Confidential
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Hemp Paper Company

Hemp Paper Company

Tree-free packaging with real revenue, real customers, and clear category expansion.

Investor Presentation | Hemp Paper Company | 2026
02 / 16
Executive Summary

The Opportunity
At a Glance

What We Do

Hemp Paper Company makes tree-free, 100% hemp paper bags, cartons, and paperboard — USDA Certified Biobased at 100% and fully compostable. We're getting scrappy: funding the hemp-paper mission by supplying Hawaii's hotels and retailers the products they already buy, and reinvesting every dollar back into the core business.

Traction

$88K
Collected (YTD)
$82K
Booked & In Delivery
12+
Active Accounts
175K+
Bags Delivered

The Ask

$500K SAFE at $8M post-money cap
20% discount to Series A

Funds dedicated sales team, die cut machine for cartons, handle attachment for bags, and grant compliance to close $4M+ in non-dilutive capital.

Why Now

Plastic bans accelerating globally. Federal biobased procurement mandates expanding. 2018 Farm Bill unlocked hemp cultivation. Legacy mills are slow to convert. First mover with USDA certification, a major-retailer win (a Safeway multi-store test), and a self-funding sponsorship model captures the category.

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The Fiber

Why Hemp Replaces
Trees for Paper

Industrial hemp is an annual crop harvested for fiber and grain. The outer stalk (bast fiber) produces the strongest natural paper fiber available — used to make paper for over 2,000 years, predating wood pulp by millennia.

Planted in spring, harvested in 120 days. Yields 4× more usable fiber per acre than trees over a 20-year cycle. Requires no pesticides, minimal water, and sequesters carbon during growth. Federally legal under the 2018 Farm Bill.

Hemp plant anatomy diagram

Hemp stalk anatomy — bast fiber (outer bark) is processed into paper pulp

120
Days to Harvest
vs 20–80 years for trees
4×
More Fiber Per Acre
over a 20-year cycle
5×
Longer Fibers
13–25mm bast vs 2–5mm wood
8×
More Recyclable
vs 3 cycles for tree paper

Hemp vs Wood — Chemical Composition

Hemp Bast
Pine (Softwood)
Oak (Hardwood)
Cellulose
57–85%
40–45%
38–49%
Lignin
2–5%
25–35%
18–25%
Fiber Length
13–25 mm
2–5 mm
0.7–1.5 mm
Pesticides Required
None
Typically Yes
Typically Yes

Sources: USDA Agricultural Research Service, National Hemp Association, Global Hemp Innovation Center. Hemp is carbon-negative during cultivation.

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THE PROBLEM

Packaging is ready for hemp.
Legacy mills are not.

Brands need durable, compliant fiber packaging now—but legacy infrastructure and sourcing models are slowing adoption.

Retrofit Barrier

Converting a legacy paper mill to run hemp costs $100M+. No incumbent wants to move first.

Supply Risk

Wood-pulp supply chains swing with freight, tariffs, and decades-long fiber cycles — unpredictable pricing and lead times.

Performance Gap

Sustainable usually means weaker. Brands are stuck choosing between green and strong.

Compliance Pressure

Plastic bans and federal biobased mandates are tightening fast — and most packaging can't qualify.

Result: delayed launches, margin drag, and lost shelf opportunities for brands that can't secure reliable high-performance fiber packaging.
05 / 16
THE SOLUTION

Commercial now.
Higher-margin expansion already underway.

Start with proven bag production, then scale into cartons and food packaging with disciplined capacity expansion.

Proven Commercial Base

Hemp paper bags are already in market — now in select Safeway stores — with repeat orders and real revenue.

Scalable Capacity Model

600K bags/month per machine baseline; add machines in step with contracted demand.

Mix Upgrade Path

Cartons (next), then food packaging and additional SKUs to raise revenue per account.

Margin Expansion Engine

Sponsorship uplift + product mix shift + supply-chain control drive stronger blended margins over time.

Today: validated production and sales motion. Next: expand into higher-value categories with capital-efficient scale.
06 / 16
The Products

ZERO TREE™ Product Line

Paper Bags

Paper Bags

● Live

Handle-less kraft SOS bags from 100% hemp fiber. Long bast fibers resist tearing. USDA Certified Biobased.

Carton Packaging

Carton Packaging

● Live

Premium tuck-end boxes for cosmetics & retail. 2.5× pricing vs bags. 40-45% margins.

Paperboard

Paperboard

● Live

Multi-weight boards for printing & displays. Print-ready surface. Custom sizes available.

Food Packaging

Food Packaging

◎ In Development

Bio-film barrier coating. FDA-compliant. Plastic-free. Pilot program available.

07 / 16
Traction

The Model Works.
We Landed Safeway.

Safeway
★  Headline Win — Live in Select Safeway Stores
Landed through our Zero-Tree sponsorship model: Hawaii State FCU funded the bag (logo on one side), and Safeway HQ approved a multi-store test. Safeway wants to expand the program based on how the test performs.
$88K
Collected
(YTD)
$82K
Booked &
In Delivery
175K+
Bags
Delivered
12+
Active
Accounts
80%
Customer
Repeat Rate
3
Signed LOIs
in Pipeline
25-28%
Blended
Gross Margin
4M+
Annual
Capacity

Marquee Accounts & Sponsors

Safeway Hawaii State Federal Credit Union American Savings Bank

+ a growing roster of Hawaii hotels & retailers

Highgate Park Shore Waikiki Romer Waikiki Zig-Zag Island Brew Fair Wind Cannabase Vermont Alter-Native Charli's on I-5 Mary Jane Junction Saendo's
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Unit Economics
BRAND / SPONSOR pays for the co-branded bag $0.40 / bag HPC earns margin on both sides free – $0.20 RETAILER receives bags at reduced / zero cost

SPONSOR-FUNDED MODEL

Manufacturing Discipline
at Scale

Two revenue channels: Direct sales to retailers at wholesale pricing, and sponsor-funded distribution where brands pay for co-branded bags that retailers receive at reduced or zero cost — HPC earns margin on both sides. We deepen each Hawaii hotel and retail account by supplying the products they already buy, then reinvest every dollar back into the hemp-paper side: machines, marketing, and the core mission.

Direct Sales (30%)

Production Cost$0.32
Sale Price$0.40
Gross Margin20%
MOQ25,000

Sponsor-Funded (70%)

Sponsor Pays$0.40
Retailer Pays$0-$0.20
Effective Margin25-35%
GTM StrategyBrand Subsidy

Margin Expansion

Bags (Blended)25-28%
Cartons Q2 '2635-40%
Gov Contracts15-18%*
Licensing '28+65%+

* Government contracts: Lower margin but 10M+ unit volume + 90% margin on grant-funded R&D

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Market Opportunity

Total Addressable Market
Category Expansion Path

TAM — Now
$6.8B
SOS Paper Bags
25-30% margins
Source: Freedonia Group, 2024
TAM — 2026
$12B
Mono-cartons
40-45% margins
Source: Smithers Pira, 2024
TAM — 2027
$350B
Food Packaging
35-40% margins
Source: Grand View Research, 2024
TAM — 2028+
$40B
Licensing
65%+ margins
Source: IBISWorld, 2024
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Financial Projections

5-Year Revenue Roadmap

Post-funding projections assume dedicated sales team, die cut machine for cartons, handle attachment for bags, and 3 signed LOIs converting.

Revenue & Profitability

$520K $1.8M $3.6M $5.5M $9.2M 2026 2027 2028 2029 2030 ▸ Break-even — Month 14

Key Assumptions

Bags (Y1) 1.2M+ units
1M by Q2 @ $0.42 avg
Cartons (Y1-Q2) 5,000 units
@ $175 avg, 40-45% margin
Licensing (Y3+) 3-5 partners
4-6% royalty
Signed LOIs 3 accounts
Converting to purchase orders
Break-even Month 14
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Business Model

Capital Efficiency
Through Margin Expansion

01
Direct Production
Bags to cartons with proven manufacturing capability
25-45%
02
Sponsor-Funded
Brands subsidize retailer adoption costs
45%+
03
Licensing
IP licensing to regional producers—zero CapEx
65%+
04
Federal Procurement
USDA Certified Biobased — mandatory federal purchasing preference
Gov Scale
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Capital Strategy

The Capital Stack:
Equity + Non-Dilutive Capital

$500K
SAFE Round (NOW)
Funds sales team, equipment (die cut machine + handle attachment), and grant compliance. Scales revenue from $88K to $520K+ in Year 1.
$4M+
3 Grants Pending (6-12 months)
Non-dilutive capital under review. Government and private grants for hemp infrastructure. No dilution to current investors.
30+
Additional Grants Identified
Federal, state, and private infrastructure funding programs where HPC meets eligibility requirements. Multi-year pipeline of non-dilutive capital opportunities.
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Competitive Defense

The Moat
Is Deep

Retrofit IP
Works with existing mills—no $100M barrier
100+ Years
Collective paper industry expertise
Exclusive Distribution
Extendable, legally protected
First Mover
First USDA Certified Biobased 100% hemp paper packaging brand in the US
Proven Ops
95%+ OTIF, 175K+ units shipped
Federal Position
USDA Certified Biobased — federal procurement eligible
Published Authority
CEO authored hemp textbook
IND HEMP
50K+ tons processed tech

Supply Chain Control — Hawaii Fibers

200
Acres Secured (Oahu)
3
Manufacturing Partners
4
Proprietary Seed Varieties
15-25%
COGS Reduction Target
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The Team

Builders of Industrial Hemp
in America

Ben Draper, CEO
Ben Draper
CEO
Founded HPC after seeing billions of trees cut annually for paper while a stronger, tree-free fiber sat in fields. Decade in packaging, 3rd startup, published author on hemp paper.
Julia Park, Chief Growth Officer
Julia Park
Chief Growth Officer
Co-founder. 8 years scaling, brand partnerships, licensing strategy
Kevin Goserud, CFO
Kevin Goserud
CFO
Decade in financial strategy and scaling operations
Advisory Board
Geoff Whaling — Chair, National Hemp Association
Morgan Tweet — CEO, IND HEMP
Dr. Jeffrey Steiner — Director, Global Hemp Innovation Center
Phil Harding — Principal Scientist, Packaging
Alex Denoyer — Ex-Engineer, International Paper
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The Investment

$500K SAFE:
Scale What's Already Working

Terms

StructureSAFE Note
Target$500,000
Minimum$100,000
Valuation Cap$8M Post-Money
Discount20% to Series A

Use of Funds

$500K DEPLOYED
Sales Team & Outreach30%
Die Cut Machine (Cartons)25%
Grant Close & Compliance20%
Handle Attachment (Bags)15%
Operating Reserve10%

What Capital Unlocks

Dedicated sales team to convert pipeline. Die cut machine opens cartons, hang tags, and custom packaging (35-45% margins). Handle attachment expands bag line for grocery and retail. Grant compliance costs covered to close $4M+ in pending non-dilutive capital.

Exit Path

Strategic acquisition by major packaging company (International Paper, Packaging Corp of America, WestRock) or sustainable packaging platform roll-up. Comparable exits in sustainable packaging sector at 4-8× revenue. Target timeline: 5-7 years.

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Hemp Paper Company

The Only Question
Is Speed

Product proven. Manufacturing operating. Customers reordering. Capital unlocks scale.

✓
Live in select Safeway stores
✓
175,000+ bags delivered
✓
80% customer repeat rate
✓
3 signed LOIs in pipeline
✓
25-28% blended margins
✓
$4M+ in grants pending
Schedule a Meeting
Ben Draper, CEO
ben@hemppaperco.com | (747) 258-8200
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