Eve & Co Inc V.EVE.H

Eve

[stwatcher]

Letter from the CEO

Valued shareholders:
 

I would like to improve upon how we communicate with you, especially given your support and belief in Eve.  You have requested increased communication and transparency, and I would like to personally address this.  
 
To this end, I have put together information below, which we feel are some of the most important aspects within the industry and for Eve.  My goal is to ensure regular communication and be directly involved in addressing your inquiries, concerns and insights.

 
The Canadian Market

The oversupplied domestic market demands ongoing shifts and preparation, and we have ensured we are best positioned by the following:

• Given there are approximately 600 licensed producers in Canada and multiple brands, we set out to differentiate ourselves and ensure we focused on our strengths, expertise and unique position of being female-focused.  We are the premier, dedicated female brand in Canada and have been highlighted by media domestically and internationally.
• Our first 2.0 products have done well in our current outlets and allowed us to open new provincial markets, resulting in a dramatic increase in provincial sales.  Our bath bombs were purposely crafted with premium ingredients, with the highest potency and was first to market.  Our unique product line has been featured in numerous news articles and shared across social media platforms.
• Not only have we proven to be one of the most efficiently built cannabis facilities, we continue to be efficiently operated.  We have been able to grow our facility to be one of the largest in Canada, achieve EU-GMP certification and have done so at a fraction of the cost and time.  We continue to run efficiently with lower monthly burn rates than those of comparable footprints.  

 
Foreign Markets

• Eve’s facility was purpose-built for EU-GMP compliance while simultaneously developing relationships with foreign buyers.
• We have press released five supply agreements and continue to move forward with additional foreign buyers for whom we will successfully export product in Q1 2021.
• Due to the global pandemic, we do not expect many additional EU-GMP certifications to be issued in 2021, so we continue to move quickly to gain this advantage and establish supply agreements.  As well, we have been informed that our own EU-GMP certification will be extended until the end of 2021.
• Ivan Ross Vrana, VP of Foreign Affairs and Business Development at Eve, is recognized as one of the foremost experts in regulatory requirements and was instrumental in assisting Eve through the EU-GMP certification process.  He continues to work with the team at Eve to ensure national and international compliance.  As part of his mandate, he regularly engages with Health Canada in efforts to improve regulatory hurdles such as reducing approval times for issuing export permits.

 
Public Markets
 
We feel that Eve continues to be one of the most undervalued cannabis stocks on the market today. 

• We are one of the world’s largest cannabis facilities with a million square feet, and the facility itself is worth a multiple of Eve’s market capitalization.
• Of the 600 licensed holders in Canada, only nine, including Eve’s Natural MedCo, have been able to achieve EU-GMP certification which allows the sale outside of Canada’s oversupplied market and into the growing markets of the EU.  Other countries outside of the EU, such as Israel with an even larger market, have also recognized the significance of requiring EU-GMP certification.

As the largest shareholder of the company, I stand behind Eve and belief in the potential of Eve’s future.  Due to the volatile Canadian market where many license holders are struggling with ongoing viability, I can confirm that we are continually investing our dedication and efforts into growing Eve, as our belief in Eve’s possibilities is unwavering.  

The focus of our communication with shareholders will be ensuring accurate and up to date information about Eve, its prospects, achievements and developments.  I will personally monitor inquiries from [e-mail] and ensure questions, concerns and observations are addressed whenever possible in regular updates.

 
Thanks again to all of our shareholders, and we look forward to growing with you.

Melinda