# EDGAR Filing Document

**Accession Number:** 0001313938
**File Stem:** 0001683168-23-000639
**Filing Date:** 2023-2
**Character Count:** 488559
**Document Hash:** 974303ddcb4239dc9bf520f12db4297c
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001683168-23-000639.hdr.sgml**: 20230208

**ACCESSION NUMBER**: 0001683168-23-000639

**CONFORMED SUBMISSION TYPE**: 1-A POS

**PUBLIC DOCUMENT COUNT**: 9

**FILED AS OF DATE**: 20230208

**DATE AS OF CHANGE**: 20230208

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Sibannac, Inc.
- **CENTRAL INDEX KEY:** 0001313938
- **STANDARD INDUSTRIAL CLASSIFICATION:** PHARMACEUTICAL PREPARATIONS [2834]
- **IRS NUMBER:** 330903494
- **STATE OF INCORPORATION:** NV
- **FISCAL YEAR END:** 0831

**FILING VALUES:**
- **FORM TYPE:** 1-A POS
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 024-11780
- **FILM NUMBER:** 23598504

**BUSINESS ADDRESS:**
- **STREET 1:** 2122 E. HIGHLAND AVENUE, SUITE 425
- **CITY:** PHOENIX
- **STATE:** AZ
- **ZIP:** 85016
- **BUSINESS PHONE:** 480-498-8300

**MAIL ADDRESS:**
- **STREET 1:** 2122 E. HIGHLAND AVENUE, SUITE 425
- **CITY:** PHOENIX
- **STATE:** AZ
- **ZIP:** 85016

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Sibannic, Inc.
- **DATE OF NAME CHANGE:** 20150310

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Naprodis, Inc.
- **DATE OF NAME CHANGE:** 20050110

## Part

[**Table of Contents**](#a1)

Explanatory Note: This Post-Qualification Offering Circular amends the offering circular of Sibannac, Inc. qualified on February 8, 2022, in order to update the financials, update the business plans and adjust the price per share of the Offering.

 **OFFERING CIRCULAR NO. 1 DATED February 7, 2023**

![](logo.jpg)

**Sibannac, Inc.**

**Sibannac, Inc.**

 **$5,670,000**

**$0.15 per Unit**

**27,000,000 Units,** 

**Each Unit consisting of 5 Shares of Common Stock and 1 Warrant exercisable at $0.06 per Warrant.** 

**27,000,000 Shares of Common Stock to be issued upon Exercise of Warrants**

 ***EXPLANATORY NOTE***

The purpose of this Post Qualification Amendment is to update the financials, update the business plans, and to decrease the exercise price of the Warrants. Unless otherwise defined in this Supplement, capitalized terms used herein shall have the same meanings as set forth in the Offering Circular, including the disclosures incorporated by reference therein.

This is the public offering of securities of Sibannac, Inc., a Nevada corporation. We are offering 27,000,000 units, each unit consisting of 5 Shares of Common Stock and 1 warrant, par value $0.001 ("Units"), at an offering price of $0.15 per Unit (the "Offered Units") by the Company. The total number of shares included in the Units is 135,000,000 and the total underlying shares after the exercise of all warrants is 27,000,000 shares. Each Class A Warrant, is exercisable at $0.06 per warrant and will entitle the holder to purchase one share of common stock. The Offering will terminate on the earlier of (i) the date on which the Maximum Offering is sold, or (ii) when the Company elects to terminate the offering for any reason (in each such case, the "Termination Date"). At least every 12 months after this offering has been qualified by the United States Securities and Exchange Commission (the "Commission"), the Company will file a post-qualification amendment to include the Company's recent financial statements. (such earlier date, the "Termination Date"). The minimum purchase requirement per investor is 10,000 Offered Units; however, we can waive the minimum purchase requirement on a case-by-case basis in our sole discretion.

**These securities are speculative securities. Investment in the Company's stock involves significant risk. You should purchase these securities only if you can afford a complete loss of your investment. See the "Risk Factors" section on page 4 of this Offering Circular.**

**No Escrow**

The proceeds of this offering will not be placed into an escrow account. We will offer our Units on a "best efforts" basis. As there is no minimum offering, upon the approval of any subscription to this Offering Circular, the Company shall immediately deposit said proceeds into the bank account of the Company and may dispose of the proceeds in accordance with the Use of Proceeds. The Company will not raise more than $20,000,000 in gross proceeds from this Offering.

Subscriptions are irrevocable and the purchase price is non-refundable as expressly stated in this Offering Circular. The Company, by determination of the Board of Directors, in its sole discretion, may issue the Securities under this Offering for cash, promissory notes, services, and/or other consideration without notice to subscribers. All proceeds received by the Company from subscribers for this Offering will be available for use by the Company upon acceptance of subscriptions for the Securities by the Company.

Sale of these Units will commence within two calendar days of the qualification date and it will be a continuous Offering pursuant to Rule 251(d)(3)(i)(F).

This Offering will be conducted on a "best-efforts" basis, which means our Officers will use their commercially reasonable best efforts in an attempt to offer and sell the Units. Our Officers will not receive any commission or any other remuneration for these sales. In offering the securities on our behalf, the Officers will rely on the safe harbor from broker-dealer registration set out in Rule 3a4-1 under the Securities Exchange Act of 1934, as amended.

This Offering Circular shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sales of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful, prior to registration or qualification under the laws of any such state.

Our Common Stock is quoted on the OTCMarkets Pink Open Market under the stock symbol "SNNC."

**Investing in our Common Stock involves a high degree of risk. See "Risk Factors" beginning on page 7 for a discussion of certain risks that you should consider in connection with an investment in our Common Stock.**

---

| | | | |
|:---|:---|:---|:---|
|  | **Number of Units** | **Per Unit** <br> **<sup>(1)(2)(3)</sup>**  | **Total** <br> **Maximum<sup>(4)</sup>**  |
| Public Offering Price– Units | 27000000 | $0.15 | $4050000.00 |
| Proceeds to Company – Units |  |  | $4050000.00 |
| **Warrants** |  | **Exercise Price per Warrant** |  |
| Public Offering Price – Shares Underlying Warrants | 27000000 | $0.06 | $1620000.00 |
| Proceeds to Company – From the Exercise of Shares Underlying Warrants |  |  | $1620000.00 |

---

________________

(1) We are offering Units on a continuous basis. See "Distribution
 – Continuous Offering. The number of Units being sold is 27,000,000 Units which consist of five (5) shares and one (1) warrant
 per unit. The total underlying shares of all warrants is 27,000,000 shares.

(2) This is a "best efforts" offering. The proceeds of this offering will not be placed into an escrow account. We will offer the Units on a best efforts basis primarily through an online platform. As there is no minimum offering, upon the approval of any subscription to this Offering Circular, the Company shall immediately deposit said proceeds into the bank account of the Company and may dispose of the proceeds in accordance with the Use of Proceeds. See "How to Subscribe."

(3) We are offering these securities without an underwriter.

(4) Excludes estimated total offering expenses, including underwriting discount and commissions, will be approximately $50,000 assuming the maximum offering amount is sold.

Our Board of Directors used its business judgment in setting a value of $0.15 per Unit to the Company as consideration for the stock to be issued under the Offering. The sales price per Unit bears no relationship to our book value or any other measure of our current value or worth.

**THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION DOES NOT PASS UPON THE MERITS OF OR GIVE ITS APPROVAL TO ANY SECURITIES OFFERED OR THE TERMS OF THE OFFERING, NOR DOES IT PASS UPON THE ACCURACY OR COMPLETENESS OF ANY OFFERING CIRCULAR OR OTHER SOLICITATION MATERIALS. THESE SECURITIES ARE OFFERED PURSUANT TO AN EXEMPTION FROM REGISTRATION WITH THE COMMISSION; HOWEVER, THE COMMISSION HAS NOT MADE AN INDEPENDENT DETERMINATION THAT THE SECURITIES OFFERED ARE EXEMPT FROM REGISTRATION.**

**TABLE OF CONTENTS**

---

| | |
|:---|:---|
|  | **Page** |
| [CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS](#a2) | 1 |
| [SUMMARY](#a3) | 2 |
| [THE OFFERING](#a4) | 4 |
| [RISK FACTORS](#a5) | 5 |
| [USE OF PROCEEDS](#a6) | 21 |
| [DILUTION](#a7) | 23 |
| [DISTRIBUTION](#a8) | 24 |
| [MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](#a9) | 26 |
| [BUSINESS](#a10) | 33 |
| [MANAGEMENT](#a11) | 45 |
| [EXECUTIVE COMPENSATION](#a12) | 47 |
| [CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS](#a13) | 49 |
| [PRINCIPAL STOCKHOLDERS](#a14) | 52 |
| [INTEREST OF MANAGEMENT AND OTHERS IN CERTAIN TRANSACTIONS](#a15) | 53 |
| [DESCRIPTION OF SECURITIES](#a16) | 53 |
| [DIVIDEND POLICY](#a17) | 56 |
| [SECURITIES OFFERED](#a18) | 56 |
| [LEGAL MATTERS](#a20) | 57 |
| [EXPERTS](#a21) | 57 |
| [WHERE YOU CAN FIND MORE INFORMATION](#a22) | 57 |
| [INDEX TO CONSOLIDATED FINANCIAL STATEMENTS](#a23) | F-1 |

---

We are offering to sell, and seeking offers to buy, our securities only in jurisdictions where such offers and sales are permitted. You should rely only on the information contained in this Offering Circular. We have not authorized anyone to provide you with any information other than the information contained in this Offering Circular. The information contained in this Offering Circular is accurate only as of its date, regardless of the time of its delivery or of any sale or delivery of our securities. Neither the delivery of this Offering Circular nor any sale or delivery of our securities shall, under any circumstances, imply that there has been no change in our affairs since the date of this Offering Circular. This Offering Circular will be updated and made available for delivery to the extent required by the federal securities laws.

In this Offering Circular, unless the context indicates otherwise, references to "Sibannac, Inc.", "Sibannac", "SNNC", "we", the "Company", "our" and "us" refer to the activities of and the assets and liabilities of the business and operations of Sibannac, Inc.

i

**CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS**

Some of the statements under "Summary", "Risk Factors", "Management's Discussion and Analysis of Financial Condition and Results of Operations", "Our Business" and elsewhere in this Offering Circular constitute forward-looking statements. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar matters that are not historical facts. In some cases, you can identify forward-looking statements by terms such as "anticipate", "believe", "could", "estimate", "expect", "intend", "may", "plan", "potential", "should", "will" and "would" or the negatives of these terms or other comparable terminology.

You should not place undue reliance on forward looking statements. The cautionary statements set forth in this Offering Circular, including in "Risk Factors" and elsewhere, identify important factors which you should consider in evaluating our forward-looking statements. These factors include, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The speculative nature of the business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Our reliance on suppliers and customers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Our dependence upon external sources for the financing of our operations, particularly given that there
are concerns about our ability to continue as a "going concern;"

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Our ability to effectively execute our business plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Our ability to manage our expansion, growth and operating expenses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Our ability to finance our businesses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Our ability to promote our businesses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Our ability to compete and succeed in highly competitive and evolving businesses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Our ability to respond and adapt to changes in technology and customer behavior; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Our ability to protect our intellectual property and to develop, maintain and enhance strong brands.

Although the forward-looking statements in this Offering Circular are based on our beliefs, assumptions and expectations, taking into account all information currently available to us and our perception and interpretation thereof, we cannot guarantee future transactions, results, performance, achievements or outcomes. No assurance can be made to any investor by anyone that the expectations reflected in our forward-looking statements will be attained, or that deviations from them will not be material and adverse. We urge you to read this Offering Circular in its entirety and not place undue reliance on forward-looking statements. We undertake no obligation, other than as may be required by law, to re-issue this Offering Circular or otherwise make public statements revising and/or updating our forward-looking statements if events occur or circumstances change.

**SUMMARY**

*This summary highlights selected information contained elsewhere in this Offering Circular. This summary is not complete and does not contain all the information that you should consider before deciding whether to invest in the Units. You should carefully read the entire Offering Circular, including the risks associated with an investment in the company discussed in the "Risk Factors" section of this Offering Circular, before making an investment decision. Some of the statements in this Offering Circular are forward-looking statements. See the section entitled "Cautionary Statement Regarding Forward-Looking Statements."*

**Company Information**

Sibannac, Inc. ("*Sibannac,*" "*Company,*" "*we*" or "*us*") was incorporated in June 1999 in the State of Nevada as Naprodis, Inc. for the purpose to engage in any lawful activity for which corporations may be formed. On August 25, 2014, the Company transferred all of its assets to Naprodis, Inc., a Colorado corporation ("*Colorado Naprodis*"). In consideration for the transfer of these assets, Colorado Naprodis agreed to assume a substantial amount of the Company's liabilities. On November 25, 2014, the Company changed its name to Sibannac, Inc.

On August 19, 2015, we entered into an Asset Acquisition Agreement with Apollo Media Network, Inc., a Delaware corporation ("*Apollo*") whereby all of the assets of Apollo would be acquired by the Company from Apollo. Pursuant to the Asset Acquisition Agreement, the closing of the Acquisition was effective August 31, 2015, although completed later. Apollo issued to the Company an Assignment Agreement and Bill of Sale for the Assets, duly executed by Apollo. Sibannac delivered to Apollo Media Network, Inc. three million one hundred thousand (3,100,000) shares of the Company's Common Stock, duly issued, fully paid and non-assessable which were distributed to its shareholders in liquidation of Apollo pursuant to IRC Section 368c. There has been no merger, however, Sibannac obtained the assets and intellectual property of Apollo upon its liquidation.

We had a short operating history in the Apollo business (only in the startup mode in 2015) and no representation is made, nor is there any intent for the Company to continue to pursue the business model of Apollo.

After the 2015 fiscal year end, we acquired Protection Cost, Inc. for two million, three hundred thousand (2,300,000) shares which intends to provide labor and accounting management systems for the cannabis industry.

On July 17, 2017, the Company acquired Imbutek Inc., including its Plan of Operation (the "Plan"), and its sole shareholder became the President of the Company. The Company is preparing and packaging health products for wholesalers and retailers under the Plan.

The Company opened its new operations in May 2019, in Scottsdale, Arizona, as a developer, manufacturer and seller of premium Cannabidiol (CBD) products. CBD is one of the 104 chemical compounds known as cannabinoids found in the hemp plant or Cannabis Sativa. These compounds stimulate the body's endocannabinoid system (ECS). CBD is rapidly gaining momentum in the health and wellness world and some scientific studies have confirmed it may help treat a wide variety of ailments from chronic pain to anxiety.

Sibannac is committed to bringing its customers the highest-grade CBD products on the market and proudly offers the highest quality, all natural, lab tested, CBD oils and extracts. Sibannac strives to fuse science and nature by providing the maximum quality and purest products to improve the health and overall well-being of each of its individual customers and their pets.

During the year ended August 31, 2021, the Company established Vestra, LLC. Vestra is a special purpose LLC established to hold the rad8LifeÔ brand and operate the site rad8life.com for the sale of Delta 8 THC products and may be expanded to cover other products. On June 17, 2021, in a related party transaction, the Company sold Vestra to Noho, Inc., for 2,000,000 shares of Noho, Inc. Series B Preferred shares valued at $500,000. On June 9, 2022, the Company converted all 2,000,000 shares of Noho, Inc. Series B Preferred held by it into 280,000,000 shares of Noho, Inc. Common Stock. The Company is holding the shares as an investment.

On January 27, 2022, the Company, with the approval of a majority of its shareholders and its directors approved an increase in the authorized common stock of the Company from 200,000,000 to 300,000,000, with the Secretary of State of Nevada.

On March 3, 2022, the Company appointed Mr. Eric Stoll as Chief Marketing Officer of the Company.

On July 15, 2022, Mr. James T. Staudohar resigned from all positions with the Company.

On November 8, 2022, the Company reacquired Vestra, LLC and the NOHO Brand ("NOHO Assets") in an Asset Purchase Agreement, from NOHO, Inc. As consideration for the NOHO Assets the Company agreed to pay a Royalty to NOHO, Inc. for seven (7) years based on a percentage of gross sales: 5% up to $2mm in sales, 4% between $2mm – $3mm in sales, 3% between $3mm - $4mm in sales, 2% between $4mm - $5mm in sales and 1% if sales were greater than $5mm. The Company also agree to issue 50,000,000 warrants to NOHO shareholders ("NOHO Warrants") of record as of July 29, 2022. The NOHO Warrants are redeemable no later than one year after the Registration Statement to be filed by the buyer becomes effective. The exercise price for the underlying shares of stock shall be 20% below the average of the bid and the ask price of the opening quote immediately subsequent to the Registration Statement becoming effective. As part of the Asset Acquisition Agreement, the Company also acquired and assumed the rad8LifeÔ brand and rad8life.com from Noho, Inc., together with Noho, Inc. hangover beverage assets in exchange for the assumption of $300,000 in debt and the cancellation of certain liabilities owed by Noho to the Company for a net value of $267,451.15.

The foregoing description of the Asset Purchase Agreement does not purport to be complete and is qualified in its entirety by reference to the complete text of such agreement, which is filed hereto as Exhibit 6.3, to our Regulation A Offering, and is incorporated herein by reference.

All CBD product formulations are derived from Hemp, as defined by the Agriculture Improvement Act of 2018, also known as the 2018 Farm Bill. Sibannac is committed to bringing its customers the highest-grade products on the market, accompanied by certificates of analysis following testing from independently certified labs. Sibannac strives to fuse science and nature by providing the maximum quality and purest products to improve the health and overall well-being of each of its individual customers and their pets.

Other product formulations may include Kratom and certain extracts from Cherries. All current and future products are dietary supplements or permitted under the Farm Bill and do not require any specific licensure or regulatory approval.

Our fiscal year-end date is August 31.

Our SNNC mailing address is 9535 E. Doubletree Ranch Rd., Ste 120, Scottsdale, AZ 85258. Our main telephone number is (480) 407-6445. Our website is www.snncinc.com and our email address is info@snncinc.com.

We do not incorporate the information on or accessible through our websites into this Offering Circular, and you should not consider any information on, or that can be accessed through, our websites a part of this Offering Circular.

**Section 15(g) of the Securities Exchange Act of 1934**

Our shares are covered by section 15(g) of the Securities Exchange Act of 1934, as amended that imposes additional sales practice requirements on broker/dealers who sell such securities to persons other than established customers and accredited investors (generally institutions with assets in excess of $5,000,000 or individuals with net worth in excess of $1,000,000 or annual income exceeding $200,000 or $300,000 jointly with their spouses). For transactions covered by the Rule, the broker/dealer must make a special suitability determination for the purchase and have received the purchaser's written agreement to the transaction prior to the sale. Consequently, the Rule may affect the ability of broker/dealers to sell our securities and also may affect your ability to sell your shares in the secondary market.

Section 15(g) also imposes additional sales practice requirements on broker/dealers who sell penny securities. These rules require a one-page summary of certain essential items. The items include the risk of investing in penny stocks in both public offerings and secondary marketing; terms important to in understanding of the function of the penny stock market, such as bid and offer quotes, a dealers spread and broker/dealer compensation; the broker/dealer compensation, the broker/dealers' duties to its customers, including the disclosures required by any other penny stock disclosure rules; the customers' rights and remedies in cases of fraud in penny stock transactions; and, the FINRA's toll free telephone number and the central number of the North American Securities Administrators Association, for information on the disciplinary history of broker/dealers and their associated persons.

**Dividends**

The Company has not declared or paid a cash dividend to stockholders since it was organized and does not intend to pay dividends in the foreseeable future. The board of directors presently intends to retain any earnings to finance our operations and does not expect to authorize cash dividends in the foreseeable future. Any payment of cash dividends in the future will depend upon the Company's earnings, capital requirements and other factors.

**Trading Market**

Our Common Stock is quoted on the OTCMarkets Pink Open Market Sheets under the symbol SNNC.

**THE OFFERING**

**______**

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| | |
|:---|:---|
| **Issuer:** | Sibannac, Inc. |
| **Securities offered:** | A maximum of 27,000,000 Units, par value $0.001 ("Units") at an offering price of $0.15 per Unit (the "Offered Units"). Each Unit contains 5 shares of our common stock and 1 warrant. The total number of shares included in the Units is 135,000,000 and the total underlying shares of all warrants is 27,000,000 (See "Distribution.") |
| **Number of shares of Common Stock outstanding before the offering** | 80,142,821 issued and outstanding as of February 7, 2023 |
| **Number of shares of Common Stock to be outstanding after the offering** | 215,142,821 shares, if the maximum amount of Offered Units are sold. The total number of shares of our common stock outstanding assumes that the maximum number of units containing shares of our common stock and warrants is sold in this offering. |
| **Number of Warrants to be outstanding after the offering** | A maximum of 27,000,000 Warrants, par value $0.001. |
| **Number of shares of Common Stock to be outstanding if all the warrants are exercised** | 242,142,821 shares, if the maximum amount of Offered Units are sold and all the Warrants are exercised. The total number of shares of our common stock outstanding assumes that the maximum number of units, each containing shares of our common stock and warrants is sold in this offering and that all the warrants are exercised. |
| **Price per Unit:** | $0.15 per Unit. |
| **Maximum offering amount:** | 27,000,000 Units at $0.15 per Unit, or $4,050,000 and an additional $1,620,000 from the exercise of Warrants (See "Distribution."). The Company will not raise more than $20,000,000 in gross proceeds from this offering. |
| **Trading Market:** | Our Common Stock is trading on the OTC Markets Pink Open Market Sheets division under the symbol "SNNC." |
| **Use of proceeds:** | If we sell all of the Units being offered, and all the Warrants are exercised, our net proceeds (after our estimated offering expenses) will be $5,670,000.00. We will use these net proceeds for working capital and other general corporate purposes. |
| **Risk factors:** | Investing in our Common Stock involves a high degree of risk, including:<br>Immediate and substantial dilution.<br>Limited market for our stock.<br>See "Risk Factors."  |

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**RISK FACTORS**

**______**

The following is only a brief summary of the risks involved in investing in our Company. Investment in our Securities involves risks. You should carefully consider the following risk factors in addition to other information contained in this Disclosure Document. The occurrence of any of the following risks might cause you to lose all or part of your investment. Some statements in this Document, including statements in the following risk factors, constitute "Forward-Looking Statements."

***The price of our common stock may continue to be volatile.***

The trading price of our common stock has been and is likely to remain highly volatile and could be subject to wide fluctuations in response to various factors, some of which are beyond our control or unrelated to our operating performance. In addition to the factors discussed in this "Risk Factors" section and elsewhere, these factors include: the operating performance of similar companies; the overall performance of the equity markets; the announcements by us or our competitors of acquisitions, business plans, or commercial relationships; threatened or actual litigation; changes in laws or regulations relating to our businesses; any major change in our board of directors or management; publication of research reports or news stories about us, our competitors, or our industry or positive or negative recommendations or withdrawal of research coverage by securities analysts; large volumes of sales of our shares of common stock by existing stockholders; and general political and economic conditions.

In addition, the stock market in general, and the market for developmental related companies in particular, has experienced extreme price and volume fluctuations that have often been unrelated or disproportionate to the operating performance of those companies' securities. This litigation, if instituted against us, could result in very substantial costs; divert our management's attention and resources; and harm our business, operating results, and financial condition.

***There are doubts about our ability to continue as a going concern.***

The Company is an early-stage enterprise and has commenced principal operations. The Company had $6,415 in revenues and has incurred losses from operations of $528,755 for the year ended August 31, 2022. These factors raise substantial doubt about the Company's ability to continue as a going concern.

There can be no assurance that sufficient funds required during the next year or thereafter will be generated from operations or that funds will be available from external sources, such as debt or equity financings or other potential sources. The lack of additional capital resulting from the inability to generate cash flow from operations, or to raise capital from external sources would force the Company to substantially curtail or cease operations and would, therefore, have a material adverse effect on its business. Furthermore, there can be no assurance that any such required funds, if available, will be available on attractive terms or that they will not have a significant dilutive effect on the Company's existing stockholders.

The Company intends to overcome the circumstances that impact its ability to remain a going concern through a combination of the growth of revenues, with interim cash flow deficiencies being addressed through additional equity and debt financing. The Company anticipates raising additional funds through public or private financing, strategic relationships or other arrangements in the near future to support its business operations; however, the Company may not have commitments from third parties for a sufficient amount of additional capital. The Company cannot be certain that any such financing will be available on acceptable terms, or at all, and its failure to raise capital when needed could limit its ability to continue its operations. The Company's ability to obtain additional funding will determine its ability to continue as a going concern. Failure to secure additional financing in a timely manner and on favorable terms would have a material adverse effect on the Company's financial performance, results of operations and stock price and require it to curtail or cease operations, sell off its assets, seek protection from its creditors through bankruptcy proceedings, or otherwise. Furthermore, additional equity financing may be dilutive to the holders of the Company's common stock, and debt financing, if available, may involve restrictive covenants, and strategic relationships, if necessary, to raise additional funds, and may require that the Company relinquish valuable rights. Please see Financial Statements – Note 3. Going Concern for further information.

***There is no minimum capitalization required in this offering.***

We cannot assure that all or a significant number of the units consisting of common stock and warrants will be sold in this offering. Investors' subscription funds will be used by us as soon as they are received, and no refunds will be given if an inadequate amount of money is raised from this offering to enable us to conduct our business. Management has no obligation or plans to purchase units. If we raise less than the entire amount that we are seeking in the offering, then we may not have sufficient capital to meet our operating requirements. We cannot assure that we could obtain additional financing or capital from any source, or that such financing or capital would be available to us on terms acceptable to us. Under such circumstances, investors in our company could lose their investment in us. Furthermore, investors who subscribe for units in the earlier stages of the offering will assume a greater risk than investors who subscribe for units later in the offering as subscriptions approach the maximum amount.

***We determined the price of the Units arbitrarily.***

The offering price of the units each containing 5 Shares of Common Stock and 1 warrant has been determined by management, and bears no relationship to our assets, book value, potential earnings, net worth or any other recognized criteria of value. We cannot assure that the price of the units is the fair market value of the units or that investors will earn any profit on them.

**<u>Risks Relating to Our Financial Condition</u>**

***Our financials are not independently audited, which could result in errors and/or omissions in our financial statements if proper standards are not applied.***

Although the Company is confident with its accounting, we are not required to have our financials audited by a certified Public Company Accounting Oversight Board ("PCAOB"). As such, our accountants do not have a third party reviewing the accounting. Our accountants may also not be up to date with all publications and releases put out by the PCAOB regarding accounting standards and treatments. This could mean that our unaudited financials may not properly reflect up to date standards and treatments resulting misstated financials statements.

***Our management has limited experience operating a public company and is subject to the risks commonly encountered by early-stage companies.***

Although the management of Sibannac, Inc. has experience in operating small companies, current management has not previously had much experience managing expansion while being a public company. Many investors may treat us as an early-stage company. Because we have a limited operating history, our operating prospects should be considered in light of the risks and uncertainties frequently encountered by early-stage companies in rapidly evolving markets. These risks include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· risks that we may not have sufficient capital to achieve our growth strategy;

· risks that we may not develop our products and service offerings in a manner that enables us to be profitable and meet our customers'
requirements;

· risks that our growth strategy may not be successful; and

· risks that fluctuations in our operating results will be significant relative to our revenues.

These risks are described in more detail below. Our future growth will depend substantially on our ability to address these and the other risks described in this section. If we do not successfully address these risks, our business could be significantly harmed.

***We have a limited operational history in an emerging industry, making it difficult to accurately predict and forecast business operations.***

As we have limited operations in our business and have only recently begun to generate revenue, it is extremely difficult to make accurate predictions and forecasts on our finances. This is compounded by the fact that we operate in the CBD, and nutraceutical industries, which are highly competitive and rapidly evolving. There is no guarantee that our products or services will remain attractive to potential and current users as these industries undergo rapid change, or that potential customers will utilize our services.

***As a growing company, we have yet to achieve a profit and may not achieve a profit in the near future, if at all.***

We have not yet produced a net profit and may not in the near future, if at all. While we expect our revenue to grow, we have not achieved profitability and cannot be certain that we will be able to sustain our current growth rate or realize sufficient revenue to achieve profitability. Further, many of our competitors have a significantly larger user base and revenue stream but have yet to achieve profitability. Our ability to continue as a going concern may be dependent upon raising capital from financing transactions, increasing revenue throughout the year and keeping operating expenses below our revenue levels in order to achieve positive cash flows, none of which can be assured.

***We will require additional capital to support business growth, and this capital might not be available on acceptable terms, if at all.***

We intend to continue to make investments to support our business growth and may require additional funds to respond to business challenges, including the potential need to update our website, add to our inventory, and improve our operating infrastructure or acquire complementary businesses and brands. Accordingly, we will need to engage in continued equity or debt financings to secure additional funds. If we raise additional funds through future issuances of equity or convertible debt securities, our existing stockholders could suffer significant dilution, and any new equity securities we issue could have rights, preferences and privileges superior to those of our common stock. Any debt financing, we secure in the future could involve restrictive covenants relating to our capital raising activities and other financial and operational matters, which may make it more difficult for us to obtain additional capital and to pursue business opportunities. We may not be able to obtain additional financing on terms favorable to us, if at all. If we are unable to obtain adequate financing or financing on terms satisfactory to us when we require it, our ability to continue to support our business growth and to respond to business challenges could be impaired, and our business may be harmed.

***We are highly dependent on the services of our key executives, the loss of whom could materially harm our business and our strategic direction. If we lose key management or significant personnel, cannot recruit qualified employees, directors, officers, or other personnel or experience increases in our compensation costs, our business may materially suffer.***

We are highly dependent on our management, specifically David Mersky. If we lose key management or employees, our business may suffer. Furthermore, our future success will also depend in part on the continued service of our management personnel and our ability to identify, hire, and retain additional key personnel. We do not carry "key-man" life insurance on the lives of any of our executives, employees or advisors. We experience intense competition for qualified personnel and may be unable to attract and retain the personnel necessary for the development of our business. Because of this competition, our compensation costs may increase significantly.

***We operate in a highly competitive environment, and if we are unable to compete with our competitors, our business, financial condition, results of operations, cash flows and prospects could be materially adversely affected.***

We operate in a highly competitive environment. Our competition includes all other companies that are in the business of selling functional drinks, CBD products, Kratom, B17 vitamins, nutraceuticals or other related items. A highly competitive environment could materially adversely affect our business, financial condition, results of operations, cash flows and prospects.

***We may not be able to compete successfully with other established companies offering the same or comparable products and, as a result, we may not achieve our projected revenue and user targets.***

If we are unable to compete successfully with other businesses in our existing markets, we may not achieve our projected revenue and/or customer targets. We compete with both start-up and established companies. Compared to our business, some of our competitors may have greater financial and other resources, have been in business longer, have greater name recognition and be better established in our markets.

***Our lack of adequate D&O insurance may also make it difficult for us to retain and attract talented and skilled directors and officers.***

In the future we may be subject to additional litigation, including potential class action and stockholder derivative actions. Risks associated with legal liability are difficult to assess and quantify, and their existence and magnitude can remain unknown for significant periods of time. To date, we have not obtained directors and officers liability ("D&O") insurance. Without adequate D&O insurance, the amounts we would pay to indemnify our officers and directors should they be subject to legal action based on their service to the Company could have a material adverse effect on our financial condition, results of operations and liquidity. Furthermore, our lack of adequate D&O insurance may make it difficult for us to retain and attract talented and skilled directors and officers, which could adversely affect our business.

***We expect to incur substantial expenses to meet our reporting obligations as a public company. In addition, failure to maintain adequate financial and management processes and controls could lead to errors in our financial reporting and could harm our ability to manage our expenses.***

We estimate that it will cost approximately $50,000 annually to maintain the proper management and financial controls for our filings required as a public company. In addition, if we do not maintain adequate financial and management personnel, processes and controls, we may not be able to accurately report our financial performance on a timely basis, which could cause a decline in our stock price and adversely affect our ability to raise capital.

**<u>Risks Relating to our Common Stock and Offering</u>**

***The Common Stock is thinly traded, so you may be unable to sell at or near ask prices or at all if you need to sell your shares to raise money or otherwise desire to liquidate your shares.***

The Common Stock has historically been sporadically traded on the OTC Pink Sheets, meaning that the number of persons interested in purchasing our shares at, or near ask prices at any given time, may be relatively small or non-existent. This situation is attributable to a number of factors, including the fact that we are a small company which is relatively unknown to stock analysts, stock brokers, institutional investors and others in the investment community that generate or influence sales volume, and that even if we came to the attention of such persons, they tend to be risk-averse and would be reluctant to follow an unproven company such as ours or purchase or recommend the purchase of our shares until such time as we became more seasoned and viable. As a consequence, there may be periods of several days or more when trading activity in our shares is minimal or non-existent, as compared to a seasoned issuer, which has a large and steady volume of trading activity that will generally support continuous sales without an adverse effect on share price. We cannot give you any assurance that a broader or more active public trading market for our common shares will develop or be sustained, or that current trading levels will be sustained.

***The market price for the common stock is particularly volatile given our status as a relatively unknown company with a small and thinly traded public float, limited operating history, and relatively small revenues, which could lead to wide fluctuations in our share price. The price at which you purchase our shares may not be indicative of the price that will prevail in the trading market. You may be unable to sell your common shares at or above your purchase price, which may result in substantial losses to you****.*

The market for our shares of common stock is characterized by significant price volatility when compared to seasoned issuers, and we expect that our share price will continue to be more volatile than a seasoned issuer for the indefinite future. The volatility in our share price is attributable to a number of factors. First, as noted above, our shares are sporadically traded. Because of this lack of liquidity, the trading of relatively small quantities of shares may disproportionately influence the price of those shares in either direction. The price for our shares could, for example, decline precipitously in the event that a large number of our shares is sold on the market without commensurate demand, as compared to a seasoned issuer which could better absorb those sales without adverse impact on its share price. Secondly, we are a speculative investment due to, among other matters, our limited operating history and small revenue or lack of profit to date, and the uncertainty of future market acceptance for our potential products. As a consequence of this enhanced risk, more risk-averse investors may, under the fear of losing all or most of their investment in the event of negative news or lack of progress, be more inclined to sell their shares on the market more quickly and at greater discounts than would be the case with the securities of a seasoned issuer. The following factors may add to the volatility in the price of our shares: actual or anticipated variations in our quarterly or annual operating results; acceptance of our CBD, Kratom, B17 and nutraceutical products, government regulations, announcements of significant acquisitions, strategic partnerships or joint ventures; our capital commitments and additions or departures of our key personnel. Many of these factors are beyond our control and may decrease the market price of our shares regardless of our operating performance. We cannot make any predictions or projections as to what the prevailing market price for our shares will be at any time, including as to whether our shares will sustain their current market prices, or as to what effect the sale of shares or the availability of shares for sale at any time will have on the prevailing market price.

Shareholders should be aware that, according to SEC Release No. 34-29093, the market for penny stocks has suffered in recent years from patterns of fraud and abuse. Such patterns include (1) control of the market for the security by one or a few broker-dealers that are often related to the promoter or issuer; (2) manipulation of prices through prearranged matching of purchases and sales and false and misleading press releases; (3) boiler room practices involving high-pressure sales tactics and unrealistic price projections by inexperienced sales persons; (4) excessive and undisclosed bid-ask differential and markups by selling broker-dealers; and (5) the wholesale dumping of the same securities by promoters and broker-dealers after prices have been manipulated to a desired level, along with the resulting inevitable collapse of those prices and with consequent investor losses. Our management is aware of the abuses that have occurred historically in the penny stock market. Although we do not expect to be in a position to dictate the behavior of the market or of broker-dealers who participate in the market, management will strive within the confines of practical limitations to prevent the described patterns from being established with respect to our securities. The possible occurrence of these patterns or practices could increase the volatility of our share price.

***The market price of our common stock may be volatile and adversely affected by several factors.***

The market price of our common stock could fluctuate significantly in response to various factors and events, including, but not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· our ability to integrate operations, technology, products and services;

· our ability to execute our business plan;

· operating results below expectations;

· our issuance of additional securities, including debt or equity or a combination thereof;

· announcements of technological innovations or new products by us or our competitors;

· loss of any strategic relationship;

· industry developments, including, without limitation, changes in competition or practices;

· economic and other external factors;

· period-to-period fluctuations in our financial results; and

· whether an active trading market in our common stock develops and is maintained.

In addition, the securities markets have from time to time experienced significant price and volume fluctuations that are unrelated to the operating performance of particular companies. These market fluctuations may also materially and adversely affect the market price of our common stock. Issuers using the Alternative Reporting standard for filing financial reports with OTC Markets are often subject to large volatility unrelated to the fundamentals of the company.

***We do not expect to pay dividends in the foreseeable future; any return on investment may be limited to the value of our common stock.***

We do not currently anticipate paying cash dividends in the foreseeable future. The payment of dividends on our common stock will depend on earnings, financial condition and other business and economic factors affecting it at such time as the board of directors may consider relevant. Our current intention is to apply net earnings, if any, in the foreseeable future to increasing our capital base and development and marketing efforts. There can be no assurance that the Company will ever have sufficient earnings to declare and pay dividends to the holders of our common stock, and in any event, a decision to declare and pay dividends is at the sole discretion of our board of directors. If we do not pay dividends, our common stock may be less valuable because a return on your investment will only occur if its stock price appreciates.

***Our issuance of additional shares of Common Stock, or options or warrants to purchase those shares, would dilute your proportionate ownership and voting rights.***

We are entitled under our articles of incorporation to issue up to 300,000,000 shares of common stock. We have issued and outstanding, as of February 7, 2023, 80,142,821 shares of common stock. In addition, we are entitled under our Articles of Incorporation to issue "blank check" preferred stock. Our board may generally issue shares of common stock, preferred stock, options, or warrants to purchase those shares, without further approval by our shareholders based upon such factors as our board of directors may deem relevant at that time. It is likely that we will be required to issue a large amount of additional securities to raise capital to further our development. It is also likely that we will issue a large amount of additional securities to directors, officers, employees and consultants as compensatory grants in connection with their services, both in the form of stand-alone grants or under our stock plans. We cannot give you any assurance that we will not issue additional shares of common stock, or options or warrants to purchase those shares, under circumstances we may deem appropriate at the time.

***The elimination of monetary liability against our directors, officers and employees under our Articles of Incorporation and the existence of indemnification rights to our directors, officers and employees may result in substantial expenditures by our company and may discourage lawsuits against our directors, officers and employees.***

Our Articles of Incorporation contain provisions that eliminate the liability of our directors for monetary damages to our company and shareholders. Our bylaws also require us to indemnify our officers and directors. We may also have contractual indemnification obligations under our agreements with our directors, officers and employees. The foregoing indemnification obligations could result in our company incurring substantial expenditures to cover the cost of settlement or damage awards against directors, officers and employees that we may be unable to recoup. These provisions and resulting costs may also discourage our company from bringing a lawsuit against directors, officers and employees for breaches of their fiduciary duties, and may similarly discourage the filing of derivative litigation by our shareholders against our directors, officers and employees even though such actions, if successful, might otherwise benefit our company and shareholders.

***We may become involved in securities class action litigation that could divert management's attention and harm our business****.*

The stock market in general, and the shares of early-stage companies in particular, have experienced extreme price and volume fluctuations. These fluctuations have often been unrelated or disproportionate to the operating performance of the companies involved. If these fluctuations occur in the future, the market price of our shares could fall regardless of our operating performance. In the past, following periods of volatility in the market price of a particular company's securities, securities class action litigation has often been brought against that company. If the market price or volume of our shares suffers extreme fluctuations, then we may become involved in this type of litigation, which would be expensive and divert management's attention and resources from managing our business.

As a public company, we may also from time to time make forward-looking statements about future operating results and provide some financial guidance to the public markets. Our management has limited experience as a management team in a public company and as a result, projections may not be made in a timely way or set at expected performance levels and could materially affect the price of our shares. Any failure to meet published forward-looking statements that adversely affect the stock price could result in losses to investors, stockholder lawsuits or other litigation, sanctions or restrictions issued by the SEC.

***Our common stock is currently deemed a "penny stock," which makes it more difficult for our investors to sell their shares.***

The SEC has adopted Rule 15g-9 which establishes the definition of a "penny stock," for the purposes relevant to us, as any equity security that has a market price of less than $5.00 per share, subject to certain exceptions. For any transaction involving a penny stock, unless exempt, the rules require that a broker or dealer approve a person's account for transactions in penny stocks, and the broker or dealer receive from the investor a written agreement to the transaction, setting forth the identity and quantity of the penny stock to be purchased.

In order to approve a person's account for transactions in penny stocks, the broker or dealer must obtain financial information and investment experience objectives of the person and make a reasonable determination that the transactions in penny stocks are suitable for that person and the person has sufficient knowledge and experience in financial matters to be capable of evaluating the risks of transactions in penny stocks.

The broker or dealer must also deliver, prior to any transaction in a penny stock, a disclosure schedule prescribed by the SEC relating to the penny stock market, which, in highlight form sets forth the basis on which the broker or dealer made the suitability determination, and that the broker or dealer received a signed, written agreement from the investor prior to the transaction.

Generally, brokers may be less willing to execute transactions in securities subject to the "penny stock" rules. This may make it more difficult for investors to dispose of our common stock if and when such shares are eligible for sale and may cause a decline in the market value of its stock.

Disclosure also has to be made about the risks of investing in penny stocks in both public offerings and in secondary trading, and about the commissions payable to both the broker-dealer and the registered representative, current quotations for the securities, and the rights and remedies available to an investor in cases of fraud in penny stock transactions. Finally, monthly statements have to be sent disclosing recent price information for the penny stock held in the account and information on the limited market in penny stock.

***As an issuer of a "penny stock," the protection provided by the federal securities laws relating to forward-looking statements does not apply to us.***

Although federal securities laws provide a safe harbor for forward-looking statements made by a public company that files reports under the federal securities laws, this safe harbor is not available to issuers of penny stocks. As a result, we will not have the benefit of this safe harbor protection in the event of any legal action based upon a claim that the material provided by us contained a material misstatement of fact or was misleading in any material respect because of our failure to include any statements necessary to make the statements not misleading. Such an action could hurt our financial condition.

***As an issuer not required to make reports to the Securities and Exchange Commission under Section 13 or 15(d) of the Securities Exchange Act of 1934, holders of restricted shares may not be able to sell shares into the open market as Rule 144 exemptions may not apply.***

Under Rule 144 of the Securities Act of 1933, holders of restricted shares may avail themselves of certain exemptions from registration if the holder and the issuer meet certain requirements. As a company that is not required to file reports under Section 13 or 15(d) of the Securities Exchange Act, referred to as a non-reporting company, we may not, in the future, meet the requirements for an issuer under 144 that would allow a holder to qualify for Rule 144 exemptions. In such an event, holders of restricted stock would have to utilize another exemption from registration or rely on a registration statement to be filed by the Company registering the restricted stock. Although the Company currently plans to file either a form 10 or S-1 with the Commission upon the conclusion of the Regulation A offering, there can be no guarantee that the Company will be able to fulfill one of these registration statements, which could have an adverse effect on our shareholders.

***Because directors and officers currently and for the foreseeable future will continue to control Sibannac, Inc., it is not likely that you will be able to elect directors or have any say in the policies of Sibannac, Inc.***

Our shareholders are not entitled to cumulative voting rights. Consequently, the election of directors and all other matters requiring shareholder approval will be decided by majority vote. The directors, officers and affiliates of Sibannac, Inc., beneficially own a majority of our outstanding common stock voting rights, through the holding of the Series A Preferred Shares. Due to such significant ownership position held by our insiders, new investors may not be able to affect a change in our business or management, and therefore, shareholders would have no recourse as a result of decisions made by management.

In addition, sales of significant amounts of shares held by our directors, officers or affiliates, or the prospect of these sales, could adversely affect the market price of our common stock. Management's stock ownership may discourage a potential acquirer from making a tender offer or otherwise attempting to obtain control of us, which in turn could reduce our stock price or prevent our stockholders from realizing a premium over our stock price.

**<u>Risks Relating to Our Company and Industry</u>**

The following risks relate to our businesses and the effects upon us assuming we obtain financing in a sufficient amount.

***We operate in a highly competitive environment, and if we are unable to compete with our competitors, our business, financial condition, results of operations, cash flows and prospects could be materially adversely affected.***

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We operate in a highly competitive environment. Our competition includes all other companies that are in the business of producing or distributing hemp-based products for personal use or consumption. Many of our competitors have greater resources that may enable them to compete more effectively than us in the functional drinks and CBD industry. Some of our competitors have a longer operating history and greater capital resources, facilities and product line diversity, which may enable them to compete more effectively in this market. Our competitors may devote their resources to developing and marketing products that will directly compete with our product lines. The Company expects to face additional competition from existing competitors and new market entrants. If a significant number of new entrants enter the market in the near term, the Company may experience increased competition for market share and may experience downward pricing pressure on the Company's products as new entrants increase production. Such competition may cause us to encounter difficulties in generating revenues and market share, and in positioning our products in the market. If we are unable to successfully compete with existing companies and new entrants to the market, our lack of competitive advantage will have a negative impact on our business and financial condition.

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***Unfavorable publicity or consumer perception of our products or similar products developed and distributed by other companies could have a material adverse effect on our reputation, which could result in decreased sales and fluctuations in our business, financial condition and results of operations.***

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We depend on consumer perception regarding the safety and quality of our products, as well as similar products marketed and distributed by other companies. Consumer perception of our functional drink and hemp-based products can be significantly influenced by adverse publicity in the form of published scientific research, national media attention or other publicity, which may associate consumption of our products or other similar products with adverse effects or question the benefits and/or effectiveness of our products or similar products. A new product may initially be received favorably, resulting in high sales of that product, but that level of sales may not be sustainable as consumer preferences change over time. Future scientific research or publicity could be unfavorable to our industry or any of our particular products and may not be consistent with earlier favorable research or publicity. Unfavorable research or publicity could have a material adverse effect on our ability to generate sales.

 **

***Our failure to appropriately and timely respond to changing consumer preferences and demand for new products and services could significantly harm our customer relationships and have a material adverse effect on our business, financial condition and results of operations.***

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Our business is subject to changing consumer trends and preferences. Our failure to accurately predict or react to these trends could negatively impact consumer opinion of us as a source for the latest products, which in turn could harm our customer relationships and cause us to lose market share. The success of our product offerings depends upon a number of factors, including our ability to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Anticipate customer needs;

· Innovate and develop new products;

· Successfully introduce new products in a timely manner;

· Price our products competitively with retail and online competitors;

· Deliver our products in sufficient volumes and in a timely manner; and

· Differentiate our product offerings from those of our competitors.

If we do not introduce new products or make enhancements to meet the changing needs of our customers in a timely manner, some of our products could be rendered obsolete, which could have a material adverse effect on our financial condition and results of operations.

***Future acquisitions or strategic investments and partnerships could be difficult to identify and integrate with our business, disrupt our business, and adversely affect our financial condition and results of operations.***

We may seek to acquire or invest in businesses and product lines that we believe could complement or expand our product offerings, or otherwise offer growth opportunities. The pursuit of potential acquisitions may divert the attention of management and cause us to incur various expenses in identifying, investigating, and pursuing suitable acquisitions, whether or not the acquisitions are completed. Future acquisitions could also result in dilutive issuances of equity securities or the incurrence of debt, which could adversely affect our financial position and results of operations. In addition, if an acquired business or product line fails to meet our expectations, our business, financial condition, and results of operations may be adversely affected.

***Failure to successfully integrate acquired businesses and their products and other assets into our Company, or if integrated, failure to further our business strategy, may result in our inability to realize any benefit from such an acquisition.***

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We expect to grow by acquiring relevant businesses, including other cannabis or functional drink related businesses. The consummation and integration of any acquired business, product or other assets into our Company may be complex and time consuming and, if such businesses and assets are not successfully integrated, we may not achieve the anticipated benefits, cost-savings or growth opportunities. Furthermore, these acquisitions and other arrangements, even if successfully integrated, may fail to further our business strategy as anticipated, expose our Company to increased competition or other challenges with respect to our products or geographic markets, and expose us to additional liabilities associated with an acquired business, technology or other asset or arrangement.

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 ***The sale of ingested products involves product liability and other risks.***

Like other distributors of products that are ingested, the Company faces an inherent risk of exposure to product liability claims if the use of its products results in illness or injury. The products that the Company sells in the U.S. are subject to laws and regulations, including those administered by the USDA and FDA that establish manufacturing practices and quality standards for food products. Product liability claims could have a material adverse effect on the Company's business as existing insurance coverage may not be adequate. Distributors of vitamins, nutritional supplements and minerals, have been named as defendants in product liability lawsuits from time to time. The successful assertion or settlement of an uninsured claim, a significant number of insured claims or a claim exceeding the limits of the Company's insurance coverage would harm the Company by adding costs to its business and by diverting the attention of senior management from the operation of its business. The Company may also be subject to claims that its products contain contaminants, are improperly labeled, include inadequate instructions as to use or inadequate warnings covering interactions with other substances. Product liability litigation, even if not meritorious, is very expensive and could also entail adverse publicity for the Company and reduce its revenue. In addition, the products the Company distributes, or certain components of those products, may be subject to product recalls or other deficiencies. Any negative publicity associated with these actions would adversely affect the Company's brand and may result in decreased product sales and, as a result, lower revenues and profits.

 ***Significant additional labeling or warning requirements may inhibit sales of affected products.***

Various jurisdictions may seek to adopt significant additional product labeling or warning requirements relating to the content or perceived adverse health consequences of the Company's product. If these types of requirements become applicable to the Company's product under current or future environmental or health laws or regulations, they may inhibit sales of such products.

***We have limited supply sources, and price increases or supply shortages of key raw materials could materially and adversely affect our business, financial condition and results of operations.***

Our products are composed of certain key raw materials. If the prices of such raw materials increase significantly, it could result in a significant increase in our product development costs. If raw material prices increase in the future, we may not be able to pass on such price increases to our customers. A significant increase in the price of raw materials that cannot be passed on to customers could have a material adverse effect on our business, financial condition and results of operations.

The Company believes that its continued success will depend upon the availability of raw materials that permit the Company to meet its labeling claims and quality control standards. The supply of our industrial hemp is subject to the same risks normally associated with agricultural production, such as climactic conditions, insect infestations and availability of manual labor or equipment for harvesting. Any significant delay in or disruption of the supply of raw materials could substantially increase the cost of such materials, could require product reformulations, the qualification of new suppliers and repackaging and could result in a substantial reduction or termination by the Company of its sales of certain products, any of which could have a material adverse effect upon the Company. Accordingly, there can be no assurance that the disruption of the Company's supply sources will not have a material adverse effect on the Company.

***Loss of key contracts with our suppliers, renegotiation of such agreements on less favorable terms or other actions these third parties may take could harm our business.***

Most of our agreements with suppliers of our industrial hemp, including our key supplier contract, are short term. The loss of these agreements, or the renegotiation of these agreements on less favorable economic or other terms, could limit our ability to procure raw material to manufacture our products. This could negatively affect our ability to meet consumer demand for our products. Upon expiration or termination of these agreements, our competitors may be able to secure industrial hemp from our existing suppliers, which will put the company at a competitive disadvantage in the market.

***We have limited existing brand identity and customer loyalty; if we fail to market our brand to promote our service offerings, our business could suffer.***

We believe that establishing and maintaining brand identity and brand loyalty is critical to attracting customers once we have a commercially scalable product. In order to attract customers to our functional drink and CBD and supplement products we may be forced to spend substantial funds to create and maintain brand recognition among consumers. We believe that the cost of our sales campaigns could increase substantially in the future. If our branding efforts are not successful, our ability to earn revenues and sustain our operations will be harmed.

***In the event we are not successful in reaching our revenue targets, additional funds may be required.***

We may not be able to proceed with our business plan for the development and marketing of our core services. Should this occur, we may be forced to suspend or cease operations. Management intends to raise additional funds by way of a public or private offering. While we believe in the viability of our strategy to increase revenues and in our ability to raise additional funds, there can be no assurances to that effect. Our ability to continue as a going concern is dependent upon our ability to further implement our business plan, raise additional money, and generate sufficient revenues.

***While we are attempting to generate sufficient revenues, our cash position may not be enough to support our daily operations.***

Management intends to raise additional funds by way of a public offering or additional private offerings, by the exercise of outstanding warrants, or by alternative methods. While we believe in the viability of our strategy to increase revenues and in our ability to raise additional funds, there can be no assurances to that effect. Our ability to continue as a going concern is dependent upon our ability to further implement our business plan, raise additional money, and generate sufficient revenues.

***There is limited availability of clinical studies.***

Although hemp plants have a long history of human consumption, there is little long-term experience with human consumption of certain of these innovative product ingredients or combinations thereof in concentrated form. Although the Company performs research and/or tests the formulation and production of its products, there is limited clinical data regarding the safety and benefits of ingesting industrial hemp-based products. Any instance of illness or negative side effects of ingesting industrial hemp-based products would have a material adverse effect on our business and operations.

***We face substantial risk of product liability claims and potential adverse product publicity.***

Like any other retailer, distributor or manufacturer of products that are designed to be ingested, we face an inherent risk of exposure to product liability claims, regulatory action and litigation if our products are alleged to have caused loss or injury. In the event we do not have adequate insurance or contractual indemnification, product liability claims could have a material adverse effect on the Company. The Company is not currently a named defendant in any product liability lawsuit; however, other manufacturers and distributors of hemp-based products currently are or have been named as defendants in such lawsuits. The successful assertion or settlement of any uninsured claim, a significant number of insured claims, or a claim exceeding the Company's insurance coverage could have a material adverse effect on the Company.

***Our ability to adapt to industry changes in technology, or market circumstances, may drastically change the business environment in which we operate.***

If we are unable to recognize these changes in good time, are late in adjusting our business model, or if circumstances arise such as pricing actions by competitors, then this could have a material adverse effect on our growth ambitions, financial condition and operating results.

***We rely on the attraction and retention of talented employees*.**

Attracting and retaining talented employees in sales and marketing, research and development, finance and general management, as well as of specialized technical personnel, is critical to our success and could also result in business interruptions. There can be no assurance that we will be successful in attracting and retaining all the highly qualified employees and key personnel needed in the future.

***We may not be able to successfully compete against companies with substantially greater resources.***

The industries in which we operate in general are subject to intense and increasing competition. Some of our competitors may have greater capital resources, facilities, and diversity of product lines, which may enable them to compete more effectively in this market. Our competitors may devote their resources to developing and marketing products that will directly compete with our product lines. Due to this competition, there is no assurance that we will not encounter difficulties in obtaining revenues and market share or in the positioning of our products. There are no assurances that competition in our respective industries will not lead to reduced prices for our products. If we are unable to successfully compete with existing companies and new entrants to the market this will have a negative impact on our business and financial condition.

***Certain of the Company's products are dependent on consumer discretionary spending****.*

Certain of our functional drink, CBD, Kratom, and B17 products as well as the delivery methods may be susceptible to unfavorable changes in economic and consumer conditions. Decreases in consumer discretionary spending could negatively affect the Company's business and result in a decline in sales and financial performance.

***Our business is dependent upon suppliers.***

We plan on entering into supply agreements with manufacturers. Nevertheless, we remain dependent upon a limited number of suppliers for our products. Although we do not anticipate difficulty in obtaining adequate inventory at competitive prices, we can offer no assurance that such difficulties will not arise, especially if our demand for more products increases. The extent to which supply disruption will affect us remains uncertain. Our inability to obtain sufficient quantities of products at competitive prices would have a material adverse effect on our business, financial condition and results of operations.

***We cannot assure that we will earn a profit or that our products will be accepted by consumers.***

Our business is speculative and dependent upon acceptance of our products by consumers. Our operating performance will be heavily dependent on whether or not we are able to earn a profit on the sale of our products. We cannot assure that we will be successful or earn enough revenue to make a profit, or that investors will not lose their entire investment.

***Inventories maintained by the Company, the manufacturers and its customers may fluctuate from time to time.***

The Company relies in part on its dealer and customer relationships and predictions of the manufacturer and customer inventory levels in projecting future demand levels and financial results. These inventory levels may fluctuate, and may differ from the Company's predictions, resulting in the Company's projections of future results being different than expected. These changes may be influenced by changing relationships with the dealers and customers, economic conditions and customer preference for particular products. There can be no assurance that the Company's manufacturers and customers will maintain levels of inventory in accordance with the Company's predictions or past history, or that the timing of customers' inventory build or liquidation will be in accordance with the Company's predictions or past history.

***We may be unable to keep pace with changes in the industries that we serve and advancements in technology as our business and market strategy evolves.***

As changes in the industries we serve occur or macroeconomic conditions fluctuate we may need to adjust our business strategies or find it necessary to restructure our operations or businesses, which could lead to changes in our cost structure, the need to write down the value of assets, or impact our profitability. We will also make investments in existing or new businesses, including investments in technology and expansion of our business plans. These investments may have short-term returns that are negative or less than expected and the ultimate business prospects of the business may be uncertain.

As our business and market strategy evolves, we also will need to respond to technological advances and emerging industry standards in a cost-effective and timely manner in order to remain competitive, better and more interactive products and web accessibility standards. The need to respond to technological changes may require us to make substantial, unanticipated expenditures. There can be no assurance that we will be able to respond successfully to technological change.

 **Risks Related to the Functional Drink and CBD Industries**

***Laws and regulations affecting the CBD industry are evolving under the Farm Bill, and changes to applicable regulations may materially affect our future operations in the CBD market.***

The CBD used by the Company is derived from hemp as defined in the Agriculture Improvement Act of 2018 (United States) (the "Farm Bill ") and codified at 7 USC 1639o means "the plant Cannabis sativa L. and any part of that plant, including the seeds thereof and all derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of isomers, whether growing or not, with a delta-9 tetrahydrocannabinol concentration of not more than 0.3 percent on a dry weight basis." The *Cannabis sativa* plant and its derivatives may also be deemed marijuana, depending on certain factors. "Marijuana" is a Schedule I controlled substance and is defined in the Federal Controlled Substances Act at 21 USC Section 802(16) as "all parts of the plant Cannabis sativa L., whether growing or not; the seeds thereof; the resin extracted from any part of such plant; and every compound, manufacture, salt, derivative, mixture, or preparation of such plant, its seeds or resin." Exemptions to that definition provided in 21 USC Section 802(16) include "the mature stalks of such plant, fiber produced from such stalks, oil or cake made from the seeds of such plant, any other compound, manufacture, salt, derivative, mixture, or preparation of such mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of such plant which is incapable of germination" or hemp as defined in 7 USC 1639o.

Substances meeting the definition of "hemp" in the Farm Bill and 7 USC 1639o may be used in clinical studies and research through an Investigational New Drug ("IND") application with the Food and Drug Administration (the "FDA"). Substances scheduled as controlled substances, like marijuana, require more rigorous regulation, including interaction with several agencies including the FDA, the DEA, and the NIDA within the National Institutes of Health ("NIH").

Accordingly, if the CBD used by the Company is deemed marijuana and, therefore, a Schedule I controlled substance, the Company could be subject to significant additional regulation, as well as enforcement actions and penalties pertaining to the Federal Controlled Substances Act, and any resulting liability could require the Company to modify or cease its operations.

Furthermore, in conjunction with the Farm Bill, the FDA released a statement about the status of CBD as a nutritional supplement, noting that the Farm Bill explicitly preserved the FDA's authority to regulate products containing cannabis or cannabis-derived compounds under the Federal Food, Drug, and Cosmetic Act (the "FDCA") and Section 351 of the Public Health Service Act. Any difficulties we experience in complying with existing and/or new government regulation could increase our operating costs and adversely impact our results of operations in future periods. The FDA has issued guidance titled "FDA Regulation of Cannabis and Cannabis-Derived Products, Including Cannabidiol (CBD)" pursuant to which the FDA has taken the position that CBD is prohibited from use as an ingredient in a food or beverage or as a dietary ingredient in or as a dietary supplement based on several provisions of the FDCA. In the definition of "dietary supplement" found in the FDCA at 21 USC 321(ff), an article authorized for investigation as a new drug, antibiotic, or biological for which substantial clinical investigations have been instituted and for which the existence of such investigations has been made public, is excluded from the definition of dietary supplement. A similar provision in the FDCA at 21 USC 331(ll) makes it a prohibited act to introduce or deliver into commerce any food with a substance that was investigated as a new drug prior to being included in a food. There are no similar exclusions for the use of CBD in non-drug topical products, as long as such products otherwise comply with applicable laws. The FDA created a task force to address the further regulation of CBD and other cannabis-derived products and is currently evaluating the applicable science and pathways for regulating CBD and other cannabis-derived ingredients.

As a result of the Farm Bill's recent passage, we expect that there will be a constant evolution of laws and regulations affecting the CBD industry, which could affect the Company's plan of operations. Local, state and federal hemp laws and regulations may be broad in scope and subject to changing interpretations. These changes may require us to incur substantial costs associated with legal compliance and may ultimately require us to alter our business plan. Furthermore, violations of these laws, or alleged violations, could disrupt our business and result in a material adverse effect on our operations. We cannot predict the nature of any future laws, regulations, interpretations or applications, and it is possible that regulations may be enacted in the future that will be directly applicable to our business.

Changes to state laws pertaining to industrial hemp could slow the use of industrial hemp, which could impact our revenues in future periods. Approximately 40 states have authorized industrial hemp programs pursuant to the Farm Bill. Additionally, various states have enacted state-specific laws pertaining to the handling, manufacturing, labeling, and sale of CBD and other hemp products. Compliance with state-specific laws and regulations could impact our operations in those specific states. Continued development of the industrial hemp industry will be dependent upon new legislative authorization of industrial hemp at the state level, and further amendment or supplementation of legislation at the federal level. Any number of events or occurrences could slow or halt progress all together in this space. While progress within the industrial hemp industry is currently encouraging, growth is not assured, and while there appears to be ample public support for favorable legislative action, numerous factors may impact or negatively affect the legislative process(es) within the various states where we have business interests.

***Unfavorable interpretations of laws governing hemp processing activities could subject us to enforcement or other legal proceedings and limit our business and prospects.***

There are no express protections in the United States under applicable federal or state law for possessing or processing hemp biomass derived from lawful hemp not exceeding 0.3% THC on a dry weight basis and intended for use in finished product, but that may temporarily exceed 0.3% THC during the interim processing stages. While it is a common occurrence for hemp biomass to have variance in THC content during interim processing stages after cultivation but prior to use in finished products, there is risk that state or federal regulators or law enforcement could take the position that such hemp biomass is a Schedule I controlled substance in violation of the CSA and similar state laws. In the event that the Company's operations are deemed to violate any laws, the Company could be subject to enforcement actions and penalties, and any resulting liability could cause the Company to modify or cease its operations.

 **

***Different states and different advertising networks may have their own regulations and restrictions regarding advertising CBD products.***

 **

Relevant state and local laws may make it difficult to advertise in various markets. The two largest ad buying platforms — Facebook and Google — still do not allow CBD advertising (it is designated as a "dangerous product") on their platforms, which limits the digital marketing efforts of CBD companies to organic marketing. For new businesses, the inability to promote their brand without paid social and search ads makes it extremely challenging to get the qualified traffic needed to grow our online retail and wholesale businesses.

Additional regulatory considerations that must be taken into account include the Federal Trade Commission's regulation of unfair and deceptive product labeling and marketing, as well as state law regulation of food safety. States have the authority to regulate matters related to the health and safety of its own citizens, such that the 2018 Farm Bill and regulation by the USDA will not necessarily preempt state or local laws regulating the manufacture and distribution of cannabis-related products that are not directly in conflict with federal law. States may still choose to enact their own laws that can promote or restrict the sale of cannabis-based products. States such as Indiana and Alabama do not permit the sale of CBD oil on a personal level without a prescription.

Any and all claims of medicinal value must be substantiated with reputable scientific support and may be subject to evaluation by the FDA.

 ****

***There are limitations to how Functional Drinks and CBD may be marketed and what potential benefits may be advertised.***

Any and all claims of medicinal value must be substantiated with reputable scientific support and may be subject to evaluation by the FDA and we may be unable to effectively market our potential products without proper scientific documentation.

In April 2019, outgoing FDA Commissioner Scott Gottlieb acknowledged that the FDA is considering whether to use its authority to issue regulations that would permit the marketing of CBD in foods or as dietary supplements. However, until the law changes, it is the FDA's position that selling unapproved products with unsubstantiated therapeutic claims both violates the law and potentially puts patients at risk. Commissioner Gottlieb also asserted that it continues to be unlawful to market foods containing added CBD or THC or dietary supplements containing CBD or THC, regardless of whether the substances are hemp-derived and regardless of the claims being made. FDA takes this position based on the operation of statutory "exclusionary clauses" in the Food, Drug and Cosmetic Act related to food additives and dietary supplements. Specifically, FDA has determined that both CBD and THC, which are now active ingredients in FDA-approved drugs, were the subject of substantial clinical investigations before they were marketed as foods or dietary supplements, and due to the operation of the exclusionary clauses, FDA concludes that it is currently illegal to introduce CBD or THC into the food supply or to market these ingredients as dietary supplements.

Additional regulatory considerations that must be taken into account include the Federal Trade Commission's regulation of unfair and deceptive product labeling and marketing, as well as state law regulation of food safety.

***Costs associated with compliance with various laws and regulations could impact our financial results.***

The manufacture, labeling and distribution of functional drink and CBD products is regulated by various federal, state and local agencies. These governmental authorities may commence regulatory or legal proceedings, which could restrict our ability to market our functional drink or CBD-based products in the future. The FDA may regulate our products to ensure that the products are not adulterated or misbranded. We may also be subject to regulation by other federal, state and local agencies with respect to our functional drink or CBD-based products. Our advertising activities are subject to regulation by the FTC under the Federal Trade Commission Act. In recent years, the FTC and state attorneys general have initiated numerous investigations of dietary and nutritional supplement companies and products. Any actions or investigations initiated against the Company by governmental authorities or private litigants could have a material adverse effect on our business, financial condition and results of operations. Any actions or investigations initiated against the Company by governmental authorities or private litigants could have a material adverse effect on our business, financial condition and results of operations.

The shifting regulatory environment necessitates building and maintaining of robust systems to achieve and maintain compliance in multiple jurisdictions and increases the possibility that we may violate one or more of the legal requirements applicable to our business and products. If our operations are found to be in violation of any applicable laws or regulations, we may be subject to penalties, including, without limitation, civil and criminal penalties, damages, fines, the curtailment or restructuring of our operations, injunctions, or product withdrawals, recalls or seizures, any of which could adversely affect our ability to operate our business, our financial condition and results of operations.

***Uncertainty caused by potential changes to legal regulations could impact the use and acceptance of CBD products.***

There is substantial uncertainty and differing interpretations and opinions among federal, state and local regulatory agencies, legislators, academics and businesses as to the scope of operation of Farm Bill-compliant hemp programs relative to the emerging regulation of cannabinoids and the Controlled Substances Act. These different opinions include, but are not limited to, the regulation of cannabinoids by the DEA and/or the FDA, and the extent to which manufacturers of products containing Farm Bill-compliant cultivators and processors may engage in interstate commerce. The existing uncertainties in the CBD regulatory landscape in the United States cannot be resolved without further federal, and perhaps state-level, legislation and regulation or a definitive judicial interpretation of existing laws and regulations. If these uncertainties are not resolved in the near future or are resolved in the manner inconsistent with our business plan, such uncertainties may have an adverse effect upon our plan of operations and the introduction of our CBD-based products in different markets.

***If we fail to obtain necessary permits, licenses and approvals under applicable laws and regulations, our business and plan of operations may be adversely impacted.***

We may be required to obtain and maintain certain permits, licenses and regulatory approvals in the jurisdictions where we sell or plan to sell our products. There can be no assurance that we will be able to obtain or maintain any necessary licenses, permits or approvals. Any material delay in obtaining, or inability to obtain, such licenses, permits and approvals is likely to delay and/or inhibit our ability to carry out our plan of operations and could have a material adverse effect on our business, financial condition and results of operations.

***International expansion of our business could expose us to additional regulatory risks and compliance costs.***

If the Company intends to expand internationally or engage in the international sale of its products, it will become subject to the laws and regulations of the foreign jurisdictions in which it operates, or in which it imports or exports products or materials, including, but not limited to, customs regulations in the importing and exporting countries. The varying laws and rapidly changing regulations may impact the Company's operations and ability to ensure compliance. In addition, the Company may avail itself of proposed legislative changes in certain jurisdictions to expand its product portfolio, which expansion may include unknown business and regulatory compliance risks. Failure by the Company to comply with the evolving regulatory framework in any jurisdiction could have a material adverse effect on the Company's business, financial condition and results of operations.

 ***The market for Functional Drink and CBD products is highly competitive. If we are unable to compete effectively in the market, our business and operating results could be materially and adversely affected.***

The market for functional drink and CBD products is a competitive and rapidly evolving market. There are numerous competitors in the industry, some of whom are more well-established with longer operating histories and greater financial resources than the Company. We expect competition in the functional drink and CBD industry to continue to intensify. We believe the Company will be able to compete effectively because of the quality of our products and customer service. However, there can be no assurance that the Company will effectively compete with existing or future competitors. Increased competition may also drive the prices of our products down, which may have a material adverse effect on our results of operations in future periods.

Given the rapid changes affecting the global, national and regional economies generally, and the functional drink and CBD industry specifically, the Company may experience difficulties in establishing and maintaining a competitive advantage in the marketplace. The Company's success will depend on our ability to keep pace with any changes in such markets, especially legal and regulatory changes. Our success will depend on our ability to respond to, among other things, changes in the economy, market conditions and competitive pressures. Any failure to anticipate or respond adequately to such changes could have a material adverse effect on the Company's business, financial condition and results of operations.

***We are subject to numerous potential regulatory matters. If the DEA were to take actions against CBD products with less than 0.3% THC as Schedule 1 controlled substances, it could cause our Company to cease operations.***

The Drug Enforcement Administration ("DEA") which enforces the controlled substances laws of the United States has issued various rules and announcements concerning various items considered to be marijuana extracts which may encompass Cannabinoids. While we only sell Hemp Derived CBD products with less than 0.3% THC content, the DEA created a separate Administration Controlled Substances Code number for cannabis extract, which is defined to cover an extract containing one or more cannabinoids and stated that such extracts will continue to be treated as Schedule I controlled substances.

If the DEA were to take actions against CBD products as Schedule 1 controlled substances or restrict the marketing or distribution of any CBD product, it would likely result in our ceasing operations.

***Any potential growth in the cannabinoid or cannabis-related industries continues to be subject to new and changing state and local laws and regulations.***

Continued development of the cannabinoid and cannabis-related industries is dependent upon continued legislative legalization of cannabis and related products at the state level, and a number of factors could slow or halt progress in this area, even where there is public support for legislative action. Any delay or halt in the passing or implementation of legislation legalizing cannabis use, or its sale and distribution, or the re-criminalization or restriction of cannabis at the state level could negatively impact our business because of the perception that it is related to cannabis. Additionally, changes in applicable state and local laws or regulations could restrict the products and services we offer or impose additional compliance costs on us or our customers. Violations of applicable laws, or allegations of such violations, could disrupt our business and result in a material adverse effect on our operations. We cannot predict the nature of any future laws, regulations, interpretations or applications, and it is possible that regulations may be enacted in the future that will have a material adverse effect on our business.

***The Company may experience difficulty opening or maintaining bank accounts.***

It is possible that financial institutions may refuse to open bank accounts for the deposit of funds from our business, as some of our products are involved with the hemp industry. The inability to open bank accounts with certain institutions could materially and adversely affect our business.

 ****

***Risks Relating to the Internet***

***We are dependent on our telephone, Internet and management information systems for the sales and distribution of our products.***

Our success depends, in part, on our ability to provide prompt, accurate and complete service to our customers on a competitive basis and our ability to purchase and promote products, manage inventory, ship products, manage sales and marketing activities and maintain efficient operations through our telephone and management information system. A significant disruption in our telephone, Internet or management information systems could harm our relations with our customers and the ability to manage our operations. We can offer no assurance that our back-up systems will be sufficient to prevent an interruption in our operations in the event of disruption in our management information systems, and an extended disruption in the management information systems could adversely affect our business, financial condition and results of operations.

**Statements Regarding Forward-looking Statements**

**______**

This Disclosure Statement contains various "forward-looking statements." You can identify forward-looking statements by the use of forward-looking terminology such as "believes," "expects," "may," "will," "would," "could," "should," "seeks," "approximately," "intends," "plans," "projects," "estimates" or "anticipates" or the negative of these words and phrases or similar words or phrases. You can also identify forward-looking statements by discussions of strategy, plans or intentions. These statements may be impacted by a number of risks and uncertainties.

The forward-looking statements are based on our beliefs, assumptions and expectations of our future performance, taking into account all information currently available to us. These beliefs, assumptions and expectations are subject to risks and uncertainties and can change as a result of many possible events or factors, not all of which are known to us. If a change occurs, our business, financial condition, liquidity and results of operations may vary materially from those expressed in our forward-looking statements. You should carefully consider these risks before you make an investment decision with respect to our Securities. For a further discussion of these and other factors that could impact our future results, performance or transactions, see the section entitled "Risk Factors."

**USE OF PROCEEDS**

If we sell all of the Units being offered, and all the warrants are exercised our net proceeds (after our estimated offering expenses of $50,000) will be $5,670,000. We will use these net proceeds for the following:

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| | | | | |
|:---|:---|:---|:---|:---|
| **Units Offered (% Sold)** | **Units Sold <br> and<br> Warrants<br> Exercised<br> (100%)** | **Units Sold <br> and <br> Warrants<br> Exercised<br> (75%)** | **Units Sold <br> and <br> Warrants<br> Exercised<br> (50%)** | **Units Sold<br> and <br> Warrants<br> Exercised<br> (25%)** |
| **Gross Offering Proceeds** | $**5670000** | $**4252500** | $**2835000** | $**1417500** |
| *Approximate Offering Expenses (1)* |  |  |  |  |
| Misc. Expenses | 15000 | 15000 | 15000 | 15000 |
| Legal and Accounting | 35000 | 35000 | 35000 | 35000 |
| **Total Offering Expenses** | **50000** | **50000** | **50000** | **50000** |
| **Total Net Offering Proceeds** | **5520000** | **4202500** | **2785000** | **1367500** |
| *Principal Uses of Net Proceeds (2)* |  |  |  |  |
| Employee/Officers & Directors / Engineers / Independent Contractor Compensation | 650000 | 487500 | 400000 | 400000 |
| Marketing for Kratom/CBD/NOHO products and Facility | 500000 | 375000 | 200000 | 150000 |
| Equipment | 100000 | 75000 | 50000 | 0 |
| Legal & Accounting | 150000 | 150000 | 150000 | 150000 |
| Research and Development | 50000 | 50000 | 25000 | 0 |
| Inventory – | 1500000 | 1000000 | 750000 | 500000 |
| Transfer Agent fees | 3000 | 3000 | 3000 | 3000 |
| General and Administrative Expenses | 150000 | 150000 | 120000 | 120000 |
| Corporate Debt Reduction | 200000 | 100000 | 50000 | 0 |
| Advertising of Wellness Products | 500000 | 400000 | 300000 | 300000 |
| Potential Licensing Agreements | 100000 | 100000 | 0 | 0 |
| **Total Principal Uses of Net Proceeds** | 3903000 | 2940500 | 2048000 | 1623000 |
| **Amount Unallocated** | 1647000 | 1262000 | 737000 | 256000 |

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________________

(1) Offering expenses have been rounded up to
 $50,000.

(2) Any line item amounts not expended completely shall be held in reserve as working capital and subject to reallocation to other line-item expenditures as required for ongoing operations.

The precise amounts that we will devote to each of the foregoing items, and the timing of expenditures, will vary depending on numerous factors.

As indicated in the table above, if we sell only 75%, or 50%, or 25% of the shares offered for sale in this offering, we would expect to use the resulting net proceeds for the same purposes as we would use the net proceeds from a sale of 100% of the Units, and in approximately the same proportions, until such time as such use of proceeds would leave us without working capital reserve. At that point we would expect to modify our use of proceeds by limiting our expansion.

The expected use of net proceeds from this offering represents our intentions based upon our current plans and business conditions, which could change in the future as our plans and business conditions evolve and change. The amounts and timing of our actual expenditures, specifically with respect to working capital, may vary significantly depending on numerous factors. The precise amounts that we will devote to each of the foregoing items, and the timing of expenditures, will vary depending on numerous factors. As a result, our management will retain broad discretion over the allocation of the net proceeds from this offering.

In the event we do not sell all of the Units being offered, we may seek additional financing from other sources in order to support the intended use of proceeds indicated above. If we secure additional equity funding, investors in this offering would be diluted. In all events, there can be no assurance that additional financing would be available to us when wanted or needed and, if available, on terms acceptable to us.

**DILUTION**

**______**

If you purchase Units in this offering, your ownership interest in our Common Stock will be diluted immediately, to the extent of the difference between the price to the public charged for each Unit in this offering and the net tangible book value per share of our Common Stock after this offering.

Our historical net tangible book value as of August 31, 2022, was $232,648 or $0.0029 per then-outstanding share of our Common Stock. Historical net tangible book value per share equals the amount of our total tangible assets less total liabilities, divided by the total number of shares of our Common Stock outstanding, all as of the date specified.

The following table illustrates the per share dilution to new investors discussed above, assuming the sale of, respectively, 100%, 75%, 50% and 25% of the Units offered for sale at $0.15 in this offering (after deducting estimated offering expenses of $50,000):

If we Sell at $0.15 per Unit ($0.03 per share) for a total of 135,000,000 common shares:

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| | | | | |
|:---|:---|:---|:---|:---|
| **Percentage of Units offered that are sold** | **100%** | **75%** | **50%** | **25%** |
| Price to the public charged for each Unit in this offering | $0.15 | $0.15 | $0.15 | $0.15 |
| Historical net tangible book value per share as of August 31, 2022 (1) | .0029 | .0029 | .0029 | .0029 |
|  Increase in net tangible book value per share attributable to new investors in this offering (2) | (.0168) | (.0148) | (.012) | (.0076) |
| Net tangible book value per share, after this offering | .0197 | .0178 | .015 | .0105 |
| Dilution per share to new investors | .0103 | .0122 | .015 | .0195 |

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_______________

(1) Based on net tangible book value as of August 31, 2022, of $232,648
 and 80,412,821 outstanding shares of Common stock as of February 7, 2023.

(2) After deducting estimated offering expenses of $50,000.

**DISTRIBUTION**

This Offering Circular is part of an Offering Statement that we filed with the SEC, using a continuous offering process. Periodically, as we have material developments, we will provide an Offering Circular supplement that may add, update or change information contained in this Offering Circular. Any statement that we make in this Offering Circular will be modified or superseded by any inconsistent statement made by us in a subsequent Offering Circular supplement. The Offering Statement we filed with the SEC includes exhibits that provide more detailed descriptions of the matters discussed in this Offering Circular. You should read this Offering Circular and the related exhibits filed with the SEC and any Offering Circular supplement, together with additional information contained in our annual reports, semi-annual reports and other reports and information statements that we will file periodically with the SEC. See the section entitled "Additional Information" below for more details.

**Subscription Price**

The Subscription Price is $0.15 per Unit. The Subscription Price does not necessarily bear any relationship to our past or expected future results of operations, cash flows, current financial condition, or any other established criteria for value.

**Pricing of the Offering**

Prior to the Offering, there has been a limited public market for the Offered Units. The public offering price was determined by the Company. The principal factors considered in determining the public offering price include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· the information set forth in this Offering Circular and otherwise available;

· our history and prospects and the history of and prospects for the industries in which we compete;

· our past and present financial performance;

· our prospects for future earnings and the present state of our development;

· the general condition of the securities markets at the time of this Offering;

· the recent market prices of, and demand for, publicly traded common stock of generally comparable companies; and

· other factors deemed relevant by us.

**Offering Period and Expiration Date**

The Offering will terminate on the earlier of (i) the date on which the Maximum Offering is sold, or (ii) when the Company elects to terminate the offering for any reason (in each such case, the "Termination Date"). At least every 12 months after this offering has been qualified by the United States Securities and Exchange Commission (the "Commission"), the Company will file a post-qualification amendment to include the Company's recent financial statements.

**Procedures for Subscribing**

When you decide to subscribe for Offered Units in this Offering, you should:

Contact us via phone or email.

1. Electronically receive, review, execute and deliver to us a subscription agreement; and

2. Deliver funds directly by, check, wire or electronic funds transfer via ACH to the specified account maintained by us.

Any potential investor will have ample time to review the subscription agreement, along with their counsel, prior to making any final investment decision. We shall only deliver such subscription agreement upon request after a potential investor has had ample opportunity to review this Offering Circular.

*Right to Reject Subscriptions*. After we receive your complete, executed subscription agreement and the funds required under the subscription agreement have been transferred to the escrow account, we have the right to review and accept or reject your subscription in whole or in part, for any reason or for no reason. We will return all monies from rejected subscriptions immediately to you, without interest or deduction.

*Acceptance of Subscriptions*. Upon our acceptance of a subscription agreement, we will countersign the subscription agreement and issue the Units subscribed at closing. Once you submit the subscription agreement and it is accepted, you may not revoke or change your subscription or request your subscription funds. All accepted subscription agreements are irrevocable.

**No Escrow**

The proceeds of this offering will not be placed into an escrow account. We will offer the Units on a best-efforts basis primarily through an online platform. As there is no minimum offering, upon the approval of any subscription to this Offering Circular, the Company shall immediately deposit said proceeds into the bank account of the Company and may dispose of the proceeds in accordance with the Use of Proceeds at Management's discretion.

**Separability of the Units**

Each Unit consists of one common share and one Class A Warrant, which may be immediately separated at the option of the Unit holder. Any Units that have not been separated 365 days from the closing date of the offering will automatically separate into their common and warrant components.

We will have the unrestricted right to reject tendered subscriptions for any reason and to accept less than the minimum investment from a limited number of subscribers. In the event the shares available for sale are oversubscribed, they will be sold to those investors subscribing first, provided they satisfy the applicable investor suitability standards.

The purchase price for the Units will be payable in full upon subscription. We have no required minimum offering amount for this offering and therefore there is no escrow agent.

**MANAGEMENT'S DISCUSSION AND ANALYSIS OF**

**FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

**______**

*You should read the following discussion and analysis of our financial condition and results of our operations together with our consolidated financial statements and the notes thereto appearing elsewhere in this Offering Circular. This discussion contains forward-looking statements reflecting our current expectations, whose actual outcomes involve risks and uncertainties. Actual results and the timing of events may differ materially from those stated in or implied by these forward-looking statements due to a number of factors, including those discussed in the sections entitled "Risk Factors", "Cautionary Statement regarding Forward-Looking Statements" and elsewhere in this Offering Circular. Please see the notes to our Financial Statements for information about our Critical Accounting Policies and Recently Issued Accounting Pronouncements.*

**Management's Discussion and Analysis**

The Company has had limited revenues from operations in each of the last two fiscal years, and in the current fiscal year.

**Plan of Operation for the Next Twelve Months**

The Company believes that the proceeds of this Offering will satisfy its cash requirements for the next twelve months. To complete the Company's entire deployment of its current and proposed products and its business plan, it may have to raise additional funds in the next twelve months. Contemporaneously we will work to recruit experts in the field as well as scout experienced firms to assist in the marketing and distribution of our Functional Drink, CBD, B17, Kratom and other health / supplemental products.

The Company expects to increase the number of employees at the corporate level.

**Use of Estimates**

The preparation of financial statements in accordance with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates include assumptions about collection of accounts and notes receivable, the valuation and recognition of stock-based compensation expense, the valuation and recognition of derivative liability, valuation allowance for deferred tax assets and useful life of fixed assets.

**RESULTS OF OPERATIONS**

 **Results for the Period Ended November 30, 2021, through November 30, 2022**

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| | | |
|:---|:---|:---|
| *Working Capital* | **For the<br> Period Ended** <br> **November 30,** <br> **2022** <br> **$**  | **August 31,** <br> **2021** <br> **$**  |
| Cash | 9880 | 40910 |
| Current Assets | 55769 | 84307 |
| Current Liabilities | 258346 | 1603299 |
| Working Capital (Deficit) | $(202577) | $(1518992) |

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| | | |
|:---|:---|:---|
| *Cash Flows* | **For the<br> Period Ended** <br> **November 30,** <br> **2022** <br> **$**  | **November 30,** <br> **2021** <br> **$**  |
| Cash Flows from (used in) Operating Activities | (3048) | (33578) |
| Cash Flows from (used in) Investing Activities | (132251) | 0) |
| Cash Flows from (used in) Financing Activities | 125000 | 0 |
| Net Increase (decrease) in Cash During Period | (4203) | (33578) |

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*Operating Revenues*

The Company's revenues were $1,692 for the Period Ended November 30, 2021 compared to $0 for the Period Ended November 30, 2022. The Company's revenues were less in 2022 due to the Company's focus on transitioning its business plan, acquisitions, continued expansion of its facilities and due to continuance of Covid-19 and further variants. As a result of the Pandemic, many small brands were forced to shutter their brands and have not come back into the market. While the raw material costs have dropped dramatically, so too has retail pricing, resulting in thousands of brands nationwide going out of business. Further, the FDA's continued wavering on regulations permitting the sale of CBD products has chilled many retailers from carrying new products.

Seeing the transition coming, the company did not use cash resources to build inventory. We further determined to delve into research and development into products that had little competition and could be differentiated in the alternative wellness space. Hence, we have developed a dissolvable pre-sleep product, continued developing various formulation using Kratom as well as gummy formulations using legal and unregulated mushroom strains, namely Amanita Muscaria.

This has resulted in the company completely revamping its offerings which management believes has set us up to be very competitive moving forward.

*Cost of Revenues / Sales*

The Company's cost of revenues was $0 for the Period Ended November 30, 2021, compared to $0 for the Period Ended November 30, 2022. The Company's cost of revenues were the same in 2022 due to the Company selling less product.

*Gross Profit*

For the Period Ended November 30, 2021, the Company's gross profit was $1,692 compared to $0 for the Period Ended November 30, 2022. The decrease in profits in 2022, was due to no sales occurring as compared to Period Ended 2021.

*General and Administrative Expenses*

General and administrative expenses consisted primarily of consulting fees, professional fees, employees, and accounting expenses. For the Period Ended November 30, 2021, compared to the Period Ended November 30, 2022, general and administrative expenses increased from $88,238 to $99,004 for the Period Ended November 30, 2022 representing an increase of $10,766. The $10,766 increase is primarily attributable to the increase in expenses from acquisitions and professional fees.

*Other Income (Expense)*

Other income (expense) consisted of $(101,301) for the Period Ended November 30, 2021. For the Period Ended November 30, 2022, other income (expense) consisted of $(31,670) which resulted from interest expense of $5,383 and gain on acquisition of $134,187.

*Net Loss*

Our net loss for the Period Ended November 30, 2021 was $101,301 compared with a net loss of $31,670 for the Period Ended November 30, 2022. The net loss is influenced by the matters discussed in the other sections of the MD&A.

 **Results for the Year Ended August 31, 2021, through August 31, 2022**

---

| | | |
|:---|:---|:---|
| *Working Capital* | **For the<br> year ended** <br> **August 31,** <br> **2022** <br> **$**  | **August 31,** <br> **2021** <br> **$**  |
| Cash | 14083 | 40910 |
| Current Assets | 39550 | 84307 |
| Current Liabilities | 293599 | 1603299 |
| Working Capital (Deficit) | $(254049) | $(1518992) |

---

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| | | |
|:---|:---|:---|
| *Cash Flows* | **For the<br> year ended** <br> **August 31,** <br> **2022** <br> **$**  | **August 31,** <br> **2021** <br> **$**  |
| Cash Flows from (used in) Operating Activities | (609091) | 724439 |
| Cash Flows from (used in) Investing Activities | 0 | (817825) |
| Cash Flows from (used in) Financing Activities | 582264 | 107500 |
| Net Increase (decrease) in Cash During Period | (26827) | 14114 |

---

*Operating Revenues*

The Company's revenues were $157,311 for the year ended August 31, 2021 compared to $6,415 for the year ended August 31, 2022. The Company's revenues were less in 2022 due to the Company's focus on expansion of its facilities and due to continuance of Covid-19.

*Cost of Revenues / Sales*

The Company's cost of revenues was $100,287 for the year ended August 31, 2021 compared to $2,500 for the year ended August 31, 2022. The Company's cost of revenues were less in 2022 due to the Company selling less product and also due to the decrease in prices paid for inventory due to a lower acquisition cost.

*Gross Profit*

For the year ended August 31, 2021, the Company's gross profit was $57,024 compared to $3,915 for the year ended August 31, 2022. The decrease in profits in 2022 was due to the lower cost of acquiring our products and the lower cost of sales as compared to year ended 2021.

*General and Administrative Expenses*

General and administrative expenses consisted primarily of consulting fees, professional fees, employees, and accounting expenses. For the year ended August 31, 2021 compared to the year ended August 31, 2022, general and administrative expenses increased from $44,956 to $61,513 for the year ended August 31, 2022 representing an increase of $16,557. The $16,557 increase is primarily attributable to an increase in salaries and employees.

*Other Income (Expense)*

Other income (expense) consisted of $109,090 for the year ended August 31, 2021. For the year ended August 31, 2022 other income (expense) consisted of $(91,979) which resulted from interest expense of $91.

*Net Loss*

Our net loss for the year ended August 31, 2021 was $565,935 compared with a net loss of $592,957 for the year ended August 31, 2022. The net loss is influenced by the matters discussed in the other sections of the MD&A.

*Liquidity and Capital Resources*

The ability of the Company to continue as a going concern is dependent on the Company's ability to raise additional capital and implement its business plan. Since its inception, the Company has been funded by related and third parties through capital investment and borrowing of funds.

At August 31, 2021, the Company had total current assets of $84,307 compared to $39,550 at August 31, 2022. Current assets consist primarily of cash and cash equivalents, accounts receivable, inventory, and prepaid expenses. The decrease in current assets of $44,757 was primarily attributed to a decrease in accounts receivable and in cash.

At August 31, 2021, the Company had total current liabilities of $1,603,299 compared to $293,599 at August 31, 2022. Current liabilities consisted primarily of credit line payable, accounts payable, due to related party, and Unissued capital stock. The decrease in our current liabilities was attributed to the increase in amounts owed to the related party and notes payable to a third party.

We had negative working capital in the amount of $1,518,992 as of August 31, 2021 and a negative working capital in the amount of $254,049 as of August 31, 2022.

*Cashflow from Operating Activities*

During the year ended August 31, 2021, there was cash used in operating activities in the amount of $724,439 compared to cash used in operating activities in the amount of $(609,091) for the year ended August 31, 2022. The decrease in the amounts of cash provided by operating activities was due to assorted reasons as shown in the financial statements below.

*Cashflow from Investing Activities*

During the year ended August 31, 2021, cash used in investing activities was $(817,825) compared to $(0) for the year ended August 31, 2022.

*Cashflow from Financing Activities*

During the year ended August 31, 2021, cash provided by financing activity was $107,500 compared to $582,264 provided during the year ended August 31, 2022. This increase was primarily due to our active Regulation A Offering and acquisitions.

*Going Concern*

We have not attained profitable operations and are dependent upon obtaining financing to pursue any extensive business activities. For these reasons, we have included in our unaudited financial statements that there is substantial doubt that we will be able to continue as a going concern without further financing.

The Company has not yet established an ongoing source of revenues sufficient to cover its operating costs for the next fiscal year and allow it to continue as a going concern. The ability of the Company to continue as a going concern is dependent on the Company obtaining adequate capital to fund operating losses until it becomes profitable. As of August 31, 2022, the Company has a net loss of $(609,091), and if the Company is unable to obtain adequate capital, it could be forced to cease operations.

*Future Financings.*

We will continue to rely on equity sales of the Company's common shares in order to continue to fund business operations. Issuances of additional shares will result in dilution to existing shareholders. There is no assurance that the Company will achieve any additional sales of the equity securities or arrange for debt or other financing to fund our business plan.

Since inception, we have financed our cash flow requirements through issuance of common stock and loans to related and third parties. As we expand our activities, we may, and most likely will, continue to experience net negative cash flows from operations, pending receipt of revenues. Additionally, we anticipate obtaining additional financing to fund operations through common stock offerings, to the extent available, or to obtain additional financing to the extent necessary to augment our working capital. In the future we will need to generate sufficient revenues from sales in order to eliminate or reduce the need to sell additional stock or obtain additional loans. There can be no assurance we will be successful in raising the necessary funds to execute our business plan.

We anticipate that we will incur operating losses in the next twelve months. Our lack of operating history makes predictions of future operating results difficult to ascertain. Our prospects must be considered in light of the risks, expenses and difficulties frequently encountered by companies in their early stage of development, particularly companies in new and rapidly evolving markets. Such risks for us include, but are not limited to, an evolving and unpredictable business model and the management of growth.

To address these risks, we must, among other things, obtain a customer base, implement and successfully execute our business and marketing strategy, continually develop and upgrade our business model, products and websites, respond to competitive developments, and attract, retain and motivate qualified personnel. There can be no assurance that we will be successful in addressing such risks, and the failure to do so can have a material adverse effect on our business prospects, financial condition and results of operations.

*Critical Accounting Policies.*

Our financial statements and accompanying notes have been prepared in accordance with United States generally accepted accounting principles applied on a consistent basis. The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods.

Management regularly evaluates the accounting policies and estimates that are used to prepare the financial statements. In general, management's estimates are based on historical experience, on information from third party professionals, and on various other assumptions that are believed to be reasonable under the facts and circumstances. Actual results could differ from those estimates made by management.

*Off-Balance Sheet Arrangements*

We have no significant off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to stockholders.

*Recently Issued Accounting Pronouncements*

The Company has implemented all new accounting pronouncements that are in effect. These pronouncements did not have any material impact on the financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.

**Quantitative and Qualitative Disclosures about Market Risk**

In the ordinary course of our business, we are not exposed to market risk of the sort that may arise from changes in interest rates or foreign currency exchange rates, or that may otherwise arise from transactions in derivatives.

**Contingencies**

Certain conditions may exist as of the date the financial statements are issued, which may result in a loss to the Company, but which will only be resolved when one or more future events occur or fail to occur. The Company's management, in consultation with its legal counsel as appropriate, assesses such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, the Company, in consultation with legal counsel, evaluates the perceived merits of any legal proceedings or unasserted claims, as well as the perceived merits of the amount of relief sought or expected to be sought therein. If the assessment of a contingency indicates it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company's financial statements. If the assessment indicates a potentially material loss contingency is not probable, but is reasonably possible, or is probable, but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss, if determinable and material, would be disclosed. Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed.

**Relaxed Ongoing Reporting Requirements**

Upon the completion of this Offering, we may elect to become a public reporting company under the Exchange Act.

If we elect not to become a public reporting company under the Exchange Act, we will be required to publicly report on an ongoing basis under the reporting rules set forth in Regulation A for Tier 1 issuers. The ongoing reporting requirements under Regulation A are more relaxed than for "emerging growth companies" under the Exchange Act. The differences include, but are not limited to, being required to file only an exit report, rather than annual and quarterly reports. Annual reports for reporting companies are due within 120 calendar days after the end of the issuer's fiscal year, and semiannual reports for Tier 2 issuers are due in 90 calendar days after the end of the first six months of the issuer's fiscal year.

In either case, we will be subject to ongoing public reporting requirements that are less rigorous than Exchange Act rules for companies that are not "emerging growth companies", and our stockholders could receive less information than they might expect to receive from more mature public companies.

**Sibannac, Inc.**

______

**<u>Corporate History</u>**

Sibannac, Inc. ("*Sibannac,*" "*Company,*" "*we*" or "*us*") was incorporated in June 1999 in the State of Nevada as Naprodis, Inc. for the purpose to engage in any lawful activity for which corporations may be formed. On August 25, 2014, the Company transferred all of its assets to Naprodis, Inc., a Colorado corporation ("*Colorado Naprodis*"). In consideration for the transfer of these assets, Colorado Naprodis agreed to assume a substantial amount of the Company's liabilities. On November 25, 2014, the Company changed its name to Sibannac, Inc.

On August 19, 2015, we entered into an Asset Acquisition Agreement with Apollo Media Network, Inc., a Delaware corporation ("*Apollo*") whereby all of the assets of Apollo would be acquired by the Company from Apollo. Pursuant to the Asset Acquisition Agreement, the closing of the Acquisition was effective August 31, 2015, although completed later. Apollo issued to the Company an Assignment Agreement and Bill of Sale for the Assets, duly executed by Apollo. Sibannac delivered to Apollo Media Network, Inc. three million one hundred thousand (3,100,000) shares of the Company's Common Stock, duly issued, fully paid and non-assessable which were distributed to its shareholders in liquidation of Apollo pursuant to IRC Section 368c. There has been no merger, however, Sibannac obtained the assets and intellectual property of Apollo upon its liquidation.

We had a short operating history in the Apollo business (only in the startup mode in 2015) and no representation is made, nor is there any intent for the Company to continue to pursue the business model of Apollo.

After the 2015 fiscal year end, we acquired Protection Cost, Inc. for two million, three hundred thousand (2,300,000) shares which intends to provide labor and accounting management systems for the cannabis industry.

On July 17, 2017, the Company acquired Imbutek Inc., including its Plan of Operation (the "Plan"), and its sole shareholder became the President of the Company. The Company is preparing and packaging health products for wholesalers and retailers under the Plan.

The Company opened its new operations in May 2019, in Scottsdale, Arizona, as a developer, manufacturer and seller of premium Cannabidiol (CBD) products. CBD is one of the 104 chemical compounds known as cannabinoids found in the hemp plant or Cannabis Sativa. These compounds stimulate the body's endocannabinoid system (ECS). CBD is rapidly gaining momentum in the health and wellness world and some scientific studies have confirmed it may help treat a wide variety of ailments from chronic pain to anxiety.

Sibannac, is committed to bringing its customers the highest-grade CBD products on the market and proudly offers the highest quality, all natural, lab tested, CBD oils and extracts. Sibannac, strives to fuse science and nature by providing the maximum quality and purest products to improve the health and overall well-being of each of its individual customers and their pets.

During the year ended August 31, 2021, the Company established Vestra, LLC. Vestra is a special purpose LLC established to hold the rad8LifeÔ brand and operate the site rad8life.com for the sale of Delta 8 THC products and may be expanded to cover other products. On June 17, 2021, in a related party transaction, the Company sold Vestra to Noho, Inc., for 2,000,000 shares of Noho, Inc. Series B Preferred shares valued at $500,000. On June 9, 2022, the Company converted all 2,000,000 shares of Noho, Inc. Series B Preferred held by it into 280,000,000 shares of Noho, Inc. Common Stock. The Company is holding the shares as an investment.

On January 27, 2022, the Company, with the approval of a majority of its shareholders and its directors approved an increase in the authorized common stock of the Company from 200,000,000 to 300,000,000, with the Secretary of State of Nevada.

On March 3, 2022, the Company appointed Mr. Eric Stoll as Chief Marketing Officer of the Company.

On July 15, 2022, Mr. James T. Staudohar resigned from all positions with the Company.

On November 8, 2022, the Company reacquired Vestra, LLC and the NOHO Brand ("NOHO Assets") in an Asset Purchase Agreement, from NOHO, Inc. As consideration for the NOHO Assets the Company agreed to pay a Royalty to NOHO, Inc. for seven (7) years based on a percentage of gross sales: 5% up to $2mm in sales, 4% between $2mm – $3mm in sales, 3% between $3mm - $4mm in sales, 2% between $4mm - $5mm in sales and 1% if sales were greater than $5mm. The Company also agree to issue 50,000,000 warrants to NOHO shareholders ("NOHO Warrants") of record as of July 29, 2022. The NOHO Warrants are redeemable no later than one year after the Registration Statement to be filed by the buyer becomes effective. The exercise price for the underlying shares of stock shall be 20% below the average of the bid and the ask price of the opening quote immediately subsequent to the Registration Statement becoming effective. As part of the Asset Acquisition Agreement, the Company also acquired and assumed the rad8LifeÔ brand and rad8life.com from Noho, Inc., together with Noho, Inc. hangover beverage assets in exchange for the assumption of $300,000 in debt and the cancellation of certain liabilities owed by Noho to the Company for a net value of $267,451.15.

The foregoing description of the Asset Purchase Agreement does not purport to be complete and is qualified in its entirety by reference to the complete text of such agreement, which is filed hereto as Exhibit 6.3, to our Regulation A Offering, and is incorporated herein by reference.

**BUSINESS**

**_________**

*The following description of our business contains forward-looking statements relating to future events or our future financial or operating performance that involve risks and uncertainties, as set forth above under "Special Note Regarding Forward-Looking Statements." Our actual results could differ materially from those anticipated in these forward-looking statements as a result of certain factors described in the Offering Circular, including those set forth above in the Special Cautionary Note Regarding Forward-Looking Statements or under the heading "Risk Factors" or elsewhere in this Offering Circular.* 

**Our Business Overview**

We are in the business of developing, producing, marketing and selling nutraceutical products, functional drink products, white label products and end consumer products, some containing the industrial hemp plant extract, Cannabidiol ("CBD"). We sell to numerous consumer markets including the botanical, beauty care, pet care and functional food sectors. We seek to take advantage of an emerging worldwide trend to re-energize the production of industrial hemp and to foster its many uses for consumers. The development of products in this highly regulated industry carries significant risks and uncertainties that are beyond our control. As a result, we cannot assure that we will successfully market and sell our products or, if we are able to do so, that we can achieve sales volume levels that will allow us to cover our fixed costs.

Sibannac, Inc. is a Nevada corporation located in Scottsdale, Arizona. Sibannac currently specializes in creating and selling functional drinks to help mediate the effects of drinking alcohol and premium Cannabidiol (CBD) products. CBD is one of the 104 chemical compounds known as cannabinoids found in the hemp plant or Cannabis Sativa. These compounds stimulate the body's endocannabinoid system (ECS). CBD is rapidly gaining momentum in the health and wellness world and some scientific studies have confirmed it may help treat a wide variety of ailments from chronic pain to anxiety.

Our functional drink product is the NOHO AfterShot, a beverage for hangover defense. The NOHO AfterShot is a delicious way to activate the metabolism and gives the drinker energy and hydration so that they can go about their day as close to normal as possible.

Sibannac is committed to bringing its customers the highest-grade CBD products on the market and proudly offers the highest quality, all natural, lab tested, CBD oils and extracts. The company strives to fuse science and nature by providing the maximum quality and purest products to improve the health and overall well-being of each of its individual customers and their pets.

At the heart of Sibannac's operation is manufacturing. The ability to formulate and produce our own product allows the company to enjoy a cost basis that ensures high margins. The additional ability to control inventory and production is vital to having a cost-effective and fast turnaround for clients.

All Sibannac CBD products are derived from US-grown hemp plants — never marijuana. Sibannac products are recommended by physicians, therapists, chiropractors and veterinarians, in addition to being distributed by many of their offices.

Sibannac currently manufactures its CBD products in its new facility in Scottsdale, Arizona. The Company has implemented cGMP manufacturing standards and has consulted with professionals in order to be in compliance with all FDA standards and obtain its own facility number from the agency.

The Company has leased a retail location in Old Town, Scottsdale. The buildout of the space is currently underway as of the fourth quarter of 2021.

On January 27, 2022, the Company, with the approval of a majority of its shareholders and its directors approved an increase in the authorized common stock of the Company from 200,000,000 to 300,000,000, with the Secretary of State of Nevada.

*Intellectual Property* 

SNNC's intellectual property and proprietary rights are important to our business. In the future we plan to secure, maintain and protect our intellectual and proprietary rights, by relying on a combination of patent, trademark, trade secrets and other rights in the United States and across the world. SNNC also has confidentiality agreements with certain contractors and other third parties protecting access to SNNC's proprietary (IP)intellectual property.

*Sibannac, Inc. Products:*

 

CBD – Cannabidiol

The Company opened its new operations in May 2019, in Scottsdale, Arizona, as a developer, manufacturer and seller of premium Cannabidiol (CBD) products. CBD is one of the 104 chemical compounds known as cannabinoids found in the hemp plant or Cannabis Sativa. These compounds stimulate the body's endocannabinoid system (ECS). CBD is rapidly gaining momentum in the health and wellness world and some scientific studies have confirmed it may help treat a wide variety of ailments from chronic pain to anxiety.

Each CBD product contains a naturally occurring compound found in the hemp plant (Cannabis Sativa). CBD oil is made by extracting CBD from the hemp plant, then diluting it with a carrier oil. CBD oil is thought to improve the lives of individuals suffering from certain mental and physical ailments. Unlike Tetrahydrocannabinol (THC), which is the main psychoactive cannabinoid found in cannabis and causes the sensation of getting "high" that is often associated with marijuana, CBD is NOT psychoactive. This non-psychoactive quality makes CBD an appealing option for those who are looking for relief from pain and other symptoms without the mind-altering effects of marijuana or the adherent dangers of certain pharmaceutical drugs.

All Sibannac CBD products are derived from US-grown hemp plants — never marijuana. Sibannac products are recommended and distributed by physicians, therapists, chiropractors and those in the veterinary space. Sibannac CBD products may help relieve pain, reduce inflammation and insomnia, and improve overall health and wellness. Hemp-based CBD oil has also been shown to assist in managing the symptoms of neurological disorders, such as epilepsy and anxiety, and can even be used as a remedy for skin issues, like acne and eczema. Sibannac carries a full line of all-natural, hemp-based CBD solutions including CBD oils, CBD gummies, CBD pills, CBD creams and CBD gels for topical options.

 *NOHO AfterShot:*

We acquired the NOHO brand and all of the intellectual property thereto. NOHO is a registered Trademark in the United States. The current product is a 3oz liquid nutritional supplement targeting alcohol drinkers as a means to quell the effects of alcohol consumption on the body. The current product was reformulated in 2020 and is for sale direct-to-consumer on our website.

The Company is focused on the production and sale of NOHO AfterShot, a beverage for hangover defense. The Company purchases raw materials and outsources the manufacturing to a third party. Additional formulations are envisioned to build out the NOHO line of products to be more attractive to consumers, wholesalers and retailers.

**<u>Kratom</u>**

As an outgrowth of CBD, Sibannac is focused on developing similar products derived from other plant species that offer similar healing properties and overall wellness. To this end, Sibannac is intending to bring to market a line of consumer products formulated with Kratom. Kratom is the commercial name for Mitragyna Speciosa Korthals, a tree indigenous to Southeast Asia. The main compound in Kratom, Mitragynine, has been used for hundreds of years in Asia as a natural, plant-based medicine, to combat many of the symptoms CBD is sought for, namely pain, as an anti-inflammatory, anxiety and sleep. The company is in the process of formulating a line of Kratom products for wholesale distribution, white labeling and retail under brands currently under development.

The focus on Kratom, similar to CBD, is borne out of Sibannac's ability to source the raw materials, develop formulations and manufacture finished goods for direct sale. Kratom is used extensively by consumers seeking to manage long term, chronic pain without having to resort to opioid drugs. Indeed, many users have turned to Kratom as an alternative to prescription drugs, using it to manage withdrawal symptoms often experienced from extended opioid use. In addition, the domestic U.S. Kratom market has not experienced the saturation seen with CBD products, thus offering an opportunity to create lasting brands in a less competitive space. In addition, there are many potential products Sibannac is in the process of creating, combining Kratom and CBD, such as in an oral suspension or capsule. Sibannac is working with sources who have developed specific extraction processes for Kratom.

The company will offer its Kratom products through its retail location in Scottsdale as well as online through direct-to-consumer marketing and internet-driven, Cost-Per-Acquisition (CPA) campaigns.

**<u>Current Good Manufacturing Practices "cGMP"</u>**

The Company commissioned a build out of its new manufacturing facility in April 2019. Since opening operations, the Company has continually acquired new and upgraded equipment and has upgraded the plumbing and electrical systems to handle all requirements for machinery and to ensure the facility is abiding by all required manufacturing guidelines and practices.

Sibannac has engaged an expert in manufacturing and facilities design in order to advise on the set up of the physical plant to ensure we are following cGMP – **<u>current Good Manufacturing Practices.</u>** The guidelines for cGMP are found in the Code of Federal Regulations, Title 21 C.F.R 210 et seq.

In addition to having the facility comply with the code, such has providing a safe and clean production facility, the Company is implementing a necessary series of procedures and protocols with tracking software, so that all manufacturing is standardized, and production notes are recorded and available, along with all batch and lot production information. We provide this information to white label clients and consumers in order to provide transparency in the manufacturing process.

As Sibannac has begun to manufacture products for white label customers, it has become apparent that there is a low number of competing CBD and supplement manufacturers in the market for customers seeking smaller production runs. A number of the larger manufacturers either have very high minimum order requirements or long turn-around times and most of the smaller manufacturers cannot provide a consistent product and often lack the efficiencies to be profitable. Moreover, a small manufacturer who does not follow cGMP is limited in the clientele it can service, as most brands and distributors demand certified and compliant manufacturers. Given the limitation of properly zoned real estate and limited number of qualified personnel who formulate and oversee the manufacture of Cannabis products, the company anticipates extensive growth in manufacturing revenues in 2023.

**Letter of Intent with SPUR BIOTECH, LLC**

Sibannac has executed a non-binding Letter of Intent ("LOI") with SPUR Biotech, LLC ("SPUR"), a private, medical research company engaged in the development of plant-based vaccines. Sibannac is making disclosure of this LOI as it anticipates moving forward with SPUR into a binding, financing and marketing agreement, as SPUR is moving toward clinical trials seeking regulatory approval of its lettuce-derived vaccines. As per the LOI, Sibannac intends to acquire up to 46.5% of the membership units of SPUR in exchange for newly created class of Sibannac stock. This new class shall be designated as an 8.25% coupon non-convertible preferred, held solely by SPUR. Sibannac will also need to conduct an audit, become fully SEC reporting, as well as file a Tier 2 Regulation A Offering, in order to complete this transaction. SPUR's team, working in conjunction with the University of Akron in Ohio, is comprised of biomedical and mechanical engineers as well as molecular biologists.

The foregoing description of the LOI does not purport to be complete and is qualified in its entirety by reference to the complete text of such agreement, which is filed hereto as Exhibit 6.4, to our Regulation A Offering, and is incorporated herein by reference.

**Marketing**

**Brand Strategy and Marketing Overview**

**Our Growth Strategy**

Our growth will continue to be focused on the vertical integration and growth of all segments of the functional drink and CBD space:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· *Dependable White/Private Label Manufacturing Service*. Our experience and dedicated team continue
to refine and expand our white label services and has become the manufacturer to many regional and nationwide brands.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· *Functional Drink and CBD Product Research and Development*. Our team provides custom products and
 proprietary formulations for some of the most popular industry items. We also continue to
 expand product offerings with the development and launch of new items on a regular basis.
 Custom formulations for outside brands build long term commitments from our customers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· *Direct-to-Consumer Expansion.* Our direct-to-consumer business is expected to be our growth
driver for the next several years. The lower cost of our in-house research, development and manufacturing give us a measurable cost and
production advantage, which we believe to be the key to our future success, as margins in the industry compress and are expected to continue
to compress over the next several years.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· *Core Brand Distribution.* We plan for a nationwide rollout of our in-house brands which will be
another substantial driver of growth for the foreseeable future, after this offering we will begin expansion of our sales and marketing
teams and will look to add talented people in all segments of the business to push current and future growth opportunities *.* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· *Acquisition Strategy*. We plan on acquiring other likeminded companies through acquisitions in the
future. We will continue to search for target acquisitions that meet our acquisition criteria and are accretive to our business. Our platform
was built from the ground up to promote acquisitions expansion as a driver of substantial growth as the industry matures and margins compress.
Our relationships and partners in the trade show and manufacturing business will be a key source for possible candidates. Our criteria
will be stringent and we will look at any and all opportunities that allow us to use our low cost manufacturing to drive higher margins
in acquisition candidates. Small regional brands with distribution would benefit greatly in both low-cost manufacturing and quality research
and development of new and current product offerings available from our inhouse brands and products. As margins compress in the industry,
the low-cost manufacturing capabilities will be a key component to higher profits leading to consolidation which we intend to capitalize
on in the coming years.

 *NOHO AfterShot Marketing:* 

NOHO AfterShot markets a liquid-based hangover protection beverage, positioned as "an over-the-counter proprietary formulation" called "NOHO AfterShot." NOHO has also the created a new beverage category branded as the "Premium Lifestyle Beverage."

NOHO AfterShot targets persons from all walks of life including businessmen, socialites, college students, mothers, casual drinkers, and image and lifestyle conscious consumers. Our marketing strategies and sales tactics will incorporate the many attributes we believe are important to this target market and will include associative advertising and promotion by celebrity influencers and influential local consumers to proactively develop this underdeveloped and untapped market.

The Company expects that its marketing strategy and tactics will evolve over time as the Company's services and markets expand. Accordingly, the marketing plan will be flexible in choosing the appropriate channels and media that align with the Company's long-term objectives.

*<u>Market Background</u>*

 *CBD Market:* 

The industrial hemp market is projected to grow at a CAGR of 16.8% from USD 4.13 billion in 2021 to USD 16.75 billion by 2030, according to Grandview research. The growth of this market is attributed to the increased consumption of hemp-based products. However, the complex regulatory structure for the usage of industrial hemp in different countries is expected to hinder the market growth of industrial hemp.

The market, customers and distribution methods for hemp-based products are large and diverse. These markets range from hemp-based consumables, cosmetics, bio plastics and textiles, to list a few. This is an ever-evolving distribution system that today includes early adopter retailers and ecommerce entities, and product development companies that use our manufacturing capabilities to produce their internally developed consumer products for distribution. In addition, many of our customers use our propriety products and sell them under their own labels.

Sibannac has manufactured CBD products for approximately 20 private brands in a white-label capacity over the last 3 years. However, we believe that as awareness continues to grow for hemp-based products, such as CBD and other products derived from hemp, the market has and will continue to grow over the next several years.

Our target customers are first and foremost end consumers via internet sales, direct-to-consumer retail stores, cooperatives, affiliate sales and master distributors. Secondarily, we are targeting developers of products that we can easily produce with our manufacturing capabilities, national and regional broker networks and major distribution companies who have preexisting relationships with major retail chain stores. As we continue to develop our business, these markets may change, be re-prioritized or eliminated as management responds to consumer and regulatory developments.

In 2023, Sibannac will be introducing and launching its wholly-owned wellness brand called *Cherryology*. The Company has conducted research into the naming of the brand as well as a marketing analysis of the overall supplement marketplace. Due to the significant cost reduction of CBD as an ingredient over the last two years and the attrition of many brands that succumbed to the financial strain of the recent pandemic, the Company is confident in the timing of launching its new flagship brand in collaboration with Eric Stoll and Lifetime Branding. Sibannac has obtained a Notice of Allowance from the U.S. Patent and Trademark Office for the Cherryology name covering several categories in addition to supplements, including apparel and alcohol.

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 ***NOHO Functional Drink Markets***

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NOHO AfterShot, is a functional lifestyle beverage. "Functional lifestyle" beverages are beverages that have specific functions, including relaxation, health, weight management, digestion aid, alertness, detoxification, and joint health. The functional lifestyle beverage category includes relaxation drinks, and ready-to-drink (RTD) teas and coffees. Functional beverages play an important role in our everyday lives. They can help people stay hydrated, some are designed to prevent and help address health conditions, or simply contribute to overall nutritional well-being. These beverages include functional ingredients such as nutrients (vitamins, minerals, amino acids, nutraceuticals, etc.), zero-calories sweeteners and stabilizers.

The global functional drinks market has been forecast to increase at a compound annual growth rate (CAGR) of 8.3% for the seven-year period 2023 - 2030, increasing from total revenues of $23.49 billion in 2023, to a value of $47.74 billion by the end of 2030. According to a new report titled US Energy Drinks Market Size and Forecast, published on verifiedmarketresearch.com.

According to verified market research the driving market for energy drinks is that they are part of the broader soft drink category in the market, which includes carbonated beverages, fruit and vegetable juices, bottled water, sports drinks, beverage concentrates, ready-to-drink tea, ready-to-drink coffee, and many others. According to health experts, energy drinks are the most popular supplements for teens and young adults in the United States along with multivitamins which are now accepted all over the world due to Western culture.

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***<u>Market Analysis</u>***

 

 ***CBD Market Analysis***

In December 2022, the cost of a kilo of CBD Isolate was $350; however in April 2019 it was close to $7,000. Although the price of Isolate has significantly decreased over the last few years, the company's profit margins remain stable due to the significant drop in the cost of CBD as a raw material . While the cost of raw materials will fluctuate, our ability to produce consistently dosed products in a timely manner is a significant barrier to entry for competitors. In addition, competing firms would also have to secure suitable real estate and finance the buildout of a clean room or lab area, as well as implement cGMP standards. The company believes that the FDA or the U.S. Congress will ultimately lay out a regulatory scheme, requiring manufacturers to be cGMP compliant. Enactment of such regulation would result in many of the smaller manufacturers ceasing operations due to non-compliance. These factors are significant in allowing Sibannac to continue to grow its core business and maintain high profit margins.

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 ***Functional Drink Market Analysis***

 *According to verified market research* the majority of these drinks are consumed by men between 18 and 34 people. An energy drink is a type of beverage that is claimed to strengthen physical performance and increase energy levels and improves the mental alertness of the individual. Energy drinks contain caffeine, which is one of the main ingredients that stimulates the function of the brain and increases the concentration level of individuals. These drinks also contain sugar, other sweeteners, B vitamins, and stimulants including guarana, taurine, ginseng, ginkgo, synephrine, L- carnitine, and more. Energy drinks are getting popular among adults and teenagers as they prevent tiredness, reduce stress, and are refreshing.

The report also stated that it thought that the US Energy Drinks Market might receive a heavy blow soon due to the enormous competition between energy drinks and other beverages like packaged juice, malted health drink, and aerated beverages available. While energy drinks are in high demand, it is the high cost that other beverages leverage to take over the market as consumers may consider opportunity over quality with adequate quantity. Also, the rise in awareness regarding the adverse effect of caffeine might foster the decline in the growth of energy drinks over the forecast duration. Consumers are conscious about the product they consume from food and beverages.

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***<u>Retail</u>***

Sibannac has secured a retail location for the sale of our products in Old Town, Scottsdale. Located in Scottsdale, AZ, at the intersection of Miller and Indian School Roads, the company has secured a unique opportunity to open a retail store just minutes from our manufacturing facility and in the heart of bustling, Old Town, Scottsdale. The store is scheduled to be opened in the second quarter of 2023 when the Company has launched its new wellness brand. The store is approximately 450 square feet and is located in a small center adjoining a chiropractic practice. The lease is extremely favorable as it is a month-to-month tenancy, terminable only at the company's discretion. The rent is well under market value at approximately $2/square foot, allowing the company to sell our products at retail margins that range from 100-1000%. The retail environment also provides a significant opportunity to engage with consumers, evaluate new products and gain valuable feedback.

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***<u>Online - Direct to Consumer via Cost Per Acquisition Model</u>***

The company has assembled a core group of digital marketing and online sales executives to build an online sales funnel to be marketed through affiliate networks and online publishers. The offer is comprised of a long-form product pitch with educational content marketed through email campaigns and banner ads through CPA (Cost Per Acquisition) partners.

Sibannac estimates it will pay between $90 - $105 for each "acquired" customer, each of whom is estimated to buy three products from the initial engagement, totaling an average of $160. The company has established relationships with the networks that provide the online *traffic* that results in converting online seekers into buyers. With product costs factored into the initial sale, there is limited profitability, but the strength of the model lies in the ability to build a stable, long-term customer base. From a cash flow perspective, we are able to acquire buyers on terms, 4-7 days in arrears. This allows the company to charge the customer and use those funds to pay for the acquisition cost. Even in light of limited initial profitability, there is no "cash burn" in the CPA process.

***<u>Email Drip and Up-sells/Cross-sells and Partials</u>***

A "partial" sale occurs when a prospective customer begins the checkout process from the online sales offer but does not complete the purchase and leaves an abandoned shopping cart. Often, however, the customer provides sufficient contact information in the form of email and phone that allows a support representative to reach out in near real time in an effort to secure a product sale. The benefit of converting a partial sale is that there is no Cost Per Acquisition – in other words, no acquisition cost, because the publisher in this case did not provide a buyer.

Once acquired, the company will use outsourced customer service and sales support to manage inquiries and to sell new products and offer preferential terms on quantity discounts to existing customers. After the initial purchase, customers will receive a series of product information and sales emails through an "email drip" campaign. These emails are not only inexpensive but result in ongoing customer engagement and increased buying experiences. Once trust is established over a number of positive engagements and customer experience with our products, customers welcome new product offers and volume discounts.

**Sales and Distribution**

We will sell our proposed products through our e-commerce, direct, large retail chains, small chains and store fronts, and to retailers around the U.S. Customers can use credit cards for direct purchases from us. We are working to begin selling our potential products, using different sales techniques and optimizing our website. Customers who purchase a certain amount of our planned products receive free shipping and handling on their purchases. We cannot predict the likelihood of success in using these techniques.

**Industry Risks**

Outside of the normal competitive landscape, as Sibannac develops innovative products and formulations, there are unknowns with regard to regulations of the Cannabis industry in general and regarding CBD and Kratom specifically.

The FDA has not approved CBD to be sold as a dietary supplement. While CBD products are widely distributed and can be purchased online and through retail, the FDA has not approved CBD as a supplement and this reality has delayed many large retailers and online sellers from marketing products. The positive takeaways from the current uncertainty are that there has not been any indication from the FDA that products will be removed from retail. Indeed, the only actions taken by FDA regarding industry brands involve mislabeling of product and unwarranted, unsupported product claims. In light of the current environment, Sibannac intends to continue to produce CBD products, ensuring to the extent possible that all labeling reflects accurate ingredients and that no "drug" claims are being made.

With regard to Kratom, the FDA has an involved history with the industry. The Kratom plant - Mitragyna Speciosa – is a plant in the coffee family and originates from Southeast Asia, indigenous to Thailand, Indonesia, Malaysia and others. Kratom's active compound is Mitragynine and has been used for centuries in Asian cultures to reduce inflammation and pain. At lower dosages, Kratom acts much like its coffee cousin, providing energy like caffeine. However, at higher doses, it is widely used to combat chronic pain. In the United States, it has developed a loyal and growing following from chronic pain sufferers as well as those attempting to stave off withdrawal symptoms from opioid addiction.

CBD and Kratom share some common market challenges, mainly involving the lack of current regulation, uncertainty in the classification of these substances as dietary supplements or other and lack of clinical trials to establish effective dosing and overall efficacy. Sibannac is approaching this uncertainty by establishing itself as an industry leader, ensuring that all products and raw materials are tested and manufactured in compliance with applicable laws and labeled and marketed accurately, without making any unsubstantiated claims. The Company plans to set up the physical layout of our facility, create operating procedures and record keeping in order to obtain an FDA facility number.

Consumers are consistently switching from carbonated drinks to water and healthy energy drinks. As a result, the beverage market has seen increased demand for enhanced water and other functional drinks. Overall, rapid urbanization, along with widening base of the middle-class population, has increased the demand for a variety of healthy beverages.

This higher demand for water and functional beverages has benefited the packaging industry. Moreover, increasing consumer demand for quality products, made from organic and naturally sourced ingredients, requires science-based formulations of effective products in the beverage industry. These factors have created growth potential for beverage packaging service providers who have the expertise and knowledge required to create successful products in an increasingly discerning market. In contrast to the energy and sports drink categories, functional drinks with nutraceutical formulations are designed to support consumer desire for establishing healthy lifestyle routines. Often formulated using herbs, botanicals, vitamins and minerals, these beverages are designed to support digestive wellness, reduce stress and improve sleep, as examples. We believe that the growth in healthy beverages and away from carbonated or sugary beverages will create opportunities for our company. We also believe that recent market trends will continue to grow as federal and state regulation for hemp derived CBD products is codified.

**Suppliers**

Some of our future products may be made by independent vendors, with third party lab tests for each individual product batch uploaded to our website. We will also purchase raw materials (hemp, kratom, apricot seeds) and produce our own products. For products we do not produce ourselves we will select those potential products from select vendors. All ingredients that we purchase are purchased by and from the vendors. All products will be tested by third parties or by the vendors to ensure no presence of THC. We have not experienced nor are we aware of any shortages of supplies available.

 *NOHO Suppliers*

We do not directly manufacture our products, but instead outsource the manufacturing process to third-party bottlers and contract packers.

The Company's distribution strategy is grounded in providing access to the product by initially penetrating key strategic metropolitan service areas. The Company's plan is focused on developing a deep, versus wide distribution channel, by engaging in strategic partnerships. The Company's goal is to develop local markets, drive demand locally in each of these markets, and create strong brand awareness and consumer loyalty.

**Competition**

 *CBD Competition*

The online, Direct to Consumer environment for CBD offers is indeed highly competitive. However, the ability to develop an online offer that converts sales requires highly skilled designers with specific knowledge and experience in content creation and product placement. The online seller must also provide all support personnel from sales to customer service and CRM management. The entire platform involves many components and skilled execution that are unrelated. The ability to source these key services is rare. Moreover, as online traffic is the sales mechanism, relationships with reputable traffic providers is fundamental to success.

Good relationships are the bedrock of success in the online space. They not only ensure as much as possible that customers are legitimately acquired, and they also allow respected vendors like Sibannac to have payment terms. The ability to grow the customer base without having to finance the growth with the company's funds is a significant advantage and allows the campaign to expand and scale quickly.

Sibannac has been approved by Square™ for credit card processing for CBD product sales. Credit card processing remains difficult to obtain for CBD companies as most processing solutions are done through conventional banks and payment platforms. Even though Industrial Hemp was removed as a controlled substance as part of the 2018 Farm Bill, banking of CBD businesses, as distinct from Marijuana dispensaries, remains clouded. As part of Square's beta program, Sibannac is approved to sell compliant Hemp derived CBD products throughout the United States. Until banking and credit card processing become ubiquitous, most likely due to passage of the Safe Banking Act and related legislation as well as regulations specific to Hemp merchants, Sibannac will enjoy a less crowded competitive environment.

Sibannac's manufacturing of its own products results in very low cost and high margin. Many of the larger CBD brands do not manufacture their own products and have not only much higher cost, but have to commit to large production runs, often taxing cash reserves, and they have no direct control over quality or delivery time. Sibannac's structure, by contrast, is vertically integrated and not subject to the market conditions to the same extent of much of our competition.

 *Functional Drink Competition* 

The beverage industry is highly competitive. A number of companies who market and distribute anti-hangover drinks have recently emerged, including Hangover Joe's Recovery Shot, Security Feel Better – Anti-Hangover Drink, and Mercy Hangover Prevention.

The principal areas of competition are pricing, packaging, development of new products and flavors as well as promotional and marketing strategies. NOHO competes with other hangover related drinks produced by a number of companies, many of which have substantially greater financial, marketing and distribution resources than we do.

Important factors affecting our ability to compete successfully include taste and flavor of products, trade and consumer promotions, rapid and effective development and marketing of new, unique cutting edge products, attractive and different packaging, branded product advertising, and pricing. We also compete for distributors who will give our products more focus than those of our competitors, provide stable and reliable distribution and secure adequate shelf space in retail outlets. Competitive pressures in the "lifestyle," "alternative" and "functional" beverage categories could cause our products to be unable to gain or to lose market share or we could experience price erosion, which could have a material adverse effect on our business and results of operations.

We are also subject to increasing levels of regulatory issues, particularly in relation to the registration and taxation of our products in certain new international markets, which may put us at a competitive disadvantage.

**Regulation**

We face extensive government regulation both within and outside the U.S. relating to the development, manufacture, marketing, sale and distribution of our future products, software and services. The following sections describe certain significant regulations that we are subject to. These are not the only regulations that our businesses must comply with. For a description of risks related to the regulations that our businesses are subject to, please refer to the section entitled "Risk Factors—Risks Related to Our Businesses."

Our operations are potentially subject to a complex web of Federal and state regulations that are evolving at a rapid rate. The USDA and FDA may change rules or enforcement proceedings at any time. We do not believe that current rules and enforcement have a significant potential impact because we only use Hemp Derived CBD which is Federally legal. As the legal landscape and understanding about the differences in hemp derived cannabinoids unfolds, it will be increasingly important to distinguish "cannabis" & "THC" (with noted varying degrees of psychotropic effects and deficits in executive function) from CBD. Our future products and messaging will be very clear and precise in announcing those differences and we make no claims of any "cures" or "specific ailment" remedies.

The principal uncertainties are whether regulators will, at any time, attempt to treat CBD products similarly to THC products.

Some states are considering various taxation of cannabis-related products. These considerations seem to range from routine sales taxes to taxes similar to those imposed on tobacco products. It is unclear whether products containing Hemp Derived CBD would fall under these tax plans if and when they are imposed.

IRS section 280E prevents cannabis companies from deducting expenses from their income, except for those considered cost of goods sold. No deduction or credit is allowed for any amount paid or incurred during the taxable year in carrying on any trade or business if such trade or business (or the activities which comprise such trade or business) consists of trafficking in controlled substances (within the meaning of schedule I and II of the Controlled Substances Act) which is prohibited by Federal law or the law of any State in which such trade or business is conducted. If this section is enforced against the Company even though its future products contain no THC or other illegal substance, it could create serious operating and cash flow problems in the future.

**Federal Government Regulations**

In 2014, the distinction between the use of Cannabis Sativa L. for medical, recreational, and industrial purposes was made via Section 7606 of the Agricultural Act of 2014, which cleared a legal path for industrial hemp to be grown in three limited circumstances, 1) by researchers at an institute of higher education, 2) by state departments of agriculture, or 3) by farmers participating in a research program permitted and overseen by a state department of agriculture.

In 2016 the DEA, U.S. Department of Agriculture, and the Food and Drug Administration (FDA) issued a joint statement detailing the guidelines for growth of industrial hemp as part of state-sanctioned research programs. Those guidelines state that hemp can only be sold in states with pilot programs, plants and seeds can only cross state lines as part of permitted state research programs, and seeds can only be imported by individuals registered with the DEA We believe the recent passage of the 2018 Farm Bill will allow the Company to expand its marketplace opportunities. On December 20, 2018, President Donald J. Trump signed into law the Agriculture Improvement Act of 2018, otherwise known as the "Farm Bill". Prior to its passage, hemp, a member of the cannabis family, and hemp-derived CBD were classified as a Schedule I controlled substances, and so illegal under the CSA. With the passage of the Farm Bill, hemp cultivation is broadly permitted. The Farm Bill explicitly allows the transfer of hemp-derived products across state lines for commercial or other purposes. It also puts no restrictions on the sale, transport, or possession of hemp-derived products, so long as those items are produced in a manner consistent with the law.

Under Section 10113 of the Farm Bill, hemp cannot contain more than 0.3 percent THC. THC refers to the chemical compound found in cannabis that produces the psychoactive "high" associated with cannabis. Any cannabis plant that contains more than 0.3 percent THC would be considered non-hemp cannabis—or marijuana—under federal law and would thus face no legal protection under this new legislation and would be an illegal Schedule 1 drug under the CSA.

Additionally, there will be significant, shared state-federal regulatory power over hemp cultivation and production. Under Section 10113 of the Farm Bill, state departments of agriculture must consult with the state's governor and chief law enforcement officer to devise a plan that must be submitted to the Secretary of the United States Department of Agriculture (hereafter referred to as the "USDA"). A state's plan to license and regulate hemp can only commence once the Secretary of USDA approves that state's plan. In states opting not to devise a hemp regulatory program, USDA will construct a regulatory program under which hemp cultivators in those states must apply for licenses and comply with a federally run program. This system of shared regulatory programming is similar to options states had in other policy areas such as health insurance marketplaces under the Affordable Care Act, or workplace safety plans under Occupational Health and Safety Act—both of which had federally-run systems for states opting not to set up their own systems.

The Farm Bill outlines actions that are considered violations of federal hemp law (including such activities as cultivating without a license or producing cannabis with more than 0.3% THC). The Farm Bill details possible punishments for such violations, pathways for violators to become compliant, and even which activities qualify as felonies under the law, such as repeated offenses.

One of the goals of the previous 2014 Farm Bill was to generate and protect research into hemp. The 2018 Farm Bill continues this effort. Section 7605 re-extends the protections for hemp research and the conditions under which such research can and should be conducted. Further, section 7501 of the Farm Bill extends hemp research by including hemp under the Critical Agricultural Materials Act. This provision recognizes the importance, diversity, and opportunity of the plant and the products that can be derived from it, but also recognizes that there is still a lot to learn about hemp and its products from commercial and market perspectives.

***FDA Regulation of Hemp Extracts***

The United States Food & Drug Administration ("FDA") is generally responsible for protecting the public health by ensuring the safety, efficacy, and security of (1) prescription and over the counter drugs; (2) biologics including vaccines, blood & blood products, and cellular and gene therapies; (3) foodstuffs including dietary supplements, bottled water, and baby formula; and, (4) medical devices including heart pacemakers, surgical implants, prosthetics, and dental devices.

Regarding its regulation of drugs, the FDA process requires a review that begins with the filing of an investigational new drug (IND) application, with follow on clinical studies and clinical trials that the FDA uses to determine whether a drug is safe and effective, and therefore subject to approval for human use by the FDA.

Aside from the FDA's mandate to regulate drugs, the FDA also regulates dietary supplement products and dietary ingredients under the Dietary Supplement Health and Education Act of 1994. This law prohibits manufacturers and distributors of dietary supplements and dietary ingredients from marketing products that are adulterated or misbranded. This means that these firms are responsible for evaluating the safety and labeling of their products before marketing to ensure that they meet all the requirements of the law and FDA regulations, including, but not limited to the following labeling requirements: (1) identifying the supplement; (2) nutrition labeling; (3) ingredient labeling; (4) claims; and, (5) daily use information.

The FDA has not approved cannabis, marijuana, hemp or derivatives as a safe and effective drug for any indication. As of the date of this filing, we have not, and do not intend to file an IND with the FDA, concerning any of our proposed products that contain CBD derived from industrial hemp or cannabis delivered in the State of California. Further, our proposed products containing CBD derived from industrial hemp are not marketed or sold using claims that their use is safe and effective treatment for any medical condition subject to the FDA's jurisdiction.

The FDA has concluded that products containing cannabis or industrial hemp derived CBD are excluded from the dietary supplement definition under sections 201(ff)(3)(B)(i) and (ii) of the U.S. Food, Drug & Cosmetic Act, respectively. The FDA's position is that products containing cannabis, CBD or derivatives are Schedule 1 drugs under the Controlled Substances Act, and so are illegal. Our planned products containing CBD derived from industrial hemp or cannabis delivered in other States are not marketed or sold as dietary supplements. However, at some indeterminate future time, the FDA may choose to change its position concerning generally cannabis and products containing hemp derived CBD and may choose to enact regulations that are applicable to such products. In this event, our proposed industrial hemp-based products containing CBD and cannabis may be subject to regulation (See Risk Factors).

 **Functional Drink Regulations**

The operation of our facility and the production, distribution and sale of our future products in the United States are subject to the Federal Food, Drug and Cosmetic Act; the Dietary Supplement Health and Education Act of 1994; the Occupational Safety and Health Act; the Lanham Act; various environmental statutes; and various other federal, state and local statutes regulating the production, transportation, sale, safety, advertising, labeling and ingredients of such products. We believe that we are in compliance, in all material respects, with such existing legislation and that prior to the operation of our facility, we will have all the required licenses to operate.

In the future we plan to initiate development of nutritionally enhanced beverages. Nutritionally enhanced beverages are beverages that are fortified with vitamins and minerals for greater nutritional value. In addition to our NOHO AfterShot being enhanced with vitamins and minerals, we also potentially plan, subject to compliance with applicable laws, to include CBD in our future NOHO products. However, we make no claim that that the addition of CBD to our future NOHO products in and of itself will make our future NOHO products nutritionally enhanced.

Our facility is subject to federal, state and local environmental laws and regulations. We do not expect that compliance with these provisions will have any material adverse effect on our financial or competitive position. We believe our future practices and procedures for the control and disposition of toxic or hazardous substances will comply in all material respects with applicable law.

***Environmental Regulations***

Our operations and properties are subject to laws and regulations relating to environmental protection, including those governing air emissions, water discharges and waste management, and workplace health and safety. In addition, certain of our proposed products are regulated by the U.S. Environmental Protection Agency and comparable state regulatory agencies. For a discussion of risks related to compliance with environmental and health and safety laws and risks related to past or future releases of, or exposures to, hazardous substances, please refer to the section entitled "Risk Factors—Risks Related to Our Businesses."

**Seasonality**

We do not expect any seasonality in our business.

**Property**

Our mailing address is 9535 E. Doubletree Ranch Rd., Ste 120, Scottsdale, AZ 85258. Our main telephone number is (480) 407-6445. Our website is www.snncinc.com and our email address is info@snncinc.com.

*Manufacturing/Warehousing* 

The Company leases 5,000 sq. ft. of flexible industrial space in Scottsdale, AZ. This facility consists of an office, warehouse and clean manufacturing/laboratory space. The lease rate is @ $15.45 per sq. ft., on an annual basis, and there are approximately 18 months remaining on the lease. The property owner has expressed interest in renewing the lease.

 *Retail Space*

The Company leases 450 sq. ft. of retail space in Old Town Scottsdale, AZ. This facility consists of an office, warehouse and clean manufacturing/laboratory space. The lease rate is $24.53 per sq. ft., on an annual basis, and there are 11 months remaining on the lease. The lease may be terminated at any time with thirty days' notice.

**Employees**

Other than David Mersky our sole Officer and a Director we have no full-time and no part-time employees of our business or operations who are employed at will by Sibannac, Inc. We anticipate adding additional employees in the next 12 months, as needed. We do not feel that we would have any unmanageable difficulty in locating needed staff, in large part because of our Remote Work corporate structure that allows for location and time flexibility.

*CEO Employment Agreement*

On July 10, 2017, the Company and David Mersky, our CEO entered into an Officer Employment Agreement (Employment Agreement). The term of the Employment Agreement is for five (5) years. As per the Employment Agreement Mr. Mersky will be employed as the CEO of the Company, and as such will devote his efforts energies and skill to the discharge of the duties and responsibilities attributable to the CEO position with the Company. Mr. Mersky's base salary as per the Employment Agreement is in the amount of One Hundred Seventy-Five Thousand Dollars ($175,000) per year, Mr. Mersky, will also be eligible for an annual incentive compensation bonus of up to Twenty-Five (25%) percent based upon measurable goals that are agreed to by the Board of Directors and Mr. Mersky, annually. Additionally as per the Employment Agreement the Employment Agreement will be reviewed yearly and there can be adjustments to the Base Salary and the award of Incentive Compensation on or before August 15<sup>th</sup> each year.

The foregoing description of the Employment Agreement does not purport to be complete and are qualified in their entirety by reference to the complete text of such agreements, which was filed as Exhibit 6.1, to our Regulation A Offering, with the SEC on January 20, 2022, and is incorporated herein by reference.

**Intellectual Property**

We may rely on a combination of patent, trademark, copyright, and trade secret laws in the United States as well as confidentiality procedures and contractual provisions to protect our proprietary technology, databases, and our brand.

In the future we will implement a policy of requiring key employees and consultants to execute confidentiality agreements upon the commencement of an employment or consulting relationship with us. Our employee agreements will also require relevant employees to assign to us all rights to any inventions made or conceived during their employment with us. In addition, we will have a policy of requiring individuals and entities with which we discuss potential business relationships to sign non-disclosure agreements. Our agreements with clients include confidentiality and non-disclosure provisions.

**Legal Proceedings**

We may from time to time be involved in various claims and legal proceedings of a nature we believe are normal and incidental to our business. These matters may include product liability, intellectual property, employment, personal injury caused by our employees, and other general claims. We are not presently a party to any legal proceedings that, in the opinion of our management, are likely to have a material adverse effect on our business. Regardless of the outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources and other factors.

**MANAGEMENT**

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The following table sets forth information regarding our executive officers, directors and significant employees, including their ages as of February 7, 2023:

As of February 7, 2023, the Sibannac, Inc. had 1 full-time employee (our Officer David Mersky), and no part-time employees.

The directors and executive officers of the Company as of February 7, 2023, are as follows:

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| | | | |
|:---|:---|:---|:---|
| **Name** | **Position** | **Age** | **Approx. Hours Per Week** |
| David Mersky, Esq. | President, CEO, CFO, Secretary Director | 51 | 50 |
| Eric Stoll | Chief Marketing Officer | 50 | 35 |
| Booker T. Evans, Jr. Esq. | Director | 76 | 1 |

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 **David A. Mersky, 51, Chief Executive Officer and Director**

Mr. Mersky earned his Bachelor of Science in Marketing from the prestigious Stern School of Business at New York University. Upon graduation he was accepted to Brooklyn Law School, where he earned his Juris Doctor degree. Mr. Mersky was admitted to the New York Bar as well as the Federal U.S. District Courts for the Eastern and Southern Districts of New York. David practiced commercial litigation as a trial lawyer in the greater New York City area prior to relocating to Arizona for an opportunity to explore the merchant services industry. In addition to conventional payment processing, David expanded into other financial services products and forged cross-marketing partnerships, eventually combining his background in marketing, law and merchant services to form Time Jump Investments, catering to brick-and-mortar merchants as well as online sellers. David brings his multi-faceted background and experience to Sibannac, as the company aggressively pursues an innovative business model in the alternative health and wellness space. Mr. Mersky has been the full time Chief Executive Officer of the Company, exclusively since assuming the position in 2017.

 **Eric Stoll, 50, Chief Marketing Officer**

Mr. Stoll has operated Lifetime Branding Collaborative LLC, since 2016, as its founder and Chief Marketing Officer. During this time, he has been exclusively working in that capacity, responsible for the oversight of all creative and branding operations on behalf of the firm's clients. Mr. Stoll is a creative optimist who is supremely skilled in connecting brands with people. Eric's natural energy for creativity, authenticity and humor has uniquely influenced his work. Success has grown from his ability to create long-lasting relationships and to translate the creative process into breakthrough design and storytelling for some of the world's most recognizable brands including American Express and Converse. With 30 years of experience in the worlds of business and marketing, Eric has honed his capacity for blending commercial reality and cultural influence.

 **Booker T. Evans, Jr., Esq., 76, Director**

Mr. Evans is a renowned trial attorney, having been a member of some of the leading law firms in the country over one of the most distinguished legal careers. Mr. Evan's practice has been concentrated in commercial litigation and white- collar criminal defense, product liability, insurance matters, criminal and civil RICO cases, and health law matters. Booker has substantial civil and criminal trial experience, along with post-conviction case experience in the federal court system and is often retained in matters involving the Federal Sentencing Guidelines.

He has been named to Arizona's Finest Lawyers, a Southwest Super Lawyer in Arizona, a Top 50 Super Lawyer and a Super Lawyer in White Collar Criminal Defense, a Top 100 Trial Lawyer and a Best Lawyer in America by *US News & World Report*.

Prior to entering private practice, he served as a Chief Deputy District Attorney in Las Vegas, Assistant United States Attorney in Nevada and Arizona, and Corporate Counsel for Arizona Public Service Company. Mr. Evans continues to practice law in the Phoenix area.

**______**

In the ordinary course of business, the Board plans to maintain an independent compensation committee and an audit committee. At this time, our Board, as a whole, serves as its compensation committee and audit committee. Our Board has determined that none of the directors sitting on the audit committee qualify as a financial expert.

The primary function of the compensation committee is to review and make recommendations to the Board with respect to the compensation, including bonuses, of our officers. The functions of the audit committee are to review the scope of the audit procedures employed by our independent auditors, to review with the independent auditors our accounting practices and policies and recommend to whom reports should be submitted, to review with the independent auditors their final audit reports, to review with our internal and independent auditors our overall accounting and financial controls, to be available to the independent auditors during the year for consultation, to approve the audit fee charged by the independent auditors, to report to the board of directors with respect to such matters, and to recommend the selection of the independent auditors.

In the absence of a separate audit committee our Board of Directors functions as the audit committee and performs some of the same functions of an audit committee, such as recommending a firm of independent certified public accountants to audit the annual financial statements; reviewing the independent auditors independence, the financial statements and their audit report; and reviewing management's administration of the system of internal accounting controls.

None of our officers or directors in the last five years has been the subject of any conviction in a criminal proceeding or named as a defendant in a pending criminal proceeding (excluding traffic violations and other minor offenses), the entry of an order, judgment, or decree, not subsequently reversed, suspended or vacated, by a court of competent jurisdiction that permanently or temporarily enjoined, barred, suspended or otherwise limited such person's involvement in any type of business, securities, commodities, or banking activities; a finding or judgment by a court of competent jurisdiction (in a civil action), the Securities and Exchange Commission, the Commodity Futures Trading Commission, or a state securities regulator of a violation of federal or state securities or commodities law, which finding or judgment has not been reversed, suspended, or vacated; or the entry of an order by a self-regulatory organization that permanently or temporarily barred, suspended or otherwise limited such person's involvement in any type of business or securities activities.

Other than the foregoing, there are no family relationships among and between our directors, officers, persons nominated or chosen by the Company to become directors or officers, or beneficial owners of more than five percent (5%) of the any class of the Company's equity securities.

**EXECUTIVE COMPENSATION**

**______**

The following summary compensation table sets forth all compensation awarded to, earned by, or paid to our named executive Officer paid by us during the year ended August 31, 2022, in all capacities for the accounts of our executives, including the Chief Executive Officer (CEO) and Chief Financial Officer (CFO), Chief Operating Officer (COO), President (P), and Executive Vice President (EVP).

**SUMMARY COMPENSATION TABLE**

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Name and Principal Position** | **Year** | **Salary <br> ($)** | **Bonus <br> ($)** | **Stock <br> Awards <br> ($)** | **Option Awards <br> ($)** | **Non-Equity Incentive Plan Compensation ($)** | **Non-Qualified Deferred Compensation Earnings** <br> **($)**  | **All Other Compensation <br> ($)** | **Totals <br> ($)** |
| David Mersky, | 2021 | $175000 | 0 | 0 | 0 | 0 | 0 | 0 | $175000 |
| CEO, Secretary, Director | 2022 | $175000 | 0 | 0 | 0 | 0 | 0 | 0 | $175000 |
| James D. Staudohar, Director | 2021 | $0 | 0 | 0 | 0 | 0 | 0 | 0 | $0 |
| James D. Staudohar, Director | 2022 | $— | 0 | 0 | 0 | 0 | 0 | 0 | $— |
| Booker T. Evans, Esq., Director | 2021 | $0 | 0 | 0 | 0 | 0 | 0 | 0 | $0 |
| Booker T. Evans, Esq., Director | 2022 | $0 | 0 | 0 | 0 | 0 | 0 | 0 | $0 |
| Eric Stoll, Director | 2021 | $0 | 0 | 0 | 0 | 0 | 0 | 0 | $0 |
|  | 2022 | $0 | 0 | 0 | 0 | 0 | 0 | 0 | $0 |

---

*Narrative Disclosure to Summary Compensation Table*

There are no compensatory plans or arrangements, including payments to be received from the Company with respect to any executive Officer, that would result in payments to such person because of his or her resignation, retirement or other termination of employment with the Company, or its subsidiaries, any change in control, or a change in the person's responsibilities following a change in control of the Company.

*Outstanding Equity Awards at Fiscal Year-End*

No executive Officer received any equity awards, or holds exercisable or unexercisable options, as of the year ended August 31, 2022.

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **OPTION AWARDS** | **OPTION AWARDS** | **OPTION AWARDS** | **OPTION AWARDS** | **OPTION AWARDS** | **STOCK AWARDS** | **STOCK AWARDS** | **STOCK AWARDS** | **STOCK AWARDS** | **STOCK AWARDS** |
| **Name** <br>**(a)** | **Number of Securities Underlying Unexercised Options (#) Exercisable**<br>**(b)** | **Number of Securities Underlying Unexercised Options (#) Unexercisable**<br>**(c)** | **Equity Incentive Plan Awards: Number of Securities Underlying Unexercised Unearned Options**<br> **(#)**<br>**(d)** | **Option Exercise Price ($)**<br>**(e)** | **Option Expiration Date**<br>**(f)** | **Number of Shares or Units of Stock that have not Vested (#)**<br>**(g)** | **Market Value of Shares or Units of Stock that have not Vested**<br> **($)**<br>**(h)** | **Equity Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights that have not Vested**<br> **($)**<br>**(i)** | **Equity Incentive Plan Awards: Market or Payout Value of Unearned Shares, Units or Other Rights that have not Vested**<br> **($)**<br>**(j)** |
|  | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |

---

*Long-Term Incentive Plans*

There are no arrangements or plans in which the Company would provide pension, retirement or similar benefits for our Director or executive Officer.

*Compensation Committee*

The Company currently does not have a compensation committee of the Board of Directors. The Board of Directors as a whole determines executive compensation.

*Compensation of Directors*

Directors are permitted to receive fixed fees and other compensation for their services as Directors. The Board of Directors has the authority to fix the compensation of Directors. No amounts have been paid to, or accrued to, Directors in such capacity.

*Director Independence*

The Board of Directors is currently composed of 3 members. David Mersky, who does not qualify as an independent Director in accordance with the published listing requirements of the NASDAQ Global Market. Eric Stoll, and Booker T. Evans, Esq., who do qualify as independent Directors in accordance with the published listing requirements of the NASDAQ Global Market. The NASDAQ independence definition includes a series of objective tests, such as that the Director is not, and has not been for at least three years, one of the Company's employees and that neither the Director, nor any of his family members has engaged in various types of business dealings with us. In addition, the Board of Directors has not made a subjective determination as to the Director that no relationships exist which, in the opinion of the Board of Directors, would interfere with the exercise of independent judgment in carrying out the responsibilities of a Director, though such subjective determination is required by the NASDAQ rules. Had the Board of Directors made these determinations, the Board of Directors would have reviewed and discussed information provided by the Director and the Company with regard to our Director's business and personal activities and relationships as they may relate to the Company and its management.

*Security Holders Recommendations to Board of Directors*

The Company welcomes comments and questions from the shareholders. Shareholders can direct communications to David Mersky, our CEO, 9535 E. Doubletree Ranch Road, Ste 120, Scottsdale, Arizona 85258. Our main telephone number is (480) 407.6445. However, while the Company appreciates all comments from shareholders, it may not be able to individually respond to all communications. Management attempts to address shareholder questions and concerns in press releases and documents filed with the SEC so that all shareholders have access to information about the Company at the same time. David Mersky collects and evaluates all shareholder communications. All communications addressed to the Director and executive Officer will be reviewed by David Mersky unless the communication is clearly frivolous.

**CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS**

**___________**

During the last two full fiscal years and the current fiscal year or any currently proposed transaction, there is no transaction involving the Company, in which the amount involved exceeds the lesser of $120,000 or one percent of the average of the Company's total assets at year-end for its last three fiscal years.

**Disclosure of Conflicts of Interest**

Other than the aforementioned, there are no conflicts of interest between the Company and any of its officers or directors.

**Stock Options**

We have not issued and do not have outstanding any options to purchase shares of our Common Stock. We do not have any stock option plans.

**Share Purchase Warrants**

Commencing in the quarter ended February 28, 2022, the Company was approved to sell in a Regulation A public offering, units consisting of five (5) shares of its common stock and an accompanying Class A Warrant to purchase one (1) share of the Company's common stock at a combined price of $0.15 per share.

The Company values its Class A Warrants at issuance using the Black-Scholes option pricing model. The key inputs to the valuation model include average volatility and an expected term of 2 years. The warrants are recorded in additional paid in capital at their initial fair value. They will not be remeasured in subsequent reporting periods.

On February 9, 2022, the Company issued 600,000 Class A Warrants that expire on February 10, 2024. The Company determined that the fair value of the Class A Warrants was $39,821.

On April 5, 2022, the Company issued 300,000 Class A Warrants that expire on April 6, 2024. The Company determined that the fair value of the Class A Warrants was $19,411.

On May 9, 2022, the Company issued 165,000 Class A Warrants expiring May 10, 2024. The Company determined that the fair value of the Class A Warrants was $10,951.

On June 29, 2022, the Company issued 260,000 Class A Warrants expiring June 30, 2024. The Company determined that the fair value of the Class A Warrants was $5,369.

On July 26, 2022, the Company issued 135,000 Class A Warrants expiring July 27, 2024. The Company determined that the fair value of the Class A Warrants was $963.

On August 11, 2022, the Company issued 70,000 Class A Warrants expiring August 12, 2024. The Company determined that the fair value of the Class A Warrants was $1,259.

On August 31, 2022, the Company made a year-end adjustment $11,017 in paid-in capital related to the warrants issued in the second quarter of FY 2022, resulting in an adjustment of the total carrying cost of all outstanding warrants by that amount, and credited to paid-in-capital. The total paid in capital for the quarter was not affected.

On September 14, 2022, the Company issued 433,335 Class A Warrants expiring September 15, 2024. The Company determined that the fair value of the Class A Warrants was $7,289.

As of November 30, 2022, there were 1,963,335 Class A Warrants outstanding which the Company has valued at $74,046.

*Indemnification of Directors and Officers*

Our articles of incorporation provide that no Director or Officer shall be personally liable for damages for breach of fiduciary duty for any act or omission unless such acts or omissions involve intentional misconduct, fraud, knowing violation of law, or payment of dividends in violation of Section 78.300 of the Nevada Revised Statutes.

Our bylaws provide that we shall indemnify any and all of our present or former Directors and Officers, or any person who may have served at our request as Director or Officer of another corporation in which we own stock or of which we are a creditor, for expenses actually and necessarily incurred in connection with the defense of any action, except where such Officer or Director is adjudged to be liable for negligence or misconduct in performance of duty. To the extent that a Director has been successful in defense of any proceeding, the Nevada Revised Statutes provide that he shall be indemnified against reasonable expenses incurred in connection therewith.

We do not currently maintain standard policies of insurance under which coverage is provided (a) to our Directors, Officers, employees and other agents against loss arising from claims made by reason of breach of duty or other wrongful act, and (b) to us with respect to payments which may be made by us to such Officers and Directors pursuant to the above indemnification provision or otherwise as a matter of law, although we may do so in the future.

Insofar as indemnification for liabilities arising under the Securities Act may be permitted to Directors, Officers and controlling persons of the Company pursuant to the foregoing provisions, or otherwise, the Company has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy and is, therefore, unenforceable.

**Review, Approval or Ratification of Transactions with Related Parties**

We have adopted a related-party transactions policy under which our executive officers, directors, nominees for election as a director, beneficial owners of more than 5% of any class of our Common Stock, and any members of the immediate family of any of the foregoing persons are not permitted to enter into a related-party transaction with us without the consent of our audit committee. If the related party is, or is associated with, a member of our audit committee, the transaction must be reviewed and approved by another independent body of our Board of Directors, such as our governance committee. Any request for us to enter into a transaction with a related party in which the amount involved exceeds $120,000 and such party would have a direct or indirect interest must first be presented to our audit committee for review, consideration and approval. If advance approval of a related-party transaction was not feasible or was not obtained, the related-party transaction must be submitted to the audit committee as soon as reasonably practicable, at which time the audit committee shall consider whether to ratify and continue, amend and ratify, or terminate or rescind such related-party transaction. All of the transactions described above were reviewed and considered by, and were entered into with the approval of, or ratification by, our Board of Directors.

During the last two full fiscal years and the current fiscal year or any currently proposed transaction, there are transactions involving the issuer, in which the amount involved exceeds the lesser of $120,000 or one percent of the average of the issuer's total assets at year-end for its last three fiscal years, except compensation awarded to executives.

**Related Party Transactions**

As of August 31, 2022, The Company has issued short term demand notes to the CEO and members of his immediate family in exchange for cash loans which are classified as Related Party Notes in the table below.

None of these loans pay or accrue interest.

---

| | | |
|:---|:---|:---|
|  | **For the period ended** | **For the period ended** |
|  | **8/31/22** | **08/31/21** |
| Related Party Notes | $11762 | $72914 |
| Total | $11672 | $72914 |

---

As of November 30, 2022, the Company has issued short term demand notes to the CEO and members of his immediate family in exchange for cash loans which are classified as Related Party Notes in the table below.

None of these loans pay or accrue interest.

---

| | | |
|:---|:---|:---|
|  | For the period ended | For the period ended |
|  | **11/30/22** | **11/30/21** |
| Related Party Notes | $0 | $56692 |
| Total | $0 | $56692 |

---

**Disclosure of Conflicts of Interest**

There are no conflicts of interest between the Company and any of its officers or directors.

**Legal/Disciplinary History**

None of Sibannac, Inc.'s Officers or Directors have been the subject of any criminal proceeding or named as a defendant in a pending criminal proceeding (excluding traffic violations and other minor offenses);

None of Sibannac, Inc.'s Officers or Directors have been the subject of any entry of an order, judgment, or decree, not subsequently reversed, suspended or vacated, by a court of competent jurisdiction that permanently or temporarily enjoined, barred, suspended or otherwise limited such person's involvement in any type of business, securities, commodities, or banking activities;

None of Sibannac, Inc.'s Officers or Directors have been the subject of any finding or judgment by a court of competent jurisdiction (in a civil action), the Securities and Exchange Commission, the Commodity Futures Trading Commission, or a state securities regulator of a violation of federal or state securities or commodities law, which finding or judgment has not been reversed, suspended, or vacated; or

None of Sibannac, Inc.'s Officers or Directors has been the subject of any entry of an order by a self-regulatory organization that permanently or temporarily barred, suspended or otherwise limited such person's involvement in any type of business or securities activities.

**Board Composition**

Our board of directors currently consists of three members. Each director of the Company will serve until the next annual meeting of stockholders and until his successor is elected and duly qualified, or until his earlier death, resignation or removal. Our board is authorized to appoint persons to the offices of Chairman of the Board of Directors, President, Chief Executive Officer, one or more vice presidents, a Treasurer or Chief Financial Officer and a Secretary and such other offices as may be determined by the board.

We have no formal policy regarding board diversity. In selecting board candidates, we seek individuals who will further the interests of our stockholders through an established record of professional accomplishment, the ability to contribute positively to our collaborative culture, knowledge of our business and understanding of our prospective markets.

**Board Leadership Structure and Risk Oversight**

The board of directors oversees our business and considers the risks associated with our business strategy and decisions. The board currently implements its risk oversight function as a whole. Each of the board committees, when established, will also provide risk oversight in respect of its areas of concentration and reports material risks to the board for further consideration.

**Code of Business Conduct and Ethics**

Prior to one year from the date of this Offering's qualification, we plan on adopting a written code of business conduct and ethics that applies to our directors, officers and employees, including our principal executive officer, principal financial officer and principal accounting officer or controller, or persons performing similar functions. We will post on our website a current copy of the code and all disclosures that are required by law or market rules in regard to any amendments to, or waivers from, any provision of the code.

**PRINCIPAL STOCKHOLDERS**

**______**

The following table sets forth certain information known to us regarding beneficial ownership of our capital stock as of February 7, 2023 for (i) all executive officers and directors as a group and (ii) each person, or group of affiliated persons, known by us to be the beneficial owner of more than ten percent (10%) of our capital stock. The percentage of beneficial ownership in the table below is based on 80,142,821 shares of common stock deemed to be outstanding as of February 7, 2023.

The following table gives information on ownership of our securities as of February 7, 2023. The following lists ownership of our Common Stock and Preferred Stock by each person known by us to be the beneficial owner of over 5% of the outstanding Common and Preferred Stock, and by our officers and directors:

---

| | | |
|:---|:---|:---|
| **Name of Beneficial Owner** | **Amount and Nature of Beneficial Ownership<sup>(1)</sup>** | **Percentage of Beneficial Ownership** |
| **Directors and Officers:** |  |  |
| David Mersky, CEO, CFO, Secretary, Director | 5,000,000 Series A Preferred | 51%<sup>(2)</sup> |
| Booker T. Evans, Esq., Director | 0 | 0% |
| MDHC Johnson Family Partnership | 18,000 Series B Preferred <br>1,000,000 Common <br>235,597 Series D Preferred  | 2 <br>1.2 <br>15 <br>&nbsp;&nbsp;&nbsp;&nbsp;%<sup>(3)</sup> % %  |
| Eric Stoll - Director | 80,000 Series B Preferred | 9%<sup>(3)</sup> |
| Rubicon Peak Capital, LLC <br>| 146,305 Series D Preferred | 9.8% |
| All executive officers and directors as a group (3 persons) |  | 0% Common Stock <br>100% Series A Preferred <br>80% Series B Preferred <br>60%**<sup>(2)</sup>** Total Common Vote  |

---

_____________

(1) Under Rule 13d-3, a beneficial owner of a security includes any person who, directly or indirectly, through any contract, arrangement, understanding, relationship, or otherwise has or shares: (i) voting power, which includes the power to vote, or to direct the voting of shares; and (ii) investment power, which includes the power to dispose or direct the disposition of shares. Certain shares may be deemed to be beneficially owned by more than one person (if, for example, persons share the power to vote or the power to dispose of the shares). In addition, shares are deemed to be beneficially owned by a person if the person has the right to acquire the shares (for example, upon exercise of an option) within 60 days of the date as of which the information is provided. In computing the percentage ownership of any person, the amount of shares outstanding is deemed to include the amount of shares beneficially owned by such person (and only such person) by reason of these acquisition rights. As a result, the percentage of outstanding shares of any person as shown in this table does not necessarily reflect the person's actual ownership or voting power with respect to the number of shares of common stock actually outstanding.

(2) Based
 upon a total of 80,944,250 Series A Preferred Stock votes when considering Series A Preferred
 Stock voting designation.

(3) Based upon 80,142,821 common shares issued and outstanding,
 without conversions as of February 7, 2023.

**INTEREST OF MANAGEMENT AND OTHERS IN CERTAIN TRANSACTIONS**

Other than as reported herein, during the last two full fiscal years and the current fiscal year or any currently proposed transaction, there is no transaction involving the Company, in which the amount involved exceeds the lesser of $120,000 or one percent of the average of the Company's total assets at year-end for its last three fiscal years.

**DESCRIPTION OF SECURITIES**

**______**

**The Company's Authorized Stock**

We are authorized to issue Three Hundred Million (300,000,000)shares of common stock with a par value of $0.001 per share (the "Common Stock") of which Ten Million (10,000,000) shares are authorized as preferred stock. (the "Preferred Stock"), of which 10,000,000 such shares have been designated as Preferred Stock. Each share of common stock is entitled to one vote per share of common stock.

 ***Series A Convertible Preferred Stock***. The Company is currently authorized to issue 5,000,000 shares which have been issued. This class has no conversion rights and provides a 51% voting majority on all matters before the shareholders. As of February 7, 2023, 5,000,000 shares of Series A Convertible Preferred Stock were issued and outstanding.

 ***Series B Convertible Preferred Stock.*** The Company is currently authorized to issue up to 400,000 shares of Series B Convertible Preferred Stock, par value $0.001 per share. Series B Convertible Preferred Stock shall be convertible by calculating eighty-percent (80%) of the closing stock price of the Company's Common Stock on the five (5) trading days prior to the date of any Conversion Demand, divided into the Face Value (the "Conversion Ratio"). Any fractional shares calculated and issued pursuant to this Section 5 shall be rounded up to the nearest whole share. The minimum conversion ratio shall be twenty (20) shares and the maximum conversion ratio shall be one hundred (100) shares. In no event may a holder of any Series B Convertible Preferred Stock be able to convert and own more than 4.9% of the currently issued and outstanding shares of the Company at any time. The Series B Convertible Preferred Stock receives an eight percent (8.0%) quarterly dividend on its face value ($5.00) payable in cash or Series B Convertible Preferred Stock at the Company's sole discretion. These shares have no common stock voting rights but may vote as to amendments or adjustments relating to the Series B Convertible Preferred Stock. As of February 7, 2023, 99,500 shares of Series B Convertible Preferred Stock were issued and outstanding.

 ***Series D Convertible Preferred Stock***. The Company is currently authorized to issue up to 1,200,000 shares of Series D Convertible Preferred Stock, par value $0.001 per share, convertible at a ratio of 1 share of Series D Convertible Preferred Stock for 60 shares of common stock. In no event may a holder of any Series D Convertible Preferred Stock be able to convert and own more than 9.9% of the currently issued and outstanding shares of the Company at any time. The Series D Convertible Preferred Stock receives an eight percent (8.0%) quarterly dividend on its face value ($1.00) payable in cash or Series D Convertible Preferred Stock at the Company's sole discretion. These shares have no common stock voting rights but may vote as to amendments or adjustments relating to the Series D Convertible Preferred Stock. As of February 7, 2023, 381,902 shares of Series D Convertible Preferred Stock were issued and outstanding.

<u>Common Stock</u> 

No shareholders of the Corporation holding Common Stock have any preemptive or other right to subscribe for any additional unissued or treasury shares of stock or for other securities of any class.

Subject to the rights of the holders of Preferred Stock, holders of Common Stock shall be entitled to receive such cash dividends as may be declared thereon by the Board from time to time out of assets of funds of the Corporation legally available, therefore.

Cumulative Voting. As per our ByLaws, Stockholders may use cumulative voting elections when electing Directors.

Except as otherwise required by Nevada corporation law, the Articles of Incorporation, or any designation for a class of Preferred Stock (which may provide that an alternate vote is required), (i) all shares of capital stock of the Corporation shall vote together as one class on all matters submitted to a vote of the shareholders of the Corporation; and (ii) the affirmative vote of a majority of the voting power of all outstanding shares of voting stock entitled to vote in connection with the applicable matter shall be required for approval of such matter.

Adoption of Bylaws. In the furtherance and not in limitation of the powers conferred by statute and the Articles of Incorporation, the Board is expressly authorized to adopt, repeal, rescind. alter or amend in any respect the bylaws of the Corporation.

Shareholder Amendment of Bylaws. The Bylaws may also be adopted, repealed, rescinded, altered or amended in any respect by the stockholders of the Corporation, but only by the affirmative vote of the holders of not less than a majority of the voting power of all outstanding shares of voting stock, regardless of class and voting together as a single voting class.

Removal of Directors. Except as may otherwise be provided in connection with rights to elect additional directors under specified circumstances, which may be granted to the holders of any class or series of Preferred Stock, any director may be removed from office only by the affirmative vote of the holders of not less than a majority of the voting power of the issued and outstanding stock entitled to vote. Failure of an incumbent director to be nominated to serve an additional term of office shall not be deemed a removal from office requiring any stockholder vote.

<u>Preferred Stock</u>

 ***Series A Convertible Preferred Stock***: The Company is currently authorized to issue 5,000,000 shares which have been issued. This class has no conversion rights and provides a 51% voting majority on all matters before the shareholders. As of February 7, 2023, 5,000,000 shares of Series A Convertible Preferred Stock were issued and outstanding.

 ***Series B Convertible Preferred Stock.*** The Company is currently authorized to issue up to 400,000 shares of Series B Convertible Preferred Stock, par value $0.001 per share. Series B Convertible Preferred Stock shall be convertible by calculating eighty-percent (80%) of the closing stock price of the Company's Common Stock on the five (5) trading days prior to the date of any Conversion Demand, divided into the Face Value (the "Conversion Ratio"). Any fractional shares calculated and issued pursuant to this Section 5 shall be rounded up to the nearest whole share. The minimum conversion ratio shall be twenty (20) shares and the maximum conversion ratio shall be one hundred (100) shares. In no event may a holder of any Series B Convertible Preferred Stock be able to convert and own more than 4.9% of the currently issued and outstanding shares of the Company at any time. The Series B Convertible Preferred Stock receives an eight percent (8.0%) quarterly dividend on its face value ($5.00) payable in cash or Series B Convertible Preferred Stock at the Company's sole discretion. These shares have no common stock voting rights but may vote as to amendments or adjustments relating to the Series B Convertible Preferred Stock. As of February 7, 2023, 99,500 shares of Series B Convertible Preferred Stock were issued and outstanding.

 ***Series D Convertible Preferred Stock***. The Company is currently authorized to issue up to 1,200,000 shares of Series D Convertible Preferred Stock, par value $0.001 per share, convertible at a ratio of 1 share of Series D Convertible Preferred Stock for 60 shares of common stock. In no event may a holder of any Series D Convertible Preferred Stock be able to convert and own more than 9.9% of the currently issued and outstanding shares of the Company at any time. The Series D Convertible Preferred Stock receives an eight percent (8.0%) quarterly dividend on its face value ($1.00) payable in cash or Series D Convertible Preferred Stock at the Company's sole discretion. These shares have no common stock voting rights but may vote as to amendments or adjustments relating to the Series D Convertible Preferred Stock. As of February 7, 2023, 381,902 shares of Series D Convertible Preferred Stock were issued and outstanding.

The powers, preferences, rights, qualifications, limitations and restrictions pertaining to the Preferred Stock, or any series thereof, shall be such as may be fixed, from time to time, by the Board in its sole discretion. Authority to do so being hereby expressly vested in the Board. The authority of the Board with respect to each such series of Preferred Stock will include, without limiting the generality of the foregoing, the determination of any or all of the following:

The number of shares of any series and the designation to distinguish the shares of such series from the shares of all other series: (1) the voting powers, if any, of the shares of such series and whether such voting powers are full or limited: (2) the redemption provisions, if any, applicable to such series, including the redemption price or prices to be paid; (3) whether dividends, if any, will be cumulative or noncumulative, the dividend rate or rates of such series and the dates and preferences of dividends on such series: (4) the rights of such series upon the voluntary or involuntary dissolution of, or upon any distribution of the assets of. the Corporation: (5) the provisions, if any, pursuant to which the shares of such series are convertible into, or exchangeable for, shares of any other class or classes of any other series of the same other any other class or classes of stock or any other security, of the Corporation or any other corporation or entity, and the rates or other determinants of conversion or exchange applicable thereto; (6) the right, if any, to subscribe for or to purchase any securities of the Corporation or any other corporation or other entity; (7) the provisions, if any. of a sinking fund applicable to such series: and (8) any other relative, participating, optional or other powers, preferences or rights, and any qualifications, limitations or restrictions thereof. of such series.

**NOTE: Our Units in this Offering constitute shares and warrants. We intend to apply to FINRA for trading approval of the Units, and the warrants separately. We also shall allow the Units to be separated into the components of shares and warrants, and if separated will no longer be a "Unit."**

**Warrants**

We currently have authorized a class of warrants, Class A, to be issued as part of this Offering. The basic provisions of the Class A warrants are as follows:

**Class A Warrants Included in Units Issuable in this Offering**

The Warrants to be issued as part of this Offering will be designated as our "Class A" Warrants. These Warrants will be separately transferable following their issuance and through their expiration two (2) years from the date of issuance. Each Warrant will entitle the holder to purchase one share of our common stock at an exercise price of $0.06 per Warrant through its expiration. There is no public trading market for the Warrants and there can be no assurances that one will develop. The common stock underlying the Warrants, upon issuance, will also be traded on the Over the Counter (OTC) Market under the symbol 'SNNC.'

All Warrants that are purchased in the Offering as part of the Units will be issued in book-entry, or uncertificated, form meaning that you will receive a DRS account statement from our transfer agent reflecting ownership of Warrants if you are a holder of record. The Subscription Agent will arrange for the issuance of the Warrants as soon as practicable after the closing, which will occur as soon as practicable after the Offering has expired but which may occur up to five business days thereafter. At closing, all prorating calculations and reductions contemplated by the terms of the Offering will have been effected and payment to us for the subscribed-for Units will have cleared. If you hold your shares of common stock in the name of a bank, broker, dealer, or other nominee, DTC will credit your account with your nominee with the Warrants you purchased in the Offering.

*Exercisability*

Each Warrant will be exercisable at any time and will expire two years from the date of issuance. The Warrants will be exercisable, at the option of each holder, in whole or in part by delivering to us a duly executed exercise notice and payment in full for the number of shares of our common stock purchased upon such exercise, except in the case of a cashless exercise as discussed below. The number of shares of common stock issuable upon exercise of the Warrants is subject to adjustment in certain circumstances, including a stock split of, stock dividend on, or a subdivision, combination or recapitalization of the common stock. If we effect a merger, consolidation, sale of substantially all of our assets, or other similar transaction, then, upon any subsequent exercise of a Warrants, the Warrant holder will have the right to receive any shares of the acquiring corporation or other consideration it would have been entitled to receive if it had been a holder of the number of shares of common stock then issuable upon exercise in full of the Warrant.

*Exercise Price*

Each Warrant represents the right to purchase one share of common stock at an exercise price of $0.06 per Warrant. In addition, the exercise price per share is subject to adjustment for stock dividends, distributions, subdivisions, combinations, or reclassification.

*Transferability*

Subject to applicable laws, the Warrants may be offered for sale, sold, transferred, or assigned without our consent. There is currently no established trading market for the Warrants. There are no assurances that an active trading market will develop or be sustained for the Warrants.

*Rights as Stockholder*

Except as set forth in the Warrant, the holder of a Warrant, solely in such holder's capacity as a holder of a Warrant, will not be entitled to vote, to receive dividends, or to any of the other rights of our stockholders.

*Redemption Rights*

We may redeem the warrants for $0.01 per warrant if our common stock closes above $.50 per share for twenty (20) consecutive trading days.

*Amendments and Waivers*

The provisions of each Warrant may be modified or amended or the provisions thereof waived with the written consent of us and the holder.

The Warrants will be issued pursuant to a warrant agent agreement by and between us and TranShare Corporation, the intended warrant agent.

**DIVIDEND POLICY**

**______**

We have never declared or paid cash dividends on our capital stock. We currently intend to retain any future earnings for use in the operation of our business and do not intend to declare or pay any cash dividends in the foreseeable future. Any further determination to pay dividends on our capital stock will be at the discretion of our Board of Directors, subject to applicable laws, and will depend on our financial condition, results of operations, capital requirements, general business conditions, and other factors that our Board of Directors considers relevant.

**SECURITIES OFFERED**

______

**Current Offering**

Sibannac, Inc. ("SNNC," "We," or the "Company") is offering up to $4,050,000 total of Units, each Unit consisting of five shares of Common Stock, $0.001 par value and one warrant, par value $0.001 (the "Units" or collectively the "Securities").

**Transfer Agent**

Our transfer agent is TranShare Corporation, whose address is 17755 North US Highway 19, Suite 140, Clearwater, FL 33764, telephone number is (303) 662-1112, and the website is www.transhare.com.

The transfer agent is registered under the Exchange Act and operates under the regulatory authority of the SEC and FINRA.

**SHARES ELIGIBLE FOR FUTURE SALE**

**_____**

Prior to this Offering, there has been a limited market for our Common Stock. Future sales of substantial amounts of our Common Stock, or securities or instruments convertible into our Common Stock, in the public market, or the perception that such sales may occur, could adversely affect the market price of our Common Stock prevailing from time to time. Furthermore, because there will be limits on the number of shares available for resale shortly after this Offering due to contractual and legal restrictions described below, there may be resales of substantial amounts of our Common Stock in the public market after those restrictions lapse. This could adversely affect the market price of our Common Stock prevailing at that time.

**Rule 144**

In general, a person who has beneficially owned restricted shares of our Common Stock for at least twelve months, in the event we are a reporting company under Regulation A, or at least six months, in the event we have been a reporting company under the Exchange Act for at least 90 days before the sale, would be entitled to sell such securities, provided that such person is not deemed to be an affiliate of ours at the time of sale or to have been an affiliate of ours at any time during the 90 days preceding the sale. A person who is an affiliate of ours at such time would be subject to additional restrictions, by which such person would be entitled to sell within any three-month period only a number of shares that does not exceed the greater of the following:

· 1% of the number of shares of our Common Stock then outstanding; or the average weekly trading volume of our Common Stock during the four calendar weeks preceding the filing by such person of a notice on Form 144 with respect to the sale;

provided that, in each case, we are subject to the periodic reporting requirements of the Exchange Act for at least 90 days before the sale. Rule 144 trades must also comply with the manner of sale, notice and other provisions of Rule 144, to the extent applicable.

**LEGAL MATTERS**

_____

Certain legal matters with respect to the shares of common stock offered hereby will be passed upon by Carl Ranno, Esq. of Phoenix, AZ.

**EXPERTS**

**______**

The financial statements of the Company appearing elsewhere in this Offering Circular have been prepared by management and have not been reviewed by an independent accountant.

**WHERE YOU CAN FIND MORE INFORMATION**

**______**

We have filed with the SEC a Regulation A Offering Statement on Form 1-A under the Securities Act with respect to the shares of common stock offered hereby. This Offering Circular, which constitutes a part of the Offering Statement, does not contain all of the information set forth in the Offering Statement or the exhibits and schedules filed therewith. For further information about us and the common stock offered hereby, we refer you to the Offering Statement and the exhibits and schedules filed therewith. Statements contained in this Offering Circular regarding the contents of any contract or other document that is filed as an exhibit to the Offering Statement are not necessarily complete, and each such statement is qualified in all respects by reference to the full text of such contract or other document filed as an exhibit to the Offering Statement. Upon the completion of this Offering, we will be required to file periodic reports, proxy statements, and other information with the SEC pursuant to the Securities Exchange Act of 1934. You may read and copy this information at the SEC's Public Reference Room, 100 F Street, N.E., Room 1580, Washington, D.C. 20549. You may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. The SEC also maintains an Internet website that contains reports, proxy statements and other information about issuers, including us, that file electronically with the SEC. The address of this site is <u>www.sec.gov</u>.

**Sibannac, Inc.**

**TABLE OF CONTENTS**

**(UNAUDITED)** 

**For the Period Ended November 30, 2021**

---

| | |
|:---|:---|
| [Condensed Balance Sheets As Of November 30, 2022](#fs_001) | F-2 |
| [Condensed Statements Of Operations For The Three Months Ended November 30, 2022 and 2021](#fs_002) | F-3 |
| [Condensed Statements Of Stockholders' Equity (Deficit) For The Period Ended November 30, 2022](#fs_003) | F-5 |
| [Condensed Statements Of Cash Flows For The Three Months Ended November, 2022 and 2021](#fs_004) | F-4 |
| [Notes To The Condensed Financial Statements](#fs_005) | F-6 |

---

**For the Year Ended August 31, 2021**

---

| | |
|:---|:---|
| [Condensed Balance Sheets As Of August 31, 2022](#fs_006) | F-15 |
| [Condensed Statements Of Operations For The Years Ended August 31, 2022 and 2021](#fs_007) | F-16 |
| [Condensed Statements Of Stockholders' Equity (Deficit) For The Years Ended August 31, 2022 and 2021](#fs_008) | F-17 |
| [Condensed Statements Of Cash Flows For The Years Ended August 31, 2022 and 2021](#fs_009) | F-18 |
| [Notes To The Condensed Financial Statements](#fs_010) | F-19 |

---

**Sibannac, Inc.**

**Balance Sheet**

**November 30, 2022**

**(Unaudited)**

---

| | |
|:---|:---|
| ASSETS |  |
| CURRENT ASSETS: |  |
| &nbsp;&nbsp;&nbsp;Cash | $9880 |
| &nbsp;&nbsp;&nbsp;Accounts receivable | 9023 |
| &nbsp;&nbsp;&nbsp;Inventory | 36866 |
| Total current assets | 55769 |
| OTHER ASSETS: |  |
| &nbsp;&nbsp;&nbsp;Equipment | 7615 |
| &nbsp;&nbsp;&nbsp;Investments | 767451 |
| &nbsp;&nbsp;&nbsp;Website costs | 330210 |
| Total assets | $1161045 |
| LIABILITIES |  |
| CURRENT |  |
| &nbsp;&nbsp;&nbsp;Accounts payable | $10000 |
| &nbsp;&nbsp;&nbsp;Accrued compensation to officer and director | 121994 |
| &nbsp;&nbsp;&nbsp;Unissued stock liability | 126352 |
| Total current liabilities | 258346 |
| LONG TERM |  |
| &nbsp;&nbsp;&nbsp;Debentures and notes payables | 155500 |
| &nbsp;&nbsp;&nbsp;Convertible notes payable | 46000 |
| &nbsp;&nbsp;&nbsp;Notes payable | 320500 |
| &nbsp;&nbsp;&nbsp;Accrued interest | 51381 |
| Total Liabilities | 831727 |
| STOCKHOLDERS' DEFICIT |  |
| &nbsp;&nbsp;&nbsp;Preferred stock | 5481 |
| &nbsp;&nbsp;&nbsp;Common stock | 80143 |
| &nbsp;&nbsp;&nbsp;Stock Warrants | 74046 |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital | 4497265 |
| &nbsp;&nbsp;&nbsp;Accumulated (deficit) | (4327617) |
| Total stockholders' deficit | 329318 |
| Total liabilities and stockholders' deficit | $1161045 |

---

See accompanying notes to these unaudited consolidated financial statements

**Sibannac, Inc.**

**Income Statements**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
|  | For the three months ended | For the three months ended |
|  | November 30 | November 30 |
|  | 2022 | 2021 |
| &nbsp;&nbsp;&nbsp;Total sales revenue | $0 | $1692 |
| &nbsp;&nbsp;&nbsp;Total cost of sales | 0 | 0 |
| GROSS PROFIT | 0 | 1692 |
| OPERATING EXPENSES |  |  |
| &nbsp;&nbsp;&nbsp;General and administrative | 15574 | 9476 |
| &nbsp;&nbsp;&nbsp;Sales and marketing | 1271 | 0 |
| &nbsp;&nbsp;&nbsp;Professional fees | 19793 | 7142 |
| &nbsp;&nbsp;&nbsp;Officer and director compensation | 36700 | 47750 |
| &nbsp;&nbsp;&nbsp;Rent & utilities | 24466 | 24901 |
| &nbsp;&nbsp;&nbsp;Website development expenses | 1200 | 661 |
| &nbsp;&nbsp;&nbsp;Total operating expenses | 99004 | 89930 |
| TOTAL OPERATING INCOME (LOSS) | (99004) | (88238) |
| OTHER INCOME AND (EXPENSE) |  |  |
| &nbsp;&nbsp;&nbsp;Interest income | 1870 | 0 |
| &nbsp;&nbsp;&nbsp;Interest expense | (5383) | (16024) |
| &nbsp;&nbsp;&nbsp;Gain on acquisition | 134187 | 0 |
| &nbsp;&nbsp;&nbsp;Gain on extinguishment of debt | 0 | 2961 |
| &nbsp;&nbsp;&nbsp;Net (loss) | $31670 | $(101301) |
| &nbsp;&nbsp;&nbsp;(Loss) Income per share | $0.001 | $(0.004) |
| &nbsp;&nbsp;&nbsp;Basic | $0.001 | $(0.004) |
| &nbsp;&nbsp;&nbsp;Diluted |  |  |
| &nbsp;&nbsp;&nbsp;\* Unissued common shares are anti-dilutive |  |  |
| &nbsp;&nbsp;&nbsp;Weighted Average Shares Outstanding | 61401773 | 26753705 |

---

See accompanying notes to these unaudited consolidated financial statements.

**Sibannac, Inc.**

**Statement of Changes in Stockholders' Equity**

**(Unaudited)**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Preferred<br> Shares | Amount | Common<br> Shares | Amount | Paid-In<br> Capital | Stock Warrants | Unrealized Gain (Loss) | Accumulated<br> (Deficit) | Accumulated<br> (Deficit) | Total |
| Balance at August 31, 2020 | 5019000 | 5019 | 16127194 | 16127 | 1855920 | 0 | 71400 |  | (3200395) | (1251929) |
| Unexercised put option |  |  |  |  |  |  | (71400) |  |  | (71400) |
| Preferred B issuance for cash | 1500 | 2 |  |  | 7498 |  |  |  |  | 7500 |
| Common stock issued for services |  |  | 7766518 | 7766 | 439234 |  |  |  |  | 447000 |
| Common stock issued for debt |  |  | 2325000 | 2325 | 216763 |  |  |  |  | 219088 |
| Net (loss) for the year ended August 31, 2021 |  |  |  |  |  |  |  |  | (565935) | (565935) |
| Balance at August 31, 2021 | 5020500 | 5021 | 26218712 | 26218 | 2519415 | 0 | 0 |  | (3766330) | (1215676) |
| Preferred B issuance for debt | 80000 | 80 |  |  | 399920 |  |  |  |  | 400000 |
| Preferred D issuance for debt | 485681 | 485 |  |  | 485196 |  |  |  |  | 485681 |
| Common stock for services |  |  | 100000 | 100 | 2900 |  |  |  |  | 3000 |
| Forgiveness of government loan |  |  |  |  | 3000 |  |  |  |  | 3000 |
| Common stock issued for debt |  |  | 37723001 | 37723 | 882377 |  |  |  |  | 920100 |
| Units issued under Regulation A |  |  | 7650000 | 7650 | 155092 | 66758 |  |  |  | 229500 |
| Preferred B converted for common | (1000) | (1) | 57693 | 58 | (56) |  |  |  |  | 1 |
| Preferred D converted for common | (103778) | (104) | 6226740 | 6227 | (6124) |  |  |  |  | (1) |
| Net (loss) for year ended August 31, 2022 |  |  |  |  |  |  |  |  | (592957) | (592957) |
| Balance at August 31, 2022 | 5481403 | $5481 | 77976146 | $77976 | $4441720 | $66758 | $0 | ($| 4359287) | $232648 |
| Shares issued in Reg A offering | 0 | 0 | 2166675 | 2167 | 55545 | 7288 | 0 |  | 0 | 65000 |
| Net income for period ended Nov. 30, 2022 |  |  |  |  |  |  |  |  | 31670 | 31670 |
| Balance at November 30, 2022 | 5481403 | $5481 | 80142821 | $80143 | $4497265 | $74046 | $0 | ($| 4327617) | $329318 |

---

See accompanying notes to these unaudited consolidated financial statements.

**Sibannac, Inc.**

**Statement of Cash Flows**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
|  | For the three months ended | For the three months ended |
|  | November 30, | November 30, |
|  | 2022 | 2021 |
| OPERATING ACTIVITIES |  |  |
| &nbsp;&nbsp;&nbsp;Net (loss) for the period | $31670 | $(101301) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments to reconcile net loss to net cash (used in) provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Incr)/decr - accounts receivable | (5001) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Incr)/decr - Inventory | (620) | (3102) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Incr)/decr - note receivable | 5000 | 14764 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Incr/(decr) in accounts payable | (1955) | 12500 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Incr/(decr) in accrued compensation | 23463 | 43750 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Incr/(decr) in unissued common stock | (45000) | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Incr/(decr) in accrued interest | 7253 | 13064 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Incr/(decr) in due to related party | (11762) | (13253) |
| &nbsp;&nbsp;&nbsp;Net cash (used in) provided by operating activities | 3048 | (33578) |
| INVESTING ACTIVITIES |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisition of Vestra | (132251) | 0 |
| &nbsp;&nbsp;&nbsp;Net cash (used in) provided by investing activities | (132251) | 0 |
| FINANCING ACTIVITIES |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash from Reg A offering | 65000 | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash from notes payable | 60000 | 0 |
| &nbsp;&nbsp;&nbsp;Net cash (used in) provided by financing activities | 125000 | 0 |
| INCREASE (DECREASE) IN CASH | (4203) | (33578) |
| &nbsp;&nbsp;&nbsp;CASH, BEGINNING OF PERIOD | 14083 | 40910 |
| &nbsp;&nbsp;&nbsp;CASH, END OF PERIOD | $9880 | $7332 |
| NON-CASH TRANSACTIONS IN COMMON SHARES |  |  |
| 80,000 Preferred B shares issued for website | $0 | $400000 |
| 4,656,334 Common shares issued for debt | $0 | $198337 |

---

See accompanying notes to these unaudited consolidated financial statements.

**Sibannac, Inc.**

**Notes to Unaudited Financial Statements**

**For the years ended November 30, 2022, and November 30, 2021**

**BASIS OF PRESENTATION AND NATURE OF BUSINESS**

**Nature of Business**

Sibannac, Inc. ("Sibannac" or "Company" or "we") was incorporated in June 1999 in the State of Nevada as Naprodis, Inc. On August 25, 2014, the Company transferred all its assets to Naprodis, Inc., a Colorado corporation ("Colorado Naprodis"). On November 25, 2014, the Company changed its name to Sibannac, Inc.

On July 17, 2017, the Company acquired Imbutek Inc., including its Plan of Operation (the "Plan"), and its sole shareholder became the President of the Company. The Company is preparing and packaging health products for wholesalers and retailers under the Plan.

**Basis of Presentation** 

The Company prepared the accompanying unaudited financial statements. Management has made all adjustments necessary to present the financial position fairly, results of operations and cash flows for the stated periods. Except as described below, these adjustments consist only of regular and recurring adjustments. Management has omitted certain note disclosures that typically would be included in audited financial statements prepared under generally accepted accounting principles in the United States of America.

**Going Concern** 

The Company prepares its financial statements using generally accepted accounting principles in the United States of America applicable to a going concern that contemplates the realization of assets and liquidation of liabilities in the ordinary course of business. The Company has not yet established an ongoing source of revenues sufficient to cover its operating costs and allow it to continue as a going concern.

The ability of the Company to continue as a going concern is dependent on the Company obtaining adequate capital to fund operating losses until it becomes profitable. If the Company cannot obtain sufficient capital, it could be forced to cease operations. To continue as a going concern, the Company will need, among other things, additional capital resources. Management's plans to obtain such resources for the Company include (1) obtaining capital from Management and significant shareholders sufficient to meet its minimal operating expenses or (2) seeking out and completing a merger with an existing operating company. However, Management cannot provide any assurances that the Company will accomplish any of its plans.

The ability of the Company to continue as a going concern depends on its ability to accomplish the plans described in the preceding paragraph and eventually secure other sources of financing and attain profitable operations. The accompanying financial statements do not include any adjustments that might be necessary if the Company cannot continue as a going concern.

**CRITICAL ACCOUNTING POLICIES AND ESTIMATES** 

**Cash and Cash Equivalents** 

The Company considers all highly liquid instruments with an original maturity of three months or less to be cash equivalents. At certain times, cash in banks may exceed the amount covered by FDIC insurance.

**Fair Value of Financial Instruments** 

The Financial Accounting Standards Board issued ASC (Accounting Standards Codification) 820-10 (SFAS No. 157), "Fair Value Measurements and Disclosures" for financial assets and liabilities. ASC 820-10 provides a framework for measuring fair value and requires expanded disclosures regarding fair value measurements. FASB ASC 820-10 defines fair value as the price received for an asset or the exit price paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. FASB ASC 820-10 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs, where available. The following summarizes the three levels of inputs required by the standard that the Company uses to measure fair value:

&nbsp;&nbsp;&nbsp;&nbsp;· Level 1: Quoted prices in active markets for identical assets or liabilities.

&nbsp;&nbsp;&nbsp;&nbsp;· Level 2: Observable inputs (other than Level 1 prices (quoted prices for similar assets or liabilities; quoted prices in markets)
that are not active or other observable inputs or can be corroborated by observable market data for substantially the entire term of the
related assets or liabilities).

&nbsp;&nbsp;&nbsp;&nbsp;· Level 3: Unobservable inputs (those supported by little or no market activity and significant to the fair value of the assets or liabilities).

The Company determines the fair value and accounting treatment of options and warrants per the provisions of ASC 480.

As of November 30, 2022, all the Company's financial instruments are recorded at fair value.

**Accounts Receivable and concentration of credit risk** 

The Company extends unsecured credit to its customers in the ordinary course of business. Accounts receivable related to product sales are recorded when services are delivered, and payment is reasonably assured. Product sales are generally collected 30 to 60 days after receiving the invoice. Periodically, the Company evaluates its receivables and establishes allowances based on historical experience and other currently available information

**Inventories**

The Company extends unsecured credit to its customers in the ordinary course of business. Accounts receivable related to product sales are recorded when services are delivered, and payment is reasonably assured. Product sales are generally collected 30 to 60 days after receiving the invoice. Periodically, the Company evaluates its receivables and establishes allowances based on historical experience and other currently available information. There was no allowance as of November 30, 2022.

**Revenue Recognition**

The Company has adopted ASC Topic 606, "Revenue from Contracts with Customers" ("ASC 606",) and all the related amendments. The Company elected to adopt this guidance using the modified retrospective method. The adoption of this guidance did not have a material effect on the Company's financial position, results of operations, or cash flows.

The core principle of ASC 606 requires that an entity recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. ASC 606 defines a five-step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than required under U.S. GAAP (including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation).

None of the Company's revenue represents an obligation to perform services. Since the Company's revenue is generated via multiple small buyers and online, the Company does not have material contract assets or liabilities that fall under ASC 606.

The Company recognizes revenue as goods are sold considered complete upon successful delivery of the product to the customer. The Company has no further performance obligations, and collection is assured as the Company is paid 100% of the retail price of its products when they are sold.

The Company's revenues accounted for under ASC 606 do not require significant estimates or judgments based on the nature of the Company's revenue stream. The sales price is generally fixed at the point of sale and all consideration from the sale is included in the transaction price. The Company's sales do not include multiple performance obligations or variable consideration.

**Income taxes**

The Company accounts for income taxes in accordance with ASC 740-10, Income Taxes. The Company recognizes deferred tax assets and liabilities to reflect the estimated future tax effects, calculated at currently effective tax rates, of future deductible or taxable amounts attributable to events that have been recognized on a cumulative basis in the consolidated financial statements. A valuation allowance related to a deferred tax asset is recorded when it is more likely than not that some portion of the deferred tax asset will not be realized. Deferred tax assets and liabilities are adjusted for the effects of the changes in tax laws and rates of the date of enactment.

ASC 740-10 prescribes a recognition threshold that a tax position is required to meet before being recognized in the financial statements and provides guidance on recognition, measurement, classification, interest and penalties, accounting in interim periods, disclosure and transition issues. The Company classifies interest and penalties as a component of interest and other expenses. To date, there have been no interest or penalties assessed or paid.

The Company measures and record uncertain tax positions by establishing a threshold for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Only tax positions meeting the more-likely-than-not recognition threshold at the effective date may be recognized or continue to be recognized.

The Company had no income tax provision for the periods ended November 30, 2022, and November 30, 2021, due to recurring net losses.

**Loss per share** 

ASC 260-10 "Earnings Per Share" requires the Company to calculate its net income (loss) per share based on basic and diluted net income (loss) per share, as defined. Basic EPS excludes dilution and is computed by dividing net income (loss) by the weighted average number of shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. The dilutive effect of outstanding options and warrants issued by the Company are reflected in diluted EPS using the treasury stock method. Under the treasury stock method, options and warrants will generally have a dilutive effect when the average market price of common stock during the period exceeds their exercise price. The dilutive effect of outstanding convertible debt issued by the Company is reflected in diluted EPS using the if-converted method. For periods of net loss, basic and diluted EPS are the same as the assumed exercise of stock options and warrants and the conversion of convertible debt are anti-dilutive. Unissued common shares and convertible instruments are not included in the calculation of EPS because they would be anti-dilutive because of the loss per share.

**Stock Warrants** 

On February 7, 2022, the Company registered a public offering with the Securities and Exchange Commission under Regulation A. The offering is for 27,000,000 Units priced at $.15 per Unit. Each Unit consists of five (5) shares of common stock and an accompanying warrant (the "Class A Warrant(s)") to purchase one (1) share of the Company's common stock at $.06 per share. Each Class A Warrant expires two (2) years after issuance and is immediately exercisable.

The Company evaluated the Class A Warrants for liability or equity classification in accordance with the provisions of ASC 480, *Distinguishing Liabilities from Equity*, and determined that equity treatment was appropriate because the Class A Warrants do not meet the definition of liability instruments.

The Class A Warrants are classified as a component of permanent equity because they are freestanding financial instruments that are legally detachable and separately exercisable from the shares of common stock with which they were issued, are immediately exercisable, do not embody an obligation for the Company to repurchase its shares, and permit the holders to receive a fixed number of shares of common stock upon exercise. In addition, the Class A Warrants do not provide any guarantee of value or return.

**Recent Accounting Pronouncements** 

The Company does not expect the adoption of recently issued accounting pronouncements to have a significant impact on our results of operations, financial position, or cash flow.

**WEBSITE COSTS**

During the year ended August 31, 2021, the Company incurred $830,210 in development costs for the purpose of completing the brand builds for rad8LifeÔ, CherryologyÔ and The Campus Co. platform ("Campus").

<u>Campus</u> is the entry point for all new relationships with Sibannac. This included all basic contract manufacturing, logistics, and fulfillment, as well as brand building, product design and website creation and social media services.

CherryologyÔ was created because of the Company's experience in creating brands to fit identified demographics and designed to appeal to consumers. These costs have been capitalized and will be amortized when the development of the entire project is completed.

On June 17, 2021, in a related party transaction, the Company sold the rad8LifeÔ brand and rad8life.com site to Noho, Inc., for Series B Preferred shares valued at $500,000, which reduced Website Costs held on the Company's books to $330,210. However, on November 8, 2022, the Company reacquired the rad8LifeÔ brand and rad8life.com from Noho, Inc., together with Noho, Inc. hangover beverage.

**INVESTMENTS**

During the year ended August 31, 2021, the Company established Vestra, LLC. Vestra is a special purpose LLC established to hold the rad8LifeÔ brand and operate the site rad8life.com for the sale of Delta 8 THC products and may be expanded to cover other products. On June 17, 2021, in a related party transaction, the Company sold Vestra to Noho, Inc., for 2,000,000 shares of Noho, Inc. Series B Preferred shares valued at $500,000. On June 9, 2022, the Company converted all 2,000,000 shares of Noho, Inc. Series B Preferred held by it into 280,000,000 shares of Noho, Inc. Common Stock. The Company is holding the shares as an investment.

On November 8, 2022, the Company reacquired the rad8LifeÔ brand and rad8life.com from Noho, Inc., together with Noho, Inc. hangover beverage assets in exchange for the assumption of $300,000 in debt and the cancellation of certain liabilities owed by Noho to the Company for a net value of $267,451.15.

**NOTE RECEIVABLE AND PUT PAYABLE** 

As part of the acquisition of Apollo Media Network, Inc. ("Apollo") on August 31, 2015, the Company received a $250,000 promissory note from the principal of Apollo (the "Maker") due and payable to the Company on August 31, 2023 (the "Note"). The Note is secured by a pledge of 1,400,000 shares of the Company's common stock that were owed to the Maker as part of the acquisition. The Note accrues interest at an annual rate of 1.59% and may be repaid, at the Maker's discretion, in cash or through the exercise of a concurrently issued Put Option.

The Put Option allowed the Maker to put the 1,400,000 common shares liability to the Company which would fully satisfy the Note, plus any accrued interest at the time of exercise irrespective of the market price of the common shares at the time of the exercised option. The Note and Put Option are linked to one another and, with the exception of any unrealized gain (loss), will offset each other should the holder elect to exercise the put option. Upon exercise, no cash will exchange hands, but the assets, interest and offsetting equity reserves will be adjusted on the Company's books at that time.

At any time prior to the due date of the Note, the Maker could satisfy the note and accrued interest in cash in exchange for the delivery of 1,400,000 common shares. The offsetting equity reserves would be adjusted on the Company's books at that time, if the Maker elects to pay the Note in cash.<br>The Company had discounted the net realizable value of the note receivable and accrued interest receivable on August 31, 2021, to the market value of the 1,400,000 pledged shares.

In May of 2021, the Company received notice that the holder had elected to exercise his option to put the shares and, as a result, the Company wrote off the Note, cancelling the holder's claim on the 1,400,000 shares; however, the Company was obligated to issue 1,400,000 shares to satisfy the Apollo Acquisition Debenture which had been accrued as an Unissued Capital Stock liability. 1,400,000 were issued on February 9, 2022.

---

| | | |
|:---|:---|:---|
| | **As of** | **As of** |
| <br>**Description** | **11/30/22** | **11/30/21** |
| Note receivable | $0 | $0 |
| Accrued interest receivable | 0 | 0 |
| less discount | 0 | 0 |
| Market value of pledged shares | $0 | $0 |

---

**UNISSUED CAPITAL STOCK**

As of November 30, 2022, the Company has an Unissued Capital Stock liability of $126,352, as per the table below:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Unissued Common Shares** | **Unissued Common Shares** | **Unissued Common Shares** | **Unissued Common Shares** | **Unissued Preferred B Shares** | **Unissued Preferred B Shares** | **Unissued Preferred B Shares** | **Unissued Preferred B Shares** |
| **Date** | **Paid** | **Price ($)** | **Shares** | **Date** | **Paid** | **Price ($)** | **Shares** |
| 06/29/17 | $28000 | 0.048 | 580000 | 01/20/21 | $5000 | 5.00 | 1000 |
| 06/29/17 | 5202 | 0.019 | 270000 | 02/05/21 | 9000 | 5.00 | 1800 |
| 04/04/19 | 10000 | 0.050 | 200000 | 02/22/21 | 6000 | 5.00 | 1200 |
| 07/22/20 | 60000 | 0.060 | 1000000 | 02/25/21 | 3150 | 5.00 | 630 |
|  | $103202 |  | 2050000 |  | $23150 |  | 4630 |

---

**DEBENTURES AND NOTES PAYABLE**

**15% Convertible Debentures**

The Company following 15% Convertible Debentures were outstanding during the last two completed fiscal years and the first nine months of the current fiscal year:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Debenture** | **Debenture** | **Issue Date** | **Maturity Date** | **Principal ($)** | **Balance ($)** | **Interest rate** | **Conversion Terms** |
| 1 | 1 | 12/04/17 | 12/04/20 | $200000 | $- | 15% | See Note 1 |
| 2 | 2 | 07/30/18 | 07/30/21 | 50000 |  | 15% | See Note 1 |
| 3 | 3 | 02/27/19 | 02/27/20 | 50000 | 50000 | 15% | $0.05 per share |
| 4 | 4 | 06/21/19 | 06/21/20 | 15000 |  | 15% | Not Convertible |
| 5 | 5 | 07/16/19 | 07/16/20 | 17500 |  | 15% | Not Convertible |
| 6 | 6 | 08/29/19 | 08/29/20 | 30000 |  | 15% | Not Convertible |
| 7 | 7 | 10/31/19 | 05/01/20 | 95000 |  | 15% | See Note 1 |
| 8 | 8 | 01/27/20 | 07/27/20 | 40000 |  | 15% | See Note 1 |
| 9 | 9 | 06/30/21 | 06/30/22 | 100000 | 100000 | 15% | See Note 2 |
| 10 | 10 | 05/13/22 | 05/13/23 | 5500 | 5500 | 15% | See Note 3 |
|  |  |  |  | $603000 | $155500 |  |  |
| Note 1: | The "Variable Conversion Price" shall mean 70% multiplied by the Market Price (as defined herein) (representing a discount rate of 30%)."Market Price" means the average of the lowest three (3) Trading Prices (as defined below) for the Common Stock during the twenty (20) Trading Day period ending on the last complete Trading Day prior to the Conversion Date. | The "Variable Conversion Price" shall mean 70% multiplied by the Market Price (as defined herein) (representing a discount rate of 30%)."Market Price" means the average of the lowest three (3) Trading Prices (as defined below) for the Common Stock during the twenty (20) Trading Day period ending on the last complete Trading Day prior to the Conversion Date. | The "Variable Conversion Price" shall mean 70% multiplied by the Market Price (as defined herein) (representing a discount rate of 30%)."Market Price" means the average of the lowest three (3) Trading Prices (as defined below) for the Common Stock during the twenty (20) Trading Day period ending on the last complete Trading Day prior to the Conversion Date. | The "Variable Conversion Price" shall mean 70% multiplied by the Market Price (as defined herein) (representing a discount rate of 30%)."Market Price" means the average of the lowest three (3) Trading Prices (as defined below) for the Common Stock during the twenty (20) Trading Day period ending on the last complete Trading Day prior to the Conversion Date. | The "Variable Conversion Price" shall mean 70% multiplied by the Market Price (as defined herein) (representing a discount rate of 30%)."Market Price" means the average of the lowest three (3) Trading Prices (as defined below) for the Common Stock during the twenty (20) Trading Day period ending on the last complete Trading Day prior to the Conversion Date. | The "Variable Conversion Price" shall mean 70% multiplied by the Market Price (as defined herein) (representing a discount rate of 30%)."Market Price" means the average of the lowest three (3) Trading Prices (as defined below) for the Common Stock during the twenty (20) Trading Day period ending on the last complete Trading Day prior to the Conversion Date. | The "Variable Conversion Price" shall mean 70% multiplied by the Market Price (as defined herein) (representing a discount rate of 30%)."Market Price" means the average of the lowest three (3) Trading Prices (as defined below) for the Common Stock during the twenty (20) Trading Day period ending on the last complete Trading Day prior to the Conversion Date. |
| Note 2 | The "Variable Conversion Price" shall mean 55% multiplied by the Market Price (as defined herein) (representing a discount rate of 30%)."Market Price" means the average of the lowest three (3) Trading Prices (as defined below) for the Common Stock during the twenty (20) Trading Day period ending on the last complete Trading Day prior to the Conversion Date. | The "Variable Conversion Price" shall mean 55% multiplied by the Market Price (as defined herein) (representing a discount rate of 30%)."Market Price" means the average of the lowest three (3) Trading Prices (as defined below) for the Common Stock during the twenty (20) Trading Day period ending on the last complete Trading Day prior to the Conversion Date. | The "Variable Conversion Price" shall mean 55% multiplied by the Market Price (as defined herein) (representing a discount rate of 30%)."Market Price" means the average of the lowest three (3) Trading Prices (as defined below) for the Common Stock during the twenty (20) Trading Day period ending on the last complete Trading Day prior to the Conversion Date. | The "Variable Conversion Price" shall mean 55% multiplied by the Market Price (as defined herein) (representing a discount rate of 30%)."Market Price" means the average of the lowest three (3) Trading Prices (as defined below) for the Common Stock during the twenty (20) Trading Day period ending on the last complete Trading Day prior to the Conversion Date. | The "Variable Conversion Price" shall mean 55% multiplied by the Market Price (as defined herein) (representing a discount rate of 30%)."Market Price" means the average of the lowest three (3) Trading Prices (as defined below) for the Common Stock during the twenty (20) Trading Day period ending on the last complete Trading Day prior to the Conversion Date. | The "Variable Conversion Price" shall mean 55% multiplied by the Market Price (as defined herein) (representing a discount rate of 30%)."Market Price" means the average of the lowest three (3) Trading Prices (as defined below) for the Common Stock during the twenty (20) Trading Day period ending on the last complete Trading Day prior to the Conversion Date. | The "Variable Conversion Price" shall mean 55% multiplied by the Market Price (as defined herein) (representing a discount rate of 30%)."Market Price" means the average of the lowest three (3) Trading Prices (as defined below) for the Common Stock during the twenty (20) Trading Day period ending on the last complete Trading Day prior to the Conversion Date. |
| Note 3 | The "Variable Conversion Price" shall mean 80% multiplied by the Market Price (as defined herein) (representing a discount rate of 30%)."Market Price" means the average of the lowest three (3) Trading Prices (as defined below) for the Common Stock during the twenty (20) Trading Day period ending on the last complete Trading Day prior to the Conversion Date. | The "Variable Conversion Price" shall mean 80% multiplied by the Market Price (as defined herein) (representing a discount rate of 30%)."Market Price" means the average of the lowest three (3) Trading Prices (as defined below) for the Common Stock during the twenty (20) Trading Day period ending on the last complete Trading Day prior to the Conversion Date. | The "Variable Conversion Price" shall mean 80% multiplied by the Market Price (as defined herein) (representing a discount rate of 30%)."Market Price" means the average of the lowest three (3) Trading Prices (as defined below) for the Common Stock during the twenty (20) Trading Day period ending on the last complete Trading Day prior to the Conversion Date. | The "Variable Conversion Price" shall mean 80% multiplied by the Market Price (as defined herein) (representing a discount rate of 30%)."Market Price" means the average of the lowest three (3) Trading Prices (as defined below) for the Common Stock during the twenty (20) Trading Day period ending on the last complete Trading Day prior to the Conversion Date. | The "Variable Conversion Price" shall mean 80% multiplied by the Market Price (as defined herein) (representing a discount rate of 30%)."Market Price" means the average of the lowest three (3) Trading Prices (as defined below) for the Common Stock during the twenty (20) Trading Day period ending on the last complete Trading Day prior to the Conversion Date. | The "Variable Conversion Price" shall mean 80% multiplied by the Market Price (as defined herein) (representing a discount rate of 30%)."Market Price" means the average of the lowest three (3) Trading Prices (as defined below) for the Common Stock during the twenty (20) Trading Day period ending on the last complete Trading Day prior to the Conversion Date. | The "Variable Conversion Price" shall mean 80% multiplied by the Market Price (as defined herein) (representing a discount rate of 30%)."Market Price" means the average of the lowest three (3) Trading Prices (as defined below) for the Common Stock during the twenty (20) Trading Day period ending on the last complete Trading Day prior to the Conversion Date. |

---

The net carrying amount of the Debentures is as follows:

---

| | | |
|:---|:---|:---|
|  | **For the period ended** | **For the period ended** |
|  | **11/30/22** | **11/30/21** |
| Outstanding Debentures 3, 9 & 10 | $155500 | $319033 |
| Apollo Debenture | 0 | 0 |
| Total Principal | $155500 | $319033 |

---

---

| | | |
|:---|:---|:---|
|  | **For the period ended** | **For the period ended** |
|  | **11/30/22** | **11/30/21** |
| Outstanding Debentures 3, 9 & 10 accrued interest @ 15% | $49943 | $79904 |
| Amortization of debt discounts and issuance costs | – | – |
| Total Accrued interest | $49943 | $79904 |

---

**Convertible Notes Payable** 

---

| | | |
|:---|:---|:---|
|  | **For the period ended** | **For the period ended** |
|  | **11/30/22** | **11/30/21** |
| Convertible Note 1 | 22500 | 22500 |
| Convertible Note 2 | 23500 | 23500 |
| Total | $46000 | $46000 |

---

Note 1 is convertible to 560,000 shares and Note 2 is convertible to 585,000 shares.

**Notes Payable** 

The Company owes four demand notes to shareholders for cash, as listed in the table below.

None of these loans pay or accrue interest.

---

| | | |
|:---|:---|:---|
|  | **For the period ended** | **For the period ended** |
|  | **11/30/22** | **11/30/21** |
| Non-Related Short Term Note 1 | 10500 | 10500 |
| Non-Related Short Term Note 2 | 100000 | N/A |
| Non-Related Short Term Note 3 | 150000 | N/A |
| Non-Related Short Term Note 4 | 15000 | N/A |
| Non-Related Short Term Note 5 | 15000 | N/A |
| Non-Related Short Term Note 6 | 15000 | N/A |
| Non-Related Short Term Note 7 | 15000 | N/A |
| Total | $320500 | $10500 |

---

**DUE TO RELATED PARTIES**

The Company has issued short term demand notes to the CEO and members of his immediate family in exchange for cash loans which are classified as Related Party Notes in the table below.

None of these loans pay or accrue interest.

---

| | | |
|:---|:---|:---|
|  | **For the period ended** | **For the period ended** |
|  | **11/30/22** | **11/30/21** |
| Related Party Notes | $0 | $56692 |
| Total | $0 | $56692 |

---

**COMMON AND PREFERRED STOCK**

The following table represents the number of shares of each class outstanding as if the date listed.

---

| | |
|:---|:---|
| **Share Class** | **11/30/22** |
| Common Stock | 80142821 |
| Series A Convertible Preferred Stock | 5000000 |
| Series B Convertible Preferred Stock | 99500 |
| Series D Convertible Preferred Stock | 381,902 |

---

**Common Stock**

During the quarter ended August 31, 2021, the Company issued 7,776,518 common shares valued at $447,000 for the purpose of completing the brand builds for both CherryologyÔ and The Campus Co. platform.

During the quarter ended August 31, 2021, the Company issued 2.325,000 common shares in conversion of $219,087.50 in principal and accrued interest owed under Debenture 1, as listed above in Note 7.

As of August 31, 2021, there were 26,218,712 shares of Common Stock issued and outstanding.

1,223,000 common shares were issued on October 25, 2021, in settlement of $88,320 in principal and $4,017 in accrued interest owed under Debenture 1.

100,000 common shares were issued on November 30, 2021, for $6,000 in cash received on June 3, 2020.

3,333,334 common shares were issued on November 30, 2021, for $100,000 in cash received in August of 2017.

On February 9, 2022, in a Regulation A public offering, the Company issued and sold an aggregate of 600,000 Units consisting of five (5) shares of its common stock and one (1) accompanying Class A to purchase one (1) share of the Company's common stock at a combined price of $0.15 per Unit. This resulted in the issuance of 3,000,000 shares of Common Stock and 600,000 Class A Warrants.

1,400,000 common shares were issued on February 09, 2022, to satisfy the Apollo Acquisition Debenture which were valued at $246,764.

On March 7, 2022, the Company issued 57,693 shares of Common Stock in conversion of 1,000 shares of Series B Convertible Preferred Stock.

On April 1, 2022, the Company issued 31,666,667 shares of Common Stock to its CEO, David Mersky in exchange for the cancellation of $475,000 in accrued compensation.

On April 5, 2022, in a Regulation A public offering, the Company issued and sold an aggregate of 300,000 Units consisting of five (5) shares of its common stock and one (1) accompanying Class A Warrant to purchase one (1) share of the Company's common stock at a combined price of $0.15 per Unit. This resulted in the issuance of 1,500,000 shares of Common Stock and 300,000 Class A Warrants.

On May 9, 2022, in a Regulation A public offering, the Company issued and sold an aggregate of 165,000 Units consisting of five (5) shares of its common stock and one (1) accompanying Class A Warrant to purchase one (1) share of the Company's common stock at a combined price of $0.15 per Unit. This resulted in the issuance of 825,000 shares of Common Stock and 165,000 Class A Warrants.

On June 20, 2022, a Series D Convertible Preferred Stockholder converted 103,779 shares of Series D Convertible Preferred Stock into 6,226,740 Common Stock shares.

On June 29, 2022, in a Regulation A public offering, the Company issued and sold an aggregate of 260,000 Units consisting of five (5) shares of its common stock and one (1) accompanying Class A Warrant to purchase one (1) share of the Company's common stock at a combined price of $0.15 per Unit. This resulted in the issuance of 1,300,000 shares of Common Stock and 260,000 Class A Warrants.

On July 26, 2022, in a Regulation A public offering, the Company issued and sold an aggregate of 135,000 Units consisting of five (5) shares of its common stock and one (1) accompanying Class A Warrant to purchase one (1) share of the Company's common stock at a combined price of $0.15 per Unit. This resulted in the issuance of 675,000 shares of Common Stock and 135,000 Class A Warrants.

On August 11, 2022, in a Regulation A public offering, the Company issued and sold an aggregate of 70,000 Units consisting of five (5) shares of its common stock and one (1) accompanying Class A Warrant to purchase one (1) share of the Company's common stock at a combined price of $0.15 per Unit. This resulted in the issuance of 350,000 shares of Common Stock and 70,000 Class A Warrants.

On August 30, 2022, the company issued 100,000 Common Stock shares for Website design services.

On September 14, 2022, in a Regulation A public offering, the Company issued and sold an aggregate of 433,335 Units consisting of five (5) shares of its common stock and one (1) accompanying Class A Warrant to purchase one (1) share of the Company's common stock at a combined price of $0.15 per Unit. This resulted in the issuance of 2,166,675 shares of Common Stock and 433,335 Class A Warrants.

As of November 30, 2022, there were 300,000,000 Common Stock shares authorized, and 80,142,821 shares of Common Stock issued and outstanding.

**Preferred Stock**

***Series A Convertible Preferred Stock***

On May 1, 2020, the Company and its sole director and officer cancelled 5,000,000 shares of Series A Preferred Stock. On May 13, 2020, the Company filed a Certificate of Designation for Series A Convertible Preferred Stock. Series A Preferred Stockholders have the right to vote on all shareholder matters equal to fifty-one percent (51%) of the total vote on matters to which all shareholders of the Corporation are entitled to vote. Series A Preferred Stockholders do not have any conversion right.

As of November 30, 2022, there were 5,000,000 Preferred A shares authorized, and 5,000,000 Preferred A shares outstanding that were issued for $1,706,164.

***Series B Convertible Preferred Stock***

1,000 shares of Series B Convertible Preferred Stock shares were issued on July 8, 2020, in exchange for $5,000 in cash.

18,000 shares of Series B Convertible Preferred Stock were issued on July 22, 2020, in exchange for $90,000 in cash.

1,500 shares of Series B Convertible Preferred Stock were issued on May 6, 2021, for $7,500 in cash.

As of August 31, 2021, there were 20,500 Preferred B shares outstanding.

80,000 Preferred shares were issued were issued on November 30, 2021, for website services valued at $400,000.

On March 7, 2022, the Company cancelled 1,000 shares of Preferred B in exchange for the issuance of 57,693 shares of Common Stock.

As of November 30, 2022, there were 400,000 Preferred B shares authorized, and 99,500 Preferred B shares outstanding that were issued for cash and services totaling $502,000

***Series D Convertible Preferred Stock***

On June 3, 2022, the Company issued 235,594 shares of its Series D Convertible Preferred Stock in cancelation of Debentures 2, 7, and 8 in Note 7 above for a total of $169,032.54 in principal and $66,561.23 in accrued interest.

On June 3, 2022, the Company issued 250,088 shares of its Series D Convertible Preferred Stock in cancelation of outstanding payables of $205,116.97 in principal and $44,970.28 in accrued interest owed to a creditor.

On June 20, 2022, a Series D Convertible Preferred Stockholder converted 103,779 shares of Series D Convertible Preferred Stock into 6,226,740 Common Stock shares.

As of November 30, 2022, there were 1,200,000 Preferred D shares authorized, and 381,902 Preferred D shares outstanding.

**Options & Warrants**

***Class A Warrants***

Commencing in the quarter ended February 28, 2022, the Company was approved to sell in a Regulation A public offering, units consisting of five (5) shares of its common stock and an accompanying Class A Warrant to purchase one (1) share of the Company's common stock at a combined price of $0.15 per share.

The Company values its Class A Warrants at issuance using the Black-Scholes option pricing model. The key inputs to the valuation model include average volatility and an expected term of 2 years. The warrants are recorded in additional paid in capital at their initial fair value. They will not be remeasured in subsequent reporting periods.

On February 9, 2022, the Company issued 600,000 Class A Warrants that expire on February 10, 2024. The Company determined that the fair value of the Class A Warrants was $39,821.

On April 5, 2022, the Company issued 300,000 Class A Warrants that expire on April 6, 2024. The Company determined that the fair value of the Class A Warrants was $19,411.

On May 9, 2022, the Company issued 165,000 Class A Warrants expiring May 10, 2024. The Company determined that the fair value of the Class A Warrants was $10,951.

On June 29, 2022, the Company issued 260,000 Class A Warrants expiring June 30, 2024. The Company determined that the fair value of the Class A Warrants was $5,369.

On July 26, 2022, the Company issued 135,000 Class A Warrants expiring July 27, 2024. The Company determined that the fair value of the Class A Warrants was $963.

On August 11, 2022, the Company issued 70,000 Class A Warrants expiring August 12, 2024. The Company determined that the fair value of the Class A Warrants was $1,259.

On August 31, 2022, the Company made a year-end adjustment $11,017 in paid-in capital related to the warrants issued in the second quarter of FY 2022, resulting in an adjustment of the total carrying cost of all outstanding warrants by that amount, and credited to paid-in-capital. The total paid in capital for the quarter was not affected.

On September 14, 2022, the Company issued 433,335 Class A Warrants expiring September 15, 2024. The Company determined that the fair value of the Class A Warrants was $7,289.

As of November 30, 2022, there were 1,963,335 Class A Warrants outstanding which the Company has valued at $74,046.

**Sibannac, Inc.**

**Balance Sheet**

**August 31, 2022**

**(Unaudited)**

---

| | |
|:---|:---|
| **ASSETS** |  |
| CURRENT ASSETS: |  |
| &nbsp;&nbsp;&nbsp;Cash | $14083 |
| &nbsp;&nbsp;&nbsp;Accounts receivable | 4022 |
| &nbsp;&nbsp;&nbsp;Inventory | 21445 |
| Total current assets | 39550 |
| OTHER ASSETS: |  |
| &nbsp;&nbsp;&nbsp;Equipment | 7615 |
| &nbsp;&nbsp;&nbsp;Investments | 500000 |
| &nbsp;&nbsp;&nbsp;Website costs | 330210 |
| &nbsp;&nbsp;&nbsp;Note receivable | 5000 |
| Total assets | $882375 |
| **LIABILITIES** |  |
| CURRENT |  |
| &nbsp;&nbsp;&nbsp;Accounts payable | $11955 |
| &nbsp;&nbsp;&nbsp;Accrued compensation to officer and director | 98530 |
| &nbsp;&nbsp;&nbsp;Due to related parties | 11762 |
| &nbsp;&nbsp;&nbsp;Unissued capital stock | 171352 |
| Total current liabilities | 293599 |
| LONG TERM |  |
| &nbsp;&nbsp;&nbsp;Debentures payable | 155500 |
| &nbsp;&nbsp;&nbsp;Notes payable | 156500 |
| &nbsp;&nbsp;&nbsp;Accrued interest | 44128 |
| Total Liabilities | 649727 |
| **STOCKHOLDERS' EQUITY** |  |
| &nbsp;&nbsp;&nbsp;Preferred stock | 5481 |
| &nbsp;&nbsp;&nbsp;Common stock | 77976 |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital | 4441720 |
| &nbsp;&nbsp;&nbsp;Warrants | 66758 |
| &nbsp;&nbsp;&nbsp;Accumulated (deficit) | (4359287) |
| Total stockholders' deficit | 232648 |
| Total liabilities and stockholders' equity | $882375 |

---

See accompanying notes to these unaudited consolidated financial statements.

**Sibannac, Inc.**

**Income Statements**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
|  | For the years ended | For the years ended |
|  | August 31, | August 31, |
|  | 2022 | 2021 |
| Total sales revenue | $6415 | $157311 |
| Total cost of sales | 2500 | 100287 |
|  | 3915 | 57024 |
| General and administrative | 61513 | 44956 |
| Sales and marketing | 43811 | 27497 |
| Professional fees | 98532 | 191569 |
| Officer and director compensation | 184000 | 176900 |
| Rent & utilities | 95138 | 94357 |
| Research & development expense | 4740 | 0 |
| Website development expenses | 44936 | 8487 |
| Total operating expenses | 532670 | 543766 |
|  | (528755) | (486742) |
| Interest income | 0 | 5723 |
| Gain from discontinued operations | 18335 | 0 |
| Interest expense | (91979) | (77090) |
| Financing expenses | 0 | (32000) |
| Gain on extinguishment of debt | 9442 | 24174 |
| Net (loss) | $(592957) | $(565935) |
| (Loss) per share | $(0.012) | $(0.022) |
| Basic | $(0.012) | $(0.022) |
| Diluted |  |  |
| \* Unissued common shares are anti-dilutive. |  |  |

---

See accompanying notes to these unaudited consolidated financial statements.

**Sibannac, Inc.**

**Statement of Changes in Stockholders' Equity**

**(Unaudited)**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Preferred<br> Shares | Amount | Common<br> Shares | Amount | Paid-In<br> Capital | Stock<br> Warrants | Unrealized Gain (Loss) | Accumulated<br> (Deficit) | Accumulated<br> (Deficit) | Total |
| Balance at August 31, 2020 | 5019000 | $5019 | 16127194 | $16127 | $1855920 |  | $71400 | ($| 3200395) | 1251929) |
| Unexercised put option |  |  |  |  |  |  | (71400) |  |  | (71400) |
| Preferred B issuance for cash | 1500 | 2 |  |  | 7498 |  |  |  |  | 7500 |
| Common stock issued for services |  |  | 7766518 | 7766 | 439234 |  |  |  |  | 447000 |
| Common stock issued for debt |  |  | 2325000 | 2325 | 216763 |  |  |  |  | 219088 |
| Net (loss) for the year ended August 31, 2021 |  |  |  |  |  |  |  |  | (565935) | (565935) |
| Balance at August 31, 2021 | 5020500 | 5021 | 26218712 | 26218 | 2519415 | 0 | 0 |  | (3766330) | (1215676) |
| Preferred B issuance for debt | 80000 | 80 |  |  | 399920 |  |  |  |  | 400000 |
| Preferred D issuance for debt | 485681 | 485 |  |  | 485196 |  |  |  |  | 485681 |
| Common stock for services |  |  | 100000 | 100 | 2900 |  |  |  |  | 3000 |
| Forgiveness of government loan |  |  |  |  | 3000 |  |  |  |  | 3000 |
| Common stock issued for debt |  |  | 37723001 | 37723 | 882377 |  |  |  |  | 920100 |
| Units issued under Regulation A |  |  | 7650000 | 7650 | 155092 | 66758 |  |  |  | 229500 |
| Preferred B converted for common | (1000) | (1) | 57693 | 58 | (56) |  |  |  |  | 1 |
| Preferred D converted for common | (103779) | (104) | 6226740 | 6227 | (6124) |  |  |  |  | (1) |
| Net (loss) for year ended August 31, 2022 |  |  |  |  |  |  |  |  | (592957) | (592957) |
| Balance at August 31, 2022 | 5481402 | $5481 | 77976146 | $77976 | $4441720 | $66758 | $0 | ($| 4359287) | $232648 |

---

See accompanying notes to these unaudited consolidated financial statements.

**Sibannac, Inc.**

**Statement of Cash Flows**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
|  | For the years ended | For the years ended |
|  | August 31, | August 31, |
|  | 2022 | 2021 |
| OPERATING ACTIVITIES |  |  |
| &nbsp;&nbsp;&nbsp;Net (loss) for the period | $(592957) | $(565935) |
| &nbsp;&nbsp;&nbsp;Adjustments to reconcile net loss to net cash (used in) provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common shares issued for services | 3000 | 447000 |
| &nbsp;&nbsp;&nbsp;Changes in assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Incr)/decr - Inventory | 2565 | 8893 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Incr)/decr - accounts receivable | 15365 | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Incr)/decr - note receivable | (5000) | 71910 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Incr/(decr) in accounts payable | 8834 | 551582 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Incr/(decr) in accrued compensation | 133500 | 170408 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Incr/(decr) in notes payable | 100000 | 3615 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Incr/(decr) in debenture payable | 5440 | (293068) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Incr/(decr) in accrued interest | 89079 | 60369 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Incr/(decr) in due to related party | (61153) | 72915 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Incr/(decr) in put payable | 0 | (71400) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Incr/(decr) - unissued common stock | (307764) | 268150 |
| &nbsp;&nbsp;&nbsp;Net cash (used in) provided by operating activities | (609091) | 724439 |
| INVESTING ACTIVITIES |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchase of equipment | 0 | (7615) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisition of Preferred B NOHO shares | 0 | (500000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment in website | 0 | (330210) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment in joint venture | 0 | 20000 |
| &nbsp;&nbsp;&nbsp;Net cash (used in) provided by investing activities | 0 | (817825) |
| FINANCING ACTIVITIES |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash from issuance of Preferred B shares | 0 | 7500 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash from issuance of common stock | 106000 | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash from Reg A offering of units | 229500 | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common shares for Apollo acquisition | 246764 | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash for debenture | 0 | 100000 |
| &nbsp;&nbsp;&nbsp;Net cash (used in) provided by financing activities | 582264 | 107500 |
| INCREASE (DECREASE) IN CASH | (26827) | 14114 |
| &nbsp;&nbsp;&nbsp;CASH, BEGINNING OF PERIOD | 40910 | 26796 |
| &nbsp;&nbsp;&nbsp;CASH, END OF PERIOD | $14083 | $40910 |
| NON-CASH TRANSACTIONS IN COMMON SHARES |  |  |
| Issuance of 2,325,000 common shares for debt | $0 | $219088 |
| Issuance of 1,223,000 common shares for debt | $92337 | $0 |
| Issuance of 31,666,667 common shares for debt | $475000 | $0 |
| Issuance of Pref D for debt & accrued interest | $235593 | $0 |
| Issuance of 80,000 Pref B for website services | $400000 | $0 |
| Issuance of Pref D for services | $250087 | $0 |

---

See accompanying notes to these unaudited consolidated financial statements.

**Sibannac, Inc.**

**Notes to Unaudited Financial Statements**

**For the years ended August 31, 2022, and August 31, 2021**

**1)** **BASIS OF PRESENTATION AND NATURE OF BUSINESS**

&nbsp;&nbsp;&nbsp;&nbsp;**1.** **Nature of Business** 

Sibannac, Inc. ("Sibannac" or "Company" or "we") was incorporated in June 1999 in the State of Nevada as Naprodis, Inc. On August 25, 2014, the Company transferred all its assets to Naprodis, Inc., a Colorado corporation ("Colorado Naprodis"). On November 25, 2014, the Company changed its name to Sibannac, Inc.

On July 17, 2017, the Company acquired Imbutek Inc., including its Plan of Operation (the "Plan"), and its sole shareholder became the President of the Company. The Company is preparing and packaging health products for wholesalers and retailers under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;**2.** **Basis of Presentation** 

The Company prepared the accompanying unaudited financial statements. Management has made all adjustments necessary to present the financial position fairly, results of operations and cash flows for the stated periods. Except as described below, these adjustments consist only of regular and recurring adjustments. Management has omitted certain note disclosures that typically would be included in audited financial statements prepared under generally accepted accounting principles in the United States of America.

&nbsp;&nbsp;&nbsp;&nbsp;**3.** **Going Concern** 

The Company prepares its financial statements using generally accepted accounting principles in the United States of America applicable to a going concern that contemplates the realization of assets and liquidation of liabilities in the ordinary course of business. The Company has not yet established an ongoing source of revenue sufficient to cover its operating costs and allow it to continue as a going concern.

The ability of the Company to continue as a going concern is dependent on the Company obtaining adequate capital to fund operating losses until it becomes profitable. If the Company cannot obtain sufficient capital, it could be forced to cease operations. To continue as a going concern, the Company will need, among other things, additional capital resources. Management's plans to obtain such resources for the Company include (1) obtaining capital from Management and significant shareholders sufficient to meet its minimal operating expenses or (2) seeking out and completing a merger with an existing operating company. However, Management cannot provide any assurances that the Company will accomplish any of its plans.

The ability of the Company to continue as a going concern depends on its ability to accomplish the plans described in the preceding paragraph and eventually secure other sources of financing and attain profitable operations. The accompanying financial statements do not include any adjustments that might be necessary if the Company cannot continue as a going concern.

**2)** **CRITICAL ACCOUNTING POLICIES AND ESTIMATES** 

&nbsp;&nbsp;&nbsp;&nbsp;**4.** **Cash and Cash Equivalents** 

The Company considers all highly liquid instruments with an original maturity of three months or less to be cash equivalents. At certain times, cash in banks may exceed the amount covered by FDIC insurance.

&nbsp;&nbsp;&nbsp;&nbsp;**5.** **Fair Value of Financial Instruments** 

The Financial Accounting Standards Board issued ASC (Accounting Standards Codification) 820-10 (SFAS No. 157), "Fair Value Measurements and Disclosures" for financial assets and liabilities. ASC 820-10 provides a framework for measuring fair value and requires expanded disclosures regarding fair value measurements. FASB ASC 820-10 defines fair value as the price received for an asset or the exit price paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. FASB ASC 820-10 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs, where available. The following summarizes the three levels of inputs required by the standard that the Company uses to measure fair value:

&nbsp;&nbsp;&nbsp;&nbsp;· Level 1: Quoted prices in active markets for identical assets or liabilities.

&nbsp;&nbsp;&nbsp;&nbsp;· Level 2: Observable inputs (other than Level 1 prices (quoted prices for similar assets or liabilities; quoted prices in markets)
that are not active or other observable inputs or can be corroborated by observable market data for substantially the entire term of the
related assets or liabilities).

&nbsp;&nbsp;&nbsp;&nbsp;· Level 3: Unobservable inputs (those supported by little or no market activity and significant to the fair value of the assets or liabilities).

The Company determines the fair value and accounting treatment of options and warrants per the provisions of ASC 480.

As of August 31, 2021, all the Company's financial instruments are recorded at fair value.

&nbsp;&nbsp;&nbsp;&nbsp;**6.** **Accounts Receivable and concentration of credit risk** 

The Company extends unsecured credit to its customers in the ordinary course of business. Accounts receivable related to product sales are recorded when services are delivered, and payment is reasonably assured. Product sales are generally collected 30 to 60 days after receiving the invoice. Periodically, the Company evaluates its receivables and establishes allowances based on historical experience and other currently available information.

&nbsp;&nbsp;&nbsp;&nbsp;**7.** **Inventories** 

The Company extends unsecured credit to its customers in the ordinary course of business. Accounts receivable related to product sales are recorded when services are delivered, and payment is reasonably assured. Product sales are generally collected 30 to 60 days after receiving the invoice. Periodically, the Company evaluates its receivables and establishes allowances based on historical experience and other currently available information. There was no allowance as of August 31, 2022.

&nbsp;&nbsp;&nbsp;&nbsp;**8.** **Revenue Recognition** 

The Company has adopted ASC Topic 606, "Revenue from Contracts with Customers" ("ASC 606",) and all the related amendments. The Company elected to adopt this guidance using the modified retrospective method. The adoption of this guidance did not have a material effect on the Company's financial position, results of operations, or cash flows.

The core principle of ASC 606 requires that an entity recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. ASC 606 defines a five-step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than required under U.S. GAAP (including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation).

None of the Company's revenue represents an obligation to perform services. Since the Company's revenue is generated via multiple small buyers and online, the Company does not have material contract assets or liabilities that fall under ASC 606.

The Company recognizes revenue as goods are sold considered complete upon successful delivery of the product to the customer. The Company has no further performance obligations, and collection is assured as the Company is paid 100% of the retail price of its products when they are sold.

The Company's revenues accounted for under ASC 606 do not require significant estimates or judgments based on the nature of the Company's revenue stream. The sales price is generally fixed at the point of sale and all consideration from the sale is included in the transaction price. The Company's sales do not include multiple performance obligations or variable consideration.

&nbsp;&nbsp;&nbsp;&nbsp;**9.** **Income taxes** 

The Company accounts for income taxes in accordance with ASC 740-10, Income Taxes. The Company recognizes deferred tax assets and liabilities to reflect the estimated future tax effects, calculated at currently effective tax rates, of future deductible or taxable amounts attributable to events that have been recognized on a cumulative basis in the consolidated financial statements. A valuation allowance related to a deferred tax asset is recorded when it is more likely than not that some portion of the deferred tax asset will not be realized. Deferred tax assets and liabilities are adjusted for the effects of the changes in tax laws and rates of the date of enactment.

ASC 740-10 prescribes a recognition threshold that a tax position is required to meet before being recognized in the financial statements and provides guidance on recognition, measurement, classification, interest and penalties, accounting in interim periods, disclosure and transition issues. The Company classifies interest and penalties as a component of interest and other expenses. To date, there have been no interest or penalties assessed or paid.

The Company measures and record uncertain tax positions by establishing a threshold for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Only tax positions meeting the more-likely-than-not recognition threshold at the effective date may be recognized or continue to be recognized.

The Company had no income tax provision for the periods ended August 31, 2022, and August 31, 2021, due to recurring net losses.

&nbsp;&nbsp;&nbsp;&nbsp;**10.** **Loss per share** 

ASC 260-10 "Earnings Per Share" requires the Company to calculate its net income (loss) per share based on basic and diluted net income (loss) per share, as defined. Basic EPS excludes dilution and is computed by dividing net income (loss) by the weighted average number of shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. The dilutive effect of outstanding options and warrants issued by the Company are reflected in diluted EPS using the treasury stock method. Under the treasury stock method, options and warrants will generally have a dilutive effect when the average market price of common stock during the period exceeds their exercise price. The dilutive effect of outstanding convertible debt issued by the Company is reflected in diluted EPS using the if-converted method. For periods of net loss, basic and diluted EPS are the same as the assumed exercise of stock options and warrants and the conversion of convertible debt are anti-dilutive. Unissued common shares and convertible instruments are not included in the calculation of EPS because they would be anti-dilutive because of the loss per share.

&nbsp;&nbsp;&nbsp;&nbsp;**11.** **Stock Warrants** 

On February 7, 2022, the Company registered a public offering with the Securities and Exchange Commission under Regulation A. The offering is for 27,000,000 Units priced at $.15 per Unit. Each Unit consists of five (5) shares of common stock and an accompanying warrant (the "Class A Warrant(s)") to purchase one (1) share of the Company's common stock at $.20 per share. Each Class A Warrant expires two (2) years after issuance and is immediately exercisable.

The Company evaluated the Class A Warrants for liability or equity classification in accordance with the provisions of ASC 480, *Distinguishing Liabilities from Equity*, and determined that equity treatment was appropriate because the Class A Warrants do not meet the definition of liability instruments.

The Class A Warrants are classified as a component of permanent equity because they are freestanding financial instruments that are legally detachable and separately exercisable from the shares of common stock with which they were issued, are immediately exercisable, do not embody an obligation for the Company to repurchase its shares, and permit the holders to receive a fixed number of shares of common stock upon exercise. In addition, the Class A Warrants do not provide any guarantee of value or return.

&nbsp;&nbsp;&nbsp;&nbsp;**12.** **Recent Accounting Pronouncements** 

The Company does not expect the adoption of recently issued accounting pronouncements to have a significant impact on our results of operations, financial position, or cash flow.

**3)** **WEBSITE COSTS**

During the year ended August 31, 2021, the Company incurred $830,210 in development costs for the purpose of completing the brand builds for rad8LifeÔ, CherryologyÔ and The Campus Co. platform ("Campus").

On June 17, 2021, in a related party transaction, the Company sold the rad8LifeÔ brand and rad8life.com site to Noho, Inc., for Series B Preferred shares valued at $500,000, which reduced Website Costs held on the Company's books to $330,210.

<u>Campus</u> is the entry point for all new relationships with Sibannac. This included all basic contract manufacturing, logistics, and fulfillment, as well as brand building, product design and website creation and social media services.

CherryologyÔ was created because of the Company's experience in creating brands to fit identified demographics and designed to appeal to consumers. These costs have been capitalized and will be amortized when the development of the entire project is completed.

**4)** **INVESTMENTS**

During the year ended August 31, 2021, the Company established Vestra, LLC. Vestra is a special purpose LLC established to hold the rad8LifeÔ brand and operate the site rad8life.com for the sale of Delta 8 THC products and may be expanded to cover other products. On June 17, 2021, in a related party transaction, the Company sold Vestra to Noho, Inc., for 2,000,000 shares of Noho, Inc. Series B Preferred shares valued at $500,000. On June 9, 2022, the Company converted all 2,000,000 shares of Noho, Inc. Series B Preferred held by it into 280,000,000 shares of Noho, Inc. Common Stock. The Company is holding the shares as an investment.

**5)** **NOTE RECEIVABLE AND PUT PAYABLE** 

As part of the acquisition of Apollo Media Network, Inc. ("Apollo") on August 31, 2015, the Company received a $250,000 promissory note from the principal of Apollo (the "Maker") due and payable to the Company on August 31, 2023 (the "Note"). The Note is secured by a pledge of 1,400,000 shares of the Company's common stock that were owed to the Maker as part of the acquisition. The Note accrues interest at an annual rate of 1.59% and may be repaid, at the Maker's discretion, in cash or through the exercise of a concurrently issued Put Option.

The Put Option allowed the Maker to put the 1,400,000 common shares liability to the Company which would fully satisfy the Note, plus any accrued interest at the time of exercise irrespective of the market price of the common shares at the time of the exercised option. The Note and Put Option are linked to one another and, with the exception of any unrealized gain (loss), will offset each other should the holder elect to exercise the put option. Upon exercise, no cash will exchange hands, but the assets, interest and offsetting equity reserves will be adjusted on the Company's books at that time.

At any time prior to the due date of the Note, the Maker could satisfy the note and accrued interest in cash in exchange for the delivery of 1,400,000 common shares. The offsetting equity reserves would be adjusted on the Company's books at that time, if the Maker elects to pay the Note in cash.<br>The Company had discounted the net realizable value of the note receivable and accrued interest receivable on August 31, 2021, to the market value of the 1,400,000 pledged shares.

In May of 2021, the Company received notice that the holder had elected to exercise his option to put the shares and, as a result, the Company wrote off the Note, cancelling the holder's claim on the 1,400,000 shares; however, the Company was obligated to issue 1,400,000 shares to satisfy the Apollo Acquisition Debenture which had been accrued as an Unissued Capital Stock liability. 1,400,000 were issued on February 9, 2022.

---

| | | |
|:---|:---|:---|
| | **As of** | **As of** |
| <br>**Description** | **8/31/22** | **8/31/21** |
| Note receivable | $0 | $250000 |
| Accrued interest receivable | 0 | 22892 |
| less discount | 0 | - |
| Market value of pledged shares | $0 | $272892 |

---

**6)** **UNISSUED CAPITAL STOCK**

As of August 31, 2022, the Company has an Unissued Capital Stock liability of $126,352, as per the table below:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Unissued Common Shares** | **Unissued Common Shares** | **Unissued Common Shares** | **Unissued Common Shares** | **Unissued Preferred B Shares** | **Unissued Preferred B Shares** | **Unissued Preferred B Shares** | **Unissued Preferred B Shares** |
| **Date** | **Paid** | **Price ($)** | **Shares** | **Date** | **Paid** | **Price ($)** | **Shares** |
| 06/29/17 | $28000 | 0.048 | 580000 | 01/20/21 | $5000 | 5.00 | 1000 |
| 06/29/17 | 5202 | 0.019 | 270000 | 02/05/21 | 9000 | 5.00 | 1800 |
| 04/04/19 | 10000 | 0.050 | 200000 | 02/22/21 | 6000 | 5.00 | 1200 |
| 07/22/20 | 60000 | 0.060 | 1000000 | 02/25/21 | 3150 | 5.00 | 630 |
| 08/31/22 | 45000 | 0.030 | 1500000 |  |  |  |  |
|  | $148202 |  | 3550000 |  | $23150 |  | 4630 |

---

On August 31, 2022, in a Regulation A public offering, the Company issued and sold an aggregate of 300,000 Units consisting of five (5) shares of its common stock and one (1) accompanying Class A Warrant to purchase one (1) share of the Company's common stock at a combined price of $0.15 per Unit. This would have resulted in the issuance of 1,500,000 shares of Common Stock and 300,000 Class A Warrants; however, the issuance instructions could not be processed before the fiscal year end and have been recorded as an unissued stock liability.

**7)** **DEBENTURES AND NOTES PAYABLE**

&nbsp;&nbsp;&nbsp;&nbsp;**13.** **15% Convertible Debentures** 

The Company following 15% Convertible Debentures were outstanding during the last two completed fiscal years and the first nine months of the current fiscal year:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Debenture** | **Issue Date** | **Maturity Date** | **Principal ($)** | **Balance ($)** | **Interest rate** | **Conversion Terms** |
| 1 | 12/04/17 | 12/04/20 | $200000 | $- | 15% | See Note 1 |
| 2 | 07/30/18 | 07/30/21 | 50000 |  | 15% | See Note 1 |
| 3 | 02/27/19 | 02/27/20 | 50000 | 50000 | 15% | $0.05 per share |
| 4 | 06/21/19 | 06/21/20 | 15000 |  | 15% | Not Convertible |
| 5 | 07/16/19 | 07/16/20 | 17500 |  | 15% | Not Convertible |
| 6 | 08/29/19 | 08/29/20 | 30000 |  | 15% | Not Convertible |
| 7 | 10/31/19 | 05/01/20 | 95000 |  | 15% | See Note 1 |
| 8 | 01/27/20 | 07/27/20 | 40000 |  | 15% | See Note 1 |
| 9 | 06/30/21 | 06/30/22 | 100000 | 100000 | 15% | See Note 2 |
| 10 | 05/13/22 | 05/13/23 | 5500 | 5500 | 15% | See Note 3 |
|  |  |  | $603000 | $155500 |  |  |

---

---

| | |
|:---|:---|
| Note 1: | The "Variable Conversion Price" shall mean 70% multiplied by the Market Price (as defined herein) (representing a discount rate of 30%)."Market Price" means the average of the lowest three (3) Trading Prices (as defined below) for the Common Stock during the twenty (20) Trading Day period ending on the last complete Trading Day prior to the Conversion Date. |

---

---

| | |
|:---|:---|
| Note 2 | The "Variable Conversion Price" shall mean 55% multiplied by the Market Price (as defined herein) (representing a discount rate of 30%)."Market Price" means the average of the lowest three (3) Trading Prices (as defined below) for the Common Stock during the twenty (20) Trading Day period ending on the last complete Trading Day prior to the Conversion Date. |

---

---

| | |
|:---|:---|
| Note 3 | The "Variable Conversion Price" shall mean 80% multiplied by the Market Price (as defined herein) (representing a discount rate of 30%)."Market Price" means the average of the lowest three (3) Trading Prices (as defined below) for the Common Stock during the twenty (20) Trading Day period ending on the last complete Trading Day prior to the Conversion Date. |

---

The net carrying amount of the Debentures is as follows:

---

| | | |
|:---|:---|:---|
|  | **For the period ended** | **For the period ended** |
|  | **8/31/22** | **8/31/21** |
| Outstanding Debentures 3, 9 & 10 | $155500 | $407412 |
| Apollo Debenture | 0 | 0 |
| Total Principal | $155000 | $407412 |

---

---

| | | |
|:---|:---|:---|
|  | **For the period ended** | **For the period ended** |
|  | **8/31/22** | **8/31/21** |
| Outstanding Debentures 3, 9 & 10 accrued interest @ 15% | $44128 | $70597 |
| Amortization of debt discounts and issuance costs | – | – |
| Total Accrued interest | $44128 | $70597 |

---

**8)** **Notes Payable** 

The Company owes four demand notes to shareholders for cash, as listed in the table below.

None of these loans pay or accrue interest.

---

| | | |
|:---|:---|:---|
|  | **For the period ended** | **For the period ended** |
|  | **8/31/22** | **05/31/21** |
| Non-Related Short Term Note 1 | 10500 | 10500 |
| Non-Related Short Term Note 2 | 22500 | 22500 |
| Non-Related Short Term Note 3 | 23500 | 23500 |
| Non-Related Short Term Note 4 | 100000 | N/A |
| Total | $156500 | $56500 |

---

**9)** **DUE TO RELATED PARTIES**

The Company has issued short term demand notes to the CEO and members of his immediate family in exchange for cash loans which are classified as Related Party Notes in the table below.

None of these loans pay or accrue interest.

---

| | | |
|:---|:---|:---|
|  | **For the period ended** | **For the period ended** |
|  | **8/31/22** | **08/31/21** |
| Related Party Notes | $11762 | $72914 |
| Total | $11672 | $72914 |

---

**10)** **COMMON AND PREFERRED STOCK**

The following table represents the number of shares of each class outstanding as if the date listed.

---

| | |
|:---|:---|
| **Share Class** | **8/31/22** |
| Common Stock | 77976146 |
| Series A Convertible Preferred Stock | 5000000 |
| Series B Convertible Preferred Stock | 99500 |
| Series D Convertible Preferred Stock | 381902 |

---

&nbsp;&nbsp;&nbsp;&nbsp;**14.** **Common Stock** 

During the quarter ended August 31, 2021, the Company issued 7,776,518 common shares valued at $447,000 for the purpose of completing the brand builds for both CherryologyÔ and The Campus Co. platform.

During the quarter ended August 31, 2021, the Company issued 2.325,000 common shares in conversion of $219,087.50 in principal and accrued interest owed under Debenture 1, as listed above in Note 7.

As of August 31, 2021, there were 26,218,712 shares of Common Stock issued and outstanding.

1,223,000 common shares were issued on October 25, 2021, in settlement of $88,320 in principal and $4,017 in accrued interest owed under Debenture 1.

100,000 common shares were issued on November 30, 2021, for $6,000 in cash received on June 3, 2020.

3,333,334 common shares were issued on November 30, 2021, for $100,000 in cash received in August of 2017.

On February 9, 2022, in a Regulation A public offering, the Company issued and sold an aggregate of 600,000 Units consisting of five (5) shares of its common stock and one (1) accompanying Class A to purchase one (1) share of the Company's common stock at a combined price of $0.15 per Unit. This resulted in the issuance of 3,000,000 shares of Common Stock and 600,000 Class A Warrants.

1,400,000 common shares were issued on February 09, 2022, to satisfy the Apollo Acquisition Debenture which were valued at $246,764.

On March 7, 2022, the Company issued 57,693 shares of Common Stock in conversion of 1,000 shares of Series B Convertible Preferred Stock.

On April 1, 2022, the Company issued 31,666,667 shares of Common Stock to its CEO, David Mersky in exchange for the cancellation of $475,000 in accrued compensation.

On April 5, 2022, in a Regulation A public offering, the Company issued and sold an aggregate of 300,000 Units consisting of five (5) shares of its common stock and one (1) accompanying Class A Warrant to purchase one (1) share of the Company's common stock at a combined price of $0.15 per Unit. This resulted in the issuance of 1,500,000 shares of Common Stock and 300,000 Class A Warrants.

On May 9, 2022, in a Regulation A public offering, the Company issued and sold an aggregate of 165,000 Units consisting of five (5) shares of its common stock and one (1) accompanying Class A Warrant to purchase one (1) share of the Company's common stock at a combined price of $0.15 per Unit. This resulted in the issuance of 825,000 shares of Common Stock and 165,000 Class A Warrants.

On June 20, 2022, a Series D Convertible Preferred Stockholder converted 103,779 shares of Series D Convertible Preferred Stock into 6,226,740 Common Stock shares.

On June 29, 2022, in a Regulation A public offering, the Company issued and sold an aggregate of 260,000 Units consisting of five (5) shares of its common stock and one (1) accompanying Class A Warrant to purchase one (1) share of the Company's common stock at a combined price of $0.15 per Unit. This resulted in the issuance of 1,300,000 shares of Common Stock and 260,000 Class A Warrants.

On July 26, 2022, in a Regulation A public offering, the Company issued and sold an aggregate of 135,000 Units consisting of five (5) shares of its common stock and one (1) accompanying Class A Warrant to purchase one (1) share of the Company's common stock at a combined price of $0.15 per Unit. This resulted in the issuance of 675,000 shares of Common Stock and 135,000 Class A Warrants.

On August 11, 2022, in a Regulation A public offering, the Company issued and sold an aggregate of 70,000 Units consisting of five (5) shares of its common stock and one (1) accompanying Class A Warrant to purchase one (1) share of the Company's common stock at a combined price of $0.15 per Unit. This resulted in the issuance of 350,000 shares of Common Stock and 70,000 Class A Warrants.

On August 30, 2022, the company issued 100,000 Common Stock shares for Website design services.

As of August 31, 2022, there were 300,000,000 Common Stock shares authorized, and 77,976,146 shares of Common Stock issued and outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;**15.** **Preferred Stock** 

&nbsp;&nbsp;&nbsp;&nbsp;**16.** **Series A Convertible Preferred Stock** 

On May 1, 2020, the Company and its sole director and officer cancelled 5,000,000 shares of Series A Preferred Stock. On May 13, 2020, the Company filed a Certificate of Designation for Series A Convertible Preferred Stock. The Certificate of Designation for Series A allows the holder to convert into 1,000 shares for each Series A share held. As a result, $1,706,164 of the Unissued common stock liability was cancelled.

As of August 31, 2022, there were 5,000,000 Preferred A shares authorized, and 5,000,000 Preferred A shares outstanding that were issued for $1,706,164.

&nbsp;&nbsp;&nbsp;&nbsp;**17.** **Series B Convertible Preferred Stock** 

1,000 shares of Series B Convertible Preferred Stock shares were issued on July 8, 2020, in exchange for $5,000 in cash.

18,000 shares of Series B Convertible Preferred Stock were issued on July 22, 2020, in exchange for $90,000 in cash.

1,500 shares of Series B Convertible Preferred Stock were issued on May 6, 2021, for $7,500 in cash.

As of August 31, 2021, there were 20,500 Preferred B shares outstanding.

80,000 Preferred shares were issued were issued on November 30, 2021, for website services valued at $400,000.

On March 7, 2022, the Company cancelled 1,000 shares of Preferred B in exchange for the issuance of 57,693 shares of Common Stock.

As of August 31, 2022, there were 400,000 Preferred B shares authorized, and 99,500 Preferred B shares outstanding that were issued for cash and services totaling $502,000

&nbsp;&nbsp;&nbsp;&nbsp;**18.** **Series D Convertible Preferred Stock** 

On June 3, 2022, the Company issued 235,594 shares of its Series D Convertible Preferred Stock in cancelation of Debentures 2, 7, and 8 in Note 7 above for a total of $169,032.54 in principal and $66,561.23 in accrued interest.

On June 3, 2022, the Company issued 250,088 shares of its Series D Convertible Preferred Stock in cancelation of outstanding payables of $205,116.97 in principal and $44,970.28 in accrued interest owed to a creditor.

On June 20, 2022, a Series D Convertible Preferred Stockholder converted 103,779 shares of Series D Convertible Preferred Stock into 6,226,740 Common Stock shares.

As of August 31, 2022, there were 1,200,000 Preferred D shares authorized, and 381,902 Preferred D shares outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;**19.** **Class A Warrants** 

Commencing in the quarter ended February 28, 2022, the Company was approved to sell in a Regulation A public offering, units consisting of five (5) shares of its common stock and an accompanying Class A Warrant to purchase one (1) share of the Company's common stock at a combined price of $0.15 per share.

The Company values its Class A Warrants at issuance using the Black-Scholes option pricing model. The key inputs to the valuation model include average volatility and an expected term of 2 years. The warrants are recorded in additional paid in capital at their initial fair value. They will not be remeasured in subsequent reporting periods.

On February 9, 2022, the Company issued 600,000 Class A Warrants that expire on February 10, 2024. The Company determined that the fair value of the Class A Warrants was $39,821.

On April 5, 2022, the Company issued 300,000 Class A Warrants that expire on April 6, 2024. The Company determined that the fair value of the Class A Warrants was $19,411.

On May 9, 2022, the Company issued 165,000 Class A Warrants expiring May 10, 2024. The Company determined that the fair value of the Class A Warrants was $10,951.

On June 29, 2022, the Company issued 260,000 Class A Warrants expiring June 30, 2024. The Company determined that the fair value of the Class A Warrants was $5,369.

On July 26, 2022, the Company issued 135,000 Class A Warrants expiring July 27, 2024. The Company determined that the fair value of the Class A Warrants was $963.

On August 11, 2022, the Company issued 70,000 Class A Warrants expiring August 12, 2024. The Company determined that the fair value of the Class A Warrants was $1,259.

On August 31, 2022, the Company made a year-end adjustment $11,017 in paid-in capital related to the warrants issued in the second quarter of FY 2022, resulting in an adjustment of the total carrying cost of all outstanding warrants by that amount, and credited to paid-in-capital. The total paid in capital for the quarter was not affected.

As of August 31, 2022, there were 1,530,000 Class A Warrants outstanding which the Company has valued at $66,757.

**PART III—EXHIBITS**

**Index to Exhibits**

---

| | |
|:---|:---|
| **Number** | **Exhibit Description** |
| 2.1\* | [Amended Articles of Incorporation and Amendments Thereto](sibannac_ex0201.htm) |
| 2.2 | [Bylaws](http://www.sec.gov/Archives/edgar/data/1313938/000168316822000320/sibannac_ex0202.htm) (1) |
| 3.1 | [Specimen Stock Certificate](http://www.sec.gov/Archives/edgar/data/1313938/000168316822000320/sibannac_ex0301.htm) (1) |
| 4.1\* | [Subscription Agreement](sibannac_ex0401.htm) (2) |
| 4.2 | [Class A Purchase Warrant](http://www.sec.gov/Archives/edgar/data/1313938/000168316822000320/sibannac_ex0402.htm) (1) |
| 6.1 | [CEO Employment Agreement by and between the Company and David Mersky, dated July 10, 2017](http://www.sec.gov/Archives/edgar/data/1313938/000168316822000320/sibannac_ex0601.htm) (1) |
| 6.2 | [Promissory Note by and between the Company and Santanu Das, dated December 21, 2021](http://www.sec.gov/Archives/edgar/data/1313938/000168316822000320/sibannac_ex0602.htm) (1) |
| 6.3\* | [Asset Purchase Agreement between the Company and NoHo, Inc., dated November 8, 2022](sibannac_ex0603.htm). |
| 6.4\* | [Letter of Intent by and between the Company and SPUR Biotech, LLC, dated July 18, 2022.](sibannac_ex0604.htm) |
| 12.1\* | [Opinion of Carl Ranno, Esq.](sibannac_ex1201.htm) |

---

\*Filed herewith.

(1) Incorporated by reference to the Offering Statement 1-A filed on 01-20-2022.

(2) Incorporated by reference to the Offering Statement 1-A filed on 01-28-2022.

**SIGNATURES**

Pursuant to the requirements of Regulation A, the issuer certifies that it has reasonable grounds to believe that it meets all of the requirements for filing on Form 1-A and has duly caused this Offering Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Scottsdale on February 8, 2023.

---

| | |
|:---|:---|
| (Exact name of issuer as specified in its charter): | **Sibannac, Inc.** |

---

This Offering Statement has been signed by the following persons in the capacities and on the dates indicated.

---

| | |
|:---|:---|
| By: | */s/ David Mersky* |
| Title: | David Mersky, Chief Executive Officer (Principal Executive Officer) |
| (Date): | February 8, 2023 |

---

---

| | |
|:---|:---|
|  | */s/ David Mersky* |
| Title: | David Mersky, Chief Financial Officer<br> (Principal Financial Officer, Principal Accounting Officer) |
| (Date): | February 8, 2023 |

---

---

| | |
|:---|:---|
| SIGNATURES OF DIRECTORS: |  |
| */s/ David Mersky* | February 8, 2023 |
| David Mersky | Date |

---

---

| | |
|:---|:---|
| */s/ James D. Staudohar* | February 8, 2023 |
| James D. Staudohar | Date |
| */s/ Booker T. Evans, Esq.* | February 8, 2023 |
| Booker T. Evans, Esq. | Date |

---

## Ex1A-2A

**Exhibit 2.1**

**AMENDED AND RESTATED ARTICLES OF**

**INCORPORATION OF**

**SIBANNAC, INC.**

The undersigned, being the Chief Executive Officer of SIBANNAC, INC., a Nevada corporation (the "Corporation"), does hereby certify that the Articles of Incorporation of SIBANNAC, Inc. are hereby amended and restated in their entirety to read as follows and supersede and take the place of the existing Articles of Incorporation and all prior amendments thereto, effective as of the date of filing hereof with the Secretary of State of Nevada, to embody in one document its original articles and the subsequent amendments thereto, pursuant to Sections 78.390 of the Nevada Revised Statutes.

Amended and Restated Articles of Incorporation were approved and adopted by the board of directors of the Corporation at its first meeting held on January 28, 2021. Upon the recommendation of the board of directors and the shareholder holding the vast majority of the voting power approved and adopted these Amended and Restated Articles of incorporation at the Corporation's meeting of the Board of Directors.

These Amended and Restated Articles of Incorporation correctly set forth the text of the Corporation' s Articles of Incorporation as amended up to and by these Amended and Restated Articles of Incorporation.

**ARTICLE** I - **NAME**

1.1 The name of the corporation is Sibannac, Inc.

**ARTICLE** II **-DURATION**

2.1 The Corporation shall continue in existence perpetually unless sooner dissolved according to law.

**ARTICLE** III - **PURPOSE**

3.1 <u>Purpose.</u> The purpose for which the Corporation is organized is to engage in any lawful activity within or outside of the State of Nevada.

3.2 <u>Corporate Offices</u>. The Corporation may also maintain offices at such other places within or outside of the State of Nevada as it may from time to time determine. Corporate business of every kind and nature may be conducted, and meetings of directors and shareholders may be held outside the State of Nevada with the same effect as if held in the State of Nevada.

**ARTICLE** IV - **BOARD OF DIRECTORS**

4.1 The Board of Directors of the Corporation shall consist of such number of persons, not less than one, as shall be determined in accordance with the bylaws from time to time.

**ARTICLE V- CAPITAL STOCK**

5.1 <u>Authorized Capital Stock</u>. The aggregate number of shares which this Corporation shall have authority to issue is Three Hundred and Ten Million (310,000,000) shares, consisting of (a) Three Hundred Million (300,000,000) shares of Common Stock, par value $0.001 per share (the "Common Stock") and (b) Ten Million (10,000,000) shares of preferred stock, par value $0.001 per share (the "Preferred Stock"), issuable in one or more Series A-D hereinafter provided. A description of the classes of shares and a statement of the relative rights, voting power, and preferences granted to and restrictions imposed upon the shares of each class are as follows:

5.2 <u>Common Stock</u>. Each share of Common Stock shall have, for all purposes, one (1) vote per share. Subject to the preferences applicable to Preferred Stock outstanding at any time, the holders of shares of Common Stock shall be entitled to receive such dividends and other distributions in cash, property or shares of stock of the Corporation as may be declared thereon by the Board of Directors from time to time out of assets or funds of the Corporation legally available therefore. The holders of Common Stock issued and outstanding have and possess the right to receive notice of shareholders' meetings and to vote upon the election of directors or upon any other matter as to which approval of the outstanding shares of Common Stock or approval of the common shareholders is required or requested.

5.3 <u>Preferred Stock</u>. The Shares of Preferred Stock may be issued from time to time in one or more series. The Board of Directors is authorized, by resolution adopted and filed in accordance with law, to provide for the issue of such series of shares of Preferred Stock. Each series of shares of Preferred Stock:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a) may have such voting powers, full or limited, or may be without voting powers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) may be subject to redemption at such time or times and at such prices as determined by the Board of Directors

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) may be entitled to receive dividends (which may be cumulative or non-cumulative) at such rate or rates, on such conditions and at such times, and payable in preference to, or in such relation to, the dividends payable on any other class or classes or series of stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) may have such rights upon the dissolution of, or upon any distribution of the assets of, the Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) may be made convertible into, or exchangeable for, shares of any other class or classes or of any other series of the same or any other class or classes of stock of the Corporation or such other corporation or other entity at such price or prices or at such rates of exchange and with such adjustments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) may be entitled to the benefit of a sinking fund to be applied to the purchase or redemption of shares of such series in such amount or amounts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) may be entitled to the benefit of conditions and restrictions upon the creation of indebtedness of the Corporation or any subsidiary, upon the issue of any additional shares (including additional shares of such series or of any other series) and upon the payment of dividends or the making of other distributions on, and the purchase, redemption or other acquisition by the Corporation or any subsidiary of, any outstanding shares of the Corporation; and

**<u>ARTICLE VI</u>** <u>- **NO FURTHER ASSESSMENTS**</u>

6.1 The capital stock, after the amount of the subscription price determined by the Board of Directors has been paid in money, property, or services, as the Directors shall determine, shall be subject to no further assessment to pay the debts of the Corporation, and no stock issued as fully paid up shall ever be assessable or assessed, and these Articles of Incorporation shall not and cannot be amended, regardless of the vote therefore, so as to amend, modify or rescind this Article 6.

**<u>ARTICLE VII</u>** <u>- **NO PREEMPTIVE RIGHTS**</u>

7.1 Except as otherwise set forth herein, none of the shares of the Corporation shall carry with them any preemptive right to acquire additional or other shares of the Corporation and no holder of any stock of the Corporation shall be entitled, as of right, to purchase or subscribe for any part of any unissued shares of stock of the Corporation or for any additional shares of stock, of any class or series, which may at any time be issued, whether now or hereafter authorized, or for any rights, options, or warrants to purchase or receive shares of stock or for any bonds, certificates of indebtedness, debentures, or other securities.

**<u>ARTICLE VIII</u>** <u>- **NO CUMULATIVE VOTING**</u>

8.1 There shall be no cumulative voting of shares.

**<u>ARTICLEIX-</u>**

**<u>ELECTION NOT TO BE GOVERNED BY PROVISIONS OF NRS 78.411 TO 78.444</u>.**

9.1 The Corporation, pursuant to NRS 78.434, hereby elects <u>not</u> to be governed by the provisions of NRS 78.411 to 78.444, inclusive.

**<u>ARTICLE X</u>**

**<u>INDEMNIFICATION OF OFFICERS AND DIRECTORS</u>**

10.1 <u>Indemnification of Officers and Directors</u>. The Corporation shall indemnify its directors, officers, employees, fiduciaries and agents to the fullest extent permitted under the Nevada Revised Statutes.

10.2 <u>Indemnification Rights</u>. Every person who was or is a party or is threatened to be made a party to or is involved in any action, suit or proceedings, whether civil, criminal, administrative or investigative, by reason of the fact that he or a person for whom he is the legal representative is or was a director or officer of the Corporation or is or was serving at the request of the Corporation as a director or officer of another corporation, or as its representative in a partnership, joint venture, trust or other enterprise, shall be indemnified and held harmless to the fullest extent legally permissible under the law of the State of Nevada from time to time against all expenses, liability and loss (including attorney's fees, judgments, fines and amounts paid or to be paid in settlement) reasonably incurred or suffered by him in connection therewith. Such right of indemnification shall be a contract right that may be enforced in any manner desired by such person. Such right of indemnification shall not be exclusive of any other right which such directors, officers or representatives may have or hereafter acquire and, without limiting the generality of such statement, they shall be entitled to their respective rights of indemnification under any By-Law, agreement, vote of stockholders, provision of law or otherwise, as well as their rights under this Article.

10.3 <u>Changes to Indemnification Riehts: Insurance.</u> Without limiting the application of the foregoing, the Board of Directors may adopt By-Laws from time to time with respect to indemnification to provide at all times the fullest indemnification permitted by the law of the State of Nevada and may cause the Corporation to purchase and maintain insurance on behalf of any person who is or was a director or officer of the Corporation as a director of officer of another corporation, or as its representative in a partnership, joint venture, trust or other enterprise against any liability asserted against such person and incurred in any such capacity or arising out of such status, whether or not the Corporation would have the power to indemnify such person.

10.4 <u>Exemption for Private Propertv</u>. The private property of the Stockholders, Directors and Officers shall not be subject to the payment of corporate debts to any extent whatsoever.

10.5 <u>No Personal Liability</u>. No director, officer or shareholder shall have any personal liability to the Corporation or its stockholders for damages for breach of fiduciary duty as a director or officer, except that this provision does not eliminate nor limit in any way the liability of a director or officer for:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a) Acts or omissions which involve intentional misconduct, fraud or a knowing violation of law; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b) The payment of dividends in violation of Nevada Revised Statutes (N.R.S.) 78.300.

**<u>ARTICLE XI</u>** <u>- **AMENDMENT OF ARTICLES OF INCORPORATION**</u>**.**

11.1 The Articles of Incorporation of the Corporation may be amended from time to time by a majority vote of all shareholders voting by written ballot in person or by proxy held at any general or special meeting of shareholders upon lawful notice.

The foregoing Amended and Restated Articles of Incorporation have been duly approved by the Board of Directors in accordance with Sections 78.207 and 78.390 of the Nevada Revised Statutes.

The foregoing Amended and Restated Articles of Incorporation have been duly approved by the required written consent of Shareholders in accordance with Sections 78.209 and 78.390 of the Nevada Revised Statues. The number of shares voting in favor of the Amended and Restated Articles of Incorporation was more than 50.1%.

**ARTICLE XII-DESIGNATION OF SERIES A PREFERRED STOCK**

A. <u>DESIGNATION OF SERIES; RANK.</u> Pursuant to the Nevada Revised Statutes, the shares of the series of preferred stock of the Corporation designated in this Article shall be designated as the "Series A Preferred Stock" (the "Series A Preferred Stock") and the number of shares initially constituting such series shall be up to Ten Million (10,000,000) shares.

B. <u>DIVIDENDS.</u> Dividends on the Series A Preferred Stock maybe declared by the Board of Directors and paid out of any funds legally available therefor at such times and in such amounts as the Board of Directors shall determine.

C. <u>LIQUIDATION PREFERENCE.</u> The holders of the Series A Preferred Stock shall be entitled to first priority liquidation preference.

D. <u>VOTING RIGHTS.</u> The holders of the Series A Preferred Stock will have the voting rights as described in this Article XII, Section D or as required by law. For so long as any shares of the Series A Preferred Stock remain issued and outstanding, the holders thereof, voting separately as a class, shall have the right to vote on all shareholder matters equal to fifty-one percent (51%) of the total vote on matters to which all shareholders of the Corporation are entitled to vote.

E. <u>AMENDMENTS TO ARTICLES AND BYLAWS.</u> So long as the Series A Preferred Stock is outstanding, the Corporation shall not, without the affirmative vote of the holders of at least majority of all outstanding shares of Series A Preferred Stock, voting separately as a class: (i) amend, alter or repeal any provision of the Articles of Incorporation or the Bylaws of the Corporation so as to adversely affect the designations, preferences, limitations and relative rights of the Series A Preferred Stock or (ii) effect any reclassification of the Series A Preferred Stock.

F. <u>AMENDMENT OF RIGHTS OF PREFERRED STOCK</u>. The Corporation shall not, without the affirmative vote of the holders of at least majority of all outstanding shares of the Series A Preferred Stock, amend, alter or repeal any provision of this Article, PROVIDED, HOWEVER, that the Corporation may, by any means authorized by law and without any vote of the holders of shares of the Series A Preferred Stock, make technical, corrective, administrative or similar changes in this Article that do not, individually or in the aggregate, adversely affect the rights or preferences of the holders of shares of the Series A Preferred Stock.

G. <u>CONVERSION RIGHTS</u> The shares of the Series A Preferred Stock shall have no conversion rights.

H. <u>REDEMPTION RIGHTS.</u> The shares of the Series A Preferred Stock shall have no redemption rights.

I. <u>NOTICES.</u> Any notice required hereby to be given to the Holders of shares of the Series A Preferred Stock shall be deemed given if deposited in the United States mail, postage prepaid, and addressed to each Holder of record at his address appearing on the books of the Corporation.

J. <u>PROTECTIVE PROVISIONS</u>. So long as any shares of Series A Preferred Stock are outstanding, this Corporation shall not without first obtaining the approval (by written consent, as provided by law) of the Holders of at least 66% of the then outstanding shares of Series A Preferred Stock, voting together as a class, except as otherwise provided for in this Designation:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Increase or decrease (other than by redemption or conversion) the total number of authorized shares of Series A Preferred Stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Effect an exchange, reclassification, or cancellation of all or a part of the Series A Preferred Stock, excluding a reverse stock split or forward stock split;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Effect an exchange, or create a right of exchange, of all or part of the shares of another class of shares into shares of Series A Preferred Stock; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Alter or change the rights, preferences or privileges of the shares of Series A Preferred Stock so as to affect adversely the shares of such series, including the rights set forth in this Designation.

PROVIDED, HOWEVER, that the Company may, by any means authorized by law and without any vote of the Holders of shares of the Series A Preferred Stock, make technical, corrective, administrative or similar changes in this Article that do not, individually or in the aggregate, adversely affect the rights or preferences of the Holders of shares of the Series A Preferred Stock.

IN WITNESS WHEREOF, I have hereunto set my hands this 31st day of March 2022, hereby declaring and certifying that the facts stated hereinabove are true.

_______________________________

David Mersky, CEO/Director

---

| | |
|:---|:---|
| ![](image_001.jpg) | **BARBARA K. CEGAVSKE** <br> **Secretary of State** <br> **202 North Carson Street** <br> **Carson City, Nevada 89701-4201**<br> **(775) 684-5708** <br> **Website: www.nvsos.gov** |

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**Certificate of Designation**<br> (PURSUANT TO NRS 78.1955)<br>

---

| | |
|:---|:---|
| **USE BLACK INK ONLY - DO NOT HIGHLIGHT** | **ABOVE SPACE IS FOR OFFICE USE ONLY** |

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**<u>Certificate of Designation For <br> Nevada Profit Corporations</u> <br> (Pursuant to NRS 78.1955)**

1. Name of corporation:

SIBANNAC, INC.

2.. By resolution of the board of directors pursuant to a provision in the articles of incorporation this certificate establishes the following regarding the voting powers, designations, preferences, limitations, restrictions and relative rights of the following class or series of stock.

**CERTIFICATE OF DESIGNATION OF**

**SERIES B CONVERTIBLE PREFERRED STOCK**

**Article I.** Designation, Amount and Par Value.

**Section 1.01** The series of Preferred Stock shall be designated as the Corporation's Series B Convertible Preferred Stock (the "Series B Stock") and the number of shares so designated shall be four hundred thousand (400,000), which shall not be subject to increase without the affirmative vote or written consent of the holders (each a "Holder" and collectively, the "Holders") of at least fifty-one percent (51%) of the Series B Stock issued and outstanding at the time of any such vote or written consent. Each share of Series B Stock shall have par value of $0.001 per share.

3. Effective date of filing: (optional) 05/12/2020

(must not be later than 90 days after the certificate is filed)

4. Signature: (required)

**IMPORTANT:** Failure to include any of the above information and submit with the proper fees may cause this filing to be rejected.

*This form must be accompanied by appropriate fees.*

Nevada Secretary of State Stock Designation

Revised: 1-5-15

CERTIFICATE OF DESIGNATION OF

SERIES B CONVERTIBLE PREFERRED STOCK

Article I. Designation, Amount and Par Value.

Section 1.01 The series of Preferred Stock shall be designated as the Corporation's Series B Convertible Preferred Stock (the "Series B Stock") and the number of shares so designated shall be four hundred thousand (400,000), which shall not be subject to increase without the affirmative vote or written consent of the holders (each a "Holder" and collectively, the "Holders") of at least fifty-one percent (51%) of the Series B Stock issued and outstanding at the time of any such vote or written consent. Each share of Series B Stock shall have par value of $0.001 per share.

Article II. Ranking.

Section 2.01 The Series B Stock shall be, with respect to dividend rights and rights upon liquidation, winding-up or dissolution, rank:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Senior to the Corporation's Common A Stock, $0.001 par value per share ("Common Stock"); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Senior to any and all other classes or series of Preferred Stock of the Corporation, whether authorized now, or at any time in the future, unless any such subordination to any other class or series of Preferred Stock, is expressly agreed to, pursuant to an affirmative vote or written consent of Holders of at least sixty-seven percent (67%) of the Series B Stock issued and outstanding at the time of any such vote or written consent.

Article III. Liquidation Rights.

Section 3.01 With respect to rights on Liquidation (as defined in Section 3.02 of this Article III), the Series B Stock shall rank senior and prior to the any and all classes of series of the Corporation's common stock and to any and all other classes or series of preferred stock of the Corporation, except as otherwise approved by the affirmative vote or written consent of the Holders of at least a sixty-seven percent (67%) of the Series B Stock issued and outstanding at the time of any such vote or written consent. Furthermore, the Corporation may not designate any other class or series of common stock or preferred stock without first obtaining the affirmative vote or consent of the Holders of at least sixty- seven percent (67%) of the Series B Stock issued and outstanding at the time of any such vote or written consent.

Section 3.02 In the event of any liquidation, dissolution or winding-up of the affairs of the Corporation (collectively, a "Liquidation"), the sole participation to which the Holders of shares of Series B Stock then issued and outstanding (the "Series B Stockholders") shall be entitled, out of the assets of the Corporation legally available for distribution to its stockholders, whether from capital, surplus or earnings, to receive, before any payment shall be made to the holders of the Common Stock or any other class or series of preferred stock ranking on Liquidation junior to such Series B Stock, an amount per share equal to the Face Value (as hereinafter defined). If upon any such Liquidation, the remaining assets of the Corporation available for distribution to its shareholders shall be insufficient to pay the Holders of shares of Series B Stock the full amount to which they shall be entitled, the Holders of shares of Series B Stock, and of any class or series of stock ranking upon liquidation on a parity with the Series B Stock, shall share pari passu in any distribution of the remaining assets and funds of the Corporation in proportion to the respective liquidation amounts that would otherwise be payable to the Holders of preferred stock with respect to the shares held by them upon such distribution if all amounts payable on or with respect to such shares were paid in full.

Article IV. Restrictive Legend.

Section 4.01 Any Series B Stock certificate issued in reference to this designation shall bear on its face the following restrictive legend:

THE SHARES REPRESENTED BY THE CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 AND APPLICABLE STATE SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED UNLESS, IN THE OPINION OF COUNSEL SATISFACTORY TO THE ISSUER, THE TRANSFER QUALIFIES FOR AN EXEMPTION FROM OR EXEMPTION TO THE REGISTRATION PROVISIONS THEREOF.

Section 4.02 For purposes of this CERTIFICATE OF DESIGNATION OF SERIES B CONVERTIBLE PREFERRED STOCK, the term "Valid Exemption From or To Registration" shall mean, an exemption from or to registration, under the Securities Act of 1933 and applicable state securities laws and then, only after receipt, by the Corporation, its Transfer Agent and the Holder, of an opinion of counsel which clearly states that such an exemption is available to the Holder.

Article V. ARTICLE V. Conversion and Face Value.

Section 5.01 Any Holder of Series B Stock shall have the right to convert any or all of the Holder's Series B Stock into a number of fully paid and non-assessable shares of Common Stock for each share of Series B Stock so converted, as set forth in this Article V after a minimum of six (6) months from the date of the purchase has passed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Any Series B Stockholder may exercise the right to convert such shares into Common Stock pursuant to this
Article V by delivering to the Corporation during regular business hours, at the office of the Corporation or any transfer agent of the
Corporation or at such other place as may be designated by the Corporation, the certificate or certificates for the shares to be converted
(the "Series B Preferred Certificate"), duly endorsed or assigned in blank to the Corporation (if required by it).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Series B Preferred Certificate shall be accompanied by written notice (the "Conversion Demand")
stating that such Holder elects to convert such shares and stating the name or names (with address) in which the certificate or certificates
for the shares of Common Stock (the "Common Certificate") are to be issued. Such conversion shall be deemed be effected on
the date when such delivery is made, and such date is referred to herein as the "Conversion Date."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) As promptly as practicable thereafter, the Corporation shall issue and deliver to or upon the written
order of such Holder, at the place designated by such Holder, a certificate or certificates for the number of shares of Common Stock calculated
pursuant to this Article V, to which such Holder is entitled.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The person in whose name the certificate or certificates for Common Stock are to be issued shall be
deemed to have become a Holder of record of Common Stock on the applicable Conversion Date, unless the transfer books of the Corporation
are closed on such Conversion Date, in which event the Holder shall be deemed to have become the stockholder of record on the next succeeding
date on which the transfer books are open, provided that the Conversion Ratio (as hereinafter defined) shall be the Conversion Ratio in
effect on the Conversion Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Upon conversion of only a portion of the number of shares covered by a Series B Preferred
 Certificate, the Corporation shall issue and deliver to, or upon the written order of, the Holder of such Series B Preferred
 Certificate, at the expense of the Corporation, a new certificate covering the number of shares of the Series B Stock representing
 the unconverted portion of the Series B Preferred Certificate, which new certificate
shall entitle the Holder thereof to all the rights, powers and privileges of a Holder of such shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The number of shares of Common Stock to be issued pursuant to a Conversion Demand shall be the number
that is eighty-percent (80%) of the closing stock price of the Company's Common Stock on the five (5) trading days prior to the
date of any Conversion Demand, divided into the Face Value (the "Conversion Ratio"). Any fractional shares calculated and
issued pursuant to this Section 5 shall be rounded up to the nearest whole share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) In no event shall the Conversion Ratio be less than the Minimum and nor greater than the Maximum Conversion
Ratios listed on any subscription to Series B Stock. If no Minimum nor Maximum Conversion Ratios are listed on the subscription to Series
B Stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Minimum Conversion Ratio shall be twenty (20); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Maximum Conversion Ratios shall be one hundred (100).

Section 5.02 The Corporation shall pay all documentary, stamp or other transactional taxes (excluding income taxes) attributable to the issuance or delivery of shares of capital stock of the Corporation upon conversion of any shares of Series B Stock; provided, however, that the Corporation shall not be required to pay any taxes which may be payable in respect of any transfer involved in the issuance or delivery of any certificate for such shares in a name other than that of the Holder of the Series B Stock in respect of which such shares of Common Stock are being issued.

Section 5.03 The Corporation shall reserve out of its authorized, but unissued, shares of Common Stock, solely for the purpose of effecting the conversion of the Series B Stock, sufficient shares of Common Stock to provide for the conversion of all outstanding shares of Series B Stock.

Section 5.04 All shares of Common Stock which may be issued in connection with the conversion provisions set forth herein will, upon issuance by the Corporation, be validly issued, fully paid and non- assessable, not subject to any preemptive or similar rights and free from all taxes, liens or charges with respect thereto created or imposed by the Corporation.

Section 5.05 In no event, shall a Holder of any Series B Stock be allowed to convert such shares of Series B Stock into Common Stock which, upon giving effect to such conversion, would cause the aggregate number of shares of Common Stock beneficially owned by the Holder, and/or its affiliates, to exceed four and nine tenths percent (4.9%) of the currently issued and outstanding shares of the Corporation. In reference to the written notice of election to convert required by Article V Section 5.01

(b) above, the Holder shall affirm in that notice, under penalty of perjury, the exact number of shares held by the Holder on the date of the notice and the Corporation shall have the right to reduce any demand for conversion by a number such that the total number of shares of Common Stock held by the Holder after conversion will not exceed four and nine tenths percent (4.9%) of the currently issued and outstanding shares of Common Stock of the Corporation.

Section 5.06 No shares may be converted prior to the filing of a Definitive Schedule 14C with the Securities Exchange Commission (the "SEC") increasing the number of authorized shares of the Corporation's Common Stock in an amount no less than one hundred and twenty million (120,000,000) shares (subject to any stock splits, subdivisions, recapitalizations, or combinations completed after the date of the filing of this Certificate of Designation with the Nevada Secretary of State).

Section 5.07 Anti-Dilution Provisions. In the event of a forward and/or reverse split of the outstanding shares of the Company's Common Stock, the following provisions shall apply:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In the event that the Company shall at any time subdivide the outstanding shares of Common Stock, or
shall issue a stock dividend on the outstanding Common Stock, the Minimum and Maximum Conversion Ratios in effect immediately prior to
such subdivision or the issuance of such dividend shall be proportionately increased and shall continue to be proportionately increased
through any subsequent subdivision, subdivisions, issuance or issuances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event that the Company shall at any time combine the outstanding shares of Common Stock, the
Minimum and Maximum Conversion Ratios in effect immediately prior to such subdivision or the issuance of such dividend shall be proportionately
decreased and shall continue to be proportionately decreased through any subsequent combination, or combinations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In no event may the Corporation combine or divide the number of shares of Series B Stock outstanding,
nor change the authorized number of shares of Series B Stock, except as otherwise approved by the affirmative vote or written consent
of the Holders of at least a fifty- one percent (51%) of the Series B Stock issued and outstanding at the time of any such vote or written
consent.

Section 5.08 As used herein, the term "Face Value" shall mean Five Dollars ($5.00) per share of Series B Stock.

Article VI. Voting Rights.

Section 6.01 A Holder of Series B Stock shall not be entitled to vote on any matter presented to the Common stockholders of the Company for their action or consideration.

Section 6.02 Series B Stockholders are entitled to vote only on matters relating to modifications, adjustments, waivers or other changes or matters relating to Series B Stock. Each Series B Stock share shall have one (1) vote on matters relating to Series B Stock.

Article VII. Certain Covenants.

Section 7.01 Any Holder of Series B Stock may proceed to protect and enforce its rights and the rights of such Holders by any available remedy by proceeding at law or in equity, whether for the specific enforcement of any provision in this Certificate of Designation or in aid of the exercise of any power granted herein, or to enforce any other proper remedy.

Article VIII. Dividends.

Section 8.01 The Series B Stock shall pay an eight percent (8.0%) quarterly dividend on its face value, payable in cash or Series B Stock at the Corporations sole discretion.

Article IX. Notice to the Corporation.

Section 9.01 All notices and other communications required or permitted to be given to the Corporation hereunder shall be made by first-class mail, postage prepaid, to the Corporation at its principal executive offices as may be fixed from time to time by the Board of Directors. Any notice to a Holder shall me made to their address as set forth on the books and records of the Corporation.

**DESIGNATION OF SERIES D CONVERTIBLE PREFERRED STOCK** 

Article I. Designation, Amount and Par Value.

**Section 1.01** The series of Preferred Stock shall be designated as the Corporation's Series D Convertible Preferred Stock (the "Series D Stock") and the number of shares so designated shall be one million, two hundred thousand (1,200,000), which shall not be subject to increase without the affirmative vote or written consent of the holders (each a "Holder" and collectively, the "Holders") of at least fifty-one percent (51%) of the Series D Stock issued and outstanding at the time of any such vote or written consent. Each share of Series D Stock shall have a par value of $0.001 per share.

Article II. Ranking.

**Section 2.01** The Series D Stock shall be, with respect to dividend rights and rights upon liquidation, winding-up, or dissolution, rank:

&nbsp;&nbsp;&nbsp;&nbsp;(a) Senior to the Corporation's Common A Stock, $0.001 par value per share ("Common Stock"); and

&nbsp;&nbsp;&nbsp;&nbsp;(b) Subordinate to all other classes or series of Preferred Stock of the Corporation, whether authorized now or at any time in the future,
unless any such subordination to any other class or series of Preferred Stock, is expressly agreed to, pursuant to an affirmative vote
or written consent of Holders of at least sixty-seven percent (67%) of the Series D Stock issued and outstanding at the time of any such
vote or written consent.

Article III. Liquidation Rights.

**Section 3.01** With respect to rights on Liquidation (as defined in Section 3.04 of this Article III), the Series D Stock shall rank senior and prior to the any and all classes of series of the Corporation's common stock and equal to any and all other classes or series of preferred stock of the Corporation, except as otherwise approved by the affirmative vote or written consent of the Holders of at least a sixty-seven percent (67%) of the Series D Stock issued and outstanding at the time of any such vote or written consent.

**Section 3.02** In the event of any liquidation, dissolution or winding-up of the affairs of the Corporation (collectively, a "Liquidation"), the sole participation to which the Holders of shares of Series D Stock then issued and outstanding (the "Series D Stockholders") shall be entitled, out of the assets of the Corporation legally available for distribution to its stockholders, whether from capital, surplus or earnings, to receive, before any payment shall be made to the holders of the Common Stock or any other class or series of preferred stock ranking on Liquidation junior to such Series D Stock, an amount per share equal to the Face Value (as hereinafter defined). If upon any such Liquidation, the remaining assets of the Corporation available for distribution to its shareholders shall be insufficient to pay the Holders of shares of Series D Stock the full amount to which they shall be entitled, the Holders of shares of Series D Stock, and of any class or series of stock ranking upon liquidation on a parity with the Series D Stock, shall share pari passu in any distribution of the remaining assets and funds of the Corporation in proportion to the respective liquidation amounts that would otherwise be payable to the Holders of preferred stock with respect to the shares held by them upon such distribution if all amounts payable on or with respect to such shares were paid in full.

Article IV. Restrictive Legend.

**Section 4.01** Any Series D Stock certificate issued in reference to this designation shall bear on its face the following restrictive legend:

THE SHARES REPRESENTED BY THE CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 AND APPLICABLE STATE SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED UNLESS, IN THE OPINION OF COUNSEL SATISFACTORY TO THE ISSUER, THE TRANSFER QUALIFIES FOR AN EXEMPTION FROM OR EXEMPTION TO THE REGISTRATION PROVISIONS THEREOF.

**Section 4.03** For purposes of this CERTIFICATE OF DESIGNATION OF SERIES D CONVERTIBLE PREFERRED STOCK, the term "Valid Exemption From or To Registration" shall mean, an exemption from or to registration, under the Securities Act of 1933 and applicable state securities laws and then, only after receipt, by the Corporation, its Transfer Agent, and the Holder, of an opinion of counsel which clearly states that such an exemption is available to the Holder.

Article V. ARTICLE V. Conversion and Face Value.

**Section 5.01** Any Holder of Series D Stock shall have the right to convert any or all of the Holder's Series D Stock into a number of fully paid and non-assessable shares of Common Stock for each share of Series D Stock so converted, as set forth in this Article V at any time.

&nbsp;&nbsp;&nbsp;&nbsp;(a) Any Series D Stockholder may exercise the right to convert such shares into Common Stock pursuant to this Article V by delivering
to the Corporation during regular business hours, at the office of the Corporation or any transfer agent of the Corporation or at such
other place as may be designated by the Corporation, the certificate or certificates for the shares to be converted (the "Series
D Preferred Certificate"), duly endorsed or assigned in blank to the Corporation (if required by it).

&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Series D Preferred Certificate shall be accompanied by written notice (the "Conversion Demand") stating that such
Holder elects to convert such shares and stating the name or names (with address) in which the certificate or certificates for the shares
of Common Stock (the "Common Certificate") are to be issued. Such conversion shall be deemed be effected on the date when
such delivery is made, and such date is referred to herein as the "Conversion Date."

&nbsp;&nbsp;&nbsp;&nbsp;(c) As promptly as practicable thereafter, the Corporation shall issue and deliver to or upon the written order of such Holder, at the
place designated by such Holder, a certificate or certificates for the number of shares of Common Stock calculated pursuant to this Article
V, to which such Holder is entitled.

&nbsp;&nbsp;&nbsp;&nbsp;(d) The person in whose name the certificate or certificates for Common Stock are to be issued shall be deemed to have become a Holder
of record of Common Stock on the applicable Conversion Date, unless the transfer books of the Corporation are closed on such Conversion
Date, in which event the Holder shall be deemed to have become the stockholder of record on the next succeeding date on which the transfer
books are open, provided that the Conversion Ratio (as hereinafter defined) shall be the Conversion Ratio in effect on the Conversion
Date.

&nbsp;&nbsp;&nbsp;&nbsp;(e) Upon conversion of only a portion of the number of shares covered by a Series D Preferred Certificate, the Corporation shall issue
and deliver to, or upon the written order of, the Holder of such Series D Preferred Certificate, at the expense of the Corporation, a
new certificate covering the number of shares of the Series D Stock representing the unconverted portion of the Series D Preferred Certificate,
which new certificate shall entitle the Holder thereof to all the rights, powers and privileges of a Holder of such shares.

&nbsp;&nbsp;&nbsp;&nbsp;(f) The number of shares of Common Stock to be issued pursuant to a Conversion Demand shall be sixty (60) shares per each share of Series
D Stock surrendered for conversion under this Section 5 (the "Conversion Ratio").

**Section 5.02** The Corporation shall pay all documentary, stamp, or other transactional taxes (excluding income taxes) attributable to the issuance or delivery of shares of capital stock of the Corporation upon conversion of any shares of Series D Stock; provided, however, that the Corporation shall not be required to pay any taxes which may be payable in respect of any transfer involved in the issuance or delivery of any certificate for such shares in a name other than that of the Holder of the Series D Stock in respect of which such shares of Common Stock are being issued.

**Section 5.03** The Corporation shall reserve out of its authorized, but unissued, shares of Common Stock, solely for the purpose of effecting the conversion of the Series D Stock, sufficient shares of Common Stock to provide for the conversion of all outstanding shares of Series D Stock.

**Section 5.04** All shares of Common Stock that may be issued in connection with the conversion provisions set forth herein will, upon issuance by the Corporation, be validly issued, fully paid and non-assessable, not subject to any preemptive or similar rights, and free from all taxes, liens or charges with respect thereto created or imposed by the Corporation.

**Section 5.05** In no event, shall a Holder of any Series D Stock be allowed to convert such shares of Series D Stock into Common Stock which, upon giving effect to such conversion, would cause the aggregate number of shares of Common Stock beneficially owned by the Holder, and/or its affiliates, to exceed nine and nine-tenths percent (9.9%) of the currently issued and outstanding shares of the Corporation. In reference to the written notice of election to convert required by Article V Section 5.01 (b) above, the Holder shall affirm in that notice, under penalty of perjury, the exact number of shares held by the Holder on the date of the notice and the Corporation shall have the right to reduce any demand for conversion by a number such that the total number of shares of Common Stock held by the Holder after conversion will not exceed nine and nine-tenths percent (9.9%) of the currently issued and outstanding shares of Common Stock of the Corporation.

**Section 5.06** Anti-Dilution Provisions. In the event of a forward and/or reverse split of the outstanding shares of the Company's Common Stock, the following provisions shall apply:

&nbsp;&nbsp;&nbsp;&nbsp;(g) If the Company shall at any time subdivide the outstanding shares of Common Stock or shall issue a stock dividend on the outstanding
Common Stock, the Conversion Ratio in effect immediately prior to such subdivision or the issuance of such dividend shall be proportionately
increased and shall continue to be proportionately increased through any subsequent subdivision, subdivisions, issuance or issuances.

&nbsp;&nbsp;&nbsp;&nbsp;(h) If the Company shall at any time combine the outstanding shares of Common Stock, the Conversion Ratio in effect immediately prior
to such subdivision or the issuance of such dividend shall be proportionately decreased and shall continue to be proportionately decreased
through any subsequent combination, or combinations.

&nbsp;&nbsp;&nbsp;&nbsp;(i) In no event may the Corporation combine or divide the number of shares of Series D Stock outstanding, nor change the authorized number
of shares of Series D Stock, except as otherwise approved by the affirmative vote or written consent of the Holders of at least a fifty-one
percent (51%) of the Series D Stock issued and outstanding at the time of any such vote or written consent.

**Section 5.07** As used herein, the term "Face Value" shall mean One Dollar ($1.00) per share of Series D Stock.

Article VI. Voting Rights.

**Section 6.01** A Holder of Series D Stock shall not be entitled to vote on any matter presented to the Common stockholders of the Company for their action or consideration.

**Section 6.02** Series D Stockholders are entitled to vote only on matters relating to modifications, adjustments, waivers, or other changes or matters relating to Series D Stock. Each Series D Stock share shall have one (1) vote on matters relating to Series D Stock.

Article VII. Certain Covenants.

**Section 7.01** Any Holder of Series D Stock may proceed to protect and enforce its rights and the rights of such Holders by any available remedy by proceeding at law or in equity, whether for the specific enforcement of any provision in this Certificate of Designation or in aid of the exercise of any power granted herein or to enforce any other proper remedy.

Article VIII. Dividends.

**Section 8.01** The Series D Stock shall pay an eight percent (8.0%) quarterly dividend on its face value, payable in cash or Series D Stock in the Corporation's sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;(a) The Corporation will not declare, pay or set aside any dividends on, redeem or repurchase in any manner (including, without limitation,
pursuant to redemption, repurchase or put rights or an election to receive consideration in lieu of conversion), shares of any other class
or series of capital stock of the Corporation, including, without limitation, on any Junior Securities unless (in addition to the obtaining
of any consents required elsewhere in the Articles of Incorporation) the holders of the Series D Stock then outstanding first receive,
or simultaneously receive, a dividend on each outstanding share of Series D Stock in an amount at least equal to the amount of the aggregate
Mandatory Dividends then accrued on such share of Series D Stock and not previously paid.

&nbsp;&nbsp;&nbsp;&nbsp;(b) "Junior Securities" means all other classes or series of the Corporation's Common or Preferred Stock and any future
capital stock of the Corporation the terms of which, subject to compliance with the rights, privileges, and preferences of the Series
D Stock, do not specifically provide that they are senior to or on parity with the Series D Stock. Any capital stock of the Corporation
that purports to be senior to any of the rights, preferences, powers, privileges and restrictions, qualifications, and limitations of
the Series D Stock and that were not approved by the holders of the Series D Stock in accordance with Article II hereof shall be deemed
to be Junior Securities.

Article IX. Notice to the Corporation.

**Section 9.01** All notices and other communications required or permitted to be given to the Corporation hereunder shall be made by first-class mail, postage prepaid, to the Corporation at its principal executive offices as may be fixed from time to time by the Board of Directors. Any notice to a Holder shall me made to their address as set forth on the books and records of the Corporation.

## Ex1A-4

**EXHIBIT 4.1**

**SUBSCRIPTION DOCUMENTS**

**SIBANNAC, INC.**

**a Nevada Corporation**

**$0.15 per Unit\***

**27,000,000 Units,** 

**Each unit consisting of 5 Shares of Common Stock and 1 Warrant exercisable at $0.06 per Warrant.**

**Minimum Investment: 10,000 Units** 

**INSTRUCTIONS FOR SUBSCRIPTION**

**To Subscribe**

1. Subscription Agreement

Please execute the signature page and return with the Investor Questionnaire.

2. Investor Questionnaire

Please complete and return with your executed Subscription Agreement.

3. Please make check payable to: **Sibannac, Inc.** 

4. Please mail subscription documents and checks to: Sibannac, Inc.

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| | |
|:---|:---|
| **By Mail:** | **By hand or overnight courier:** |
| Sibannac, Inc.<br> 9535 E. Doubletree Ranch Rd. Ste, 120<br> Scottsdale, AZ 85258<br> USA | Sibannac, Inc.<br> 9535 E. Doubletree<br> Ranch Rd. Ste, 120<br> Scottsdale, AZ 85258<br> USA |

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Office Phone # (408) 407-6445

**SUBSCRIPTION AGREEMENT**

Name of Investor:_______________________________________

(Print)

David Mersky, President

Sibannac, Inc.

9535 E. Doubletree Ranch Rd., Ste 120

Scottsdale, AZ 85258

USA

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| | |
|:---|:---|
| **Re:** | **<u>SIBANNAC, INC. – *27,000,000 Units* each consisting of five Shares of Common Stock and one Warrant (the "Units")</u>** |

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Gentlemen:

1. *Subscription.* The undersigned hereby tenders this subscription and applies to purchase the number of Units in Sibannac, Inc., a Nevada corporation (the "Company") indicated below, pursuant to the terms of this Subscription Agreement. The offering price is $0.15 per Unit, payable in cash in full upon subscription. The undersigned further sets forth statements upon which you may rely to determine the suitability of the undersigned to purchase the Units. The undersigned understands that the Units are being offered pursuant to the Offering Circular, dated February 7, 2023 and its exhibits (the "Offering Circular"). In connection with this subscription, the undersigned represents and warrants that the personal, business and financial information contained in the Purchaser Questionnaire is complete and accurate and presents a true statement of the undersigned's financial condition.

2. *Representations and Understandings.* The undersigned hereby makes the following representations, warranties and agreements and confirms the following understandings:

(i) The undersigned has received a copy of the Offering Circular, has reviewed it carefully, and has had an opportunity to question representatives of the Company and obtain such additional information concerning the Company as the undersigned requested.

(ii) The undersigned has sufficient experience in financial and business matters to be capable of utilizing such information to evaluate the merits and risks of the undersigned's investment, and to make an informed decision relating thereto; or the undersigned has utilized the services of a purchaser representative and together they have sufficient experience in financial and business matters that they are capable of utilizing such information to evaluate the merits and risks of the undersigned's investment, and to make an informed decision relating thereto.

(iii) The undersigned has evaluated the risks of this investment in the Company, including those risks particularly described in the Offering Circular, and has determined that the investment is suitable for him/her. The undersigned has adequate financial resources for an investment of this character, and at this time he/she could bear a complete loss of his/her investment without a change in lifestyle. The undersigned understands that any projections which may be made in the Offering Circular are mere estimates and may not reflect the actual results of the Company's operations.

(iv) The undersigned understands that the Units are not being registered under the Securities Act of 1933, as amended (the "1933 Act") on the ground that the issuance thereof is exempt under Regulation A of Section 3(b) of the 1933 Act, and that reliance on such exemption is predicated in part on the truth and accuracy of the undersigned's representations and warranties, and those of the other purchasers of Units.

(v) The undersigned understands that the Units are not being registered under the securities laws of certain states on the basis that the issuance thereof is exempt as an offer and sale not involving a registerable public offering in such state, since the Units are "covered securities" under the National Securities Market Improvement Act of 1996. The undersigned understands that reliance on such exemptions is predicated in part on the truth and accuracy of the undersigned's representations and warranties and those of other purchasers of Units. The undersigned covenants not to sell, transfer or otherwise dispose of a Unit unless such Unit has been registered under the applicable state securities laws, or an exemption from registration is available.

(vi) The amount of this investment by the undersigned does not exceed 10% of the greater of the undersigned's net worth, not including the value of his/her primary residence, or his/her annual income in the prior full calendar year, as calculated in accordance with Rule 501 of Regulation D promulgated under Section 4(a)(2) of the Securities Act of 1933, as amended, or the undersigned is an "accredited investor," as that term is defined in Rule 501 of Regulation D promulgated under Section 4(a)(2) of the Securities Act of 1933, as amended (see the attached Purchaser Questionnaire), or is the beneficiary of a fiduciary account, or, if the fiduciary of the account or other party is the donor of funds used by the fiduciary account to make this investment, then such donor, who meets the requirements of net worth, annual income or criteria for being an "accredited investor."

(vii) The undersigned has no need for any liquidity in his/her investment and is able to bear the economic risk of his investment for an indefinite period of time. The undersigned has been advised and is aware that: (a) there is no public market for the Units and a public market for the Units may not develop; (b) it may not be possible to liquidate the investment readily; and (c) the Units have not been registered under the 1933 Act and applicable state law and an exemption from registration for resale may not be available.

(viii) All contacts and contracts between the undersigned and the Company regarding the offer and sale to him/her of Units have been made within the state indicated below his/her signature on the signature page of this Subscription Agreement and the undersigned is a resident of such state.

(ix) The undersigned has relied solely upon the Offering Circular and independent investigations made by him/her or his/her purchaser representative with respect to the Units subscribed for herein, and no oral or written representations beyond the Offering Circular have been made to the undersigned or relied upon by the undersigned.

(x) The undersigned agrees not to transfer or assign this subscription or any interest therein.

(xi) The undersigned hereby acknowledges and agrees that, except as may be specifically provided herein, the undersigned is not entitled to withdraw, terminate or revoke this subscription.

(xii) If the undersigned is a partnership, corporation or trust, it has been duly formed, is validly existing, has full power and authority to make this investment, and has not been formed for the specific purpose of investing in the Units. This Subscription Agreement and all other documents executed in connection with this subscription for Units are valid, binding and enforceable agreements of the undersigned.

(xiii) The undersigned meets any additional suitability standards and/or financial requirements which may be required in the jurisdiction in which he/she resides or is purchasing in a fiduciary capacity for a person or account meeting such suitability standards and/or financial requirements and is not a minor.

3. *Indemnification.* The undersigned hereby agrees to indemnify and hold harmless the Company and all of its affiliates, attorneys, accountants, employees, officers, directors, Shareholders and agents from any liability, claims, costs, damages, losses or expenses incurred or sustained by them as a result of the undersigned's representations and warranties herein or in the Purchaser Questionnaire being untrue or inaccurate, or because of a breach of this agreement by the undersigned. The undersigned hereby further agrees that the provisions of Section 3 of this Subscription Agreement will survive the sale, transfer or any attempted sale or transfer of all or any portion of the Units. The undersigned hereby grants to the Company the right to set off against any amounts payable by the Company to the undersigned, for whatever reason, of any and all damages, costs and expenses (including, but not limited to, reasonable attorney's fees) which are incurred by the Company or any of its affiliates as a result of matters for which the Company is indemnified pursuant to Section 3 of this Subscription Agreement.

4. *Taxpayer Identification Number/Backup Withholding Certification*. Unless a subscriber indicates to the contrary on the Subscription Agreement, he/she will certify that his taxpayer identification number is correct and, if not a corporation, IRA, Keogh, or Qualified Trust (as to which there would be no withholding), he/she is not subject to backup withholding on interest or dividends. If the subscriber does not provide a taxpayer identification number certified to be correct or does not make the certification that the subscriber is not subject to backup withholding, then the subscriber may be subject to twenty-eight percent (28%) withholding on interest or dividends paid to the holder of the Units.

5. *Foreign Investors*. The undersigned hereby represents and warrants that the undersigned is not (i) named on the list of "specially designated nationals" or "blocked persons" maintained by the U.S. Office of Foreign Assets Control ("OFAC") at www.ustreas.gov/offices/enforcement/ofac/sdn or as otherwise published from time to time, (ii) an agency of the government of a Sanctioned Country, (iii) an organization controlled by a Sanctioned Country, (iv) a person residing in a Sanctioned Country, to the extent subject to a sanctions program administered by OFAC, (v) a person who owns more than fifteen percent (15%) of its assets in Sanctioned Countries, or (vi) a person who derives more than fifteen percent (15%) of its operating income from investments in, or transactions with, sanctioned persons or Sanctioned Countries. A "Sanctioned Country" means a country subject to a sanctions program identified on the list maintained by OFAC and available at www.ustreas.gov/offices/enforcement/ofac/sdn or as otherwise published from time to time.

6. *Governing Law.* This Subscription Agreement will be governed by and construed in accordance with the laws of the State of Nevada. The venue for any legal action under this Agreement will be in the proper forum in the County of Clark, State of Nevada. This provision does not, nor is intended to, apply to claims under the Federal securities laws. This exclusive legal forum provision could add significant cost, discourage claims, and limits the ability of investors to bring a claim in a more favorable legal forum or jurisdiction. This provision does not apply to purchasers in secondary transactions.

7. *Acknowledgement of Risks Factors.* The undersigned has carefully reviewed and thoroughly understands the risks associated with an investment in the Units as described in the Offering Circular. The undersigned acknowledges that this investment entails significant risks.

The undersigned has (have) executed this Subscription Agreement on this _____ day of ____________________,

20______, at **___________________________________**.

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| | |
|:---|:---|
| SUBSCRIBER (1) | SUBSCRIBER (2) |
| Signature | Signature |
| (Print Name of Subscriber) | (Print Name of Subscriber) |
| (Street Address) | (Street Address) |
| (City, State and Zip Code) | (City, State and Zip Code) |
| (Social Security or Tax Identification Number) | (Social Security or Tax Identification Number) |

---

Number of Units ____________

Dollar Amount of Units (At $______ per Unit) ____________________________

PLEASE MAKE CHECKS PAYABLE TO: **"SIBANNAC, INC."**

**MANNER IN WHICH TITLE IS TO BE HELD:**

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| | | | |
|:---|:---|:---|:---|
| /_/ | Community Property\* | /_/ | Individual Property |
| /_/ | Joint Tenancy With Right of Survivorship\* | /_/ | Separate Property |
| /_/ | Corporate or Fund Owners\*\* | /_/ | Tenants-in-Common\* |
| /_/ | Pension or Profit Sharing Plan | /_/ | Tenants-in-Entirety\* |
| /_/ | Trust or Fiduciary Capacity (trust documents must accompany this form) | /_/ | Keogh Plan |
| /_/ | Fiduciary for a Minor | /_/ | Individual Retirement Account |
|  |  | /_/ | Other (Please indicate) |
|  | \* Signature of all parties required |  |  |
|  | \*\* In the case of a Fund, state names of all partners. |  | |

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**SUBSCRIPTION ACCEPTED:**

**SIBANNAC, INC.**

By: David Mersky, President Date

**SIBANNAC, INC.**

**PURCHASER QUESTIONNAIRE**

David Mersky, President

Sibannac, Inc.

9535 E. Doubletree Ranch Rd., Ste 120.

Scottsdale, AZ 85258

**Re: <u>SIBANNAC, INC.</u>**

Gentlemen:

The following information is furnished to you in order for you to determine whether the undersigned is qualified to purchase Units consisting of five shares of common stock and one warrant (the "Units") in the above referenced Company pursuant to Section 3(b) of the Securities Act of 1933, as amended (the "Act"), Regulation A promulgated thereunder, and appropriate provisions of applicable state securities laws. I understand that you will rely upon the following information for purposes of such determination, and that the Units will not be registered under the Act in reliance upon the exemption from registration provided by Section 3(b) of the Act, Regulation A, and appropriate provisions of applicable state securities laws.

ALL INFORMATION CONTAINED IN THIS QUESTIONNAIRE WILL BE TREATED CONFIDENTIALLY. However, I agree that you may present this questionnaire to such parties as you deem appropriate if called upon to establish that the proposed offer and sale of the Units is exempt from registration under the Act or meets the requirements of applicable state securities laws.

I hereby provide you with the following representations and information:

1. Name: ____________________________________________________________________________

2. Residence Address & Telephone No: ____________________________________________________

3. Mailing Address: ____________________________________________________________________

3a. Email Address:_____________________________________________________________________

4. Employer and Position: _______________________________________________________________

5. Business Address & Telephone No: _____________________________________________________

6. Business or Professional Education & Degree: _____________________________________________

7. Prior Investments of Purchaser:

Amount (Cumulative) $______________________ *(initial appropriate category below)*:

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| | | | | |
|:---|:---|:---|:---|:---|
| <br> **Capital Stock:** | /_/ None<br> *(Initial)* | /_/ Up to $50,000<br> *(Initial)* | /_/ $50,000 to $250,000<br> *(Initial)* | /_/ Over $250,000<br> *(Initial)* |
| <br> **Bonds:** | /_/ None<br> *(Initial)* | /_/ Up to $50,000<br> *(Initial)* | /_/ $50,000 to $250,000<br> *(Initial)* | /_/ Over $250,000<br> *(Initial)* |
| <br> **Other:** | /_/ None<br> *(Initial)* | /_/ Up to $50,000<br> *(Initial)* | /_/ $50,000 to $250,000<br> *(Initial)* | /_/ Over $250,000<br> *(Initial)* |

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8. Based on the definition of an "Accredited Investor" which appears below, I am an Accredited Investor:

/_/ Yes /_/ No

*(initial appropriate category)*

I understand that the representations contained in this section are made for the purpose of qualifying me as an accredited investor as the term is defined by the Securities and Exchange Commission for the purpose of selling securities to me. I hereby represent that the statement or statements initialed below are true and correct in all respects. I am an Accredited Investor because I fall within one of the following categories *(initial appropriate category)*:

/_/ A natural person whose individual net worth, or joint net worth with that person's spouse, at the time of his purchase exceeds $1,000,000, <u>not</u> including the value of the person's primary residence;

/_/ A natural person who had an individual income in excess of $200,000 in each of the two most recent years and who reasonably expects an income in excess of $200,000 in the current year;

/_/ My spouse and I have had joint income for the most two recent years in excess of $300,000 and we expect our joint income to be in excess of $300,000 for the current year;

/_/ Any organization described in Section 501(c)(3) of the Internal Revenue Code, or any corporation, Massachusetts Business Trust or Fund not formed for the specific purpose of acquiring the securities offered, with total assets in excess of $5,000,000;

/_/ A bank as defined in Section 3(a)(2) of the Securities Act whether acting in its individual or fiduciary capacity; insurance company as defined in Section 2(12) of the Securities Act, investment company registered under the Investment Company Act of 1940 or a business development company as defined in Section 2(1)(48) of that Act; or Small Business Investment Company licensed by the U.S. Small Business Administration under Section 301(c) or (d) of the Small Business Investment Act of 1958;

/_/ A private business development company as defined in Section 202(a)(22) of the Investment Advisers Act of 1940;

/_/ An employee benefit plan within the meaning of Title I of the Employee Retirement Income Security Act of 1974, if the investment decision is to be made by a plan fiduciary, as defined in Section 3(21) of such Act, which is either a bank, insurance company, or registered investment adviser, or if the employee benefit plan has total assets in excess of $5,000,000;

/_/ An entity in which all of the equity owners are Accredited Investors under the above paragraph.

9. Financial Information:

(a) My net worth (<u>not</u> including the value of my primary residence) is

$_________________

(b) My gross annual income during the preceding two years was:

$_________________ (2021)

$_________________ (2020)

(c) My anticipated gross annual income in 2022 is $_______________.

(d) (1) (*initial here)* /_/ I have such knowledge and experience in financial, tax and business matters that I am capable of utilizing the information made available to me in connection with the offering of the Units to evaluate the merits and risks of an investment in the Units, and to make an informed investment decision with respect to the Units. I do not desire to utilize a Purchaser Representative in connection with evaluating such merits and risks. I understand, however, that the Company may request that I use a Purchaser Representative.

(2) (*initial here) /_/* I intend to use the services of the following named person(s) as Purchaser Representative(s) in connection with evaluating the merits and risks of an investment in the Units and hereby appoint such person(s) to act as my Purchaser Representative(s) in connection with my proposed purchase of Units.

List name(s) of Purchaser Representative(s), if applicable. __________________________________

10. Except as indicated below, any purchases of the Units will be solely for my account, and not for the account of any other person or with a view to any resale or distribution thereof.

11. I represent to you that the information contained herein is complete and accurate and may be relied upon by you. I understand that a false representation may constitute a violation of law, and that any person who suffers damage as a result of a false representation may have a claim against me for damages. I will notify you immediately of any material change in any of such information occurring prior to the closing of the purchase of Units, if any, by me.

Name (Please Print): _________________________________________________________________

Signature __________________________________________________________________________

Telephone Number __________________________________________________________________

Social Security or Tax I.D. Number _____________________________________________________

Executed at: ________________________________________________________________________

on this ________ day of _________________________________, 20________

## Ex1A-6

**Exhibit 6.3**

**ASSET PURCHASE AGREEMENT**

**This Asset Purchase Agreement** (this "**Agreement**") is made and entered into as of November 8, 2022, by and among **SIBANNAC, INC.**, a Nevada corporation ("**Buyer**"), and **NOHO, INC.**, a Wyoming corporation ("**Seller" or "Company**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Seller is a manufacturer, marketer and seller of wellness products (the "**Business**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Seller desires to sell, assign, convey and hypothecate to Buyer, and Buyer desires to purchase and assume from Seller, those certain assets of Seller described herein related to the Business on the terms and conditions set forth in this Agreement.

**Now, Therefore**, in consideration of the foregoing premises and the mutual representations, warranties and agreements set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

**1. Sale and Transfer of Assets and Assumption of Certain Liabilities.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1 Assets.**

(a) <u>Acquired Assets</u>. On the terms and subject to the conditions set forth in this Agreement, on the Closing Date (as hereinafter defined in <u>Section 1.3</u>) the Seller shall convey, transfer, assign, sell and deliver to Buyer, and Buyer shall acquire, accept and purchase, all of the assets, properties and rights of Seller used or useful in the Business, including without limitation those assets listed on <u>Schedule 1</u> (the "**Acquired Assets**"). The Acquired Assets include all intellectual property of Seller's NOHO brand and Vestra, LLC, an Arizona Limited Liability Company. The Acquired Asset in Vestra, LLC includes the website known as : www.rad8life.com.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Excluded Assets</u>. There are no excluded assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2 Assumption of Certain Liabilities**. This transaction includes certain liabilities of Seller as listed in Schedule 1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.3 Closing**. The closing of the sale and purchase of the Acquired Assets (the "**Closing**") will take place at the corporate offices of Sibannac, Inc., at 9535 E Doubletree Ranch Road, STE 120, Scottsdale, AZ 85258, on the date of above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.4 Purchase Price**. The purchase price is set forth in Sec. 1.2 (the "**Purchase Price**").

**2. Representations and Warranties of Seller**. Each representation and warranty contained in this <u>Section 2</u> is qualified by the disclosures made in the disclosure schedule attached hereto as <u>Schedule 2</u> (the "**Disclosure Schedule**"). This <u>Section 2</u> and the Disclosure Schedule shall be read together as an integrated provision. The representations and warranties of the Seller below are limited to the knowledge of the Seller except to the extent that any such representation and/or warranty relates to the organization, good standing, authority, absence of conflict or violation, required consents, labor and employment solely with respect to the Seller. Seller represents and warrants to Buyer that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.1 Organization and Good Standing**. Seller is a corporation duly organized, validly existing and in good standing under the laws of the State of Wyoming, with full corporate power and authority to carry on the Business as it is now and has since its organization been conducted and as proposed to be conducted, and to own, lease, operate and dispose of the Acquired Assets. Complete and accurate copies of the charter documents and bylaws of Seller, with all amendments thereto to the date hereof, have been furnished to Buyer or its representatives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.2 Authorization of Agreement**. Seller has all requisite corporate power and authority to enter into this Agreement and to consummate the transactions contemplated hereby. This Agreement and all other agreements and instruments executed or to be executed by the parties hereto in connection herewith (together with all other documents delivered or to be delivered in connection herewith or therewith, the "**Transaction Documents**") have been duly and validly approved by the Seller's shareholders, as applicable, and no other proceedings on the part of Seller are necessary to approve this Agreement and to consummate the transactions contemplated hereby. This Agreement and the other Transaction Documents have been (or upon execution will have been) duly executed and delivered by Seller, have been effectively authorized by all necessary action, corporate or otherwise, and constitute (or upon execution will constitute) legal, valid and binding obligations of Seller, except as such enforceability may be limited by general principles of equity and bankruptcy, insolvency, reorganization and moratorium and other similar laws relating to creditors' rights (the "**Bankruptcy Exception.**")

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.3 Acquired Assets**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Ownership</u>. Seller is the lawful owner of or has the right to use and transfer to Buyer each of the Acquired Assets being transferred by it pursuant hereto. The Acquired Assets are free and clear of all liens, mortgages, pledges, security interests, restrictions, prior assignments, encumbrances and claims of any kind. The delivery to Buyer will vest good and marketable title to the Acquired Assets in Buyer, free and clear of all liens, mortgages, pledges, security interests, restrictions, prior assignments, encumbrances and claims of any kind. There are no outstanding agreements, options or commitments of any nature obligating Seller to transfer any of the Acquired Assets or rights or interests therein to any party other than Buyer. Seller warrants and represents they are selling the Acquired Assets to Buyer, who is senior management with requisite knowledge and experience in the industry, and that the Purchase Price is agreed and accepted to at fair market value ("FMV").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Sufficiency of Assets</u>. The Acquired Assets (i) constitute all of the assets and properties used by Seller in connection with the operation of the Business; and (ii) are sufficient and adequate to conduct the Business in the manner that is currently conducted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.4 Certain Property of Seller**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Proprietary Rights</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Schedule 1.1 sets forth a true and complete list of all Proprietary Rights (either registered, applied for, or common law) owned by, registered in the name of, licensed to, or otherwise used by Seller. For purposes of this Agreement "**Proprietary Rights**" means trademarks and service marks (registered or unregistered), trade dress, trade names and other names and slogans embodying business or goodwill or indications of origin, all applications or registrations in any jurisdiction pertaining to the foregoing and all goodwill associated therewith, as well as the following: (A) patents, patentable inventions, discoveries, improvements, ideas, know-how, formula methodology, processes, technology and computer programs, software and databases (including source code, object code, development documentation, programming tools, drawings, specifications and data), and all applications or registrations in any jurisdiction pertaining to the foregoing, including all reissues, continuations, divisions, continuations-in-part, renewals or extensions thereof; (B) trade secrets, know-how, including confidential and other non-public information, and the right in any jurisdiction to limit the use or disclosure thereof; (C) copyrights in writings, designs, mask works or other works, and registrations or applications for registration of copyrights in any jurisdiction; (D) licenses, including, without limitation, software licenses, immunities, covenants not to sue and the like relating to any of the foregoing; (E) Internet Web sites, domain names and registrations or applications for registration thereof; (F) toll-free or other phone numbers and "vanity" numbers; (G) customer lists; (H) books and records describing or used in connection with any of the foregoing; and (I) claims or causes of action arising out of or related to infringement or misappropriation of any of the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) All of the Proprietary Rights are owned by Seller free and clear of any and all liens, security interests, claims, charges and encumbrances (other than the lien of the Shareholder) or are used by Seller pursuant to a valid and enforceable license granting rights sufficiently broad to permit the historical and anticipated uses of the Proprietary Rights in connection with the conduct of the Business in the manner presently conducted and to convey such right and authority to Buyer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Schedule 1.1</u> identifies a list of any licenses, sublicenses or other agreements pursuant to which Seller grants a license to any person to use the Proprietary Rights or is a licensee of any of the Proprietary Rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) Seller is the sole owner of its trade secrets, including, without limitation, any customer lists, formulas, inventions, processes, know-how, computer programs and routines associated, developed or used in connection with the Business (the "**Trade Secrets**"), free and clear of any liens, encumbrances, restrictions, or legal or equitable claims of others, and has taken all reasonable security measures to protect the secrecy, confidentiality, and value of the Trade Secrets. Any of the employees of Seller and any other persons who, either alone or in concert with others, developed, invented, discovered, derived, programmed or designed the Trade Secrets, or who have knowledge of or access to information relating to them, have been put on notice and have entered into agreements that the Trade Secrets are proprietary to Seller and not to be divulged or misused.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) All the Trade Secrets are presently valid and protectable and are not part of the public knowledge or literature; and have not been used, divulged, or appropriated for the benefit of any past or present employees or other persons, or to the detriment of Seller or the Business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) Seller has taken all reasonable precautions necessary to ensure that all Proprietary Rights have been properly protected and have been kept secret.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.5 [Reserved]**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.6 No Conflict or Violation**. The execution, delivery and performance by Seller of this Agreement and the Transaction Documents and the consummation of the transactions contemplated hereby do not and will not: (i) violate or conflict with any provision of the charter documents or bylaws of Seller; (ii) violate any provision or requirement of any domestic or foreign, national, state, or local law, statute, judgment, order, writ, injunction, decree, award, rule, or regulation of any Governmental Entity applicable to Seller or the Business; (iii) violate, result in a breach of, constitute (with due notice or lapse of time or both) a default or cause any obligation, penalty, premium or right of termination to arise or accrue under any Contract (as hereinafter defined); (iv) result in the creation or imposition of any lien, charge or encumbrance of any kind whatsoever upon any of the properties or assets of Seller; and (v) result in the cancellation, modification, revocation or suspension of any license, permit, certificate, franchise, authorization or approval issued or granted by any Governmental Entity (each a "**License,**" and collectively, the "**Licenses**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.7 Consents.** All Consents (as hereinafter defined) and notices required to be obtained or given by or on behalf of Seller or the Shareholder before consummation of the transactions contemplated by this Agreement in compliance with all applicable laws, rules, regulations, orders or governmental or other agency directives, or the provisions of any document binding upon Seller or the Shareholder are described on <u>Section 2.7</u> of the Disclosure Schedule and all such Consents have been duly obtained and are in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.8 Litigation**. There are no claims, actions, suits, proceedings, labor disputes or investigations pending or, to the knowledge of Seller, threatened before any Governmental Entity of any nature, brought by or against the Seller, the members, officers, directors, employees, agents of Seller, or any of their respective Affiliates involving, affecting or relating to any assets, properties or operations of Seller or the transactions contemplated by this Agreement. None of Seller nor any of the Acquired Assets is subject to any order, writ, judgment, award, injunction or decree of any Governmental Entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.9 Compliance with Applicable Law**. The operations of Seller are, and have been, conducted in accordance with all applicable laws, regulations, orders and other requirements of all Governmental Entities having jurisdiction over it and its assets, properties and operations, including, without limitation, the Real Estate Settlement Procedures Act and all other laws, regulations, orders and requirements relating to the Business. Seller has not received any notice of any violation of any such law, regulation, order or other legal requirement, and is not in default with respect to any order, writ, judgment, award, injunction or decree of any Governmental Entity, applicable to Seller or any of its assets, properties or operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.10 Licenses**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Schedule 1.1 sets forth a true and complete list of all Licenses issued or granted to Seller, and all pending applications therefore. The Licenses constitute all Licenses required, and consents, approvals, authorizations and other requirements prescribed by any law, rule or regulation which must be obtained or satisfied by Seller in connection with the Business or that are necessary for the execution, delivery and performance by Seller of this Agreement and the Transaction Documents. No jurisdiction in which Seller is not qualified or licensed as a foreign corporation has demanded or requested that it qualify or become licensed as a foreign corporation. Seller has delivered to Buyer or its representatives true and complete copies of all the Licenses together with all amendments and modifications thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each License has been issued to, and duly obtained and fully paid for by Seller and is valid, in full force and effect, and not subject to any pending or known threatened administrative or judicial proceeding to suspend, revoke, cancel or declare such License invalid in any respect. Seller is not in violation in any material respect of any of the Licenses. The Licenses have never been suspended, revoked or otherwise involuntarily terminated, subject to any fine or penalty, or subject to judicial or administrative review, for any reason other than the renewal or expiration thereof, nor has any application of Seller for any License ever been denied.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.11 No Undisclosed Liabilities**. Except as and to the extent specifically reflected or reserved against in the Financial Statements and except as incurred in the ordinary course of business since the date of the Financial Statements, Seller has no material liabilities or obligations of any nature, whether absolute, accrued, contingent or otherwise, and whether due or to become due (including, without limitation, any liability for taxes and interest, penalties and other charges payable with respect to any such liability or obligation) and no facts or circumstances exist which, with notice or the passage of time or both, could reasonably be expected to result in in the following: 1) an impairment of Buyer's interest in the acquired asset; and 2) any material claims against or obligations or liabilities of Seller that could foreseeably impair Buyer's ownership interest in the Acquired Asset.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.12 Environmental Matters**. Notwithstanding anything to the contrary contained in this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Seller and its operations comply and have at all times complied with all applicable laws, regulations and other requirements of Governmental Entities or duties under the common law relating to toxic or hazardous substances, wastes, pollution or to the protection of health, safety or the environment (collectively, "**Environmental Laws**") and have obtained and maintained in effect all licenses, permits and other authorizations or registrations (collectively "**Environmental Permits**") required under all Environmental Laws and are in compliance with all such Environmental Permits.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No hazardous substance, hazardous waste, contaminant, pollutant or toxic substance (as such terms are defined in or otherwise subject to any applicable Environmental Law and collectively referred to herein as "**Hazardous Materials**") has been released, placed, disposed of or otherwise come to be located on, at, beneath or near any of the assets or properties owned or leased by it at any time or any other property in violation of any Environmental Laws or that could subject it to liability under any Environmental Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Seller has not exposed any employee or third party to any Hazardous Materials or conditions that could subject it to any material liability under any Environmental Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Seller does not now own or operate, and has never owned or operated, aboveground or underground storage tanks.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) To the knowledge of Seller, with respect to any or all of the real properties leased at any time by Seller, there are no asbestos-containing materials, urea formaldehyde insulation, polychlorinated biphenyls or lead-based paints present at any such properties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.13 Accuracy of Information**. None of the representations or warranties or information provided and to be provided by Seller to Buyer in this Agreement, the Disclosure Schedule, schedules or exhibits hereto, or in any of the other Transaction Documents contains or will contain any untrue statement of a material fact or omits or will omit to state any material fact necessary in order to make the statements and facts contained herein or therein not false or misleading. The descriptions set forth in the Disclosure Schedule are accurate descriptions of the matters disclosed therein. Copies of all documents heretofore or hereafter delivered or made available to Buyer pursuant hereto were or will be complete and accurate records of such documents.

**3. Representations and Warranties of Buyer**. Buyer represents and warrants to Seller that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1 Organization and Corporate Authority**. Buyer is a Nevada corporation duly organized, validly existing and in good standing under the laws of the State of Nevada and has all requisite corporate power and authority to enter into this Agreement and to consummate the transactions contemplated hereby. This Agreement and the other Transaction Documents have been (or upon execution will have been) duly executed and delivered by Buyer, have been effectively authorized by all necessary action, corporate or otherwise, and constitute (or upon execution will constitute) legal, valid and binding obligations of Buyer, except as such enforceability may be limited by the Bankruptcy Exception.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.2 No Conflict or Violation**. The execution, delivery and performance by Buyer of this Agreement and the other Transaction Documents and the consummation of the transactions contemplated hereby do not and will not: (i) violate or conflict with any provision of the charter documents or bylaws of Buyer; or (ii) violate any provision or requirement of any domestic or foreign, national, state or local law, statute, judgment, order, writ, injunction, decree, award, rule, or regulation of any Governmental Entity applicable to Buyer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.3 Accuracy of Information**. None of the representations or warranties or information provided and to be provided by Buyer to Seller in this Agreement, the schedules or exhibits hereto, or in any of the other Transaction Documents contains or will contain any untrue statement of a material fact or omits or will omit to state any material fact necessary in order to make the statements and facts contained herein or therein not false or misleading.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.4 Consents**. All Consents and notices required to be obtained or given by or on behalf of Buyer before consummation of the transactions contemplated by this Agreement in compliance with all applicable laws, rules, regulations, orders or governmental or other agency directives, or the provisions of any document binding upon Buyer have been duly obtained and are in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.5 No Undisclosed Liabilities**. Except as and to the extent specifically reflected or reserved against in the balance sheet and except as incurred in the ordinary course of business, Buyer has no material liabilities or obligations of any nature, whether absolute, accrued, contingent or otherwise, and whether due or to become due (including, without limitation, any liability for taxes and interest, penalties and other charges payable with respect to any such liability or obligation.

**4. Certain Understandings and Agreements of the Parties**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.1 Access**. Seller shall afford to Buyer and Buyer's accountants, counsel and representatives reasonable access during normal business hours throughout the period prior to the Closing Date (or the earlier termination of this Agreement) to all of the properties, books, Contracts and records of Seller (including, without limitation, Seller's accounting records and loan files and reasonable inquiry of Seller's independent accountants) and, during such period, shall furnish promptly to Buyer all information concerning Seller, the Business, and Seller's properties, liabilities and personnel as Buyer may reasonably request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.2 Confidentiality**. For purposes hereof, Seller will keep the matters contemplated herein and all information provided by Buyer related to Buyer confidential, and will not provide information about such matters to any party or use such information except to the extent necessary to effect the transactions contemplated hereby. Buyer will keep the matters contemplated herein and all information provided by Seller related to Seller and the Business confidential, and will not provide information about such matters to any party or use such information except to the extent necessary to effect the transactions contemplated hereby. Buyer and Seller shall each cause their respective officers, directors, members, employees, agents, and advisors to keep confidential all information received in connection with the transactions contemplated hereby. If this Agreement terminates without consummation of the Closing, Seller and Buyer shall each maintain the confidentiality of any information obtained from the other in connection with the transactions contemplated hereby and Buyer's business plans (the **"Information"**), other than Information that: (i) was in the public domain before the date of this Agreement or subsequently came into the public domain other than as a result of disclosure by the party to whom the Information was delivered; or (ii) was lawfully received by a party from a third party free of any obligation of confidence of or to such third party; or (iii) was already in the possession of the party prior to receipt thereof, directly or indirectly, from the other party; or (iv) is required to be disclosed in a judicial or administrative proceeding after giving the other party as much advance notice of the possibility of such disclosure as practicable so that the other party may attempt to stop such disclosure; or (v) is subsequently and independently developed by employees of the party to whom the Information was delivered without reference to the Information. If this Agreement terminates without consummation of the Closing, Buyer, on the one hand, and Seller, on the other, shall return to the other all material containing or reflecting Information provided by the other, shall not retain any copies, extracts, or other reproductions thereof or derived therefrom, and shall thereafter refrain from using the Information and shall maintain its confidentiality pursuant to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.3 Cooperation in Litigation**. Each party will fully cooperate with the others in the defense or prosecution of any litigation or proceeding already instituted or which may be instituted hereafter against or by such party relating to or arising out of the conduct of the Business prior to or after the Closing Date (other than litigation between Buyer and/or its Affiliates or assignees, on the one hand, and Seller and/or their Affiliates or assignees, on the other hand, arising out of the transactions contemplated by this Agreement). The party requesting such cooperation shall pay the out-of-pocket expenses (including reasonable legal fees and disbursements) of the party providing such cooperation and of its officers, directors, employees and agents reasonably incurred in connection with providing such cooperation, but shall not be responsible to reimburse the party providing such cooperation for such party's time spent in such cooperation or the salaries or costs of fringe benefits or other similar expenses paid by the party providing such cooperation to its officers, directors, employees and agents while assisting in the defense or prosecution of any such litigation or proceeding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.4 Best Efforts**. Upon the terms and subject to the conditions of this Agreement, each of the parties hereto shall use its best efforts to take, or cause to be taken, all actions, and to do, or cause to be done, all things necessary, proper or advisable consistent with applicable law to cause the fulfillment of the conditions to Closing set forth herein and to consummate and make effective in the most expeditious manner practicable the transactions contemplated hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.5 Further Assurances**. Upon the reasonable request of a party or parties hereto at any time after the Closing Date, the other party or parties shall forthwith execute and deliver such further instruments of assignment, transfer, conveyance, endorsement, direction or authorization and other documents as the requesting party or parties or its or their counsel may reasonably request in order to perfect title of Buyer and its successors and assigns to the Acquired Assets or otherwise to effectuate the purposes of this Agreement. Without limiting the generality of the foregoing, the parties hereto agree that Seller shall cooperate with Buyer in connection with the withdrawal, surrender or change of corporate names and name reservations in any states in which such withdrawal, surrender or change has not occurred prior to the date hereof.

**5. Survival; Indemnification**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.1 Survival**. The representations and warranties made in this Agreement or in any exhibit, schedule, or any Transaction Document or certificate shall survive any investigation made by any party hereto and the Closing of the transactions contemplated hereby until the anniversary of the Closing Date, except those representations and warranties contained in (i) <u>Sections 2.13</u> (Environmental Matters), which will survive until the fifth anniversary of the Closing Date; and (iii) <u>Section 2.3</u> (Acquired Assets) which will survive indefinitely. As to any matter which is based upon willful fraud by the indemnifying party, the representations and warranties set forth in this Agreement shall expire only upon expiration of the applicable statute of limitations. No party will be liable to another under any warranty or representation after the applicable expiration of such warranty or representation; provided however, if a claim or notice is given under this <u>Section 5</u> with respect to any representation or warranty prior to the applicable expiration date, such claim may be pursued to resolution notwithstanding expiration of the representation or warranty under which the claim was brought. Any investigations made by or on behalf of any of the parties prior to the date hereof shall not affect any of the parties' obligations hereunder. Completion of the transactions contemplated hereby shall not be deemed or construed to be a waiver of any right or remedy of any of the parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.2 Indemnification by Seller**. Subject to the limits set forth in this <u>Section 5</u>, and notwithstanding the knowledge qualifiers contained in Section 2 of this Agreement, which Seller expressly agrees shall not apply to limit liability hereunder, Seller and their respective successors and assigns shall jointly and severally indemnify, defend, reimburse and hold harmless Buyer and its Affiliates, and the officers, directors, employees and agents of any of them, from and against any and all claims, losses, damages, liabilities, obligations, assessments, penalties and interest, demands, actions and expenses, whether direct or indirect, known or unknown, absolute or contingent (including, without limitation, settlement costs and any legal, accounting and other expenses for investigating or defending any actions or threatened actions) ("**Losses**") reasonably incurred by any such indemnitee, arising out of or in connection with any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the ownership or operation of the Acquired Assets or Business before the Closing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any untruth or inaccuracy of any representation or warranty made by Seller in this Agreement or any other Transaction Document, notwithstanding the knowledge qualifiers contained in Section 2 of this Agreement, which Seller expressly agrees shall not apply to limit liability hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the breach of any covenant, agreement or obligation of Seller contained in this Agreement or any other Transaction Docum

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.3 Indemnification by Buyer**. Subject to the limits set forth in this <u>Section 5</u>, Buyer shall indemnify, defend and hold harmless Seller, and their respective members, officers, directors, employees and agents from and against any and all Losses reasonably incurred by any such indemnitee arising out of or in connection with any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any untruth or inaccuracy of any representation or warranty made by Buyer in this Agreement or any other Transaction Document; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the breach of any covenant, agreement or obligation of Buyer contained in this Agreement or any Transaction Document; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any future claims arising out of or in connection with any existing distributors and/or distributions agreements from the date of execution of this agreement and forward.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.4 Indemnification Procedure.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Whenever any claim shall arise for indemnification hereunder relating to a Loss (a "**Claim**"), the party entitled to indemnification (the "**Indemnitee**") shall promptly give written notice to the party obligated to provide indemnity (the "**Indemnitor**") with respect to the Claim after the receipt by the Indemnitee of reliable information of the facts constituting the basis for the Claim; but the failure to timely give such notice shall not relieve the Indemnitor from any obligation under this Agreement, except to the extent, if any, that the Indemnitor is materially prejudiced thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Upon receipt of written notice from the Indemnitee of a Claim, the Indemnitor shall provide counsel (such counsel subject to the reasonable approval of the Indemnitee) to defend the Indemnitee against the matter from which the Claim arose, at the Indemnitor's sole cost, risk and expense. The Indemnitee shall cooperate in all reasonable respects, at the Indemnitor's sole cost, risk and expense, with the Indemnitor in the investigation, trial, defense and any appeal arising from the matter from which the Claim arose; provided, however, that the Indemnitee may (but shall not be obligated to) participate in any such investigation, trial, defense and any appeal arising in connection with the Claim. If the Indemnitee's participation in any such investigation, trial, defense and any appeal arising from such Claim relates to a legal position or defense that varies materially from the legal positions or defenses pursued by the Indemnitor, and if the Indemnitee reasonably believes that the Indemnitee's interests will be adversely and materially affected if such legal position or defense is not pursued, and Indemnitor refuses to pursue or incorporate such legal positions and defenses into its legal positions and defenses after the written request of Indemnitee, the Indemnitor shall bear the sole cost, risk and expense of the Indemnitee's separate participation, including reasonable fees, costs and expenses of one separate counsel for the Indemnitee (or multiple Indemnitees). If the Indemnitee elects to so participate, the Indemnitor shall cooperate with the Indemnitee, and the Indemnitor shall deliver to the Indemnitee or its counsel copies of all pleadings and other information within the Indemnitor's knowledge or possession reasonably requested by the Indemnitee or its counsel that is relevant to the defense of such Claim and that will not prejudice the Indemnitor's position, claims or defenses. The Indemnitee and its counsel shall maintain confidentiality with respect to all such information consistent with the conduct of a defense hereunder. The Indemnitor shall have the right to elect to settle any claim for monetary damages without the Indemnitee's consent only if the settlement includes a complete release of the Indemnitee. If the settlement does not include such a release, it will be subject to the consent of the Indemnitee, which will not be unreasonably withheld. The Indemnitor may not admit any liability of the Indemnitee or waive any of the Indemnitee's rights without the Indemnitee's prior written consent, which will not be unreasonably withheld. If the subject of any Claim results in a judgment or settlement, the Indemnitor shall promptly pay such judgment or settlement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If the Indemnitor fails to assume the defense of the subject of any Claim in accordance with the terms of <u>Section 5.4(b)</u>, or if the Indemnitor fails diligently to prosecute such defense, the Indemnitee may defend against the subject of the Claim, at the Indemnitor's sole cost, risk and expense, in such manner and on such terms as the Indemnitee deems appropriate, including, without limitation, settling the subject of the Claim after giving reasonable notice to the Indemnitor. If the Indemnitee defends the subject of a Claim in accordance with this Section, the Indemnitor shall cooperate with the Indemnitee and its counsel, at the Indemnitor's sole cost, risk and expense, in all reasonable respects, and shall deliver to the Indemnitee or its counsel copies of all pleadings and other information within the Indemnitor's knowledge or possession reasonably requested by the Indemnitee or its counsel that are relevant to the defense of the subject of any such Claim and that will not prejudice the Indemnitor's position, claims or defenses. The Indemnitee shall maintain confidentiality with respect to all such information consistent with the conduct of a defense hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The obligation of the Indemnitor to indemnify the Indemnitee against Claims pursuant to this Agreement shall be in addition to any other obligations the Indemnitor might otherwise have and any other rights the Indemnitee might otherwise have.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.5 Payment**. All payments owing under this <u>Section 5</u> will be made promptly as indemnifiable Claims are incurred. If the Indemnitee defends the subject matter of any Claim in accordance with <u>Section 5.4(c)</u> or proceeds with separate counsel in accordance with <u>Section 5.4(b)</u>, the expenses (including reasonable attorneys' fees) incurred by the Indemnitee shall be paid by the Indemnitor in advance of the final disposition of such matter as incurred by the Indemnitee, if the Indemnitee undertakes in writing to repay any such advances in the event that it is ultimately determined that the Indemnitee is not entitled to indemnification under the terms of this Agreement or applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.6 Set-Off.** In addition to any rights of set off or other rights that any of the Indemnitees may have at common law, by statute or otherwise, each Indemnitee shall have the right to set off any amount that is owed by such Indemnitee to an Indemnitor pursuant to this Agreement against any amount otherwise payable by the Indemnitor to the Indemnitee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.7 Limitations**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Threshold</u>. Notwithstanding any provision of this Agreement to the contrary, no party shall have any obligation to indemnify any person entitled to indemnity under this <u>Section 5</u> or to pay damages in respect of contract claims arising under this Agreement or any other Transaction Document unless the persons so entitled to indemnity or recovery thereunder have suffered Losses in an aggregate amount attributable to all Claims and obligors in excess of Five Thousand Dollars ($10,000) (the "**Threshold**"). Once the aggregate amount of Losses exceeds the Threshold, persons entitled to recovery shall be entitled to recover the full amount of all Losses, including any amounts which constituted the Threshold. No person shall be entitled to indemnification under this <u>Section 5</u> for Losses directly or indirectly caused by a breach by such person of any representation, warranty, covenant or other agreement set forth in this Agreement or any duty to the potential Indemnitor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Cap</u>. Notwithstanding any provision of this Agreement to the contrary, in no event shall the aggregate amount of the indemnification obligations of the Seller owing under this Article 5 to one or more Indemnitees exceed $50,000.00.

**6. Conditions to Closing**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.1 Conditions to Obligations of Each Party**. The obligations of Buyer, on the one hand, and Seller, on the other hand, to consummate the transactions contemplated hereby are subject to the fulfillment, at or before the Closing Date, of the conditions set forth in this <u>Section 6.1</u>, any one or more of which may be waived in writing by the party entitled to the benefit of such condition; provided, however, that such waiver will not diminish such party's right to indemnification pursuant to <u>Section 5</u>, unless so stated, and provided further that Seller will be required to perform their obligations hereunder, notwithstanding lack of fulfillment of the conditions set forth in this <u>Section 6.1</u>, if Buyer agrees in writing to be liable for, and to indemnify Seller from and against, any obligations that Seller would incur as a result of consummating the transactions contemplated hereby notwithstanding the fact that the conditions in this <u>Section 6.1</u> have not been fulfilled.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>No Action or Proceeding</u>. No preliminary or permanent injunction or other order issued by any Governmental Entity that declares this Agreement invalid in any material respect or prevents or would be violated by the consummation of the transactions contemplated hereby, or which materially adversely affects the assets, operations, or financial condition of Seller, is in effect; and no action or proceeding has been instituted or threatened by any Governmental Entity, other person, or entity which seeks to prevent or delay the consummation of the transactions contemplated by this Agreement or which challenges the validity or enforceability of this Agreement, the result of which could constitute a Material Adverse Change.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Compliance with Law</u>. There shall have been obtained all permits, approvals, and consents of all Governmental Entities that counsel for Buyer or for Seller may reasonably deem necessary or appropriate so that consummation of the transactions contemplated by this Agreement will be in compliance with applicable laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.2 Conditions to Obligations of Buyer**. The obligations of Buyer to consummate the transactions contemplated hereby are subject to the fulfillment, at or before or subsequent (assignments) the Closing Date, of the conditions set forth in this <u>Section 6.2</u>, any one or more of which may be waived by Buyer in writing in its discretion; provided however, such waiver will not waive or diminish Buyer's right to indemnification pursuant to <u>Section 5</u>, unless so stated:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Representations and Warranties True</u>. The representations and warranties of Seller contained in this Agreement or in any other Transaction Document delivered pursuant hereto shall be true and correct in all material respects as of the date hereof and on the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Performance of Seller</u>. Seller has performed in all material respects all obligations required to be performed by each of them under this Agreement on or before the Closing Date, and at the Closing Seller shall have delivered to Buyer all executed documents to such effect dated the Closing Date and signed by, respectively, managing member of Seller.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Authority</u>. All actions required to be taken by, or on the part of, Seller to authorize the execution, delivery and performance of this Agreement and the consummation of the transactions contemplated hereby shall have been duly and validly taken by the majority of members of Seller.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Consents to Assignments of Certain Contracts</u>. All necessary consents to the assignment of Contracts requiring consents as a condition to their assignment to Buyer (as described on Schedule 2.09) shall have been obtained in written instruments reasonably satisfactory to Buyer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Additional Closing Documents of Seller</u>. Buyer has received, or is receiving at the Closing, all of the following, each duly executed by the parties thereto (other than Buyer) and dated the Closing Date (or an earlier date satisfactory to Buyer), in form and substance satisfactory to Buyer:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Copies, certified by the Secretary or an Assistant Secretary of Seller of resolutions of the Board of Directors of Seller authorizing the execution, delivery and performance of this Agreement and the Transaction Documents and the consummation of the transactions contemplated hereby;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Consents and Approvals</u>. All consents, waivers, authorizations and approvals of any Governmental Entity, and of any other person or entity, required under the Contracts, Licenses, or otherwise in connection with the execution, delivery and performance of this Agreement, absence of which could result in material liability to Buyer or a Material Adverse Change or the cancellation or adverse change in terms of, or payments under, any Contract, have been duly obtained in form reasonably satisfactory to Buyer, are in full force and effect on the Closing Date and the original executed copies have been delivered to the Buyer on or before the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>No Adverse Changes</u>. Between the date of this Agreement and the Closing Date there shall not have occurred any Material Adverse Change or any event or circumstance that may result in a Material Adverse Change.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Domain Names and Telephone Numbers</u>. Buyer shall have received written documents duly executed by all necessary parties providing for the transfer of control and/or ownership, as applicable, of all domain names and toll-free or other phone numbers included in the Acquired Assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>No Default.</u> Seller shall not be in default of any material obligation except as otherwise set forth on the Disclosure Schedule.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Legal Matters</u>. All Transaction Documents required to be executed or delivered by or on behalf of Seller under this Agreement, and all other actions and proceedings required to be taken by or on behalf of it in furtherance of the transactions contemplated hereby, are in form and substance reasonably satisfactory to counsel for Buyer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Other Closing Documents</u>. Buyer has received such other duly executed certificates, instruments and documents in confirmation of the representations and warranties of Seller or in furtherance of the transactions contemplated by this Agreement as Buyer or its counsel may reasonably request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.3 Conditions to Obligations of Seller**. The obligations of Seller to consummate the transactions contemplated hereby are subject to the fulfillment, at or before the Closing Date, of the conditions set forth in this <u>Section 6.3</u> any one or more of which may be waived by Seller in writing in its discretion; provided however, such waiver will not waive or diminish the right of Seller to indemnification pursuant to <u>Section 5</u>, unless so stated:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Representations and Warranties True</u>. The representations and warranties of Buyer contained in this Agreement or in any Transaction Document shall be true and correct in all material respects on the date hereof and on the Closing Date, and at the Closing Buyer shall have delivered to Seller a certificate to such effect dated the Closing Date, signed by the Chief Executive Officer or President or any Vice President and the Secretary or any Assistant Secretary of Buyer or any Managing Member of Buyer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Performance of Covenants</u>. Each of the obligations of Buyer to be performed on or before the Closing Date pursuant to the terms of this Agreement shall have been duly performed on or before the Closing Date, and at the Closing Buyer shall have delivered to Seller a certificate to such effect dated the Closing Date signed by the Chief Executive Officer or President or any Vice President and the Secretary or any Assistant Secretary of Buyer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Authority</u>. All actions required to be taken by, or on the part of, Buyer to authorize the execution, delivery and performance of this Agreement and the consummation of the transactions contemplated hereby shall have been duly and validly taken by the Board of Directors of Buyer or by the majority of members of Buyer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Purchase Price</u>. Buyer shall have made the payment to Seller as set forth in the Purchase Price Schedule 1.1.,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Additional Closing Documents of Buyer</u>. Buyer has executed and delivered, or is executing and delivering at the Closing the following documents, each dated the Closing Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Copies, certified by the Secretary or an Assistant Secretary of Buyer, of resolutions of its Board of Directors or majority of members of Buyer authorizing the execution and delivery of this Agreement and the Transaction Documents and the consummation of the transactions contemplated hereby;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Consents and Approvals</u>. All consents, waivers, authorizations and approvals of any Governmental Entity, and of any other person or entity, required in connection with the execution, delivery and performance of this Agreement, absence of which could result in material liability to Seller, have been duly obtained and are in full force and effect on the Closing Date; provided however, that Seller and the Shareholder will be required to perform their obligations hereunder, notwithstanding lack of fulfillment of the conditions set forth in this <u>Section 6.3(f)</u>, if Buyer agrees in writing to be liable for, and to indemnify Seller and the Shareholder from and against, any obligations that Seller or the Shareholder would incur as a result of consummating the transactions contemplated hereby notwithstanding the fact that the conditions in this <u>Section 6.3(f)</u> have not been fulfilled.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Legal Matters</u>. All Transaction Documents required to be executed or delivered by or on behalf of Buyer under this Agreement, and all other actions and proceedings required to be taken by or on behalf of Buyer in furtherance of the transactions contemplated hereby, are in form and substance reasonably satisfactory to counsel for Seller.

**7. Defaults.**

**7.1** **Default Defined**. The following will be defaults:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) A continued breach of this Agreement by either Party, continuing for a period of 30 days after receipt
of written notice from the other party with respect thereto (unless such notice specifies a longer period).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) An assignment by either party for the benefit of creditors; the institution of involuntary or voluntary
proceedings against or by either party by a court of competent jurisdiction in connection with insolvency laws that is not dismissed within
90 days; or the appointment of a receiver or trustee for either party, or any interest in its business, unless vacated within 90 days.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Gross negligence by the Buyer of its business by the discontinuation of normal service to its customers
for a period of 60 consecutive days.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) A determination by a court of competent jurisdiction that one party made a material misrepresentation
or false statement or materially misled the other in order to procure a benefit or right from the other party.

**8. Miscellaneous**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.1 Notices**. All notices, requests, demands and other communications hereunder shall be in writing and shall be deemed given upon personal delivery or three (3) days after being mailed by certified or registered mail, postage prepaid, return receipt requested, or one (1) business day after being sent via a nationally recognized overnight courier service if overnight courier service is requested from such service or upon receipt of electronic or other confirmation of transmission if sent via facsimile to the parties, their successors in interest or their assignees at the following addresses and telephone numbers, or at such other addresses or telephone numbers as the parties may designate by written notice in accordance with this <u>Section 8.2</u>:

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| | |
|:---|:---|
| If to Seller: | **NOHO INC.** |

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659 NW 38TH CIR

BOCA RATON FL 33431-5704

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| | |
|:---|:---|
| If to Buyer: | **SIBANNAC, INC.** |

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9535 E Doubletree Ranch Road, STE 120

Scottsdale, AZ 85258

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.2 Assignability and Parties in Interest**. This Agreement and any of the rights, interests or obligations hereunder may not be assigned by any of the parties hereto, except through operation of law and that Buyer may assign its rights and obligations under this Agreement in whole or in part to any Affiliate or Affiliates of Buyer or any successor to all or substantially all of the business or assets of Buyer. This Agreement shall inure to the benefit of and be binding upon Buyer, Seller and the Shareholder and their respective permitted successors and assigns. Nothing in this Agreement will confer upon any person or entity not a party to this Agreement, or the legal representatives of such person or entity, any rights or remedies of any nature or kind whatsoever under or by reason of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.3 Governing Law**. This Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of Arizona without regard to its choice-of-law principles.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.4 Counterparts**. Facsimile transmission of any signed original document and/or retransmission of any signed facsimile transmission will be deemed the same as delivery of an original. At the request of any party, the parties will confirm facsimile transmission by signing a duplicate original document. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which shall constitute but one and the same instrument.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.5 Publicity**. Prior to the Closing Date, no party may, nor may it permit its Affiliates to, issue or cause the publication of any press release or other announcement with respect to this Agreement or the transactions contemplated hereby without the consent of the other parties. Notwithstanding the foregoing, in the event any such press release or announcement is required by law to be made by the party proposing to issue the same, such party shall consult in good faith with the other party prior to the issuance of any such press release or announcement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.6 Complete Agreement**. This Agreement, the exhibits and schedules hereto, the Transaction Documents, the License Agreement and the Correspondent Lender Agreement contain or will contain the entire agreement between the parties hereto with respect to the transactions contemplated herein and shall supersede all previous oral and written and all contemporaneous oral negotiations, commitments, and understandings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.7 Modifications, Amendments and Waivers**. At any time prior to the Closing Date or termination of this Agreement, any party may, (a) waive any inaccuracies in the representations and warranties of any other party contained in this Agreement or in any Transaction Document; and (b) waive compliance by any other party with any of the covenants or agreements contained in this Agreement. No waiver of any of the provisions of this Agreement will be considered, or will constitute, a waiver of any of the rights of remedies, at law or equity, of the party entitled to the benefit of such provisions unless made in writing and executed by the party entitled to the benefit of such provision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.8 Headings; References**. The headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. References herein to Sections, Schedules and Exhibits refer to the referenced Sections, Schedules or Exhibits hereof unless otherwise specified.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.9 Severability**. Any provision of this Agreement which is invalid, illegal, or unenforceable in any jurisdiction shall, as to that jurisdiction, be ineffective to the extent of such invalidity, illegality, or unenforceability, without affecting in any way the remaining provisions hereof in such jurisdiction or rendering that or any other provision of this Agreement invalid, illegal, or unenforceable in any other jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.10 Due Diligence Investigation**. All representations and warranties contained herein which are made to the knowledge of a party shall require that such party make reasonable investigation and inquiry with respect thereto to ascertain the correctness and validity thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.11 Expenses of Transactions**. All fees, costs and expenses incurred by Buyer in connection with the transactions contemplated by this Agreement shall be borne by Buyer, and all fees, costs, and expenses incurred by Seller and the Shareholder in connection with the transactions contemplated by this Agreement shall be borne respectively by Seller and the Shareholder jointly and severally.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.12 Arbitration**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Any controversy or claim arising out of or relating to this Agreement shall be solely and finally settled by arbitration administered by JAMS/Endispute in accordance with its Comprehensive Arbitration Rules and Procedures as then in effect (the "**Rules**"), except to the extent such Rules vary from the following provisions. The judgment of the award rendered by the Arbitrator may be entered in any court having jurisdiction thereof. The arbitration proceedings shall be held in Maricopa County, Arizona unless the parties otherwise agree to another location.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If a party hereto determines to submit a dispute for arbitration pursuant to this Section 8.12, such party shall furnish the party with whom it has the dispute with a notice of arbitration as provided in the Rules (an "**Arbitration Notice**") which, in addition to the items required by the Rules, shall include a statement of the nature, with reasonable detail, of the dispute. A copy of the Arbitration Notice shall be concurrently provided to JAMS/Endispute, along with a copy of this Agreement and a request to appoint the Arbitrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Once an Arbitrator is assigned to hear the matter, the Arbitrator shall schedule a pre-hearing conference to reach agreement on procedural and scheduling matters, arrange for the exchange of information, obtain stipulations and attempt to narrow the issues.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) At the pre-hearing conference, the Arbitrator shall have the discretion to order, to the extent the Arbitrator deems relevant and appropriate, that each party may (i) serve a maximum of one demand for production of documents and one set of twenty (20) interrogatories (without subparts) upon the other parties; and (ii) depose a maximum of three (3) witnesses. All objections are reserved for the arbitration hearing except for objections based on privilege and proprietary or confidential information. The response to the document demand, the documents to be produced, and the responses to the interrogatories shall be exchanged thirty (30) days later. Each deposition must be concluded within eight (8) hours and all depositions must be taken within thirty (30) days of the pre-hearing conference. Any party deposing an opponent's expert must pay the expert's fee for attending the deposition. All discovery disputes shall be decided by the Arbitrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The parties must file briefs with the Arbitrator at least three (3) days before the arbitration hearing, specifying the facts each intends to prove and analyzing the applicable law. The parties have the right to representation by legal counsel throughout the arbitration proceedings. The presentation of evidence at the arbitration hearing shall be governed by the Federal Rules of Evidence. Oral evidence given at the arbitration hearing shall be given under oath. Any party desiring a stenographic record may secure a court reporter to attend the arbitration proceedings. The party requesting the court reporter must notify the other parties and the Arbitrator of the arrangement in advance of the hearing, and must pay for the cost incurred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Each party may be joined as an additional party to an arbitration involving other parties. If more than one arbitration is begun and any party contends that two or more arbitrations are substantially related and that the issues should be heard in one proceeding, the Arbitrator selected in the first-filed of such proceedings shall determine whether, in the interests of justice and efficiency, the proceedings should be consolidated before that Arbitrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The Arbitrator's award shall be in writing, signed by the Arbitrator and shall contain a concise statement regarding the reasons for the deposition of any claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) To the extent permissible under applicable law, the award of the Arbitrator shall be final. It is the intent of the parties that the arbitration provisions hereof be enforced to the fullest extent permitted by applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.13 Submission to Jurisdiction**. All actions or proceedings arising in connection with this Agreement for preliminary or injunctive relief or matters not subject to arbitration, if any, shall be tried and litigated exclusively in the State and Federal courts located in the County of Maricopa, State of Arizona. The aforementioned choice of venue is intended by the parties to be mandatory and not permissive in nature, thereby precluding the possibility of litigation between the parties with respect to or arising out of this Agreement in any jurisdiction other than that specified in this paragraph. Each party hereby waives any right it may have to assert the doctrine of *forum non conveniens* or similar doctrine or to object to venue with respect to any proceeding brought in accordance with this paragraph, and stipulates that the State and Federal courts located in the County of Maricopa, State of Arizona shall have *in personam* jurisdiction over each of them for the purpose of litigating any such dispute, controversy, or proceeding. Each party hereby authorizes and accepts service of process sufficient for personal jurisdiction in any action against it as contemplated by this Section by registered or certified mail, return receipt requested, postage prepaid, to its address for the giving of notices as set forth in <u>Section 7.2</u>. Nothing herein shall affect the right of any party to serve process in any other manner permitted by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.14 Attorneys' Fees**. If Buyer brings any action, suit counterclaim, cross claim, appeal, arbitration, or mediation for any relief against Seller or the Shareholder, or if Seller or the Shareholder brings any action, suit, counterclaim, cross claim, appeal, arbitration, or mediation for any relief against Buyer, declaratory or otherwise, to enforce the terms hereof or to declare rights hereunder (collectively, an "**Action**"), in addition to any damages and costs which the prevailing party otherwise would be entitled, the non-prevailing party shall pay to the prevailing party a reasonable sum for attorneys' fees and costs (at the prevailing party's attorneys' then-prevailing rates) incurred in bringing and prosecuting such Action and/or enforcing any judgment, order, ruling, or award (collectively, a "**Decision**") granted therein, all of which shall be deemed to have accrued on the commencement of such Action and shall be paid whether or not such action is prosecuted to a Decision. Any Decision entered in such Action shall contain a specific provision providing for the recovery of attorneys' fees and costs incurred in enforcing such Decision.

For the purposes of this Section, attorneys' fees shall include, without limitation, fees incurred in the following: (1) post-judgment motions and collection actions; (2) contempt proceedings; (3) garnishment, levy and debtor and third party examinations; (4) discovery; and (5) bankruptcy litigation.

For purposes of this paragraph, "**prevailing party**" includes, without limitation, a party who agrees to dismiss an action on the other party's payment of the sum allegedly due or performance of the covenants allegedly breached, or who obtains substantially the relief sought by it. If there are multiple claims, the prevailing party shall be determined with respect to each claim separately. The prevailing party shall be the party who has obtained the greater relief in connection with any particular claim, although, with respect to any claim, it may be determined that there is no prevailing party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.15 Enforcement of the Agreement**. Seller and Buyer acknowledge that irreparable damage would occur if any of the obligations of Seller under this Agreement were not performed in accordance with their specific terms or were otherwise breached. Buyer will be entitled to an injunction or injunctions to prevent breaches of this Agreement by Seller to enforce specifically the terms and provisions hereto, this being in addition to any other remedy to which Buyer is entitled at law or in equity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.16 Survival.** The representations and warranties made in this Agreement or in any exhibit, schedule, or any licensing agreement contemplated hereby, specifically <u>Section 1.1(a)</u> (Acquired Assets), will survive indefinitely. As to any matter which is based upon willful fraud by the indemnifying party, the representations and warranties set forth in this Agreement shall expire only upon expiration of the applicable statute of limitations. No party will be liable to another under any warranty or representation after the applicable expiration of such warranty or representation; provided however, if a claim or notice is given under this <u>Section 8</u> with respect to any representation or warranty, such claim may be pursued to resolution notwithstanding expiration of the representation or warranty under which the claim was brought. Any investigations made by or on behalf of any of the parties prior to the date hereof shall not affect any of the parties' obligations hereunder. Completion of the transactions contemplated hereby shall not be deemed or construed to be a waiver of any right or remedy of any of the parties.

**In Witness Whereof**, each of the parties hereto has executed this Asset Purchase Agreement as of the date first above written.

**"Seller"**

**NOHO, INC.**

By: __________________________________

Name: David Mersky

Title: President and Chief Executive Officer

**"Buyer"**

**SIBANNAC, INC.** 

By: _________________________________

Name: Eric Stoll

Title: Director

**SCHEDULE 1.1**

**ACQUIRED ASSETS AND CERTAIN LIABILITIES**

Websites: NOHOSHOT.COM; NOHODRINK.COM URL; RAD8LIFE.COM URL; all other websites or domain names owned by Seller relating to the NOHO Shot or other NOHO consumer products and RAD8 branded products, whether or not in current production.

Vestra, LLC, an Arizona Limited Liability Company. Vestra, LLC is the owner of the website known as : www.rad8life.com

All Social Media Accounts relating to the NOHO liquid products;

Inventory on hand

Formulations

Furniture

Fixtures

Computers

Point Of Purchase materials and displays

Contracts

All IP for DRNK including Trademarks

Websites including the Nohoshot.com URL

Social Media

distribution rights

**Certain Liabilities:**

Deferred and accrued salaries (TBD)

All accounts payable to Carl Ranno ESQ.

Vestra, LLC, including the rad8life.com URL

Santanu Das note from 10/19/21 for $150,000

All Series C shares issued to Lifetime Branding

**SCHEDULE 1.2**

**PURCHASE PRICE**

&nbsp;&nbsp;&nbsp;&nbsp;**1.** **Royalty – to be paid for seven years (7) on the "After Shot Product" in the following percentage of gross sales.** 

&nbsp;&nbsp;&nbsp;&nbsp;**2.** **Royalty may be paid in cash or stock at the buyer's sole discretion pursuant to the following sale objectives.** 

**5% up to 2MM sales** 

**4% +2MM to 3MM** 

**3% +3MM to 4MM** 

**2% +4MM to 5MM** 

**1$+5MM**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3. Warrants- Each warrant shall grant the holder to purchase one share of Sibannac stock. There will be 50 million warrants to be distributed by NOHO to its shareholders of record as of July 29, 2022. Each warrant shall be redeemable no later than one year after the Registration Statement to be filed by the buyer becomes effective. The exercise price for the underlying shares of stock shall be 20% below the average of the bid and the ask price of the opening quote immediately subsequent to the Registration Statement becoming effective.**

## Ex1A-6

**Exhibit 6.4**

**SIBANNAC, INC.**

**LETTER OF INTENT**

**FOR PURCHASE OF SPUR BIOTECH, LLC**

This Letter of Intent (the "LOI") outlines the key terms of a proposed purchase of SPUR BIOTECH, LLC, an Ohio limited liability company, located in Hudson Ohio, hereinafter referred to as the company ("Company" or "SPUR") by SIBANNAC, INC. ("Purchaser" or "SIBANNAC"). SPUR has the right but not the obligation to sell, assign, transfer, or exchange its ownership interest to a newly formed acquisition company prior to the final definitive agreement.

Transaction: The Company is in development of organic plant vaccine.

SIBANNAC, Inc. is a Nevada corporation and is publicly traded on the OTC market as SNNC. The company is engaged in the development, marketing and sale of beverage and supplement products.

Phase 1: SIBANNAC acquires up to, but not to exceed 46.5% of the membership units of SPUR in exchange for a newly created class of SIBANNAC stock. This class shall be designated as an 8.25% coupon non-convertible preferred, held solely by SPUR, and shall contain such other terms and designations as the parties mutually agreed upon in a definitive Agreement. The amount will depend on the total amount provided. See Exhibit A for further clarification.

Such Agreement shall also provide terms for the remaining 51% of SPUR's membership interest, whether in cash and/or stock or some other arrangement.

Upon closing, SIBANNAC will add a seat to the Board of Directors and SPUR shall designate the individual to fill the vacancy, subject to said individual's eligibility to sit on the board of directors of a public company.

Phase 2: SIBANNAC shall conduct an audit and upon issuance shall file the necessary documents with the SEC as a fully reporting company.

Phase 3: SIBANNAC will file a secondary public offering under Regulation A, seeking up to $50M. The parties will agree to terms in the definitive agreement regarding the benchmarks to be achieved through the offering.

To Be Determined:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Un-wind of acquisition if benchmarks are not achieved – see Exhibit B

During the pendency of the proposed transaction, any funds raised by SIBANNAC in an equity sale shall not exceed 24% of the outstanding stock issued and shall not have any effect on SPUR's equity position upon closing.

SPUR BioTech, LLC, (SBT-O) is an Ohio Limited Liability Company. SBT-O creates high performance plant bio-derived products from genetically modified plant crops as attractive alternates for biopharmaceuticals. SBT-O's IP protected technologies enable the biochemically tailoring of targeted molecules using a non-transgenic plant stem cell which is then genetically modified through plant crop breeding thus yielding high thru-put propagation and rapid automated full spectrum biome crop growing.

Phase 1: SPUR BioTech, LLC (the Ohio LLC hereby noted as SBT- O) is to be acquired by SPUR BioTech, LLC (the Arizona LLC hereby noted as SBT-A). Shares before and after are noted in Exhibit A.

Phase 2: If SNNC does not perform with providing funding within the next 90 days, then either party can negate the transaction. If SNNC only partially performs, yet is acceptable to SBT-A, the their equity ownership is noted in Schedule B.

Phase 3: The current shareholders of SBT-A (minus SNNC's allocation) will receive a royalty based on a per dosage of $1.50 to be maintained on an indefinite period of time.

Dispute Resolution: Mediation and arbitration are required if unresolved.

Execution: The Parties shall execute this Term Sheet by July 18, 2022.

Due Diligence: Acceptable business, technical, financial, legal and tax due diligence by the Parties. This is a non-binding letter of intent.

Expenses: Each party is responsible for its own legal fees and other expenses..

---

| | |
|:---|:---|
| Confidentiality and Nondisclosure: | No party will make any public announcement of the signing of this LOI or the transactions contemplated hereby or of the pendency of discussions between the parties or disclose the contents of this LOI without the consent of the other party hereto, except as otherwise required by law. |

---

**COMPANY:**

SPUR BIOTECH, LLC

---

| | |
|:---|:---|
| By: <u>/s/ D.J. Keehan</u> <br> D.J. KEEHAN<br> Managing Member | <u>7/18/22</u><br> Date |

---

**SIBANNAC, INC.:**

---

| | |
|:---|:---|
| By: <u>/s/ David Mersky</u> <br>DAVID MERSKY<br> CHIEF EXECUTIVE OFFICER<br> SIBANNAC, INC. | 7/18/22 |

---

Exhibit A

Current % Allocation of Units

The initial ownership of SPUR BioTech Ohio before acquisition of SPUR BioTech Arizona is as follows

---

| | |
|:---|:---|
| SPUR BioTech, LLC |  |
| SPUR Catalyst, LLC | 65.80% |
| DJ Keehan | 21.93% |
| Randy and Nye Family | 43.87% |
| Stephen Hanudel | 1.00% |
| Michael O'Boyle | 1.00% |
| Chris Gonda | 0.60% |
| Laura Steelman | 0.60% |
| Hans Katensmith | 10.00% |
| Michael Turcotte | 10.00% |
| Ajay Mahajan | 9.00% |
| Leah Shriver | 1.00% |
| Catherine Konopka | 1.00% |
|  | 100.00% |

---

EXHIBIT A (CON'T)

Final % Allocation of Units

The final ownership of SPUR BioTech Ohio after acquisition of SPUR BioTech Arizona and a 95% dilution - is as follows:

---

| | | | |
|:---|:---|:---|:---|
| Reduction % | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;95% |  | 500000 |
| Revised SPUR BioTech, LLC | % Based on Reduction | % After Adjustment | # of Shares |
| SPUR Catalyst | 3.29% | 3.30% |  |
| DJ Keehan | 1.10% | 12.50% | 62500 |
| Randy and Nye Family | 2.19% | 2.50% | 12500 |
| Stephen Hanudel | 0.05% | 0.50% | 2500 |
| Michael O'Boyle | 0.05% | 0.50% | 2500 |
| Chris Gonda | 0.03% | 0.30% | 1500 |
| Laura Steelman | 0.03% | 0.30% | 1500 |
| Hans Katensmith | 0.50% | 2.50% | 12500 |
| Michael Turcotte | 0.50% | 10.00% | 50000 |
| Ajay Mahajan | 0.45% | 5.00% | 25000 |
| Leah Shriver | 0.05% | 0.50% | 2500 |
| Catherine Konopka | 0.05% | 0.50% | 2500 |
| MDHC Johnson Family Partnership | 0.00% | 9.20% | 46000 |
| Cantera Family Office | 0.00% | 9.20% | 46000 |
| Sibannac | 0.00% | 46.50% | 232500 |
| Treasury Stock | 0.00% | 0.00% | &nbsp;&nbsp;- |
|  | 5.000% | 100.00% | 500000 |

---

\* Each investor receives twice their principal investment back in the form of preferred interest.

It should be noted that upon at time of initial distributions, the investors as noted here and on page before are to receive twice their investment returned (their investment plus a 100% return)). This will have no impact on their equity allocation noted in Column titled ***% After Adjustment.***

Exhibit B

Benchmarks

It is understood that Sibannac could provide more or less than the planned $1,000,000 for the 1,000,000 shares of preferred. SNNC's equity ownership is The formula is the maximum amount of SNNC's ownership of SPUR (46.5%) - multiplied by the amount of the loan provided - divided by the maximum amount of funds to be provided ($1,000,000).

An example of various scenarios:

---

| | |
|:---|:---|
| Max. Loan<br> Planned by<br> SNNC | Max. SNNC<br> Planned % |
| $1000000 | 46.50% |
| Amount of<br> Loan Provided | Allocation<br> Factor |
| $500000 | 23.25% |
| $750000 | 34.88% |
| $1000000 | 46.50% |

---

## Ex1A-12

**EXHIBIT 12.1**

**LAW OFFICE OF CARL P. RANNO**

CARL P. RANNO Attorney and Counselor at Law 2733 EAST VISTA DRIVE PHOENIX, ARIZONA 85032 Telephone: 602-493-0369 Email: carlranno@cox.net

February 7, 2023

Sibannac, Inc.

9535 E. Doubletree Ranch Rd. Ste 120

Scottsdale, AZ 85258.

Attn; David Mersky, CEO

Via email: david@snncinc.com

RE: Opinion to be included with a Post Qualification Amendment Form 1-A Offering Statement to be filed by Sibannac, Inc. a Nevada Corporation.

Dear Sir,

This opinion is submitted pursuant to Item 17.12 of Form 1-A with respect to the proposed offering of Sibannac, Inc. a Nevada Corporation (the Company) relating to the application for exemption from registration under Section 3(b) of the Securities Act of 1933, as amended (the "Act"), and Regulation A+ promulgated thereunder, of a maximum of 162,000,000 common shares consisting of 27,000,000 Units at an offering price of $0.15 per Unit ("Unit"). Each Unit consists of five shares of common stock (par value $0.001 per share) one warrant and one share of common stock that is issuable upon the exercise of the warrant at an exercise price of $.06 (the "Units"). The Company will not raise more than $20,000,000 in gross proceeds from this offering.

The Company has advised me that the purpose of this Post Qualification Amendment is to update the financials, update the business plans, to decrease the exercise price of the warrant and to increase the offering amount of the Company's shares of common stock.

For purposes of rendering this opinion, I have examined the Offering Statement, the Company's Articles of Incorporation filed with amendments, the Company's Bylaws, the Exhibits attached to the Offering Statement, and such other documents and matters of law as I have deemed necessary for the expression of the opinion herein contained. For the purposes of such examination, I have assumed the genuineness of all signatures on original documents and the conformity to original documents of all copies submitted. I have relied, without independent investigation, on certificates of public officials and, as to matters of fact material to the opinion set forth below, on certificates of officers of the Company.

On the basis of and in reliance upon the foregoing examination and assumptions, I am of the opinion that assuming the Offering Statement shall have become qualified, the Shares, when issued by the Company against payment therefore (not less than par value) and in accordance with the Offering Statement and the provisions of the Subscription Agreements, a form of which I have reviewed, and when duly registered on the books of the Company's transfer agent and registrar therefor in the name or on behalf of the purchasers, will be validly issued, fully paid and non-assessable.

I express no opinion as to the laws of any state or jurisdiction other than the applicable sections of the Nevada Business Corporation Act, as currently in effect and the federal laws of the United States.

I hereby consent to the filing of this opinion as an exhibit to the Offering Statement and to the reference to me under the caption "Legal Matters" in the Offering Circular constituting a part of the Offering Statement. This opinion is for your benefit in connection with the Offering Statement and may be relied upon by you and by persons entitled to rely upon it pursuant to the applicable provisions of the Act. In giving this consent, I do not admit that my firm is in the category of persons whose consent is required under Section 7 of the Act or the rules and regulations of the Commission.

Sincerely,

<u>/s/Carl P. Ranno</u>

Carl P. Ranno

### UNITED STATES SECURITIES AND EXCHANGE COMMISSION
**Washington, D.C. 20549**

## FORM 1-A

### REGULATION A OFFERING STATEMENT
### UNDER THE SECURITIES ACT OF 1933

### Item 1. Issuer Information

**Exact name of issuer:** Sibannac, Inc.

**Jurisdiction of Incorporation/Organization:** NV

**Year of Incorporation:** 1999

**CIK:** 0001313938

**I.R.S. Employer Identification Number:** 33-0903494

**Primary Standard Industrial Classification Code:** 2834

**Total number of full-time employees:** 1

**Total number of part-time employees:** 0

**Address of Principal Executive Offices:** 9535 E. Doubletree Ranch Rd., Ste 120, —, Scottsdale, AZ 85258

**Company Phone:** 4804076445

**Person to contact:** Carl Ranno, Esq.

### Financial Statements

**Balance Sheet Information**

| Metric                                   | Amount      |
|:---|:---|
| Cash and Cash Equivalents                | $9880.00    |
| Investment Securities                    | $0.00       |
| Accounts and Notes Receivable            | $9023.00    |
| Property, Plant and Equipment (PP&E)     | $7615.00    |
| Total Assets                             | $1161045.00 |
| Accounts Payable and Accrued Liabilities | $131994.00  |
| Long-Term Debt                           | $522000.00  |
| Total Liabilities                        | $831727.00  |
| Total Stockholders' Equity               | $329318.00  |
| Total Liabilities and Equity             | $1161045.00 |

**Statement of Comprehensive Income Information**

| Metric                                    | Amount     |
|:---|:---|
| Total Revenues                            | $0.00      |
| Costs and Expenses Applicable to Revenues | $0.00      |
| Depreciation and Amortization             | $0.00      |
| Net Income                                | $-99004.00 |
| Earnings Per Share - Basic                | 0.01       |
| Earnings Per Share - Diluted              | 0.01       |

**Auditor Information**

| Metric          | Amount   |
|:---|:---|
| Name of Auditor |  |

### Outstanding Securities

| Class                         |   Outstanding | CUSIP     | Publicly Traded   |
|:---|---:|:---|:---|
| Common Stock, $.001 par value |      80142821 | 82572P100 | OTC Markets       |
| Series A Preferred            |       5000000 | 0000000na | na                |
| none                          |             0 | 000000000 | na                |

### Item 2. Issuer Eligibility
- [x] The issuer certifies that all of the statements in this part are true.

### Item 3. Application of Rule 262
- [x] The issuer certifies that it is not disqualified and has not been involved in any disqualifying event.

### Item 4. Summary Information Regarding the Offering

**Tier:** Tier1

**Financial Statement Status:** Unaudited

**Type of Securities Offered:** Equity (common or preferred stock)

**Is this a delayed or continuous offering?** Yes

**Was or is the offering to take place within one year after qualification?** No

**Was or is the offering to commence within two days after qualification?** No

**Is this a best efforts offering?** Yes

**Was there any solicitation of interest?** No

**Are there any resale securities by affiliates of the issuer?** No

**Offering Amounts**

| Description                                                     | Amount      |
|:---|:---|
| Number of securities offered                                    | 135000000   |
| Number of securities outstanding                                | 80142821    |
| Price per security                                              | $0.15       |
| Issuer's aggregate offering price                               | $5670000.00 |
| Aggregate offering price of securities held by security holders | $0.00       |
| Aggregate price of securities offered concurrently              | $294500.25  |
| Total aggregate offering price                                  | $5964500.25 |

**Anticipated Fees**

| Service Provider   | Name             | Fees     |
|:---|:---|:---|
| Auditor            |  |  |
| Legal              | Carl Ranno, Esq. | $1000.00 |
| Promoters          |  |  |

**Estimated Net Proceeds to the Issuer:** $5670000.00

### Item 5. Jurisdictions in Which Securities are to be Offered

- All States and Territories

### Item 6. Unregistered Securities Issued or Sold Within One Year

**Name of Such Issuer:** Sibannac, Inc.

**Title of Securities Issued:** Common Stock

**Total Amount of Securities Issued:** 9816675

**Amount of such securities sold by principal security holders:** 0

**Aggregate consideration:** $294,500.25 at $0.03 per share

**Basis for aggregate consideration:** —

**Securities Act Exemption:** Exempt from registration under Regulation A and Section 4(2) of the Securities Act , as Amended, and the Rules promulgated thereunder.