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ACKRELL
CAPITAL
CHAPTER VII Capital Markets for Cannabis Companies

the NYSE are two of the largest and most recognized stock exchanges in the world, with stringent
listing, trading and corporate governance requirements. Conversely, the OTC has much less stringent
requirements; as a result, most publicly traded cannabis-related companies are traded on the OTC.

In Canada, cannabis-related companies are traded on the Toronto Stock Exchange (TSX), the TSX
Venture Exchange (TSXV), which is an affiliate of the TSX, and the Canadian Securities Exchange
(CSE). The TSX is one of the world’s largest stock exchanges and, similar to Nasdaq and the NYSE,
has stringent listing, trading and corporate governance requirements. The TSXV focuses on companies
with small market capitalization and has less stringent listing requirements than the TSX. The CSE is
focused on micro capitalization and emerging growth companies, and it has the least stringent listing
requirements of the primary Canadian exchanges. In order to be listed on either the TSX or the TSXV,
a company is required to be in compliance with Canada’s Access to Cannabis for Medical Purposes
Regulations (ACMPR) and all applicable laws in jurisdictions within which it operates. (Operations
of listed companies are restricted in jurisdictions, such as the United States, where cannabis is federally
prohibited.) Unlike the TSX and TSXV, the CSE has allowed companies listed on its exchange to invest
in, acquire and otherwise operate cannabis-related businesses in the United States.

The following table provides a summary of the cannabis-related companies traded on U.S., Cana-
dian and Australian stock markets. As stated previously, many cannabis-related companies are traded
on more than one market to attract additional investors and facilitate trading in multiple jurisdictions.
For example, most companies traded on the Canadian markets are also traded on the OTC.

Summary of Publicly Traded Cannabis-Related Companies

(As of November 30, 2017)
Average ($U.S. millions)
Number of
Companies
Market
Value
Enterprise
Value
Cash
Debt
LTM
Revenue
LTM
EBITDA

Nasdaq 4 $1,033.6 $884.5 $153.6 $4.5 $44.0 –$81.1
NYSE 1 63.5 41.3 22.2 0.0 4.6 –1.2
NYSE American 2 152.1 145.7 7.8 1.4 7.3 –6.5
OTC 212 46.3 65.5 5.7 25.0 14.0 0.2
United States 219 $65.5 $81.2 $8.5 $24.3 $14.5 –$1.4

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

Australian Securities Exchange (ASX) 14 $85.3 $80.1 $5.9 $0.7 $0.9 –$2.1
Australia 14 $85.3 $80.1 $5.9 $0.7 $0.9 –$2.1

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.

© 2017 Ackrell Capital, LLC | Member FINRA / SIPC 119

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