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COWEN COLLABORATIVE INSIGHTS February 25, 2019 Along with tinctures, capsules represent one of the more mature form factors within CBD. Mary's looks to be squarely positioned as the most premium brand across all companies analyzed, in particular for their Elite capsule line, which offers 150 mgs of CBD and retails for $90. For context, the closest price paint to Mary’s comes fram Sagely Naturals at $0.17 per mg. Brands look to be very competitively priced in terms of value, with seven of the brands coming in at $0.10 or below. 2 Figure 37 Capsules Competitively Priced On Value $075 $0.60 50.60 $0.45 $0.30 $0.15 50.00 $0.46) | $0.46) 2 S & = ao] a = a > i ic} = $0.43 Mary's Nutritionals CBD Capsules by Price Segment $0.17 $014 $012 $012 $012 $012 $012 $011 $010 $0.09 $0.09 $0.07 $0.05 $0.05 $0.05 Sagely Naturals Hemp Bombs Green Roads CV Sciences Premium Jane Pure Kana Lord Jones Canna Hemp Try The CBD Curaleaf Hemp Green Mountain 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 Utilizing our proprietary consumer survey, CBD capsule use looks to over-index with males, which shows over a 10 pt delta relative to women. In addition, on a relative basis to other form factors, CBD capsule use is more popular with younger, lower-income consumers, which perhaps explains the notable competition seen within the value segment. Figure 38 Capsule CBD Use Over-Indexes To Males And Skews Younger And Lower Income 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% 22.1% 27.7% 16.9% CBD Capsule Use 24.7% 22.2% eae 21.8% 16.7% 14.8% Total Male Gender Female 18-34 35-54 S54 <$50K S50K-S1L00K >$100K Age Income Source: Cowen Survey, N=~2500, January 2019) COWEN.COM 31 HOUSE_OVERSIGHT_024847