Mr. Harshil Chovatiya reports

1CM INC. PROVIDES CORPORATE UPDATE

1CM Inc. has provided the following corporate update with respect to its development and operations.

1CM currently operates 29 cannabis stores, with an additional four cannabis stores in development. The company also operates three liquor stores with an additional nine liquor stores in development. This brings 1CM's store count to 32 retail stores with an additional 13 stores under development, selling consumer staple vice products across five provinces.

Cannabis retail

The company's cannabis retail division operates the brands T Cannabis and Cost Cannabis in the locations shown in the attached table.

Liquor retail

The company's alcohol retail division operates the brand Costcan Liquor, which offers a wide variety of products, including cannabis, liquor, tobacco, nicotine and other consumer packaged goods (CPGs). Staple products which 1CM retails beyond cannabis, include for example Parmalat Milk, Pepsi, Frito Lay, Imperial Tobacco, Canada Bread, Corby Spirits and Wine, Molson Coors, and others. 1CM currently operates 32 retail stores and plans to reach the milestone of 50 retail stores in the current financial year. 1CM has begun selling its Epic Milff (a tribute to its ticker symbols on the CSE and OTCQB) branded alcoholic beverages and will continue to expand its offerings under the Epic Milff brand.

The company has liquor stores and retail liquor permits in development for the locations shown in the attached table.

Cannabis and liquor wholesale (business to business)

1CM has successfully opened four distribution centres that sell cannabis and/or liquor products to other regulated licence holders. 1CM is currently developing additional B2B distribution centres to achieve its market penetration goals.

Since opening in January, 2023, the B2B cannabis division has managed to achieve a wholesale penetration rate of 18.6 per cent as it supplies 33 of the 176 licensed cannabis retail stores in Saskatchewan.

B2B alcohol wholesale sales to on-site permitholders, including hotels and restaurants, have also been growing rapidly and should contribute to revenue growth in the future.

1CM has been successfully able to grow its B2B revenue in cannabis, alongside alcohol revenues, and is working to drive additional revenue growth by increasing its B2B market share.

Technology (One Cannabis Market or OCM)

1CM realizes the value of technology in improving the customer service experience and democratizing vice markets. With OCM, the company's technology stack has always prioritized the customer experience. To that effect, the company has developed the 1CM loyalty app, now live on the Apple App Store and the Google Play store. This technology provides customers with decentralized loyalty tokens and utilizes NFT-based (non-fungible token) coupons within the company's age-gated member community, providing marketing channels to otherwise inaccessible or underserved consumers like tobacco/nicotine consumers. OCM has also developed a B2B e-commerce portal for its wholesale customers to browse, add to cart, manage their available credit, make payments and check out. As soon as orders are placed, customers are sent an ASN (advanced shipping notice), which includes the descriptions and embedded images of the products purchased. The ASN can be automatically uploaded to the POS (point-of-sale) system, all of which significantly reduces the effort spent ordering and improves the service experience.

About 1CM Inc.

1CM is a retailer of vice consumer staples in Canada, including cannabis, alcohol, tobacco, nicotine and CPG (consumer packaged goods). The company's vision is to be Canada's leading vice consumer staples retailer and wholesaler. The company is focused on expanding its current operations through organic growth and by way of merger and acquisition transactions.

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