PEI Cannabis 2023 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. PEI Cannabis introduced a wide range of new cannabis products from existing and new suppliers from PEI and across Canada through Fiscal Year 22/23 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. Retail Expansion • PEI Cannabis continues to look for retail expansion opportunities to provide more safe access to regulated cannabis products and to combat the illicit market. Risk Management • Ensured risks related to operational and capital expenditures were contained by PEI Cannabis to ensure profitability targets were reached. • Ensure product inventory levels are maintained by methods of sku rationalization, FIFO inventory management, and timing of product calls. Supply Chain Management •

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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 2022-2023 Annual Report