Figure 18 Interest Broad Based from Edibles

COWEN COLLABORATIVE INSIGHTS Figure 18 Interest Broad Based from Edibles... February 25, 2019 Consumer Products Opportunities (Azer) In 2018, the CBD market in the U.S. has been estimated to have generated revenues ranging from ~S600 mm to as much as $2 bn. In our 2019 global cannabis outlook report (here), we had believed the CBD purchases in the U.S. likely skewed to the lower- end of that range. However, with new survey data from Cowen’s proprietary consumer survey, we can see that among our ~2,500 respondents (18+) in January 2019 nearly 7% reported using CBD as a supplement. Coupled with the diverse form factors reportedly being used (including close to 20% for beverages, which was surprising to us), we are now inclined to size the current market at closer to $2 bn. Indeed, looking at Google search trends, we can see that interest looks to have climbed steadily in 2016 and 2017, and accelerated meaningfully in 2018, which has continued into 2019. Figure 17 CBD Interest Has Been Increasing U.S. Google Trends: CBD 100 80 60 40 20 0 tHe TTT T MH MNMNMHNOUWUUWUWUUWUUORRRRRRDDMDH HD WH HO do dtd dtd dtd dd ddd ddd dd dd dd ddd dtd dd dod ooooooooooocooococococococoeocec$ose NANNANATNANANANANANANANANANANANANANANANANNANNN ~S SN NN Sh OE ON ORONO OR WONTUODWAAMNNVUODWAOMNRWAONUAODOHAMTBAOON TT VO ANNNNA DSSS DSBSA AAA ANNANN MSDS DSB AOA SA SS NS BBB MN KR DDN RRB RN OS ORO BOON NTN BR RS NTO oO oN addmnnaddm nn ad waon Source: Google Trends and Cowen and Company Encouragingly, interest has been rising consistently among different form factors, ranging from supplements like CBD gummies, to topicals and oils. The rising interest and popularity in this broad range of CBD offerings should support a diverse category and multiple competitors that cater to a large base of consumers with different needs, requiring various applications. Figure 19 ...to Topicals... Figure 20 ...To Oil 100 80 60 40 20 5/1/2016 U.S. Google Trends: CBD 8/7/2016 11/13/2016 Gummies 2/19/2017 5/28/2017 9/3/2017 12/10/2017 3/18/2018 6/24/2018 9/30/2018 1/6/2019 U.S. Google Trends: CBD U.S. Google Trends: CBD Oil 100 Cream 100 80 80 60 60 40 40 20 20 ) @) wowowonrnrenernr~e wy nowon wovowonrenke MK MBM fon) dodo di od cd aodiaodadoiadided dad dod ao dd bes bat gs ad oo oo oo go 000 ©& oo ooooooogoso © NNNNNNNNNN NS NN NNNNNNNN SN sim Me TS TR SMA TR TR OTR MRO. im Me TS Te SM TR TR OTR MRO. ARR Manawmomoeawtdad wo AR MADAM OeATtT OS WO ~ s ca AN SB oI A NM 3 “~ S oA AN MB OI TDA NMS Source: Google Trends and Cowen and Company 24 Source: Google Trends and Cowen and Company Source: Google Trends and Cowen and Company COWEN.COM HOUSE_OVERSIGHT_024840