Operations

Retail


Kaya Shack

The Company has branded its chain of retail stores Kaya Shack™.

The core of the Kaya Shack™ brand lies in its embrace of the spirit of cannabis - that all people are welcome and valued and have cause for optimism and hope. We communicate our brand through store décor featuring signs with positive, uplifting messages, through our tagline - ”Be Kind”, with the placement of a “happy” message in all Kaya Buddies™, with promotional materials, and through all other activities in which the brand endeavors.

Kaya Shack™ is a “high value” retailer – providing quality, service standards, a retail environment, merchandising, and amenities typically associated with higher priced retailers.

Kaya Shack™ stores are open 7 days a week from 8:00 am to 9:00 pm. Operations are in accordance with our proprietary Compliance, Employee and Security Manuals that outline all areas of concern and importance to our employees and the Company. A separate Operations Manual details procedures for 18 areas of operation including safety, compliance, store opening, store closing, merchandising, handling of cash, inventory control, product intake, store appearance and customer service.

In compliance with regulations, all marijuana and marijuana infused products sold through our stores are tested or THC levels, pesticides and mold by independent laboratories to assure adherence to strict quality and OLCC regulations.

In all Kaya Shack™ stores, customers enter into a vestibule, where they provide proof-of-age through a greeting window. Upon verification of age, they are granted access to the product display area.

All stores are clean and bright in appearance and extremely easy to navigate. The products are color coded so customers can easily recognize sativa, indica and hybrid strains.

In addition to marijuana flower, each store also carries a varied assortment of oils, concentrates, edibles, topicals, branded apparel, and marijuana accessories. Selection in our stores is varied and robust.

Kaya Shack One

1719 SE Hawthorne Boulevard, Portland Oregon Kaya Shack

Located in the trendy Hawthorne district in southeast Portland, the first Kaya Shack™ is approximately 700 square feet and is the model for the Company’s small urban shops. The store features an 8’ display case showcasing at least 25 strains of marijuana flower, an additional 8’ display case with a varied selection of oils, concentrates and topicals, and a standing display case with edibles such as cookies, chocolates, gummies, hard candies and more. The store also has a hospitality area that offers free water, coffee, tea and hot cocoa. As required by law, all products containing marijuana are either behind locked glass or behind the counter and out of customer reach.

The store is located next door to a cell phone repair shop, and near to Devil’s Dill restaurant and No Fun pub. There are also a McMenamins restaurant, tattoo parlor, convenience store, hair/nail salon and a soccer sports bar. The area around the shop is primarily residential.

Kaya Shack™ Two

5757 Commercial Street SE, Salem, Oregon Kaya Shack

Located in the southern portion of Oregon’s capital city, Salem, this Kaya Shack™ is approximately 2,100 square feet and is the model for the Company’s marijuana superstore. The store features an 8’ display case with more than 25 strains of marijuana flower, an additional 8’ display case with a varied selection of oils, concentrates and topicals, an 8’ display case with accessories such as pipes, papers and brand related merchandise, and a standing display case with edibles such as cookies, chocolates, gummies, hard candies and more. The store also has a hospitality area that offers free water, coffee, tea and hot cocoa. The superstore concept also provides for a “third space” sitting area, a fresh juice bar, and in this location, a production room offering customers a chance to watch as the Company’s branded marijuana cigarettes, Kaya Buddies™, are produced.

The store is located in a strip mall alongside a Caesar’s Pizza, Aaron’s furniture, a convenience store, a tanning salon, and a nail salon. The plaza also has a Subway, a sports bar and a laundromat. The area around the shop is primarily commercial with residential complexes to be constructed in 2018.

Kaya Shack™ Three

2505 Liberty Street NE, Salem, Oregon Kaya Shack

Located in the northern portion of Oregon’s capital city, Salem, this Kaya Shack™ is 2,600 square feet. The store features an 8’ display case with more than 25 strains of marijuana flower, an additional 8’ display case with a varied selection of oils, concentrates and topicals, an 8’ display case with accessories such as pipes, papers and brand related merchandise, and standing display cases with edibles such as cookies, chocolates, gummies, hard candies and more. The store also has a hospitality area that offers free water, coffee, tea and hot cocoa. The superstore concept also provides for a “third space” sitting area, a fresh juice bar, and in this location, a glassed-off chef’s kitchen facility slated to produce edibles and confections.

The store is located in a strip mall alongside a Starbucks Coffee, laundromat, and Adam’s Rib. The plaza also has medical offices and an Applebee’s. The area around the shop is primarily commercial.

Kaya Shack™ Four – COMING SOON!

1252 23rd Street SE, Salem, Oregon

Located in the central portion of Oregon’s capital city, Salem, this Kaya Shack™ is 2,770 square feet. The store features an 8’ display case with more than 25 strains of marijuana flower, an additional 8’ display case with a varied selection of oils, concentrates and topicals, an 8’ display case with accessories such as pipes, papers and brand related merchandise, and standing display cases with edibles such as cookies, chocolates, gummies, hard candies and more. The store also has a hospitality area that offers free water, coffee, tea and hot cocoa. The superstore concept also provides for a “third space” sitting area, a fresh juice bar, and in this location, an area for the production of the Company’s brand of custom glass pipes.

The store is located in a strip mall directly behind Carl Jr. and Popeye’s Chicken restaurants and alongside a microbrewery sports bar, laundromat, and Hawaiian sandwich shop. The area around the shop is primarily commercial with residential complexes to be constructed in 2018.

Delivery

Kaya Shack

Coming Soon!

All Kaya Shack™ shops are licensed to provide delivery service to customers residing in the city limits within which the licensed store is situated.

In addition to providing added value and convenience for our customers, extending visibility and building recognition for the Kaya Shack™ brand, we believe that home delivery provides for greater market penetration, by allowing sales throughout a much larger service area. There is no limit to the number of delivery vehicles that can service a specific area, all while using just one store as a home base.

The Company has purchased the first four Fiat 500 cars for the delivery service. The cars are wrapped in the Kaya Shack™ colors for maximum impact. The website kayadelivers.com has been set up to receive and process delivery orders. The Company offers “Fast, Free Delivery” of its complete line of both medical and recreational cannabis products.

Grow

Kaya Shack

We established Kaya Farms™ in April 2015 to feed the Kaya Shack™ supply chain - becoming the first U.S. publicly traded company to own and operate a vertically integrated legal marijuana enterprise in the United States. Kaya Farms™ provides our Kaya Shack™ dispensaries with lower cost, top quality marijuana, as well as provide raw material for the manufacture of oils, concentrates, edibles and topicals.

With our own farm KAYS has the potential to (a) substantially lower its cost of goods, (b) coordinate supply timetables to meet high demand periods, (c) control selection, quality and quantity of on-shelf offerings and inventory, and (d) expand product manufacturing and brand development.

In June 2015, we purchased the assets of OC Harley Gardens, a Portland-based medical marijuana grow. The assets included an existing duly licensed patient base with associated plants and grower licenses, genetics, and equipment. The Company consolidated its Grow activities into one 6,000 square foot facility in Portland, Oregon in August 2015, where it operated until February 2017, when the decision was made to purchase a large property to expand our farming activities and house all manufacturing.

In August 2017 Kaya Holdings completed the purchase of 26 acres of prime farmland in Lacomb, just outside of Lebanon, Oregon. The company has consolidated all of Kaya Farms™ on the property and will be developing a complex of buildings and greenhouses for all Company farming and manufacturing activities.

Kaya Farms™ operates in accordance with the Company’s Grow manual. This manual features direction and procedures for equipment and materials authorized for use, casing procedures, inputs and timing of inputs for each development stage, plant care instructions for each development stage, processes for harvesting, trimming processes & standards, drying and curing procedures and timelines, troubleshooting and other critical elements that contribute to a successful Grow that produces high yields of top quality, connoisseur grade marijuana for medical and recreational use.

With our planned expansion, our grow operations will rotate varieties utilizing the perpetual harvest room to include more than 200 strains of marijuana and substantially increase our production volumes while lowering costs. We currently have more than 50 strains in our genetics library – include 2 proprietary strains Kaya Kush and Unicorn Delight – and will be acquiring additional genetics as the Grow expands.

Manufacturing

Kaya Shack

We currently manufacture our own brand of marijuana cigarettes (joints) called Kaya Buddies™ in each of our retail locations. This production function will be moved to the Company’s newly acquired farmland, where a manufacturing complex is being developed.

When creating a pre-roll marijuana cigarette for the Kaya Shack™ stores the Company sought to create a brand that would encapsulate the entire Kaya spirit. The Kaya Buddies™ brand of pre-rolls comes in a purple tube in up to 25 varieties and always includes an uplifting message.

Kaya Buddies™ are made with 100% bud cannabis flower and are marketed under the tagline “Buds with Benefits™”.

In addition to Kaya Buddies™, we expect to develop production lines for our own brands of concentrates, oils, vape cartridges, edibles (including hard and chewy candies, an assortment of full meals, sauces, and other delights), and topicals (including creams and lotions).

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