Bright Star Scientific Hemp Gobbler
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Bright Star Scientific LLC is raising funds to purchase a biomass processing machine and open a processing facility. Industrial Hemp is used to produce valuable products that are legal to sell to the general public, when they have less than 0.3% Tetrahydrocannabinol (THC). Those products, including Cannabidiol (CBD), Cannabigerol (CBG) and several others, are very valuable in the marketplace. We will start with CBD and CBG in phase one, pay off all lenders, and then purchase the unit processing machines to create carbon related products in phase two. The machine, The Hemp Gobbler, is a low cost, easy to operate, patent-pending “Swiss Army Knife Type” BioMass Modular Processing System. It has been designed and tested and will be used for the conversion of approximately two tons per day.
Cannabidiol, or CBD, has been identified as useful for creating a healthy human body. Overwhelming official and anecdotal evidence has proven that many Cannabinoids have a positive effect on people and animals. CBD oil has been quickly incorporated into many over-the-counter consumer products and has experienced a remarkable growth to date. The CBD product market started just a few short years ago and is developing quickly; it is at an early stage.
The production facility will consist of an 8’ X 40’ portable Hemp Gobbler mounted on skids and carried by a flat-bed trailer. Additional processors will be added as needed and funded from revenues.
The system will be fabricated by a very established engineering firm based in Houston, TX called SepPro Systems (http://www.sepprosystems.com/). The equipment will be delivered to the processing site approximately sixteen weeks from the order date. It is expected to be in service within 15 days after delivery and operating at capacity within the following 30 days.
The Hemp Gobbler is energy efficient and produces gas by-products which can be used during the process, thereby reducing utility costs and fossil fuel consumption.
The process does not use solvents such as ethanol, CO2, or any other. That fact means that there will automatically be at least 20%-30% more Cannabinoids harvested because solvents dissolve plant matter. This green system is a pyrolysis machine, utilizing heat to vaporize the Cannabinoids and turning the stems and stalks to biochar. The gas that is released by the plant biomass in the process will be used to provide energy for the machine.
We have many options for sourcing biomass as there are many producers. However, we are building a seed to shelf system with three other farming and final manufacturers that will utilize the very best core competencies of each group. More details later. This machine is an integral part of that plan.
ECONOMICS OF THE DEAL ARE ATTRACTIVE FOR SOME LENDERS
- Loans from Accredited Investors only
- Simple Agreement for Future Equity (SAFE) alternative
- 20% interest rate on your loaned amount
- Fully amortized repayment over 24-month term with the opportunity for early redemption with full repayment of interest.
- Annual debt service for this loan is covered 36 times by annual EBITDA lasting for a term of 2 years
PROPRIETARY HIGH-TECH SYSTEM CREATES HIGH VALUE OFFTAKE PRODUCTS
- The Hemp Gobbler creates CBD and other high value by-products
- The Hemp Gobbler creates a continuous flow of two separate products that are similar or superior to competitive products
- Offtake products are experiencing increasing demand and substantial value
- Active Letters of Intent for offtake are in place
- Efficient operation with low overhead and labor costs for low cost of goods sold
- Mobile units eliminate costs of real estate and buildings lowering production costs. This allows us to service remote farming communities if we choose.
|SUSTAINABLE COMPETITIVE ADVANTAGES||Hemp Gobbler 102||Co2 Solvent||CryoEthanol||Hexane/Butane|
|No dangerous and flammable solvents||YES||NO||NO||NO|
|No dissolving of Cannabinoids||YES||NO||NO||NO|
|Approximately 99% recovery, not~ 80%||YES||NO||NO||NO|
|Stalk not wasted||YES||NO||NO||NO|
|Plant not wasted||YES||NO||NO||NO|
|One step separation of Cannabinoids||YES||NO||NO||NO|
|Low Operating Cost||YES||NO||NO||NO|
|Very Low Emissions||YES||NO||NO||NO|
|Remote or off grid capabilities||YES||MAYBE||MAYBE||MAYBE|
|Can handle whole hemp plants||YES||NO REASON||NO REASON||NO REASON|
|Produces High Purity CBD||YES||YES||YES||YES|
The Industry Builders
The Industry Builders Inc. is a two-year-old company operating in the Industrial Hemp industry. The mission is to commercialize a Hemp processing technology, The Hemp Gobbler, for the extraction of CBD and other valuable Hemp-derived products.
The founder, Michael Bright, has a varied background that has prepared him for this opportunity in many ways. Michael worked for a Hemp biomass processing company in 2016-2017 called PureHemp Technology that was doing R&D with a Hemp processing machine. That is where he cut his teeth with processing Hemp.
Kevin Early, Michael’s longtime business associate, had success with building and running Cannabinoid extraction facilities in California in 2017 and 2018. Tennessee and Colorado licensed (Departments of Agriculture) Hemp producers for R&D and commercial purposes. This provided an opportunity to implement the processing of Industrial Hemp crops using connections with experts in processing, bio-refinement, product development, genetics, distribution, and other areas of expertise.
For years, Michael Bright and Kevin Early have been hunting for a machine that will take Industrial Hemp and process it into useable products. Between them, they have had entrepreneurial ventures with successful exits. The Hemp Gobbler technology will allow them to fast forward their introduction of hemp products into the marketplace.
Wayne Heftye has 40 plus years of designing, building and running oil and gas processing facilities and refineries. Wayne realized that a biomass processing technology from Utah State University would be well suited for processing industrial hemp to produce high value by-products.
Since joining forces in August of 2019, Wayne, Michael and Kevin have integrated their combined 60 years of experience to create this enterprise. Each of them has developed many valuable contacts in the Hemp and Cannabinoid industry, as evidenced by their ability to obtain Letters of Intent and purchase orders from several dozen companies that are ready to buy high quality CBD, CBG and CBN products.
Michael Bright, President
Michael is the Founder of several companies in the Cannabis and Industrial Hemp industries. www.BusinessPlans.MBA is a company that builds strategic business plans for people and companies new to the Cannabis and Hemp industries. BrightStar Scientific is the Hemp processing company that focuses on Cannabinoids and Carbon.
He has strengths and expertise in leadership, strategic management, risk management, disaster management, marketing and sales experience, advocacy, entrepreneurship, and medical practice management. A Bachelor of Science degree in business administration and an MBA degree in international business, as well as recently auditing masters and PhD. level classes in botany, genetics, DNA, organic and inorganic chemistry, thermodynamics, agriculture, energy sciences, several business courses and many other subjects demonstrate a love for education and life-long learning. www.LinkedIn.com/in/MichaelBright
Wayne Heftye, Technology Advisor
Wayne has over 42 years of energy industry knowledge and experience in Exploration and Production, Crude Oil Gathering, Marine, Pipeline, Rail Car and Truck Transport transportation, Processing, Logistics, Planning, Terminaling, Trading and Marketing of Crude Oil, Refined Products, Chemicals, and Related Products, and Management. He founded and managed eight successful businesses. Wayne also has developed and implemented several new processing technologies. His education includes a BBA, an MBA and Advanced Studies.
Wayne traded, marketed and handled over $8.2 billion in crude oil, refined products, chemicals and related products during the career. He produced over $50 million in the first six months of activity for a new company (as Reported by ABC News). In addition, he produced pre-tax income from trading and marketing of approximately $100 million or more over several years.
Wayne constructed and/or operated petroleum and biomass refineries, processing, terminals, and related facilities, including a 5,000 barrel per day Oil Refinery in Louisiana, which became the most profitable refinery (on a per barrel basis) during the 1980s and 1990s in the U.S.
Kevin Early, COO
Kevin Early grew his first cannabis plants in the 1990s. A decade later he was cultivating cannabinoid-rich plants for various cancer patients under Colorado’s MMJ Program while conducting R&D through his personally-funded breeding projects. By 2009, Kevin had started Ever-Green Herbal Remedies LLC which broke him away from Colorado’s caregiver model, allowing for an ability to help a greater number of medical marijuana patients while continuing to create unique cannabis genetics.
His MMJ dispensary and MMJ cultivation facility were amongst the first generation of licensed facilities in the nation. In 2013 he placed 3rd at the Colorado Ganja Bowl, for his flower entry of a Pre98 Bubba Kush x 1976 Afghan Kush. As Colorado’s cannabis industry progressed into a recreational framework, so did Kevin’s operation. His facilities were licensed for both medical and recreational, giving him a wider market to explore. Since then, his efforts have covered much ground in the cannabis industry including medical, recreational, and hemp operations. To date, his experience includes operational endeavors in Colorado, California, and Tennessee with additional collaborative ventures in Oregon and Kansas.
Tennessee and Colorado licensed (Departments of Agriculture) Hemp producer for R&D and commercial purposes. Ability to implement production of Industrial Hemp crops with utilization of network connections in processing, bio-refinement, product-development, genetics, distribution, and other areas of the industry.
Bright Star Scientific LLC is raising $2.75 million through debt financing which is offered to lenders with a 20% annual interest rate on a fully amortized 24-month loan with payments starting at the beginning of the month after the completion of funding. A Simple Agreement for Future Equity (SAFE) is also available.
$1,130,000 will be used for the Hemp Gobbler and related machinery, and $1,454,225 will be used for startup and Operating Expenses, and materials to begin production.
The conservative projections are based on the following assumptions:
- Low cost feedstock will be acquired from several sources, namely other extractors who have low performing machinery and are done with the biomass. It usually goes to the landfill or is burned as agricultural waste. We know there is at least 1-3% CBD in the biomass that has been run once. There are also many farmers who are growing Hemp and have tonnage of biomass to sell inexpensively.
- Two, 10-hour per day processing cycles from one Hemp Gobbler.
- 4,000 lbs. of 2-10% CBD Hemp will be processed by the Hemp Gobbler per day.
- The processing continues to a THC-free distillate state receiving 2,600 kilograms per month and sold for a conservative $1,000 per kilogram, starting August 2020.
- The remaining portion of by-products create an income stream from selling THC-free distillate of Cannabinol (CBN) and Cannabigerol (CBG) to pharmaceutical companies @ an averaged $5,000 per kg (not the market price of $20,000+ CBN per/kg).
Plans call for unit process development of other product streams to commence in early 2020 and to be market-ready before the end of 2020. Our goal is to have multiple Hemp Gobbler units across the nation.
The intersection of modern industrial machines and the emerging market of Industrial Hemp is manifested in the financial projections noted below.
|Pro-Forma (P&L)||Year 1||Year 2||Year 3|
|Initial OpEx & COGS||$1,475,889|
Only once in a lifetime does a brand-new market appear. The Cannabis and Hemp movements were borne out of pure common sense, advocacy, the utility of the feedstock, political pressures, tax revenues, and tired economic pressures. The Cannabis plant has seemingly burst onto the international stage after the United States federal government got a patent (#6,630,507) on Cannabis as a medicine. The molecule sets that can be created by this useful plant are very numerous. The immediate need is for funding. Vertical industrial services and products that surround Cannabinoid exploitation, grain and fiber and the myriad products they create, are the trillion-dollar play.
Cannabis and Hemp crops have been continuously bred and farmed for thousands of years because of their utility. There are about 2,000 varieties of Cannabis plants and they segment themselves very cleanly into three categories - THC-rich, medical preparations, and Industrial Hemp, depending on the combination and concentration of Cannabinoids:
- THC-rich varieties (over 0.3% legally) are called Adult Use, or Recreational. Many people believe that the medical preparations that have some ratio of THC present are the most effective. This Hemp Gobbler has nothing whatsoever to do with working with THC.
- Cannabidiol, or CBD, has been identified as one of the Cannabinoids that has medical value for the Human body. Overwhelming official and anecdotal evidence has proven that many Cannabinoids, and especially Cannabidiol, has a positive effect on people and animals. Each state, town, community, manufacturer, store, processor, farmer, genetics company, consumer and entrepreneur must examine exactly what that product, plant, field, greenhouse, is producing and testing at, when it comes to the cannabinoids.
Industrial Hemp is called that because farmers, processors and manufacturers take the non-THC plant down to its molecular level and sell it to industry. Why would that be done, you ask? Because it is a very useful group of sets of molecules. Generally, you have flowers, seeds and stalk which has two parts the fiber bark called bast, and the woody inner part called hurd. The seeds are highly nutritious and have a nutty flavor. The fiber part of the stalks have been used for millennia for ropes and textiles, and the hurd has been used for construction and building materials for thousands of years. Modern uses include the intermediate materials for air and water filters, and composite materials for a myriad of high-tech products.
The liquid output from the Hemp Gobbler will be tested by independent laboratories prior to sale. Production will concentrate on not only Cannabidiol (CBD) but also other Cannabinoids such as Cannabigerol (CBG) and Cannabinol (CBN) which provide strong profit margins. These Cannabinoids are used in medical research, pharmaceutical and cosmetic industries and are in high demand.
According to the Brightfield Group, U.S. CBD product sales are expected to increase from around a pedestrian $600 million in 2018 to $23.7 billion by 2023. For those of you keeping score at home, this is, indeed, a compound annual growth rate of more than 100% per year over a five-year stretch. This makes CBD a much faster-growing niche than Cannabis as a whole. https://www.fool.com/investing/2019/12/16/4-things-to-know-about-the-fdas-cbd-guidance.aspx
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