W h at c o m p a n i e s l o o k i n g t o a d d C B D p r o d u c t s t o t h e i r b r a n d n e e d t o k n o w b e f o r e t h ey b u y.

866 .612.6612 W W W. F E N B I OT E C H .C O M INFO@FENBIOTECH.COM

L E G A L C B DC O M E S F R O M F E N B I OT E C H

F E N B i o t e c h 2019

T o ta l T H Ci s t h e k e y to determining legal CBD and i t s tarts in the hemp plant .

St at e s w i t h p i l o t p r o g r a m s a l l o w e d t h e s a l e o f h e m p -d e r i v e d p r o d u c t s t h at f e l l w i t h i n t h e 2014 T H C l i m i t at i o n s , a n d t h e r i s e i n C B D p r o d u c t s b e g a n . Af t e r t h e p i l o t p r o g r a m s r a n f o r a f e w y e a r s , t h e f e d e r a l g o v e r n m e n t l o o k e d at t h e r e s u l t s a n d d e t e r m i n e d t h at i n d u s t r i a l h e m p i s a v i a b l e c o m m o d i t y, b u t b e f o r e t h ey l e g a l i ze d i n d u s t r i a l h e m p c u l t i v at i o n f o r t h e m a s s e s , s o m e c h a n g e s t o t h e l aw w e r e n e e d e d .T h r o u g h t h e c o u r s e o f t h e i n i t i a l h e m p p i l o t p r o g r a m , t h e s t at e a n d f e d e r a l g o v e r n m e n t s l e a r n e d a f e w t h i n g s . T h ey s aw t h at a l o t o f t h e p r o d u c t s c o m i n g t o m a r k e t c o n t a i n e d m o r e T H C t h at t h e i n i t i a l t e s t r e s u l t s s h o w e d . W h y ?D E C A R B OX Y L AT I O N .T h e c a n n a b i s p l a n t s p r o d u c e m o r e t h a n 80 k n o w n p h y t o c a n n a b i n o i d s . C B G A i s t h e f i r s t m a i n c a n n a b i n o i d t h at f o r m s i n t h e p l a n t . F r o m t h e r e , C B G A c o nv e r t s t o o t h e r c a n n a b i n o i d s , l i k e T H C A a n d C B DA . T h e s e a r e p r e c u r s o r s t o T H C a n d C B D. T h e a c i d b o n d d r o p s f r o m t h e T H C A a n d C B DA , o v e r t i m e o r a c c e l e r at e d b y u s i n g h e at , a n d c o nv e r t s t o m o s t o f t h e T H C A a n d C B DA t o T H C a n d C B D. T h i s p r o c e s s i s c a l l e d

d e c a r b o x y l at i o n . T h e f e d e r a l g o v e r n m e n t t o o k t h i s k n o w l e d g e a n d i s s u e d t h e 2 018 A g r i c u l t u ra l I m p rove m e n t A c t , w h i c h s t at e d t h at “ t h e t e r m ‘ h e m p’ m e a n s t h e p l a n t C a n n a b i s s at i v a L . a n d a n y p a r t o f t h at p l a n t , i n c l u d i n g t h e s e e d s t h e r e o f a n d a l l d e r i v at i v e s , ex t r a c t s , c a n n a b i n o i d s , i s o m e r s , a c i d s , s a l t s , a n d s a l t s o f i s o m e r s , w h e t h e r g r o w i n g o r n o t , w i t h a d e l t a -9 t e t r a h y d r o c a n n a b i n o l c o n c e n t r at i o n o f n o t m o r e t h a n 0 .3 p e r c e n t o n a d r y w e i g h t b a s i s . ” ( S E C . 297 A ) T h e b i l l t h e n g o e s f u r t h e r t o s t at e t h at t h e s t at e s m u s t ‘ ‘ ( B ) a p ro c e d u re f o r t e s t i n g , u s i n g p o s t - d e c a r b ox y l a t i o n o r o t h e r s i m i l a r l y re l i a b l e m e t h o d s , d e l t a - 9 t e t ra h yd ro c a n n a b i n o l c o n c e n t ra t i o n l e ve l s o f h e m p p ro d u c e d i n t h e S t a t e o r t e r r i t o r y o f t h e I n d i a n t r i b e . ” ( S E C . 2 9 7 B ( i i ) ) .T h i s m e a n s t h at t h e f e d e r a l g o v e r n m e n t k n o w s t h at m o s t o f t h e T H C A w i l l c o nv e r t t o T H C a n d w a n t s t h e t e s t r e s u l t s t o r e f l e c t t h e t o t a l T H C t h e p l a n t w i l l p r o d u c e , n o t j u s t w h at i t h a s p r o d u c e d at t h e t i m e o f t e s t i n g . To t a l T H C t e s t i n g h a s b e e n a d o p t e d b y t h e m a j o r i t y o f t h e c u r re n t s t a t e p i l o t p ro g ra m s f o r 2 019 .

T h i s c h a n g e a l s o a p p l i e s t o p r o d u c t s t h at w e r e d e e m e d l e g a l f o r s a l e u n d e r t h e p r e v i o u s l aw b u t c o n t a i n m o r e t h a n 0 .3 % t o t a l T H C . T h e l aw s e e s t h e m a s m a r i j u a n a - d e r i v e d a n d i l l e g a l f o r i n t e r s t at e c o m m e r c e a n d b a n k i n g . T h e r e a r e a n u m b e r o f c o m p a n i e s e i t h e r c h o o s e t o i g n o r e o r d o n ’ t u n d e r s t a n d t h e i m p o r t a n c e o f t o t a l T H C r e s u l t s a n d p r o d u c e p r o d u c t s w i t h l e v e l s a b o v e t h e l e g a l l i m i t . H ow e ve r, t h e re a l i t y o f t o t a l T H C i s c l e a r. I n A u g u s t 2019, a N e v a d a c o m p a n y p u r c h a s e d C B D f r o m a n o t h e r s t at e , c o n t a i n i n g m o r e t h a n 0 .3 % t o t a l T H C . T h e s t at e o f N e v a d a s e i ze d t h e s h i p m e n t , a n d t h e c o m p a n y l o s t $ 10 0,0 0 0.0 0 i n p r o d u c t .

In 2014 the federal government legalized the growth of cultivation of industrial hemp on a small scale with state pilot programs. The hope was to determine the economic feasibility and challenges of industrial hemp as an agricultural

commodity. One of the few rules mandated by the federal government was that the plants could not contain more than 0.3% delta 9 THC.

The 2018 Agricultural Improvement Act changed THC testing to account for TOTAL THC.

T h i n k y o u k n o w t h c ?r e a d t h i s .

Industrial Hemp Pilot Program Fit For Commerce Certificate

625 ROBERT STREET NORTH, SAINT PAUL, MN 55155-2538 WWW.MDA.STATE.MN.US

625 ROBERT STREET NORTH, SAINT PAUL, MN 55155-2538 651-201-6000 or 1-800-967-2474 WWW.MDA.STATE.MN.US In accordance with the Americans with Disabilities Act, this information is available in alternative forms of communication upon request by calling

651-201-6000. TTY users can call the Minnesota Relay Service at 711. The MDA is an equal opportunity employer and provider.

FEN BIOTECH LLC 6111 HIGHWAY 10 NW STE 300 RAMSEY MN 55303 License Number: 20200930 This certificate concerns the test results for the industrial hemp plant sample number 072319.202 . The sample was taken at your licensed hemp Grow Location

by an MDA inspector on 7/23/19. As defined in Minnesota Statue 18K.02, the delta-9 tetrahydrocannabinol (THC) post-decarboxylation (Total Potential THC) content is required to be at or below 0.3% on a dry weight basis. The THC test result for your sample is listed below.

Sample Number Variety Name Total Potential THC= D9 THC + (THCA*0.877)

072319.2020 0.0938% The sample taken at your hemp grow location was tested for THC concentration and found to be in compliance with MS Chapter 18K.02. The industrial hemp material harvested from this specified lot is fit to enter the stream of commerce. Law enforcement officials or individuals with questions should contact: DOUGLAS SPANIER, MDA Attorney, (651) 201-6166, Douglas.Spanier@state.mn.us ANTHONY CORTILET, Noxious Weed and Industrial Hemp Program Supervisor, (651) 201-6538, Anthony.Cortilet@state.mn.us MARGARET WIATROWSKI, Industrial Hemp Program Coordinator, (651) 201-6123, Margaret.Wiatrowski@state.mn.us

F E N B i o t e c h 2019

F E N B i o t e c h 2019

C B D p r o d u c t s a n d c o m p a n i e s h av e ex p l o d e d o n t o t h e m a r k e t i n t h e l a s t f e w y e a r s . B u s i n e s s e s l o o k i n g t o a d d

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i s T OTA L T H C .