2021 PEICMC Annual Report

KEY HIGHLIGHTS Category Management • Maintained strong relationships with a well-diversified portfolio of suppliers, and ensured consistent access to a range of product options with virtually no retail disruption. • Built on a competitive pricing model that balances public policy priorities and PEI Cannabis corporate objectives surrounding illicit market penetration and responsible sales. Supply Chain Management • PEI Cannabis introduced a wide range of new cannabis products through FY 20/21 including edibles, beverages, and various concentrates. • Through an ongoing formal shared services agreement with the PEILCC, PEI Cannabis has maintained a strong supply chain framework with no non-COVID retail disruption. Risk Management • Ensured risks related to operational and capital expenditures were contained by PEI Cannabis to ensure profitability targets were reached. • Developed a comprehensive operational readiness plan related to COVID-19 safety measures when the stores re-opened to the public. Key Opportunities & Challenges: 1. There continues to be an opportunity for PEI Cannabis to grow profitability while it competes against an illicit sale stream that temporarily re-took market share due to COVID-19 related store closures. 2. PEI Cannabis was able to overcome temporary financial challenges during the brief period where stores were closed due to COVID.

16 www.peicannabiscorp.com • 2021 Annual Report