IS PROUD TO OFFER

MADE IN CANADA

COLOR AD PACKAGING LTD 200 Beghin Avenue Winnipeg, MB R2J 3W2

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TABLE OF CONTENTS: INTRODUCTION…………………………………………………..……………………………..………. 3

CHILD-RESISTANT POUCH DESCRIPTION……………………….……………………..…………… 3

SIZES……………………………………………………………………………..………………………. 3

COLOURS & GRAPHICS………………………..……………………..……………………..………… 4

MATERIAL STRUCTURE……………………..……………………..……………………..……………. 5

SUSTAINABILITY……………………………………………………………………………………….... 5 FOOD SAFETY CERTIFICATIONS……………….…………….…………………………….…………. 6

CHILD-RESISTANT CERTIFICATIONS……………….…………….…………………………….……. 6

AUTOMATED MACHINERY INFORMATION (Sealing, Filling, Labelling, etc.)..……………………… 7

SUMMARY………….……………...…………………………….…………………………….………… 8

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INTRODUCTION

Color Ad Packaging Ltd. (located in Winnipeg, Manitoba) has been operating in the flexible packaging industry since 2001. We are Global Food Safety Initiative (GFSI) and FSC certified with annual sales over $60 million. In our early years, we specialized in the production of popcorn bags. Today, Color Ad has expanded its production facility to include roll-stock print, stand-up pouches, boutique paper bags and child-resistant pouches. We’ve established ourselves in a unique niche defined by our highly responsive nature and world-class print capabilities. We’ve been excited to offer our services to the regulated cannabis industry since January 2017. We’ve shown our support though association membership’s and industry event participation (such as Cannabis Council of Canada, C45 Quality Association, California Cannabis Industry Association, Lift, MJBizCon, GrowUp, and more). We’ve exhibited at multiple industry shows and events, and we offer a Made in Canada, Child-Resistant pouch which conforms to Part 7 (Packaging & Labelling) of the Cannabis Act. Please visit www.colorad.ca for more company specific information or discuss further with your Color Ad sales contact representative. CHILD-RESISTANT POUCH DESCRIPTION Color Ad has tested our Child-Resistant pouch using the Code of Federal Regulations, Title 16, Section 1700 (1700.15 & 1700.20) as our testing protocol and used the services of Tread Global for testing (https://treadglobal.com/product-testing/) CR TESTED SIZES

1. 3.6"x 4.89" (optional 1.5” gusset) a. Weight of pouch = 4.6 grams

2. 3.6” x 5.86” (optional 1.5” gusset) a. Weight of pouch = 5.6 grams

3. 4.0” x 7.12” (optional 1.9” gusset) a. Weight of pouch = 7.1 grams

4. 5.875 x 4.89” (optional 1.5” gusset) a. Weight of pouch = 8.7 grams

5. 8.0” x 6.0” (optional 2.63” gusset) a. Weight of pouch = 13.2 grams

Please be sure to discuss ISO 8317 for custom CR pouch dimension orders with your Color Ad sales representative to better understand how custom sizes conform to the Code of Federal Regulations, Title 16, Section 1700 (1700.15 & 1700.20).

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COLOURS & GRAPHICS You have the option of ordering our stock graphic SecureSack pouch design or create your own custom solution. Below is an illustration of the Stock SecureSack Graphics in black & white, but we have the ability to print any PMS colour you feel would work best for your brand.

The SecureSack Stock design pouch (pictured above), include the following warning & opening instructions;

Custom graphics and print are available as well;

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MATERIAL STRUCTURE

LAYER MATERIAL POLYMER NAME THICKNESS FINISH Barrier Outer Layer CLR PET

or MATTE OPP

Clear Polyethylene terephthalate or Oriented Polypropylene

48 gauge or 80 gauge

Shiny or Matte Poor

Middle Layer MET PET Metallised coated Polyethylene terephthalate

48 gauge Metallic Excellent

Inner Layer (Direct contact with product)

LDPE (Direct Food Contact Safe)

Low-density polyethylene

4 mils or 3.5 mils

Clear or White Medium

Our 3-ply laminated structure prevents children from ripping into the pouch and protects the packaged product from contamination based on the exceptional vapour and moisture barrier properties of the substrates used to create the pouch;

MVTR = moisture vapour transmission rate OTR = oxygen transmission rate SUSTAINABILITY Color Ad Packaging has optimized our production procedures to ensure we collect and recycle all materials whenever possible. We are proud of our Annual Cascades Report where we’ve saved tens of thousands of trees, water, and more. We are focused on consistently improving our products to ensure we offer the most environmentally friendly solution available. Our current certified Child-Resistant pouch is #7 recyclable. While most municipalities in Canada do not currently collect #7 plastics, as of April 22nd, 2019, TerraCycle launched a Country wide recycling program which our pouch is accepted and recycled through. Color Ad has also successfully produced a +95% PE pouch, which provides exceptional oxygen and moisture transmission barriers. This would be considered a mono-polymer plastic and considered #2 recyclable. The overall footprint of a flexible pouch compared to any rigid container can’t be ignored, the production of a rigid container has a water footprint that is 660% larger than the pouch, higher greenhouse gas emissions by 726%, and a rigid PET container has a fossil fuel usage nearly 504% greater than that of a flexible stand-up pouch with zipper. Please be sure to speak with your sales representative further about all of our sustainability options. This is an area of daily focus for our Color Ad team and the entire packaging industry. Innovations are occurring daily and we want to ensure you have the most up to date information.

BARRIER PET OPP MET PET PE MVTR (g/100in²/24hr) 2.6 0.452 0.042 0.37

OTR (cc/100in²/24hr) 6.5 161 0.05 163

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FOOD SAFETY CERTIFICATIONS Color Ad Packaging recognizes the importance of public safety and is proud to be a fully certified food grade packaging facility. Annually, our 160,000 square foot facility is audited by an ISO/IEC 17065 Product Certification Body to ensure we meet the requirements set forth in ‘IFS PACsecure, Version 1, October 2012’ for the following scope: “The gravure and flexographic printing, laminating, foiling and converting of plastic films and paper substrates to make Roll Stock, Roll-fed Beverage labels, Preformed Bags, Stand-Up and Die-Cut Pouches for food (primary and secondary) and non-food industries. We are pleased to report our 2019 score of 98.8% CHILD-RESISTANT CERTIFICATIONS

The Canadian Food & Drug Regulations defines Child-Resistant as a package that;

(a) when tested in accordance with an acceptable method,

o (i) in the case of a test group comprising children, cannot be opened (A) by at least 85 per cent of those children prior to a demonstration to them of the proper means of opening the package, and (B) by at least 80 per cent of those children after the demonstration, and

o (ii) in the case of a test group comprising adults (A) can be opened by at least 90 per cent of those adults, and (B) where the package is designed so that, once opened and reclosed, it continues to meet the requirements of subparagraph (i), can be so reclosed by at least 90 per cent of those adults; or

(b) complies with the requirements of one of the following standards, namely,

(i) Canadian Standards Association Standard CAN/CSA-Z76.1-M90, entitled Recloseable Child-Resistant Packages, published January 1990, as amended from time to time,

(ii) European Standard EN 28317:1992, entitled Child-resistant packaging—Requirements and testing procedures for reclosable packages, as adopted by the European Committee for Standardization on October 30, 1992, recognized by the British Standards Institution, and effective February 15, 1993 and by the Association française de normalisation, and effective December 20, 1992, and which reiterates fully the international standard ISO 8317:1989, as amended from time to time, and

(iii) Code of Federal Regulations (United States), Title 16, Section 1700.15, entitled Poison prevention packaging standards, as amended from time to time.

Color Ad Packaging has tested multiple sizes of our SecureSack pouch and received a certificate of compliance from a third-party testing laboratory. The test results indicated that our SecureSack

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pouch is compliant with the Code of Federal Regulations (United States), Title 16, Section 1700 (including 1700.15 & 1700.20) If you wish to obtain a copy of any of our certifications, please let us know and we will proudly forward you a copy. AUTOMATED MACHINERY INFORMATION (Sealing, Filling, Labelling, etc.)

- Heat Sealing the Pouch o As a general guideline Color Ad would recommend 150-170 C/40 psi/500 ms for

this pouch structure. You’ll need to be careful not to go over 170 C at 500 ms dwell time. In other words, it is possible to increase the temperature only if you decrease the dwell time. As an example, 180-190 C/40 psi/250-300 ms would work. It is all about the speed and how fast you seal the pouch. Any time you feel the material is sticking to the heat sealer, you will need to know it is because of either too much heat or to long of dwell time.

o There are two types of sealers you can purchase “Constant Heat sealers” and “Impulse Heat Sealers”.

I. “Constant Heat sealers” offer a great-looking extra wide seal that is better than

II. “Impulse Heat sealers” for applications that require extra secure sealing. Color Ad recommends a constant heat sealer.

o Sorbentsystems are known for their sealing equipment. They have portable handheld sealer, food pedal sealer as well as semi-automatic constant heat sealer. You can call them and ask for more details. Here is their website: https://www.sorbentsystems.com/products.html#sealers

o Acklands-Grainger is another supplier, but they carry more impulse sealers than constant heat sealers; https://www.acklandsgrainger.com/en/category/Polybag-Sealers/Bags-and-Bag-Accessories/c/8798?q=%3AtopSeller&page=1&pagesize=16

o Or, Google “Constant Heat Sealers” and find a list of many other suppliers; https://www.google.ca/search?safe=off&ei=Ksa8W_CBHcTKjwTG2JyYBQ&q=constant+heat+sealers&oq=constant+heat+sealers&gs_l=psy-ab.3..35i39k1j0i8i30k1l2.2949.2949.0.3590.1.1.0.0.0.0.76.76.1.1.0....0...1c.1.64.psy-ab..0.1.76....0.RKlShnOdG_U

- Machine’s that can Auto-Fill the Pouch:

o https://www.weighpack.com/pre-made-bags/ o https://www.paxiom.com/premade-pouch-filling-machines/ o https://mdpackaging.com

- Pressure Sensitive Label supplier: o https://jet-label.com/ o https://ccllabel.com/portfolios/beverage-pressure-sensitive-labels/

- Auto Label Applicator: o www.accentlabelautomation.com

§ https://www.youtube.com/watch?v=Z3-wPxcSsHI&t=2s o https://www.jet-marking.com/product-category/currentfeatured/

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- Continuous Ink Jet Printer (can apply variable information such as packaged on date and THC/CBD potency):

o https://www.jet-marking.com/product-category/currentfeatured/ § https://www.dropbox.com/s/frrvwds1qbygg5i/Video%202019-01-

17%2C%202%2017%2050%20PM.mov?dl=0 SUMMARY Color Ad Packaging Ltd. is proud to be the North American pouch manufacturer of the SecureSack pouch. We provide industry leading turnaround times, superior print quality, and the industry’s best service. Our SecureSack pouch meets all Canadian & USA regulations including: - Code of Federal Regulations (United States), Title 16, Section 1700.15,

entitled Poison prevention packaging standards - ISO 8317 - And is safe for direct food contact packaging -

The SecureSack pouch locks in freshness, flavour, potency and protects your product from contamination. For more information please contact COLOR AD PACKAGING LTD. Chris Bromley, Director Child-Resistant Packaging, cbromley@colorad.ca (ext. 229)