PEI Cannabis 2023 Annual Report

MESSAGE FROM THE CEO

Mr. John Abbott, Chair PEI Cannabis Management Corporation 3 Garfield Street Charlottetown, PE C1A 6A4 Dear Mr. Abbott,

It is my privilege to introduce the annual report of the Prince Edward Island Cannabis Management Corporation (PEICMC) for the fiscal year 2023. As we look back on the past year, I am filled with deep pride and gratitude, reflecting on the incredible journey our organization has embarked upon.

Upon reviewing the financial performance of the Prince Edward Island Cannabis Management Corporation for the period of April 1, 2022, to March 31, 2023, I am pleased to report total sales exceeding $22.5 million. This represents a significant increase of over $600,000 from the previous fiscal year, with a recorded net income of $2.9 million. Additionally, we contributed $3.4 million in excise tax revenue to the province. One of the key highlights of the past year was the announcement of our fifth retail location, which will be our second centrally located PEI Cannabis store within the province. Notably, our Charlottetown store has earned the reputation of being one of the busiest cannabis stores in Canada. This expansion into Stratford is crucial to meet the growing demand and to remain competitive with the illicit market. In addition to expanding our physical presence, we have focused on various other aspects of our business. We successfully launched a click-and-collect service, enhancing our customer experience. Furthermore, we are proud to have established new socially responsible partnerships in the fiscal year 2023 with MADD Canada, the Kari Ride Share Program, and the new Multi-Purpose Dome Field in Summerside. Our industry continues to navigate through many challenges, which include a struggling economy, and ongoing competition with a robust illicit market. As we navigate beyond the hurdles, our licensed producers are also grappling with industry challenges of their own, like mergers, acquisitions, and insolvencies. We remain strong in our commitment to collaborating with local producers, and our goal is to assist them in establishing a strong presence in the highly competitive recreational retail market. There are many people to thank for their work including our stakeholders, governing bodies, and our esteemed Board Members for their invaluable guidance throughout the year. I am particularly thrilled to welcome you, John as our new Chair. Your wealth of experience from various roles within the PEI Liquor Control Commission (PEILCC) will be an asset. While we look forward to continued collaboration, we must also pay tribute to the exceptional dedication of our outgoing Chair, Quentin Bevan, who has exemplified true commitment in serving us in leadership roles at both the PEILCC and PEICMC. Our devoted team, since inception including our senior management team, our staff in stores, and at head office, and the warehouse has consistently showcased unwavering dedication to both the PEICMC and the residents of Prince Edward Island. In the face of persisting challenges presented by COVID-19 and the disruptions stemming from Hurricane Fiona, our team has consistently risen to meet these challenges. It is essential to underscore that the foundation of our success lies within every single member of our organization. I wish to once more express my deep appreciation to not only our team members, but also to customers, partners, and the communities we serve. I have full confidence that the PEICMC will not only fulfill but surpass its continued dedication to supporting the province and its residents. We have a strong emphasis on the upcoming year and eagerly anticipate ongoing success across all aspects of our operations. It is my honour to introduce the Annual Report for the fiscal year 2023 on behalf of the Prince Edward Island Cannabis Management Corporation.

PLEASE DON’T DRIVE IMPAIRED

Respectfully submitted,

Daniel MacDonald Chief Executive Officer

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PEICMC 2022-2023 Annual Report