The Magic Dragon

The Magic Dragon Realty, LLC

Imagine being the savvy investor who was there when railroads gained a foothold in America, or when oil companies first found their market, when distillers and brewers could finally serve their customers within the law, or when e-commerce websites first appeared on the Internet. Now imagine for a moment the next big opportunity.

The Magic DragonRealty, LLC.

Our Team

Is it cannabis?

Magic Dragon Realty, LLC is a company dedicated to the earnest and genuine desire to do good in the world, and with the belief that only through the development, production, marketing and sale of a quality cannabis product will we win the favor and loyalty of the customers we seek to serve; that in doing so, we will dedicate ourselves to the research that continually improves our product and its benefits; that those who serve us enjoy the support that in turn allows them to provide our customers with exceptional product and service; that we earn for our owners and investors a generous return as reward for their faithful investment in our company and its goals; and that we will willingly, transparently and respectfully abide by all regulations mandated and expected in a civil society.

Nowadays, those ancient practices have become conventional wisdom. In a world that increasingly values natural remedies as much as those created in test tubes, cannabis is being rediscovered as a beneficial herb. As of 2017, there are 29 states in the U.S. that permit the cultivation, preparation, distribution and sale of cannabis products for medicinal purposes. Among them is California with a population of more than 39 million people, the most of any state in the Union. California also has the sixth largest economy in the world, greater than France, greater than Italy, greater than Russia and Canada. California is our primary market.

We are Magic Dragon Realty, LLC, a California company formed in January 2018 to build a state-of-the-art indoor hydroponics cannabis cultivation facility in the Coachella Valley to develop and cultivate the various strains of cannabis to market and sell on a wholesale basis to the more than 2,000 licensed dispensaries throughout California.

Our base of operations will be a property in the Coachella Valley that is already zoned for cultivation purposes. It will be home to a sophisticated, fully licensed facility of approximately 20,000 square feet.

Magic Dragon seeks to enter the robust cannabis market as a California grower with an aggressive strategy to wholesale cannabis directly to licensed distributors throughout the state, and to produce specialty cannabis products for the medicinal market. The following points highlight our business strategy:

• We are applying for a cannabis cultivation license and expect to be conducting business from our cultivation facility sometime in 2018.
• We expect to have the ability to grow up to 20,000 plants concurrently, and plan to grow a range of different strains of cannabis plants. We expect to have the ability to grow from seedling or clone to finished product.
• We will strive to make optimal medicines for the medical cannabis consumer while giving them options for the method of consumption, including smoke, vapor, oils, CBD edibles, and topicals.
• Our sales strategy will be to reach out to all California cannabis distributors and wholesale directly to them.
• Our plants will be hydroponically grown in a completely controlled environment, including controlled temperature, nutrients, lighting, watering and trimming.
• Growing hydroponically ensures that the marijuana to be grown will be clean, fine, pure, and the high quality that we expect.
• We will be inviting dispensaries to tour and inspect our cultivation facility and showcase the great care we put into the nurturing of our plants.

The various types of cannabis strains produce numerous beneficial medicinal effects, including relief from pain and nausea, stimulation of the appetite, reduced muscle spasms and tremors, improved sleep, and other indicators. Individual strains with differing cannabinoid and terpene content produce noticeably different effects. Our consumer product line will offer options to consume special formulations of cannabis in gel capsule form, smoke, vapor, extracted CBD compounds, edibles and topical applications.

Once the company begins to realize positive cash flow, all cash available for distribution, if any, will be allocated to investors in the following manner:

100% to members who subscribe for units before December 31, 2018, until those members receive cash distributions
equal to 5% of their investment amount made by that date (the “5% Priority Return”);
• Then 100% among all members, except for the majority member and its transferees, on a pro rata basis in accordance
with the relative number of units owned by each, until those members receive cash distributions equal to 100% of their
capital contributions in addition to the 5% Priority Return, if applicable;
• After which cash available for distribution will be allocated 100% among all members, including the majority member
and its transferees, on a pro rata basis.

The company believes that its proposed business has strong economic prospects for the following reasons:

• Management believes that the trends for growth in the cannabis industry are favorable as regulatory restraints on
production, distribution and consumption are expected to continue to ease. CNN reports that in Colorado alone,
the state government’s revenue from taxes and fees on cannabis sales totaled $506 million between 2014 and 2017.
California has seven times the population of Colorado.
• The demand for medical applications of cannabis and beneficial compounds derived from cannabis is expected
to soar, creating an opportunity for the company to research, develop, produce and sell proprietary medicinal
supplements and medicines incorporating Cannabidiol (CBD) compounds.
• Management believes that early entry into the agricultural and supply segments of the cannabis industry at this
time can be profitable and will position the company for more profitable operations when anticipated legal and
regulatory changes create new market opportunities.
• As indicated in the states of Colorado, Washington, Oregon, Alaska, California, Massachusetts, Maine, Nevada and
Washington, D.C. where cannabis has been legalized for recreational and medical use, management believes
that the demand for cannabis currently exceeds and will continue to exceed the supply in the foreseeable future,
creating the potential for robust profit margins for regulated growers and suppliers, especially for those that establish
themselves in the industry now, while it is in its early stages.

It is the company’s intention that if and when profitable operations have begun, and positive revenue realized, 100%
of cash-based capital will be returned to investors prior to the payment of any distribution to any other unit-holders,
including the Majority Member.

The Pro Forma


Where Is Cannabis Legal?

      Recreational and Medical
      Legal for medical use, limited THC content
Map and Data sourced from Wikipedia
41865 Boardwalk Ave Ste 204
Palm Desert, CA 92211
Phone: 760-895-4750
Email: [email protected]
The Magic Dragon
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41865 BOARDWALK AVENUE, SUITE 204 • PALM DESERT, CALIFORNIA 92211 • 760-895-4750

The purchase of units involves significant risks. There is no assurance we will be profitable, or that the industry's favorable dynamics will not be outweighed in the future by unanticipated losses, adverse regulatory developments, oversupply, and other risks. Investors should carefully consider the various risk factors before investing in the units. Commerce in the cannabis industry is extremely competitive, inherently speculative and highly regulated where permitted, and remains illegal in many jurisdictions. Each prospective investor should carefully consider the risk factors associated with this investment, review the entire Confidential Private Placement Memorandum (CPPM) of the company, and the risk factors outlined in that document, in addition to any other risks associated with this investment, and should consult with his or her own legal and financial advisors before making an investment decision. These materials are not an offer to sell, nor a solicitation to buy any securities of Magic Dragon Realty, LLC or any other company. An offer to sell or a solicitation to buy securities of Magic Dragon Realty, LLC is only made by the complete CPPM for the company, as supplemented. Membership interests in Magic Dragon Realty, LLC can only be purchased pursuant to the terms of the CPPM and associated subscription agreement, and membership interests are available only to accredited investors.