Comparison of U.S. Stock Markets

A CKR L CAPI L EL TA Comparison of U.S. Stock Markets Cannabis Investment Report | December 2017 U.S. stock markets vary significantly in terms of their financial, liquidity and corporate governance requirements. Most U.S. publicly traded cannabis-related companies trade on the OTC due to its less stringent requirements, as compared to Nasdaq and the NYSE. The following chart provides a com- parison of Nasdaq, the NYSE and the OTC. U.S. Stock Market Comparison Nasdaq Global Select Market Market Tiers Nasdaq Global Market Nasdaq Capital Market Numbenok Total 3,200+ c pisted Cannabis- 4 ompanies related ( Value Median $334.0 million Must meet financial and liquidity criteria under at least one category Listing or of Standards. Criteria include: Trading Stockholders’ Equity, Market Capitalization, Operating History, Net Income, Amount of Publicly Held Shares and Number of Shareholders. Requirements Nasdaq Global Select Minimum Market: $4.00 sel Nasdag Global Market: $4.00 Price Nasdaq Capital Market: $2.00 + Annual audit Corporate + Audit committee and Governance compensation committee Requirements + Majority of independent directors Reporting Requirements Required to file quarterly and annual reports Registration Requirements Required to register with the SEC NYSE NYSE American 2,800+ $29.6 trillion $1.5 billion Must meet financial and liquidity criteria under at least one category of Standards. Criteria include: Stockholders’ Equity, Market Capitalization, Pre-tax Income, Amount of Publicly Held Shares and Number of Shareholders. NYSE: $4.00 NYSE American: $2.00 * Annual audit + Audit committee and compensation committee * Majority of independent directors Required to file quarterly and annual reports Required to register with the SEC OTCQX OTCQB OTCPink 10,300+ 212 $247.7 billion $0.5 million OTCQX: Must meet minimum financial and liquidity criteria OTCQB and OTCPink: No financial and liquidity criteria OTCQX: $0.10 OTCQB: $0.01 OTCPink: None OTCQX and OTCQB: * Annual audit + Audit committee Two independent directors OTCPink: No requirements Not required to make regular filings Not required to register with the SEC ‘Source: S&P Global Market Intelligence 126 © 2017 Ackrell Capital, LLC | Member FINRA/SIPC HOUSE_OVERSIGHT_024762