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Virtudes Labs Inc.

Jamaican Grown with Virtue
INVEST

91dd20hh

Time left to invest

min$10k

max$250k

funding goal 

$10k - $250k

funding goal 

Regulation CF

exemption used 

Regulation CF

exemption used 

$5,000,000

pre money valuation 

$250.00

min investment 

$1,750

amount committed 

6

investors 


Security Type
Common Stock
non-voting
$0.50 per share

Pitch

Who are we

Virtudes is slated to be the first vertically-integrated (producer and processor) of high-grade CBD oil from Jamaican farms. Owned by American shareholders, Virtudes is incorporated and registered in Jamaica. The Company recently acquired over 100 acres of land in Jamaica and is expected to have its first hemp crop during 2020. 

 

Hemp grown in lush Jamaican climate is the foundation for an organic and natural product that we audaciously aim to provide to the world. From seed to sale, we pledge to produce top-quality cannabis outputs in Jamaican farms with the integration of traditional and modern cultivation styles. The year-round sunshine and steady rainfall creates an ideal environment for flowers to produce industry-leading, outdoor-grown medical cannabis.

 

 

As a global company, Virtudes is navigating a movement towards establishing credibility and value to one of the world’s more useful plants. With strong medicinal benefits, Cannabis-sativa (commonly known as hemp), is breaking down boundaries within every international industry.

 

At the intersection of experienced farming practices and centuries of cannabis cultivation knowledge, Virtudes is prepared to provide a high-end cannabis product that will also bring value back into its community. Virtudes is fully dedicated to being involved in the extensive research and development of the benefits and advancements of cannabis plants and their byproducts for both daily and medicinal health.

 

Problem

The hemp industry is booming, and while hemp has many uses, CBD makes up roughly one-quarter of CBD product sales in the US. As of 2017, almost 60% the CBD products sold in the US were imported from China or India. 

 

Global Supply

  • Exports of cannabis oils reached US$2.4 billion in 2017, reporting a growth of 19.1% compared to 2013. 
  • Among continents, Asia generated US$1.2 billion from the export of cannabis oils, accounting for the 51.4% of the global trades. In second place, Europe was responsible for 26.6% of global exports.
  • Among single countries, China exported US$791 million worth of cannabis oils in 2017, which represent 32.9% of global exports.
  • The US sourced more than 50% of cannabis oil imports from China and India in 2017.

 

Global Demand

  • U.S. total sales from hemp-based products reached US$820 million in 2017. US$190 million were generated from CBD products.
  • Of the US$190 million, the Personal Care segment accounted for approximately 23% of the sales (US$137 million). While the Industrial Applications segment was led by the Automotive category, Snack manufacturer were the largest consumer of CBD within the Food sector.
  • According to the Hemp Business Journal, sales are expected to grow to about US$1.9 billion by 2022 following the fall of legal and regulatory barriers.
  • Among the segments that make use of CBD product, Industrial Applications is expected to take the lead by 2022 with over US$600 million of expenditure in hemp-based products. 
Solution

Cannabis was introduced to Jamaica in the 1850s-1860s, migrated over by indentured servants who imported it from India during the British rule. While cannabis has been customary in Jamaica for centuries, it was not until the 1960s that Jamaican farmers started growing it and selling it to Europe. Unlike other countries that are growing CBD, Jamaica is perfectly placed for this growing trend for many reasons:

 

  • Jamaica has the optimal tropical weather to grow organic hemp; experiences heavy rainfall throughout the year, peak season being from August to November, in Darliston – therefore the Company can produce 4 crops per year (while in most of the U.S. there can be only one crop per year outdoors). With greenhouse technology, the yields can be double or more.
  • Centuries of knowledge with local farmers.
  • Cheaper farming labor than anywhere in North America.
  • Jamaica has had legalized cannabis as of April 2015 with the first dispensary having opened March 2018. Since the opening of the first dispensaries, the island has seen a rapid increase in the number of dispensaries that have opened doors, such as Kaya, Epican, and Island Strains.
  • Accessible farmland to increase acreage over time.
  • Jamaica has practically no restrictions for the hemp industry and encourages this use for its farmland because it is less-erosive and soil-regenerative.

 

Jamaica’s Global Momentum

  • Jamaica has become a magnet for Cannabis companies: In September 2018, Aphria, one of three “golden boys” of Canadian Cannabis, bought a 49% stake in a grower in Jamaica with 22 employees as part of a C$300m ($226m) deal.
  • At least five Canadian cannabis companies are making inroads into Jamaica: Canopy Growth, Aphria, The Green Organic Dutchman, Global Canna Labs, and the Jamaican Medical Cannabis Collective. All are involved in either cultivation, retail, or both.
  • In Sept. 2018, Jamaica-based Timeless Herbal Care exported the island’s first shipment of cannabis oil, to Canada.

 

Foreign Investment Public Policy

  • Since going legal in 2015, Jamaica has dispensed almost 30 licenses to cultivate and sell cannabis. Approximately 170 applications have been conditionally approved, with hundreds more in the queue. Most of those licenses, she said, have a significant amount of foreign investment attached to them.

 

Achievement & Traction

Customers & Strategic Partnerships

  • Virtudes is in the middle of negotiations with a US-based company with over 25 years of experience farming hemp that also produces and sells high-quality genetics proven to produce high-quality yields in tropical climates. This company has also proposed a partnership agreement to consult the entire production of the crop and provide extraction and offtake arrangements.  
  • Virtudes is already in advanced talks to sell all its biomass, CBD, and refined oil to a select number of customers in the industry from the US, Australia, the UK, and Jamaica.
  • The Company is currently in talks with an avocado grower in Mexico that wants to expand into the Cannabis business.
  • Virtudes has received a proposal for MOU regarding exclusive rights to distribution with US based-hemp company for Epilepsy research.

 

Land, Facilities, & Equipment

Land

Virtudes currently has 136 acres of owned land in Jamaica that will be seeded by the beginning of the 1st quarter 2020 and is looking to acquire an additional 165 acres adjacent to the current farm location. Initially, the seeds are being imported from the U.S. from reputable and registered hemp seed companies identified after a considerable period of research by the Management and Genetics team.

Video of the Land

 

Facilities

Virtudes currently has a completed greenhouse structure measuring 100 feet by 30 ft that is equipped with fans, lights and all grow materials needed. There is an office on-site for administrative and security staff. Virtudes plans to construct three additional greenhouses, a dry house, and a processing facility/storage on-site. There are also options for mobile processing and extraction.  Virtudes is committed to sustainability and producing highly efficient farms and facilities to complete production from the greenhouse through extraction and final packaging.

  

Equipment

High-quality ethanol extraction and distillation designed machinery with pharmaceutical and GMP/ISO standards are some of the key features of the benefits of the machines selected by management. Efficient harvesting and drying techniques and equipment from the United States.

 

Licenses / Permits

Growing and processing marijuana and hemp is legal in Jamaica. Virtudes obtained the Jamaican Ministry of Agriculture’s Import License for Seeds from the United States. All other Jamaican permits required to operate as a hemp company cultivating in Jamaica have been obtained.

 

Market

Market – Supply Analysis

Global Supply

  • Exports of cannabis oils reached US$2.4 billion in 2017, reporting a growth of 19.1% compared to 2013.
  • Among continents, Asia generated US$1.2 billion from the export of cannabis oils, accounting for the 51.4% of the global trades. In second place, Europe was responsible for 26.6% of global exports. 
  • Among single countries, China exported US$791 million worth of cannabis oils in 2017, which represent 32.9% of global exports.
  • The US sourced more than 50% of cannabis oil imports from China and India in 2017.

  

Market – Demand Analysis

Global Demand

  • U.S. total sales from hemp-based products reached US$820 million in 2017. US$190 million were generated from CBD products.
  • Of the US$190 million, the Personal Care segment accounted for approximately 23% of the sales (US$137 million). While the Industrial Applications segment was led by the Automotive category, Snack manufacturer were the largest consumer of CBD within the Food sector. 
  • According to the Hemp Business Journal, sales are expected to grow to about US$1.9 billion by 2022 following the fall of legal and regulatory barriers.
  • Among the segments that make use of CBD product, Industrial Applications is expected to take the lead by 2022 with over US$600 million of expenditure in hemp-based products. 

 

 

 

CBD Sales Growth

CBD sales expected to grow to $1.9B by 2022, a 60% increase over the next three years.

 

 

Competition

Unparallel Competitive Position

  • The cost of labor is exceptionally cheap when compared to its European & North American counterparts. It’s nearly 80% less than the rest of the world.
  • Outdoor cultivation carries significantly lower production costs compared to greenhouses and indoor growing facilities which must be lit, ventilated, climate controlled and maintained at the expense of the grower. 
  • Optimal tropical weather to grow organic hemp; experiences heavy rain fall throughout the year and can produce 4 crops per year (while in most of the U.S. and Canadian companies there can be only one crop per year $0.71 outdoors)


Business Model

Some research indicates that Cannabidiol (“CBD”) has been shown to have strong homeopathic and alternative therapeutic relief in areas such as inflammatory and chronic pain, anxiety and depression, epilepsy, and neurological conditions. CBD is in everyday products such as toothpaste, shampoo, and body lotions; it is even ingested with certain health & energy drinks, pill-form tablets, and oil tinctures. With the Company’s ties to the U.S. and the passing of the Farm Bill in December 2018, which legalized hemp and made it an agricultural commodity nationwide, and as a fully integrated operation, Virtudes is positioned to gain market share in the supply of hemp flower, biomass, CBD and other derivatives worldwide.  Not only will Virtudes grow and process its own biomass and export the oil in various quality grades, but it will eventually create its own brands and distribution channels. 

 

Revenue Streams

  • Hemp biomass -- the organic matter that can be converted into a multitude of high CBD oil products. Biomass is sold on average at US$15-20 per pound and flower currently about US$150-200 per pound.
  • Purified oil -- CBD oil further distilled, light in color like honey purported to have more benefits. Purified broad-spectrum oil is sold on average at US$3,100 per kilogram depending on lab testing and results. 

 

Team

Jamiel holds dual American and Jamaican citizenship. Jamiel spent over a decade as a contract field engineer for Erikson, Nokia, and Texas Instruments. He founded Dualat in 2014 with partners as an import-export of commodities to clients around the world and sold his shares and created TMS Global Solution (www.tmsglobalsolution.com) on his own to do the same business,

based in Dallas with an additional office in Dubai. He currently oversees trading activity at TMSGS of US$15 million per year. He has also created his own brand of laundry detergent, Blue Ribbon. In addition, Jamiel developed expertise in Jamaican cannabis farming through family connections, as one of his uncles is an active farmer with extensive experience (over 40 years) in the United States, Canada and the Island.

 

 

Farrah attended The University of Texas at Dallas where she majored in Biology for two years taking courses including General Chemistry, Physics and Organic Chemistry. She completed her Bachelor of Arts degree with a major in Interdisciplinary Studies focusing on social and behavioral science, communication along with US history and government. In 2013, Farrah worked at The Zendeh Del Law firm as a case manager and paralegal assisting clients establish qualification and approval for disability from the Social Security Administration. In 2016 she obtained her real estate agent license and joined the National Association of Realtors and Collin County Association of Realtors. She has spoken at the April board meeting in Kingston for the Jamaican Agricultural Society on the benefits of medicinal hemp. Farrah has recently relocated to Jamaica to oversee Virtudes and is forging strong alliances with industry leaders and business stakeholders to grow the company’s strategic planning and development.

 

Use of Funds

Updates


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Documents

Start-up Valuation View Download
Offering Statement View Download

Other Disclosures

Read the Form C filed with the SEC for other important disclosures, like financial statements, Directors, Officers, shareholders with more than 20% of voting rights, and more.
Use of Proceeds
The allocation of the use of proceeds among the categories of anticipated expenditures represents management’s best estimates based on the current status of the Company’s proposed operations, plans, investment objectives, capital requirements, and financial conditions. Future events, including changes in economic or competitive conditions of our business plan or the completion of less than the total Offering, may cause the Company to modify the above-described allocation of proceeds. The Company’s use of proceeds may vary significantly in the event any of the Company’s assumptions prove inaccurate. We will retain broad discretion in the allocation of the net proceeds from this Offering, reserve the right to change the allocation of net proceeds from the Offering as unanticipated events or opportunities arise and could utilize the proceeds in ways that do not necessarily improve our results of operations or enhance the value of our Common Stock. Additionally, the Company may from time to time need to raise more capital to address future needs that we may not have anticipated as of the date of this Offering Circular.
Special Note Regarding Forward-Looking Statements
This offering contains forward-looking statements within the meaning of the federal securities laws. We caution investors that any forward-looking statements presented in this offering, or which management may make orally or in writing from time to time, are based on the Company’s beliefs and assumptions made by, and information currently available to, the Company. When used, the words “anticipate,” “believe,” “expect,” “intend,” “may,” “might,” “plan,” “estimate,” “project,” “should,” “will,” “would,” “result” and similar expressions, which do not relate solely to historical matters, are intended to identify forward-looking statements. Such statements are subject to risks, uncertainties and assumptions and are not guarantees of future performance, which may be affected by known and unknown risks, trends, uncertainties and factors that are beyond the Company’s control. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or projected. While forward-looking statements reflect the Company’s good faith belief when made, they are not guarantees of future performance. The Company expressly disclaims any responsibility to update forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Moreover, we operate in a very competitive and rapidly changing environment, and new risks emerge from time to time. It is not possible to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this offering may not occur, and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. We undertake no obligation to revise or publically release the results of any revision to these forward-looking statements, except as required by law. Given these risks and uncertainties, prospective investors are cautioned not to place undue reliance on such forward-looking statements.
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