ROCKY MOUNTAIN HIGH BRANDS’ MANAGEMENT DISCUSSES THE PATH FORWARD IN TODAY'S ENVIRONMENT
PLANO, Texas – David Seeberger, CEO and General Counsel, and Charles Smith, Chairman and COO of Rocky Mountain High Brands, Inc. (RMHB) discuss how the Company is managing through this unprecedented period, where we are heading as a Company, and how we remain extremely optimistic about our future, despite challenges. We have summarized the key points for our shareholders.
A message from Management – Shareholder Message
With the impact of COVID-19 intensifying in the second and third quarters, and now entering the fourth quarter, the Company continued to prioritize the health and safety of our employees, combined with a strong focus on our customers and realignment of Rocky Mountain High Brands to its strengths.
This is an especially fitting time to consider the game-changing developments we have seen and reflect on what they mean for our Company’s future. We first want to say that we are very proud of men and women at Rocky Mountain High Brands, Inc. who have helped advance our business every day. They rose to the challenges of the pandemic by taking care of themselves, their families, and our Company. It is constant cumulative efforts of many that have made the path forward in today’s environment possible.
It is difficult to overstate the devastating impact of the pandemic on businesses and people around the world. The impact has been especially severe on our CBD industry as consumption contracted when economies closed due to the health emergency. As a new industry, we’re especially vulnerable.
While some companies have responded to the current COVID-19 pandemic with price-gouging and hoarding, we responded with opportunism. This is a time of great opportunity for the Company. We have achieved progress in so many things in a short period of time: Applying new strategies, acquiring assets, opening new production opportunities, and forging new partnerships. At the same time, we have captured efficiencies, and streamlined operations.
While COVID-19 is not yet behind us, we have become increasingly adept in our ability to adjust to changing times--becoming much more precise in targeting windows of opportunity, more creative in how we compete and more customized in what we deliver. We initiated strategies for each of our core businesses focused on improving competitiveness. These strategies defined how we would improve revenue and cash-flow. We updated the leadership framework and revitalized our performance assessment process.
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The Company underwent vertical integration by acquiring the assets of a co-packing company at the end of April this year. One of the biggest benefits of this acquisition is that it created economies of scale. It strengthened our supply chain, lowered production costs, cut down on delays in delivery and transportation, substantially reduced minimum production quantities and scheduling concerns. And, by keeping our management consolidated, overhead and other costs were reduced, i.e., the corporate office was closed and relocated to the production facility.
Looking ahead, we are confident that we can further strengthen our business in the second half of the year. Though not complete, the following are key messages in the path forward in today’s environment.
Form 10-Q Filing
We are working closely with the new auditing firm as well as the old firm to
Beverage Co-Packaging Assets Purchased – Wholly Owned Subsidiary Created
Rocky Mountain Productions, Inc. (RMP) was formed on April 30th of this year when the assets of Raw Pharma Capital, LLC were purchased by way of stock and owner financed, and became a subtenant of Bershtel Enterprises, LLC (Tenant) under their lease agreement with the landlord. This was a milestone event which significantly increased the size of RMHB and brought in-house a critical part of the production process that was previously outsourced. The acquisition has allowed us to control our own destiny, reduce costs, and improve efficiencies while creating future profitability.
The Form 10-Q for the 2nd quarter 2020 is currently under review by our new auditing firm.
file periodic
financial statements and other disclosures in the appropriate time periods. We expect filing to
be in an expeditious timeframe moving forward.
The Company specializes in cold fill beverages, concentrates and ready-to-drink beverages. We have a state-of-the-art facility that is uniquely positioned to provide our brand drinks as well as white label clients with all the best-in-class services needed to get products ready for store shelves. In addition, we can provide custom palletizing, labeling, and packaging to expertly finish a product. We maintain Good Manufacturing Practices and follow U.S. Food and
Drug Administration Standards.
Our modern production machines and expertise place us at the forefront of beverage, hand sanitizer, and energy shot packaging. Since our purchase, we have focused on developing tailor-made approaches to meet our customers’ changing needs and requirements. We offer total supply chain solutions that take care of every part of the process, from planning to production, and warehousing. We can handle the needs of any client who is in the industry of ready to drink beverages and energy shots, and gel or liquid hand sanitizers.
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Our turnkey capability means we are adept at stages of filling, labeling, packing, and shipping. We will help procure the finest ingredients and raw materials available. In fact, we will source anything a client may need to complete the project, including cans and lids, bottles and caps, labels, packaging, and more.
Hand Sanitizer Opportunity
The pandemic caused supply shortages of hand sanitizers due to sudden surge of demand by the consumer market. The Company’s workforce quickly adapted and adjusted manufacturing operations to deliver much-needed hand sanitizers to assist consumers and first responders fighting COVID-19.
In a fast moving and constantly changing market, we never give up on our ambition to improve and we are always searching for new ways to drive innovation. Our production processes are highly flexible, enabling us not only to develop the right products in the right volumes but also to develop new product formulas and packaging combinations in line with our consumers’ changing needs and requirements.
Our 30-head custom Automatic Pressure Overflow (APO) filler was converted to fill hand sanitizer bottles. The machine was ideal for filling a wide range of viscosities and various bottle sizes. This filler can handle a wide range of container sizes, fill volumes, and product types. It is most ideal for filling gels in large volumes and at great speed.
Unopened Aluminum Cans Leaking
The leaking cans occurred prior to our purchase of the packaging assets from Raw Pharma. The beverages that leaked were the Watermelon and Grapefruit drinks from the Green Lotus brand and CBD Life’s Rocket High and California Lemonade. Their California Black Tea has not leaked. Within a month after production, the Green Lotus brands started leaking. The CBD Life’s beverages commenced to leak within 60 days of production.
We have since moved forward cautiously with the attitude that the leakage most likely originated at the facility. The following are steps taken to date.
• We along with industry professionals have thoroughly inspected the machinery, railings, tumblers, and other areas for pointed edges that could cause small perforations in the cans. Even our pack out procedures were carefully reviewed for handling and proper stacking.
• Several scientists, chemists, and other professionals were engaged in the U.S. and Mexico to review the chemistry within the cans. Based on their recommendation, we purchased a new nitrogen dosing machine. Nitrogen dosing is a process in which a
3| P a g e
nitrogen doser dispenses a short burst of liquid nitrogen into a container just prior to that container being sealed.
• After a thorough inspection, it was determined that readers for both oxygen and carbon were needed. A good product starts with the very first production step. To ensure optimum end products, oxygen ingress must be minimized from the beginning all through the production process. This makes monitoring the drink production from the very beginning at every single production step equally important.
CBD Life
Our commitment to CBD Life has never wavered. There were and continues to be numerous
challenges to overcome such as: (1) formulating the right drinks for their market; (2) continue to meet COFEPRIS, Mexico’s Federal Committee for Protection from Sanitary Risks, new regulations and permit approval; (3) the leaky can issue took months of work to isolate and correct; and (4) the increase in the number of COVID 19 cases as well as hospitalizations in
both countries.
In the near term, we have a great relationship that is built on respect and integrity. For the longer term, we are deploying our competencies to develop superior and innovative beverage options for CBD Life as they grow their portfolio of drinks in Mexico and the United States at
some future date.
Our outlook projects their beverages growing at a steady rate per year. Under this demand scenario, there is a direct link between consumption and a more prosperous opportunity for
both companies and is foundational to our long-term strategies and plans.
Wellness for Life, Inc. – Wholly Owned Subsidiary
HEMPd is our proprietary CBD brand. All HEMPd products are marketed through Rocky Mountain High Brand’s wholly owned subsidiary, Wellness for Life, Inc.
The Company launched the HEMPd brand with products containing
CBD products were tinctures, gummies, water soluble drops, capsules, lotions, and salves as “off the shelf”
products.
Cannabidiol (CBD), an
active ingredient in cannabis derived from the hemp plant. The initial
We consider these products as me-too. A me-too product is just what the expression implies. It is a product that is jumping into a competitive market where many similar products are already available.
4| P a g e
For these products to be successful and for the Company to stay in this market, a core question must be answered: How can these products be disruptive to have the best chance for success?
Successful brands are built with a strategy, which includes a very clear understanding of the channel objectives, geographic footprints, and approach to the marketplace. These products
are on hold pending further study.
Beverage Products
HEMPd 20 mg CBD Infused Flavored Waters were introduced in the market earlier this year. The flavored drinks included Pineapple Coconut, Dragon Fruit, Raspberry Lemonade and Peach Mango in 12oz cans.
It is harder than ever to capture and keep the attention of target markets. We do not necessarily have to change the world to get ahead of the current marketplace, but we do need to find a way of standing out from the crowd. In an environment where differentiation is becoming more of a challenge, disruptive products create followers that pave the way for ongoing success. We believe our HEMPd infused flavored waters are disruptive products.
Our strategy moving forward with HEMPd CBD infused flavored waters includes:
• Follow a focused sales and growth strategy to expand sales with existing accounts and uncover new business opportunities for HEMPd beverages.
• Sales channels for the HEMPd beverages include convenience stores, grocery stores, natural/organic stores, and on-line.
• Build and establish relationships with the right distributors and their representatives at every interval of their supply chain to consistently drive the bottom line.
• Build a sales team by adding experienced sales personnel (in each targeted state) to fuel future growth.
HEMPd has developed core competencies in (1) offering a high-quality, health branded product whose image is starting to be recognizable among consumers; (2) creating a sense of community among consumers who purchase the products; and (3) developing a reputation among retailers as a reliable producer, delivering the requested number of products on schedule.
Eagle Spirit Land & Water Company – Wholly Owned Subsidiary
Eagle Spirit Land & Water Company, a wholly owned subsidiary of RMHB, Inc. and Poafpybitty Family, LLC, a Native American Comanche family, formed a business alliance by creating Rocky
5| P a g e
Mountain High Water Company, LLC, a majority owned Native American Enterprise, to share an incredible story about the water of the Poafpybitty’s ancestors under the brand name of
Eagle Spirit.
We are committed to bringing a spring water to the market that has an incredible story, naturally high pH, and a great taste, so the world can experience a “living water” which alone satisfies the deepest thirst. We look to a future where our water is helping steer the world toward healthier lives and a more sustainable and environmentally relationship with Mother
The strength of Eagle Spirit spring water is this:
Earth.
• Our water is revitalizing goodness that comes from a single sacred source on Oklahoma Native American soil.
• Our water is a Native American product.
• Our water is majority-owned by a Native American enterprise.
• Our water has an incredible story – Mary Sanapia Poafpybitty;
• Our water has a great taste that far exceeds the competitors.
• Our water has high natural ph.
• Our water has healthy minerals; and
• Our water is a better alternative to the drinking water available today.
• In today’s health conscious societies, the opportunity exists to introduce more health- based products, and become a market leader.
• Water is the number one beverage in the world.
• Expand our water in the Texas/Oklahoma in natural/organic stores, C stores, and
grocery.
• We have SAM and GSA accounting numbers to pursue government bidding.
• Introduce Eagle Paa as spring water for pets in 2.64-gallon box. Paa is Comanche for
water. The box will be a crate box with dark brown lettering and paw prints. The water
will be marketed to pet stores and doggie day care centers.
• Introduce Eagle Spirit Spring Water in a 12oz can.
The opportunity of Eagle Spirit spring water is this:
•
During the early days of the pandemic, two items were in demand: Toilet paper and
bottled water. This is more than just a matter of supply and demand. This is about a
major psychological shift in consumer behavior that is likely here to stay. So, the best
tasting, most mineral rich, natural spring water has become an essential item. No
longer is it a luxury, but a necessity.
6| P a g e
Fitwhey
FitWhey is currently under review for further study and proper strategy.
Sweetrock Chocolate
his subsidiary will be dissolved.
Chocolate confectionery manufacturers and retailers continue to face multiple challenges. Along with the increases in the price of raw materials, they are also encountering widespread government regulation and competitive pressure. This will continue to cause challenges and
place burdens on our earnings, t
FINAL WORDS
In the beginning we had two recurring questions: Where do we want RMHB to be in the future and how to get there? Our answers were derived by considering the relative strengths and purpose of our Company, by having a clear understanding of what enables the Company to generate value, opportunities and trends in the marketplace, and our personal aspirations and values. It was an assessment of organizational health that took in everything from alignment
on direction and quality of execution to the ability to learn and adapt.
We put equal rigor and discipline into achieving success on both strategy and talent. We think systematically about the Company’s people: which roles they play, what they can achieve, and
The efficiency and effectiveness of a company’s core management processes can change a company’s fortunes. We take special care to ensure our management team performs strongly as a unit, while maintaining the distance to be objective but enough closeness to gain trust and loyalty. Further, our goal was to make the team productive by regularly taking stock of and improving its operating rhythm,
meeting protocols, interaction quality, and dynamics and profitability.
Our greatest strength now comes from within. We are focused on one goal and we do not get distracted from it. We are strategic. We have a clear understanding of what every person in the Company is working toward. We have a culture of accountability and people who are not afraid to make decisions for the good of team and the Company. We are proactive and we communicate, and we are not afraid to take risks.
We have created disruptive products that will set our Company apart from other companies. Our service on the U.S. Hemp Roundtable Board has been extremely valuable in terms of
how the Company should operate to increase their impact.
This moment in the world’s history has brought new challenges as well as exciting new opportunities. Even with today’s market pressures, we are confident that with the right focus, continued innovation, and a commitment to excellence, we will successfully meet those challenges that we face now and in the future.
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providing us with inside information on what is ahead in terms of regulations and providing valuable connections in the industry.
We wish we could say our work for a complete turnaround for the Company was finished, but not yet. We still have some significant headwinds, more work to do and further changes are necessary. All the right elements are here. Our plan is to continue to preserve the value of investments while offsetting inefficiencies and costs. We believe that we are uniquely positioned for success.
We believe the current environment is temporary, but with an uncertain path to recovery. Staying committed to our strategies, drive efficiencies while positioning the Company to be more competitive and profitable will serve the Company and shareholders well in the future.
Thank you
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PLANO, Texas – David Seeberger, CEO and General Counsel, and Charles Smith, Chairman and COO of Rocky Mountain High Brands, Inc. (RMHB) discuss how the Company is managing through this unprecedented period, where we are heading as a Company, and how we remain extremely optimistic about our future, despite challenges. We have summarized the key points for our shareholders.
A message from Management – Shareholder Message
With the impact of COVID-19 intensifying in the second and third quarters, and now entering the fourth quarter, the Company continued to prioritize the health and safety of our employees, combined with a strong focus on our customers and realignment of Rocky Mountain High Brands to its strengths.
This is an especially fitting time to consider the game-changing developments we have seen and reflect on what they mean for our Company’s future. We first want to say that we are very proud of men and women at Rocky Mountain High Brands, Inc. who have helped advance our business every day. They rose to the challenges of the pandemic by taking care of themselves, their families, and our Company. It is constant cumulative efforts of many that have made the path forward in today’s environment possible.
It is difficult to overstate the devastating impact of the pandemic on businesses and people around the world. The impact has been especially severe on our CBD industry as consumption contracted when economies closed due to the health emergency. As a new industry, we’re especially vulnerable.
While some companies have responded to the current COVID-19 pandemic with price-gouging and hoarding, we responded with opportunism. This is a time of great opportunity for the Company. We have achieved progress in so many things in a short period of time: Applying new strategies, acquiring assets, opening new production opportunities, and forging new partnerships. At the same time, we have captured efficiencies, and streamlined operations.
While COVID-19 is not yet behind us, we have become increasingly adept in our ability to adjust to changing times--becoming much more precise in targeting windows of opportunity, more creative in how we compete and more customized in what we deliver. We initiated strategies for each of our core businesses focused on improving competitiveness. These strategies defined how we would improve revenue and cash-flow. We updated the leadership framework and revitalized our performance assessment process.
1| P a g e
The Company underwent vertical integration by acquiring the assets of a co-packing company at the end of April this year. One of the biggest benefits of this acquisition is that it created economies of scale. It strengthened our supply chain, lowered production costs, cut down on delays in delivery and transportation, substantially reduced minimum production quantities and scheduling concerns. And, by keeping our management consolidated, overhead and other costs were reduced, i.e., the corporate office was closed and relocated to the production facility.
Looking ahead, we are confident that we can further strengthen our business in the second half of the year. Though not complete, the following are key messages in the path forward in today’s environment.
Form 10-Q Filing
We are working closely with the new auditing firm as well as the old firm to
Beverage Co-Packaging Assets Purchased – Wholly Owned Subsidiary Created
Rocky Mountain Productions, Inc. (RMP) was formed on April 30th of this year when the assets of Raw Pharma Capital, LLC were purchased by way of stock and owner financed, and became a subtenant of Bershtel Enterprises, LLC (Tenant) under their lease agreement with the landlord. This was a milestone event which significantly increased the size of RMHB and brought in-house a critical part of the production process that was previously outsourced. The acquisition has allowed us to control our own destiny, reduce costs, and improve efficiencies while creating future profitability.
The Form 10-Q for the 2nd quarter 2020 is currently under review by our new auditing firm.
file periodic
financial statements and other disclosures in the appropriate time periods. We expect filing to
be in an expeditious timeframe moving forward.
The Company specializes in cold fill beverages, concentrates and ready-to-drink beverages. We have a state-of-the-art facility that is uniquely positioned to provide our brand drinks as well as white label clients with all the best-in-class services needed to get products ready for store shelves. In addition, we can provide custom palletizing, labeling, and packaging to expertly finish a product. We maintain Good Manufacturing Practices and follow U.S. Food and
Drug Administration Standards.
Our modern production machines and expertise place us at the forefront of beverage, hand sanitizer, and energy shot packaging. Since our purchase, we have focused on developing tailor-made approaches to meet our customers’ changing needs and requirements. We offer total supply chain solutions that take care of every part of the process, from planning to production, and warehousing. We can handle the needs of any client who is in the industry of ready to drink beverages and energy shots, and gel or liquid hand sanitizers.
2| P a g e
Our turnkey capability means we are adept at stages of filling, labeling, packing, and shipping. We will help procure the finest ingredients and raw materials available. In fact, we will source anything a client may need to complete the project, including cans and lids, bottles and caps, labels, packaging, and more.
Hand Sanitizer Opportunity
The pandemic caused supply shortages of hand sanitizers due to sudden surge of demand by the consumer market. The Company’s workforce quickly adapted and adjusted manufacturing operations to deliver much-needed hand sanitizers to assist consumers and first responders fighting COVID-19.
In a fast moving and constantly changing market, we never give up on our ambition to improve and we are always searching for new ways to drive innovation. Our production processes are highly flexible, enabling us not only to develop the right products in the right volumes but also to develop new product formulas and packaging combinations in line with our consumers’ changing needs and requirements.
Our 30-head custom Automatic Pressure Overflow (APO) filler was converted to fill hand sanitizer bottles. The machine was ideal for filling a wide range of viscosities and various bottle sizes. This filler can handle a wide range of container sizes, fill volumes, and product types. It is most ideal for filling gels in large volumes and at great speed.
Unopened Aluminum Cans Leaking
The leaking cans occurred prior to our purchase of the packaging assets from Raw Pharma. The beverages that leaked were the Watermelon and Grapefruit drinks from the Green Lotus brand and CBD Life’s Rocket High and California Lemonade. Their California Black Tea has not leaked. Within a month after production, the Green Lotus brands started leaking. The CBD Life’s beverages commenced to leak within 60 days of production.
We have since moved forward cautiously with the attitude that the leakage most likely originated at the facility. The following are steps taken to date.
• We along with industry professionals have thoroughly inspected the machinery, railings, tumblers, and other areas for pointed edges that could cause small perforations in the cans. Even our pack out procedures were carefully reviewed for handling and proper stacking.
• Several scientists, chemists, and other professionals were engaged in the U.S. and Mexico to review the chemistry within the cans. Based on their recommendation, we purchased a new nitrogen dosing machine. Nitrogen dosing is a process in which a
3| P a g e
nitrogen doser dispenses a short burst of liquid nitrogen into a container just prior to that container being sealed.
• After a thorough inspection, it was determined that readers for both oxygen and carbon were needed. A good product starts with the very first production step. To ensure optimum end products, oxygen ingress must be minimized from the beginning all through the production process. This makes monitoring the drink production from the very beginning at every single production step equally important.
CBD Life
Our commitment to CBD Life has never wavered. There were and continues to be numerous
challenges to overcome such as: (1) formulating the right drinks for their market; (2) continue to meet COFEPRIS, Mexico’s Federal Committee for Protection from Sanitary Risks, new regulations and permit approval; (3) the leaky can issue took months of work to isolate and correct; and (4) the increase in the number of COVID 19 cases as well as hospitalizations in
both countries.
In the near term, we have a great relationship that is built on respect and integrity. For the longer term, we are deploying our competencies to develop superior and innovative beverage options for CBD Life as they grow their portfolio of drinks in Mexico and the United States at
some future date.
Our outlook projects their beverages growing at a steady rate per year. Under this demand scenario, there is a direct link between consumption and a more prosperous opportunity for
both companies and is foundational to our long-term strategies and plans.
Wellness for Life, Inc. – Wholly Owned Subsidiary
HEMPd is our proprietary CBD brand. All HEMPd products are marketed through Rocky Mountain High Brand’s wholly owned subsidiary, Wellness for Life, Inc.
The Company launched the HEMPd brand with products containing
CBD products were tinctures, gummies, water soluble drops, capsules, lotions, and salves as “off the shelf”
products.
Cannabidiol (CBD), an
active ingredient in cannabis derived from the hemp plant. The initial
We consider these products as me-too. A me-too product is just what the expression implies. It is a product that is jumping into a competitive market where many similar products are already available.
4| P a g e
For these products to be successful and for the Company to stay in this market, a core question must be answered: How can these products be disruptive to have the best chance for success?
Successful brands are built with a strategy, which includes a very clear understanding of the channel objectives, geographic footprints, and approach to the marketplace. These products
are on hold pending further study.
Beverage Products
HEMPd 20 mg CBD Infused Flavored Waters were introduced in the market earlier this year. The flavored drinks included Pineapple Coconut, Dragon Fruit, Raspberry Lemonade and Peach Mango in 12oz cans.
It is harder than ever to capture and keep the attention of target markets. We do not necessarily have to change the world to get ahead of the current marketplace, but we do need to find a way of standing out from the crowd. In an environment where differentiation is becoming more of a challenge, disruptive products create followers that pave the way for ongoing success. We believe our HEMPd infused flavored waters are disruptive products.
Our strategy moving forward with HEMPd CBD infused flavored waters includes:
• Follow a focused sales and growth strategy to expand sales with existing accounts and uncover new business opportunities for HEMPd beverages.
• Sales channels for the HEMPd beverages include convenience stores, grocery stores, natural/organic stores, and on-line.
• Build and establish relationships with the right distributors and their representatives at every interval of their supply chain to consistently drive the bottom line.
• Build a sales team by adding experienced sales personnel (in each targeted state) to fuel future growth.
HEMPd has developed core competencies in (1) offering a high-quality, health branded product whose image is starting to be recognizable among consumers; (2) creating a sense of community among consumers who purchase the products; and (3) developing a reputation among retailers as a reliable producer, delivering the requested number of products on schedule.
Eagle Spirit Land & Water Company – Wholly Owned Subsidiary
Eagle Spirit Land & Water Company, a wholly owned subsidiary of RMHB, Inc. and Poafpybitty Family, LLC, a Native American Comanche family, formed a business alliance by creating Rocky
5| P a g e
Mountain High Water Company, LLC, a majority owned Native American Enterprise, to share an incredible story about the water of the Poafpybitty’s ancestors under the brand name of
Eagle Spirit.
We are committed to bringing a spring water to the market that has an incredible story, naturally high pH, and a great taste, so the world can experience a “living water” which alone satisfies the deepest thirst. We look to a future where our water is helping steer the world toward healthier lives and a more sustainable and environmentally relationship with Mother
The strength of Eagle Spirit spring water is this:
Earth.
• Our water is revitalizing goodness that comes from a single sacred source on Oklahoma Native American soil.
• Our water is a Native American product.
• Our water is majority-owned by a Native American enterprise.
• Our water has an incredible story – Mary Sanapia Poafpybitty;
• Our water has a great taste that far exceeds the competitors.
• Our water has high natural ph.
• Our water has healthy minerals; and
• Our water is a better alternative to the drinking water available today.
• In today’s health conscious societies, the opportunity exists to introduce more health- based products, and become a market leader.
• Water is the number one beverage in the world.
• Expand our water in the Texas/Oklahoma in natural/organic stores, C stores, and
grocery.
• We have SAM and GSA accounting numbers to pursue government bidding.
• Introduce Eagle Paa as spring water for pets in 2.64-gallon box. Paa is Comanche for
water. The box will be a crate box with dark brown lettering and paw prints. The water
will be marketed to pet stores and doggie day care centers.
• Introduce Eagle Spirit Spring Water in a 12oz can.
The opportunity of Eagle Spirit spring water is this:
•
During the early days of the pandemic, two items were in demand: Toilet paper and
bottled water. This is more than just a matter of supply and demand. This is about a
major psychological shift in consumer behavior that is likely here to stay. So, the best
tasting, most mineral rich, natural spring water has become an essential item. No
longer is it a luxury, but a necessity.
6| P a g e
Fitwhey
FitWhey is currently under review for further study and proper strategy.
Sweetrock Chocolate
his subsidiary will be dissolved.
Chocolate confectionery manufacturers and retailers continue to face multiple challenges. Along with the increases in the price of raw materials, they are also encountering widespread government regulation and competitive pressure. This will continue to cause challenges and
place burdens on our earnings, t
FINAL WORDS
In the beginning we had two recurring questions: Where do we want RMHB to be in the future and how to get there? Our answers were derived by considering the relative strengths and purpose of our Company, by having a clear understanding of what enables the Company to generate value, opportunities and trends in the marketplace, and our personal aspirations and values. It was an assessment of organizational health that took in everything from alignment
on direction and quality of execution to the ability to learn and adapt.
We put equal rigor and discipline into achieving success on both strategy and talent. We think systematically about the Company’s people: which roles they play, what they can achieve, and
The efficiency and effectiveness of a company’s core management processes can change a company’s fortunes. We take special care to ensure our management team performs strongly as a unit, while maintaining the distance to be objective but enough closeness to gain trust and loyalty. Further, our goal was to make the team productive by regularly taking stock of and improving its operating rhythm,
meeting protocols, interaction quality, and dynamics and profitability.
Our greatest strength now comes from within. We are focused on one goal and we do not get distracted from it. We are strategic. We have a clear understanding of what every person in the Company is working toward. We have a culture of accountability and people who are not afraid to make decisions for the good of team and the Company. We are proactive and we communicate, and we are not afraid to take risks.
We have created disruptive products that will set our Company apart from other companies. Our service on the U.S. Hemp Roundtable Board has been extremely valuable in terms of
how the Company should operate to increase their impact.
This moment in the world’s history has brought new challenges as well as exciting new opportunities. Even with today’s market pressures, we are confident that with the right focus, continued innovation, and a commitment to excellence, we will successfully meet those challenges that we face now and in the future.
7| P a g e
providing us with inside information on what is ahead in terms of regulations and providing valuable connections in the industry.
We wish we could say our work for a complete turnaround for the Company was finished, but not yet. We still have some significant headwinds, more work to do and further changes are necessary. All the right elements are here. Our plan is to continue to preserve the value of investments while offsetting inefficiencies and costs. We believe that we are uniquely positioned for success.
We believe the current environment is temporary, but with an uncertain path to recovery. Staying committed to our strategies, drive efficiencies while positioning the Company to be more competitive and profitable will serve the Company and shareholders well in the future.
Thank you
8| P a g e
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