CANNAINVESTOR Magazine U.S. Privately Held Companies March 2018 | Page 114

Hope, Fear And Greed Impact Portfolio

Return More Than Any Recession

Capital placement decision-makers can effectively isolate direct federal risk via separation of plant-touching and ancillary exposure in portfolio construction.

Plant-touching Portfolio Sectors

Cultivation: Indoor, outdoor, and greenhouse cultivation provides cannabis flower to consumers and manufacturers alike. While prices and margins remain attractive, investors are well served to understand future valuation and sector impact from cannabis spot price volatility.

Extraction: Extraction is the process of creating desirable byproducts from plants while leaving behind undesirable compounds and plant matter. Cannabinoids and terpenes are extracted to provide aroma, flavor and effect. Most extraction methods utilize butane, ethanol or super-critical CO2 to produce concentrates such as oils, kief, hash and rosin. The extract category is one of the fastest growing in the U.S. today.

114