Gathering several influential trend spotters in the cannabis industry to ask their opinions about innovation was an honor and delight.

I wanted to include perspectives from several different angles in the in-dustry. From technology, intellectual property and investments to journal-ism, startups and entrepreneurs alongside trend spotters and futurists, the goal of these pages is to present a range of insights about the wide open field of legal cannabis.

I’m grateful to each and every contributor to this article, and look forward to what the future of cannabis reveals.

1

10 INNOVATION TRENDS IN CANNABUSINESS FOR 2016 INSIGHTS FROM LEADING VOICES IN CANNABIS

The legal cannabis industry is so young, and its growth trajectory so swift and steep, that innovation is literally redefining its every aspect - from agricul-tural methods and technologies to lab testing and quality control; business software to business intelli-gence; and product innovation to packaging and promotion.

I'm particularly excited about the incredible number of new consumer products and brands that have en-tered the marketplace. Adult consumers in Colorado and Washington can now walk into their local pot shop and choose from a variety of offerings, from flowers and pre-rolls to chocolate bars and infused beverages. Oils, waxes and paraphernalia now share shelf space with a fantastic new array of lo-tions, creams and other health and beauty aids. These new products attract a broad swatch of con-sumer segments, and this product usage will only further the normalization of cannabis and cannabis consumers into the mainstream culture.

CBD consciousness is now driving demand for Har-lequin and other CBD strains from both mmj and rec-reational consumers, and inspiring new consumer products including CBD chocolate, teas and creams. The CBD "niche" is our industry's Organic, and I predict CBD products and other non-smokable forms of cannabis will continue to dominate the mar-ketplace.

We've also witnessed an exciting level of innovation in marijuana marketing and branding, with a new level of sophistication and investment. As a result, the market is being to see the emergence of some dominant brands, and that trend will continue through 2016 and beyond.

About David Rheins:

David Rheins is co-founder and executive director of the Marijuana Business Association. Called "The Chamber of Commerce for Cannabis" by NBC News, the MJBA provides business intelligence, pro-fessional networking, and commercial opportunity for participants in the legal cannabis industry.

MJBA hosts regular cannabis industry networking and trade events, professional education seminars and workshops in Washington, Oregon and Colo-rado, and publishes the popular MJHeadline News on Facebook, MJNewsNetwork.com, MJLegalNews.com, and Marijuana Channel One on YouTube.

DAVID RHEINS

2

CO-FOUNDER, MARIJUANA BUSINESS ASSOCIATION (MJBA)

The prohibition and erratic regulation around canna-bis has created a culture of innovation that has been around since prohibition started. As that innovative energy shifts from evading risk to flourishing, the next 10 years for cannabis will bring innovations in every industry in America. Evolving how the plant is grown, processed, delivered and consumed is only a fraction of the impact.

Much of the innovations happening in the next year will leverage the tools and techniques of existing in-dustries (marketing, data analytics, business devel-opment, research), but the additional momentum happening in the industry right now will bring wave after wave of growth for cannabis.

The next year, everything about cannabis will feel in-novative, because this is the first time the plant has been given the opportunity to flourish as a legitimate industry. The truly novel innovations will be the recip-rocal effect that the culture of cannabis brings to the other industries.

The social issues, the stigma, and the invisible fabri-cated barriers between cannabis and the rest of the world will continue to dissolve, and the true bounty of cannabis will be realized. When that occurs, the cannabis industry will no longer be catching up (in technology, agricultural techniques, business acu-men, investment and research) but will be leading industries (cancer and PTSD research, alternative

energy, textiles, data analysis and community). What occurs for cannabis in the next few years will set a remarkable precedent for the future.

The struggles of the cannabis industry at this mo-ment in time are complex and diverse, and much of the innovative things happening in cannabis are to help bring the industry to its present day potential. But what will come after the immediate needs in the industry are met will change the world.

About Starlight Mundy:

Starlight Mundy has spent the last 10 years in the startup and software technology industry, honing a wealth of talent to become a medium for customer understanding, brilliantly effective product design and launch, along with a reputation for being an inno-vator extraordinaire.

Turning her passion and talents to the exciting legal cannabis industry, she is a writer, speaker, consult-ant, trend-spotter and recently hailed as the Cannabusiness Oracle by Forbes.com.

In 2014 she founded Craft Mary Jane to share in bringing collective momentum and craft to the legal cannabis industry, while spreading the seeds of nor-malized marijuana culture and conscious cannabusiness.

STARLIGHT MUNDY

3

FOUNDER, CRAFT MARY JANE

I think one of the most exciting things for this grow-ing industry is having better information to make bet-ter decisions. An example of this is BDS Analytics - they are taking and collecting points of sale data from dispensaries and they are taking those insights to tell people what is actually happening in the mar-ket. What is actually selling, you know what the op-portunity is, who is really selling and who is not and I think there is no one else out there doing right now. Strategic decisions made from working with real data will bring this industry on par with others. I think that’s pretty exciting.

One of the other things that I think is really interest-ing speaks to something that is happening recently. Generally people are not so excited about it - not sur-prising - which is the varying price per ounce of can-nabis. In January 2014 in Colorado very quickly we found that there wasn’t enough inventory to be claimed and prices went off but this thing is going down. In Washington when cannabis became legal, prices sky rocketed because there wasn’t enough supply and now they are coming down. The fluctua-tion and variability is making people uncomfortable. There is a huge need in the industry for supply chain development.

A company that we accepted into our accelerator spring and also did really well raising funds is a com-pany called Tradiv. They are hoping to be the

Alibaba for the cannabis sector. They are connect-ing buyers and sellers of wholesale. They are apply-ing the online exchange model. How can you re-place needing to make phone calls? When you’ve got 20lbs of OG Kush and you’re calling dispensa-ries trying to move it, it’s crazy. It doesn’t provide much clarity to regulators and it doesn’t get tested… the solution appeals to everyone. Tradiv has done a great job of identifying that problem and creating a way to solve that.

What I am most excited about are the really strong entrepreneurs coming into the industry. The CEO's of those companies are exceptionally strong leaders and they're seeing the opportunity there is in the mar-ket. Professionalism is part of what’s missing that people absolutely need and the industry absolutely needs.

About Patrick:

After a successful career in strategic management consulting for the nutrition industry, Patrick has turned his talents in venture finance to the cannabis industry and is a co-founder of Canopy Boulder, a cannabis business incubator in Boulder, Colorado.

PATRICK REA

4

CO-FOUNDER, CANOPY BOULDER

In Colorado, plant breeders will continue to breed for higher concentrations of CBD, the non psychoac-tive cannabinoid believed to have incredible thera-peutic effects.

Plant breeders will be breeding THC-V strains. THC-V is believed to be the cannabinoid associated with reducing or completely blocking panic attacks asso-ciated with PTSD, stress and anxiety. THC-V is also believed to suppress the appetite.

Infused product manufacturers will develop low dos-age products (5 mg and less) for the health and well-ness demographic that wants medicinal benefits from marijuana without feeling intoxicated.

Topicals will be a major trend for its ease of use and lack of psycho-activity. The biggest therapeutic benefit of cannabis topicals is reducing inflamma-tion.

Of course, higher THC strains will continue to be bred for consumers that want to get high or really high. THC percentages will continue to go higher, entering 30%. Current levels of THC in flower sam-ples range from 9-31%, with most being in the upper teens and low to mid twenty percent.

About Susan Squibb:

Susan Squibb, has 20 years experience in Colorado marijuana legalization movement, and hemp and marijuana businesses. She has well-versed knowl-edge of the uses, applications and markets for can-nabis products from industrial hemp, to medical and recreational marijuana. She is currently Operations Director at Steep Hill Colorado, a marijuana testing lab. She produces cannabis events, most notably, Mother's High Tea for women and mothers in the can-nabis business community. Susan is a freelance marijuana writer for The Cannabist. She writes "Ask The Cannabist", a marijuana advice column.

SUSAN SQUIBB

5

CANNABIS MAVEN, 4 & 20 BLACKBIRDS

There are trends that we can see from the develop-ment of the markets in Colorado and Washington.

Number one of these is concentrates. These have become wildly popular in other markets and every indication is that they will continue their trend of popularity here in Oregon.

Other product innovation trends that I expect to see are more vaping products as well as more cannabis infused products, from drinks to creams to edibles. This is an extremely large market and one in which there is abundant room for innovation.

But in the strictest business sense the most pro-found innovation will take place in the background. What I mean by that is that true innovation for the cannabis industry in the beginning of 2016 is going to look like complex corporate structures and wholly owned subsidiaries and management companies that can be used to minimize the impact of I280E, complex stock offering through private placement memoranda in an effort to raise capital without run-ning a foul of SEC regulations, stock subscription agreements, complex vendor contracts, profit shar-ing agreements, employment contracts, employee handbooks and policies, expansion and reinvest-ment plans, land use and tax issues, protection of trademarks, copyrights, patents and trade secrets, strategic partnerships, corporate compliance, bank-ing services, cannabis tourism, etc.

Finally, likely the largest trend outside of cannabis businesses themselves will likely be in the area of banking services. Unknown to most people, the feds will allow banks to open accounts for the marijuana industry if they comply with a variety of specific steps, such as verifying that the business is properly licensed and that the bank inform the government if they suspect any wrongdoing. We very well may see banks likely become more comfortable with canna-bis related businesses. In the absence of additional banking services I foresee innovations in the way transactions are completed, from pre-paid cards or some other method of payment.

About Ted Roe:

Ted Roe specializes in intellectual property, busi-ness, employment and securities law. He has 17 years experience working with the cannabis indus-try, as well as a variety of other domestic and interna-tional industries and he provides free consultations. He is the principal attorney with the Roe Law Firm, PO Box 82657, Portland, Oregon 97282.

He can be reached at troe@tmroe.com and 877-636-6275 x1. Mr. Roe is also the President and CEO of Cascade Mountain High, Inc., a vertically inte-grated cannabis company.

TED ROE

6

IP & BUSINESS ATTORNEY, ROE LAW FIRM, LLC

The Legal Cannabis Industry has crossed through a major inflection point over the past few years. The cultural aspects that are artifacts of the war on drugs are evolving. We are now seeing businesses that are comprised of the next generation of cannabis entre-preneurs and industry leaders.

Professionals from other industries; the creatives, the scientists, the operators, are all now transitioning from the roles they had in other industries. They are bringing their best practices, reputations and rela-tionships, intellectual property, know-how and more to the Legal Cannabis Industry. As a result, the en-tire conversation is being elevated.

We are seeing better and more well produced busi-ness plans. We are seeing more businesses launch with innovation that will transform other industries.

We are NOW seeing the birth of this industry on a world-wide basis. We hear of changes in South America, in Europe, in Australia daily. Buckle up, it is about to get exciting.

About Leslie Bocskor:

Leslie Bocskor is an investment banker and entrepre-neur focused on the emerging legal cannabis indus-try. He is the Founding Chairman of the Nevada Can-nabis Industry Association and Managing Partner of Electrum Partners, and is working with some of the

biggest players in the industry to develop strategies to quickly expand the market for legal cannabis in the U.S. and beyond. He has been featured in news sources such as USA Today, Washington Post, For-tune, Reuters, and Fast Company, as well as being named one of the 100 most influential people in the cannabis industry by Cannabis Business Executive.

As a long time investor, he has a history of success working in early stage disruptive trends and tech-nologies, beginning with Internet and new media properties in the late nineties. Since then he has been involved in life science, cybersecurity and Internet gaming. Under Electrum he is now develop-ing a hedge fund that will allow for deployment of capital on a state-by-state and national basis to meet the growing demand for legal cannabis

In his role as Founding Chairman of the Nevada Can-nabis Industry Association he is bringing time-tested practices from the financial markets and his entrepre-neurial experience to assure Nevada’s industry is an example to be emulated worldwide.

As a member of the ArcView Angel Investor Network he has been mentoring cannabis companies for their presentations at investor meetings, is part of the selection committee, and has been a regular speaker or panelist at the ArcView events.

LESLIE BOCSKOR

7

MANAGING PARTNER, ELECTRUM PARTNERS

In the industry itself, I expect to see more empha-sis on branding and the continued meteoric growth of extracts and edibles. From a financial markets perspective, the industry remains challenged to raise capital. I am optimistic that we will see crowd-funding platforms emerge. Of even greater significance, new rules from the SEC will make it easier for companies to raise money directly from investors through Reg A+. There are many ways a cannabusiness can differentiate itself from its peers, but having capital is one of the most power-ful methods. Those who succeed in raising it will be able to expand their brands as well as consoli-date the industry. Like every industry, follow the money.

About Alan Brochstein:

With decades of experience in portfolio manage-ment and security analysis, Alan has been focused on the cannabis industry since early 2013.

As the founder of 420 Investor, Alan has helped build a community interested in the development of the industry and the advancement of the legaliza-tion movement, with an emphasis on identifying the risks and opportunities in the publicly-traded com-panies in the industry.

ALAN J. BROCHSTEIN, CFA

8

FOUNDER, 420 INVESTOR KIM GORDONFOUNDER, INHALE MERCANTILE

Although it's not a new trend, I'm seeing more fo-cus on cannabis as a health product, and innova-tion in the marketplace to market companies, prod-ucts and cannabis as "healthy" and "organic".

This health consciousness also applies to the grower and consumer side in another equally im-portant manner: creating an organic lifecycle. If we are trying to rid our bodies of toxins, why would we want them in our medicine? Even when not pur-chasing for a medical need, knowing your canna-farmer will play a role since more and more often we will want to know where our cannabis is grown and how it is processed.

As legalization expands, more people are becom-ing exposed to cannabis as an alternative to tradi-tional medicine and afforded the access needed to try cannabis. Health is a priority for Americans, and I believe that the most innovation will come from those companies that service a customer base that regards both cannabis and hemp as healthy and natural.

About Kim Gordon:

Former attorney and teacher, and currently the Founder of Inhale Mercantile, who recently moved to Colorado.

Female head of household as the cannabis decision-maker.

Isolation and study of cannabinoids in relation to health applications.

Pharma-disruptive CBD research for topical medi-cations to fight skin issues.

Mainstreamification of cannabis technologies i.e., having cannabis specific platforms that replace conventionally mainstream (unfriendly) platforms such as Instagram, Facebook, Constant Contact (corporations that delete canna-content from their platforms).

Continued progress for members of the industry who touch the plant in so much as them being more willing to network virtually and in-person.

Anything that makes it easier for patients to acquire medical consultation and access to medication.

About Evan Horowitz:

Serial entrepreneur since the womb. Originally an affiliate system provider, domainer and app crea-tor;

Now, leading the fastest growing cannabis profes-sional network at WeedClub.com and tweeting at /420 from San Francisco in the Twitter Building.

EVAN HOROWITZ

9

CEO, WEEDCLUB.COMJAZMIN HUPP FOUNDER & CEO, WOMEN GROW

Women will be the dominate purchasers of canna-bis products in 5 years.

Women are the Chief Medical Officers of their fami-lies, making 80% of all healthcare decisions and purchasing 93% of over-the-counter medicines.

Women also now drink more alcohol by volume than men and control 85% of consumer spending.

2016 will be the year where the patients we don't see in dispensaries today become powerful targets including: pets, seniors & women.

About Jazmin Hupp:

Named a “genius entrepreneur” by Fortune Maga-zine and a top businesswomen in the cannabis in-dustry by Forbes, Jazmin Hupp is the Founder & Executive Director of Women Grow. 

Women Grow connects, educates, and empowers diverse cannabis industry leaders.

She educates women and men through monthly events in 30+ cities, a national leadership summit, and online resources. Jazmin’s goal is to have 1,000 women launch cannabis businesses at the foundation of America’s fastest growing industry.