Page 5 - Shango Case Study

A New Industry cont’d.
• What types of cannabis can be sold and to whom.
° Medicinal cannabis to state-registered patients with prescriptions.
° Recreational cannabis to adult users.
° Or both.
• Product testing for THC and other cannabinoid content, pesticides and other substances.
The Company • How much of each type of cannabis product can be sold to a single customer in a single day
Shango, a subsidiary of Rexroad Marquis Corporation (RMC), is an integrated cultivator, ° Flower
processor, distributor and retailer of premium cannabis products based in Portland, Oregon.
Concentrates
It is also an emerging leader i°n the exploding American Cannabis Industry.
° Edibles/extracts/beverages
Currently, Shango has cultivation facilities in Oregon and Washington, and ve retail stores in
° Topicals
the greater Portland area. The company is poised to enter new markets for cannabis opening in
Alaska, Arizona, California, Hawaii an§d NByevVaodluam. Iet is also planning to extend its presence across the country as other states legalize recreational and/or medicinal cannabis.
§ By THC Content
• Cultivation and retail facility locations, advertising, hours of operation
Shango is commited to: and much more.
• Rede ning cannabis as a positive and respected addition to the nationwide marketplace.
§ State cannabis taxes range from heavy to prohibitive
• Recent tax increases in some states have driven consumers away • Changing how millions of Americans responsibly purchase, use and enjoy cannabis.
from regulated sales by compliant companies and back to black
market sources.
• Transforming the production and sale of cannabis products into a prosperous business, as
• Adversely affecting cannabis companies’ growth, pro tability and well as a pro table investment.
even viability.
• CreatinFgeAdmerearlicLa’ws s rst and nest national cannabis brand. °
§ Like cocaine and heroin, cannabis is still classi ed as a Schedule 1 drug by the Federal government.
§ It is still a Federal crime to sell cannabis in the US.
§ RICO laws prohibit cannabis companies from pro ting from the sale of an
“illegal” drug.
• Companies technically cannot use the banking system to process cannabis sales transactions or deposit the proceeds of cannabis sales.
° Banks that accept money from cannabis companies can be shut down and the companies’ assets can be seized at any time.
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