MONTREAL, QUÉBEC – June 18, 2025 – Cannara Biotech Inc. (“Cannara”, “the Company”, “us” or “we”) (TSXV: LOVE) (OTCQX: LOVFF) (FRA: 8CB0), a vertically integrated producer of premium-grade cannabis products at affordable prices with two mega facilities based in Québec spanning over 1,650,000 sq. ft., is proud to announce that in recognition of its continued commitment to product excellence and innovation, Cannara was honored with two awards at the 6th Annual Grow Up Awards Gala held in Toronto on May 28, 2025. The Company’s Tribal brand was named Brand of the Year, and its Nugz Happle product was awarded the Accessory of the Year prize. The Grow Up Awards Gala is a nationally recognized event celebrating outstanding achievement in the Canadian cannabis industry. These accomplishments follow recent steps taken by the Company to reduce its cost of capital, including a partial repayment of its Olymbec convertible debenture and a reduction in the interest rate on its BMO credit facility.
“We are tremendously honored to announce our recognition of Brand of the Year and Accessory of the Year at the 2025 Grow Up Awards. These awards highlight our strong and growing brand presence, our leading genetic strategy, and our focus on delivering premium-quality consumer experiences across our product portfolio.” said Zohar Krivorot, President & CEO of Cannara Biotech. “We’re proud to represent Quebec’s cannabis industry with Tribal, Canada’s leading mass market premium 3.5g cannabis brand.”
“Being awarded Brand of the Year reflects our commitment to delivering premium cannabis at disruptive pricing while building a leading national brand. This recognition comes as we continue to strengthen our financial position through the partial repayment of our Olymbec convertible debenture and a reduced interest rate on our credit facility—demonstrating disciplined execution across both operations and capital management,” said Nicholas Sosiak, CFO of Cannara Biotech.
The Grow Up Conference and Expo is one of Canada’s leading industry events. The annual Grow Up Awards are one of the industry’s highest honors, with winners selected through open voting by industry participants and the public.
Olymbec Convertible Debenture Repayment
The Company announced it has made a $1 million repayment against the outstanding convertible debenture originally issued on June 21, 2021, as amended on August 31, 2023, January 30, 2024, and February 21, 2025, to Olymbec (the “Olymbec Convertible Debenture”). This repayment aligns with Cannara’s disciplined approach to capital management and reflects its commitment to reducing leverage while maintaining financial flexibility.
For a full description of the Olymbec Convertible Debenture, please refer to the Company’s Annual Information Form for the fiscal year ended August 31, 2024. A copy of the Olymbec Convertible Debenture is available under the Company’s profile on SEDAR+ at www.sedarplus.ca.
Reduced Interest Rate on Credit Facility
The Company is pleased to announce a total reduction of 50 basis points in the interest rate spread on its BMO Credit Facility. This reduction was achieved in two stages: an initial 25 basis point decrease secured through an amendment to the credit agreement, followed by an additional 25 basis point reduction triggered by the Company’s successful achievement of certain covenant thresholds as of Q2 2025 (ended February 28, 2025). As a result, Cannara’s overall cost of debt is now below 6%, underscoring its strong financial performance and disciplined approach to capital structure management.
All other original terms and conditions of the BMO credit facility remain in full force and effect. For a full description of the BMO Restated Credit Facility, please refer to the Company’s Annual Information Form for the fiscal year ended August 31, 2024. A copy of the Restated Credit Facility is available under the Company’s profile on SEDAR+ at www.sedarplus.ca
CONTACT
Nicholas Sosiak, CPA, CA
Chief Financial Officer
nick@cannara.ca
Zohar Krivorot
Founder & Chief Executive Officer
zohar@cannara.ca
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
ABOUT CANNARA
Cannara Biotech Inc. (TSXV: LOVE) (OTCQX: LOVFF) (FRA: 8CB0), is a vertically integrated producer of affordable premium-grade cannabis and cannabis-derivative products for the Canadian markets. Cannara owns two mega facilities based in Québec spanning over 1,600,000 sq. ft., providing the Company with 100,000 kg of potential annualized cultivation output. Leveraging Québec’s low electricity costs, Cannara’s facilities produce premium-grade cannabis products at an affordable price. For more information, please visit cannara.ca.