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Not for distribution to Retail Clients Week ending August 27, 2021 COMPANY COMMENTARY SHARE PRICE PERFORMANCE Canadian Cannabis Producers Canadian Extraction Companies Canadian Cannabis Retailers 48North announced that it has obtained a final court order from the Ontario Canadian Other Other North American Cannabis Companies Supreme Court of Justice approving the plan of arrangement, pursuant to which International Cannabis Companies Ancillary Cannabis Companies Indices HEXO will acquire all of 48North’s issued and outstanding common shares YTD Since Last Week Acreage announced the appointment of Bryan Murray, former Global Avant Brands 519% Aleafia 15% Operations Lead for Public Affairs at Pfizer, as its Executive Vice President Decibel 321% Auxly 12% of Government Relations Cannara 113% Avant Brands 10% OrganiGram 95% Sundial 9% AFC Gamma announced that it has provided a credit facility of US$19.75 mm to Tilray 62% OrganiGram 9% DMA Holdings MA, a single-state Massachusetts operator Sundial 61% Aurora 6% TGOD 13% Village Farms 6% Aleafia Health announced the closing of a C$10 mm senior secured term credit Auxly 10% HEXO 5% facility Entourage Health (4%) Tilray 5% Village Farms (6%) Rubicon Organics 4% Aurora and Ethypharm announced that they have delivered their initial shipment Cronos (7%) Cronos 4% of cannabis to the French medical cannabis pilot program, set to begin serving Aurora (14%) TGOD 2% patients in the coming weeks Delta 9 (19%) Canopy 1% Aleafia (28%) Cannara -- Avant Brands announced that its joint venture, 3PL Ventures, has been issued Canopy (31%) Entourage Health -- Standard Cultivation, Standard Processing and Medical Sales Licenses; Avant HEXO (34%) Delta 9 (3%) Brands also announced that it has been added to the Global X Cannabis ETF Rubicon Organics (38%) Flowr (5%) (NASDAQ: POTX) Flowr (68%) Decibel (16%) Valens 88% Nextleaf -- Avicanna announced that its RHO Phyto and Pura Earth branded topicals have Nextleaf 18% MediPharm Labs (1%) attained initial listing and commenced sales in the Canadian province of Alberta; Radient (24%) Valens (2%) MediPharm Labs (38%) Radient (7%) Avicanna also announced that, through its majority-owned Colombian subsidiary High Tide 135% Fire & Flower 3% Santa Marta Golden Hemp, it has completed its first commercial export of 20 kg Nova 26% Nova 1% of high CBD full spectrum psychoactive cannabis extracts to Brazil Fire & Flower 8% High Tide (2%) RIV Capital 30% Neptune 15% Ayr Wellness announced the opening of Liberty Health Sciences Boynton Avicanna (17%) Willow Biosciences 4% Beach, its 40th operating dispensary in Florida; Ayr Wellness also announced that Namaste (20%) Avicanna -- its Board has authorized, effective immediately, the repurchase of up to 5% of its Willow Biosciences (36%) Namaste -- Neptune (55%) RIV Capital (2%) Subordinate Voting Shares over the next 12 months pursuant to a normal course MedMen 122% C21 11% issuer bid; Ayr Wellness also announced the launch of its Origyn Extracts MariMed 103% cbdMD 7% premium concentrates line in Arizona, its first national brand portfolio to launch in Harvest Health 36% Curaleaf 6% Arizona Ascend Wellness 31% Planet 13 4% Gage 30% Cansortium 4% Canopy Growth subsidiary Tokyo Smoke announced a partnership with Green Thumb 22% Green Thumb 4% Cadillac Fairview Partners to open multiple mall store locations 4Front 20% Columbia Care 3% Verano 14% 4Front 2% Cansortium announced that its wholly-owned subsidiary, Fluent by Ayr Wellness 2% MariMed 2% Cansortium, received approval from the Florida Department of Health to Cresco 0% Cresco 2% Curaleaf 0% Trulieve 1% commence operation of a new 43,000 sq. ft. greenhouse cultivation facility in Cansortium (1%) TerrAscend 1% Homestead, Florida and the 40,000 sq. ft. greenhouse expansion at its Goodness Growth (4%) Ascend Wellness -- Sweetwater, FL cultivation facility; Cansortium also announced FQ2 ’21 revenue Acreage (9%) Harvest Health (1%) of US$16.5 mm (improved 9% q/q) and adj. EBITDA of US$5.2 mm (improved Planet 13 (11%) Goodness Growth (1%) Trulieve (15%) The Parent Company (2%) 18% q/q) Jushi (21%) Jushi (2%) Charlotte's Web (26%) Verano Cresco Labs is reportedly investing US$40 mm to expand a cannabis cultivation (4%) TerrAscend (28%) Gage (5%) and processing facility in Ohio, which will nearly triple the size of its facility in cbdMD (28%) Acreage (7%) Yellow Springs Columbia Care (33%) Ayr Wellness (8%) C21 (44%) Charlotte's Web (8%) Cronos Group and Ginkgo Bioworks announced the achievement of the first The Parent Company (63%) MedMen (10%) target productivity equity milestone in their partnership to produce eight cultured Flora Growth 87% Little Green Pharma 4% cannabinoids Little Green Pharma 27% IM Cannabis 3% Intercure 22% MedLab 3% Curaleaf announced the opening of a Curaleaf dispensary in Bordentown, New Clever Leaves 11% Intercure 2% Jersey, marking its 109th dispensary nationwide; Curaleaf also announced the MedLab (23%) Cann Group -- launch of its Select brand in New Jersey, expanding the Select brand’s reach to Khiron (25%) Clever Leaves (2%) Panaxia 19 states (42%) Panaxia (3%) PharmaCielo (43%) PharmaCielo (5%) Decibel announced a bought deal for 45.0 mm units (share + half a warrant @ Cann Group (51%) Khiron (12%) C$0.40) at a price of C$0.29 per unit for gross proceeds of ~C$13.05 mm IM Cannabis (53%) Flora Growth (26%) TILT 59% Greenlane 18% Delta 9 announced the grand opening of its thirteenth Delta 9 Cannabis retail IIPR 31% Hydrofarm 14% store, and tenth cannabis store in the Province of Manitoba Zynerba 26% Zynerba 11% AFC Gamma 12% GrowGeneration 6% Weedmaps 5% AFC Gamma 6% Hydrofarm (6%) IIPR 3% GrowGeneration (23%) TILT 2% Greenlane (34%) Weedmaps 1% Source: Public filings, Bloomberg, FactSet S&P 500 20% MJ ETF 4% Note: Includes select cannabis companies. Share price performance based on share S&P / TSX 18% NASDAQ Composite 3% price appreciation only. NASDAQ Composite 17% S&P 500 2% Dow Jones Industrial 16% Dow Jones Industrial 1% MJ ETF 16% S&P / TSX 1% PAGE 2
COMPANY COMMENTARY (CONT’D)
Fire & Flower and its wholly-owned subsidiary, Hifyre, announced the proposed acquisition of PotGuide for total consideration of ~US$8.5 mm, consisting of US$4.0 mm in cash and ~6.0 mm common shares
Flora Growth announced that it has closed the previously announced €2.0 mm investment in Hoshi International, while also increasing its fully-diluted ownership in Hoshi through a securities swap
Gage Growth announced FQ2 ’21 revenue of US$26.4 mm (improved 50% q/q) and adj. EBITDA loss of US$1.9 mm (improved 50% q/q); Gage Growth also announced that it entered into an amended and new licensing agreement with Cookies extending their partnership from 2024 to 2026
Greenlane and KushCo both announced that they have received stockholders approved for the proposed merger of both companies
Greenway announced that it has entered into an agreement with Agro-Green Natural Products, whereby Greenway will supply 200 kg of cannabis biomass per month as inputs to support the Shelter Wildfire Preroll brand across Canada and through Shelter Market
GrowGeneration announced the acquisition of Hoagtech Hydroponics, a hydroponic equipment and indoor gardening store, serving the Bellingham, Washington area, marking its 59th hydroponic garden center nationwide; GrowGeneration announced its acquisition of Commercial Grow Supply, a hydroponic superstore located in Santa Clarita, California, with annual revenues approaching US$10 mm, bringing the number of GrowGen locations in California to 22
Halo announced that it has entered into a definitive agreement to acquire Food Concepts, the master tenant of a ~55,000 sq. ft. indoor cannabis cultivation, processing, and wholesaling facility in Portland, Oregon operated under the Pistil Point name and the related licenses issued by the Oregon Liquor Control Commission (OLCC) and other operating assets owned by the entities doing business as Pistil Point; Halo will acquire Food Concepts for US$8.2 mm, payable in ~258.2 mm Halo common shares, and will acquire the OLCC licenses and Pistil Points other assets for US$4.0 mm, payable in ~125.9 mm Halo common shares
Harvest One announced that its Dream Water brand launched a new line for sleep gummies in the American market, which is expected to hit its distributors and retailers in September
HEXO announced that the previously announced transfer of its stock exchange listing to the Nasdaq from the NYSE is complete; HEXO also announced the closing of its previously announced underwritten public offering for gross proceeds of ~US$144.8 mm at a price of US$2.95 per unit (share + half warrant @ US$3.45), including 1.6 mm units sold pursuant to the partial exercise of the over-allotment option; HEXO also announced that its shareholders showed overwhelming support for the previously announced acquisition of Redecan; HEXO also announced appointment of Guillaume Jouet as its Chief People & Culture Officer
High Tide announced that all outstanding convertible debentures originally issued by Meta Growth have now been converted into common shares of High Tide, more than one year prior to maturity
iAnthus announced that it is in receipt of a purported notice from the Lenders and the Consenting Debenture Holders to unilaterally extend the outside date for closing the recapitalization transaction beyond the existing outside date of August 31, 2021
Indiva announced FQ2 ’21 net revenue of C$9.1 mm (improved 46% q/q) and adj. EBITDA of C$0.5 mm (improved 204% q/q)
Jane Technologies announced the closing of a US$100 mm Series C round of funding, led by Honor Ventures with participation from Third Point Ventures, Gotham Green, L2 Ventures, Delta Emerald Ventures and Artemis Growth
Jushi announced that its partner, Northern Cardinal, was awarded a conditional retail dispensary license in Illinois through the state’s lottery process; Jushi also announced that its Vice President of Cultivation Operations, Josh Malman has been selected as a recipient of a 2021 Cannabis Leadership Award; Jushi also announced the opening of its 21st BEYOND / HELLO retail location nationwide, 14th medical cannabis dispensary in Pennsylvania and third storefront in the City of Philadelphia through its subsidiary, Agape Total Health Care; Jushi also announced FQ2 ’21 total revenue of US$47.7 mm (improved 15% q/q) and adj. EBITDA of US$4.6 mm (improved 2% q/q); Jushi also announced that it has completed its previously announced acquisition of Franklin Bioscience OH; in addition, Jushi announced the launch of its new brand, Sèche, a fine flower line, in the State of Ohio and formerly only available for purchase at partner dispensaries across the Buckeye State
Khiron announced FQ2 ’21 revenue of C$2.8 mm (declined 1% q/q, with Medical up 47% q/q) and adj. EBITDA loss of C$3.8 mm (improved 4% q/q)
Medical Marijuana announced that its CEO, Blake Schroeder, was featured in Industry Era magazine discussing the current landscape of the CBD industry and Medical Marijuana’s recent international expansion efforts
MindMen and Forian announced that they will be collaborating to develop best practices for using real-world evidence information to help improve the health and lives of psychiatric patients Organigram announced the launch of SHRED’ems, a high-quality and bold flavored lineup of cannabis-infused gummies, as an extension to its SHRED product portfolio
Planet 13 announced FQ2 ’21 revenue of US$32.8 mm (improved 38% q/q) and adj. EBITDA of US$7.2 mm (improved 38% q/q)
RIV Capital announced the completion of its previously announced purchase by The Hawkthorne Collective, a cannabis-focused subsidiary of The Scotts Miracle- Gro Company, of an unsecured convertible note from RIV capital for US$150 mm
SLANG announced FQ2 ’21 revenue of C$11.3 MM (improved 14% q/q) and adj. EBITDA loss of C$0.95 mm
Sugarbud announced that it has entered into a Sales, Marketing, Supply and Distribution agreement with ROSE LifeScience for the Province of Quebec
The Parent Company announced the launch of a new line of wellness products, Well by Caliva, offering lotions and tinctures in three categories, including Well Balanced, Well Rested and Well Relieved
TGOD announced that it has completed its first international commercial shipment consisting of cannabis flower and other extracts destined for the South African medical cannabis market; TGOD also announced that the company intends to list on the CSE, and has received conditional approval from the CSE to do so
THC BioMed announced that it has received a re-order of its newly introduced cannabis edible, THC KISS Cannabis Biscuits, from its Saskatchewan distributer
TILT announced a new partnership with Shinnecock Indian Nation, a federally recognized Native American tribe living on their traditional lands in Long Island, N.Y., to establish vertical operations on their aboriginal tribal territory in the Hamptons; TILT also announced FQ2 ’21 revenue of US$48.5 mm (improved 4% q/q) and adj. EBITDA of US$6.5 mm (improved 5% q/q)
Trulieve announced the opening of a new dispensary in St. Augustine, Florida; Trulieve also announced the opening of two new dispensaries in Boynton Beach and Port Orange, Florida, marking its 100th location nationwide and 90th dispensary in Florida
Valens announced that Laura Fuentes, Co-Founder of its U.S. based subsidiary, Green Roads, has been recognized as a member of Forbes’ inaugural 50 over 50 Vision list
Verano announced the opening of a new MUV dispensary located in Orange City, Florida
Vext announced FQ2 ’21 revenue of US$9.4 mm (improved 2% q/q) and adj. EBITDA of US$3.4 mm (improved 12% q/q)
Source: Public filings PAGE 3
REGULATORY / OTHER UPDATES
The Union of British Columbia Municipalities announced that its considering the possibility of allowing cannabis consumption spaces
A California bill to legalize psychedelics possession will not advance further this year following a decision by the sponsor that more time is needed to build a reform case and solidify its chances of being enacted; California state officials announced that the state collected ~US$817 mm in adult-use cannabis tax revenue during the 2020- 2021 fiscal year, increasing ~55% in cannabis earnings generated in the prior fiscal year
Colorado Attorney General Phil Weiser sent a letter urging congressional leaders to ensure that small cannabis businesses are protected from being overtaken by big tobacco and other major industries as federal cannabis reform legislation advances
A group in Missouri filed another adult-use cannabis legalization initiative to the secretary of state’s office of in advance of the state’s 2022 ballot; the legalization initiative would make it so adults 21 and older could purchase, possess and cultivate cannabis for personal use Morocco’s Cabinet, consisting of top ministers within Morocco's government, approved a new decree, a large step of progress toward cannabis legalization in the country
A New Mexico state district court judge ordered that purchase limits for medical cannabis patients should be increased to conform with the new recreational cannabis laws approved by lawmakers earlier this year; New Mexico announced that it is officially accepting recreational cannabis producer applications, a day after the state released finalized rules for cannabis producers
New York Governor Kathy Hochul, successor to former Governor Andrew Cuomo, pledged to move forward with the state’s multibillion-dollar adult-use cannabis program, which was previously stalled by Andrew Cuomo
A third North Carolina Senate Committee approved a bill to legalize medical cannabis in a voice vote, getting the measure one step closer to the floor The U.S. Department of Health and Human Services (HHS) and the Governor of California’s office are looking into whether hospitals and other healthcare facilities in legal cannabis states can allow terminally ill patients to use medical cannabis without jeopardizing federal funding
The U.S. Department of Agriculture launched a large-scale national survey of 20,000 hemp farmers to gain insight into the hemp market that’s emerged since the federal legalization under the 2018 bill
The U.S. Supreme Court confirmed for a second time that it will not enter the legal fray between a number of cannabis businesses and the IRS
Source: Public filings PAGE 4
TRADING COMPARABLES
Trading Multiples Share Equity Enterprise % of 52 Revenue EBITDA EV / Revenue EV / EBITDA Short Price(1) Value(2) Value(2) wk-High CY21 CY22 CY21 CY22 CY21 CY22 CY21 CY22 Interest(3) (C$ / share) (C$ mm) (C$ mm) (%) (C$ mm) (C$ mm) (C$ mm) (C$ mm) (ratio) (ratio) (ratio) (ratio) (ratio) Canadian Based Cannabis Producers Canopy $21.65 $8,562 $7,491 30% $669 $895 ($202) ($33) 11.2x 8.4x nmf nmf 7.53 Tilray $16.93 $8,203 $8,141 20% $692 $1,118 $34 $113 11.8x 7.3x 241.1x 72.2x 2.52 Cronos $8.20 $3,049 $1,386 41% $89 $163 ($202) ($164) 15.7x 8.5x nmf nmf 5.24 Sundial $0.96 $1,977 $914 24% $58 $91 $3 $6 15.8x 10.1x nmf 153.9x 3.61 Aurora $9.07 $1,796 $1,847 38% $267 $314 ($68) ($2) 6.9x 5.9x nmf nmf 4.72 Village Farms $12.03 $1,086 $1,035 47% $328 $428 $15 $58 3.2x 2.4x 68.6x 17.7x 10.22 OrganiGram $3.30 $1,057 $761 41% $90 $131 ($30) ($12) 8.5x 5.8x nmf nmf 4.58 HEXO(4) $3.07 $683 $1,096 22% $178 $299 ($8) $22 6.2x 3.7x nmf 49.5x 2.10 Auxly $0.28 $237 $249 55% $80 $133 ($15) $7 3.1x 1.9x nmf 36.6x 0.58 Cannara $0.17 $149 $156 94% n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 0.07 TGOD $0.27 $140 $155 41% $42 $58 ($15) $6 3.7x 2.7x nmf 25.9x 2.88 Rubicon Organics $2.26 $127 $132 51% $21 $44 ($9) $8 6.2x 3.0x nmf 16.5x 0.69 Avant $0.65 $123 $106 59% n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 0.51 Decibel $0.30 $113 $156 81% $55 $82 $8 $16 2.8x 1.9x 19.1x 9.8x 0.17 Aleafia $0.34 $113 $141 27% $54 $97 ($7) $0 2.6x 1.4x nmf nmf 1.83 Entourage Health $0.24 $73 $139 24% $47 $80 ($6) $11 3.0x 1.7x nmf 12.5x 0.14 Flowr $0.11 $43 $93 15% $25 $41 ($8) ($6) 3.8x 2.3x nmf nmf 0.19 Mean 42% 7.0x 4.5x 109.6x 43.9x 2.80 Median 41% 6.2x 3.0x 68.6x 25.9x 2.10
Canadian Based Extraction Companies Valens $3.10 $619 $549 78% $111 $229 ($8) $39 4.9x 2.4x nmf 13.9x 3.88 MediPharm Labs $0.33 $87 $51 28% $26 $61 ($16) ($1) 1.9x 0.8x nmf nmf 7.82 Nextleaf $0.20 $23 $24 48% n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Radient $0.06 $21 $37 33% n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 0.85 Mean 46% 3.4x 1.6x n.a. 13.9x 4.18 Median 40% 3.4x 1.6x n.a. 13.9x 3.88
Canadian Based Cannabis Retailers High Tide $8.97 $507 $434 53% $203 $245 $26 $42 2.1x 1.8x 16.6x 10.3x 2.51 Fire & Flower $0.94 $329 $332 63% $203 $293 $14 $30 1.6x 1.1x 24.4x 11.2x 0.73 Nova Cannabis $2.65 $150 $166 69% $159 $320 ($6) $6 1.0x 0.5x nmf 27.2x 0.05 Mean 61% 1.6x 1.1x 20.5x 16.2x 1.09 Median 63% 1.6x 1.1x 20.5x 11.2x 0.73
Canadian Other RIV Capital $1.52 $217 $5 42% $2 $3 ($6) ($5) 3.2x 1.7x nmf nmf 0.26 Neptune $0.90 $150 $136 20% $59 $105 ($46) ($10) 2.3x 1.3x nmf nmf 14.59 Willow Biosciences $0.75 $94 $53 33% n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 0.38 Namaste $0.16 $64 $34 36% n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 0.24 Avicanna $1.09 $45 $37 66% n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Mean 39% 2.7x 1.5x n.a. n.a. 3.87 Median 36% 2.7x 1.5x n.a. n.a. 0.32
Source: Public filings, Bloomberg, FactSet, street research Note: Includes select cannabis companies. Share price performance based on share price appreciation only. 1. Market data as of 27-Aug-21. 2. Shown on a fully-diluted basis. 3. Calculated as the Short Interest divided by the daily average trading volume between 30-Jul-21 and 13-Aug-21. 4. Pro forma for acquisition of 48North and Redecan.
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TRADING COMPARABLES (CONT’D) Trading Multiples Share Equity Enterprise % of 52 Revenue EBITDA EV / Revenue EV / EBITDA Short Price(1) Value(2) Value(2) wk-High CY21 CY22 CY21 CY22 CY21 CY22 CY21 CY22 Interest(3) (C$ / share) (C$ mm) (C$ mm) (%) (C$ mm) (C$ mm) (C$ mm) (C$ mm) (ratio) (ratio) (ratio) (ratio) (ratio) Other North American Cannabis Companies Curaleaf $15.25 $11,488 $11,289 67% $1,629 $2,379 $468 $778 6.9x 4.7x 24.1x 14.5x n.a. Green Thumb $38.02 $8,675 $8,306 79% $1,142 $1,500 $409 $567 7.3x 5.5x 20.3x 14.7x n.a. Trulieve (4) $34.28 $4,946 $5,023 52% $1,647 $2,114 $640 $851 3.1x 2.4x 7.9x 5.9x n.a. Verano $18.21 $4,282 $4,308 45% $1,066 $1,593 $466 $718 4.0x 2.7x 9.2x 6.0x n.a. Cresco $12.61 $3,795 $3,841 59% $1,094 $1,542 $267 $492 3.5x 2.5x 14.4x 7.8x n.a. Ascend Wellness $13.25 $2,853 $3,137 95% $431 $791 $108 $283 7.3x 4.0x 29.0x 11.1x n.a. TerrAscend $9.10 $2,753 $2,418 46% $310 $525 $126 $239 7.8x 4.6x 19.3x 10.1x n.a. Ayr Wellness $30.80 $2,272 $2,346 67% $471 $1,000 $138 $375 5.0x 2.3x 17.0x 6.3x 0.07 Columbia Care $5.22 $1,945 $2,157 54% $648 $975 $123 $275 3.3x 2.2x 17.5x 7.8x n.a. Jushi $5.92 $1,572 $1,493 55% $283 $491 $42 $146 5.3x 3.0x 35.9x 10.2x n.a. Harvest Health $3.74 $1,528 $1,819 67% $524 $661 $142 $203 3.5x 2.8x 12.8x 9.0x n.a. Planet 13 $6.37 $1,307 $1,130 62% $167 $244 $40 $82 6.8x 4.6x 28.3x 13.8x n.a. 4Front $1.38 $971 $1,007 57% $213 $303 $58 $94 4.7x 3.3x 17.4x 10.7x n.a. Acreage $3.60 $490 $706 34% $236 $352 $41 $98 3.0x 2.0x 17.3x 7.2x n.a. The Parent Company $4.67 $459 $177 29% $263 $369 ($69) ($37) 0.7x 0.5x nmf nmf 0.06 Charlotte's Web $3.11 $442 $425 37% $133 $178 ($13) $9 3.2x 2.4x nmf 48.7x 1.42 MariMed $1.21 $395 $500 84% n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. MedMen $0.36 $370 $946 22% $201 $226 ($22) $14 4.7x 4.2x nmf 65.5x n.a. Gage $2.28 $315 $227 79% $158 $376 $8 $112 1.4x 0.6x 29.3x 2.0x n.a. Goodness Growth $1.78 $272 $267 38% $81 $177 $1 $43 3.3x 1.5x nmf 6.2x n.a. Cansortium $0.95 $175 $267 60% n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. cbdMD $2.66 $154 $131 31% $61 $69 ($12) $0 2.2x 1.9x nmf nmf n.a. C21 $1.02 $121 $142 41% n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Mean 55% 4.3x 2.9x 20.0x 14.3x 0.52 Median 55% 3.8x 2.6x 17.5x 9.6x 0.07
International Cannabis Companies - Australia Little Green Pharma $0.66 $157 $154 77% n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Cann Group $0.27 $83 $70 32% n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 0.19 MedLab $0.17 $58 $41 51% $6 $6 n.a. n.a. 7.5x 6.8x n.a. n.a. 0.08 International Cannabis Companies - Israel InterCure $7.83 $334 $328 66% n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. IM Cannabis $4.75 $319 $341 38% $61 $147 ($6) $43 5.6x 2.3x nmf 7.9x 22.59 Panaxia $0.47 $85 $89 51% n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. International Cannabis Companies - LatAm Flora Growth $11.82 $497 $478 54% $14 $45 $2 $11 33.1x 10.6x nmf 42.2x 0.10 Clever Leaves $12.43 $355 $306 51% n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 10.33 PharmaCielo $1.19 $175 $171 43% $4 $25 ($13) $2 43.3x 7.0x nmf 76.5x 0.79 Khiron $0.29 $53 $43 39% $14 $27 ($18) ($10) 3.0x 1.6x nmf nmf 0.86 Mean 50% 18.5x 5.7x n.a. 42.2x 4.99 Median 51% 7.5x 6.8x n.a. 42.2x 0.79
Ancillary Cannabis Companies Innovative Industrial Properties $303.52 $7,263 $7,626 99% $253 $365 $221 $331 30.2x 20.9x 34.5x 23.0x 7.78 Hydrofarm $62.09 $2,727 $2,526 52% $648 $830 $78 $124 3.9x 3.0x 32.5x 20.4x 2.29 GrowGeneration $39.32 $2,344 $2,231 46% $595 $786 $70 $96 3.7x 2.8x 31.8x 23.3x 1.28 Weedmaps $16.91 $2,186 $1,866 45% $252 $372 $63 $99 7.4x 5.0x 29.8x 18.8x 5.20 AFC Gamma $26.89 $442 $287 85% $43 $87 n.a. n.a. 6.6x 3.3x n.a. n.a. 0.55 Greenlane(5) $3.28 $288 $334 30% n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 5.54 TILT $0.60 $221 $314 64% n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Zynerba $5.24 $216 $110 46% n.a. n.a. ($48) ($53) n.a. n.a. nmf nmf 0.71 Mean 58% 10.4x 7.0x 32.2x 21.4x 3.34 Median 49% 6.6x 3.3x 32.2x 21.7x 2.29
SELECT INSTITUTIONALLY FOCUSED CONVERTIBLE TRADING COMPARABLES
Outstanding Premium at Economic Remaining Yield to Current Implied Credit Assumed Issuer Currency (Millions) Coupon Issue Maturity Term Ranking Bid Price Worst Premium Spread (bps) Volatility Aurora Cannabis USD $345 5.500% 10.0% Feb-24 2.5 Sr Unsecured $83.625 13.52% 1108% OTM 1,300 45.0% Canopy Growth CAD $600 4.250% 25.0% Jul-23 1.9 Sr Unsecured $98.000 5.38% 123% OTM 585 45.0% Canopy Growth CAD $36 8.000% 12.5% Sep-25 4.0 Sr Unsecured $121.000 2.49% 13% OTM 730 45.0% Tilray USD $278 5.000% 15.0% Oct-23 2.1 Sr Unsecured $97.875 6.10% 1147% OTM 575 45.0% Tilray USD $259 5.250% 20.0% Jun-24 2.8 Sr Unsecured $119.875 (1.77%) 17% ITM 625 45.0%
Source: Public filings, Bloomberg, BMO Capital Markets, FactSet, Kynex, street research Note: Includes select cannabis companies. Share price performance based on share price appreciation only. 1. Market data as of 27-Aug-21. 2. Shown on a fully-diluted basis. 3. Calculated as the Short Interest divided by the daily average trading volume between 30-Jul-21 and 13-Aug-21. 4. Pro forma for acquisition of Harvest Health. 5. Pro forma for acquisition of KushCo.
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