MJBizDaily Investor Intelligence

MJBiz Daily | Investor Intelligence mjbizdaily.com/investing Copyright 2019, Marijuana Business Daily, a division of Anne Holland Ventures Inc. You may NOT copy this report, or make public the data and facts contained herein, in part or in whole. For more copies or editorial permissions, contact CustomerService@MJBizDaily.com or call 720.213.5992 x1. 6 T he global cannabis market continued to take shape in 2018 as merger and acquisition deals ramped up, new partnerships formed and new export and import policies allowed cannabis to be shipped across inter- national waters. More than 30 countries have legalized some form of medical marijuana, and numerous other nations that are exploring recreational legal- ization could join adult-use pioneers Uruguay and Canada in the near future. As 2019 unfolds, here are the top trends shaping international cannabis opportunities: HIGH ON THE HORIZON As cannabis becomes more mainstream globally, a number of key countries are considering proposals to legalize it on a medical or recreational basis. Countries to watch include: • France: In September, a French health agency launched a scientific committee to examine how to create a medical cannabis market. The nation legalized cannabis-based medicines in 2013, but no product has been legally available because the market has not been developed. • Luxembourg: The country could become the first in Europe to permit and regulate recreational marijuana. Officials there are working through legislative approaches. Investors will want to watch whether those rules restrict cannabis sales to the country’s adult residents – a provision listed in the latest proposed policies. In a country with only 600,000 residents, such a rule would significantly restrict business and investments opportunities. • China: A delegation of the nation’s business and research experts set out to explore opportunities in medical cannabis – traveling first in January to Israel. Cannabis remains illegal in China for medical use, but if the country’s position changes – even just for CBD – it could open the floodgates to significant business and investment opportunities in the world’s most populated country. CANNABIS PRODUCTION HUBS Low-cost cannabis production operations have become a top target for acqui- sitions – with many operators focusing their attention on Latin America. With a favorable growing climate that allows for year-round harvests and lower operating costs compared to other international markets, investment and M&A activity is poised to ramp up in this region. EUROPEAN EXPORTERS Canadian medical cannabis giants Aphria, Aurora, The Green Organic Dutchman and Canopy Growth have all planted their flags in Denmark as a handful of countries in the European Union jostle to become the region’s top marijuana supplier in the coming years. Currently, most of Europe’s medical cannabis comes from Canada, the Netherlands and the United Kingdom, which exports Sativex, a cannabis pharmaceutical product conta`ining equal amounts of CBD and THC. Rule changes in 2018 for cannabis exports in Portugal, Israel and Greece, however, are opening up multimillion-dollar foreign investment opportunities in those countries as well. What to Watch: International Cannabis Markets in 2019 MAP LEGEND High level of medical development/implementation Medium level of medical development/implementation Low level of medical development/implementation Other - federally illegal but unique circumstances Recreational