COWEN COLLABORATIVE INSIGHTS February 25, 2019 The below figure reflects the notable competition seen within vape as more companies continue to enter the space. In addition to CBD only-focused companies, we are starting to see crossover from adult-use / medical focused companies including Green Thumb Industries and Curaleaf Hemp. Indeed, GTI recently announced the acquisition of Beboe, which will offer a CBD vape pen with a focus on gaining distribution in high-end retail stores. Curaleaf will offer their pen through its e-commerce platform and dispensaries. Notably, crossover does not pertain solely to cannabis companies, as Turning Point Brands recently announced a minority stake in CASH, a privately held CBD extraction and production company. With a rapidly growing vapor infrastructure in place already (from Vapor Beast, Vapor Shark and Vapor Supply), TPB has a number of avenues and distribution points, both B2B and B2C, to introduce CBD vapor products to complement its portfolio. As such, we look for new CBD product introductions from TPB over the next year, with vapor as a logical entry point and key focus area. Figure 98 Competition Expected to Heat Up Across Vapor CBD Vape by Price Segment $0.40 $030 ¢927 “! $025 $0.24 $0.30 $020 $018 $017 20.20 S $0.47 $0.16 $0145 $014 $044 S014 $0.12 $0.12 $011 $010 $0.10 $040 $009 soos — $0.00 22 8/8 ¢/2 ¢ 382 88,F 8 8 @ s/f 33 F = tc c So Cy > = =§ = Ps c = 1 5 6 »o = = giz Zzilia =~ o@2 XX § 8 sof ¢ + §|8 & B * 5 2£¢ € gie Ble ez Ss @ ~*~ sea £& &F & SE 2 & # é@s 3|5 1/5 # = > es 8 & 5 2 = 2 v ae siz € % = zc 6¢F S Oo az vu o s =x oy 5 a Super Premium Premium Main Value (> $0.23) ($0.18- ($0.10-$0.17) (< $0.10) $0.23) ANNA aHl26% — | a CALM |e = i curcleat ay “f Re ope WANTA ZS (we wis ' BEBOE ‘ > CaP ye Cy i! | LRA | wns S : 4s . “" by iF y S siStaBie VAPE PEN “NYY " cbdMD = ny hi eT 'Y VAPING RIP : CBD OIL es 4 =e ee || — ths = ae Source: Company Websites and Cowen and Company Note: Reflects price per mg of CBD; For co