Ms. Kim Rivers reports

TRULIEVE REPORTS SECOND QUARTER 2023 RESULTS HIGHLIGHTING PROGRESS ON 2023 PLAN

Trulieve Cannabis Corp. has released its results for the quarter ended June 30, 2023. Results are reported in United States dollars and in accordance with U.S. generally accepted accounting principles (GAAP) unless otherwise indicated. Numbers may not sum perfectly due to rounding.

Q2 2023 financial and operational highlights:

• Revenue of $282-million, with 96 per cent of revenue from retail sales. Excluding deferred revenue, retail revenue increased by $3-million sequentially, driven by increased traffic and volume, partly offset by price compression.
• Achieved GAAP gross margin of 50 per cent, with gross profit of $142-million. Reclassification of idle capacity expense to COGS (cost of goods sold) resulted in $2-million of tax savings.
• SG&A (selling, general and administrative) expenses lowered by $4-million sequentially to $96-million.
• Reported net loss of $404-million. Adjusted net loss of $15-million excludes non-recurring charges, asset and goodwill impairments, disposals, and discontinued operations. Goodwill impairment was triggered by the recent stock price performance and is not connected to management's forecasts.
• Achieved adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $79-million, or 28 per cent of revenue.
• Generated cash flow from operations, excluding tax payments, of $98-million year-to-date.
• Inventory reduction initiatives drive $24-million in cash generation year-to-date.
• Cash at quarter-end of $160-million.
• Realized record traffic, customers served and units sold on April 20 (4/20), holiday, up 10 per cent, 11 per cent and 9 per cent, respectively, year-over-year.
• Sold 11.6 million units of branded product through branded retail, up 9 per cent sequentially.
• Opened five new dispensaries in Macon, Marietta and Newnan, Ga., Apache Junction, Ariz., and Limerick, Pa.
• Relocated one dispensary in Phoenix, Ariz., and one dispensary in Fort Myers, Fla.
• Exited California retail assets and commenced wind-down of operations in Massachusetts, as part of cash preservation and generation plan to bolster business resilience.
• Ended the quarter with 32 per cent of retail locations outside of the state of Florida.

Recent developments:

• Realized 200-per-cent increase in Maryland traffic in July compared with June following the launch of adult-use sales at the company's three dispensaries.
• Opened first medical marijuana dispensary in Columbus, Ohio.
• Added retail locations in Sanford, Fla., and Pooler, Ga., and relocated one dispensary in Kissimmee, Fla.
• Currently operate 186 retail dispensaries, and over four million square feet of cultivation and processing capacity in the United States.

Management commentary

"Demand for legal cannabis remains strong and Trulieve sells the highest volume of branded product through branded retail in the U.S.," said Kim Rivers, Trulieve chief executive officer. "Our focused strategy, scaled operations and leading retail position provide distinct competitive advantages."

Ms. Rivers continued, "We are on track to exit this year as a leaner, stronger organization, ready to meet the opportunities ahead."

Conference call

The company will host a conference call and live audio webcast on Aug. 9, 2023, at 8:30 a.m. ET, to discuss its second quarter 2023 financial results. Interested parties can join the conference call by dialling in as directed below. Please dial in 15 minutes prior to the call.

North American toll-free:  1-888-317-6003

International:  1-412-317-6061

Passcode:  7518560

A live audio webcast of the conference call will be available on-line.

A Powerpoint presentation and archived replay of the webcast will be available at the company's website.

The company's Form 10-Q for the quarter ended June 30, 2023, will be available on the United States Securities and Exchange Commission's website or at the company's website. The company's management discussion and analysis for the period, and the accompanying financial statements and notes, will be available under the company's profile on SEDAR+ and on its website. This news release is not in any way a substitute for reading those financial statements, including the notes to the financial statements.

About Trulieve Cannabis Corp.

Trulieve is an industry-leading, vertically integrated cannabis company and multistate operator in the United States, with leading market positions in Arizona, Florida and Pennsylvania. Trulieve is poised for accelerated growth and expansion, building scale in retail and distribution in new and existing markets through its hub strategy. By providing innovative, high-quality products across its brand portfolio, Trulieve delivers optimal customer experiences and increases access to cannabis, helping patients and customers to live without limits.

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