ACKRELL CAPITAL Cannabis Investment Report | December 28, 2017 Ackrell Capital is pleased to present our 2018 Cannabis Investment Report. Much has happened in the nearly two years since we published our inaugural report: the cannabis industry grew significantly, com- panies in the industry raised large amounts of capital and their stock prices performed well, and the legal- ization movement continued worldwide as more countries and U.S. states implemented a framework for legal cannabis access. There was also a presidential election in the United States; its ultimate impact on the cannabis industry remains uncertain. What did not happen since we launched our inaugural report? Federal legalization: “marijuana” continues to be classified as a Schedule I controlled substance under the Controlled Substances Act in the United States. In this new edition, we introduce an outlook on global cannabis markets, analyze capital markets for cannabis companies and present updated market estimates. We also expand on the first edition by providing more in-depth analyses of the various market segments within—and analyzing the legal issues pertinent to—the cannabis industry. The Top 100 Private Cannabis Companies list has been updated and our industry landscape, The Green Field, has been updated and expanded to include more than 500 companies. Cannabis legalization has accelerated domestically and internationally. In the 2016 U.S. elections, four states, including California, legalized recreational cannabis (bringing the total number of states with recre- ational laws to eight) and an additional four states legalized medical cannabis. Cannabis use is now state- legal in some form in 46 states. In January 2018, California will implement its recreational law, making it the largest market globally for the recreational use of cannabis. Similarly, Canada is expected to pass its recreational law in mid-2018. And in 2017, Germany became the most populous country in the world to pass a me