67366_Presentation Booklet Proof

CBD

AN OPPORTUNITY FOR
By Norkol Inc and Safer Products



CONTENTS

What is CBD?
Benefits of CBD
Side Effects
Is CBD legal?
What is the position of the FDA?
Who sells CBD?
Current market and future growth
bout Safer Products
Our Vision
Our Services
Meet Our Leader
Top Selling Products
Disposable Vape Cartridges
Full and Broad Spectrum
New Projetcs
Whose CBD is the best?
Stocking Containers & Hardware
Process prior to manufacturing

What is CBD?

Cannabidiol is a popular natural remedy used to find relief from many common
ailments.
Better known as CBD, it is one of the 104 chemical compounds known as cannabinoids
found in the hemp plant. CBD is not psychoactive.
This quality makes CBD an appealing option for those who are looking for relief from
pain and other symptoms without the mind-altering effects of marijuana or certain
pharmaceutical drugs.
CBD oil is made by extracting CBD from the hemp plant, then diluting it into products.
It’s gaining momentum in the health and wellness world, with some scientific studies
suggesting it may help find relief from a variety of ailments like chronic pain and
anxiety.

Here are a few of the health benefits of CBD oil:

1. Relief from Pain 2. Reduce Anxiety and Depression

Hemp has been used to treat pain as far back as 2900 B.C. Anxiety and depression are common mental health disorders that can have devastating
More recently, scientists have discovered that certain components of hemp, impacts on health and well-being.
including CBD, are responsible for its pain-relieving effects. According to the World Health Organization, depression is the single largest contributor to
The human body contains a specialized system called the endocannabinoid system disability worldwide, while anxiety disorders are ranked sixth.
(ECS), which is involved in regulating a variety of functions including sleep, appetite, Anxiety and depression are usually treated with pharmaceutical drugs, which can cause a
pain and immune system response and is found in all mammals. number of side effects including drowsiness, agitation, insomnia, sexual dysfunction and
The body produces endocannabinoids, which are neurotransmitters that bind to headache.
cannabinoid receptors in your nervous system. What’s more, medications like benzodiazepines can be addictive and may lead to substance
Studies have shown that CBD may help find relief from chronic pain by impacting abuse.
endocannabinoid receptor activity, reducing inflammation and interacting with CBD oil has shown promise to find relief from both depression and anxiety, leading many
neurotransmitters. who live with these disorders to become interested in this natural approach.
CBD has also shown antidepressant-like effects in several animal studies
SUMMARY: Using CBD has been shown to find relief from pain. These qualities are linked to CBD’s ability to act on the brain’s receptors for serotonin,
a neurotransmitter that regulates mood and social behavior.

SUMMARY: Using CBD has been shown to find relief from anxiety and depression

3. Several Other Benefits

CBD has been studied for its role in finding relief from a number of health issues other than those outlined above.
Though more studies are needed, CBD is thought to provide the following health benefits:
• Antipsychotic effects: Studies suggest that CBD may help people find relief from schizophrenia and other mental disorders by reducing psychotic symptoms.
• Substance abuse treatment: CBD has been shown to find relief from drug addiction. In rats, CBD has been shown to reduce morphine dependence and heroin-seeking behavior.
• Anti-tumor effects: In test-tube and animal studies, CBD has demonstrated anti-tumor effects. In animals, it has been shown to prevent the spread of breast, prostate, brain, colon
and lung cancer.
• Diabetes prevention: In diabetic mice, treatment with CBD reduced the incidence of diabetes by 56% and significantly reduced inflammation.
• Epilepsy: Epidiolex is a cannabidiol (CBD) product approved in June 2018 by the Food and Drug Administration (FDA) for controlling seizures in people with difficult-to-treat
childhood-onset epilepsy. This is the first FDA approved CBD drug. CBD has shown effective against most forms of Epilepsy.

SUMMARY: Studies suggest that CBD may help find relief from diabetes, substance abuse and mental disorders. However, more research in humans is needed.

Are There Any Side Effects?

Though CBD is generally well tolerated and considered safe, it may cause adverse
reactions in some people.
Side effects noted in studies include:
• Changes in appetite
• Fatigue
• Diarrhea
CBD is also known to interact with several medications. Before you start using CBD
oil, discuss it with your doctor to ensure your safety and avoid potentially harmful
interactions.

SUMMARY: Although CBD is generally considered safe, it can cause adverse
reactions like diarrhea and fatigue in some people. It may also interfere with
certain medications.

The Bottom Line

CBD oil has been studied for its potential role in finding relief from many common
health issues, including anxiety, depression, acne and heart disease.
Research on the potential health benefits of CBD oil is ongoing, so new therapeutic
uses for this natural remedy are sure to be discovered.
Though there is much to be learned about the efficacy of CBD, results from recent
studies suggest that CBD may provide a safe, powerful natural regiment for many
health issues.

Is CBD legal?

Thanks to the 2018 Farm Bill, hemp is legal in all fifty states. However, the legality of
CBD is still confusing for many.

Here’s what you need to know.

The legality depends on the source of the CBD.
While hemp-derived CBD is legal in all 50 states, ‘marijuana’-derived CBD is not legal
federally.
Both marijuana and hemp are members of the cannabis family making them similar
in many ways. The government classifies hemp as any plant of the cannabis family
that contains less than 0.3% THC. It classifies “marijuana” as any plant of the cannabis
family that contains greater than 0.3% THC.
“Marijuana” cannabis plants have a lower percentage of CBD than hemp plants.
That’s why most CBD products use CBD from hemp not marijuana. Because
marijuana has higher concentrations of THC, it’s not an ideal choice for producing
CBD products. Using marijuana plants would require extracting some of the THC to
make CBD within the legal limits.
Hemp cannabis plants have a high amount of CBD and low THC, making them the
most efficient plant for CBD processing.
So the bottom line here is, if your CBD comes from hemp, it is legal. CBD made from
“marijuana” with high levels of THC, is only legal if your state legalized marijuana.

CBD is LEGAL in ALL 50 states.
Some are more friendly than others.

Where is CBD illegal?

Thanks to the passing of the 2018 Farm Bill, zero THC CBD is not illegal in any state in the USA. That’s right; according to federal law, it is legal in all 50 states. That said, since the change
in law is relatively new, some states might not fully embrace CBD.This should change with the new bill, however, it may take time. Below we outline four different jurisdictional categories
based on pre-2018 Farm Bill practices.
States can be grouped into four jurisdictional categories.

Friendliest States.

These jurisdictions have explicit laws allowing retailers to sell industrial hemp-derived products.
These jurisdictions include: Alaska, Colorado, Illinois, Indiana, Oklahoma, Kentucky, Maryland, Missouri, New York, North Carolina, Oregon, Rhode Island, South Carolina, Tennessee, Utah,
Texas, Vermont, and Wisconsin.

Friendly States.

In these jurisdictions industrial hemp grown in a Farm Bill-compliant agricultural pilot program is explicitly exempted from the definition of marijuana.
These jurisdictions include: the District of Columbia, Hawaii, Kansas, Montana, New Mexico, and North Dakota.

Gray Area States.

These jurisdictions are without explicit prohibitions against the retail sale of industrial hemp-derived CBD products but that have exemptions in the law for the argument that hemp-
derived CBD products are legal.
These jurisdictions include: Arkansas, Delaware, Florida, Connecticut, Georgia, Idaho, Iowa, Louisiana, Maine, Massachusetts, Nebraska, Minnesota, Mississippi, New Hampshire, New
Jersey, Pennsylvania, Virginia, and Washington.

States with Concern.

These jurisdictions have no explicit prohibitions against the sale of industrial hemp-derived CBD products. However, recent law enforcement actions or pronouncements raise the risk of
the retail sale of industrial hemp-derived CBD products.
These jurisdictions include Alabama, Arizona, California, Michigan, Nevada, Ohio, South Dakota, West Virginia, and Wyoming.

As of June 2019, states have begun amending legislation regarding hemp
and CBD. Here are the highlights:

CBD in Connecticut

Hemp and the sale of hemp (in accordance with 2018 Farm Bill) is now legal. Hemp has been removed from the list of cannabis products, but CBD appears to remain a controlled substance.

CBD in Florida

Legislation has been passed to legalize hemp and hemp products such as CBD procured in accordance with the 2018 Farm Bill. The Governor is expected to sign the legislation soon.

CBD in Georgia

Georgia has established a hemp growing program, and removed hemp from the list of scheduled substances. However, the Georgia Agriculture Commissioner has stated that including
CBD in food or dietary supplements is unlawful- consistent with the FDA approach.

CBD in Hawaii

The Department of Health clarified that the “interstate sale and distribution of cannabis-derived products including products containing CBD is illegal” if sold without a prescription and
outside a licensed medical cannabis dispensary. Adding CBD to food or supplements will be regulated in a manner consistent with the FDA approach.

CBD in Iowa

Iowa has established a hemp growing program. Hemp grown in accordance with the 2018 Farm Bill is no longer in the definition of marijuana. Retail sale of hemp products is legal, but
Governor Kim Reynolds states that the bill does not legalize the retail sale of CBD. Similar to Georgia and Hawaii, Iowa will approach CBD in a manner consistent with the FDA.

CBD in Nebraska

Nebraska has expanded its hemp program and hemp and hemp products are no longer on the list of controlled substances. That being said, there are still no explicit protections for the
retail sale of CBD.

CBD in New Jersey

Legislation is currently being considered that would protect the retail sale of hemp-derived CBD.

CBD in Oklahoma

Approved the retail sale of hemp-derived CBD! CBD product labels must share the CBD’s country of origin and whether the CBD is natural or synthetic.

CBD in Texas

A recently passed hemp growth program will protect hemp products like CBD. The legislation also covers labeling and retailer registration requirements.

CBD in Virginia

Virginia’s food safety regulations prohibit the introduction in interstate commerce of any food or dietary supplement containing CBD, including hemp-derived CBD.
Concluding Thoughts: Is CBD Legal in 2019?
• Marijuana derived CBD is not legal federally.
• The government classifies hemp as any plant of the cannabis family that contains less than 0.3% THC.
• It classifies “marijuana” as any plant of the cannabis family that contains greater than 0.3% THC.
• You need to check your specific state for any restrictions
Federal law permissions for activities involving industrial hemp are clear. However, the Farm Bill, and other federal laws on industrial hemp, do not preempt state law.
Just as there are hundreds of municipalities in the United States that prohibit alcohol sales nearly a century after Prohibition’s repeal, local and state laws may still restrict the sale of
industrial hemp products even where federal law is clearly permissive.
Some states continue to view CBD that comes from marijuana as being no different than marijuana itself. The government classifies any plant of the cannabis family that contains more
than 0.3% THC to be marijuana.
Bottom line, it is legal to purchase and consume hemp-derived-CBD in all 50 states.

What is the position of the FDA?

From doughnuts to dog treats, hemp-derived CBD is quickly becoming a multibillion-dollar business with mainstream appeal.
Sales of products containing CBD — the non-psychoactive cannabis compound, cannabidiol — are expected top $5 billion this year, a 700% increase from 2018, according to estimates
released this week by the Brightfield Group, a research firm focused on the cannabis industry.
“It’s been absolutely monumental how fast things are changing,” Bethany Gomez, managing director of the Brightfield Group, told CNN Business.
Since the passage of the U.S. Farm Bill in late 2018, which legalized hemp with some conditions, CBD products have exploded in availability and popularity. They’ve landed on the shelves
of CVS and Kroger stores, and even — albeit briefly — in the drive-thru of Carl’s Jr.
The market has grown beyond just tinctures and oils. It now includes products promising to improve health and wellness such as CBD-infused water, CBD-infused cosmetics and CBD-
infused pet treats. Epidiolex, a new U.S. Food and Drug Administration-approved CBD drug for rare seizure disorders, recorded $33 million in sales during the first quarter of this year.
If Brightfield’s latest estimates hold true, the market’s growth has only just begun. However, a lot is still riding on the FDA.
The Agriculture Improvement Act of 2018, better known as the Farm Bill, removed low-THC cannabis and its derivatives from the Controlled Substances Act, where marijuana — hemp’s
cousin — remains a Schedule I substance. That law also left plenty of discretion to the FDA, which regulates products such as pharmaceutical drugs, most food items, additives and
dietary supplements.
The FDA held a public hearing on May 31 about CBD and is taking public comments until July 16 on the substance’s safety, manufacturing, product quality, marketing, labeling and sales.
“While the agency continues to believe that the drug approval process is the best way to ensure the safety of new drugs, including those made with CBD, the agency is committed to
evaluating the regulatory frameworks for non-drug uses, including products marketed as foods and dietary supplements,” FDA officials wrote in a June 19 blog post.
If the FDA provides a “blatantly legal” path forward for the cannabidiol-rich cannabis derivatives, the boom will become even more pronounced, Gomez said. “That’s like lightning in a
bottle,” said John Timar, chief operating officer of Kill Cliff, an Atlanta-based sports drink company that’s releasing a line of CBD beverages in August. — (AP)
Over the past several years, FDA has issued several warning letters to firms that market unapproved new drugs that allegedly contain cannabidiol (CBD). As part of these actions, FDA
has tested the chemical content of cannabinoid compounds in some of the products, and many were found to not contain the levels of CBD they claimed to contain. It is important to
note that these products are not approved by FDA for the diagnosis, cure, mitigation, treatment, or prevention of any disease. Consumers should beware purchasing and using any such
products.

Who sells CBD?

The bulk of CBD products today are sold online with a quickly developing store front retail presence. However, the vast majority of the future growth will come from chain store retailers.
Just how popular have CBD products become? Well, major retailers, both public and private, are now selling CBD-based products. Here’s a look at the wide gamut of retailers now carrying
CBD oils, topicals, and capsules.

Health and wellness retailers

Three of the most prominent health and wellness retailers to jump on the CBD trend were pharmacy operators CVS Health, Walgreens and Rite Aid. CVS Health kicked things off by
announcing that it would carry CBD topicals in roughly 800 of its stores spanning eight states in March. Just days later, Walgreens followed with a corresponding move to carry CBD-
containing topicals in nearly 1,500 of its U.S. locations. Most recently, Rite Aid joined the party, announcing plans to carry CBD products in two states (Washington and Oregon). Considering
that front-end sales for CVS Health, Walgreens, and Rite Aid tend to have very low margins, the introduction of CBD products may slightly boost margins, or at the very least improve foot
traffic into their stores.
Beauty retailer Ulta Beauty is a fourth brand-name retailer carrying CBD-based products. In mid-March, Ulta announced plans to carry five skin-care products from Cannuka that blend
CBD with manuka, a type of honey that’s sourced from bees that pollinate Manuka trees. Ulta is currently able to sell these CBD skin-care products in all but three states (Nebraska, South
Dakota, and Idaho) where CBD laws remain very strict.
A fifth major wellness retailer where a consumer can pick up CBD products is GNC Holdings. GNC recently began selling a variety of CBD-infused topical creams of varying strengths. Known
for supplying everything from performance supplements to health and beauty products, GNC’s entrance into the CBD space was a logical move designed to appeal to the full spectrum
of its customer base.

Apparel and accessories retailers

In addition to brand-name health and wellness retailers, four major apparel, accessory, and general retailers are now offering CBD products for sale.
Continuing the running list, Designer Brands a sixth major retailer selling CBD creams and balms. Designer Brands, which is formerly known as DSW, hooked up with Green Growth Brands
and its Seventh Sense line of CBD-infused products to test these products in 10 of its stores. After 74% of the product sold in a 10-week span, Designer Brands decided to expand this
partnership to include 96 of its U.S. stores and nearly 55,000 total units of product. Interestingly enough, Green Growth’s current CEO used to be Designer Brands’ president.
Teen and young-adult-focused retailer Urban Outfitters now selling CBD products. Urban Outfitters agreed to carry products from CBD for Life (a brand being acquired by iAnthus Capital
Holdings in two of its California stores and four of its New York stores as a trial. Taking into account that younger people tend to have a more favorable view toward cannabis and CBD
products than older Americans, the move to carry CBD products by the young-adult-focused Urban Outfitters is a no-brainer.

Along with Designer Brands, privately held luxury retailer Neiman Marcus also moved into the CBD space in mid-January. Neiman announced plans to carry a variety of CBD products at five
of its locations, as well as online. Since CBD products tend to be priced at a premium to traditional cannabis flower, it plays perfectly into Neiman’s attraction of a more affluent clientele.
Bed, Bath and Beyond has also joined the retail movement by selling oils and roll-ons.
A final “retailer” that I’ll include in this list is Simon Property Group. Although Simon Property Group doesn’t directly sell CBD products, as the largest mall operator in America, it’s directly
responsible for approving or denying what stores goes into its malls. Recently, Simon Property Group and Green Growth Brands came to an agreement that allows Green Growth to open
108 shops in Simon’s malls this year to sell products containing CBD.

What is the current size of the market & what are the future growth rates?

According to estimates from the Brightfield Group, CBD sales-- CBD being the non-psychoactive cannabinoid best known for its perceived medical benefits-- are expected to soar from
$591 million globally in 2018 to $24 billion worldwide by 2022. That is a 147% compound annual growth rate. The bulk of those sales, $16.2 billion, are expected to come from chain-store
retailers, followed by online and natural foods stores with $3 billion and $1.3 billion in sales, respectively.
What retailers, Wall Street and investors seem to find most attractive about the rise of CBD is that it may appeal to consumers who might otherwise want nothing to do with the cannabis
industry. Since CBD-based products typically contain no traces of, or minute amounts of, tetrahydrocannabinol (THC), the cannabinoid that gets a user high, consumers on the medical
and recreational side of the equation tend to be more willing to try CBD-based products.
Furthermore, businesses benefit from the rise of CBD because it’s a considerably higher-margin product. With tobacco smoking rates hitting a more than five-decade low in the U.S., the
allure of smoking any product (tobacco or hemp) is waning. Instead, a new generation of users prefer alternative consumption options, including vapes, edibles, topicals, concentrates,
and oils, to name a few. All of these higher-margin derivatives can be targeted at a CBD-seeking customer base with little fear of oversupply or pricing pressure.

About
Safer Products

We produce high quality hemp extract products

We accommodate both small and bulk orders

Tinctures Vapes

Pain Creams Gummies
Cosmetics Soft Gels

Salves Eye Cream

We also have pet tinctures

Our Vision

To consistently produce
products from quality ingredients.

We source directly from the manufacturer for
many of our raw materials and packaging. This
is ideal for our large volume customers to
provide a consistent product and presentation.

Product Development

We are happy to formulate virtually anything.
The CBD industry changes frequently, and our R
& D department is busy keeping up with the
latest trends and advances in today’s industry.

Our Services

Formulate • Test • Fill • Label • Tamper-Band • Packing • Fulfillment
Custom Formulations • Validation • Label & Logo Design • Label Printing • Packaging Options

Meet Our
Leader

250mg, 500mg, & 1000mg Pain
Cream

A wonderful quick-acting and made from scratch cream to help find
relief in your joints and other aching parts of your body.

This has become our flagship and best seller.
We have our own formulation and make it in-house.
We test the CBD Concentrate by taking four samples and sending two
samples to two different labs. We formulate by taking the average of the
initial Certificate Of Analysis (COA) and the other four samples we tested
by the 3rd party laboratories.

We keep approximately 500g of each batch in case any testing is needed
at a later date.

Pain Cream Top Selling Items Gummies

2 oz. Amber Jar Tinctures 4.5g Gummies (Letters C, B, D)
Available Strengths: Gluten Free and NON-GMO
250mg, 500mg, 1000mg 1 oz. Boston Round Dropper Bottle
Peppermint Scented Available Bottle Colors: Amber, White, Clear & Cobalt Blue Flavors: Lemon Lime, Red Apple,
Orange & Black Cherry
Strengths: 250mg, 500mg, 1000mg, 1500mg & Custom
Flavors: Natural, Peppermint, Citrus & Blueberry

Safer Products
Disposable Vape Cartridges

Q-Core .5 ml C-Core .5 ml

Quartz Atomizer with all glass cartridge and Ceramic Atomizer with ceramic mouthpiece.
clear mouthpiece. (Mouthpiece comes in Black or White)
-Standard 510 Thread -Standard 510 Thread

Pure-Core .5 ml C-Core 1 ml

Ceramic Atomizer with all ceramic cartridge Quartz Atomizer cartridge and mouthpiece.
and mouthpiece. (Also available in Black) (Mouthpiece comes in Black or White)
-Standard 510 Thread -Standard 510 Thread

We Offer Both
Broad & Full Spectrum

Currently, the market has defined Full-Spectrum products as having detectable THC levels of .3% and below.
Broad-Spectrum products have no detectable levels of THC.

New Projects

We are developing new products including Pet Tinctures with different flavors and strengths, hair products such
as Hair Oil, Shampoo and Exfoliating Conditioners.

We are also currently developing a new water-soluble product with different flavor profiles for beverages.

CBD – Who’s is the best?

The biggest issue in the CBD market is getting what you pay for. Our products are always tested three times for accuracy
before it hits the market. We have partnered with several large extraction facilities who produce a consistent
quality product and meet our exceptionally high standards.

Stocking Containers &
Hardware

We have partnered with a packaging company to ensure we get the lowest pricing on packaging.
We share the facility with our packaging partner, which ensures we have a large stock of our packaging to meet large
volumes. This innovative company also manufactures disposable vape cartridges, pens and hardware which give us a

leading edge on price, variety and high quality.

Process Prior To Manufacturing

Step One Step Two Step Three Step Four Step Five

Review Extractor’s Take four - 1.5 ml Have two different labs Take all five COA’s Test final bulk product
COA samples from oil test two samples each and find the mean before manufacturing
average to formulate
concentrate
from.

Address: [email protected] (303) 718-7003
[email protected] (303) 882-8135
4900 East Pacific Place
Denver, CO 80222 We are located near the I-25 corridor and Evans Street.
www.safercbd.com