#110 NAME T 16 NOVA Cannabis Disrupting Investor Presentation (TSX: NOVC) cannabis retail Build x Acquire x Customer Loyalty = Market Share growth NOVA CANNABIS INC.#2NOVA CANNABIS INC. 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: the number, type, and location of retail cannabis stores to be constructed and acquired by Nova; the timing of the expected "Value Buds" banner roll out in Ontario and Alberta; Nova's market disruption and market share capture strategy; gross margins (GM%) for the "Nova" and "Value Buds" banners; 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; the line of credit and lease guarantees to be provided to Nova by Alcanna; the management services to be provided by Alcanna to Nova and the rates it will charge for those services; combined wholesale and retail margins; Nova's acquisition strategy and its ability to make acquisitions in the future; creation of a private label wholesale program; and the treatment under governmental regulatory regimes. In addition, the use of any of the words "guidance", "initial, "scheduled", "can", "will", "prior to", "estimate", "anticipate", "believe", "expect", "foresee", "forecast", "anticipate", "intend", "estimate", "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: the "Value Buds" banner roll out and conversion costs; the relevant successes and transferability of Alcanna's three-month beta testing of such value retail stores; the size of the cannabis retail market and estimated portion currently unserved; migration of customers from the illicit market to legal market; the ability of Nova to replicate Alcanna's successful transition to a discount liquor retail model; the cost and development of a private label wholesale retail program; costs and timelines of building new retail locations and the number, timeliness of and potential for increased cannabis license roll- out in Ontario; 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; 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; lease guarantees to be provided to Nova by Alcanna; strength of Alcanna's relationships with landlords; 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 "$") and in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board. 2#3Canadian Cannabis Landscape $3.9B Legal Cannabis Market in 20211 50% growth in 2021 and ~20% growth projected in 20222 High levels of unsold cannabis inventory has put pressure on licensed producers (LP's) A Projected $9.8B Market by 20272 Conversion of the illicit market (~50% of the market today) 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 Statistics Canada 1) 2) ATB Capital Markets (2022) Retailers are Ideally Positioned to Capture the Market Growth NOVA CANNABIS INC. 3#4Canadian Retailers have missed the mark High-end The wrong demographic Small Business Challenging economics NOVA CANNABIS INC. 70% of cannabis consumption not being served = $6B+ opportunity 4#5NOVA CANNABIS INC. #1 Reasons to transition to legal channels Cannabis purchasing factors The real cannabis market: high volume & value focused Asymmetric Impact of value-focused consumer 21% of consumers 70%+ consumption volume PRICE is consistently cited as a top factor for purchase decisions New users Current users Deloitte #1 #1 Considerations for purchase decisions #2 SA SA 18 SA EA SA 1$ $$ $$ $$ $$ $$ $$ Government of Canada Canadian Cannabis Survey 2020 55 56 75 OCS Ontario Cannabis Stores (Q4 2020) New customers Returning customers 68% 74% Attribute most important to customers Customer base for Value Buds - underserved by most retailers 55 25 24 24 25 5#6NOVA advantage 1. Only Canadian cannabis retailer focused on the value conscious consumer base, a segment representing ~70% of total volume 2. Strategic shareholder in SNDL Inc. (Nasdaq: SNDL): Leading regulated products platform with expertise in cannabis cultivation, 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 3. Strong balance sheet with access to capital required to execute on aggressive and disciplined growth plans UNWAY LEASE GET IORE Value Buds BUD ON A BUD ET DEEPER DI NOVA CANNABIS INC. OPE Val PAY LESS Leafly.co 品 6#7NOVA CANNABIS INC. Nova's growth strategy Disrupt Focus Lever Grow share with rapid expansion of low-margin Value Buds banner Service the needs and wants of the high volume, value-conscious consumer 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 Private Label Fuel growth with acquisitions in locations that support Value Buds strategy Develop higher gross margin private label offerings, build brand loyalty Maintain low-cost operating model balancing growth with profitability 7#81 Based on management estimates using industry available data Organic Store development plans 85 stores operating as at November 7, 2022, an increase of five stores since June 30, 2022, and 11 stores since the beginning of 2022 Q3 2022 Progress: Executing on growth strategy Conversion to Value Buds banner Conversion of legacy stores to Value Buds substantially complete Market Share Gains: Q3 2022 market share was 21.5% in Alberta and 2.9% in Ontario, an increase from 18.9% and 2.1% in Q3 2021, respectively1 19 $58.9 M Q3 2022 Sales $6.4 M Cash at as at Q3 2022 53 7 60 11 5 85 9 80 71 MT] 34 Nova Cannabis Stores (Jan 2021) YSS Stores Total Stores* as at Q1 2021 Net new stores... Total Stores* as at Aug 12, 2021 Net new stores... Total Stores* as at Nov 10, 2021 Net new stores... Total Stores* as at Jun 30, 202 Total Nova, YSS and Value Buds stores 8 Net new stores... Total Stores* as at Nov 7, 2022 NOVA CANNABIS INC.#9Growth & Operating Leverage Conversion to Value Buds and new store additions drove 52% revenue growth from Q3 2021 to Q3 2022 Gross margin improved from 16.9% in Q3 2021 to 18.8% in Q3 2022 • Positive Operating Profit before depreciation, reimbursements and other costs of $2.3 million 18.4 29.7 38.7 58.9 56.3 49.8 47.6 10.6 11.1 9.4 8.4 6.5 4.8 5.2 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Sales Gross Margin ($million) NOVA CANNABIS INC. +52% Q3 2022 vs Q3 2021 9#10Gross Margin NOVA CANNABIS INC. Value Buds model: cannabis retail to mirror liquor success ~33% Many operators still not viable at these levels 14-17% Current Industry Margins Win share and build loyalty HH Execute disciplined acquisitions Phase 1: Win market share 23%+ Margin improvement from private label, merchandising Time Phase 2: Margin Expansion 10#11NOVA CANNABIS INC. Rapid Market Share Gains with Improving Margin Profile NOVA CANNABIS Value Buds $58.9 $56.3 $49.8 $47.6 $38.7 Competitor A Competitor B $45.4 $95.4 $42.7 $40.9 $40.7 $40.7 $81.0 $72.2 $53.9 $48.1 18.8% 18.9% 16.9% 34.7% 13.4% 13.7% 32.6% 31.8% 28.0% 27.0% Q3 Q4 Q1 Q2 Q3 2021 2021 2022 2022 2022 Sales ($M) -O-Gross Margin % Q3 Q4 Q1 Q2 Q3 F2021 F2021 F2022 F2022 F2022 Sales ($M) -O-Gross Margin % 34.6% 32.1% 29.7% 23.8% 23.8% Q3 Q4 Q1 Q2 Q3 F2021 F2021 F2022 F2022 F2023 Sales ($M) -O-Gross Margin % 11#12NOVA CANNABIS INC. Growth: Focus on Ontario Halton Durham York Toronto Peel Ontario Market is Wide Open >88% of cannabis sales in Ontario sold in brick & mortar stores Canada's largest province is underserved in cannabis retail Legal Cannabis represents minority of market share in Ontario¹ Ontario Locations Dozens of locations leased and under development Will pursue acquisition strategy from competitors unable to compete with Value Buds banner Focused on Value Conscious Consumer • Ontario locations will be Value Buds New locations focused outside the Toronto core Complimented by Kiosk stores (low capex/rent/opex) in urban centers to facilitate market disruption Hamilton 1) OSC: A year in review (2019-2020), calculations by OSC from StatsCan data Retail experience required to deliver this level of performance 12#13NOVA CANNABIS INC. Value and convenience Build brand recognition and reputation for delivering value Consistent in-store experience designed around balance of ease of navigation, high transaction volume and customer service Footprint across key markets with focus on convenient, highly visible locations DEEPER DISCOUNTS THAN A HIPSTER'S V-NECK ORDER HERE CANNABIS YOU CAN COUNT ON EXPRESS PICKUP Value Buds HOT BOX SAVE MORE ON SSORIES SAME BUD. LOWER PRICES 13#14Private Label & Value-Focused Product Offering Private Label Brand Strategy ⚫ Focus on higher gross margin private label • brands, augmented with national brands . Expected to launch November 2022 Every Day Low Price . • Focus on core assortment of products with proven customer appeal Good, better and best offerings in all categories THC Value Buds WARNING: The smoke from cannabis is harmful. Toxic and carcinogenic chemicals found in tobacco smoke such as polyaromatic hydrocarbons, aromatic amines, and N-heterocyclics are also found in cannabis smoke. MISE EN GARDE : La fumée de cannabis est nocive. Les produits chimiques toxiques et cancérigènes, comme les hydrocarbures aromatiques polycycliques, les amines aromatiques et les N-hétérocycliques, présents dans la fumée du tabac, sont également présents dans la fumée du cannabis (THC 2007 THC 21's NOVA CANNABIS INC. 14#15sndl A strategic shareholder 1. ~63% equity ownership 2. Unrivaled expertise: 3. 4. Alcanna subsidiary successfully executed value-focused growth model in liquor retailing with 171 stores Providing breadth of management services to ensure rapid growth and preservation of low-cost operating model Established relationships with national landlords leads to AAA real estate and provide lease guarantees where needed Increased maximum amount under the revolving credit facility from $10 million to $15 million NOVA CANNABIS INC. OACE LIQUORO DISCOUNTER OPEN 310 ENTER 25 years of retail expertise through SNDL's Alcanna ownership: Canada's largest portfolio of non-government owned liquor stores 15#16Strong track record of growth and execution Oct 2018 Dec 2019 Dec 2020 Alcanna (TSX: CLIQ), Canada's largest private liquor retailer, enters cannabis retailing with launch of subsidiary, Nova Cannabis Portfolio grows to 22 stores Feb 2021 Q2 2021 Q4 2021 Q2 2022 Grows to total of 34 stores - Nova and Deep Discount Cannabis Completes over subscribed private placement for gross proceeds of $40 million Converted 18 stores to the Value Buds banner Acquired 6 stores in Ontario Launched analytics platform 71 stores opened as at Nov 10 All but 3 Nova branded stores remain to be converted to Value Buds 80 stores opened as at Jun 30 Reached positive operating profit before depreciation NOVA CANNABIS INC. Apr 2019 Opens first store in Ontario H2 2020 Launches Deep Discount Cannabis in Alberta; sees immediate consumer appeal and > 250% increase in sales Jan 2021 Alcanna announces spin out of Nova Cannabis by way of RTO with YSS, AB based retailer with 19 cannabis stores Outlines strategy to grow in the under-served value segment of the market and launch of the Value Buds banner Q1 2021 Closes RTO transaction with YSS on March 22, 2021 and begins trading on TSXV under NOVC Total of 53 stores operating in AB and ON at time of closing with dozens in process, mostly in ON Q3 2021 Mar 2022 Graduation to the TSX 60 stores opened as at Aug 12 SNDL completes acquisition of Alcanna, becoming majority shareholder Sale of Ontario retail operations to Spirit Leaf Ontario with a brand licensing and services arrangement to comply with AGCO regulatory restrictions on SNDL's ownership stake Nov 2022 85 stores opened as at Nov 7 Launched Private Label Brand 16#17Leadership with extensive experience in controlled substance retail CEO Management Team Marcie Kiziak Cameron Sebastian CFO • Previously served as Chief Operating Officer of Nova Cannabis Joined Alcanna in 2018 as the Senior Vice President, Human Resources and later became President of Alcanna's cannabis division Previously Vice President of Human Resources and Safety for Corrosion and Abrasion Solutions Ltd. from 2013 until 2017 which included a secondment into Operations to lead a business transformation Has held the role of Vice President, Finance of SNDL since 2019, and prior thereto worked in senior executive positions with public energy companies for more than 25 years Prior to joining SNDL, Mr. Sebastian served as Chief Financial Officer of Perpetual Energy Inc. and its predecessor companies Mr. Sebastian holds a Chartered Professional Accountants of Canada designation and is a graduate of the University of Calgary regulated cannabis Board of Directors Zach George Chair Anne Fitzgerald Marcie Kiziak Christopher Pelyk Jeffery Dean Ron Hozjan Shari Mogk-Edwards CEO of SNDL Inc., co-founded the alternative investment platform FrontFour Capital Group LLC Oversees all legal, corporate affairs and insurance matters relating to Cineplex and its subsidiaries; she also serves as Corporate Secretary CEO of Nova Cannabis Inc. 20+ years in retail store expansion, operations, and development, previously Senior Director of Store Development in Asia at lululemon Managing Partner at Maven Capital, an advisory and private equity firm based in Toronto, previously at RBC Capital Market's Real Estate group CFO/VP Finance Aureus Energy, Director of YSS, Director of Aloha Brands, Director Aither Ingredient Corp. 40 years of experience in the beverage alcohol industry previously as Vice-President, Products, Sales, and Merchandising at the LCBO, consumer DOOO retail real estate NOVA CANNABIS INC. 17