HOUSE_OVERSIGHT_024874.jpg

COWEN COLLABORATIVE INSIGHTS February 25, 2019 _ The Green Organic Dutchman (TGOD) “We are focused on becoming the Whole Foods of the cannabis industry and recognized as pioneers in the THC/CBD infused beverage industry.” CEO Brian Athaide (Shareholder Letter} HEXO Corp (Hexo) “With respect to the United States, we are in the process of assessing adequate supplies for hemp-derived cannabinoids. Using our intellectual property, we believe we can offer a large range of CBD-based experiences.” HEXO Prospectus (1/25/19) Neptune Wellness Solutions (NEPT) “CBD in the United States-and think about this for a moment where it was federally illegal in the DEA perspective as well as not permitted from an FDA perspective, it is today larger than the vitamin E sector, and it is on track to surpass the omega-3 supplement category very soon.” President, CEO & Director James Hamilton (3Q19 Earnings Call) Organigram (OGI) On 1/21/19, OG/ entered an agreement with 1812 Hemp, a New Brunswick base industrial hemp research company to secure supply and support research and development on the genetic improvement of hemp through breeding methods. Benchmarking Below we provide a distribution benchmarking analysis on some of the notable publicly traded CBD companies, including Tilray’s recently announced acquisition of Manitoba Harvest, which food products are distributed in 16,000 stores across the U.S. and Canada. Among core CBD companies, Charlotte’s Web’s retail store count of 3,680 stores is almost double that of CV Sciences’ 2,000+ retail locations. Level Brands CBD products are in over 1,000 retail locations, while 1933 has a retail footprint spanning 600 stores and counting. Figure 100 Companies Will Focus on Building our Distribution Footprint Retail Store Count 20,000 46,000 15,000 10,000 5,000 Tilray Charlotte's Web CV Sciences Level Brands 1933 Industries Source: Company Reports and Cowen and Company; Note: TLRY reflects acquisition of Manitoba Harvest From a revenue perspective, Charlotte’s Web is generating the most sales out of what we would classify as core CBD-focused companies. Indeed, in the most recent quarter, the company generated almost $18 mm, which was ~30% higher than number 2 positioned CV Sciences, while Elixinol delivered over $7 mm. We would highlight that for the cross-over brands, Turning Point Brands is currently delivering the highest revenues (consisting of OTP only), while reported revenues factor in adult use and medical sales of THC-infused products, which clearly favor Curaleaf and GTI as two of the more well- known MSOs in the U.S. Tilray revenues of $10 mm are expected to ramp over the 58 COWEN.COM HOUSE_OVERSIGHT_024874