000000_Synthonics_ChyloCureBook_Rev031919

CHYLOCURE OFFERING EXECUTIVE SUMMARY Synthonics, Inc., is establishing ChyloCure, a new company that will bring the benefits of Synthonics’ metal coordination chemistry to the medical cannabinoid market. ChyloCure will use metal coordination chemistry to produce Chylobinoids™, proprietary extraction fractions from the hemp product stream. Chylobinoids consist primarily of non-psychoactive cannabinoids and plant waxes/lipids and have structural and pharmacokinetic properties similar to those of chylomicrons (the lipoprotein particles that transport dietary lipids through the lymphatic system). We believe metal-coordinated Chylobinoids will offer several significant advantages over other cannabinoid extracts. Chylobinoids are i) Relatively inexpensive to produce, ii) Easily measured for accurate dosage and delivery, iii) Highly lipophilic, which may reduce first-pass hepatic metabolism and more than double bioavailability, iv) Designed to contain other cannabinoid materials, which may enhance clinical efficacy through the “entourage effect,” v) Less likely to be regulated as a drug substance than CBD or CBDa isolates would, and vi) Patentable as new compositions of matter. BUSINESS CONCEPT ChyloCure will have exclusive rights to develop, make and sell Chylobinoid-containing nutraceuticals. Demand for hemp-derived cannabinoids is significant and rapidly growing. Hemp Business Journal forecasts the market for hemp-based cannabinoid products to grow from approximately $130 million in 2016 to almost $700 million in 2020. This market should continue to grow as products such as Epidiolex (CBD oil), a marijuana-derived drug recently approved for treatment of two refractory seizure disorders, enter the pharmaceutical market. We believe that due to their unique structure and superior absorption, Chylobinoids will represent a significant advance over other cannabinoids. In addition, because we can produce them so efficiently, Chylobinoids should be profitable even when priced similarly to other CBD and CBDa rich powders. Accordingly, we intend initially to sell product at prevailing market prices to wholesalers and retailers while we develop data and market presence to support premium pricing. We believe that this combination of low cost manufacturing and superior performance will allow ChyloCure to pursue development of a unique, premium-priced product in a rapidly growing market with relatively low capital requirements and risk. PURIFICATION AND MANUFACTURING Production of crude marijuana and hemp extracts typically uses supercritical carbon dioxide, butane or ethanol in a resource and work-intensive process. These methods generate extracts that are often contaminated with waxes, lipids, and other unknown plant material. Further refinement of the crude extracts leading to purer forms of cannabinoid products typically involve multiple extractions, filtrations and evaporation steps using ethanol, which is known as "winterization," or the use of hydrophobic solvents like hexane.

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