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ACKRELL
CAPITAL
CHAPTER! Executive Summary
U.S. Legalized Cannabis Market
$140,000 Path to Federal Legalization
$120,000 FDA Approves Cannabis-Derived Pharmaceuticals
More States Adopt Medical Cannabis Laws
$100,000 :
More States Adopt Recreational Laws
‘@ $80,000 FDA Routinely Approves CBD Drugs
Re)
= FDA Routinely Approves THC Drugs
«# $60,000
Federal Government Legalizes Cannabis
$40,000
$20,000
) —_
70M
60M
50M
40M
SIOLUNSUOD JO JEqUINN
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
| | Legalized Cannabis Market Size
=== Consumers
Source: Ackrell Capital. Assumes cannabis will be legalized federally by 2027. Cannabis may never be legalized federally in the United States.
= To Watch in 2018
We believe that the following events will impact the legalized
cannabis industry in 2018.
Increasing Recreational Legalization
We expect 2018 will be a watershed year for recreational
markets, both in the United States and internationally. Cal-
ifornia will begin implementing its new recreational law in
January 2018, and Canada’s proposed recreational law is
widely expected to be approved in some form by mid-2018.
California, which has a population of 38 million people
and receives 250 million visitors annually, is poised to tran-
sition from the world’s largest medical cannabis market to
the largest recreational market with the implementation of
its recreational law in January 2018.
In each of the three largest U.S. states to implement rec-
reational laws—Colorado, Oregon and Washington—the
To Watch in 2018
Increasing Recreational
Legalization
Cannabis Consumer Experience
goes “Mainstream”
FDA Approval of Cannabis-
Derived Pharmaceuticals
Commoditization of
Cannabis Flower
Access to Banking Services for
U.S. Cannabis Companies
Increasing Strategic Investor
Activity; Continuing Funding
Gap
size of the legalized cannabis market expanded significantly, doubling the size of the overall market in
each of these states in the first full calendar year after implementation. The world has yet to experience
a legalized recreational cannabis market in a jurisdiction as large as California, and how the supply
chain, consumer response and regulatory framework will coalesce in such a market remains to be seen.
© 2017 Ackrell Capital, LLC | Member FINRA/SIPC
HOUSE_OVERSIGHT_024643