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ACKRELL CAPITAL Cannabis Investment Report | December 2017 Cannabis Flower Cannabis flower, or “bud,” is the most popular product among cannabis consumers. Cannabis flower is usually green (although some varieties have a purple or orange hue), slightly sticky to the touch and spongy in density. The flower has a strong, pungent aroma owing primarily to the trichomes on the flowers, which contain the highest concentrations of cannabinoids and terpenes of any part of the plant. HEADWATERS || 100% Pesticide and Residual-Free Branded Cannabis Flower There are thousands of different cannabis varieties, each with its own cannabinoid and terpene profile and corresponding aroma, flavor and potency. Leading cultivators are recognized each year in contests and ceremonies for their indica, sativa and hybrid varieties. Award-winning varieties —which are often given unique identifying names—frequently become the most in demand by consumers. OG Kush,” “Pineapple Express” and “Sour » cc Popular varieties today include “Blue Dream,” “Gelato, Diesel.” The flower of a typical cannabis variety produced for human consumption contains approximately 15% to 30% THC, approximately 0.1% to 1% CBD and nominal levels of other cannabinoids. Due to advancements in cultivation techniques, THC levels in cannabis flower available today are generally much higher than in the past. Concentrates Cannabis can be processed into a variety of concentrates, many of which are sold as finished products for smoking or vaporizing and some of which can be infused into other products, such as edibles and topicals. Concentrates include CO, oil, butane hash oil or “BHO,” shatter, wax, live resin, budder, kief, ice water hash and rosin. Concentrates are quickly becoming popular for a host of reasons. Some believe vaporizing or ingest- ing concentrates are healthier methods of cannabis consumption than smoking plant material. Extract- ing cannabinoids from the cannabis plant produces higher-potency dosing (THC content can exceed 80% in concentrates), enables custom formulations and flavor profiles, and facilitates consumption that is more convenient and discreet than smoking. The concentration of specific cannabinoids varies 46 © 2017 Ackrell Capital, LLC | Member FINRA/SIPC HOUSE_OVERSIGHT_024682