COLLABORATIVE INSIGHTS February 25, 2019

COWEN COLLABORATIVE INSIGHTS February 25, 2019 Adidas and Nau. Nike offered a hemp-based SB Dunk Low sneaker in 2004, re-issuing the shoe in 2016 around Earth Day. Patagonia, a $1B global brand that encompasses a focus on the environment and social responsibility in its mission statement, views hemp as a “natural fiber that’s cultivated with low impact on the environment.” The brand’s assortment includes some hemp-based products made with 100% hemp, which it imports from China, or blended with other fibers like recycled polyester, organic cotton, and spandex. 2 Figure 116 Patagonia lron Forge Hemp Figure 117 prAna Sharla Sweater (55% Hemp} Figure 118 Men’s (Hemp upper) Canvas Ranch Jacket (55% Hemp) Source: www.patagonia.com Source: www.prana.com Source: www.sanku.com There is also a growing market for apparel and footwear that provide recovery attributes. For example, Under Armour has its Recovery line of apparel that includes Celliant which is designed to “capture body heat and convert it to infrared light that is returned to your body, boosting localized blood flow and upping the amount of oxygen reaching your muscles.” Celliant is described as “utilizing a proprietary mineral matrix that can be embedded into the core of a yarn or applied to a wide variety of fabrics.” This demonstrates the ability to weave outside attributes into existing textiles to add beneficial components beyond just providing an item of clothing. With CBD being reported as having health and wellness properties, such as to combat inflammation, there could be potential for CBD to be infused into textiles. Canada’s Fashion magazine recently highlighted Devan Chemicals in its 1/4/19 article, “CBD Is Everywhere. Will CBC-Infused Clothing Be Next?” Devan Chemicals is a Belgium-based company that has “added CBD to their textile solutions portfolio.” The company’s “R Vital’ fabric reflects a weave of microcapsules of CBD that release when a person wears the clothing as demonstrated in their website’s flow chart below. While still early stage, perhaps there will be demand for widescale CBD infused textiles, although, as the article points out, it is unclear how the “potency” holds up over time and after washing. COWEN.COM 71 HOUSE_OVERSIGHT_024887