This Document Is A Training Manual For The Industrial Marketing & Sales .

Transcription

This Document is a Training Manualfor the Industrial Marketing & Salesof Hemp Plant Extracts, these include:Broad Spectrum Cannabidiol (CBD) with0.0% THC, Full Spectrum CBD, andIsolates for CBD, CBG, CBN, CBDa etc. 90% CBD Extractw/0.00% THC(non-detectable)

SECTION I IntroductionPageAbout This Manual . 3Overview Of Industry . 4CLICK ON UNDERLINEDTITLES TO GO TO PAGETO RETURN TO CONTENTSCLICK ON LOGO SWIRLSECTION II CBD IndustryCBD Industry Organization . 5CBD Retail Snapshot . 6CBD Distribution . 7SECTION III ProductsProduct Line-Up . . 8Product (SKUs) Descriptions . 9Certificate of Analysis (COA) . . . 10SECTION IV Finished GoodsCBD Consumer Products . 11CBD Consumer Packaging . 12SECTION V Hemp & CBD TechnologyHemp Plant Overview . 13Hemp Oil Extraction Methods . 14Hemp Neuro-Science . 15Hemp Plant Cannabinoids . 16SECTION VI LEGALFederal CBD Program Status . 17State CBD Program Status . 18Licensing & Certifications . 19SECTION VI SALES & MARKETINGSales Presentation 21Price List . 23Glossary . 24 2020 HyperNovaTN, LLC2

About This ManualFormatWe have written this manual to inform you about CBD and the markets it serves.Almost everything you need to know is contained in these pages and culled frommany sources. The idea is you should only need this document to come up to speedquickly and begin the process of marketing our CBD products: the extracts from thehemp plant that brand-name manufacturers of CBD consumer packaged goodsneed to fulfill their specialty CBD-based products.PresentationOn page 21 we provide a sample presentation outlining of what we believe will work bestwhen meeting new prospects. We show hints in this text as to why you should emphasizecertain ideas. We are not “sales experts,” but we have learned from many years ofexperience the best way of bringing on a “recurring revenue” customer. Keep in mindCBD extracts are NOT created equal, but by the same token OEM customers expect thevery best as the extract you are selling is paramount to their newly CBD infused products– and it’s a medicine they are using, so it gets personal with their consumers who expectnothing but the very best – and consistently!Caution!The hemp industry in the United States is now just one year old, so it’s wise to keep inmind many prospects will have no idea, or be mistaken about CBD. Others will think theyknow everything! So you must be on guard to carefully nurse the uninformed and nottry to compete with the wiser ones – chances are some will be, and alienating them willhurt your chances of furthering a relationship. CBD extract sales is a consultative type ofselling, meaning the information you impart are the benefits and features, and acting“salesy“ will certainly diminish chances of success. However, as a professional you wellknow when it’s the right moment and day to ask for an order – and when to not! 90% CBD Extract w/0.00% THC(non-detectable) 2020 HyperNovaTN, LLC3

Summary Marketing PlanThe Primary FocusThe Company is exclusively involved in the extraction and furtherprocessing of the compounds from the hemp plant; and to beinfused by others in a plethora of consumer packaged goods,and sold nationwide in stores and on-line by mass market retailers.The Company will offer its extraction services to:1. Farmers/cultivators of hemp who do not haveextraction capabilities. In the U.S. there are currentlyabout 25,000 farmers managing 78,000 acres of hemp.Leading states are: Colorado, Oregon, Kentucky, Vermontand North Carolina. Catching up fast are: California, NewYork , Montana, Tennessee, Alabama and New Jersey.2. Small CBD product developers/manufacturersThese are small companies with as few as 5 or so employeeswhere some have bought very basic extraction equipment andoperate out of their homes or small commercial spaces. Theytypically get their start with a quasi-franchiser who hand-holdthem from buying the hemp or extracted oil to installing equipment and then bringing their products to market. Many do notdo extraction and therefore are an opportunity for the Company.3. Original Equipment Manufacturers (OEMs) who infusehemp oil into a plethora of products from tinctures to balms,cosmetics and shampoos to candies, cookies, beverages and petfoods . . . and hundreds of other CBD consumer packaged goods. 2020 HyperNova, Inc.4

The Operations Chart Below Provides aSnapshot of How HyperNovaCBD InterfacesWith Various Elements of the Hemp Industry Farmers ExtractorsSupplementalProduct whenneededCritical hempvetting ProductDevelopmentWith othersBiomass &ChemicalsExtractionProcess3rd PartyTestingSales &Marketingto OEMS Mass MarketDistributionRetail and On-lineFarmer inspecting his crop. Not all Hemp iscreated equal and why testing occurs at leastthree to five times before infusing its oil or inpowder form into consumer products. 2020 HyperNovaTN, LLC5

Change In Key Metrics for CBD Retail 5/19 vs 10/19For AZ, CA, CO, OR & NV (Total Population, 57M)CBD extract used 16,686 Kg/mo x 12 mths @ 2,500/Kg 500.4M/year*Extrapolating WesternRegion U.S. Totals to All50 States* (from Charts)Assuming western market grosssales currently represent 17.2%of U.S. population as per surveyof the 5 states w/57M pops;then entire market of 57Mshould deliver a total gross permonth of 584M/57M pops 10.24 /pop revenue.So, for the entire U.S.: 332Mpops x 10.24/pop 3.4B grosssales per year. (Assumesall states have CBD programs).If THC free CBD remains at18% of total CBD extractused to manufactureCBD products, then thetotal gross revenuefrom THC free CBD 126M/year.* All products contain CBD oil. Avg. amount of CBD per unit sold 1g. Avg. retail price 35 per unit total volume of 584M(Above)Twosold/month.distillations columns::one forunit sale 16.7K Kg of CBD extract used, x avg. price from Extractor of 2,500/Kg/ 35 16.7MunitsAt 1g CBD/methanolremovaltheotherforfinalbiodiesel 41.7M/mo. 500.4M/year. If 18% ofUS market THC free @ 3,003 Kg x 3,500/Kg 10.51M x 12 months 126M/year.distillation 2020 HyperNovaTN, LLC6

Top 10 CBD Factsand Statistics1.From Seed to Table: 3 CBD Distribution Channels1. Farm to Extractor toOEMs to Retailers (45%)ExtractProcessing3rd PartyTestingExtractinfusionintoproductsby OEM s3. OEM Farms toConsumers ion,Harvesting,Drying,MillingHemp OilExtractionHemp OilExtractionH y p e r N o v a C B DHemp OilExtractionH y p e r N o v a C B DH y p e r N o v a C B DCultivation,Harvesting,Drying,Milling2. Farm to Extractor toOEM*/ Retailers (25%)ExtractProcessing3rd PartyTestingExtractinfusionintoproductsby OEM s*ExtractProcessing3rd PartyTestingExtractinfusionintoproductsby OEM sThe sales of CBD are predictedto reach over 2 billion byend of 20212. Cannabis researchers BDSAnalytics and ArcviewMarket Research,projects that the collectivemarket for CBD sales inthe U.S. will surpass 10 billion by 20243. At the moment, there areabout 850 brands of CBDproducts in the US market.4. Colorado is the state with thehighest hemp revenues.5. BDS Analytics predicts that themajority of CBD product saleswill soon occur in generalretail stores instead of on-line.6. Data on CBD users show 40%of Americans interested in CBD.7. A cannabis worker earns morethan an average American.8. The demand for employeesin the CBD oil industry roseby 76% within the last year.9. Statistics on CBD directsales show that the majoritysellers are women.10. Pure CBD is perfectly safe forusage and you cannot get high.*A number of companies in the OEMRetailSKUsRetailSKUs(Above) Two distillations columns:: one forC omethanoln s u removalm e rthes other for final biodieseldistillationcategory are more facilitators thanactual manufacturers and just adviseand guide cottage-type businessesinto becoming (small-time) OEMs.RetailSKUsC o n s u m e r sC o n s u m e r s 2020 HyperNovaTN, LLC7

Extracted Hemp Compounds ProcessedTo be an Oil, Powder or Water SolubleProduct Line1. 80% CBD Broad Spectrum THC FreeNon-detectable (ND) THC 0.00%2. 80% CBD Full Spectrum, THC 0.03%3. 80% CBD Full Spectrum, THC 0.03%With Minor Cannabinoids4. 60% CBD, Crude Oil (not distilled), 0.3% CBD5. 99.7% CBD Isolate, THC 0.0% (Powder)6. CBG Isolate (Powder or Oil)7. 25% CBD Gold Oil, w/Medium Chain Triglyceride(MCT) such as Coconut Oil or Hemp seed oil8. 16% Water Soluble CBD Isolate (Powder)Customization of above SKUs at additional costOrganic versions of above SKUs at additional cost. 2020 HyperNovaTN, LLC8

HyperNovaCBD Hemp ExtractedOils and Processed Product Line-upProducts are tested to be free of mold, metals and pesticides*1. 80% CBD Broad Spectrum THC Free (Non-detectable 0.00%). Hemp CBD extract that contains all thenaturally occurring terpenes , flavonoids gand cannabinoids but with the THC removed by highly specializedequipment is known as “Broad Spectrum CBD extract with non-detectable (0.00%) THC.”This is the preferred CBD product if a customer does not want any THC. The alternative (and at less cost) isCBD Isolate w/o THC, but it does not contain other cannabinoids or terpenes etc., just the CBD. However,the best effect from CBD is to have all the compounds present so the “entourage” effect is present.2. 80% CBD Full Spectrum,THC 0.03%, with Minor Cannabinoids. Refined using molecular distillationtechnology containing on average 80% CBD while retaining terpenes and other beneficial compounds,without the chlorophyll and other heavier components that affect color and flavor.3. 80% CBD Full Spectrum,THC 0.03%. Same as #2, w/less minor cannabinoids such as CBG, CBC etc.4. 60% CBD, Crude Oil (not distilled), 0.3% THC. All CBD oil generally comes in threemain forms: raw, decarboxylated, winterized and distilled. Crude oil is essentially a full spectrumproduct with 0.3% THC but has not gone through filtration processes. As such, crude oilwill likely contain other compounds, like chlorophyll, terpenes, and microscopic plantmaterial. Crude oil tends to be green in color because the plant material has not beenfiltered out. Typically used by OEMs for lower priced CBD products.5. 99.7% CBD Isolate, THC 0.0% (Powder or Oil). CBD isolate is the purest form of CBD,produced by removing all other plant compounds found in hemp including terpenes,flavonoids, chlorophyll, and other cannabinoids. The highly refined CBD is then combinedwith a base like coconut or MCT oil for a final product that’s usually flavorless, nearlytransparent, and extremely fluid. It is also available as a powder* As shown on the Certificate of Analysis6. CBG. Is much like anisolate as it only containsCBG. OEMs make productsthat become popularthrough use and medicinaleffect. Other Isolates areCBC, CBN and CBC. All havetheir individual propertiesand cater to certainailments. CBD and othercannabinoids can be addedback in. Currently, themarket for these isolates isjust emerging and pricedsignificantly above typicallyoffered CBD products. 2020 HyperNovaTN, LLC9

Reading the Lab Report (Certificate of Analysis)The report provides precise measurements of the key ingredientsin a given CBD batch. A “batch” is a homogeneous amount ofproduct extracted and processed from the same biomass harvestThe values for “TotalCBD” and any “Minor”compounds determinethe quality and price ofa given batch of CBD oil**Minor CannabinoidMinor CannabinoidCompoundsCompoundsLimit of DetectionLimit of QuantificationTetrahydrocannabinolTHC is non-detectable (ND)(THC). Limit ofTHCTotal(Above)Two distillations columns:: one forQuantificationmethanol removal the other for final biodieseldistillation*Note: Not shown, but part of aTotal % of CBDTotal mg/g of CBDfull panel test, are COA valuesfor terpenes, flavonoids, lipids,heavy metals and pesticides. 2020 HyperNovaTN, LLC10

Typical Products Manufactured By the OEMsThese items are infused with CBD and listed by category.First list show several medicine administration typesSupplementsBody CareTinctures (Drops)InhalerNNasal SpraySuperfood SupplementCapsules/softgelsShatter (Isolates)Intimate lubeMassage oilBath bombs & soaksFace oil (Serum)LotionHand creamBalmFace maskEye serumBody scrubFace moisturizersBeard balmDeodorantEdiblesChocolatesHard candiesGummiesLollipopMac & CheeseHummusJelly BeansHoneyCheese PuffsCerealMustardPeanut ButterGumOlive oilCoconut oilPopcornSmokingVapingFlowers (Joints)PetsPet TincturePet TreatsPet TopicalsBeveragesSeltzer (Sparkling water)Soda (or “Pop”, “Coke”CoffeeBeerEnergy drinkWaterTeaK-CupsCocktailsHow To Read A CBD Product LabelCompany nameType of CBD oilCBD total in MgCBD mg/mlBottle fluid capacitytypically: 2 oz, 1 oz and 0.5 ozand expressed in mlASTM American Society for Testing and Materials(Above) Typical chemistry lab with chromatographyand other testing equipment to perform a completeASTM test 2020 HyperNovaTN, LLC11

Typical Products Manufactured By the OEMsCBD items sold through mass market retailers and on-line . . . 2020 HyperNovaTN, LLC12

1. Pressed resin glands (hashish)2. Oil form sometimes referred to as RSO3. Tincture4. Shatter5. Budder6. Wax7. HTFSE (high terpene full-spectrum extract)8. HCFSE (high cannabinoid full spectrum extract)9. Vape cartridges10. CBD in crystalized form11. THCA in crystalized form12. Delta 8 in oil form.* Process used by HyperNovaCBDCompounds targeted: all availableCannabinoids with resulting extract highor low in other Cannabinoids (calledminors). Any of these can be isolated.Ancillary requirements: legally licensed,compliant laboratory; ability to storeethanol alcohol. Other rocessFE X T R A C T I O NThe Most Common Products ProducedTHC Free: Most CBD in products is isolateCBD. Meaning, the CBD compound fromthe Hemp plant was removed leaving allother compounds (literally hundreds)behind. Not good.HyperNovaCBD is expert in THC removalbut process leaves behind every othercompound in tact. It’s really just FullSpectrum CBD without the THC.P.1. Dry-sieved then pressed hashish2. Water extracted, dried, pressed hashish3. Rosin, heat and pressure applied, squeezingout the resin4. Liquid nitrogen extraction5. CO2 extraction6. Ethanol alcohol extraction*7. Hydrocarbon extraction8. Distillation, wiped film, thin film or short path.Typically a crude extract requires furtherrefinement in one form or another, be itwinterization, filtration and evenisolation. HyperNovaCBD employs apatented, unique design capable ofproducing a more refined productincluding new Hemp-based oil formulasand with less labor, plus other savingsand capabilities.A.The Most Common Extraction MethodsHyperNovaCBD’s ProcessIs Advanced and UniqueMechanicalharvestingof Hemp.Protectstrichomes.Sorting priorto milling to¼” squareExtraction,processing& refinementPostextraction3rd partytestingQ.Extraction Methods andProducts ProducedRSFrom Farmers toExtraction/Processing 2020 HyperNovaTN, LLC13

The Cannabis Sativa Plant ProducesStrains High or Low in CBD and THCDifferences1. To differentiate strains of Cannabis Sativa, plants grownto be high in THC are called Marijuana, while plantswith low levels ( 1%) of THC are referred to as Hemp.2. Visually, Marijuana is bushier with broader leaves,compared to hemp which is leaner with shinier leaves.3. What really sets them apart is the differencesin their chemical composition. More than 300cannabinoid compounds are found in cannabis,but the amount of these cannabinoids differsdramatically between hemp and marijuana.Plants Parts1. Under USDA rules it is illegal to add any part of the hemp plant, itsextracts or derivatives into foods. In some states where this ispermissible with marijuana, authorities are turning a blind eye toits addition into drinks, gummies, candy/cookies and pet treats.2. It is also illegal to recommend a medicinal use for any of the hempextracts, compounds, seeds and fibers. The FDA (Federal Drug Admin.)scans the internet routinely and issues stern warnings for violators.Read More: marijuana-whats-the-difference.aspx 2020 HyperNovaTN, LLC14

Endocannabinoid System; Entourage Effect;Terpenes, Flavonoids and Other CompoundsThe Endocannabinoid System (ECS)ECS is a set of signaling molecules in the central andperipheral nervous system that helps regulateprocesses of the body such as appetite, pain, mood,and memory. This is where CBD reacts with a user.The chemical makeup ofendocannabinoids are closelymimicked by cannabis.No two person’s endocannabinoid system isthe same and therefore people will encounter varyingeffects when using cannabinoids, CBD being one ofthe most prominent. So in effect, not empirical, andpresumably why doctors do not yet prescribe untilFDA direction.Terpenes & FlavonoidsAlongside Cannabinoids in the Hemp plant areTerpenes, these give color, whereas the Flavonoidsprovide smell to the Hemp oil. CBD high in thesecompounds typically cost more.Entourage EffectThis effect provides the entire experience of the plant’smedicinal capabilities with about 400 compoundspresent. CBD Isolate only offers the value of CBD alone.The central nervous system, which consistsof the brain and spinal cord, receives andtransmits signals to the nerves in theperipheral nervous system, which iscomposed of the nerves in the organs andmuscles of the body.Read More: r-cannabinoids-cannabis-effectsReceptors in the endocannabinoidsystem regulate the body'sperception of nabinoid-system-in-mood-homeostasis/ 2020 HyperNovaTN, LLC15

Hemp Contains About 400 CannabinoidsMost Popular Cannabinoid Uses to DateCBD has overtaken THC as the most popular cannabinoid found in the Cannabis Sativa plant.CBD is a medicinal health supplement with 0.3% THC. On its own THC is for recreation andprovides a euphoric experience with typically 5% to 35% THC. By law, the Company is notallowed to do business in THC above 0.3% (i.e. 1/3rd of 1%).CBD Oil is MoreEffective ThanAnything Else atReversing Literally100’s of Ailments,Including: Joint PainArthritisPTSDAutoimmune DiseaseDiabetesMultiple Forms Of CancerHigh Blood PressureProstate IssuesAlzheimer’sDepression, Bipolar DisorderAge Cognitive DeclineMigraines And HeadachesCardiovascular IssuesCrohn’s And ColitisEndocrine DisordersInflammationNauseaMultiple SclerosisNeuropathic c stress and fatigueSpinal cord injuryStrokeObesitySkin conditions, psoriasisand adult acneSchizophreniaAnd much, much more Read More: r-cannabinoids-cannabis-effects 2020 HyperNovaTN, LLC16

Rules and Protocols for Growing, Processingand Marketing Hemp Extracts and Fibers2018 U.S. Farm BillUnder the U.S. Farm Bill 2018, and beginning January 1, 2019,the hemp plant, (called Cannabis Sativa) became legal but onlyproviding its THC level (Tetrahydrocannabis) is below 0.3%. Hempcan now be grown, harvested, sold and transported across statelines – including importing and exporting and treated just as anyother agricultural commodity for insurance, banking etc.).State RegulationsUnder the 2018 U.S. Farm Bill, it is required that each State setup its own program and have it approved by the USDA (U.S. Dept.of Agriculture). Growers must have Federal Tax I.D., a State licenseand Resale Number. They are required to report annually theiracreage and other activity details periodically to the USDA.Protocols1. Under USDA rules it is illegal to add any part of the hemp plant, itsextracts or derivatives into foods. In some states where this ispermissible with marijuana, authorities are turning a blind eye toits addition into drinks, gummies, candy/cookies and pet treats.Workers trimming flowers in alight and temperature controlledindoor/greenhouse environment2. It is also illegal to recommend a medicinal use for any of the hempextracts, compounds, seeds and fibers. The FDA (Federal Drug Admin.)scans the internet routinely and issues stern warnings for violators.Read More: https://www.farmers.gov/manage/hemp 2020 HyperNovaTN, LLC17

States Where CBD is Legal or In-Process. States Status With MJCBD LegendNO CBD is not legal togrow and sellIPIP State is in the processof developing a programfor approval by the federalgovernment (USDA) as1/20All other states (without aNO or IP designation) havealready filed with the USDAfor program approval andare currently active in thebusiness.Regardless of a state’sstatus, it is legal totransprot Hemp and CBDproducts through a state.NONONOIPNONOIPNOIPD.C.NOIPNOIPNOIPNOFor ANY state to belegal, it must gettheir Hemp Programapproval bythe USDAMedical or recreational marijuana illegalMedical marijuana legalRecreational and medical marijuana legalThis chart will be updated as states change their CBD, medical and recreational marijuana laws 2020 HyperNovaTN, LLC18

As a One Year Old Industry It Is largely SelfRegulated, So Being Credentialed Important1. Proof of a real manufacturing facilityTo date, the CBD industry has been largely unregulated. This means thatoil can be extracted pretty much anywhere, and no one would know thedifference. When researching various CBD manufacturers, make sure theproduct they’re offering is made in a legit manufacturing facility ratherthan in someone’s garage or storage shed.2. Information on where the hemp comes fromWhere does the manufacturer source the hemp from which their CBD ismade? Is it grown sustainably and in accordance with the highest cultivationstandard? Is it grown in the U.S. or is it sourced from overseas? The top CBDmanufacturers will let you know exactly where the hemp that is used to createtheir products comes from.3. Knowledge of the entire process from seed to saleHave you ever stopped to think of the entire process of making CBD oil? Fromseed to sale, there are several things involved. “Seed to sale” is a system thatcan be used to track the entire process including cultivation, harvest, extraction,production, distribution and sales. These tracking systems often contain a combination written records and software in a single database that can be used by cultivators, processors, manufacturers, transporters and others involved in theprocess that provides a thorough history of the product. Continued . . . 2020 HyperNovaTN, LLC19

. . . from page 194. Appropriate regulatory licenses and propermanufacturing certificationsWhile CBD has been largely unregulated up until now,there are certain regulatory licenses and proper manufacturingcertifications that the best CBD manufacturers will carry. Regulatorylicenses will vary from state to state and manufacturers should beclear about the regulatory licenses they carry. ISO is also somethingto keep an eye out for, which is a quality management system thathelps organizations ensure that they meet the needs of customersand stakeholders while meeting statutory and regulatory requirements related to CBD. Some manufacturing certifications top CBDmanufacturers will hold include Good Manufacturing Process (GMP)certification and Governance and Professional Practice certification.5. Certificates of Analysis each product batchA certificate of analysis (COA) is a laboratory report regarding thecontents of a product. In the case of CBD, a COA will includecannabinoid content and other tested compounds, such as pesticides,mold and heavy metals. COAs ensure the customer knows exactly whatis in the product they’re purchasing. Not only does this create transparency,but also ensures that the product contains exactly what it claims. A 2017 studyfound that almost 70% of CBD products sold online aren’t labeled correctly, havingeither considerably less or more CBD than advertised. CBD manufacturers should offerthe most recent COAs of the products they provide.Breakdown of Hemp-derivedCBD products in the U.S. - 2018 2020 HyperNovaTN, LLC20

Presentation Concept to Prospects1. Warm-upIt’s really important to chat with your prospect for a couple of minutes before diving intothe presentation. The conversation should be about them as much as possible. Thinkfamily, recreation, their business . . . anything but the reason you are there (3 minutes)2. DiscoveryEase carefully into asking the right questions (think Columbo on this!):(i) Qualification. Am I speaking with the right person? Is he or she the decision maker?(ii) Right fit. Are you sure you are there to talk about CBD? Often there is a disconnecton this. Rather, you might clear at appointment confirmation.(iii) Knowledge: Does the prospect know anything about CBD?(iv) Need: Are they currently involved with CBD? What are their concerns?(v) Get prospect talking: Find out what their level of interest is and are they budgetinganything this year or next. (10 minutes)3. PresentationYou are ready now to start presentation. But first tell prospect what you are going to do.(i) Preview. “Ms Purchasing Agent, I’m going to give you a brief summary of CBD:(a) The date we are able to provide you CBD extracts (some not available now)(b) Where the hemp was grown (state only)( c) How the hemp plant is cultivated, harvested and dried(d) How the CBD extracted (oil) is taken from the hemp plant(e) How we take out the THC from the extract(f) A little about the background and experience of our company(g) At any time feel free to jump in with any questions or comments(h) If you are ready to buy today I will give you a “today quote;” if not,then I will provide a figure good for 30 days and be on my way.TIP #1It’s very important to NOTdig too deep. Be casual, as ifyou don’t care. You are thereto educate them, NOT SELL.That comes much later or onanother day.TIP #2Explain this quickly andbriefly covering thedifferent subject mattersections onlyTIP #3If they want a “today quote”you have to ask more aboutvolume usage and over whattime period. Push for a oneyear contract with priceadjustments each quarter.(More on this later inpresentation) 2020 HyperNovaTN, LLC21

Typical Presentation to Prospects3. Presentation (cont.)(ii) Presentation.(a) First let me go over what CBD is. It’s one of about 400 compounds in the hemp plant.It is one of the well-know ones for medicinal use. CBD stands for cannabidiol. Anotheris THC, and that stands for Tetrahydrocannabinol. This compound is the one that getsyou high/intoxicated. The hemp we use is a strain very high in CBD, however, the THCis very low, and by law it must not be over 0.3% by weight (that’s 1/3rd of 1%). It’simpossible to get high on that amount of THC.(b) Some people want zero THC in their CBD. The reason is they either just don’t want anyTHC or they work where drug tests are routinely given and the THC will show in theanalysis as with CBD use a tiny amount of THC will build up in ones body over time(c) We provide an option of CBD without any THC. Using very sophisticated equipment,we actually take out any THC and leave all the remaining several hundred cannabinoidsin the extracted oil.(d) Another way to take out the THC. Many companies don’t have the means to take out theTHC, so they simply take out the CBD. Isolate it. Now while this gives you a THC freeproduct you end up without the balance of the hemp’s other compounds such as CBG,CBC, CBN and a few hundred more, the terpenes, flavonoids and other compounds thattogether provide you the full benefit of all the compounds.(e) Harvesting and drying the hemp is critical as with too much handling and moving aroundit damages the plant including the trichomes, the sugary looking substance on many ofthe leaves that form the colas (flowers of the plant). And the drying/curing process mustbe done slowly and not in a very hot or cold environment either.(f) A little about our background. We started 16 years ago using agricultural oils to makebiodiesel, and this experience is now being carried over to take the oil from hemp andprocess it as per what our customer requires. There are many other compounds in thehemp plant that can be extracted and used on their own or combined with others.TIP #4This is a partial draft ofa typical presentationand to be completed 2020 HyperNovaTN, LLC22

Payment Terms1. Purchase OrderIn writing oncompany letterheadand signed by CFO orAuthorized person.Current Pricing for CBD Extracts and IsolatesSKU Item1 to 1011 to 4950 to 299300 2. Agreement 80% CBD Broad Spectrum.Non-detectable THC (0.00%) 6,000 5,742 4,842 4,242 80% CBD Full Spectrum, THC 0.03%, w/Majors4,2003,7673,0672,667 80% CBD Full Spectrum, THC 0.03%, w/Majors3,7004,3733,6733,4002,7972,0971,697 99.7% CBD Isolate, THC 0.0%(Powder or Oil).4,0003,5242,8242,42425% CBD Gold Oil, /MediumChain Triglyceride (MCT) such asCoconut Oil or Hemp seed oil2,00016% Water Soluble CBD Isolate(Powder)5,6004,252Prices good for 30 days from quote date.Phone orders require simultaneous email confirmation(Above) Two distillations columns:: one formethanol removal the other for final biodieseldistillation1,6123,552Customer designatesMajors preferred. Price isbased on annual contract3,273 60% CBD, Crude Oil(not distilled), 0.3% CBD2,312Price is based on anannual contract. Includesdelivery.1,2123,152Lower CBD values willdecrease pricea

sales currently represent 17.2% of U.S. population as per survey of the 5 states w/57M pops; then entire market of 57M should deliver a total gross per month of 584M/57M pops 10.24 /pop revenue. So, for the entire U.S.: 332M pops x 10.24/pop 3.4B gross sales per year. (Assumes all states have CBD programs). If THC free CBD remains at