The Kaya Shack™ Retail Brand

The Company has developed the Kaya Shack brand for its chain of legal cannabis retail stores. Kaya Shack is a value-oriented brand, offering an environment, merchandising, amenities, and product quality in excess of price point expectations. The idea of $10 (perceived) quality for $5 drives the Kaya value equation.

The stores offer a wide selection of high-quality marijuana flower (25-30 varieties at all times) and marijuana infused products (oils, concentrates, vapes, edibles and lotions) at affordable prices.

The Kaya Shack brand communicates acceptance, hope, and joy, with signs adorning the walls that read, for example, “It’s a Good Day to have a Good Day” and “Some of our Happiest Days Haven’t Even Happened Yet”. The brand colors are orange, green and purple – all colors associated with cannabis. The brand tagline “Fine Affordable Cannabis” highlight the Company’s value proposition. The name “Kaya” is derived from a 1950’s hipster term for marijuana, popularized in the 1970’s in a song by Bob Marley called “Kaya”.

The core of the Kaya Shack brand is embracing the “pass-the-pipe-around” spirit of cannabis - that all people are welcome and valued, have cause for optimism and hope, and embrace kindness. The Company communicates its brand through its store décor, featuring signs with positive, uplifting messages, its tagline “Be Kind” (a pun as “kind” is also a term used for cannabis), promotional materials, and all other activities in which the brands endeavor. The brand culture integrates with other Kaya brands as, for example, with Kaya Buddies and the placement of a “happy” message every pre-roll tube.

All stores are clean and bright in appearance and extremely easy to navigate. The products are color coded so customers can easily recognize sativa, indica and hybrid strains. Product selection is also a core component of the Kaya Shack™ brand. The Company seeks to offer its customers a broad enough selection so as to meet the widest possible demand.

Kaya Shack™ Retail Outlets

I. Kaya Shack™, 1719 SE Hawthorne Boulevard, Portland Oregon

Our first Kaya Shack™ OLCC licensed marijuana store (located in the heart of the trendy Hawthorne district in southeast Portland) opened for business July 03, 2014. The store is located next door to a cell phone repair shop, and near to Devil’s Dill restaurant and No Fun pub. Sharing the block are also a McMenamins restaurant, tattoo parlor, convenience store, hair/nail salon and a soccer sports bar. The area around the shop is mixed use (commercial and residential). The store is approximately 700 square feet, and serves as a model for the Company’s small urban shops.

II. Kaya Shack ™ Marijuana Superstore, South Salem, Oregon

Our second Kaya Shack™ OLCC licensed marijuana store (located in South Salem, Oregon) opened for business on October 17, 2015. The store is located in a strip mall alongside a Caesar’s Pizza, Aaron’s furniture, a convenience store, a tanning salon, and a nail salon. The plaza also has a Subway, a sports bar and a laundromat. The area around the shop is primarily commercial with residential complexes under construction. The store is approximately 2,100 square feet and serves as the model for the Company’s superstores featuring larger display areas and a soon-to-be-opened Pakalolo Juice Company infused fresh fruit smoothies stand.

III. Kaya Shack™ Marijuana Superstore, Central Salem, Oregon

Our third Kaya Shack™ (located in Central Salem, Oregon) opened for business February 15, 2018. The store is located in a strip mall directly behind Carl Jr. and Popeye’s Chicken restaurants and alongside a microbrewery sports bar, laundromat, and Hawaiian sandwich shop. The area around the shop is primarily commercial with residential apartment complexes. It has a footprint of approximately 3,100 square feet and follows the Kaya Shack™ superstore model.

Delivery

Coming Soon!

All Kaya Shack™ shops are licensed to provide delivery service to customers residing in the city limits within which the licensed store is situated.

In addition to providing added value and convenience for our customers, extending visibility and building recognition for the Kaya Shack™ brand, we believe that home delivery provides for greater market penetration, by allowing sales throughout a much larger service area. There is no limit to the number of delivery vehicles that can service a specific area, all while using just one store as a home base.

The Company has purchased the first four Fiat 500 cars for the delivery service. The cars are wrapped in the Kaya Shack™ colors for maximum impact. The website kayadelivers.com has been set up to receive and process delivery orders. The Company offers “Fast, Free Delivery” of its complete line of both medical and recreational cannabis products.

In early 2015, KAYS commenced its own medical marijuana grow operations for the cultivation and harvesting of legal marijuana thereby becoming the first publicly traded U.S. company to own a majority interest in a vertically integrated legal marijuana enterprise in the United States. Since that time KAYS has operated various grow facilities to feed the Kaya Shack Supply Chain, and currently has 2 significant properties for Cannabis Production and Processing:

Kaya Farms Lebanon, Oregon Marijuana Grow and Manufacturing Complex

The Company owns a 26-acre parcel in Lebanon, Linn County, Oregon, which it purchased in August 2017 on which it intends to construct a cultivation and production facility. We filed for zoning and land use approval in early 2018, and after numerous regulatory challenges and delays, we finally received zoning and land use approval in January, 2019 to build an 85,000-square foot Kaya Farms™ greenhouse grow and production facility. We are presently in the final planning stages and are awaiting the completion of the OLCC licensing process to begin construction.

Kaya Farms has begun designing the facility for maximum production of approximately 100,000 pounds annually, should recent efforts by Oregon state officials to enable export, or Federal decriminalization permit Oregon cannabis farms to maximize capacity.

Kaya Farms Eugene, Oregon Indoor Marijuana Grow, Processing and Cannaceutical Production Facility

On October 23, 2018 KAYS announced that it had concluded the purchase of the Eugene, Oregon based Sunstone Farms grow and manufacturing facility, which is licensed by the OLCC for both the production (growing) of medical and recreational marijuana flower and the processing/manufacture of cannabis concentrates/extracts/edibles. The purchase includes a 12,000 square foot building housing an indoor grow facility, as well as equipment for growing and extraction activity. The facility can produce in excess of 1,200 pounds cannabis flower annually as currently outfitted, as well as substantial amounts of manufactured extracts and related cannabis products. Capacity at the facility can be increased to produce in excess of 5,000 pounds annually of premium cannabis flower.

KAYS intends to utilize the processing facilities to grow their own top-shelf, connoisseur-grade marijuana flower, produce various brands of oils, edibles, concentrates and extracts, and develop medical grade laboratory facilities for the production of a proprietary Kaya Cannaceuticals™ line of both CBD and CBD/THC products for the health, skincare and medical industries.

Pursuant to an interim Management Agreement entered into between the parties, the Company has assumed operations of the 12,000-square foot facility pending transfer of the licenses by the OLCC to the Company, upon completion of a satisfactory compliance review. As part of planned expansion and renovations for the facility, KAYS began site improvements and has begun supplying its three Kaya Shack™ retail outlets with Kaya Farms™ cannabis and cannabis products from the facility.

Kaya Farms Cannabis Crop Reports

Kaya Farms 2019 Spring Harvest Kaya Farms™ Cannabis Test Results.

The 2019 Spring Kaya Farms™ crop at Kaya Farms yielded seven (7) strains posting test results of total cannabinoid content in excess of twenty (20) percent. Top performers (ranked by total cannabinoid content) include Stone Mountain Tangerine at 25.91%, Golden Ticket at 27.74%, Train Wreck Bull Flower at 27.97%, and Strawberry Banana at 33.5%

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Kaya Farms 2019 Summer Harvest Kaya Farms™ Cannabis Test Results.

The 2019 Summer Kaya Farms™ crop at Kaya Farms yielded eight strains of which seven (7) strains posting test results of total cannabinoid content in excess of twenty (20) percent. Top performers (ranked by total cannabinoid content) include Rude Boi at 19.37%, Chem 91 at 20.67%, Zurple Punch at 21.21%, Sour OG at 22.05%, Cherry Chem at 22.2%, Citrus Sap at 23.15%, Nigerian Silver at 24.9%, and Unicorn Delight at 26.45%.

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