CANNAINVESTOR Magazine U.S. Publicly Traded April / May 2019

Greetings and a warm welcome to our 31st issue of the CANNAINVESTOR Magazine! We couldn't be more excited to bring our magazine to cannabis investors, analysts, financial media and cannabis executives.

The big news for the month was Canopy Growth's agreement with Acreage Holdings (OTCQX:ACRGF) for the right to purchase 100% of their shares. However, there is one stipulation - the agreement will not be executed until cannabis becomes legal at the federal level in the United States. The agreement has an approximate market value of $3+ billion giving Acreage shareholders a 42% premium.

Everyone is excited about this deal and industry valuations are increasing as we speak. However, there are two major problems I see with this deal. The first problem I see is that the United States may be a long way off from legalizing cannabis at the federal level, if they legalize it at all. Even if the United States government jumps over the legalization hurdle, Canopy Growth and Acreage Holdings has another obstacle - is the contract they signed legal, biding, and enforceable?

Because the manufacture and distribution of cannabis is illegal at the federal level under the Controlled Substances Act, the argument is that contracts requiring the manufacture or distribution of cannabis are illegal and therefore unenforceable under the illegal contract defense. Since the agreement was signed during a time when cannabis is federally illegal, you have to ask yourself can the agreement hold up in court. ACRGF stock has increased approximately 76% since December 18, 2018. How much of this increase is due to the agreement with CGC? For more detail on contracts in the industry visit https://joom.ag/Atfa/p84

Thank you for letting us keep you informed and assist you in your research of this new and emerging market. We appreciate your support and are so happy to have you as a reader of the CANNAINVESTOR Magazine!

CannaInvestor Magazine assumes no responsibility for any claims or representations contained in the magazine or any advertisement. CannaInvestor Magazine considers its sources reliable and verifies as much data as possible, although reporting inaccuracies can occur; consequently, readers using this information do so at their own risk. All materials contained are for educational purposes only. Articles are general information and not a recommendation to act. The author or CannaInvestor Magazine or associated individuals and companies will not be held responsible or be liable for action taken by any reader of our article. Past performance is not a reliable indicator of future performance. Cannabis Stocks involve a higher level of risk and may not be suitable for all investors, losses can exceed deposits. Please seek independent investment advice before entering into any financial transaction. It should always be assumed that writers may have investment positions in companies that appear in the magazine. Some content is paid for by companies and other content cannot be paid for and must meet certain key metrics and criteria. Paid content is only allowed to market the company, products, services, and management team and not it's stock..

CANNAINVESTOR Magazine U.S. Publicly Traded April / May 2019 | Page 22