PEI Cannabis - Annual Report 2020

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 launched a wide range of Phase 2 cannabis products through FY 19/20 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 at such time the stores are permitted to re-open to the public. Key Opportunities & Challenges: 1. It will be challenging for PEI Cannabis to grow profitability while it competes against an illicit sale stream that has re-taken market share due to COVID-19 related store closures. 2. Depending upon how long the stores are closed, may pose financial challenges.

KnowYour Possession Limit

Beverages

Extracts

Edibles

POSSESSION LIMIT

POSSESSION LIMIT

POSSESSION LIMIT

2.1L

7.5g

450g

Topicals

Dried Flower

Seeds

POSSESSION LIMIT 30 Seeds

POSSESSION LIMIT

POSSESSION LIMIT

2,100g

30g

16 www.peicannabiscorp.com • 2019 Annual Report