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COWEN COLLABORATIVE INSIGHTS February 25, 2019 GTI has reported revenues of ~$41.7 mm (which includes adult use and medical), reflecting a YoY growth rate of over 300% and gross margin of 45%. We would note that on a pro-forma basis including the acquisition of Essence, in the most recent quarter, GTI would have generated revenues of over $35 mm (vs. $17.1 mm reported). Khiron Life Sciences Corp. Khiron is a publicly-traded (TSXV: KHRN; OTCQB: KHRNF), vertically integrated cannabis company currently focused on Latin America. Priority markets in the region include Colombia, Peru, Chile, Brazil, and Mexico. Earlier this year, they announced a 50/50 JV with U.S.-based Dixie Brands, which will result in the introduction of a full line of cannabis infused products to the Latin American market. Importantly, as part of the agreement, Dixie will manufacture and distribute Khiron’s Kuida brand of CBD-based cosmetics in the U.S., where they will target the growing Hispanic population. Khiron will operate the JV from Bogota, Colombia, with a focus on regulation, cultivation, manufacturing, and distribution. Dixie will contribute IP, including its extensive brand portfolio, which includes over 100 SKUs spanning 15 different categories. Khiron recently recognized first sales in October 2018. Level Brands. Originally founded as a consumer products company in 2015, Level Brands (NYSE American: LEVB) subsequently expanded into licensing and brand management prior to initiating an IPO in 2017. Most recently in 2018, the company completed the acquisition of cbdMD, a CBD consumer products brand with products available online and in over 1,000 retail outlets across the U.S. cbdMD offers 60 skus, 24 of which come in the form of oils, while 12 SKUs come in the form of topicals. Additionally, other cbdMD form factors offered include capsules, gummies, bath bombs, and pet products. In its first year, cbdMD delivered $7.5 mm in sales, while achieving a gross margin in excess of 70%. From a route to market perspective, 80% of revenues come from e-commerce, though the company started to build out a sales team to drive brick and mortar penetration. Tilray (Outperform, $150 PT). Canadian-based Tilray (NASD: TLRY), is a licensed producer and distributor of cannabis across Canada, as well as internationally. Through the company’s strategic partnership with Privateer, TLRY licenses established U.S. based cannabis brands including Marley Natural, Irisa, Goodship, Grail, and Dutchy. TLRY has been active on the M&A front, with previously announced acquisitions / partnerships with Novartis, Authentic Brands and AB-Inbev, among others. Most recently, the company announced a C$419 mm acquisition of Manitoba Harvest, the global leader in hemp-derived food products. The cash and stock deal gives TLRY access to Manitoba Harvest’s broad range of food products that are currently distributed in 16,000 stores across North America. Turning Point Brands (Outperform, $45 PT). Based in Louisville, KY, Turning Point Brands (NYSE: TPB) operates in the Other Tobacco Products (OTP) category and sells and distributes a wide range of products. These products include MST, loose leaf chewing tobacco, cigarette papers, cigar wraps, e-cigs, vaporizers, and herbal wraps. TPB recently announced a minority stake in CASH, a privately held CBD extraction and production company, which should complement its current infrastructure, which includes Vapor Beast, Vapor Shark and Vapor Supply. Additionally, we would note that TPB currently sits on the U.S. Hemp Roundtable Board of Directors. Through the first nine months of fiscal 2018, TPB has reported $238.4 mm in revenues, which reflects a YoY growth rate of over 12%. The company has achieved a run rate gross margin of ~44% over the comparable timeframe. 56 COWEN.COM HOUSE_OVERSIGHT_024872