Investors – News & Events – Press Releases

MONTREAL, Dec. 13, 2023 /CNW/ – Cannara Biotech Inc. (“Cannara” or the “Company“) (TSXV: LOVE) (OTCQB: LOVFF) (FRA: 8CB), a vertically integrated producer of premium-grade cannabis and derivative product offerings at affordable prices  with two mega facilities based in Quebec spanning over 1,650,000 sq. ft., today announced that it will host the Company’s annual general meeting of shareholders on January 25th, 2024 at 11:00 am EST.  The meeting will be held by way of a live webcast and teleconference (per the instructions below).

Shareholders are encouraged to vote on the matters before the meeting by proxy and to join the meeting by webcast. Those who attend the meeting by teleconference are requested to read the notes to form of proxy and then to, complete, sign and mail the enclosed form of proxy in accordance with the instructions set out in the proxy and in the information circular.

Holders of record of ordinary shares of the Company at the close of business on December 5, 2023 will be asked by the Company for disinterested shareholder approval for the extension of the expiry date of 3,723,800 options which are currently issued and outstanding to employees of the Company by two years, including 3,503,500 options which are currently issued to Company insiders. These options are set to expire five years from grant date, and the Company is seeking approval to amend the expiration to seven years from initial grant date. Shareholders will also be asked to approve the Company’s rolling employee stock option plan and restricted share unit plan, as is required on an annual basis.

Shareholders will be able to join the annual general meeting by clicking on the link below:

https://cannarabiotechquebecinc.my.webex.com/cannarabiotechquebecinc.my/j.php?MTID=mbf846d7e608070421fa4c48bbc2cb936

To join the meeting via teleconference, please dial 1-650-479-3208 and use meeting code 2634 285 6848 and passcode LOVE2024.

*Note re Teleconference: Shareholders accessing the Meeting via Teleconference will not be able to vote or speak at the Meeting. To vote or speak at the Meeting, Shareholders will need to join the webcast and utilize the chat function during the Meeting. A moderator will be present to allow Shareholders to vote or speak at the Meeting at the appropriate time.

Cannara Biotech Inc. (TSXV: LOVE) (OTCQB: LOVFF) (FRA: 8CB) 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 1,650,000 sq. ft., providing the Company with 100,000kg 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. 

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. 

This information release contains certain forward-looking information. Such information involves known and unknown risks, uncertainties and other factors that may cause actual results, performance, or achievements to be materially different from those implied by statements herein, and therefore these statements should not be read as guarantees of future performance or results. All forward-looking statements are based on the Company’s current beliefs as well as assumptions made by and information currently available to it as well as other factors. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Due to risks and uncertainties, including the risks and uncertainties identified by the Company in its public securities filings, actual events may differ materially from current expectations. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. 

SOURCE Cannara Biotech Inc.

For further information: Nicholas Sosiak, CPA, CA, Chief Financial Officer, nick@cannara.ca; Zohar Krivorot, President & Chief Executive Officer, zohar@cannara.ca 

MONTREAL, Dec. 11, 2023 /CNW/ – Cannara Biotech Inc. (“Cannara” or the “Company”) (TSXV: LOVE) (OTCQB: LOVFF) (FRA: 8CB), a vertically integrated producer of premium-grade cannabis and derivative products with one of the largest indoor cannabis cultivation facilities in Canada, and the largest in Quebec, today announced that it will host a webcast investor presentation on Thursday, December 14^th, 2023, at 2:00 PM ET. During the webcast, Nicholas Sosiak, CFO, will conduct a presentation that will cover key areas of Cannara’s business. After the formal presentation, investors will have an opportunity to ask relevant questions through an interactive Q&A session. To listen to the webcast or to ask questions during the live event, please pre-register at the following link:

Webcast Link: https://us02web.zoom.us/webinar/register/WN_5lrw8pOPReWn1iIFJm7hog

An archived version of the webcast and presentation will be available on the Company’s website, https://investors.cannara.ca/ 

Cannara Biotech Inc. (TSXV: LOVE) (OTCQB: LOVFF) (FRA: 8CB) 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 1,650,000 sq. ft., providing the Company with 100,000kg 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.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This information release contains certain forward-looking information. Such information involves known and unknown risks, uncertainties and other factors that may cause actual results, performance, or achievements to be materially different from those implied by statements herein, and therefore these statements should not be read as guarantees of future performance or results. All forward-looking statements are based on the Company’s current beliefs as well as assumptions made by and information currently available to it as well as other factors. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Due to risks and uncertainties, including the risks and uncertainties identified by the Company in its public securities filings, actual events may differ materially from current expectations. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

SOURCE Cannara Biotech Inc.

For further information: Nicholas Sosiak, CPA, CA, Chief Financial Officer, nick@cannara.ca; Zohar Krivorot, President & Chief Executive Officer, zohar@cannara.ca

Record Q4 and year end net revenues of $18.3 million and $57.6 million, representing a 53% and 60% increase compared to the same periods of 2022

Sequentially, Q4 showed significant growth over Q3 2023 with higher net revenues by 15%, operating income by 36%, Adjusted EBITDA by 26% and net income by 58%

Delivered a tenth consecutive quarter of positive Adjusted EBITDA of $4.9 million 

Generated a record quarterly net income of $4.6 million and operating cash flows of $2.8 million

All financial results are reported in Canadian dollars, unless otherwise stated.

MONTREAL, Dec. 7, 2023 /CNW/ – Cannara Biotech Inc. (“Cannara” or the “Company“) (TSXV: LOVE) (OTCQB: LOVFF) (FRA: 8CB), a vertically integrated producer of premium-grade cannabis and derivative product offerings at affordable prices with two mega facilities based in Quebec spanning over 1,650,000 sq. ft., today announced its fiscal fourth quarter 2023 financial and operating results for the three and twelve month periods ended August 31, 2023.

“Cannara Biotech isn’t just growing, we’re charting a path of sustained, profitable growth that sets a new standard for the industry,” stated Zohar Krivorot, President & Chief Executive Officer. “In this dynamic cannabis market, our rapid ascent to having the third-largest market share in Quebec is just the beginning¹. We’re seeing continued growth in Ontario, Alberta, and British Columbia, and our achievement of activating 9 grow zones well ahead of schedule in the third quarter of this year is a testament to our team’s dedication and strategic planning. Our three flagship brands have not only captured market attention but have also played a pivotal role in driving our profitability, with over 70 new SKUs delivered this year, achieving yet another record for Cannara. This success is a clear indicator of our ability to balance growth with profitability. Our commitment to bringing high-quality, innovative cannabis products to the market is unyielding, and we anticipate our expanding product catalog to further solidify our position as a leader in the industry.”

“At Cannara, we’re not just focused on growing bigger, we’re focused on growing smarter. Our approach to expansion is underpinned by a robust operational strategy that ensures sustained profitability at each step. This focus has not only positioned us at the high end of profitability compared to our peers but also ensures our capacity to invest in future opportunities. We’re setting a new benchmark in the industry for how to grow profitably and sustainably,” concluded Mr. Krivorot.

“I am excited to share that Cannara has delivered remarkable financial milestones in the fourth quarter and throughout fiscal year 2023,” declared Nicholas Sosiak, CFO of Cannara. “Our net revenues soared by over 50% for both the quarter and the year, reflecting our expanding market reach and operational excellence. The 45% and 91% growth in our Q4 2023 gross profit and Adjusted EBITDA, respectively, when compared to Q4 2022 for the quarter, as well as an impressive 141% increase in 2023 Adjusted EBITDA over last year, demonstrates the strength of our financial strategy and operational efficiency. The significant increase in our net income, achieving $4.6 million for the quarter and $7 million for the year, validates our effective expansion strategy.

“Our net income growth – 81% for the quarter when compared to Q4 2022 and over 200% for the year compared to last year – signifies more than just numbers. It reflects our strategic vision and the distinct competitive edge we have as a leading Quebec-based producer. Importantly, our fourth quarter showed significant sequential growth over the third quarter of 2023, with higher revenue by 15%, operating income by 36%, Adjusted EBITDA by 26%, and net income by 58%. Looking to 2024, we expect to see these figures grow even further as we continue to increase our market share across Canada. Our positive cash flow situation not only enables us to pursue expansion organically but also allows us to stay committed to providing high-quality, affordable cannabis products. The loyalty of our customers and the consistent demand for our products underscore the excellence of what we offer.”

“Furthermore, our strategic expansion has led to remarkable achievements in key markets. In Ontario, we have increased our market share to rank 9th overall and aim to improve our position further with the increasing popularity of our products. Our progress in Alberta is even more striking, ranking 14^th overall in just three months in Alberta since our launch in May 2023². This remarkable surge underlines our ability to effectively tap into new markets and rapidly gain a foothold. Meanwhile, in Quebec, we continue to uphold our strong leadership position, maintaining our rank as third largest by market share. These successes across various provinces underscore Cannara’s growing influence in the Canadian cannabis industry. As we cement our position as a true player in the market, our trajectory is clearly set towards becoming the leader in this highly competitive landscape,” concluded Mr. Sosiak.

Fiscal Fourth Quarter and FY 2023 Financial Highlights

• Q4 2023 net revenues increased by 53% to $18.3 million compared to Q4 2022. For FY 2023, net revenues rose by 60% compared to FY 2022, reaching $57.6 million.
  
  
• Q4 2023 gross profit before fair value adjustments was $6.9 million, and $21.1 million in FY 2023, a 45% and 49% increase respectively compared to the three and twelve-month period in 2022. Gross profit percentage before fair value adjustments was 38% for Q4 2023 and 37% for FY 2023. Gross profit after fair value adjustments was 54% for Q4 2023 and 48% for FY 2023.
  
  
• Operating income increased to $5.8 million for Q4 2023 and $11.9 million for FY 2023, compared to operating income $3.8 million of in Q4 2022 and $4.9 million for the twelve-month period of 2022, resulting in increases of 55% and 141% respectively.
  
  
• Delivered the Company’s tenth straight quarter of positive Adjusted EBITDA of $4.9 million, and Adjusted EBITDA of $13.7 million for FY 2023, a 91% and 141% increase respectively, compared to the three and twelve-month period in 2022.
  
  
• Q4 2023 net income of $4.6 million is an over 80% improvement compared to $2.6 million of net income for Q4 2022. Net income for FY 2023 was $7.0 million, a 201% improvement compared to the net income of $2.3 million generated in FY 2022.
  
  
• The Company increased its earnings per share from $0.03 per share in FY 2022 to $0.08 per share in FY 2023.
  
  
• Posted positive operating cash flows of $2.8 million for Q4 2023 compared to negative operating cash flows of $3.2 million in the same period of the prior year. For FY 2023, positive cash flows generated for the year was $5.4 million compared to negative operating cash flows of $6.1 million in FY 2022.
  
  
• Free cash flow for Q4 2023 increased to $4.4 million from $2.5 million in Q4 2022, a 77% increase, and $11.6 million for FY 2023 compared to the $5.4 million earned in the prior year, a 114% increase. 
  
  
• The Company has $30.5 million in working capital as of August 31, 2023.

Fourth Quarter & FY 2023 Sales and Operational Highlights

• Successfully achieved its 2023 goals in expanding its market share in the Canadian cannabis recreational market:
  
  
  • In Quebec, the Company ranked in market share as Quebec’s 3rd largest licensed producer, holding approximately 8.5% of the market on August 31, 2023. Subsequent to year-end, Cannara’s market share in Quebec increased to 8.8% in October 2023³.
    
    
• • In Ontario, the Company’s market share grew by 11% in Q4 2023 compared to Q3 2023, ranking Cannara 9^th with a 3% market share in Canada’s largest cannabis market. In October 2023, Cannara has further increased its market share to 3.2%⁴.
    
    
• • Dramatically increased market share in the Alberta market by 1,100% since its launch in May 2023. As of August 31, 2023, Cannara accounts for 1.2% of the total market in Alberta, Canada’s second largest cannabis market. In October 2023, Cannara reached a market share of 2.3% in Alberta, a 92% increase from August 2023⁴.
    
    
• • Additionally, Cannara’s market share in British Columbia increased by 60% in Q4 2023 compared to Q3 2023, and now represents a market share of 0.8%. Market share in British Columbia in October 2023 has since increased to 0.9%⁴.
    
    
• Increased its total product portfolio of cannabis products from 23 SKUS at the end of fiscal 2022, to 97 SKUS at the end of fiscal 2023, representing an increase of over 320%, with over 40 more SKUs accepted by end of calendar year.
  
  
• Units sold across 3 flagship brands increased by 20% Quarter over Quarter, from Q1 2023 to Q3 2023 and by 17% from Q3 2023 to Q4 2023.
  
  
• 1,202,000 units sold during Q4 2023 across 3 flagship brands compared to 730,000 units sold during the same period of the prior year, a 65% increase.
  
  
• 3.7 million units sold across 3 flagship brands during the year of 2023 compared to 2 million units sold during the prior year, an 85% increase.
  
  
• Activation of 3 more growing zones, increasing production capacity by 50% – 1 new growing zone was activated per quarter at the Valleyfield Facility for the first three quarters of 2023. A total of 225,000 square foot of cultivation area is actively operating at the Valleyfield Facility, capable of producing in conjunction with its Farnham Facility, approximately 30,500kg of cannabis per year.
  
  
• Increased employee and contracted worker headcount to a total of 461 as of August 31, 2023, to support the growth of the business.

Q4 2023 Capital Transactions

During the quarter, the Company granted a total of 210,000 stock options at an exercise price of $1.80, subject to certain vesting conditions in accordance with the employee share option plan.

Subsequent to year-end, the Company granted a total of 625,000 stock options at an exercise price of $1.20, 89,000 stock options at an exercise price of $1.80, and 715,000 restricted share units to employees and board members, which are subject to certain vesting conditions in accordance with the Company’s employee share option and restricted share unit plan.

Selected Financial Highlights

Outstanding Shares
As at the date of this report, the Company had 90,018,592 common shares, 4,542,800 stock options and 1,504,183 RSUs issued and outstanding. For further information, the complete condensed interim Consolidated Financial Statements and Management’s Discussion and Analysis, along with additional information about the Company and all of its public filings that are available at sedarplus.ca and the Company’s investor website, investors.cannara.ca.

About Cannara Biotech Inc.
Cannara Biotech Inc. (TSXV: LOVE) (OTCQB: LOVFF) (FRA: 8CB) 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 1,650,000 sq. ft., providing the Company with 100,000kg 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. 

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. 

Cautionary Statement Regarding “Forward-Looking” Information
This information release contains certain forward-looking information. Such information involves known and unknown risks, uncertainties and other factors that may cause actual results, performance, or achievements to be materially different from those implied by statements herein, and therefore these statements should not be read as guarantees of future performance or results. All forward-looking statements are based on the Company’s current beliefs as well as assumptions made by and information currently available to it as well as other factors. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Due to risks and uncertainties, including the risks and uncertainties identified by the Company in its public securities filings, actual events may differ materially from current expectations. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. 

SOURCE Cannara Biotech Inc.

For further information:  Nicholas Sosiak, CPA, CA, Chief Financial Officer, nick@cannara.ca; Zohar Krivorot, President & Chief Executive Officer, zohar@cannara.ca

Three- and nine-month net revenue were $15.9 million and $39.3 million, a 57% and 63% increase compared to the same periods of prior year

Delivered its ninth consecutive quarter of positive Adjusted EBITDA of $3.9 million, a 129% increase compared to Q3 2022 

Generated Q3 2023 net income of $2.9 million and free cash flow of $3.2 million

Reached an annual production capacity of 30,500 kg of premium-grade cannabis per year, increasing production capacity by 50% since August 31, 2022

All financial results are reported in Canadian dollars, unless otherwise stated.

MONTREAL, July 27, 2023 /PRNewswire/ – Cannara Biotech Inc. (“Cannara” or the “Company“) (TSXV: LOVE) (OTCQB: LOVFF) (FRA: 8CB), a vertically integrated producer of premium-grade cannabis and derivative product offerings at affordable prices  with two mega facilities based in Quebec spanning over 1,650,000 sq. ft., today announced its fiscal third quarter 2023 financial and operating results for the three- and nine-month periods ended May 31, 2023.

“This past quarter was a tremendous success as Cannara grew its market share by more than 30% in Quebec (7%¹ to 9.3%²) and in Ontario (2%³ to 2.7%⁴),, along with growing sales in BC and the commencement of sales in a new market, Alberta, the second largest cannabis market in Canada.  With the firm’s robust and innovative pipeline leading the way, SKU listings rising and an additional three 25,000 square feet growing zones activated this year, revenues, gross profits, EBITDA, and net income all increased, paving the way for sustained growth moving forward,” said Zohar Krivorot, President & Chief Executive Officer of Cannara. “The response in the consumer market for our premium, high-quality yet affordable cannabis products has been tremendous since inception, and we expect to continue to grow market share across all provinces as we continue to introduce new and innovative products to our customers across Canada.  As evidenced by the significant increases in SKUs, I am very confident that Cannara is on its way to becoming one of Canada’s leading cannabis producers,” concluded Mr. Krivorot.

Nicholas Sosiak, Chief Financial Officer of Cannara commented, “Our ninth consecutive quarter of positive Adjusted EBITDA in addition to positive net income was the culmination of innovation and hard work, improved capacity utilization, improved efficiencies and increased demand for Cannara’s’ products across all markets.  The initial response in the Alberta market has been spectacular, and we are excited to increase our footprint in this vibrant, growing market, with the imminent listing of 16 additional SKUs for the Alberta consumer by next month.  The company’s stated goal of expanding cultivation capacity by 50% by year end was achieved three months ahead of schedule and we continue to execute on our strategy of increasing our production capacity in line with growing demand.  As the Cannara brand continues to resonate with the cannabis consumer market and with our capabilities of further expanding profitable production output, I couldn’t be more excited for the future of this Company, its shareholders, and stakeholders” concluded Mr. Sosiak.

Fiscal Third Quarter 2023 Financial Highlights

• Q3 2023 gross cannabis revenue of $20.6 million and $47.6 million for the first nine months of 2023, a 96% and 97% increase respectively, compared to the same period of prior year. Compared to the Q2 2023, gross cannabis revenues saw a 30% growth quarter over quarter (“QoQ”).
  
  
• Q3 2023 net revenue of $15.9 million, and $39.3 million for the first nine months of 2023, a 57% and 63% increase respectively, compared to the three and nine-month period in 2022. Net revenues increased by 22% QoQ, from $13 million in Q2 2023 to $15.9 million in Q3 2023.
  
  
• Q3 2023 gross profit before fair value adjustments was $6.1 million, and $14.2 million for the first nine months of 2023, a 64% and 51% increase respectively compared to the three and nine-month period in 2022. Gross profit before fair value adjustments increased by 53% QoQ as a result of increased sales and lower inventory adjustments.
  
  
• Operating income increased to $4.3 million for Q3 2023 and $6.1 million for the first nine months of 2023, compared to $1.5 million of operating income in Q3 2022 and $1.2 million of operating income for the nine-month period of 2022, resulting in an increase of 187% and 408% respectively. Compared to Q2 2023, operating income increased by 617% QoQ.
  
  
• Delivered the Company’s ninth straight quarter of positive Adjusted EBITDA of $3.9 million, and Adjusted EBITDA of $8.8 million for the nine-month period of 2023, a 105% and 184% increase respectively, compared to the three and nine-month period in 2022. Adjusted EBITDA increased by 22% QoQ, from $3.2 million in Q2 2023 to $3.9 million in Q3 2023.
  
  
• Net income of $2.9 million, a 107% improvement compared to $1.4 million of net income for Q3 2022. Net income for the first nine months of 2023 is $2.3 million compared to a net loss of $248,000 in the first nine months of 2022. Compared to prior quarter, net income increased by $3.5 million from a net loss of $0.6 million.
  
  
• Free cash flow for Q3 2023 increased to $3.2 million from $1.5 million in Q3 2022, an 113% increase, and $7.1 million for the nine-month period of 2023 compared to the $2.9 million in the same period last year, a 145% increase. Free cash flow increased by 68% QoQ, from $1.9 million in Q2 2023 to $3.2 million in Q3 2023.
  
  
• The Company has $27.1 million in working capital as of May 31, 2023, which includes $4 million of cash on hand and $10 million in accounts receivable.

Fiscal Third Quarter 2023 and Subsequent Sales and Operational Highlights

• Cannara activated its 9th of 24 individual 25,000 square foot growing zones at its Valleyfield Facility, a 50% capacity increase at the Valleyfield Facility compared to the previous fiscal year end, reaching a total of 225,000 square feet of active canopy. Combined with its Farnham Facility, the Company’s current annual production capacity is approximately 30,500 kg of premium-grade cannabis per year, which will increase up to 100,000 kg per year when the Valleyfield Facility is fully built out.
  
  
• Increased employee headcount from 210 employees in Q3 2022 to 270 employees in Q3 2023; a 29% increase to support operational growth.
  
  
• Units sold across 3 flagship brands increased by 20% QoQ, from approximately 860,000 units sold in Q2 2023 to 1,032,000 units sold in Q3 2023.
  
  
• Approximately 1,032,000 units were sold across 3 flagship brands during the third quarter of 2023 and 2,521,000 units were sold during the nine-month period of 2023, an 83% increase and 96% increase respectively, compared to the same three and nine-month periods of 2022.
  
  
• The Company estimates its current market share as of the third quarter of 2023 is approximately 9.3%⁵ in Quebec, the third largest producer in the province, increasing market share in Quebec by 33% from a 7%⁶ market share in the second quarter of 2023.
  
  
• The Company currently has 64 accepted SKUs in the Ontario market, a 121% increase from the 29 SKUs available in the previous quarter. Cannara’s products can be found in over 1400 retail stores across Ontario⁷, being represented in over 89% of stores in Ontario and holds a market share of 2.7%⁸, a 35% increase from the previous quarter.
  
  
• Cannara began selling into the Alberta market as of May 2023. The initial order of 3 SKUs sold out in a week and Cannara now has 19 accepted SKUs that will be available for purchase and be sold in over 45% of all Alberta cannabis stores.
  
  
• Cannara continued to grow its distribution in British Columbia with 15 SKUs available, an 114% increase compared to the 7 listed SKUs available in the previous quarter. Cannara’s products including dried flower, pre-rolls, extracts, and hash products, are now carried in over 67% of provincial retailers.

Capital Transactions

• During the quarter, the Company granted a total of 20,000 stock options at an exercise price of $1.80, subject to certain vesting conditions in accordance with the employee share option plan.
  
  
• Subsequent to quarter-end, the Company granted a total of 210,000 stock options at an exercise price of $1.80, subject to certain vesting conditions in accordance with the employee share option plan.

Selected Financial Information 

Outstanding Shares

As at the date of this report, the Company had 90,406,752 common shares, 3,860,778 stock options and 789,183 RSUs issued and outstanding. For further information, the complete condensed interim Consolidated Financial Statements and Management’s Discussion and Analysis, along with additional information about the Company and all of its public filings that are available at sedar.com and the Company’s investor website, investors.cannara.ca.

About Cannara Biotech Inc. 

Cannara Biotech Inc. (TSXV: LOVE) (OTCQB: LOVFF) (FRA: 8CB) is a vertically integrated producer of affordable premium-grade cannabis and cannabis-derivative products for the Québec and Canadian markets. Cannara owns two mega facilities based in Québec spanning over 1,650,000 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. 

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. 

Cautionary Statement Regarding “Forward-Looking” Information 

This information release contains certain forward-looking information. Such information involves known and unknown risks, uncertainties and other factors that may cause actual results, performance, or achievements to be materially different from those implied by statements herein, and therefore these statements should not be read as guarantees of future performance or results. All forward-looking statements are based on the Company’s current beliefs as well as assumptions made by and information currently available to it as well as other factors. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Due to risks and uncertainties, including the risks and uncertainties identified by the Company in its public securities filings, actual events may differ materially from current expectations. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. 

MONTREAL, May 11, 2023 /CNW/ – Cannara Biotech Inc. (“Cannara” or the “Company“) (TSXV: LOVE) (OTCQB: LOVFF) (FRA: 8CB), a vertically integrated producer of premium-grade cannabis and derivative product offerings at affordable prices  with two mega facilities based in Québec spanning over 1,650,000 sq. ft., today announced its upcoming participation at Canaccord Genuity’s 7^th annual global cannabis conference.  This one-day event will feature company presentations and one-on-one meetings with senior management teams representing the most reputable and recognizable names in the thriving cannabis industry. 

Nicholas Sosiak, Chief Financial Officer of Cannara will give a presentation outlining Cannara’s brief history, its current state of operations and the opportunity ahead for existing and potential new shareholders on Thursday May 18^th at 9:00 am ET.  For those interested in listening to the presentation, you may register for the event here:  https://wsw.com/webcast/canaccord88/love.v/2788332. Investors that are unable to attend the live presentation will have the opportunity to watch a recording on the investor page of the company website cannara.ca.

Nicholas Sosiak, Chief Financial Officer of Cannara commented, “We are excited to have been selected to present at one of the premier cannabis conferences in the industry.  Cannara has achieved so much in its brief existence, the management team and I are very proud of our accomplishments. I look forward to showcasing the Cannara name to all of the reputable investors taking part in this tremendous event”.

Cannara Biotech Inc. (TSXV: LOVE) (OTCQB: LOVFF) (FRA: 8CB) is a vertically integrated producer of affordable premium-grade cannabis and cannabis-derivative products for the Québec and Canadian markets. Cannara owns two mega facilities based in Québec spanning over 1,650,000 sq. ft., providing the Company with 120,000kg 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. 

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. 

SOURCE Cannara Biotech Inc.

For further information: Nicholas Sosiak, CPA, CA, Chief Financial Officer, nick@cannara.ca; Zohar Krivorot, President & Chief Executive Officer, zohar@cannara.ca

MONTREAL, April 25, 2023 /CNW/ – Cannara Biotech Inc. (“Cannara” or the “Company“) (TSXV: LOVE) (OTCQB: LOVFF) (FRA: 8CB), a vertically integrated producer of premium-grade cannabis and derivative product offerings at affordable prices  with two mega facilities based in Québec spanning over 1,650,000 sq. ft., today announced that it will host a webcast investor presentation on Thursday, May 4^th, 2023, at 2:00 PM ET.

During the webcast, Nicholas Sosiak, CFO, will conduct a presentation that will cover key areas of Cannara’s business. After the formal presentation, investors will have an opportunity to ask relevant questions through an interactive Q&A portal. To listen to the webcast or to ask questions during the live event, please pre-register at the following link:

https://event.webcasts.com/starthere.jsp?ei=1608068&tp_key=b50299e3b8

An archived version of the webcast and presentation will be available on the Company’s website, https://www.cannara.ca/en/investor-area/company-events/

Cannara Biotech Inc. (TSXV: LOVE) (OTCQB: LOVFF) (FRA: 8CB)  is a vertically integrated producer of affordable premium-grade cannabis and cannabis-derivative products for the Québec and Canadian markets. Cannara owns two mega facilities based in Québec spanning over 1,650,000 sq. ft., providing the Company with 120,000kg 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. 

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. 

SOURCE Cannara Biotech Inc.

For further information:  Nicholas Sosiak, CPA, CA, Chief Financial Officer, nick@cannara.ca; Zohar Krivorot, President & Chief Executive Officer, zohar@cannara.ca 

Six-month net revenues of $23.4 million, a 67% increase compared to first half 2022

Delivered its eighth consecutive quarter of positive Adjusted EBITDA of $3.2M, a 1500% increase compared to Q2 2022 

Continued to increase growing capacity to meet customer demand by activating an additional growing zone in its expanding Valleyfield Facility

All financial results are reported in Canadian dollars, unless otherwise stated.

MONTREAL, April 24, 2023 /CNW/ – Cannara Biotech Inc. (“Cannara” or the “Company“) (TSXV: LOVE) (OTCQB: LOVFF) (FRA: 8CB), a vertically integrated producer of premium-grade cannabis and derivative product offerings at affordable prices  with two mega facilities based in Québec spanning over 1,650,000 sq. ft., today announced its fiscal second quarter 2023 financial and operating results for the three and six-month periods ended February 28, 2023.

Fiscal Second Quarter 2023 Financial Highlights

• Q2 2023 net revenue of $13 million, and $23.4 million for the first half of 2023, a 76% and 67% increase respectively, compared to the three and six-month period in 2022, in addition to a 26% increase in net revenue from Q1 2023.
• Q2 2023 gross profit before fair value adjustments was $4 million, and $8.1 million for the first half of 2023, a 54% and 42% increase respectively compared to the three and six-month period in 2022. Included in Q2 2023 gross profit was an impairment charge on inventory of $1.4 million for inventory that is expected to be sold on the wholesale market in subsequent quarters. Q2 2023 gross profit before fair value adjustments, excluding the impairment charge would have been $5.4 million, a 108% increase, and $9.5 million for the first half of 2023, a 67% increase.
• Operating income increased to $0.6 million for Q2 2023 and $1.8 million for the first half of 2023, which compares to an operating loss of $0.4 million incurred in Q2 2022 and the first half of 2022, resulting in an increase of 250% and 550% respectively.
• Delivered the Company’s eighth straight quarter of positive Adjusted EBITDA of $3.2 million, and Adjusted EBITDA of $4.9 million for the first half of 2023, a 1500% and 346% increase respectively, compared to the three and six-month period in 2022.
• Net loss of $600K, a 50% improvement compared to a $1.2M net loss for Q2 2022. Excluding the $1.4 million inventory write down, the Company would have achieved a net income figure of $0.8 million for the three and six-month period ended February 28, 2023.
• Free cash flow for Q2 2023 increased to $1.9 million from $0.2 million in Q2 2022, an 850% increase, and $3.8 million for the six-month period of 2023 from $1.4 million earned in the same period of prior year, a 171% increase.
• The Company has $25.6 million in working capital as of February 28, 2023, which includes $4.1 million of cash on hand.

“In the past quarter, Cannara achieved unprecedented revenue, bolstered gross profits, and enhanced adjusted EBITDA, reflecting our unwavering commitment to executing the growth strategy we envisioned from the start,” said Zohar Krivorot, President & Chief Executive Officer of Cannara. “Our market share has made significant strides in Quebec, where we now stand as the third largest producer in the province.  With the upcoming launch of 17 new SKUS in Ontario this summer, our expansion into the thriving Alberta market, Canada’s second largest cannabis market, and the activation of additional growing zones, the future of Cannara has never been more promising. As we continue to purposively build out our product offerings across our 3 flagship brands and enter new markets, we’ve launched an online community channel to authentically engage and support our customer community. Although we still have milestones to reach in achieving our long-term objectives, I am confident that with the support of our knowledgeable and dedicated team, Cannara is well on its way to becoming a leading cannabis producer in Canada,” concluded Mr. Krivorot.

Nicholas Sosiak, Chief Financial Officer of Cannara commented, “When compared to the second quarter of 2022, our financial performance across all metrics has seen substantial improvement. This remarkable growth led to the expansion of our workforce, which was crucial in activating additional growing zones. Cannara’s market share in Quebec has grown more rapidly than any of our competitors in March 2023, and we’re thrilled to see increasing traction in the Ontario market as well. As Alberta prepares to carry Cannara’s products next month and increased sales and marketing initiatives across all markets, we anticipate our revenues to keep increasing quarter over quarter. I am proud to announce our eighth consecutive quarter of positive adjusted EBITDA, and I am confident that our solid working capital position will allow us to achieve our yearly goals without diluting the holdings of our current and loyal shareholders,” concluded Mr. Sosiak.

Fiscal Second Quarter 2023 and Subsequent Sales and Operational Highlights

• Cannara activated its 8th of 24 individual 25,000 square foot growing zones at its Valleyfield Facility, reaching a total of 200,000 square feet of active canopy. Combined with its Farnham Facility, the Company’s current annual production capacity is approximately 27,000 kg of premium-grade cannabis per year, which will increase up to 120,000 kg of premium-grade cannabis per year when the Valleyfield Facility is fully built out.
• During the first half of 2023, Cannara invested $5.0 million in capital expenditures which was mainly attributable to the activation of the 7^th and 8^th growing zone, the construction of a butane extraction lab, office and warehouse space, and initial costs related to the processing center build out at the Valleyfield Facility, in addition to capital expenditures for increased post-harvest requirements.
• The Company has set an objective by its fiscal year end, August 2023, to activate 9 growing zones, a 50% capacity increase at the Valleyfield Facility compared to the previous fiscal year end. Subsequent to quarter-end, the 9th growing zone was activated.
• Increased employee headcount from 175 employees in Q2 2022 to 270 employees in Q2 2023; a 54% increase to support operational growth.
• Approximately 860,000 units were sold across 3 flagship brands during the second quarter of 2023 and 1,480,000 units were sold during the six-month period of 2023, a 140% increase and 92% increase respectively, compared to the same three and six-month periods of 2022.
• Tribal, Cannara’s leading brand, saw sales increase by 124% in Q2 2023 compared to Q2 2022, and by 92% in the six-month period of 2023 compared to the same period in 2022.
• Nugz sales increased by 1030% in Q2 2023 compared to Q2 2022, and by 528% for the six-month period of 2023 compared to the same period in 2022.
• Orchid CBD sales increased by 19% in Q2 2023 compared to Q2 2022, and by 42% for the six-month period of 2023 compared to the same period in 2022.
• Cannara received approval to start expanding into a new Canadian market with cannabis retail sales in Alberta, Canada’s second largest cannabis market, beginning in May 2023. Subsequent to quarter-end, the Alberta Gaming, Liquor and Cannabis (“AGLC”) Commission accepted the listing of Tribal’s three currently available live resin vape cartridges.
• Cannara continued to grow its distribution in British Colombia across its 7 listed SKUs in dried flower, pre-roll, and hash products, and is now carried in over 50% of provincial retailers.
• The Company currently has 26 listed SKUs in the Ontario market, 3 new SKUs have been accepted to be launched in the spring of 2023, and an additional 17 new SKUs accepted by the OCS to be launched in Summer 2023, increasing its SKU count in Ontario by 77%. Cannara products can be found in over 1400 retail stores across Ontario¹, being represented in over 88% of stores in Ontario.
• The Company estimates its current market share as of the second quarter of 2023 is approximately 7%² in Quebec and 2%³ in Ontario.  Subsequent to quarter-end, The Company continues to expand its sales and distribution network achieving a market share in Quebec of 9.3%⁴ , the third largest producer in the province and 3%⁵ in Ontario, the tenth largest producer in the province for the month of March 2023.
• In December 2022, the Company designed and launched several lines of apparel and accessories available for purchase on its online website https://cannaraswag.shop.
• In December 2022, Cannara was awarded three awards at the third annual KIND Awards, Canada’s largest consumer-facing awards chosen by budtenders, for:
  
  • Brand of the Year: Tribal
  • Terpene Profile of the Year: Tribal
  • CBD Product of the Year: Orchid CBD Runtz
• In an ongoing effort to improve its products and customer service, Cannara launched its Discord community channel, https://discord.gg/cannara, which will be utilized to further interactions with the community of consumers and retailers.
• Cannara signed a lease agreement with a new tenant for a building that is under construction at its Valleyfield site. The start of the lease term is set for January 2024 with a term of 11 years. This transaction will generate an accretive asset and additional free cash flow using an area of the Valleyfield site that would otherwise have been unused as it is not licensed for cannabis production.

Capital Transactions

• The Company obtained approval from shareholders during the Annual General Meeting and from TSX-V for its proposal to consolidate all of the issued and outstanding common shares of the Company on the basis of ten pre-consolidation common shares for every one post-consolidation common share. At the date of the conversion, on February 13, 2023, the 907,035,460 shares issued and outstanding were converted into 90,703,552 common shares, after rounding for the fractional shares. All the share capital, stock options and RSU numbers were adjusted retrospectively.
• On February 7, 2023, the Company received a notice of conversion from Olymbec to convert $5,319,745 (principle and accrued interest to date) into 2,955,414 common shares of the Company. On February 9, 2023, the Company issued shares from treasury in relation to the conversion, following TSX Venture Exchange (“TSX-V”) approval, thereby reducing overall long-term debt obligations of the Company by this amount.
• During the quarter, the Company obtained approval from shareholders during the AGM and from TSX-V for the implementation of a Restricted Share Units (“RSU”) plan. On February 9, 2023, the Company granted an aggregate of 789,183 RSU to certain board members, subject to certain vesting conditions.
• During the quarter, the Company granted a total of 37,800 stock options at an exercise price of $1.80, subject to certain vesting conditions in accordance with the employee share option plan.
• Subsequent to quarter-end, the Company granted a total of 20,000 stock options at an exercise price of $1.80, subject to certain vesting conditions in accordance with the employee share option plan.

Selected Financial Information 

Outstanding Shares

As at the date of this report, the Company had 90,585,552 common shares, 4,423,274 stock options and 789,183 RSUs issued and outstanding. For further information, the complete condensed interim Consolidated Financial Statements and Management’s Discussion and Analysis, along with additional information about the Company and all of its public filings that are available at sedar.com and the Company’s investor website, investors.cannara.ca.

About Cannara Biotech Inc. 

Cannara Biotech Inc. (TSXV: LOVE) (OTCQB: LOVFF) (FRA: 8CB) is a vertically integrated producer of affordable premium-grade cannabis and cannabis-derivative products for the Québec and Canadian markets. Cannara owns two mega facilities based in Québec spanning over 1,650,000 sq. ft., providing the Company with 120,000kg 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. 

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. 

Cautionary Statement Regarding “Forward-Looking” Information 

This information release contains certain forward-looking information. Such information involves known and unknown risks, uncertainties and other factors that may cause actual results, performance, or achievements to be materially different from those implied by statements herein, and therefore these statements should not be read as guarantees of future performance or results. All forward-looking statements are based on the Company’s current beliefs as well as assumptions made by and information currently available to it as well as other factors. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Due to risks and uncertainties, including the risks and uncertainties identified by the Company in its public securities filings, actual events may differ materially from current expectations. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. 

SOURCE Cannara Biotech Inc.

For further information: Nicholas Sosiak, CPA, CA, Chief Financial Officer, nick@cannara.ca; Zohar Krivorot, President & Chief Executive Officer , zohar@cannara.ca 

MONTREAL, Feb. 10, 2023 /CNW/ – Cannara Biotech Inc. (“Cannara” or the “Company“) (TSXV: LOVE) (OTCQB: LOVFF) (FRA: 8CB), a vertically integrated producer of premium-grade cannabis and derivative product offerings at affordable prices  with two mega facilities based in Québec spanning over 1,650,000 sq. ft., announced today that further to its news release dated January 11, 2023, the Company held its annual shareholder meeting on January 25, 2023 (the “Meeting“).

At the Meeting, an ordinary resolution of disinterested shareholders was passed approving the creation of a new control person arising from the conversion of convertible debentures (the “Convertible Debentures”) held by Olymbec Investments Inc. (“Olymbec“) into common shares of the Company.

Convertible Debentures in the aggregate principal amount of $5,000,000 were issued to Olymbec on July 12, 2021, bearing interest at a rate of 4% per annum, compounded semi-annually and convertible in whole, along with any accrued interest, into common shares of the Company at a price of $0.18 per common share.

On February 7, 2023, the Company received a notice of conversion from Olymbec to convert $5,317,645 (principle and accrued interest to date) into 29,554,139 common shares of the Company. On February 9, 2023, the Company issued shares from  treasury in relation to the conversion, subject to TSX-V approval, thereby reducing overall long-term debt obligations of the Company by $5,317,645.

Prior to the conversion, Olymbec held 163,650,184 common shares of the Company, representing 18.65% of the issued and outstanding common shares. Following completion of the conversion, Olymbec now has direct ownership and control of 193,204,323 common shares of the Company representing 21.30% of the issued and outstanding common shares. If Olymbec were to exercise its conversion rights for all of its remaining convertible debentures, it would then own 224,870,990 common shares of the Company representing 24.79% of the then issued and outstanding common shares of the Company. Olymbec may from time to time acquire additional securities of the Company, dispose of some or all of the existing or additional securities or may continue to hold the securities.

An ordinary resolution was also passed during the annual shareholder meeting approving an amendment to the Company’s Option Plan and the adoption and implementation of the Restricted Share Unit (“RSU”) Plan, subject to  and subsequently received acceptance by the TSX-V approval. On February 9, 2023, the Company granted an aggregate of 7,891,827 RSU’s to certain employees, subject to certain vesting conditions and obtaining TSX-V approval of the RSU Plan.

In addition, the Company also received both TSXV and Shareholder approval to proceed with the consolidation of all issued and outstanding common shares of the Company on a ten (10) pre-consolidation common shares to one (1) post-consolidation common shares basis. As of today, the Company’s authorized share capital is an unlimited number of common shares without par value, of which 907,035,460 shares are issued and outstanding, with a further 52,363,728 shares reserved for issuance upon the exercise of existing stock options and RSU’s. The share consolidation is expected to take effect on Monday February 13, 2023, resulting in approximately 90,703,546 common shares issued and outstanding, along with 5,236,373 shares reserved for issuance and the exercise of existing stock options and RSU’s, subject to adjustment for fractional shares. The number and exercise price of all stock options will automatically be adjusted in accordance with the consolidation ratio. The Company’s name and ticker symbols will remain unchanged.

“As Cannara Biotech continues to grow, confidence from our major shareholders is vital to ensure a strong balance sheet necessary to support the Company’s expansion plans, especially in the current economic environment of rising interest rates. The elimination of over $5.3 million in debt obligations not only improves our working capital position, but positions Cannara to be able to take better advantage of any expansion opportunities that may arise in the near-term and this would not be possible without the tremendous support we have received from not only Olymbec but all our larger shareholders” stated Nick Sosiak, CFO of Cannara Biotech. “To take that next step as a public company, a share consolidation was necessary in order to attract new institutional investors looking to deploy capital into the profitable, growing companies within the cannabis space. This conversion opens up doors for the Company that simply were not available prior to consolidation. We look forward to welcoming new shareholders who share in our vision of delivering high quality cannabis at reasonable prices and our firm belief that cannabis will remain a staple in the consumer landscape for generations to come” concluded Mr. Sosiak.

Zohar Krivorot, President & CEO of Cannara Biotech stated “January has been another successful month for our Company in terms of revenues. Expanding cannabis sales in current markets has spurred this growth, but it is our high-quality products at affordable prices that separates Cannara from the other producers in this industry.  Cannabis consumers have never had such widespread access to an assortment of products like the one’s currently being offered, and to witness our products continuously fly off the shelves is a testament to our unique value proposition and passion for cannabis. We are very grateful for the loyal and valued customers we serve, and for the hard working, dedicated staff at Cannara that makes this all possible. With January being one of our highest months of cannabis sales, we cannot help but be optimistic for what the remainder of the year has in store for our growing, reputable enterprise” concluded Mr. Krivorot.

This press release is being issued pursuant to National Instrument 62-103 – The Early Warning System and Related Take-Over Bid and Insider Reporting Issues. A copy of the related early warning report is being filed with the applicable securities commissions and will be made available under the Company’s profile on SEDAR (www.sedar.com) Cannara’s head office is located at 333 Decarie Blvd, Suite 200, Montreal, Quebec, H4N 3M9. Olymbec’s principal office address is 333 Decarie Blvd, Suite 500, Montreal, Quebec, H4N 3M9.  

Cannara Biotech Inc. (TSXV: LOVE) (OTCQB: LOVFF) (FRA: 8CB) is a vertically integrated producer of affordable premium-grade cannabis and cannabis-derivative products for the Québec and Canadian markets. Cannara owns two mega facilities based in Québec spanning over 1,650,000 sq. ft., providing the Company with 120,000kg 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.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This information release contains certain forward-looking information. Such information involves known and unknown risks, uncertainties and other factors that may cause actual results, performance, or achievements to be materially different from those implied by statements herein, and therefore these statements should not be read as guarantees of future performance or results. All forward-looking statements are based on the Company’s current beliefs as well as assumptions made by and information currently available to it as well as other factors. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Due to risks and uncertainties, including the risks and uncertainties identified by the Company in its public securities filings, actual events may differ materially from current expectations. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

SOURCE Cannara Biotech Inc.

For further information: Nicholas Sosiak, CPA, CA, Chief Financial Officer, nick@cannara.ca; Zohar Krivorot, President & Chief Executive Officer, zohar@cannara.ca

Company recorded $10.3 million in quarterly revenue; a 57% increase compared to Q1 2022

Delivered its seventh consecutive quarter of positive Adjusted EBITDA of $1.7M and reported positive net income for a second consecutive quarter

Continued to increase growing capacity to meet customer demand by activating new growing zone in its expanding Valleyfield Facility

All financial results are reported in Canadian dollars, unless otherwise stated.

MONTREAL, Jan. 23, 2023 /CNW/ – Cannara Biotech Inc. (“Cannara” or the “Company“) (TSXV: LOVE) (OTCQB: LOVFF) (FRA: 8CB), a vertically integrated producer of premium-grade cannabis and derivative product offerings at affordable prices  with two mega facilities based in Québec spanning over 1,650,000 sq. ft., today announced its fiscal first quarter 2023 financial and operating results for the three-month period ended November 30, 2022.

Fiscal First Quarter 2023 Financial Highlights

 

• Q1 2023 revenue of $10.3 million, an 57% increase compared to Q1 2022.
  
  
• Recorded Q1 2023 gross profit before fair value adjustments of $4 million, an increase of 34% compared to Q1 2022.
  
  
• Delivered the Company’s seventh straight quarter of positive Adjusted EBITDA of $1.7 million, a 72% increase compared to Q1 2022.
  
  
• Earned net income of $2,951 for Q1 2023.
  
  
• The Company has $27.1 million in working capital as of November 30, 2022, which includes $6.8 million of cash on hand.

Fiscal First Quarter 2023 Sales and Operational Highlights

• Cannara activated its 7th of 24 individual 25,000 square foot growing zones at its Valleyfield Facility, reaching a total of 175,000 square feet of active canopy. Combined with its Farnham Facility, the Company can currently produce approximately 23,500 kg of premium-grade cannabis per year and has a potential future capacity of 120,000 kg of premium-grade cannabis per year when both Facilities are fully built out.
  
  
• The Company has set an objective for fiscal 2023 of activating 9 growing zones, a 50% increase from the capacity the Valleyfield Facility was producing at its prior fiscal year end.
  
  
• Increased employee’s headcount from approximately 190 employees in Q1 2022 to 280 employees in Q1 2023; a 47% increase, to support the growth of the operations.
  
  
• Cannara entered the British Columbia market with 7 of its dried flower, pre-roll, and hash products.
  
  
• The Company was deemed eligible to hold a cannabis representative registration by the province of Alberta in November 2022, paving the way for it to sell cannabis into the Alberta retail market.
  
  
• During the quarter, Cannara released 14 new SKUs of its premium-grade cannabis in Ontario and Quebec under the Company’s flagship brands: Tribal, Nugz and Orchid CBD, bringing its total SKU count to 32 SKUs. Included in the launch was:
  
  
  • The Company’s premium universal 510 vape battery, the Tribal UNI Pro ARK, to complement Tribal’s live resin vape carts available in Ontario.
    
    
  • The Company also released Tribal’s Cuban Linx Full Spectrum Extract, a derivative concentrate of Cuban Linx flower, and prerolls, for which the Company’s 3.5 gram SKU is the 2^nd best-selling 3.5 gram flower product in the Ontario market as of the date of this release¹.
    
    
  • Two new formats of dried flower: 14-gram Nugz Smalls in Ontario, and 15-gram Strain Hunter in Quebec, which will each offer different strains grown by Cannara on a rotational basis. The Company also launched its 3.5 gram format of Slapz by Nugz in Ontario, which is also available in a 28 gram format in Quebec.
    
    
  • Two new genetic releases in 3.5 gram and prerolls were launched under the Tribal brand: Triple Burger in Quebec, Galactic Rntz in Quebec and Ontario.
    
    
  • Four THC/CBD formulations of Orchid oil tinctures in Quebec.
    
    
• The Company’s Nugz Fresh Frozen Hash Rosin and Old School Hash have become top 10 best-selling concentrates in Ontario¹.
  
  
• The Company estimates its current market share as of the first quarter of 2023 is approximately 7% in Quebec² and 2% in Ontario³.

• In December 2022, the Company’s Farnham Facility received its CUMCS Equivalency IMC-G.A.P. certification (the “Certification”), a leading certification standard for medical cannabis cultivation, harvest, and primary processing. Obtaining the Certification provides documented evidence that Cannara has met strict standards for quality and consistency in the cultivation, harvest and primary processing of cannabis needed for export of cannabis inputs to certain international jurisdictions, including Israel, Europe, and Australia.
  
  
• As part of its marketing strategy, the Company designed and launched several lines of apparel and accessories to be sold online at https://cannaraswag.shop, including Cannara’s cannabis accessories: the Tribal UNI Pro Ark and the Nugz Häpple.
  
  
• In December 2022, the Company was awarded three awards at the KIND Awards gala in Ontario highlighting the Company’s focus on brands and high-quality flower: The awards for Brand of the Year and Terpene Profile of the Year were given to Tribal, and CBD Runtz by Orchid CBD was named CBD Product of the year.
  
  
• In December 2022, the Company signed a lease agreement with a new tenant for a building that is under construction at its Valleyfield site. The start of the lease term is set for January 2024 with a term of 11 years. This transaction will generate income and positive cash flow on an area of the Valleyfield Facility that would otherwise been unused as it is not licensed for cannabis production.

• During the quarter, Cannara invested $3.7 million in capital expenditures which was mainly attributable to the activation of the 7^th growing zone, the construction of a butane extraction lab, office and warehouse space, and initial costs related to the processing center build out at the Valleyfield Facility, in addition to capital expenditures incurred resulting from the expected increased post-harvest requirements.
  
  
• On November 30, 2022, Cannara filed with the TSX Venture Exchange, a Notice in respect of a normal course issuer bid (the “NCIB”) to be transacted through the facilities of the TSX-V. Pursuant to the NCIB, Cannara may purchase up to 15,000,000 of its common shares. The Company expects that the purchase of Shares will benefit remaining shareholders by increasing their equity interest in the Company’s assets.
  
  
• On January 12, 2023, The Company announced details of its proposal to consolidate all of the issued and outstanding common shares of the Company on the basis of ten (10) pre-consolidation common shares for every one (1) post-consolidation common shares, subject to the approval of shareholders at the upcoming meeting of shareholders to take place on January 25, 2023, as well as TSXV approval. Upon completion of the share consolidation, it is expected that there will be approximately 87,748,132 common shares issued and outstanding, subject to adjustment for fractional shares.
  
  
• On January 20, 2023, the Company granted a total of 378,000 stock options at an exercise price of $0.18, subject to certain vesting conditions in accordance with the employee share option plan.

“In Q1 2023, we continued to execute on Cannara’s growth plan, as evidenced by the activation of our 7th grow zone at our Valleyfield Facility, our entry into the BC market and the release of 14 new high-demand SKU’s,” stated Zohar Krivorot, President & Chief Executive Officer of Cannara. “We have maintained our market share in Quebec, which we expect to increase in future quarters as we continue to expand in Ontario, British Colombia, and Saskatchewan in addition to launching in Alberta. The release of 14 new SKU’s this quarter is a testament to the hard work of all Cannara staff here and we are confident that our premium products will continue to be a hit with our ever-expanding customer base,” concluded Mr. Krivorot.

Nicholas Sosiak, Chief Financial Officer of Cannara added, “When compared to the previous year’s Q1 results, the financials improved significantly across all metrics.  However, we did experience some temporary pre-roll manufacturing capacity challenges that impacted sales during the quarter. We are working diligently on increasing internal pre-roll manufacturing capacity, and we expect to resume our significant growth trend during Q2. We expect to achieve 9 active growing zones at Valleyfield this year, having just activated our 7th, allowing us to greater volumes of premium-grade cannabis. As the Company continues to scale, we expect revenues, margins, and profits to continue to improve, and shareholders to be rewarded for their investment in Cannara. I am proud to be able to report our seventh consecutive quarter of Adjusted EBITDA in addition to currently being on track to achieving record monthly sales in January 2023,” concluded Mr. Sosiak.

Selected Financial Information

As at the date of this report, the Company had 877,481,321 common shares and 44,471,911 stock options issued and outstanding. For further information, the complete Consolidated Financial Statements and Management’s Discussion and Analysis, along with additional information about the Company and all of its public filings that are available at sedar.com and the Company’s investor website, investors.cannara.ca.

Cannara Biotech Inc. (TSXV: LOVE) (OTCQB: LOVFF) (FRA: 8CB) is a vertically integrated producer of affordable premium-grade cannabis and cannabis-derivative products for the Québec and Canadian markets. Cannara owns two mega facilities based in Québec spanning over 1,650,000 sq. ft., providing the Company with 120,000kg 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.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This information release contains certain forward-looking information. Such information involves known and unknown risks, uncertainties and other factors that may cause actual results, performance, or achievements to be materially different from those implied by statements herein, and therefore these statements should not be read as guarantees of future performance or results. All forward-looking statements are based on the Company’s current beliefs as well as assumptions made by and information currently available to it as well as other factors. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Due to risks and uncertainties, including the risks and uncertainties identified by the Company in its public securities filings, actual events may differ materially from current expectations. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

SOURCE Cannara Biotech Inc.

For further information: Nicholas Sosiak, CPA, CA, Chief Financial Officer, nick@cannara.ca; Zohar Krivorot, President & Chief Executive Officer, zohar@cannara.ca

Cannara Announces Proposed Share Consolidation

MONTREAL, Jan. 12, 2023 /CNW/ – Cannara Biotech Inc. (“Cannara” or the “Company“) (TSXV: LOVE) (OTCQB: LOVFF) (FRA: 8CB), a vertically integrated producer of premium-grade cannabis and derivative products with two mega facilities based in Québec spanning over 1,650,000 sq. ft., today announces details of its proposal to consolidate all of the issued and outstanding common shares of the Company on the basis of ten (10) pre-consolidation common shares for every one (1) post-consolidation common shares, subject to the approval of shareholders at the upcoming meeting of shareholders to take place on January 25, 2023, as well as TSXV approval. Currently, the Company’s authorized share capital is an unlimited number of common shares without par value, of which 877,481,321 shares are issued and outstanding, with a further 45,107,450 shares reserved for issuance upon the exercise of existing stock options. The Board of Directors believes that the share consolidation will provide the Company with greater flexibility in developing its plans. The Company does not intend to undergo a name change in conjunction with the proposed consolidation. Upon completion of the share consolidation, it is expected that there will be approximately 87,748,132 common shares issued and outstanding, subject to adjustment for fractional shares. The number and exercise price of all stock options will be adjusted in accordance with the consolidation ratio. About Cannara Biotech Inc. Cannara Biotech Inc. (TSXV: LOVE) (OTCQB: LOVFF) (FRA: 8CB) is a vertically integrated producer of affordable premium-grade cannabis and cannabis-derivative products for the Québec and Canadian markets. Cannara owns two mega facilities based in Québec spanning over 1,650,000 sq. ft., providing the Company with 125,000kg 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. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Cautionary Statement Regarding “Forward-Looking” Information This information release contains certain forward-looking information. Such information involves known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by statements herein, and therefore these statements should not be read as guarantees of future performance or results. All forward-looking statements are based on the Company’s current beliefs as well as assumptions made by and information currently available to it as well as other factors. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Due to risks and uncertainties, including the risks and uncertainties identified by the Company in its public securities filings, actual events may differ materially from current expectations. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. SOURCE Cannara Biotech Inc. For further information: Nicholas Sosiak, CPA, CA, Chief Financial Officer, nick@cannara.ca; Zohar Krivorot, President & Chief Executive Officer, zohar@cannara.ca

11/30/2022 8:00:00 AM