1. Cannabis Testing:The Current Landscape © 2011 Pure Analytics, LLC

2. Agenda Cannabis Testing: The Current Landscape The importance of testing The dynamic market The issue of oversight Questions patients and collectives should ask Applications of Potency Testing in the Development of non-THC Dominant Strains Identification Predictive crosses and collapsing the cycle time for CBD-rich strain development © 2011 Pure Analytics, LLC

3. Cannabis Testing: The Current Landscape The Importance of Testing Provide objective information to patients for use in selecting: Cannabinoid profile, THC:CBD Overall dosage level, THC + CBD Promote the availability of medically-important cannabis options such as CBD-rich varieties Through strategic testing programs we can collapse the cycle time for making these medically-important strains available at the dispensary and patient level Cannabis testing supports the legitimization of the cannabis movement © 2011 Pure Analytics, LLC

4. Cannabis Testing: The Current Landscape Dynamic environment Prevalence of testing is on the rise The cost of testing has driven dispensary choices in the past New laboratories emerging every month to take advantage of the economic opportunity Increasing occurrence of non-scientists offering analytical services Instrument companies marketing to collectives and non-scientists to do their own testing Patients and collectives are asking important questions about reliability of results they are investing in © 2011 Pure Analytics, LLC

5. Cannabis Testing: The Current Landscape The Issue of Oversight Cannabis testing is currently un-regulated In a regulated environment a customer can simply choose a lab that is “certified” to an agreed set of standards Method validation- Systematic verification that an analytical system is repeatable and reliable Quality Control- Ongoing checks that repeated measurements agree Calibration requirements- Frequency Acceptance criteria © 2011 Pure Analytics, LLC

6. Cannabis Testing- The Current Landscape Factors Affecting Accuracy & Precision in Potency Testing Sampling of product for testing at dispensary Sampling of product at the lab Scales / balances Volume measurement equipment Calibration of equipment Use of certified standards: chemical products certified for content of THC, CBD & CBN Allows results to be consistent regardless of lab and which machine is used Proper maintenance of equipment Side-by-side testing between facilities or third parties helps confirm accuracy © 2011 Pure Analytics, LLC

7. Cannabis Testing: The Current Landscape Variations in methods used Choice of instrument GC vs HPLC or TLC Within GC, FID vs TCD vs MS detection Both GC and HPLC produce accurate results TLC (test strips) are usually used for qualitative purposes to determine if active compounds are present, but not their amounts Instrument needed depends on the application of results © 2011 Pure Analytics, LLC 99%

8. The Potency Testing Process Gas Chromatography High Performance Liquid Chromatography A high pressure stream of solvent helps move compounds to the detector System at ambient temperature Detects THC, THCA, CBD, CBDA Can detect cannabinoid acids Analysis produces a lot of solvent waste A low pressure stream of gas helps move the compounds to the detector Heated system Detects total available THC, CBD and CBN Cannot detect cannabinoid acids Analysis does not produce significant waste © 2011 Pure Analytics, LLC

9. Cannabis Testing: The Current Landscape In the current non-regulated environment the consumer has to be savvy and know what questions to ask a prospective cannabis lab 10 Questions for a prospective cannabis lab: What training or expertise do you have to be able to perform cannabinoid analysis? What is your method for testing cannabis? What are the limitations of your selected method? Which cannabinoids do you test for? Do you have reliable reference standards for all of them? Analytical methods need to be ‘validated’ before you can be sure they are fully reliable. Have you done this already, and how did you do this. Did it include a third party? If you didn’t do it yet, how can I be sure my results will be accurate? How is CBN related to THC, and why is it important to test for it? © 2011 Pure Analytics, LLC

10. Cannabis Testing: The Current Landscape 10 Questions for a prospective cannabis lab, con’t: Are you aware of acidic cannabinoids? In samples such as edibles and tincture they can be present at high levels. How do you deal with that? What is the average THC/CBD content your lab has measured? Did your lab ever test the same cannabis twice, with very different results? What was the explanation for that, and what has been changed to prevent it from happening again? What kind of samples do you test (flowers, edibles, tincture)? Have you optimized your extraction and analysis protocol for each kind of sample? What do you do with left-over samples? Contributors: A. Hazekamp, J. Raber, N. Palmer, E. Taylor, P. Morris, S. Miller © 2011 Pure Analytics, LLC

11. Applications of Potency Testing Collapsing the Cycle Time for Developing CBD-Rich Cannabis © 2011 Pure Analytics, LLC

12. Developing CBD-rich Cannabis Potency testing can accelerate the development of CBD-rich varieties of cannabis through Isolation of genetics of interest Strategic hybrid crosses supported by early-stage growth testing Characterization of final product © 2011 Pure Analytics, LLC

13. Developing CBD-Rich Cannabis First step- identification of CBD-rich strains With the availability of potency testing several CBD-rich strains have been identified, Cannatonic, Sour Tsunami, Harlequin and many more Where seeds are commercially available this provides a starting point for those looking to produce CBD-rich cannabis © 2011 Pure Analytics, LLC

14. Developing CBD-Rich Cannabis Next- isolation of a CBD-rich specimen All currently available seed stock for CBD-rich strains are a mixture of high-THC, high-CBD and low-CBD genetics In most cases, only 25% of those seeds are expected to yield a CBD-dominant cannabis plant Strategic use of potency testing can isolate those CBD-dominant plants before the flowering stage © 2011 Pure Analytics, LLC

15. Developing CBD-Rich Cannabis Early Stage Testing to Support Strategic Parent Selection Cannabinoid profile can be characterized within the first several weeks of the emergence of the shoot from the soil Botanically specific leaves are sampled and analyzed The results provide an accurate profiling of the relative THC:CBD content in the flowers produced by the plant Method can be applied to both males and females © 2011 Pure Analytics, LLC

16. Developing CBD-Rich Cannabis Isolation of CBD-dominant plants during the vegetative state offers several advantages: Avoid expensive and time-consuming back-cloning of all seeds by isolating only those plants of interest Support selection of high-CBD parents for future crosses without waiting an extra growth cycle to determine which plants are CBD-rich through final flower testing Collapse the development cycle-time for isolation or breeding of high-CBD strains down to weeks rather than months or years © 2011 Pure Analytics, LLC

17. Thank You Denver! © 2011 Pure Analytics, LLC