Green Hygienics Holdings Inc. Provides Update on 2021 Harvest and Business Development Activities - Seite 2

Acquisition Strategy

It is an opportune time to pursue strategic acquisitions at a discount to market. The Company is targeting acquisitions that are already cash flowing and have one or more established brands that are aligned, and that the Company can add supply chain or other value to.

Pursuing acquisitions that provide the potential to support sales and distribution of both the Company’s wholesale and retail products is of paramount importance to accelerate corporate growth.

Further, the Company will look to leverage its primary attribute which is the ability to effectively cultivate USDA Certified Organic hemp on a scaled basis. The demand for organic products is growing and Green Hygienics stands to benefit from that.

Harvesting the 2021 Crop

In the last 24 months the Company has demonstrated its ability to cultivate premium quality hemp both cost effectively and with the extraordinary potential to scale. This year’s harvest was double that of last year and will continue to grow as the demand continues to grow and the Company secures sales and distribution channels. The market is improving slowly with far fewer farmers returning this year and therefore less product saturating the market. Overall demand for hemp-derived cannabinoids and manufactured goods continues to grow. There is more than enough product in current inventory to be sold to cover the Company’s burn rate and begin creating profits in the coming year.

The preliminary estimate of this year’s crop is between 30,000 and 40,000 pounds of flower and a great deal more seconds and biomass, well over last year’s production. The harvest is still drying and will be processed according to demand requirements. The improved performance can be attributed to more acreage planted and upgrades to the electrical and automated irrigation system installed, as well as the experience gained year over year. The cultivation team performed efficiently and will do even better next year.

New Engagement

Green Hygienics has engaged a new external accounting firm from San Diego, AWICPA. The new firm will manage payroll, develop policies, procedures and internal controls to manage inventory and manage accounts payable as well as adjust records to reflect Generally Accepted Accounting Principles (GAAP).

Looking Ahead

In addition to the potential for revenue growth a material financing or acquisition may provide, the Company plans to launch four e-commerce websites in the first two quarters of 2022 to generate critical cash flow. The cost benefit is compelling in that the price increment between wholesale products and branded manufactured goods is considerable. The e-commerce sites the Company intends to drive forward are: