STRATEGIC FORMULATION

Assignment:1
Wealthcraft Capital is a health and wellness company
focused on acquiring private companies in the emerging hemp and CBD industry. The Company
intends to acquire controlling interests in businesses with a view to becoming vertically
integrated across hemp cultivation and processing, CBD-based product production, branding,
distribution and sales. Wealthcraft intends to work with these acquisition partners to develop
wholesale markets, products and brands that can be introduced into the retail wellness market as
well as patient-based facilities and clinics.
Wealthcraft Capital has repositioned its strategy in response to the 2018 Farm Bill. It is
refocusing its acquisition strategy towards hemp cultivation, processing and Cannabidiol (CBD)
products. The 2018 Farm Bill changes the entire landscape for the production, marketing,
distribution and sale of CBD and other health and wellness-oriented cannabinoids. It is believed
that this new law will release restrictions in banking and capital markets and accelerate the
growth by opening up all aspects of the CBD supply chain.
In response to its focus on CBD, Wealthcraft has entered into letters of intent to acquire a
controlling interest in two CBD companies. The first company is a Pennsylvania-based chain of
medical clinics that specialize in providing advice and certification for patients seeking
cannabinoid-based therapy. Through their nine clinics, approximately 25 wholesale distributors
and approximately 25,000 registered patients, the company provides medical cannabis
certification services and sells CBD products both online and through their network of clinics.
By leveraging the patient base of their partner-physicians, the company is able to directly reach a
wide segment of the population who suffer from a variety of chronic illnesses. This is a unique
and sustainable model for CBD sales, education and research that has incredible potential as the
company undertakes its expansion into four additional states in 2019.
The second letter of intent is with a Colorado-based company which produces and sells a variety
of branded CBD products, including sublingual & topical sprays, gel caps, vape-pens, and a
recently launched, proprietary metered CBD inhaler. The company has a strategic partnership
with one of Colorado’s largest processing labs, which ensures a continuous supply of consistent
quality, full spectrum CBD oil and isolate to meet current and future product demand.
Wealthcraft will work closely with Denver CBD partner to launch the new products, expand the
company’s online reach and fulfill various wholesale channels with product inventory. With the
development and implementation of federal regulations in the CBD industry, having a well-
funded, full scale supplier who is moving towards GMP compliance will be a critical competitive
advantage.