The Verde Mountain Fund offers a unique opportunity to gain early entry into one of the fastest growing industries in a generation.

The Verde Mountain Fund offers a unique opportunity to gain early entry into one of the fastest growing industries in a generation.

The Verde Mountain Fund offers a unique investment opportunity for both high yield income and capital appreciation The overall existing cannabis market is generating over $50 billion in annual revenues, while only 10% of that total occurs within states where cannabis use has been legalized. Demand for cannabis is only expected to grow over the next 5 years as a greater number of states enact laws permitting medical and adult use. across the United States. According to a recent Gallup poll, over 58% of Americans support the legalization of marijuana for adult use. 1 A Harris poll shows that 81% of all Americans support legalized cannabis for medicinal uses. 2 Currently, 86% of people living in the United States reside in states where some degree of legal cannabis use is allowed. This includes the medicinal use of CBD oil, medicinal use with a doctor s prescription and adult recreational use of cannabis. States like Washington, Oregon and Colorado have shown the nation that the legalization and regulation of adult use of cannabis can be successful. Medical research into the benefits of cannabis is accelerating after the Drug Enforcement Agency eased some of the regulations on cannabis imposed by the Controlled Substances Act for those researching cannabidol (CBD) in December 2015. CBD is an extract of the cannabis plant which has proven beneficial in the treatment of a broad range of medical conditions. The Verde Mountain Fund is well positioned to provide both debt and equity financing to established companies in the cannabis industry, in order to fuel their expansion into nationally recognized brands. Beginning in 1996 when California passed Proposition 215 which legalized medical marijuana use, hundreds of companies have entered the field to provide patients with products and services. However, many of these companies seeking to serve patients with cancer, muscular spasticity, PTSD, arthritis, AIDS and many other medical conditions, have faced significant challenges obtaining the financing required to grow their businesses. Because of this, they often look at alternative funding sources to avoid uncertainty regarding federal banking laws which prohibit banks and other traditional lenders from funding any businesses associated with the cannabis industry. Investment opportunities in today s cannabis industry are often compared to those at the end of alcohol prohibition in 1933, when early market entrants grew into some of today s national brand companies. Cannabis is one of the most profitable crops per-acre in the United States. With a dramatic increase in public support for cannabis use and a softening of the government s approach to legalized cannabis use, many believe this is an ideal time to invest in this early growth stage of the industry. 1 http://www.gallup.com/poll/186260/back-legal-marijuana.aspx 2 http://www.theharrispoll.com/health-and-life/americans-ready-for-legal- Marijuana.html Today, 23 states have passed laws legalizing medical marijuana use. Four states have also passed laws legalizing adult use of cannabis. This growth has been spurred by a dramatic increase in support for cannabis legalization Sources: USDA, The Rand Corporation, Correspondence with Marijuana Cultivators in Oregon

Cannabis as Medicine Cannabis has always been used as a medicine. Since the dawn of civilization, human beings used plants medicinally to treat a number of medical ailments. Even if it wasn t understood why it was effective in treating a condition, plants such as cannabis have been used medicinally for centuries because of their healing properties. In the United States, cannabis was actually listed in the U.S. Pharmacopoeia and prescribed medicinally during the 1880s. During this time, many people didn t view cannabis as illicit. Even though the federal government currently maintains that cannabis has no medical benefits, the Department of Health and Human Services actually holds the patent for its use as an antioxidant and a neuroprotectant. The number of patients using cannabis to treat various medical conditions is expected to double over the next four years, to reach 2.5 million by 2020. Cannabis Research More than 20,000 studies have been conducted on the plant and published in scientific literature. The vast majority of these studies prove that cannabis is safe and effective for the treatment of many different medical conditions. Research also shows that the side effects from cannabis usage are mild and short lived. There is no lethal dose of cannabis, nor are there any recorded deaths from using too much cannabis. Although there has been abundant research on cannabis and its effects, much of our current research comes from outside the United States. This is due to the fact that cannabis is currently a Schedule 1 Controlled Substance. Currently, researchers in countries such as Israel have discovered 85 different chemical compounds (or cannabinoids) in the cannabis plant. However, scientists suspect that there are still more still waiting to be discovered. Each cannabinoid produces a unique reaction in the human body with different combinations and ratios of use leading to a range of effects in individuals. Cannabinoids Perhaps the best known cannabinoid is THC, which is well known for its psychoactive effects. However, this can be effective in the treatment of insomnia, PTSD, chronic pain, cancer or glaucoma (among many conditions). In these cases, the impact this cannabinoid has on the human mind is seen as its biggest therapeutic benefit to the treatment of many different medical conditions. CBD has many known medicinal uses: Chronic pain: Through its ability to alter the brain s pain responses and reduce inflammation in the body, this component of cannabis has helped millions of Americans receive relief from constant, debilitating pain. Epileptic seizures: In children and adults with epilepsy, it has also been shown to be a successful treatment for those who have been resistant to traditional treatments and medications. Research indicates that CBD can be helpful in reducing the severity and number of seizures adults suffer. Cancer: CBD is used as way to control pain. New research is starting to indicate that CBD has the ability to reduce the size of malignant tumors and can reduce the spread of cancerous cells throughout the body. PTSD: Those who suffer from mental illnesses such as anxiety have found relief from the use of CBD. It also has been used with veterans of the armed forces because CBD often alters the receptors in the brain that trigger anxiety or fear.

Another cannabinoid called cannabidol (also known as CBD) has been the focus of increasing amounts of scientific research. In addition to being known to suppress the psychoactive effects of THC, CBD is currently being used for the treatment of many medical conditions. It is a powerful anti-inflammatory, anti-spasmodic and neuroprotective substance. The Endocannabinoid System Twenty years ago, a group of researchers discovered a group of receptors throughout the Central Nervous System that is uniquely triggered when exposed to cannabinoids such as CBD. Interestingly, the endocannabinoid system is present in all known creatures around the world with the exceptions of insects. The receptors in this neural system connect the mind and body in important ways that can only happen when medicinal treatment by cannabis occurs. The endocannabinoid system works to help control how individuals feel, move and react to the world around them. If awareness was greater about this system and its importance in the human body, the debate about the medicinal use of cannabis would be greatly diminished. Current + Future Market Growth Nationally, the legal cannabis market is rapidly growing. In 2015, legal sales of cannabis grew to $5.4 billion, from $4.6 billion in 2014. 1 Demand is only expected to grow in 2016 and beyond. 2 Current revenue estimates project legal sales of cannabis will grow to $6.7 billion during 2016. This growth is fueled in part by the explosive growth in legal adult use of cannabis, a sector of the market which has grown from $351 million to $998 million in 2015. Over the next five years, the legalized cannabis industry is expected to grow to $21.8 billion dollars. Adult recreational sales alone are expected to comprise twothirds of the market. However, these numbers do not account for the over $50 billion dollars currently generated by black market sales of cannabis yearly. 3 These illegal sales of cannabis point to a market whose potential is currently unrealized. It is estimated that only 10% of the cannabis industry has entered the legal sector. The states that have legalized their marijuana markets have shown us what the future could look like: Washington saw a 299% increase in monthly sales, going from $18.8 million in January to $75.3 million in December 2015. The state is projected to the biggest marijuana market in the nation by 2020 with sales of $2.3 billion a year. Colorado is expected to be close behind Washington with sales of over $2 billion yearly by 2020. Currently, Colorado recorded sales of $996 million in medical and recreational sales in 2015. 4 Adult use sales alone increased 88% to record revenues of $588 million. Wholesale sales are also strong, growing 163% to hit $234 million in 2015. 5 In their first week of sales alone, the Oregon Retailers of Cannabis Association estimated sales of over $11 million. In their first 6 months of legal sales, sales of adult recreational use cannabis have exceeded $200 million. 6 California is projected to be the largest medical marijuana market in the United States and is estimated to hold this position through 2020. While new regulations and the anticipated legalization of adult use in 2016 is expected to reduce the size of the medical market, it is still projected to reach revenues of $2.6 billion.

2015 State Market statistics According to the Denver Post, Colorado dispensaries recorded $996 million in medical and recreational cannabis sales during 2015. 3 Adult use recreational sales totaled $588 million while medical marijuana revenues totaled $408 million. That s an increase of nearly $296 million from 2014, the first full calendar year of recreational sales in Colorado when revenue totaled just under $700 million. According to calculations from the state s revenue department from 2015, recreational cannabis sales via licensed retail stores grew 88% in Colorado. 4 Washington also saw strong growth in monthly sales in 2015, growing by 299% from $18.8 million in January to $75.3 million in December. Oregon launched its adult recreational use market with limited sales through existing medical dispensaries on October 1, 2015. Although the state does not track adult recreational use sales, the Oregon Retailers of Cannabis Association estimated that sales in the first week alone were $11 million. In their first six months, more than 300 dispensaries licensed to sell adult-use cannabis have exceeded over $200 million in revenues. References 1 http://www.cnbc.com/2016/02/01/legal-us-pot-sales-soar-in-2015.html 2 https://www.newcannabisventures.com/wall-street-cannabis-report/ 3 http://mjbizdaily.com/report-marijuana-legalization-battering-blackmarket-in-colorado/ 4 http://www.thecannabist.co/2016/02/09/colorado-marijuana-sales- 2015-reach-996-million/47886/ 5 http://mjbizdaily.com/report-marijuana-legalization-battering-blackmarket-in-colorado/ 6 http://www.oregon.gov/olcc/marijuana/pages/frequently-askedquestions.aspx

Tax + Economic Benefits to the States States where cannabis use has been legalized such as Colorado have provided an example of how tax revenues can be impacted by cannabis sales. In Colorado, the state collected more than $135 million in taxes and license fees during 2015. This amount is double what the state collected by liquor sales during the same time period. 1 In Washington state, legal cannabis sales generated $70 million in tax revenues. State tax revenues are only expected to grow over the next several years. Oregon s cannabis tax has raised almost $10 million from adult recreational use cannabis. 2 In Illinois, wholesale medical sales of cannabis alone reached revenues of $1.5 million during the first months of legalized sales. 3 These tax revenues can be used for a number of different projects include road construction and for public schools. In addition to tax benefits, many jobs are created by legal cannabis sales. It is currently estimated that 46,000-60,000 people in the United States work in this industry. While some grow the plant for medicine or adult consumption, others conduct medical research or manufacture infused products or work in clinics. The number of jobs in the industry increases exponentially, when ancillary positions such as bookkeepers, attorneys or advertising jobs are factored in. Reference 1 http://www.thecannabist.co/2016/02/09/colorado-marijuana-sales-2015-reach-99-million/47886/ 2 http://www.oregon.gov/olcc/marijuana/pages/frequently-asked-questions.aspx 3 http://extract.suntimes.com/news/10/153/11286/illinois-collects-more-than-100-thousand-taxesmedical-marijuana-sales-first-two-months For more information, contact: Thom Garlock Verde Mountain Fund, LLC P.O.Box 30,000 970 W. Broadway #446 Jackson WY 83002 Phone: 800-914-2689 Email: Thom@VerdeMountainFund.com Information for Prospective Investors The purpose of this document is to provide general information relative to potential investment in Verde Mountain Fund,LLC. Offers will only be made to qualified Investors. This document has been provided to you for information and illustrative purposes only. Please read the prospectus for risk factors and investor qualification requirements.