Mercanto Wins Strategic Battery Slot in Quebec's Lucrative Vape Market Launch

MONTREAL, March 31, 2025 /CNW/ - Mercanto Holdings Inc. (TSXV: MUSH) ("Mercanto" or the "Company"), formerly The Good Shroom Co Inc., is pleased to announce that it has secured one of only two approved battery listings by Quebec's cannabis board for the launch of the province's upcoming vape category. This approval marks a strategic milestone as Mercanto prepares to enter one of the most promising and high-growth verticals in Canadian cannabis.

The approved battery — the M3B+ — is manufactured by globally renowned hardware maker CCELL and will be sold in all 104 authorized cannabis retail stores across Quebec. Sales are expected to commence in November 2025. Unlike most product categories that undergo bi-annual review, battery listings in Quebec's vape program are assessed on a case-by-case basis, making this a secure, indefinite listing for the Company.

The introduction of the vape category represents a major evolution in Quebec's cannabis offerings. Key highlights include:

• Vape products account for a significant share of cannabis sales in other provinces:
• 16% in Alberta[1]
• 13.4% in British Columbia
• 15.1% in Ontario[1]
• The Canadian cannabis vape market is projected to grow at a CAGR of 14.2%, reaching an estimated CAD 950 million by 2030[2]
• Quebec's cannabis authority projects vape products will make up 11% of provincial cannabis sales by the end of the first year — equating to approximately $68 million in annual revenue
• Approximately half of that volume is expected to be incremental; the other half will shift from dried flower — a segment that represents only a small portion of Mercanto's portfolio
• While other provinces offer dozens of battery options, Quebec will permit only two to begin— and Mercanto holds one of them
• The province has confirmed it will approve approximately 25 vape cartridges, with listing decisions expected in the coming months
• Mercanto will also be taking part in the submission process for vape cartridges

"This is a good win for Mercanto and certainly another step in the right direction," said Eric Ronsse, CEO. "The vape segment represents immense potential, and securing one of only two battery listings puts us in a strategically powerful position ahead of the category's launch. With a world-class device from CCELL and distribution through every store in the province, we're entering this new vertical with the strength and scale to compete from day one."

[1]: https://mjbizdaily.com/vape-pens-reign-supreme-among-cannabis-2-0-products-in-canada-data-shows
[2]: https://www.grandviewresearch.com/horizon/outlook/cannabis-vape-market/canada

Forward-Looking Information Disclaimer:

This press release contains forward-looking information within the meaning of applicable Canadian securities legislation. Forward-looking information typically contains statements with words such as "anticipate," "believe," "expect," "plan," "intend," "estimate," "may," "will," "should," "potential," "proposed," or similar expressions. Forward-looking statements in this document include, but are not limited to, statements regarding Mercanto Holdings Inc.'s future business plans, operations, growth potential, market conditions, product launches, and financial outlook. These statements are subject to known and unknown risks, uncertainties, and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. Readers are cautioned not to place undue reliance on forward-looking information. Except as required by law, the Company disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

SOURCE Mercanto Holdings Inc.

For More Information: Eric Ronsse, CEO, Mercanto Holdings Inc., Email: [email protected]