Glossary of Cannabis Industry Terms in House Oversight Document

ACKR CAPI L EL TA CHAPTER X_ Glossary of Terms Oil a category of viscous cannabis concentrates OTC over-the-counter stock market Pipe a device used to smoke cannabis flower; commonly made of glass, wood or metal PPM a private placement memorandum; used by issuers of securities in private offerings to market securities PVPA Plant Variety Protection Act Ruderalis one of three principal cannabis species; ruderalis plants are shaggy and the shortest of the three species SAR Suspicious Activity Report; required to be filed by financial institutions with FinCEN regarding customers engaged in marijuana-related businesses Sativa one of three principal cannabis species; sativa plants are generally tall, thin and wispy SEC U.S. Securities and Exchange Commission Section 280E Internal Revenue Code section 280E Securities Act Securities Act of 1933 Shatter a concentrate prepared through solvent-based extraction; typically has an amber-glass transparency Strain another term for a cannabis plant variety Terpene a class of organic compounds present in cannabis and many other plants; responsible for a plant’s aroma and flavor; believed to have wide-ranging therapeutic applications Tetrahydrocannabinol (THC) delta-9-tetrahydrocannabinol and certain chemical variants, including delta-8-tetrahydrocannabinol; the psychoactive compound in cannabis primarily responsible for the euphoric feeling of being “high”; the most abundant cannabinoid in cannabis; believed to have wide-ranging medicinal benefits and therapeutic applications THC See Tetrahydrocannabinol THCA See Delta-9-Tetrahydrocannabinolic acid Tincture a concentrate suspended in an alcohol solution; usually placed under the tongue using a dropper (sublingual application) Topical an infused product intended for topical application; typically a lotion, balm, cream, lubricant or transdermal patch Trichome a crystalline or hairlike component that secretes cannabinoids, terpenes and other compounds; generally occur all over the cannabis plant, but found in highest concentration on the flower TSX Toronto Stock Exchange TSXV TSX Venture Exchange © 2017 Ackrell Capital, LLC | Member FINRA/SIPC 173 HOUSE_OVERSIGHT_024809