Trulieve Cannabis : 2023 Letter to Shareholders

Trulieve 2023

Shareholder Letter

Kim Rivers

Co-Founder, Chairman & CEO

To our shareholders,

There has never been a more exciting time to be part of Trulieve. Every day, more people are learning about the benefits of cannabis and the different ways it can enhance our lives. Increased adoption of tested, regulated cannabis products is supported by shifting attitudes and mainstream acceptance of legal cannabis. Our industry has meaningful opportunities to expand in the months and years ahead, and Trulieve is leading the way.

With the largest cannabis retail network in the world at 196 stores and growing supported by more than 4 million square feet of cultivation and processing capacity, Trulieve is in a league of its own. Our ability to produce high-quality branded products at scale, distributed via world-class branded retail customer experiences sets us apart. Optionality throughout our business in combination with data analytics, allows us to adjust production mix and shelf assortment in response to evolving customer preferences.

The performance at our state-of-the-art 750,000- square-foot indoor cultivation facility in Jefferson County, Florida has been fantastic. Consistent production of high quality indoor flower with an average THC potency of 28% and 3% terpenes at this facility clearly demonstrates our ability to use industry know-how and innovation to cultivate at scale.

Throughout 2023, we streamlined operations across the organization while expanding access to cannabis for our patients and customers. We added 17 new locations in Arizona, Florida, Georgia, Ohio, Pennsylvania, and West Virginia. We entered new markets, opening the first medical dispensaries in Georgia and our first dispensary in Ohio, and expanded in Connecticut in Maryland to include adult use sales.

Our Maryland team was ready to assist customers during the successful launch of adult-use cannabis sales in July.

Last year, we sold approximately 45 million branded product units through our branded retail network. Trulieve's in-house brands continued to perform well, led by Modern Flower and Roll One.

Our Jefferson County, FL cultivation facility, one of the largest and most sophisticated in the world, produces consistent high-quality flower at industry-leading scale.

In-house brands such as Modern Flower continue to gain traction across our markets.

The team is the key ingredient in our recipe for success, with over 5,400 employees working together every day to enhance lives through cannabis. The resilience, dedication, and passion of our team members is evident in every aspect of our business.

Our ability to execute on our plan last year meaningfully strengthened our competitive position, and we are poised and ready for the coming wave of growth catalysts.

In our home state of Florida, voters will decide this November whether to approve adult use cannabis. Trulieve is uniquely prepared to serve a potential Florida market of 22 million residents and 138 million annual tourist visits, in addition to the state's already robust medical market, thanks to our leading retail network and our ability to bring more capacity online. With the addition of adult-use, we estimate Florida could be the largest legal cannabis market in the world, reaching up to $6 billion in annual sales.

The Smart & Safe Florida campaign is the sponsor of the adult use ballot initiative to be decided in November.

In other markets, we have opportunities to expand our presence while reinforcing our brand equity and value proposition. In Ohio, we are preparing for the launch of adult use sales which could commence as soon as this summer. In Arizona, we are completing the rebranding of all stores to the Trulieve brand. In Pennsylvania, we are opening our 21st dispensary this year. With continued growth anticipated in Georgia, Maryland, and West Virginia, we plan to further expand our loyal customer base and branded product distribution.

At the federal level, the Drug Enforcement Administration is expected to make a formal decision following the recommendation by the Department of Health and Human Services that cannabis be rescheduled to Schedule III from Schedule I. This could be the first important step that opens the door to research and additional federal reform.

While momentum is on our side, there is still much work to be done. Since inception, Trulieve has been at the forefront and we will continue to expand access to cannabis for medical patients and adult-use consumers. We remain focused on perfecting the customer experience and delivering high-quality branded products by leaning into our strengths of scale and service.

With pivotal state and federal catalysts ahead, we are on the precipice of what could be a historic tipping point for cannabis in the United States. Trulieve is stronger than ever and ready to define the future of cannabis. Together, we will continue to lead the way.

Like I always say,

Onward!

Kim Rivers

Kim Rivers

Co-Founder, Chairman, and Chief Executive Officer