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COWEN COLLABORATIVE INSIGHTS February 25, 2019 e Mary’s Whole Pet. Whole plant CBD remedies for pets, sold in retailers and online in the U.S. and international markets. Mary’s is a high-end brand, focused on clean delivery methods through its transdermal patches, topicals and patented gel pen technologies. In March 2018, Mary’s Nutritionals was chosen as the preferred CBD vendor partner for all Ritz Carlton, Marriott, JW Marriott, W, and St. Regis Locations. Mile High Labs. Based in Colorado, Mile High Labs is the largest extractor of CBD in the world. The company sources hemp from third party cultivation partners across four states, which include Colorado, Oregon, New York, and Kentucky. Mile High Labs extracts exclusively from industrial hemp flower material to create full spectrum extract, distillate and isolate. Their full spectrum extract contains a full range of CBD terpenes and over 60% CBD on average, making it useful for low concentration formulations in holistic and wellness applications, including tinctures and capsules. Mile High Labs distillate is refined using proprietary molecular distillation technology and contains ~85% CBD on average, making it ideal for vape pen cartridges, tinctures and other high potency formulations. The company’s isolate contains ~99% CBD and is used as a main ingredient in bioceutical and nutritional product applications. Mile High offers end-to-end certified GMP hemp CBD manufacturing. In October 2018, Mile High Labs raised $35 mm ina Series A, which according to CEO Jason Roth represented a “record- breaking investment [which] is a reflection of the growth in demand for quality CBD products and Mile High Labs’ unique ability to meet that demand.” CFO Jonathan Hilley also recently noted that he believes “the CBD market is in the early stages of a 20-year secular growth trend.” Papa & Barkley. Papa & Barkley is based in California, with a diverse portfolio of products and lines. The company’s Re/eaf line spans multiple form factors, including tinctures, capsules, patches, and balms, among others, which are comprised of different THC:CBD ratios. Papa & Barkley’s Essentials line is specifically focused on CBD, and as it stands, they offer a tincture in both a 15 ml bottle (450 mg CBD) and 30 ml bottle (900 mg CBD) and will soon be rolling out capsules, as well as an extra strength pain balm. The company is only in California currently, but is looking at going to market in three other primary states, as well as three other secondary states. Recess. Launched in October 2018, Recess is a wellness company currently specializing in beverages which are infused with full spectrum hemp extract. The company has positioned itself as a modern day lifestyle brand and daytime productivity enhancer that offers a universal message and idea instead of being anchored specifically to CBD. This strategy shares similarities with traditional CPG products, such as energy drinks and soda, which are not marketed for the active ingredient, but instead as the solution. While the current product portfolio includes sparkling beverages only, Recess plans on rolling out a plain water, as well as powders, which will cater to on-premise consumption occasions, such as coffee shops, juice shops and cocktail bars. Reliva CBD Wellness. Reliva is a CBD-focused company, which form factors include tincures, shots, sprays, topicals, gummies, and pet care. The company is run by Miguel Martin, who previously served as the President and GM of Logic Technology Development, an e-cigarette manufacturer in the U.S. Reliva’s products are focused on value from an absolute pricing perspective, as nothing sells for over $19.99 at retail. The company is unique insofar as they do not offer e-commerce, nor do they make and claims on efficacy or rely on testimonials or influencer marketing, which Martin believes will create a narrative on responsibility. Reliva focuses on independent c-stores and grocery channels and is expected to be in ~1,000 stores by the end of March, growing to 4,000-5,000 stores by the end of the summer with the goal of doubling that store count to ~10,000 locations by year-end. 62 COWEN.COM HOUSE_OVERSIGHT_024878