November 2019 Update

Hello again KADI Botanical Inc. Shareholders,

It has been over 4 months since our last update, and we have a number of very exciting milestones to report on with significant progress on the CEPE technology development.

Extract to Oil

We have also been working towards an in-line process that can take the "milk" (crude extract), as it is produced in the CEPE process, remove the water and bottle the resulting oil, all in one operation if desired. This has resulted in a new device design that is intended to become a part of the industrial scaled CEPE system (for use if desired) and is now approaching the final design stage. We have also had a professional patent search performed on our new “milk to bottled oil” device, which has been cleared for the patenting process with no interfering prior art.

A prototype of the “Botanical Milk to bottled Oil” device is presently in the procurement and construction phase, with target initial test date of January 2020 in conjunction with the existing upgraded CEPE lab unit.

Industrial Scaled CEPE System

We anticipate starting the construction of the industrial scaled system in the first quarter of 2020 and anticipate testing the system during the second quarter of 2020.