1

From: Jonathan Mayer <jmayer217@gmail.com>

Sent: Wednesday, February 24, 2016 2:22 PM

To: Jeffrey Siskind

Subject: Current Exec. Summary

Attachments: CannaMed Facility Exexutivr Summary 02-2016.docx; ATT00001.htm

Jeff, 

Here is the Exec. Summary we are using. 

Have a lead. Call me when you can. 

Thanks, 

Jon 

Case 19-01298-MAM Doc 473-8 Filed 10/22/20 Page 1 of 12
CannaMED Pharmaceuticals

Executive Summary: Debt Offering

C O N F I D E N T I A L

FEBRUARY 2016

FOR INFORMATIONAL PURPOSES ONLY

Case 19-01298-MAM Doc 473-8 Filed 10/22/20 Page 2 of 12
1

The Executive Summary (the “Executive Summary”) prepared by Chance & Anthem, LLC dba 

CannaMED Pharmaceuticals, LLC (“C&M”, “CannaMED”, “Company”), a Maryland limited liability 

company is comprised of confidential, proprietary and non-public information and projections 

(collectively, the “Information”) regarding C&M its subsidiaries and their respective affiliates and 

businesses (the “Company”).

C&M is furnishing the Information solely for consideration by persons or entities (each, a “Recipient”) who 

have expressed an interest in extending debt and/or purchasing membership interests in the Company 

(the “Proposed Transaction”) and is only being provided to those Recipients who have the knowledge and 

experience in financial and business matters and the capability to conduct their own due diligence 

investigation and evaluation in connection with the Proposed Transaction.

Each Recipient of the Executive Summary agrees by accepting the Executive Summary that the

Information herein shall not to be used by the Recipient for any purpose other than in connection with 

the Recipient’s consideration of the Proposed Transaction. Each Recipient further agrees by accepting 

the Executive Summary that the Information is of a confidential nature and that Recipient will treat the 

Information in a confidential manner and that the Recipient will not, directly or indirectly, disclose or 

permit its affiliates or representatives to disclose, any Information to any other person or entity or 

reproduce the Information, in whole or in part, without the prior written consent of C&M. In addition, 

each Recipient agrees that these confidentiality and other obligations shall apply to any non-public 

information relating to the Company or the Proposed Transaction, which is provided to such recipient 

subsequent to the delivery of the Executive Summary.

No person has been authorized to provide any information with respect to C&M or the Proposed 

Transaction except the Information contained herein. The Information contains descriptions and 

projections of the Company and C&M and other matters as of the date Recipient receives such 

Information. C&M based much of the information contained in the Executive Summary on information 

provided from the Company, including but not limited to the Company’s business plan, and assumes no 

responsibility for any said information that was provided to C&M by the Company. The Company is under 

no obligation to update or otherwise revise the Information following its distribution, and Recipients 

should not expect C&M to do so. Recipients are urged to conduct an independent investigation and 

evaluation of the Proposed Transaction.

The execution of the business plan and the success of the investment may be dependent upon the ability 

of the Company to raise additional capital in the future and there can be no assurances that the Company 

will be successful in doing so.

The Information set forth herein contains the subjective views of C&M. There can be no assurance that 

C&M’s views are accurate. Industry experts may disagree with these views and C&M’s view of the market 

and the prospects for the Company. C&M MAKES NO REPRESENTATION OR WARRANTY REGARDING 

THE ACCURACY OR COMPLETENESS OF THE INFORMATION. 

THE EXECUTIVE SUMMARY SHALL NOT BE REPRODUCED IN WHOLE OR IN PART WITHOUT THE EXPRESS 

WRITTEN CONSENT OF C&M.

Case 19-01298-MAM Doc 473-8 Filed 10/22/20 Page 3 of 12
1

Executive Summary

I. Overview

In response to the Natalie LaPrade Medical 

Cannabis Commission’s request for 

applications for a medical cannabis grower 

premises, Chance & Anthem, LLC dba 

CannaMED Pharmaceuticals, LLC 

(“CannaMED”, “Company”), a Maryland 

limited liability company, presented its 

Business Plan to the State of Maryalnd’s 

Medical Cannabis Commission (“MMCC”) 

in November 2015. This was submitted to 

address CannaMED’s mission to provide 

medical cannabis in a safe and effective 

manner. To achieve its mission, CannaMED 

will focus its efforts on achieving optimal 

growing practices, which will rest on the 

‘people, procedures, and place’ obtained and 

organized to in order to successfully execute 

its mission. 

In advance of receiving notice from MMCC 

about licensure from the state, CannMED has 

initiated the effort of building a state-of-the 

art Cannabis greenhouse and storage facility 

to maximize the opportunity as soon as 

licenses are awarded and achieve a 

competitive advantage over other licensured 

distributors. CannaMED will sell the fully 

developed and functional greenhouse to a 

licensured distributor at a sizeable profit 

should it not receive the distribution license.

As a resjult, the Company is seeking 

$1.35mm in debt to underwrite the full 

acquisition and build-out of 27120 Ocean 

Gateway, Hebron, MD as the Company’s 

Location Grower Facility. The Company has 

said property under contract and has a payoff 

of $916,887.28. Based on market comps, 

the current value of the 47,000 SF property at 

a price per square foot of $38.25 is 

$1,797,750. 

The Company plans to have the state-of-the 

art facility completed by late May 2016, prior 

to the State of Maryland’s awarding of 

recreational seed-to-sale licenses, which will 

occur in two phases. Should the company 

successfully acquire said licenses, it will beat 

other licensed distributors to market. If it is 

not, it will be able to sell the fully operational 

facility to a company that receives its license 

at an estimated value of $3.5mm plus equity.

The founder of the company, Jeffrey Siskind, 

has a proven track record in this space, 

having procured a license and built a fully 

operational Location Grower Facility in 

California.

II. Business Summary

A. Philosophy

The PEOPLE asseC&Mled to achieve 

CannaMED’s mission include a woman 

whose credibility in the pharmaceutical

industry is unmatched, an attorney who has 

been a meC&Mer in good standing of the 

Maryland Court of Appeals since 1997, a 

highly skilled and experienced grower with 

over 17 years of legal cannabis growing 

experience, and a Maryland resident whose 

accomplishments include the 2009 start-up 

and operation of a successful California 

cannabis collective, a security professional 

whose prior service included protecting our 

homeland’s security, a safety and compliance 

specialist with significant large-scale facility 

experience, all of whom will together oversee 

the efforts of CannaMED’s unique 

cultivation and research undertaking.

The PROCEDURES adopted to facilitate 

CannaMED’s mission of providing medical 

cannabis in a safe and effective manner are 

consistent with the level of protections 

Case 19-01298-MAM Doc 473-8 Filed 10/22/20 Page 4 of 12
2

observable in the pharmaceutical industry, 

and include stringent organic hydroponic 

growing protocols, strict security and 

transportation protocols, strict inventory and 

storage controls, compliance with modern 

‘seed to sale’ tracking requirements, 

transparency of operations to allow close 

regulatory oversight, efficient natural 

resource utilization and coordination and 

feedback mechanisms with licensed 

processors and dispensaries which will 

enhance useful supply of medicine to 

patients.

The PLACE selected by CannaMED to 

house its growing facility is a 7.4-acre site 

located on Maryland’s lower eastern shore, in 

Hebron, Maryland. Mostly surrounded by 

large oak trees and well Situated some 250 

feet off of the primary access roadway is a 

secluded 47,000 sq. ft. modern production 

warehouse, comprised of approximately 

30,000 sq. ft. of actual indoor agricultural 

production space supplied by more than 

2,000 amps of three phase electrical power, 

more than 14 offices, ample paved parking 

and elaborate employee facilities. 

CannaMED possesses [an 

option/lease/purchase...] this uniquely 

suitable site. Site selection was partly 

motivated by the significant security 

attributes of this former manufacturing plant, 

and by the properties successful 

environmental (Phase I and Phase II) tests. 

Also unique to CannaMED is its focus on the 

science of medical cannabis which 

CannaMED intends to incorporate in its 

business program. Recognizing that in 1988, 

after several weeks of extensive hearings, 

Francis L. Young, then Chief Administrative 

Law Judge for the United States Drug 

Enforcement Agency, ruled that, "Marijuana, 

in its natural form, is one of the safest 

therapeutically active substances known... It 

would be unreasonable, arbitrary and 

capricious for the DEA to continue to stand 

between those sufferers and the benefits of 

this substance..."

Still, largely because of the categorization of 

cannabis as a Schedule 1 Controlled 

substance, public sentiments and the lack of 

significant federal funding, little formal 

research has been conducted on the potential 

attributes of the plant. CannaMED, however, 

will devote 5,000 sq. ft. of its Maryland 

growing facility and funding in excess of $1 

million annually to advancing the science of 

cannabis, by hosting scientific endeavor in 

collaboration with existing research 

institutions.

Because of its asseC&Mled team, its 

intended operating practices, and the 

site/facility selected for its operation, 

CannaMED is confident of reaching its goal 

of supplying medical cannabis in a safe and 

effective manner. But CannaMED’s 

approach is also designed to be a trustworthy 

and comprehensive program, of which the 

State of Maryland can be proud, and which 

can serve as a model for facilities in other 

states in the emerging field of medical 

cannabis.

B Objectives

During the first year, CannaMED’s business 

goals are to:

(1) Complete and open the facility consistent 

with representations made to the 

Commission, and by first utilizing a 

preliminary ‘fast start’ which will permit 

bringing product to harvest within 5.5 months 

of licensure.

(2) Obtain and train employees who can work 

in a regulatory environment, and are happy 

and motivated.

Case 19-01298-MAM Doc 473-8 Filed 10/22/20 Page 5 of 12
3

(3) Develop and launch a distribution 

program which permits ample feedback from 

licensed medical cannabis processors and 

dispensaries, and based upon 

recommendations from a Business Board of 

Advisors.

(4) Devote 5,000 sq. ft. of the facility (on the 

second floor) and adequate funding to initiate 

a medical science component, including 

collaboration with a Scientific Board of 

Advisors.

II. Site Acquisition

The Company seeks $1.35mm in debt to underwrite the full acquisition and build out of 27120 

Ocean Gateway, Hebron MD 21803, a site it has secured for operation of its grower facility.

Color Coded Vicinity Map

1. Pink line represents 10 foot high chain link motion sensitive Ironclad Fence

2. Blue line represents property line

3. Orange circle represents 1000 foot radius from center

4. Red line locates the main entrance

5. Lime line locates a commercially zoned three bay auto repair garage

6. Light gray line locates a residential zoned single-family house

A. Site Selection

In determining an ideal site for its growing 

facility, CannaMED Pharmaceuticals, LLC 

searched for accessible but secluded 

improvements located on an appropriately 

agricultural zoned parcel which would allow 

for expansion, in a county whose agricultural 

Case 19-01298-MAM Doc 473-8 Filed 10/22/20 Page 6 of 12
2

community represents a large sector of the 

economy. Secondary considerations were 

that be a pool of prospective employees who 

reside with a 15-minute drive of the facility, 

and that no residential neighborhoods or 

school(s) be located nearby, nor any business 

whose operations would be interfered with by 

the Company’s cultivation of medical 

cannabis.

Wicomico County on Maryland’s lower 

eastern shore, with its agricultural sector, and 

the town of Salisbury, with its population 

acclimated to agricultural business quickly 

became the focus of the Company’s search 

efforts. A tour of the former Ma-Tech 

manufacturing facility was eye-opening; it 

appeared that the facility was in fact designed 

for exactly what the Company wanted to do.

The next step undertaken by the Company 

was to test for environmental hazards. The 

Company hired Hillis Carnes Engineering 

Associates, Inc., a geotechnical engineering 

company located in Delmar, Maryland, to 

conduct both Phase I and Phase II 

environmental studies, which included initial 

water quality analysis. The Company also 

hired Peninsula Water Conditioning to 

conduct a more in-depth water quality 

analysis, and to propose a water quality 

treatment installation. Happily, the property 

was determined to be hazard-free and water 

quality poses no obstacle.

A final review of the suitability of the 

property dealt with its ability to meet criteria 

pertaining to nutrient management and 

waste/wastewater disposal imposed by the 

Maryland Department of Agriculture and the 

Maryland Department of the Environment. 

The property possesses an adequate working 

septic field which does not impact the 

watershed.

B Site Design

In order to produce the highest quality 

medical cannabis on a consistent year-round 

basis CannaMED Pharmaceuticals, LLC 

determined that a weather-insulated, fireresistant, secure facility was necessary. The 

former manufacturing plant which is now 

controlled by the Company affords all of the 

above mentioned requisites. The building is 

secure, spacious and secluded, but accessible 

by means of a major roadway.

On the following pages, please find a site 

plan which depicts the location of the 

building on the property, together with 1st 

and 2nd floor plans. Note that all partitioning 

has been constructed, with the exception of 

grow room screening which the Company 

plans to construct from fire resistant antimicrobial vinyl fabric secured in place in 

accordance with a proprietary system 

designed by the Company, which system is 

available for inspection. Please note also that 

areas on the second floor plan which are 

within the building perimeter but are not 

shown as partitioned are spaces with twostory (approximately 19 ft.) ceiling heights.

Case 19-01298-MAM Doc 473-8 Filed 10/22/20 Page 7 of 12
2

Case 19-01298-MAM Doc 473-8 Filed 10/22/20 Page 8 of 12
3

Case 19-01298-MAM Doc 473-8 Filed 10/22/20 Page 9 of 12
4

Case 19-01298-MAM Doc 473-8 Filed 10/22/20 Page 10 of 12
1

C. Site Build Out

In order to ascertain an appropriate build-out, 

the Company consulted at length with Matt 

Hoffman, a veteran cannabis grower with 

more than 17 years of legal growing 

experience, before Matt joined the 

CannaMED Pharmaceuticals, LLC team.

To oversee the planning and turn-key buildout of its facility, the Company has hired the 

services of Consolidated Engineering 

Company, a commercial general contractor 

headquartered in Maryland since 1911, and 

which is known for constructing most of the 

original Johns Hopkins Hospital campus, the 

original University of Maryland Hospital at 

Baltimore, Anne Arundel County Hospital in 

Annapolis, the National Institutes of Health 

in Bethesda, Maryland and he Maryland 

Science Center in Baltimore.

CEC will work in partnership with AWB 

Engineers (AWB) in Salisbury, Maryland, 

which produced the original floor plans in 

consultation with the Company’s master 

grower, security and safety/compliance staff, 

resulting in a plan which emphasizes security 

and safety.

D. Site Financing

CannaMED Pharmaceuticals, LLC is the 

third party beneficiary of Chance & Anthem, 

LLC (C&A)’s assignment of a Purchase 

Option Contract which was entered into by 

Sovereign Gaming & Entertainment, LLC 

(SG&E), a Florida limited liability company 

controlled by the family of the Company’s 

Managing Director. While SG&E has funded 

approximately $300,000 toward the purchase 

to date, C&A is obtaining additional capital 

in the amount of $1.35mm by obtaining a 

financing against the building which will be 

used to close and build out the facility.

Case 19-01298-MAM Doc 473-8 Filed 10/22/20 Page 11 of 12
1

FOR MORE INFORMATION, CONTACT:

Jonathan A. Mayer

305-926-5819

jmayer@whartoncompanies.com

Case 19-01298-MAM Doc 473-8 Filed 10/22/20 Page 12 of 12