1Q21 Investor Update slide image

1Q21 Investor Update

FEDERAL LEGALIZATION OF CANNABIS INCREASINGLY LIKELY Federal Advancements House passed SAFE Act for a second time, removing limitations on cannabis banking activities ■ ■ ■ Senate Majority Leader Chuck Schumer is pushing the Senate toward lifting the federal prohibition on marijuana with legislation that would represent the biggest overhaul of federal drug policy in decades Bipartisan State Attorneys General urged congress to pass marijuana banking bill, protecting banks that service state-legal marijuana markets from being penalized by federal regulators The Cannabis Freedom Alliance (CFA) was launched to end the prohibition of cannabis while reducing overregulation, including unreasonable tax rates, and to promote innovation and entrepreneurship in the space. Source: Cowen Cigarette & Cannabis Circular, April 10, 2021 22nd Century Group, Inc. State Advancements New York: Governor Andrew Cuomo signed bill legalizing adult use cannabis and expunging all convictions for cannabis related charges that would become legal under the bill New Mexico: Legislation to allow adult use cannabis sales, which would become effective on April 1, 2022, was passed in a special session Illinois: Department of Financial and Professional Regulation reported adult use monthly sales for March of $109M, ~20% sequential growth (adjusted for selling days) Montana: House Bill 701, which aims to legalize adult use cannabis, will be reintroduced by Governor Greg Gianforte (R) after failing to achieve necessary votes earlier this year. LEGALIZATION WILL LIKELY INCREASE COMPETITION AND INCREASE THE NEED FOR HIGHLY DIFFERENTIATED PRODUCTS GROWN AT COMMERCIAL SCALE - EXACTLY WHERE 22ND CENTURY IS UNIQUELY FOCUSED. 10
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