ACKRELL CAPITAL CHAPTER VII Capital Markets for Cannabis Companies m Public Capital Markets: Canada As of November 30, 2017, six cannabis-related companies were trading on the TSX, 20 were trading on the TSXV and 41 were trading on the CSE. Most of the publicly traded cannabis-related companies in Canada are licensed producers under Canada’s Access to Cannabis for Medical Purposes Regula- tions, which allow a company to produce and sell medical cannabis products in Canada. A number of companies traded on the CSE also have cannabis-related operations in the United States. The following table provides a summary of cannabis-related companies traded on Canadian stock markets. Summary of Canadian Publicly Traded Cannabis-Related Companies (As of November 30, 2017) Average ($U.S. millions) Number of Market Enterprise LTM LTM Companies Value Value Cash Debt Revenue’ EBITDA Toronto Stock Exchange (TSX) 6 $1,361.5 $1,311.4 $71.0 $20.8 $26.6 $0.8 TSX Venture Exchange (TSXV) 20 131.5 123.9 10.8 3.3 1.2 -3.5 Canadian Securities Exchange (CSE) 41 72.6 72.0 2.0 1.4 1.8 -2.8 Canada 67 $210.6 $203.3 $11.1 $3.8 $4.0 -$2.2 Source: S&P Global Market Intelligence. Companies that are traded on more than one market are included in their primary market as determined by S&P Global Market Intelligence, based on stock price history, trading volume and availability of estimates. Enterprise Value is defined as Market Value plus Debt minus Cash and Cash Equivalents. LTM is Last Twelve Months. EBITDA is defined as Earnings Before Interest, Taxes, Depreciation and Amortization. Stock Price Performance of Canadian Publicly Traded Cannabis-Related Companies The following chart shows the stock price performance of selected publicly traded cannabis-related companies in Canada since September 30, 2016. The chart indicates that the stock price performance of cannabis-related companies trading on Canadian markets received a boost from the announcement of the proposed recreational cannabis legislation i