Hi R B,





The purchase price for each Convertible Note is $100 with a minimum purchase of $300 for three Units. Each subscription consists of a 20% Convertible Note that matures twenty-four months from the date of issuance, it is convertible at a 15% discount into the public market paying interest thereon from the Closing Date, at the rate of 20% per annum, payable at maturity.







(Example)

Investing $300 now will give you 3 units. Each year the investment will grow with 20% interest, after the first year your holding will be valued at $360, at the end of the second year, it will be valued at $432 (20% interest). At maturity date (24 months after closing), let's assume that the price for a share of common stock will be $10. Because of the 15% discount, your investment will be converted at $8.5 per shares (instead of $10), your $432 note will get converted into 50.82 (50/8.5) shares of common stock valued at $500.









In the same scenario, if you would have waited to buy the shares after the two years’ period (staying with the same example of $10 per share at that time) the $300 invested would buy only 30 shares.





At a later date, QwikLeaf may issue additional shares for needed capital to grow. Shareholders’ ownership percentages may be reduced but the value of the company will have increased to offset the lower ownership percentage. We have no intentions of confronting investors with a “down round” by offering stock at a later date at a price that is lower than the issue price.









The QwikCube and QwikLocker have more favorable economics then delivery due to scheduling logistics, traffic conditions, and the amount of employee effort it takes to complete a traditional delivery sale cycle. When a customer orders cannabis for delivery business owners prepackage the order, then place it in a queue for delivery. The transfer of product from one employee to another employee to the customer leaves a high margin for error and time wasted resulting in reduced profits. Profitability from cannabis retail stores employees doing deliveries is significantly lower than that of employees working as cashiers for in-store sales.





For traditional in-store pick-up, customers must enter the store and verify their identity by presenting identification. Customers then typically must wait (depending on current demand) for the opportunity to reach check-out. This waiting experience is similar to what customers experience in a busy retail or grocery store. In many states such as Michigan, licensing regulations restrict cannabis retailers from allowing more than a few customers into the product selection and purchase area at any given time.





The QwikCollect platform allows customers to order online and select QwikCollect as an option for pick-up. Customers can schedule a window of time for when they would like to pick-up their order. Through using the QwikCloud application, cannabis store managers easily know when to have employees place orders inside of a QwikLocker or QwikCube.





By implementing the QwikCollect platform, online sales require less time from cannabis store employees. The QwikCollect platform removes the check-out step associated with online ordering. Customers can pick-up orders without the assistance of a store employee. The addition of self-check-out features inside cannabis retail stores allows business owners to reclaim the wasted time from store employees checking-out customers.





QwikLeaf will provide technical support along with training to business owners and employees. In the event of technical difficulties related to the QwikCollect platform, an explanation/troubleshooting guide will be available to both customers and business owners. Business owners and employees will also have access to a troubleshooting and help hotline where questions will be resolved by a QwikLeaf employee.





In the event of high demand resulting in a line queue of customers, business owners can easily scale by add additional hardware to the platform. We anticipate the majority of check-outs to completed online via cellphone. A major feature of the QwikCollect platform is the fast speed in which an order can be picked up from a QwikLocker or QwikCube at the cannabis store. By skipping the product gathering and check-out steps, picking up an order from a QwikLocker or QwikCube is much faster and efficient than traditional check-out.





The QwikLocker is made of high-grade steel making forced entry difficult. To counter vandalism and theft, the QwikLocker will be secured to the foundation and walled structure of the cannabis store. Attaching the QwikLocker physically to stores allows for overlapping with existing security features at the cannabis business. Cannabis store owners can easily utilize already required video surveillance and security alarms. Future partnerships and software development phases will allow QwikLeaf opportunities to implement unique internal security features into the QwikCollect platform.





Storefront space required for a QwikLocker or QwikCube is similar to that of two standard sized soda pop vending machines placed side by side. The dimensions of the QwikLocker will be customizable in the future.







Although QwikCollect only stores are anticipated, adding the QwikCollect platform to an existing cannabis retail store will still allow for customers to check-out as they had done so before QwikCollect implementation.





QwikLeaf is developing our technology for retailers to implement autonomy in stores. The QwikCollect platform becoming popular will lead retailers looking to maximize benefits from the platform to create separate or conjoining areas for click-and-collect only check-out. We anticipate many retailers will implement our platform into future store designs, many of which may be QwikCollect only locations.





The focus of product development at QwikLeaf is to innovate instead of adapt. Our drive is centered on producing scalable products that are revolutionary to the industry. Understanding the scalability of the individual components comprising QwikLeaf will allow us to strategize for market share dominance. Reaching the early majority of customers using the internet to purchase cannabis for pick-up will instill a lasting method of simplicity. Lowering cannabis retailers overhead while adding revenue will incentivize growth.





Part of our strategy for long term success also revolves around our ability to rapidly change and to focus on returns on talent rather than returns on capital alone. This perspective for building the company and team will lead to long term value and success.











Sincerely,

Neil Biafore

CEO | QwikLeaf

investor@qwikleaf.com