ACKRELL CAPITAL CHAPTER Ill Cannabis Industry Segmentation Infused Products Infused products are ingestible products that have been infused with cannabinoids and other active compounds from the cannabis plant. There are two general categories of infused products: those con- sumed orally, such as foods and beverages (known as “edibles”), capsules, pills and tinctures; and those applied topically, such as lotions, balms and creams. Infused products may either be infused with concentrates (that are prepared through one of the extraction techniques discussed previously) or pre- pared with other infused products, such as cannabis-infused butter (a concentrate prepared by heating cannabis in butter to release the active compounds, and then filtering out the plant material). The following chart shows the combined relative sales by category of infused products for Colo- rado, Oregon and Washington for the three months ended September 30, 2017. Infused Products Sales by Category: Q3 2017 8% 2% 10% 44% 11% 25% mCandy Chocolates @ Tinctures = Infused foods = Pills © Other Source: BDS Analytics Edibles Popular edibles include infused candies, chocolates and beverages. The active compounds in edibles are digested and metabolized by the liver before taking effect; typically, the time from ingesting to onset of an effect is one to two hours, but the effect lasts longer than that resulting from inhaling smoke or vapor. Edibles generally deliver body-focused effects, which may be preferred by consumers seeking pain relief. © 2017 Ackrell Capital, LLC | Member FINRA/SIPC 49 HOUSE_OVERSIGHT_024685