ACKRELL CAPITAL Cannabis Investment Report | December 2017 Cultivation Facilities There are three general types of cannabis cultivation facilities: outdoor facilities, where cannabis is grown under natural sunlight and widely exposed to the elements; greenhouse facilities, where canna- bis is grown under filtered sunlight and environmental conditions are partially controlled; and indoor facilities, where cannabis is grown under electrical lighting and environmental conditions are tightly controlled. Some facilities combine features of these general types. For example, some greenhouses rely primarily on filtered sunlight but also employ supplementary electrical lighting to influence the plant flowering cycle. Each type of facility is suitable for certain purposes. Growing indoors under electrical lighting is the most expensive way to grow cannabis, but typi- cally yields the highest quality cannabis by providing for maximum control over variables such as light, air, nutrition, and exposure to contaminants and pests. Electrical lighting products for indoor cultivation include traditional and compact fluorescent lamps, high-intensity discharge (HID) lamps and light-emitting diode (LED) lamps. Adequate carbon dioxide levels can be maintained indoors with either bottled CO, or CO, generators. Common indoor growth mediums include soil, hydroponic systems (wherein nutrients are added to sand, gravel or liquid growth medium) and aeroponic systems (wherein roots hang suspended in a nutritional aerosol solution). Indoor cultivation facilities are prev- alent in Canada and certain parts of the United States where climatic conditions are not favorable to outdoor cannabis cultivation. “ a ay VA \ ge =. Pf | — se A 4 % J i —_ — ; PA <> a | ES 7 =a 4 a 5 , Sy A == il 5 = Af = 1 -=s =i. WS eee | ee | i ie hee " es | ; dik y ig 1c 5 ~ = : = af NE 7% a * ~ oe > r ail, ‘Vy vA el te Fatty \ oy \ am’, fi i Es —. Indoor Grow Rooms MY | P ei ae ( : t wee, z SHA e 41 4 f = , \ EN Oe e