PEI Cannabis Management Corporation - 2019 Annual Report

Message from the CEO

Mr. Quentin Bevan Chairman, PEI Cannabis Management Corporation Charlottetown, PE C1A 7M4

Dear Mr. Bevan:

The first year of PEI Cannabis Management Corporation (PEICMC) operations covered the period of December 28, 2017 to March 31, 2019. Through this partial fiscal year, gross sales receipts totaled $6,956,964, and its net loss was $529,095. Though a loss was budgeted it should be recognized that this was the first year of operation, and several one-time costs were required that will not be incurred in the future. Overall, however, the initial year for PEICMC was successful in several regards. Not only was the number of customers over 80,000 higher than expected, but, 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 long-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 our customers, suppliers, employees, senior management and the Board of Commissioners for their support and important contributions.. As the PEI Cannabis Management Corporation enters into its second year of operation there is every confidence in achieving greater successes with its dedicated team and a sound business strategy in place.

Yours truly,

James C. MacLeod Acting Chief Executive Officer

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