Sum Microdose Expands into California

KelSie Biotech today announced its expansion into the California market with a manufacturing and

licensing deal with Verde Natural, a highly successful Colorado and California based manufacturer of top-

quality cannabis products. This expansion follows on the heels of explosive growth for Kelsie’s SUM

Microdose brand with over 30% quarter-over-quarter growth and distribution expansion into more than

130 Colorado dispensaries.

Verde, led by founder Jeff Damavandi and COO Andrew Salini, is a highly respected leader in

the cannabis industry – as a premium cultivator and retailer. The deal makes Verde the

producer and distributor of SUM Microdose for both Colorado and Verde’s newest market,

California, and allows KelSie to continue to focus on science-based product and patent

development.

“Verde is honored to be chosen by KelSie Biotech,” said Damavandi. “We are laser-focused on

producing the highest quality products and SUM fits that ethos – while helping us expand to

completely new consumers.”

KelSie continues to actively pursue expansion with operating partners in other geographies.

Growing Product Line: Announcing Launch of SUM Sleep

In July 2018, SUM launched with four patented and fast-acting, water-soluble sublingual tablet

SKUs: Calm, Relief, Focus, and Energy. Midyear, it expanded the line to include a topical (rollon) SUM Relief product for direct application to sore muscles and joints. And, this week, the

lineup expands with the launch of SUM Sleep in its sublingual tablet format.

SUM Sleep employs the naturally sedative effect of a cannabinoid called Cannabinol or CBN.

Combined with a microdose of THC, CBN triggers the body’s own sleep cycle without the use of

hormones such as melatonin or the side effects found in pharmaceutical sleep aids. The result

is a deep, natural, restful sleep. And, as a sublingual absorbed through the mucosa, it bypasses

the stomach to work in mere minutes. It also provides a more desirable consumer experience

than oils that tend to pool up and get swallowed.

“What we hear most from our dispensary partners,” notes KelSie CMO Steven Addis, “is that

SUM replaces edibles and tinctures. In fact, some dispensaries have entirely replaced tinctures

with SUM and we’re helping them create Microdose sections inside their stores to improve the

shopping experience for the fast-growing wellness audience.”

Series A Financing

KelSie Biotech recently announced closing the first tranche of $5 million Series A funding. The

investment round, led by Salveo Capital, a leading cannabis focused investment firm, with

participation from LA-based Arcadian Capital and other investors, will support the company’s

scientific research and market expansion. The second closing, open to accredited investors, is

expected to be completed in September 2019.

“We constantly look for new and innovative technology that drives consumption patterns and

introduces healthier and more discreet form factors across the pharma industry,” said Jeffrey

Howard, a Managing Partner at Salveo Capital. “We are impressed with KelSie’s strong

patented and proprietary technology, including their true sublingual delivery systems with quick

onset times.

The Microdose Movement

KelSie Biotech believes we are witnessing the beginning of a Microdose Movement for

cannabinoid selfcare. With funding in place, a growing team of operating partners beginning

with Verde Natural, and an expanding line of uniquely effective products, SUM Microdose will

continue to lead the Movement.

About KelSie Biotech

The people of Kelsie Biotech are passionate to make the delivery of active pharmaceutical

ingredients (APIs) more effective, safer, and less invasive. Whether licensing its patented

technology to pharmaceutical companies or to operating partners in the CBD/cannabis space,

KelSie pioneers highly bioavailable delivery methods with a wide range of applications.

KelSie’s backstory comes from science beyond cannabis. Its patented micro-powder was first

developed thanks to a $20M Bill and Melinda Gates Foundation grant to revolutionize measles

vaccine delivery. The recipient of that grant, Dr. Robert Sievers, developed a replacement for

expensive, needle-based, perishable vaccines in developing countries. After his dry-inhaled

powder technology successfully completed Phase I Clinical Trials for delivery of a stable

measles vaccine, Dr. Sievers focused his patented superior drug delivery methods to other

active pharmaceutical ingredients (APIs). A group of scientists and researchers gathered

around Dr. Sievers to create KelSie Biotech.

KelSie Biotech’s patented and proprietary technologies are based on novel particle morphology

science and include dry-inhaled powder and true sublingual delivery systems. KelSie creates

high bioavailability delivery methods for active pharmaceutical ingredients in the medical,

nutraceutical, and CBD/cannabis fields.

About Salveo Capital

Launched at the end of 2016, Salveo Capital is a venture capital firm specializing in the

legalized cannabis space, making investments across the entire cannabis supply chain. Salveo

Capital's approach is to bring an institutional quality discipline to company vetting, investment

structures and portfolio management. The Firm is committed to shaping the early-stage, yet

rapidly growing, industry by providing funding and development to companies with the will and

vision to be the pioneers of legalized marijuana. As cannabis legalization spreads, Salveo

Capital seeks to build long term sustainable companies and support innovative technologies,

products and services to help address the unique requirements of the industry. The firm is

based in Northbrook, Illinois, and with vertical industry executives and cannabis operating

advisors across the country, including key markets of California and Colorado. For more

information, please visit www.salveocapital.com.

About Verde Natural

Founded in Colorado in 2009, Verde Natural has established itself as an industry leading

cultivator and retailer known for producing connoisseur grade cannabis flowers using its

proprietary living soil, organically fed, cultivation methodology. Verde’s living soil process was

originally developed in fabled Humboldt, CA during the early days of the medical market, based

on the belief that cannabis is a medicine with panacea-like healing properties and therefore,

should only be grown as nature intended—using only organic inputs in living soil. The Verde

Family of Brands has grown into a fully vertically integrated medical and recreational cultivator,

retailer, wholesaler and extractor, offering both high quality hydrocarbon (Fuego Extracts) and

solventless (Dablogic) hash, edibles, and vaporizer products in Colorado and California; now

including SUM Microdose. Paramount to all of Verde’s brands is a commitment to quality,

sustainability, and customer education.

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Direct inquiries (press, investment, state licensing) to:

Steven Addis

KelSie Biotech

s.addis@kel-sie.com

Sean Doyle