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ACKRELL CAPITAL Cannabis Investment Report | December 2017 routine approval procedures for drugs with extracts of high-THC cannabis varieties; and (6) canna- bis parts and derivatives will be removed from the CSA schedules (either incrementally, starting with CBD, or all at once) and will be fully legal for medical and recreational purposes. (We expand on these predicted developments in Chapter IV, U.S. Legal Landscape.) We believe that federal legalization will trigger rapid growth in the U.S. market, propelled by interstate commerce, access to the federal bank- ing system and acceleration of the cannabis-derived pharmaceuticals market. A change in the federal status of cannabis in the United States will not only drive U.S. market growth, but should provide a significant catalyst to the market worldwide. Increasing Awareness of the Medical Efficacy of Cannabis. In aggregate, across all U.S. state laws, cannabis is legally recognized as a form of therapy or medicine for more than 50 medical conditions. In addition, at least 20 countries have medical laws that facilitate patient access to cannabis or concen- trates for treating specified medical conditions. We believe that countries and U.S. states will continue to adopt and enhance legal frameworks for the medicinal use of cannabis products. In addition, we believe that many more cannabis consumers will emerge as research on cannabis increasingly demon- strates its medical efficacy and as more therapeutic products are developed and brought to market. Increasing Recreational Legalization. Most laws facilitating access to cannabis, both in U.S. states and abroad, are medical laws. However, Uruguay and eight U.S. states have enacted recreational laws permitting the commercial production and sale of cannabis to adults for recreational and other uses (and Canada is widely expected to do so in mid-2018). In the handful of jurisdictions that started with medical laws and later adopted recreational laws—particularly in C

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