General Cannabis (CANA) NBT EQUITIES Research Report

NBT EQUITY GROUP, INC.
nbtequitiesresearch.com
NBT Equities Research, LLC
NBT Capital Markets, LLC
NBT Communications, LLC

Expanding Coverage: General Cannabis, Inc. dispensary traffic marketing — EXCEPT the
(CANA.PK) cultivation and retail dispensing of cannabis.

Date: April 11, 2011 The Investment Thesis: General Cannabis is the
dominant medicinal cannabis MSO in the
United States. With the completion of a
secondary $20 million equity funding later this
spring, CANA will expand their industry
domination via key acquisitions and will
continue monetizing their Internet properties
with 15%-20% monthly revenue growth over
Website: www.generalcannabis.com the next 18 months. By 2012, CANA should
become a $60 million+ revenue company and
Initial Recommendation March 1: $3.00
grow to a $1 billion market valuation by 2014 as
Strong Buy: 2011 target $6.50, 2012 $8.50 more than 25 states will have approved
medicinal cannabis legislation.
2010 Revenues: 7.2M
We expect that General Cannabis Inc. will up-
2011 Revenue (est.): 18.5M
list its common stock listing to a full national
2012 Revenue (est.): 62.5M Nasdaq listing and inclusion within multiple
Russell indexes and popular retail indexes.
2012 Earnings per Share (est.): 0.35 a share

Shares Outstanding: 83.14M NBT assumes additional medicinal cannabis
legislation is inevitable across the U.S. and
Share Float: 20.2M Canada because it works, it is humane, and it is
Average Trading Volume: 37,522 cost-effective versus other treatment
alternatives. States and cities will continue to
Analyst: Tobin Smith, Chief Research Analyst need the tax revenues available from retail
dispensing of medicinal marijuana and its
related products and services.
The Company: General Cannabis Inc., founded
in 2009, is an Internet-technology-driven retail NBT also believes General Cannabis will expand
health care marketing services organization its retail MSO to additional high-growth retail
(MSO) addressing the fastest-growing retail medicine vertical markets where they can easily
medical market in the United States: medicinal and effectively exploit their patient acquisition
marijuana. They dominate every part of the and retention platform. Examples include
value chain in the medicinal cannabis industry “runner knee and ankle” bone and cartilage
— patient information, patient acquisition, and regeneration, advanced obesity treatments, and

1 Copyright © 2011, NBT Equities Research, LLC


newly approved advanced body and facial We base our market estimates and growth rates
cosmetic surgery procedures. on:

The Medicinal Marijuana and Product/Service  15 states and D.C. currently approved
Market: Based on our review of existing studies for medicinal cannabis expand
and primary research into the market, NBT dispensary locations over 100% CAGR
estimates that, because of the hodge-podge set from 2011-2015
of reporting and maze of city-by-city  10 states with pending medicinal
regulations, the annual retail market for cannabis legalization on the ballot with
medicinal cannabis and related products and a high likelihood of positive election
services at $3 billion to $5 billion with minimum results. Per Procon.org, the states are
50%+ CAGR growth rates over 2011-2015. Alabama, Connecticut, Delaware, Idaho,
Illinois, Maryland, Massachusetts, New
Furthermore, if ALL sales of cannabis consumed
Hampshire, New York, and North
for primarily medicinal purposes were actually
Carolina.
reported, NBT and other research organizations
 12 additional states with active
estimate the annual market would be $8 billion
legalization organizations working on
to $10 billion. With sales tax, licenses and other
ballot initiatives (per Reform and other
tax schemes, NBT estimates the potential
cannabis advocacy organizations).
annual tax revenue at the state and city level at
 Medicinal cannabis related products
$2 billion in 2014 and up to $10 billion a year by
and services (vaporizers, delivery
2020.
services, etc.) of nearly $500 million in
2011 growing to $1 billion in 2014.

Total Estimated U.S. Marijuana Market



If the federal government legalizes or downgrades medicinal cannabis from Schedule I to Schedule II,
legal medicinal cannabis will undoubtedly become a $20 billion to $25 billion annual market in the
United States and Canada.

The Business of Medicinal Cannabis in the United States

If you don’t live in a state or city with legalized medicinal cannabis, it will be hard to imagine the Wild
West nature of the legal medicinal cannabis business today in the United States. Almost every city or
state has a different set of rules for the legal dispensing of medicinal cannabis. We will only address the
basics of the industry here.

A) Medicinal cannabis is not prescribed like pharmaceuticals. In most states, physicians provide a
“recommendation letter” to the patient based on a routine office visit and review of existing
health records.
B) The recommendation letter usually lasts for a one-year period and must be renewed.
Temporary 90-day recommendation letters are available in most states and cities for patients
without possession of medical records. If medical records fail to appear to the recommending
physician, temporary recommendation letters expire.
C) Dispensaries rules run the gamut: Some are required to grow all their own cannabis, some are
required to buy from regulated growers, and some states and cities allow for both.
D) “Budmasters,” aka dispensary store owners, run the gamut from aging hippies to pot-advocate
twentysomethings to wellness health providers and buttoned-down business people.

Medicinal Cannabis Treatment Applications

Cannabis/THC has been successfully used to treat more than 25 major chronic and episodic health
conditions. These include:

 AIDS (HIV) & AIDS Wasting  Migraines
 Alzheimer's Disease  Multiple Sclerosis / Muscle Spasms
 Arthritis  Nausea / Chemotherapy
 Asthma / Breathing Disorders  Pain / Analgesia
 Crohn's / Gastrointestinal Disorders  Psychological Conditions
 Epilepsy / Seizures  Tourette's Syndrome
 Glaucoma  Terminal Illness
 Hepatitis C



The Opportunity General Cannabis Addresses

Literally every dispensary open or opening requires a host of one-time and ongoing professional and
marketing services. Every medically approved patient has numerous recommendation, availability,
quality, and ancillary product questions and issues.

Hundreds of new dispensaries open quarterly nationwide, and tens of thousands of new patients are
registered every month. The rate of growth of those key metrics is expected to rise over the next 12-24
months as major population states come online with new dispensaries and registered patients.

General Cannabis and its separate divisions are in the business of providing an integrated set of online
and offline services that address both patients and dispensaries and their unique needs and issues.

Arizona, where voters last November approved use of medical marijuana for patients, is a good example
of the complexity of the industry. Patients are limited to 2.5 ounces of medicinal cannabis every two
weeks. A total of 125 dispensary certificates are allocated statewide. Approved patients can grow up to
12 marijuana plants until a dispensary opens within 25 miles of their residence.

New dispensaries face a host of issues. For example, in Arizona, they must post a business plan and
$150,000 of capital. In many communities, getting local permits and a willing landlord can be
problematic. Simple things like getting a merchant account for accepting credit cards is difficult to
impossible for new dispensaries.

Similarly, physicians who wish to be involved in the recommendation side of the industry have multiple
legal and business issues to navigate.

General Cannabis provides key enabling services to both the dispensary and physician. The entire
business strategy is to leverage their Internet and call center skills and assets to solve the most
important problems and provide the most effective solutions for physicians, dispensaries, and ultimately
patients.

Marketing Services

Assuming all the formation tests are passed, NOW the dispensary and the recommending physician
need patients.



This is the primary focus of General Cannabis’ integrated package of patient acquisition and retention
services. The general strategy is to create and build trusted brands with regard to:

 Physician recommendation/state registration card
 Dispensary location
 Cannabis quality and attributes—today’s cannabis is highly specialized with enormous variability
and levels of THC and effect

Patients face an enormous and formidable set of problems and issues to deal with.

1) Where do they get their physician recommendation or state license? Which physician service
should they choose from? In some cities in California, there are 50 or more physician storefronts
to choose from.
2) Local laws—does one’s recommendation letter work in other locations?
3) Quality and uniformity of medicinal cannabis—most dispensaries feature over 50-60 various
strengths and strains of cannabis. Some individual stores grow their own supplies. In other
venues, medicinal cannabis must be purchased from licensed growers.

With its various brands, General Cannabis seeks to bring a trusted brand and a sense of uniformity to
the business of qualifying, finding, and using medicinal cannabis.

General Cannabis Basic Value Proposition--Advertisers

The average storefront dispensary averages $20,000 in monthly sales. Six months after a dispensary
begins, the General Cannabis marketing program, monthly sales average over $40,000 a month.

Physician storefronts average 50 patients a day at $80 per patient. General Cannabis storefront
physician locations average 200 patients a day at $150 average recommendation fee.



General Cannabis Corporate Structure

WeedMaps Media, Inc.
legalmarijuanadispensary.com
Combining media, technology and marketing;
#1 dispensary finder site in the United States;
1,100 clients, 6 million page views per month
2011 objectives: creation and scaling of content
Execution of 2 new finder sites

WeedMaps.com



General Health Solutions, Inc.
Turnkey management system for medicinal cannabis clinics;
Scheduling on average over 4,000 patients per month
14 medicinal cannabis clinics under management

2011 objectives: Management & operation of 20 clinics
Cross-sell high-end medically approved devices

General Merchant Solutions, Inc.
cannapayservices.com
Credit card processing for cannabis and non-cannabis industries
Most advanced technology
Cross sell through multiple verticals

2011 objectives: Approving 50 new applications per month
Complete new direct-to-bank relationship

General Marketing Solutions, Inc.
cannabiscenters.com
Online interfacing, marketing and optimizing of health care facilities in the medicinal cannabis industry

2011 objectives: Providing professional physician network for cannabis and non-cannabis related
specialties

CannaCare Management, Inc.
cannacare.com
CannaCare.com offers interaction between patients, physicians and legal experts as it relates to the
medicinal cannabis industry

2011 objectives: Execution of medical cannabis site providing professional resources for the baby boom
generation
Generate ad / sponsor revenue streams

15%-18% Monthly Revenue Growth for 2011-2012

General Cannabis has maintained a 15%-17% monthly growth rate from its various subsidiaries and
divisions. Management believes this growth rate will continue as new dispensaries continue to open at a
25%-50% annualized rates (depending on states) and registered patients grow at 3-5% monthly growth
nationwide.



The company reported consolidated gross revenues of $7,699,634 for 2010, up from $2,670,721 in
2009.

With the addition of numerous existing cannabis web sites and verticals, NBT forecasts and additional
3%-5% top line growth from these newly acquired properties as General Cannabis applies its highly
effective search engine optimization (SEO) and call center sales efforts.

General Cannabis has 10 acquisition targets that we assume will conclude in 2011 with the closing of
$20,000,000 in additional equity capital (via secondary equity offering).

WeedMaps Media, Inc.

Sponsored
Month-Year Revenue Total Listings
Listings
Jan-2009 0 0 34
Dec-2009 $49,600 5 961
Total-2009 $94,800

Jan-2010 $111,400 27 989
Dec-2010 $481,300 1113 1879
Total-2010 $3,300,000

Jan-2011 $530,000 1241 2144

WeedMaps Media Inc. revenues increased for the 16th consecutive month ending in March 2011, and Q1
2011 is the most successful three-month period in the company’s history.

General Health Solutions, Inc.

# Of Managed
Month-Year Revenue # of Patient Visits
Clinics
Total-2009 $2,100,000 8 22,000
Total-2010 $4,300,000 11 60,000



General Merchant Solutions, Inc.

Month-Year Processing Volume Approved Applications

Jan-2010 NA NA
Dec-2010 $750,000 26
Total-2010 $1,250,000 64

Jan-2011 $1,200,000 34

Corporate Highlights 2011

 WeedMaps.com grew revenue 15% per month in Q1
 WeedMaps.com expands active user base of 60,000 patients Q1
 WeedMaps.com is the most optimized website in the industry and dominates rankings for the
most popular search terms, including “dispensary.
 WeedMaps.com launches new version of the website in April. Portal now includes doctors,
lawyers, skate shops, and surf shops. Also included is a Daily Deal coupon system. General
Cannabis expects revenue to double from these additional channels.
 General Health Solutions Inc. now manages cannabis medical facilities that see greater than 4,000
patients per month of which approximately 60% are new patients and the 40% renewal.
 General Heath Solutions anticipates opening 10 new medical clinics in 2011.
 General Cannabis has recently signed an LOI with CannabisCenters.com, the leading portal for
marijuana physicians and patients. Through their monetization strategy and synergy with their
own clinics, they anticipate CannabisCenters.com to generate significant income in 2011.
 General Merchant Services, a subsidiary of General Cannabis, is a merchant payment solution
provider and has increased 25% in its first month of business. Targeting over 2,000 dispensaries
and medical clinics, they estimate servicing over 500 clients by year-end 2011.



Q & A with General Cannabis Management A: Currently about 60%. However, we’ve
recently incorporated SalesForce.com software
and hired a new COO. As a result of being
Q: CannaCare Management Inc is aimed at the better able to track and communicate with the
Baby Boomer segment ... can you elaborate on patient base, and having a very detailed
this? oriented COO overseeing, among other things
the call center, I believe within 60 days we’ll be
A: We are developing a new suite of websites, closer to 75%.
centered on CannaCare, creating the definitive
web portal for the 35 to 65 (and up) age group. Q: The 15%-18% monthly growth rate --can
These sites are designed to objectively and you break down those rates by WeedMaps,
clearly answer questions regarding medicinal GHS and General Merchant Systems.
cannabis. We’ll answer questions as they relate
to dosage, quality, quantity, application, and A: Weedmap Sales: January $550,000 /
testimonials. Dr. Bonni Goldstein will be February $640,000 / March $750,000
featured on the site. Since we’re building a We’re expanding the WeedMaps site to cover
studio in our offices, we’ll be able to have daily cannabis physicians and lawyers (similar to
videos of Dr. Goldstein with guest speakers dispensary listings). We believe within 90 days
and/or individuals who are providing we’ll be generating approximately
testimonials. $200,000/monthly sales from this vertical. From
there we anticipate launching a new vertical
We will monetize these sites through the every 60 days and anticipate similar success.
following ways: 1) the sale of advertising space
(i.e., physicians and attorneys), 2) through the General Health Solutions: Though the first 60-
sale of business services, 3) the sale of plus days of the year were basically flat, we’re
proprietary office management software, and 4) now starting to see success from our labors.
where laws permit, providing marketing Our appointments are up about 15% from
services for physicians. January and will continue to increase month-
over-month.
We currently generate between 600 to 800
phone calls and set over 200 appointments per Q1 of 2011 was a revamping period for GMS.
day from people interested in learning about, or April 1 was the launch of CannaCare, our new
setting an appointment to obtain, a letter of dba and branding for our medical clinics. Along
recommendation. These are for the clinics we with this change, we are launching a new
manage. We can easily increase the number of website, new marketing program, implementing
phone calls to provide leads for clinics that we many new online revenue channels -- i.e., ad
don’t manage. We now have the office space to network offerings, new offline channels, direct
scale very easily. work with local cancer groups by Dr. Goldstein.
Q2 will bring Dr. Goldstein’s content across all
Q: What is the renewal rate on letters of of our properties and we expect conversions to
introduction for registered users?



increase by 10% to 15% the minute we include well. We still have plenty of opportunities
her videos in our marketing. available to continue strong growth with this
program. In February we billed approximately
We have implemented Salesforce.com into our $40,000 in Daily Deals. We targeted finishing
operations and hired a new COO with vast March with over $75,000 for Daily Deals. Our
experience in sales and call center April projection for Daily Deals is $130,000. We
management. Early analysis hints at possible are in development on a new version of our
improvements of 10% to top line through the daily deal for non-cannabis-related products but
optimized use of our data. Concurrently we cater to the demographic. We hope to launch
expect costs to decrease with Salesforce.com, this feature in Q2.
systems with new COO and implementation of
proprietary software we built over Q1. This
software works in conjunction with Management
SalesForce.com and we have the option to
monetize this software over the Salesforce App General Cannabis has an ideal combination of
exchange. Additionally, our patients will be able Internet technology experts and practice
to schedule online which should only further management professionals. As a primarily
decreases costs. Bottom line, our technology Internet-technology-driven company (with a
will allow us to improve employee output at secondary emphasis on call center sales
less expense. management) General Cannabis has the right
team, in our opinion, to build a significant
General Merchant Solutions: Gross credit card enterprise.
processing revenue was $1.2 million in January,
$1.6 million in February and we’re on track for Jim Pakulis is the seasoned veteran of the
over $2 million in March. Two things are going executive management team and leads the
to happen in the GMS division. First, we have overall day-to-day operations. Justin Hartfield is
strong interest from 3 separate groups that the technology genius who pushes the envelope
want to provide us financing and/or allow us to on the tech and Internet side. Keith Hoerling is a
run our business through their backend, which top Internet development talent who gives
will provide a greater spread. Second, we’re General Cannabis the ability to expand their
going to be hiring upwards of 6 sales people technology leadership.
over the next 90 days to materially increase
volume and sales. We needed to wait until we Doug Francis is the entrepreneurial visionary
had our systems in place, which we now have. and dealmaker.

Q: Update on the "Daily Deals"? Is this still We expect to see a key middle management to
ramping? What are the economics? evolve and ultimately we expect to see the
company expand into non-cannabis retail
A: 10,000 subscribers in the first 30 days. health care vertical segments.

The Daily Deal program has been a tremendous
success in our larger regions and it is gaining
traction in some of the less active regions as



Doug Francis, Chairman and President Justin Hartfield, Chief Web Officer
33 years old, Doug has been a director and the 26 years old, Justin has served as the Chief Web
COO of General Cannabis, Inc. (OTCPK: CANA) Officer of General Cannabis since November
since August 2010. From 2008 to present, Mr. 2010. Mr. Hartfield is also the co-founder and
Francis has been the CEO of Synergistic CEO of WeedMaps Media, a subsidiary of
Resources, LLC, an entity specializing in the General Cannabis. Mr. Hartfield serves on
management of physician owned healthcare multiple boards, including the National
facilities throughout California. In November Cannabis Industry Association and The
2009, Mr. Francis also became COO of Prometheus Institute, a nonprofit focusing on
WeedMaps Media, a leading cannabis vertical increasing civic engagement through
and web 2.0 site. From January 2001 to October technology. Mr. Hartfield is one of the foremost
2007, Mr. Francis served in a senior authorities on search engine optimization
management position at two financing related strategies and has held numerous positions in
firms in Southern California. Mr. Francis the internet technology field. Mr. Hartfield
received his BS in Finance from Chapman received his BS in from University California at
University in 2001. Irvine in Information and Computer Sciences
and is currently enrolled in the Paul Merage
MBA program also at the University of
Jim Pakulis, Chief Executive Officer California at Irvine.
47 years old, Jim has been a director and the
President and CEO of General Cannabis, Inc.
(OTCPK: CANA), since August 2010. Mr. Pakulis Keith Hoerling, Chief Technology Officer
is also Chairman of the Board for LC Luxuries 29 years old, Keith has served as the CTO of
Limited. Mr. Pakulis had been an advisor to General Cannabis since November 2010, the
Synergistic Resources, LLC since January 2010 to parent company of WeedMaps Media; and the
present. Since June 1995 Mr. Pakulis has also Prometheus Institute, a nonprofit that
been an owner and/or consultant in start-up minimizes government by fusing technology
companies in various industries including with social crowd-sourcing. Mr. Hoerling is one
internet, finance, real estate and insurance. of the premier developers in this country, has
From 1990 to 1995, Mr. Pakulis oversaw all been recruited by Fortune 100 technology
mergers and acquisitions in the western United companies internationally and consulted with
States for CliniCorp Inc., a publicly traded entity top Internet firms in California such as Internet
that had specialized in healthcare clinic Brands. Mr. Hoerling received his BS in
management and operations. From 1987 to Information Technology from Chapman
1990, Mr. Pakulis was involved in the healthcare University in 2003 and he routinely confers with
industry overseeing day-to-day operations for the brightest minds on Web today.
several privately held multi-disciplinary clinics in
the Los Angeles area. Mr. Pakulis received his (Source: General Cannabis Website)
BA in English from The Ohio State University in
1987.



Corporate Firsts for General Cannabis combination of medicinal cannabis and
technology, media, healthcare and
1. Only company to accumulate massive management
data and content in the cannabis 10. Only company to offer dispensaries the
industry. Data dominance. opportunity to “state their true
(WeedMaps.com, MMEC, profession” on credit card processing
CannabisCenters.com) applications
2. Only company with nations largest 11. Only company to offer objective,
Dispensary Finder Site servicing over information data for healthcare
1,100 clients (WeedMaps.com) providers, patients and the legal
3. Only company to reach over 6 million in community as it relates to the cannabis
monthly page views (WeedMaps.com) industry (Cannacare.com)
4. Only company to achieve over 90,000
registered users in the medicinal
cannabis industry (WeedMaps.com) Capital Structure
5. Only company to offer monetized daily
The company is the result of a reverse merger
group coupons, prizes and games to
in September 2011. General Cannabis
dispensaries through “Daily Deals” and
completed at private placement of $1.2 million
“WeedFreedbies.com”
in December 2010.
(WeedMaps.com)
6. Only company to scale the Shares Outstanding is 83.14 million as of April 1,
management of medicinal cannabis 2011 with a share float of 20.2 million.
clinics – totaling 14 clinics with over
60,000 patient visits (Medicinal General Cannabis filed an S-1 registration of
Marijuana Evaluation Centers) 20.5 million shares and a secondary offering of
7. Only company to create medical 5 million shares at $4.00.
appointment setting call center which
averages over 500 inbound calls per day NBT estimates retained earnings and the
(Marijuana Medicine Evaluation proceeds of the $20 million secondary offering
Centers) will provide all the capital required to address
8. Only company to offer the majority of existing and future opportunities. The company
the 15 cannabis friendly states a is cash flow positive now and, with this
physician / patient finder site additional capital, has an ambitious plan for
(CannaCare.com) new acquisitions.
9. Only company to capitalize, monetize
and report revenues from the



Use of Proceeds

# Estimate Profitability

1 $5,500,000 Currently profitable with huge untapped revenue potential (estimated $500,000 per
month in less than 12 months of optimizations).

2 $2,000,000 Est. - $75k/mo by month 6

3 $1,500,000 Est. - $25k/mo. Potential for $100k/mo with a few months of optimization and tweaking.

4 $750,000 Est. - $40k/mo

5 $800,000 Est. - $50k/mo

6 $500,000+ Est. - $200k/mo in revenue

7 $300,000 Est. - $10k / mo from Day 1 of operation with market distributive potential.

8 $300,000 Defensive and offensive play

9 $1,500,000 7 Developers; 6 Coders; 2 Architect; 3 Project Managers

10 $2,000,000 Additional acquisitions

$15,150,000 Total Acquisitions

Valuation Model Risks

In process. We currently forecast $0.35 a share In general, the biggest risk for General Cannabis
in 2012 based on 85 million shares and $62.5 is a giant shift in the regulatory climate.
million in revenues (including new acquisitions Currently the federal government’s position
listed). does not support medicinal cannabis but
recognizes the states’ rights over the federal
A complete financial model will be updated. position.



In such a fragmented industry there is no one General Health Solutions, Inc.
marketing services company close to the
market share or revenue growth of General General Health Solutions, Inc. (GHS) is the
Cannabis. With their acquisition plan complete largest management company in California
by end of 2011 we expect their dominant specializing in the management of medicinal
position in medicinal cannabis MSO to increase cannabis health care clinics. Their proprietary
significantly. SEO processes and implementation results in
over 500 fielded telephone calls per day from
However, with such a rapidly growing industry, individuals seeking to learn about the process of
we foresee no issues to constrain General meeting with a physician that may provide a
Cannabis’s growth. letter of recommendation to the patient,
thereby allowing the patient to obtain
medicinal cannabis at an independent
Competition dispensary. In addition, the company provides
24/7 verification-processing services to third
WeedMaps Media, Inc. parties seeking to verify the validity of the
patient’s Letter of Recommendation.
WeedMap controls approximately 70% of the
dispensary finder site market in the United The competition in this sector tends to be sole
States. WeedMaps is confident that it will practitioners that may also be generalist and
remain the #1 dispensary finder site as a result offer other healthcare services. Though illegal in
of the experienced WeedMaps sales force that the State of California, some nurse practitioners
continuously sell services to dispensaries, or physicians assistants also write letters of
provide industry updates, and monitor the recommendation for patients. Through their
overall industry. management contract, GHS requires all medical
doctors to be licensed in the State of California
WeedMaps Main Media’s competition: and be in good standing with the medical board.
General Health Solutions, Inc. is in the due
WeedTracker (http://www.weedtracker.com) diligence process to determine whether to
Pot Locator (http://www.potlocator.com) expand beyond California.
THC Finder (http://www.thcfinder.com)
GPS 420 (http://www.gps420.com) Federal Perspective on Cannabis

Not only is CANA the leader in this space when Medical cannabis decriminalization is generally
it comes to serving physicians, dispensaries and referred to as the removal of all criminal
patients, but there's no direct competition penalties for the private possession and use of
around for miles. The company continues to cannabis by adults, including cultivation for
expand through acquisitions, having already personal use and casual, nonprofit transfers of
bought the early leaders and now scooping up small amounts. Legalization is generally
the secondary players. referred to as the development of a legally
controlled market for cannabis, where
consumers purchase from a safe, legal, and
regulated source.



The United States federal government regulates 13. Nausea
drugs through the Controlled Substances Act 14. Pain
(21 U.S.C. § 811), which places controlled 15. Spasticity
substances, including cannabis, in a schedule. 16. Wasting Syndrome
Cannabis is classified as a Schedule I drug,
which is viewed as highly addictive and having Though officials of the United States federal
no medical value. Doctors may not prescribe government have consistently denied that
cannabis for medical use under federal law; marijuana has any medical benefits, the United
however, they can recommend its use under States federal government actually holds
the First Amendment. In 2010, the United patents for the medical use of the plant. US
States Veterans Affairs Department clarified Patent 6630507 titled "Cannabinoids as
that veterans using medicinal cannabis will not antioxidants and neuroprotectants" which is
be denied services or other medications that are assigned to The United States of America, as
denied to those using illegal drugs. represented by the Department of Health and
Human Services.
The US Government Accountability Office (GAO)
noted the following symptoms or conditions The patent states "Cannabinoids have been
under Appendix IV of their Nov. 2002 report found to have antioxidant properties, unrelated
titled "Descriptions of Allowable Conditions to NMDA receptor antagonism. This newfound
under State Medical Marijuana Laws": property makes cannabinoids useful in the
treatment and prophylaxis of wide variety of
1. Alzheimer's Disease oxidation associated diseases, such as ischemic,
2. Anorexia age-related, inflammatory and autoimmune
3. AIDS diseases. The cannabinoids are found to have
4. Arthritis particular application as neuroprotectants, for
5. Cachexia example in limiting neurological damage
6. Cancer following ischemic insults, such as stroke and
7. Crohn's Disease trauma, or in the treatment of
8. Epilepsy neurodegenerative diseases, such as
9. Glaucoma Alzheimer's disease, Parkinson's disease and
10. HIV HIV dementia."
11. Migraine
12. Multiple Sclerosis The patent was obtained in October 2003.



Key Corporate Events

WeedMaps Media Exceeds $780,000 in Gross Volume In March; Client Bases Exceeds 1,800
Dispensaries, 62,000 Searchable Menu Items Available
APRIL 14 2011
Newport Beach, California – April 14, 2011 – General Cannabis, Inc. (OTCPK: CANA)
(GeneralCannabis.com, Weedmaps.com, CannaCare.com) announces its wholly owned subsidiary,
WeedMaps Media, Inc. achieved another record breaking month in March.
WeedMaps Media gross income exceeded $780,000 in March, up from $620,000 in February and
$530,000 in January. This compares with $182,000 in March, 2010. WeedMaps Media is the largest
dispensary finder site and online medical marijuana community in the US.
Read More

General Cannabis Moves Into Newport Beach Class A Offices; General Merchant Solutions Processes
$2.2 million in Credit Card Volume; General Health Solutions Launches CannaCare; Increases Clinics
Under Management to 14
APRIL 11 2011
(GeneralCannabis.com, Weedmaps.com) subsidiaries including WeedMaps Media, Inc., General Health
Solutions, Inc. and General Merchant Solutions, Inc. moved into over 21,000 of square feet of Class A
office space in Newport Beach, CA in March. The new space allows for the continuing growth of the
company’s technology and sales departments.
General Merchant Solutions reports greater than $2,200,000 in total credit card processing volume in
March, up from $1,700,000 of volume in February. The company began in November, 2010 after
recognizing the absence of credit card processing systems in medical cannabis dispensaries. General
Merchant Solutions currently has over 170 clients.
Read More



WeedMaps Media, Inc. Revenues Increase For 16th Consecutive Month; WeedMaps.com DailyDeals
exceeds 10,000 Subscribers In Less Than 30 Days; ‘LegalMaps’ iPhone Application Exceeds 500,000
Total Downloads
APRIL 04 2011
(GeneralCannabis.com, WeedMaps.com, CannaCare.com) subsidiaries including WeedMaps Media, Inc.,
General Health Solutions, Inc. and General Merchant Solutions, Inc. continues its growth trajectory.
WeedMaps Media, Inc. revenues increased for the 16th consecutive month ending in March, and Q1 is
the most successful three month period in the company’s history. WeedMaps.com is the nation’s
largest medical cannabis website and part of WeedMaps Media, Inc., a wholly subsidiary of General
Cannabis, Inc.
Read More

WeedMaps.com Launches Daily Deal Deep Discount Coupons for Dispensaries; WeedFreebies.com on
pace for over 300,000 page views in February
FEBRUARY 16 2011
General Cannabis, Inc. (OTCPK: CANA) (GeneralCannabis.com, WeedMaps.com) subsidiaries including
WeedMaps Media, Inc., General Health Solutions, Inc. and General Merchant Solutions, Inc. are
continuing their upward growth trajectory and creating new revenue streams in February.
Daily Deals, a new program recently launched by WeedMaps Media, Inc., provides discount coupons
where patients can save up to 60% at participating dispensary locations. Unlike group coupon sites, no
advance purchase is required. Daily Deal Coupons will be visible to WeedMaps end users, the patients,
as an unobtrusive pop-up on the bottom right corner of the www.WeedMaps.com homepage, as well as
any regional listing page on the site.
Read More

WeedMaps Media, Inc. continues to increase Monthly revenues; General Heath Solutions Announces
Plans to Increase Clinics to 14 by the end of February; General Merchant Services Announces Plans to
Increase Clinics to 14 by the end of February; General Merchant Services Processes $1.2 Million in its
3rd Month of Operation; CannabisCenters.com Plans to launch Nationwide Physician Portal in April
2010; General Cannabis, Inc. Finalizes Revyv, LLC Transaction
FEBRUARY 04 2011
The General Cannabis, Inc. (OTCPK: CANA) (General Cannabis.com, WeedMaps.com) subsidiaries are
already showing expected success and growth in the year’s first quarter.



WeedMaps.com, the nations’ largest medical cannabis web 2.0 site and part of WeedMaps Media, Inc.,
a wholly owned subsidiary of General Cannabis, Inc., has improved revenue consistently for the 14th
straight month ending in January 2011. Continuing the streak looks promising as the WeedMaps
development team will soon launch a daily coupon application allowing patients to receive significant
savings. Management is very excited about the monetizing opportunities in this structure and
anticipates launching this program in April 2011 or sooner.
Read More

General Cannabis, Inc. Headquarters Relocate and Expand; Staff Increases with 5 New Strategic Hires
JANUARY 27 2011
Today General Cannabis, Inc. (OTCPK: CANA) (GeneralCannabis.com, WeedMaps.com) announces that it
has signed a commercial lease in Newport Beach, California that offers significantly larger office space
than the prior Costa Mesa headquarters. The leased space provides for expansion of the company’s
sales, call center and marketing divisions. The space also provides an expansive area for the company’s
rapidly growing technology division. The company anticipates taking occupancy on or before February
28th.
Read More

General Cannabis, Inc. Positioning To Be Market Leader In Estimated $45 billion Cannabis Industry
JANUARY 25 2011
As the business of medicinal cannabis continues to grow, so too does the overall cannabis industry. With
a market value ranging from between $45 billion to highs of over $120 billion, Southern California based
General Cannabis Inc. (OTCPK: CANA) is poised to define and lead key sectors in the fragmented
medicinal cannabis industry. A grass roots movement towards medical cannabis throughout the United
States is rapidly growing, and General Cannabis is clearly leading the way. Through a multitude of
technological platforms, SEO marketing advancements and proprietary software applications, General
Cannabis is developing relationships and creating profit centers to select industry sector’s (medical,
legal, dispensaries and credit card processing) that provides ancillary services to the medicinal cannabis
industry.
Read More



General Cannabis, Inc. Finalizes The Purchase Of Revyv, LLC
JANUARY 20 2011
Today General Cannabis, Inc. (OTCPK: CANA) (GeneralCannabis.com, WeedMaps.com) announces the
signing of the final documents for the acquisition of substantially all the assets of Revyv, LLC. Revyv is a
technology firm specializing in the online interfacing, marketing and optimizing of health care facilities in
the medicinal cannabis industry. In addition to acquiring key domains such as CannabisCenters.com and
SafeaccessMD.com, General Cannabis is also acquiring Revyv’s proprietary verification system designed
specifically for the medicinal cannabis industry. General Cannabis intends to use CannabisCenters.com
as one of several company owned medical information and education portals. The company anticipates
expanding on the scope of the site to include a social network for individuals wishing to address
medicinal cannabis issues and topics. The acquisition will increase the company’s healthcare marketing
capabilities throughout states in which General Cannabis, Inc., does not yet have a healthcare presence.
Read More

General Health Solutions, Inc.’s Managed Clinics Exceed $4,000,000 in Gross Sales
JANUARY 12, 2011
Today General Cannabis, Inc. (OTCPK: CANA) announces that the 11 medical clinics that its wholly
owned subsidiary, General Health Solutions, Inc. DBA Marijuana Medicine Evaluation Centers (MMEC)
manages exceeded $4,000,000 in gross sales in 2010. General Health Solutions specializes in the
turnkey management of medicinal marijuana clinics throughout California. The company currently
manages 11 medical clinics and anticipates opening or managing 10 additional clinics throughout states
that permit the use of medicinal marijuana by year-end 2011.
Read More

General Merchant Services, Inc. Processing Volume for December Exceeds $700,000
JANUARY 7, 2011
Today General Cannabis, Inc. (OTCPK: CANA) announces that its wholly owned subsidiary, General
Merchant Services, Inc. exceeded $700,000 in merchant processing volume in December, during its first
full month of operation. The company processed over $500,000 in merchant volume in November, the
month in which General Merchant Services’ full time operations commenced. General Merchant
Services offers credit card merchant services to subscribers of WeedMaps.com, which is owned by
WeedMaps Media, Inc. and 11 medicinal marijuana health care facilities managed by General Health
Solutions, Inc., both of which are wholly owned subsidiaries of General Cannabis, Inc. In addition to
offering credit card processing services to all medicinal cannabis related entities, General Merchant



Services also provides credit card processing services to non-cannabis related industries including
automotive and healthcare.
Read More

WeedMaps.com Experiences Significant Growth in 2010 Creates Medical Marijuana Stock Exchange
JANUARY 5, 2011
Today General Cannabis, Inc. (OTCPK: CANA) formerly LC Luxuries Limited (OTCPK: LLUX)
announces that its wholly owned subsidiary, WeedMaps Media, Inc. had gross revenue of over
$3,000,000 in 2010 compared to gross revenue of less than $150,000 in 2009, its first year of operation.
WeedMaps.com, a division of WeedMaps Media, Inc., is the largest finder site for medicinal dispensaries
in the United States. As of December 2010 over 900 dispensaries were paid subscribers to
WeedMaps.com, up from 27 dispensaries in December 2009. Last week the company also hit a
corporate record for the most simultaneous users on its site. The high traffic volume is a direct result of
the newly launched ‘Medical Marijuana Stock Exchange’ that allows users to search and compare
various cannabis strains. The new cannabis stock exchange shows real-time metrics for price, popularity,
trends and potency.
Read More

General Cannabis, Inc. Opens 11th Marijuana Medicine Evaluation Facility
DECEMBER 21, 2010
Costa Mesa, California – December 20th, 2010 – Today General Cannabis, Inc. (OTCPK: CANA) formerly
LC Luxuries Limited (OTCPK: LLUX) www.generalcannabis.com, www.weedmaps.com,
www.marijuanamedicine.com announces it has entered into a management agreement to manage its
11th marijuana medicine evaluation clinic in Victorville, CA. The 10 other clinics that General Cannabis
manages are located throughout California. The ongoing expansion of clinic management is in step with
the company’s long-term goal of managing or owning at least 20 clinics by year end 2011.
Read More

General Cannabis, Inc. Closes Medical Clinics Acquisition
DECEMBER 14, 2010
Costa Mesa, California – December 14th, 2010 – Today General Cannabis, Inc. (OTCPK: CANA) formerly
LC Luxuries Limited (OTCPK: LLUX) www.generalcannabis.com announces it has formally acquired the
assets of Synergistic Resources, LLC. This acquisition includes the management contract to operate 10
medical marijuana evaluation facilities in California. The business will operate under the name of



General Health Solutions, Inc., a wholly-owned subsidiary of General Cannabis. General Health
Solutions, Inc., DBA Marijuana Medicine Evaluation Centers (MMEC), specializes in the turn-key
management of medicinal marijuana clinics throughout California. The purchase is a combination of
cash and stock, and the founder of Synergistic Resources, Brent Inzer, has assumed the position of
Manager, Business Development for General Health Solutions, Inc.
Read More

DECEMBER 6, 2010
Today General Cannabis, Inc. (OTCPK: CANA) formerly LC Luxuries Limited (OTCPK: LLUX) announces it
has signed closing documents to purchase substantially all of the assets of Synergistic Resources, LLC.
Synergistic Resources, LLC dba Marijuana Medical Evaluation Centers (MMEC) specializes in the turn-key
management of medicinal marijuana clinics throughout California. The purchase is a combination of
cash and stock, and the founder of Synergistic Resources, Brent Inzer, will immediately assume the
position of Business Development.
Read More

General Cannabis, Inc. Acquires WeedMaps, LLC
NOVEMBER 19, 2010
Costa Mesa, California – November 19, 2010 – Today General Cannabis, Inc. (OTCPK: CANA) formerly LC
Luxuries Limited (OTCPK: LLUX) proudly announces it has purchased WeedMaps, LLC. The purchase is a
combination of cash and stock with additional earn out potential for the two co-founders of WeedMaps,
LLC, Justin Hartfield and Keith Hoerling. Both Hartfield and Hoerling have entered into long term
employment contracts with General Cannabis, Inc. and will immediately assume the roles of Chief Web
Officer and Chief Technology Officer.
Read More

LC Luxuries Limited Receives Formal Approval for Name Change to General Cannabis, Inc.
NOVEMBER 16, 2010
COSTA MESA, Calif., Nov 16, 2010—LC Luxuries Limited (LLUX) (the “Company”) today proudly
announces that it has received formal approval that effective on the open of trading on November 19th,
2010, the new name of the company will be General Cannabis, Inc. The new stock symbol will be CANA.
Read More



LC Luxuries Limited Prepares for Corporate Name Change to General Cannabis, Inc.
OCTOBER 27, 2010
COSTA MESA, Calif., Oct 26, 2010—LC Luxuries Limited (LLUX) (the “Company”) today announced that it
has commenced the process to change the Company name from LC Luxuries Limited to General
Cannabis, Inc. The Company anticipates the name change to be completed by year end 2010.
Read More

U.S. Cannabis, Inc. Signs Letter of Intent to Control Marketing and Advertising for 10 Clinics
OCTOBER 24, 2010
COSTA MESA, Calif., Oct 22, 2010—LC Luxuries Limited (LLUX) (the “Company”) today announced that
through its subsidiary, U.S. Cannabis, Inc., it has entered into a Letter of Intent with Synergistic
Resources, LLC dba Marijuana Medicine Evaluation Centers, to assume all marketing and advertising
responsibilities for 10 medical marijuana offices located in California. Synergistic Resources, LLC
specializes in providing management expertise to the medical marijuana industry including, but not
limited to, site location, staffing, administration and human resources.
Read More

Potential Acquisition of Majority Interest in WeedMaps, LLC by U.S. Cannabis, Inc. Moves Forward
OCTOBER 8, 2010
COSTA MESA, Calif., Oct 8, 2010—LC Luxuries Limited (LLUX) (the “Company”) today announced that it
has hired Tarvaran, Askelson & Company LLP, Certified Public Accountants, to begin the auditing process
of WeedMaps, LLC. On September 30th, 2010 the Company announced that it has entered into a Letter
of Intent to acquire a majority interest in WeedMaps, LLC.
Read More

LC Luxuries acquires CannaCare.com
OCTOBER 5, 2010
LC Luxuries Limited (formerly Makeup.com Limited), an online retail company engaged in marketing
beauty products, has acquired the domain name CannaCare.com, a provider of information, advice and
services relating to legal access to medical marijuana. Both the entities are based in the US.
Read More



LC Luxuries Limited Will Begin Offering Management Services to Dispensaries & Collectives
OCTOBER 4, 2010
COSTA MESA, Calif., Oct 7, 2010—LC Luxuries Limited (LLUX) (the “Company”) today announced that,
through its subsidiary, U.S. Cannabis, Inc., it will begin offering management and consulting services to
dispensaries, collectives and associations.
Read More

LLUX.PK Commences Operations in New Subsidiary, U.S. Cannabis, Inc.
SEPTEMBER 30, 2010
COSTA MESA, CALIFORNIA, Sep 30, 2010—LC LUXURIES LIMITED (LLUX) (the “Company”) today
announced that it has entered into a Letter of Intent to acquire a majority interest in WeedMaps, LLC.
Justin Hartfield, CEO of WeedMaps, LLC states: “We’re very excited to be joining forces with LLUX. We
share the same entrepreneurial spirit and look forward to a long and successful relationship.”
Read More

LLUX.PK Negotiating to Acquire WeedMaps.com
SEPTEMBER 03, 2010
COSTA MESA, CALIFORNIA, Sep 03, 2010—LC LUXURIES LIMITED (PINK SHEETS: LLUX) (the “Company”)
announces that its newly established subsidiary, US Cannabis, Inc., a Nevada corporation, has entered
into formal negotiations with WeedMaps, LLC, to acquire the domain name “weedmaps.com” and the
current operating website. WeedMaps.com has specialized in search engine optimization since 2009 and
has a significant presence as it relates to the cannabis industry. At this time, the terms and conditions of
the acquisition are still being negotiated and no terms or conditions of the acquisition have been agreed
upon between the parties.
Read More

LLUX.PK Commences Operations in New Subsidiary U.S. Cannabis, Inc.
AUGUST 27, 2010
COSTA MESA, CALIFORNIA, Aug 27, 2010—LC LUXURIES LIMITED (PINK SHEETS: LLUX) (the “Company”)
announces that its newly established subsidiary, U.S. Cannabis, Inc., a Nevada corporation, will begin
supporting the U.S. medical marijuana market through the management of medical clinics in California.
The clinics will be staffed by California Licensed, board-certified physicians and will meet or exceed all



regulatory standards. The Company’s intention is to set a standard by which the management of
medical marijuana clinics will be measured. The Company intends to be managing 10 clinics before the
calendar year end, 2010.
Read More

(Source: General Cannabis Website)



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