June 2021 Update

Hello again, KADI Botanical Inc. Shareholders and newsletter subscribers.

We trust you and your families are staying healthy well and still keeping safe. It looks like we are approaching the end of this very difficult time at last.

We have some exciting news about process demonstration, product testing and progress on the industrial unit.

Phase III CEPE® Industrial

The assembly of the Phase III industrial unit is now underway in Nanaimo, BC. We plan to show photographs of the system progress in our next news update.

CEPE® Technology Demonstration Plans

As we indicated in our last news update, we planned to have a professional video production made which will showcase the CEPE® Technology and its potential.

The shooting of the video for this production was completed in our lab on May 14. Presently the video is being edited and mixed with animations of the internal functioning of the CEPE® II mini-industrial machine (news which we have not previously disclosed) and our unique VG (vegetable glycerine) carried product, useful for making infused beverages and a multitude of edible products. The voice over scripts, which have also been completed, provide a point-by-point description of the process. We expect the complete production to be finished by the end of June.

CEPE® Product Testing

We previously sent samples of our CEPE products out to 5 testing laboratories in order to evaluate the quality of service and test method compatibility of each laboratory.

We selected one of the laboratories (Sigma Analytical Services Inc.) as our primary testing service because of the high quality, test compatibility and consistent professional approach we observed.

Test Results:

All products for testing were made in the CEPE® II mini-industrial machine.

The testing performed was for Potency; Pesticides; Heavy Metals; Mycotoxins; Microbial Contamination: E.coli; Salmonella; TAC; and TYMC.

We were very pleased to see the official testing Pass grade on all the products provided for all test categories.

For the tested compounds, efficiency was measured at 80% to 90% depending on the desired botanical product tested.

One of the most fascinating and exciting features of the CEPE® Process is that the extract content (including the VG products) is a direct reflection of the target botanical compounds contained in the biomass used, such that the minor compounds often lost in other refining methods are preserved in the CEPE® process extracts. This method produces unique oils with a rich spectrum of minor components closely matching the chemical makeup of the biomass used in the process.

Separate experimental tests using contaminated biomass have shown a very significant reduction (at least 78 times) in total Heavy Metal contamination during the extraction process as well as total elimination of microbial contamination previously evident in the biomass (totally absent from the extract). This a very pleasing result.

Professionally Prepared Financial Plan

We are very near completion of a financial plan for KADI Botanical Inc. which has mapped out the potential of the very exciting future for our company. We plan to share more about this very exciting plan with shareholders soon. Please stay tuned!