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ACKRELL CAPITAL CHAPTER VII Capital Markets for Cannabis Companies Capital Raised by U.S. Publicly Traded Cannabis-Related Companies The following table shows the amount of capital (equity and debt) raised by cannabis-related compa- nies traded on U.S. stock markets in the twelve months ended September 30, 2017. Although more than 200 cannabis-related companies were traded on the OTC during this period, the data indicates that very few raised meaningful capital. Capital Raised by U.S. Publicly Traded Cannabis-Related Companies (LTM ended September 30, 2017) $300 $250 eS $200 2 = wi «$150 — &, $100 : ei _ $0 Nasdaq NYSE/NYSE American Total Amount Raised $130 $82 $56 $268 Number of Deals 2 2 11 15 Average Deal Size $65 $41 $5 $18 Source: S&P Global Market Intelligence. In December 2017, a $317 million financing was completed by GW Pharmaceuticals (Nasdaq: GWPH), but the transaction occurred outside the date range of the analysis. Due to the size of the transaction, it is worth noting here. Financial Data and Trading Multiples of U.S. Publicly Traded Cannabis-Related Companies The following tables show selected financial and trading information of cannabis-related companies that are publicly traded on U.S. markets. As the tables indicate, with few exceptions, these companies have little to no revenue and are not profitable. Consequently, most trading multiples are not mean- ingful and the companies tend to trade more on expectations for the overall cannabis industry than on specific company fundamentals (especially for those companies traded on the OTC). © 2017 Ackrell Capital, LLC | Member FINRA/SIPC 123 HOUSE_OVERSIGHT_024759