One Love Executive Business Plan 4
One Love Executive Business Plan 4
One Love Executive Business Plan 4
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.
THIS PRESENTATION IS FOR INFORMATION PURPOSES ONLY AND DOES NOT CONSTITUTE AN OFFER TO
SELL OR SOLICITATION OF AN OFFER TO BUY ANY SECURITY.
Market Size Cannabis producers global market worth $500 billion by 2025.
$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
$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, 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.
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:
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.
1 https://investingnews.com/innspired/latin-american-hub-medical-marijuana-market-in-colombia/
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
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.
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.
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.
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.
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.
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.
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.
◾ 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).
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.
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
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
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:
◾ 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
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.
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.
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.
One Love Colombia has ambitious plans for growth that expand beyond the borders of Colombia and
beyond cultivation. These plans include:
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
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.
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.
“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."
6.3.2 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.
5 http://weedindex.io/
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.
Very Effective
Extremely Effective
Moderately Effective
Slightly Effective
Not Effective
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.
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.
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
16 “Hemp is now legal. That’s huge for the CBD industry.” Vox, 2018.
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
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
B R E A K E VE N A N ALY SI S
$74,340,000
$9,615,173
$8,630,347
$7,032,161
$5,383,552
$2,421,794
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
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
Financing
Rate 5%
Reinvestme
nt Rate 4%
IRR 187.07%
MIRR 95.99%