August Letter from The CEO

Boy oh boy.

It has been a while since we have spoken. I am sorry about that — life at Canurta over the past 6 months has been the most trying experience, and I am grateful for all your trust in this journey as we progress from here.

This month, I write to you directly as we have much to discuss.

Last year, we tried to position ourselves for a public market entry with our deal with Pharmadrug Inc. We made that commitment publicly, and ultimately, we did not deliver on the timeline we had set out. That responsibility sits with me.

Post-announcement, we had to organize to get everything ready to be audited like a public company — and in that process, we learned our first major lesson.

We had been the beneficiary of good advice, but good advice is nothing without our own internal diligence, especially when building a company for the public markets with invested equity and debt capital. One of the things I should have done a more effective job of was ensuring that we were truly public-company-audit ready before beginning the process.

We were not.

Our bookkeeping for a private company and to the CRA standard was OK — but preparing for public-company reporting under IFRS required a much higher standard of documentation, controls, accounting treatment and internal organization than we had built at the time.

That gap became one of the biggest challenges we faced over the past 6 months. We have had to learn in real time, rebuild parts of our financial reporting infrastructure, work through historical accounting treatment and become much more disciplined in the way we prepare ourselves for the obligations that come with being a public company.

It has been painful, stressful and incredibly consuming.

I do not know the full meaning behind this lesson yet, but I do know it is not one that is to be repeated as we go forward from here.

We are now in the final stretch of our 2024 audit and have already begun making the adjustments required for 2025. By the end of this year, I expect to have both completed, our filings caught up with the requisite exchange, and the company in a much stronger position to execute on the initial public-market plan we put in place.

Another thing we learned in the first half of the year is the importance of team, change management and, most of all — how important revenue generation is, and the skill required to actually bring it to fruition.

In January, we formally started Canurta Naturals USA, launching into the uncertainty of the U.S. Hemp industry.

Almost immediately, many of the plans we had made went out the window.

We had to learn the market, understand how customers actually responded to the products, rebuild parts of our commercial approach and figure out what it would take to move from having something we believed in to having something people would actually buy.

Through all of that, we remained creative, persevered and, with the help and stewardship of key stakeholders, look to be inching towards our first real crack at commercial success.

Over the last 6 months, we have onboarded 5 new team members to the core Canurta team, learned to work across borders and time zones with the Naturals facility located in Woodburn, Oregon, and begun introducing our Hemp Flavonoid Complex and Dual Relief products into our sales pipeline.

The objective was simple: validate that there was real interest in the market and prove that these products could actually be sold.

Today, I am proud that we have achieved that first goal.

Small distribution sales have begun for our products, customers are beginning to experience them, and for the first time we are receiving real commercial feedback from the market — not simply feedback from development, testing or people close to the company.

We are now approaching our broader U.S. launch of Dual Relief Drops™.

This is still early. We have a tremendous amount of work ahead of us. But there is a meaningful difference between developing products and beginning to sell them, and for the first time we are beginning to cross that line.

The last thing I have learned is how important it is to have a strong team and stakeholder base, including all of our equity and debt holders, because without you, when things get hard, it can seem impossible to find the solution that we need to advance forward.

But day by day, I continue to be motivated by each of our team members working to make our vision a success; people who try our products and give us feedback — the ones that let us know that this actually works and will have meaningful impact on the lives of those we are working to serve; and our investors, because each time I come back to you for support, there are those who can step up and help us move into another stage of our growth.

What we are trying to do is not easy, but we are the ones who will make it a success.

And though sometimes we have bumps in the road, plans may have to be tweaked or changed, and money can get tight — my conviction in what we set out to do has never wavered.

This is the journey of a lifetime for all of us.

I am grateful for the opportunity to lead here and to continue to share updates with you as we progress forward, hitting milestones one day, quarter and year at a time.

What the rest of the year brings us, though exciting, we will only get through with work and discipline, both of which remain underway.

I will be in touch over the next few weeks — an annual meeting of LP Unit holders is due once the first audit is complete.

We also have a number of announcements coming as, for the first time, we launch our first products into the market for people.

I look forward to you all trying them and getting feedback as we continue to improve.

Speak soon,

Akeem Gardner

CEO of Canurta Inc.