Modern industrial hemp technology - farm equipment & machines for harvesting and processing cannabis crops on a mass scale. Supply chain solutions for an emerging industry in Canada and around the world. www.cannasystems.ca

1. CannaSystems
From the farm to the factory - Industrial hemp supply-chain solutions
Supply-chain solutions for bio-material manufacturing
Modern farm machine technology for the global industrial hemp sector
“History doesn’t repeat itself but it often rhymes.” as Mark Twain
is often reputed to have said.
(I’ve found no compelling evidence that he actually uttered this nifty
aphorism. No matter — the line is too good to resist.)
We build modern machine technology to produce
hemp materials for green manufacturing
Bruce Ryan 416 939-6143 • bruceryan@cannasystems.ca • Private & ConfidentialCannaSystems Canada Inc.

2. The Industrial Hemp Value Chain
30%
FIBRE
CORE
70%
The cannabis species produces four
crop returns: Seed, Leaf, Fibre and
Core materials.
Vast majority of hemp crops in Canada
are grown for seed only - sold into the
health food markets. Hemp seed oil
can be further processed to make a
wide variety of bio-plastics.
Stalk is treated as farm waste.
Industrial hemp produces up to seven
tons of stalk material per acre.
30% of the hemp stalk is fibre: used in
a wide range of products from rope to
composites to textiles.
The balance (70%) is core “hurd”. This
is almost pure cellulose that can be
used for building materials, panels,
fuel-pellets, paper and other cellulose
manufacturing.
(CBD project is detailed at the end of
this document.)
Cannabis (hemp) can produce food, clothing, fuel & shelter from the same crop.
It is the only plant we cultivate with this amazing capability and potential.
With modern, proven and scalable technology, CannaSystems turns indus-
trial hemp fields into Fibre & Core bio-material product streams. It begins at the
hemp farm, creating value and revenue from the Farm to the Factory.
Currently the hemp stalk from seed production is treated as farm waste.
The existing Canadian seed-grain marketplace accounts for $77M in annual sales.
Modern machine technology is a critical to transform the existing situation.
Our initial focus is on the base technology: hemp farm equipment, process-
ing machinery and industrial applications. “Decortication” is the process of separat-
ing hemp stalk into raw fibre and core cellulose. Modern machine technology makes
this KEY task cost-effective, efficient and scalable, thus turning farm ‘waste’ into
valuable product streams. New decortication equipment & technology enables two
more revenue streams - fibre & core. These are used in a wide array of both consum-
er and industrial products. Essential supply-chain solutions are required to develop
the hemp industry.
We are focused on building some of the critical supply-chain components
required to expand the entire sector. This includes decorticator machine develop-
ment, as well as industrial supply contracts in the bio-composites sector and the
building materials sector.
There are existing bio-fibre and related hemp manufacturing companies
with industrial scale requirements. By combining new decorticators with modern
processing technology we enable our customers to meet existing demand. Our
strategy is to generate sales with industrial consumers of bio-materials.
• Proven, patented machinery to process hemp stalk on a commercial basis.
• Decorticator units are available for global marketplace.
• Five designs are being engineered including the new R-2 Decorticator.
• Sales of hemp technology decortication & harvesting equipment produce
fibre and core cellulose production for industrial customers.
Capturing CO2 via the industrial hemp supply chain effectively removes
carbon dioxide from the atmosphere at a rate of 1.6 tons of CO2 per ton of material
created. This is a green technology agriculture approach with significant benefits.
Carbon credits are a natural outcome of hemp carbon sequestration. This
presents an opportunity to acquire carbon credits directly or by proxy.
Seed
2
LEAF
CannaSystems Canada Inc.

3. Hempcrete Blocks Particle Board Roofing Shingles Cellulose PRODUCTS
The Industrial Hemp Value Chain
Key Factors:
• Multi-purpose cultivars
• Decortication technology
q
TEXTILES
Creating supply for downstream manufacturing systems
HEMP FARMING
PROCESSING
TECHNOLOGY
Seed
OIL
PRODUCTS
FOOD
Existing technology
HAMMER MILL systems
u
p
COMPOSITES
OLD
TECHNOLOGY
30%
70%
PROCESSING
TECHNOLOGY
CORE
FIBRE
PLASTICS
$22B social market: Deloitte Canada
$110B hemp industry market: U.N. projections
$500B bio-composities markets
$800B global textile & fibre markets
FUEL
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CannaSystems Canada Inc.

4. Hemp Processing Technology
Farm technology to harvest, process,
bale and store hemp bio-materials for
agricultural industrial markets:
• Dual-cutting field threshers
• Dual purpose grain harvesters
• Modern decorticator designs for
processing hemp stalk. Stationary and
portable units for scalable operations
Competitors in the hemp processing sector are large scale “hammer-mills”
which have dominated the market since the 1970’s. The hammer mill process re-
quires that the stalks be left in the fields for several weeks to begin breaking down
the stems (“retting”). This degrades the fibre quality and the core hurd (cellulose)
materials. Majority of the core material then becomes waste. European companies:
HempFlax, Crete and Tamafa build large-scale hammer-mills. Typical cost is $30M
for a complete line capable of producing 20 tons per hour. This is both a capital and
energy intensive process that requires a ‘strike-zone’ of at least 16,000 surrounding
acres of hemp crop to sustain the mill on an annual basis.
Modern engineering has developed new mechanical decortication systems
that provide superior results; increasing both yield and quality. Fresh green stalk or
dried bales (or even retted materials) can be processed without the time, energy or
waste involved with methods currently used.
Company strategy is to both develop and acquire hemp sector IP to ensure
the core machine technology critical for sector growth is readily available. This en-
ables volume production of bio-materials required for industrial supply chains. This
is essential to meeting industrial contracts on an annual basis. This core technolgy
will allow the sector to progress rapidly.
Hemp bio-fibres will eventually compete with sisal, jute, cotton and kenaf in
world markets. Advantages of hemp farming include increased revenues, lower costs
and extended operations beyond semi-tropical zones. This makes hemp farming a
logical choice for North America, Europe, South America, Africa and other regions.
Six new technologies coming into the market:
• CanFibre: Vancouver, BC - ribbon decorticator system – patented *Canada
• PowerZone Agricultural: - mobile decorticator project patent pending *US based
• Bastcore: Nebraska - proprietary system – patent pending *US based
• Hempco: Alberta - new system coming on-line this year. *Canada
• R-2 & E-9 Decorticator projects from CannaSystems *Canada
Five existing existing hammer-mill installations:
• Composites Innovation Centre: Winnipeg. Government sponsored research
• Emmerson Hemp: Alberta: Private company – limited production
• Vegreville Alberta - limited production
• Hemp Inc.: North Carolina: Public company – centralized production *US based
• PlainsHemp: Gilbert, Manitoba: Private company
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Off-the-shelf equipment:
• Mowers, swathers and windrowers.
• Round one ton “flax” balers
• Fibre cutting, combing & sorting
equipment
• Packing, baling & handling equipment
for finished raw materials
• Composite mat making machines
• Rope & yarn spinning equipment
CannaSystems Canada Inc.

5. “R-2” Decorticator Prototype
“E-9” Large-scale Decorticator Concept
Powerzone Mobile Decorticator
q q
Hemp Processing
Technology
CORE
Technology to separate the fibre & core from the stalks
is KEY to new market sectors
M-6 Ribbon Decorticator
MODERN PROCESSING
5
Powerzone’s “Schlichten” Decorticator
MODERN PROCESSINGHAMMER MILL PROCESSING
CannaSystems Canada Inc.
$15M - $45M

6. Industrial Markets
Potential Industrial Uses
• Processing for industrial composites,
insulation and textiles.
• Chipboard production.
• Fuel pellet production.
• Hempcrete and shotcrete.
• Spinning, cordage & mat construction.
• BioMass for Cellulosistic Ethanol fuel
production technologies.
• BioChar garden fertilizer and waste
reduction techniques.
• Manufacturing & fabrication of cellulose
products.
• New developments in micro-wave
fractionation processes is underway.
• Research into carbon nano-sheets &
graphene carbon production. Future
R&D commercialization.
Global bio-materials markets represent $800B in current estimates*
across several sectors. This includes composites, textiles, manufactured fibres
and bio-plastics. The increasing use of bio-materials in manufacturing is a
growing trend that includes building material applications. UN estimates*
indicate that the hemp industry will reach $110B within five years. Sector
estimates* show a global increase in fibre demand year over year.
Bio-materials are used in multiple industries. Company technology
produces hemp based fibre and cellulose products for manufacturers. Our
focus is on composite fibre markets and bulk core hurd sales into existing
operations. Industry analysis indicates that these two markets are (relatively)
easy to develop. We will not initially target traditional fabric & textiles mar-
kets - subject to suitable infrastructure and partnerships being established.
Industry trends that: 1) incorporate “green” materials, 2) reduce
energy, and 3) reduce chemical inputs, are very relevant to existing manu-
facturing operations. These trends support the CannaSystems objective of
providing ecological bio-materials for industrial applications.
The cannabis/hemp market will grow rapidly over the next ten years.
Changing regulatory conditions are a driving factor in many countries. Pro-
jected growth in the emerging cannabis market is 29% year over year. Canada
legalizing cannabis across the board is encouraging industrial hemp produc-
tion at all levels of government. For example, recent grants from the Ministry
of Natural Resources target bio-materials development in Canada.
As the legal and social climate surrounding cannabis is changing and
evolving, industrial hemp production is becoming far more attractive to the
agricultural community. AgTech investments for food security, industrial
manufacturing and climate change initiatives are increasing annually.
Transforming the existing 130,000 acres of hemp crops in Canada
into fibre & core materials represents a $1B opportunity. Ramping the indus-
try to 3 million acres per Province, for example, creates a multi-billion dollar
market over the next ten years.
* Appendix available upon request
6
Industrial
Hemp Crop
CannaSystems Canada Inc.

7. Operations
CORE
Hemp Technologies
TEXTILESCOMPOSITES
CHIP BOARD
INSULATION
HEMPCRETE
BLOCK
BLOCK SYSTEM
JUSTBIOFIBER
7
CannaSystems Canada Inc.

8. Traction
Decorticator Machine Sales
Hemp farmers & new producers from around the
world are making direct sales inquiries:
• Where can I see a unit in operation?
• Do you have parts & service?
• How much for a system?
• Can you arrange financing?
• When can you ship a unit?
We have prospects calling from:
Alberta Kentucky Mexico
Colorado New Brunswick Jamaica
Slovenia North Carolina Belize
Italy Wisconsin Uganda
Romania Manitoba Tusinia
Oregon Washington Sweden....
Hungary Illinois
Brazil Prince Edward Isl.
Poland South Carolina
Ontario Latvia
Thailand British Columbia
Africa Romania
India Vietnam
France Saskatchewan
Madagascar Ukraine
Russia Canary Islands
Spain New York
Columbia Maine
Germany Quebec
New Jersey Kenya
Nebraska North Dakota
Australia Uruguay
Montana Serbia
California Kansas
Switzerland Turkey
Tasmania South Africa
8
CannaSystems has done extensive
research via Canadian government
publications, universities, industry
analysis, competitive sources, trade
groups, US and global reports. We
see these trends continuing.
The demand for fibre and composite
products will continue to grow. We
project increasing consumer demand
and industrial applications of natural
bio-materials across wide product
sectors. The “cotton gap” in current
textile production offers further op-
portunities in the development of the
industrial hemp infrastructure. Cotton
farming requires additional fertilizers,
herbicides, pesticides and water sup-
ply. Demand is rising while production
is dropping.
Rapid development will take place
across the industrial hemp sector as
more countries legalize. Base level
supply-chain factors will impact the
market significantly.
* Appendix available upon request
Value (USD) of USA imports of hemp
fiber products, 2006–2015.
European Union fiber and hempseed
production, 1993–2013.
CannaSystems Canada Inc.

9. TeamBruce Ryan - Chief Executive Officer & Founder
• CannaSystems - 2015 • Cannabis sector expertise for twenty plus years.
• Canadian Hemp Trade Alliance co-founder - 2003 - Current CHTA member
Mr. Ryan has extensive involvement in the cannabis sector including: farming, cultivation, seed breed-
ing, processing and machine technologies required for industrial applications. His personal vision in-
cludes 85 million hectares of cannabis cultivated world-wide for all purposes. Bruce is a published writer
and media specialist with 7,000+ sector contacts and thousands of followers worldwide.
Ron Larson - Chief Financial Officer & Speaker to Bankers
• PriceWaterhouse • Manulife • XPrize & NASA CFO
• CannaSystems CFO - 2017
Mr. Larson has worked in the financial sector for over 30 years. Chartered Accountant and Insolvency
expertise from Price Waterhouse. Ron has IPO and Public Company expertise thru Manulife. His most
recent position was the CFO of X-Prize and NASA rocket business: Canadian Arrow for ten years.
Today Ron is focused on helping build another new company in another new industry.
Duncan Horne - Chief Science Officer
• Sustainable Energy Applied Research Centre • CannaSystems - 2017
Mr. Horne has a wide range of knowledge in alternative energy technologies and direct experience in
developing new products & marketplaces. He has unique experience in NSERC funded applied R&D of
emerging energy saving technologies at the Sustainable Energy Applied Research Center in Kingston,
Ontario. Duncan has extensive expertise from seed-to-sale in the medical cannabis industry, plus he
holds two Degrees from Bishop’s University and St. Lawrence College.
9
CannaSystems Canada Inc.

10. Collaborators
JUSTBIOFIBER
ARCADIA
HEMP
Titan Hemp
Bio-Plastics
Kentucky
Hemp
Powerzone
Agricultural
CannaSystems is working with a wide network: manufacturers, producers,
farmers, innovators, developers and hemp enthusiasts around the world. We
see a collaborative approach as essential to hemp supply-chain development
and sector growth over the next ten years.
Arcadia Eco Energies
Canfiber Systems
Valley Bio
Canadian Hemp Trade Alliance
Just BioFiber
Powerzone
Purity Hemp
Deity Metallurgy
Global Hemp Corporation
Kentucky Hemp
Powerzone Agricultural
Titan Bio-Plastics
India Industrial Hemp Alliance
Bombay Hemp Company
Industrial Hemp Alliance
HempSilk
National Hemp Association
Flow Filters....
PURITY
HEMP
Valley Bio
StexFibres
Holland
BHC
IIHA
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IHA
CannaSystems Canada Inc.

11. CBD HARVESTING
ORCHARD STYLE
1. Cutting headers to harvest plants
2. Collection wagons
3. Drying capacity
4. Pelletizing
5. Storage
6. Processing at LP facility
Hemp genetics with superior CBD content is key to
market development. Cultivation presents challenges
with harvesting, handling & drying this style crop.
Solution:
• Equipment to harvest 2,000 lbs per acre.
• System to process flowers & remove stems.
• Capacity to dry a minimum of 2,000 lbs per acre.
• Machinery to pelletize & bag the crop for shipping.
• LP processing facility producing 200 tons of CBD.
Private & ConfidentialCannaSystems Canada Inc.
WINTER
GREENHOUSE
11

12. This is not a “THC cannabis production” LP venture.
Maximum CBD content of the current 52 Health Canada approved
hemp cultivars is 2%, with most testing under 1%. Our exclusive
hemp genetics test at 8% ranging up to 23% CBD. This gives
CannaSystems a 400% competitive advantage for the next three
to four years with our R&D genetics program.
Existing Licensed Producer cannabis operations are our target
customers during this phase.
EXCLUSIVE
GENETICSR&D
BREEDING
PROGRAM
EXTENSIVE
INDUSTRY
EXPERTISE
CUSTOM
HARVESTING
EQUIPMENTLICENSED
EXTRACTION
FACILITIES
Private & ConfidentialCannaSystems Canada Inc. Further information: Bruce Ryan 416 939-6143 bruceryan@cannasystems.ca
Mission critical factors:
• Proprietary industrial hemp CBD genetics
• Greenhouse breeding for F3 results
• Decades of hemp industry experience
• Farm production contracts
• Essential harvesting & drying systems
• Licensed Producers w/ extraction
technology facilities
• Section 67 Research License
Lab reports show CBD ranges
from 8% - 23%: F2 cultivars.
Project requires five months of
breeding to achieve F3 seed results
for spring planting.
Technologies for crop processing
requirements have been sourced.
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13. CBD Gold Rush
Access to a new high-yield CBD industrial hemp strain
World class genetics expert is providing CannaSystems with direct
access to potential yields in excess of 2,500 lbs per acre of minimum 8%
CBD. At 2,000 lbs per acre: US $4 per 1% CBD = top line of $80,000/acre.
Farm Partner
We have signed our production partnership to grow the first 200
acres. We have also identified three prospective land owners we would like
to work with for an additional 200 acres. We will help the land owner at-
tract and retain the expert “green thumb” we require to be doing the actual
farming next year.
Our initial target is to bring in 400 acres of the high CBD strain
next year. The time, effort, energy and resources that are required to bring
in this crop are significantly greater than that required for Stalk or Seed.
Greenhouse Partner
We are operating greenhouse cultivation to produce the next
round of seed genetics over the winter. Our “F2” results will be selected for
seed production. This will assist in producing acreage in the spring.
Access to new high-yield Stalk cultivar
From the same genetics expert, we are targeting a new industrial
fibre strain to provide yields in excess of 12 tons of stalk per acre and also
delivers 800 lbs of (8%) CBD. This is where we see the long term hemp
sector development is headed when combined with decortication. We are
looking to begin a Stalk crop next year with 1,000 acres under contract.
In addition to completing the first full year for CannaSystems by
bringing in 1,400 acres of hemp, we are completing development of the
new R-2 decorticator system to begin manufacturing and selling decorti-
cator systems. Company has over 250 hard sales prospects from farmers
around the world.
Beginning with 80,000 sq. ft. of greenhouse January 2019, total
start-up financial requirements are $6,000,000 as follows:
Capital Assets to generate Plant revenue $2,400,000
Capital Assets to generate Product revenue 300,000
Capital Assets to generate Machine revenue 300,000
Operating expenditures until October 2019 2,500,000
Cushion 500,000
Total $6,000,000
The result next fall will be:
Flower yield - lbs 1,600,000
Stalk yield – tons 10,200
Revenue
Plant
Product
Machine
Total Revenue
Cost of Goods Sold
Gross Margin
Operating Expenses
Operating Income
Amortization
EBIT
CannaSystems Canada Inc. Private & Confidential
$40,000,000
520,000
3,375,000
43,895,000
20,978,000
22,917,000
3,998,000
18,919,000
534,000
$18,385,000
Further information: Bruce Ryan 416 939-6143
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14. CannaSystems Canada Inc. Private & Confidential
Licensed Producers
Cannabis regulations require that the flower / leaf
materials be sold to a Licensed Producer for processing. Can-
naSystems will, through our farm contracts, dry, pelletize and
bag the finished bio-mass product on the farm. Loads will be
picked up by the LP for delivery to the processing site. The site
must be licensed and approved for extraction under the Can-
nabis regulations.
Current wholesale pricing in the market is $4 USD
per percentage point of CBD shown in lab testing. Bio-mass
at 8% CBD = $32/lb USD. We expect fluctuations in the mar-
ket according to available supply and corresponding demand.
We expect prices to drop in the future.
CannaSystems will contract for specific amounts of
bio-material to be sold at the end of the harvest. A reserve of
25% will be calculated in order to avoid short contracts. Any
excess will be allocated on a pro-rata basis.
Genetic cultivars developed remain the property of
CannaSystems and the licensed seed breeder(s). These may,
or may not, become approved industrial cultivars. Project is
designed to produce at least two such cultivars under license.
These may, or may not, be available for widespread licensing
subject to Health Canada approval by 2020. In specific cases,
with an LP license, certain cultivars could be licensed under
R&D provisions to enable unique strains to enter the market.
We do expect fully stable industrial cultivars to be approved
by 2022 in all Provinces.
Investors
A combination of expertise, resources, equipment
and funding is required for this project. First year funding
requirements are $6M.
CannaSystems will invest capital in the additional
harvesting and processing equipment required. Much of this
is off-the-shelf technology chosen for production throughput
and operational efficency. This will also include custom farm
equipment for handling, drying and shipping the crop. We
have identified several manufacturers with proven technology.
Farming success is measured in terms of genetic
development and production of suitable cultivars. Financial
returns from the farm project will serve to fund both investors
and the next round(s) of development.
Investors are participating in the first round of financ-
ing with the appropriate returns. We expect this to be quite
lucrative give the current market considerations.
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15. CARBON
NEGATIVE
Two Final Words
Cannabis is an ancient “C3” plant species which means it can absorb CO2
up to 1200 parts per million.
Our modern “C4” plants reach saturation and do not absorb additional CO2
beyond 500 ppm as cannabis does.
Cannabis has this remarkable ability to absorb CO2
directly from the atmosphere. As global CO2
levels
rise, cannabis (hemp) plants grow larger naturally. For every ton grown above-ground, another half a ton of carbon
is stored in the soil as root mass, where it belongs. This creates a “carbon negative” opportunity to capture CO2
for
the life of the products made from the crop.
Carbon credits are a natural outcome of hemp carbon sequestration. This presents a business opportunity
to acquire significant carbon credits directly or by proxy. JustBioFiber, for example, has received carbon-negative
certification re: their hempcrete RSS building block system.
Appendix available upon request
CannaSystems Canada Inc. Private & Confidential
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