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With the popularity of CBD oil on the rise, some companies appear to have positioned themselves to earn large shares of the market. Its legality is a big concern to investors; until recently, only a few states allowed the production or sale of CBD oil products. It's important for investors to closely follow the laws regarding the use and sale of these products, state-by-state.

If you're considering investing in CBD oil stocks, trying to diversify your self-directed IRA, or you just want to look for new investment options, we've got everything you need to help you get started and make decisions if this is a move you want to go forward with.

WHAT IS CBD OIL?

CBD oils are oils that contain various concentrations of CBD, depending on the use.

WHAT IS CBD? nnCannabidiol (CBD) is a safe, non-addictive compound found in the resinous flower of . It is closely related to another important medicinally active phytocannabinoid, (THC), the compound that causes the high that cannabis is famous for. Both of them have significant therapeutic attributes but unlike the latter, CBD does not make a person feel “stoned” or intoxicated.

CBD OIL HEALTH BENEFITS nnRelieves pain and inflammation nnRelieves nausea nnHas antipsychotic effects nnMay treat seizures & other neurological disorders nnReduces nnLowers incidence of diabetes nnHelps fight cancer nnPromotes cardiovascular health

1 THE ULTIMATE GUIDE TO INVESTING IN CBD OIL STOCKS IS CBD OIL LEGAL? CBD OIL PRODUCTS nnAt the federal level, CBD is classified as a Schedule 1 drug in the U.S. because it is one of the many present in . However, CBD products that are derived from industrial are being sold legally, but only under the strict regulations of the 2018 Farm Bill. Under the new bill, legal hemp-derived CBD products must contain less than 0.3 ´´ VAPE OILS percent THC and can only come from • Oils that can be consumed in vapes. licensed hemp growers. They go by CBD vape juice, CBD vape So, as you can see, the legality of CBD oil, or even CBD oil vape juice. These can be a bit tricky and the laws regarding are CBD vape juice liquid extracts of the compound continue to change. To CBD oil that consumers take orally. add to the confusion, each state has specific requirements and conditions ´´ CBD SPRAYS that need to be followed in order to use • There are many options for CBD CBD derived from marijuana legally. sprays, including nasal sprays. These As of 2018, you can legally purchase include popular CBD gummies and CBD derived from the marijuana plant other edible products that contain in 46 states (and 3 territories) with a very little, if any, THC. prescription for medicinal usage. The laws for each state is different, especially ´´ CBD OIL PRODUCTS when it comes to how much THC can • Applied to the skin. legally be present in the product. The four states where marijuana-derived ´´ CBD OIL IN PILL FORM CBD is completely illegal are Idaho, • Often easier for consumers to carry Kansas, Nebraska and South Dakota. around with them.

2 THE ULTIMATE GUIDE TO INVESTING IN CBD OIL STOCKS nnSelect a broker. One can sign up online HOW TO INVEST IN CBD OIL STOCKS with trusted brokers that have potential CBD oil stocks reports. CBD INVESTMENT nnBuy the stock. But be careful when nnFirst, you can start by investing in retail choosing which broker to invest CBD oil. As of today, there are only a through. few retailers, and it certainly creates a good opportunity for you to enter the nnThe last step is to finally sell the stock. market. You may do this depending on where you believe the value of the stock will go nnSecond, there is an increasing number in the future. of CBD oil distributors you can invest in. This method of investing does not INVEST CAREFULLY require you to obtain a license. Instead, nnSome companies make most of their it only requires a few collaborative revenue outside the marijuana industry. efforts with the distribution companies. These stocks are considered by some to nnThe last option is by directly investing be safer than others because they are through CBD stocks. There are now not solely associated with CBD products. many publicly-traded companies that nnLearn how to manage your money or cater to the demand for the CBD market carefully select a financial advisor. growth, and just like investing in usual stocks, investors find it very easy to nnCreate a financial plan and try out open CBD investments. different investment strategies.

nnStudy the stocks you want to buy or sell. CONSIDERATIONS Research carefully before deciding. nnResearch the company. This gives one insight into the company’s background, nnStart with a small position. Add to it success rates, and business growth. when the market grows or the company increases in revenue and earnings. Little nnConsider what the best amount to to no growth can be an indicator of invest is. It’s always better to not invest when you should reevaluate your plans. more than one can afford to lose. nnKeep tabs on the changes in nnTiming. The period of when to buy and microeconomic and macroeconomic sell is essential, as it largely affects the conditions. Adjust your portfolio investment’s performance. selections and asset allocations.

3 THE ULTIMATE GUIDE TO INVESTING IN CBD OIL STOCKS nnTrain yourself to be an intelligent HOW TO INVEST IN CBD OIL STOCKS investor. Develop the right approach to investing - monitor your investments, INSIDE YOUR IRA set rules for yourself, and diversify Investment options for an Individual across different categories. Retirement Account (IRA) typically include stocks, bonds, and mutual funds. Self-directed MONITOR Individual Retirement Accounts allow for a nnThe dynamics involved in the cannabis broader range of alternative investments industry are quickly changing. The for your retirement savings. Some examples deciding factors can be very different of these alternative investments include in a matter of months. Monitor the private company stock, precious metals, marijuana stocks and/or ETFs you've cryptocurrency, real estate, and much more. purchased as well as the industry closely and frequently. This involves „„ ASSET ALLOCATION changes that can either be good or bad. • The diversification of your portfolio is usually a good indicator of your goals. nnKeep track of your payments by reviewing all accounts statements and • If you’re looking for the greatest return records you've received. over time, you will generally have to take nnCheck stock prices online. Take note of the greatest amount of risk. the trading activities and stock values. • Fixed-income investments and bonds are nnCompare the stock performance generally less volatile with lower returns against appropriate benchmarks. „ Underperformance can be a factor „ TIME FRAME telling you to reevaluate. • Determining your time frame for investment will help you determine which n nKeep up with corporate news and CBD stocks to invest in within your IRA. changes through news releases or public documents. ŠŠ Age is definitely a factor. In general, you want to take more risk at an earlier age nnIf you have a financial advisor, ask them then ease off as you get closer to retirement. about price lifts or drops, and how this can affect your portfolio. ŠŠ This does not mean stock investment within an IRA should not be considered. nnFollow news about the economy and Investment growth is generally a wise the stock market. decision considering today’s life spans.

4 THE ULTIMATE GUIDE TO INVESTING IN CBD OIL STOCKS • With a shorter time frame, consider CBD OIL STOCKS TO KEEP AN EYE ON beginning with a small position in a CBD stock. It’s important to filter out which CBD companies are worth the time and money. ŠŠ As you see market and company growth, These leading CBD oil stocks might be worth you could then add to your stocks within considering: the portfolio n A retail cannabis • With a longer time frame of 10+ years and a n Terra Tech Corp: larger allocation to a CBD stock within your company that’s “hoping” to dominate portfolio, consider companies that have the California cannabis market. For extended their revenue source outside of the year ending December 31, 2018, the cannabis industry. Scotts Miracle-Gro, the Company generated revenues for example, has a separate major revenue of approximately $31.33 million. stream from law and garden products. Stockholders’ equity for the year

„„ WHY CONSIDER CBD STOCKS ending December 31, 2018 amounted INSIDE YOUR IRA to approximately $94.9 million, an • Getting in on growth and investing in increase of approximately $18.1 million companies that shape the market can from December 31, 2017. have great rewards especially if your time nn Bottles: This is also a California- frame for investment is 10+ years. based company. They first started out • For example, Priceline changed the travel as a packaging business that soon industry while Netflix changed media ventured into the cannabis industry. entertainment. Priceline (now Booking Holdings Inc.) has a market cap of nn Friday Night Inc: Don’t let its name $78.87B and Netflix Inc. has a market cap fool you. Friday Night Inc. carries an of $154.28B. array of cannabis wellness products

5 THE ULTIMATE GUIDE TO INVESTING IN CBD OIL STOCKS many users purchase for medical themselves in being a results-driven purposes. brand that focuses on addressing all the needs of their customers. nn GW Pharmaceuticals: One of the pioneers in the CBD and marijuana nn ChineseInvestors.com Inc: CIXX industry. They are a well-known British started in 1999 as a provider of pharmaceutical company that offers financial analysis and data. It went nabiximols, the first cannabis plant- public in January 2012 and has since derived medicine for multiple sclerosis provided financial analysis and data to gain market approval in any country. for the markets of China, Canada, and the U.S. The company added another nn Aurora Cannabis Inc: This company is service: investing in and retailing of a licensed Canadian cannabis provider. CBD-based nutrition and cosmetics It has public offers on the Toronto products. Stock Exchange as ACB. As of 2018, it has five sales licenses and eight nn Cara Therapeutics Inc: Primarily deals production facilities in 18 countries with pain alleviation and itch treatment. across the globe. This Connecticut biotech company uses extracts from the cannabis plant to nn Isodioil Inc: Globally known as a top make pain relief products that patients provider of hemp and CBD products, take either orally or via injections. Isodioil Inc. continues to raise awareness about the medical benefits nn Aphria Inc: A low-cost, high-volume of cannabis-derived goods. grower, supplier, and retailer of medical and recreational CBD. nn Canopy Growth Corp: Formerly Tweed Marijuana Inc., the company adopted nn The Green Organic Dutchman the name Canopy Growth Corporation Holdings Ltd: Is focused on CBD. The in 2015. Its sales and popularity give it company recently bought HemPoland, an edge over its market competitors. a major CBD oil producer in the EU that owns the “Cannabigold” brand. nn Golden Leaf Holdings Ltd: This Portland-based company is currently nn The Marijuana Company Of America one of the largest providers of CBD Inc: Focuses on hemp and hemp- oil in North America. They pride derived CBD products.

6 THE ULTIMATE GUIDE TO INVESTING IN CBD OIL STOCKS CBD OIL STOCKS

COMPANY NAME STOCK TICKER

Aphria Inc NYSE:APHA, TSX:APH

Aurora Cannabis Inc NYSE:ACB, TSX:ACB

Cannabis Sativa Inc OTCMKTS:ISOLF, CNSX:ISOL

Canopy Growth Corp NYSE:CGC, TSX:WEED

CV Sciences Inc OTCMKTS:CVSI

Emerald Health Therapeutics Inc TSX.V:EMH, OTCMKTS:EMHTF

Golden Leaf Holdings Ltd. TSX:GLH, OTCBB:GLDFF

GW Pharmaceuticals PLC NASDAQ:GWPH

Isodiol International TSX:ISOL, OTCMKTS:ISOLF

Insys Therapeutics Inc NASDAQ:INSY

MPX Bioceutical Corporation TSX:MPX, OTCBB:MPXEF

Neptune Wellness Solutions Inc NASDAQ:NEPT, TSX:NEPT

New Age Beverages Corp NASDAQ:NBEV

CannaRoyalty Corp CNSX:OH, OTCMKTS:ORHOF

Terra Tech Corp OTCMKTS:TRTC

7 THE ULTIMATE GUIDE TO INVESTING IN CBD OIL STOCKS „„ WASHINGTON'S INITIATIVE 502 (2012) IMPORTANT THINGS TO KNOW ABOUT Legalizes the production, possession, CBD OIL BEFORE INVESTING delivery, and distribution of marijuana to people 21 and older. LAWS „„ CALIFORNIA'S PROPOSITION 64 (2016) „„ CALIFORNIA'S PROPOSITION 215 (1996) Supports the recreational use of Allows patients and defined caregivers marijuana for adults 21 years and older. to possess and/or cultivate marijuana for medical treatment, as long as they are „„ VERMONT'S H. 511 (2018) recommended by a physician. Legalizes adults 21 years and older to cultivate two mature and four immature „„ COLORADO'S AMENDMENT 64 (2012) marijuana plants in a secure location and Allows the personal use and regulation possess one ounce of marijuana. of marijuana for adults 21 and above. Use and regulation includes commercial „„ AGRICULTURE IMPROVEMENT ACT OF cultivation, manufacture, and sale, which 2018 (FARM BILL) allows the recreational use of marijuana • Legalizes the possession, manufacture, similar to alcohol. and distribution of CBD extracted from cannabis plants that fall under the ‘hemp’ category - which means all extracts and derivatives must have a THC level of no more than 0.3%. Under the law, THC greater than 0.3% is classified as “marijuana”.

• The US Department of Agriculture will oversee hemp farming, while the and Drug Administration will be responsible for hemp products in various forms: medications, supplements, and food additives.

„„ STATE LAWS ARE OPEN TO SET SPECIFIC RESTRICTIONS (THC level and CBD source) regarding the use of CBD oil for recreation and medical purposes.

8 THE ULTIMATE GUIDE TO INVESTING IN CBD OIL STOCKS LEGALITY IN THE US

Source: Marijuana Legalization 2018: A State-by-State Guide to Legal Weed

LEGALITY IN THE US - LEGAL  - ILLEGAL

MEDICAL STATE RECREATIONAL (0.3% THC HEMP-DERIVED TRANSPORTATION CULTIVATION CBD OIL ALLOWED BY LAW)

Alabama Up to 3% THC  for patients with   debilitating illness Alaska   Up to 1 oz.or 28 6 plants in a household grams (marijuana) with two adults 21+; No limit with commercial license Arizona   Up to 2.5 ounces in a Medical use only Medical use only 14 day period from a registered dispensary Arkansas   Patient needs to Medical use only Medical use only qualify if he needs higher THC

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9 THE ULTIMATE GUIDE TO INVESTING IN CBD OIL STOCKS LEGALITY IN THE US

California   Up to 1 oz.or 28 6 plants in a household with two adults 21+; No limit But CBD products grams (marijuana) are banned as with commercial license;Up additives in food to 8 grams of concentrate and supplements (oil, wax) per day Colorado   Up to 1 oz.or 28 6 plants in a household grams (marijuana) with two adults 21+; No limit with commercial license Connecticut Decriminalized  Medical use only  Delaware Decriminalized  Medical use only Medical use only Up to 7% THC for (no home-growing) marijuana-derived CBD Florida  Up to 0.8 % THC; Medical use only Medical use only Higher level of THC (no home-growing) for terminally ill patients Georgia  Up to 5% THC Medical use only Medical use only Up to 20 ounces (no home-growing) of CBD oil for qualified patients Hawaii   Against program Medical use only rules Idaho    

Illinois Decriminalized  Medical use only Medical use only

Indiana   Must be properly   labeled

Iowa  Medical use only  Up to 3% THC for  qualified illnesses (marijuana-derived CBD oil) Kansas  Strictly products   with 0% THC only

Kentucky     Louisiana   Medical use only Medical use only Need certification (not yet operational) (not yet operational and no from authorized home-growing) doctors

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10 THE ULTIMATE GUIDE TO INVESTING IN CBD OIL STOCKS LEGALITY IN THE US

Maine Up to 2.5 ounces Up to 2.5 ounces Up to 2.5 ounces 6 plants in a household; (marijuana and (marijuana and (marijuana and No limit with commercial derivatives) derivatives) derivatives) license But hemp CBD products are banned as additives in food and supplements

Maryland Decriminalized  Medical use only Medical use only (10 grams or (no home-growing) less) Massachusetts   Up to 1 oz. or 28 1 oz of marijuana outside grams (marijuana) the home, 10 oz inside the home, 6 plants in a household. Michigan   Up to 2.5 ounces Up to 12 plants but for As of December (marijuana) personal consumption only 2018, adults may possess (up to 2.5 ounces), consume but not purchase or sell

Minnesota Decriminalized  Medical use only Medical use only Patients can have (no home-growing) 30-day supply of dosage as certified by the doctor

Mississippi Decriminalized  Up to 0.5% THC for   intractable epilepsy (marijuana derived CBD oil)

Missouri Decriminalized Up to 0.3% THC for Medical use only intractable epilepsy Up to 20 ounces of  (marijuana derived CBD oil with a waiver CBD oil) signed by physician

Montana  Medical use only Medical use only  Patients need to (up to 4 mature plants and qualify for treatment 4 seedlings) with higher THC Nebraska Decriminalized    Nevada   Medical and 6 plants per household Recreational use - (Up to 1 ounce) Patients need to (adults over 21) qualify for treatment Up to 2.5 ounces with higher THC (marijuana) New Hampshire Decriminalized  Medical use only Medical use only - Up to 2 ounces (no home-growing) (marijuana)

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11 THE ULTIMATE GUIDE TO INVESTING IN CBD OIL STOCKS LEGALITY IN THE US

New Jersey   Medical use only Medical use only - Up to 2 ounces (no home-growing) (marijuana) New Mexico   Medical use only Medical use only (Up to - Up to 8 ounces 16 plants with 4 mature every 90 days plants) (marijuana) New York Decriminalized  Medical use only Misdemeanor North Carolina Decriminalized Up to 0.9% THC for   pediatric epilepsy (CBD only)

North Dakota   Medical use only  - Up to 3 ounces (marijuana)

Ohio Decriminalized  Not clearly stated  Oklahoma   Not clearly stated Legal with medical license Oregon     (Up to 1 oz in public (4 plants per household place; 5 grams of with adults age 21+; concentrate; More for 6 plants and 18 seedlings for licensed cultivators) medical users) Pennsylvania  Medical use only  Amount of CBD oil  must be specified by physician Rhode Island Decriminalized  Medical use only Up to 12 plants & 12 seedlings for medical users only South Carolina   Medical use only  Up to 0.9% THC for Amount of CBD oil severe epilepsy treatment (marijuana must be specified by derived CBD oil) physician

South Dakota     Tennessee   Medical use only  Up to 0.9% THC for Amount of CBD oil epilepsy/seizure treatment (marijuana must be specified by derived CBD oil) physician Texas   Not clearly stated  Up to 0.5% THC for Amount of CBD oil intractable epilepsy (marijuana derived must be specified by CBD oil) physician

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12 THE ULTIMATE GUIDE TO INVESTING IN CBD OIL STOCKS LEGALITY IN THE US

Utah   Not clearly stated  Up to 0.3% THC for Amount of CBD oil epilepsy and other qualified illnesses must be specified by (CBD hemp oil only) physician Vermont     (Up to 1 ounce A patient must be (2 mature plants, 4 of marijuana, no under his physician’s seedlings; Up to 12 plants commercial sales) care for at least 3 for medical users) months

Virginia  Not clearly stated  Up to 5% THC for  qualified illnesses (CBD hemp oil only Washington   Recreational use: Medical use only - Up to 1 oz Up to 15 plants (marijuana); Up to 72 oz of marijuana- infused products (oils) Medical use: Up to 24 ounces (marijuana) West Virginia   Not clearly stated  Wisconsin  Only patients with Medical use only (for  seizure disorders qualified patients are qualified for 0% THC

Only patients with Wyoming  Up to 0.3% THC  for epilepsy (CBD qualified neurologists hemp oil only) can possess CBD hemp oil

FEDERAL DISTRICT

District of     Columbia (no commercial (Up to 2 oz.) (Up to 6 plants with 3 sales) mature plants at a time)

INHABITED TERRITORY

TERRITORY RECREATIONAL MEDICAL TRANSPORTATION CULTIVATION

American Samoa     Guam   Medical use only Medical use only

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13 THE ULTIMATE GUIDE TO INVESTING IN CBD OIL STOCKS LEGALITY IN THE US

Northern Mariana     Islands

Puerto Rico   Medical use only Medical use only U.S. Virgin Islands Decriminalized   

NATIVE-AMERICAN RESERVATION

RESERVATION POSSESSION SALES TRANSPORTATION CULTIVATION

Flandreau Santee Sioux Tribe   Not clearly stated 1 single licensed grow site (South Dakota) for the nation

Suquamish Tribe (Washington   Not clearly stated Not clearly stated State)

Squaxin Island Tribe   Not clearly stated Not clearly stated (Washington State)

Source: https://en.wikipedia.org/wiki/Legality_of_cannabis_by_U.S._jurisdiction https://www.thrillist.com/travel/nation/states-that-legalized-weed-marijuana-laws

OTHERS University survey revealed an immense support for access to Learn more information about the marijuana prescribed by a doctor. industry before finally taking the step to invest. „„ Uruguay and Canada are the only „„ 60% of Americans now support countries in the world to fully legalize legalizing marijuana use in adults. marijuana. • The public’s perception about cannabis • 30 countries have legalized medical has drastically changed in two decades. cannabis. Weed remains illegal under In a poll conducted by Gallup in 1995, federal law across the US due to its only 25% of respondents supported the potential for abuse. legalization. „„ Within the US, medical marijuana is „„ 93% of the respondents favor the use of legal in 33 states. marijuana for medical purposes. • The concerned states have the right to • Results of the April 2018 Quinnipiac

14 THE ULTIMATE GUIDE TO INVESTING IN CBD OIL STOCKS regulate recreational and/or medical „„ Charlotte’s Web Holdings is a stock to marijuana independent from the watch after the passing of the 2018 federal government. Farm Bill. • The company has the biggest market „„ Recreational marijuana is legal in 10 share in terms of production and states. distribution of hemp-based CBD products. • All 10 states allow weed usage for adults 21 years old and above but vary in • It completed its IPO on the Canadian allowable number of plants to grow at Securities Exchange in August 2018. home and possession of minimal amount. „„ and beverage stocks „„ The FDA approved the first cannabis are poised to soar as companies drug for epilepsy in June 2018. become more aggressive. • Epidiolex was designed to treat serious • Brewing giant Heineken entered the forms of childhood epilepsy. It can’t be pot-infused beverage market in 2017 sold yet, as the DEA has to reclassify the and is among the top 5 marijuana compound (CBD). beverage stocks.

„„ Few countries are authorized to export • Plus Products is the leading cannabis- cannabis. infused edibles company based in • Netherlands, Canada, and Israel are California. It is also a choice brand for the only countries allowed to export flower, topical, and vaporizer categories. medical marijuana. Australia is set to „„ Cannabis oils and extracts are promising join the export industry. high-tier products as market demand „„ More countries look into cannabis oil shifts to non-smokable products. imports as medical marijuana becomes • Cannabis infused in skin and beauty more accepted. products, beverages, chocolates, • China, India, USA, Germany, and Spain gummies, capsules, and pet treats are are the top 5 exporters of cannabis oil just some of the products expected to in 2017. rise in 2019.

„„ Canada’s Canopy Growth Corp is the „„ The future also seems favorable to biggest publicly traded marijuana stock. marijuana ancillary businesses. • It was recently granted additional licensing • Medical manufacturing firms can take for production. It now has over 2.4 million the big opportunity to become part of square feet of production capacity. the cannabis supply chain.

15 THE ULTIMATE GUIDE TO INVESTING IN CBD OIL STOCKS SOURCES

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´´ https://insideyourira.com/cbd-stocks-inside-your-ira/ ´´ https://www.thestreet.com/lifestyle/health/5-cannabis- ´´ https://www.fool.com/investing/2018/08/29/how-to-invest- products-on-rise-14578907 in-marijuana-stocks.aspx#invest ´´ https://investingnews.com/daily/resource-investing/ LEGALITY/LAWS: agriculture-investing/cannabis-investing/track-cannabis-stock/ ´´ https://ballotpedia.org/California_Proposition_215,_the_ ´´ https://insideyourira.com/self-directed-ira-benefits/ Medical_Marijuana_Initiative_(1996)

´´ https://www.nerdwallet.com/article/how-to-invest-ira ´´ https://ballotpedia.org/Washington_Marijuana_Legalization_ ´´ https://www.fool.com/retirement/2017/02/18/the-best- and_Regulation,_Initiative_502_(2012) investments-for-an-ira.aspx ´´ https://ballotpedia.org/California_Proposition_64,_ ´´ https://insideyourira.com/investing-cbd-oil-stocks/ Marijuana_Legalization_(2016) https://en.wikipedia.org/wiki/ Legality_of_cannabis_by_U.S._jurisdiction ´´ https://insideyourira.com/cbd-stocks-watch-2019/

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16 THE ULTIMATE GUIDE TO INVESTING IN CBD OIL STOCKS