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Or > A on") oa onion Cannabis Investment Report | December 2017 Cannabis Sativa Leaf Cannabis Indica Leaf Cannabis Ruderalis Leaf Many hybrid varieties of cannabis—sometimes referred to as strains—have developed from these three species, both through selective breeding and in the wild. Most cannabis varieties grown today are hybrids that exhibit features of two or more of these principal species. Cannabis varieties consumed for physio- logical effects generally are hybrids of sativa and indica that produce relatively large and dense flowers. Certain cannabis varieties—known as hemp—that are grown to produce industrial goods generally are sativa-dominant varieties or hybrids of sativa and ruderalis that produce relatively small and sparse flowers. Cannabis yields more than 100 different compounds known as “cannabinoids,” which, when con- sumed, act on cannabinoid receptors in cells in the human nervous and immune systems. The primary cannabinoid in most cannabis is tetrahydrocannabinol, or THC, the psychoactive compound respon- sible for the “high” or euphoric feeling commonly associated with cannabis consumption. The next most abundant cannabinoid is cannabidiol, or CBD, which produces a physical effect without the psychoactive effects associated with THC. Cannabis also includes a variety of compounds known as “terpenes,” which are understood to interact with cannabinoids to produce some of the physiological effects sought by cannabis consumers. ‘Terpenes are present in cannabis and many other types of plants and are responsible for a plant’s aroma and flavor. Examples of terpenes found in cannabis include limonene, which is known for its citrus smell and is also present in citrus fruit rinds, and pinene, which is known for its pine and fir aromas and is also found in pine resin. The highest concentrations of cannabinoids and terpenes are found in the “trichomes” on the flowers of unpollinated female cannabis plants. Trichomes are crystalline or hairlike components that secrete cannabinoids, terpenes and other compounds; they generally occur all over the cannabis plant but are found in highest concentration on the flower. The following illustration shows the basic anat- omy of a cannabis plant, and the images to the right show a female cannabis plant flower and a close-up view of trichomes. 16 © 2017 Ackrell Capital, LLC | Member FINRA/SIPC HOUSE_OVERSIGHT_024652