COWEN COLLABORATIVE INSIGHTS February 25, 2019 Benchmarking across the topical market, we would highlight the absolute number of 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. 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 50.50 5040. soap $0.40 _— 90:3050 2650.25$0.2580.2350 2340 22 nee A°90-1950.17$0,16$0.15$0.15$0.1449.1260 14 nie ‘ . $0.10$0.10$0.0850.07¢9.9580.05$0.05 $0.00 efeesl|e sh2 FS eR e228 B28 RR FFP ERBESEREZE S56 £ Sis $/§ 5 S €&€ FS EF FYI fk Vv FE e2ezeseeEKkSv BE FES SB #¥ £ G/r 6/F S> 8 Se Sm xlrR SF 9YXYEeETE tT Ex FSHBe § BRB 2 = ‘e S/N £8 § ato gy be vw FB EBS” s- = > = 2 3/38 GS = ow & uo Ss = © 3S 4 € €£ 2 B 2 ge +¥\= xv Gg i 5 7 ogr S wn g > 3G e — YQ a 5 = = Super Premium |Premiu Main Value (>$0.54) ($0.38- ($0.21-$0.38) (< $0.21) $0.54) 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 56 Bik CBD Topical Use 30.1% ; 29,3% 30.0% 26.2% 26.5% 25.8% 2.