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ACKRELL CAPITAL CHAPTER VI U.S. and International Cannabis Market Estimates Oregon Oregon implemented a medical law in 1998 and a recreational law in 2015. The following graph shows the impact of Oregon’s recreational law on the overall market in the state. State-Legal Cannabis Market: Oregon $500 - $470 $450. - $400 - | |) Medical | Ml Recreational $350 - $300 - $250. - ($ millions) $200 - $150. - $100 - $50 $0 —— — — EE ——— 2013 2014 2015 2016 2017E Source: Ackrell Capital California In 1996, California became the first U.S. state to implement a medical law. In November 2016, the state enacted a recreational law, the implementation of which is scheduled to begin in January 2018. The following graph shows the impact that California’s recreational law is expected to have on the overall market in the state. State-Legal Cannabis Market: California $7,000 $6,491 ‘ Ml Recreational $5,000 $4,000 ( millions) $3,000 $2,000 $1,000 $0 2016 2017E 2018E Source: Ackrell Capital © 2017 Ackrell Capital, LLC | Member FINRA/SIPC 107 HOUSE_OVERSIGHT_024743