June 2020 Update

Hello again KADI Botanical Inc. Shareholders and newsletter subscribers.

We are still here going strong and hope you and your families are also still in reasonable shape given the extended Covid-19 situation.

We at KADI Botanical Inc. have been making very good progress amidst the biggest distraction in modern day history, and we have some very exciting developments to share with you.

Patent Activity

As we indicated in our March update, the first patent granted in Canada on March 31, 2020, we are expecting imminent grant of patents in Lebanon (which has been allowed) and Taiwan which had no prior art objections and also is expected to be allowed very soon.

We have initiated new patent applications in Canada and the US which are additional to several existing patent applications that are pending worldwide.

Patents that are granted strengthen our IP (Intellectual Property) position adding value to the company and ultimately to KADI shareholders. This is why public companies make a big splash about patents they are granted.

Phase II CEPE prototype

The Phase II CEPE we discussed in our last report that will demonstrate the capabilities of the industrial machine at a smaller scale, is well underway. You will notice the new design rendering of the complete phase II CEPE system now on the website where the original prototype photograph used to be.

We will have a real photograph of the complete system by our next report issue because the unit is well into its assembly stage (all components have now been received). The 3D model depicted in the image actually represents about 200 individually designed component drawings and about 400 individual total parts. This unit was completely custom designed by KADI Botanical Inc.’s technical team.

Lab Prototype CEPE update

In our last report we indicated some improvements to the lab prototype that gave us the capability to produce botanical oil directly from botanical material using the CEPE process. We have taken the improvements several steps further and now can report the direct production of other products from the CEPE prototype.

We have successfully demonstrated the repeatable production of A Vegetable Glycerin (VG) basedconcentrate Syrup directly from the CEPE unit, This is a very exciting development. This CEPE produced VG based Syrup is produced using food grade VG (99.7% pure) as the carrier fluid and dried plant biomass as the feed stock, no other ingredients are used, and the VG never comes into contact with the botanical material.

The really exciting features of the CEPE produced VG Syrup product are as follows:

- The CEPE VG syrup can be ingested directly having a taste very similar to Honey
- The CEPE VG Syrup mixes completely in water or water-based drinks to make really excellent infused beverages
- The CEPE VG Syrup can be mixed with food and candies of many different types
- The CEPE VG Syrup can be mixed with flavoured PG (Propylene Glycol) for use in various e-cigarette type appliances
- The CEPE VG Syrup can be applied topically as an infused ointment or cosmetic

The development of this directly produced infused VG syrup is a very exciting addition to the capability of the CEPE process and we at KADI Botanical believe will add untold value to the CEPE process and its potential products, and by extension its value.

The versatility of the single CEPE machine is very exciting.

MCT Oil Product

WE have also demonstrated the use of Medium-Chain Triglycerides Oil (MCT oil) as a carrier fluid in the CEPE, which can be used to directly produce tinctures or medicinal/pharmaceutical grade products

We plan to be demonstrating the capabilities of the phase II CEPE to interested parties by about the end of the summer 2020 and aim for a fully operational industrial sized unit by the end of the year.

Investor News

The response to our fundraising efforts has been very encouraging considering the investment climate in these times, and the Offering Memorandum subscriptions are well over halfway completed to our target of $500,000.

We have extended the closing date of the 25 cents (per share) offering out to end of July 2020 to compensate for the slowing of the economy due to the covid-19 issues (please pass the word around).

Most of the proceeds of this fundraising will be used to reach our year end goals of a completed industrial scale CEPE unit, targeted at demonstrating processing industrial quantities of botanical feedstock on a daily basis.

For subscription details of this investment opportunity please contact us via our website at: http://oxy.f11.myftpupload.com/contactus

Subscribe to our Newsletter

LEGAL DISCLAIMER

The content of this website is owned by KADI Botanical Inc. (“KADI”) and is protected by copyright law, as a collective work and compilation, both in Canada and abroad.

This website is designed for information purposes only. KADI has taken all reasonable care in producing and publishing the information contained in this website. The information is taken from sources believed to be reliable, and the information is believed to be accurate at the time it is posted to the website. However, there is no way to ensure that the information is accurate at any particular moment in time. Material on the site may still contain technical or other inaccuracies, omissions, or typographical errors, for which KADI assumes no responsibility. KADI does not warrant or make any representations regarding the use, accuracy, completeness, reliability or validity of any claims, statements or information on this site. The information is not designed to provide financial, tax planning, accounting, investment, business or legal advice, in any way whatsoever. Furthermore, the information in no way should be construed or interpreted as, or as a part of, an offering or solicitation of securities. Investors are advised to discuss any trading with a registered securities broker or personal finance professional prior to investing. KADI and its officers, directors, subsidiaries, affiliates, contractors, agents, employees, licensors, and/or third-party content providers are in no way responsible or liable for any damages whether they be direct, indirect, consequential, incidental, special, punitive, exemplary or general damages, contribution or indemnity, of any kind whatsoever, however caused, including loss of profits, in connection with, caused by or arising from the use or non-availability of this website, or reliance on the information contained herein, the links to other sites as contained in this website or any information on such sites, or any delays, inaccuracies, errors or omissions in the information contained on this site. This limitation of liability shall hold even if KADI, its subsidiaries, affiliates, contractors, agents, employees, licensors, and/or third party content providers were warned of the possibility of damages referred in this disclaimer. No securities commission or other regulatory authority in Canada or any other country or jurisdiction has in any way reviewed or approved this information and no representation or warranty is made by KADI to that effect. KADI is not responsible for the content of sites that can be reached through links on this site.

Forward-looking Statements

Information set forth on this website may contain forward-looking statements. Forward-looking statements are statements that relate to the future, not past events. In this context, forward-looking statements often address a company’s expected future business and financial performance, and often contains words such as “anticipate”, “believe”, “plan”, “estimate”, “expect” and “intend”, statements that an action or event “may”, “might”, “could”, “should”, or “will” be taken or occur, or other similar expressions. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievement expressed or implied by such forward-looking statements. Such factors include, among others, the following risks: risks associated with project development; the need for additional financing; reliance on key personnel; the potential for conflicts of interest among certain officers, directors or promoters with certain other projects. Forward-looking statements are made based on management’s beliefs, estimates and opinions on the date that statements are made and KADI undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change. Investors are cautioned against attributing undue certainty to forward-looking statements.

KADI reserves the right to modify this disclaimer without prior notice by posting modifications to this website.