2022 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 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.

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PEICMC 2021-2022 Annual Report