Sugarmade Inc (SGMD)

[CannaBeast]

The first container system that maintains the medicinal
integrity of this plant for up to six months. Called BudLife, this patented product represents a quantum
breakthrough in the science of marijuana preservation and delivery.

The Company's business strategy is to launch BudLife®, with its patented technology, as a new,
breakthrough category in intelligent packaging that for the first time delivers all the benefits of preservation
and stability to marijuana without the need for refrigeration. The goal is to establish a unique paradigm in
preservation efficiency and longevity that sets a new gold standard for the intelligent packaging industry. It
will achieve this goal by manufacturing and marketing the first intelligent container system that maintains the
medicinal integrity of this plant for up to six months.

BudLife®-­THE LEAD OFF PRODUCT

The first product launched in the roll out will be the BudLife® Intelligent System Lid designed for use with
Mason jars, the most commonly used storage containers by home cultivator/growers and small
cultivator/growers. The size most commonly used is a one quart version, which contains one ounce of
marijuana. Management believes this is the fastest way to build revenue with new orders and continuing reorders
since the BudLife® Intelligent System Lid keys into a large existing Mason jar base. The closest
analogy would be supplying a breakthrough blade for the existing razor market. Management will
concurrently introduce the one pound container but delivery will be delayed until there are sufficient
BudLife® Intelligent System Lids manufactured to satisfy market demand.


THE ROLLOUT PLAN

The Company plans to rollout the BudLife® Intelligent Container System in the State of California via
Sugarmade’s developing hydroponic supply sales channels and via online marketing. The Golden State is
the first in the union to allow for the medical use of marijuana. Since then, 28 more states, the District of
Columbia, Guam and Puerto Rico have enacted similar laws. As the pioneer in legalization of medical
marijuana, California has the most tested legal and operational legacy architecture. The Company plans to
use California as its guide for all legal, operational and sales pursuits since as the largest market, it will be
the rules & regulations guide for many other states in the future. Further, with all of its management and
marketing operations in the state, Sugarmade and Plantation are in the position to closely monitor and
refine all its sales, advertising, promotion and PR programs.
The launch is set for the 4th QTR 2017. Once fully tested and with sufficient inventory in place to satisfy
projected demand, Sugarmade will expand into Oregon and Washington and Plantation will expand
nationally in the balance of the medical marijuana states, leading with the contiguous states in the West and
Alaska.

PATENT POSITION

Sugarmade has gained exclusive rights via an exclusive license to important patents to develop active,
medical marijuana containers, which are enforceable for more than 12 years. Products based on these
patents will incorporate many innovative features to extend the life of cannabis, to protect it from infestation,
mold and pathogens, and to ensure food safety. These innovations are especially applicable to the
packaging challenges posed by medical marijuana, particularly its lack of the need for refrigeration, which in
the case of marijuana is damaging.

OVERVIEW OUR TECHNOLOGY

The BudLife® technology is based on a radical integration of specialized gases and natural agents, which
dramatically extend the useful life of marijuana up to six months by actively managing the internal container
environment and altering its atmosphere as needed; all without the need for refrigeration. This is a critical
capability in the case of marijuana, since unlike fruits and vegetables that thrive in these chilly conditions,
refrigeration degrades and undermines the efficacy of the plant’s medical benefits. Simply put, the
technology’s innovative features extend the life of medical marijuana, while protecting it from infestation,
mold and pathogens to ensure product safety.

Marijuana is a sensitive organism that requires a container system that is both active (constantly working to
preserve the attributes of marijuana) and intelligent (responding to changes in its environment). Creating the
optimum environment for retention of tetrahydrocannabinol (THC), the principal psychoactive constituent, is
all but impossible with today’s standard packaging. In addition, the new legal frameworks put in place by the
States mandate standards relating to control, safety and public policy, which need to be addressed. A
plastic bag or similar container is no longer acceptable packaging for marijuana.


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