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COWEN COLLABORATIVE INSIGHTS February 25, 2019 2 COWEN’S COLLECTIVE VIEW OF CBD In a collaboration featuring 14 analysts across Cowen’s consumer, health care, industrials and regulatory teams, herein we offer our outlook for the global CBD market, with a particular focus on the U.S. While little science exists supporting medical efficacy of CBD (with the exception of seizures, which GWPharma was able to prove with Epidiolex for Dravet syndrome and Lennox-Gastaut syndrome, as discussed in more detail herein), the popularity of CBD products seems to be growing exponentially in the U.S. Indeed, our consumer survey work suggest that close to 7% of adults in the U.S. already use CBD as a supplement. With the category gaining increasing interest from consumers we have seen a swell in product innovation. And, the opportunity is increasingly drawing the attention of larger competitors (where for instance, WEED announced that they would consider spending as much as $500 mm in U.S. hemp / CBD). By 2025, we estimate that the U.S. CBD market could approach $16 bn (from $600 mm -S2 bn in 2018}. Herein, we offer our views of: 1. Consumer Products Market Sizing (Azer) 2. The Science of CBD (Nadeau) 3. The Hemp / CBD Supply Chain: From Cultivation to Extraction (Neivert & Schenkel) 4. Consumer Products Opportunities (Azer) 5. The CBD Competitive Landscape - Public and Private Company Discussions (Azer) 6. Consumer Discretionary Retail and Brand Opportunities Across: a. Pharmacy (Rhyee) b. E-Commerce (Blackledge) c. Broader Retail (Chen) d. Specialty Brands (Kernan) 7. On-Premise Consumption Opportunities (Charles) 8. U.S. Regulatory Outlook (Assaraf, Krueger, Seiberg & Weissenstein) 9. Global CBD Landscape (Azer) 10. Additional Potential Opportunities for Hemp / CBD, Including a. Pharmaceutical Applications (Nadeau) b. Industrial Applications (Osborne) COWEN.COM 7 HOUSE_OVERSIGHT_024823