Mr. Kim Rivers reports

TRULIEVE REPORTS THIRD QUARTER 2023 RESULTS DELIVERING SIGNIFICANT CASH GENERATION

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

Q3 2023 financial and operational highlights:

• Revenue of $275-million, with 96 per cent of revenue from retail sales;
• Achieved GAAP gross margin of 52 per cent, with gross profit of $143-million;
• Selling, general and administrative expenses lowered by $2-million sequentially to $94-million;
• Reported net loss of $25-million. Adjusted net loss of $15-million excludes non-recurring charges, disposals and discontinued operations;
• Achieved EBITDA (earnings before interest, taxes, depreciation and amortization) of $74-million, or 27 per cent of revenue, and adjusted EBITDA of $78-million, or 28 per cent of revenue;
• Purchased $57-million face value senior secured 2026 notes for $47.6-million in September, which represents a 16.5-per-cent discount to par, plus accrued interest;
• Cash as of Sept. 30, 2023, of approximately $200-million;
• Generated cash flow from operations of $93-million and free cash flow of $87-million in the third quarter. Anticipate 2023 cash flow from operations of at least $100-million and free cash flow generation of at least $70-million;
• Realized 235-per-cent increase in Maryland traffic in Q3 compared with Q2 following the launch of adult-use sales at Trulieve's three dispensaries;
• Opened five new dispensaries in Pace and Sanford, Fla., Evans and Pooler, Ga., and Columbus, Ohio, and relocated one dispensary in Kissimmee, Fla.;
• Ended the quarter with 32 per cent of retail locations outside of the state of Florida.

Recent developments:

• Announced redemption of $130-million of senior secured notes due June 18, 2024, with redemption date of Dec. 1, 2023;
• Filed amended federal tax returns for 2019, 2020 and 2021 claiming a $143-million refund from taxes paid;
• On Nov, 8, 2023, the Florida Supreme Court heard oral arguments regarding the Smart and Safe Florida ballot initiative for adult use. The court is expected to rule prior to April, 2024;
• Launched distribution through independent pharmacies in Georgia;
• Added retail locations in Apollo Beach and Marianna, Fla., and relocated one dispensary in Melbourne, Fla.;
• Currently operate 190 retail dispensaries and over four million square feet of cultivation and processing capacity in the United States.

Management commentary

"This year our team has done a phenomenal job executing on our plan to generate cash while making investments to support future growth," said Kim Rivers, Trulieve chief executive officer. "As demonstrated this quarter, Trulieve remains aligned with our shareholders, and is committed to strengthening our balance sheet with non-dilutive measures. With significant scale and service, strong cash generation, and a clearly defined strategy, Trulieve is best positioned for the coming wave of meaningful growth catalysts."

Conference call

The company will host a conference call and live audio webcast on Nov. 9, 2023, at 8:30 a.m. Eastern Time, to discuss its third 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

Passcode: 8045472

International: 1-412-317-6061

Passcode: 8045472

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 on Trulieve's website.

The company's Form 10-Q for the quarter ended Sept. 30, 2023, will be available on the Securities and Exchange Commission's website or on Trulieve'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 U.S., 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. Trulieve is listed on the Canadian Securities Exchange under the symbol TRUL and trades on the OTCQX market under the symbol TCNNF.

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