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COWEN
COLLABORATIVE INSIGHTS
February 25, 2019

Curaleaf Hemp. Curaleaf (CSE: CURA; OTC: CURLF) is a vertically integrated U.S. multi-state operator (MSO), based in Massachusetts that focuses on selling Curaleaf branded products in its company-owned dispensaries. In September, the company launched a separate CBD focused line called Curaleaf Hemp, which is currently sold in 47 states. Form factors currently offered include tinctures, capsules, topicals, patches, vape pens, and pet treats. With both ingestible and topical CBD products currently offered in select Wegman's stores, Curaleaf Hemp is focused on expanding into more channels and becoming a national CBD brand by the end of the year. Curaleaf Hemp products are mid-tier priced, coming in above value offerings, but below what would be considered super-premium. This allows them to competitively target pharmacy chains and grocery stores. Curaleaf believes women represent an outsized opportunity within CBD and will focus their efforts on positioning their products towards that specific cohort. This makes good sense to us as our proprietary survey indicated that women slightly over-index to CBD relative to men. Through FY9M18, Curaleaf has generated ~$45 mm in revenues (including adult use and medical) reflecting a 247% YoY growth rate, while delivering a gross margin of 57%.

CV Sciences. Headquartered in San Diego, CA, publicly traded CV Sciences (OTCQB: CVSI) has two distinct operating divisions, consisting of consumer products and specialty pharmaceuticals. Within consumer products, the company is engaged in the development, manufacturing, marketing, and distribution of hemp-derived CBD products, which are refined into its own PlusCBD Oil™ brand. Form factors are broad based and include oils, capsules, sprays, balms, beauty products, and gummies, and are distributed nationally in health food stores and health care provider offices through select distributors and online. CV Sciences currently distributed to over 2,000 retail locations. CV Sciences has generated ~$34 mm in revenues though the first nine months of FY18, which reflects a 153% YoY growth rate. Over the comparable timeframe, the company reported gross margin of 72%, reflecting over 300 bps of expansion.

Elixinol. Elixinol (ASX: EXL; OTCQX: ELLXF) has a global presence in the cannabis industry, including hemp-derived CBD dietary supplements, food and wellness products, as well as the cultivation and manufacturing of medicinal cannabis products. Business segments include:

• Elixinol USA. Founded in 2014, Elixinol USA is a manufacturer and global distributor of industrial hemp-based dietary supplements and skincare products, with operations based out of Colorado.
• Hemp Foods Australia. Founded in 1999, is a leading hemp foods wholesaler, retailer, manufacturer and exporter of bulk ad branded raw materials and finished products.
• Elixinol Australia. Founded in 2014, to participate in the emerging Australian medical cannabis market.

In 2018, Elixinol revenues grew 121% YoY to ~$AUD 37mm (~$27 mm). The company's North America business contributes over 80% to total company revenues.

Green Thumb Industries (Beboe). As one of the more well-known U.S. multi-state operators (MSOs), Green Thumb Industries (CSE: GTII; OTCQX: GTBIF) recently announced the acquisition of Beboe, a premium cannabis brand, headquartered in California. Beboe products are sold in over 125 California and Colorado retail locations, and notably, the acquisition will give GTI access to the CBD market through Beboe's recently launched, direct-to-consumer line of hemp derived CBD products. Current CBD products offered from Beboe include a vape pen, called Calming, which contains 500 mgs cannabis oil, as well as a beverage called Dirty Lemon. In order to maintain the premium nature of the Beboe brand equity, GTI plans to ship the product into high-end luxury stores (which currently includes Barney's). In the first nine months of fiscal 2018,

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