COWEN COLLABORATIVE INSIGHTS February 25, 2019 Body lotions offer more value per mg of CBD, relative to facial beauty products, with Mary’s and Lord Jones positioned at the high-end of the competitive set. To segment from the broad topicals market, we would note that we classified beauty creams as products offering soothing and moisturizing characteristics (as opposed to targeted pain relief). Figure 82 Body Lotions More Moderately Priced Relative To Facial Beauty Products 6090 $0.75 CBD Body Lotion by Price Segment $0.75 $0.60 $0.60 0.40 g0 oe 90. $0.38 $0.32 $0.28 60,23 $018 : : 0.30 ; 0.14 0.14 5015 $0.08 $0.07 $0.00 2) nv [-5 J > i) i= 2) wa o Qa a 3 i E 3 = F F g S § 3 2 Ss x 2 3 S = _— 8 2 3 = ic z % S fe 2 = ° = 5 § 3 E 2 § v =z [arg U wo x > 8 Z e cc} mo = = Super Premium Main Value (> $0.58) ($0.24-$0.41) (< $0.24) 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 Bath products are not surprisingly the most reasonably priced within beauty. We would note that cosmetics are still a niche category within CBD, which is reflected in the lower number of products and SKUs currently offered. That said, we believe the multiple sub- categories offering CBD products will appeal to a broad range of consumer demographics. Figure 83 Bath Bombs Are A Niche Segment CBD Bath Bombs by Price Segment 30.60 $0.52 ¥ 0.48 $0.50 5 $0.40 $0.30 90.26 $0.25 $0.24 0.20 $ $0.44 $0.10 $0.10 $0.00 Kush Queen bella Pure Kana Blue Ridge Hemp Mary's Nutritionals lovebud cbdMD Super Premium Main Value (>$0.41) ($0.20-$0.31) (< $0.20) 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 46 COWEN.COM HOUSE_OVERSIGHT_024862