Climate Change Data

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• The Company’s directors follow recommended corporate governance guidelines for public companies to ensure transparency and accountability to shareholders. The board’s audit committee meets with management quarterly to review the financial statements including the MD&A and to discuss other financial, operating, and internal control matters.

Climate Goals & Targets

Environmental Challenges

• Global Financial Conditions: Increased volatility and restricted access to financial markets impacting ability to obtain financing.
• Uncertainty and adverse changes in the economy: Decreased demand for products, increased costs, and decreased financing availability.
• Currency Fluctuations: Exposure to significant currency fluctuations without hedging arrangements.
• Market for Securities: High price and volume volatility in securities markets.
• Resale of shares: Uncertainty regarding sufficient liquidity and market price for share resale.
• Shareholder Dilution: Potential dilution of shareholder interests through future equity financing.
• Government Regulations and Risks: Need for government approvals and compliance with regulations.
• Legislative or Regulatory Reform: Potential adverse effects from changes in laws and regulations.
• Regulatory Risks: Delays or failure to obtain regulatory approvals.
• Litigation: Potential litigation related to intellectual property, trade secrets, and other matters.
• Conflicts of Interest: Potential conflicts of interest among directors and officers.
• Environmental Regulation: Compliance with environmental regulations and potential for stricter standards.
• Unknown Environmental Risks: Potential for encountering hazardous conditions at operating locations.
• Security Risks: Risk of theft and security breaches.
• Electronic Communication Security Risks: Vulnerability of electronic communications to security breaches.
• Operational Risks: Risks associated with labor disputes, accidents, fires, blockades, and natural phenomena.
• Insurance and Uninsured Risks: Potential liabilities not covered by insurance.
• Limited operating history: Limited operating history to base evaluation of business performance and prospects.
• History of Losses: Incurring losses in early stages of growth.
• Glow operates in new and evolving markets: Challenges and uncertainties in rapidly evolving markets.
• Substantial Capital Requirements: Need for substantial capital expenditures and potential difficulty in raising capital.
• Management of Growth: Strain on management systems and resources due to significant growth.
• Growth and Consolidation in the Industry: Risks associated with acquisitions or consolidating transactions.
• Risks Associated with Acquisitions: Integration of new operations, unforeseen liabilities, and diversion of resources.
• Difficulty to Forecast: Uncertainty in sales forecasts due to early stage of company and industry.
• Competition: Competition from existing and emerging competitors.
• Impact of Illicit Supply of Cannabis: Competition from unlicensed and unregulated market participants.
• Intellectual Property: Difficulty in protecting intellectual property and trade secrets.
• Reliance on Management and Key Personnel: Risk of loss of key personnel.
• Reliance on Technical Knowledge of Partners: Dependence on technology transfer and cooperation with Swiss Pharmacan.
• Reliance on Manufacturing by Third Parties: Risks associated with third-party manufacturers.
• Fraudulent or Illegal Activity by Employees, Contractors and Consultants: Risk of fraudulent or illegal activity by employees and third parties.
• U.S. Travel Bans: Risk of travel bans for employees and investors due to involvement in the cannabis sector.
• Timeframes for Obtaining Processing Licenses under the Cannabis Act in Canada: Significant timeframes and costs for obtaining licenses.
• Product Viability: Risk of products not having intended effects or causing adverse reactions.
• Product Liability: Risk of product liability claims and litigation.
• Product Recalls: Risk of product recalls and associated costs.
• Constraints on Marketing Products: Restrictions on sales and marketing activities.
• Effectiveness and Efficiency of Advertising and Promotional Expenditures: Uncertainty regarding effectiveness and efficiency of advertising and promotional expenditures.
• Unfavourable Publicity or Consumer Perception: Dependence on consumer perception and risk of unfavorable publicity.
• Success of Quality Control Systems: Importance of effective quality control systems.
• Positive Test for THC or Banned Substances: Risk of positive tests for THC in products.
• Results of Future Clinical Research: Uncertainty regarding results of future clinical research.
• Website Accessibility: Risk of legal action in jurisdictions where activities are illegal.

Mitigation Strategies

• Careful management and planning of operations and hiring qualified personnel.
• Maintaining insurance to mitigate certain risks.
• Implementing initiatives to establish and grow the business.
• Pursuing select strategic acquisitions.
• Strengthening the balance sheet.
• Continued R&D activities.
• Expanding market penetration of Cannabis brands across Canada.
• Maintaining lean & efficient operational cost structure.
• Entering into confidentiality or nondisclosure agreements.
• Implementing quality control systems.
• Reducing credit risk by investing cash equivalents with Canadian chartered banks.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: IFRS

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed