2022 PEICMC 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%

1%

4%

0% Accessories

Ingested Extracts

5%

18.4% Operating Expenses

0% Topicals

5% Other Income

0% Seeds

21% Pre-Rolled

59% Dried Flower

79.6%

Suppliers

14

PEICMC 2021-2022 Annual Report