Investor Presentation

November 2018

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Our Vision
“Create a brighter future for our
planet and stimulate American
manufacturing by introducing wood
substitute products with lower
ecologic footprints than timber
alternatives.”

Fibonacci strives to be a catalyst for

a cultural shift to sustainable
materials and lifestyle by using the
algorithm of a tree, reverse
engineering the natural growth
cycle, and utilizing bio-mimicry to
transform hemp fibers and protein
based bonding agents to disrupt the
$60 + billion wood industry.

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Our Story
The algorithm of a tree is the foundation of life. Reverse engineering
the natural growth cycle and utilizing bio-mimicry, plant fiber and
protein based bonding agents can make a beautiful eco-friendly wood
substitute.

S12 * Tx = WS

The idea of using hemp derived from experiences while working for a
bamboo flooring company. Greg and his technology team have spent
over 10 years adapting the bamboo process to different plant species
including, Eucalyptus, HEMP and Tasmanian Oak. HempWood IP is
100% owned by Greg.

Our mission is to benefit humankind by removing the devastating

effects of deforestation and help the farmers of the world by
disrupting the $60 + billion wood industry.

Simplified: its pretty cool to turn hemp into wood 

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 Strategy
Stage 1: 2014-18-$300K complete, founder & family
Complete initial product development and file IP- 20 tons of Hemp Stalks supplied from-
NV, KY, NC, and PA in bailed form. Location for product development and manufacturing
determined to be Murray, KY. Materials utilized for R&D, product/process testing, and
marketing samples. Obtain 3 year hemp processing license and set up Fibonacci, LLC.

Stage 2: 2018- $250K complete- Seed Round

Down payment of $50K for 800 tons of Hemp Stalk in bailed form at $130/ton from JT
Workman. Establish pilot plant at raw material site in Murray, KY. Purchase machinery for
pilot plant.

Stage 3: 2018- $500K- angel round- Series A

Finalize development process using agri-based adhesive. Process 800 tons of hemp stalk
into block and boards. Provide samples into the market and sell product 400m3

Stage 4: 2019- $2m VC round (state and fed grants possible)- Series B
Build manufacturing facility with 1 production line in direct vicinity to raw material supply.
Manufacturing facility will require 4,000-6,000 tons of hemp stalks in bailed form per
annum. Product to include block pressing, board cutting, and finished product
manufacture. $10m annual capacity

Stage 5: 2020- $2m (Working capital, state/fed grants possible, or VC)- Series C
Install second production line in existing manufacturing facility. Raw material requirement
to be 8,000-12,000 tons of hemp stalk in bailed form. $20m annual capacity

Stage 6: 2021-2022- $5m (retained earnings, debt, and grants)

Establish full scale manufacturing facility in west coast region of the United States to
supply local market. Facility will follow similar schedule and volume as west coast facility.
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Products and Marketing
Products
1. Commodity: block/board
2. Flooring: solid and engineered
3. Consumer Goods: cutting boards, home goods,
skateboards
4. Commercial Lumber

Marketing
1. Current Networks
2. NWFA (Trade show)
3. Distribution Networks
4. Home Centers
5. Online and direct sales

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Strategy Overview
Operations
Sales

1. East Coast USA: factory, 1. Commercial General

warehouse, & fulfillment Manager
center A. Full time outside sales team
2. Distribution B. Full time inside sales team
A. Container sales N. America C. Full time on-line sales team
B. Retail sales close to warehouse
C. On-line sales
3. Regional retail sales networks
4. Repeat on west coast
5. International Licenses
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Business Leadership
Gregory Wilson
China - On Going Australia - On Going USA - Colombia - R&D
Production Production Commercialization Stage

Education: Exec Ed-HBS, MBA, BS Hon, HSD STEM

Team Members
Experience: 12 years, 12 patents and 6 trademarks
Skill Set: R&D, Manufacturing, and Project Mgmt, Commercial: Dewevai Buchanon
Product and Business Development, New Company
Set-up Engineering: Jimmy Song
China: Anji Ya Feng and QPC Partners, Strand Woven Operations: Phill McCalon
Bamboo and Eucalyptus
Australia: Style and SmartOak, Flinders University Licensing: Tom Mathys
Lab, Forestry Tasmania, and SmartOak
Marketing: John Crye
America: GW Enterprises, QPC Partners, Fibonacci,
International Trade, Consulting Investment Projects

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Business Leadership
Fibonacci

Production Commercial Sales and Distribution

Machines Automation Home

Founders & Purchase $1m $1m Advertising Centers
Agency
Employees

Marketing Distributi
Hemp Supply Hemp Wood Plant on
& Sales

Investors Direct
and Infastructure & Installation and Sales
On-line Team
Advisors Lease Comissioning
$360K/yr $500K

IP License
Board of Directors
Chairman TBD
CEO Greg Wilson Your Logo or Name Here
Member Ben White
 Sales Mix Factory Location
1. Direct Sales 20%
1. Higher margins
2. On-line/retail direct
3. Architects/Designers

2. Distribution 60%
1. Lower margins
2. Regionalized
3. Global reach

3. Home Centers 20%

1. Lower margins
2. National reach
3. Production differentiation

Hemp Direct
Market
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Business Structure
• Three person sales • Twelve person
team manufacturing
• One marketer team per shift
• One product including; one
GM and two
designer
engineers

Sales &
Technical
Marketing

Owners and
Investors CEO

Financial Operations

• One book • Two person

keeper operations
• External team
Accounting

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Market Opportunity
US Hardwood
Market
$67B
-US Export > $10 billion
-Oak: > 50% market share
-Bamboo flooring (peak)
$ 1 billion global market
$500 million US market
3-5% US market share
- LVL: $5 billion US Market
HempWood Market
Potential
$1B YR. 10
-Company Revenue: $100 million
-Superior performance
-Environmentally friendly
-Trending industry (hemp)
-Made in USA
-Larger sizes than oak
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Customer Profile

Homeowners and Architects and

Builders
Renters
Price Sensitive Very Price Sensitive
Middle class home New home and renovation
owners and renters who projects. New home
are interested in hemp builders buy in volume urban areas with focus on
from warehouses.
products and helping the
environment. Renovation projects are
typically bought from home
centers or lumber yards
General Public
Designers
Less Price Sensitive Less Price Sensitive
High end residential and Forward thinking people <
commercial buildings in 60 yrs old. Specialty
products such as cutting
new products and LEED boards and skateboards
certifications. can be bought from
retailers and on-line sales.

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Product Pricing

Ex-Factory via Distribution via Online per Piece or

Warehouse via Pallet
Container: 23m³ Container: 23m³ Box

• Blocks $1,000 • Boards • Boards • Flooring $5-7/

per m³ $2,000/m³ $1,400/m³ ft²
• Boards $1,400 • Flooring $5-7/ • Flooring $3/ft² • Cutting boards
per m³ ft² & skateboards
(retailer paid 20% $50
• Flooring $3 per commission, goods
ft² shipped direct to end
customer)

MSRP
HempWood Flooring- $5-7/ft²
Oak Flooring $5-8/ft²
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Industry Leaders at Various Levels

US Manufacturers Distributors
1. Largest producer of US Flooring:
Hardwood Floors, annual sales
$894 million USD 2017
Timber:
2. Largest global sales revenue of
flooring $9.5 billion USD 2017

3. Large Industrial flooring

Home Centers:
company, 2017 annual
revenue $4.5 billion, owned by
Berkshire Hathaway

4. Large 100 yr old private On-line Sales:

hardwood flooring producer,
2016 sales not available
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Transforming Fiber Material

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16

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 1. Environmentally Friendly
2. 100% Renewable
3. Cool New Product
4. Price Competitive
5. USA Manufacturing
Competitive 6. Harder than Oak
Advantage 7. More Stable than Oak
8. Large Sizes Possible
9. Supports Farmers & Sawmills
10. Patents Pending & Trademark

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Hemp Material Per unit $/m3 2/3 Capacity
Fiber (ton) 200 144.50 144.50
Resin (ton) 1,500 255.00 255.00
Labor $25/hr 187.50 284.09
Utility Expense 4% 26.83 26.83
Manufacturing Overhead 11% 80.00 121.21
Other 5% 40.00 40.00

Total Block COGS/m3 $733.83 $871.63

m2 ft2 @ 10mm ft2 @ 12mm ft2 @ 14mm

Sawn Boards $889.49 $0.99 $1.16 $1.65
Flooring $1.86 $2.03 $2.52

Manufacturing Cost (KY)

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Revenue Model
Sale
Price
$4/ft2

Raw Material Farm Current Facility Value Add Process Finished Product Mill Warehouse/Distributor Retailer
Timber Raw Hemp Sales - Domestic Sales - local
Hemp Material BLOCK Processing
Recycled Veneer/Strand Preparation FACTORY COMMODITY Mill FINISHED FINISHED
Waste SEMI-FINISHED PRODUCT PRODUCT
OPERATOR - LICENSEE Finished Goods Factory Warehouse Retail Shop
"Licensed manufacturing" "Commodity Sales" "Finished Goods Sales" "End Customer Sales"
Revenue Option 1: Revenue Option 2: Revenue Option 3: Revenue Option 4:
100% Owned or Profit Margin 25-30% Profit Margin 30-40% Profit Margin 50%
5% license fee and $100K set-up Commission Paid 20%
On-line
Sales - Domestic

Cost Cost Sale

$1/ft2 $2/ft2 Price
$3/ft2

Revenue Option 5:
Profit Margin 60%

End Sale
User$5- Price
7/ft2 $5/ft2

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Sales Pitch and Strategy
HempWood is made from
hemp fiber and soy based
adhesives with zero added
formaldehyde.
2020 HempWood production
to reach 3 million board feet.
2019 HempWood flooring,
cutting boards, and
skateboards will hit the
market.
HempWood development
lasted 10 years resulting in a
product more stable and
harder than Oak with a visual
appearance similar to
bamboo.
2018 HempWood available on
a first come first serve basis in
blocks and boards.
HempWood will be available in
block, board, flooring and
consumer goods at prices
lower than oak. It is grown and
harvested in 4-6 months
making it the most eco-
friendly building material in
the market.
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SWOT
Strengths
• Macro business environment
• Science, technology, and patent
• Cool new products
• Team experience and skills
Weakness
• Lack of marketing
• Lack of internal funding
• Time constraints
• Production lead times
Opportunities
• USA manufacturing
• Online direct sales
• Disrupt old industry
• Hemp industry
Threats
• Competition
• Industry old guard
• Slow down in building industry
• Unforeseen complications of start ups
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Capital Requirements: 5 Year
FOTF Depreciation
Machinery $2,269,828 Machine 5 yr (included in COGS)
Land and Building $360,000
Working Capital $1,715,644
Total Cost $4,345,472
Annual Income Key Factors Technical $623,273
Capacity Out-Put
Commercialization Operations $921,092
Value $21,600,000 USA accounting standards
COGS $16,744,920 Sales are based on block value Contract Expenditure $334,125
Gross Margin $300/ton Hemp and current IP Expenditure $135,000
(block) $4,855,080 glue prices
Other Expenditure $555,000
Consessions $1,080,000
Development & Commercialization
Annual Return $5,935,080
Expenditure $2,568,489
Additional Value (Annual)
Additional CAPEX- $1,600,000 East Coast Manufacturing Investment
Output- 2,791,800 m2 wear- (2018-2020) $4,345,472
Pay-Back Period layer
West Coast Manufacturing Investment
CAPEX $4,345,472 license fee- $2,791,800
(2020-2022) $4,345,472
Annual Return $5,935,080 Board margin- $8,991,000
Pay-back period
(years) 0.73 Wear-layer margin- $13,176,000 Total Expenditure $11,259,433

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Funding and Exit

Capital Raise Exit Strategy

2014-8 Research & Development Sale of Company in Yr 5-10
$300K Successfully Completed

2018 Commercialization & Manufacturing Buyer: Industry Leader

$250K Pilot Plant Completed
$500K Production Price (USD):
2019 Full Scale Factory Yr 5 $50+ million
$3 mill Processing Line Yr 5-10 $50-100 million

2020 Second processing line

$1 mill Expansion

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Thank You
Greg Wilson
+1 240 291 0120
gwilson@hempwood.com
Hempwood.com