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THE MARKET ADVISORWelcome to the First Edition of The Market AdvisorThe Market Advisor is a periodic publication designed to provide our team with transparent insight into the performance, growth, and momentum of our business and of the cannabis industry in general. We’re excited to share these updates with the valued team members that make up the best part of Market 96!Confidential. Not for Distribution.Market 96 Neighborhood DispensaryJune 2026Internal Newsletter - Edition 001Market 96 Belleville is Open! Market 96 Belleville officially opened its doors on March 12, 2026. We held a small ribbon cutting ceremony with the City and Chamber of Commerce on March 20 and our Grand Opening event on May 16 . Both events were a great success. The first two months of sales have far exceeded expectations. Indeed, in its first 30 days of operations, Belleville did more gross sales and saw more customers than did either our Chicago or Oswego locations during their 30 days of being open. Additionally, as described below in more detail, despite only being open for a little more than a month, Belleville had a phenomenal 4/20, serving more than 750 customers that day and doing just over $115k in gross sales. Needless to say, Belleville has gotten off to an incredible start and we are excited to see what the future holds. th th See Belleville News-Democrat article here: https://www.bnd.com/living/article315200724.html
Confidential. Not for Distribution.THE MARKET ADVISOR420 Our 5 Days of 4/20 Strategy Just like last year, we extended our promotional window to “5 Days of 4/20,” offering progressively better deals leading up to the big day. With 4/20 falling on a Monday this year, we went with a Ferris Bueller’s Day Off theme we called the 4/20 Call Out, Haul Out – marketing that strongly resonated with our customers. All three dispensaries opened at 6 AM on 4/20, greeted by long lines of eager customers. For example, even though Belleville had only been open for just over a month, the first person lined up at 8 PM the night before and nearly 300 people lined up by opening. 4/20 by the Numbers Chicago: $139,160 | 1004 Transactions Oswego: $136,663 | 1026 Transactions Belleville: $115,876 | 758 TransactionsEd. 001 - June 2026 - Page 2Our signature Market 96 Mystery Hotbox – $420 worth of cannabis products for just $96 – sold out very quickly at all three locations. Vendors fully embraced the marketing power of this exclusive offer, providing thousands of penny promotional units that made this customer favorite possible. Just like with Black Friday, random Hotboxes also contained vendor-sponsored non-cannabis prizes valued up to $2000 including iPads, Meta Rayban Glasses, Nintendo Switches, and tickets to see the Cubs, White Sox, and Cardinals. We’re excited to make Black Friday even bigger! The Market 96 Hotbox: A Continued Customer Favorite With nearly 3,000 transactions and nearly $400k in gross sales, 4/20 2026 was by far our most successful sales day since getting our first Market 96 dispensary open in September 2023. And you all made it possible! Congrats!
One of the most important Company developments since the end of 2025 is the successful outcome of our 1,500-foot litigation. The Cannabis Regulation and Tax Act (“CRTA”) is the law that regulates us as dispensaries and all licensed cannabis businesses in Illinois. Compliance with these laws is enforced primarily by the Illinois Department of Financial and Professional Regulation (“IDFPR”). The CRTA contains a statutory provision intended to prevent market saturation by prohibiting social equity dispensaries from locating within 1,500 feet of each other. Confidential. Not for Distribution.Ed. 001 - June 2026 - Page 3 BLOC HAS OFFICIALLY BEEN BLOCKED! for now... The issue became urgent for the Company in September 2025 when IDFPR moved toward licensing another dispensary at 400 S. Wells, less than 500 feet from the Market 96 location in Chicago. The Company believed that allowing a second dispensary to locate that close to our Chicago store would violate the CRTA and undermine the very protections that were supposed to create a fair and stable environment for social equity licensees. After multiple attempts to bring these concerns directly to IDFPR to no avail, we had no choice but to protect our Chicago dispensary by filing a lawsuit to prevent IDFPR from issuing a license in violation of the 1,500-foot rule. In parallel, we launched a broader legislative, public relations, and industry advocacy effort to make clear that this issue was not simply a private dispute between two dispensary applicants, but a matter of statewide importance for social equity operators and the integrity of the Illinois licensing system. The Company drafted a letter to state legislators explaining the risk created by IDFPR’s position and secured support from more than a dozen other Illinois cannabis operators. We also engaged lobbyists who communicated directly with legislators and other stakeholders regarding the importance of preserving the 1,500-foot protection. At the same time, we drafted and released multiple press statements, participated in press interviews, and held a press conference that was televised by Fox News Chicago. This coordinated effort helped elevate the issue beyond the courtroom and reinforced the broader point that the 1,500-foot rule was intended to protect licensees, preserve orderly market development, and prevent newly operational social equity dispensaries from being immediately undermined by improperly located competitors. On June 17, 2026, the judge ruled in our favor, granting our motion for summary judgment and preventing IDFPR from licensing the proposed dispensary less than 500 feet away. This is a significant victory for the Company. While the defendants are likely to appeal, that process will be lengthy, and this ruling protects the Chicago store from an immediate and uniquely harmful competitive threat, validates our interpretation of the statutory separation rule, and reinforces the principle that agencies must follow the protections adopted by the General Assembly rather than effectively rewriting those protections through guidance, rulemaking, or licensing decisions.THE MARKET ADVISOR
FINANCIAL REPORTAfter ending 2024 with a negative EBITDA of ($1.18M), the Company as a whole finally showed a positive EBITDA of $120,600 for all of 2025! That’s an improvement of $1,239,000! What is EBITDA? EBITDA stands for Earnings (Net Income) Before Interest, Taxes, Depreciation, and Amortization. Businesses rely on this number to evaluate their financial and operational health. So EBITDA is like profit? Yes and no. Companies still have to pay taxes, interest, and account for other expenses out of these earnings. Is Market 96 profitable? Yes and no. In fact, less than 25% of all cannabis businesses are profitable at all. This is largely due to 280E taxes (More on that later...). While we showed an EBITDA profit in 2025, we still owed taxes that wiped out most of that “profit”. So how do we stay in business? We would be truly profitable if it wasn’t for our 280E tax burdens. And since we are still federally illegal, we also don’t have access to traditional funding, capital, and banking (which is also why we can’t take credit cards or even debit cards the normal way.) Therefore, we strive to earn the revenue we need to at least break even. The Market 96 executive team works very hard on the back end to try to ensure our promotions and purchasing efforts keep us attractive to new and existing customers. We try to cut costs where it makes sense (as we did substantially at the corporate level in 2025) and invest more into the most valuable efforts, such as maintaining competitive employee wages and benefits. These efforts are recognized by our owners and partners whose investments have allowed us to continue to grow as a business. We also rely on the hard work of our in store teams to provide the best experiences for our customers that ensure loyalty and increased revenue. Together, our hard work will ulimately result in sustained profitability. Confidential. Not for Distribution.Ed. 001 - June 2026 - Page 4THE MARKET ADVISOR The Company ended 2025 EBIDTA positive! How much does it cost to operate a dispensary? Let’s look at May 2026! During the month of May, our 3 stores generated a combined $1.73M in gross sales. 38% of that went to discounts and returns, 35% went to our vendors for the product we sell, 15% went to payroll, 6% covered all of our other expenses (such as our security guards, rent, utilities, supplies, etc.), leaving 6% in “Net Income” or EBITDA, out of which we have to pay taxes. So long story short, it costs a lot to run a dispensary. Which is why every dollar we earn and spend and every customer is so important!
Confidential. Not for Distribution.Ed. 001 - June 2026 - Page 5THE MARKET ADVISOR May 2026 P&L. A P&L (or “Profit & Loss” Statement) is a monthly financial summary that accounts for all the revenue we earned as well as all of our expenses before taxes. Below is our P&L from May 2026. “Gross Profit” is the dollar amount we have left over from sales after discounts, returns, and COGS to cover our expenses. In May, of the $1.73M we generated in Gross Sales, we had $468k left over to cover our expenses. This chart shows where those “Gross Profit” dollars went in expenses. After all expenses our EBIDTA or “Net Income” (which is our profit before taxes) was $104,580, or 6% of our Gross Sales. Then we have to pay taxes, including 280E taxes.
Confidential. Not for Distribution.Ed. 001 - June 2026 - Page 6THE MARKET ADVISORWHAT THE HECK IS 280E??? "The Drug Dealer Tax Code: The Origin of 280E" Once upon a time in the 1980s, there was a clever —but not-so-law-abiding—guy named Jeffrey Edmondson. He was making serious cash selling illegal drugs: weed, coke, you name it. And believe it or not, he filed his taxes. Yes, he actually told the IRS he was a drug dealer and tried to write off his "business expenses": things like scales, packaging, and even part of his apartment rent. Bold move. The IRS said “Oh hell no,” and took him to court. But plot twist! The Tax Court sided with him, saying he could deduct ordinary business expenses like anyone else. That ruling shook the system. So Congress freaked out and in 1982 passed Section 280E, basically saying: "If your business involves trafficking in Schedule I or II controlled substances (like cannabis at the federal level), you can’t deduct normal business expenses. You can only deduct Cost of Goods Sold (COGS)." So even if you’re running a legit, state-licensed dispensary today, the IRS still treats you like a drug kingpin on your taxes. That’s why cannabis businesses often pay effective tax rates of 60– 80%—way higher than normal businesses. In short: Thanks to one drug dealer with a W-2 mindset, the entire legal weed industry is stuck with a 1980s tax punishment. What does that really mean? It means that as a cannabis business, we are taxed on our “Gross Profit” rather than our “Net Income” like all other federally-legal businesses. “Gross Profit” is “gross sales” minus “discounts and returns” minus “COGS”. “Net Income” is “Gross Profit” minus ALL other business expenses, similar to EBITDA. The effective tax rate for businesses in Illinois is around 29.5%. Our combined Gross Profit for May was $468,317 and our Net Income was $104,580. 29.5% on Gross Profit = $138,154 in taxes owed 29.5% on Net Income = $30,851 in taxes owed That $138k is more than our Net Income - yikes! Because of 280E, our tax burden is over 4 times more than it would be if we were federally legalized, or even re- scheduled. This is why it is so difficult to be truly profitable as a cannabis business. In April 2026, the Department of Justice and DEA took a historic step by placing FDA-approved marijuana products and marijuana subject to qualifying state-issued medical marijuana licenses into Schedule III. We don’t quite get the benefits of this just yet, as we are not medical dispensaries yet. This is a step in the right direction, however, and paves the way for reform that would allow us and all cannabis businesses to be more profitable.
Confidential. Not for Distribution.Ed. 001 - June 2026 - Page 7THE MARKET ADVISOR EXCITING LEGISLATIVE UPDATES IN ILLINOIS CANNABIS! On June 12, 2026, Governor Pritzker signed Public Act 104-0463 (SB 3222), which makes important changes, updates, and clarifications to the CRTA. These statutory updates will impact how Illinois dispensaries are regulated and how consumers purchase cannabis in Illinois. Let’s explore just a few of the exciting changes:Possession Limits Doubled! Both in-state and out-of-state consumers are now allowed to possess double the amount of cannabis in each category! We’ve already instituted this change in our stores, and we’re excited for what this means for our Hotboxes moving forward! MEGABOXES?!Drive-Thru and Curbside! Dispensaries are now allowed to submit plans for offering these services! We are exploring how we may be able to implement these conveniences in our existing and future stores!We will soon be able to honor medical cards! Any adult-use dispensary holding an active license in good standing may opt in to a medical dispensary license. This medical dispensary license will allow the dispensary to sell cannabis to medical cannabis patients at the medical tax rate up to the medical patient’s allotment. This will be HUGE in leveling the playing field and removing the competitive advantage original dispensaries have had for years. The process for this is likely to take effect starting in September.Hours of Operation! Dispensaries are now allowed to expand their hours of operation to 2am with local approval.In-House Security! Dispensaries are now allowed to hire their own guards in-house. This could result in tremendous cost-savings for dispensaries, without having to pay the overhead to third-party agenciesl As we continue to grow, we have also continued adding support behind the scenes. Recently, the company brought on Tuross Group to assist with accounting and financial management functions. Unlike traditional accounting firms, Tuross specializes in serving cannabis operators and has built a reputation around helping businesses navigate the unique challenges of the industry. Their team works with dozens of cannabis companies across a variety of markets and understands the complexities that come with cannabis accounting, including inventory management, multi-entity structures, cash flow planning, and the ever-present challenges created by Section 280E. Market 96 Adds Tuross Group to the Team
Confidential. Not for Distribution.Ed. 001 - June 2026 - Page 8THE MARKET ADVISOR TAKING OUR PROFITABILITY INTO OUR OWN HANDS! Marketing Agencies Disappoint In the past, we’ve worked with multiple marketing agencies to serve the public with digital ads. The first was Surfside, with whom we worked for about a year from May 2024 to May 2025. Surfside claimed that they were generating tons of revenue for us, but upon investigation, they were taking credit for the sales of our regular customers and even our own employees’ purchases! In April, 2025 we engaged with another ad agency called MediaJel. Unfortunately, after 90 days we are seeing similar results with MediaJel that we did with Surfside. Since then, we’ve launched our very own digital ads program on our own website! Our vendors can “purchase” ad space to promote their brands and products on virtually any section of our website. The program has so far been wildly successful and is continuing to grow. Brands have seen triple-digit lifts in sales during these periods. In exchange, we receive payment or credits - which directly helps improve our profitability!Streamlining Vendor Reporting, Vendor Credits, & Margin Protection I Since May 2026, we’ve launched a streamlined method of monthly reporting that is presented to all of vendors on a monthly basis so they can provide additional support for the promotions and discounts we run in the form of credits. The response from vendors has been unanimously positive and supportive, and we are already starting to see credits come in at a rate we’ve never seen before. We are extremely optimistic that this process will help improve our profit margins. We have been working very hard to update our Employee Handbook to clarify all policies! We are excited to launch this in the coming weeks and look forward to streamlining all our policies and procedures as we continue to grow and prepare to open more stores!NEW HANDBOOK ON THE WAY!
Confidential. Not for Distribution.Ed. 001 - June 2026 - Page 9THE MARKET ADVISORWe wanna hear from you!Product FeedbackTry something you liked? Or didn’t like? Whether it was samples, product from Market 96 or another dispensary, your buddy just had it, or a cool local vendor you met at the farmer’s market... tell us about it!suggestion boxGot an idea for a promo, community engagement, or just general feedback? Submit it to the suggestion box!social mediaSubmit content to be considered for our social media posts!Overpriced. Terps... non-existent.We have to participate in this event!Thank you for all the submissions so far! We lookThank you for all the submissions so far! We look forward to continuing to hear from you!forward to continuing to hear from you! Thank you for all the submissions so far! We look forward to continuing to hear from you!Zach, BellevilleSupervisor, Jun 2026Belleville OG 2026Belleville OG 2026Belleville OG 2026Tristan, BellevilleTeam Lead, Jun 2026Belleville OG 2026Belleville OG 2026Belleville OG 2026Lauren, OswegoAssistant GM, Jan 2026Oswego OG 2023Oswego OG 2023Oswego OG 2023Shelby, OswegoSupervisor, May 2026Oswego OG 2023Oswego OG 2023Oswego OG 20232 0 2 6 P R O M O T I O N SQUESTIONS? REACH OUT! HELPFUL CONTACT: Human Resources: Jessica Harger, 512-293-6681jessica.harger@blountsandmoore.com Purchasing: Chris Lacy, 312-885-2905chris.lacy@blountsandmoore.com Senior General Manager: Anthony Walker, 331-229-6422anthony.walker@market-96.com The Blount & The Moore: Sherri Blount, 202-345-9608sherri.blount@blountsandmoore.com Literally Whatever: Vince Field, 734-395-3658vince@whlplant.com Dre Trobradovic, 510-890-1699dre@whlplant.com Rita Moore, 834-214-4949ritascott20@outlook.com
5-Star HighlightsConfidential. Not for Distribution.Ed. 001 - June 2026 - Page 10THE MARKET ADVISOR Thank you for reading the first Edition of The Market Advisor and for being the best part of Market 96. We look forward to sharing more with you in our next edition and to continuing to grow Illinois’ best dispensary together.