IPO - Ecofibre Limited, page-126

A few points concerning the drastic differences between EXL and EOF:

Like it or not, modern agriculture runs a lot like Monsanto. "PBR"'s are a thing. That means "Plant Breeders Rights".

It is patent protection on the genetics of a particular strain of wheat or cotton or corn (famously in the case of Monsanto from Round-Up resistant corn) and in the present case, hemp.

While EOF was running around the world collecting a "germ plasm" of over 400 different cultivars of hemp from every latitude in the world, including no longer grown heirloom varieties donated by the Vavilov Institute in Russia, EXL was simply importing Chinese seed and crushing it for oil and "pet food" for sale in Australia.

They may have occasionally, and still must pay licence fees for particular strains with specific properties. They never had the research programs in the past that EOF has always placed in the forefront.

Finola, for example is a very famous variety that has been licenced to hemp growers the world over since the 90's due to its high yield of hempseed oil at particular latitudes.

It is the Coca Cola of hemp seed for food. Everybody grows it and everybody pays the PBR owner, a guy called Jace Callaway, to grow it or he sues them.

EOF, for over 20 something years experimented and cross bred some of the wild and heirloom varieties it acquired and developed over dozens of growing seasons of cross brewing, obtained PBR rights to several now proprietary strains suited for different uses: oil, CBD content, fibre tensile strength, yield, etc...

Thus EOF owns many PBRs and has a bottomless supply of genetics to experiment with over the next century...and...EOF has purchased millions of dollars of "goodwill", shall we say, from Jefferson University in the US, and a university in Sydney.

Both working on the medicinal properties of cannabinoids, and both morally if not contractually indebted to Barry Lambert and Ecofibre to provide rights of first refusal on any technical breakthroughs that can be patented.

They may be contractually indebted for all I know now.So, yeah, everyone is clear on my opinions of management.

However my knowledge of the two decade long history of Ecofibre tells me that we have proprietary intellectual property available to nobody else in the industry.

EXL buys seeds from others, grows them, makes CBD and good.EOF owns a germ plasm of 400 varieties, has done in house agronomic research for decades, and developed and PBR protected several very special varieties, some producing copious oil, some producing superior fiber yield, some producing extremely high CBD levels and negligible THC.

EOF has, through Barry Lambert's philanthropy, purchased 10s of millions of dollars of future research in cannabinoid medicine. EXL makes CBD and good like any of the hundreds of other hemp companies today using licensed genetics pretty much like everyone else's products.They guy who grows the hemp for EOF is the former Secretary of Agriculture of Kentucky. A guy called Brian Furnish.

Brian gets Republican Lawmakers like Senate Majority Leader Mitch McConnell to visit Ecofibre's production facilities.He was nice enough to help Ecofibre pass the Farm Bill in the US with Ecofibre's advice and input.

Ecofibre has been doing this for years.

It was Ecofibre (Phil Warner) that got Australia to allow hemp research in the 90's, and made it so hemp varieties would be eligible for Australian PBR's.

So EXL grows standard hemp strains and makes standard stuff they sell. Like hundreds of other “CBD companies” today.


EOF is a research and lobbying powerhouse, with deep intellectual property, political ties, and deep ties with the medical research and agricultural research communities on two continents.

Are these two things comparable?

Hemp Black isn’t even that big a deal in my opinion. I know too much about what it actually is, but it will sell well.

The magic here is in the medicine we will make, the suffering we will alleviate, and the lives we will save with the deep investments into genetics and cannabinoid chemistry we have made since the early 90’s.

We own the genetics that the world hasn’t even heard of yet. EOF will become a Pharmaceutical company.

EXL will always just be a farm with a food and bog standard CBD factory out back.