PEI Cannabis Annual Report 2025

KEY HIGHLIGHTS

Category Management • Sustained strong partnerships with licensed producers ensuring reliable access to a wide selection of products with minimal disruption to retail operations. • Enhanced a competitive pricing strategy that aligns with public policy goals and PEI Cannabis’s corporate objectives, including reducing illicit market activity and promoting responsible sales. Since Legalization, PEI Cannabis expanded its product selection by introducing a diverse array of cannabis including mainstream, value, craft and organic from suppliers across PEI and Canada. • Under a continued formal shared services agreement with the PEILCC, PEI Cannabis upheld a robust supply chain infrastructure, ensuring uninterrupted retail operations. Risk Management • PEI Cannabis effectively managed risks associated with operational and capital expenditures to support the achievement of profitability targets. • Maintained optimal product inventory levels through SKU rationalization, FIFO (First-In, First-Out) inventory practices, and strategic timing of product calls. Supply Chain Management •

KEY OPPORTUNITIES & CHALLENGES

1. PEI Cannabis still has the potential to increase profitability despite competing with an illicit market that operates with significantly lower overhead costs. 2. Opportunities exist for ongoing enhancements in PEI Cannabis’s operations, supply chain, and systems infrastructure.

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PEICMC 2024-2025 Annual Report