Processa Pharmaceuticals, Inc. (PCSA) Initiation Report

October 28, 2020 Processa Pharmaceuticals, Inc. Page 16 of 16 ALPHA SELECT LIST © 2020 Craig-Hallum Capital Group LLC Institutional Research REQUIRED DISCLOSURES Initiation: October 28, 2020 – Rating: Buy – Price Target: $12 Source: FactSet Ratings definitions: Buy rated stocks generally have twelve month price targets that are more than 20% above the current price. Hold rated stocks generally have twelve month price targets near the current price. Sell rated stocks generally have no price target and we would sell the stock. Fundamental trend definitions: Improving means growth rates of key business metrics are generally accelerating. Stable means growth rates of key business metrics are generally steady. Mixed means growth rates of some key business metrics are positive but others are negative. Declining means growth rates of key business metrics are generally decelerating. Ratings Distribution (9/30/2020) % Of Companies % With Investment Rating Covered Banking Relationships Buy 81% 21% Hold 19% 8% Sell 1% 0% Total 100% 18% Information about valuation methods and risks can be found in the “STOCK OPPORTUNITY” and “RISKS” sections, respectively, of this report. CHLM makes a market in this security. CHLM has managed or co-managed an offering of securities for the subject company in the last 12 months. CHLM has performed investment banking services for the subject company in the last 12 months. CHLM has received investment banking revenue from the subject company in the last 12 months. CHLM expects to receive or intends to seek compensation for investment banking services from the subject company in the next three months. Analysts receive no direct compensation in connection with the firm’s investment banking business. Analysts may be eligible for bonus compensation based on the overall profitability of the firm, which takes into account revenues from all of the firm’s business, including investment banking. OTHER DISCLOSURES Although the statements of fact in this report have been obtained from and are based upon recognized statistical services, issuer reports or communications, or other sources that Craig-Hallum believes to be reliable, we cannot guarantee their accuracy. All opinions and estimates included in this report constitute Craig-Hallum's judgment as of the date of this report and are subject to change without notice. Craig-Hallum may effect transactions as principal or agent in the securities mentioned herein. The securities discussed or recommended in this report may be unsuitable for investors depending on their specific investment objectives and financial position. This report is offered for informational purposes only, and does not constitute an offer or solicitation to buy or sell any securities discussed herein in any jurisdiction where such would be prohibited. Additional information available upon request. Member SIPC. REGULATION AC CERTIFICATION I, Robin Garner, hereby certify that the views expressed in this research report accurately reflect my personal views about the subject security and issuer. No part of my compensation was, is or will be directly or indirectly related to the specific recommendations or views contained herein.