Nova Cannabis : Investor Presentation May 2024

	Cannabis	Disrupting
	Investor Presentation	cannabis
	(TSX: NOVC)	retail

Competitive Pricing x Effective Real Estate x Customer Loyalty = Market Share growth

Disclaimers

This presentation, and any supplements and amendments to this presentation, has been prepared by Nova Cannabis Inc. ("Nova" or the "Company"). When used herein, references to "Nova", "we", "our" or the "Company" refer to Nova Cannabis Inc. and each of our subsidiaries as the context requires. No securities commissioner or similar regulatory authority in Canada has reviewed or in any way passed upon this presentation or the merits of the securities described herein and any representation to the contrary is an offence. The information contained in this presentation is subject to change without notice and is based on publicly available information, internally developed data and other sources. Where any opinion or belief is expressed in this presentation, it is based on the assumptions and limitations mentioned herein and is an expression of present opinion or belief only. No representations or warranties are being made as to the origin, validity, accuracy, completeness, currency or reliability of the information contained in this presentation. Nova expressly disclaims and excludes all liability (to the maximum extent permitted by law), for losses, claims, damages, demands, costs and expenses of any nature arising in any way out of or in connection with the information in this presentation, its accuracy, completeness or by reason of reliance by any person on any of it. This presentation contains references to certain market, industry and peer group data which is based upon information from independent industry publications, market research, analyst reports and surveys and other publicly available sources. Although Nova believes these sources to be generally reliable, such information is subject to interpretation and cannot be verified with complete certainty due to limits on the availability and reliability of raw data, the voluntary nature of the data gathering process and other inherent limitations and uncertainties. Nova has not independently verified any of the data from third party sources referred to in this presentation and accordingly, the accuracy and completeness of such data is not guaranteed. This presentation does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of securities of the Company in any jurisdiction in which an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. The securities of the Company described herein have not been and will not be registered under the United States federal or state securities laws and may not be offered or sold in the United States, or to, or for the account or benefit of, "U.S. Persons" as such term is defined in Regulation S under the United States Securities Act of 1933, as amended, unless an exemption from registration is available. This presentation should not be construed as legal, financial or tax advice to any individual, as each individual's circumstances are different. Investors should consult with their own professional advisors regarding their particular circumstances.

Forward-Looking Statements Advisory

This presentation contains forward-looking statements and forward-looking information (collectively, "forward-looking statements") that represent the expectations of management of Nova as of the date hereof, and are subject to change after such date. More particularly, this presentation contains forward-looking statements concerning, without limitation: our future financial position; capital and liquidity; business strategy; proposed acquisitions and dispositions; the execution and impact of the Company's growth-orientated business strategy; results of operations and financial condition; government regulation and laws; projected costs; plans and objectives of or involving Nova, including store openings and closings and the conversion of stores to the "Value Buds" banner; the number, type, and location of retail cannabis stores to be constructed and acquired by Nova; Nova's market disruption and market share capture strategy; anticipated or forecasted annualized sales, EBITDA , EBITDA margins, gross margins, and future increases of margins; future stabilization of the retail cannabis markets; enterprise value (EV) and EV multiples; Nova's ability to obtain retail cannabis licenses from governmental authorities; the continued ability of Nova's competitors to remain profitable and/or to operate for an extended period of time; the timing of consolidation in the retail cannabis industry; Nova's bargaining power to obtain competitive pricing for the products it sells; continued access to the line of credit provided to Nova by SNDL under the existing credit agreement; continued provision of the management services provided by SNDL to Nova under the existing management and administrative services agreement; combined wholesale and retail margins; and Nova's private label wholesale program. In addition, the use of any of the words "guidance", "initial, "scheduled", "can", "will", "prior to", "estimate", "anticipate", "believe", "expect", "foresee", "forecast", "intend", , "goal", "plan", "contemplate", "pursue", "continue", "aim", "target", "must", "commit", "propose", "predict", "project", "will", "may", "might", "future", "should", "could", "would" and similar expressions are intended to identify forward-looking statements.

The forward-looking statements contained in this presentation are based on certain key expectations and assumptions including, but not limited to, expectations and assumptions concerning the retail cannabis strategy of Nova, including: business decisions and strategies of SNDL Inc., our majority shareholder; the size of the cannabis retail market and estimated portion currently unserved; migration of customers from the illicit market to legal market; costs and timelines of building new retail locations; the number, type and geographic locations of new retail stores to be created; new potential target consumers and customer segments; Nova's ability to influence customer purchase decisions; Nova's size, sales volume and financial stability; potential management costs of a low-cost retailer; cost structure of competitors; availability of capital and strength of the Nova balance sheet; potential for rapid organic and inorganic growth; current legislation and amendments thereto; receipt of required regulatory and/or licensing approvals; the growth and acquisition strategy of Nova; general economic conditions; financial strength of competitors; gross margin of Nova; ; the ability to capture expected market share; margin expansion; and other assumptions identified herein. Although Nova believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because there is no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks associated with the cannabis industry in general and changes in legislation affecting the cannabis industry.

To the extent any guidance or forward-looking statements herein constitute a financial outlook or future-oriented financial information ("FOFI"), they are made as of the date hereof and included herein to provide prospective investors with an understanding of the plans and assumptions for budgeting purposes and prospective investors are cautioned that the information may not be appropriate for other purposes. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable by management at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on any FOFI. Nova's actual results, performance or achievement could differ materially from those expressed in, or implied by, these FOFI, or if any of them do so, what benefits Nova will derive therefrom. Nova disclaims any intention or obligation to update or revise any FOFI, whether as a result of new information, future events or otherwise, except as required by applicable securities laws.

The forward-looking statements contained in this presentation are made as of the date hereof and Nova does not undertake any obligation to update or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

The information contained in this presentation does not purport to be all inclusive or to contain all information that prospective investors may require. Prospective investors are encouraged to conduct their own analysis and reviews of Nova, Nova's assets, Nova's management and the other information contained in this presentation. Information in relation to the previous experience of Nova's management is not indicative of the future performance of Nova. Without limitation, prospective investors should consider the advice of their financial, legal, accounting, tax and other advisors and such other factors they consider in investigating and analyzing Nova, Nova's assets and Nova's management.

Basis of Presentation

All financial figures and information have been prepared and presented in Canadian dollars (which includes references to "dollars" and "$"). Certain specified financial measures used in this earnings release, including Adjusted EBITDA, are not recognized under International Financial Reporting Standards ("IFRS") and may not be comparable to similar measures reported by other companies. Non-IFRS financial measures should not be considered in isolation or as an alternative for measures of performance prepared in accordance with IFRS. Please see Appendix 1 to this presentation for the definitions and reconciliations of any non-IFRS financial measures used in this presentation.

2

Canadian Cannabis Landscape

$5B Legal Cannabis Market in 20231

• 12.2% growth from 20221

• 3.6% increase in sales in December 2023, compared to December 2022.1

• Steady growth as consumers shift from the illicit market

A Projected $7.3B Market by 20272

• Conversion of the illicit market (~33% of the market today)3

• Alberta market is mature and is consolidating while Ontario (38% of Canada's population) has many underserved regions that offer growth potential

Restrictive Regulatory Environment

• Regulations restrict LP marketing and brand development

• Opportunity for retailers who own customer relationships through the 4-walls of the store

1. Israel, S. (2024, February 22). Canadian recreational cannabis sales surpass CA$5 billion in 2023. MJBizDaily.Source.
2. BDSA forecast US$5.3 billion in 2027 (September 2023)
3. Pollara Survey - Legal Cannabis Five Years Later (Fall 2023)

Retailers are Ideally Positioned to Capture the Market Growth

3

Canadian Retailers have missed the mark

High-end

The wrong demographic

Small Business

Challenging economics

4

The real cannabis market: high volume & value focused

21% of consumers

70%+ consumption volume

PRICE is consistently cited as a top factor for purchase decisions

$ $	$ $	$	$	$$ $$	$$ $$ $$ $$
18	24	25		55	56	75

Customer base for Value Buds - underserved by most retailers

1Deloitte. (2021). 2021 Cannabis Pricing Report. Source.

2Government of Canada. (2023). Canadian Cannabis Survey 2023: Summary. Source.5

3Ontario Cannabis Store. (2022). A Quarterly Review: January 1 - March 31, 2022. Source.

advantage

1. Focused on the value conscious consumer base, a segment representing ~70% of total volume
2. Strategic shareholder in SNDL Inc. (Nasdaq: SNDL):
3. • Leading regulated products platform with expertise in cannabis cultivation, manufacturing and production, regulated retail (cannabis and liquor) and investments
   • Providing breadth of management services
     and greater access to capital to ensure rapid growth and preservation of the low-cost operating model
4. Strong balance sheet with access to capital required to execute on aggressive and disciplined growth plans

6

Nova's growth strategy

Disrupt		Focus
Grow market		Service the
share from legal		needs and
and illicit markets		wants of the
with strategic		high volume,
expansion and		value-conscious
growth of the		consumer.
"Value Buds"
discount banner.

Lever

SNDL's support

through their

long-history and

expertise in

regulated retail.

Build

New stores

in convenient locations that balance high transaction volumes and customer service levels.

Acquire

Fuel growth with

acquisitions in locations that support Value Buds strategy.

Private Label

Develop higher gross margin private label offerings, build brand loyalty.

Maintain low-cost operating model, balancing

growth with profitability.

7

Value Buds model: cannabis retail to mirror liquor success

Gross Margin

Current Industry Margins

~33%
		23%+	25%
		Q1 2024
Many operators
still not viable	Win share and
at these levels
build loyalty
	Margin improvement from private
	14-17%
	label, inventory management and
		data licensing expansion
	Execute disciplined acquisitions
Phase 1: Win market share	Phase 2: Margin Expansion

Time

8

Private Label & Value-Focused Product Offering

Private Label Brand Strategy

• Launched in Alberta in November 2022 and Ontario in February 2023
• Sourced from SNDL, focus on core assortment of products with proven customer appeal
• Margins are approximately 5% higher than comparable competitor products

Everyday Low Price

• Large-formatflower currently available in 14-gram and 28-gram formats in Alberta and Ontario. Value Buds Cookies and Kush 28-gram flower was the #2 SKU overall in December 2023
• New 1.2-gram vape SKU, 'Hello My Name is Strawberry' which became the best-selling1.2-gram vape cartridge in Value Buds stores in Q3 2023
• Expanded the product suite in May 2024 with a new blend 'Diesel and
  Berries, available in the 14- and 28-gram offerings, as well as 28 x 0.5- gram large format pre-rolls

9

Progress: Executing on growth strategy

Market Share Gains

• Steady market share in Alberta (19%) while Ontario market share continues to increase (4%)1

Growing Footprint

• 99 stores operating as at May 7, 2024, an increase of 3 stores since the beginning of 2024
• Assignment of Dutch Love stores from SNDL paves the way to open Value Buds locations in British Columbia
• Focus on growth in key markets of British Columbia and Ontario, and further expansion into the prairie provinces in 2024

Retail Locations by Province:

British Columbia, 3

Saskatchewan, 1

Ontario,

34

Proprietary Data Licensing Sales

• Q1 2024 revenue of $3.3M from proprietary data licensing program, a 120% increase from $1.5M in Q1 2023

Private Label Growth

• Expanded private label offerings to the Ontario market in February 2023
• Launched 'Hello My Name is Strawberry' in September 2023, a 1.2-gram vape cartridge
• Expanding private label offerings in Alberta in Q2 2024 with the launch of 'Diesel and
  Berries'. The new blend will launch in Ontario in early Q3 2024.

Alberta,

61

As at May 7, 2024

1Based on management estimates using industry available data.	10