ACKRELL CAPITAL CHAPTER! Executive Summary The U.S. State-Legal Cannabis Market The legal landscape for the cannabis industry in the United States continues to be character- ized by conflict between federal prohibition and the steady advance of state legalization. Accord- ing to federal policy, Americans can access tobacco, alcohol and prescription drug products that kill thousands each year, but they cannot access cannabis because it is a dangerous drug with no currently accepted medical application in the United States (notwithstanding the federal gov- ernment holds a U.S. patent for methods of treating diseases with cannabinoids). Meanwhile, 46 U.S. states have enacted at least one law that permits the manufacturing, distribution, dispensing or possession of cannabis or concentrates. These laws fall into three general categories: ¢ 29 U.S. states (and the District of Columbia) have enacted medical cannabis laws that permit the production and possession of cannabis or concentrates for use in treating a broad range of qualifying medical conditions. ° 19 U.S. states have enacted narrow CBD/limited laws that permit possession of small amounts of low- THC/high-CBD cannabis concentrates for use in treating a few serious medical condi- tions—in particular, severe forms of childhood epilepsy. ¢ 8 USS. states have enacted recreational laws that permit the commercial production and sale of cannabis to adults for recreational and other uses. The following map of the United States shows states with medical cannabis laws, CBD/limited laws or recreational laws (a state with more than one of these laws is represented on the map by its most permissive law). U.S. State Cannabis Laws (January 2018) . She Waa : \M ‘¢ SSN on : L_ | 7 im See : yy > L] 2 ME Recreational Law i wen ME Medical Cannabis Law \ PY) CBDILimited Law © 2017 Ackrell Capital, LLC | Member FINRA/SIPC 3 HOUSE_OVERSIGHT_024639