COMPANY OVERVIEW

SDZ is an Australian and Canadian owner operator of medicinal CBD strains from the seed to retail medicinal cannabis space. We have leading manufacturing process technology that provides SDZ with a significant competitive edge.

SDZ is an organic medicinal solutions corporation focused heavily on the growing cannabis market using our own strains, and our own seeds. We do not outsource our grow, and we do not acquire third party product as this is how we maintain a high level of quality.SDZ’s commitment to sustainability and ESG (Environmental, Social and Governance) disciplines form the bedrock of our core beliefs in seed generation, planting, harvesting and distribution of medicinal cannabis.

The company has a strong focus on assisting the homelessness that is growing via providing solutions that assist the state of mind to return home and not remain wondering what happens tomorrow, this is the core philosophy of the SDZ team. We are a organic medicinal solutions corporation focused heavily on the growing cannabis market using our own strains, and our own seeds. We do not outsource our grow, and we do not acquire third party product as this is how we maintain a high level of quality. SDZ has no business interest in the recreational cannabis market, nor will we ever invest and partake in the recreational development of Cannabis. Core to our proven growing techniques we are 100% “Off Grid”, from natural gas reserves located on the core Canadian properties to clear panel glasshouses set to be deployed in Australia, we create our own energy, enough energy to equally assist the local economy if needed or required. All locations pull their own natural water, so not only is SDZ organic in its methods, we are a sustainable and environmentally efficient corporation.

Much discussion and debate surrounds CBD:  Is it a medicine or a natural food supplement? While medicinal drugs are considered unsafe until proven safe, food supplements are considered safe until proven otherwise.

The World Health Organization (WHO) recently concluded that ‘to date there is no evidence of public health related problems associated with the use of pure CBD.’  Furthermore, last July the Chief Medical Adviser to the UK Government, Dame Sally highlighted conclusive evidence of the therapeutic benefits of cannabis based medicinal products and the whole class of cannabis based medicinal products be moved out of schedule 1.

The risks associated with CBD relate to the contaminants in manufactured concentrated extract; lack of certification of cannabis labs resulting in unreliable cannabinoid analysis; security surrounding harvesting and transportation, hence Canada and Australia lead the way as proven quality-controlled countries.

Recent data published by Grand View research, indicates that the global legal cannabis market is projected to reach US$146.4 billion by end 2025.  The increasing acceptance of cannabis medicinal remedies is expected to boost revenue growth in the near future.

The CBD investment opportunity is significant: global distribution partners are key.  While SDZ is a seed to retail enterprise and can never compete with the major brands at this stage it will partner with one of the major big pharmas. The game changer being when Amazon move into the pharma with a staggering 310 million active clients today. Further distribution of SDZ’s CBD water will be via a major brand such as Coke for example, we have the ability to move into alcoholic beveragemarket however at this stage SDZ seems that as recreational and not fitting with the company’s beliefs. The primary reason SDZ will do this is very simple “Distribution” they own this space, and it makes more sense to partner then re-invent.

Bio Cup awarded to Joel Capin and one of the Canadian Facilities

 

Investment ideas are led by SDZ’s seasoned management team with experience in the cannabis industry. The business model that we have in place (seed to retail) offers generous margins and lucrative returns for shareholders.  Furthermore, our chief grower and major shareholder Joel Capin is ranked in the top 5 in the world. Joel was awarded the best grower 2016 at the BIO Cup, and the team at SDZ have remained very focus on first and foremost being in the position to grow and develop CBD, this is something many are missing now as SDZ believe that Australia and Canada will become ‘Super Brands” of the Cannabis and CBD space over the next 5 years. This is important as quality is greater refined with research such as from Cambridge University and other globally recognised research groups.

SDZ has entered into a Newco Joint Venture with Australian Cannabis company OZMedCan Pty Limited. Under this agreement it will include multiple licenses over three major properties across Australia, including negotiation now for 130 Acres of Greenhouse in the Bundaberg region that will enable huge volumes of growth per year.

The joint venture includes indoor growing capabilities in Melbourne Victoria and licensing of advanced extraction technology for the creation of CBD. While the end numbers are still being worked on it is believed this joint venture will deliver in excess of 30 Tons of CBD per year for SDZ to distribute globally, and also work with SDZ and other related partners to maximise the end value per Kilogram. Today the cost varies from $5,000 to $16,000 per KG making this Joint Venture very exciting and lucrative for SDZ.

SDZ is building a best of breed seed to retail offering.  Quality of seeds is second to none.The recent developments with the extraction plant will considerably increase output and put SDZ on the map as a leading supplier of extracted CBD, globally. SDZ will be setting up in the Byron Bay region Australia a facility to develop the PTZ (Pets) based products for offering to the Australian market. Edible CBD treats in Canada and the USA has exploded and is seeing returns per kilogram of in excess of $300,000, and in life with the philosophy of the company pet assistance and also a growing anxiety problem is being well managed by CBD based products and Australia due to its heavy animal kingdom belief and equine industry for this to be a retail success story.

The estimated value per license of Cannabis farming in Australia and Canada is estimated at $25 Million pre production per facility, with SDZ already engaged in four such licenses SDZ are building the correct foundation from the seed up, the end retail products will continue to evolve and adapt around quality based product such as what SDZ are developing.

The business model that we have in place (seed to retail) offers generous margins and lucrative returns for shareholders.  Furthermore, our chief grower Joel Capin is ranked in the top percentile of his peer group.

Australian Land and natural water reserves SDZ have entered into contract negotiations

 

As the demand increases globally for CBD and the multiple strains, SDZ is well positioned to grow globally with the market. Between Australia and Canada it is internally agreed SDZ can by 2020 be delivering over 40 Tons per year of CBD development, this is around $200 Million at the lower end of revenues, SDZ may not sell all the CBD in one year as a new merging trend is to bank CBD Oil similar to the early oil days in United States of America and allow the value to increase and demand is held tighter. And we know as the market explodes, so will entrepreneurs and fresh ideas, and if you don’t have the product then your idea is an just an idea, so SDZ holding the product is similar to SDZ holding gold.

SDZ have an agreement to acquire 25% of the Asian beverage distribution company Macro Asia, this relationship was put in place to focus on the large growing beverage market in Asia out of Hong Kong and primarily for SDZ CBD Water based product, LEVEL, that will enable people to make alternative solutions to alcohol to settle anxiety and depression down and will equally be used to assist homeless people as part of the opening statement of assisting homeless, reducing pain and assisting overall wellbeing and quality of life.

SDZ will continue to work to develop such retail products that is now also gaining the attention of global beverage companies that need to invest into growing facilities to create the end product such as LEVEL.

The best comparable to SDZ at this stage is Australian Listed Medicinal Cannabis Company (ASX:AC8) AusCan. Today they have no license at all in Australia, holding a JV agreement for growth in Chile. They have hit a maximum yield from this facility of 1,000 KGs, and to date have not monetised the product at all and unable at this stage to import into Australia or Canada.

They today have a market valuation of $270 Million AUD. In comparison, SDZ have a holding in Canadian LP BHS, they have distribution rights with expected harvests to be in Canada alone of over 10,000 KG in 2019. Furthermore, with the partnership between OZMedCan and SDZ, it alone is expected to produce north of 30,000 KG in 2019. Leaning back toward the branding of Cannabis, Canada and Australian grown strains will always be more respected and accepted then third world grown strains. We maintain keeping the valuation at this stage at $20 Million USD pre-investment and will take no more than $5 Million in at this level. The team will then set for a larger and more valuable raise end of Q1 2019 on the back of significant highlights and deliverables. To fully understand why we are taking money in now, is to get the team, the structure and the direction right as this industry is evolving SDZ recognise we do not need big names, we need big thinkers.

To that point SDZ, understands the value of any company needs to be developed with a leading team that we have, and continue to assemble, first and most importantly was developing the best of breed growers for Canada and Australia, we have ticked that box with Joel, then with Bruce Ring at the helm of the Australian operations alongside Joel Capin managing the Canadian operations, we have a very good delivery and management team, with a strong back end and finance team.

Reality is SDZ are at least ten times stronger and larger then AusCan today, but we are still growing, we are licensing in the right countries and we will secure in 2019 at least 30,000 KG in off contracts for CBD, yet we maintain a modest and responsible valuation at this time.

SDZ are focused on remaining a primary distribution company for CBD creation a global primary grower in globally and WHO (World Health Organization) zones, partnering with world leaders between Canada, Australia and Europe and with its eye firmly on the developing USA market.

SDZ remains committed to research and strong shareholder returns in this exciting market and we will continue to be socially responsible providing a sustainable and ground-breaking product, that the world deserves. And finally, we do think we will make a difference to helping the loneliness and homelessness through alternative and safe treatments, such as CBD strains via SDZ.