Investor Update - Global Compliance Applications

I trust you are well and enjoying the summer. I am pleased to provide you with an update on our business development activities and sales progress. Our sales efforts continue to yield tangible results, and we are making significant strides across several key areas of our business. This project is incredibly important, not just because of the excitement of bringing this revolutionary new technology to market, but more importantly, because there are over 16 million veterans in Canada and the US, of which 4 million are seeking alternatives to opioid-based solutions for post-service recovery. I will endeavour to break this down into as much detail as possible on a per-region basis.

Sales in the United States

We have been actively running a targeted direct marketing campaign to US dispensaries, focusing on a select group from a purchased list of over 8,900 contacts. This initial beta campaign targeting 1,000 leads has already generated 79 leads with an estimated 10% close rate, laying the groundwork for potential growth as our internal sales team continues to secure meetings and close deals.

In Las Vegas, our premier customer, Oasis/City Trees, has requested to list nearly 50 products on our Efixii Uplift platform. We are currently running a Summer Time promotion, https://citizengreen.io/oasis-cannabis-summer-sale-coupons/, which will be followed by seasonal campaigns such as Halloween and Thanksgiving. With these efforts, we are strengthening our position within this vital market. Oasis has been a critical proving ground for the company, helping us to engage and expand our offerings with dispensaries. We started with one campaign, and now we have grown to become a significant part of the discounting/rewards business. (https://oasiscannabis.com/rewards/)

Our relationship with Genetica is also progressing as we integrate our Efixii Uplift coupons into their Flora AI solution. Although there have been some delays due to new people onboarding, we remain optimistic about the potential this partnership holds, particularly as Flora is being implemented into 300 dispensaries and installed in 30. (https://rb.gy/6u7lk)

GCAC NA (GCAC Subsidiary)

GCAC NA is the company’s business development workhorse in the US. Based out of Ohio, GCAC NA has been actively expanding its footprint across various markets through strategic partnerships and innovative offerings.

One of the most promising developments is our collaboration with the Grunt Style Foundation (GSF), a nonprofit military veterans’ organization. GSF, created by Grunt Style—a $150 million revenue clothing company with a customer base that includes millions of veterans—offers us a unique opportunity to introduce Efixii Uplift to the cannabis industry across the USA. The foundation's extensive social network, which generates billions of impressions, allows us to reach a large, engaged audience. Importantly, any commission earned through a potential partnership paid by GCAC for GSF referrals goes directly back to veterans through GSF programs, reinforcing our commitment to supporting those who have served. (https://www.gruntstylefoundation.org/)

Citizen Green TV (CGTV) is another cornerstone of our subsidiary's efforts, continuing to grow significantly in both viewership and content offerings. We have recently added new broadcast agreements, including popular shows such as *Stoner Gump* and *Hobby Grow*, which have attracted over a million views. We have also expanded our content with new educational and entertainment shows like *EEErinergy* and *GrowBot*, and are in discussions to collaborate with *CannaCribs*, a B2B show with 300K followers. Our relationship with Pro Cannabis Media is also evolving, with plans to air a monthly podcast featuring top industry advocates. (https://shorturl.at/0GIMF)

Excitingly, we are working on a deal to rebrand and relaunch WWTV as Citizen Green TV. This will be the only veterans' health and wellness channel on major streaming platforms like Roku, Apple TV, and Fire TV, with the potential to reach tens of millions of viewers. The development of CGTV's app is already underway, which will further expand our content delivery through web browsers and mobile apps. The second step of this initiative will enable viewers to connect directly with brands they like and locate nearby dispensaries or CBD stores, creating a seamless bridge between content consumption and product engagement—all through the Efixii Uplift app.

This strategic expansion is attracting brands eager to reach a broader audience because of the inability to advertise cannabis, and often CBD, on Google and Meta. This creates significant ad revenues, which we are currently collecting, and drives Uplift coupon consumption.

Wholesale and Distribution Channels

Our channel partner, Varied State, is achieving significant success with brands that currently have coupons on Efixii Uplift. Among these brands, we are particularly excited about the potential of Buck ‘A Buzz Brands, which has become a key "lead-in" due to its competitive pricing and high-quality products. This brand has been instrumental in driving interest and excitement at the store level, particularly in inner-city markets. Varied State has also signed a distribution contract with Buckeye State Wholesale, initially placing Buck ‘A Buzz in six top stores, with plans to expand to their remaining 800 stores based on the initial success. Buck ‘A Buzz is also owned by WWTV owner Jerry Joyner.

Boro Hemp, another brand gaining traction, is popular on the Efixii app and has "distro-ready" products that make it easier to penetrate the market. The potential for further growth is substantial, as Boro Hemp is considering giving Varied State access to their existing client list of 3,000 stores, which would significantly boost sales volume and increase exposure for our other products. We are also working closely with other brands such as Cannabissimo Coffee and Blair Medical. Blair Medical products specifically are finding a niche in holistic and medical markets like chiropractors, sports medicine doctors, and yoga instructors.

Distribution relationships are an important channel for us as not only do they pay a finder’s fee for products on Efixii Uplift, but they also introduce the Uplift coupons to dispensaries as a value-added feature to dispensaries and retail stores. This is a cost-efficient way to sell Uplift. (https://shorturl.at/dPDqz)

New Uplift Pricing

As part of our ongoing efforts to solidify revenue streams, we are moving all CBD brands to a new agreement structure starting in August 2024. This will ensure a minimum monthly payment of $100 per brand, in addition to fees from redeemed coupons. Brightstar, Cannabissimo Coffee, and BigBudz have already converted to this new agreement, with other contracts set to renew under these terms shortly.

Marketing Events

As part of our ongoing grassroots sales efforts, we recently participated in the Stargazer Cannabis Festival, which was a sold-out event with over 1,200 attendees. This event has provided us with valuable content for our Roku lineup and several promising leads for Efixii Uplift. In partnership with Medicate Ohio, Grunt Style Foundation, Oasis, and many others, we look forward to getting the Efixii Uplift and Citizen Green Project story to the US cannabis market.

Sales in Canada

In Canada, our focus is on expanding consultant sales efforts in Ontario and British Columbia. We have secured dedicated sales representatives who bring extensive experience and established relationships within these regions. In British Columbia, our representative, already selling to 300 retailers, is set to sign a contract next week, which will enable us to penetrate a substantial portion of the market. Meanwhile, in Ontario, we are working closely with a sales partner through our Sana’a relationship, who has already identified two dispensary chains totalling 12 retail locations. These Ontario outlets serve approximately 4,200 clients annually.

Our Canadian veteran initiative, the Citizen Green Project, operated through Citizen Green Ventures (CGV), continues to gain traction. CGV, a joint venture between GCAC and Comsol, is strategically aligned with Sana’a Cannabis, a federally registered cultivator. CGV is on the verge of finalizing a consulting contract with a Canadian veterans' advocacy group based in Prince Edward Island. This partnership aims to recruit a minimum of 1,000 veterans to purchase cannabis through CGV, with the potential to scale significantly as these purchases are covered by Veteran Affairs Canada’s Cannabis for Medical Program. Beyond this, CGV is expanding into the recreational market with targeted discounts for uniformed service personnel, including police, fire, ambulance personnel, doctors, nurses, paramedics, and active military members. This initiative not only strengthens our presence in the medical cannabis space but also extends our reach into the broader recreational market, offering substantial growth.

Loyalty Program – BOND

Our recently released BOND program is gathering momentum with three immediate opportunities on the horizon—Buck ‘A Buzz brands, Sana’a’s Florida Sunrise, and a US-based multi-state cannabis operator. BOND is exciting because it connects brands directly with consumers more effectively and cost-efficiently. As part of the Efixii Uplift couponing solution, it uses innovative blockchain technology to streamline loyalty interactions. BOND is a hybrid loyalty program that combines the immediacy of transactional rewards with robust digital engagement through an easy-to-use app with no traditional sign-up requirements, lowering barriers to use for consumers. BOND helps brands directly reward user purchase behaviours without the complexity of traditional point systems but with the highest level of security and fraud prevention. (https://shorturl.at/05IbX)

Conclusion

While we continue to face challenges in the marketplace, we are confident in our strategy and the opportunities that lie ahead. Efixii technology is a high-margin solution driving monthly recurring revenue that, when coupled with our ongoing sales efforts and partnerships, is designed to position us for sustained growth. I encourage you to take the time to look back at the many press releases we continue to post to learn more about your investment, https://newsroom.globalcompliance.app/.  We appreciate your continued support and look forward to sharing more updates with you in the future.

Thank you for your trust and investment in our company.

Sincerely, 

Brad Moore
CEO, GCAC