` Sample by Avise Analytics Private Limited ` The Next Big Billion Dollar Market Investors Are Rushing To MEDICAL CANNABIS Now Legal MEDICALin Australia CANNABIS 1 Now Legal in Australia ` OVERVIEW Sample by Avise Analytics Private Limited Global medical marijuana market size was valued at US$11.4bn in 2015 and is projected to grow with CAGR of 17.1 % to ~US$55bn by 2025 (Grand View Research) whereas legal cannabis sales in the US reached 89% US$7.4bnSample in 2016 and Byare projected Avise to growAnalytics at a CAGR of Private30% to ~US$21bn Limited by 2020 (ArcView Market 13.1mn Research). Of Americans Support People Cannabis The Legalization Of Dependent Globally Marijuana For Medical On 30 October 2016, Australia legalizes cultivation and the use of medical marijuana, although it will remain Treatment strictly controlled. The new importation rules introduced in February are making medicinal cannabis products more readilySample accessible By to Australian Avise doctors.Analytics Private Limited 9 Cannabis Stocks Soar > Cannabis products made from Australian grown medicinal cannabis crop could be in use as early as 2017. The medical cannabis 130% in Australia during governmentSample has received By applications Avise fromAnalytics 25 companies toPrivate grow and manufacture Limited medical cannabis product. companies are now Listed 1Q CY17 in ASX versus 2 in 2015. Aussie cannabis companies can even target rapidly growing international market. As of Apr’17, Cannabis is allowed for medical use in countries including 29 US states, France, Canada, Germany, the Netherlands, Uruguay,Sample Chile, the Czech By Republic Avise andAnalytics Israel. Private Limited 8000Kg ~700 Estimated yearly demand Number medicinal use of for legalised medical Cannabis. In May, the first 2 imports of medicinal cannabis arrived in Australia. Children suffering from epilepsy and cannabis patients dealing with side effects caused by cancer treatment are most likely to benefit from these products. MEDICAL CANNABIS 23 Now Legal in Australia ` WHAT IS MEDICAL CANNABIS? 55% THE #1 REASON PEOPLE USE CANNABIS FOR RELAXATION The term medical marijuana refers to using the whole, unprocessed marijuana plant or its basic extracts 40% to treat symptoms of illness andSample by other conditionsAvise Analytics Private Limited. The U.S. Food and Drug Administration (FDA) has not OF PEOPLE WANT TO recognized or approved the marijuana plant as medicine. However, scientific study of the chemicals in RELIEVE STRESS OR marijuana, called cannabinoids, has led to two FDA-approved medications that contain cannabinoid ENJOY SOCIAL chemicalsSamplein pill formBy. ContinuedAviseresearchAnalyticsmay lead toPrivatemore medications Limited. EXPERIENCE Because the marijuana plant contains chemicals that may help treat a range of illnesses and symptoms, 39% many people argue that it should be legal for medical purposes. In fact, a growing number of states in the OF PEOPLE WANT TO US and many other countries including Australia have legalized marijuana for medical use. REDUCE ANXIETY DIFFERENTSampleWAYS ByTO AviseCONSUMEAnalyticsMEDICAL CANNABIS Private Limited 1. Smoking medical cannabis 2. Vaporizing medical cannabis 29% WANT TO IMPROVE 3. Edible medical cannabis 4. Tinctures and tonics 5. Topical Products SLEEP QUALITY HOWSampleMIGHT CANNABINOIDS By AviseBEAnalyticsUSEFUL AS MEDICINE? Private Limited The two main cannabinoids from the marijuana plant that are of medical interest are: 26% Δ9-Tetrahydro-cannabinol (THC) and Chemical Cannabidiol (CBD). USE CANNABIS FOR PAIN MANAGEMENT UNDERSTANDINGSample ByTHE AviseMEDICALAnalyticsBENEFIT OF THESE PrivateCOMPOUND? Limited THC – Psychoactive Chemical CBD– Non-psychoactive Chemical 16% WANT • EASES PAIN • REDUCES DRAVET SEIZURE TO • HELPS WITH RELAXATION • KILLS CANCER CELLS STIMULATE • SUPPRESSES PAIN FROM NERVE DAMAGES • STIMULATE BONE GROWTH CREATIVITY • REDUCES RISK OF NERVE DAMAGE • ANTI-INFLAMATORY PROPERTIES • SUPRESSES MUSCLE SPASMS AND CONVULSIONS • ANTI-OXIDANT PROPERTIES 26% • ANTI-PSYCHOTIC WANT TO TREAT A MEDICAL CONDITION Source: New Frontier Data MEDICAL CANNABIS 34 Now Legal in Australia ` MEDICINAL CANNABIS TREATMENTS The table summarises the conditions which THC and CBD are known to be able to treat. This list is neither exhaustive nor Sample by Avise Analytics Private Limited definitive. It is here only to provide a snapshot of the current state of cannabis research. CONDITIONS TREATMENT SOURCE OF TREATMENT WHY PEOPLE USE CANNABIS (BY GENDER) Strength of CBD THC Both Sample By Avise Analytics Private Limited evidence 45% Stress Relief 37% Pain Reduction Sativex High Aids/HIV 38% Appetite Stimulation And Weight Gain Dronabinol (Marinol) High Reduce Anxiety 25% Alzheimer’s Disease Inhibition Of Neurodegeneration Injected (still in experimental phase) High 31% Oral Or Pain Management 23% Arthritis Sample ByJoint Avise Destruction SuppressionAnalytics Private Limited High Injected Improve Sleep Nausea And Vomiting Due To 35% Reduce Nausea And Vomiting Oral: Nabilone & dronabinol (Marinol) Sativex High Quality 25% Chemotherapy Cancer Pain Reduction Smoked Nabiximols High 14% Nausea Suppression 6% Diabetic PeripheralSample Neuropathy By Pain Avise Reduction Analytics PrivateAerosolized, Limited Oral: Nabilone High Source: New Frontier Data Female Male Multiple Sclerosis Improve Spasticity Oral: Dronabinol (Marinol) & Nabilone Sativex High Anxiety And Depression Improvement In Mood Scale Dronabinol (marinol) & Nabilone Sativex High TOP 10 TRACKED CANNABIS THEREPIES (WORLDWIDE) Arthritis Symptomatic Relief Of Joint Pain. Oral Moderate Oral mucosal cannabis Chronic NonSample-cancer Pain ByPain Avise Reduction Analytics Private Limited Moderate Pain 43% spray Anxiety & Depression 28% CBD-enriched Epilepsy Reduction In Seizure Frequency Moderate cannabis oil Migraines 18% Orally, intravenously, or Nausea 15% Glaucoma Ocular Therapeutic Support Moderate inhalation PTSD 14% Schizophrenia Reduced Psychotic Symptoms Oral Low Bipolar Disorder 13% Tourette Syndrome Improvement In Tic Severity Capsules: Dronabinol & Nabilone Sativex Moderate Anorexia 12% Decrease Crohn’s Disease Activity Inflammatory Bowel Disease Smokeable Low ADD/ADHD 11% Index (CDAI) Scores Sleep Disorders Improvement In Insomnia Nabilone Sativex Moderate Arthritis 6% Source: MYDX Presentation MEDICAL CANNABIS 4 Now Legal in Australia ` DISEASES AND PATIENTS The table summarises the total number of patients worldwide and in Australia for different diseases. Each condition and disease possess certainSample by benefitAvise Analytics Private Limitedfrom medical cannabis. NUMBER OF PATIENTS THE UNRELENTING MARCH OF DIABETES % prevalence and number of adults with diabetes by WHO region DISEASES WORLDWIDE PERCENTAGE (%)* AUSTRALIA PERCENTAGE (%)* in 1980 and 2014* DepressionSample By Avise322 millionAnalytics(2012) Private5% Limited>2 million (2011-12) 9.70% Diabetes 415 million (2015) 8.50% 1.2 million (2014-15) 5.10% Cancer (new cases) 14.1 million (2012) 0.20% 0.12 million (2012) 0.5% Neuropathic - 7-8% 1.8 million (2010) 7-8% ChronicSample Pain By Avise1.5 billionAnalytics(2011) Private21% Limited3.2 million (2007) 15% Sclerosis 2.5 million - 23.7k (2009) 0.10% Epilepsy 39 million (2015) 0.50% 0.25 million - Insomnia - 35% (2014) 2.1 million (2014-15) 12% AutismSample By Avise24.8 millionAnalytics (2015) Private0.3% Limited0.23 million (2015) 1.0% Alzheimer 46.8 million (2015) 0.6% 0.413 million (2016) 1.7% HIV/Aids 36.7 million (2015) 0.5% 25.3K (2015) 0.11% Arthritis - - 3.5 million (2014-15) 15.30% * Million of people and % of total regional population Source: World Health Organization * As a percentage of regional population Sample By Avise Analytics Private Limited NUMBER OF PEOPLE LIVING WITH HIV AND SOME IMPORTANT FACTS: ACCESSING TREATMENT GLOBALLY (MILLIONS) § By 2030, depression will be highest level of disability of any (WHO). 25mn U.S. adults had daily chronic pain, and 23mn more 35.9 36.7 33.9 34.5 35.2 physical or mental disorder. Only 35% of Australians with anxiety reported severe pain. 28.9 31.8 33.3 and depression access treatment; § The number of reported sclerosis cases is increasing by 4% each § In 2015, 1 in 11 adults has diabetes and by 2040, 1 adult in 10 will year in Australia. have diabetes (642mn) globally; whereas it is the fastest growing § Nearly 14% of people with epilepsy have used cannabis products chronic condition in Australia; as a way to manage seizures. § 21.7mn number of new cancer cases expected to be diagnosed § By 2025, the number of people with dementia is expected to reach 0.77 2.2 7.5 9.1 11 13 15 17 globally in 2030. In Australia, 134k (2017) new cancer cases 536,164 in Australia and 131.5mn worldwide by 2050; 2000 2005 2010 2011 2012 2013 2014 2015 estimated will be diagnosed in Australia and 150k by 2020; § An estimated 1.1mn people died from AIDS-related illnesses in People receiving treatment People living with HIV § Chronic disease prevalence is expected to rise by 57% by 2020 2015. Source: New Frontier Data MEDICAL CANNABIS 5 Now Legal in Australia ` GLOBAL MARKET A new report from Grand View Research, Inc. estimates that the global medical marijuana market will reach a GROWTH OF LEGAL MEDICAL & ADULT USE MARIJUANA SALES IN US (2016-2025) value of $55.8 billion by 2025.Sample by The globalAviseindustryAnalytics Private Limitedwas valued at $11.4 billion in 2015, and the market research and consulting company projects it will grow at a compound annual growth rate of 17.1 percent 24.08 21.46 22.88 CAGR: 16% 19.89