
▪ CBD OILS ▪ CBD LOTION ▪ CBD COFFEE
▪ CBD ORGANIC ▪ CBD SPRAY ▪ CBD DRINKABLES
▪ CBD for SLEEP ▪ CBD DABS
▪ CBD VAPE OIL ▪ CBD WAXES
▪ CBD WRAPS ▪ CBD SHATTER
▪ CBD FOR PARKINSON'S ▪ CBD WATER
▪ CBD ORAL SPRAY ▪ CBD PIXIE STICKS
▪ CBD PROTEIN POWDER ▪ CBD DROPS
▪ CBD SPORTS ▪ CBD CRYSTALS
▪ CBD OILS FOR EPILEPSY ▪ CBD GUMMIES
▪ CBD BALMS ▪ CBD VAPORIZERS

ONE LOVE COLOMBIA BUSINESS PLAN 27


5.4 CULTIVATION IN CANADA
One Love Colombia has opportunities in countries other than Colombia, in which to cultivate cannabis and
produce the leading strains for which they are known. One opportunity is on Vancouver Island and it has
a 90,000 square foot indoor in production and 150 acres. As One Love is Canadian owned, this will give
the Company a footprint in Canada as well as Colombia.

5.4.1 Key Metrics of the Canadian Property

▪ 159 acres hemp farm


▪ 2 houses
▪ 80,000 square feet indoor grow
▪ Can grow high CBD seeds at 10,000,000 million per hectare on 20 hectares in the first year. (With
a hemp license)
▪ Upgrade power for indoor 750,000
▪ First year should be able to pay for majority of property
▪ Have people on Island that are capable growers
▪ Could be good Canadian seed production and craft cannabis base. And import hub for One Love's
Colombia products

5.5 ECUADOR
Future plans for One Love include strategic acquisitions of land in Ecuador. This is another region with rich
soil for agriculture, a good growing season and low costs for large cultivation projects. The Company is
already actively seeking suitable acreage for its venture in Ecuador.

28 ONE LOVE COLOMBIA BUSINESS PLAN


6 MARKET RESEARCH AND ANALYSIS

6.1 GLOBAL CANNABIS MARKET

LEGAL MARIJUANA MARKET WORTH $500


BILLION BY 2025.
One Love Colombia seeks to capitalize on the opportunities presented by the growing global, legal
cannabis market that is expected to reach USD $500 billion by the end of 20253.

Cannabis has mass consumer appeal around the world. Millions of people use cannabis recreationally.
Millions more use it medicinally. In aggregate, cannabis is recognized as a form of therapy or medicine for
more than 50 medical conditions, including Alzheimer’s disease, anorexia, arthritis, cancer, chronic pain,
epilepsy and post-traumatic stress disorder.

Similar to the alcohol and pharmaceutical markets, the author of this business plan believes that the total
addressable consumer market for cannabis consists of a significant portion of the global adult population.

Cannabis is the most widely cultivated, produced, trafficked and consumed drug worldwide, according to
the UNODC4. The UNODC recently estimated that 183 million people globally between the ages of 15 and
64, or more than 4% of this age group, consume cannabis.

4.2 Cannabis, Alcohol and Tobacco Growth Comparison


In the longer term, the scale of a mature cannabis market is expected to be on the order of alcohol and
tobacco sales, which are globally $1.3 trillion and $680 billion, respectively.

Alcohol Tobacco Cannabis


$1.3 $680 $500
Trillion Billion Billion

3 Ackrell Capital 2018 Cannabis Investment Report https://www.ackrell.com/cannabis


4
United Nations Office on Drugs and Crime.

ONE LOVE COLOMBIA BUSINESS PLAN 29


6.1.1 Global Distribution and First Mover Advantage
One Love Colombia is among the first to commercially grow cannabis for seeds, seedlings and CBD
production in Colombia and the new emerging global market. To date, only one company in Colombia has
received an export agreement with Canada. One Love will actively seek export licenses to legal countries
as it expands its commercial reach. The cost comparisons and ideal agricultural climate of Colombia makes
it an attractive place to grow cannabis legally and profitably for global distribution.

6.2 GLOBAL CANNABIS LEGAL STATUS


To date, Cannabis is legal in only 5 countries globally. One Love Colombia is in the vanguard of a new
emerging commodity as cannabis emerges from previous black-market status to become as accepted and
widely consumed as alcohol in the near future. Additionally, Cannabis has medical benefits and research
is being undertaken in many labs to isolate active medical ingredients.

6.2.1 World Health Organization (WHO)


Global health experts at the United Nations are recommending that marijuana and its key components be
formally rescheduled under international drug treaties. The World Health Organization (WHO) is calling
for whole-plant marijuana, as well as cannabis resin, to be removed from Schedule IV—the most
restrictive category of a 1961 drug convention signed by countries from around the world.

30 ONE LOVE COLOMBIA BUSINESS PLAN


The WHO also wants delta-9-tetrahydrocannabinol (THC) and its isomers to be completely removed from
a separate 1971 drug treaty and instead added to Schedule I of the 1961 convention, according to a WHO
document that has not yet been formally released but was circulated by cannabis reform advocates.

“The placement of cannabis in the 1961 treaty, in the absence of scientific evidence, was a terrible
injustice," said Michael Krawitz, a U.S. Air Force veteran and legalization advocate who has pushed for
international reforms. "Today the World Health Organization has gone a long way towards setting the
record straight. "It is time for us all to support the World Health Organization’s recommendations and
ensure politics don't trump science."

6.3 COLOMBIAN COMPETITIVE ADVANTAGES IN CANNABIS PRODUCTION


6.3.1 Legality
Colombia has legalized the cultivation, sale and export of cannabis and Canada has already been chosen
as one of its first export markets. To put this into perspective, legal cannabis could be worth more than
the country’s flower, coffee, coal and banana exports—all four of which are among Colombia’s top export
products—combined. These markets come as a part of a national shift for Colombia to regulate its illegal
drug trade and bring global prominence to one of its major agricultural products.

6.3.2 Quota
The International Narcotics Control Board (INBC), the United Nations-affiliated regulatory body for drugs,
recently awarded Colombia with 40.5 tons of cannabis-per-year quota—the highest medical cannabis
quota in the world. This represents about 44 percent of the global medical cannabis quota. One Love
Colombia will use this to the advantage of its product cultivation and its shareholders.

6.3.3 Climate
Colombia’s climate and geography give it an advantage over just about every other medical cannabis
producing country in the world. As one of 13 countries located directly on the equatorial line, the sun rises
and sets at virtually the same time every day, 365 days a year. This creates a natural 12-hour-daylight and
12-hour-darkness cycle that’s necessary for the cannabis plant when it enters its flowering stage.

6.3.4 Natural Resources


Rich in natural resources, Colombia is the second-most biodiverse country in the world, after Brazil. With
nearly 50,000 cubic meters of water available per person each year, Colombia is technically one of the
most water-rich countries in the world. Water availability in Colombia is six times that of the global
average and there is a long and established framework for water resources management in Colombia.
The Environment Ministry and up to 33 Regional Authorities (the first one was created in 1954), are in
charge of water resources management and policies at the national and regional and watershed level,
respectively. Other sectoral ministries are in charge of water demand for energy, water supply and
sanitation and water for irrigation.

6.3.5 Agricultural History


Colombia has a long agricultural history and this sector provides a fifth of Colombia's jobs. Of the total
land area of Colombia (113,891,400 hectares), an estimated 27 percent is agricultural land, most of it in
elevated regions of the temperate zone. Colombia's most important agricultural products are cattle,

ONE LOVE COLOMBIA BUSINESS PLAN 31


accounting for 45 percent of agricultural output; coffee, 9.5 percent; fruits, 15.2 percent (including
plantains, 5.2 percent; and bananas, 2.8 percent); rice, 4.9 percent; flowers, 4.2 percent; vegetables, 4.1
percent; and other agricultural products, 17.1 percent.

6.3.6 Cost of Cannabis Compared


The cost of cultivation in Colombia is approximately 10 to 15% of the cost of cultivation in Canada, offering
a strong competitive advantage to One Love and its investors. The graphics below show a comparison of
the cost of a gram of cannabis in Canada is from $6.75 to $14.45, while the cost in Colombia is $2.20.

Cost of 1 Gram of Cannabis in Canada is from $6.75 to $14.45

Source: Statistics Canada April 18, 2019, Map: Kendra Mangione

Cost of 1 Gram of Cannabis in the Lowest Cost Areas5

# City Country Price per gram

1 Quito Ecuador $1.34

2 Bogota Colombia $2.2

3 Asuncion Paraguay $2.22

5 http://weedindex.io/

32 ONE LOVE COLOMBIA BUSINESS PLAN


6.4 SUMMARY OF COLOMBIAN COMPETITIVE ADVANTAGES IN THE CANNABIS
SECTOR
Even with Canada’s full-recreational system that arrived last year, South America has a large cost
advantage and stands to become a dominant player in the cannabis space on a global scale. Through its
cultivation of special seed strains and seedlings as well as the fabrication of CBD, Once Love can take its
place as a dominant player in the Cannabis sector.

ONE LOVE COLOMBIA BUSINESS PLAN 33


6.5 CANADIAN MARKET
6.5.1 Supply Shortage in Canada
The Canadian legal market was underestimated at $1.2 billion and is currently plagued by massive supply
shortages and a lack of distribution infrastructure. The shortage of legal cannabis products in Canada is
expected to last for up to 5 years. Critical errors were made by the first wave of large Licenced Producers
(LP’s), namely the retrofitting of existing facilities and the building of overly large grow areas, combined
with underestimating the stringent humidity control requirements. These issues have caused high levels
of crop failure or a lower quality product. Due to a limited number of cannabis professionals, new facilities
were built using experience from other industries where the unique requirements for cannabis cultivation
were not understood.

The total cannabis market in Canada, including medical, illegal, and legal recreational products, is
expected to generate up to $7.17 billion in total sales in 2019. Legal sales are expected to contribute more
than half of this total, up to $4.34 billion, in the first year. Current and likely consumers expect to pay
slightly more for legal products, with the former saying they’re willing to pay 10 percent more .

The legal recreational cannabis market is expected to generate sales of up to $4.34 billion in 2019, the
medical cannabis market will account for between $770 million and $1.79 billion, and the illegal market
will generate a further $510 million to $1.04 billion.

The majority of legal recreational cannabis sold will be to Canadians who are already consuming cannabis.
High product quality and integrity (as affirmed by quality testing) as well as a range of competitive price
points will be needed to persuade current consumers to move their purchases over to legal sources.
Delivering a superior customer experience will be of vital importance.

6.5.2 Canadian Buying Preferences

34 ONE LOVE COLOMBIA BUSINESS PLAN


6.5.3 Canada Recreational Cannabis Market Size

6.6 CBD MARKET

Cannabidiol (CBD) Is the Marijuana Industry's Money Maker


According to a new estimate from cannabis industry analysts the Brightfield Group, the hemp-CBD market
alone could hit $22 billion by 2022 and 80% of cannabis consumers use CBD Products at least once per
week6.
Cannabidiol (CBD) is one of the hundreds of cannabinoids found in the Cannabis sativa plant. CBD oil can
be derived from two different species of cannabinoids: marijuana and hemp. Hemp-based CBD oil
products have a lower delta-9 tetrahydrocannabinol (THC) concentration, whereas marijuana-derived
CBD oil products have a relatively high concentration of THC. One Love Colombia plans to produce CBD
oil in Colombia that can be sold globally in legal countries and used in research for medical applications.
MARIJUANA EFFECTIVENESS AMONG CBD USERS
Marijuana-derived CBD-only Products Hemp-derived CBD Products
CBD-dominant Products

Very Effective
Extremely Effective
Moderately Effective
Slightly Effective
Not Effective

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

6 Brightfield Group, 2018.

ONE LOVE COLOMBIA BUSINESS PLAN 35


6.6.1 Aggregate Demand for CBD
There are approximately 837 million people globally who are, in one way or another, affected by medical
conditions potentially treatable by CBD. In the United States alone, it is estimated that 133 million people,
or 45% of the population, have at least one chronic condition. The aggregate demand for CBD, and the
existing opportunity it creates for companies such as One Love Colombia, is significant.

6.6.2 Growth of Concentrates


Concentrates, a broad and booming category of cannabis products, offer concentrated THC and CBD in
different forms — everything from pliable nuggets of hash that people can smoke in bowls, to brittle
nuggets of “shatter” consumed through dab rigs, to battery-operated vape pens filled with THC oil.
Concentrates is the fastest-growing cannabis category, far surpassing flower, edibles, and topicals in terms
of sales expansion.

CBD concentrates are used in everything from face creams to nutraceuticals to pet food. Early stage
agreements have been made between cannabis companies and beer and alcohol giants.

36 ONE LOVE COLOMBIA BUSINESS PLAN


6.6.3 Benefits of CBD

6.7 CROP VALUE


Cannabis yield has a value of $47.7 million per square kilometer, while tomatoes weighs in at $1.415
million and grapes at $.625 million per square kilometer . From an absolute value perspective, cannabis
can be said to be the world’s most valuable cash crop per square kilometer of production.

Other Cannabis Companies with Investments in Colombia include Khiron Life Sciences Corp KHRNF,
Pharmacielo Ltd (CVE: PCLO), Aphria Inc APHA 0.13%, Wayland Group Corp MRRCF, Chemesis
International Inc CADMF, Cronos Group Inc CRON, Canopy Growth Corp CGC 0.06% and Aurora Cannabis
Inc ACB 0.06%, Orion Nutraceutical ORI. All stand to benefit from the commencement of cannabis exports
to Canada.

ONE LOVE COLOMBIA BUSINESS PLAN 37


6.8 A YEAR OF MILESTONE EVENTS
2018 proved to be a pivotal year in the legal cannabis sector.

FEBRUARY 26, 2018


Cronos Group (NASDAQ: CRON) became the first pot stock to up-list to the Nasdaq.7
MAY 14, 2018
Bank of Montreal co-led a round of cannabis equity financing with an offering of $136 million.8
MAY 24, 2018
Canopy Growth (NYSE: CGC) becomes the first cannabis company to join the NYSE.9
JUNE 25, 2018
The first cannabis-derived drug from GW Pharmaceuticals (NASDAQ:GWPH) earned FDA approval.10
JULY 19, 2018
Tilray makes history with its Nasdaq IPO,11 becoming the first cannabis company to debut on Nasdaq
Inc.’s Global Select Market exchange.
JULY 25, 2018
Aurora Cannabis (NYSE: ACB) completed the largest marijuana buyout in history, acquiring CanniMed
Therapeutics for $852 million.12
OCTOBER 17, 2018
Canada legalized recreational cannabis, the first G7 nation to do so.13
DECEMBER 07, 2018
Altria Group (NYSE: MO), owner of Marlboro, invests $2.4 billion in Cronos Group for a 45% stake.14
DECEMBER 19, 2018
Anheuser-Busch InBev entered into a partnership with Tilray to research beverages infused with
cannabis with a joint investment of $100 million.15
DECEMBER 27, 2018
US legalized industrial hemp prompting American CBD market projections of $22 billion by 2022.16

7 “Press Release: Cronos Group to Begin Trading on Nasdaq Stock Exchange.” Cronos Group Inc., 2018.
8 “Bank of Montreal Goes All-In on Pot Deals.” Bloomberg, 2018.
9 “Canopy Growth kicks off first day on the New York Stock Exchange.” Ottawa Citizen, 2018.
10 “Press Release: EPIDIOLEX® (cannabidiol) Oral Solution – the First FDA-approved Plant-derived Cannabinoid Medicine – Now Available

by Prescription in the U.S.” GW Pharmaceuticals, 2018.


11 “Tilray joins Nasdaq in first US cannabis IPO.” CNBC, 2018.
12 “Aurora closes on MedReleaf in largest cannabis takeover yet.” The Financial Post, 2018.
13 “Cannabis in Canada.” Government of Canada, 2019.
14 “Philip Morris parent invests $2.4 billion in Cronos cannabis.” Biz Journals, 2018.
15 “AB InBev Joins Pot Industry with Tilray Beverage Partnership.” Bloomberg, 2018.

16 “Hemp is now legal. That’s huge for the CBD industry.” Vox, 2018.

38 ONE LOVE COLOMBIA BUSINESS PLAN


7 FINANCIAL PROFORMAS

7.1 CAPITAL REQUIREMENTS & USE OF PROCEEDS

One Love Columbia Capital Requirement Summary


Total Capital Requirement Year 1 Year 2 Year 3
Financing Structure Building & Equipment $ 8,521,014 $ - $ -
Phase 1 Financing $10,000,000 Advertising Costs $ - $ - $ -
Phase 2 Financing $0 Marketing & Admin $ 1,478,986 $ - $ -
Phase 3 Financing $0 Total Capital Requirement $ 10,000,000 $ - $ -
Phase 4 Financing $0
Phase 5 Financing $0
Financial Highlights
Fiscal Year Ends: 31-Dec USE OF PROCEEDS
Tax rate 32.00%

Capital Requirement
Year 1
Building & Equipment Marketing &
Admin
Infrastructre & Equipment $ 216,473 $1,478,986
Offices & Cellar $ 366,705
Production Costs/Sowing Cycle/CBD $ 1,115,108
Extraction Costs/Sowing Cycle/CBD $ 1,472,727
Land/Seeds $ 150,000
Seedlings Greenhouse $ 200,000
Buildout Cost/Seeds $ 5,000,000
Subtotal $ 8,521,014
Building &
Marketing & Admin
Equipment
Operating Costs $ 321,873
$8,521,014
Company Staff Costs $ 427,636
Licenses $ 54,370
Financing for Villagers $ 152,422
Marketing 522,686
Subtotal $ 1,478,986
Total $ 10,000,000

ONE LOVE COLOMBIA BUSINESS PLAN | 39


7.2 CASH FLOW
Cash Flow Statement
Year 1 Year 2 Year 3 Year 4 Year 5
Operating Activities
Net Income $ 9,077,251 $ 17,913,668 $ 24,887,317 $ 31,885,718 $ 38,750,998
Depreciation $ 568,068 $ 568,068 $ 568,068 $ 568,068 $ 568,068
Amortization $ - $ - $ - $ - $ -
Subtotal $ 9,645,318 $ 18,481,736 $ 25,455,385 $ 32,453,786 $ 39,319,066
Accounts Receivables $ (957,000) $ (1,818,000) $ (2,424,000) $ (3,030,000) $ (3,540,000)
Accounts Payables $ 100,800 $ 225,901 $ 301,201 $ 376,502 $ 427,502
Increase in Inventory $ - $ - $ - $ - $ -
Other Operating $ (1,478,986) $ - $ - $ - $ -
Subtotal $ (2,335,186) $ (1,592,099) $ (2,122,799) $ (2,653,498) $ (3,112,498)
Operating Cash flow $ 7,310,132 $ 16,889,637 $ 23,332,586 $ 29,800,287 $ 36,206,567
Capital Expenditures $ (8,521,014) $ - $ - $ - $ -
Other Assets Spending $ - $ - $ - $ - $ -
Cash after Investing $ (8,521,014) $ - $ - $ - $ -
Other Long-Term Debt $ - $ - $ - $ - $ -
Dividends Paid $ - $ - $ - $ - $ -
Increases in APIC $ - $ - $ - $ - $ -
Capital Stock $ 10,000,000 $ - $ - $ - $ -
Other Financing $ - $ - $ - $ - $ -
Cash after Financing $ 10,000,000 $ - $ - $ - $ -
Beginning Cash $ - $ 8,789,119 $ 25,678,756 $ 49,011,342 $ 78,811,630
Cash Flow $ 8,789,119 $ 16,889,637 $ 23,332,586 $ 29,800,287 $ 36,206,567
Year End Cash $ 8,789,119 $ 25,678,756 $ 49,011,342 $ 78,811,630 $ 115,018,197

40 | ONE LOVE COLOMBIA BUSINESS PLAN


7.3 REVENUE SUMMARY

Revenue Summary
Year 1 Year 2 Year 3 Year 4 Year 5
Total Revenues $ 19,140,000 $ 37,450,800 $ 50,419,200 $ 63,024,000 $ 74,340,000
Total COGS $ 3,207,027 $ 6,021,081 $ 7,228,107 $ 8,035,134 $ 8,235,134
Operating Expenses $ 2,016,007 $ 4,518,022 $ 6,024,029 $ 7,530,036 $ 8,550,036
Operating Income $ 13,916,966 $ 26,911,698 $ 37,167,064 $ 47,458,829 $ 57,554,829

ONE LOVE COLOMBIA BUSINESS PLAN | 41


7.4 INCOME STATEMENT
Income Statement
Year 1 Year 2 Year 3 Year 4 Year 5
Revenues
Total Revenues/CBD $ 3,840,000 $ 5,760,000 $ 7,680,000 $ 9,600,000 $ 9,600,000
Total Revenues/Seeds $ 15,000,000 $ 30,000,000 $ 40,000,000 $ 50,000,000 $ 60,000,000
Total Revenues/ Seedlings $ 300,000 $ 600,000 $ 800,000 $ 1,000,000 $ 1,200,000
Total Revenues $ 19,140,000 $ 37,450,800 $ 50,419,200 $ 63,024,000 $ 74,340,000
Cultivation Costs/CBD $ 89,209 $ 267,626 $ 356,835 $ 446,043 $ 446,043
Extraction Costs /CBD $ 117,818 $ 353,455 $ 471,273 $ 589,091 $ 589,091
Total Costs/Seeds/Seedlings $ 3,000,000 $ 5,400,000 $ 6,400,000 $ 7,000,000 $ 7,200,000
Total Cost of Goods Sold $ 3,207,027 $ 6,021,081 $ 7,228,107 $ 8,035,134 $ 8,235,134
Gross Profit $ 15,932,973 $ 31,429,719 $ 43,191,093 $ 54,988,866 $ 66,104,866
Operational Costs/CBD $ 134,880 $ 404,640 $ 539,520 $ 674,400 $ 674,400
Staff Salaries/CBD $ 351,127 $ 1,053,382 $ 1,404,509 $ 1,755,636 $ 1,755,636
Royalty Fees/Seeds $ 1,530,000 $ 3,060,000 $ 4,080,000 $ 5,100,000 $ 6,120,000
Operating Expenses $ 2,016,007 $ 4,518,022 $ 6,024,029 $ 7,530,036 $ 8,550,036
Operating Income $ 13,916,966 $ 26,911,698 $ 37,167,064 $ 47,458,829 $ 57,554,829
Depreciation $ 568,068 $ 568,068 $ 568,068 $ 568,068 $ 568,068
Pre-tax Income $ 13,348,898 $ 26,343,630 $ 36,598,996 $ 46,890,762 $ 56,986,762
Income Tax $ 4,271,647 $ 8,429,962 $ 11,711,679 $ 15,005,044 $ 18,235,764
Net Income $ 9,077,251 $ 17,913,668 $ 24,887,317 $ 31,885,718 $ 38,750,998

7.5 GROSS REVENUES & NET INCOME

42 | ONE LOVE COLOMBIA BUSINESS PLAN


7.6 RETURN ON INVESTMENT
Profitability and ROI
Year 1 Year 2 Year 3 Year 4 Year 5
Revenue $ 19,140,000 $ 37,450,800 $ 50,419,200 $ 63,024,000 $ 74,340,000
Gross Margin $ 15,932,973 $ 31,429,719 $ 43,191,093 $ 54,988,866 $ 66,104,866
Gross Margin (%) 83% 84% 86% 87% 89%
Net Income $ 9,077,251 $ 17,913,668 $ 24,887,317 $ 31,885,718 $ 38,750,998
Net Profit Margin (%) 47% 48% 49% 51% 52%
Investment $ 10,000,000
5-Year ROI 91% 179% 249% 319% 388%
5-Year Annualized ROI 65%

7.7 BREAK-EVEN ANALYSIS


Benchmarks & Break Even Analysis
Year 1 Year 2 Year 3 Year 4 Year 5 Average
Revenues $ 19,140,000 $ 37,450,800 $ 50,419,200 $ 63,024,000 $ 74,340,000 $ 48,874,800
COGS $ 3,207,027 $ 6,021,081 $ 7,228,107 $ 8,035,134 $ 8,235,134 $ 6,545,297
Fixed Costs $ 2,016,007 $ 4,518,022 $ 6,024,029 $ 7,530,036 $ 8,550,036 $ 5,727,626
EBIT $ 13,916,966 $ 26,911,698 $ 37,167,064 $ 47,458,829 $ 57,554,829 $ 36,601,877
BE % 12.7% 14.4% 13.9% 13.7% 12.9% 13.5%
Break Even $ 2,421,794 $ 5,383,552 $ 7,032,161 $ 8,630,347 $ 9,615,173 $ 6,613,274

B R E A K E VE N A N ALY SI S
$74,340,000

Revenues Break Even


$63,024,000
$50,419,200
$37,450,800
$19,140,000

$9,615,173
$8,630,347
$7,032,161
$5,383,552
$2,421,794

YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5

ONE LOVE COLOMBIA BUSINESS PLAN | 43


7.8 BALANCE SHEET

Balance Sheet
Year 1 Year 2 Year 3 Year 4 Year 5
Cash $ 8,789,119 $ 25,678,756 $ 49,011,342 $ 78,811,630 $ 115,018,197
Accounts Receivable $ 957,000 $ 2,775,000 $ 5,199,000 $ 8,229,000 $ 11,769,000
Inventory $ - $ - $ - $ - $ -
Other Operating $ 1,478,986 $ 1,478,986 $ 1,478,986 $ 1,478,986 $ 1,478,986
Total Current Assets $ 11,225,105 $ 29,932,742 $ 55,689,329 $ 88,519,616 $ 128,266,184
Capital Expenditures $ 8,521,014 $ 8,521,014 $ 8,521,014 $ 8,521,014 $ 8,521,014
Depreciation $ 568,068 $ 1,136,135 $ 1,704,203 $ 2,272,270 $ 2,840,338
Total Fixed Assets $ 7,952,946 $ 7,384,879 $ 6,816,811 $ 6,248,743 $ 5,680,676
Other Assets $ - $ - $ - $ - $ -
Amortization $ - $ - $ - $ - $ -
Total Intangible Assets $ - $ - $ - $ - $ -
Total Assets $ 19,178,051 $ 37,317,621 $ 62,506,140 $ 94,768,359 $ 133,946,859
Accounts Payable $ 100,800 $ 326,701 $ 627,903 $ 1,004,405 $ 1,431,907
Total Current Liabilities $ 100,800 $ 326,701 $ 627,903 $ 1,004,405 $ 1,431,907
Long-Term Liabilities $ - $ - $ - $ - $ -
Total Long-Term Liabilities $ - $ - $ - $ - $ -
Total Liabilities $ 100,800 $ 326,701 $ 627,903 $ 1,004,405 $ 1,431,907
Shareholders' Equity
APIC $ - $ - $ - $ - $ -
Capital Stock $ 10,000,000 $ 10,000,000 $ 10,000,000 $ 10,000,000 $ 10,000,000
Other Financing $ - $ - $ - $ - $ -
Retained Earnings $ 9,077,251 $ 26,990,919 $ 51,878,237 $ 83,763,955 $ 122,514,953
Total Equity $ 19,077,251 $ 36,990,919 $ 61,878,237 $ 93,763,955 $ 132,514,953
Total Liability & Equity $ 19,178,051 $ 37,317,621 $ 62,506,140 $ 94,768,359 $ 133,946,859

44 | ONE LOVE COLOMBIA BUSINESS PLAN


7.9 RATIO ANALYSIS

Ratio Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Liquidity Ratios
Working Capital $ 11,124,305 $ 29,606,041 $ 55,061,426 $ 87,515,211 $ 126,834,277
Current Ratio 111.36 91.62 88.69 88.13 89.58
Profitability Ratios
Net Profit Margin 47.43% 47.83% 49.36% 50.59% 52.13%
Return On Assets (ROA) 47.33% 48.00% 39.82% 33.65% 28.93%
Operating Income Margin 72.71% 71.86% 73.72% 75.30% 77.42%
Return On Equity 47.58% 48.43% 40.22% 34.01% 29.24%
Gross Profit Margin 83.24% 83.92% 85.66% 87.25% 88.92%
Financial Leverage Ratios
Debts To Assets 0.53% 0.88% 1.00% 1.06% 1.07%
Capitalization 0.53% 0.88% 1.00% 1.06% 1.07%
Debt To Equity 0.53% 0.88% 1.01% 1.07% 1.08%
Debt To Working Capital 0.91% 1.10% 1.14% 1.15% 1.13%
Efficiency Ratios
Cash Turnover 2.18 1.46 1.03 0.80 0.65
Sales To Assets 1.00 1.00 0.81 0.67 0.55
Fixed Asset Turnover 2.25 4.40 5.92 7.40 8.72

7.10 NPV / VRR


Year 1 Year 2 Year 3 Year 4 Year 5
Initial $10,000,0
Investment 00
- $8,789,11 $25,678,7 $49,011, $78,811, $115,018,
Cashflow $10,000,000 9 56 342 630 197
Present $7,990,10 $21,222,1 $36,822, $53,829, $71,417,2
Low Value 8 12 947 403 51
Present $8,138,07 $22,015,3 $38,906, $57,928, $78,279,4
Mid Value 3 94 784 901 52
Present $8,291,62 $22,854,0 $41,150, $62,426, $85,948,2
High Value 2 01 868 192 88

NPV - IRR - MIRR


One Love Columbia
Low Mid High
Discount
Rate 10% 8% 6%
$181,281, $195,268, $210,670,
NPV 822 603 971

Financing
Rate 5%
Reinvestme
nt Rate 4%
IRR 187.07%
MIRR 95.99%

ONE LOVE COLOMBIA BUSINESS PLAN | 45


7.11 SENSITIVITY ANALYSIS
Sensitivity Analysis 1 Sensitivity Analysis 2
Revenue 110% Revenue 100%
COGS 100% COGS 110%
Operating Expenses 100% Operating Expenses 110%

Revenue $ 21,054,000 Revenue $ 19,140,000


COGS $ 3,207,027 COGS $ 3,527,730
Operating Expenses $ 2,016,007 Operating Expenses $ 2,217,608
Operating Income $ 15,830,966 Operating Income $ 13,394,662

Operating Profit % 75.19% Operating Profit % 69.98%

Sensitivity Analysis 3 Sensitivity Analysis 4


Revenue 100% Revenue 110%
COGS 90% COGS 90%
Operating Expenses 90% Operating Expenses 90%

Revenue $ 19,140,000 Revenue $ 21,054,000


COGS $ 2,886,324 COGS $ 2,886,324
Operating Expenses $ 1,814,407 Operating Expenses $ 1,814,407
Operating Income $ 14,439,269 Operating Income $ 16,353,269

Operating Profit % 75.44% Operating Profit % 77.67%

46 | ONE LOVE COLOMBIA BUSINESS PLAN


8 APPENDIX
8.1 LICENSES
Page 1 – more on file with Company.

ONE LOVE COLOMBIA BUSINESS PLAN | 47


8.2 LICENSE AGREEMENT RE: STRAINS

48 | ONE LOVE COLOMBIA BUSINESS PLAN


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ONE LOVE COLOMBIA BUSINESS PLAN | 51


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52 | ONE LOVE COLOMBIA BUSINESS PLAN

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