ACKRELL CAPITAL Cannabis Investment Report | December 2017 products industries, especially as companies from those industries look to enter the cannabis industry, through acquisition or by other means. As demonstrated by the more than $2.0 billion raised by publicly traded and private cannabis- related companies in 2017, capital continues to be available to support the growth of the industry. In the public markets, we believe that Canadian stock markets will continue to be the most receptive globally (until more progress is made in the United States toward federal legalization of cannabis). Overview of Canadian and U.S. Stock Markets United States SEs —EE—EE—E ES Toronto Stock TSX Venture Canadian Securities Exchange (TSX) Exchange (TSXV) Exchange (CSE) ATER Largest exchange in Affiliate of the TSX for — Perceived as the Largest and most Negative reputation s Canada and one of smaller capitalization “OTC” of the recognized stock with many investors ummary world’s largest companies Canadian markets by exchanges in the and regulators many investors world High volume of trading Possible uplisting to Receptive to High volume of trading Possible uplisting to and liquidity; brand the TSX; better brand — companies with U.S. and liquidity; brand other markets: very Benefits recognition; strong than the CSE cannabis operations; recognition; strong few requirements to institutional support very few listing institutional support trade requirements Not receptive to Not receptive to Limited trading Stringent listing Limited trading companies that companies that volume and liquidity; requirements volume and liquidity; Issues violate U.S. federal violate U.S. federal significant price significant price law law; limited liquidity fluctuations; limited fluctuations; limited for small issues institutional support institutional support Expected to continue —_- Viable exchange for Viable exchange for With few exceptions, Cannabis companies to attract the largest smaller Canadian sma