Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainability

Environmental Achievements

• Hamilton Facility operates fully "off the grid" using clean burning natural gas CHP units and collected rainwater for irrigation.
• 90% of water is returned to the irrigation pond via condensate recovery systems at the Hamilton facility.
• Employing practices such as grinding plant waste for faster decomposition, using a controlled drip water system, using living soil, and recycling materials.

Social Achievements

• Appointment of Wendy Kaufman and Sherry Tross to the Board.
• EU-GMP certification for the Hamilton Facility, enabling exports to global markets.
• Strategic distribution agreement with 4C LABS Ltd. in the UK.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• High excise tax regime in Canada (approximately 33% effective rate due to low wholesale prices).
• Price compression in the Canadian cannabis market.
• Intense competition in the Canadian cannabis market.
• Risk of not achieving positive operating cash flow.

Mitigation Strategies

• Streamlining operations and implementing cost containment initiatives.
• Transitioning towards automation.
• Improving balance sheet.
• Rightsizing cultivation and manufacturing footprint.
• Maximizing utilization at core facilities.
• Improving yields per plant.
• Transitioning activities between facilities to maximize efficiencies.
• Procurement synergies.
• Supply chain optimization.
• SG&A cost containment initiatives.
• Reduction of consolidated headcount.
• Renegotiating service level agreements with vendors.

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: Null

Certifications: EU GMP (Hamilton Facility)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Sustainability

Environmental Achievements

• Hamilton Facility operates fully "off the grid" using clean burning natural gas CHP units and collected rainwater for irrigation.
• 90% water return to pond from condensate recovery systems in Hamilton greenhouse.
• Employing practices such as grinding plant waste for faster decomposition, using a controlled drip water system, using living soil, and recycling.

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• High excise tax regime (approximately 33% effective rate) impacting profitability in a competitive market.
• Price compression in the cannabis market, leading to lower wholesale prices.

Mitigation Strategies

• Streamlining operations, implementing cost containment initiatives, transitioning towards automation, and improving the balance sheet.
• Focusing on efficient, high-volume, high-margin SKUs and adding innovation to trending categories.
• Monetizing redundant assets (Edmonton Facility).

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: Null

Certifications: EU GMP (Hamilton Facility)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Organic cannabis (TGOD and Highly Dutch Organic brands)

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Sustainability

Environmental Achievements

• Hamilton Facility operates fully “off the grid” generating its own power from clean burning natural gas CHP units. All irrigation comes from collected rainwater. Condensate recovery systems return 90% of water back to the pond. Soil microbes are reused year after year.
• Three acres of the Hamilton Facility are cultivated for organic produce, with by-products composted and produce donated to local food banks.

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions
• Inflationary pressures on costs
• Sales price compression
• Negative operating cash flow
• Meeting the rapidly evolving standards regarding the sustainable and effective sourcing of the necessary materials to cultivate and produce its products and dispose of waste accordingly.

Mitigation Strategies

• Streamlining of operations
• Implementing cost containment initiatives
• Transition towards automation
• Improving balance sheet
• Rightsizing the cultivation and manufacturing footprint
• Cultivation improvements with higher Yield Per Plant
• Procurement synergies
• Supply chain optimization
• SG&A cost containment initiatives
• Departmental changes and streamlining core functions
• Reduction of headcount
• Renegotiating service level agreements with vendors
• Monetize redundant and available for sale assets
• Reduction of headcount and rightsizing future operating and administrative needs
• Minimizing the Company’s reliance on third party service providers and professional fees

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: Null

Certifications: EU GMP (Hamilton Facility)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed