Prime Harvest Inc. (the Company), a horizontally integrated, California cannabis operator, announced that Prime Harvest D9, LLC (“Prime Harvest D9”), the Company’s 100% owned subsidiary, has been awarded a cannabis retailer license (the “License”) by the City of San Diego. The License is designated for the neighborhood of Mount Hope, located just 1 mile east of Downtown San Diego. The new store will operate under Prime Harvest Inc.’s flagship retail brand, JAXX Cannabis, and marks the Company’s third retail license in America’s finest city. This spring, the Company plans to begin construction on the new JAXX Cannabis San Diego store and expects the store to be open by Q4 2023.

“We look forward to bringing the full JAXX Cannabis retail experience to the neighborhood of Mount Hope, including our vibrant culture and optimized retail systems, which will provide patients and adult consumers with an efficient and safe experience. With this newly awarded retail license, along with our existing manufacturing and processing assets in San Diego, Prime Harvest Inc., is well-positioned to further support the rapidly evolving Southern California market.” – Duane Alexander, Chief Executive Officer, Chairman and Founder of Prime Harvest Inc.

The new dispensary location is less than a five-minute drive from Downtown San Diego, which brings in nearly 35.1 million visitors each year. Additionally, the new location is a five-minute drive from Petco Park home to the San Diego Padres and situated close to two major highways, Interstate 15 and Interstate 805. Surrounded by local businesses, the new facility is also less than 5 miles east of major tourist sites such as San Diego’s Convention Center and the San Diego Zoo.

Currently, the City of San Diego cannabis program is a limited license market for cannabis retailers with a limit of 4 per district for a total of 36 licenses. According to the California Department of Tax and Fee Administration, San Diego reported over $427 million in total cannabis product sales as of September 2022. The Company now holds the City of San Diego’s 28th cannabis outlet.