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COWEN COLLABORATIVE INSIGHTS February 25, 2019 brands offering a product, which while not exhaustive, provides context on the popularity of the form factor. Similar to most other verticals, Mary's topicals fall into the super-premium segment, which we define as anything above $0.54 per mg of CBD. Of all the SKUs analyzed, the premium segment looks to be the narrowest, while mainstream and value segments are the most popular price point among the competitive set. _ Benchmarking across the topical market, we would highlight the absolute number of Figure 51 Popularity in Topicals Are Reflected In The Overall Number Of Brands Playing Within The Segment 080 $071 CBD Topicals by Price Segment $0.70 $0.62$0.61$0.60 $0.60 $0.50 90-4545 40 $0.40 $0.32$0.3249 39 $0.30 $0.20 $0.10 $0.00 0.26$0.25 : . * £650.19 175 S 1750. 0.16$0.15 $ S S ‘ z , 0.1250.11$0 10$0 10s0 08$ 25 235 2350.22 SC 5$0.14 : e : 0.0 $0.05$0.0550. Sagely Naturals Curaleaf Hemp Kush Queen Mazz Hanna RX CannaCare Green Roads Hemp Bombs Highline LEEF Organics Medix CBD Canna Hemp X Bee's Knees Wildflower Pure Kana Canna Hemp Premium Jane Try the CBD Green Mountain Mary's Medicinals a © = 2 r=] ‘= =] 5 = wn > i i = Super Premium i Main (>$0.54) ($0.21-$0.38) 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 According to our proprietary Cowen consumer survey, of respondents who use CBD, 26.2% of people use topicals as a form factor, which is the highest level seen after tinctures. Usage among men and women look to be similar, though younger, lower income use looks to be more prevalent when benchmarking to older, higher income cohorts. Similar to capsules, this could reflect the large number of brands we see playing in the value segment. Figure 52 Topical Use Is More Prevalent Among Younger, Lower Income Consumers CBD Topical Use 35.0% 30.1% 29.3% 30.0% 26.2% 26.5% 25.9% an Be 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% Male Female <SS5O0K S$50K-$100K >$100K Gender Income Source: Cowen Survey, N=~2500, January 2019 36 COWEN.COM HOUSE_OVERSIGHT_024852