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ACKRELL CAPITAL
Cannabis Investment Report | December 2017

Methodology and Estimates: Industry Comparisons
To evaluate our methodology and results, we compare estimated values from our model with values for the same parameters in markets for certain other stimulants and pharmaceuticals. We believe that this comparison is useful because cannabis is used recreationally in much the same way alcohol, coffee and tobacco are used, and because cannabis may be an alternative to pharmaceuticals currently used to treat a range of medical conditions. The following table compares the estimated penetration rate, average monthly consumer spending and U.S. retail market size for a number of common stimulants and pharmaceutical categories.

Comparison between Cannabis and Common Stimulants and Substances

[Table Columns: Alcohol | Coffee | Tobacco | Painkillers | Anti-depressants | Cannabis (Future)]

Primary Usage
Alcohol: Recreational
Coffee: Recreational
Tobacco: Recreational
Painkillers: Medicinal
Anti-depressants: Medicinal
Cannabis (Future): Recreational / Medicinal

Adult Penetration %
Alcohol: 50%
Coffee: 50%
Tobacco: 17%
Painkillers: 40%
Anti-depressants: 25%
Cannabis (Future): 20%

Monthly Consumer Spending
Alcohol: $45 to $200
Coffee: $80 to $100
Tobacco: $40 to $80
Painkillers: $50 to $200
Anti-depressants: $50 to $100
Cannabis (Future): $50 to $500

U.S. Retail Market Size
Alcohol: $200B
Coffee: $35B
Tobacco: $100B
Painkillers: $300B
Anti-depressants: $60B
Cannabis (Future): $100B

Source: Ackrell Capital

This comparison demonstrates that our U.S. legalized cannabis market estimates are in line with U.S. retail markets for alcohol, coffee, tobacco, and pharmaceutical painkillers and antidepressants.

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© 2017 Ackrell Capital, LLC | Member FINRA / SIPC

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