The Canadian Cannabis Story

A Generational Investment Opportunity THE CANADIAN CANNABIS STORY

JOIN THE CONVERSATION / Echelon Wealth Partners

echelonpartners.com TABLE OF CONTENTS

3 The Canadian Cannabis Story: A Generational Investment Opportunity

4 Cannabis: A Brief History

5 The Many Forms of Cannabis 5 An Increase in Legal Cannabis-based Products 5 Medical Use 8 Cannabis as an Opiod Alternative

11 Cannabis and Canada: A Strong Growth Story

14 A Global Cannabis Boom: The Next Stage

17 Canadian Cannabis Stocks - An Investment Opportunity to Consider

19 Endnotes

echelonpartners.com 2 The Canadian Cannabis Story: A Generational Investment Opportunity

THE CANADIAN CANNABIS STORY:

A GENERATIONAL INVESTMENT OPPORTUNITY

By Echelon Wealth Partners

The Canadian Cannabis Story aims to provide readers with a comprehensive look at the cannabis market in Canada through its history, growth, and various production sectors to illuminate the investment opportunity this sector will afford in a rapidly growing global market.

The increasing trend in cannabis decriminalization and legalization, both in North America and around the world, has awakened the interest of the investment community. The unique and potential medicinal properties of cannabis and its versatility for other commercial uses are considered the harbingers of an investment with significant growth potential.

Canada legalized marijuana for recreational use on October 17, 2018

echelonpartners.com 3 The Canadian Cannabis Story: A Generational Investment Opportunity

CANNABIS

A Brief History

Marijuana is produced from the flower and leaves of cannabis plants, which grow naturally in humid temperate conditions on all continents.1 The two most important varieties of the cannabis plant are sativa and indica, with hemp being a specific species of the sativa plant.

The first documented use of cannabis as a medicine and textile fibre dates back to China in 4000 B.C.2 The use of cannabis as a recreational drug (both in its herbal form, known as marijuana, and in its resin form, known as hashish) dates back to Persia in the seventh century.3 Use of cannabis for the production of textiles, pharmaceuticals, oil, and paper remained popular in the United States and Europe up to the 19th century. A prohibitionist trend began in the 20th century as more countries increasingly began to view cannabis use as a threat to social cohesion and some economic sectors. A ban in Greece in 1890 was followed by others in France (1916), Canada (1923), Great Britain (1928), and Australia (1938). Various U.S. states made recreational use illegal between 1915 and 1930 (among them Massachusetts in 1911 and California in 1915), with a federal ban eventually coming into force in 1937.

Today, Canada’s licensed cannabis producers grow cannabis in indoor facilities, greenhouses and recently, even outdoors.4 The key difference between the two relates to climate control and the associated costs. Indoor facilities typically allow the producer to exercise more control over the growing conditions, but this often (though not always) translates into higher costs. Greenhouses have the benefit of lower costs for lighting but are then more dependent on local weather conditions, and the amount of sunlight in particular. There is still much debate as to which method is more profitable, but we have noticed that several cannabis companies that began their lives as indoor producers have expanded into greenhouse production.5

echelonpartners.com 4 The Canadian Cannabis Story: A Generational Investment Opportunity

• Delta-9 Tetrahydrocannabinol (THC), the legislation between 1999 and 2011. The move- psycho-active chemical in cannabis, may slow the ment continued to grow, gaining particular THE MANY FORMS OF CANNABIS progression of Alzheimer’s disease;13 momentum in the last five years. In 2012 Colorado and Washington both legalized recreational use, • Cannabis may ease the symptoms and pain followed by Alaska, Oregon, and Washington D.C. 14 An Increase in Legal Cannabis-based Products associated with arteriosclerosis; in 2013. A further seven states legalized recreational use between 2013 and 2017, in addition to • Cannabis reduces muscle spasms, including 11 states permitting medical cannabis during the Once cannabis has been grown and harvested, it can be sold as ‘dried diaphragm spasms;15 same period.21 cannabis’ that consumers can either smoke or vape. Alternatively, it can be further processed into cannabis extract that can be used as the primary • Cannabis reduces the side effects and improves As of June 30, 2018, over 330,758 Canadians had ingredient in making a host of other products. the effectiveness of Hepatitis-C treatment;16 registered with Health Canada as users of cannabis for medical purposes.21 That number has The industry is continuing to develop and commercialize more products that • THC and CBD can improve stomach function and grown dramatically over the past three years, and use cannabis as a major ingredient, with the federal government committed reduce the symptoms of Crohn’s disease;17 recent data suggests another 10,000+ new to broadening the field of legal products, including the addition of edibles patients are registering each month. (e.g., brownies, cookies, and gummies) and beverages within a year of the • Cannabis alleviates the pain and decreases the legalization of recreational use. inflammation associated with rheumatoid arthritis;18

• Cannabis may improve metabolic rate and insulin Medical Use levels, aiding fat loss;19

• Cannabis may reduce the symptoms of auto- The number one reason that physicians currently prescribe cannabis is for immune diseases.20 ppainain mmanagement.anagement.6 OtherOther mmajorajor uusesses iincludenclude mmanaginganaging nanauseausea ((e.g.,e.g., patientspatients uundergoingndergoing chemchemotherapy),otherapy), anoanorexia,rexia, and post-traumatpost-traumaticic strstressess By the 1970s, a movement to reintroduce cannabis disorder (PTSD). use for medical purposes, supported by patients and medical professionals, began to take hold in the TheThe ppopularityopularity of cannabcannabis-basedis-based ppharmaceuticalsharmaceuticals iinn the 119th9th anandd 220th0th U.S. In 1996 California was the first state to legalize ccenturiesenturies wwasas a rresultesult of ththee mmanyany mmedicaledical ppropertiesroperties aattributedttributed ttoo iit,t, medical cannabis as a painkiller for cancer and especiallyespecially as a remedy fforor paipain,n, insoinsomnia,mnia, anandd hheadaches.eadaches. The sstatustatus of AIDS. Alaska, Oregon, and Washington followed cannabiscannabis aass a SSchedulechedule I subsubstance,stance, whiwhichch iiss dedefinedfined as hhavingaving nnoo suit in 1998. A further 13 states enacted similar therapeutictherapeutic valvalueue aandnd hhavingaving a high ppotentialotential fforor aabuse,buse, by tthehe FFederalederal government in 1970, has severely limited scientific research efforts.7 Some studies have nevertheless indicated potential benefits through the years:

• Cannabis can treat glaucoma by lowering intra-ocular pressure;8

• Smoking cannabis may improve lung capacity and functioning;9

• Cannabis can help eliminate epileptic seizures;10

• CannabidiolCannabidiol (CBD(CBD),), aann acactivetive chchemicalemical iinn cacannabis,nnabis, mamayy sstoptop tthehe reproduction and spread of cancer cells;11

• Cannabis can be helpful in reducing the symptoms of anxiety;12

echelonpartners.com 5 The Canadian Cannabis Story: A Generational Investment Opportunity

• Cannabis reduces the side effects and improves As of June 30, 2018, over 330,758 Canadians had the effectiveness of Hepatitis-C treatment;16 registered with Health Canada as users of cannabis for medical purposes.21 That number has • THC and CBD can improve stomach function and grown dramatically over the past three years, and reduce the symptoms of Crohn’s disease;17 recent data suggests another 10,000+ new patients are registering each month. • Cannabis alleviates the pain and decreases the inflammation associated with rheumatoid arthritis;18

• Cannabis may improve metabolic rate and insulin levels, aiding fat loss;19

• Cannabis may reduce the symptoms of auto- immune diseases.20

By the 1970s, a movement to reintroduce cannabis use for medical purposes, supported by patients and medical professionals, began to take hold in the U.S. In 1996 California was the first state to legalize medical cannabis as a painkiller for cancer and AIDS. Alaska, Oregon, and Washington followed suit in 1998. A further 13 states enacted similar

IS THE ANNUAL COMPOUND GROWTH IN CANADIAN USERS OF MEDICAL MARIJUANA FROM 2014 TO 2018.

echelonpartners.com 6 The Canadian Cannabis Story: A Generational Investment Opportunity

CANADIAN MEDICAL CANNABIS TOTAL REGISTERED USERS

330,758

300,000 296,702 269,502

250,000 235,621

201,398 200,000 167,754

150,000 129,876

98,460 100,000 75,166

50,000 39,668 23,930 15,545 7,914

Q214 Q314 Q414 Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118 Q218

Source: Health Canada

While the number of patients registered with Health other words, the only legal way to use cannabis Canada is climbing quickly, only 10,433 healthcare was to smoke or vape it. This was likely, and practitioners have ever formally recommended that understandably, a deal breaker for many patients use cannabis.23 Under the pre-legalization physicians. In 2015, cannabis oil products regulations, only physicians, as well as nurse were legalized, and there are now a number practitioners operating in areas where supporting of products that allow patients to consume cannabis is permitted under their scope of practice, cannabis without having to smoke it. Oil products could formally recommend that patients use now represent more than 50% of all legal sales cannabis. According to the Canadian Medical volumes, so it looks like product availability is Association, there were over 83,000 physicians in improving in a way that should gain support Canada, as of January 2017.24 with healthcare practitioners.

So less than 13% of physicians in Canada had • Medical Research While the body of evidence formally recommended that their patients use supporting medical cannabis use is growing, cannabis (for the sake of simplicity, we have research into the potential uses and side effects excluded nurse practitioners from that estimate). of cannabis is quite limited relative to many Why is that? traditional therapeutic approaches. To some extent, this problem has been self-reinforcing. Research We believe there are two key reasons: product has been limited partly because cannabis was availability and research. generally illegal, and cannabis remained illegal in part because it was misunderstood due to a lack • Product Availability Until 2015, the only cannabis of research. We believe more research is coming, legally available for sale was in dried form. In but it will take time to complete and disseminate.

echelonpartners.com 7 The Canadian Cannabis Story: A Generational Investment Opportunity

Cannabis as an Opiod Alternative

There is growing recognition that traditional tools such as opioids, which include prescription pain relievers, heroin, and fentanyl have negative side effects that may outweigh their benefits. As noted by Health Canada, in describing what it has called the opioid crisis, “…problematic use may lead to a substance use disorder, overdose and death.”25

According to the Canadian Institute for Health Information, 21.5 million prescriptions for opioids were dispensed in 2016.26 Canada is the 2nd largest per capita consumer of opioids in the world, after the United States.27

Cannabis contains over 100 chemical compounds called cannabinoids. Each strain of cannabis plant has different levels of distinct cannabinoids. The two ingredients that people currently focus on with respect to cannabis are:

• THC (or delta-9-tetrahydrocannabinol) When people think of ‘the high’ associated with cannabis, this is the compound primarily responsible for it.

• CBD (or cannabidiol) CBD has potential medical uses, but it does not cause ‘the high’, and it may, in fact, help moderate ‘the high’ that THC can cause.

The human body has a network of cannabinoid receptors, collectively called the endocannabinoid system. When THC, CBD, and other cannabinoids come into contact with these receptors, chemical reactions occur that can influence many parts of the body, including the way our brains work, the way our nerves work, as well as metabolism, heart and immune system functions.

A large number of potential applications for medical marijuana are currently being investigated. For example, one company is working to develop a drug that uses CBD to control rare forms of epilepsy.

PRESCRIPTION PRACTICES AMONG CANADIAN PHYSICIANS

Chronic Pain 79% Neuropathic Pain 79% Cancer-Related Pain 69% Pallative 69% Nausea (ex-pregnancy related) 33% Anorexia 29% HIV/AIDS Pain 19% PTSD 12% Other 5% Multiple Scelrosis 5% Source: CanniMed Therapeutics

echelonpartners.com 8 The Canadian Cannabis Story: A Generational Investment Opportunity

WORLD MARIJUANA LAWS

Decriminalized and/or are tolerating personal possession

Legalized for medical use

Legalized cultivation and/or possession for personal use

US MARIJUANA LAWS

Recreational

Medical

Medical CBD* *extracted from the plant but does not have THC, the psychoactive part of medical marijuana.

echelonpartners.com 9 The Canadian Cannabis Story: A Generational Investment Opportunity

Source:“Recreational Marijuana - Insights and opportunities,” Deloitte Canada

The decriminalization and legalization tide has been abuse rates fell by 50% over the next decade.34 occurring on a global scale. Portugal decriminalized Furthermore, there is evidence that cannabis users recreational cannabis use in 2001, as did Chile in are also likely to use it as a substitute for alcohol 2005. Medical cannabis has been in use in the and tobacco.35 Netherlands since 2003 and Israel since 2007.28 In 2014 Uruguay became the first country to fully While the medical cannabis market potential is legalize the recreational and medical cannabis significant, the global size and growth of the trade, including its possession and sale and recreational market cannot be underestimated. possession. In 2016 Germany, Ireland, Australia, According to the United Nations Office on Drugs and and Jamaica all approved measures to introduce Crime (UNDOC), today there are approximately 183 medical cannabis.29 30 A legal action to decriminalize million regular cannabis users worldwide or 2.5% of recreational use was filed in South Africa in March the global population.36 About 18.9 million are located 2017.31 in the U.S. alone, while 52% of Americans aged 18 and over have smoked cannabis at least once.37 A main driver of the trend has been evidence that decriminalization and state oversight of the The market is expanding. In the U.S. there were 8.4 cannabis industry reduces drug-related crime million more regular users, almost double the 4.4 while generating tax revenues.32 Decriminalization million figure of 2007.38 Canada’s market is similarly could potentially also reduce the substantial costs dynamic, with the number of legal recreational users of policing. Marijuana arrests accounted for 58 per expected to rise to 3.8 million by 2021.39 With cent of all police-reported Controlled Drugs and popular opinion strongly in favour of legalization Substances Act offences in 2017.33 Moreover, there worldwide and an existing illegal market worth $150 is no convincing evidence of cannabis being a so- –200 billion, the stage is set for rapidly growing called gateway to other more harmful substances. legal cannabis sales. After Portugal’s 2001 decriminalization, substance

echelonpartners.com 10 The Canadian Cannabis Story: A Generational Investment Opportunity

CANNABIS & CANADA

A Strong Growth Story

At the time of the 1923 ban, cannabis consumption in Canada was negligible. Arrests remained low through to the 1950s but started to increase in the 1960s. The government responded to this increase by forming the Le Dain Commission of Inquiry into the Non-Medical Use of Drugs in 1969 to examine the issue. In 1972 the commission recommended the decriminalization of cannabis possession,40 although the findings were not acted upon at the time. However, medical cannabis was eventually permitted in 2001.41

The legalization of cannabis was one of the electoral promises of the federal Liberal Party in 2015. After winning the election, the Liberal government set up the Task Force on Cannabis Legalization and Regulation in June 2016. They released their report in December 2016 with 80 recommendations for the country’s legal cannabis regime, including a minimum purchase age of 18, packaging standards, regulation of retail sales, penalties against trafficking, mail-order delivery standards, decriminalization for minor offences, and implementing a system of licensed producers to grow cannabis.42 With public opinion strongly in favour, in April 2017 the government introduced Bill C-45, also known as the Cannabis Act, which provides federal guidelines for legal access to cannabis for non-medical purposes and establishes controls to regulate the production, distribution, and sale of cannabis.43 The government initially expected for recreational cannabis to be on sale nationwide by July 2018; however, various provinces asked for more time to organize their frameworks concerning distribution, sales, price, and legal age minima. Manitoba asked for a delay until July 2019.44 Ontario was on schedule to start sales in July 2018, exclusively through 150 stand-alone LCBO-run stores with a minimum buying age of 19, but when Doug Ford won the 2017 Ontario Provincial election he decided to change the system to a licensing system of privately-run stores similar to Alberta.45 46 47

Recreational Marijuana is now legal in Canada

Canada is now rapidly emerging as a powerhouse in cannabis production and exports. To understand its potential growth, one can look at the example of the U.S. The total cannabis market there was worth an estimated $7.2 billion in sales in 2016, a growth of 30% year-over-year (YOY).48 Colorado, in particular, saw sales top $750 million in H1 2017, up 25.7% over H1 2016.49 The Colorado cannabis industry is expected to surpass tobacco by 2020 as a source of tax revenue.50

echelonpartners.com 119 The Canadian Cannabis Story: A Generational Investment Opportunity

450,000 by 2024, or equal to a $1.2 billion market.60 61 By the end of Q2 2018, ConsideConsideringring Canada hahass sesevenven timtimeses tthehe populpopulationation ooff ColoColorado,rado, tthehe approximately 330,000 patients had signed up for medical cannabis usage, potentialpotential marketmarket is veryvery large.large. DeloitteDeloitte estimatesestimates thethe retailretail cannabiscannabis marketmarket more than an eightfold increase in just two years.62 At this rate, Health alone couldcould bbee woworthrth bbetweenetween $4$4.9–$8.7.9–$8.7 bbillion,illion, which iiss mmoreore tthanhan a Canada’s 2024 target will be reached in 2018.63 Recreational use is also in twenty-foldtwenty-fold increaseincrease fromfrom thethe $869$869 millionmillion inin salessales in 2016.2016.5511 5252 WhenWhen addingadding an uptrend. In 2018, an estimated 4.6 million individuals aged 15 and over aallll ancancillaryillary iindustries,ndustries, iincludingncluding secusecurity,rity, trtransportation,ansportation, ttestingesting llabs,abs, anandd will use cannabis at least once, according to the projection of Canada’s cultivationcultivation tthehe fifiguregure coucouldld rreacheach $22$22.6.6 bbillion,illion, ggeneratingenerating $$675675 mmillionillion iinn Parliamentary Budget Officer. By 2021, this level could rise to 5.2 million.64 combined federal and provincial sales taxes in the first year.53

RECREATIONAL AND MEDICAL MARIJUANA SALES IN COLORADO

2016 2015

$150

$125

$100

$75

$50 Jan Mar May Jul Sept Nov Feb Apr Jun Aug Oct Dec

Source: Denverite Analysis of Colorado Department of Revenue Data

There is an especially strong potential for cannabis as a substitute to opioid-based painkillers, which are consumed by more than 6 million Canadians. The pain relief qualities of cannabis could gradually displace opioids, which are known to cause significant dependency and side effects. Only 7,000 physicians, or just over 9% of all physicians in Canada, currently prescribe medical cannabis to patients.54 This is due mainly to the fact that until recently cannabis could only be smoked, and cannabis oils only became legal for prescription in June 2015 and available to purchase from January 55 56 Canada is now rapidly emerging as a powerhouse in cannabis production 2016. According to Health Canada, cannabis oil sales by volume grew 57 and exports. To understand its potential growth, one can look at the example by more than 871% between April 2016 and March 2017. of the U.S. The total cannabis market there was worth an estimated $7.2 billion in sales in 2016, a growth of 30% year-over-year (YOY).48 Colorado, Other signs of exponential demand growth are evident. In the month before in particular, saw sales top $750 million in H1 2017, up 25.7% over H1 2016.49 the October 2015 election, 30,357 people nationwide had prescriptions to 58 The Colorado cannabis industry is expected to surpass tobacco by 2020 use the drug. That number increased almost sevenfold to 201,398 by 59 as a source of tax revenue.50 June 2017. Projections show that medical cannabis users could grow to

echelonpartners.com 12 The Canadian Cannabis Story: A Generational Investment Opportunity

450,000 by 2024, or equal to a $1.2 billion market.60 61 By the end of Q2 2018, approximately 330,000 patients had signed up for medical cannabis usage, more than an eightfold increase in just two years.62 At this rate, Health Canada’s 2024 target will be reached in 2018.63 Recreational use is also in an uptrend. In 2018, an estimated 4.6 million individuals aged 15 and over will use cannabis at least once, according to the projection of Canada’s Parliamentary Budget Officer. By 2021, this level could rise to 5.2 million.64

CANADIAN MEDICAL CANNABIS TOTAL REGISTERED USERS

167,754 120,000

100,000 129,876

80,000 98,460

60,000 75,166

40,000 39,668 23,930 20,000 15,545

0 Dec 14 Mar 15 Jun 15 Sep 15 Dec 15 Mar 16 Jun 16 Sep 16 Dec 16 Mar 17 Source: Health Canada

RECREATIONAL MARIJUANA MARKET

There is an especially strong potential for cannabis as a substitute to opioid-based painkillers, which are consumed by more than 6 million Canadians. The pain relief qualities of cannabis could gradually displace opioids, which are known to cause significant dependency and side effects. Only 7,000 physicians, or just over 9% of all physicians in Canada, currently prescribe medical cannabis to patients.54 This is due mainly to the fact that Canadian The expansion Equity financing Canadian licensed Total market size Average Growth producers have capability of support is strong producers have a after ancillary in users is 29% until recently cannabis could only be smoked, and cannabis oils only became export potential to Canadian licensed and growing for jump on most market (Growers, per Q or 200% legal for prescription in June 2015 and available to purchase from January markets in the producers is 2 to licensed producers producers with infused, testing, annualized since 2016.55 56 According to Health Canada, cannabis oil sales by volume grew US, Germany & 12 times current in Canada. branding security) = $12.7 2014. Brazil. production. initiatives, such to $22.6B. 57 by more than 871% between April 2016 and March 2017. as Snoop Dog & The Tragically Hip. Other signs of exponential demand growth are evident. In the month before the October 2015 election, 30,357 people nationwide had prescriptions to use the drug.58 That number increased almost sevenfold to 201,398 by June 2017.59 Projections show that medical cannabis users could grow to

echelonpartners.com 13 The Canadian Cannabis Story: A Generational Investment Opportunity

A GLOBAL CANNABIS BOOM

The Next Stage

Canadian cannabis producers are well positioned for the international market. Of the 29 countries in the world that allow medical cannabis, only Canada and the Netherlands are exporters.65 Israel has recently indicated its intention to become an exporter in the near future.66 The export market is led by five major players: Cronos Group, Canopy Growth Corporation, Aphria, CanniMed and Tilray.67 While no cannabis export permits were issued in 2015, 43 were issued in 2016 and 75 as of July 20th of this year.68 Export growth has been significant. Figures for both dried cannabis and cannabis oil as of July 2017 are already comparable to those for the whole of 2016.

MEDICAL MARIJUANA MARKET

By the end of Q117, Medical and Health Canada 1 in 5 Canadians Cannabis can be Massive potential approximately clinical research forecasts 400,000 use opiods for used to treat for medical 200,000 patients for cannabis is medical users by pain management, patients in cannabis edibles, had signed up for set to open up 2024 equalling a cannabis can be palliative care as lozenges, dermal medical cannabis after legalization. $1.2B market. used as an well as those patches, sprays usage, an over 8x alternative pain suffering from & pills. expansion in just reliever. nausea, anorexia, 2 years. PTSD, and MS.

The first foreign market of interest is the U.S., where medical cannabis sales are projected to grow from $4.7 billion in 2016 to $13.3 billion in 2020. Recreational sales are expected to rise from $2.6 billion in 2016 to $11.2 billion by 2020, an increase of over 300%. These spending estimates concern the legal market, which is expected to absorb part of the existing spending in the illegal cannabis market (worth $46.4 billion in 2016).69 By 2021, the illegal cannabis market is estimated to shrink to 67% of the total, from 87% in 2016.70

echelonpartners.com 14 The Canadian Cannabis Story: A Generational Investment Opportunity

CANADIAN CANNABIS EXPORTS 2015-2017 YTD

120 Cannabis Oil 100.8 100 94.7 Dried Cannabis

60 44.8 45.5 40

US Attorney General Repudiates Obama-era Cole Memo:

The Cole Memo in the U.S., was the Obama At the surface, this rescission appears to increase administration’s response to an ever-increasing the risk for both U.S. and Canadian producers that legalization trend in the U.S. at the state level, operate in the U.S.; however, resources of local while marijuana was still federally illegal. Its intent prosecutors are still ﬁnite, and U.S. federal cannabis was to let local state and district attorneys decide laws are becoming increasingly unpopular, which whether to pursue marijuana-related offences in also make it more difﬁcult for local prosecutors to states where medical or recreational use was enforce,73 even if they wanted to. In fact, medical legalized, as long as they met the criteria of the marijuana users are still protected under the memo. It was an understanding, but not law.71 Rohrabacher-Blumenauer Amendment which However, Attorney General Jeff Sessions, under prevents federal funds from interfering with state President Trump, on January 4, 2017 rescinded medical marijuana laws. the Cole Memo, essentially allowing local prosecutors to target marijuana offenders, even in states that legalized recreational marijuana.72

echelonpartners.com 15 The Canadian Cannabis Story: A Generational Investment Opportunity

NORTH AMERICAN LEGAL CANNABIS SPENDING 2015-2021

Medical Adult Use $25 Billion

$20 Billion 14.9B

10.7B $15 Billion 7.6B

$10 Billion 4.2B 2.5B 1.8B $5 Billion 970M

$0 4.0B 4.9B 5.68B 7.0B 7.0B 7.1B 7.7B 2015 2016 2017 2018 2019 2020 2021 Source: The ArcView Group, “The State of Legal Marijuana Markets 5th Edition.”

Between 2017 and 2020, the cannabis sector is In Brazil, the government issued the country’s first expected to generate more than 250,000 new license for sale of a cannabis-based drug in jobs, which is more than the entire American January 2017.78 British Columbia-based Tilray manufacturing sector.74 constructed a cultivation and processing facility in Portugal in October 2017,79 the first Canadian Other countries are also garnering the interest of company to grow medical cannabis outside of the Canadian producers. Germany’s lower house of country.80 Canadian companies are also either parliament passed legislation in March 2017 exporting to or have made distribution agreements allowing the use of cannabis for medical purposes.75 with companies located in Chile, Croatia, Australia, The new law covers both dried marijuana and oils. New Zealand, South Africa and Cyprus.81 Overall, In Germany, there are currently only 1,000 medical Canadian licensed producers (LPs) can increment cannabis users, out of a population of 82 million, with current production by between two and 12 times, approval granted only through special exemptions. which means they have the capacity to supply a In addition to its large population, its median age of growing domestic market, along with global market 46.4 years will make it a notably interesting market for demands.82 Although, not everything goes to plan as cannabis pain relief applications.76 The law also witnessed by over-demand and under-supply still mandates that health insurance cover cannabis plaguing Canada’s marijuana marketplace since prescriptions, relieving patients from the financial legalization in almost every province;83 although a burdens of treatment.77 Pending the creation of its temporary setback.84 own production capacity, Germany demand will have to be necessarily satisfied by imports.

echelonpartners.com 16 The Canadian Cannabis Story: A Generational Investment Opportunity

CANADIAN CANNABIS STOCKS

An Investment Opportunity to Consider

As with any new industry, speed to market can prove to be a powerful advantage. It can help create brand awareness with customers, suppliers and investors, and it can also allow early movers to gain valuable experience that helps them stay in front of competitors.

In our view, the single biggest entry barrier in the cannabis industry is licensing. Medical users must buy their cannabis from a producer that has been licensed by Health Canada. The licensing process is extensive and features background checks on key management personnel, as well as requirements for facility security (e.g., fencing and security cameras).

During 2017, cannabis product shortages and the coming legalization of the recreational market raised concerns that the licensing process was too time-consuming. In May 2017, and again in January 2018, Health Canada eased its requirements for licensing.

As the next figure shows, this has contributed to a significant increase in the number of companies licensed to grow cannabis. During 2017 alone, the number of licensees almost doubled.

LICENSED CULTIVATION OPERATIONS

300,000 89 84 250,000

200,000 62

50 150,000 41 37

100,000 27 23

50,000 6

Q313 Q413 Q114 Q214 Q314 Q414 Q115 Q215 Q315 Q415 Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q118

Source: Health Canada

echelonpartners.com 17 The Canadian Cannabis Story: A Generational Investment Opportunity

While the number of companies licensed to grow 2021.85 In Canada only, the legal cannabis market cannabis has increased dramatically, only a relatively is expected to have a ten-fold increase in value, both small number are actually licensed to sell cannabis. thanks to endogenous growth and the absorption In addition, cannabis oil products fetch prices that of existing illegal spending.86 are 75% higher than simple dried cannabis, which means that many companies licensed to grow The rescission of the Cole memo in the U.S. may, in cannabis will be working to upgrade their licensing fact, increase the expertise and growth potential of to produce and sell cannabis oil products as well. Canadian legal producers of marijuana as it keeps U.S. producers small and focused within each state. We believe speed to market is very important. It Federal legalization in the U.S. would instantly flood allows producers to scale up faster, so that they can the industry with large producers offering large-scale reduce their unit production costs as they expand, competition to Canadian producers. Canadian and it allows them to introduce new product lines to marijuana companies will be able to further entrench the market, once they have established their brands. their expertise and production capacity both within In the new recreational market, speed may also Canada and internationally under the new regime, allow some producers to secure ‘shelf space’ with while U.S. producers are still sidelined. retail operators before new entrants to the market are ready to compete. As more and more countries adopt legislation favourable to medical and recreational cannabis, The dramatic increase in the number of companies many further global opportunities will appear in the licensed to grow cannabis, combined with how well next three to five years. Canadian cannabis stocks capitalized these companies are following recent are perfectly positioned to profit from both domestic financing activity, suggests that dried cannabis and international growth, combining first-mover supply will increase significantly, which will likely put advantages, wide product ranges, and growing downward pressure on pricing over time. international ties.

When the price of a commodity falls, the companies To find out more about Canadian cannabis stocks that survive and prosper are the ultra-low cost call Echelon Wealth Partners today at 416-572-5523. producers who can be profitable, and the companies that are able to develop and commercialize unique value-added products that distinguish themselves from the pack (e.g., special products that justify higher pricing).

The legal cannabis market is today in its early infancy, a situation similar to the internet sector in the mid-1990s. The potential of this sector is already starting to manifest itself in full. Revenue and user growth in 2015-2017 in Canada and the U.S. has surpassed even the most optimistic expectations. Projections are for cannabis to remain the fastest growing sector in both economies until at least

echelonpartners.com 18 The Canadian Cannabis Story: A Generational Investment Opportunity

ENDNOTES

1 The DEA Museum, “Cannabis, Coca, & Poppy: Nature’s Addictive Plants,” DEA Museum, accessed October 3, 2017, https://ww- w.deamuseum.org/ccp/cannabis/production-distribution.html.

2 Erowid.org, “History of marijuana & cannabis use and abuse,” Narconon.org, accessed October 3, 2017, http://www.narconon.org/drug-information/marijuana-timeline.html.

3 Erowid.org, “Cannabis, Cocoa & Poppy”.

4 Daniel Leblanc, “Ottawa to legalize outdoor cannabis crops,” The Globe and Mail, June 26, 2018, https://www.theglobeandmail.com/politics/article-outdoor-cannabis-crops-soon-to-be-legal-in-canada/.

5 Leigh Coulter, June 1, 2018, “Why cannabis growers are increasingly moving toward greenhouse facilities”, BNNBloomberg.com https://www.bnnbloomberg.ca/video/why-cannabis-growers-are-increasingly-moving-toward-greenhouse-facilities~1408210, Live Broadcast/Video File, 4:00.

6 “Prescribing Physician Trends,” citing its 2016 Physician Survey, CanniMed Therapeutics, accessed January 15, 2017, https://w- ww.cannimedtherapeutics.com/investors/overview/the-medical-cannabis-market-in-canada/default.aspx .

7 Andrew Joseph, “Want to test a marijuana-based drug? Expect a visit from the ‘men in black’,” Stat News, May 16, 2016, https://www.statnews.com/2016/05/16/marijuana-research/

8 Fred Cicetti, “How Marijuana Could Help Glaucoma,” Live Science, April 12, 2010, https://www.livescience.com/6232-marijuana-glaucoma.html.

9 Maia Szalavitz, “Study: Smoking Marijuana Not Linked with Lung Damage,” Time, January 10, 2012, http://healthland.- time.com/2012/01/10/study-smoking-marijuana-not-linked-with-lung-damage/.

10 Robert J. DeLorenzo, ”Marijuana and its receptor protein in brain control epilepsy,” Virginia Commonwealth University News, accessed October 3 2017, http://www.news.vcu.edu/article/Marijuana_and_its_receptor_protein_in_brain_control_epilepsy.

11 CAM for Health Professionals, “Cannabis and Cannabinoids (PDQ®)–Health Professional Version,” National Cancer Institute, last modiﬁed October 20, 2017, https://www.cancer.gov/about-cancer/treatment/cam/hp/cannabis-pdq.

12 Mind & Mood, “Medical marijuana and the mind,” Harvard Mental Health Letter, April 2010, https://www.health.harvard.edu/- mind-and-mood/medical-marijuana-and-the-mind

13 “Marijuana may help stave off Alzhemier’s,” NBC News, January 7, 2013, http://www.nbcnews.com/id/15145917/ns/health-alzhei- mers_disease/t/marijuana-may-help-stave-alzheimers/#.UJqzy2l25Jl.

14 Amy Norton, “Marijuana may ease multiple sclerosis symptoms,” Reuters, May 14, 2012, http://www.reuters.com/article/us-marijuana-sclerosis/marijuana-may-ease-multiple-sclerosis-symptoms-idUSBRE84D0RS20120514.

15 Alison Mack & Janet E. Joy, “Marijuana as Medicine? The Science Beyond the Controversy”, The National Academies Press, 2000.

16 Theresa Liu et al., “Marijuana use in hepatitis C infection does not affect liver biopsy histology or treatment outcomes,” Canadian Journal of Gastroentorology and Hepatology, 28, no. 7, (Jul/Aug 2014): 381–384, https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4144456/

17 Waseem Ahmed & Seymour Katz, “Therapeutic use of Cannabis in inﬂammatory bowel disease,” Gastroenterology & Hepatolo- gy, 12, no. 11 (Nov 2016): 668–679, https://www.ncbi.nlm.nih.gov/pmc/articles/PMC5193087/.

18 Ethan B. Russo, “Cannabinoids in the management of difﬁcult to treat pain,” Therapeutical Clinical Risk Management, 4 no. 1 (Feb 2008): 245–259, https://www.ncbi.nlm.nih.gov/pmc/articles/PMC2503660/.

19 Priyamvada Sharma et al., “Chemistry, Metabolism, and Toxicology of Cannabis: Clinical Implications,” Iranian Journal of Psychiatry, 7, no. 4 (Fall 2012): 149–156, https://www.ncbi.nlm.nih.gov MC2828614/.

20 Prakash Nagarkatti et al., “Cannabinoids as novel anti-inﬂammatory drugs,” Future Medicinal Chemistry, 1 no. 7 (October, 2009): 1333–1349, https://www.ncbi.nlm.nih.gov/pmc/articles/P- MC2828614/.

21 Sarah Trumble, “Timeline of State Marijuana Legalization Laws,” The Third Way, May 2, 2016, http://www.thirdway.org/infograph- ic/timeline-of-state-marijuana-legalization-laws.

echelonpartners.com 19 The Canadian Cannabis Story: A Generational Investment Opportunity

22 “Market Data”, Health Canada, accessed February 7, 2018, https://www.canada.ca/en/health-canada/services/drugs-medica- 46 Sean Williams, “Canada's Recreational Marijuana Approach Is Pure Genius, but It Would Never Work in the US,” Fool, accessed 69 Will Yakowicz, “Illegal Pot Sales Topped $46.4 Billion in 2016, and That's Good News for Marijuana Entrepreneurs,” Inc., January About Echelon Wealth Partners tion/cannabis/licensed-producers/market-data.html. on October 3 2017, https://www.fool.com/investing/2017/07/09/canadas-recreational-marijuana-approach-is-pure-ge.aspx 17, 2017, https://www.inc.com/will-yakowicz/marijuana-sales-2016-50-billion.html. 8FSFBMFBEJOHJOEFQFOEFOU $BOBEJBOPXOFEBOEPQFSBUFEXFBMUINBOBHFNFOUBOEDBQJUBMNBSLFUTmSN LOPXOGPSPVSDMJFOU centered approach and entrepreneurial spirit. Echelon is a compelling option for investors seeking unbiased investment solutions, 23 “Market Data”, Health Canada, accessed February 7, 2018. 47 Nick Westoll, “Marijuana to be sold through private retailers, online in Ontario,” Global News, August 13, 2018, https://global- 70 Yakowicz, “Illegal Pot”. professional management and unparalleled service. We aim to build lifetime relationships and deliver superior service. Our news.ca/news/4385166/marijuana-sales-ontario/. 24 “Number of Physicians by Province/Territory and Specialty, Canada, 2018,” Canadian Medical Association, accessed October 71 Debra Borchardt, “Marijuana Industry Projected To Create More Jobs Than Manufacturing By 2020,” Forbes, February 22, 2017, https://w- mOBODJBMQSPGFTTJPOBMTIBWFUIFGSFFEPNUPPGGFSUSVMZJOEFQFOEFOUJOWFTUNFOUBEWJDF BMXBZTQVUUJOHUIFJSDMJFOUTOFFETmSTU8F 1 The DEA Museum, “Cannabis, Coca, & Poppy: Nature’s Addictive Plants,” DEA Museum, accessed October 3, 2017, https://ww- 12, 2018, https://www.cma.ca/Assets/assets-library/document/en/advocacy/01-physicians-by-specialty-province-e.pdf. 48 Debra Borchardt, “Marijuana Sales Totaled $6.7 Billion In 2016,” Forbes, January 3, 2017, https://www.forbes.com/sites/debra- ww.forbes.com/sites/debraborchardt/2017/02/22/marijuana-industry-projected-to-create-more-jobs-than-manufacturing-by-2020/. BSFBMTPBHSPXJOHmSN XJUINPSFUIBOCJMMJPOJOBTTFUTVOEFSBENJOJTUSBUJPOBOENBOBHFNFOU8FTFSWJDFDMJFOUTBDSPTT w.deamuseum.org/ccp/cannabis/production-distribution.html. borchardt/2017/01/03/marijuana-sales-totaled-6-7-billion-in-2016/#69a3814e75e3 $BOBEBGSPNPVSPGmDFTJO5PSPOUP 0BLWJMMF 0UUBXB -POEPO .POUSFBM 4BTLBUPPO &ENPOUPO $BMHBSZ 7BODPVWFSBOE7JDUPSJB 25 72 “Get the facts on the opioid crisis in Canada,” Health Canada, accessed September 10, 2018, https://www.canada.ca/en/ser- Lisa Rough, “The Cole Memo: What Is It and What Does It Mean?” Leafly.com, September 14, 2017, https://www.leafly- Copyright © 2018 Echelon Wealth Partners. All rights reserved. 2 Erowid.org, “History of marijuana & cannabis use and abuse,” Narconon.org, accessed October 3, 2017, http://www.nar- vices/health/campaigns/drug-prevention.html. 49 Marijuana Business News, “Colorado marijuana sales top $750 million at 2017 midpoint,” Colorado Rocky Mountain High News, .com/news/cannabis-101/what-is-the-cole-memo. conon.org/drug-information/marijuana-timeline.html. August 26, 2017, http://coloradorockymountainhightours.com/colorado-marijuana-sales/. 26 CaCanadiannadian InstituteInstitute forfor HealthHealth Information,Information, “Pan-Canadian“Pan-Canadian TrendsTrends inin the PrescribingPrescribing of Opioids,Opioids, 20122012 toto 2016,”2016,” CIHI, Ottawa,Ottawa, ON,ON, 2017,2017, 73 Leafly Staff, “Sessions Rescinds Cole Memo, Which Protected State-Legal Cannabis from Feds,” Leafly.com, updated January 5, 3 Erowid.org, “Cannabis, Cocoa & Poppy”. accessedaccessed OctoberOctober 20,20, 2018,2018, https://www.cihi.ca/sites/default/files/document/pan-canadian-trends-opioid-prescribing-2017-en-web.https://www.cihi.ca/sites/default/files/document/pan-canadian-trends-opioid-prescribing-2017-en-web.pdf.pdf. 50 Daniel White, “Colorado's Marijuana Industry Had a $2.39 Billion Impact Last Year: Report”, Time, October 26, 2016, http://- 2018, https://www.leafly.com/news/politics/sessions-rescinds-cole-memo-which-protected-state-legal-cannabis-from-feds. time.com/4546522/colorado-marijuana-industry-economic-impact/. 4 Daniel Leblanc, “Ottawa to legalize outdoor cannabis crops,” The Globe and Mail, June 26, 2018, https://www.theglobeand- 27 IInternationalnternational NarcoticNarcotic ControlControl Board,Board, “Technical“Technical report:report: EstimatedEstimated World RequirementsRequirements for 2018 – StatisticsStatistics forfor 2016,”2016,” United Nations, NewNew York,York, 74 Debra Borchardt, “Marijuana Industry Projected To Create More Jobs Than Manufacturing By 2020,” Forbes, February 22, 2017, https://w- mail.com/politics/article-outdoor-cannabis-crops-soon-to-be-legal-in-canada/. 202018,18, accessedaccessed OctoberOctober 21, 2018,2018, https://www.incb.org/incb/en/narcotic-drugs/Technical_Reports/2017/narcotic-drugs-technical-rehttps://www.incb.org/incb/en/narcotic-drugs/Technical_Reports/2017/narcotic-drugs-technical-report-2017.html.port-2017.html. 51 .FMJB3PCJOTPO i5IFNBSJKVBOBJOEVTUSZhTmSTUCJMMJPOhVOJDPSOhJTB$BOBEJBODPNQBOZZPVhWFQSPCBCMZOFWFSIFBSEPG wBusiness ww.forbes.com/sites/debraborchardt/2017/02/22/marijuana-industry-projected-to-create-more-jobs-than-manufacturing-by-2020/. Insider, February 2, 2017, http://www.businessinsider.de/canopy-growth-1-billion-revenue-giant-marijuana-industry-2017-2?r=US&IR=T. 5 Leigh Coulter, June 1, 2018, “Why cannabis growers are increasingly moving toward greenhouse facilities”, BNNBloomberg.com 28 Chris Morris, “The next big billion-dollar cannabis markets investors are rushingrushing to,”to,” CNBC, OctoberOctober 21,21, 2016,2016, https://www.cnbc.comhttps://www.cnbc.com 75 Meera Senthilingam, “Germany joins the global experiment on marijuana legalization,” CNN, March 6, 2017, http://edi- https://www.bnnbloomberg.ca/video/why-cannabis-growers-are-increasingly-moving-toward-greenhouse-facilities~1408210, /2016/10/21/the-next-big-billion-dollar-cannabis-markets-investors-are-rushing-to.html. 52 “Recreational Marijuana - Insights and opportunities,” Deloitte, accessed October 3 2017, https://www2.deloitte.com/content/dam/Deloitte tion.cnn.com/2016/12/29/health/global-marijuana-cannabis-laws/index.html. Live Broadcast/Video File, 4:00. /ca/Documents/Analytics/ca-en-analytics-DELOITTE%20Recreational%20Marijuana%20POV%20-%20ENGLISH%20FINAL_AODA.pdf. 29 “Medicinal cannabis crops now legal in Australia,” The Guardian, accessed October 3, 2017, https://www.theguardian.com/soci- 76 Stanley, “Stepping Up to the Next Level.” 6 “Prescribing Physician Trends,” citing its 2016 Physician Survey, CanniMed Therapeutics, accessed January 15, 2017, https://w- ety/2016/oct/30/medicinal-cannabis-crops-now-legal-in-australia. 53 Andy Blatchford, “Early marijuana sales ‘unbelievably high’ after legalization: US consultant,” The Globe and Mail, April 30, 2017, ww.cannimedtherapeutics.com/investors/overview/the-medical-cannabis-market-in-canada/default.aspx . https://beta.theglobeandmail.com/news/politics/early-marijuana-sales-unbelievably-high-after-legalization-us-consultant- 77 Global Legal Monitor, “Germany: Medical Marijuana Act Enters into Force,” Library of Congress, March 13, 2017, http://ww- 30 Meera Senthilingam, “Germany joins the global experiment on marijuana legalization,” CNN, March 6, 2017, http://edi- /article34859318/?ref=http://www.theglobeandmail.com&. w.loc.gov/law/foreign-news/article/germany-medical-marijuana-act-enters-into-force/. 7 Andrew Joseph, “Want to test a marijuana-based drug? Expect a visit from the ‘men in black’,” Stat News, May 16, 2016, tion.cnn.com/2016/12/29/health/global-marijuana-cannabis-laws/. https://www.statnews.com/2016/05/16/marijuana-research/ 54 Russell Stanley, “Stepping Up to the Next Level,” Echelon Wealth Partners, February 3, 2017, http://research.echelonpart- 78 3FVUFST4UBGG i#SB[JMJTTVFTmSTUMJDFOTFGPSTBMFPGBDBOOBCJTCBTFEESVH wReuters, January 16, 2017, https://www.reu- 31 Russell Stanley, “The Canadian Cannabis Market For Investors,” Echelon Wealth Partners, Toronto, ON, July 2017. ners.com/research/content/Cannabis_Theme_Report.pdf. UFSTDPNBSUJDMFVTCSB[JMDBOOBCJTCSB[JMJTTVFTmSTUMJDFOTFGPSTBMFPGBDBOOBCJTCBTFEESVHJE64,#/"/ 8 Fred Cicetti, “How Marijuana Could Help Glaucoma,” Live Science, April 12, 2010, https://www.livescience.com/6232-marijuana-glaucoma.html. 32 Sam Galegos, “Marijuana, tobacco taxes could bring $2 billion (or more) to California,” ABC News, November 4, 2016, http://ww- 55 Sheryl Ubelacker, “Cannabis Oils Are Legal And Ready In Canada, Still Need Health Canada Approval,” )VGmOHUPO1PTU, October 6, 2015, 79 “Canadian Tilray to produce cannabis in Portugal,” Essential Business, September 24, 2018, https://www.essential-busi- 9 Maia Szalavitz, “Study: Smoking Marijuana Not Linked with Lung Damage,” Time, January 10, 2012, http://healthland.- w.abc10.com/news/politics/elections/marijuana-tobacco-taxes-could-bring-2-billion-to-california/290927107 IUUQXXXIVGmOHUPOQPTUDBQSPEVDFSTPGESJFENFEJDBMQPUBXBJUJOHBQQSPWBMUPTFMMOPXMFHBMDBOOBCJTPJMT@O@IUNM ness.pt/2018/09/24/canadian-tilray-to-produce-cannabis-in-portugal/. time.com/2012/01/10/study-smoking-marijuana-not-linked-with-lung-damage/. 33 Department of Justice, “Cannabis crime statistics in Canada, 2016,” Government of Canada, July 2017, accessed November 5, 56 “Cannabis Oils: A Look At What’s Available in Canada,” Leaf Science, February 21, 2016, https://www.leafscience.com- 80 $BUIZ,FBSOFZ i/BOBJNPCBTFENFEJDBMNBSJKVBOBDPNQBOZmSTUUPDVMUJWBUFQSPEVDUPVUTJEF$BOBEB wCBC News, September 10 Robert J. DeLorenzo, ”Marijuana and its receptor protein in brain control epilepsy,” Virginia Commonwealth University News, 2018, https://www.justice.gc.ca/eng/rp-pr/jr/jf-pf/2017/july01.html. /2016/02/21/cannabis-oils-look-whats-available-canada/. 7, 2017, http://www.cbc.ca/news/canada/british-columbia/tilray-expands-eu-1.4279274. accessed October 3 2017, http://www.news.vcu.edu/article/Marijuana_and_its_receptor_protein_in_brain_control_epilepsy. 34 Gavin Haines, “Mapped: The countries that smoke the most cannabis,” The Telegraph, April 20, 2017, http://www.telegraph.- 57 Tyler Nyquvest, “Licensing for cannabis oil lags behind heady growth,” Business Vancouver, October 3, 2017, https://www.biv.com 81 Harrison Jordan, “A country-by-country guide to Canada’s cannabis exports,” Lift News, accessed October 3 2017, 11 CAM for Health Professionals, “Cannabis and Cannabinoids (PDQ®)–Health Professional Version,” National Cancer Institute, last co.uk/travel/maps-and-graphics/-mapped-the-countries-that-smoke-the-most-cannabis/. /article/2017/10/licensing-cannabis-oil-lags-behind-heady-growth/. https://news.lift.co/country-country-guide-canadas-cannabis-exports/ NPEJmFE0DUPCFS IUUQTXXXDBODFSHPWBCPVUDBODFSUSFBUNFOUDBNIQDBOOBCJTQER 35 Amanda Reiman, “Cannabis as a substitute for alcohol and other drugs,” Harm Reduction Journal, 6 (2009): 35, https://www.nc- 58 Nyquvest, “Licensing for cannabis”. 82 Stanley, “Stepping Up to the Next Level.” 12 Mind & Mood, “Medical marijuana and the mind,” Harvard Mental Health Letter, April 2010, https://www.health.harvard.edu/- bi.nlm.nih.gov/pmc/articles/PMC2795734. mind-and-mood/medical-marijuana-and-the-mind 59 “Market Data,” Health Canada, accessed October 3 2017, https://www.canada.ca/en/health-canada/ser- 83 https://www.ctvnews.ca/business/supply-shortages-plague-canada-s-new-cannabis-marketplace-1.4160476 36 United6OJUFE/BUJPOT0GmDFPO%SVHTBOE$SJNF i8PSME%SVH3FQPSU Nations Ofﬁce on Drugs and Crime, “World Drug Report 2016,” w6/0%$ .BZ UNODC, May 2016, (United Nations publication, Sales vices/drugs-health-products/medical-use-marijuana/licensed-producers/market-data.html. 13 “Marijuana may help stave off Alzhemier’s,” NBC News, January 7, 2013, http://www.nbcnews.com/id/15145917/ns/health-alzhei- No. E.16.XI.7), https://www.unodc.org/doc/w dr2016/WORLD_DRUG_REPORT_2016_web.pdf. 84 https://nationalpost.com/news/ontario-government-says-pot-deliveries-back-on-track-after-backlog-cleared mers_disease/t/marijuana-may-help-stave-alzheimers/#.UJqzy2l25Jl. 60 Daniel White, “Colorado's Marijuana Industry Had a $2.39 Billion Impact Last Year: Report”, Time, October 26, 2016, http://- 85 37 Mary O’Hara, “New Poll Finds Majority of Americans Have Smoked Marijuana,” NBC News, April 17, 2017, https://www.nbc- time.com/4546522/colorado-marijuana-industry-economic-impact/. Melia Robinson, “The legal weed market is growing as fast as broadband internet in the 2000s,” Business Insider, March 1, 2017, 14 Amy Norton, “Marijuana may ease multiple sclerosis symptoms,” Reuters, May 14, 2012, http://www.reuters.com/article/us-mari- news.com/news/us-news/new-poll-ﬁnds-majority-americans-have-smoOFXTDPNOFXTVTOFXTOFXQPMMmOETNBKPSJUZBNFSJDBOTIBWFTNPked-pot-n747476.LFEQPUO http://www.businessinsider.de/arcview-north-america-marijuana-industry-revenue-2016-2017-1?r=US&IR=T. juana-sclerosis/marijuana-may-ease-multiple-sclerosis-symptoms-idUSBRE84D0RS20120514. 61 The Canadian Press, “Health Canada swamped with medical marijuana business applications,” CBC, June 4, 2014, http://ww- 86 38 Jessica Glenza, “Ten million more Americans smoke marijuana now than 12 years ago: study,” The Guardian, September 1, w.cbc.ca/news/canada/health-canada-swamped-with-medical-marijuana-business-applications-1.2661070. .FMJB3PCJOTPO i5IFNBSJKVBOBJOEVTUSZhTmSTUCJMMJPOhVOJDPSOhJTB$BOBEJBODPNQBOZZPVhWFQSPCBCMZOFWFSIFBSEPG wBusiness 15 Alison Mack & Janet E. Joy, “Marijuana as Medicine? The Science Beyond the Controversy”, The National Academies Press, 2000. 2016, https://www.theguardian.com/society/2016/sep/01/marijuana-use-americans-study-lancet-legalization. Insider, February 2, 2017, http://www.businessinsider.de/canopy-growth-1-billion-reve- 62 Russell Stanley, “Cannabis Weekly,” Echelon Wealth Partners, August 28, 2017, http://research.echelonpartners.com/research/- nue-giant-marijuana-industry-2017-2?r=US&IR=T. 16 Theresa Liu et al., “Marijuana use in hepatitis C infection does not affect liver biopsy histology or treatment outcomes,” Canadian Journal 39 “Canada’s biggest cannabis company just made $321M acquisition,” The Cannabist, December 1, 2016, http://www.thecanna- content/Cannabis_Weekly_Aug_28_17.pdf. of Gastroentorology and Hepatology, 28, no. 7, (Jul/Aug 2014): 381–384, https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4144456/ bist.co/2016/12/01/canopy-growth-corp-canada-biggest-marijuana-company-acquisition/68594/. 63 Stanley, “Cannabis Weekly”. Forward Looking Statements 17 8BTFFN"INFE4FZNPVS,BU[ i5IFSBQFVUJDVTFPG$BOOBCJTJOJOnBNNBUPSZCPXFMEJTFBTF wGastroenterology & Hepatolo- 40 AndAndrewrew Hathaway,Hathaway, “The LegalLegal HistoryHistory andand CulturalCultural ExperienceExperience of Cannabis,”Cannabis,” Visions JournalJournal, 5 no. 4 (2009):(2009): 12, quotedquoted in “Here to Help”, Forward-looking statements are based on current expectations, estimates, forecasts and projections based on beliefs and gy, 12, no. 11 (Nov 2016): 668–679, https://www.ncbi.nlm.nih.gov/pmc/articles/PMC5193087/. accaccessedessed OctoberOctober 3 2017,2017, http://www.heretohttp://www.hereto help.bc.ca/visions/cannabis-vol5/the-legal-history-and-cultural-experience-of-cannabhelp.bc.ca/visions/cannabis-vol5/the-legal-history-and-cultural-experience-of-cannabisis.. 64 “Legalized Cannabis: Fiscal Considerations,” 1BSMJBNFOUBSZ#VEHFU0GmDFS, November 1, 2016, http://www.pbo-dpb.gc.ca/web/- assumptions made by author. These statements involve risks and uncertainties and are not guarantees of future performance or EFGBVMUmMFT%PDVNFOUT3FQPSUT-FHBMJ[FE$BOOBCJT-FHBMJ[FE$BOBCJT'JTDBM$POTJEFSBUJPOT@&/QEG 18 &UIBO#3VTTP i$BOOBCJOPJETJOUIFNBOBHFNFOUPGEJGmDVMUUPUSFBUQBJO wTherapeutical Clinical Risk Management, 4 no. 1 41 Chris Morris, “The next big billion-dollar cannabis markets investors are rushing to,” CNBC, October 21, 2016, https://www.cn- results and no assurance can be given that these estimates and expectations will prove to have been correct, and actual (Feb 2008): 245–259, https://www.ncbi.nlm.nih.gov/pmc/articles/PMC2503660/. bc.com/2016/10/21/the-next-big-billion-dollar-cannabis-markets-investors-are-rushing-to.html. 65 Vanmala Subramaniam, “First-mover advantage,” VICE News, May 15, 2017, https://news.vice.com/story/canadian-weed-pro- outcomes and results may differ materially from what is expressed, implied or projected in such forward-looking statements. ducers-will-dominate-the-global-marijuana-market 5IFPQJOJPOTFYQSFTTFEJOUIJTSFQPSUBSFUIFPQJOJPOTPGUIFBVUIPSBOESFBEFSTTIPVMEOPUBTTVNFUIFZSFnFDUUIFPQJOJPOTPS 19 42 Priyamvada Sharma et al., “Chemistry, Metabolism, and Toxicology of Cannabis: Clinical Implications,” Iranian Journal of Politics, “Highlights from the federal marijuana task force report,” CBC, December 13, 2016, http://www.cbc.ca/news/poli- SFDPNNFOEBUJPOTPG&DIFMPO8FBMUI1BSUOFST*ODPSJUTBGmMJBUFT"TTVNQUJPOT PQJOJPOTBOEFTUJNBUFTDPOTUJUVUFUIFBVUIPSTKVEHNFOU 66 Psychiatry, 7, no. 4 (Fall 2012): 149–156, https://www.ncbi.nlm.nih.gov MC2828614/. tics/marijuana-task-force-highlights-1.3894219. "EBN"CSBNT i*TSBFM&YQFDUT)JHI1SPmUT'SPN.FEJDBM$BOOBCJT&YQPSUT wIsrael Today, August 22, 2017, http://www.israelto- as of the date of this material and are subject to change without notice. We do not warrant the completeness or accuracy of this day.co.il/NewsItem/tabid/178/nid/32231/Default.aspx. material, and it should not be relied upon as such. Before acting on any recommendation, you should consider whether it is suitable 20 1SBLBTI/BHBSLBUUJFUBM i$BOOBCJOPJETBTOPWFMBOUJJOnBNNBUPSZESVHT w , 1 no. 7 (October, 2009): 43 Future Medicinal Chemistry “The Cannabis Act: An overview,” DentonsDentons, April 18, 2017, https://www.dentons.com/en/insights/alerts/2017/april/18/the-cannabis-act-an-overview.https://www.dentons.com/en/insights/alerts/2017/april/18/the-cannabis-act-an-overview. for your particular circumstances and, if necessary, seek professional advice. Past performance is not indicative of future results. 1333–1349, https://www.ncbi.nlm.nih.gov/pmc/articles/P- MC2828614/. 67 Vanmala Subramaniam, “First-mover advantage.” 44 Rob Ferguson, “Canada’s premiers discuss delaying the legalization of marijuana,” The Star, July 18, 2017, https://www.the- These estimates and expectations will prove to have been correct, and actual outcomes and results may differ materially from what 21 Sarah Trumble, “Timeline of State Marijuana Legalization Laws,” The Third Way, May 2, 2016, http://www.thirdway.org/infograph- star.com/news/queenspark/2017/07/18/canadas-premiers-discuss-delaying-the-legalization-of-marijuana.html. 68 Matt Lamers “Canadian exports of medical marijuana soar as producers seek overseas toehold,” Marijuana Business Daily, is expressed, implied or projected in such forward-looking statements. ic/timeline-of-state-marijuana-legalization-laws. August 15, 2017, https://mjbizdaily.com/canadian-ex-ports-medical-marijuana-soar-producers-seek-overseas-toehold/. 45 Ferguson, “Canada’s premiers”.

echelonpartners.com 20 The Canadian Cannabis Story: A Generational Investment Opportunity

22 “Market Data”, Health Canada, accessed February 7, 2018, https://www.canada.ca/en/health-canada/services/drugs-medica- 46 Sean Williams, “Canada's Recreational Marijuana Approach Is Pure Genius, but It Would Never Work in the US,” Fool, accessed 69 Will Yakowicz, “Illegal Pot Sales Topped $46.4 Billion in 2016, and That's Good News for Marijuana Entrepreneurs,” Inc., January About Echelon Wealth Partners tion/cannabis/licensed-producers/market-data.html. on October 3 2017, https://www.fool.com/investing/2017/07/09/canadas-recreational-marijuana-approach-is-pure-ge.aspx 17, 2017, https://www.inc.com/will-yakowicz/marijuana-sales-2016-50-billion.html. 8FSFBMFBEJOHJOEFQFOEFOU $BOBEJBOPXOFEBOEPQFSBUFEXFBMUINBOBHFNFOUBOEDBQJUBMNBSLFUTmSN LOPXOGPSPVSDMJFOU centered approach and entrepreneurial spirit. Echelon is a compelling option for investors seeking unbiased investment solutions, 23 “Market Data”, Health Canada, accessed February 7, 2018. 47 Nick Westoll, “Marijuana to be sold through private retailers, online in Ontario,” Global News, August 13, 2018, https://global- 70 Yakowicz, “Illegal Pot”. professional management and unparalleled service. We aim to build lifetime relationships and deliver superior service. Our news.ca/news/4385166/marijuana-sales-ontario/. 24 “Number of Physicians by Province/Territory and Specialty, Canada, 2018,” Canadian Medical Association, accessed October 71 Debra Borchardt, “Marijuana Industry Projected To Create More Jobs Than Manufacturing By 2020,” Forbes, February 22, 2017, https://w- mOBODJBMQSPGFTTJPOBMTIBWFUIFGSFFEPNUPPGGFSUSVMZJOEFQFOEFOUJOWFTUNFOUBEWJDF BMXBZTQVUUJOHUIFJSDMJFOUTOFFETmSTU8F 1 The DEA Museum, “Cannabis, Coca, & Poppy: Nature’s Addictive Plants,” DEA Museum, accessed October 3, 2017, https://ww- 12, 2018, https://www.cma.ca/Assets/assets-library/document/en/advocacy/01-physicians-by-specialty-province-e.pdf. 48 Debra Borchardt, “Marijuana Sales Totaled $6.7 Billion In 2016,” Forbes, January 3, 2017, https://www.forbes.com/sites/debra- ww.forbes.com/sites/debraborchardt/2017/02/22/marijuana-industry-projected-to-create-more-jobs-than-manufacturing-by-2020/. BSFBMTPBHSPXJOHmSN XJUINPSFUIBOCJMMJPOJOBTTFUTVOEFSBENJOJTUSBUJPOBOENBOBHFNFOU8FTFSWJDFDMJFOUTBDSPTT w.deamuseum.org/ccp/cannabis/production-distribution.html. borchardt/2017/01/03/marijuana-sales-totaled-6-7-billion-in-2016/#69a3814e75e3 $BOBEBGSPNPVSPGmDFTJO5PSPOUP 0BLWJMMF 0UUBXB -POEPO .POUSFBM 4BTLBUPPO &ENPOUPO $BMHBSZ 7BODPVWFSBOE7JDUPSJB 25 72 “Get the facts on the opioid crisis in Canada,” Health Canada, accessed September 10, 2018, https://www.canada.ca/en/ser- Lisa Rough, “The Cole Memo: What Is It and What Does It Mean?” Leafly.com, September 14, 2017, https://www.leafly- Copyright © 2018 Echelon Wealth Partners. All rights reserved. 2 Erowid.org, “History of marijuana & cannabis use and abuse,” Narconon.org, accessed October 3, 2017, http://www.nar- vices/health/campaigns/drug-prevention.html. 49 Marijuana Business News, “Colorado marijuana sales top $750 million at 2017 midpoint,” Colorado Rocky Mountain High News, .com/news/cannabis-101/what-is-the-cole-memo. conon.org/drug-information/marijuana-timeline.html. August 26, 2017, http://coloradorockymountainhightours.com/colorado-marijuana-sales/. 26 Canadian Institute for Health Information, “Pan-Canadian Trends in the Prescribing of Opioids, 2012 to 2016,” CIHI, Ottawa, ON, 2017, 73 Leafly Staff, “Sessions Rescinds Cole Memo, Which Protected State-Legal Cannabis from Feds,” Leafly.com, updated January 5, 3 Erowid.org, “Cannabis, Cocoa & Poppy”. accessed October 20, 2018, https://www.cihi.ca/sites/default/files/document/pan-canadian-trends-opioid-prescribing-2017-en-web.pdf. 50 Daniel White, “Colorado's Marijuana Industry Had a $2.39 Billion Impact Last Year: Report”, Time, October 26, 2016, http://- 2018, https://www.leafly.com/news/politics/sessions-rescinds-cole-memo-which-protected-state-legal-cannabis-from-feds. time.com/4546522/colorado-marijuana-industry-economic-impact/. 4 Daniel Leblanc, “Ottawa to legalize outdoor cannabis crops,” The Globe and Mail, June 26, 2018, https://www.theglobeand- 27 International Narcotic Control Board, “Technical report: Estimated World Requirements for 2018 – Statistics for 2016,” United Nations, New York, 74 Debra Borchardt, “Marijuana Industry Projected To Create More Jobs Than Manufacturing By 2020,” Forbes, February 22, 2017, https://w- mail.com/politics/article-outdoor-cannabis-crops-soon-to-be-legal-in-canada/. 2018, accessed October 21, 2018, https://www.incb.org/incb/en/narcotic-drugs/Technical_Reports/2017/narcotic-drugs-technical-report-2017.html. 51 Me.FMJB3PCJOTPO i5IFNBSJKVBOBJOEVTUSZhTmSTUCJMMJPOhVOJDlia Robinson, “The marijuana industry's first $1 billion 'unicPSOhJTB$BOBEJBODPNQBOZZPVhWFQSPCBCMZOFWFSIFBSEPG worn' is a Canadian company you've probably never heard of,” BusinessBusiness ww.forbes.com/sites/debraborchardt/2017/02/22/marijuana-industry-projected-to-create-more-jobs-than-manufacturing-by-2020/. InsInsiderider, FebruaryFebruary 2, 2017,2017, http://www.businessinsider.de/canopy-growth-1-billion-revenue-giant-marijuana-industry-2017-2?r=US&IR=T.http://www.businessinsider.de/canopy-growth-1-billion-revenue-giant-marijuana-industry-2017-2?r=US&IR=T. 5 Leigh Coulter, June 1, 2018, “Why cannabis growers are increasingly moving toward greenhouse facilities”, BNNBloomberg.com 28 Chris Morris, “The next big billion-dollar cannabis markets investors are rushing to,” CNBC, October 21, 2016, https://www.cnbc.com 75 Meera Senthilingam, “Germany joins the global experiment on marijuana legalization,” CNN, March 6, 2017, http://edi- https://www.bnnbloomberg.ca/video/why-cannabis-growers-are-increasingly-moving-toward-greenhouse-facilities~1408210, /2016/10/21/the-next-big-billion-dollar-cannabis-markets-investors-are-rushing-to.html. 52 “Recre“Recreationalational Marijuana - Insights and opportunities,”opportunities,” DeloitDeloittete, accessedaccessed October 3 2017, https://www2.deloitte.com/content/dam/Deloittehttps://www2.deloitte.com/content/dam/Deloitte tion.cnn.com/2016/12/29/health/global-marijuana-cannabis-laws/index.html. Live Broadcast/Video File, 4:00. /ca/Documents/Analytics/ca-en-analytics-DELOITTE%20Recreational%20Marijuana%20POV%20-%20ENGLISH%20FINAL_AODA.pdf./ca/Documents/Analytics/ca-en-analytics-DELOITTE%20Recreational%20Marijuana%20POV%20-%20ENGLISH%20FINAL_AODA.pdf. 29 “Medicinal cannabis crops now legal in Australia,” The Guardian, accessed October 3, 2017, https://www.theguardian.com/soci- 76 Stanley, “Stepping Up to the Next Level.” 6 “Prescribing Physician Trends,” citing its 2016 Physician Survey, CanniMed Therapeutics, accessed January 15, 2017, https://w- ety/2016/oct/30/medicinal-cannabis-crops-now-legal-in-australia. 53 Andy Blatchford, “Early marijuana sales ‘unbelievably high’ after legalization: US consultant,” The Globe and Mail, April 30, 2017, ww.cannimedtherapeutics.com/investors/overview/the-medical-cannabis-market-in-canada/default.aspx . https://beta.theglobeandmail.com/news/politics/early-marijuana-sales-unbelievably-high-after-legalization-us-consultant- 77 Global Legal Monitor, “Germany: Medical Marijuana Act Enters into Force,” Library of Congress, March 13, 2017, http://ww- 30 Meera Senthilingam, “Germany joins the global experiment on marijuana legalization,” CNN, March 6, 2017, http://edi- /article34859318/?ref=http://www.theglobeandmail.com&. w.loc.gov/law/foreign-news/article/germany-medical-marijuana-act-enters-into-force/. 7 Andrew Joseph, “Want to test a marijuana-based drug? Expect a visit from the ‘men in black’,” Stat News, May 16, 2016, tion.cnn.com/2016/12/29/health/global-marijuana-cannabis-laws/. https://www.statnews.com/2016/05/16/marijuana-research/ 54 Russell Stanley, “Stepping Up to the Next Level,” Echelon Wealth Partners, February 3, 2017, http://research.echelonpart- 78 3FVUFST4UBGG i#SB[JMJTTVFTmSTUMJDFOTFGPSTBMFPGBDBOOBCJTCBTFEESVH wReuters, January 16, 2017, https://www.reu- 31 Russell Stanley, “The Canadian Cannabis Market For Investors,” Echelon Wealth Partners, Toronto, ON, July 2017. ners.com/research/content/Cannabis_Theme_Report.pdf. UFSTDPNBSUJDMFVTCSB[JMDBOOBCJTCSB[JMJTTVFTmSTUMJDFOTFGPSTBMFPGBDBOOBCJTCBTFEESVHJE64,#/"/ 8 Fred Cicetti, “How Marijuana Could Help Glaucoma,” Live Science, April 12, 2010, https://www.livescience.com/6232-marijuana-glaucoma.html. 32 Sam Galegos, “Marijuana, tobacco taxes could bring $2 billion (or more) to California,” ABC News, November 4, 2016, http://ww- 55 SherySheryll Ubelacker,Ubelacker, “Cannabis“Cannabis OilsOils AreAre LegalLegal AndAnd ReadyReady In Canada,Canada, StillStill NeedNeed HealthHealth CanadaCanada Approval,”Approval,” )VGmOHUPO1PTUHuffington Post, OctoberOctober 6, 2015,2015, 79 “Canadian Tilray to produce cannabis in Portugal,” Essential Business, September 24, 2018, https://www.essential-busi- 9 Maia Szalavitz, “Study: Smoking Marijuana Not Linked with Lung Damage,” Time, January 10, 2012, http://healthland.- w.abc10.com/news/politics/elections/marijuana-tobacco-taxes-could-bring-2-billion-to-california/290927107 http://IUUQXXXIVGmOHUPOQPTUDBQSPEVDFSTPGESJFENFEJDwww.huffingtonpost.ca/2015/10/05/producers-of-dried-medicBMQPUBXBJUJOHBQQSPWBMUPTFMMOPXMFHBMDBOOBCJTPJMT@O@al-pot-awaiting-approval-to-sell-now-legal-cannabis-oils_n_8247IUNM300.html. ness.pt/2018/09/24/canadian-tilray-to-produce-cannabis-in-portugal/. time.com/2012/01/10/study-smoking-marijuana-not-linked-with-lung-damage/. 33 Department of Justice, “Cannabis crime statistics in Canada, 2016,” Government of Canada, July 2017, accessed November 5, 56 “Cannabis Oils: A Look At What’s Available in Canada,” Leaf Science, February 21, 2016, https://www.leafscience.com- 80 $BUIZ,FBSOFZ i/BOBJNPCBTFENFEJDBMNBSJKVBOBDPNQBOZmSTUUPDVMUJWBUFQSPEVDUPVUTJEF$BOBEB wCBC News, September 10 Robert J. DeLorenzo, ”Marijuana and its receptor protein in brain control epilepsy,” Virginia Commonwealth University News, 2018, https://www.justice.gc.ca/eng/rp-pr/jr/jf-pf/2017/july01.html. /2016/02/21/cannabis-oils-look-whats-available-canada/. 7, 2017, http://www.cbc.ca/news/canada/british-columbia/tilray-expands-eu-1.4279274. accessed October 3 2017, http://www.news.vcu.edu/article/Marijuana_and_its_receptor_protein_in_brain_control_epilepsy. 34 Gavin Haines, “Mapped: The countries that smoke the most cannabis,” The Telegraph, April 20, 2017, http://www.telegraph.- 57 TyTylerler Nyquvest,Nyquvest, “Licensing“Licensing forfor cannabiscannabis oiloil lagslags behindbehind headyheady growth,”growth,” BBusinessusiness VancouverVancouver, OOctoberctober 3, 2017,2017, https://www.biv.comhttps://www.biv.com 81 Harrison Jordan, “A country-by-country guide to Canada’s cannabis exports,” Lift News, accessed October 3 2017, 11 CAM for Health Professionals, “Cannabis and Cannabinoids (PDQ®)–Health Professional Version,” National Cancer Institute, last co.uk/travel/maps-and-graphics/-mapped-the-countries-that-smoke-the-most-cannabis/. /article/2017/10/licensing-cannabis-oil-lags-behind-heady-growth/. https://news.lift.co/country-country-guide-canadas-cannabis-exports/ NPEJmFE0DUPCFS IUUQTXXXDBODFSHPWBCPVUDBODFSUSFBUNFOUDBNIQDBOOBCJTQER 35 Amanda Reiman, “Cannabis as a substitute for alcohol and other drugs,” Harm Reduction Journal, 6 (2009): 35, https://www.nc- 58 Nyquvest, “Licensing for cannabis”. 82 Stanley, “Stepping Up to the Next Level.” 12 Mind & Mood, “Medical marijuana and the mind,” Harvard Mental Health Letter, April 2010, https://www.health.harvard.edu/- bi.nlm.nih.gov/pmc/articles/PMC2795734. mind-and-mood/medical-marijuana-and-the-mind 59 “Market Data,” Health Canada, accessed October 3 2017, https://www.canada.ca/en/health-canada/ser- 83 https://www.ctvnews.ca/business/supply-shortages-plague-canada-s-new-cannabis-marketplace-1.4160476 36 6OJUFE/BUJPOT0GmDFPO%SVHTBOE$SJNF i8PSME%SVH3FQPSU w6/0%$ .BZ United Nations publication, Sales vices/drugs-health-products/medical-use-marijuana/licensed-producers/market-data.html. 13 “Marijuana may help stave off Alzhemier’s,” NBC News, January 7, 2013, http://www.nbcnews.com/id/15145917/ns/health-alzhei- No. E.16.XI.7), https://www.unodc.org/doc/w dr2016/WORLD_DRUG_REPORT_2016_web.pdf. 84 https://nationalpost.com/news/ontario-government-says-pot-deliveries-back-on-track-after-backlog-cleared mers_disease/t/marijuana-may-help-stave-alzheimers/#.UJqzy2l25Jl. 60 Daniel White, “Colorado's Marijuana Industry Had a $2.39 Billion Impact Last Year: Report”, Time, October 26, 2016, http://- 85 37 Mary O’Hara, “New Poll Finds Majority of Americans Have Smoked Marijuana,” NBC News, April 17, 2017, https://www.nbc- time.com/4546522/colorado-marijuana-industry-economic-impact/. Melia Robinson, “The legal weed market is growing as fast as broadband internet in the 2000s,” Business Insider, March 1, 2017, 14 Amy Norton, “Marijuana may ease multiple sclerosis symptoms,” Reuters, May 14, 2012, http://www.reuters.com/article/us-mari- OFXTDPNOFXTVTOFXTOFXQPMMmOETNBKPSJUZBNFSJDBOTIBWFTNPLFEQPUO http://www.businessinsider.de/arcview-north-america-marijuana-industry-revenue-2016-2017-1?r=US&IR=T. juana-sclerosis/marijuana-may-ease-multiple-sclerosis-symptoms-idUSBRE84D0RS20120514. 61 The Canadian Press, “Health Canada swamped with medical marijuana business applications,” CBC, June 4, 2014, http://ww- 86 38 Jessica Glenza, “Ten million more Americans smoke marijuana now than 12 years ago: study,” The Guardian, September 1, w.cbc.ca/news/canada/health-canada-swamped-with-medical-marijuana-business-applications-1.2661070. .FMJB3PCJOTPO i5IFNBSJKVBOBJOEVTUSZhTmSTUCJMMJPOhVOJDPSOhJTB$BOBEJBODPNQBOZZPVhWFQSPCBCMZOFWFSIFBSEPG wBusiness 15 Alison Mack & Janet E. Joy, “Marijuana as Medicine? The Science Beyond the Controversy”, The National Academies Press, 2000. 2016, https://www.theguardian.com/society/2016/sep/01/marijuana-use-americans-study-lancet-legalization. Insider, February 2, 2017, http://www.businessinsider.de/canopy-growth-1-billion-reve- 62 Russell Stanley, “Cannabis Weekly,” Echelon Wealth Partners, August 28, 2017, http://research.echelonpartners.com/research/- nue-giant-marijuana-industry-2017-2?r=US&IR=T. 16 Theresa Liu et al., “Marijuana use in hepatitis C infection does not affect liver biopsy histology or treatment outcomes,” Canadian Journal 39 “Canada’s biggest cannabis company just made $321M acquisition,” The Cannabist, December 1, 2016, http://www.thecanna- content/Cannabis_Weekly_Aug_28_17.pdf. of Gastroentorology and Hepatology, 28, no. 7, (Jul/Aug 2014): 381–384, https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4144456/ bist.co/2016/12/01/canopy-growth-corp-canada-biggest-marijuana-company-acquisition/68594/. 63 Stanley, “Cannabis Weekly”. Forward Looking Statements 17 8BTFFN"INFE4FZNPVS,BU[ i5IFSBQFVUJDVTFPG$BOOBCJTJOJOnBNNBUPSZCPXFMEJTFBTF wGastroenterology & Hepatolo- 40 Andrew Hathaway, “The Legal History and Cultural Experience of Cannabis,” Visions Journal, 5 no. 4 (2009): 12, quoted in “Here to Help”, Forward-looking statements are based on current expectations, estimates, forecasts and projections based on beliefs and gy, 12, no. 11 (Nov 2016): 668–679, https://www.ncbi.nlm.nih.gov/pmc/articles/PMC5193087/. accessed October 3 2017, http://www.hereto help.bc.ca/visions/cannabis-vol5/the-legal-history-and-cultural-experience-of-cannabis. 64 “Legalized Cannabis: Fiscal Considerations,” Parliamentary1BSMJBNFOUBSZ#VEHFU0GmDFS Budget Officer, November 1, 2016, http://www.pbo-dpb.gc.ca/web/- assumptions made by author. These statements involve risks and uncertainties and are not guarantees of future performance or default/files/Documents/Reports/2016/Legalized%20EFGBVMUmMFT%PDVNFOUT3FQPSUT-FHBMJ[FE$BOOBCJT-FHBM Cannabis/Legalized%20Canabis%20Fiscal%20Considerations_EN.pdf.J[FE$BOBCJT'JTDBM$POTJEFSBUJPOT@&/QEG 18 &UIBO#3VTTP i$BOOBCJOPJETJOUIFNBOBHFNFOUPGEJGmDVMUUPUSFBUQBJO wTherapeutical Clinical Risk Management, 4 no. 1 41 Chris Morris, “The next big billion-dollar cannabis markets investors are rushing to,” CNBC, October 21, 2016, https://www.cn- results and no assurance can be given that these estimates and expectations will prove to have been correct, and actual (Feb 2008): 245–259, https://www.ncbi.nlm.nih.gov/pmc/articles/PMC2503660/. bc.com/2016/10/21/the-next-big-billion-dollar-cannabis-markets-investors-are-rushing-to.html. 65 Vanmala Subramaniam, “First-mover advantage,” VICE News, May 15, 2017, https://news.vice.com/story/canadian-weed-pro- outcomes and results may differ materially from what is expressed, implied or projected in such forward-looking statements. ducers-will-dominate-the-global-marijuana-market 5IFPQJOJPOTFYQSFTTFEJOUIJTSFQPSUBSFUIFPQJOJPOTPGUIFBVUIPSBOESFBEFSTTIPVMEOPUBTTVNFUIFZSFnFDUUIFPQJOJPOTPS 19 42 Priyamvada Sharma et al., “Chemistry, Metabolism, and Toxicology of Cannabis: Clinical Implications,” Iranian Journal of Politics, “Highlights from the federal marijuana task force report,” CBC, December 13, 2016, http://www.cbc.ca/news/poli- SFDPNNFOEBUJPOTPG&DIFMPO8FBMUI1BSUOFST*ODPSJUTBGmMJBUFT"TTVNQUJPOT PQJOJPOTBOEFTUJNBUFTDPOTUJUVUFUIFBVUIPSTKVEHNFOU 66 Psychiatry, 7, no. 4 (Fall 2012): 149–156, https://www.ncbi.nlm.nih.gov MC2828614/. tics/marijuana-task-force-highlights-1.3894219. Adam"EBN"CSBNT i*TSBFM&YQFDUT)JHI1SPmUT'SPN.FEJDBM$BOOBCJT Abrams, “Israel Expects High Profits From Medical Cannabis Exports,”&YQPSUT w Israel Today, August 22, 2017, http://www.israelto- as of the date of this material and are subject to change without notice. We do not warrant the completeness or accuracy of this day.co.il/NewsItem/tabid/178/nid/32231/Default.aspx. material, and it should not be relied upon as such. Before acting on any recommendation, you should consider whether it is suitable 20 1SBLBTI/BHBSLBUUJFUBM i$BOOBCJOPJETBTOPWFMBOUJJOnBNNBUPSZESVHT w , 1 no. 7 (October, 2009): 43 Future Medicinal Chemistry “The Cannabis Act: An overview,” Dentons, April 18, 2017, https://www.dentons.com/en/insights/alerts/2017/april/18/the-cannabis-act-an-overview. for your particular circumstances and, if necessary, seek professional advice. Past performance is not indicative of future results. 1333–1349, https://www.ncbi.nlm.nih.gov/pmc/articles/P- MC2828614/. 67 Vanmala Subramaniam, “First-mover advantage.” 44 Rob Ferguson, “Canada’s premiers discuss delaying the legalization of marijuana,” The Star, July 18, 2017, https://www.the- These estimates and expectations will prove to have been correct, and actual outcomes and results may differ materially from what 21 Sarah Trumble, “Timeline of State Marijuana Legalization Laws,” The Third Way, May 2, 2016, http://www.thirdway.org/infograph- star.com/news/queenspark/2017/07/18/canadas-premiers-discuss-delaying-the-legalization-of-marijuana.html. 68 Matt Lamers “Canadian exports of medical marijuana soar as producers seek overseas toehold,” Marijuana Business Daily, is expressed, implied or projected in such forward-looking statements. ic/timeline-of-state-marijuana-legalization-laws. August 15, 2017, https://mjbizdaily.com/canadian-ex-ports-medical-marijuana-soar-producers-seek-overseas-toehold/. 45 Ferguson, “Canada’s premiers”.

echelonpartners.com 21 The Canadian Cannabis Story: A Generational Investment Opportunity

22 “Market Data”, Health Canada, accessed February 7, 2018, https://www.canada.ca/en/health-canada/services/drugs-medica- 46 Sean Williams, “Canada's Recreational Marijuana Approach Is Pure Genius, but It Would Never Work in the US,” Fool, accessed 69 Will Yakowicz, “Illegal Pot Sales Topped $46.4 Billion in 2016, and That's Good News for Marijuana Entrepreneurs,” Inc., January About Echelon Wealth Partners tion/cannabis/licensed-producers/market-data.html. on October 3 2017, https://www.fool.com/investing/2017/07/09/canadas-recreational-marijuana-approach-is-pure-ge.aspx 17, 2017, https://www.inc.com/will-yakowicz/marijuana-sales-2016-50-billion.html. 8FSFBMFBEJOHJOEFQFOEFOU $BOBEJBOPXOFEBOEPQFSBUFEXFBMUINBOBHFNFOUBOEDBQJUBMNBSLFUTmSN LOPXOGPSPVSDMJFOU centered approach and entrepreneurial spirit. Echelon is a compelling option for investors seeking unbiased investment solutions, 23 “Market Data”, Health Canada, accessed February 7, 2018. 47 Nick Westoll, “Marijuana to be sold through private retailers, online in Ontario,” Global News, August 13, 2018, https://global- 70 Yakowicz, “Illegal Pot”. professional management and unparalleled service. We aim to build lifetime relationships and deliver superior service. Our news.ca/news/4385166/marijuana-sales-ontario/. 24 “Number of Physicians by Province/Territory and Specialty, Canada, 2018,” Canadian Medical Association, accessed October 71 DeDebrabra Borchardt,Borchardt, “Marijuana“Marijuana IndustryIndustry ProjectedProjected ToTo CreateCreate MoreMore JobsJobs ThanThan ManufacturingManufacturing By 2020,”2020,” FForbesorbes, FeFebruarybruary 22,22, 2017,2017, https://whttps://w- mOBODJBMQSPGFTTJPOBMTIBWFUIFGSFFEPNUPPGGFSUSVMZJOEFQFOEFOUJOWFTUNFOUBEWJDF BMXBZTQVUUJOHUIFJSDMJFOUTOFFETmSTU8F 1 The DEA Museum, “Cannabis, Coca, & Poppy: Nature’s Addictive Plants,” DEA Museum, accessed October 3, 2017, https://ww- 12, 2018, https://www.cma.ca/Assets/assets-library/document/en/advocacy/01-physicians-by-specialty-province-e.pdf. 48 Debra Borchardt, “Marijuana Sales Totaled $6.7 Billion In 2016,” Forbes, January 3, 2017, https://www.forbes.com/sites/debra- ww.ww.forbes.com/sites/debraborchardt/2017/02/22/marijuana-industry-projected-to-create-more-jobs-than-manufacturing-by-2020/. BSFBMTPBHSPXJOHmSN XJUINPSFUIBOCJMMJPOJOBTTFUTVOEFSBENJOJTUSBUJPOBOENBOBHFNFOU8FTFSWJDFDMJFOUTBDSPTT w.deamuseum.org/ccp/cannabis/production-distribution.html. borchardt/2017/01/03/marijuana-sales-totaled-6-7-billion-in-2016/#69a3814e75e3 $BOBEBGSPNPVSPGmDFTJO5PSPOUP 0BLWJMMF 0UUBXB -POEPO .POUSFBM 4BTLBUPPO &ENPOUPO $BMHBSZ 7BODPVWFSBOE7JDUPSJB 25 72 “Get the facts on the opioid crisis in Canada,” Health Canada, accessed September 10, 2018, https://www.canada.ca/en/ser- Lisa Rough, “The Cole Memo: What Is It and What Does It Mean?” Leafly.com, September 14, 2017, https://www.leafly- Copyright © 2018 Echelon Wealth Partners. All rights reserved. 2 Erowid.org, “History of marijuana & cannabis use and abuse,” Narconon.org, accessed October 3, 2017, http://www.nar- vices/health/campaigns/drug-prevention.html. 49 Marijuana Business News, “Colorado marijuana sales top $750 million at 2017 midpoint,” Colorado Rocky Mountain High News, .com/news/cannabis-101/what-is-the-cole-memo. conon.org/drug-information/marijuana-timeline.html. August 26, 2017, http://coloradorockymountainhightours.com/colorado-marijuana-sales/. 26 Canadian Institute for Health Information, “Pan-Canadian Trends in the Prescribing of Opioids, 2012 to 2016,” CIHI, Ottawa, ON, 2017, 73 Leafly Staff, “Sessions Rescinds Cole Memo, Which Protected State-Legal Cannabis from Feds,” Leafly.com, updated January 5, 3 Erowid.org, “Cannabis, Cocoa & Poppy”. accessed October 20, 2018, https://www.cihi.ca/sites/default/files/document/pan-canadian-trends-opioid-prescribing-2017-en-web.pdf. 50 Daniel White, “Colorado's Marijuana Industry Had a $2.39 Billion Impact Last Year: Report”, Time, October 26, 2016, http://- 2018, https://www.leafly.com/news/politics/sessions-rescinds-cole-memo-which-protected-state-legal-cannabis-from-feds. time.com/4546522/colorado-marijuana-industry-economic-impact/. 4 Daniel Leblanc, “Ottawa to legalize outdoor cannabis crops,” The Globe and Mail, June 26, 2018, https://www.theglobeand- 27 International Narcotic Control Board, “Technical report: Estimated World Requirements for 2018 – Statistics for 2016,” United Nations, New York, 74 DeDebrabra Borchardt,Borchardt, “Marijuana“Marijuana IndustryIndustry ProjectedProjected ToTo CreateCreate MoreMore JobsJobs ThanThan ManufacturingManufacturing By 2020,”2020,” FForbesorbes, FeFebruarybruary 22,22, 2017,2017, https://whttps://w- mail.com/politics/article-outdoor-cannabis-crops-soon-to-be-legal-in-canada/. 2018, accessed October 21, 2018, https://www.incb.org/incb/en/narcotic-drugs/Technical_Reports/2017/narcotic-drugs-technical-report-2017.html. 51 .FMJB3PCJOTPO i5IFNBSJKVBOBJOEVTUSZhTmSTUCJMMJPOhVOJDPSOhJTB$BOBEJBODPNQBOZZPVhWFQSPCBCMZOFWFSIFBSEPG wBusiness ww.ww.forbes.com/sites/debraborchardt/2017/02/22/marijuana-industry-projected-to-create-more-jobs-than-manufacturing-by-2020/. Insider, February 2, 2017, http://www.businessinsider.de/canopy-growth-1-billion-revenue-giant-marijuana-industry-2017-2?r=US&IR=T. 5 Leigh Coulter, June 1, 2018, “Why cannabis growers are increasingly moving toward greenhouse facilities”, BNNBloomberg.com 28 Chris Morris, “The next big billion-dollar cannabis markets investors are rushing to,” CNBC, October 21, 2016, https://www.cnbc.com 75 Meera Senthilingam, “Germany joins the global experiment on marijuana legalization,” CNN, March 6, 2017, http://edi- https://www.bnnbloomberg.ca/video/why-cannabis-growers-are-increasingly-moving-toward-greenhouse-facilities~1408210, /2016/10/21/the-next-big-billion-dollar-cannabis-markets-investors-are-rushing-to.html. 52 “Recreational Marijuana - Insights and opportunities,” Deloitte, accessed October 3 2017, https://www2.deloitte.com/content/dam/Deloitte tion.cnn.com/2016/12/29/health/global-marijuana-cannabis-laws/index.html. Live Broadcast/Video File, 4:00. /ca/Documents/Analytics/ca-en-analytics-DELOITTE%20Recreational%20Marijuana%20POV%20-%20ENGLISH%20FINAL_AODA.pdf. 29 “Medicinal cannabis crops now legal in Australia,” The Guardian, accessed October 3, 2017, https://www.theguardian.com/soci- 76 Stanley, “Stepping Up to the Next Level.” 6 “Prescribing Physician Trends,” citing its 2016 Physician Survey, CanniMed Therapeutics, accessed January 15, 2017, https://w- ety/2016/oct/30/medicinal-cannabis-crops-now-legal-in-australia. 53 Andy Blatchford, “Early marijuana sales ‘unbelievably high’ after legalization: US consultant,” The Globe and Mail, April 30, 2017, ww.cannimedtherapeutics.com/investors/overview/the-medical-cannabis-market-in-canada/default.aspx . https://beta.theglobeandmail.com/news/politics/early-marijuana-sales-unbelievably-high-after-legalization-us-consultant- 77 Global Legal Monitor, “Germany: Medical Marijuana Act Enters into Force,” Library of Congress, March 13, 2017, http://ww- 30 Meera Senthilingam, “Germany joins the global experiment on marijuana legalization,” CNN, March 6, 2017, http://edi- /article34859318/?ref=http://www.theglobeandmail.com&. w.loc.gov/law/foreign-news/article/germany-medical-marijuana-act-enters-into-force/. 7 Andrew Joseph, “Want to test a marijuana-based drug? Expect a visit from the ‘men in black’,” Stat News, May 16, 2016, tion.cnn.com/2016/12/29/health/global-marijuana-cannabis-laws/. https://www.statnews.com/2016/05/16/marijuana-research/ 54 Russell Stanley, “Stepping Up to the Next Level,” Echelon Wealth Partners, February 3, 2017, http://research.echelonpart- 78 Reuters3FVUFST4UBGG i#SB[JMJTTVFTmSTUMJDFOTFGPSTBMFPGBDBOOBC Staff, “Brazil issues first license for sale of a cannabis-basedJTCBTFEESVH w drug,” Reuters, January 16, 2017, https://www.reu- 31 Russell Stanley, “The Canadian Cannabis Market For Investors,” Echelon Wealth Partners, Toronto, ON, July 2017. ners.com/research/content/Cannabis_Theme_Report.pdf. ters.com/article/us-brazil-cannabis/brazil-issues-first-license-UFSTDPNBSUJDMFVTCSB[JMDBOOBCJTCSB[JMJTTVFTmSTUMJDFOTFfor-sale-of-a-cannabis-based-drug-idUSKBN1502AN.GPSTBMFPGBDBOOBCJTCBTFEESVHJE64,#/"/ 8 Fred Cicetti, “How Marijuana Could Help Glaucoma,” Live Science, April 12, 2010, https://www.livescience.com/6232-marijuana-glaucoma.html. 32 Sam Galegos, “Marijuana, tobacco taxes could bring $2 billion (or more) to California,” ABC News, November 4, 2016, http://ww- 55 Sheryl Ubelacker, “Cannabis Oils Are Legal And Ready In Canada, Still Need Health Canada Approval,” )VGmOHUPO1PTU, October 6, 2015, 79 “Canadian Tilray to produce cannabis in Portugal,” Essential Business, September 24, 2018, https://www.essential-busi- 9 Maia Szalavitz, “Study: Smoking Marijuana Not Linked with Lung Damage,” Time, January 10, 2012, http://healthland.- w.abc10.com/news/politics/elections/marijuana-tobacco-taxes-could-bring-2-billion-to-california/290927107 IUUQXXXIVGmOHUPOQPTUDBQSPEVDFSTPGESJFENFEJDBMQPUBXBJUJOHBQQSPWBMUPTFMMOPXMFHBMDBOOBCJTPJMT@O@IUNM ness.pt/2018/09/24/canadian-tilray-to-produce-cannabis-in-portugal/. time.com/2012/01/10/study-smoking-marijuana-not-linked-with-lung-damage/. 33 Department of Justice, “Cannabis crime statistics in Canada, 2016,” Government of Canada, July 2017, accessed November 5, 56 “Cannabis Oils: A Look At What’s Available in Canada,” Leaf Science, February 21, 2016, https://www.leafscience.com- 80 Cathy$BUIZ,FBSOFZ i/BOBJNPCBTFENFEJDBMNBSJKVBOBDPNQBOZmSTUUP Kearney, “Nanaimo-based medical marijuana company first to DVMUJWBUFQSPEVDUPVUTJEF$BOBEB wcultivate product outside Canada,” CBC News, September 10 Robert J. DeLorenzo, ”Marijuana and its receptor protein in brain control epilepsy,” Virginia Commonwealth University News, 2018, https://www.justice.gc.ca/eng/rp-pr/jr/jf-pf/2017/july01.html. /2016/02/21/cannabis-oils-look-whats-available-canada/. 7, 2017, http://www.cbc.ca/news/canada/british-columbia/tilray-expands-eu-1.4279274. accessed October 3 2017, http://www.news.vcu.edu/article/Marijuana_and_its_receptor_protein_in_brain_control_epilepsy. 34 Gavin Haines, “Mapped: The countries that smoke the most cannabis,” The Telegraph, April 20, 2017, http://www.telegraph.- 57 Tyler Nyquvest, “Licensing for cannabis oil lags behind heady growth,” Business Vancouver, October 3, 2017, https://www.biv.com 81 Harrison Jordan, “A country-by-country guide to Canada’s cannabis exports,” Lift News, accessed October 3 2017, 11 CAM for Health Professionals, “Cannabis and Cannabinoids (PDQ®)–Health Professional Version,” National Cancer Institute, last co.uk/travel/maps-and-graphics/-mapped-the-countries-that-smoke-the-most-cannabis/. /article/2017/10/licensing-cannabis-oil-lags-behind-heady-growth/. https://news.lift.co/country-country-guide-canadas-cannabis-exports/ NPEJmFE0DUPCFS IUUQTXXXDBODFSHPWBCPVUDBODFSUSFBUNFOUDBNIQDBOOBCJTQER 35 Amanda Reiman, “Cannabis as a substitute for alcohol and other drugs,” Harm Reduction Journal, 6 (2009): 35, https://www.nc- 58 Nyquvest, “Licensing for cannabis”. 82 Stanley, “Stepping Up to the Next Level.” 12 Mind & Mood, “Medical marijuana and the mind,” Harvard Mental Health Letter, April 2010, https://www.health.harvard.edu/- bi.nlm.nih.gov/pmc/articles/PMC2795734. mind-and-mood/medical-marijuana-and-the-mind 59 “Market Data,” Health Canada, accessed October 3 2017, https://www.canada.ca/en/health-canada/ser- 83 https://www.ctvnews.ca/business/supply-shortages-plague-canada-s-new-cannabis-marketplace-1.4160476 36 6OJUFE/BUJPOT0GmDFPO%SVHTBOE$SJNF i8PSME%SVH3FQPSU w6/0%$ .BZ United Nations publication, Sales vices/drugs-health-products/medical-use-marijuana/licensed-producers/market-data.html. 13 “Marijuana may help stave off Alzhemier’s,” NBC News, January 7, 2013, http://www.nbcnews.com/id/15145917/ns/health-alzhei- No. E.16.XI.7), https://www.unodc.org/doc/w dr2016/WORLD_DRUG_REPORT_2016_web.pdf. 84 https://nationalpost.com/news/ontario-government-says-pot-deliveries-back-on-track-after-backlog-cleared mers_disease/t/marijuana-may-help-stave-alzheimers/#.UJqzy2l25Jl. 60 Daniel White, “Colorado's Marijuana Industry Had a $2.39 Billion Impact Last Year: Report”, Time, October 26, 2016, http://- 85 37 Mary O’Hara, “New Poll Finds Majority of Americans Have Smoked Marijuana,” NBC News, April 17, 2017, https://www.nbc- time.com/4546522/colorado-marijuana-industry-economic-impact/. Melia Robinson, “The legal weed market is growing as fast as broadband internet in the 2000s,” Business Insider, March 1, 2017, 14 Amy Norton, “Marijuana may ease multiple sclerosis symptoms,” Reuters, May 14, 2012, http://www.reuters.com/article/us-mari- OFXTDPNOFXTVTOFXTOFXQPMMmOETNBKPSJUZBNFSJDBOTIBWFTNPLFEQPUO http://www.businessinsider.de/arcview-north-america-marijuana-industry-revenue-2016-2017-1?r=US&IR=T. juana-sclerosis/marijuana-may-ease-multiple-sclerosis-symptoms-idUSBRE84D0RS20120514. 61 The Canadian Press, “Health Canada swamped with medical marijuana business applications,” CBC, June 4, 2014, http://ww- 86 38 Jessica Glenza, “Ten million more Americans smoke marijuana now than 12 years ago: study,” The Guardian, September 1, w.cbc.ca/news/canada/health-canada-swamped-with-medical-marijuana-business-applications-1.2661070. Melia.FMJB3PCJOTPO i5IFNBSJKVBOBJOEVTUSZhTmSTUCJMMJPOhVOJD Robinson, “The marijuana industry's first $1 billion 'unicPSOhJTB$BOBEJBODPNQBOZZPVhWFQSPCBCMZOFWFSIFBSEPG worn' is a Canadian company you've probably never heard of,” BusinessBusiness 15 Alison Mack & Janet E. Joy, “Marijuana as Medicine? The Science Beyond the Controversy”, The National Academies Press, 2000. 2016, https://www.theguardian.com/society/2016/sep/01/marijuana-use-americans-study-lancet-legalization. InInsidersider, February 2, 2017, http://www.businessinsider.de/canopy-growth-1-billion-reve- 62 Russell Stanley, “Cannabis Weekly,” Echelon Wealth Partners, August 28, 2017, http://research.echelonpartners.com/research/- nue-giant-marijuana-industry-2017-2?r=US&IR=T. 16 Theresa Liu et al., “Marijuana use in hepatitis C infection does not affect liver biopsy histology or treatment outcomes,” Canadian Journal 39 “Canada’s biggest cannabis company just made $321M acquisition,” The Cannabist, December 1, 2016, http://www.thecanna- content/Cannabis_Weekly_Aug_28_17.pdf. of Gastroentorology and Hepatology, 28, no. 7, (Jul/Aug 2014): 381–384, https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4144456/ bist.co/2016/12/01/canopy-growth-corp-canada-biggest-marijuana-company-acquisition/68594/. 63 Stanley, “Cannabis Weekly”. Forward Looking Statements 17 8BTFFN"INFE4FZNPVS,BU[ i5IFSBQFVUJDVTFPG$BOOBCJTJOJOnBNNBUPSZCPXFMEJTFBTF wGastroenterology & Hepatolo- 40 Andrew Hathaway, “The Legal History and Cultural Experience of Cannabis,” Visions Journal, 5 no. 4 (2009): 12, quoted in “Here to Help”, Forward-looking statements are based on current expectations, estimates, forecasts and projections based on beliefs and gy, 12, no. 11 (Nov 2016): 668–679, https://www.ncbi.nlm.nih.gov/pmc/articles/PMC5193087/. accessed October 3 2017, http://www.hereto help.bc.ca/visions/cannabis-vol5/the-legal-history-and-cultural-experience-of-cannabis. 64 “Legalized Cannabis: Fiscal Considerations,” 1BSMJBNFOUBSZ#VEHFU0GmDFS, November 1, 2016, http://www.pbo-dpb.gc.ca/web/- assumptions made by author. These statements involve risks and uncertainties and are not guarantees of future performance or EFGBVMUmMFT%PDVNFOUT3FQPSUT-FHBMJ[FE$BOOBCJT-FHBMJ[FE$BOBCJT'JTDBM$POTJEFSBUJPOT@&/QEG 18 &UIBO#3VTTP i$BOOBCJOPJETJOUIFNBOBHFNFOUPGEJGmDVMUUPUSFBUQBJO wTherapeutical Clinical Risk Management, 4 no. 1 41 Chris Morris, “The next big billion-dollar cannabis markets investors are rushing to,” CNBC, October 21, 2016, https://www.cn- results and no assurance can be given that these estimates and expectations will prove to have been correct, and actual (Feb 2008): 245–259, https://www.ncbi.nlm.nih.gov/pmc/articles/PMC2503660/. bc.com/2016/10/21/the-next-big-billion-dollar-cannabis-markets-investors-are-rushing-to.html. 65 Vanmala Subramaniam, “First-mover advantage,” VICE News, May 15, 2017, https://news.vice.com/story/canadian-weed-pro- outcomes and results may differ materially from what is expressed, implied or projected in such forward-looking statements. ducers-will-dominate-the-global-marijuana-market The5IFPQJOJPOTFYQSFTTFEJOUIJTSFQPSUBSFUIFPQJOJPOTPGUIFB opinions expressed in this report are the opinions of the authorVUIPSBOESFBEFSTTIPVMEOPUBTTVNFUIFZSFnFDUUIFPQJOJPOTPS and readers should not assume they reflect the opinions or 19 42 Priyamvada Sharma et al., “Chemistry, Metabolism, and Toxicology of Cannabis: Clinical Implications,” Iranian Journal of Politics, “Highlights from the federal marijuana task force report,” CBC, December 13, 2016, http://www.cbc.ca/news/poli- recommendationsSFDPNNFOEBUJPOTPG&DIFMPO8FBMUI1BSUOFST*ODPSJUTBGmMJBUF of Echelon Wealth Partners Inc. or its affiliatesT"TTVNQUJPOT PQJOJPOTBOEFTUJNBUFTDPOTUJUVUFUIFBVUIPST. Assumptions, opinions and estimates constitute the author’s juKVEHNFOUdgment 66 Psychiatry, 7, no. 4 (Fall 2012): 149–156, https://www.ncbi.nlm.nih.gov MC2828614/. tics/marijuana-task-force-highlights-1.3894219. "EBN"CSBNT i*TSBFM&YQFDUT)JHI1SPmUT'SPN.FEJDBM$BOOBCJT&YQPSUT wIsrael Today, August 22, 2017, http://www.israelto- as of the date of this material and are subject to change without notice. We do not warrant the completeness or accuracy of this day.co.il/NewsItem/tabid/178/nid/32231/Default.aspx. material, and it shouldshould notnot bebe reliedrelied uponupon asas such.such. BeforeBefore actingacting onon anyany recommendation,recommendation, youyou shouldshould considerconsider whetherwhether it isis suitsuitaableble 20 1SBLBTI/BHBSLBUUJFUBM i$BOOBCJOPJETBTOPWFMBOUJJOnBNNBUPSZESVHT w , 1 no. 7 (October, 2009): 43 Future Medicinal Chemistry “The Cannabis Act: An overview,” Dentons, April 18, 2017, https://www.dentons.com/en/insights/alerts/2017/april/18/the-cannabis-act-an-overview. for your particular circumstances and, if necessary, seek professional advice. Past performance is not indicative of future results. 1333–1349, https://www.ncbi.nlm.nih.gov/pmc/articles/P- MC2828614/. 67 Vanmala Subramaniam, “First-mover advantage.” 44 Rob Ferguson, “Canada’s premiers discuss delaying the legalization of marijuana,” The Star, July 18, 2017, https://www.the- These estimates and expectations will prove to have been correct, and actual outcomes and results may differ materially from what 21 Sarah Trumble, “Timeline of State Marijuana Legalization Laws,” The Third Way, May 2, 2016, http://www.thirdway.org/infograph- star.com/news/queenspark/2017/07/18/canadas-premiers-discuss-delaying-the-legalization-of-marijuana.html. 68 Matt Lamers “Canadian exports of medical marijuana soar as producers seek overseas toehold,” Marijuana Business Daily, is expressed, implied or projected in such forward-looking statements. ic/timeline-of-state-marijuana-legalization-laws. August 15, 2017, https://mjbizdaily.com/canadian-ex-ports-medical-marijuana-soar-producers-seek-overseas-toehold/. 45 Ferguson, “Canada’s premiers”.

echelonpartners.com 22 The Canadian Cannabis Story: A Generational Investment Opportunity

22 “Market Data”, Health Canada, accessed February 7, 2018, https://www.canada.ca/en/health-canada/services/drugs-medica- 46 Sean Williams, “Canada's Recreational Marijuana Approach Is Pure Genius, but It Would Never Work in the US,” Fool, accessed 69 Will Yakowicz, “Illegal Pot Sales Topped $46.4 Billion in 2016, and That's Good News for Marijuana Entrepreneurs,” Inc., January About Echelon WealthWealth Partners tion/cannabis/licensed-producers/market-data.html. on October 3 2017, https://www.fool.com/investing/2017/07/09/canadas-recreational-marijuana-approach-is-pure-ge.aspx 17, 2017, https://www.inc.com/will-yakowicz/marijuana-sales-2016-50-billion.html. 8FSFBMFBEJOHJOEFQFOEFOU $BOBEJBOPXOFEBOEPQFSBUFEXFBMUIWe’re a leading independent, Canadian-owned and operated wealth NBOBHFNFOUBOEDBQJUBMNBSLFUTmSN LOPXOGPSPVSDMJFOUmanagement and capital markets firm, known for our client- centered approach and entrepreneurial spirit. Echelon is a compelling option for investors seeking unbiased investment solutions, 23 “Market Data”, Health Canada, accessed February 7, 2018. 47 Nick Westoll, “Marijuana to be sold through private retailers, online in Ontario,” Global News, August 13, 2018, https://global- 70 Yakowicz, “Illegal Pot”. professionalprofessional managementmanagement andand unparalleledunparalleled service.service. WeWe aimaim to buildbuild lifetimelifetime relationshipsrelationships andand deliverdeliver superiorsuperior service.service. OurOur news.ca/news/4385166/marijuana-sales-ontario/. 24 “Number of Physicians by Province/Territory and Specialty, Canada, 2018,” Canadian Medical Association, accessed October 71 Debra Borchardt, “Marijuana Industry Projected To Create More Jobs Than Manufacturing By 2020,” Forbes, February 22, 2017, https://w- mOBODJBMfinancialQSPGFTTJPOBMTIBWFUIFGSFFEPNUPPGGFSUSVMZJOEFQFOEFOUJOWF professionals have the freedom to offer truly independent inveTUNFOUBEWJDF BMXBZTQVUUJOHUIFJSDMJFOUTOFFETmSTU8Fstment advice, always putting their clients’ needs first. We 1 The DEA Museum, “Cannabis, Coca, & Poppy: Nature’s Addictive Plants,” DEA Museum, accessed October 3, 2017, https://ww- 12, 2018, https://www.cma.ca/Assets/assets-library/document/en/advocacy/01-physicians-by-specialty-province-e.pdf. 48 Debra Borchardt, “Marijuana Sales Totaled $6.7 Billion In 2016,” Forbes, January 3, 2017, https://www.forbes.com/sites/debra- ww.forbes.com/sites/debraborchardt/2017/02/22/marijuana-industry-projected-to-create-more-jobs-than-manufacturing-by-2020/. BSFBMTPBHSPXJOHmSN XJUINPSFUIBOCJMMJPOJOBTTFUTVOEare also a growing firm, with more than $4 billion in assets undFSBENJOJTUSBUJPOBOENBOBHFNFOU8FTFSWJDFDMJFOUTBDSPTTer administration and management. We service clients across w.deamuseum.org/ccp/cannabis/production-distribution.html. borchardt/2017/01/03/marijuana-sales-totaled-6-7-billion-in-2016/#69a3814e75e3 $BOBEBGSPNPVSPGmDFTJO5PSPOUP 0BLWJMMF 0UUBXB -POEPO .Canada from our offices in Toronto, Oakville, Ottawa, London, MPOUSFBM 4BTLBUPPO &ENPOUPO $BMHBSZ 7BODPVWFSBOE7JDUPSJBontreal, Saskatoon, Edmonton, Calgary, Vancouver and Victoria. 25 72 “Get the facts on the opioid crisis in Canada,” Health Canada, accessed September 10, 2018, https://www.canada.ca/en/ser- Lisa Rough, “The Cole Memo: What Is It and What Does It Mean?” Leafly.com, September 14, 2017, https://www.leafly- Copyright © 2018 Echelon Wealth Partners. All rights reserved. 2 Erowid.org, “History of marijuana & cannabis use and abuse,” Narconon.org, accessed October 3, 2017, http://www.nar- vices/health/campaigns/drug-prevention.html. 49 Marijuana Business News, “Colorado marijuana sales top $750 million at 2017 midpoint,” Colorado Rocky Mountain High News, .com/news/cannabis-101/what-is-the-cole-memo. conon.org/drug-information/marijuana-timeline.html. August 26, 2017, http://coloradorockymountainhightours.com/colorado-marijuana-sales/. 26 Canadian Institute for Health Information, “Pan-Canadian Trends in the Prescribing of Opioids, 2012 to 2016,” CIHI, Ottawa, ON, 2017, 73 Leafly Staff, “Sessions Rescinds Cole Memo, Which Protected State-Legal Cannabis from Feds,” Leafly.com, updated January 5, 3 Erowid.org, “Cannabis, Cocoa & Poppy”. accessed October 20, 2018, https://www.cihi.ca/sites/default/files/document/pan-canadian-trends-opioid-prescribing-2017-en-web.pdf. 50 Daniel White, “Colorado's Marijuana Industry Had a $2.39 Billion Impact Last Year: Report”, Time, October 26, 2016, http://- 2018, https://www.leafly.com/news/politics/sessions-rescinds-cole-memo-which-protected-state-legal-cannabis-from-feds. time.com/4546522/colorado-marijuana-industry-economic-impact/. 4 Daniel Leblanc, “Ottawa to legalize outdoor cannabis crops,” The Globe and Mail, June 26, 2018, https://www.theglobeand- 27 International Narcotic Control Board, “Technical report: Estimated World Requirements for 2018 – Statistics for 2016,” United Nations, New York, 74 Debra Borchardt, “Marijuana Industry Projected To Create More Jobs Than Manufacturing By 2020,” Forbes, February 22, 2017, https://w- mail.com/politics/article-outdoor-cannabis-crops-soon-to-be-legal-in-canada/. 2018, accessed October 21, 2018, https://www.incb.org/incb/en/narcotic-drugs/Technical_Reports/2017/narcotic-drugs-technical-report-2017.html. 51 .FMJB3PCJOTPO i5IFNBSJKVBOBJOEVTUSZhTmSTUCJMMJPOhVOJDPSOhJTB$BOBEJBODPNQBOZZPVhWFQSPCBCMZOFWFSIFBSEPG wBusiness ww.forbes.com/sites/debraborchardt/2017/02/22/marijuana-industry-projected-to-create-more-jobs-than-manufacturing-by-2020/. Insider, February 2, 2017, http://www.businessinsider.de/canopy-growth-1-billion-revenue-giant-marijuana-industry-2017-2?r=US&IR=T. 5 Leigh Coulter, June 1, 2018, “Why cannabis growers are increasingly moving toward greenhouse facilities”, BNNBloomberg.com 28 Chris Morris, “The next big billion-dollar cannabis markets investors are rushing to,” CNBC, October 21, 2016, https://www.cnbc.com 75 Meera Senthilingam, “Germany joins the global experiment on marijuana legalization,” CNN, March 6, 2017, http://edi- https://www.bnnbloomberg.ca/video/why-cannabis-growers-are-increasingly-moving-toward-greenhouse-facilities~1408210, /2016/10/21/the-next-big-billion-dollar-cannabis-markets-investors-are-rushing-to.html. 52 “Recreational Marijuana - Insights and opportunities,” Deloitte, accessed October 3 2017, https://www2.deloitte.com/content/dam/Deloitte tion.cnn.com/2016/12/29/health/global-marijuana-cannabis-laws/index.html. Live Broadcast/Video File, 4:00. /ca/Documents/Analytics/ca-en-analytics-DELOITTE%20Recreational%20Marijuana%20POV%20-%20ENGLISH%20FINAL_AODA.pdf. 29 “Medicinal cannabis crops now legal in Australia,” The Guardian, accessed October 3, 2017, https://www.theguardian.com/soci- 76 Stanley, “Stepping Up to the Next Level.” 6 “Prescribing Physician Trends,” citing its 2016 Physician Survey, CanniMed Therapeutics, accessed January 15, 2017, https://w- ety/2016/oct/30/medicinal-cannabis-crops-now-legal-in-australia. 53 Andy Blatchford, “Early marijuana sales ‘unbelievably high’ after legalization: US consultant,” The Globe and Mail, April 30, 2017, ww.cannimedtherapeutics.com/investors/overview/the-medical-cannabis-market-in-canada/default.aspx . https://beta.theglobeandmail.com/news/politics/early-marijuana-sales-unbelievably-high-after-legalization-us-consultant- 77 Global Legal Monitor, “Germany: Medical Marijuana Act Enters into Force,” Library of Congress, March 13, 2017, http://ww- 30 Meera Senthilingam, “Germany joins the global experiment on marijuana legalization,” CNN, March 6, 2017, http://edi- /article34859318/?ref=http://www.theglobeandmail.com&. w.loc.gov/law/foreign-news/article/germany-medical-marijuana-act-enters-into-force/. 7 Andrew Joseph, “Want to test a marijuana-based drug? Expect a visit from the ‘men in black’,” Stat News, May 16, 2016, tion.cnn.com/2016/12/29/health/global-marijuana-cannabis-laws/. https://www.statnews.com/2016/05/16/marijuana-research/ 54 Russell Stanley, “Stepping Up to the Next Level,” Echelon Wealth Partners, February 3, 2017, http://research.echelonpart- 78 3FVUFST4UBGG i#SB[JMJTTVFTmSTUMJDFOTFGPSTBMFPGBDBOOBCJTCBTFEESVH wReuters, January 16, 2017, https://www.reu- 31 Russell Stanley, “The Canadian Cannabis Market For Investors,” Echelon Wealth Partners, Toronto, ON, July 2017. ners.com/research/content/Cannabis_Theme_Report.pdf. UFSTDPNBSUJDMFVTCSB[JMDBOOBCJTCSB[JMJTTVFTmSTUMJDFOTFGPSTBMFPGBDBOOBCJTCBTFEESVHJE64,#/"/ 8 Fred Cicetti, “How Marijuana Could Help Glaucoma,” Live Science, April 12, 2010, https://www.livescience.com/6232-marijuana-glaucoma.html. 32 Sam Galegos, “Marijuana, tobacco taxes could bring $2 billion (or more) to California,” ABC News, November 4, 2016, http://ww- 55 Sheryl Ubelacker, “Cannabis Oils Are Legal And Ready In Canada, Still Need Health Canada Approval,” )VGmOHUPO1PTU, October 6, 2015, 79 “Canadian Tilray to produce cannabis in Portugal,” Essential Business, September 24, 2018, https://www.essential-busi- 9 Maia Szalavitz, “Study: Smoking Marijuana Not Linked with Lung Damage,” Time, January 10, 2012, http://healthland.- w.abc10.com/news/politics/elections/marijuana-tobacco-taxes-could-bring-2-billion-to-california/290927107 IUUQXXXIVGmOHUPOQPTUDBQSPEVDFSTPGESJFENFEJDBMQPUBXBJUJOHBQQSPWBMUPTFMMOPXMFHBMDBOOBCJTPJMT@O@IUNM ness.pt/2018/09/24/canadian-tilray-to-produce-cannabis-in-portugal/. time.com/2012/01/10/study-smoking-marijuana-not-linked-with-lung-damage/. 33 Department of Justice, “Cannabis crime statistics in Canada, 2016,” Government of Canada, July 2017, accessed November 5, 56 “Cannabis Oils: A Look At What’s Available in Canada,” Leaf Science, February 21, 2016, https://www.leafscience.com- 80 $BUIZ,FBSOFZ i/BOBJNPCBTFENFEJDBMNBSJKVBOBDPNQBOZmSTUUPDVMUJWBUFQSPEVDUPVUTJEF$BOBEB wCBC News, September 10 Robert J. DeLorenzo, ”Marijuana and its receptor protein in brain control epilepsy,” Virginia Commonwealth University News, 2018, https://www.justice.gc.ca/eng/rp-pr/jr/jf-pf/2017/july01.html. /2016/02/21/cannabis-oils-look-whats-available-canada/. 7, 2017, http://www.cbc.ca/news/canada/british-columbia/tilray-expands-eu-1.4279274. accessed October 3 2017, http://www.news.vcu.edu/article/Marijuana_and_its_receptor_protein_in_brain_control_epilepsy. 34 Gavin Haines, “Mapped: The countries that smoke the most cannabis,” The Telegraph, April 20, 2017, http://www.telegraph.- 57 Tyler Nyquvest, “Licensing for cannabis oil lags behind heady growth,” Business Vancouver, October 3, 2017, https://www.biv.com 81 Harrison Jordan, “A country-by-country guide to Canada’s cannabis exports,” Lift News, accessed October 3 2017, 11 CAM for Health Professionals, “Cannabis and Cannabinoids (PDQ®)–Health Professional Version,” National Cancer Institute, last co.uk/travel/maps-and-graphics/-mapped-the-countries-that-smoke-the-most-cannabis/. /article/2017/10/licensing-cannabis-oil-lags-behind-heady-growth/. https://news.lift.co/country-country-guide-canadas-cannabis-exports/ NPEJmFE0DUPCFS IUUQTXXXDBODFSHPWBCPVUDBODFSUSFBUNFOUDBNIQDBOOBCJTQER 35 Amanda Reiman, “Cannabis as a substitute for alcohol and other drugs,” Harm Reduction Journal, 6 (2009): 35, https://www.nc- 58 Nyquvest, “Licensing for cannabis”. 82 Stanley, “Stepping Up to the Next Level.” 12 Mind & Mood, “Medical marijuana and the mind,” Harvard Mental Health Letter, April 2010, https://www.health.harvard.edu/- bi.nlm.nih.gov/pmc/articles/PMC2795734. mind-and-mood/medical-marijuana-and-the-mind 59 “Market Data,” Health Canada, accessed October 3 2017, https://www.canada.ca/en/health-canada/ser- 83 https://www.ctvnews.ca/business/supply-shortages-plague-canada-s-new-cannabis-marketplace-1.4160476 36 6OJUFE/BUJPOT0GmDFPO%SVHTBOE$SJNF i8PSME%SVH3FQPSU w6/0%$ .BZ United Nations publication, Sales vices/drugs-health-products/medical-use-marijuana/licensed-producers/market-data.html. 13 “Marijuana may help stave off Alzhemier’s,” NBC News, January 7, 2013, http://www.nbcnews.com/id/15145917/ns/health-alzhei- No. E.16.XI.7), https://www.unodc.org/doc/w dr2016/WORLD_DRUG_REPORT_2016_web.pdf. 84 https://nationalpost.com/news/ontario-government-says-pot-deliveries-back-on-track-after-backlog-cleared mers_disease/t/marijuana-may-help-stave-alzheimers/#.UJqzy2l25Jl. 60 Daniel White, “Colorado's Marijuana Industry Had a $2.39 Billion Impact Last Year: Report”, Time, October 26, 2016, http://- 85 37 Mary O’Hara, “New Poll Finds Majority of Americans Have Smoked Marijuana,” NBC News, April 17, 2017, https://www.nbc- time.com/4546522/colorado-marijuana-industry-economic-impact/. Melia Robinson, “The legal weed market is growing as fast as broadband internet in the 2000s,” Business Insider, March 1, 2017, 14 Amy Norton, “Marijuana may ease multiple sclerosis symptoms,” Reuters, May 14, 2012, http://www.reuters.com/article/us-mari- OFXTDPNOFXTVTOFXTOFXQPMMmOETNBKPSJUZBNFSJDBOTIBWFTNPLFEQPUO http://www.businessinsider.de/arcview-north-america-marijuana-industry-revenue-2016-2017-1?r=US&IR=T. juana-sclerosis/marijuana-may-ease-multiple-sclerosis-symptoms-idUSBRE84D0RS20120514. 61 The Canadian Press, “Health Canada swamped with medical marijuana business applications,” CBC, June 4, 2014, http://ww- 86 38 Jessica Glenza, “Ten million more Americans smoke marijuana now than 12 years ago: study,” The Guardian, September 1, w.cbc.ca/news/canada/health-canada-swamped-with-medical-marijuana-business-applications-1.2661070. .FMJB3PCJOTPO i5IFNBSJKVBOBJOEVTUSZhTmSTUCJMMJPOhVOJDPSOhJTB$BOBEJBODPNQBOZZPVhWFQSPCBCMZOFWFSIFBSEPG wBusiness 15 Alison Mack & Janet E. Joy, “Marijuana as Medicine? The Science Beyond the Controversy”, The National Academies Press, 2000. 2016, https://www.theguardian.com/society/2016/sep/01/marijuana-use-americans-study-lancet-legalization. Insider, February 2, 2017, http://www.businessinsider.de/canopy-growth-1-billion-reve- 62 Russell Stanley, “Cannabis Weekly,” Echelon Wealth Partners, August 28, 2017, http://research.echelonpartners.com/research/- nue-giant-marijuana-industry-2017-2?r=US&IR=T. 16 Theresa Liu et al., “Marijuana use in hepatitis C infection does not affect liver biopsy histology or treatment outcomes,” Canadian Journal 39 “Canada’s biggest cannabis company just made $321M acquisition,” The Cannabist, December 1, 2016, http://www.thecanna- content/Cannabis_Weekly_Aug_28_17.pdf. of Gastroentorology and Hepatology, 28, no. 7, (Jul/Aug 2014): 381–384, https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4144456/ bist.co/2016/12/01/canopy-growth-corp-canada-biggest-marijuana-company-acquisition/68594/. 63 Stanley, “Cannabis Weekly”. Forward Looking Statements 17 8BTFFN"INFE4FZNPVS,BU[ i5IFSBQFVUJDVTFPG$BOOBCJTJOJOnBNNBUPSZCPXFMEJTFBTF wGastroenterology & Hepatolo- 40 Andrew Hathaway, “The Legal History and Cultural Experience of Cannabis,” Visions Journal, 5 no. 4 (2009): 12, quoted in “Here to Help”, Forward-looking statements are based on current expectations, estimates, forecasts and projections based on beliefs and gy, 12, no. 11 (Nov 2016): 668–679, https://www.ncbi.nlm.nih.gov/pmc/articles/PMC5193087/. accessed October 3 2017, http://www.hereto help.bc.ca/visions/cannabis-vol5/the-legal-history-and-cultural-experience-of-cannabis. 64 “Legalized Cannabis: Fiscal Considerations,” 1BSMJBNFOUBSZ#VEHFU0GmDFS, November 1, 2016, http://www.pbo-dpb.gc.ca/web/- assumptions made by author. These statements involve risks and uncertainties and are not guarantees of future performance or EFGBVMUmMFT%PDVNFOUT3FQPSUT-FHBMJ[FE$BOOBCJT-FHBMJ[FE$BOBCJT'JTDBM$POTJEFSBUJPOT@&/QEG 18 &UIBO#3VTTP i$BOOBCJOPJETJOUIFNBOBHFNFOUPGEJGmDVMUUPUSFBUQBJO wTherapeutical Clinical Risk Management, 4 no. 1 41 Chris Morris, “The next big billion-dollar cannabis markets investors are rushing to,” CNBC, October 21, 2016, https://www.cn- results and no assurance can be given that these estimates and expectations will prove to have been correct, and actual (Feb 2008): 245–259, https://www.ncbi.nlm.nih.gov/pmc/articles/PMC2503660/. bc.com/2016/10/21/the-next-big-billion-dollar-cannabis-markets-investors-are-rushing-to.html. 65 Vanmala Subramaniam, “First-mover advantage,” VICE News, May 15, 2017, https://news.vice.com/story/canadian-weed-pro- outcomes and results may differ materially from what is expressed, implied or projected in such forward-looking statements. ducers-will-dominate-the-global-marijuana-market 5IFPQJOJPOTFYQSFTTFEJOUIJTSFQPSUBSFUIFPQJOJPOTPGUIFBVUIPSBOESFBEFSTTIPVMEOPUBTTVNFUIFZSFnFDUUIFPQJOJPOTPS 19 42 Priyamvada Sharma et al., “Chemistry, Metabolism, and Toxicology of Cannabis: Clinical Implications,” Iranian Journal of Politics, “Highlights from the federal marijuana task force report,” CBC, December 13, 2016, http://www.cbc.ca/news/poli- SFDPNNFOEBUJPOTPG&DIFMPO8FBMUI1BSUOFST*ODPSJUTBGmMJBUFT"TTVNQUJPOT PQJOJPOTBOEFTUJNBUFTDPOTUJUVUFUIFBVUIPSTKVEHNFOU 66 Psychiatry, 7, no. 4 (Fall 2012): 149–156, https://www.ncbi.nlm.nih.gov MC2828614/. tics/marijuana-task-force-highlights-1.3894219. "EBN"CSBNT i*TSBFM&YQFDUT)JHI1SPmUT'SPN.FEJDBM$BOOBCJT&YQPSUT wIsrael Today, August 22, 2017, http://www.israelto- as of the date of this material and are subject to change without notice. We do not warrant the completeness or accuracy of this day.co.il/NewsItem/tabid/178/nid/32231/Default.aspx. material, and it should not be relied upon as such. Before acting on any recommendation, you should consider whether it is suitable 20 1SBLBTI/BHBSLBUUJFUBM i$BOOBCJOPJETBTOPWFMBOUJJOnBNNBUPSZESVHT w , 1 no. 7 (October, 2009): 43 Future Medicinal Chemistry “The Cannabis Act: An overview,” Dentons, April 18, 2017, https://www.dentons.com/en/insights/alerts/2017/april/18/the-cannabis-act-an-overview. for your particular circumstances and, if necessary, seek professional advice. Past performance is not indicative of future results. 1333–1349, https://www.ncbi.nlm.nih.gov/pmc/articles/P- MC2828614/. 67 Vanmala Subramaniam, “First-mover advantage.” 44 Rob Ferguson, “Canada’s premiers discuss delaying the legalization of marijuana,” The Star, July 18, 2017, https://www.the- These estimates and expectations will prove to have been correct, and actual outcomes and results may differ materially from what 21 Sarah Trumble, “Timeline of State Marijuana Legalization Laws,” The Third Way, May 2, 2016, http://www.thirdway.org/infograph- star.com/news/queenspark/2017/07/18/canadas-premiers-discuss-delaying-the-legalization-of-marijuana.html. 68 Matt Lamers “Canadian exports of medical marijuana soar as producers seek overseas toehold,” Marijuana Business Daily, is expressed, implied or projected in such forward-looking statements. ic/timeline-of-state-marijuana-legalization-laws. August 15, 2017, https://mjbizdaily.com/canadian-ex-ports-medical-marijuana-soar-producers-seek-overseas-toehold/. 45 Ferguson, “Canada’s premiers”.

echelonpartners.com 23