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ACKRELL CAPITAL Cannabis Investment Report | December 2017 limited number of cannabis plants (typically, 4 to 6) for personal use. (Washington is an exception, however, and makes personal cultivation a felony unless it is done by a person registered in the state’s medical marijuana database.) Unlike state medical cannabis laws, which may restrict the form of can- nabis products available, recreational laws permit production and sale of most common forms of can- nabis products, including a wide variety of flower, concentrates and infused products. State recreational laws designate state agencies to issue commercial cannabis licenses and regulate participants in the cannabis supply chain. Some of these agencies are newly established specifically to regulate cannabis, such as California's Bureau of Cannabis Control (BCC) or Massachusetts’s Cannabis Control Commission. Others are existing state agencies (and typically oversee tax or alcohol matters), such as Nevada’s Department of Taxation or Oregon’s Liquor Control Commission. These agencies also may regulate state medical cannabis industries, as do Colorado’s Marijuana Enforcement Division, Washington's Liquor and Cannabis Board and California's BCC. State regulatory agencies issue separate licenses for different types of commercial cannabis activities. Common categories of licenses include cultivation, production, manufacturing, distribution, transpor- tation, laboratory testing and retail. A state may further provide for multiple types of licenses within a category. For example, California's recreational law provides for 12 types of cultivation licenses, which vary according to factors such as the size of a cultivation facility and indoor or outdoor cultivation. Most states allow companies to hold licenses in multiple categories, thereby allowing vertically inte- grated cultivation, manufacturing and retail businesses. Washington is an exception—in most cases, a business is prohibited from holding licenses across

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