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COWEN COLLABORATIVE INSIGHTS February 25, 2019 Tinctures are the market leading form factor within CBD, which is reflected in the absolute number of companies that play across different price segments. Ona price / mg CBD basis, Lord Jones leads the pack on premium pricing, with its tincture priced at $0.24 per mg of CBD. Lazarus falls at the opposite end of the price spectrum at $0.04 per mg of CBD. The vast number of price points throughout this segment reflects an abundance of choice for the consumer, providing options for all income cohorts. 2 Figure 31 Notable Competition Within Tinctures Segment $0.30 CBD Tinctures by Price Segment g025 $0.24 69 23 $0.22 $0.20 $0.17 $0.17 $0.17 $0.16 $0.16 $0.16 $0.16 é : : : O15 ¢944 $0.14 69 43 $0.11$0.11$0.11$0.110.10 $0.09 60.08 $0.08 ¢0.08 $0.08 : : i : .08 §0.07 $0.05 $0.04 Lord Jones Medix CBD Diamond CBD Green Roads Premium Jane CV Sciences Mary's Medicinals Mary's Nutritionals Pure Kana Sunday Scaries Highline Papa & Barkley Veggimins Hemp Bombs Canna Hemp Charlotte's Web Curaleaf Hemp Green Mountain Super Premium Premium Main (> $0.19) ($0.15-$0.19) ($0.09-$0.14) Source: Company Websites and Cowen and Company Note: Reflects price per mg of CBD; For companies with multiple SKUs, we used a straight line average In our consumer survey, of respondents who use CBD, 44% of people use tinctures as a form factor, which looks to be equally popular among both male and females. Interestingly, tincture use looks to be the most prevalent form factor among older consumers, as two-thirds of respondents within this cohort indicated use of a tincture. Tinctures look to be the most popular form factor across all income demographics, with over 50% of people using within the $SOK-S100K segment. Figure 32 Tinctures Are The Most Popular Form Factor CBD Tincture Use 78 BH 66.7% 60.0% 50.0% 43.6% 43.4% 43.8% 40.0% 30.0% 20.0% 10.0% 0.0% Male Female S50K-S100K >$100K Gender Income Source: Cowen Survey, N=~2500, January 2019 COWEN.COM 29 HOUSE_OVERSIGHT_024845