Cannask Limited Truly Organic

What is Cannask?

Product Features

Site Location

Capital Budget

Financing Budget Total Financing Budget $650,000

Target Markets

Customers Alzheimer's, cancer, aids, arthritis, glaucoma, multiple sclerosis, Parkinson's disease, epilepsy seizures, hepatitis C, anxiety, post-traumatic stress disorder and many more.

Promotion

Pricing Policy Average price: $9/gram CAD 45 CAD 90 CAD 180

Net Income

Break Even Point

Thank You!

The Market: Canada

The Market: USA

Weather of Estevan

Floorplan

Processing

Product Positioning Map

Processing & Packaging Average Business Year Month Jan Feb Mar April May Jun Jul Aug Sep Oct Nov Dec Receiving    Seedling State Vegetative Flowering Processing & Packaging Laboratory Shipping Office

Room Capacity and Each Stage Duration Size of the pots: 1’ x 1’ Rooms Room Size Capability Period Seedling State 54’ x 15’ 810 plants 1 week Vegetative State 27’ x 16’ (2 rooms each) 432 plants each 864 plants total   1 month Flowering State 27’ x 32’ 864 plants 2 months

Production Capacity Year 1   Seedlings Vegetative Flowering May 400 seedlings 400 plants - June July August September October Total plants 1,200 plants

Production Capacity Year 2   Seedlings Vegetative Flowering May 800 seedlings 800 plants - June July August September October Total plants 2,400 plants

Suppliers

Capital Expense Land & warehouse $270,000 Photocopier $700 Fax Machine $230 Office desk $1,150 White boards Computer chairs $900 Office chairs $1,960 Laptop computers $3,600 Desktop computers $2,400 Collapsible tables $165 Filing cabinets $1,350 Microwave $150 Lockers Phone Installation $390 Net working capital $50,000 Total $335,625

Net Working Capital Cash $50,000 Accounts receivables $0 Inventories Accounts payables Net working capital

Production Cost Seeds $120,000 Pots and container $12,000 Light bulbs $15,000 Soil $24,000 Fans $9,000 Total $180,000

Operational Expense Employee wages and salaries $219,360 Employee benefits (Salaries) $7,407 Employee benefits (Wages) $18,110 Misc. variable cost % sales $4,050 Utilities (Heat, water and power) $42,000 Repair and maintenance $18,000 Telephone and internet $3,000 Marketing $75,100 Insurance $12,000 Property tax $24,000 Legal and Accounting Fees Capital Cost Allowance $7,963 Debt interest $28,000 Miscellaneous Total $497,990

Organizational Structure Managing Director & Chairman (Saba Anthea) Finance & Accounting Manager Human Resource Manager Marketing Manager Medical Representative Operations Manager (Azhar Huda) Production Supervisor Processing Supervisor

Total Salaries and Wages Wages and Benefits Year 1 2 3 4 5 Partners $90,000   $91,800 $93,636 $95,509 $97,419 Full Time Staffs 129,360 131,947 134,586 137,278 140,023 Part Time Staffs 41,843 101,347 157,894 Total Salaries and Wages 219,360 223,747 270,066 334,133 395,337

Competition

Free samples to doctors Marketing Budget Advertising Campaign Expense Cannask Website $5,000 For doctors’ office: Posters Brochures   $8,000 $6,000 Free samples to doctors $51,100 Miscellaneous Total $75,100

Net Cash Flow

Sensitivity Analysis: Number of Customers Number of customers per day Average 5 years profit Fifth Year Profit IRR Risks 5-15-21-27-33 ($173,347) $37,627 -16.9% Bankrupt 6-18-25-33-39 ($105,434) $150,605 10.3% Below ROI 10-30-42-55-66 $128,508 $464,291 44.50% - 15-45-63-82-98 $364,095 $803,049 78.8% Base Case 20-60-84-109-131 $580,761 $1,141,806 108.3%

Sensitivity Analysis: Purchase per Customer Average purchase per customer Average 5 years profit Fifth year profit IRR Risks $50 ($173,347) $37,627 -16.9% Bankrupt $100 $128,508 $464,291 44.5% - $150 $364,095 $803,049 78.8% Base Case $210 $623,574 $1,209,558 113.9%

Summary of Financial Results   Year 1 Year 2 Year 3 Year 4 Year 5 Sales $810,000 $2,478,600 $3,539,441 $ 4,693,299 $5,744,597 COGS $567,000 $1,735,020 $2,477,609 $3,285,309 $4,021,218 Gross Margin $243,000 $743,580 $1,061,832 $1,407,990 $1,723,379 Net Income Before Tax ($254,990) $222,608 $482,176 $748,472 $987,399 Net Income After Tax $425,952 $623,854 $803,049 Average 5-year Net Income $364,095 Net Present Value $2,118,683 Internal Rate of return 78.8%