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Lifestyle Delivery Systems (LDS)
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9/27/2016 10:30:06 PM
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About The Company
Lifestyle Delivery Systems Inc.’s intellectual property is a technology and process that produces cannabis infused strips (similar to breath strips) that are not only a safer, healthier option to smoking but also a new way to accurately meter the dosage and assure the purity of the product. Throughout the cannabis community both recreational users and medical professionals have voiced concerns over the lack of standards in quality and precise dosage. From start to finish, the CannaStrip production process tests for quality and composition of all the ingredients used in each and every CannaStrip, resulting in a delivery system that is safe, consistent and effective.
The Company intends to license the CannaStrip production technology to established cannabis producers and retailers in the United States where State laws allow for the sale and use of cannabis products.
The current Licensees will initially expand the market territory of Southern California into Northern California, with additional Licensees continuing the expansion to include Washington State, Colorado, Oregon and Alaska. A West Coast expansion as the first growth target and expansion allows the Company to more easily train, manage and support the CannaStrips Licensees.
The Company will continue to develop new smokeless products primarily for the marijuana industry and once having developed a product, will then develop production methods, protocols and equipment to commercialize and support those products.
The business model consists of three simple objectives:
Develop technologies for products with high margins in the marijuana sector.
Control the technologies the Company develops and insure the quality of the products produced with those technologies.
Create multiple revenue streams from the technologies developed where the Company is not directly involved with the manufacturing, transporting or any sale transaction involving marijuana or products derived from marijuana.
The Company will generate revenue from the following:
Equipment – The Company will add margins to both the equipment it is manufacturing and the ancillary equipment that is being leased to the Licensees.
Equipment Leases – The Company will have hourly use rates relative to production and a base interest lease contract.
Packaging – The Company will add a markup to the price of packaging for sale to the Licensee above the net cost of manufacturing the packaging.
Non-Cannabis Ingredients – The Company will buy the raw formulation ingredients in bulk at a discount and sell to the Licensees with an added margin.
Lease rates, production hours, packaging and the ingredients are continuous sources of revenue.
The Licensee Agreement approach will allow the Company to generate revenue from its technologies without the concern of direct contact with marijuana products and without the additional obligations of staffing, product manufacturing, distribution and sales.
About the Products
The key component to a consistently high quality Cannastrips product is the strict compliance to the production methods and formulations developed by Lifestyle Delivery Systems Inc. The Company will be leasing out the proprietary equipment and methods of production to select Licensees. The Licensees will be required to purchase all the necessary packaging and formulated non-cannabis ingredients from Lifestyle Delivery Systems Inc. exclusively. The Licensees will also be bound by a single method use agreement for the proprietary equipment being leased to the Licensees from Lifestyles Delivery Systems Inc., which will not allow for any deviation from the Company’s methods or formulas. In addition the Licensee will be required to sign a non-disclosure and five year non-compete agreement.
As part of the Licensee Fee Agreement the Licensee will be required to lease from Lifestyles Delivery Systems Inc. testing equipment designated specifically for the production of CannaStrips. The testing equipment is an integral part of the quality control procedures insuring the purity and metered dosage for producing consistent high quality cannabis strips. The testing will insure that the product is free of pesticides, contaminates and is in accurately measured doses that patients and medical professionals can rely upon.
The equipment is currently a single proprietary prototype, which can be manufactured by a number of companies in North America. The equipment is scalable and though unique in its design is fairly simple to reproduce. It has packaging and metering ancillary equipment, which is “off the self technology” and easily incorporated into the production line. The equipment is specifically designed to produce the highest quality product using the CannaStrips formulation, methods and non-cannabis ingredients. The testing, metering and all other ancillary equipment necessary to properly produce CannaStrips is contained in the equipment lease package.
The Licensee will be responsible for sourcing the cannabis component and testing its purity prior to becoming an ingredient in CannaStrips. The non-cannabis ingredients which Lifestyles Delivery Systems Inc. sells to the Licensees are designed specifically for the production of CannaStrips and are a key component to the formulation developed and owned by Lifestyles Delivery Systems Inc. The ingredients allow the manufacturing equipment to produce consistently high quality CannaStrips in a very narrow tolerance range with exacting uniformity in structure and dosage with a longer shelf life than simple cannabis oil. The ingredients also provide multiple flavor profiles in a non-sticky, easy to handle strip with quick oral dissolve characteristics.
The CannaStrips packaging is a type of foil packet compatible with a nitrogen gas filled environment. The nitrogen environment reduces the oxygenation and degradation of organic products giving them longer shelf live with less loss of flavor and potency. The use of this packing is required as part of the terms and conditions of The Licensee Agreement and is produced and sold to the Licensees by Lifestyle Delivery Systems Inc.
TOTAL SHARES ISSUED & OUTSTANDING: 23,160,108
Fully Diluted: 32,604,373
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