MONTREAL, QUÉBEC – January 2, 2026 – 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 pleased to announce preliminary success in the Québec provincial vape cartridge category launch. Estimated retail sales data indicates multiple leadership positions across the nascent category (for the months November and December 2025), with a 29.7% category share by retail sales value1.
The success of the vape category launch also advanced Cannara to a #1 market share position by retail sales in Quebec for the month of December 2025, with a 14.7% share of cannabis retail sales in the province, a 100-basis point improvement month over month2.
“The vape cartridge category launch in our home province of Québec has been a valuable opportunity to further expand our position as Canada’s #1 premium vape producer. With 5 of the 25 total SKUs approved, we successfully positioned our business for the largest product category launch in recent Canadian cannabis history, and I am encouraged at the strong initial consumer demand for our premium vapes.” said Zohar Krivorot, President & CEO of Cannara.
“Our highly advanced, vertically-integrated platform enabled the creation of truly premium, best-in-class products for Québec’s newly launched vape category. We are pleased to see strong reception to the launch of our firstever rosin vape cartridge offerings, alongside our already nationally leading premium live resin vapes. We look forward to the continued consumer adoption of the category.” said Nicholas Sosiak, Chief Financial Officer of Cannara.
CANCELLATION AND RE-ISSUANCE OF PREVIOUSLY GRANTED STOCK OPTIONS
The Company also announces that, on December 31, 2025, its board of directors approved the cancellation and re-issuance of certain previously granted stock options to certain officers, directors and employees of the Company (the “Affected Options”) in connection with the administration of the Company’s equity compensation plans. The grant of the Affected Options was originally announced in news releases issued by the Company on September 1, 2025, and November 24, 2025.
The Company determined that, due to an administrative oversight, the issuance of the Affected Options resulted in the Company exceeding the limits permitted under its stock option plan (the “Stock Option Plan”) and restricted share unit compensation plan (the “RSU Plan”), each of which is currently a rolling plan permitting the issuance of up to 10% of the Company’s issued and outstanding common shares. The Affected Options were cancelled and are to be re-issued on January 2, 2026, with substantially the same terms and conditions, including the same exercise prices, with vesting schedules and expiry dates intended to remain unchanged and to continue as if originally granted.
A total of 544,600 stock options were cancelled and re-issued, including 515,000 stock options held by directors and officers of the Company. Amongst the cancelled and re-issued options held by insiders of the Company, 500,000 have an exercise price of $1.44 expiring on August 27, 2035, and 15,000 have an exercise price of $1.80 expiring on November 20, 2032. The cancellation and re-issuance were undertaken solely to address the administrative oversight and did not result in any net increase of stock options outstanding under the Stock Option Plan.
As disclosed in the Company’s management proxy circular dated December 18, 2025 (the “Circular”), in connection with a review of the Company’s security-based compensation arrangements and certain housekeeping changes undertaken to align the Stock Option Plan with governance practices applicable to senior Canadian stock exchanges, the Company is seeking shareholder approval at its annual general and special meeting to be held on January 29, 2026 to amend and convert the Stock Option Plan and the RSU Plan from rolling plans to fixed securitybased compensation plans. The proposed amendments are intended to provide greater administrative clarity and facilitate ongoing compliance with plan limits.
Following implementation of the proposed amendments, the aggregate number of listed shares issuable under both plans will be fixed at 15% of the Company’s issued and outstanding listed shares as at the date of shareholder approval. The TSX Venture Exchange has provided conditional approval of the amended Stock Option Plan and amended RSU Plan, subject to shareholder approval. Copies of the amended plans are appended to the Circular.
The Circular and proxy-related materials are available on the Company’s website at https://www.cannara.ca/en/investor-area/ and under the Company’s profile on SEDAR+ at https://sedarplus.ca.
ACCELERATED VESTING OF RSUs
In addition, the Company announces that, on December 31, 2025, its board of directors approved the accelerated vesting of 15,000 restricted share units previously granted to the late Jack Kay, a former director and officer of the Company, effective December 31, 2025, to ensure compliance with the terms of the RSU Plan following his passing on November 8, 2025.
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.
1(Weedcrawler data, November 2025 to December 2025, https://weedcrawler.ca)
2(Weedcrawler data, December 2025, https://weedcrawler.ca)