January 2021 Update

Hello KADI Botanical Inc. Shareholders and newsletter subscribers.

We trust you and your families are well and keeping safe in these continuing rough times, the light at the end of the tunnel is now clearly visible with the beginning of Vaccine distribution, Hang In There.

Phase III CEPE® Industrial Design

We are very proud and pleased to show the significant progress made on the Industrial CEPE®III Design and the progression of the CEPE® technology below.

The image shown is a computer model based on actual design drawings rather than being simply a cartoon. We have received approximately 70% of the major components needed for the assembly, many of which had to be custom manufactured throughout Canada and the USA. The complete system will be assembled in Nanaimo B.C.

As you will notice, we have decided to house the Phase III CEPE® Industrial Unit within a transport trailer. To our knowledge, no current industrial scale extraction technology is able to be this mobile. Not only does this show how much smaller of a footprint this technology is, but will also enable us to do extractions on-site, wherever that may be.

CEPE® Technology Demonstration Plans

We continue to make positive progress on our journey to the target of demonstrating the CEPE® technology to potential end users, despite the challenges we are all having to face with the COVID 19 pandemic.

The Phase II CEPE® Mini Industrial Unit has now been located in its own dedicated room where a variety of testing has been on going in support of the Phase III CEPE® industrial scale design. Because we are unable to do face to face demonstrations currently, we are in the process of having a professionally produced video made which will showcase the CEPE® Technology and its potential within the botanical extract industry. This way, KADI Botanical Inc. can still engage with potential customers of the technology to educate and demonstrate. Although, once we are again able, it is our intention to use the Phase II CEPE® Unit to provide potential customers a hands on demonstration of the technology prior to the Phase III CEPE® Unit being ready.

CEPE® Product Testing Plans

The Company is now in the process of sending out preliminary samples of the VG (Vegetable Glycerin) infused product and its derivatives (produced in our lab using CEPE® II) to several professional testing laboratories. Based on the quality of service and accuracy of results we will select at least one of these laboratories to perform more detailed independent testing of our product. This will provide qualified test results for potential clients of the technology to evaluate with confidence.

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