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Cannabis Investment Report | December 2017 U.S. Legalized Cannabis Market: Consumer Penetration Rate 25% — Path to Federal Legalization FDA Approves Cannabis-Derived Pharmaceuticals 20% : More States Adopt Medical Cannabis Laws More States Adopt Recreational Laws 15% FDA Routinely Approves CBD Drugs FDA Routinely Approves THC Drugs 10% — Federal Government Legalizes Cannabis 5% - 0% - 2016 «2017 «2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Source: Ackrell Capital Monthly Cannabis Spending We estimated average monthly spending on cannabis using data provided by dispensaries in states with recreational laws. We then assigned spending levels (low, moderate and heavy) to each age group of eligible consumers by state. The resulting weighted averages of monthly consumer spending used in our analysis are as follows. U.S. Legalized Cannabis Market: Weighted Average Monthly Consumer Spending $190 $170 $150 ai Path to Federal Legalization $130 FDA Approves Cannabis-Derived Pharmaceuticals More States Adopt Medical Cannabis Laws $110 : More States Adopt Recreational Laws $90 1 FDA Routinely Approves CBD Drugs FDA Routinely Approves THC Drugs $70 _ _ ——— Federal Government Legalizes Cannabis $50 2016 «2017 «2018 §=2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Source: Ackrell Capital 110 © 2017 Ackrell Capital, LLC | Member FINRA/SIPC HOUSE_OVERSIGHT_024746