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OY CKRELL APITAL Cannabis Investment Report | December 2017 CBDA (Cannabidiolic Add: CBDA, the precursor to CBD, is nonpsychoactive and is believed to have several medicinal benefits—anticancer, antiemetic and anti-inflammatory—as well as therapeu- tic applications. Generally, CBDA is present in the cannabis plant in low levels, although recently some strains have been grown with CBDA levels comparable to typical THC levels. Like THCA, CBDA decarboxylates into other compounds when heated. (An explanation of decarboxylation follows.) Cannabinoid Composition Levels As a general rule, THC and CBD are the most prevalent cannabinoids found in many strains of the cannabis plant, with other cannabinoids appearing in relatively minuscule amounts. (One exception to this rule is the low- THC strains grown to produce industrial hemp.) THC-dominant strains histor- ically have been the most popular with cannabis consumers, but CBD-dominant strains and strains with high levels of other cannabinoids are believed to have medicinal benefits and hold promise for therapeutic applications. Cannabinoid Creation: Decarboxylation All cannabinoids present in cannabis begin as cannabigerolic acid, or CBGA. CBGA is ultimately transformed. into various other cannabinoids through decarboxylation, a process by which a com- pound’s chemical structure changes due to light, heat, alkaline conditions or other chemical forces. The two main catalysts for decarboxylation of CBGA and other cannabinoids are heat and time (the aging process). The following chart depicts the process of cannabinoid decarboxylation. Cannabinoid Decarboxylation Process HEATED CBNA A8 - THC CBN CBL Source: Elemental Wellness 22 © 2017 Ackrell Capital, LLC | Member FINRA/SIPC HOUSE_OVERSIGHT_024658