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KR L PI L AC EL CA TA Cannabis Investment Report | December 2017 = Cannabinoids Cannabinoids are compounds present in the cannabis plant that act on human cannabinoid receptors in cells in the nervous and immune systems. Scientists have identified more than 100 cannabinoids in the cannabis plant. Generally, the most abundant cannabinoid is THC, a psychoactive compound that causes a euphoric “high,” and the second most abundant cannabinoid is cannabidiol, or CBD, which produces a relaxing physical effect without a psychoactive effect. Consuming cannabinoids has been shown to have numerous medicinal benefits and therapeutic applications. The following table lists 20 common conditions for which medical cannabis use has been legalized under U.S. state laws and identifies 8 cannabinoids that are used or being studied to treat these conditions. A brief description of these cannabinoids follows the table. Common Qualifying Medical Conditions and Potentially Therapeutic Cannabinoids e e Alzheimer's disease Amyotrophic lateral sclerosis (ALS) Anorexia Arthritis Cachexia Cancer Chronic pain Crohn's disease e Epilepsy Glaucoma Hepatitis C HIV/AIDS e Inflammation Migraine e Multiple sclerosis e Nausea e Nervous system degeneration Parkinson's disease Post-traumatic stress disorder (PTSD) Spasms e THC Tetrahydrocannabinol: THC refers to delta-9-tetrahydrocannabinol and certain chemical variants, including delta-8-tetrahydrocannabinol. THC is the most abundant cannabinoid in cannabis and is understood to be the psychoactive compound in cannabis primarily responsible for the euphoric feeling of being “high.” Both recreational and medicinal users often seek the psychoactive effects of THC and may prefer certain cannabis products based solely on the quality and level of THC. THC is believed to have wide-ranging medicinal benefits: analgesic, antianxiety, antibacterial, anticancer, 20 © 2017 Ackrell Capital, LLC | Member FINRA/SIPC HOUSE_OVERSIGHT_024656