Zynerba Pharmaceuticals, Inc. NasdaqGM:ZYNE 13.77 46.9% 186.6 120.4 0.0 –31.2 NM NM NM NM NM NM
Median 51.6% $397.3 $285.0 $6.0 –$50.7 1.6x NM 1.7x 11.4x NM 6.4x
($U.S. millions, except stock price)
LTM
Forward Forward
EV
Revenue EBITDA
Stock % Below
Multiples
Multiples Multiples
Price 52-Week Market Enterprise LTM LTM
Company Ticker 11/30/17 High Value Value (EV) Revenue EBITDA Revenue EBITDA 2018 2019 2018 2019
22nd Century Group, Inc. AMEX:XXII $2.33 33.4% $287.9 $273.2 $14.0 –$11.3 19.5x NM 12.7x 10.7x NM NM
India Globalization Capital, Inc. AMEX:IGC 0.58 27.6% 16.3 18.2 0.6 –1.6 28.8 NM NA NA NA NA
Innovative Industrial
Properties, Inc.
New York Stock Exchange and NYSE American
NYSE:IIPR 18.15 11.5% 63.5 41.3 4.6 –1.2 9.0 NM 2.4 1.3 3.7x 1.6x
Median 27.6% $63.5 $41.3 $4.6 –$1.6 19.5x NM 7.6x 6.0x 3.7x 1.6x
Ancillary
Constellation Brands, Inc. NYSE:STZ $217.59 4.2% $42,572.2 $51,393.3 $7,458.5 $2,709.3 6.9x 19.0x 6.7x 6.3x 18.3x 16.6x
The Scotts Miracle-Gro
Company
NYSE:SMG 98.90 3.5% 5,689.7 6,969.0 2,642.1 500.0 2.6 13.9 2.5 2.4 12.9 12.0
Median 3.9% $24,131.0 $29,181.2 $5,050.3 $1,604.7 4.8x 16.5x 4.6x 4.3x 15.6x 14.3x
Source: S&P Global Market Intelligence. Not Meaningful (NM) used for negative multiples, and for revenue multiples greater than 100.0x and
EBITDA multiples greater than 50.0x. Not Available (NA) used for information that is not available. 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.
124 © 2017 Ackrell Capital, LLC | Member FINRA / SIPC
CHAPTER VII
Capital Markets for Cannabis Companies
Over The Counter (Market Value Greater than $25 million)
LTM
($U.S. millions, except stock price) Stock % Below
EV Multiples
Price 52-Week Market Enterprise LTM LTM
Company Ticker 11/30/17 High Value Value (EV) Revenue EBITDA Revenue EBITDA
Abattis Bioceuticals Corp. OTCQB:ATTBF $0.22 20.2% $39.5 $38.8 $0.0 –$3.6 NM NM
American Cannabis Company, Inc. OTCQB:AMMJ 0.75 40.5% 38.6 36.7 2.9 0.3 12.7x NM
AmeriCann, Inc. OTCQB:ACAN 2.03 63.1% 39.3 42.4 0.0 –1.8 NM NM
Amfil Technologies, Inc. OTCPK:AMFE 0.15 36.1% 99.7 99.9 0.2 NA NM NM
AXIM Biotechnologies, Inc. OTCQB:AXIM 7.02 64.6% 382.8 387.5 0.0 –2.9 NM NM
Cannabics Pharmaceuticals Inc. OTCQB:CNBX 1.02 86.6% 120.7 117.3 0.0 –1.8 NM NM
Cannabis Leaf, Inc. OTCPK:PCFP 0.97 61.2% 48.8 48.9 0.0 NA NM NM
Cannabis Sativa, Inc. OTCQB:CBDS 3.95 58.4% 83.8 83.5 0.1 –6.4 NM NM
Cannabis Science, Inc. OTCPK:CBIS 0.06 56.3% 155.4 158.1 0.0 –9.6 NM NM
Cannabix Technologies Inc. OTCPK:BLOZ.F 1.19 37.4% 103.0 100.5 0.0 NA NM NM
CannaGrow Holdings, Inc OTCPK:CGRW 0.99 57.0% 100.3 102.7 1.7 –1.4 62.0 NM
Corix Bioscience, Inc. OTCQB:CXBS 1.19 45.9% 29.6 29.6 0.0 NA NM NM
Earth Science Tech, Inc. OTCPK:ETST 0.81 79.5% 32.0 31.9 0.4 NA 74.1 NM
Evergreen-Agra Global
OTCQB:EGRN 1.00 85.7% 26.4 26.4 0.0 –0.4 NM NM
GB Sciences, Inc. OTCQB:GBLX 0.24 56.4% 31.3 37.0 0.2 –10.3 NM NM
General Cannabis Corp. OTCQB:CANN 1.65 51.6% 37.1 39.5 0.1 –7.4 NM NM
Green Spirit Industries Inc. OTCPK:GSRX 5.75 77.0% 172.6 172.6 0.0 NA NM NM
GrowGeneration Corp. OTCQX:GRWG 2.50 13.8% 41.1 39.3 13.1 –1.2 3.0 NM
Helix TCS, Inc. OTCPK:HLIX 3.00 76.9% 85.9 86.7 3.5 –3.0 24.9 NM
HempTech Corporation OTCPK:HTCO 1.82 83.9% 100.7 101.7 0.0 –0.5 NM NM
iAnthus Capital Holdings, Inc. OTCQB:ITHU.F 1.64 39.1% 61.7 74.3 0.1 NA NM NM
Kush Bottles, Inc. OTCQB:KSHB 2.84 20.2% 170.4 170.2 18.8 0.8 9.1 NM
Leafbuyer Technologies, Inc. OTCPK:LBUY 1.04 72.8% 39.9 39.8 0.9 NA 42.5 NM
Lexaria Bioscience Corp. OTCQB:LXRP 0.82 18.8% 56.9 54.4 0.1 –1.8 NM NM
Lifestyle Delivery Systems Inc OTCQB:LDSY.F 0.50 25.6% 46.0 44.6 0.7 –5.1 65.3 NM
Marijuana Company of America OTCPK:MCOA 0.03 76.8% 54.6 55.0 0.0 –21.9 NM NM
MariMed Inc. OTCQB:MRMD 0.70 16.3% 119.8 119.8 0.0 NA NM NM
mCig, Inc. OTCQB:MCIG 0.17 66.1% 68.5 67.0 7.7 1.2 8.7 NM
Medical Marijuana, Inc. OTCPK:MJNA 0.10 55.1% 307.1 317.7 8.0 –3.9 39.7 NM
Medicine Man Technologies, Inc. OTCQB:MDCL 1.79 43.2% 39.2 39.0 2.4 –5.5 16.2 NM
OWC Pharmaceutical Research OTCQB:OWCP 0.48 85.2% 70.1 69.0 0.1 –4.7 NM NM
PharmaCyte Biotech, Inc. OTCQB:PMCB 0.05 71.6% 46.7 42.4 0.0 NA NM NM
Player's Network, Inc. OTCQB:PNTV 0.08 66.1% 45.0 45.9 0.2 –4.7 NM NM
Praetorian Property, Inc. OTCPK:PRRE 0.52 75.8% 81.1 93.5 14.1 NA 6.6 NM
SanSal Wellness Holdings, Inc. OTCPK:SSWH 0.95 29.6% 55.9 57.4 0.6 –1.5 NM NM
Stony Hill Corp. OTCPK:STNY 2.50 50.0% 39.0 38.8 0.2 NA NM NM
Surna Inc. OTCQB:SRNA 0.15 35.5% 29.6 28.3 6.9 –3.3 4.1 NM
Terra Tech Corp. OTCQX:TRTC 0.20 42.1% 178.2 173.6 31.9 –18.6 5.4 NM
THC Therapeutics, Inc. OTCPK:THCT 0.34 60.6% 39.7 39.7 0.0 0.0 NM NM
The Tinley Beverage Company OTCPK:QRSR.F 0.56 15.2% 41.4 38.8 0.1 NA NM NM
United Cannabis Corporation OTCQB:CNAB 0.78 69.0% 46.7 46.0 0.5 NA 99.2 NM
Vitality Biopharma, Inc. OTCQB:VBIO 1.85 56.4% 42.7 41.9 0.1 –4.3 NM NM
WEED, Inc.
OTCPK:BUDZ 2.79 44.8% 279.0 278.5 0.0 –5.2 NM NM
WOWI, Inc.
OTCPK:WOWU 1.65 67.0% 53.6 54.7 0.0 –26.0 NM NM
Median 56.4% $54.1 $54.5 $0.1 –$3.4 16.2x NM
© 2017 Ackrell Capital, LLC | Member FINRA / SIPC 125
Cannabis Investment Report | December 2017
Comparison of U.S. Stock Markets
U.S. stock markets vary significantly in terms of their financial, liquidity and corporate governance
requirements. Most U.S. publicly traded cannabis-related companies trade on the OTC due to its less
stringent requirements, as compared to Nasdaq and the NYSE. The following chart provides a comparison
of Nasdaq, the NYSE and the OTC.
U.S. Stock Market Comparison
Nasdaq
NYSE
Nasdaq OTC
Market Tiers
Nasdaq Global Select Market
Nasdaq Global Market
Nasdaq Capital Market
NYSE
NYSE American
OTCQX
OTCQB
OTCPink
Number of
Listed
Companies
Total
Cannabisrelated
3,200+
4
2,800+
3
10,300+
212
Market
Value 1
Total
Median
$11.3 trillion $29.6 trillion $247.7 billion
$334.0 million $1.5 billion $0.5 million
Listing or
Trading
Requirements
Must meet financial and liquidity
criteria under at least one category
of Standards. Criteria include:
Stockholders’ Equity, Market
Capitalization, Operating History,
Net Income, Amount of Publicly
Held Shares and Number of
Shareholders.
Must meet financial and liquidity
criteria under at least one category
of Standards. Criteria include:
Stockholders’ Equity, Market
Capitalization, Pre-tax Income,
Amount of Publicly Held Shares
and Number of Shareholders.
OTCQX: Must meet minimum
financial and liquidity
criteria
OTCQB and OTCPink:
No financial and liquidity
criteria
Minimum
Share
Price
Nasdaq Global Select
Market: $4.00
Nasdaq Global Market: $4.00
Nasdaq Capital Market: $2.00
NYSE: $4.00
NYSE American: $2.00
OTCQX: $0.10
OTCQB: $0.01
OTCPink: None
Corporate
Governance
Requirements
• Annual audit
• Audit committee and
compensation committee
• Majority of independent
directors
• Annual audit
• Audit committee and
compensation committee
• Majority of independent
directors
OTCQX and OTCQB:
• Annual audit
• Audit committee
• Two independent directors
OTCPink: No requirements
Reporting
Requirements
Required to file quarterly
and annual reports
Required to file quarterly
and annual reports
Not required to make
regular filings
Registration
Requirements
Required to register
with the SEC
Required to register
with the SEC
Not required to register
with the SEC
1 Source: S&P Global Market Intelligence
126 © 2017 Ackrell Capital, LLC | Member FINRA / SIPC
CHAPTER VII
Capital Markets for Cannabis Companies
n Public Capital Markets: Canada
As of November 30, 2017, six cannabis-related companies were trading on the TSX, 20 were trading
on the TSXV and 41 were trading on the CSE. Most of the publicly traded cannabis-related companies
in Canada are licensed producers under Canada’s Access to Cannabis for Medical Purposes Regulations,
which allow a company to produce and sell medical cannabis products in Canada. A number of
companies traded on the CSE also have cannabis-related operations in the United States. The following
table provides a summary of cannabis-related companies traded on Canadian stock markets.
Summary of Canadian Publicly Traded Cannabis-Related Companies
(As of November 30, 2017)
Average ($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 in Canada by Prime Minister Justin Trudeau and,
more recently, from Constellation Brands’ investment in Canopy Growth.
© 2017 Ackrell Capital, LLC | Member FINRA / SIPC 127
Cannabis Investment Report | December 2017
Canadian Cannabis Stock Price Performance
1500%
1300%
1100%
900%
700%
500%
Canadian Prime Minister
announces plans to
legalize recreational
cannabis
Constellation Brands’
investment in
Canopy Growth
300%
100%
–100%
Sep 16 Nov 16 Jan 17 Mar 17 May 17 Jul 17 Sep 17 Nov 17
S&P/TSX Index
Source: S&P Global Market Intelligence
TSX/TSXV Cannabis Index
CSE Cannabis Index
Capital Raised by Canadian Publicly Traded
Cannabis-Related Companies
The following table shows the amount of capital (equity and debt) raised by cannabis-related companies
traded on Canadian stock markets in the twelve months ended September 30, 2017.
128 © 2017 Ackrell Capital, LLC | Member FINRA / SIPC
CHAPTER VII
Capital Markets for Cannabis Companies
Capital Raised by Canadian Publicly Traded Cannabis-Related Companies (LTM ended September 30, 2017)
$1200
$1000
($U.S. millions)
$800
$600
$400
$200
$0
TSX TSXV CSE Total
Amount Raised
$403
$334
$319
$1056
Number of Deals
11
21
28
60
Average Deal Size
$37
$16
$11
$18
Source: S&P Global Market Intelligence
Financial Data and Trading Multiples of Canadian
Publicly Traded Cannabis-Related Companies
The following tables show selected financial and trading information of cannabis-related companies
that are publicly traded on Canadian markets.
© 2017 Ackrell Capital, LLC | Member FINRA / SIPC 129
Cannabis Investment Report | December 2017
Toronto Stock Exchange
($U.S. millions, except stock price)
LTM
Forward Forward
EV
Revenue EBITDA
Stock % Below
Multiples
Multiples Multiples
Price 52-Week Market Enterprise LTM LTM
Company Ticker 11/30/17 High Value Value (EV) Revenue EBITDA Revenue EBITDA 2018 2019 2018 2019
Aphria Inc. TSX:APH $8.91
9.9%
$1,350.2
$1,281.7
$17.7
$3.8
72.4x
NM
37.7x
9.9x
NM
27.5x
Aurora Cannabis Inc. TSX:ACB 6.21
7.6%
2,483.5
2,406.8
18.6
–4.7
NM
NM
48.6
13.6
NM
30.4
CanniMed Therapeutics Inc. TSX:CMED 15.15
10.9%
347.8
315.8
12.0
2.0
26.3
NM
10.6
5.4
48.5x
13.3
Canopy Growth Corporation TSX:WEED 14.30
15.1%
2,720.6
2,641.7
46.3
1.9
57.1
NM
39.7
11.7
NM
NM
MedReleaf Corp. TSX:LEAF 12.66
13.7%
1,146.2
1,094.8
32.9
9.7
33.3
NM
30.8
9.4
NM
27.0
Neptune Technologies &
Bioressources Inc.
TSX:NEPT 1.54
15.0%
120.8
127.4
32.4
3.7
3.9
NM
6.0
4.3
NM
NM
Median 12.3% $1,248.2
$1,188.3
$25.5
–$0.1
33.3x
NM
34.2x
9.6x
48.5x
27.3x
TSX Venture Exchange
($U.S. millions, except stock price)
Stock
Price
% Below
52-Week Market Enterprise LTM LTM
LTM
EV
Multiples
Forward
Revenue
Multiples
Forward
EBITDA
Multiples
Company Ticker 11/30/17 High Value Value (EV) Revenue EBITDA Revenue EBITDA 2018 2019 2018 2019
ABcann Global Corporation TSXV:ABCN $1.13 19.9% $152.7 $129.7 $0.7 –$8.7 NM NM 11.2x 2.6x NM 9.2x
Cannabis Wheaton Income TSXV:CBW 0.68 56.5% 157.2 157.0 0.1 –6.2 NM NM NA NA NA NA
Cronos Group Inc. TSXV:MJN 3.38 9.0% 503.2 494.0 2.3 2.5 NM NM 16.1 5.8 NM 17.6
Delta 9 Cannabis Inc. TSXV:NINE 2.37 23.8% 143.9 145.5 0.4 –1.7 NM NM NA NA NA NA
Emblem Corp. TSXV:EMC 1.26 64.6% 117.1 108.0 1.8 –7.5 59.4x NM 10.5 2.0 NA 5.6
Emerald Health Therapeutics TSXV:EMH 2.27 4.6% 213.8 195.6 0.6 –4.3 NM NM 46.6 NA NA NA
Harvest One Cannabis Inc. TSXV:HVST 0.71 18.6% 63.7 54.1 0.2 –4.5 NM NM 17.0 1.8 NA 9.2
Hempco Food and Fiber Inc. TSXV:HEMP 1.66 31.6% 77.5 77.4 4.7 –1.3 16.5 NM NA NA NA NA
ICC International Cannabis TSXV:ICC 0.76 44.3% 104.6 102.5 0.1 –4.5 NM NM 6.4 1.1 NM 4.0
Invictus MD Strategies Corp. TSXV:IMH 1.12 33.6% 89.6 66.7 1.8 –10.3 37.6 NM 27.3 3.6 NM 13.3
LGC Capital Ltd. TSXV:LG 0.29 24.0% 79.6 76.6 0.0 –1.7 NM NM NA NA NA NA
Maple Leaf Green World Inc. TSXV:MGW 0.46 24.4% 67.3 64.2 0.4 –1.1 NM NM NA NA NA NA
National Access Clinic Corp. TSXV:NAC 0.40 30.1% 24.0 25.0 0.7 –2.4 36.7 NM NA NA NA NA
Naturally Splendid Enter. TSXV:NSP 0.21 45.0% 20.4 20.9 1.9 –4.3 10.9 NM NA NA NA NA
Newstrike Resources Ltd. TSXV:HIP 0.39 16.7% 151.1 152.1 0.0 –0.3 NM NM NA NA NA NA
OrganiGram Holdings Inc. TSXV:OGI 2.61 15.7% 277.4 244.2 4.0 –5.2 60.7 NM 9.7 3.4 46.5x 12.6
Tetra Bio-Pharma Inc. TSXV:TBP 0.54 14.8% 63.6 62.0 0.0 –3.9 NM NM NA NA NA NA
The Hydropothecary Corp. TSXV:THCX 1.92 17.7% 149.8 133.3 3.3 –0.6 40.7 NM 15.8 3.6 NM 29.8
Viridium Pacific Group Ltd. TSXV:VIR 1.09 15.2% 49.5 48.6 0.0 –0.1 NM NM NA NA NA NA
WeedMD Inc. TSXV:WMD 1.69 12.8% 123.2 121.0 0.5 –3.1 NM NM 9.9 2.3 NM 8.6
Median 21.8% $110.8 $105.3 $0.5 –$2.0 37.6x NM 13.5x 2.6x 46.5x 9.2x
Source: S&P Global Market Intelligence. Not Meaningful (NM) used for negative multiples, and for revenue multiples greater than 100.0x and
EBITDA multiples greater than 50.0x. Not Available (NA) used for information that is not available. Enterprise Value is defined as Market Value
plus Debt minus Cash and Cash Equivalents. LTM is Last Twelve Months. EBITDA is defined as Earnings Before Interest, Taxes, Depreciation
and Amortization.
130 © 2017 Ackrell Capital, LLC | Member FINRA / SIPC
CHAPTER VII
Capital Markets for Cannabis Companies
Canadian Securities Exchange
($U.S. millions, except stock price)
Company
Ticker
Stock
Price
11/30/17
% Below
52-Week
High
Market Enterprise LTM LTM
LTM
EV
Multiples
Forward
Revenue
Multiples
Forward
EBITDA
Multiples
Value Value (EV) Revenue EBITDA Revenue EBITDA 2018 2019 2018 2019
Alliance Growers Corp. CSE:ACG $0.16 20.0% $6.9 $6.8 $0.0 $0.0 NM NM 5.0x 0.3x NM 0.8x
Alternate Health Corp. CSE:AHG 1.52 78.0% 79.3 76.6 10.3 –6.4 7.4x NM NA NA NA NA
Beleave Inc. CSE:BE 1.38 37.5% 44.8 44.1 0.0 –8.8 NM NM 11.4 NA NM NA
Canada House Wellness Group Inc. CSE:CHV 0.29 43.3% 35.6 36.3 4.4 –4.1 8.2 NM NA NA NA NA
CannaRoyalty Corp. CSE:CRZ 2.28 41.2% 96.9 96.3 2.2 –8.6 44.2 NM 3.1 1.8 17.0x 8.1
CannTrust Holdings Inc. CSE:TRST 5.43 12.5% 471.8 466.3 12.6 5.2 36.9 NM 9.0 5.5 31.8 20.6
DOJA Cannabis Company Limited CSE:DOJA 1.06 8.7% 16.2 16.0 0.0 –0.1 NM NM NA NA NA NA
Eviana Health Corporation CSE:EHC 1.09 30.0% 16.7 17.2 0.0 0.0 NM NM NA NA NA NA
Friday Night Inc. CSE:TGIF 0.39 13.8% 60.3 61.2 0.8 –1.9 74.3 NM NA NA NA NA
Future Farm Technologies Inc. CSE:FFT 0.37 23.8% 37.2 37.7 0.3 –7.5 NM NM NA NA NA NA
International Cannabrands Inc. CSE:JUJU.A 0.18 20.5% 1.8 2.4 0.2 –1.2 14.8 NM NA NA NA NA
Global Cannabis Applications Corp. CSE:APP 0.26 20.9% 10.5 10.7 0.0 –1.1 NM NM NA NA NA NA
Global Hemp Group Inc. CSE:GHG 0.09 17.2% 14.3 14.4 0.0 0.0 NM NM NA NA NA NA
Golden Leaf Holdings Ltd. CSE:GLH 0.27 36.4% 110.1 115.5 7.9 –10.6 14.6 NM NA NA NA NA
HealthSpace Data Systems Ltd. CSE:HS 0.08 23.1% 8.7 9.8 1.9 –1.5 5.1 NM NA NA NA NA
High Hampton Holdings Corp. CSE:HC 0.30 22.0% 3.8 3.7 0.0 –0.3 NM NM NA NA NA NA
InMed Pharmaceuticals Inc. CSE:IN 0.52 30.2% 67.5 62.7 0.0 –4.6 NM NM NA NA NA NA
Isodiol International Inc. CSE:ISOL 1.14 18.8% 251.2 250.7 14.2 0.6 17.6 NM NA NA NA NA
Kaneh Bosm BioTechnology Inc. CSE:KBB 0.06 37.5% 0.8 0.7 0.0 0.0 NM NM NA NA NA NA
Liberty Health Sciences Inc. CSE:LHS 1.33 33.2% 377.5 377.5 0.0 0.0 NM NM NA NA NA NA
Liberty Leaf Holdings Ltd. CSE:LIB 0.21 11.5% 20.2 19.7 0.0 –1.9 NM NM NA NA NA NA
Lifestyle Delivery Systems Inc CSE: LDS 0.50 26.4% 46.0 44.6 0.7 –5.1 65.3 NM NA NA NA NA
Lotus Ventures Inc. CSE:J 0.40 16.1% 17.8 17.7 0.0 –0.5 NM NM NA NA NA NA
Marapharm Ventures Inc. CSE:MDM 0.76 44.6% 71.4 69.8 0.4 –3.6 NM NM NA NA NA NA
Maricann Group Inc. CSE:MARI 1.76 15.9% 162.7 162.2 3.1 –14.3 52.9 NM 9.8 2.0 NM 5.8
Matica Enterprises Inc. CSE:MMJ 0.25 5.8% 57.1 56.0 0.0 –1.8 NM NM NA NA NA NA
MPX Bioceutical Corporation CSE:MPX 0.39 51.5% 100.7 108.0 10.6 –3.5 10.2 NM 5.2 2.9 NM 12.3
MYM Nutraceuticals Inc. CSE:MYM 2.15 7.7% 200.8 200.4 0.3 –0.9 NM NM NA NA NA NA
Platinex Inc. CSE:PTX 0.10 28.9% 9.9 9.8 0.0 –0.7 NM NM NA NA NA NA
PUF Ventures Inc. CSE:PUF 0.79 11.3% 41.2 39.6 0.0 –1.2 NM NM NA NA NA NA
Quadron Cannatech Corporation CSE:QCC 0.19 44.4% 10.7 10.0 1.7 –0.7 6.0 NM NA NA NA NA
Quinsam Capital Corporation CSE:QCA 0.34 24.1% 15.0 12.8 0.0 0.1 NM NM NA NA NA NA
Ravenquest Biomed Inc. CSE:RVT 0.03 47.1% 1.0 1.1 0.0 –0.2 NM NM NA NA NA NA
Supreme Pharmaceuticals Inc. CSE:SL 1.06 33.2% 219.3 202.5 1.2 –13.4 NM NM 16.6 2.5 NM 7.8
TerrAscend Corp. CSE:TER 1.33 13.6% 61.9 61.0 0.0 –4.3 NM NM NA NA NA NA
THC Biomed Intl Ltd. CSE:THC 0.59 33.9% 65.4 66.8 0.0 –1.2 NM NM NA NA NA NA
True Leaf Medicine International Ltd. CSE:MJ 0.69 9.2% 46.4 45.9 0.8 –2.4 56.9 NM NA NA NA NA
Valens Groworks Corp. CSE:VGW 0.85 33.9% 52.0 51.8 0.0 –3.4 NM NM NA NA NA NA
Veritas Pharma Inc. CSE:VRT 0.69 5.3% 28.5 27.8 0.0 –2.4 NM NM NA NA NA NA
Vodis Pharmaceuticals Inc. CSE:VP 0.30 61.0% 9.2 10.7 0.0 –3.6 NM NM NA NA NA NA
Wildflower Marijuana Inc. CSE:SUN 0.52 46.0% 27.5 27.4 0.2 –0.8 NM NM NA NA NA NA
Median 24.1% $41.2 $39.6 $0.0 –$1.5 16.2x NM 9.0x 2.2x 24.4x 8.0x
© 2017 Ackrell Capital, LLC | Member FINRA / SIPC 131
Cannabis Investment Report | December 2017
Comparison of Canadian Stock Markets
Similar to stock markets in the United States, Canadian stock markets vary significantly in terms
of their financial, liquidity and corporate governance requirements. Most Canadian publicly traded
cannabis-related companies trade on the CSE due to its less stringent requirements, as compared to the
TSX and TSXV. More than 10% of the companies traded on the CSE are cannabis-related companies.
The following chart provides a comparison of the TSX, TSXV and CSE.
Canadian Stock Market Comparison
Toronto Stock Exchange
(TSX)
TSX Venture Exchange
(TSXV)
Canadian Securities Exchange
Nasdaq (CSE)
Number of
Listed
Companies
Total
Cannabisrelated
1487
6
1791
20
337
41
Market
Value 1
Total ($U.S.)
Median ($U.S.)
$2.0 trillion $33.7 billion $6.2 billion
$282.6 million $5.0 million $6.1 million
Listing or
Trading
Requirements
Must meet financial and liquidity
criteria determined by a company’s
industry.Criteria include:
Earnings, Revenue, Cash Flow,
Net Tangible Assets, Adequate
Working Capital, Cash, Market
Capitalization, Amount of Publicly
Held Shares and Number of
Shareholders.
Must meet financial and liquidity
criteria determined by a
company’s industry.Criteria
include: Net Tangible Assets,
Revenue, Adequate Working
Capital, Property, Operating
History, Amount of Publicly
Held Shares and Number of
Shareholders.
Must meet financial and liquidity
criteria determined by a
company’s industry and whether
the company is an operating
company. Criteria include:
Revenue, Assets, Amount of
Publicly Held Shares and
Number of Shareholders.
Corporate
Governance
Requirements
• Annual audit
• Audit committee
• Two independent directors
• Annual audit
• Audit committee
• Two independent directors
• Annual audit
• Audit committee
Reporting
Requirements
Required to file quarterly
and annual reports
Required to file quarterly
and annual reports
Required to file quarterly
and annual reports
1 Source: S&P Global Market Intelligence
132 © 2017 Ackrell Capital, LLC | Member FINRA / SIPC
CHAPTER VII
Capital Markets for Cannabis Companies
n Private Capital Markets
The cannabis industry today is replete with early-stage private companies seeking to raise capital. This
capital, whether equity or debt, may be available from (i) “friends and family,” (ii) more formalized
groups and networks of “angel” investors, (iii) family offices, (iv) dedicated cannabis investment funds
(currently few in number, but growing), and (v) strategic investors. However, because of the legal
considerations, traditional institutional investors—most notably the venture capital and private equity
communities—continue to be mostly absent from the market.
As with most early-stage companies in other industries, many emerging cannabis-related companies
are trying to follow the typical progression of raising equity capital, as illustrated in the following chart.
Equity Financing Progression for Cannabis-Related Companies
Today
Future
Friends and
Family
Seed Series A Series B Series C
Initial Public
O�ering
Individual Investors
Institutional and Strategic Investors
The following table provides a summary of the reported capital (equity and debt) raised by private
cannabis-related companies in 2016 and year to date through November 30, 2017. While the table
indicates that significant capital is available in the private markets, we believe that the dearth of acces -
sible institutional capital makes it challenging for many companies to raise subsequent rounds of financing
after successfully securing their start-up capital. In addition, the amount raised per transaction is
small and there have been very few announced financings of meaningful size by private companies.
While we believe that the data is informative, it is challenging to get accurate and comprehensive data
for the number and dollar amount of transactions that occur in private markets within the cannabis
industry because of the number of transactions that are not reported.
© 2017 Ackrell Capital, LLC | Member FINRA / SIPC 133
Cannabis Investment Report | December 2017
Total Capital Raised by Private Cannabis-Related Companies Globally
$600
$500
($U.S. millions)
$400
$300
$200
$100
$0
2016
2017 YTD
Amount Raised
Number of Deals
Average Deal Size
Source: Ackrell Capital
$256
65
$4
$483
102
$5
The following table shows the scarcity of large transactions announced by private cannabis-related
companies for the year to date through November 30, 2017.
Selected Financings by Private Cannabis-Related Companies (YTD through November 30, 2017)
($U.S. millions)
Issuer Amount Date
düber Technologies Inc. $50.0 September 2017
Eaze Solutions, Inc. 27.0 September 2017
Surterra Holdings LLC 13.4 September 2017
Teewinot Life Sciences Corporation 12.3 April 2017
Hound Labs, Inc. 8.1 May 2017
iUNU, Inc. 6.3 August 2017
Green Leaf Medical, LLC 5.9 June 2017
RX Green Solutions LLC 5.3 July 2017
River Collective 5.0 April 2017
Greene Fox Enterprises 5.0 May 2017
134 © 2017 Ackrell Capital, LLC | Member FINRA / SIPC
CHAPTER VII
Capital Markets for Cannabis Companies
In addition, an increasing number of direct lenders are participating in the private debt markets
for cannabis-related companies. These lenders represent an important capital source for the industry,
as typical forms of debt capital, such as bank financing, remain unavailable to most companies. As in
other industries, debt financing is typically available only to those companies having meaningful cash
flow or tangible assets to secure the debt. While the number of lenders is increasing, there is still a
relative scarcity of debt capital available to the cannabis industry, which can lead to a higher debt cost
of capital of 200–500 basis points or more for cannabis-related companies, as compared to companies
in other industries.
The following chart illustrates the type of debt that may be available to cannabis-related companies,
representative terms of such debt, and the types of companies that may be able to access debt in the
private markets.
Debt Financing Alternatives for Cannabis-Related Companies
Cost of Capital
Covenants
Senior
Debt
Lease
Financing
Subordinated
Debt
Low Double Digits
Mid-teens
More Restrictive
�
Type of
Securitization
(if secured):
Land
Buildings
Equipment
A/R
Inventory
�
Type of
Borrowers:
Cultivators
Extractors
Dispensaries
Product Manufacturers
Convertible
Debt
High-teens to 20%+
Less Restrictive
n Final Thoughts
As stated previously, valuations and stock price fluctuations in the cannabis industry continue to be
driven more by expectations for the cannabis industry in general than by individual company fundamentals.
Today, in the public markets, trading volumes are too low, trading prices are too volatile and
operating histories are too limited to place any reliance on current valuation levels in the cannabis
industry. We believe that this dynamic will continue until cannabis-related companies have matured
and start to realize meaningful revenue, profitability and other financial metrics that will allow investors
to evaluate companies within the industry by more traditional methodology.
It is still too early to know how the cannabis industry or its sectors will be valued in the future. It
may come to pass that companies in the cannabis industry are valued comparably to public companies
in industries with similar characteristics, such as the alcohol, tobacco, pharmaceutical and consumer
© 2017 Ackrell Capital, LLC | Member FINRA / SIPC 135
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 cannabisrelated
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
Canada
United States
Toronto Stock
Exchange (TSX)
TSX Venture
Exchange (TSXV)
Canadian Securities
Exchange (CSE)
Nasdaq/NYSE
OTC
Summary
Largest exchange in
Canada and one of
world’s largest
Affiliate of the TSX for
smaller capitalization
companies
Perceived as the
“OTC” of the
Canadian markets by
many investors
Largest and most
recognized stock
exchanges in the
world
Negative reputation
with many investors
and regulators
Benefits
High volume of trading
and liquidity; brand
recognition; strong
institutional support
Possible uplisting to
the TSX; better brand
than the CSE
Receptive to
companies with U.S.
cannabis operations;
very few listing
requirements
High volume of trading
and liquidity; brand
recognition; strong
institutional support
Possible uplisting to
other markets; very
few requirements to
trade
Issues
Not receptive to
companies that
violate U.S. federal
law
Not receptive to
companies that
violate U.S. federal
law; limited liquidity
for small issues
Limited trading
volume and liquidity;
significant price
fluctuations; limited
institutional support
Stringent listing
requirements
Limited trading
volume and liquidity;
significant price
fluctuations; limited
institutional support
Outlook
Expected to continue
to attract the largest
Canadian companies
in the cannabis
industry
Viable exchange for
smaller Canadian
companies with no
cannabis operations
in the United States
Viable exchange for
smaller Canadian
companies with
cannabis operations
in the United States
With few exceptions,
cannabis companies
will not be able to
list while federal
prohibition continues
Cannabis companies
will continue to trade
on the OTC despite
the limited benefits
Although capital continues to be available for select issuers in both the public and private markets,
we believe that the cannabis industry will continue to face a large funding gap for the foreseeable
future, driven by the lack of institutional investors. However, we believe a growing number of retail,
institutional and family office investors will support the industry in 2018 and beyond.
136 © 2017 Ackrell Capital, LLC | Member FINRA / SIPC
CHAPTER VIII
Top 100
Private Cannabis Companies 2018
In this chapter, we present our current list of the Top 100 Private Cannabis Companies. Our determination
to include companies on the list is subjective, and the list is intended to be a cross-section of the
types of companies in the cannabis industry. Our list comprises privately held companies, primarily
U.S. companies, companies we believe have a strong reputation or position in their market segments
and companies pursuing a line of business we consider promising. We intend to update our list periodically,
and we expect it may change significantly over time.
Most companies on our list are in early stages of development, and many will need to raise capital to
succeed. Raising capital for early-stage companies in any industry is extremely challenging. Early-stage
cannabis companies seeking capital face the same challenges as early-stage companies in other industries
but must also address challenges unique to the cannabis industry. Although we hope the companies
on our list ultimately succeed, we expect some will go out of business for any number of reasons,
including lack of access to capital.
Inclusion in our list does not represent an investment recommendation or endorsement of any
particular company or product. We have made investments in and conducted investment banking and
other services for companies included in the Top 100 Private Cannabis Companies 2018 list, and may
do so in the future. Readers should be aware that we may have a conflict of interest that could affect the
objectivity of our decision to include a company in the list. For additional disclosures and disclaimers,
see page 175.
© 2017Ackrell Capital, LLC | Member FINRA / SIPC 137
Cannabis Investment Report | December 2017
Top 100 Private Cannabis Companies 2018
AEssenseGrows Défoncé Jetty Extracts River Collective
Ample Organics Dixie Elixirs Kikoko Rubicon Organics
Apeks Supercritical Dosist KIVA Confections S2S Development
The Apothecarium Eaze Solutions Korova SC Laboratories
Auntie Dolores Eel River Organics LeafLink Scrubbed
Baker Technologies Elemental Wellness Leafly SPARC
BAS Research Euflora Level Blends Spectrum King
BDS Analytics Evolve Therapeutics LivWell Enlightened Health Steep Hill Labs
Beboe Evoxe Laboratories Lunchbox Alchemy StickyGuide
Berkeley Patients Group Flow Kana Mary's Medicinals Strainz
BioTrackTHC Flowhub Meadow Teewinot Life Sciences
Bloom Farms FunkSac Merry Jane Tikun Olam
Brewbudz Garden State Dispensary MiNDFUL Treez
Bud and Bloom GFarmaLabs MJ Freeway Trellis
Calyx Brands Gold Coast Extracts MJardin Trulieve
Cannabis Reports Green Dot Labs MM Acquisition Co. Utopia Farms
CannaCraft Green Flower Media Native Roots VapeWorld
CannaKorp Green Rush New Vansterdam Vapexhale
Colorado Harvest Company The Green Solution Northwest Cannabis Solutions VCC Brands
Columbia Care Harborside Health Center NWT Holdings (Firefly) Vuber
Confident Cannabis Harvest Organa Brands Wana Brands
Cultivation Technologies Headset PAX Labs Web Joint
Cura Cannabis Solutions HelloMD PharmaCielo Weedguide
CW Analytical Humboldt Legends PRØHBTD Media Weedmaps
Deep Cell Incense Specialties Qind Wellness Connection of Maine
138 © 2017 Ackrell Capital, LLC | Member FINRA / SIPC
CHAPTER VIII Top 100 Private Cannabis Companies 2018
AEssenseGrows
Sunnyvale, California
www.aessensegrows.com
AEssenseGrows is a producer of modular aeroponic
systems for cannabis cultivation. The
company develops full-scale cultivation systems
equipped with software, automation and monitoring
capabilities. Such systems enable cultivators
to deliver nutrients to the plant more
efficiently, and thus generate higher-yielding
output than conventional cultivation systems.
Ample Organics
Toronto, Ontario
www.ampleorganics.com
Ample Organics is a software developer for cannabis
cultivators. The company offers a system
to track all aspects of the cannabis cultivation
business. The company’s products enable medical
cannabis producers in Canada to comply
with Canadian law.
Apeks Supercritical
Johnstown, Ohio
www.apekssupercritical.com
Apeks Supercritical is a provider of botanical
oil extraction systems that utilize subcritical
and supercritical CO 2 gas as a solvent. The
company’s fully automated systems range from
a 1-liter benchtop system to a 40-liter production
system. These systems provide consistent
extraction results for the production of cannabis
concentrates.
The Apothecarium
San Francisco, California
www.apothecarium.com
The Apothecarium is an operator of recreational
and medicinal cannabis dispensaries. The company
offers cannabis flower, concentrates, edibles
and accessories throughout its locations in
California and Nevada.
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Auntie Dolores
Oakland, California
www.auntiedolores.com
Auntie Dolores is a producer of branded cannabis-infused
edibles. The company produces
a variety of edibles, including pretzels, biscuits,
brownies, cookies, corn and nuts. The company’s
products are sold directly to cannabis consumers
and through cannabis dispensaries in
California.
Baker Technologies
Denver, Colorado
www.trybaker.com
Baker Technologies provides a customer relationship
management platform for cannabis
dispensaries and brands. The company provides
messaging, loyalty programs and online ordering
features to enable cannabis dispensaries to
attract and retain cannabis consumers.
BAS Research
Berkeley, California
www.basresearch.com
BAS Research is a cannabis research and manufacturing
company. The company provides
its clients with bulk cannabis oil, cannabis-oil
extraction consulting services, contract manufacturing
and fulfillment.
BDS Analytics
Boulder, Colorado
www.bdsanalytics.com
BDS Analytics is a provider of data analytics
solutions to the cannabis industry. The company
tracks data from point-of-sale systems
to provide insight into consumer buying
patterns. The company sells its solutions to a
wide range of customers.
140 © 2017 Ackrell Capital, LLC | Member FINRA / SIPC
CHAPTER VIII Top 100 Private Cannabis Companies 2018
Beboe
Los Angeles, California
www.beboe.com
Beboe is a producer of branded cannabis products.
The company’s cannabis oil vaporizers and
cannabis-infused edibles are available in dispensaries
throughout California.
Berkeley Patients Group
Berkeley, California
www.mybpg.com
Berkeley Patients Group is an operator of
a cannabis dispensary. The company retails a
broad variety of cannabis products, including
flower, pre-rolls, concentrates, edibles, topicals,
seeds and accessories. It also operates an online
e-commerce portal and offers a limited sameday
delivery service to patients in Berkeley,
California and the surrounding area.
BioTrackTHC
Ft. Lauderdale, Florida
www.biotrack.com
BioTrackTHC is a provider of compliance and
business management software for the retail
cannabis industry. The company’s software platform
is designed for inventory and sales management
to track the seed-to-sale process and is
used by recreational and medicinal dispensaries,
cultivators and state governments.
Bloom Farms
San Francisco, California
www.getbloomfarms.com
Bloom Farms is a producer of branded cannabis
products, including cannabis oil and flower. The
company’s products are available in dispensaries
throughout California.
© 2017 Ackrell Capital, LLC | Member FINRA / SIPC 141
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Brewbudz
San Diego, California
www.brewbudz.us
Brewbudz is a manufacturer of branded cannabis-infused
products. The company develops
cannabis-infused coffee, tea and cocoa pods that
can be used in Keurig ® systems. Its products are
available in select dispensaries in Nevada.
Bud and Bloom
Santa Ana, California
www.budandbloomoc.com
Bud and Bloom is the operator of a cannabis
dispensary. The company offers cannabis flower,
concentrates, edibles and accessories and sells
these products at its Santa Ana location.
Calyx Brands
Oakland, California
www.gocalyx.com
Calyx Brands is a cannabis distribution company.
The company engages in the distribution,
transportation and marketing of cannabis
products.
Cannabis Reports
Berkeley, California
www.cannabisreports.com
Cannabis Reports is a publisher of industry data
for cannabis users and business owners. The
company offers news, studies, product information
and dispensary information.
142 © 2017 Ackrell Capital, LLC | Member FINRA / SIPC
CHAPTER VIII Top 100 Private Cannabis Companies 2018
CannaCraft
Santa Rosa, California
www.cannacraft.com
CannaCraft is a producer of branded strainspecific
cannabis concentrates and cannabisinfused
edibles. The company provides a range
of high-THC products, including concentrate
cartridges, oils, softgels, sprays and straws. It
focuses on providing concentrates of the most
popular cannabis flower strains. Products are
sold through cannabis dispensaries in California.
The company manufactures its products
under the AbsoluteXtracts, Care By Design and
Satori brands.
CannaKorp
Boston, Massachusetts
www.cannakorp.com
CannaKorp is a manufacturer of branded cannabis
consumer products. The company produces
the CannaCloud, a tabletop vaporizer system
utilizing single-use cannabis-infused pods.
Colorado
Harvest Company
Denver, Colorado
www.coloradoharvestcompany.com
Colorado Harvest Company is an operator of
recreational and medicinal cannabis dispensaries
and cultivation facilities. The company’s three
dispensary locations retail flower, concentrates
and edibles. It also operates an indoor hydroponic
grow facility.
Columbia Care
New York, New York
www.col-care.com
Columbia Care is an operator of medical cannabis
dispensaries and cultivation facilities. The
company operates 27 medical dispensaries across
9 states and the District of Columbia under several
brands, including Columbia Care, Curative
Health, Patriot Care and SWC Arizona.
© 2017 Ackrell Capital, LLC | Member FINRA / SIPC 143
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Confident Cannabis
Palo Alto, California
www.confidentcannabis.com
Confident Cannabis is a cannabis lab-testing
and analytics company. The company allows
users to view the results of their product testing
and analytics in an online platform. Its technology
can be integrated into dispensary websites.
Cultivation
Technologies
Coachella, CA
www.cultivationtech.com
Cultivation Technologies provides infrastructure,
genetics, technology and branding to the
legal cannabis industry. The company is building
a campus for the development of pharmaceutical-grade
cannabis products.
Cura
Cannabis Solutions
Portland, Oregon
www.curacan.com
Cura Cannabis Solutions is a provider of cannabis
concentrates. The company offers cannabis
distillates and oils to consumers and edibles
manufacturers. Its products are available in dispensaries
throughout California, Nevada and
Oregon.
CW Analytical
Oakland, California
www.cwanalytical.com
CW Analytical is a cannabis lab-testing company
that tests cannabis and cannabis-based products
for potency, pesticides and microbiology. The
company also consults with dispensaries and
edibles manufacturers to provide best practices
for product handling and product labeling.
144 © 2017 Ackrell Capital, LLC | Member FINRA / SIPC
CHAPTER VIII Top 100 Private Cannabis Companies 2018
Deep Cell
Seattle, Washington
www.deepcell.industries
Deep Cell is a synthetic biology and cannabis
intellectual property holding company. The
company provides licenses to companies who
wish to produce Deep Cell’s cannabis-infused
sugar. Its products are available from Deep Cell
licensees.
Défoncé
Oakland, California
www.defonce.com
Défoncé is a producer of branded cannabisinfused
products, primarily focusing on chocolate-based
edibles. The company offers a wide
range of chocolate-bar flavors that are available
in dispensaries located throughout California.
Dixie Elixirs
Denver, Colorado
www.dixieelixirs.com
Dixie Elixirs is a producer of branded cannabis-infused
edibles. The company produces
a wide range of products, including chocolate-based
edibles, beverages, capsules, mints,
energy shots, topicals and disposable vaporizer
pens. The company’s products are sold in
many dispensaries throughout California and
Colorado.
Dosist
Los Angeles, California
www.dosist.com
Dosist is a producer of cannabis vapor izers.
The company develops pre-filled cannabis vaporizers
that are designed to provide consumers
with a specific mood. The company’s products
are available in dispensaries located throughout
California.
© 2017 Ackrell Capital, LLC | Member FINRA / SIPC 145
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Eaze Solutions
San Francisco, California
www.eaze.com
Eaze Solutions is a developer and provider of
an on-demand cannabis delivery-service application
that enables consumers to order cannabis
products via mobile devices. The company’s
mobile application allows users to access a daily
menu of cannabis products for purchase and
direct-to-consumer delivery.
Eel River Organics
Sacramento, California
www.eelriverfamilyfarm.com
Eel River Organics is a producer of branded
cannabis products from Humboldt County,
California. The company offers can nabis flower,
concentrates, vaporizer cartridges and cultivation
equipment. Its products are available in
select California dispensaries.
Elemental
Wellness
San Jose, California
www.elementalwellnesscenter.com
Elemental Wellness is an operator of a cannabis
dispensary and wellness center in San Jose, California.
The company offers a range of cannabis
flower, concentrates and edibles, as well as delivery
services and a range of wellness classes.
Euflora
Denver, Colorado
www.eufloracolorado.com
Euflora is an operator of four recreational cannabis
dispensaries in Colorado. The company’s
locations sell flower, pre-rolls, concentrates, topicals,
seeds, vaporitzers and branded accssories.
The company also cultivates numerous cannabis
strains in its own grow facility.
146 © 2017 Ackrell Capital, LLC | Member FINRA / SIPC
CHAPTER VIII Top 100 Private Cannabis Companies 2018
Evolve
Therapeutics
San Francisco, California
www.evolvetherapeutics.com
Evolve Therapeutics is a biopharmaceutical
company focused on the research and manufacture
of cannabinoid-based medications. The
company produces a variety of cannabis products
that are available in dispensaries located
throughout California.
Evoxe
Laboratories
Oakland, California
www.evoxelabs.com
Evoxe Laboratories is a producer of cannabis
vaporizers. The company develops pre-filled
cannabis vaporizers that are designed to provide
consumers with a specific mood. The company’s
products are available in dispensaries throughout
California.
Flow Kana
San Francisco, California
www.flowkana.com
Flow Kana is a producer of cannabis flower. The
company owns property in Mendocino County,
where it plans to partner with small cultivators
to create an institute for cannabis manufacturing,
education and leisure.
Flowhub
Denver, Colorado
www.flowhub.co
Flowhub is a provider of inventory management
software for the cannabis industry. The company
provides software to aid cultivators and
dispensary operators in tracking their business
from seed to sale. The software is designed to aid
customers in compliance.
© 2017 Ackrell Capital, LLC | Member FINRA / SIPC 147
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FunkSac
Denver, Colorado
www.funksac.com
FunkSac is a provider of compliant packaging
solutions for the medicinal and recreational
cannabis industry. The company has a comprehensive
product line manufactured with
FDA-approved material and eco-friendly cannabis
packaging solutions that are highly secure.
FunkSac retails its products to cultivators,
dispensaries and edibles manufacturers.
Garden State Dispensary
Woodbridge, New Jersey
www.gardenstatedispensary.com
Garden State Dispensary is a medicinal cannabis
dispensary located in New Jersey. The company
produces its own medical cannabis and offers a
patient research and counseling program.
GFarmaLabs
Anaheim, California
www.gfarmalabs.com
GFarmaLabs is a producer of branded cannabis,
cannabis-infused edibles, cannabis concentrates
and vaporizer accessories. The company
produces pre-rolls, beverages, chocolate-based
edibles, honey, concentrate cartridges and injectors.
GFarmaLabs sells its products through
dispensaries in California and Washington. Its
products are marketed as being produced from
“100% indoor flower.”
Gold Coast
Extracts
Los Angeles, California
www.goldcoastusa.com
Gold Coast Extracts is an extraction consultant
and producer of branded cannabis concentrates.
The company provides extraction consulting
services to cultivators and concentrates producers.
It also produces an award-winning line
of branded cannabis concentrates in shatter and
wax form. The company’s products are sold in
dispensaries throughout California.
148 © 2017 Ackrell Capital, LLC | Member FINRA / SIPC
CHAPTER VIII Top 100 Private Cannabis Companies 2018
Green Dot Labs
Boulder, Colorado
www.greendotlabs.com
Green Dot Labs is a cultivation and extrac tion
company that provides branded concentrates
to consumers. The company operates an indoor
hydrocarbon extraction facility and utilizes
proprietary cannabis-flower genetics to produce
whole-plant extracts. The company’s products
are available in dispensaries throughout
Colorado.
Green Flower
Media
Ventura, California
www.learngreenflower.com
Green Flower Media is a digital media company
operating a website that offers cannabis
industry information. The company offers
on line classes to customers who are interested in
learning about all things cannabis-related. The
com pany’s website also offers informational live
streams from industry professionals.
Green Rush
San Mateo, California
www.greenrush.com
Green Rush provides an online medical cannabis
delivery service. The company offers a
range of cannabis flower, concentrates, edibles,
tinctures and accessories. It has partnered with
hundreds of cannabis dispensaries in California,
Colorado, Nevada, New York and Michigan.
The Green Solution
Denver, Colorado
www.tgscolorado.com
The Green Solution is an operator of medicinal
and recreational cannabis dispensaries. The
company’s 15 locations retail flower, pre-rolls,
concentrates, edibles, topicals, seeds, vaporizers
and branded accessories. The company also produces
its own line of branded concentrates and
edibles.
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Harborside Health Center
Oakland, California
www.shopharborside.com
Harborside Health Center operates cannabis
dispensaries. The company’s two locations retail
flower, pre-rolls, concentrates, edibles, seeds,
topicals and accessories. The company sources
cannabis-flower products from local cultivators.
Harvest
San Francisco, California
www.harvestshop.com
Harvest is an operator of cannabis dispensaries.
In addition to offering a full range of cannabis
products, the company’s dispensaries also serve
as smoking lounges. The company has two locations
in San Francisco.
Headset
Seattle, Washington
www.headset.io
Headset is a data analytics company for businesses
within the cannabis industry. The company
offers a SaaS product that tracks market
data, business intelligence and retailer-direct
data with clients located in states where cannabis
has been legalized.
HelloMD
San Francisco, California
www.hellomd.com
HelloMD provides a digital healthcare platform.
The company provides prescriptions for
medicinal-cannabis patients via online, live
video consultations. The company also provides
a dispensary locator and cannabis product
reviews.
150 © 2017 Ackrell Capital, LLC | Member FINRA / SIPC
CHAPTER VIII Top 100 Private Cannabis Companies 2018
Humboldt
Legends
Trinidad, California
www.humboldtlegends.com
Humboldt Legends is a producer of cannabis
flower products sourced from Humboldt
County, California. The company offers cannabis
flower in eighths and pre-rolls. The company’s
products are available in dispensaries
throughout California.
Incense
Specialties
Lake Worth, Florida
www.thisthingrips.com
Incense Specialties is a producer of cannabis
vaporizers. The company designs and manufactures
a line of vaporizer pens under the brand
name “This Thing Rips.” The company’s products
are available in more than 4,000 points of
sale across the United States and Canada.
Jetty Extracts
Oakland, California
www.jettyextracts.com
Jetty Extracts is a producer of cannabis vaporizers
and cannabis concentrates. The company
develops pre-filled cannabis vaporizers, cartridges
and wax that offer the consumer formulations
of both THC and CBD. The company’s
products are available in dispensaries throughout
California.
Kikoko
San Francisco, California
www.kikoko.com
Kikoko is a producer of branded cannabisinfused
teas. The company offers a range of
THC and CBD teas. Kikoko products are available
in select California dispensaries.
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KIVA
Confections
San Leandro, California
www.kivaconfections.com
KIVA Confections is a producer of branded
cannabis-infused edibles. The company’s awardwinning
products are sold through cannabis
dispensaries in California and Colorado.
Korova
Oakland, California
www.korovaedibles.com
Korova is a producer of branded cannabisinfused
edibles. The company offers a selection
of cannabis-infused cookies and brownies at
varying potencies. The company’s products are
available in dispensaries located in California,
Arizona and Nevada.
LeafLink
New York, New York
www.leaflink.com
LeafLink provides a software platform to facilitate
e-commerce B2B sales, CRM and order
fulfillment tracking of products for cannabis
brands and dispensaries.
Leafly
Seattle, Washington
www.leafly.com
Leafly is a digital media company. Its online
directory and content platform for cannabis
consumers provides information about locations
of dispensaries, news pertaining to the cannabis
industry and the effects of different cannabis
strains.
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CHAPTER VIII Top 100 Private Cannabis Companies 2018
Level Blends
San Francisco, California
www.levelblends.com
Level Blends is a producer of branded cannabis
concentrates. The company utilizes a proprietary
extraction process to produce a line of
branded concentrates for use in vaporizers. The
company’s products are available in dispensaries
throughout California.
LivWell
Enlightened Health
Denver, Colorado
www.livwell.com
LivWell Enlightened Health is an operator of
medicinal and recreational cannabis dispensaries
and cultivation facilities. The company
operates 15 retail locations in Colorado and
Oregon and sells flower, pre-rolls, concentrates,
edibles, topicals and branded accessories.
It also operates an indoor cultivation facility
and is recognized as the largest cannabissector
employer in Colorado.
Lunchbox
Alchemy
Bend, Oregon
www.lunchboxalchemy.com
Lunchbox Alchemy is a producer of branded
cannabis-infused edibles and cannabis concentrates.
The company produces cannabis-infused
candies and macaroons, concentrate cartridges
and ethanol tinctures. Its products are available
in dispensaries throughout Oregon.
Mary’s Medicinals
Denver, CO
www.marysmedicinals.com
Mary’s Medicinals is a producer of branded
cannabis concentrates. The company provides
a range of transdermal patches and pens, topicals
and powders featuring cannabinoid-based
concentrates. The company’s award-winning
products deliver cannabinoids, including THC
and CBD as well as THCA, CBN and CBC.
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Meadow
San Francisco, California
www.getmeadow.com
Meadow is a developer and provider of an on-demand
cannabis delivery-service application for
dispensaries. The company markets online and
mobile-ordering applications for dispensaries.
The web and mobile applications allow users
to access a menu of can nabis products for purchase
and direct-to-consumer delivery through
dispensaries.
Merry Jane
Los Angeles, California
www.merryjane.com
Merry Jane is a digital media company focused
on the cannabis industry. The company’s website
provides commentary on recent events, pop
culture, business, politics and health-related
news. The company provides strain reviews and
information, as well as a dispensary locator.
MiNDFUL
Denver, Colorado
www.bemindful.today
MiNDFUL is an operator of recreational and
medicinal cannabis dispensaries. The company
operates five retail locations in Colorado
and a single location in Illinois. The company
sells flower, concentrates, edibles, topicals and
branded accessories.
MJ Freeway
Denver, Colorado
www.mjfreeway.com
MJ Freeway is a provider of enterprise management
software for the cannabis industry.
The company’s core solution is a software platform
for inventory and sales management to
track the seed-to-sale process in compliance
with state requirements. The software is used
by recreational and medicinal dispensaries,
infused-product manufacturers and cultivators.
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CHAPTER VIII Top 100 Private Cannabis Companies 2018
MJardin
Denver, Colorado
www.mjardin.com
MJardin is a provider of cannabis cultivation
management services. The company offers facility
design, inventory tracking, and management
and operational consulting services. The company’s
services are available in states having medical
or recreational laws.
MM Acquisition Co.
Los Angeles, California
MM Acquisition Co. is a provider of turnkey
real estate services and business services to cannabis
cultivators and dispensary operators in
California. The company operates in three business
segments: Property Leasing Business, Services
Business and Other Related Businesses.
Native Roots
Denver, Colorado
www.nativeroots303.com
Native Roots is an operator of medicinal and
recreational cannabis dispensaries and cultivation
facilities. The company operates 21 dispensaries
and retails flower, pre-rolls, concentrates,
edibles and vaporizer accessories. The
company also sells a line of branded hash-oil
concentrates under the “Native Roots Extracts”
brand. It operates an indoor cultivation facility
and has won numerous industry awards for the
operation.
New Vansterdam
Vancouver, Washington
www.newvansterdam.com
New Vansterdam is an operator of a cannabis
dispensary in Washington. The company
offers a selection of cannabis flower, concentrates,
edibles and topicals. It also offers online
ordering.
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Northwest
Cannabis Solutions
Olympia, Washington
www.nwcs425.com
Northwest Cannabis Solutions is a manufacturer
of white-label cannabis products. The
company offers cannabis flower cultivation,
extraction and infused edibles. It supplies dispensaries
throughout Washington.
NWT Holdings (Firefly)
San Francisco, California
www.thefirefly.com
NWT Holdings is a vaporizer technology company.
The company designs and manufactures
branded convective-heating vaporizers under
the “Firefly” brand. Its portable vaporizer is
designed for use with concentrates and flower.
Organa Brands
Denver, Colorado
www.organabrands.com
Organa Brands is a manufacturer and distributor
of cannabis products and vaporizers. The
company manufactures and retails its products
under the Organa Labs, O.penVAPE, Bakked,
Magic Buzz and District Edibles brands. The
company’s products are distributed through
1,200 dispensaries across ten states.
PAX Labs
San Francisco, California
www.paxvapor.com
PAX Labs is a vaporizer technology company
that designs and manufactures branded vaporizers
that use conductive heating. The company’s
portable vaporizers are designed for use with
concentrates and flower.
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CHAPTER VIII Top 100 Private Cannabis Companies 2018
PharmaCielo
Rionegro, Colombia
www.pharmacielo.com
PharmaCielo is an emerging global supplier of
naturally grown and processed, standardized
medicinal-grade cannabis extracts. The company
holds the first cannabis-processing license
issued under the legal framework of Colombia’s
cannabis laws and has one of the largest cultivation
platforms in the cannabis industry, with
more than 14.6 million square feet of companyowned
or contracted open-air greenhouses in
Colombia, South America.
PRØHBTD Media
Los Angeles, California
www.prohbtd.com
PRØHBTD Media is a vertically integrated
digital media company. The company provides
digital agency services to cannabis brands, maintains
a cannabis-related art, music, video, fashion,
travel and lifestyle website and develops
original media content focused on the cannabis
industry.
Qind
San Francisco, California
www.qind.com
Qind is a producer and distributor of branded
cannabis products, including flower, concentrates,
edibles and other infused products. The
company sells directly to consumers through
in-home events, e-commerce and next-day
home delivery. The company also provides educational
materials and content to its customers
through its social network.
River Collective
Sacramento, California
www.rvrdc.com
River Collective is a distribution company for
branded cannabis products. The company partners
with businesses throughout California
that produce cannabis flower, concentrates and
edibles.
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Rubicon Organics
Bellingham, Washington
www.rubiconorganics.com
Rubicon Organics is a licensed cannabis cultivator
specializing in the growing, processing,
packaging and marketing of cannabis. The company
is developing greenhouses in Washington
and California.
S2S Development
San Francisco, California
www.s2s-inc.com
S2S Development is a contract manufacturer
and distributor of cannabis products. The
company provides manufacturing, co-packing,
testing and distribution services to cannabis
companies.
SC Laboratories
Santa Cruz, California
www.sclabs.com
SC Laboratories is a cannabis lab-testing company.
The company tests cannabis and cannabisbased
products for potency, pesticides and
microbiology, adhering to FDA and other
guidelines in its testing. The company also provides
consulting services to cultivators, dispensaries
and producers of cannabis-infused edibles
to implement industry best practices.
Scrubbed
San Francisco, California
www.scrubbed.net
Scrubbed is an outsourced bookkeeping,
accounting and tax firm serving the cannabis
industry. The company has a dedicated cannabis
practice that provides clients with comprehensive
turnkey accounting and tax solutions.
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CHAPTER VIII Top 100 Private Cannabis Companies 2018
SPARC
San Francisco, California
www.sparcsf.com
SPARC operates three cannabis dispensaries. It
also provides lab-testing services. In addition to
the company’s dispensary locations, the company
provides a direct-to-consumer delivery service
for flower, pre-rolls, concentrates, edibles,
seeds and accessories. The company performs
in-house testing of its products and operates its
own cultivation facility.
Spectrum King
Canoga Park, California
www.spectrumkingled.com
Spectrum King is a producer of cannabis grow
lights and accessories. The company offers a
range of full-spectrum LED grow lights and
grow tents. Its products are available through a
network of international distributors.
Steep Hill Labs
Berkeley, California
www.steephill.com
Steep Hill Labs is a cannabis lab-testing
company that tests cannabis and cannabisbased
products for potency, pesticides and
microbiology. The company has developed
QuantaCann2™, an in-field cannabis-testing
technology system; GenKit™, a male cannabisplant
identification system; and Strain Fingerprint™,
a graphical depiction of a strain’s most
common cannabinoids. The company has locations
or licensees nationwide.
StickyGuide
Los Angeles, California
www.stickyguide.com
StickyGuide is a digital media company
that operates an online content and directory
site focused on cannabis consumers. The
company’s website provides detailed cannabis-strain
information as well as reviews. The
company also provides a dispensary locator.
The website maintains an active member base
and an online user-generated content forum.
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Strainz
Las Vegas, Nevada
www.strainz.com
Strainz is a cannabis-brand management company.
The company partners with producers to
create cannabis oil cartridges and tinctures. Its
products are available in dispensaries located in
Colorado, Nevada and Washington.
Teewinot
Life Sciences
Tampa, Florida
www.tlscorp.com
Teewinot Life Sciences is a pharmaceutical company
focused on the biosynthetic production of
cannabinoids. The company has developed processes
for cannabinoid formulations intended
for cannabinoid-based human therapies.
Tikun Olam
Safed, Israel
www.tikun-olam.info
Tikun Olam produces and supplies cannabis in
Israel. The company cultivates medical cannabis
strains, conducts research and educates patients
on the use of medical cannabis. It conducts business
in Israel, Canada, Australia and the United
States.
Treez
Fremont, California
www.treez.io
Treez is a software company that has developed
an enterprise resource-management platform
for cannabis dispensaries. The company provides
software and services to support all aspects
of operations in dispensaries located throughout
a number of states.
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CHAPTER VIII Top 100 Private Cannabis Companies 2018
Trellis
Oakland, California
www.trellisgrows.com
Trellis provides inventory-management software
for the cannabis industry. The company provides
software to aid cultivators, producers and
dispensary operators in tracking their business
from seed to sale. The software is designed to aid
customers in compliance.
Trulieve
Quincy, Florida
www.trulieve.com
Trulieve is an operator of medical cannabis
dispensaries in Florida, offering a selection of
concentrates in the form of capsules, syringes,
tinctures and vaporizers. The company also
maintains its own cannabis cultivation facility.
Utopia Farms
Santa Cruz, California
www.utopiafarms.org
Utopia Farms is a producer of branded cannabis
products. The company produces
cannabis flower, concentrates and cannabisinfused
macaroons that are available in dispensaries
throughout California.
VapeWorld
Boca Raton, Florida
www.vapeworld.com
VapeWorld operates an online e-commerce website
dedicated to cannabis accessories. Vaporizers
from leading manufacturers, as well as parts
and accessories, are available on its website. The
company also provides consumers with online
content about vaping.
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Vapexhale
San Francisco, California
www.vapexhale.com
Vapexhale is a vaporizer technology company
that designs and manufactures branded vaporizers
that use conductive heating. The company
develops tabletop and portable vaporizers
that are designed for use with concentrates and
flower.
VCC Brands
Los Angeles, California
www.vccbrands.com
VCC Brands is a manufacturer of branded cannabis-infused
products. The company offers
cannabis-infused beverages, cookies, chocolates,
teas, honeys, cooking oils and tinctures.
Its products are available in dispensaries located
throughout California and Washington.
Vuber
Seattle, Washington
www.vubervaporizers.com
Vuber is a manufacturer of cannabis vaporizers.
The company designs and markets cannabis
vaporizers and vaporizer accessories that
are available in retail stores and dispensaries in
Washington and Oregon. The company’s products
are also available online.
Wana Brands
Boulder, Colorado
www.wanabrands.com
Wana Brands is a producer of cannabis-infused
products, including cannabis-infused candies
and capsules. Its products are available in dispensaries
in Colorado, Oregon and Nevada.
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CHAPTER VIII Top 100 Private Cannabis Companies 2018
Web Joint
Los Angeles, California
www.webjoint.com
Web Joint is an online technology softwareas-a-service
company. The company provides
software for dispensaries to manage point-ofsale
transactions, online ordering and delivery
management. The software integrates with a
dispensary’s website for a white-labeled software
solution.
Weedguide
San Diego, California
www.weedguide.com
Weedguide is a digital media company that
operates a cannabis-centric search engine and
an informational website about recreational and
medical cannabis. The site offers a collection of
articles, videos, products, dispensary locations,
recipes and strain information.
Weedmaps
Orange County, California
www.weedmaps.com
Weedmaps is a digital media company that
operates an online networking and content
directory site. The company allows users to
locate and view reviews of local cannabis dispensaries,
as well as user-generated strain reviews.
Wellness
Connection of Maine
Portland, Maine
www.mainewellness.org
Wellness Connection of Maine is an operator
of medical cannabis dispensaries in Maine. The
company offers a selection of cannabis flower,
concentrates, edibles and recipes.
© 2017 Ackrell Capital, LLC | Member FINRA / SIPC 163

CHAPTER IX
Cannabis Industry Risk Factors
Companies in the cannabis industry are subject to many risks. The realization of one or more of these
risks could have a material adverse effect on the business and results of operations of a company and
on its lenders, investors and principals. The following discussion highlights some, but not all, of these
risks.
Risks Related to U.S. Federal Law
• The manufacture, distribution, dispensing and possession of cannabis are strictly controlled
under the Controlled Substances Act (CSA), irrespective of whether such activities comply with
applicable state law. Financial transactions in connection with cannabis-related violations of
the CSA may violate other federal laws. Individuals and businesses—including the principals,
employees, directors, agents, lenders and investors of such businesses—that violate the CSA or
such other laws are subject to fines, asset seizure and imprisonment under federal law.
• Federal statutes and policies that currently restrict or deprioritize enforcement of certain CSA
violations related to cannabis are subject to expiration, rescission and other changes. There can
be no assurance that in the future the federal government will not strictly and aggressively enforce
cannabis-related CSA provisions.
• If CSA controls applicable to cannabis are relaxed or repealed in the future, other federal laws
and regulations governing the production, distribution and marketing of products for human
consumption, such as the Federal Food, Drug, and Cosmetic Act, may be more strictly enforced
by the federal government in relation to the cannabis industry.
• CSA controls and federal enforcement priorities applicable to cannabis both preclude interstate
commerce in cannabis and cannabis products. As a result, it can be costly or impractical for
companies in the cannabis industry to operate in multiple states and to gain economies of scale
through centralized operations.
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• Federal income tax law precludes a business that “consists of trafficking in” cannabis or cannabis
products from deducting certain operating expenses in determining its federal income tax. As a
result, businesses in the cannabis industry may have effective tax rates significantly higher than
other businesses subject to federal income tax, may owe tax on taxable income that is not actual
economic income generated by the business and may have tax liabilities in amounts that exceed
cash reserves.
• Because of CSA controls on cannabis and federal laws applicable to banks and other financial
institutions, companies in the cannabis industry may not be able to open or maintain bank
accounts or access products and services of traditional financial institutions, such as credit facilities,
payment processing and insurance coverage. A lack of access to banking and other traditional
financial products and services increases the time, effort and expense related to ongoing
operations and increases risks associated with cash transactions and the use of alternative products
and services.
• Trademarks used by companies to identify, distinguish or indicate the source of cannabis or
related products or services that are illegal under federal law are not eligible for registration under
federal trademark law, which is generally recognized as the most comprehensive trademark protection
available in the United States. Alternative means of protecting such trademarks may not
be available or may provide protections inferior to the protection provided by federal registration.
• Protections afforded under federal bankruptcy law generally are not available to companies whose
assets consist of federally illegal cannabis products or proceeds therefrom or to the creditors of
such companies.
• The federal government may pursue legal action against a state related to the state’s cannabis
laws, which may result in significant changes to the state’s legal landscape as it relates to cannabis
and may materially and adversely affect cannabis businesses in the state.
• Cannabis companies outside the United States whose business plans anticipate eventual access
to U.S. markets face uncertainty as to the timing or nature of changes in federal law that would
allow importation of cannabis products into the country.
Risks Related to U.S. State and Local Laws
• State laws and regulations that legalize or decriminalize cannabis and related activities are relatively
new and may change significantly or be reversed. The extent and nature of any such changes
are not foreseeable and may force cannabis companies to materially alter their business models,
suffer material losses or cease operations entirely.
• State and local laws may limit the number of cannabis businesses in the state or in a particular
locality, restrict the nature of such businesses (for example, by prohibiting for-profit cannabis
businesses) or place restrictions on the persons permitted to own or operate such businesses.
• Many state and local jurisdictions support legalizing or decriminalizing cannabis activities primarily
for the potential to generate tax revenue, and there is significant public pressure to impose
a heavy tax burden on those participating in the cannabis industry. State and local governments
may impose significant taxes on commercial cannabis activity and may do so unpredictably.
166 © 2017 Ackrell Capital, LLC | Member FINRA / SIPC
CHAPTER IX
Cannabis Industry Risk Factors
• There is currently a lack of broad interstate reciprocity with respect to cannabis laws.
• Even in states where cannabis is legal under state law, local jurisdictions may impose bans or
restrictions that materially interfere with or effectively prevent the operation of cannabis businesses
within their boundaries.
Risks Related to the Manufacture and Sale of Cannabis Products
• Cannabis companies are exposed to various product liability claims associated with human consumption
of cannabis products, including claims that products cause injury, illness, possible side
effects or interactions with other substances, or that products include inadequate instructions for
use or warnings concerning health risks.
• Cannabis companies may be subject to product recalls for a variety of reasons, including product
defects, such as contamination. Such recalls may result in financial burdens and reputational
harm and may subject cannabis companies to increased regulatory scrutiny.
• Consumer perception of cannabis products can be significantly influenced by scientific research
or findings, regulatory investigations, litigation, media attention and other publicity regarding
the consumption of cannabis. Any unfavorable developments in these areas could have a material
adverse effect on the demand for cannabis products in general or on the products or prospects of
a particular company.
Risks Related to Early-Stage Cannabis Companies
• Most cannabis companies are in early stages of development and have limited operational history,
so it is difficult to accurately predict and forecast their business operations. Many cannabis
companies will fail.
• The success of many early-stage cannabis companies is premised on receiving and maintaining
the licenses, permits and regulatory approvals required for their proposed cannabis activities.
Many of such companies will not receive or maintain such licenses, permits and approvals or may
be able to do so only at significant expense.
• Cannabis companies’ access to the capital required to grow and to finance ongoing operations
involves challenges particular to the industry’s uncertain and rapidly evolving legal landscape.
Many early-stage companies in the cannabis industry will not be able to obtain the requisite
capital or will run out of capital prior to reaching profitability.
• Early-stage cannabis companies may experience unexpected problems in the areas of product
development and quality, manufacturing, marketing and general management, which, in some
cases, cannot be adequately solved. Companies may also be subject to product pricing and cost
pressures and to claims of intellectual property infringement.
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Other Risks to Companies in the Cannabis Industry
• The cannabis industry is extremely competitive in most segments, with certain companies having
unique competitive advantages such as greater capital resources, first-mover advantage, more
scalable business models and greater brand recognition.
• To date, the research conducted on cannabinoid-derived pharmaceuticals and other cannabisbased
therapies is limited. There is no assurance that cannabinoid-derived pharmaceuticals or
other medi cal products will prove effective in treating medical conditions or achieve broad market
acceptance.
• Given the emerging nature of the cannabis industry, there is a scarcity of qualified personnel with
deep industry experience and significant competition for such qualified personnel. Many cannabis
companies may not be successful in attracting, training, integrating, motivating or retaining
qualified management teams and other personnel.
• Cannabis is an agricultural product. The occurrence of diseases, insects, pests, mold and other
infestations and severe adverse environmental conditions, such as fire, drought, hail, flood or
frost, is unpredictable, may have a potentially devastating impact on agricultural production of
cannabis and may otherwise adversely affect the supply of cannabis.
• The cannabis industry is particularly vulnerable to rapidly changing technology, government
regu lation and relatively high risks of obsolescence caused by scientific and technological
advances. The success of cannabis companies will depend in part on their ability to anticipate
market, legal, technological and other trends in the industry. Many cannabis companies will fail
to accurately identify or predict industry trends.
• Cannabis laws and regulations in jurisdictions outside the United States vary widely and, in
some cases, are as complex, contradictory and rapidly changing as those within the United States.
Cannabis companies operating outside the country’s borders are subject to risks related to the
unsettled legal environment applicable to cannabis.
• Due to federal controls on cannabis within the United States and similar restrictions in many
jurisdictions outside the country, there is a significant black market for cannabis products.
Government-regulated cannabis businesses face competition from black market partici pants and
are subject to different market forces than those of the black market.
168 © 2017 Ackrell Capital, LLC | Member FINRA / SIPC
CHAPTER X
Glossary of Terms
Ackrell Capital, LLC a leading independent investment bank focused on the cannabis industry
ACMPR Canada’s Access to Cannabis for Medical Purposes Regulations
Aeroponics a method of growing plants whereby the roots hang suspended in a nutritional aerosol
solution
Bankruptcy Code Bankruptcy Reform Act of 1978
BHO Butane hash oil. See Hash oil
Bong a device used to smoke cannabis flower via a water chamber through which the smoke passes
prior to inhalation; commonly made of glass or plastic
BSA Bank Secrecy Act
Bud a slang term for cannabis flower
Cannabichromene (CBC) a nonpsychoactive cannabinoid believed to have several medicinal benefits,
including analgesic, antibacterial, anticancer, antidepressant, antifungal, anti-inflammatory and
anti-insomnia
Cannabidiol (CBD) a nonpsychoactive cannabinoid believed to have wide-ranging medicinal benefits
and therapeutic applications; the second most abundant cannabinoid in cannabis
Cannabidiolic acid (CBDA) a nonpsychoactive cannabinoid believed to have several medicinal benefits,
including anticancer, antiemetic and anti-inflammatory; the precursor to cannabidiol (CBD)
Cannabigerol (CBG) a nonpsychoactive cannabinoid believed to have several medicinal benefits and
therapeutic applications; may partially counteract the psychoactive effect of THC and decrease
anxiety and muscle tension
Cannabigerolic acid (CBGA) a nonpsychoactive cannabinoid that is a precursor to all other
cannabinoids, including THC, CBD, CBC and CBG
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Cannabinoid a class of chemical compounds present in cannabis that act on cannabinoid receptors in
cells in the human nervous and immune systems
Cannabinol (CBN) a cannabinoid derived from THC degradation; shown to produce some psychoactive
effects and believed to have several medicinal benefits, including analgesic, antibacterial,
anticonvulsive, anti-inflammatory and anti-insomnia
Cannabis a genus of flowering plant consumed for therapeutic, medicinal, social or spiritual purposes
and used to produce goods such as rope, paper, clothing and soap; includes three principal cannabis
species: Cannabis sativa, Cannabis indica and Cannabis ruderalis
CBC See Cannabichromene
CBD See Cannabidiol
CBDA See Cannabidiolic acid
CBG See Cannabigerol
CBGA See Cannabigerolic acid
CBN See Cannabinol
CDSA Canada’s Controlled Drugs and Substances Act
Chemovar a plant variety characterized by its chemical content
Clone an asexually reproduced cannabis plant genetically identical to the plant from which it was
produced
CND Commission on Narcotic Drugs, a subsidiary body of the United Nation’s ECOSOC that
assists the ECOSOC in supervising the application of international drug control treaties
Cole Memo a memorandum published by the DOJ that provides guidance to DOJ attorneys and
federal law enforcement about prosecuting cannabis-related federal offenses
Concentrates a category of consumer cannabis products; any number of concentrated forms of the
active compounds in cannabis; typically an oil or waxlike substance
Conventions three international treaties adopted through the United Nations between 1961 and
1988 that address international regulation of cannabis, cannabis derivatives and many other narcotic,
psychotropic and similar substances (The Single Convention on Narcotic Drugs of 1961; The
Convention on Psychotropic Substances of 1971; and The United Nations Convention Against
Illicit Traffic in Narcotic Drugs and Psychotropic Substances of 1988)
Crumble a form of wax concentrate
CSA Controlled Substances Act
CSE Canadian Securities Exchange
Curing a phase of the cannabis cultivation process during which dried cannabis flower undergoes
controlled fermentation to develop the flower’s aroma, taste and cannabinoid composition
Dab a potent concentrated form of the psychoactive cannabinoid THC
170 © 2017 Ackrell Capital, LLC | Member FINRA / SIPC
CHAPTER X
Glossary of Terms
DEA U.S. Drug Enforcement Agency, an agency of the U.S. Department of Justice
Delta-9-Tetrahydrocannabinolic acid (THCA) a nonpsychoactive cannabinoid found abundantly in
raw flower; precursor to THC; decarboxylates into THC through the application of intense heat
DHHS U.S. Department of Health and Human Services
DOJ U.S. Department of Justice
DOT U.S. Department of the Treasury
Dronabinol a form of chemically synthesized THC included in certain FDA-approved pharmaceuticals;
a Schedule II or Schedule III controlled substance under the CSA, depending on its
preparation
Drying a part of the harvesting phase of cannabis cultivation during which plants are dried; typically
occurs at room temperature in a dark space
ECDD Expert Committee on Drug Dependence; a committee of the World Health Organization
(WHO) tasked with making drug control recommendations to the CND on behalf of the WHO
ECOSOC Economic and Social Council, one of the six main organs of the United Nations established
under the United Nations charter in 1945
Edible a food- or drink-based infused product intended for oral consumption; commonly baked
goods, flavored drinks or candies
Endocannabinoid cannabinoids created naturally by the human body
Exchange Act Securities Exchange Act of 1934
Extraction a process for extracting active compounds from the cannabis plant; extraction techniques
fall into two general categories, solvent-based extraction and solvent-free extraction
Farm Bill Agricultural Act of 2014
FDA U.S. Food and Drug Administration, an agency of the DHHS
FD&C Act Federal Food, Drug, and Cosmetic Act
FinCEN Financial Crimes Enforcement Network, a bureau of the DOT
FinCEN Memo a memorandum published by FinCEN outlining how banks and other financial
institutions can, consistent with their BSA obligations, provide services to marijuana-related
businesses
Flower the flower of the cannabis plant, also known as “bud”; the highest concentration of active
compounds present in cannabis are found in the flowers of unpollinated female cannabis plants;
smoking flower is the most popular method of cannabis consumption
Ganja a popular name for cannabis
Germination the process by which a dormant seed begins to sprout and grow into a seedling
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Cannabis Investment Report | December 2017
Hash oil a concentrate prepared through extraction using a butane solvent; also known as hashish oil,
butane hash or honey oil (BHO), cannabis oil or liquid cannabis
Hashish (hash) a concentrate made up of compressed or purified trichomes
Hemp the fiber produced from the stalks of the cannabis plant, which can be used to produce goods
such as rope, paper and clothing; also refers to varieties of cannabis cultivated to produce industrial
hemp products
HID lamp a high-intensity discharge lamp; a category of lamp used for indoor cannabis cultivation
Hit a slang term for one inhalation from a cannabis smoking device or vaporizer
Homeostasis a process by which biological systems tend to maintain internal stability, or balance
Human endocannabinoid system a system of nervous and immune system receptors involved in
regulating health and physiological functions within the human body
Hybrid a cannabis variety that is a genetic cross of two or more different cannabis species or varieties
produced through sexual reproduction
Hydroponics a method of growing plants whereby the roots grow in a nutrient-rich sand, gravel or
liquid growth medium
Indica one of three principal cannabis species; indica plants tend to be short and bushy
Infused products a category of consumer cannabis products; ingestible products that have been
infused with cannabinoids and other active compounds from the cannabis plant
IRC Internal Revenue Code
IRS Internal Revenue Service
Joint a hand-rolled cannabis cigarette
Kief a concentrate composed of trichomes that are separated from the cannabis flower by sifting the
flower with specialized filtering screens
LED a light-emitting diode; a category of lamp used for indoor cannabis cultivation
Marijuana a slang term for dried cannabis flower; a legal term for certain parts and derivatives of the
cannabis plant defined in the CSA
MAUCRSA California’s Medicinal and Adult Use Cannabis Regulation and Safety Act
Nabilone a form of chemically synthesized cannabinoid similar to THC included in an
FDA-approved pharmaceutical; a Schedule II controlled substance under the CSA
Nasdaq Nasdaq Stock Market
NDA New Drug Application; an application submitted by a drug manufacturer to the FDA for
approval of a drug
NYSE New York Stock Exchange
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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
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Cannabis Investment Report | December 2017
UN United Nations
UNGASS United Nations General Assembly Special Session
UNODC United Nations Office on Drugs and Crime
USDA U.S. Department of Agriculture
USPTO U.S. Patent and Trademark Office
Vaporizer a device that heats cannabis flower or concentrate to a temperature at which its active
compounds boil and can be inhaled as vapor
Variety a plant grouping within a single botanical taxon of the lowest known rank (species) with
defining characteristics that distinguish it from any other plant grouping within such rank
Wax a category of cannabis concentrates; refers to the softer, opaque oils that have lost their
transparency after extraction
Weed a slang term for dried cannabis flower
WHO World Health Organization, an autonomous intergovernmental organization that collaborates
with the United Nations and other organizations on global health matters
174 © 2017 Ackrell Capital, LLC | Member FINRA / SIPC
Cannabis Investment Report | December 2017
Disclosures, Disclaimers, Sources and Use
This report has been compiled for informational purposes only and is not a research report. This report is not
and should not be construed as an offer to sell securities or a solicitation of an offer to buy securities. Readers
should not rely on this report in making any investment decision. Readers should not assume that this report
is complete and should conduct their own analysis and investigation of the cannabis industry and consult with
their own financial, legal, tax and other business advisors before making any investment decision related to the
cannabis industry or any company participating therein.
The information in this report is of a general nature, and this report should not be construed, relied upon or
acted upon as investment, legal, medical, health or tax advice. Readers should obtain advice applying to their circumstances
from a qualified attorney or other investment, medical or tax professional before acting or not acting.
Ackrell Capital, LLC and its affiliates and their respective directors, officers, employees, agents, representatives,
consultants, attorneys, independent contractors and controlling persons (Ackrell Capital, we, us, our) expressly
disclaim liability in respect of any action taken or not taken based on information in this report.
Any tax-related information contained in this report is not intended as a thoroughgoing analysis and is not
to be relied on for any purpose. It may fail to analyze various facts and laws important to any complete, particularized
analysis. Readers are urged to consult with their own tax advisors to determine the tax consequences of
any planned course of action or nonaction.
None of the companies referenced in the report, including those companies referenced in the Top 100 Private
Cannabis Companies 2018 and The Green Field 2018, have seen this report prior to publication; the contents
of this report (including a company’s inclusion in the Top 100 Private Cannabis Companies 2018 or The Green
Field 2018) are not endorsed by any company referenced herein. Some companies referenced in this report may
object to being referenced in a document discussing the cannabis industry. Any display of any company’s logo
included in this report is intended solely as an efficient method of identifying the company so referenced.
Ackrell Capital has made investments in and conducted investment banking and other services for companies
referenced in this report and may do so in the future. Readers should be aware that Ackrell Capital may have
a conflict of interest that could affect the objectivity of this report.
Ackrell Capital does not make any representation or warranty as to the accuracy or completeness of this
report. This report relies on and includes information, estimates and opinions from a wide range of sources, both
public and private, including surveys, interviews, market databases, market research reports and Ackrell Capital’s
own opinions and estimates. The information, estimates and opinions relied on by or included in this report
have been obtained from sources we believe to be reliable. Any statement in this report that is not a statement of
historical fact (which may be indicated by words such as “believe,” “expect,” “anticipate,” “estimate,” “project,”
“predict” and similar expressions) should be considered the opinion or estimate of Ackrell Capital or others.
A number of factors could cause actual results or events to differ materially from those indicated by such opinions
and estimates. The opinions and estimates included herein or relied on hereby are subject to change without
notice, and we assume no obligation to update this report; readers are cautioned to not place undue reliance on
such opinions or estimates.
While this report includes information developed by others, our original contributions are protected by
copyright. We are not looking to prevent others from using our work, however. Others are free to copy and distribute
this report or portions of it, so long as they credit Ackrell Capital, LLC. More specifically, we are using
the same license used by Wikipedia. Thus, this report is licensed under the Creative Commons Attribution
ShareAlike 3.0 License (CC-BY-SA). Others are free to use, re-use, share, reproduce and make derivative works
of the report, provided they comply with the requirements of the CC-BY-SA, which can be found at: https://
creativecommons.org/licenses/by-sa/3.0.
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Cannabis Investment Report | December 2017
Ackrell Capital Cannabis Team
Mike Ackrell
Founder
mackrell@ackrell.com
Mike Ackrell founded Ackrell Capital in 2003. Previously, Mr. Ackrell was the Head of
ABN AMRO’s U.S. Technology Investment Banking Group and the Head of Investment
Banking at WR Hambrecht+Co. He also was a Senior Vice President in the
Technology Investment Banking Group of Donaldson, Lufkin & Jenrette, where he
began his investment banking career in 1988. Mr. Ackrell has completed more than
150 financing transactions, including more than 50 initial public offerings, and more
than 100 M&A transactions, totaling more than $15 billion in value. He serves on the
Board of Directors of a number of companies, including American Giant, Scrubbed
and Vator.tv. Mr. Ackrell holds a B.S. in Economics, summa cum laude, with majors in
Finance and Accounting, from the Wharton School of the University of Pennsylvania.
Tim Coxon
General Counsel
tcoxon@ackrell.com
Tim Coxon joined Ackrell Capital in 2017 after serving as the firm’s legal counsel for
more than five years. Previously, Mr. Coxon was a corporate finance attorney in Silicon
Valley focused on venture capital fund formation, early stage company financings,
mergers and acquisitions and related areas of tax and securities law. He has advised
dozens of VC firms on fund and management-level structuring and portfolio company
investment transactions, and has advised private companies in M&A transactions valued
at more than $1.5 billion. Mr. Coxon also has worked as a consultant performing
financial and economic analysis for use in corporate litigation and regulatory matters,
and taught college level mathematics for more than 13 years, including 7 years
as an adjunct statistics professor for the M.B.A. program at Santa Clara University.
Mr. Coxon holds a J.D. from the Santa Clara University School of Law, an M.A. in
Mathematics from San Francisco State University, and a B.A. in Mathematics from the
University of Texas at Austin.
Bryan Castillo
Partner
bcastillo@ackrell.com
Jeff Mathews
Partner
jmathews@ackrell.com
Bryan Castillo joined Ackrell Capital in 2015. Previously, Mr. Castillo served as an
adviser to governments on economic and foreign policy. He has more than 10 years of
investment banking experience focused primarily on cross-border transactions spanning
Asia, Europe and the Middle East. Mr. Castillo has experience in a number of
industries, including agriculture, cleantech, consumer, energy, media, real estate and
technology. He has advised on more than 50 financing transactions, primarily with
state-owned enterprises and private companies. Mr. Castillo works closely with several
family offices on private equity and venture capital investments. Mr. Castillo holds a
B.S. in Economics from the Pennsylvania State University.
Jeff Mathews joined Ackrell Capital in 2015. Previously, Mr. Mathews was a Director
with Seven Hills Group, a boutique investment bank focused on middle-market
technology companies. He has more than 15 years of investment banking experience
and was also an Associate in the Technology Investment Banking Groups at Deutsche
Bank and Lehman Brothers. He has advised on a broad range of financings and M&A
transactions across a variety of technology industries totaling more than $10 billion in
value. Mr. Mathews holds a B.A. in Economics from the University of Chicago.
176 © 2017 Ackrell Capital, LLC | Member FINRA / SIPC
ACKRELL CAPITAL
The green field 2018
Cultivation
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Production Equipment
and Supplies
Production and Testing
Services
Dispensaries
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E-Commerce
Distribution
Services
ACKRELL CAPITAL
The green field 2018
Consumer Products
Flower and Concentrates
Infused Products
Vaporizers and
Accessories
Pharmaceuticals
Business Solutions
Digital Media
Business Software Business Services Online Content Online Directories
and Networking
Inclusion in The Green Field 2018 does not represent an investment recommendation or an endorsement of any particular company. Our intent in providing this industry landscape is to provide a graphical representation
of the cannabis industry, its segments and participants. This landscape is necessarily subjective. Numerous companies operate in multiple segments. None of the companies referenced in The Green Field 2018 have
seen The Green Field 2018 prior to publication; therefore, there is no endorsement of The Green Field 2018 or the inclusion in The Green Field 2018 by any company referenced. In addition, any display of any company’s
logo is meant solely as an efficient communications method of identifying the company so referenced. For additional disclosures and disclaimers, see page 175.
ACKRELL CAPITAL
TOP 100 PRIVATE CANNABIS COMPANIES 2018
AEssenseGrows Défoncé Jetty Extracts River Collective
Ample Organics Dixie Elixirs Kikoko Rubicon Organics
Apeks Supercritical Dosist KIVA Confections S2S Development
The Apothecarium Eaze Solutions Korova SC Laboratories
Auntie Dolores Eel River Organics LeafLink Scrubbed
Baker Technologies Elemental Wellness Leafly SPARC
BAS Research Euflora Level Blends Spectrum King
BDS Analytics Evolve Therapeutics LivWell Enlightened Health Steep Hill Labs
Beboe Evoxe Laboratories Lunchbox Alchemy StickyGuide
Berkeley Patients Group Flow Kana Mary's Medicinals Strainz
BioTrackTHC Flowhub Meadow Teewinot Life Sciences
Bloom Farms FunkSac Merry Jane Tikun Olam
Brewbudz Garden State Dispensary MiNDFUL Treez
Bud and Bloom GFarmaLabs MJ Freeway Trellis
Calyx Brands Gold Coast Extracts MJardin Trulieve
Cannabis Reports Green Dot Labs MM Acquisition Co. Utopia Farms
CannaCraft Green Flower Media Native Roots VapeWorld
CannaKorp Green Rush New Vansterdam Vapexhale
Colorado Harvest Company The Green Solution Northwest Cannabis Solutions VCC Brands
Columbia Care Harborside Health Center NWT Holdings (Firefly) Vuber
Confident Cannabis Harvest Organa Brands Wana Brands
Cultivation Technologies Headset PAX Labs Web Joint
Cura Cannabis Solutions HelloMD PharmaCielo Weedguide
CW Analytical Humboldt Legends PRØHBTD Media Weedmaps
Deep Cell Incense Specialties Qind Wellness Connection of Maine
None of the companies referenced in the report, including those companies referenced in the Top 100 Private Cannabis Companies 2018 and The Green Field 2018, have seen this report prior to publication; therefore, there
is no endorsement of the contents of this report or the inclusion in the Top 100 Private Cannabis Companies 2018 or The Green Field 2018 by any company referenced. In addition, any display of any company’s logo included
in this report is meant solely as an efficient communications method of identifying the company so referenced. Inclusion in the Top 100 Private Cannabis Companies 2018 and the Green Field 2018 does not represent an