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COWEN COLLABORATIVE INSIGHTS February 25, 2019 Private Companies 2 Botanica. Best known for its portfolio of adult use edible brands, which includes Spot, Journeyman and Mr. Moxey’s Mints, Botanica recently launched a CBD only line of Mr Moxey’s Mints, following the passage of the 2018 Farm Bill. The products are currently offered in the U.S. and the U.K. and are available in one package format consisting of 60 mints at 5 mgs per CBD each. In the U.S., the mints retail for ~$40 per tin and going forward, the company will look to come to market with smaller / lower priced offerings to help drive immediate point of sale consumption across brick and mortar retail locations. Over time, management forecasts that ~40% of sales will come from e- commerce, with the balance coming distribution. GenCanna. Based in Kentucky, GenCanna is a cultivator of premium hemp-derived CBD. Additionally, the company offers whole-plant hemp extracts in the form of full spectrum or isolated crystalline cannabinoid CBD for wholesale, available to customers in the form of powders and oils and can be prepared as a proprietary water dispersible powder to support large scale manufacturing needs. Their powders have a CBD concentration of 99.5%+, which is isolated using CO2 extraction and crystal precipitation (as is their bulk oil). GenCanna also offers a full range of packaged goods including bottled oil drops, capsules and topical creams. All GenCanna products are produced in an FDA registered and inspected, food-grade, GMP-compliant facility and are tested by third parties for safety and quality. In November 2018, MariMed (MRMD, not covered) invested $30 mm in GenCanna, which established a long-term supply agreement whereby GenCanna became MariMed’s global hemp CBD supplier. Highline Wellness. Co-founded by former Cowen alum Chris Roth and his business partner Chris D’Alberti, Highline Wellness is a NYC-based CBD company currently offering tinctures, chews (gummies) and topicals (pain cream). Highline products are manufactured in Florida and the company sells direct-to-consumer. According to the company, this provides for competitive pricing relative to their peers (which we would classify as broadly mainstream). While still early days, Highline has an active presence on social media platforms including a loyal group of followers on Instagram, which has resulted in top line momentum to start off the year. Lazarus Naturals. Launched in 2014, Lazarus Naturals is an Oregon-based CBD company, which offers products ranging from tinctures and capsules, to topical oils and balms as well as isolates. Lazarus is value priced across the competitive set with one of the lowest price/mg of CBD relative to the companies that we benchmarked against. The company offers 60% discounts to veterans, individuals on long-term disabilities as well as for low-income households. All sales primarily come from e-commerce and products are shipped to all 50 states across the U.S. Lord Jones. Founded by Robert Rosenheck and Cindy Capobianco, Lord Jones manufactures and distributes super-premium CBD infused products. The company provides a broad array of product offerings, including tinctures, confections, capsules, and skincare, among others. Clearly catered towards the premium-end of the market, Lord Jones has announced several high-profile partnerships over the past couple of years which includes collaborating with Equinox, partnering with luxury hotel group, The Standard, and most recently, being the first CBD brand carried by Sephora. Mary’s. Founded in 2013, Mary’s produces and sells cannabis and hemp-derived CBD products across three main segments, which include: e = Mary’s Medicinals. Cannabinoid infused products for relief, available in 11 U.S. States. e =Mary’s Nutritionals. Hemp-derived CBD products for health & wellness, sold in retailers and online in the U.S. and international markets COWEN.COM 61 HOUSE_OVERSIGHT_024877