June 2017 Business Plan Update

(Potential To Double Restaurant Sales: Expoential Growth Potential From New Social Media Business)

To Original

$2 Million 12 Month Cannabis Themed Restaurant Revenue Plan;

Overall Dividend Strategy & First Planned Dividend

Cannabis Themed Restaurant Executive Summary

In a first step toward developing a cannabis themed restaurant for the health conscious consumer, North American Cannabis Holdings last year in June of 2015 acquired a fitness cafe with a full breakfast, lunch and dinner menu.  The acquired fitness cafe includes a national brand named smoothie product.  The operation of the acquired fitness cafe has provided North American Cannabis Holdings with a platform for developing its AmeriCanna Cafe concept.  The Company realized approximately $500,000 in sales over the previous 12 months operating the fitness cafe.

UPDATE:  USMJ Revenue is up 41% and Gross Profit is up 53%

North American Cannabis Holdings is now launching a campaign to franchise and license the AmeriCanna Cafe as a cannabis themed, fast casual concept to targeted multi-brand quick-serve restaurant operators.

UPDATE: USMJ Begins Marketing AmeriCanna Cafe Franchises In April 2017

Fast casual restaurants are a hybrid of fast food and casual dining restaurants. Fast casual restaurants provide fresher, higher quality and often more health conscious food items than a typical quick-serve restaurant while still appealing to a relatively “fast” dining experience mentality. Example fast casual restaurants include Chipotle Mexican Grill, Panera Bread, Shake Shack, Habit Grill), Fiesta Restaurant Group, Noodles & Co, Zoe’s Kitchen, and Potbelly – all publicly traded. The fast casual segment makes up over $20 billion of the $580 billion restaurant sector.

Restaurant 12-Month Forecast and Upward Revision Criterion

North American Cannabis Holdings anticipates $1.5 million in revenue over the next 12 months to result from the opening of new AmeriCanna Cafe restaurants through license and franchise contracts with another $500,000 dollars to come in from the sale of our EVERx sports and fitness supplements.  The current forecast is estimated on only one license agreement expected to result in multiple AmeriCanna Cafe openings.  North American Cannabis Holdings is actively negotiating two additional agreements at this time and pursuing yet more.  Any additional agreements will potentially result in an upward revision of the current $2 million forecast.

UPDATE: USMJ is increasing its AmeriCanna Cafe sales forecast based on the expansion of the business model to include selling AmeriCanna Cafe products outside of the restaurant.  We believe this product line expansion could double the existing forecast anticipated from restuarant operaitons alone.

Dividend Strategy Executive Overview

The legal cannabis market continues to evolve.  The general direction seems to be toward legalization in a two steps forward, one step back manner. Institutional investment skepticism remains high with only a slight easing over the past three years. 

With the inherent risk mitigation provided by the liquidity of a public market, the number of publicly listed cannabis firms continues to grow.  The North American Cannabis Holdings’ approach since the inception of its cannabis business strategy in 2013 has been to augment the inherent risk mitigation provided by the liquidity of the public market by operationally piloting various cannabis sector enterprise opportunities and further cultivating those pilots that show promise.  To date, this approach has resulted in the AmeriCanna Cafe business, the Puration cannabis extraction business and the EVERx sports and fitness supplement business. 

To augment even further the risk mitigation provided by the liquidity of the public market and the pilot operational strategy, the Company has implemented a spinoff and dividend strategy whereby pilot program graduates are spun into independent public companies.  In this manner, a separate capital structure can support the ongoing investment requirements to grow the pilot graduate and North American Cannabis Holdings shareholders can benefit by being issued stock in the spun off operation through a dividend distribution.

To date, the Company’s cannabis extraction pilot has resulted in the establishment of the independent public company Puration, from which a dividend to be issued to North American Cannabis Shareholders is in the works. 

Before a separate capital structure could be effective in supporting the growth of the extraction operation, the public company the extraction operation reverse merged into had to undergo some updates - as is the case in many reverse merger situations.  Those updates have taken time and have not been achieved without further investment.  Puration has just recently established real independence and some substantial and exciting milestone achievements are anticipated to be announced soon.

North American Cannabis Holdings continues to pilot new projects while at the same time fostering the growth of the pilot program graduates, AmeriCanna Cafe and EVERx.  Management believes a similar spinoff strategy can be effective in supporting the accelerated growth of the AmeriCanna Cafe and EVERx and other future pilot projects.  Management further believe the experience with Puration has garnered hard knocks experience, the benefits of which will be demonstrated in the execution of similar future spinoff and dividend transactions.

Puration Dividend Plan

On July 28, 2015, the Company entered into a Share Exchange Agreement with Puration, Inc. (PURA), where it agreed to exchange all of its wholly owned interests in two separate pilot program operations for two Convertible Preferred Stock Series to be created and issued by Puration.  One Series represents fifty-one percent voting control of Puration and the other is convertible into common shares of Puration to be issued in a dividend distribution to the shareholders of North American Cannabis Holdings.

More detail on the transaction between North American Cannabis Holdings and Puration, to include updates and amendments to the original transaction, is available for review in the respective public disclosures of the two Companies on the OTC Markets website.

At this time, the two Companies plan to move forward promptly with the conversion of the Puration Convertible Preferred Stock designated for conversion into common stock of Puration.  North American Cannabis Holdings further plans to promptly execute a dividend distribution of the converted Puration common stock to the North American Cannabis Holdings shareholders.

Specifically, the two Companies, subject to first satisfying all regulatory and regulatory related conditions required to execute a dividend distribution, plan to convert the Puration Preferred Stock into a number of common shares such that each North American Cannabis Holdings shareholder will receive one common share of Puration for every 200 shares of North American Cannabis Holdings held.  The date on which the North American Cannabis Holdings shares must be held in order to qualify for receiving a dividend distribution of Puration stock is yet to be determined.  The two Companies anticipate the ‘dividend date’ being set within the next thirty to forty-five days.

UPDATE:  The experience with developing Puration from a pilot project into a spinoff has inspired a major coming addition to USMJ's business.  The Company will be introducing a Cannabis Social Media Site for cannabis entrepreneurs to interact with cannabis investors - not quite crowdfunding, but very close.  In fact, the idea is to support cannabis entrepreneurs in their separate crowdfunding efforts.  Growing from our Puration experience, USMJ will from time to time identify promising cannabis entrepreneurial candidates and make investments with a plan to monetize those investments for the benefit of all USMJ shareholders by eventually seeing the target cannabis entrepreneurial candidates independently listed with a percentage of their stock issued to USMJ shareholders in a dividend distribution.  We are refraining at this time from publishing a forecast for the Social Media business plan, but we anticipate this business is my times larger in regard to revenue and ROI potential than any business USMJ is currently involved in.