2021 PEICMC Annual Report

Strategic Review Of Operations PEI Cannabis has a 3-year Strategic Plan which guides its activities through to fiscal 2021-2022. The accomplishment of strategic goals is supported by an annual business plan that detail corporate objectives to be accomplished, and measurable targets used to evaluate the degree to which corporate objectives are being met. The following is an overview of the performance in each of the four (4) strategic pillars. STRATEGIC GOAL 1 - BUSINESS RESULTS STRATEGIC GOAL: To become a key contributor to PEI’s general revenue through business excellence and the continuous improvement in operational effectiveness and efficiency.

CORPORATE OBJECTIVES: 1. Grow sales revenues to continuously displace the illicit market;

2. Grow top-line profitability on cannabis products through tactful supplier relations; and 3. Continuously build on the effectiveness and efficiency of cannabis operations through strategic resource deployment.

PEFORMANCE MEASURES Total Net Sales Revenue

Actual 2019-2020

Target 2020-2021

Actual 2020-2021

% of Target 2020-2021

Target 2021-2022

$16,355,262 $14,633,315

17,011,553

116.25% $18,595,000

Gross Margin

23.40%

25.50%

19.5%

76.47%

27%

Net (Loss) income

$653,401

$(137,100)

$564,792

411.96%

$611,600

NET RECEIPTS

APPLICATION OF NET RECEIPTS

Recognition of Capital Assets

3% Edibles

Beverages

Concentrates

2.4%

1%

3%

0% Accessories

6% Ingested Extracts

19.9% Operating Expenses

0% Topicals

7% Other Income

0% Seeds

NET RECEIPTS 2021

APPLICATION NET RECEIPTS 2021

15% Pre-Rolled

65% Dried Flower

77.7%

Suppliers

14 www.peicannabiscorp.com • 2021 Annual Report