PEI Cannabis - Annual Report 2020

Message from the CEO

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

Dear Mr. Bevan:

Through the fiscal year of April 1, 2019 to March 31, 2020, gross sales of the PEI Cannabis Management Corporation (PEICMC) totaled $16.3M, and its net profit was $653,401. We were pleased to generate this revenue for government, in addition to approximately $1M in excise tax revenues for the province as a result of our operations. Most importantly, the three public policy priorities that shaped the formulation of the PEICMC business strategy have proven to be a strong foundation to measure success in the Iong-term - keeping cannabis out of the hands of youth, educating Islanders on the health risks and regulations associated with cannabis use and eliminating the illicit cannabis market. For these accomplishments I wish to acknowledge the Board of Directors for their guidance and support, as well as the Executive Management Team for its important contributions towards these achievements. I also want to highlight the remarkable work done by all the PEI Cannabis staff who are central to our successes. With our stores being closed as of March 19, 2020 due to the COVID-19 pandemic, this will no doubt present unique challenges going forward. However, PEI Cannabis is confident in the measures that have been developed to ensure the health and safety of our employees and customers at such time the stores are opened to the public. As the PEI Cannabis Management Corporation enters into its third year of operation we look forward to achieving greater successes with our dedicated team and a sound business strategy in place.

Yours truly,

James C. MacLeod Acting Chief Executive Officer

PEI Cannabis Î.-P.-É. • 2019 Annual Report 7