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BARREL HEMP CO. MAXIMIZING GROWTH, PRODUCTION & OPPORTUNITY OTC: BRLL

Barrel Hemp Co.€¦ · Hemp foods begin with hemp seeds, which contain a perfect balance of omega 3 and 6, iron, vitamin E and all essential amino acids. Hemp fibers make it comparable

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Page 1: Barrel Hemp Co.€¦ · Hemp foods begin with hemp seeds, which contain a perfect balance of omega 3 and 6, iron, vitamin E and all essential amino acids. Hemp fibers make it comparable

BARREL HEMP CO.

MAXIMIZING GROWTH, PRODUCTION & OPPORTUNITY

OTC: BRLL

Page 2: Barrel Hemp Co.€¦ · Hemp foods begin with hemp seeds, which contain a perfect balance of omega 3 and 6, iron, vitamin E and all essential amino acids. Hemp fibers make it comparable

FORWARD LOOKING STATEMENTS

Certain information set forth in this presentation contains ‘forward-looking information’, including ‘future oriented financial information’ and ‘financial

outlook’, under applicable securities laws (collectively referred to herein as forward-looking statements). Except for statements of historical fact,

information contained herein constitutes forward-looking statements and includes, but is not limited to, the (i) projected financial performance of the

Company, (ii) the expected development of the Company’s business, projects and joint ventures, (iv) execution of the Company’s vision and growth

strategy, including with respect to future M&A activity and global growth; (v) sources and availability of third-party financing for the Company’s projects;

(vi) completion of the Company’s projects that are currently underway, in development, or otherwise under consideration; (vii) renewal of the

Company’s current customer, supplier and other material agreements; and (viii) future liquidity, working capital and capital requirements. Forward-

looking statements are provided to allow potential investors the opportunity to understand managements beliefs and opinions in respect of the future

so that they may use such beliefs and opinions as one factor in evaluating an investment.

These statements are not guarantees of future performance and undue reliance should not be placed on them. Such forward-looking statements

necessarily involve known and unknown risks and uncertainties, which may cause actual performance and financial results in future periods to differ

materially from any projections of future performance or result expressed or implied by such forward-looking statements.

Although forward-looking statements contained in this presentation are based upon what management of the Company believe are reasonable

assumptions, there can be no assurance that such forward-looking statements will prove to be accurate, as actual results and future events could differ

materially from those anticipated in such statements. The Company undertakes no obligation to update forward-looking statements if circumstances or

management’s estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance

on forward-looking statements.

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Page 3: Barrel Hemp Co.€¦ · Hemp foods begin with hemp seeds, which contain a perfect balance of omega 3 and 6, iron, vitamin E and all essential amino acids. Hemp fibers make it comparable

❑ The hemp-derived CBD market has soared in recent years and further strong growth is predicted

❑ The 2018 Farm Bill has accelerated the Hemp industry by removing hemp-derived CBD as a Schedule 1

controlled substance and lifting interstate transport limitations

❑ CBD Processing is a leading component to spur this growth

Hemp-derived CBD is Projected to

be US$22 Billion by 2022Hemp Industry Top Challenges After the 2018 Farm Bill– Cultivator Survey Responses

Ma

rke

tSiz

ein

Billio

ns

(US$

)HEMP INDUSTRY AT A GLANCE

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Source: Brightfield Group

Page 4: Barrel Hemp Co.€¦ · Hemp foods begin with hemp seeds, which contain a perfect balance of omega 3 and 6, iron, vitamin E and all essential amino acids. Hemp fibers make it comparable

US & CanadaThe rapidly evolving legal framework

for both CBD and THC has kickstarted

North America into prominence in the

global scene

FranceFrance is Europe's biggest producer and has

accounted for approximately 25% of global

production, however that is in decline due to

Production from the Americas.

IndiaHere Cannabis has been in use for

over 4,000 years. It may be the

place to watch for new startups

and Medical CBD applications

ChinaHemp use in southeast Asia may go back

10,000 years. China is presently the

leader in Hemp production accounting

for roughly 70% of global production

According to the U.S. Congressional Research Service, U.S. hemp imports surged an astounding 1,200% between 2005 and 2015 – from $5.6 million to about $78.2 million. However, the passage of the Farm Bill represents a sweeping change in the balance of power in global hemp markets. The United States has historically been an importer of hemp products from Canada, Europe, and China. Now, with the Farm Bill as its tailwind, the U.S. hemp market will expand to lead the global hemp industry by 2020, likely representing 32% of the multi-billion global market in 2020.

CHANGING GLOBAL LANDSCAPE

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Page 5: Barrel Hemp Co.€¦ · Hemp foods begin with hemp seeds, which contain a perfect balance of omega 3 and 6, iron, vitamin E and all essential amino acids. Hemp fibers make it comparable

OUR CURRENT OPERATIONS

❑ The 2018 U.S. Farm Bill allows Hemp with less than 0.3% THC to be cultivated freely and has removed all restrictions on the possession, sale and transport of hemp-derived products across state lines

✓ Barrel Hemps’ Phase One base of operations is a large 602 acre Hemp farm strategically located within the Farm-to-Fork agricultural powerhouse known as the Sacramento Valley. This area boasts an agri-economy of over $7 Billion annually and produces some of the nation’s most diverse and high-quality crops year-round.

✓ Our location boasts excellent soil types, established farming, efficient irrigation, a long growing season, knowledgeable labor and room for our planned facilities.Google Earth Image

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Page 6: Barrel Hemp Co.€¦ · Hemp foods begin with hemp seeds, which contain a perfect balance of omega 3 and 6, iron, vitamin E and all essential amino acids. Hemp fibers make it comparable

Seeds

Stalk

Flower

Hemp

Hemp foods begin with hemp seeds, which contain a perfect balance of omega 3 and 6, iron, vitamin E and all essential amino acids.

Hemp fibers make it comparable to cotton and synthetic

materials, the Hemp Stalk has a multitude of uses that include apparel, bags, rope, netting and canvas

CBD is the second most abundant compound in hemp, typically representing up to 40% of its extracts. The high value CBD content is extracted from the Hemp flower and can be produced and sold in a number of high value forms from oils, distillates and isolates.

FULL HEMP PLANT UTILIZATION

Hemp is naturally high in Cannabidiol (CBD) and low in THC; the reverse of cannabis. CBD is one of more than

100 important compounds found in these plants, of which more study is needed.

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Page 7: Barrel Hemp Co.€¦ · Hemp foods begin with hemp seeds, which contain a perfect balance of omega 3 and 6, iron, vitamin E and all essential amino acids. Hemp fibers make it comparable

HIGH MARGIN HEMP FARMING

Selective sales of the CBD will allows us to capture the highest value and enhance our gross margin per acre.

Sell in Market

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Page 8: Barrel Hemp Co.€¦ · Hemp foods begin with hemp seeds, which contain a perfect balance of omega 3 and 6, iron, vitamin E and all essential amino acids. Hemp fibers make it comparable

SPECTRUM OF CBD USES

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Barrel Hemp is currently highly active in creating new tactical partnerships in India for new CBD Medical & Supplement formulations as well engaging in discussions with partners within the every growing CBD commercial marketspace to ensure the highest value for our Hemp derived CBD extract.

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Page 9: Barrel Hemp Co.€¦ · Hemp foods begin with hemp seeds, which contain a perfect balance of omega 3 and 6, iron, vitamin E and all essential amino acids. Hemp fibers make it comparable

CAPITAL REQUIREMENTS

BARREL HEMP CO..

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Item Amount ($US mm) (%)

Warehousing & Processing Facilities $11.2 57%Cultivation $2.8 14%

Production $3.2 16%

Land & Contract Management $0.8 4%

Working Capital $1.7 9 %

Total YR 1 with Facility Contruction $19.7 100%

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Page 10: Barrel Hemp Co.€¦ · Hemp foods begin with hemp seeds, which contain a perfect balance of omega 3 and 6, iron, vitamin E and all essential amino acids. Hemp fibers make it comparable

BARREL HEMP CO..

EBITDA: YEAR ONE, PHASE ONE

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Gross Revenue $30,756,700

Cultivation and Production $6,000,000

New Facilities $11,200,000

Total Overhead 19,700,000

EBITDA $11,056,700

Page 11: Barrel Hemp Co.€¦ · Hemp foods begin with hemp seeds, which contain a perfect balance of omega 3 and 6, iron, vitamin E and all essential amino acids. Hemp fibers make it comparable

COMPARABLE COMPANIES

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Company Market Cap

(US mm)

Enterprise Value

(US mm)

EV/Revenue EBITDA EV/EBITDA

Select Public Hemp & CBD Companies

Charlotte’s Web 624 589 7.51 16.77 35

CV Sciences 400 390 7.08 0.77 501

Elixinol Global 207 189 6.95 -.07 n/a

Abacus Health Products 42 33.3 3.7 -9.9

Stillcanna Inc 43 43.7 -3.49

Group Average 6.3 268

Barrel Hemp 5.3 5.46 11.0

Barrel is currently trading at a significant discount to its publically traded peersO T C : B R L L .

Page 12: Barrel Hemp Co.€¦ · Hemp foods begin with hemp seeds, which contain a perfect balance of omega 3 and 6, iron, vitamin E and all essential amino acids. Hemp fibers make it comparable

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Harp Sangha – Chairman and Director▪ Served in Board positions, and as Chairman and CEO for a number of

public companies.▪ Started career over 30 yrs ago as an Investment Advisor▪ Excellent fund raising and managerial skills ▪ Mr. Sanghas’ family have been involved in the agricultural sector for

decades owning 1,400 acres for fruit and nut farming in California

Craig Alford – CEO and Director▪ Holds both an Honors Bachelor and Master’s Degree of Science. ▪ Worked in over 30 countries in assignments and positions within the

management of major and junior public companies. ▪ Has been responsible for budgeting and the expenditure of hundreds of

millions of dollars and developed comprehensive economic analysis for billion dollar M & A transactions.

Sonny Janda – Independent Director▪ Solid background in finance and real estate. ▪ Involved with the construction of over half a million sq. feet and

implementation of 1,000 acres of walnuts and vineyards within both Northern California and British Columbia.

▪ Current projects include high-rise residential, large format retail/commercial centers, apartment complexes, as well as large precious metal projects in Africa and related project financing.

Lowell Holden – CFO and Director ▪ Lengthy background assisting companies fulfilling their financial

auditing and SEC reporting requirements ▪ Presently serves as CFO of Skkynet Cloud Systems Inc (SKKY) and CFO

& Director of EMR Technology, and CEO & Director of PTS, Inc (PTSH). ▪ Experience includes securing financing and managing relationships

with financing institutions & shareholders.▪ Holds a Bachelor of Science degree from Iowa State University

MANAGEMENT

Dr. Ravindranath Kancherla, M.S., FRCS (Glasgow) FRCS (Edin.) – Advisory Board Chairman▪ Fellow of both the Royal College of Surgeons of Edinburgh and Glasgow. ▪ Distinguished and internationally recognized surgeon and the recipient of several Lifetime Achievement awards ▪ Founder and Chairman of Global Hospitals Group, India’s first multi-organ transplant center. ▪ Worked at numerous hospitals in the U.K. as well as serving as guest faculty in Germany, Italy, Japan, India, and the U.S. ▪ Dr. Kancheria’s years of research is of critical importance to Barrel Hemp as we develop new healthcare CBD applications.

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Page 13: Barrel Hemp Co.€¦ · Hemp foods begin with hemp seeds, which contain a perfect balance of omega 3 and 6, iron, vitamin E and all essential amino acids. Hemp fibers make it comparable

✓ Hemp derived CBD is one of the fastest-growing markets

with sales projected to reach into the billions

✓ Company Strategically Located in Large and growing

addressable Market

✓ Early mover advantage in Extraction and Manufacturing

✓ Solid Economics and inroads into U.S. and global Supply

chain

✓ Low valuation compared to market peers

OPPORTUNITY

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Page 14: Barrel Hemp Co.€¦ · Hemp foods begin with hemp seeds, which contain a perfect balance of omega 3 and 6, iron, vitamin E and all essential amino acids. Hemp fibers make it comparable

Contact - Harp Sangha: (702) 595-2247 [email protected]

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OTC: BRLL

O T C : B R L L .

BARREL HEMP CO.S E RV I N G T H E G ROW I N G M U LT I B I L L I O N D O L L A R H E M P R E VO L U T I O N