AYURCANN REPORTS RECORD SALES IN Q1 2024 FEATURING A 249% INCREASE IN GROSS REVENUE - Seite 2

Ayurcann is pleased to announce its entry into the infused pre-roll category. Market studies have found that pre-rolls are the fastest-growing product segment in the industry, growing 12% year-over-year (“YoY”) in the United States and 38% YoY in Canada.¹

More specifically, in 2023 infused pre-rolls have become the largest pre-roll segment with the data suggesting the average cannabis consumer is looking for fast-acting and high-potency products, with the top three product segments being mixed strain pre-rolls, disposable vape pens, and infused pre-roll.²

Pre-rolls are quickly becoming the favorite consumer product as the United States saw 22% YoY growth in infused pre-rolls, with Canada seeing an astounding 1,426% YoY growth.³

Ayurcann plans to introduce 4 infused pre-rolls SKUs in the second fiscal quarter and an additional 4 infused pre-roll SKUs in the third fiscal quarter.

Build a team and brands focused on delivering results

With the tightness of the labour market, we are very pleased with the almost incredible retention of our team, both internal and external. We believe that people make a company and in order to deliver the best product to market, our team is engaged and proud to work for and represent Ayurcann in the industry. We have been setting clear goals and objectives that are directly linked to the success of the Company and are rewarding and recognizing the hard work and accomplishments of our team.

The Fuego brand is continuing to hold its number one share position in Ontario in the 2x1G pre-rolls segment, with an approximate 40% market share⁴.

As a company Ayurcann’s branded vape products under the Fuego and Xplor band, are ranked as top 5 offerings across the country with XPLOR consistently in the top 3 in Ontario⁵ - High potency and quality is what we have become known for and with new innovation and offerings we intend to sustain and grow our market share across the country.

Ayurcann has launched several new offerings to bolster the Fuego portfolio in the first 6 months of the year, and we are excited about the growth and reception we have been experiencing in the market. Winning in the categories we choose to compete in is a top priority, and we will continue to enhance our product development capabilities to differentiate our products and to win with retailers and consumers.