Orange Cannabis Co

Dear Customers and Partnerships, We write with an update about our company’s retail dispensary in Orange, MA. Orange Cannabis Company closed its adult-use dispensary location at 5 S. Main Street in Orange, MA effective Monday, July 15. It will remain closed until further notice as we undertake a review of our current and future retail operations across Massachusetts. Orange Cannabis Company’s large cultivation facility in the Town of Orange, which is now fully operational, is not impacted by the retail location’s closure. We made the difficult decision to suspend operations at the retail dispensary at this time for several reasons— and as a valued customer we want to share those with you now. First, while this small dispensary has been marginally successful under our management since April 2022, it has become an increasing financial burden, especially on an "after-tax" basis. Revenues have declined in recent months and our rent has increased. Importantly, labor costs and other significant expenses at the dispensary cannot be deducted under federal law, which makes the already thin profit margin less manageable. We have made this decision in concert with the appropriate state and local authorities to ensure the orderly suspension of operations at the store, the secure transfer of goods and property within the space, and the fair and lawful notification and compensation of our dispensary staff, who have been extended full benefits in accordance with our existing agreements. The indoor cultivation facility that we operate in Orange, MA— which produces cannabis products for the wholesale market in Massachusetts— has been fully operational since February and is the central focus of our business moving forward. Orange Cannabis Co. is producing the finest cannabis flower in the Commonwealth. Our flower is now on sale in more than?100 dispensaries across the state— with more coming online every month. We are confident that the decision to close the store, while difficult and disappointing in the short-term, is in the best long-term interest of our company's position in the Massachusetts market and for our continued success as a significant investor and employer here in Orange and Central Massachusetts. We expect to spend the balance of 2024 reviewing trends in the marketplace and our own growth in the wholesale market to make a well-informed decision on a potential retail re-opening in 2025. We are reviewing a range of possibilities for the retail location on S. Main Street, including a potential re-branding and re-opening in the future. Finally, we are very grateful to you— our customers— for your support and goodwill over the last few years. Orange is a wonderful community that we are proud and excited to be a part of as we continue our mission. If you have any questions, please reach out to [email protected]. Thank you. ???????????????????????????????????????????????

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