2022 PEICMC Annual Report

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PEI Cannabis Management Corporation

2022

For the Year Ended March 31 st , 2022

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PEICMC What guides us

Corporate Vision

To be the preferred source of adult use cannabis.

Mission Statement To provide customers with a retail experience that exceeds their expectations, foster an internal culture of engagement and wellness, and create value for all stakeholders. PEICMC Strategic Pillars Business Results: To become a key contributor to PEI’s general revenue through business excellence and the continuous improvement in operational effectiveness and efficiency. Customer Experience: To achieve and maintain high levels of customer satisfaction through sales channel accessibility, technical innovation, merchandising value, and high responsiveness to customer preferences. Corporate Citizenship: To be an excellent corporate citizen with high brand equity achieved through the promotion of responsible cannabis consumption, ongoing stakeholder engagement, and internal Corporate Social Responsibility campaigns. People & Culture: To foster a high-performing, customer-focused culture of engaged employees through open communication, learning & development, safe work environments, and overall wellness. Corporate Values Teamwork Always succeeding together. Passion Having fun going the extra mile. Accountability Reliably delivering on our commitments. Education Continuously learning. Empathy Everyone is important.

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PEICMC 2021-2022 Annual Report

Table of Contents

PEICMC - What Guides Us

Table of Contents

Message from the Minister

Message from the Chairman

Message from the CEO

Corporate Governance

Mandate of the PEI Cannabis Management Corporation Board

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Accountability to Government and Public

Appointment of Board Members

Audit Committee

Organizational Chart

Executive Summary

Sommaire

Operational Overview

Strategic Goal 1 - Business Results

Strategic Goal 2 - Customer Experience

Strategic Goal 3 - Corporate Social Responsibility

Strategic Goal 4 - People & Culture

Featured Supplier - Canopy Growth Corporation

PEI Cannabis Outlets

Statistics

Store By Store Net Sales Analysis

Dried Cannabis Equivalency Sales

Dried Flower Sales By Pack Size

Operating Expenses Analysis

Management’s Report

Appendix

Auditor’s Report and Audited Financial Statements

PEICMC 2021-2022 Annual Report

Message from the Minister

The Honourable Antoinette Perry Lieutenant Governor of Prince Edward Island PO Box 2000 Charlottetown, PE C1A 7N8

May It Please Your Honour:

Pursuant to the PEI Cannabis Management Corporation Act and as Minister designate, it is my privilege to submit the 4th Annual Report of the Prince Edward Island Cannabis Management Corporation.

Respectfully submitted,

Hon. D. Mark V. McLane Minister of Finance Minister Responsible for the PEI Cannabis Management Corporation *For the reporting period, Honorable Darlene Compton served as Minister responsible for Finance.

Message from the Chairman

The Hon. D. Mark V. McLane Minister of Finance Minister Responsible for the PEI Cannabis Management Corporation PO Box 2000 Charlottetown, PE C1A 7N8

Minister:

In compliance with Section 15 of the PEI Cannabis Management Corporation Act , it is my honour to submit this 4th Annual Report of the Prince Edward Island Cannabis Management Corporation covering the period of April 1, 2021 to March 31, 2022.

Respectfully submitted,

Quentin Bevan Chairman

PEICMC 2021-2022 Annual Report

Message from the CEO

Mr. Quentin Bevan Chairman, PEI Cannabis Management Corporation 3 Garfield Street Charlottetown, PE C1A 6A4

Dear Mr. Bevan:

In reviewing the Prince Edward Island Cannabis Management Corporation’s financial performance for the period of April 1, 2021, to March 31, 2022, total sales were over $21.8 million. During this 4th year of business, we saw an increase of over $4.8 million from the previous fiscal and recorded a net income of $2.6 million. In addition to this, we generated another $2.6 million in excise tax revenue for the Province. PEICMC has experienced challenges involving supply chain, along with mergers and acquisitions, amongst our industry partners. We remain optimistic that the legalized cannabis environment will mature and that supplier partnerships will be expanded. We are confident that PEICMC will remain well positioned to provide a robust offering of recreational adult-use cannabis. As we move through the pandemic, our dedicated warehouse, head office, and retail staff continue to work hard to expand our service offerings to strengthen our corporate retail and online channels. We also remain focused on our public policy priorities which make up the foundation of PEICMC’s corporate strategy. I would also like to extend my appreciation for the support, guidance, and leadership of our Board members, and members of the Executive Management team. Our success would also not be possible without all members of our organization, along with other stakeholders, and governing entities. We are very much focused on the year ahead, and look forward to continued success in all areas of our operations. It is my pleasure to present PEI Cannabis Management Corporation’s Fiscal Year 2022 Annual Report.

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Respectfully,

Daniel MacDonald Chief Executive Officer

PEICMC 2021-2022 Annual Report

Corporate Governance Corporate governance is the cumulative set of mechanisms, processes and relationships by which the Corporation is controlled and operated. It defines the distribution of rights and responsibilities among different Corporation stakeholders (e.g. government shareholder, CMC Board Members, Senior Managers, auditors, regulators, etc.) and details the decision making framework related to the pursuit of corporate and policy objectives.

PEI Cannabis Management Corporation Board STANDING: Perry Gotell - Member, Kate Shreenan - Recording Secretary, Susan Milligan - Member, Nicole DesRoche - Member, Murray Murphy - Corporation Solicitor SEATED: Daniel MacDonald - Chief Executive Officer, Quentin Bevan - Chair, Kim Griffin - Member, Vice-Chair Executive Management Team

STANDING: Shawn Alexander - Director, Human Resources and Employee Wellness; Gerald O’Halloran - Acting Director, Supply Chain and Property Management; Heather Rossiter - Director, Corporate Affairs and Regulatory Services SEATED: Carl J. Adams - Chief Financial Officer; Daniel MacDonald - Chief Executive Officer; Paul Crabbe - Director, Retail Operations and Strategic Development

PEICMC 2021-2022 Annual Report

Mandate of the PEI Cannabis Management Corporation Board The duties of the PEICMC Board are to: • Remain highly-engaged in PEICMC business affairs and evolving industry factors; • Make well-informed decisions in good faith and in a way that is impartial, fair, and ethical; • Manage or supervise the management of the PEICMC’s affairs including guiding policy decisions; • Approve the PEICMC’s budget, business plan, annual report, and financial statements; • Make, amend, or repeal bylaws; and • Exercise any additional responsibilities as defined within the regulations. Accountability to Government and Public The PEICMC is held accountable to government and the general public through a range of measures including, but not limited to: • The PEICMC Annual Report which is tabled in the legislature and available to the public that includes comprehensive details on the PEICMC’s affairs and financial outcomes during the preceding year; • Annual audited statements by the auditor general or a qualified auditor appointed by the Board to be included in the annual report; • Public access to records under the Freedom of Information and Privacy Protection Act ; and • Publicly-appointed Board Members. Appointment of Board Members The Lieutenant Governor in Council, through an Order-in-Council, appoints the members of the PEICMC board, establishes the honorariums, and designates the Chair. The board collectively designates the Vice-Chair from among its members. Audit Committee The Audit Committee is elected annually and consists of three Board Members in addition to the Chairman and the CEO as ex-officio. The Committee ensures the reliability and accuracy of the PEICMC’s financial statements, helps co-ordinate and improve internal control functions, and ensures the PEICMC adheres to sound corporate governance principles.

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PEICMC 2021-2022 Annual Report

Organizational Chart

Hon. D. Mark McLane

Minister Responsible

Quentin Bevan

Chair

Perry Gotell

Kim Griffin

Member

Member / Vice-Chair

Susan Milligan

Nicole DesRoche

Member

Daniel MacDonald

Kate Shreenan

Chief Executive Officer

Executive Assistant

Heather Rossiter

Carl Adams

Director, Corporate Affairs and Regulatory Services

Chief Financial Officer

Shawn Alexander

Gerald O’Halloran

Director, Human Resources and Employee Wellness

Acting Director, Supply Chain and Property Management

* Shared-services agreement with the PEI Liquor Control Commission (PEILCC). ** For the reporting period, Honorable Darlene Compton served as Minister responsible for Finance.

Paul Crabbe

Director, Operations and Strategic Development

PEICMC 2021-2022 Annual Report

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PEICMC 2021-2022 Annual Report

Executive Summary The Prince Edward Island Cannabis Management Corporation (PEICMC) is a crown corporation responsible for the administration of the PEI Cannabis Management Corporation Act and Regulations. The PEICMC operates under the branded name PEI Cannabis.

A five-member Board appointed by the Lieutenant Governor in Council is responsible for the Corporation’s activities, and the chairperson reports to the Minister responsible for PEI Cannabis.

The mandate under the Cannabis Management Corporation Act has two primary purposes:

1. To establish the necessary framework for socially responsible management of the distribution and sale of cannabis and related products; and 2. To facilitate and promote the responsible consumption of cannabis and related products in Prince Edward Island. PEI Cannabis expects to become a major force in the provincial economy over the medium-to-long term, and during its fourth fiscal year it generated over $21M in total net receipts, thus continuing to make gains and disrupting the illicit market. A three-year strategic plan, complemented by an annual business plan, is the key mechanism to ensure PEI Cannabis is meeting its strategic objectives, and aligning itself with the key public policy priorities surrounding cannabis legalization.

PEI Cannabis focuses on the following four (4) strategic areas to measure performance:

• Business Results • Customer Experience • Corporate Social Responsibility • People & Culture

These strategic pillars, and the tactical initiatives developed within them, serve as a blueprint for incorporating the Vision and Mission Statements into day- to-day operations, the outcomes of which are explained in further detail in this report.

PEICMC 2021-2022 Annual Report

Sommaire La Société de gestion du cannabis de l’Île-du-Prince-Édouard (SGCIPE) est une société de la Couronne responsable de l’administration de la Cannabis Management Corporation Act (loi sur la Société de gestion du cannabis) de l’Île-du-Prince-Édouard et de son règlement d’application. La SGCIPE est exploitée sous le nom de marque Cannabis Î.-P.-É.

Un conseil de cinq membres désignés par le lieutenant-gouverneur en conseil est responsable des activités de la Société. La présidence relève du ministre responsable de Cannabis Î.-P.-É.

Le mandat conféré à l’organisme par la Cannabis Management Corporation Act a deux objectifs principaux :

1. Établir le cadre nécessaire pour une gestion socialement responsable de la distribution et de la vente de cannabis et de produits connexes. 2. Faciliter et promouvoir la consommation responsable de cannabis et de produits connexes à l’Île- du-Prince-Édouard. Cannabis Î.-P.-É. s’attend à devenir un levier important de l’économie de la province à moyen et à long termes. Au cours de son quatrième exercice, il a généré un total de plus de 21 millions de dollars en recettes nettes, continuant à réaliser des gains et à perturber le marché illicite. Un plan stratégique triennal ainsi qu’un plan d’affaires annuel sont les mécanismes clés pour veiller à ce que Cannabis Î.-P.-É. atteigne ses objectifs stratégiques et se conforme aux priorités clés des politiques publiques entourant la légalisation du cannabis.

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Cannabis Î.-P.-É. met l’accent sur quatre domaines stratégiques pour mesurer le rendement :

• Résultats opérationnels • Expérience client • Responsabilité sociale • Personnes et culture

Ces piliers stratégiques et les initiatives tactiques développées au sein de ceux-ci servent de plan directeur pour incorporer les énoncés de vision et de mission au sein des activités courantes. Les résultats de celles-ci sont décrits de manière détaillée dans le présent rapport.

PEICMC 2021-2022 Annual Report

Operational Overview 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 2020-2021

Target 2021-2022

Actual 2021-2022

% of Target 2021-2022

Target 2022-2023

$17,011,553 $19,206,400

$21,894,379

114.0% $23,500,000

Gross Margin

19.5%

25.0%

25.4%

101.6%

23.8%

Net (Loss) income

$564,792

$611,600

$2,609,580

426.6% $1,267,600

NET RECEIPTS

APPLICATION OF NET RECEIPTS

Recognition of Capital Assets

Beverages

4% Edibles

Concentrates

2.0%

0% Accessories

Ingested Extracts

18.4% Operating Expenses

0% Topicals

5% Other Income

0% Seeds

21% Pre-Rolled

59% Dried Flower

79.6%

Suppliers

PEICMC 2021-2022 Annual Report

TACTICAL SUMMARY PEI Cannabis recognizes the continued presence of a mature, sophisticated illicit cannabis market. Further, this unregulated market still controls much of the PEI market share, and due to the absence of any quality assurance measures or accountability requirements to customers and staff, it also has much lower costs to get product to market. Further, the Corporation acknowledges the pre-legalization customer preferences, and how they continue to shape the licit industry’s current and prospective product offerings (i.e. derivative products, genetic, etc.). To successfully compete with existing market sources, PEI Cannabis executed plans focusing on excellence in Category Management, Supply Chain Management, and Risk Management. PEI Cannabis is pleased to have exceeded its sales and profitability targets for fiscal 2022, and more importantly the corporation has achieved success related to incremental illicit market displacement. However, it has also identified some key challenges and opportunities in terms of achieving sustainable outcomes in the medium-to-long term.

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PEICMC 2021-2022 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 from existing and new suppliers through Fiscal Year 21/22 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 retail disruption. Risk Management • Ensured risks related to operational and capital expenditures were contained by PEI Cannabis to ensure profitability targets were reached. • Maintained a comprehensive operational readiness plan related to COVID-19 safety measures in stores. 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 has much lower overhead. 2. There are opportunities for continuous improvement as it relates to operational, supply chain, and systems framework held by PEI Cannabis.

PEICMC 2021-2022 Annual Report

STRATEGIC GOAL 2 - CUSTOMER EXPERIENCE

STRATEGIC GOAL: To achieve and maintain high levels of customer satisfaction through sales channel accessibility, technical innovation, merchandising value, and fast responsiveness to customer preferences. TACTICAL OBJECTIVES: 1. To provide an engaging retail experience that provides value to PEI Cannabis customers; 2. To facilitate ongoing displacement of the illicit market by attracting new customers; and 3. To provide customers with a unique and diversified product offering that meets their evolving expectations.

PERFORMANCE MEASURES

Actual 2020-2021

Target 2021-2022

Actual 2021-2022

% of Target 2021-2022

Target 2022-2023

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Customer Experience Score

98%

80%

96%

120.0%

90%

Customer Counts

424,529

487,600

544,976

111.8%

580,000

Unique SKUs Sold

742

600

650

108.3%

700

CUSTOMER COUNTS

SKU TYPE BY FORMAT

Concentrates

Topicals

Beverages

Seeds

Accessories

Edibles

Ingested Extracts

184

Pre-Rolled

104

April, 2021 • 39,753

May, 2021 • 46,173

June, 2021 • 45,698

July, 2021 • 49,891

August, 2021 • 51,644

September, 2021 • 47,977

October, 2021 • 47,802

November, 2021 • 43,876

December, 2021 • 46,874

January, 2022 • 42,945

February, 2022 • 39,000

March, 2022 • 43,433

Dried Flower

CANNABIS SKU BY SPECIES

CANNABIS SKU BY STRENGTH

Mild

Blend

CBD

141 Indica

Sativa

Medium

Strong 203

165

105

95 Hybrid

PEICMC 2021-2022 Annual Report

TACTICAL SUMMARY To be viewed as the preferred source of adult use cannabis, PEI Cannabis has established an accessible sales network and an effective product offering. This remains influenced by rigorous analysis of existing customer insights, and is done with the goal of offering an educational and highly-engaging retail experience. Special attention is given to stakeholder engagement in the store network design to ensure the unique sensitivities surrounding cannabis sales do not lead to adverse impacts on the community (e.g. increasing exposure to youth, etc.).

To facilitate sustainable interest in PEI Cannabis as a source of adult-use cannabis, PEI Cannabis continued its execution of plans focusing on Sales Channel Design and Customer Service. PEI Cannabis has achieved reasonable short-term success in these areas, but has also identified some key challenges and opportunities in terms of sustaining and building on customer engagement and satisfaction in the medium-to-long term.

PEICMC 2021-2022 Annual Report

KEY HIGHLIGHTS Sales Channel Design • PEI Cannabis built on its award-winning storefront designs through the development and launch of a completely revamped customer education strategy. Customer Experience • During a period of national supply constraints, PEI Cannabis accomplished 108% of its year four SKU target and had no retail disruption related to a lack of product. • PEI Cannabis exceeded its customer count forecast for a fourth consecutive year, which is thought to be a positive measurement of the Corporation’s ongoing ability to compete and displace the illicit market. KEY OPPORTUNITIES & CHALLENGES: 1. PEI Cannabis has observed substantial growth in the volume of total dried cannabis equivalency of products sold, which it feels represents ongoing opportunities for growth in the domestic market share. 2. New product classes present an opportunity for PEI Cannabis to meet evolving customer preferences and continue displacing the illicit market.

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PEICMC 2021-2022 Annual Report

STRATEGIC GOAL 3 - CORPORATE SOCIAL RESPONSIBILITY

STRATEGIC GOAL: To be an excellent corporate citizen with high brand equity achieved through the promotion of responsible cannabis consumption, ongoing stakeholder engagement, and internal CSR campaigns. TACTICAL OBJECTIVES: 1. To build mutually-beneficial stakeholder partnerships that align with the PEICMC’s objectives; 2. Ensure cannabis is retailed in a responsible fashion that is educational in nature and aligns with the promotional restrictions laid out in the Federal Cannabis Act; and 3. Continuously improve the PEICMC’s reputation as an excellent corporate citizen among stakeholders.

PEFORMANCE MEASURES Investment in CSR Initiatives Retail Responsible Service Score Corporate Citizenship Survey Score

Actual 2020-2021

Target 2021-2022

Actual 2021-2022

% of Target 2021-2022

Target 2022-2023

$52,245

$100,000

$95,000

95.0%

$150,000

86%

85%

86%

101.2%

85%

84%

80%

86%

104.5%

85%

PEICMC 2021-2022 Annual Report

TACTICAL SUMMARY Standing out as a corporate citizen that always conducts its corporate affairs in an ethical, transparent fashion is a key strategic focus for PEI Cannabis. Constant alignment with the primary public policy priorities surrounding legalization is the foundation of the Corporation’s business strategy which serves as the common ground it holds with its stakeholders. To be thought of as the preferred provider of cannabis by the public, regardless of their varying perceptions of cannabis use, PEI Cannabis has executed tactical plans focusing on branding, social responsibility, and stakeholder engagement. It has achieved reasonable short-term success in these areas. However, it has also identified some key challenges and opportunities related to how the Corporation can build on its reputation as a good corporate citizen that creates value for all stakeholders in the medium-to-long term.

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PEICMC 2021-2022 Annual Report

KEY HIGHLIGHTS Branding • PEI Cannabis has built on its brand equity and remains firmly aligned with the public policy priorities of protecting youth, educating the public, and displacing the illicit market. • A key focus of PEI Cannabis’s branding strategy continues to be the enhancement of consumer education regarding the consumption of cannabis. Social Responsibility • Over Fiscal 2022, key external partnerships were maintained by PEI Cannabis focusing on responsible cannabis consumption. (e.g. UPEI, Holland College, Credit Union Place, T3 Transit, etc.). • PEI Cannabis continued to participate on a national committee promoting responsible cannabis consumption, called the Canadian Cannabis Jurisdictional Leadership – Social Responsibility Subcommittee. • PEI Cannabis continues to build upon its Mystery Shop Program – a program that monitors compliance of responsible sales and a range of service factors related to the customer experience. Stakeholder Engagement • A second Corporate Citizenship Survey was initiated by PEI Cannabis to seek and obtain valuable feedback from its full range of external stakeholders. • Through positive relationships with supplier partners and fellow jurisdictional leadership groups, PEI Cannabis constantly contributes toward fostering an effective national cannabis industry focused on the public policy priorities that ushered in legalization. KEY OPPORTUNITIES & CHALLENGES: 1. There are continued opportunities for PEI Cannabis to enhance public awareness and educational campaigns related to the risks and laws associated with cannabis use. 2. The continuation of a Responsible Service Score conducted by impartial mystery shoppers will be a key priority for fiscal 2023. 3. Through its Corporate Citizenship Survey, PEI Cannabis has various opportunities to ensure it can create value for its full range of stakeholders.

PEICMC 2021-2022 Annual Report

STRATEGIC GOAL 4 - PEOPLE & CULTURE

STRATEGIC GOAL: To foster a high-performing, customer-focused culture of engaged employees through open communication, learning & development, safe work environments, and overall wellness. TACTICAL OBJECTIVES: 1. Always recruit, develop and retain the best people through fair labour practices and mobility opportunities; 2. Foster a culture of performance, communication, and engagement; and 3. Establish and continuously promote a healthy, safe, and respectful workplace.

PERFORMANCE MEASURES Staff Retention Rate Employee Engagement Score Employee Wellness Rate

Actual 2020-2021

Target 2021-2022

Actual 2021-2022

% of Target 2021-2022

Target 2022-2023

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94.7%

95%

97.7%

102.8%

95%

N/A*

80%

97.24%

98%

97.44%

98.4%

98%

*COVID pushed PSC Employee Engagement Survey to Fiscal 2022

PEICMC 2021-2022 Annual Report

TACTICAL SUMMARY PEI Cannabis maintains its belief that high functioning, knowledgeable, and engaged retail teams are imperative to success in adult-use cannabis sales. To compete with the illicit market, PEI Cannabis needs to provide a superior retail experience and this starts with the corporation’s people.

To achieve success in this area, PEI Cannabis continues to execute plans focusing on Workplace Wellness, Engagement, and Professional Success. Short-term success in this area has been realized, which is most notably observed in the customer- oriented retail teams working at PEI Cannabis retail sites. KEY HIGHLIGHTS Workplace Wellness • PEI Cannabis invested in a series of point-of- sale renovations in fiscal 2021, many of which held optimal ergonomic design for its retail teams as a key objective. • PEI Cannabis achieved 98.4% of its strategic target related to absenteeism due to injury or illness, which is viewed to be a top corporate

success and one to build on through fiscal 2023.

PEICMC 2021-2022 Annual Report

Engagement • PEI Cannabis partnered with an external training provider through fiscal 2022 to facilitate a comprehensive training program for all of its retail teams. • Store managers continued to be provided with leadership training to ensure that they are able to foster engagement and continued success within their retail teams. Professional Success • Excellent outcomes around minimal staff turnover over fiscal 2022 is interpreted to be a good sign of a satisfied workforce that continues to view PEI Cannabis as a valued opportunity. • PEI Cannabis maintains a training & development fund available to all employees which seeks to foster mutual growth in its people and the organization as a whole. KEY OPPORTUNITIES & CHALLENGES: 1. PEI Cannabis’s intention is to complete a formal performance planning, evaluation & coaching program in fiscal 2023. 2. PEI Cannabis must continue to manage absenteeism due to injury or illness so it can preserve the health of its employees and the leanness of its operations. 3. The Corporation must continuously provide staff with educational support and growth opportunities to ensure a flexible, scalable, and engaged workforce.

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PEICMC 2021-2022 Annual Report

FEATURED SUPPLIER The RETRO team at their production facility in Charlottetown, PEI

Tell us a bit about Retro Cannabis. How did it get started? RETRO is a craft micro producer located in beautiful Charlottetown, Prince Edward Island. Our commitment from the beginning has been focused on producing top-quality cannabis products with attention to detail in every step of our process. At RETRO we have assembled a skilled management team and a world class scientific advisory board with over 75 years of experience in Supercritical Fluid processing and formulation. RETRO produces & packages high quality, full spectrum craft extracts such as vapes, tinctures and syringes, utilizing proven technology from Advanced Extraction Systems Inc. The company began as a passion project for our CEO Peter Toombs. Peter believed the market was looking for premium craft offerings at accessible price points. With his expertise in CO2 extraction, he knew he could change the industry for the better.

What are some of the new products that Retro is excited about? RETRO is continuously expanding and refining its product portfolio with over 60 new innovative products in the pipeline. These products range from infused pre rolls, wax, diamonds and other extremely exciting confidential releases. Stay tuned. How does Retro see the craft micro cannabis industry evolving? Over the next 5 years RETRO sees the micro cannabis industry expanding and growing substantially. Consumers will gradually become more focused on quality and terpenes versus high THC and price. The micro cannabis community is focused on producing quality products with passion and love for the plant. We know the micro cannabis industry will be the leaders in the near future. Consumers can expect RETRO to lead the industry through innovation featuring unique product offerings and exotic cultivars. Our premium quality and passion for our products will never change. Our product offerings will only continue to innovate, elevate and push the industry forward. What can customers expect from Retro Cannabis in the next year?

What are Retros signature brands? RETRO’S signature brands include: RETRO High CBD Oil RETRO Full Spectrum Honey Oil RETRO Full Spectrum Vape Cartridges

PEICMC 2021-2022 Annual Report

PEI Cannabis Outlets

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PEI CANNABIS RETAIL STORES

ADDRESS

PHONE

O’Leary

478 Main St., O’Leary, PE C0B 1V0

902-859-0392 902-438-4989 902-569-7758 902-838-0924

Summerside Charlottetown

447 Granville St., Summerside, PE C1N 3C4 85D Belvedere Ave. Charlottetown, PE C1A 6B2

Montague

509 Main St. Montague, PE C0A 1R0

PEICMC 2021-2022 Annual Report

Statistics

STORE BY STORE NET SALES ANALYSIS

PEI Cannabis Storefront

Total Net Receipts

% of Sales revenue

Charlottetown Summerside

$12,489,156 $5,015,563 $3,014,834 $1,048,075

57.04% 22.91% 13.77% 4.79% 1.49%

Montague

O’Leary

Online

$326,751

Total

$21,894,379

100%

DRIED CANNABIS EQUIVALENCY SALES:

By Format

By Species

CBD

Beverages

Concentrates

Blend

Edibles

5% Ingested Extracts

39% Indica

30% Sativa

22% Pre-Rolled

62% Dried Flower

22%

Hybrid

<1% Topicals

<1% Seeds

DRIED FLOWER SALES BY PACK SIZE

14g

<1% 5g, 10g, 21g

28g 29%

43% 3.5g

15g 7%

1g 2%

17%

PEICMC 2021-2022 Annual Report

OPERATING EXPENSES ANALYSIS