PRESS RELEASES

2023


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.

MONTREALJan. 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 2nd 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.

1 Ranking based on trailing 90 days units sold, Headset Data dated January 5th, 2023

2 Based on estimated sales data provided by Weed Crawler, for the period of September to November 2022

3 Based on actual wholesale sales OCS data program for period of September to November 2022

Sales and Operational Highlights Subsequent to Fiscal First Quarter 2023
  • 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 IsraelEurope, 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.
Capital Transactions
  • During the quarter, Cannara invested $3.7 million in capital expenditures which was mainly attributable to the activation of the 7th 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

 

Three-month periods ended

Selected Financial Highlights

November 30,
2022

November 30,
2021

   

Gross revenue1

$           10,241,414

$             6,327,335

Other income

70,191

237,241

 

10,311,605

6,564,576

   

Gross profit, before fair value adjustments

4,023,398

3,014,025

%2

39 %

46 %

Gross profit

4,832,595

2,620,042

%3

47 %

40 %

   

Operating expenses

3,689,720

2,603,287

Net finance expense

1,139,924

547,254

   

Net income (loss)

2,951

(530,499)

%4

0 %

-8 %

   

Adjusted EBITDA5

1,680,484

974,320

%5

16 %

15 %

   

Basic earnings per share

$                           –

$                    (0.01)

Diluted earnings per share

$                           –

$                    (0.01)

   
   
   
 

November 30, 2022

August 31, 2022

   

Cash

$             6,758,964

$           12,114,691

Accounts receivable

5,693,460

8,526,918

Biological assets

4,079,148

5,712,456

Inventory

20,589,337

13,266,987

   

Working capital6

27,130,615

29,127,599

   

Total assets

125,426,287

125,617,047

Total current liabilities

11,262,823

11,861,085

Total non-current liabilities

46,880,581

47,020,201

Net assets

67,282,883

66,735,761

   

Free cash flow5

1,997,538

2,510,534

   
   

1 Gross revenue included revenue from sale of goods, net of excise taxes, services revenues and lease revenues.

2 Gross profit before fair value adjustments % is determined as Gross profit before fair value adjustments divided by Total revenues.

3 Gross profit % is determined as Gross profit divided by Total revenues.

4 Net income % is determined as Net income divided by Total revenues.

5 Adjusted EBITDA, working capital and free cash flow are non-GAAP financial performance measures with no standard definition under IFRS.

   Adjusted EBITDA % is a non-GAAP financial ratio and is determined as Adjusted EBITDA divided by total revenues.

6 Working capital is determined as total current assets minus total current liabilities.

Outstanding Shares

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.

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



Cannara Announces Proposed Share Consolidation

Print item:Cannara Announces Normal Course Issuer Bid for Common Shares of the Corporation  View PDF item:Cannara Announces Normal Course Issuer Bid for Common Shares of the Corporation

MONTREALJan. 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
2022
Cannara Announces Normal Course Issuer Bid for Common Shares of the Corporation
Print item:Cannara Announces Normal Course Issuer Bid for Common Shares of the Corporation  View PDF item:Cannara Announces Normal Course Issuer Bid for Common Shares of the Corporation

MONTREALNov. 30, 2022 /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 the Company filed with the TSX Venture Exchange (“the “TSX-V”) 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 “Shares”) representing approximately 1.7% of the total 877,481,321 common shares of Cannara issued and outstanding as at November 30, 2022. Purchases will be made at prevailing market prices commencing December 3, 2022 and ending December 2, 2023.

Cannara believes that the purchase of the Shares would be an effective use of its funds and that the Company’s publicly traded Shares are currently undervalued in the market. The Company expects that the purchase of Shares will benefit remaining shareholders by increasing their equity interest in the Company’s assets.

The price which the Company will pay for any Shares under the NCIB will be the market price at the time of acquisition. During the period of the NCIB, the Company may make purchases under the NCIB by means of open market transactions or otherwise as permitted by the TSX-V. All purchases under the NCIB will be purchased on the open market through the facilities of the TSX-V at the prevailing market price at the time of such transaction. Any Shares purchased by the Company will be cancelled. Raymond James ltd. will conduct the bid on behalf of the Company. The actual number of common shares purchased pursuant to the NCIB, the timing of such purchases and the price at which common shares are purchased will depend upon future market conditions.

Cannara has not repurchased any of its Shares by way of a normal course issuer bid in the previous 12 months.

A copy of Cannara’s Notice filed with the TSX-V may be obtained by any shareholder, without charge, by contacting Cannara’s Corporate Secretary at brian.sherman@cannara.ca

About Cannara Biotech Inc.

Cannara Biotech Inc. (TSXV: LOVE) (OTCQB: LOVFF) (FRA: 8CB) is a vertically integrated producer of 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.

 

SOURCE Cannara Biotech Inc.

11/30/2022 8:00:00 AM
Cannara Biotech Inc. présente des résultats financiers records pour le 4e trimestre et l’exercice 2022
Print item:Cannara Biotech Inc. présente des résultats financiers records pour le 4e trimestre et l'exercice 2022  View PDF item:Cannara Biotech Inc. présente des résultats financiers records pour le 4e trimestre et l'exercice 2022

La Société a enregistré des revenus trimestriels records de 12 millions de dollars (augmentation de 84 % sur 12 mois) et un bénéfice net de 2,6 millions de dollars.

 

Les revenus de l’exercice complet étaient de 36 millions de dollars, soit une augmentation de 108 % par rapport à 2021.

 

Enregistrement d’un BAIIA ajusté positif pour un sixième trimestre consécutif, établi à 2,5 millions de dollars, et un BAIIA ajusté positif de 5,3 millions de dollars pour l’exercice 2022.

 

Tous les résultats financiers sont exprimés en dollars canadiens, sauf indication contraire.

MONTRÉALle 25 nov. 2022 /CNW/ – Cannara Biotech Inc. (« Cannara » ou la « Société ») (TSXV : LOVE) (OTCQB : LOVFF) (FRA : 8CB), un producteur verticalement intégré de cannabis et de produits dérivés de qualité supérieure comptant deux méga-installations basées au Québec qui couvrent plus de 1 650 000 pieds carrés, a annoncé aujourd’hui ses résultats financiers et opérationnels du quatrième trimestre et de l’exercice 2022 pour les périodes de trois mois et l’exercice clos le 31 août 2022.

Faits saillants financiers et opérationnels du quatrième trimestre et de l’exercice 2022

  • Revenus de 12 millions de dollars au quatrième trimestre de 2022, soit une augmentation de 84 % par rapport au quatrième trimestre de 2021 et une augmentation de 19 % par rapport au trimestre précédent.
  • Revenus de 36 millions de dollars pour l’exercice 2022, soit une augmentation de 108 % par rapport aux revenus de l’exercice 2021.
  • Enregistrement d’un bénéfice brut avant ajustements de la juste valeur record au quatrième trimestre de 2022 de 4,8 millions de dollars, soit une augmentation de 38 % par rapport au quatrième trimestre de 2021 et une augmentation de 27 % par rapport au trimestre précédent.
  • Augmentation du BAIIA ajusté positif qui passe à 2,5 millions de dollars pour le quatrième trimestre de 2022, soit une augmentation de 83 % par rapport au quatrième trimestre de 2021.
  • Augmentation du BAIIA ajusté positif qui passe à 5,3 millions de dollars pour l’exercice 2022, soit une augmentation de 254 % par rapport à l’exercice 2021.
  • Enregistrement d’un BAIIA ajusté positif pour un sixième trimestre consécutif.
  • Bénéfice net de 2,6 millions de dollars au quatrième trimestre de 2022 et de 2,3 millions de dollars pour l’exercice 2022.
  • En date du 31 août 2022, 6 des 24 zones de culture de la nouvelle installation de Valleyfield (« l’installation de Valleyfield ») avaient été réaménagées et mises en service et ont produit six récoltes.
  • La Société a vendu environ 2 570 kg de cannabis ou 730 000 unités sous ses trois marques phares au cours du quatrième trimestre de 2022, soit une augmentation de 26 % par rapport au troisième trimestre de 2022.
  • Le nombre de kilos vendus au cours du deuxième semestre de 2022 a augmenté de 69 % par rapport au premier semestre de 2022, en raison de l’augmentation de la production provenant de l’installation de Valleyfield.
  • La Société a vendu environ 7 300 kg de cannabis ou 2 millions d’unités sous ses trois marques phares au cours de l’exercice 2022, soit une augmentation d’environ 1,5 million d’unités vendues ou 286 % par rapport à l’exercice précédent.
  • La Société a un fonds de roulement de 29 millions de dollars au 31 août 2022.
  • Au cours du quatrième trimestre de 2022, la Société a octroyé un total de 1 200 000 options d’achat d’actions aux employés à un prix d’exercice de 0,18 $, sous réserve de certaines conditions d’acquisition des droits conformément au régime d’options d’achat d’actions des employés et après la fin de l’exercice 2022, la Société a octroyé un total de 7 500 000 options d’achat d’actions à un prix d’exercice de 0,10 $ et 14 000 000 options d’achat d’actions à un prix d’exercice de 0,18 $ aux employés et 225 000 aux membres du conseil d’administration à un prix d’exercice de 0,18 $, sous réserve de certaines conditions d’acquisition des droits conformément au régime d’options d’achat d’actions des employés.
  • Après la fin de l’exercice, 500 000 options d’achat d’actions ont été exercées à un prix de 0,10 $ par action, pour une contrepartie totale de 50 000 $, ce qui a entraîné l’émission de 500 000 nouvelles actions ordinaires de la Société.

Faits saillants de l’exploitation pour l’exercice 2022

  • Obtention de la licence pour l’installation de Valleyfield : En septembre 2021, la Société a obtenu de Santé Canada la licence nécessaire pour pouvoir vendre des produits dérivés du cannabis sur le marché de détail et elle a également obtenu la licence de transformation et de culture à son installation de Valleyfield, acquise en juin 2021.
  • Expansion en Ontario : En octobre 2021, la Société a commencé à livrer chaque semaine une sélection de produits à la Société ontarienne de vente au détail de cannabis (Ontario Cannabis Store) destinés au marché de détail de l’Ontario. Il s’agit de la deuxième expansion importante de la Société sur le marché canadien.
  • Activation de la première zone de culture de Valleyfield : En novembre 2021, la Société a propagé 9 600 plantes dans la première zone de culture de l’installation de Valleyfield. De plus, la Société a lancé au début de novembre ses deux premiers produits de haschisch dans les magasins de détail du Québec.
  • Activation de la deuxième zone de culture de Valleyfield : En janvier 2022, la Société a terminé la propagation de sa deuxième zone de culture dans l’installation de Valleyfield avec 9 600 plantes.
  • Activation de la troisième zone de culture de Valleyfield et succès des récoltes : En février et mars 2022, la Société a procédé avec succès à la récolte dans ses deux premières zones dans l’installation de Valleyfield réaménagée et elle a activé sa troisième zone de culture en mars 2022.
  • Activation de la quatrième zone de culture de Valleyfield : En avril 2022, la Société a achevé avec succès le réaménagement et l’activation de la quatrième zone de culture dans l’installation de Valleyfield.
  • Règlement d’un SWAP : En avril 2022, la direction a mis fin à un contrat de swap de taux d’intérêt qu’elle avait conclu précédemment, ce qui lui a permis de dégager un rendement net de 560 000 dollars.
  • Nouvelle génétique et nouveau produit mis en marché et activation de la cinquième zone de culture: En mai 2022, l’entreprise a lancé Slapz sous la marque Nugz sur le marché du Québec et a lancé le haschisch Fresh Frozen Hash Rosin à plus forte concentration de THC sous la marque Nugz en Ontario. La Société a également réaménagé et propagé sa cinquième zone de culture dans l’installation de Valleyfield.
  • Conclusion d’une facilité de crédit de 50 millions de dollars dirigée par les Services bancaires aux grandes entreprises de BMO (« BMO ») : En mai 2022, la Société a conclu une nouvelle convention de facilité de crédit avec BMO pour un total de 50 millions de dollars, ainsi qu’une clause accordéon lui donnant possiblement accès à un crédit supplémentaire pouvant atteindre 10 millions de dollars. La facilité de crédit est assortie de conditions favorables, notamment une réduction du taux d’intérêt au fil du temps si la Société atteint certains seuils d’engagement et la capacité de rembourser la facilité sans pénalité en tout temps. Selon les termes de cette nouvelle facilité de crédit, la Société n’a aucun versement de capital a effectué durant les six premiers mois.
  • Sixième zone de culture de Valleyfield activée/Début des activités dans le laboratoire d’extraction d’huile de haschisch au butane/approbation reçue de la BCLDB : En juillet 2022, la Société a activé sa sixième zone de culture, un mois plus tôt que prévu. De plus, la Société a lancé en Ontario le haschisch Nugz Old School, en plus de sa première offre de joints préroulés sous la marque Tribal, les préroulés Gelato Mint, 5 x 0,5 g. La Société a également commencé avec succès l’extraction dans son laboratoire interne d’extraction ‘huile de haschisch au butane. La Société a obtenu l’approbation nécessaire de la British Columbia Liquor Distribution Branch (« BCLDB ») pour devenir un vendeur autorisé en Colombie-Britannique. Au total, sept produits des marques Tribal, Nugz et Orchid CBD ont été acceptés pour un lancement en septembre 2022, ce qui donne maintenant à la Société un accès à trois des quatre plus grands marchés canadiens.
  • Cannara signe un partenariat de marque exclusif avec Exotic Genetix au Canada : En août 2022, Cannara a annoncé un partenariat de marque exclusif avec Exotic Genetix Ltd. (« Exotic Genetix »), un cultivateur et sélectionneur de cultivars de cannabis et producteur de haschich américain récompensé 50 fois. Cannara a obtenu une licence exclusive pour utiliser, commercialiser, vendre et distribuer des produits de marque Exotic Genetix partout au Canada.
  • Lancement de la cartouche de vapotage de résine fraîche et de sa batterie de vapotage exclusive, Tribal Uni Pro Ark, en plus de 14 nouveaux produits en Ontario et au Québec : En septembre 2022, la Société a lancé sa cartouche de vapotage de résine fraîche G Mint d’un gramme, ainsi qu’une batterie universelle pour cartouche de vapotage 510 de première qualité, Tribal UNI Pro ARK, et elle a annoncé son intention de lancer 14 nouveaux produits de cannabis de première qualité en Ontario et au Québec sous les marques phares de la Société.
  • Pénétration accrue dans le marché : Cannara continue d’accroître sa pénétration sur les marchés du Québec, de l’Ontario, de la Saskatchewan et maintenant de la Colombie-Britannique, et elle cherche actuellement à accroître sa part de marché grâce à des volumes plus élevés de produits vendus sur ses marchés actuels.
  • BAIIA ajusté positif soutenu : Cannara prévoit qu’elle sera en mesure de continuer de déclarer un BAIIA ajusté positif trimestriel en raison de l’importance qu’elle accorde à la qualité de ses produits de cannabis, offerts à un prix de détail bas et concurrentiel; de son modèle d’exploitation allégé; et de ses deux méga-installations qui bénéficient du faible coût de l’électricité et des taux de salaire concurrentiels au Québec.

« Cette dernière année a été un franc succès, et je suis très fier de l’équipe de Cannara, de son dévouement, de son travail acharné et de l’appui qu’elle nous accorde, alors que nous poursuivons nos efforts pour nous établir comme l’un des meilleurs cultivateurs de cannabis au pays », a déclaré Zohar Krivorot, président et chef de la direction de Cannara. « À ce jour, sept des vingt-quatre zones de culture de notre installation de pointe de Valleyfield sont en production, chacune contenant 9 600 plantes. Nous demeurons confiants dans notre capacité d’activer les zones de culture restantes au cours des prochains trimestres, et nos récoltes fructueuses devraient dissiper tout doute quant à notre capacité d’atteindre tous les jalons de notre expansion et d’offrir plus de cannabis de qualité supérieure sur le marché », a conclu M. Krivorot.

Nicholas Sosiak, chef de la direction financière de Cannara, a ajouté : « Les revenus, les bénéfices et le bénéfice net ont tous augmenté au cours des 12 derniers mois, et ce tout en introduisant de nouveaux produits à l’intention de notre clientèle. Rien de tout cela ne serait possible sans la rigueur du travail de toute la famille Cannara. Au cours des 12 derniers mois, nous avons réussi à augmenter la production, ce qui était nécessaire pour appuyer les plans d’expansion récents dans les autres provinces. Compte tenu de l’expansion réalisée récemment en Colombie-Britannique et de l’engagement financier requis pour cette expansion, je suis très fier de pouvoir déclarer pour un sixième trimestre consécutif un BAIIA ajusté et un bénéfice net positifs pour notre exercice financier de 2022. Nos créanciers continuent de nous soutenir, nos clients continuent d’acheter nos produits et, alors que nous poursuivons notre croissance rapide, nous nous attendons à attirer de nouveaux clients partout au Canada qui sont constamment à la recherche de nouveaux produits. Ce n’est que le commencement », a conclu M. Sosiak.

Principales données financières

    
 

Périodes de trois mois closes le

 

Exercices clos le

Principaux faits saillants financiers

31 août
2022

31 août
2021

 

31 août
2022

31 août
2021

      

Produits bruts1

$ 11,894,302

$ 6,270,006

 

$ 35,482,601

$ 16,290,045

Autres produits

52,810

211,733

 

515,157

976,960

 

11,947,112

6,481,739

 

35,997,758

17,267,005

      

Bénéfice brut, avant ajustements de la juste valeur

4,759,816

3,440,799

 

14,144,868

8,741,484

% 2

40 %

53 %

 

39 %

51 %

Bénéfice brut

7,103,374

4,526,126

 

17,487,636

10,543,099

% 3

59 %

70 %

 

49 %

61 %

      

Charges opérationnelles

3,340,653

2,959,432

 

12,546,901

10,285,816

Charges financières nettes

1,209,277

434,851

 

2,635,316

1,785,426

      

Bénéfice net (perte nette)

$ 2,553,444

$ 1,131,843

 

2,305,419

$ (1,528,143)

% 4

21 %

17 %

 

6 %

-9 %

      

BAIIA ajusté5

$ 2,493,253

$ 1,364,415

 

5,321,022

$ 1,503,621

% 5

21 %

21 %

 

15 %

9 %

      

Bénéfice (perte) de base par action

$ 0.01

$ 0.01

 

$ 0.01

$ (0.01)

Bénéfice dilué (perte) par action

$ 0.01

$ 0.01

 

$ 0.01

$ (0.01)

      
      
      
    

Au 31 août 2022

Au 31 août 2021

      

Trésorerie

   

$ 12,114,691

$ 8,159,305

Comptes débiteurs

   

8,526,918

2,847,725

Actifs biologiques

   

5,712,456

1,902,206

Stocks

   

13,266,987

5,508,258

      

Fonds de roulement6

   

29,127,599

12,412,935

      

Total de l’actif

   

125,617,047

92,022,613

Total des passifs courants

   

11,861,085

6,833,798

Total des passifs non courants

   

47,020,201

21,073,003

Actifs nets

   

66,735,761

64,115,812

      

1 Les produits bruts comprennent les revenus de la vente de biens, déduction faite des taxes d’accise, et les revenus liés aux services et à la location.

2 Le bénéfice brut avant ajustements de la juste valeur en pourcentage est déterminé comme le bénéfice brut avant ajustements de la juste valeur divisé par le total des revenus.

3 Le pourcentage du bénéfice brut correspond au bénéfice brut divisé par le total des revenus.

4 Le pourcentage du bénéfice net (perte nette) correspond au bénéfice net (perte nette) divisé par le total des revenus.

5 Le BAIIA ajusté et le fonds de roulement sont des mesures de rendement financier non conformes aux PCGR et n’ont pas de définition officielle en vertu des IFRS.

Un rapprochement de ces mesures est présenté dans le rapport de gestion.

Le BAIIA ajusté en % est un ratio financier non conforme aux PCGR et est déterminé comme le BAIIA ajusté divisé par le total des revenus.

6 Le fonds de roulement correspond au total des actifs courants moins le total des passifs courants.

 

Actions en circulation

À la date de publication du présent rapport, la Société avait 877 481 321 actions ordinaires et 45 635 998 options d’achat d’actions émises et en circulation. Pour en savoir plus sur l’ensemble des états financiers consolidés et les rapports de gestion pour les exercices clos les 31 août 2022 et 2021, et pour obtenir des renseignements complémentaires sur la Société ou ses documents publics, veuillez consulter le site sedar.com et le site Web de la Société destiné aux investisseurs (investors.cannara.ca).

À propos de Cannara Biotech Inc.

Cannara Biotech Inc. (TSXV : LOVE) (OTCQB : LOVFF) (FRA : 8CB) est un producteur verticalement intégré de cannabis cultivé et de produits dérivés du cannabis de qualité supérieure abordables destinés aux marchés québécois et canadien. Cannara possède deux méga-installations situées au Québec, qui s’étendent sur plus de 1 650 000 pieds carrés et qui représentent un potentiel de culture annuelle de 125 000 kg. Tirant parti des faibles coûts d’électricité du Québec, les installations de Cannara créent des produits de cannabis de première qualité à prix abordable. Pour obtenir de plus amples renseignements, visitez le site cannara.ca.

La Bourse de croissance TSX et son fournisseur de services de réglementation (au sens attribué à ce terme dans les politiques de la Bourse de croissance TSX) n’assument aucune responsabilité quant à la pertinence ou à l’exactitude du présent communiqué.

Mise en garde concernant les « renseignements prospectifs »

Le présent communiqué contient certains renseignements prospectifs. De tels renseignements comportent des risques connus et inconnus, des incertitudes et d’autres facteurs qui pourraient faire en sorte que les résultats, les rendements ou les réalisations réels divergent substantiellement de ceux sous-entendus dans les énoncés aux présentes. Par conséquent, ces énoncés ne devraient pas être perçus comme des garanties de rendements ou résultats futurs. Tous les énoncés prospectifs sont fondés sur les croyances actuelles de la Société, sur ses suppositions et sur les renseignements actuellement disponibles, ainsi que sur d’autres facteurs. Les lecteurs sont priés de ne pas se fier indûment à ces énoncés prospectifs, qui ne sont pertinents qu’à la date de ce communiqué de presse. En raison des risques et des incertitudes, incluant ceux identifiés par la Société dans ses documents publics déposés, les événements réels peuvent différer de façon considérable des attentes actuelles. La Société n’assume aucune obligation ou intention quant à la mise à jour ou à la révision des énoncés prospectifs, que ce soit à la lumière de nouvelles informations, d’événements futurs ou d’autres éléments.

 

 

 

 

SOURCE Cannara Biotech Inc.

11/25/2022 8:00:00 AM
Cannara Releases 14 New SKU’s Across Ontario and Quebec
Print item:Cannara Releases 14 New SKU's Across Ontario and Quebec  View PDF item:Cannara Releases 14 New SKU's Across Ontario and Quebec

MONTREALSept. 30, 2022 /CNW Telbec/ – Cannara Biotech Inc. (“Cannara” or the “Company“) (TSXV: LOVE) (OTCQB: LOVFF) (FRA: 8CB), a Quebec-based, vertically integrated producer of premium-grade cannabis and derivative product offerings at affordable prices, announced today that it will be releasing 14 new SKU’s of its premium-grade cannabis in Ontario and Quebec under the Company’s flagship brands, Tribal, Nugz, and Orchid CBD brands.

 

Brand

Product Name

Category

Market

Tribal

Cuban Linx

5 x 0.6 gram prerolls

Ontario

Tribal

Cuban Linx

1 gram live resin full spectrum extract

Ontario

Tribal

Galactic Rntz

3.5 gram dried flower

Quebec, Ontario

Tribal

Galactic Rntz

5 x 0.6 gram prerolls

Quebec, Ontario

Tribal

Triple Burger

3.5 gram dried flower

Quebec

Tribal

Triple Burger

5 x 0.6 gram prerolls

Quebec

Tribal

Uni Pro ARK

Vape Battery

Ontario

Nugz

Slapz

3.5 gram dried flower

Ontario

Nugz

Smalls

14 gram dried flower

Ontario

Nugz

Strain Hunter

15 gram dried flower

Quebec

Orchid CBD

THC I CBD 30:15

Oils

Quebec

Orchid CBD

THC I CBD 15:30

Oils

Quebec

Orchid CBD

CBD 750

Oils

Quebec

Orchid CBD

CBD 2500

Oils

Quebec

“On behalf of the management team, we are excited to bring these 14 new products to our loyal customers as we continue to execute on our mission to provide high-demand premium cannabis products at affordable prices” stated Zohar Krivorot, President & CEO of Cannara Inc. “Our growth across Ontario and Quebec is a testament to the hard work of our staff and our purpose-built facilities designed to grow and process premium cannabis at scale. The demand for our products continues to increase and we look forward to bringing even more options to market as we ramp up our operations” concluded Mr. Krivorot.

Nicholas Sosiak, CFO of Cannara commented that “our house of brands continue to satisfy our consumers with consistent premium offerings at a value proposition rarely seen in today’s market. We continue to build up on our foundation of genetics and commitment to quality with today’s announcement.” concluded Mr. Sosiak.

Also announced today, is that the Board of Directors has approved the grant of incentive stock options for certain Directors, Officers, and Employees of the Corporation, pursuant to the Corporation’s Employee Stock Option Plan for the purchase of 7,500,000 shares at an exercise price of $0.10, and an aggregate total of 14,125,000 stock options at an exercise price of $0.18 subject to the vesting provisions of the options, at any time up to and including September 29, 2027.

About Cannara Biotech Inc.

Cannara Biotech Inc. (TSXV: LOVE) (OTCQB: LOVFF) (FRA: 8CB) is a vertically integrated producer of 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.

 

SOURCE Cannara Biotech Inc.

9/30/2022 3:46:00 PM
Cannara Biotech Inc. Announces Entry into the British Columbia Market and the Launch of its First Vape Cartridge and Vape Accessory, Tribal G Mint and UNI Pro Ark
Print item:Cannara Biotech Inc. Announces Entry into the British Columbia Market and the Launch of its First Vape Cartridge and Vape Accessory, Tribal G Mint and UNI Pro Ark  View PDF item:Cannara Biotech Inc. Announces Entry into the British Columbia Market and the Launch of its First Vape Cartridge and Vape Accessory, Tribal G Mint and UNI Pro Ark

MONTREALSept. 20, 2022 /CNW Telbec/ – Cannara Biotech Inc. (“Cannara” or the “Company”) (TSXV: LOVE) (OTCQB: LOVFF) (FRA: 8CB), a Quebec-based, vertically integrated producer of premium-grade cannabis and derivative product offerings at affordable prices, today announced its entry into the British Columbia (BC) market. In addition, the Company is also pleased to announce the launch of its first two premium product offerings in the vape and accessory categories.

 

“The BC Liquor Distribution Branch has shown great confidence in our brands’ strong value proposition by listing seven SKUs across Tribal, Nugz, and Orchid CBD. We couldn’t be happier to see our flower, pre-roll, and hash concentrates ship to British Columbia retailers and consumers this week, and we thank our dedicated team that has overseen the growth and expansion across three of Canada’s largest markets, OntarioQuebec, and British Columbia, in addition to Saskatchewan,” said Zohar Krivorot, Chief Executive Officer.

This month, the Company also launched its first live resin vape cartridge, Tribal G Mint, in Ontario. “Tribal Gelato Mint flower has been a consumer favorite in Ontario, and a key genetic to capture market share when we entered the market in November 2021. Our 1-gram G Mint live resin vape cartridge contains only fresh frozen Gelato Mint flower (Breeder: Exotic Genetix) that is grown in our facility, with zero additives, for a true-to-cultivar, full flavor experience on the go. The introduction of Tribal’s G Mint live resin vape cartridge is the latest example of Cannara’s goal to provide highly desirable premium cannabis products at affordable prices,” commented Nicholas Sosiak, Chief Financial Officer.

The Company has also introduced a premium universal 510 vape battery, the Tribal UNI Pro ARK, in collaboration with well-known premium vape manufacturer, Yocan, to provide a superior consumer vaping experience. “Cannara is pleased to have partnered with Yocan to deliver a vape battery that we have the utmost confidence in. Cannara is the exclusive partner for custom Uni Pro 2.0 devices in Canada, and we expect this accessory to be a big hit with our customers as we bring this product across all markets in Canada going forward,” concluded Mr. Sosiak. The Tribal UNI Pro ARK will be sold through retailers across Canada and direct to consumer via www.tribal.ca/ark.

About Cannara Biotech Inc.

Cannara Biotech Inc. (TSXV:LOVE) (OTCQB:LOVFF) (FRA:8CB) is a vertically integrated producer of 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.

 

SOURCE Cannara Biotech Inc.

9/20/2022 9:00:00 AM
Acquisition of Common Shares of Cannara Biotech Inc.
Print item:Acquisition of Common Shares of Cannara Biotech Inc.  View PDF item:Acquisition of Common Shares of Cannara Biotech Inc.

MONTREALSept. 1, 2022 /CNW Telbec/ – 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, announced that on August 31, 2022Derek Stern, a director and principle shareholder owning more than 10% of the issued and outstanding common shares (“Common Shares“) of Cannara, acquired 720,000 common shares (“Purchased Shares“) in the capital of Cannara, representing approximately 0.08% of the Common Shares in the capital of the Company (the “Acquisition“).

 

The Purchased Shares were acquired through normal course purchases through the facilities of the TSX Venture Exchange for $0.112 Canadian dollars per Purchased Shares, for an aggregate amount equal to $80,285 Canadian dollars.

Prior to the Acquisition, Mr. Stern, through controlling interests in Olymbec Investments Inc., directly and indirectly, owned 163,650,184 Common Shares and 100,000 options to purchase Common Shares (“Options“), representing approximately 18.66% of issued and outstanding Common Shares on a partially diluted basis. After the Acquisition, Mr. Stern, through controlling interests in Olymbec Investments Inc., directly and indirectly, owns 164,370,184 Common Shares and 100,000 Options, representing approximately 18.74% of the issued and outstanding Common Shares on a partially diluted basis.

Mr. Stern acquired the Purchased Shares for investment purposes. Mr. Stern 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.

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. Mr. Stern’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 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.

 

SOURCE Cannara Biotech Inc.

9/1/2022 9:25:00 AM
Cannara Biotech Inc. to Host Investor Webcast on August 17th, 2022
Print item:Cannara Biotech Inc. to Host Investor Webcast on August 17th, 2022  View PDF item:Cannara Biotech Inc. to Host Investor Webcast on August 17th, 2022

MONTREALAug. 10, 2022 /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 Wednesday, August 17th, 2022, 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:

 

Webcast Link: https://event.webcasts.com/starthere.jsp?ei=1559060&tp_key=1c1f25226e

An archived version of the webcast and presentation will be available on the Company’s website, https://investors.cannara.ca/news-events/company-events-cannara-biotech-quebec-inc/

About Cannara Biotech Inc.

Cannara Biotech Inc. (TSXV: LOVE) (OTCQB: LOVFF) (FRA: 8CB) is a vertically integrated producer of 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.

 

SOURCE Cannara Biotech Inc.

8/10/2022 8:30:00 AM
Cannara signs an Exclusive Brand Partnership with Exotic Genetix in Canada
Print item:Cannara signs an Exclusive Brand Partnership with Exotic Genetix in Canada  View PDF item:Cannara signs an Exclusive Brand Partnership with Exotic Genetix in Canada

Agreement grants Cannara an exclusive license to use, sell and distribute Exotic Genetix branded products throughout Canada in addition to providing access to direct breeder’s knowledge and insights on Exotic Genetix’ cannabis strains

MONTREALAug. 3, 2022 /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 an exclusive brand partnership with 50-time award-winning US-based cannabis breeder, cultivator and hash maker, Exotic Genetix Ltd. (“Exotic Genetix”). This agreement will bring one of the most influential cannabis breeders and his brands from the US to Canada.

 

“We are excited to announce this partnership with one of the premier seed breeders in this industry” stated Nicholas Sosiak, CFO of Cannara. “Exotic Genetix is a multi award-winning breeder and is responsible for the genetics behind some of the highest quality cannabis available in the United States. Exotic Genetix’s cannabis strains are current staples in Cannara’s portfolio, representing 5 of our 8 current flagship genetics, and we can attest to the high demand for, and the satisfaction derived from these genetics amongst our current customers. We could not be happier to partner with Exotic Mike, the founder of Exotic Genetix, and the rest of the Exotic Genetix team to continue to deliver on our goal to produce the highest quality, affordable cannabis for our customers. We are proud to have been chosen as an exclusive-partner to expand Exotic Genetix’s reach into Canada and have no doubt that both companies and our customers will all benefit from this endeavor” concluded Mr. Sosiak.

A testament to the quality of its cannabis, Exotic Genetix strains comprise of five of the eight genetics grown by Cannara, including Gelato Mint, Power Sherb, Galactic Runtz, CBD Runtz and Slapz.

Under the terms of the agreement, Cannara will be granted an exclusive license to use, market, sell and distribute Exotic Genetix branded products throughout Canada. In addition, Exotic Genetix will provide Cannara with ongoing consultation services with respect to providing knowledge and insights into cannabis genetics, plant growing methodologies and marketing services.

“I have been waiting a long time to bring Exotic Genetix to Canada and who better to curate the brand than Cannara alongside its flagship brands Tribal, Nugz and Orchid CBD. Their unwavering commitment and ability to grow premium cannabis at scale in state-of-the-art facilities offers the perfect opportunity for our Canadian journey to begin. We look forward to bringing Canadians some of the highest quality cannabis at prices that can fit into everybody’s budget” stated Exotic Mike.

About Cannara Biotech Inc.

Cannara Biotech Inc. (TSXV:LOVE) (OTCQB:LOVFF) (FRA:8CB) is a vertically integrated producer of 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.

About Exotic Genetix

Founded in 2008, Exotic Genetix is a US based company that specializes in the breeding of original cannabis genetics that has been winning Cannabis Cups annually since 2012. Exotic Mike is a 50-time US award-winning seed breeder, cultivator and hash maker and is the legendary creator, and artist behind Exotic Genetix. For more information, please visit exoticgenetix.com.

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.

8/3/2022 8:30:00 AM
Cannara Biotech Inc. Reports Fiscal Third Quarter 2022 Financial Results
Print item:Cannara Biotech Inc. Reports Fiscal Third Quarter 2022 Financial Results  View PDF item:Cannara Biotech Inc. Reports Fiscal Third Quarter 2022 Financial Results

Company recorded a record high of $10.1 million in quarterly revenue and $24.1 million in year-to-date revenue, delivering its fifth consecutive quarter of positive Q3 2022 Adjusted EBITDA of $1.8M with net income of $1.4 million

Valleyfield Facility continues to scale, and the Company now has 6 of its 24 growing zones in full production representing 150,000 square feet of canopy holding over 55,000 plants that can be harvested four times per year

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

MONTREALJuly 27, 2022 /CNW Telbec/ – 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 Quebec spanning over 1,650,000 sq. ft., today announced its fiscal third quarter 2022 financial and operating results for the three and nine-month periods ended May 31, 2022.

Fiscal Third Quarter 2022 Financial and Operational Highlights
  • Quarterly revenue of $10.1 million, a 36% increase from the previous quarter and a 41% increase compared to Q3 2021.
  • Recorded gross profit before fair value adjustments of $3.7 million, a 42% increase from the previous quarter and an increase of 7% compared to Q3 2021.
  • Increased positive Adjusted EBITDA from $34,000 in the previous quarter to $1.8 million in the current quarter and $2.8 million for the first nine months of 2022 compared to $139,000 of Adjusted EBITDA for the first nine months of 2021, all while continuing to support over $700,000 in one-time startup expenses for the Valleyfield Facility.
  • Delivered the Company’s fifth straight quarter of positive Adjusted EBITDA.
  • Earned net income of $1.4 million for the three-month period ended May 31, 2022.
  • Closed on a non-dilutive $50 million credit facility led by BMO Commercial Banking. The credit facility includes a three-year term loan for $39.3 million with an accordion for up to an additional $10 million, a $5 million line of credit and $5.7 million for the issuance of a letter of credit. Funding was received subsequent to quarter-end.
  • Successfully redesigned and activated 5 of 24 growing zones and have produced 4 harvests from the new Valleyfield facility as of May 31, 2022.
  • Recorded its first revenue from cannabis cultivated from its Valleyfield facility.
  • Introduced 2 new genetics under the Tribal brand Nugz brand and 1 new genetic under the Nugz brand in the Quebec market.
  • Launched Nugz Fresh Frozen Hash Rosin in 1 gram format in the Ontario market.
  • Sold approximately 2,040 kg of cannabis or 564,000 units across 3 flagship brands during the quarter as the result of the increase in production from the Valleyfield Facility, a 60% increase in kg sold compared to the previous quarter.
  • Approximately 4,800 kg of cannabis or 1,286,000 units sold across 3 flagship brands during the nine-month period of 2022, an increase of over 1 million units sold compared to the same period in the prior year.
  • Invested $4.9 million in capital expenditures during the quarter and over $12 million during the nine-month period ended May 31, 2022, the bulk of the capital expenditures related to the finalization of the construction of the Valleyfield facility.
  • The Company has $13 million in working capital of May 31, 2022.
  • Granted an aggregate total of 600,000 stock options to employees and 613,333 stock options to consultants at an exercise price of $0.18, subject to certain vesting conditions.
Highlights Subsequent to Quarter End
  • The Company launched its Nugz Old School Hash in 2-gram form containing between 40%-50% THC in Ontario, in addition to its first Tribal preroll pack, Gelato Mint 5 x 0.5g in July.
  • The Company successfully commenced operations in its newly built hydrocarbon closed loop extraction lab. The first product produced will be Tribal’s G Mint Live Resin Vape Cartridge, which will be released in Ontario in August 2022.
  • In June, the Company received $39.3 million from its term loan, which was used, in part, to repay the existing $21.8 million loan with CIBC and $5.7 million for the issuance of a letter of credit to cover certain deposit requirements.
  • Achieved successful completion of 2022 startup plan of the Valleyfield Facility operation with 6 of 24 growing zones of 25,000 square feet redesigned and operational as of the date of this release.
  • Received approval to become a licensed vendor to the British Columbia Cannabis Store (“BCBS”) and received approval to list 7 SKUs in the upcoming months.
  • Granted an aggregate total of 1,200,000 stock options to employees at an exercise price of $0.18, subject to certain vesting conditions.

“I am very proud of the entire team at Cannara for their continued focus and hard work. The positive financial performance is a direct result of the collective efforts of all our great employees,” stated Zohar Krivorot, President & Chief Executive Officer of Cannara. “We continue to be ahead of schedule on all of our stated objectives for this year while at the same time delivering record revenue, our fifth positive quarter of Adjusted EBITDA, and positive net income. We are also pleased to report to shareholders that our new state of the art Valleyfield Facility, as of today, is producing out of six of its twenty-four growing zones, each containing 9,600 plants each. We have multiple succesful harvests delivered from our new facility, which provides us confidence in our ability to continue our expansion and to grow consistent premium-grade cannabis at scale.

Nicholas Sosiak, Chief Financial Officer of Cannara added, “Being able to deliver our fifth consecutive quarter of Adjusted EBITDA and our third quarter of positive net income are Company milestones that we are all proud of. Cannara continues to surpass its financial targets which allows us to lay the foundation for our long-term goals, as evidenced by the $50 million credit facility Cannara secured with BMO Commercial Banking. The credit facility provides the Company with necessary liquidity to continue to execute on our expansion plans. These additional resources will assist Cannara to increase its cannabis supply through capital investment at the Valleyfield Facility with continued focus on providing consumers with premium products at sustainable, market disrupting high value propositions. This strategy has allowed us to increase market share while simultaneously entering into new provinces. Given that Cannara only operates today in 2 major Canadian markets, I am really excited for the Company’s long-term picture as we have plenty of room for growth.”

 

 

Outstanding Shares

As at the date of this report, the Company had 876,981,321 common shares and 41,110,790 stock options issued and outstanding. For further information, the complete Condensed Interim Consolidated Financial Statements and Management’s Discussion and Analysis for the three and nine-month periods ended May 31, 2022 and 2021, along with additional information about the Company and all of its public filings 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 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.

7/27/2022 8:00:00 AM
Cannara Biotech Inc. Closes $50 Million Credit Facility Led by BMO Commercial Banking
Print item:Cannara Biotech Inc. Closes $50 Million Credit Facility Led by BMO Commercial Banking  View PDF item:Cannara Biotech Inc. Closes $50 Million Credit Facility Led by BMO Commercial Banking

MONTREALJune 1, 2022 /CNW Telbec/ – 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 Quebec spanning over 1,650,000 sq. ft., announced today that it has closed on a $50M credit facility led by BMO Commercial Banking. The credit facility, effective May 31, 2022, includes a three-year term loan for $45 million with an accordion for up to an additional $10 million and a $5 million line of credit. Additional favorable terms attached to the credit facility include a declining interest rate over time as the Company hits certain covenant thresholds and the ability to repay the facility without penalty at any time. Under the terms of this new credit facility, the Company will not make any principal payments for the first six months.

 

Cannara will use this new credit facility to repay and close all debt associated with its current credit facility and to invest capital into its Valleyfield Facility to redesign and activate new 25,000 square feet growing zones that replicate indoor growing conditions, including growing without utilizing the sun. As of May 31, 2022, the Company has activated and is currently cultivating in 5 of its 24 growing zones.

The credit facility will also be used to support capital investments for additional post-harvest packaging and processing equipment, which will be used to support the growing production capacity at the Valleyfield Facility and to operationalize the production of in-house solvent-based Cannabis 2.0 derivative products.

“We’re extremely pleased to announce this new non-dilutive credit facility with our new financial partner, BMO Commercial Banking, and are proud that they chose to back Cannara as an emerging leader in the Canadian cannabis industry,” stated Nicholas Sosiak, Chief Financial Officer of Cannara. “This partnership and the financing it provides strengthens our working capital position while providing the Company with necessary fire power to execute on our immediate and mid-term growth strategy, both from a production capacity and market expansion standpoint.”

About Cannara Biotech Inc.

Cannara Biotech Inc. (TSXV: LOVE) (OTCQB: LOVFF) (FRA: 8CB) is a vertically integrated producer of 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.

6/1/2022 4:00:00 PM
Cannara Biotech Inc. to Present at Canaccord Genuity’s 6th Annual Cannabis Conference on May 11th and Retains Bristol Capital for Investor Relations Services
Print item:Cannara Biotech Inc. to Present at Canaccord Genuity's 6th Annual Cannabis Conference on May 11th and Retains Bristol Capital for Investor Relations Services  View PDF item:Cannara Biotech Inc. to Present at Canaccord Genuity's 6th Annual Cannabis Conference on May 11th and Retains Bristol Capital for Investor Relations Services

MONTREALMay 4, 2022 /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 Que bec spanning over 1,650,000 sq. ft., today announced the Company’s Chief Financial Officer, Nicholas Sosiak, will be presenting at Canaccord Genuity’s 6th Annual Cannabis Conference at 10:30am Eastern on May 11th, 2022. Mr. Sosiak will present the Company’s corporate highlights and also provide an update on the company’s second quarter financial results.

 

In order to watch the Company’s presentation, please register here.

Mr. Sosiak will also be available for virtual 1×1 meetings during the conference. If you would like to arrange a 1×1 meeting with Mr. Sosiak, please contact your Canaccord Genuity salesperson to schedule.

The Company also announced that it has retained Bristol Capital Ltd. (“Bristol”) a leading investor relations firm servicing Canadian and US microcap and small cap companies across international markets, to provide investor relations and communication services.

Bristol has agreed to comply with all applicable securities laws and the policies of the TSX Venture Exchange (the “TSXV”) in providing the Services.

Bristol has been engaged by the Company for an initial period of 12 months (the “Initial Term”) which shall be renewed automatically for successive one-year periods thereafter, unless terminated in accordance with the provisions of agreement. Bristol will be paid a monthly fee of up to $14,000, plus applicable taxes. In addition, the Company has agreed to grant Bristol an aggregate of 400,000 options at an exercise price of $0.18 per share for a period ending 36 months from the date of grant. Neither Bristol nor its principals or affiliates have an interest, directly or indirectly in the Company or its securities, and act at arm’s length to the Company. The appointment of Bristol remains subject to regulatory acceptance of applicable filings with the TSXV.

About Cannara Biotech Inc.

Cannara Biotech Inc. (TSXV: LOVE) (OTCQB: LOVFF) (FRA: 8CB) is a vertically integrated producer of 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 craft-cultivated 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.

5/4/2022 8:30:00 AM
Cannara Biotech Inc. Reports Fiscal Second Quarter 2022 Financial Results
Print item:Cannara Biotech Inc. Reports Fiscal Second Quarter 2022 Financial Results  View PDF item:Cannara Biotech Inc. Reports Fiscal Second Quarter 2022 Financial Results

Company recorded $7.4 million in quarterly revenues and delivers fourth consecutive quarter of positive Adjusted EBITDA while continuing to rapidly scale production capacity at the Valleyfield Facility

Completed first harvest from the Valleyfield Facility with positive market feedback consistent with the quality of products Cannara is known for

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

MONTREALApril 27, 2022 /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 Que bec spanning over 1,650,000 sq. ft., today announced its fiscal second quarter 2022 financial and operating results for the three and six-month periods ended February 28, 2022.

Fiscal Second Quarter 2022 Financial and Operational Highlights

  • Posted quarterly revenues of $7.4 million, an increase of 229% from the same quarter in the previous year;
  • Recorded a gross profit before fair value adjustments of $2.6 million or 36% more than the same quarter in the previous year;
  • Achieved fourth consecutive quarter of positive Adjusted EBITDA while significantly expanding its production footprint within the facility located in Valleyfield, Québec (the “Valleyfield Facility”). Revenues from the Valleyfield Facility will start to be realized in the third quarter of 2022;
  • Positive Adjusted EBITDA of $1 million for the first six months of 2022 while supporting over $1 million in startup expenses for the Valleyfield Facility compared to a negative Adjusted EBITDA of $(2.4) million in the same period of prior year;
  • Successfully harvested its first growing zone in its newly redesigned Valleyfield Facility and has sold, subsequent to quarter-end, the finished product generated from this first harvest;
  • Completed the activation of its second and third 25,000 square foot growing zones in the Valleyfield Facility, effectively increasing its overall production capacity by more than 200% when comparing to the production capacity at its Farnham Facility;
  • Increased working capital to $14.8 million from a working capital of $12.4 million as at August 31, 2021;
  • Invested $7.4 million in capital expenditures towards the Company’s assets in order to increase production capacity and processing capabilities;
  • Granted an aggregate total of 7,710,000 stock options to certain employees and 225,000 stock options to board members at an exercise price of $0.18 per common share, subject to certain vesting conditions.

Highlights Subsequent to Quarter End

  • Introduced a new genetic strain under the Tribal brand to the Quebec market: Terple. The product is available in a 3.5g can and five 0.5g pre-rolls;
  • The Company completed the activation of its fourth 25,000 square foot growing zone and is currently ahead of its objective of activating 6 growing zones by August 2022;
  • The Company was selected as one of only three cannabis producers by the Ontario Cannabis Store (“OCS”) to have a headlining product for their 420 event; To support this, the Company created a special edition of its Early Lemon Berry pre-rolls, offering a 12 x 0.6g joint format with innovative packaging design;
  • The Company successfully harvested its second growing zone at its Valleyfield Facility;
  • Granted an aggregate total of 600,000 stock options to certain employees at an exercise price of $0.18 per common share, subject to certain vesting conditions;
  • Exercise of 500,000 stock options at an exercise price of $0.10 for a total proceed of $50,000.

“We are proud of the advances we made in the second quarter. We planted three 25,000 square foot growing zones and successfully harvested our first zone in February,” commented Zohar Krivorot, President & Chief Executive Officer of Cannara. “By redesigning the Valleyfield Facility and receiving consistent positive consumer feedback on our first harvest, we have successfully confirmed our ability to grow premium cannabis at scale. Our objective for the year is to turn on six growing zones by August 2022 at Valleyfield and we remain on schedule to do so”.

Nicholas Sosiak, Chief Financial Officer of Cannara commented, “While we are focused on investing into our own assets, we continue to outperform from a financial standpoint. This was our fourth consecutive quarter of positive Adjusted EBITDA while continuing to support and significantly grow our production footprint. We added over 40 new employees to help support the growth at the Valleyfield Facility yet the revenues from this Facility will only start to be realized in the third quarter of 2022. We are working extremely hard this quarter and next to expand our distribution channels and get products listed in new markets. I am looking forward to the coming quarters as we harvest and sell our products from the new operating zones at our Valleyfield Facility and expand our footprint into new markets across Canada.”

 

Three-month periods ended

 

Six-month periods ended

Selected Financial Highlights

February 28,
2022

February 28,
2021

 

February 28,
2022

February 28,
2021

      

Gross revenue1

$ 7,272,059

$ 1,969,103

 

$ 13,599,394

$ 3,303,441

Other income

150,295

288,651

 

387,536

322,494

 

7,422,354

2,257,754

 

13,986,930

3,625,935

      

Gross profit, before fair value adjustments

2,635,607

1,298,261

 

5,649,632

1,794,407

%2

36%

58%

 

40%

49%

Gross profit (loss)

3,015,577

2,095,208

 

5,635,619

1,597,849

%3

41%

93%

 

40%

44%

      

Operating expenses

3,388,404

2,506,013

 

5,991,691

5,166,575

Net finance expense

772,996

451,951

 

1,320,250

789,062

      

Net income (loss)

$ (1,145,823)

$ (862,756)

 

(1,676,322)

(4,357,788)

%4

-15%

-38%

 

-12%

-120%

      

Adjusted EBITDA5

$ 33,998

$ (850,509)

 

1,008,319

(2,423,630)

%5

0%

-38%

 

7%

-67%

      

Basic earnings (loss) per share

$ (0.01)

$ (0.01)

 

$ (0.01)

$ (0.01)

Diluted earnings (loss) per share

$ (0.01)

$ (0.01)

 

$ (0.01)

$ (0.01)

      
      
      
    

February 28, 2022

August 31, 2021

      

Cash

   

$ 8,258,006

$ 8,159,305

Accounts receivable

   

3,098,917

2,847,725

Biological assets

   

2,261,997

1,902,206

Inventory

   

7,753,462

5,508,258

      

Working capital6

   

14,745,234

12,412,935

      

Total assets

   

101,691,030

92,022,613

Total current liabilities

   

7,910,429

6,833,798

Total non-current liabilities

   

31,237,792

21,073,003

Net assets

   

62,542,809

64,115,812

      
      

1 Gross revenue included revenue from sale of goods, net of excise taxes, services revenues and lease revenues.

   

2 Gross profit before fair value adjustments % is determined as Gross profit before fair value adjustments divided by Total revenues.

   

3 Gross profit (loss) % is determined as Gross profit (loss) divided by Total revenues.

   

4 Net income (loss) % is determined as Net income (loss) divided by Total revenues.

   

5 Adjusted EBITDA and working capital are non-GAAP financial performance measures with no standard definition under IFRS.
A reconciliation of these measures is presented elsewhere in this MD&A.

   

Adjusted EBITDA % a non-GAAP financial ratio and is determined as Adjusted EBITDA divided by total revenues.

   

6 Working capital is determined as total current assets minus total current liabilities.

   
      
      
 

Three-month periods ended

 

Six-month periods ended

Adjusted EBITDA

February 28,
2022

February 28,
2021

 

February 28,
2022

February 28,
2021

      

Net loss

$ (1,145,823)

$ (862,756)

 

$ (1,676,322)

$ (4,357,788)

      

Adjustments:

     

Changes in fair value of inventory sold

1,269,679

447,885

 

3,136,159

651,195

Unrealized gain on changes in fair value of biological assets

(1,649,649)

(1,244,832)

 

(3,122,146)

(454,637)

Amortization, including amortization in cost of good sold

629,027

251,634

 

1,221,586

738,290

Loss on disposal of property, plant and equipment

6,444

54,224

 

31,106

54,224

Gain on sublease

 

(12,876)

Share-based compensation, including share-based
compensation in cost of good sold

151,324

51,385

 

110,562

156,024

Net finance expense

772,996

451,951

 

1,320,250

789,062

      

Adjusted EBITDA1

$ 33,998

$ (850,509)

 

$ 1,008,319

$ (2,423,630)

      
      

Adjusted EBITDA is a non-GAAP financial performance measure with no standard definition under IFRS.

 

Outstanding Shares

As at the date of this report, the Company had 876,981,321 common shares and 40,645,781 stock options issued and outstanding. For further information, the complete Condensed Interim Consolidated Financial Statements and Management’s Discussion and Analysis for the three and six-month periods ended February 28, 2022 and 2021, along with additional information about the Company and all of its public filings 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 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.

4/27/2022 8:00:00 AM
Cannara Biotech Inc. Reports Fiscal First Quarter 2022 Financial Results
Print item:Cannara Biotech Inc. Reports Fiscal First Quarter 2022 Financial Results  View PDF item:Cannara Biotech Inc. Reports Fiscal First Quarter 2022 Financial Results
  • Strong execution leads to third consecutive quarter of positive Adjusted EBITDA

  • Company recorded quarterly revenues of $6.6 million

  • Growing operations initiated at new Valleyfield Facility

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

MONTREALJanuary 20, 2022 /CNW Telbec/ – 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 Que bec spanning over 1,650,000 sq. ft., today announced its fiscal first quarter of 2022 financial and operating results for the three-month period ended November 30, 2021.

First fiscal Quarter of 2022 Financial and Operational Highlights

Financial

  • Posted quarterly revenues of $6.6 million;
  • Recorded a gross profit before fair value adjustments of $3.0 million or 46%;
  • Achieved third consecutive quarter of positive Adjusted EBITDA ($1.2 million) while sustaining the start-up costs for the production ramp-up of the new Valleyfield Facility;
  • Decreased net loss to $500 thousand compared to a net loss of $3.5 million in the same quarter of 2021;
  • Increased bank facility from $5.4 million to $22 million and ended quarter with cash position of $14 million after reimbursement of $12 million of higher cost debt;
  • Increased working capital to $18.7 million from a working capital of $12.4 million as at August 31, 2021;
  • Granted an aggregate total of 7,935,000 stock options to certain employees and board members at an exercise price of $0.18 per common share, subject to certain vesting conditions.

Operational

“Following our solid year-end results, we delivered strong financial performance for the First Fiscal Quarter of 2022 resulting from our focus and execution of delivering premium-grade cannabis products to the market at competitive retail prices,” commented Zohar Krivorot, President & Chief Executive Officer of Cannara. “We are at a pivotal point in Cannara’s brief but successful history as we are laser focused on delivering premium products at disruptive pricing while significantly increasing production by starting up our Valleyfield Facility. We have made significant improvements to the facility and the results have been extremely positive through our initial grow. We also continue to see increased demand for our products and, as we move forward in 2022, our mission is to increase our production capacity to help meet that unmet and growing demand while further driving shareholder value.”

Nicholas Sosiak, Chief Financial Officer of Cannara commented, “As we continue to execute on our stated business strategy, we continue to hit the milestones that we have laid out for the Company. Our third consecutive quarter of positive Adjusted EBITDA was achieved while ramping up production at Quebec’s largest cannabis operation which is a testament to our dedicated team committed to producing the highest quality product while controlling costs. There remains a massive opportunity just in Quebec given the modest number of retail outlets and as the Quebec market continues to expand and as Cannara has production capacity to services other markets, we are very well positioned to capitalize on this demand and to continue to gain market share.”

  • New Health Canada license to sell cannabis derivative products to retail market;
  • Received Health Canada processing and cultivation license for Valleyfield Facility;
  • Expanded into Ontario market with five skus listed at the Ontario Cannabis Store;
  • Propagated 9,600 plants in 1 of its 24 zones at the Valleyfield Facility, each measuring 25,000 square feet, which has been redesigned to replicate indoor growing conditions without utilizing sunlight;
  • Subsequent to November 30, 2021, Cannara completed the propagation of its second zone with 9,600 plants given positive results from first zone;
  • Launched two new hash products within the Nugz brand in Quebec retail stores: Old School Hash in a 3-gram bar and Ice Water Hash in a 1-gram temple ball.

 

 

 

Outstanding Shares

As at the date of this report, the Company had 876,481,321 common shares and 40,635,583 stock options issued and outstanding. For further information, the complete Audited Consolidated Financial Statements and Management’s Discussion and Analysis for the three-month periods ended November 30, 2021 and 2020, along with additional information about the Company and all of its public filings 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 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 craft-cultivated 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.

_______________________

1

Gross revenue included revenue from sale of goods, net of excise taxes and lease revenues.

2

Gross profit before fair value adjustments % is determined as Gross profit before fair value adjustments divided by Total revenues.

3

Gross profit (loss) % is determined as Gross profit (loss) divided by Total revenues.

4

Net income (loss) % is determined as Net income (loss) divided by Total revenues.

5

Adjusted EBITDA, Adjusted EBITDA % and working capital are non-GAAP financial performance measures.
A reconciliation of these measures is presented in the Company’s MD&A.
Adjusted EBITDA % is determined as Adjusted EBITDA divided by total revenues.

6

Working capital is determined as total current assets minus total current liabilities.

  

1

Adjusted EBITDA is a non-GAAP financial performance measure.

 

 

SOURCE Cannara Biotech Inc.

1/20/2022 2:20:00 PM

 

2021
Cannara Biotech Inc. Reports Fourth Quarter and Fiscal Year 2021 Results
Print item:Cannara Biotech Inc. Reports Fourth Quarter and Fiscal Year 2021 Results  View PDF item:Cannara Biotech Inc. Reports Fourth Quarter and Fiscal Year 2021 Results

Fiscal 2021 revenues of $17.3 million, gross profit of $10.5 million or 61% and an Adjusted EBITDA of $1.5 million, strong indicators of Cannara’s performance and successful operating strategy

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

MONTREALDec. 8, 2021 /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 cultivation facilities based in Québec spanning over 1,650,000 sq. ft., today announced its fourth quarter and fiscal year 2021 financial and operating results for the three and twelve-month periods ended August 31, 2021.

 

Driven by premium “AAAA” grade cannabis, disruptive pricing and exceptional consumer response to world-class products, the Company accomplished significant growth in 2021 from the commercialization of its cannabis operation in Quebec. As a result, the Company increased its total yearly gross revenue compared to prior year by 565%, from $2.6 million to $17.3 million and its fourth quarter gross revenue compared to fourth quarter of 2020 by 957%, from $613 thousand to $6.5 million, generating net income of $1.1 million and an Adjusted EBITDA of $1.4 million for a second consecutive quarter of profitability. With the initiation of commercial sales in Q2 2021 and the acquisition of the Valleyfield Facility, Cannara is well-positioned for national growth in 2022.

Selected Financial Highlights

    
 

Three-month periods ended

 

Years ended

Selected Financial Highlights

August 31,
2021

August 31,
2020

 

August 31,
2021

August 31,
2020

      

Gross revenue1

$

6,270,006

$

541,149

 

$

16,290,045

$

2,474,741

Other income

211,733

72,206

 

976,960

104,202

 

6,481,739

613,355

 

17,267,005

2,578,943

      

Gross profit, before fair value adjustments

3,440,799

49,368

 

8,741,484

1,665,824

%

53%

8%

 

51%

65%

Gross profit

4,526,126

(433,060)

 

10,543,099

1,252,509

%

70%

-71%

 

61%

49%

      

Operating expenses

2,959,432

3,052,222

 

10,285,816

13,204,839

Net finance expense

434,851

423,898

 

1,785,426

1,142,025

      

Net income (loss)

$

1,131,843

$

(3,909,180)

 

$

(1,528,143)

$

(13,094,355)

%

17%

-637%

 

-9%

-508%

      

Adjusted EBITDA2

$

1,364,415

$

(1,426,734)

 

$

1,503,621

$

(8,317,761)

%2

21%

-233%

 

9%

-323%

      

Basic earnings (loss) per share

$

0.01

$

(0.01)

 

$

(0.01)

$

(0.02)

Diluted earnings (loss) per share

$

0.01

$

(0.01)

 

$

(0.01)

$

(0.02)

      
      
 

August 31, 2021

 

August 31, 2020

      

Cash

 

$

8,159,305

  

$

7,771,177

Accounts receivable

 

2,847,725

  

26,370

Biological assets

 

1,902,206

  

1,313,370

Inventory

 

5,508,258

  

928,351

      

Working capital

 

12,412,935

  

7,052,904

      

Total assets

 

92,022,613

  

54,850,428

Total current liabilities

 

6,833,798

  

3,476,952

Total non-current liabilities

 

27,906,801

  

16,485,567


1Gross revenue included revenue from sale of goods, net of excise taxes, and lease revenues.

2Adjusted EBITDA and Ajdusted EBITDA % is a non-IFRS financial performance measure.

Full Year 2021 Financial Highlights:

Financial

  • Delivered a total revenue of $17.3 million, an increase of $14.7 million from the year prior;
  • Gross profit of $10.5 million or 61%, representing an increase of $9.3 million from the year prior;
  • Operating expenses down by $2.9 million compared to prior year;
  • Adjusted EBITDA amounted to $1.5 million, an increase of $9.8 million from the year prior;
  • Net loss amounted to $1.5 million, a significant decrease of $11.6 million from a net loss of $13.1 million in the prior year;
  • Cash on hand of $8.2 million, an increase of $0.4 million from year prior. The Company supported the Cannabis operations for the first half of the fiscal year until it commercialized its products. In addition, the Company received financing and invested in the acquisition of the Valleyfield Facility and related capital expenditures;
  • Working capital of $12.4 million provides the Company with liquidity to execute on its strategy.

Q4 2021 Financial and Operating Highlights:

Financial

  • Delivered a total revenue of $6.5 million, an increase of $5.9 million from $0.6 million in the fourth quarter of 2020;
  • Gross profit of $4.5 million or 70%, representing an increase of $4.9 million from the year prior;
  • Adjusted EBITDA amounted to $1.4 million, an increase of $2.8 million from a negative adjusted EBITDA of $1.4 million in the fourth quarter of 2020;
  • Net income amounted to $1.1 million, an increase of $5.0 million from a net loss of $3.9 million in the fourth quarter of 2020;
  • Completed a non-brokered private placement of $24.3 million and convertible debenture raise of $5.7 million to finance the acquisition of the Valleyfield Facility. In addition, the Company converted its $5 million credit facilities bearing interest at 13% into a $5 million convertible debenture bearing interest at 4% and convertible into common shares at a price of $0.18 per share.

Operating Highlights:

  • Acquired the Valleyfield Facility: a 1 million sq. ft. cultivation and manufacturing facility from The Green Organic Holdings Ltd. (“TGOD”), for $27 million plus funding of certain deposit requirements of approximately $5.7 million by a letter of credit. The Valleyfield Facility received its cultivation license in September 2021 and propagated its first 9,600 plants in November 2021;
  • Expanded to the Saskatchewan market during the quarter;
  • Introduced new SKUs to the Quebec market: Cuban Linx and Do-Si-Dos (Tribal Brand) and CBD Runtz (Orchid CBD brand) in both 3.5 gram dry flower ad 2.5 gram pre-roll formats;
  • Sold approximately 1,696 kg of cannabis during the fourth quarter of 2021.

Highlights Subsequent to Fourth Quarter

  • Secured additional bank credit amounting to $22 million increased from a previous loan of $5.4 million with Canadian Imperial Bank of Commerce (“CIBC”);
  • Expanded to Ontario market;
  • Launched two new hash products within the Nugz brand in Quebec retail stores; Old School Hash in a 3-gram bar and Ice Water Hash in a 1-gram temple ball;
  • Granted an aggregate total of 7,935,000 stock options to certain employees and board members at an exercise price of $0.18 per common share, subject to certain vesting conditions.

Executive Team Appointments

  • Nicolas Dupuis joins the Company with 25 years of progressive operations leadership experience in global manufacturing in the pharmaceutical industry, assumed office as Vice President, Supply Chain to spearhead supply chain strategy and further streamline business operations;
  • Brian Sherman joins the Company as Vice President, Legal Affairs to lead strategic advice in regulatory compliance matters. Sherman brings industry experience having served as a senior member of the legal team at Canopy Growth.

CEO and CFO Commentaries

“Our impressive increase in revenue this quarter and incredible overall results for this year demonstrate a year of sustained growth and profitability, one which continued to drive our net income and adjusted EBITDA up,” said Zohar Krivorot, President & Chief Executive Officer of Cannara. “Our three flagship brands carved unique niches in the industry, offering handcrafted, hang-dried, slow-cured and hand-trimmed cannabis with the flower’s natural properties intact. The consumer response to these products outperformed even our expectations, as we saw a remarkable increase in both new and loyal customers embracing the dynamism of our product portfolio. We are also thrilled by the continued expansion of our Cannara family, as we increasingly rely on purpose-driven leaders whose talent for strategy shape the organization’s competencies. Over the course of the next fiscal, we are well-positioned for national growth and will continue to seek opportunities that support our mission, allocating efforts to existing and new activities.”

“Our tremendous growth was driven by strategic retail activities in Québec, combined with well-thought-out operational development investments, the cultivation and sale licenses of our two mega facilities, and the cannabis revenues generated during the second half of 2021,” said Nicholas Sosiak, Chief Financial Officer of Cannara. “The incredible performance, strong balance sheet and increase in gross profit all underscore our long-term growth strategy and commitment to our customers, against the backdrop of strong demand for our products. As we continue to generate profitable growth and outsized returns, we will move forward from a position of financial strength and are ideally positioned to showcase continued positive Adjusted EBITDA.”

Fiscal 2022 Outlook

Looking ahead, the Company expects to optimize the additional debt financing from CIBC to finalize the redesign of several zones at the Valleyfield Facility to replicate the indoor cultivation environment, including growing without utilizing the sun and launch the operations at the site.

The first 25,000 square foot zone was propagated with 9,600 plants in November 2021 and next 25,000 square foot zone is planned to be propagated in January 2022.

The Company also anticipates that its existing cash resources of $8.2 million (as at August 31, 2021), along with the forecasted cashflows and financing that occurred subsequent to year-end, will enable it to fund its planned operating expenses for at least the next twelve months from August 31, 2021.

Over the course of the next fiscal year, the Company plans to allocate efforts towards several transformative milestones as a part of its long-term strategy:

  • Increased cannabis supply through the propagation of six rooms in the Valleyfield facility;
  • Market release of new cannabis genetics into market;
  • Accelerated Hash production & introduction of new Hash blends into market;
  • Construction of a butane hash oil extraction lab, and launch of a vape cart product line;
  • Further penetration of Québec and Ontario markets, and expansion into new territories;
  • Continued positive Adjusted EBITDA.

Outstanding Shares

As at the date of this report, the Company had 876,481,321 common shares and 44,199,333 stock options issued and outstanding. For further information, the complete Audited Consolidated Financial Statements and Management’s Discussion and Analysis for the three and twelve-month periods ended August 31, 2021 and August 31, 2020, along with additional information about the Company and all of its public filings 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 premium-grade cannabis and cannabis-derivative products for the Québec and Canadian markets. Cannara owns two mega cultivation 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 craft-cultivated 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.

12/8/2021 8:00:00 AM

 

Cannara Biotech Inc. upsizes CIBC Credit Facility to $22 Million
Print item:Cannara Biotech Inc. upsizes CIBC Credit Facility to $22 Million  View PDF item:Cannara Biotech Inc. upsizes CIBC Credit Facility to $22 Million

Refinancing will decrease the Company’s overall debt servicing costs to 4.3%

MONTREALDec. 1, 2021 /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 cultivation facilities based in Québec spanning over 1,650,000 sq. ft., today announced the refinancing and upsizing of its current bank credit facility to $22 million from $5.4 million with the primary use of additional funds to be allocated to the repayment of existing higher interest debt and capital expenditure at the Valleyfield facility to fund and accelerate new growing capacity. The existing credit agreement with Canadian Imperial Bank of Commerce (“CIBC”) has been amended and restated without additional asset security.

 

“The significant increase in funds and decrease in debt servicing costs from this upsizing reflects our disciplined capital structure and operating strategy,” said Nicholas Sosiak,Chief Financial Officer of Cannara. “The additional capital provided by CIBC under the credit facility leverages only our Farnham Facility while providing additional liquidity as we continue to convert our Valleyfield Facility into an indoor cultivation site to ensure increased capacity and consistent product quality at our facilities. As we continue to invest in capital expenditures, our target to maintain positive quarterly Adjusted EBITDA remains unchanged.”

Key highlights:

  • Refinanced existing credit facility of $5.4M with CIBC to $22M without additional asset security.
  • The Company’s cost of debt decreased from 6.7% to 4.3%.
  • Funds to be used for Valleyfield capital expenditures to achieve increased market penetration and profitability.

About Cannara Biotech Inc.

Cannara Biotech Inc. (TSXV: LOVE) (OTCQB: LOVFF) (FRA: 8CB) is a vertically integrated producer of premium-grade cannabis and cannabis-derivative products for the Quebec and Canadian markets. Cannara owns two mega cultivation facilities based in Quebec spanning over 1,650,000 sq. ft., providing the Company with 125,000kg of potential annualized cultivation output. Leveraging Quebec’s low electricity costs, Cannara’s facilities produce craft cultivated premium-grade cannabis products at an affordable price. For more information, please visit cannara.ca.

Neither 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.

12/1/2021 8:30:00 AM

 

Cannara’s Valleyfield Facility Receives Processing and Cultivation License
Print item:Cannara's Valleyfield Facility Receives Processing and Cultivation License  View PDF item:Cannara's Valleyfield Facility Receives Processing and Cultivation License

10 000 plants to be propagated in the re-designed Valleyfield zones to replicate indoor growing conditions

MONTREALSept. 27, 2021 /CNW Telbec/ – 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 cultivation facilities based in Quebec spanning over 1,650,000 sq. ft., today announced that it has received the license for cultivation and processing at its one million square foot cultivation and manufacturing facility in Valleyfield, Quebec (“Valleyfield Facility” or “Valleyfield“).

 

The majority of zones in the recently acquired greenhouse are being repurposed as an indoor facility to achieve the same growing conditions as Cannara’s Farnham Facility, home of Tribal, Orchid CBD and Nugz. In the Company’s first quarter in market, product sales surpassed $7M with supply capabilities as the limiting factor. This ready build facility will allow the company to fast-track time to market and will significantly increase product supply bolstering the company’s revenues and footprint into new markets.

Highlights:

  • The first 10,00 plants will be propagated in the first week of November 2021;
  • The fully licensed and automated Valleyfield Facility outfitted with climate control and growing systems is comprised of 24 independent growing zones. Cannara will continue to strategically activate these zones to meet the significantly growing cannabis demand in Quebec;
  • Cannara has redesigned the independent growing zones at the Valleyfield Facility to replicate indoor growing conditions including growing without utilizing the sun and to apply standard operating procedures used at its Farnham Facility to maintain consistency and quality of its product.

“By recreating an indoor environment and growing without natural sunlight, we can achieve absolute consistency and increase our production of premium-grade cannabis products in Valleyfield,” said Zohar Krivorot, President & Chief Executive Officer of Cannara Biotech Inc. “Securing the license for Valleyfield in the span of three months since acquisition is a testament of our commitment and determination to grow Cannara. We believe strongly in our model, to deliver the highest quality at some of the most affordable prices to consumers.”

About Cannara Biotech Inc.
Cannara Biotech Inc. (TSXV: LOVE) (OTCQB: LOVFF) (FRA: 8CB) is a vertically integrated producer of premium-grade cannabis and cannabis-derivative products for the Quebec and Canadian markets. Cannara owns two mega cultivation facilities based in Quebec spanning over 1,650,000 sq. ft., providing the Company with 125,000kg of potential annualized cultivation output. Leveraging Quebec’s low electricity costs, Cannara’s facilities produce craft cultivated premium-grade cannabis products at an affordable price. For more information, please visit cannara.ca.

Neither 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.

9/27/2021 8:00:00 AM

 

Cannara Biotech Inc. Receives Amendment of its Licence from Health Canada Permitting the Sale of Cannabis 2.0 Products and Prepares for the Launch of its Hash Product Line in Quebec
Print item:Cannara Biotech Inc. Receives Amendment of its Licence from Health Canada Permitting the Sale of Cannabis 2.0 Products and Prepares for the Launch of its Hash Product Line in Quebec  View PDF item:Cannara Biotech Inc. Receives Amendment of its Licence from Health Canada Permitting the Sale of Cannabis 2.0 Products and Prepares for the Launch of its Hash Product Line in Quebec

 

MONTREALSept. 2, 2021 /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 Quebec-based mega cultivation facilities spanning over 1,650,000 sq. ft., today announced it has received an amendment of its License from Health Canada, permitting the sale of Cannabis 2.0 products for which the Company intends to use to commercialize hash and other solventless concentrates, solvent-based concentrates, vaporizers, tinctures and topicals.

Cannara is excited to announce the first expansion of its Nugz product line: OId School Hash and Ice Water Hash. These two products will first be launched in Quebec and have been specifically formulated for the Quebec market to provide quality hash that contains less than 30% THC. Both products are expected to be available to consumers in the Fall and will be offered in rotating genetics to provide a choice of flavours, terpenes and cannabinoid concentrations from the company’s library of rare strains.

 

Nugz Old School Hash is a traditional hash produced using age-old sieving methods and drawn from rare cannabis strains, dry-sifted, gently heated, and pressed into a consistent, sticky, malleable resin. Old School Hash will be available in three-gram bars.

Nugz Ice Water Hash is a bubble hash derived from carefully selected single-source THC and CBD indoor-grown whole bud, extracted through ice water to deliver true-to-strain terpene profiles. Ice Water Hash will be available in one gram temple balls.

Quebec is our primary target market and our immediate focus was to develop, for Quebec, a hash product line that offers quality products while respecting the current regulation of containing no more than 30% THC,” said Nicholas Sosiak, Chief Financial Officer. “The launch of our new hash line is an incredible milestone for the Cannara team, following many months of extensive research and development to bring these products to life.”

Cannara reaches new Canadians through expansion to Ontario and Saskatchewan

Building on its success in the Quebec market, Cannara has expanded to Ontario and Saskatchewan, extending its reach to a new segment of consumers and marking a significant milestone in the Company’s mission to become a leading Canadian cannabis producer. Dried flower and pre-roll products from Cannara’s existing Tribal and Nugz lines are currently available at cannabis retailers across Saskatchewan, with the existing Tribal, Orchid CBD and Nugz product lines expected to launch in Ontario starting mid-September 2021.

About Cannara Biotech Inc.

Cannara Biotech Inc. (TSXV: LOVE) (OTCQB: LOVFF) (FRA: 8CB) is a vertically integrated producer of premium-grade cannabis and cannabis-derivative products for the Quebec and Canadian markets. Cannara owns two mega Quebec-based facilities spanning over 1,650,000 sq. ft., providing the Company with 125,000kg of potential annualized cultivation output. Leveraging Quebec’s low electricity costs, Cannara’s facilities produce craft cultivated premium-grade cannabis products at an affordable price. For more information, please visit cannara.ca.

Neither 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.

9/2/2021 8:00:00 AM

 

Cannara Biotech Inc. Reports Strong First Quarterly Profit Driven by Retail Debut
Print item:Cannara Biotech Inc. Reports Strong First Quarterly Profit Driven by Retail Debut  View PDF item:Cannara Biotech Inc. Reports Strong First Quarterly Profit Driven by Retail Debut

Third quarter revenue of $7.2 million, gross profit of $4.4 million, and net income of $1.7 million
showcases success of market strategy and operating model

MONTREALJuly 28, 2021 /CNW Telbec/ – 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 Quebec-based mega cultivation facilities spanning over 1.65 million sq. ft., announced today its third quarter financial and operating results for the three and nine month periods ended May 31, 2021. All financial results are reported in Canadian dollars, unless otherwise noted.

 

Third Quarter 2021 Highlights

  • Total revenue of $7.2 million, including $5.9 million in cannabis sales, net of excise tax.
  • Gross profit of $3.5 million or 49% and $4.4 million or 62% after fair value adjustments.
  • Operating expenses are down by 27% to $2.2 million in Q3 2021 from $3.0 million in Q3 2020.
  • Adjusted EBITDA of $1.7 million or 23%.
  • Net income of $1.7 million or 24%.
  • Sold approximately 1,400 kg of cannabis it had in inventory from previous harvests for a total value of $1,265,000.
  • Uplisted to the TSX Venture (TSXV) from the Canadian Stock Exchange (CSE) on April 8, 2021, reflecting Company’s maturity and the commercialization of its operational strategy.

“This quarter’s results are a testament to our strategy’s efficacy and management’s focus,” said Zohar Krivorot, President & Chief Executive Officer of Cannara. “With impressive revenue generation in our first full quarter of sales in retail market, the closing of our additional $5 million private placement and headline acquisition of our latest one million square foot facility in Valleyfield, we are now positioned among the country’s leading cannabis producers.”

“Our positive net income and strong gross margins confirm our operational excellence, uniquely lean company structure, and continued growth,” said Nicholas Sosiak, Chief Financial Officer of Cannara. “Cannara’s core competence is our differentiated model that underscores our ability to excel at maximizing the use of our resources. We are executing against this proven model, as we continue to scale our business in the next chapter of our growth roadmap.”

Highlights Subsequent to Quarter End

  • Acquired a one million sq. ft. state-of-the-art cultivation facility from The Green Organic Dutchman Ltd. (“TGOD”) for $27 million, providing Cannara the ability to reach an annual cultivation capacity of 125,000 kg of premium-grade cannabis.
  • Closed private placements of $24.3 million priced at a premium to the market price at time of the transaction and $5.7 million in convertible debentures bearing interest at 4% to fund the acquisition of the Valleyfield facility and related working capital expenditures.
  • Converted the Company’s existing $5 million credit facilities bearing interest at 13% into a convertible debenture bearing 4% interest and subject to a statutory hold period of four months and one day from the date of issuance.
  • Granted an aggregate total of 425,000 stock options to certain employees at an exercise price of $0.18 per common share, subject to certain vesting conditions.
  • Launched an additional six SKUs in market under the Tribal and Orchid CBD brands in June 2021.
  • Released three new cannabis genetics, Cuban Linx, Do-Si-Dos, CBD Runtz, in dried flower and pre-roll formats.

 

 

Three-month periods ended

 

Nine-month periods ended

Selected Financial Highlights

May 31,
2021

May 31,
2020

 

May 31,
2021

May 31,
2020

      

Gross revenue1

$

6,716,598

$

751,509

 

$

10,020,039

$

1,933,592

Other income

442,733

12,397

 

765,227

31,996

 

7,159,331

763,906

 

10,785,266

1,965,588

      

Gross profit, before fair value adjustments

3,506,278

646,628

 

5,300,685

1,616,456

%

49%

85%

 

49%

82%

Gross profit

4,419,124

715,741

 

6,016,973

1,685,569

%

62%

94%

 

56%

86%

      

Operating expenses

2,159,809

2,974,501

 

7,326,384

10,152,617

Net finance expense

561,513

248,343

 

1,350,575

718,127

      

Net income (loss)

$

1,697,802

$

(2,507,103)

 

$

(2,659,986)

$

(9,185,175)

%

24%

-328%

 

-25%

-467%

      

Adjusted EBITDA

$

1,671,974

$

(2,215,049)

 

$

(966,307)

$

(6,891,027)

%

23%

-290%

 

-9%

-351%

      

Basic earnings (loss) per share

$

0.01

$

(0.01)

 

$

(0.01)

$

(0.01)

Diluted earnings (loss) per share

$

0.01

$

(0.01)

 

$

(0.01)

$

(0.01)

      
 

May 31, 2021

 

August 31, 2020

      

Cash

 

$

5,563,680

  

$

7,771,177

Accounts receivable

 

2,394,169

  

26,370

Biological assets

 

2,187,590

  

1,313,370

Inventory

 

3,368,714

  

928,351

      

Working capital

 

9,165,402

  

7,052,904

      

Total assets

 

57,925,722

  

54,850,428

Total current liabilities

 

4,697,602

  

3,476,952

Total non-current liabilities

 

16,732,890

  

13,008,615

      
      

1Gross revenue included revenue from sale of goods, net of excise taxes, and lease revenues.

 

A copy of the Management Discussion & Analysis and Financial Statements for Q3 2021 can be downloaded from Cannara’s SEDAR profile and on investors.cannara.ca.

About Cannara Biotech Inc.

Cannara Biotech Inc. (TSXV: LOVE) (OTCQB: LOVFF) (FRA: 8CB) is a vertically integrated producer of premium-grade cannabis and cannabis-derivative products for the Quebec and Canadian markets. The Company’s main focus is to deliver craft-quality “AAAA” products at disruptive retail pricing, continuous rotation of rare genetics, community responsiveness and transparency to collectively add to its value proposition. Leveraging the provinces low electricity and labor rates, Cannara owns two mega Quebec-based facilities spanning over 1,650,000 sq. ft., providing up to 125,000kg of annualized cultivation output. For more information, please visit cannara.ca.

Neither 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.

7/28/2021 8:30:00 AM

 

Cannara Biotech Inc. Completes Additional $5 Million Private Placement
Print item:Cannara Biotech Inc. Completes Additional $5 Million Private Placement  View PDF item:Cannara Biotech Inc. Completes Additional $5 Million Private Placement

MONTREALJuly 9, 2021 /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 Quebec-based mega cultivation facilities spanning over 1,650,000 sq. ft., today announced that it has closed an additional $5 million private placement at an issue price per share of $0.18, resulting in the issuance of 27,777,778 new common shares in the capital of the Company. This follows the Company’s previously-announced acquisition of the one million square foot licensed cultivation and manufacturing facility in Valleyfield, Quebec and the two non-brokered private placements which through a combination of common shares and a convertible debentures raised a total of $25 million to pay, in part, for the cost of the acquisition.

 

The Company also intends to convert its current $5 million credit facility with Olymbec Investments Inc. (“Olymbec”), which bears interest at a rate of 13% per annum (the “Credit Facility”), into a convertible debenture bearing interest at a rate of 4% per annum and convertible into common shares of the Company at a conversion price of $0.18 per share, resulting in the potential issuance to Olymbec of an additional 27,777,778 common shares. The proposed convertible debenture will have a suspended right of conversion, pending the obtaining of the consent of disinterested shareholders. If such conversion option is exercised and consent is obtained, a new “control person” of the Company would be created, resulting from the conversion of the $5,000,000 convertible debenture described above, as well as the $5,700,000 convertible debenture previously issued to Olymbec. The conversion of such debentures and the resulting issuance of 59,444,445 common shares to Olymbec would increase the number of common shares owned and controlled by Olymbec to 220,576,139, or approximately 23.57% of the Company’s issued and outstanding shares.

About Cannara Biotech Inc.

Cannara Biotech Inc. (TSXV: LOVE) (OTCQB: LOVFF) (FRA: 8CB) is a vertically integrated producer of premium-grade cannabis and cannabis-derivative products for the Quebec and Canadian markets. Cannara owns two mega Quebec-based facilities spanning over 1,650,000 sq. ft., providing the Company with 125,000kg of potential annualized cultivation output. Leveraging Quebec’s low electricity costs, Cannara’s facilities produce craft cultivated premium-grade cannabis products at an affordable price. For more information, please visit cannara.ca.

Neither 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.

7/9/2021 8:30:00 AM

 

Cannara Biotech Inc. Reports Preliminary Results Ahead of Third Quarter 2021
Print item:Cannara Biotech Inc. Reports Preliminary Results Ahead of Third Quarter 2021  View PDF item:Cannara Biotech Inc. Reports Preliminary Results Ahead of Third Quarter 2021

Preliminary results from first commercial quarter in market show successful market launch in Quebec

MONTREALJune 28, 2021 /CNW Telbec/ – Cannara Biotech Inc. (“Cannara” or the “Company”) (TSXV: LOVE) (OTCQB: LOVFF) (FRA: 8CB), is pleased to announce preliminary unaudited revenue results for the three-month period ended May 31, 2021, marking the retail debut for the Company.

 

“Our market launch results reaffirm that our brand strategy is working and will deliver long-term value for our shareholders,” said Zohar Krivorot, President & Chief Executive Officer of Cannara. “Cannara intimately understands the quality and pricing that today’s modern consumer deserves, and we look forward to expanding our market reach with added capacity from the acquisition of our Valleyfield facility.”

“We could not be more pleased with our preliminary results which validates our capabilities and foresight  in responding to consumer demand,” said Nicholas Sosiak, Chief Financial Officer of Cannara. “As a part of our strategy to expand our market reach, our acquisition of the Valleyfield facility was driven by our anticipation of the tremendous growth in revenue over this past quarter.”

Preliminary Third Quarter 2021 Highlights

  • The Company expects total revenue, net of excise tax, for the third quarter ended May 2021 to be approximately $7.1 million, representing a $5.1 million increase compared to the second quarter of 2021.
  • Cannabis revenue, net of excise tax, from products destined for retail is expected to be in the range of $3.2 to $3.4 million for the quarter.
  • Cannabis revenue from wholesale supply agreements is expected to be in the range of $2.8 to $2.9 million up from $1.1 million the previous quarter.
  • Lease revenue is expected to be approximately $0.8 million for the quarter.

Results were driven by strong consumer response to premium-quality cannabis launched at disruptive pricing in March 2021, as well as increased demand for product through our wholesale supply agreements.  The Company initially introduced 7 unique SKUs under three flagship brands; Tribal, Nugz, and Orchid CBD.  With the acquisition of its Valleyfield facility, output capacity has the potential of  reaching 125,000kg per annum. This will allow the Company to introduce additional SKUs and accelerate its genetic rotation mix.

Outlook and Full Q3 2021 Results

Looking ahead, Cannara expects to begin work on its Valleyfield facility to further increase the supply of products to meet current demand in Quebec.The Company recently launched new cannabis genetics, including its well-received Cuban Linx and Do-Si-Dos strains in June 2021, and intends on releasing additional strains as well as a new line of hash products.

Cannara expects to announce its third quarter financial and operating results in full by July 30, 2021.

Cannara’s CFO, Nicholas Sosiak, will be a guest speaker at the 2021 KCSA Cannabis Virtual Investor Conference on June 30 at 11:30 a.m. ET and will be available to answer investor and analysts’ questions. To register for the conference, please visit the event’s KCSA’s registration page.

About Cannara Biotech Inc.

Cannara Biotech Inc. (TSXV: LOVE) (OTCQB: LOVFF) (FRA: 8CB) is a vertically integrated producer of premium-grade cannabis and cannabis-derivative products for the Quebec and Canadian markets. Cannara owns two mega Quebec-based facilities spanning over 1,650,000 sq. ft., providing the Company with 125,000kg of potential annualized cultivation output. Leveraging Quebec’s low electricity costs, Cannara’s facilities produce craft cultivated premium-grade cannabis products at an affordable price. For more information, please visit cannara.ca.

Neither 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.

6/28/2021 8:35:00 AM

 

Cannara Biotech Inc. Completes Acquisition of TGOD’s State-of-the-art Cultivation and Manufacturing Facility in Valleyfield, Quebec
Print item:Cannara Biotech Inc. Completes Acquisition of TGOD's State-of-the-art Cultivation and Manufacturing Facility in Valleyfield, Quebec  View PDF item:Cannara Biotech Inc. Completes Acquisition of TGOD's State-of-the-art Cultivation and Manufacturing Facility in Valleyfield, Quebec

Newly built fully automated one million sq. ft. facility increases Company’s capacity of premium-grade cannabis up to 125,000 kg annually

MONTREALJune 23, 2021 /CNW Telbec/ – 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 has closed its previously-announced acquisition of the one million square foot licensed cultivation and manufacturing facility in Valleyfield, Quebec from Medican Organic Inc., a wholly-owned subsidiary of The Green Organic Dutchman Holdings Ltd. (“TGOD”) through an all-cash offer of $27 million plus the funding of certain deposit requirements of approximately $5.7 million.

 

The acquisition was financed through non-brokered private placements of (i) $19.3 million resulting in the issuance of 107,222,222 new common shares in the capital of Cannara at a price of $0.18 per share (the “Equity Raise“) and (ii) $5.7 million in the form of an unsecured convertible debenture bearing interest at 4% per annum (the “Debenture” and, collectively with the Equity Raise, the “Offerings“). The sole subscriber to the Offerings is Olymbec Investments Inc. (“Olymbec“), a company partially owned/controlled by Mr. Derek Stern, currently a member of the board of directors of Cannara, making this part of the transaction a related party transaction.

Following its acquisition of 107,222,222 common shares of Cannara through the Equity Raise, Olymbec now holds 161,131,694 of common shares, representing 18.98% of Cannara’s issued and outstanding common shares. The conversion price of the Debenture is $0.18 per common share and the number of common shares that could be issued to Olymbec upon conversion would be 31,666,667 common shares potentially increasing the total number of shares to be issued under the Offerings to 138,888,889, which combined with Mr. Stern’s current holdings and the common shares acquired through the Equity Raise, would increase the percentage of Cannara common shares owned and controlled by Mr. Stern, post-Offerings to 192,798,361 or 21.89% of Cannara’s common shares. Until such time that a disinterested shareholder approval is obtained with respect to the establishment of the new Control Person, the conversion right provided in the Debenture is suspended.

The common shares issued pursuant to the Equity Raise, the Debenture and the common shares issued pursuant to the conversion of the Debenture are all subject to a statutory hold period of four months and one day from the date of initial issue. As well, Olymbec has agreed to hold the common shares, the Debenture and any common shares issued on the conversion of the Debenture for at least a period of 12 months following the date of initial issue, well in excess of the mandatory statutory hold period of 4 months. The shares issued pursuant to the Offerings were acquired by Olymbec for investment purposes. Olymbec may in the future increase or decrease its ownership of securities in Cannara as circumstances or market conditions warrant.

This news release is issued pursuant to National Instrument 62-103 – The Early Warning System and Related Take-Over Bid and Insider Reporting Issues. A copy of the early warning report relating to the Offerings will be filed with the applicable securities commissions and made available under Cannara’s profile on www.sedar.com.

About Cannara Biotech Inc.

Cannara Biotech Inc. (TSXV: LOVE) (OTCQB: LOVFF) (FRA: 8CB) is a vertically integrated producer of premium-grade cannabis and cannabis-derivative products for the Quebec and Canadian markets. Cannara owns two Quebec-based mega facilities spanning over 1,650,000 sq. ft., providing the Company with 125,000kg of potential annualized cultivation output. Leveraging Quebec’s low electricity costs, Cannara’s facilities will produce purposefully cultivated premium-grade cannabis products at an affordable price. For more information, please visit cannara.ca.

Neither 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.

6/23/2021 7:00:00 AM

 

Cannara Biotech Inc. Enters into Definitive Agreement to Acquire TGOD’s State-of-the-Art Cultivation and Manufacturing Facility in Valleyfield, Quebec
Print item:Cannara Biotech Inc. Enters into Definitive Agreement to Acquire TGOD's State-of-the-Art Cultivation and Manufacturing Facility in Valleyfield, Quebec  View PDF item:Cannara Biotech Inc. Enters into Definitive Agreement to Acquire TGOD's State-of-the-Art Cultivation and Manufacturing Facility in Valleyfield, Quebec

Newly built fully automated one million sq. ft. facility increases Company’s capacity of premium-grade cannabis up to 125,000 kg annually

MONTREALJune 10, 2021 /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 has entered into a definitive agreement (the “Transaction”) to acquire a one million square foot licensed cultivation and manufacturing facility in Valleyfield, Quebec (“Valleyfield Facility“) from Medican Organic Inc., a wholly-owned subsidiary of The Green Organic Dutchman Holdings Ltd. (“TGOD”), through an all-cash offer of $27 million plus the funding of certain deposit requirements of approximately $5.7 million.

 

“With this acquisition, Cannara continues to increase its footprint and create more jobs in its home province of Quebec,” said Zohar Krivorot, President & Chief Executive Officer of Cannara. “Today’s announcement reinforces our position as one of Canada’s top leading producer of premium-grade cannabis and cannabis derivative products.”

Located in Valleyfield, Quebec, the newly built state-of-the-art facility spans over 1,033,506 sq. ft. providing Cannara the ability to reach an annual cultivation capacity of 125,000 kg of premium-grade cannabis.

“While already marked by a strong balance sheet, we believe that this transaction significantly bolsters our business fundamentals, including annual output, profitability and overall financial position,” said Nicholas Sosiak, Chief Financial Officer of Cannara. “Underlying this acquisition is our confidence in the broader market for competitively priced premium-grade cannabis products and our intention to capture a significant share of it.”

Transaction Highlights

  • Positions Cannara as one of Canada’s top leading cannabis companies: The fully licensed and automated Valleyfield Facility outfitted with climate control and growing systems is comprised of 24 independent growing zones totaling 600,000 sq. ft., a massive 200,000 sq. ft. cannabis 2.0 processing center and a 200,000 sq. ft. rooftop greenhouse. This acquisition positions the Company amongst Canada’s top leading cannabis companies.
  • Operational and cost synergies from proximity of current 605,000 sq. ft. facility located in Farnham, Quebec (“Farnham Facility”): The Valleyfield Facility and Farnham Facility are within one hour drive from each other. The proximity of the Company’s two mega facilities will increase operational efficiencies, reduce costs and offer additional capacity utilization. As both assets are in Quebec, Cannara will continue to benefit from the province’s low cost of electricity. The Company has been granted the “economic development rate” by Hydro-Québec and will therefore receive a reduction in electricity rates until March 31, 2027, which is expected to reduce operating costs at the facilities.
  • Continued growth in market share in QuebecWith two leading facilities in Quebec, the Transaction allows Cannara to continue capturing market share in Quebec, Canada’s second-largest cannabis market.
  • Transaction funded through private equity placement priced at a premium to current market price: The Transaction is majorly funded through a private equity placement at $0.18 cents providing a free and clear title on the Valleyfield Facility.

Subject to customary closing conditions, the transaction is expected to close on June 20, 2021. The property shall remain at the risk of the Vendor until the closing date. BMO Capital Markets acted as exclusive financial advisor to TGOD.

The acquisition will be financed by a non-brokered private placement of up to $35,000,000 of which $25,000,000 has been committed (the “Committed Amount“). Of the Committed Amount, $19.3 million will be in the form of common shares (the “Equity Raise“) and $5.7 million will be in the form of an unsecured convertible debenture (the “Debenture Raise” and, collectively with the Equity Raise, the “Offerings“). The issue price per share for the Equity Raise is $0.18 which would result in an issuance of 107,222,222 new common shares. The sole subscriber to the Equity Raise is Olymbec Investments Inc. (“Olymbec“), a company partially owned/controlled by Mr. Derek Stern, currently a member of the board of directors of Cannara, making this part of the transaction a related party transaction. The number of shares to be issued to Olymbec through the Equity Raise, combined with Mr. Stern’s current holdings, would increase the percentage of Cannara common shares that he owns or controls, post-private placement, to 19%.

A total of $5.7 million will be raised by Cannara through the Debenture Raise via a private placement to Olymbec. The unsecured convertible debenture (the “Debenture“) will bear interest at a rate of 4% per annum, compounded semi-annually and payable along with the principal amount on the third anniversary of their issue. Subject to the approval of the TSX.V, Interest on the Debentures may be payable, at the option of Cannara, by the issuance of common shares at $0.18. The conversion price of the Debenture is $0.18 per common share and the number of common shares that could be issued to Olymbec upon conversion (excluding any interest paid in kind) would be 31,666,667 common shares potentially increasing the total number of shares to be issued under the Offerings to 138,888,889, which combined with Mr. Stern’s current holdings and the common shares acquired through the Equity Raise, would increase the percentage of Cannara common shares that he owns and controls, post-private Offerings to 192,798,361 or 21.89% of Cannara’s common shares. Until such time that a disinterested shareholder approval is obtained with respect to the establishment of the new Control Person, the conversion right provided in the Debenture would be suspended. If the amount of the Offerings exceeds $25,000,000, the Debenture will not be issued, and the full amount of the private placement will be issued in the form of common shares at a price of $0.18 per share.

The participation in the Offerings by Olymbec, may be considered a “related party transaction” (the “Related Party”) as defined under Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions (“MI 61-101”). Cannara has determined that exemptions from the formal valuation and minority shareholder approval requirements under MI 61-101 are available. In particular, Cannara has determined that the exemptions set out in paragraphs (a) and (b) in section 5.5 of MI 61-101 are applicable since the aggregate consideration to be paid by the Related Party does not exceed 25% of the market capitalization of Cannara and Cannara is not listed on the Toronto Stock Exchange, but only on the TSX Venture Exchange. In addition, regarding the minority shareholder approval exemptions, the independent directors have determined that the exemptions set out in paragraphs (1)(a) and (b) in section 5.7 of MI 61-101 are applicable in that the aggregate consideration to be paid by the Related Party does not exceed 25% of the market capitalization of Cannara and Cannara is not listed on the Toronto Stock Exchange, but only on the TSX Venture Exchange.

If only the Committed Amount is raised, the remainder of the funds to complete the acquisition will come from Cannara’s working capital and amendments to its current banking facilities. If the maximum amount of $35,000,000 is raised nearly all of it will be used to finance the acquisition and to pay for certain capital expenditures and transition costs.

About Cannara Biotech Inc.

Cannara Biotech Inc. (TSXV: LOVE) (OTCQB: LOVFF) (FRA: 8CB) is a vertically integrated producer of premium-grade cannabis and cannabis-derivative products for the Quebec and Canadian markets. Cannara owns two Quebec-based mega facilities spanning over 1,600,000 sq. ft., providing the Company with 125,000kg of potential annualized cultivation output. Leveraging Quebec’s low electricity costs, Cannara’s facilities will produce purposefully cultivated premium-grade cannabis products at an affordable price. For more information, please visit cannara.ca.

Neither 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.

6/10/2021 8:04:00 AM

 

Cannara Biotech Delivers Strong Q2 2021 Results
Print item:Cannara Biotech Delivers Strong Q2 2021 Results  View PDF item:Cannara Biotech Delivers Strong Q2 2021 Results

Significant second quarter revenue generation of $1.2 million and gross profit increase to $2.1 million showcases Cannara’s positive trajectory

MONTREAL, QuebecApril 28, 2021 /CNW/ – Cannara Biotech Inc. (“Cannara” or the “Company“) (TSXV: LOVE) (OTCQB: LOVFF) (FRA: 8CB), a vertically integrated producer of indoor cannabis and derivative products with one of the largest indoor cannabis cultivation facilities in Canada and the largest in Quebec, today announced its operating and financial results for the three and six-month periods ended February 28, 2021 and February 29, 2020. All dollar amounts are expressed in Canadian dollars unless otherwise noted.

Second Quarter Highlights

  • Received amended sales licence from Health Canada to allow sales to provincial distributors
  • Successfully launched its three flagship brands – Tribal, Nugz and Orchid CBD – and completed its first retail shipment through the Société québécoise du cannabis (SQDC) on February 25, 2021 and March 4, 2021
  • Total cannabis sales of $1.22 million (net of excise tax) in Q2 2021 compared to nil in the same period of the prior year
  • Gross profit increased from $470 thousand in Q2 2020 to $2.1 million in Q2 2021
  • Operating costs decreased by 33% from Q2 2020 to Q2 2021
  • Secured 100% occupancy of the Company’s Farnham Facility
  • Completed two monthly shipments totalling 399.31 kg of dried cannabis to a wholesale partner under its one-year supply agreement which commenced January 1, 2021

    Highlights Subsequent to Quarter End

  • Transitioned trading activity from the Canadian Stock Exchange (CSE) to the TSX Venture (TSXV) on April 8, 2021 under stock symbol LOVE.V for increased investor awareness
  • Signed significant one-time wholesale agreements to supply approximately 1,400 kg of cannabis for a total value of $1,265,000
  • Achieved first complete month (March 2021) of net revenue generation from retail and wholesale channels of $1.8 million
  • Granted an aggregate total of 110,000 stock options to certain employees at an exercise price of $0.18 per common share, subject to certain vesting conditions
  • Extended maturity date by an additional year on one of the two mortgages

CEO and CFO Commentaries
“2021 has been a transformational year for our business thus far, marked by significant milestones and a strong balance sheet. From receiving our amended sales licence from Health Canada to launching our brand portfolio through the SQDC, we are making meaningful strides to capturing market share in Quebec while positioning ourselves for long-term growth and success across Canada,” said Zohar Krivorot, President & Chief Executive Officer of Cannara Biotech Inc. “Our listing on the TSXV was also a major milestone of our progression that will enhance our profile as a leading producer of premium-grade cannabis products, crafted with the highest-quality genetics and at a price point that Canadians deserve.”

“Cannara is tracking well against our key performance metrics, targets and overall strategic vision. Based on our positive gross profit from our wholesale revenues and one week of retail sales in Q2, I look forward to what we can accomplish in subsequent quarters with the fully realized impact of our retail, wholesale and rental revenue channels,” Nicholas Sosiak, Chief Financial Officer of Cannara Biotech Inc. “Bolstered by the positive reception of our flagship brands and significant wholesale agreements, we are confident in our business’ ability to build sustainable, profitable growth for our shareholders.”

Results of Operations

Cannabis Operations
For the three and six-month periods ended February 28, 2021, the segment generated $1,469,451 and $2,182,419 in revenues, net of excise tax, mainly from its wholesale clients, compared to $19,599 for the same periods of the prior year, resulting in a segmented gross profit before fair value adjustments for the three and six-month periods ended February 28, 2021 of $733,021 and $756,035, representing a gross margin before far value adjustments of 50% and 35%, respectively.

For the three and six-month periods ended February 28, 2021, the segment incurred $1,529,968 and $559,477 in gross profit after fair value adjustments compared to a gross profit after fair value adjustments of $19,599 in the same periods of the prior year, representing a favorable increase of $1,510,369 and $539,878, respectively.

For the three and six-month periods ended February 28, 2021, operating expenses were $2,050,379 and $4,086,700 compared to $2,587,854 and $4,522,784 for the same periods of the prior year. The decrease in operating expenses is mainly attributable to:

  • A decrease of $860,133 and $1,117,483 in general and administrative expenses for the three and six-month periods and a decrease of $170,428 in professional fees for the six-month period; and
  • An increase of $100,493 and $650,887 in research and development; and $133,885 and $200,940 increase in sale and marketing expenses for the three and six-month periods, respectively.

Real Estate Operations
As part of the Company’s capital management strategy, it has leased out all currently unoccupied space in the Farnham Facility. The Company leased 425,480 square feet of the total 625,000 available square feet to two tenants. For the three and six-month periods ended February 28, 2021, the Company generated lease revenues of $752,457 and $1,309,389 compared to $641,480 and $1,169,008 in the same periods of the prior year. The increase in lease operating expenses for the six-month period is attributable to expenses incurred in the first quarter of 2021 to accommodate the new tenant.

The segment net income for the three and six-month periods ended February 28, 2021 was $558,812 and $1,016,897 compared to $451,128 and $949,024 in the same periods of the prior year, resulting in an increase of $107,684 and $67,873 in segment net income.

The Company has a working capital of $7,423,458 as at February 28, 2021, including cash on hand of $4,730,524. The Company has been able to maintain its working capital ratio compared to prior year due to the access to the credit facilities and wholesale revenues generated.

Outstanding Shares
As at the date of this report, the Company had 741,481,321 common shares and 37,391,588 stock options issued outstanding.

For further information, the complete condensed interim consolidated Financial Statements and Management’s Discussion and Analysis for the three and six-month periods ended February 28, 2021 and February 29, 2020, along with additional information about the Company and all of its public filings 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 premium-grade indoor cannabis and cannabis-derivative products for the Quebec and Canadian markets. Its Quebec-based facility is one of the largest indoor cannabis cultivation facilities in Canada and the largest in Quebec (625,000 square feet). Leveraging Quebec’s low electricity costs, the Cannara facility will produce purposefully cultivated indoor premium cannabis flower at an affordable price. For more information, please visit cannara.ca.

Contact:
Nicholas Sosiak, CPA, CA
Chief Financial Officer
nick@cannara.ca

Zohar Krivorot
President & Chief Executive Officer
zohar@cannara.ca

Neither 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.

4/28/2021 9:25:00 AM

 

Cannara Biotech Commences Trading on TSXV on April 8, 2021
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TSXV market listing anticipated to improve visibility of Cannara among the investor community

MONTREALApril 7, 2021 /CNW/ – Cannara Biotech Inc. (“Cannara” or the “Company”) (TSXV: LOVE) (OTCQB: LOVFF) (FRA: 8CB), a vertically integrated producer of premium-grade indoor cannabis and derivative products with one of the largest indoor cannabis cultivation facilities in Canada and the largest in Quebec, today announced its common shares will be listed on the TSX Venture Exchange (the “TSXV”). The common shares of the Company will commence trading on TSXV at the opening on Thursday, April 8, 2021. The Company is presently trading on the Canadian Stock Exchange (“CSE”). At the commencement of trading on the TSXV, the securities of the Company will be delisted from the CSE with no resulting change to the Company’s ticker (LOVE).

“The listing of our common shares on the TSX Venture Exchange is a significant milestone for Cannara,” said Zohar Krivorot, President and CEO of Cannara. “To begin trading on Canada’s leading venture exchange is a milestone achievement for which we are incredibly grateful.  We trust this momentum will continue to add value for our stakeholders as our business to grows.”

“The listing on the TSXV will generate increased investor awareness and will put the Company on the radar of major industry analysts,” said Nicholas Sosiak, Chief Financial Officer. “As the cannabis industry continues to expand and thrive both in Quebec and across Canada, investors are looking for companies with the expertise to lead the way. We at Cannara are excited and willing to assume that leadership.”

“2021 has been a year full of achievements for Cannara, and we’re only just getting started,” added Krivorot.

About Cannara Biotech Inc.

Cannara Biotech Inc. (TSXV: LOVE) (OTCQB: LOVFF) (FRA: 8CB) is a vertically integrated producer of premium-grade indoor cannabis and cannabis-derivative products for the Quebec and Canadian markets. Its Quebec-based facility is one of the largest indoor cannabis cultivation facilities in Canada and the largest in Quebec (625,000 square feet). Leveraging Quebec’s low electricity costs, the Cannara facility will produce purposefully cultivated indoor premium cannabis flower at an affordable price. For more information, please visit cannara.ca.

The CSE nor its Regulation Services Provider 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.

4/7/2021 4:00:00 PM

 

Cannara Biotech Secures Conditional Approval to List on the TSX Exchange
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Anticipated TSXV market listing coincides with the appointment of Nicholas Sosiak to CFO and retail market debut

MONTREALMarch 11, 2021 /CNW/ – Cannara Biotech Inc. (“Cannara” or the “Company”) (CSE: LOVE) (OTCQB: LOVFF) (FRA: 8CB), a vertically integrated Quebec-based producer of premium-grade indoor cannabis and derivative products with one of the largest indoor cannabis cultivation facilities in Canada and the largest in Quebec, today announced that its application to list on the TSX Venture Exchange (TSXV) has received conditional approval.  The conditional approval marks an important step towards Cannara’s goal of building out its operational foundation in 2021 while firmly ensconcing itself as a market leader in the cannabis industry.

 

“Cannara marched into 2021 with a positive trajectory marked by key milestones,” said Zohar Krivorot, President and CEO of Cannara. “We recently received our Health Canada licence, permitting us to sell dried cannabis products to provincial retail distributors, and subsequently enjoyed a successful retail market debut. We are pleased that our commitment to provide consumers with premium-grade cannabis at a reasonable price culminates today with our imminent listing on the TSXV, which will provide our business with greater market visibility and enhanced liquidity for our shareholders as we look ahead to a year of significant growth.”

“Our imminent listing on the TSXV solidifies our position as a respected and successful licensed producer in the Canadian cannabis industry,” said Nicholas Sosiak, Chief Financial Officer. “We look forward to advancing our strategy and maximizing shareholder value in the coming year, bolstered by the unique capabilities that our impressive product pipeline, competitive platform, state-of-the-art facility and best-in-class people bring to bear.”

The TSXV conditional listing approval also coincides with the appointment of Nicholas Sosiak, CPA, CA to Chief Financial Officer and the debut of Cannara’s brand portfolio in QuebecNicholas Sosiak, who previously served as Cannara’s Senior Vice-President of Finance and Operations and subsequently as Interim Chief Financial Officer, has been with Cannara since April 2019.

“Nicholas not only brings a wealth of experience in the financial sector to the Cannara team, but he also has true passion and in-depth understanding of the cannabis industry,” continued Zohar Krivorot, “His unique skillset is a boon for our business, and we look forward to continuing our capture of market share in Quebec and across Canada.”

Cannara’s retail market debut took place in late February and marked an important step forward in commercial revenue generation for the Company while also affirming its reputation as a best-in-class licensed producer in Quebec and Canada. The Company’s three flagship brands in Quebec – Tribal, Nugz and Orchid CBD – have been well-received by consumers in Quebec, selling out most of the inventory in a matter of days.

About Cannara Biotech Inc.

Cannara Biotech Inc. (CSE: LOVE) (OTCQB: LOVFF) (FRA: 8CB) is a vertically integrated Quebec-based producer of premium-grade indoor cannabis and cannabis-derivative products for the Quebec and Canadian markets. Its Quebec-based facility is one of the largest indoor cannabis cultivation facilities in Canada and the largest in Quebec (625,000 square feet). Leveraging Quebec’s low electricity costs, the Cannara facility will produce purposefully cultivated indoor premium cannabis flower at an affordable price. For more information, please visit cannara.ca.

The CSE nor its Regulation Services Provider 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.

3/11/2021 9:00:00 AM

 

Cannara Biotech Launches Cannabis Brand Portfolio Now Available in Quebec – Tribal, Nugz, Orchid CBD
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Cannara’s three new brands – Tribal, Nugz and Orchid CBD

MONTREALFeb. 25, 2021 /CNW/ – Cannara Biotech Inc. (“Cannara” or the “Company”) (CSE: LOVE) (OTCQB: LOVFF) (FRA: 8CB), a vertically integrated producer of indoor cannabis and derivative products with one of the largest indoor cannabis cultivation facilities in Canada and the largest in Quebec, today proudly announces the official launch of its three flagship brands – Tribal, Nugz and Orchid CBD. As of today, consumers will have access to these cannabis products throughout Quebec.

 

Cannara’s new product line consists of three distinct brands each filling a white space in the current cannabis market and offers something new, priced competitively and a continuous rotation of rare genetics. All three brands are grown indoors in a controlled environment, hang-dried, slow cured in barrels and hand-trimmed to preserve the flower’s natural properties.

“Cannara’s retail market debut is an important step forward for the team in our mission to earn our place among the successful and respected cannabis producers in Québec,” said Nicholas Sosiak, Chief Financial Officer. “We are excited to enter the market given recent sales volume and significant growth over the last few months, driven by new store openings and their retail deployment plan. Given that our business operates in a market with limited competition due to high barriers of entry, we are confident in our ability to reach and best serve our end-consumer for the long-term.”

Tribal offers high THC and terpene levels and a continuous rotation of genetic strains, starting with Gelato Mint. As its name suggests, Gelato Mint smells like a fresh mint dessert with pepper notes and earthy pine undertones. Upcoming genetics in the cultivation pipeline include Sundae Driver and Cuban Linx, which will be available in future months. Tribal products are available in 3.5 gram packaging and three 0.5 gram pre-rolls wrapped in organic hemp cones.

Nugz offers a large format of rich flavored, oversized, dense nugs covered in trichomes with elevated THC levels. The primary genetic for Nugz will be Early Lemon Berry. True to its name, Early Lemon Berry features citrus aromas with a distinct lemon flavor thanks to a high percentage of limonene terpenes. Nugz products are available in 28 gram packaging and fourteen 0.6 gram pre-rolls wrapped in organic hemp cones.

Orchid CBD offers a CBD dominant selection of cannabis. Its dried flower will first be launched with the Critical Mass CBD genetic which delivers sweet flavors and floral undertones. Orchid CBD products are available in 3.5 gram packaging and three 0.5 gram pre-rolls wrapped in organic hemp cones.

This announcement marks an important step in Cannara’s commercial revenue generation, following months of building its brand portfolio and taking the necessary strategic measures to ensure proper licensing and readying inventory.  

About Cannara Biotech Inc.

Cannara Biotech Inc. (CSE: LOVE) (OTCQB: LOVFF) (FRA: 8CB) is a vertically integrated producer of premium-grade indoor cannabis and cannabis-derivative products for the Quebec and Canadian markets. Its Quebec-based facility is one of the largest indoor cannabis cultivation facilities in Canada and the largest in Quebec (625,000 square feet). Leveraging Quebec’s low electricity costs, the Cannara facility will produce purposefully cultivated indoor premium cannabis flower at an affordable price. For more information, please visit cannara.ca.

The CSE nor its Regulation Services Provider 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.

2/25/2021 9:49:00 AM
Cannara Biotech Inc. Reports Q1 2021 Financial Results
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– Expects to generate revenue from letter of intent with the Société québécoise du cannabis by end of February or early March 2021

MONTREALJan. 29, 2021 /CNW/ – Cannara Biotech Inc. (“Cannara” or the “Company“) (CSE: LOVE) (OTCQB: LOVFF) (FRA: 8CB) is pleased to announce its financial results for the three-month period ended November 30, 2020. Unless otherwise noted, all dollar amounts are expressed in Canadian dollars.

 

Q1 2021 OPERATIONAL HIGHLIGHTS

  • The Company’s primary focus has been on the key items necessary to prepare the Company to begin generating commercial revenue: cultivation and post-harvest activities; building its brand portfolio; and readying inventory to begin shipping its dried flower products across the province of Quebec. 
  • On November 27, 2020, Cannara signed a one-year wholesale supply agreement under which it agreed to sell 200 kg of cannabis per month to another licensed producer, beginning January 1, 2021.
  • During Q1 2021, Cannara met the revenue threshold required to gain access to an additional $4 million in credit under its current facilities. During the quarter, the Company drew down $1 million on its credit facilities and intends to draw down monthly to support cash flows until anticipated revenue from sales operations commences, expected in February or March 2021. 

HIGHLIGHTS SUBSEQUENT TO QUARTER END

  • On January 8, 2021, Cannara Biotech (Québec) Inc., a wholly owned subsidiary of Cannara, announced it had received its amendment to its licence to allow the Company to sell dried cannabis products to provincial retail distributors. The Company now has the necessary licences to begin the delivery of cannabis products to the Société québécoise du cannabis (“SQDC”) under its existing letter of intent.
  • During January 2021, the Company completed its first shipment of 201.61kg of dried cannabis to its wholesale partner under a one-year supply agreement.
  • Following a lease agreement signed on November 30, 2020, and beginning on January 1, 2021, an existing tenant occupied the last remaining space unutilized by the Company at its Farnham facility. The leasing of unoccupied areas of the facility is a strategy designed to generate additional revenue and to maximize returns on the overall facility.

“Through the end of Q1 2021, we set out to build products and an operational foundation to prepare for both near-term growth in 2021 as well as to support the sustained future growth of our company,” said Zohar Krivorot, President and Chief Executive Officer of Cannara. “Based on the great feedback we have received from wholesale customers on our cannabis, we expect to significantly grow revenue this year as we roll our products out across the province of Quebec through the SQDC. Over the past 12 months we have fine-tuned our cultivation, post-harvest and supply-chain processes to ensure we are ready to scale as we begin to ship commercial levels of volume. We are committed to best-in-class operations and are confident that the foundation we have put in place along with our focused cost discipline will carry us to profitability and generate shareholder returns, as revenue grows.”

RESULTS OF OPERATIONS
For the three-month period ended November 30, 2020, the Company’s cannabis operations segment generated $679,125 in revenue from wholesale transactions and $27,999 in ancillary revenue from the sale of cannabis grown during a period where the Company was still performing research and development activities on its cultivation process. Gross profit from wholesale transactions was $199,663 or 29.4% compared to nil for the same period of the prior year.

As part of the Company’s capital management strategy, the Company has leased out a significant portion of the currently unoccupied space in the Farnham Facility. As at November 30, 2020, The Company leased 333,551 (425,480 square feet as of today) of the total 625,000 available square feet to three tenants. For the three-month period ended November 30, 2020, the Company generated lease revenues of $556,932 compared to $527,528 in the same period of the prior year. The increase is attributable to an augmentation of the rental rate charged to tenants. Net income generated by this segment of $458,085 ($497,896 for the period ended November 30, 2019) and is used to support the commercialization of the cannabis operations.

For the three-month period ended November 30, 2020, the Company reported a total comprehensive loss of $3.5 million or a loss per share of $0.01; compared to $2.9 million or a loss per share of $0.01 in the same period of the prior year.

The Company has a working capital of $4,468,234 as at November 30, 2020 (August 31, 2020 – $7,052,904). This includes cash on hand of $4,070,752 (August 31, 2020 – $7,771,177). The Company expects that its existing cash resources as at November 30, 2020 along with cash received subsequent to quarter-end from its sales and credit facilities will enable it to fund its planned operating expenses for at least the next twelve months.

OUTSTANDING SHARES
As at the date of this report, the Company had 737,839,535 common shares and 39,389,502 stock options issued outstanding.

For further information, the complete condensed interim consolidated Financial Statements and Management’s Discussion and Analysis for the three-month period ended November 30, 2020, along with additional information about the Company and all of its public filings are available at www.sedar.com and the Company’s website, www.cannara.ca.

About Cannara Biotech Inc.
Cannara Biotech Inc. (CSE: LOVE) (OTCQB: LOVFF) (FRA: 8CB) has built one of the largest indoor cannabis cultivation facilities (625,000 square feet) in Canada and the largest in Québec. Leveraging Québec’s low electricity costs, Cannara Biotech Inc.’s facility will produce premium-grade indoor cannabis and cannabis-derivative products for the Québec and Canadian markets. www.cannara.ca

The CSE nor its Regulation Services Provider 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.

1/29/2021 4:05:00 PM
Cannara Biotech Receives Sales Licence from Health Canada
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Cannara to start delivering cannabis products to the Société québécoise du cannabis (SQDC) under its existing Letter of Intent.

MONTREALJan. 8, 2021 /CNW/ – Cannara Biotech Inc.(“Cannara” or the “Company”) (CSE: LOVE) (OTCQB: LOVFF) (FRA: 8CB) is pleased to announce that, through its wholly-owned subsidiary, Cannara Biotech (Quebec) Inc., it has received approval from Health Canada to amend its license to permit the sale of dried cannabis products to provincially authorized distributors and retailers nationwide. As revenue steadily grows over the next 12 months, Cannara expects rapid growth in profitability and cashflow given its lean operating structure and production cost advantage.

 

“Within our home province of Quebec, demand for high quality Quebec-grown cannabis is strong and expanding rapidly,” said Zohar Krivorot, President and Chief Executive Officer of Cannara. “The receipt of our sales licence from Health Canada is a significant milestone in our journey and will enable us to continue executing our plan to generate value for consumers and shareholders. We look forward to getting our brand portfolio into the hands of customers across the province of Quebec over the coming months.”

Cannara products
Cannara indoor-grown cannabis is produced to the highest quality standards. As a result cannabis is cultivated from a bank of rare genetics, hang-dried, slow-cured, and hand-trimmed. The Company plans to initially launch three product lines:

  • THC-dominant: Top-shelf genetics featuring hand-crafted cannabis with elevated THC and rich terpene profiles, available in 3.5 gram and pre-roll formats.
  • CBD-dominant: Unique genetics containing less THC and more CBD available in 3.5 gram and pre-roll formats.
  • High-value: Quality cannabis offered at an accessible price point in a 28 grams bulk format.

Cannara Facility
Cannara’s 625,000 square foot indoor facility in Farnham, Quebec is a purpose-built, state of the art cannabis production facility. The fully automated facility has access to 15 megawatts of electricity at some of the lowest rates available anywhere in Canada. The Company has designed its build-out over three initial phases, to grow production in lockstep with revenues and cash flow. It is the largest indoor facility in Quebec, with the ultimate potential to produce up to 100,000 kilos annually at peak capacity.

About Cannara Biotech Inc.
Cannara Biotech Inc. (CSE: LOVE) (OTCQB: LOVFF) (FRA: 8CB) has built one of the largest indoor cannabis cultivation facilities (625,000 square feet) in Canada and the largest in Québec. Leveraging Québec’s low electricity costs, Cannara Biotech Inc.’s facility will produce premium-grade indoor cannabis and cannabis-derivative products for the Québec and Canadian markets. www.cannara.ca

The CSE nor its Regulation Services Provider 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.

1/8/2021 10:00:00 AM
2020
Cannara Biotech Inc. (CSE: LOVE) announces Year-End and Q4 2020 Results
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– Cannabis Cultivation at Farnham, one of Canada’s largest indoor facilities, dialed in and operational-

MONTREALDec. 15, 2020 /CNW/ – Cannara Biotech Inc. (“Cannara“) (CSE: LOVE) (OTCQB: LOVFF) (FRA: 8CB) today announced the financial results for the three-month period and year ended August 31, 2020. Unless otherwise noted, all dollar amounts are expressed in Canadian dollars.

 

FISCAL 2020 OPERATIONAL HIGHLIGHTS

  • In January 2020, Cannara received its license to cultivate and process cannabis from Health Canada.
  • Cultivation operations in approximately 130,000 square feet at the Farnham Facility were officially launched on February 3, 2020.
  • The Company harvested its first crop on April 20, 2020.
  • In July 2020, the Company signed a non-binding Letter of Intent (LOI) with the SQDC, where Cannara committed a substantial amount of its supply of premium quality cannabis to its home market of Que´bec.
  • The Company completed its first wholesale cannabis transaction in July 2020.
  • Cannabis operations are now at full capacity, with 18 flowering rooms in operations. Two harvests per week are occurring in-line with the production forecasts.
  • In July 2020, the Company signed a $5 million credit facility with a related-party lender.
  • Subsequent to year-end, the Company underwent a verification process with Health Canada to review its operations in order to obtain a license amendment in order for the Company to sell directly to provincial distributors. Management expects that the amended sales license will be awarded in early 2021.
  • Subsequent to year-end, on November 27, 2020, the Company entered into a one-year wholesale supply agreement with a licensed producer for which the Company agreed to sell 200 kg of cannabis per month commencing January 1, 2021.
  • Subsequent to year-end, on November 30, 2020, the Company entered into an additional lease agreement for the last remaining space available for lease at its Farnham Facility.

“The whole team has done an excellent job in 2020 advancing our cultivation program, resulting in a robust portfolio of key genetics that will be imminently launched throughout Québec and beyond,” said Zohar Krivorot, President and Chief Executive Officer of Cannara. “Based on the positive feedback and more importantly, the re-orders and a material supply agreement from our wholesale partners, we are confident our products will resonate with cannabis consumers. This next chapter in our Company’s progress – brands, consumer acceptance and ultimately market share – will be key themes for us in 2021.”

RESULTS OF OPERATIONS

For the year ended August 31, 2020, the Company’s Cannabis operations segment did not generate cannabis-related revenues from its main cultivation activities as the Company had not yet received its amended sales license. First harvest occurred on April 20, 2020 and since then, harvests have been occurring every week. All lots currently in the cultivation phase are growing for commercialization and will be offered on the wholesale or retail market. It is expected that the amended sales license will be obtained early in the new year.

As part of the Company’s capital management strategy, the Company has leased out a significant portion of the currently unoccupied space in the Farnham Facility. As at August 31, 2020, The Company leased 423,551 square feet of the total 625,000 available square feet to three tenants. For the three-month period and the year ended August 31, 2020, the Company generated lease revenues of $515,695 and $2,394,975 compared to $553,308 and $2,096,974 in the same periods of the prior year. This represents an increase of $298,001 for the year ended, due mainly to the addition of a new tenant during the second and third quarter of 2020.

For the three-month period ended August 31, 2020, the Company reported a total comprehensive loss of $3.9 million or a loss per share of $0.01; compared to $3.8 million or a loss per share of $0.01 in the same period of prior year. For the twelve-month period ended August 31, 2020, the Company reported a total comprehensive loss of $13.0 million or a loss per share of $0.02, similar to the results for the same period of the prior year.

The Company has a working capital of $7,052,904 as at August 31, 2020 (August 31, 2019 – $22,737,628). This includes cash on hand of $7,771,177 (August 31, 2019 – $26,505,992). The Company expects that its existing cash resources as at August 31, 2020 along with cash received subsequent to year end from its credit facilities will enable it to fund its planned operating expenses for at least the next twelve months from August 31, 2020.

OUTSTANDING SHARES
As at the date of this report, the Company had 737,839,535 common shares and 39,600,001 stock options issued outstanding.

For further information, the complete consolidated Financial Statements and Management’s Discussion and Analysis for the three-month period and year ended August 31, 2020, along with additional information about the Company and all of its public filings are available at www.sedar.com and the Company’s website, www.cannara.ca.

About Cannara Biotech Inc.
Cannara Biotech Inc. (CSE: LOVE) (OTCQB: LOVFF) (FRA: 8CB) has built one of the largest indoor cannabis cultivation facilities (625,000 square feet) in Canada and the largest in Québec. Leveraging Québec’s low electricity costs, Cannara Biotech Inc.’s facility will produce premium-grade indoor cannabis and cannabis-derivative products for the Québec and Canadian markets. www.cannara.ca

The CSE nor its Regulation Services Provider 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.

12/15/2020 7:02:00 PM

 

Cannara Biotech Inc. Appoints Donald Olds to Board of Directors
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MONTREALNov. 5, 2020 /CNW Telbec/ – Cannara Biotech Inc. (“Cannara” or the “Company”) (CSE: LOVE) (OTCQB: LOVFF) (FRA: 8CB) today announced the appointment of Donald Olds as a Director on the Company’s board of directors.

 

“Don is well recognized within the Montreal business community as a leader both within the life science sector and beyond. We are delighted that he is bringing his experience and integrity to Cannara,” said Zohar Krivorot, President and Chief Executive Officer of Cannara. “Don’s knowledge regarding how board’s create impact beyond governance, and his insights on collaborating with growth companies make him an ideal contributor to Cannara.”

Donald Olds is an experienced life sciences executive, entrepreneur and director with significant experience raising capital for private and public technology companies. Most recently, he was President and Chief Executive Officer of Montreal-based NEOMED Institute, a position he held until the successful closing of a merger with Vancouver-based CDRD. He has held multiple executive positions as Chief Executive Officer, Chief Operations Officer and Chief Financial Officer of private and public life science and technology companies and began his business career as a commercial, corporate and investment banker working across a variety of industry verticals. Mr. Olds has significant corporate governance experience as a board member and chair of both for profit and not for profit organizations. He is currently lead director at Goodfood Markets (TSX:FOOD), director of Acasti Pharma (NASDAQ:ACST), Chair of Aifred Health, past Chair of Oxfam Quebec and director of private Presagia Corp. He holds a master’s in business administration and a master’s in sciences from McGill University.

“We would also like to take this opportunity to announce that Lennie Ryer is departing from the Company and we wish him good fortune in his future endeavors,” added Mr. Krivorot. “Lennie will continue to provide transition services to the company for a period of 12 months.”

Nicholas Sosiak, Cannara’s Senior Vice-President of Finance and Operations, who has been with the Company since April 2019, has been appointed as Interim Chief Financial Officer. Nicholas is a Chartered Professional Accountant and started his career at KPMG in the audit practice, mostly focused on the public sector. Following his tenure as an auditor, he joined Dundee 360 Real Estate Corporation, a subsidiary of Dundee Corporation and a publicly traded company listed on the TSX, as Vice-President of Finance and Accounting where he was responsible for overseeing the company’s finance and governance function in addition to managing finances of large-scale real estate development projects like the Queen Elizabeth Hotel and Four Seasons Private Residences. Nicholas has true passion and understanding of the Cannabis industry.

About Cannara Biotech Inc.
Cannara Biotech Inc. (CSE: LOVE) (OTCQB: LOVFF) (FRA: 8CB) has built one of the largest indoor cannabis cultivation facilities (625,000 square feet) in Canada and the largest in Quebec. Leveraging Quebec’s low electricity costs, Cannara Biotech Inc.’s facility will produce premium-grade indoor cannabis and cannabis-derivative products for the Quebec and Canadian markets.

The CSE nor its Regulation Services Provider 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.

11/5/2020 4:30:00 PM

 

Cannara Biotech Inc. Reports Q3 2020 Financial Results
Print item:Cannara Biotech Inc. Reports Q3 2020 Financial Results  View PDF item:Cannara Biotech Inc. Reports Q3 2020 Financial Results

MONTREALJuly 27, 2020 /CNW Telbec/ – Cannara Biotech Inc. (“Cannara” or the “Company”) (CSE: LOVE) (OTCQB: LOVFF),  (FRA: 8CB), today announced financial results for the three and nine-month periods ended May 31, 2020. Unless otherwise noted, all dollar amounts are expressed in Canadian dollars.

 

OPERATIONAL HIGHLIGHTS

  • On April 20, 2020, the Company successfully harvested its first cannabis crop.  
  • The Farnham Facility is now operating at full capacity, with one to two flowering rooms harvested per week.
  • As at May 31, 2020, there were a total of 48,711 plants in the cultivation cycle, including 26,649 plants in the flowering stage; these biological assets are expected to yield approximately 1,272 kilograms of dried cannabis once harvested.
  • Mary Durocher joined Cannara’s Board of Directors in May.

HIGHLIGHTS SUBSEQUENT THE QUARTER’S END 

  • Finalized a non-binding Letter of Intent (LOI) with the Société québécoise du cannabis (the “SQDC”), which will see Cannara’s first year production of premium quality cannabis earmarked for the Québec market.
  • The Company hired its 100th employee at its Farnham Facility, just outside Montreal.
  • Samples from the first two lots were sent at the beginning of June 2020 to Health Canada for analysis as part of the Company’s efforts to obtain its amended sales license.

“It has been a very eventful and successful period since our last update, with significant progress made in critically important areas of our business. We are now routinely harvesting one to two large flowering rooms every week, carefully drying and curing the product, while inventorying finished product,” said Zohar Krivorot, CEO of Cannara. “The LOI with SQDC also represents a significant milestone, bringing us closer to our goal of being a dominant provider of premium cannabis for the Québec market.”

RESULTS OF OPERATIONS
For the three and nine-month periods ended May 31, 2020, the Company had not yet generated cannabis-related revenues from its production since the cultivation activities began in February 2020 following the grant of the cultivation license. First harvest occurred on April 20, 2020 and since then, harvests have been occurring every week. All lots currently in the cultivation phase are growing for commercialization and will be offered on the wholesale market. It is estimated that the lots planted in July 2020 will be sold to the retail market once the amended sales license is obtained, which is expected to occur before end of calendar year.

In order to optimize cash flow while the Company has unoccupied space in the Farnham Facility, the Company leased 423,551 square feet of the total 625,000 available square feet to three tenants. For the three and nine-month periods ended May 31, 2020, the Company generated lease revenues of $710,272 and $1,879,280 compared to $506,785 and $1,543,666 in the same period of the prior year. This represents a favourable increase of $203,487 and $335,614, due mainly to the addition of a new tenant.

For the three-month period ended My 31, 2020, the Company reported a total comprehensive loss of $2.5 million or a loss per share of $0.01; compared to $2.8 million or a loss per share of $0.01 in the same period of prior year. For the nine-month period ended May 31, 2020, the Company reported a total comprehensive loss of $9.2 million or a loss per share of $0.01; compared to $9.1 million or a loss per share of $0.02 in the same period of prior year.

As at May 31, 2020, the Company’s cash on hand was $11.1 million (August 31, 2019 – $26.5 million). On July 17, 2020, the Company signed a term sheet with a related-party lender providing it access to a credit facility of $5,000,000, that the Company can draw on, to be used for working capital purposes.

The Company believes it has expended most of the required capital required to operationalize Phase 1 of the Farnham Facility. During the year ending August 31, 2020, the Company anticipates to further spend on production equipment related to cannabis packaging. The Company expects that its existing cash resources as at May 31, 2020 will enable it to fund its planned operating expenses for at least the next twelve months from May 31, 2020.

OUTSTANDING SHARES
As at the date of this report, the Company had 737,738,815 common shares and 33,698,169 stock options issued outstanding.

For further information, the complete interim consolidated Financial Statements and Management’s Discussion and Analysis for the three and nine-month periods ended May 31, 2020, along with additional information about the Company and all of its public filings are available at www.sedar.com and the Company’s website.

About Cannara Biotech Inc.

Cannara Biotech Inc. (CSE: LOVE) (OTCQB: LOVFF) (FRA: 8CB) has built one of the largest indoor cannabis cultivation facilities (625,000 square feet) in Canada and the largest in Québec. Leveraging Québec’s low electricity costs, Cannara Biotech Inc.’s facility will produce premium-grade indoor cannabis and cannabis-derivative products for the Quebec and Canadian markets.

The CSE nor its Regulation Services Provider 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.

7/27/2020 7:30:00 AM

 

Cannara Completes Acquisition of Global shopCBD.com
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MONTREALJuly 7, 2020 /CNW/ – Cannara Biotech Inc. (“Cannara“) (CSE: LOVE) (OTCQB: LOVFF) (FRA: 8CB) announced today it has closed on its previously announced offer to acquire all of the issued and outstanding shares of Global shopCBD.com Inc. (“Global“) not already owned by Cannara (the “Transaction“).

 

Global, through its wholly-owned subsidiary, operates an online e-commerce platform focused on tapping into the U.S. hemp CBD market, offering curated selections of top tier products in a fast, secure and reliable transaction.

The Transaction
Pursuant to the terms of a share exchange agreement dated May 26, 2020 among Cannara, Global and the shareholders of Global, Cannara has acquired 99.8% of the issued and outstanding shares of Global that it did not already own in consideration for the issuance of 23,145,110 common shares of Cannara pro rata to the shareholders of Global at a deemed price of $0.10 per share (the “Payment Shares“).

The Payment Shares are not subject to any hold periods under applicable securities laws.

Further information can be found on Cannara’s SEDAR profile at www.sedar.com.

About Cannara Biotech Inc.
Cannara Biotech Inc. (CSE: LOVE) (OTCQB: LOVFF) (FRA: 8CB) has built one of the largest indoor cannabis cultivation facilities (625,000 square feet) in Canada and the largest in Quebec. Leveraging Quebec’s low electricity costs, Cannara Biotech Inc.’s facility will produce premium-grade indoor cannabis and cannabis-derivative products for the Quebec and Canadian markets.

The CSE nor its Regulation Services Provider 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.

7/7/2020 5:00:00 PM

 

Cannara enters LOI with SQDC for Entire First Year Production
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– Operations Accelerating with 100th Quebec Employee Hired –

MONTREALJuly 6, 2020 /CNW/ – Cannara Biotech Inc. (“Cannara” or the “Company”) (CSE: LOVE) (OTCQB: LOVFF) (FRA: 8CB) announced today it has finalized a non-binding Letter of Intent (LOI) with the Société québécoise du cannabis (the “SQDC”). With this LOI, Cannara will dedicate its entire first year production of premium quality cannabis to its home market of Québec. The Company also announced the hiring of its 100th employee at its facility in Farnham, Québec with more hiring forthcoming.

 

“Our approach has always been Made in Québec, For Québec,” said Zohar Krivorot, CEO of Cannara. “With our library of top genetics and purpose-built indoor facility, our now 100-person Farnham team continues to excel as we ramp up our activities.  It is our focus to become the leading, go-to cannabis producer for consumers in Quebec.”

The LOI with the SQDC is expected to convert to a comprehensive purchase order once Cannara is granted its Sales License Amendment from Health Canada.  Certificates of Analysis (CoA) from its first two harvests have already been submitted for approval. The quantities outlined in the LOI would result in all of Cannara’s initial 15,000 kg capacity being allocated to its home province of Québec with supply beginning in the second half of this year.

Cannara’s state-of-the art facility is strategically located just 45 minutes outside of Montreal in the city of Farnham where the company has direct access to the vibrant local economy and workforce.

About Cannara Biotech Inc.
Cannara Biotech Inc. (CSE: LOVE) (OTCQB: LOVFF) (FRA: 8CB) has built one of the largest indoor cannabis cultivation facilities (625,000 square feet) in Canada and the largest in Quebec. Leveraging Quebec’s low electricity costs, Cannara Biotech Inc.’s facility will produce premium-grade indoor cannabis and cannabis-derivative products for the Quebec and Canadian markets.

Website: www.cannara.ca

The CSE nor its Regulation Services Provider 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.

7/6/2020 7:30:00 AM
Cannara Proposes Agreement to Acquire Global shopCBD.com
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VANCOUVERMay 27, 2020 /CNW Telbec/ – Cannara Biotech Inc. (“Cannara” or the “Company“) (CSE: LOVE) (OTCQB: LOVFF) (FRA: 8CB), an emerging vertically integrated cannabis company focused on indoor cultivation, processing and sale of premium dried cannabis and cannabis derivative products, is pleased to announce that it has entered into a proposed share exchange agreement dated May 26, 2020 among the Company, Global shopCBD.com Inc. (“Global“) and the shareholders of Global (the “Exchange Agreement“), pursuant to which, the Company will acquire all of the issued and outstanding shares of Global (the “Proposed Transaction“) that it currently does not own. The Company currently owns 61.23% of the outstanding common shares of Global.

 

Global, through its wholly-owned subsidiary, operates an online e-commerce platform focused on tapping into the U.S. Hemp CBD market offering curated selections of top tier products in a fast, secure and reliable transaction.

The Proposed Transaction

Pursuant to the terms of the Exchange Agreement, Cannara will acquire all of the issued and outstanding shares of Global which are not owned by the Company in consideration for the issuance of 23,262,581 common shares of the Company (the “Payment Shares“) pro rata to the shareholders of Global at a deemed price of $0.10 per Payment Share upon closing of the Proposed Transaction.

The Proposed Transaction remains subject to certain closing conditions including, without limitation, (a) the receipt by Cannara of shareholder and regulatory approval; and (b) each party’s representations and warranties in the Exchange Agreement being true and correct in all aspects as of the Closing Date, and each party meeting its terms and conditions and fulfilling its covenants and obligations as contained therein. There can be no guarantees that the Proposed Transaction will be completed as contemplated or at all.

Zohar Krivorot, president, CEO and a director of the Company, is also a director of Global.  As a result, the Proposed Transaction constitutes a “related party transaction” within the meaning of Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (“MI 61-101“). The Proposed Transaction is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value (as determined under MI 61-101) of the subject matter of, nor the fair market value of the consideration for, the transaction, insofar as it involves interested parties, exceeds 25% of the Company’s market capitalization.  Notwithstanding the foregoing, the Company had a valuation report of Global prepared by an independent valuator in connection with the Proposed Transaction which valued Global at $6,000,000, resulting in a value of the common shares not already owned by the Company at $2,326,258.

The Payment Shares will not be subject to any hold periods under applicable securities laws.

About Cannara Biotech Inc.

Cannara Biotech Inc. (CSE: LOVE) (OTCQB: LOVFF) (FRA: 8CB) has built one of the largest indoor cannabis cultivation facilities (625,000 square feet) in Canada and the largest in Quebec. Leveraging Quebec’s low electricity costs, Cannara Biotech Inc.’s facility will produce premium-grade indoor cannabis and cannabis-derivative products for the Quebec and Canadian markets.

Website: www.cannara.ca

ON BEHALF OF THE BOARD

 Zohar Krivorot, President, CEO and Director

The CSE does not accept responsibility for the adequacy or accuracy of this release.

The CSE has not in any way passed upon the merits of the Proposed Transaction and has neither approved nor disapproved the contents of this press release.

The securities to be issued in connection with the Proposed Transaction have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “1933 Act“), or under any state securities laws, and may not be offered or sold, directly or indirectly, or delivered within the United States or to, or for the account or benefit of, U.S. persons (as defined in Regulation S under the 1933 Act) absent registration or an applicable exemption from the registration requirements. This news release does not constitute an offer to sell or a solicitation to buy such securities in the United States.

This news release may include forward-looking statements that are subject to risks and uncertainties. All statements within, other than statements of historical fact, are to be considered forward looking. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. There can be no assurances that such statements will prove accurate and, therefore, readers are advised to rely on their own evaluation of such uncertainties. We do not assume any obligation to update any forward-looking statements except as required under the applicable laws.

 

SOURCE Cannara Biotech Inc.

5/27/2020 7:30:00 AM

 

Cannara Biotech Inc. appoints Mary Durocher as New Board Director
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VANCOUVERMay 15, 2020 /CNW/ – Cannara Biotech Inc. (“Cannara” or the “Company”) (CSE: LOVE) (OTCQB: LOVFF) (FRA: 8CB), an emerging vertically integrated cannabis company focused on indoor cultivation, processing and sale of premium dried cannabis and cannabis-derivative products, today announced the appointment of Mary Durocher as a Director on Cannara’s Board, effective immediately. Ms. Durocher is President and Chief Consultant of Fox D Consulting.

 

“Mary is broadly recognized across Canada as a leading regulatory and compliance authority in the Cannabis sector, and we are delighted that she is bringing her energy and integrity to Cannara,” said Zohar Krivorot, President and CEO of Cannara. “Her knowledge and insights regarding the industry will be important as we accelerate our cultivation capabilities and quickly transition to commercial sales.”

Mary has been involved in the Cannabis industry since the infancy of the Marihuana for Medical Purposes Regulations introduction. Today she works with clients in all areas of the industry, while coordinating a team of consultants. To date her team has assisted 52 Licensed Producers in attaining their Health Canada credentials and worked on over 250+ applications.

“We would also like to take this opportunity to announce that Barry Laxer has departed the Company and we wish him good fortune in his future endeavors,” added Mr. Krivorot.

About Cannara Biotech Inc.
Cannara Biotech Inc. (CSE: LOVE) (OTCQB: LOVFF) (FRA: 8CB) has built one of the largest indoor cannabis cultivation facilities (625,000 square feet) in Canada and the largest in Quebec. Leveraging Quebec’s low electricity costs, Cannara Biotech Inc.’s facility will produce premium-grade indoor cannabis and cannabis-derivative products for the Quebec and Canadian markets.

The CSE nor its Regulation Services Provider 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.

5/15/2020 5:00:00 PM

 

Cannara Harvests First Crop on 420
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300 kgs of Carefully Crafted Premium Indoor Cannabis Marks Pivotal Milestone

VANCOUVERApril 20, 2020 /CNW Telbec/ – Cannara Biotech Inc. (“Cannara” or the “Company”) (CSE: LOVE) (OTCQB: LOVFF) (FRA: 8CB), an emerging vertically integrated cannabis company focused on indoor cultivation, processing and sale of premium dried cannabis and cannabis-derivative products, today announced the first successful harvest from one of Canada’s largest indoor facilities, located in Farnham, Quebec. This scale and location provides Cannara with unique competitive advantages.

 

“Our core principle from the beginning of this venture has been premium quality always wins,” said Barry Laxer, COO of Cannara Biotech (Quebec) Inc. “All the measures we are committed to, from seed genetics to growing conditions to packaging protocols are all aimed at producing the best possible finished product. That’s what retailers and their customers want.”

The first harvest will now be carefully cured on their original stems for 14 days, in vigilantly monitored rooms with ultra-precise humidity and temperatures. This crafted tradition results in visually attractive and high quality buds, with intact trichomes and preserved terpenes. Following today’s harvest, Cannara’s state-of-the-art facility with best-in-class lighting, temperature and humidity controls now swings into full production with two flowering rooms harvested each week.

To share in this historical event, a video highlighting the harvest will be posted on the Company’s website later today at 4:20 pm

About Cannara Biotech Inc.
Cannara Biotech Inc. (CSE: LOVE) (OTCQB: LOVFF) (FRA: 8CB) has built one of the largest indoor cannabis cultivation facilities (625,000 square feet) in Canada and the largest in Quebec. Leveraging Quebec’s low electricity costs, Cannara Biotech Inc.’s facility will produce premium-grade indoor cannabis and cannabis-derivative products for the Quebec and Canadian markets.

The CSE nor its Regulation Services Provider 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.

4/20/2020 7:30:00 AM

 

Cannara Biotech Inc. Reports Q2 2020 Financial Results
Print item:Cannara Biotech Inc. Reports Q2 2020 Financial Results  View PDF item:Cannara Biotech Inc. Reports Q2 2020 Financial Results

Company well-financed with ample resources to reach commercial milestones in H2 2020

VANCOUVERApril 16, 2020 /CNW/ – Cannara Biotech Inc. (“Cannara” or the “Company”) (CSE: LOVE) (OTCQB: LOVFF) (FRA: 8CB), an emerging vertically integrated cannabis company focused on indoor cultivation, processing and sale of premium dried cannabis and cannabis-derivative products, today announced financial results for the three and six-month periods ended February 29, 2020. Unless otherwise noted, all dollar amounts are expressed in Canadian dollars.

 

OPERATIONAL HIGHLIGHTS

  • On January 31, 2020, the Company, via its subsidiary, Cannara Biotech (Quebec) Inc. (“Cannara QC”), received its licence from Health Canada for Phase 1 of the Farnham Facility, and as a result, the cultivation operations were officially launched on February 3, 2020.
  • The Company expects its first harvest on April 20 and under the current schedule is targeting two harvests per week thereafter. The multipurpose 170,000 sq. ft. of licenced area, which includes state-of-the-art processing capabilities, has an annual cultivation capacity estimated at up to 20,000 kg per year.

“From a cultivation perspective, the first 10 weeks could not have gone any better than they have, with the plants responding very positively to the environmental conditions at Farnham. We are currently cultivating 16 carefully selected premium genetics with a bank of over 200 additional strains,” said Barry Laxer, COO of Cannara Biotech (Quebec) Inc.

With respect to the ongoing Covid-19 concerns, the Farnham facility is essentially unaffected. Having been designed and operated as a pharma-grade operation, full gowning protocols and comprehensive sanitation practices and equipment are all in place precisely to prevent viral contaminations and other foreign contagions from entering the facility.  All employees have been instructed on and encouraged to practice best social distancing behaviours. Otherwise, the facility is operating under normal protocol, albeit under a heightened sense of observation and cautiousness. Over fifty employees are currently employed at the Farnham facility and hiring continues as operations ramp up.

“Fiscally, Cannara is well fortified with more than $14 million of cash on hand as of the end of February, providing sufficient funds for the Company to execute its business plan and reach commercial milestones in the second half of 2020 and beyond,” commented Lennie Ryer, Cannara’s CFO.

RESULTS OF OPERATIONS
The Company operates in two segments: 1) Indoor cannabis operations which encompasses the cultivation, processing and sale of premium dried cannabis and cannabis-infused products exclusively for the Canadian market (Canadian operations) and 2) E-commerce retailer of curated selection of top tier U.S. hemp-based CBD products exclusively for the U.S. market. (U.S. operations).

Canadian Operations
For the three and six-month periods ended February 29, 2020, the segment had not yet generated cannabis-related revenues from its Canadian operations since the cultivation activities commenced in February 2020 following the grant of the cultivation licence. As at February 29, 2020, Cannara QC has not yet harvested its first crop.

For the three-month period ended February 29, 2020, the segment incurred $2,666,770 in operating expenses compared to $1,375,075 in the same period of the prior year resulting in an unfavorable increase in operating expenses of $1,291,695.

For the six-month period ended February 29, 2020, the segment incurred $4,522,784 in operating expenses compared to $3,565,846 in the same period of the prior year resulting in an unfavorable increase in operating expenses of $956,938.

The increase in operating expenses is mainly attributable to:

  • An increase of $669,025 and $729,280 in general and administrative expenses for the three and six-month periods as a result of expenses incurred to prepare and launch the operations at the Farnham Facility, including costs for general maintenance of the building and additional insurance costs;
  • An increase of $439,812 and $370,809 in salaries and benefits expenses for the three and six-month periods as a result of recent hires made to prepare for the commencement of operations and be ready to cultivate following the reception of the Licence from Health Canada;
  • An increase of $368,675 and $598,050 in research and development for the three and six- month periods as a result of the initial expenses incurred to research, test and develop Cannara’s cultivation methodologies and the material and labor costs related to its first harvest (refer to note 12 of the Condensed Interim Consolidated Financial Statements);
  • An increase of $133,693 in investor relation expenses for the six-month period as the Company had only gone public on January 14, 2019. Investor relation expenses for the three-month period was or were similar compared to same period of prior year;
  • A decrease of $99,108 and $347,602 in marketing expenses for the three and six-month periods as the Company postponed marketing spend until it received its Licence to further develop the Company’s cannabis brand portfolio; and
  • A decrease of $78,663 and $511,647 in professional fees for the three and six-month periods as a result of expenses incurred in the same period of the prior year to prepare the Company to become a publicly listed entity on the Canadian Stock Exchange.

The segment operating loss for the three and six-month period ended February 29, 2020 was $2,666,770 and $4,522,784 compared to $1,375,075 and $3,565,846 in the same period of prior year.

U.S. Operations
For the three-month period ended February 29, 2020, the Company generated product revenue of $7,354 and incurred $7,947 in costs of goods sold resulting in a loss of $593 compared to nil for the same period as prior year. The segment incurred $522,053 in operating expenses compared to $458,451 in the same period of prior year resulting in an unfavorable increase in operating expenses of $63,602.

For the six-month period ended February 29, 2020, the Company generated product revenue of $13,075 and incurred $11,870 in costs of goods sold resulting in a profit of $1,205 compared to nil for the same period as prior year. The segment incurred $1,123,022 in operating expenses compared to $458,451 in the same period of prior year resulting in an unfavorable increase in operating expenses of $664,571.

For the three-month period ended February 29, 2020, the segment incurred $522,646 in operating loss from its U.S. operations, of which $314,609 is attributable to the shareholders of the Company compared to $458,451 in the same period of prior year, of which $324,842 is attributable to the shareholders of the Company.

For the six-month period ended February 29, 2020, the segment incurred $1,121,817 in operating loss from its U.S. operations, of which $692,012 is attributable to the shareholders of the Company compared to $458,451 in the same period of prior year, of which $324,842 is attributable to the shareholders of the Company.

Other
In order to optimize cash flow while the Company has unoccupied space in the Farnham Facility, the Company leased 423,551 square feet of the total 625,000 available square feet to three tenants.

For the three and six-month period ended February 29, 2020, the Company generated lease revenues of $641,480 and $1,169,008 compared to $518,438 and $1,036,881 in the same period of prior year as a result of the addition of a new tenant. In order to realize these lease revenues during the three and six-month periods ended February 29, 2020, the Company spent $190,352 and $219,984 in lease operating costs compared to $81,836 and $134,374 in the same periods of prior year. The increase in lease operating expenses is attributable to the operating costs of the new tenant as well as general operating and maintenance expenses incurred for the tenants.

For the three and six-month period ended February 29, 2020, the segment generated $470,727 and $968,623 in operating income which is comparable to $436,602 and $902,507 earned in the same period of prior year. The additional income from the new tenant was offset by the increased general operating and maintenance expenses incurred on behalf of the tenants.

The segment net loss for the three-month period ended February 29, 2020 was $547,656 compared to $2,178,400 in the same period of prior year, resulting in a favorable decrease of $1,630,744.The segment net loss for the six-month period ended February 29, 2020 was $1,033,471 compared to $2,292,855 in the same period of prior year, resulting in a favorable decrease of $1,259,384.

Overall results
For the three-month period ended February 29, 2020, the Company reported a total consolidated comprehensive loss of $3.7 million or a loss per share of $0.01 compared to $4.0 million or a loss per share of $0.01 in the same period of prior year.

For the six-month period ended February 29, 2020, the Company reported a total consolidated comprehensive loss of $6.7 million or a loss per share of $0.01 compared to $6.3 million or a loss per share of $0.01 in the same period of prior year

LIQUIDITY AND CAPITAL RESOURCES
The Company reported a net working capital amount of $7,433,349 as at February 29, 2020 (August 31, 2019 – $22,737,628). The decrease in net working capital is mainly attributable to the classification of the new mortgage which has been classified as current on the condensed interim consolidated statement of financial position as the agreement includes a condition that the mortgage is repayable on demand. As at February 29, 2020, the Company’s cash on hand was $14,559,795 (August 31, 2019 – $26,505,992). Of the balance of cash on hand, $9,048,838 (August 31, 2019 – $18,905,198) is held by Cannara, Cannara OPS and Cannara QC for use towards the Company’s Canadian and other operations and $5,510,957 (August 31, 2019 – $7,600,794) is held by Global shopCBD.com and ShopCBD.com to fund its U.S. operations.

The Company believes it has expended most of the required capital required to operationalize Phase 1 of the Farnham Facility. During the year ending August 31, 2020, the Company anticipates to further spend on production equipment related to cannabis packaging and derivatives.

The Company expects that its existing cash resources as at February 29, 2020 will enable it to fund its planned operating expenses for at least the next twelve months from February 29, 2020.

OPERATING ACTIVITIES
For the three and six-month periods February 29, 2020, cash used for operating activities was $1,426,337 and $4,810,062. The cash flow used in operating activities was primarily attributable to expenses relating to salaries of personnel, expenses to finalize construction of Phase 1 of the Farnham Facility and commence operations including research and development expenses related to cultivation activities, professional fees for the development of the Company’s business operations, additional insurance premiums to cover a purpose-built cannabis facility and offices, travel and public company related expenses.

FINANCING ACTIVITIES
For the three-month period ended February 29, 2020, cash used in financing activities was $17,812, of which $75,000 was attributable to principle payments against the mortgage outstanding to a Canadian financial institution, interest paid on the mortgages of $159,792 and $79,976 for lease-related payments offset by cash received from warrants that were exercised for $300,000.

For the six-month period ended February 29, 2020, cash used in financing activities was $417,279 which is mainly attributable to the proceeds of $6,000,000 related to a first mortgage with a Canadian financial institution and cash received from warrants that were exercised for $320,000 offset by the principal repayment of $6,000,000 towards the outstanding mortgage to a related private lender, interest paid on the mortgages of $461,660 and $148,880 on lease-related payments.

INVESTING ACTIVITIES
For the three-month period ended February 29, 2020, cash used for investing activities was $943,647 which is mainly attributable to the construction and the acquisition of production equipment of $945,344 in order to render Phase 1 of the Farnham Facility operational, investment of $95,551 for the technical development of its online e-commerce platform in relation to its U.S. operations offset by the interest income of $97,248 relating to interest earned on the cash balance held at Canadian Imperial Bank of Canada (“CIBC”).

For the six-month period ended February 29, 2020, cash used for investing activities was $6,699,109 which is mainly attributable to the construction and the acquisition of production equipment of $6,730,924 in order to render Phase 1 of the Farnham Facility operational, investment of $154,214 for the technical development of its online e-commerce platform in relation to its U.S. operations offset by the interest income of $186,029 relating to interest earned on the cash balance held at a CIBC.

There is no restriction on the Company’s ability to use its cash for its operational needs while it earns interest on the unused balance.

OUTSTANDING SHARES
As at the date of this report, the Company had 709,970,705 common shares outstanding. There were 11,748,710 warrants and 38,221,000 options issued.

For further information, the complete Financial Statements and Management’s Discussion and Analysis for the three and six month periods ended February 29, 2020, along with additional information about the Company and all of its public filings are available at www.sedar.com and the Company’s website.

About Cannara Biotech Inc.

Cannara Biotech Inc. (CSE: LOVE) (OTCQB: LOVFF) (FRA: 8CB) has built one of the largest indoor cannabis cultivation facilities (625,000 square feet) in Canada and the largest in Quebec. Leveraging Quebec’s low electricity costs, Cannara Biotech Inc.’s facility will produce premium-grade indoor cannabis and cannabis-derivative products for the Canadian and international markets.

The CSE nor its Regulation Services Provider 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.

4/16/2020 5:00:00 PM

 

Cannara Insiders Form Buying Group to Fully Acquire FSD/FV Pharma’s Position in Cannara
Print item:Cannara Insiders Form Buying Group to Fully Acquire FSD/FV Pharma's Position in Cannara  View PDF item:Cannara Insiders Form Buying Group to Fully Acquire FSD/FV Pharma's Position in Cannara

Insiders’ increase stake in Cannara coincides as cultivation poised to commence

VANCOUVERFeb. 20, 2020 /CNW/ – Cannara Biotech Inc. (“Cannara”) (CSE: LOVE) (OTCQB: LOVFF) (FRA: 8CB), today announced a buying group which includes Javaa Private Equity Inc. (“Javaa”) has collectively acquired a total of 85,003,250 common shares from FSD/FV Pharma Inc., the  majority of which remain in escrow, stemming from Cannara’s go-public transaction a year ago. This $7.7 million transaction ensures a smooth transition of approximately 12% of Cannara’s issued and outstanding common shares.

 

Post transaction, FSD/FV Pharma holds no remaining interest in Cannara and Dr. Sara May, the President of FV Pharma Inc. will step down from the Company’s Board of Directors. The Company is evaluating alternative independent directors and will fill the vacancy in a timely fashion.

“The buying group, a combination of insiders and independent, third party investors who understand Cannara’s potential and the progress it has made since going public, are committed to the Company’s strategic plan of being a leader in Quebec’s cannabis landscape,” said Lennie Ryer, CFO of Cannara. “With last month’s license granted from Health Canada, we are now poised to begin full cultivation operations at Phase 1 of the Farnham facility, with an annual capacity of 20,000 kgs of premium, indoor grown cannabis.”

Following their acquisition of 8,161,626 common shares of Cannara in the transaction, Javaa now holds 242,167,820 common shares of Cannara representing approximately 34.3% of the issued and outstanding common shares. The shares of Cannara acquired by Javaa are held for investment purposes. Javaa may in the future purchase or sell shares of Cannara or otherwise trade in securities of or engage in other transactions with respect to Cannara depending on a number of factors, including but not limited to, Cannara’s financial position, the price levels of the common shares of Cannara, conditions in the securities markets and general economic and industry conditions, Cannara’s business or financial condition, and other factors and conditions Javaa deems appropriate.

For further information, a copy of the Early Warning Report to which this press release relates can be obtained from Cannara’s SEDAR profile at www.sedar.com.

About Cannara Biotech Inc.

Cannara Biotech Inc. (CSE: LOVE) (OTCQB: LOVFF) (FRA: 8CB), an emerging vertically integrated cannabis company focused on indoor cultivation, processing and medical sale of premium dried cannabis and cannabis derivatives under The Cannabis Act, is home to one of the largest indoor cannabis cultivation facilities (625,000 square feet) in Canada and the largest in Québec. Leveraging Québec’s low electricity costs, Cannara Biotech’s Farnham Facility will produce premium indoor cannabis and cannabis-infused products for the Canadian and international markets.

The CSE nor its Regulation Services Provider 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.

2/20/2020 2:30:00 AM

 

Cannara Biotech’s Farnham Facility Receives Cultivation Licence
Print item:Cannara Biotech's Farnham Facility Receives Cultivation Licence  View PDF item:Cannara Biotech's Farnham Facility Receives Cultivation Licence

VANCOUVERJan. 31, 2020 /CNW/ – Cannara Biotech Inc. (“Cannara” or the “Company”) (CSE: LOVE) (OTCQB: LOVFF) (FRA: 8CB), an emerging vertically integrated cannabis company focused on indoor cultivation, processing and medical sale of premium dried cannabis and cannabis derivatives under The Cannabis Act, today announced the receipt of its cultivation licence from Health Canada for Phase 1 of its purpose-built Farnham Facility, in Québec.

 

Highlights:

  • Cultivation is expected to begin immediately with a first harvest to take place in the second quarter of 2020;
  • The granted cultivation and processing licences are for Phase 1 of the Farnham Facility (170,000 sq. ft.). The licenced area is part of a larger 625,000 sq. ft. multipurpose and modern facility;
  • Phase 1 includes a designated space for state-of-the-art extraction and processing;
  • Creation of 100 local jobs; and
  • Annual cultivation capacity is estimated at up to 20,000 kg per year.

“After many months of diligent preparation, today’s milestone will allow us to start cultivation immediately and to advance our goal of becoming the premiere grower of cannabis in Québec and in due course, the rest of Canada,” said Barry Laxer, COO of Cannara Biotech (Quebec) Inc. “All of us would like to thank our construction team for delivering a state-of-the-art facility, along with the invaluable community support we have received. With a well-funded balance sheet, financially Cannara begins this next phase of our growth with strength and durable fundamentals,” added Mr. Laxer.

About Cannara Biotech Inc.
Cannara Biotech Inc. (CSE: LOVE) (OTCQB: LOVFF) (FRA: 8CB), is building one of the largest indoor cannabis cultivation facilities (625,000 square feet) in Canada and the largest in Québec. Leveraging Québec’s low electricity costs, Cannara Biotech’s Farnham Facility will produce premium indoor cannabis and cannabis-infused products for the Canadian and international markets.

The CSE nor its Regulation Services Provider 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.

1/31/2020 5:00:00 PM

 

Cannara Biotech Reports Q1 2020 Financial Results
Print item:Cannara Biotech Reports Q1 2020 Financial Results  View PDF item:Cannara Biotech Reports Q1 2020 Financial Results

VANCOUVERJan. 20, 2020 /CNW/ – Cannara Biotech Inc. (“Cannara” or the “Company”) (CSE: LOVE) (OTCQB: LOVFF) (FRA: 8CB), an emerging vertically integrated cannabis company focused on indoor cultivation, processing and sale of premium dried cannabis and cannabis-infused products, today announced financial results for the three-month period ended November 30, 2019. Unless otherwise noted, all dollar amounts are expressed in Canadian dollars.

 

OPERATIONAL HIGHLIGHTS

  • Submitted to Health Canada site evidence package for Phase One of the facility in Farnham, Quebec, to obtain a license to cultivate, process and sell of premium dried cannabis and cannabis-infused products;
  • Secured a first mortgage against the Farnham Facility for $6 million with a Canadian financial institution, resulting in reduced annual interest expense.

“Operationally during the quarter, we have been focused on final, detailed preparations for the Farnham Facility in anticipation of being given the green light to commence cultivation,” said Barry Laxer, Chief Operating Officer of Cannara. “The building, with 18 modern and large grow rooms and state-of-the-art technical features, is poised to become a significant factor in Quebec’s cannabis landscape, growing what we believe will quickly become the consumer’s preferred choice: indoor grown, high THC, robust flowering and crystallization with a rich terpene profile and aroma.”   

RESULTS OF OPERATIONS
The Company operates in two segments: 1) Indoor cannabis operations which encompasses the cultivation, processing and sale of premium dried cannabis and cannabis-infused products exclusively for the Canadian market (Canadian operations) and 2) E-commerce retailer of curated selection of top tier U.S. hemp-based CBD products exclusively for the U.S. market. (U.S. operations).

THREE-MONTH PERIOD ENDED NOVEMBER 30, 2019

Canadian Operations
For the three-month period ended November 30, 2019, the segment incurred $1,856,014 in operating expenses compared to $2,190,771 in the same period in the prior year resulting in a favorable decrease in operating expenses of $334,757. The segment operating loss for the three-month period ended November 30, 2019 was also $1,856,014 compared to $2,190,771 in the same period of the prior year. The Company believes that it will be able to generate revenues from this segment to cover its operating costs once Cannara receives its License and it is able to commercialize its products.

U.S. Operations
For the three-month period ended November 30, 2019, the Company generated product revenue of $5,721 and incurred $3,923 in costs of goods sold. ShopCBD.com was launched during November 2019.

For the three-month period ended November 30, 2019, the segment incurred $600,969 in operating expenses compared to nil in the same period of the prior year as the segment was only created in the third fiscal quarter of 2019. Current year operating expenses mainly comprise $204,364 in salaries and benefits to develop, support and operate the business, $188,112 in marketing spend to launch and drive traffic to ShopCBD.com and $156,372 in general and administrative expenses relating to software costs to operate the e-commerce platform and office-related expenses.

The segment incurred $599,171 in operating loss from its U.S. operations, of which $377,403 is attributable to the shareholders of the Company.

Other
In order to increase cash flow while the Company continues its phased approach to construction at the Farnham Facility, the Company leased 333,551 square feet of the total 625,000 available square feet to two tenants.

The Company generated lease revenues of $527,528 for the three-month period ended November 30, 2019 compared to $518,443 in the same period of the prior year as a result of contractual rent escalations. In order to realize these lease revenues, the Company spent $29,632 in lease operating costs during the three-month period ended November 30, 2019 compared to $52,538 in the same period of the prior year. The decrease in lease operating expenses is attributable to the timing of property tax expenses incurred and the cancellation of a property management agreement in October 2019 as the Company will internally manage the property to increase net revenues from leases.

The Company generated $497,896 in operating income from other activities for the three-month period ended November 30, 2019 which is comparable to $465,905 earned in the same period of prior year.

The reported net loss from other activities for the three-month period ended November 30, 2019 was $485,815 compared to $114,455 in the same period of the prior year, resulting in an unfavorable increase in net loss of $371,360. The increase is attributable to:

  • An increase of $93,282 in share-based compensation as a result of stock options granted as at November 30, 2019 compared to November 30, 2018;
  • An increase of $400,367 in amortization as the Company began depreciating the Farnham Facility and related assets effective September 12, 2019;
  • A decrease of $90,298 in finance expense which is mainly attributable to the lower interest rate paid on the mortgage obtained in October 2019.

For the three-month period ended November 30, 2019, the Company reported a total comprehensive loss of $2,944,233 or a loss per share of $0.01; compared to $2,305,336 or a loss per share of $0.01 in the same period of prior year.

LIQUIDITY AND CAPITAL RESOURCES
The Company reported a net working capital amount of $11,358,538 as at November 30, 2019 (August 31, 2019 – $22,737,628). The decrease in net working capital is mainly attributable to the classification of the new mortgage which has been classified as current on the condensed interim consolidated statement of financial position as the agreement includes a condition that the mortgage is repayable on demand.

The Company believes it has expended most of the required capital required to operationalize Phase 1 of the Farnham Facility. During the year ending August 31, 2020, the Company anticipates to further spend on production equipment related to cannabis packaging, extraction and derivatives.

The Company expects that its existing cash resources as at November 30, 2019 will enable it to fund its planned operating expenses for at least the next twelve months from November 30, 2019.

OPERATING ACTIVITIES
For the three-month period November 30, 2019, cash used for operating activities was $3,383,725. The cash flow used in operating activities was primarily attributable to expenses relating to salaries of personnel, initial expenses to prepare the Farnham facility for operations including the implementation of an ERP system, professional fees for the development of the Company’s segmented business operations, additional insurance premiums to cover a purpose-built cannabis facility, travel and public company related expenses.

FINANCING ACTIVITIES
For the three-month period ended November 30, 2019, cash used in financing activities amounted to $399,467 which is mainly attributable to interest paid on the mortgage of $301,868 and $68,904 on lease-related payments.

During the three-month period ended November 30, 2019, the Company received a mortgage of $6,000,000, and the funds obtained were used to pay down the existing mortgage.

INVESTING ACTIVITIES
For the three-month period ended November 30, 2019, cash used for investing activities amounted to $5,755,462. Investing activities during the period relate substantially to construction and the acquisition of production equipment in order to render Phase 1 of the Farnham Facility operational in anticipation of the License being granted early in the new year. In addition, the Company invested $58,663 for the technical development of its online e-commerce platform in relation to its U.S. operations.

For the three-month period ended November 30, 2019, the Company received $88,781 in interest income relating to interest earned on cash balances. There are no restrictions on the Company’s ability to use its cash for its operational needs while it earns interest on the unused balance.

OUTSTANDING SHARES
As at the date of this report, the Company had 706,970,705 common shares outstanding. There were 14,748,710 warrants and 39,764,424 options issued.

For further information, the complete Financial Statements and Management’s Discussion and Analysis for the three-month period ended November 30, 2019, along with additional information about the Company and all of its public filings are available at www.sedar.com and the Company’s website.

About Cannara Biotech
Cannara Biotech (CSE: LOVE) (OTCQB: LOVFF) (FRA: 8CB) has built one of the largest indoor cannabis cultivation facilities (625,000 square feet) in Canada and the largest in Quebec. Leveraging Quebec’s low electricity costs, Cannara Biotech’s facility will produce premium-grade indoor cannabis and cannabis-infused products for the Canadian and international markets.

The CSE nor its Regulation Services Provider 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.

1/20/2020 7:30:00 AM

 

2019
Cannara Biotech Reports Q4 and Year-End 2019 Financial Results
Print item:Cannara Biotech Reports Q4 and Year-End 2019 Financial Results  View PDF item:Cannara Biotech Reports Q4 and Year-End 2019 Financial Results

VANCOUVERNov. 26, 2019 /CNW/ – Cannara Biotech Inc. (“Cannara” or the “Company”) (CSE: LOVE) (FRA: 8CB) (OTCQB: LOVFF), an emerging vertically integrated cannabis company focused on indoor cultivation, processing and sale of premium cannabis and cannabis-infused products, today announced financial results for the three month period and year ended August 31, 2019. Unless otherwise noted, all dollar amounts are expressed in Canadian dollars.

 

OPERATIONAL HIGHLIGHTS

  • Raised in excess of $55,000,000 since inception
  • Built a strong balance sheet with over $26,000,000 of available cash for use;
  • Completed the Phase One retrofitting of 170,000 sq. ft of our 625,000 sq. ft. facility (“Farnham Facility”) with an annual capacity of up to 20,000 kg of premium grade indoor flower;
  • Funded ShopCBD.com Inc. with an $8 million private placement to support the launch of the online e-commerce platform for the sale and distribution, in the US, of hemp-based CBD products;
  • Listed on the CSE, Frankfurt and OTC exchanges; and
  • Submitted to Health Canada site evidence package for Phase One of the facility in Farnham, Quebec to obtain a license to cultivate, process and sell premium cannabis and cannabis-infused products (the “License”).

“Scale and premium. With these foundational principles, 2020 will no doubt be eventful as we pivot into cultivation, product development, distribution, sales and expand our CBD platform in the U.S.,” said Zohar Krivorot, President and CEO of Cannara.

“We entered fiscal 2020 in an excellent financial position, with in excess of $26 million highlighting our balance sheet strength,” said Lennie Ryer, CFO of Cannara. “Moreover, we enter our commercial phase of operations with corresponding attractive fundamentals, including a large and highly efficient building located in the lowest energy rate jurisdiction in North America. This intentional path towards profitability is a priority for us as this sector matures and traditional value drivers take precedent.”

RESULTS OF OPERATIONS
The Company operates in two segments: 1) Indoor cannabis operations which encompasses the cultivation, processing and sale of premium cannabis and cannabis-infused products exclusively for the Canadian market (Canadian operations) and 2) E-commerce retailer of curated selection of top tier U.S. hemp-based CBD products exclusively for the U.S. market. (U.S. operations).

YEAR ENDED AUGUST 31, 2019

Canadian Operations
For the year ended August 31, 2019, the segment had not yet generated cannabis-related revenues from its Canadian operations as the Company was still in progress of completing construction of Phase 1 of the Farnham Facility which is required to obtain the License.

For the year ended August 31, 2019, the segment incurred $7,423,540 in operating expenses. Included in operating expenses was:

  • $2,653,574 in professional fees paid to various lawyers, accountants and consultants for the ongoing compliance and regulatory costs of being a publicly listed entity and for the development and enhancement of Cannara’s business practices, processes, systems and strategy including the selection of an Enterprise Resource Planning system;
  • $2,577,297 relating to salaries and benefits of executive, office, construction and operations staff;
  • $1,391,832 in general and administrative expenses consisting of property taxes, licensing costs, insurance, IT, board of director fees and travel-related expenses;
  • $504,134 in initial marketing costs to establish the Cannara’s brand presence; and
  • $296,703 in investor relations expenses.

The segment operating loss of $7,423,540 is a result of the Company investing into the development of its Canadian operations during the pre-revenue phase. The Company believes that it will be able to generate revenues from this segment to cover its operating costs once Cannara receives its License and it is able to commercialize its products.

U.S. Operations
For the year ended August 31, 2019, the Company was in the process of developing its e-commerce platform, ShopCBD.com, which plans on competing in the growing U.S. Hemp CBD market by launching an online e-commerce platform offering a curated selection of top tier U.S. Hemp CBD products in a fast, secure and reliable transaction. As a result, the Company has not yet generated revenue from its U.S. operations. Subsequent to year end, ShopCBD.com was officially launched in November 2019. The Company owns 62.23% of the U.S. operations.

The segment incurred an operating loss of $1,737,390, of which $1,080,634 is attributable to the shareholders of the Company. Included in operating loss was $574,991 in general and administrative cost relating to IT software and subscriptions required to operate the e-commerce platform, initial research costs expensed, office and rent-related expenses and $387,276 in salaries and benefits for its administrative and support staff. In addition, operating expenses included $508,844 of professional fees which was mainly attributable to consultant expenses incurred to build the segment’s wholesale vendor network and to establish a corporate presence in the U.S. The segment also incurred $261,791 in marketing activities to establish the ShopCBD’s brand presence and to enhance the visuals of its e-commerce platform. As at August 31, 2019, the Company capitalized $281,020 to intangible assets for the direct cost incurred for the development of its e-commerce platform. 

Other
In order to increase cash flow while the Company builds out its Farnham Facility, the Company leased 333,551 square feet of the total 625,000 available square feet to two tenants.

The Company realized 100% of its lease revenues for the year of $2,096,974 and incurred $403,895 in lease operating costs, generating operating income from other activities of $1,693,079. Lease operating costs include allocations of utility expenses, property taxes, property management fees and commission expenses related to lease renewals. The first tenant occupies 276,393 square feet of the Farnham Facility, generating monthly gross lease revenues of $149,713. The lease is based on multiple six month terms expiring May 31, 2022. The second lease provides monthly gross lease revenues between $23,100 – $24,530 and will terminate on September 30, 2022. The Company is managing the lease terms in order to coincide with its development plans for the remaining build out of the facility in order to improve the Company’s performance while the License application is pending.

The reported net loss from other activities was $3,810,875 for the year ended August 31, 2019, as a result of $2,189,039 in share-based compensation related to issuance of stock options to employees, directors and officers of the Company, $566,327 in amortization expenses relating to the Company’s property, plant and equipment and its right-of-use assets, $873,345 in net finance expense consisting primarily of mortgage interest costs offset by interest income earned on cash and a one-time charge of $1,875,243 relating to expenses for the reverse takeover transaction (of which $1,701,282 was non-cash).

THREE MONTH PERIOD ENDED AUGUST 31, 2019

Canadian Operations
For the three month period ended August 31, 2019, the segment incurred $2,116,301 operating loss as a result of being in the pre-revenue phase. Included in operating expenses was $638,467 in consulting fees for the development and enhancement of Cannara’s business practices, processes, systems and strategy including the selection of an Enterprise Resource Planning system, $967,858 in salaries and benefits and $391,002 in general and administrative expenses.

U.S. Operations
For the three month period ended August 31, 2019, the segment incurred $680,098 in operating loss, of which $425,310 is attributable to the shareholders of the Company. Included in operating loss was $242,369 in general and administrative cost relating to IT software and subscriptions required to operate the e-commerce platform, and office and rent-related expenses and $165,909 of professional fees which was mainly attributable to consultant expenses incurred to build the segment’s wholesale vendor network and IT consulting expenses that were not capitalizable to the intangible asset. The Company also spent $239,127 in marketing cost to promote the ShopCBD brand and to enhance the visuals of its platform.

Other
For the three month period ended August 31, 2019, the Company realized 100% of its lease revenues of $553,308 and spent incurred $48,364 in lease operating costs, generating operating income from other activities of $504,944.

The reported net loss from other activities was $1,035,579 for the year ended August 31, 2019. Included in net loss from other activities was $1,198,129 in share-based compensation, $148,875 in amortization expenses relating to the Company’s property, plant and equipment and its right-of-use assets, and net finance expenses of $193,519, consisting primarily of mortgage interest costs offset by interest income earned on cash. The increase in shared-based compensation relates to share options granted on July 24, 2019, which had vested immediately upon issuance. 

LIQUIDITY AND CAPITAL RESOURCES
The Company reported a net working capital amount of $22,737,628 as of August 31, 2019 (August 31, 2018 – $12,320,832). As at August 31, 2019, the Company had cash on hand of $26,505,992 (August 31, 2018 – $12,899,672). The Company expects that its existing cash as at August 31, 2019 will enable it to fund its planned construction and operating expenses for at least the next twelve months from year end. The Company believes that it will have revenues to cover operating costs once Cannara receives its cultivation license and ShopCBD.com launches its e-commerce platform.

OPERATING ACTIVITIES
For the three month period and year ended August 31, 2019, cash used for operating activities was $1,060,099 and $7,409,294 respectively. The cash flow used in operating activities was primarily attributable to expenses relating to salaries of personnel and professional fees for the development of the Company’s segmented business operations, initial marketing costs, office, travel and public company-related expenses.

FINANCING ACTIVITIES
For the three month period ended August 31, 2019, cash provided from financing activities amounted to $1,735,408 which results from $2,160,000 raised by way of a non-brokered private placement of common shares of the Company at a price of $0.18 per common share on July 12, 2019 offset by $347,962 in interest expenses paid on the mortgage on the Farnham Facility and $69,514 in lease payments for the Company’s corporate head office.

For the year ended August 31, 2019, cash flows provided from financing activities amounted to $42,660,844 which, in addition to amounts raised from the above private placement, consist of amounts raised from the issuance of 207,640,375 common shares and 868,000 warrants by the Company and 238,285,661 common shares from the first and second round of private placement by Global shopCBD.com Inc. Amounts spent on financing activities also include $1,376,717 in interest paid to service the mortgage payable and $235,454 in lease payment for the Company’s corporate head office.

INVESTING ACTIVITIES
For the three month period and year ended August 31, 2019, cash used for investing activities amounted to $5,025,170 and $21,639,794 respectively. Investing activities during the periods relate substantially to construction and equipment costs incurred for Phase 1 Farnham Facility as well as deposits made on property, plant and equipment to be received. In addition, the Company invested $91,319 and 281,020 respectively, for the technical development of its online e-commerce platform in relation to its U.S. operations. For the three month period and year ended August 31, 2019, the Company received $218,851 and $679,615 respectively in interest income relating to interest earned on the cash balance held at a schedule 1 financial institution.

SUBSEQUENT EVENTS
On September 12, 2019, the Company announced that it has submitted to Health Canada its Site Evidence Package for Phase 1 of the Farnham Facility which will permit the Company to cultivate, process and sell premium cannabis and cannabis-infused products under The Cannabis Act. The submission of the site evidence package marks the substantial completion of the Phase 1 construction of the Farnham Facility. Also subsequent to year end, the Company secured a first mortgage against the Farnham Facility in the value of $6 million with the Canadian Imperial Bank of Commerce. These funds reduced the existing vendor take-back mortgage.

OUTSTANDING SHARES
As at the date of this report, the Company had 706,770,705 common shares outstanding. There were 14,948,710 warrants and 39,029,424 options issued.

For further information, the complete Financial Statements and Management’s Discussion and Analysis for the three and year ended August 31, 2019 along with additional information about the Company and all of its public filings are available at www.sedar.com and the Company’s website.

About Cannara Biotech 
Cannara Biotech (CSE: LOVE) (OTCQB: LOVFF) (FRA: 8CB) is building one of the largest indoor cannabis cultivation facilities (625,000 square feet) in Canada and the largest in Quebec. Leveraging Quebec’s low electricity costs, Cannara Biotech’s facility will produce premium-grade indoor cannabis and cannabis-infused products for the Canadian and international markets.

The CSE nor its Regulation Services Provider 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.

11/26/2019 4:30:00 PM

 

Cannara Biotech Secures $6 Million Mortgage Financing Facility with Canadian Imperial Bank of Commerce
Print item:Cannara Biotech Secures $6 Million Mortgage Financing Facility with Canadian Imperial Bank of Commerce  View PDF item:Cannara Biotech Secures $6 Million Mortgage Financing Facility with Canadian Imperial Bank of Commerce

VANCOUVEROct. 10, 2019 /PRNewswire/ – Cannara Biotech Inc. (“Cannara Biotech” or the “Company”) (CSE: LOVE) (OTCQB: LOVFF) (FRA: 8CB), an emerging vertically integrated cannabis company focused on indoor cultivation and sale of premium cannabis and cannabis-infused products, announced it has secured a first mortgage against its Farnham Facility in the value of $6 million with the Canadian Imperial Bank of Commerce. These funds will reduce the existing vendor take-back mortgage, thereby significantly reducing debt service costs.

The 625,000 square foot Farnham facility is situated forty-five minutes from Montreal on 27 acres, with 32-foot height ceilings. Recently, construction was completed on Phase One consisting of 170,000 square feet, of which 110,000 is dedicated to indoor cultivation with a capacity of 20,000 kg of premium dried cannabis once the cultivation license is granted. The remaining finished space is designed to accommodate various processing stages such as manufacturing, extraction and packaging. The building is currently valued at more than $40 million.

“Having constructed a state-of-the-art production and processing facility in an outstanding location, and recently advanced our commercial readiness by filing our Health Canada evidence package, this leading Canadian institution was more than comfortable to be our financial partner,” said Zohar Krivorot, President and CEO of Cannara. “Once Cannara’s cultivation and sales licenses are granted we’ll look to augment this mortgage to further reduce our debt service costs.”

About Cannara Biotech
Cannara Biotech (CSE: LOVE) (OTCQB: LOVFF) (FRA: 8CB) is building one of the largest indoor cannabis cultivation facilities (625,000 square feet) in Canada and the largest in Quebec. Leveraging Quebec’s low electricity costs, Cannara Biotech’s facility will produce premium-grade indoor cannabis and cannabis-infused products for the Canadian and international markets.

The CSE nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.

Cautionary Statement Regarding “Forward-Looking” Information

This 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.

10/10/2019 7:30:00 AM

 

Cannara Biotech Announces Non-Brokered Private Placement of 12,000,000 Common Shares
Print item:Cannara Biotech Announces Non-Brokered Private Placement of 12,000,000 Common Shares  View PDF item:Cannara Biotech Announces Non-Brokered Private Placement of 12,000,000 Common Shares

VANCOUVERJuly 12, 2019 /PRNewswire/ – Cannara Biotech Inc. (the “Corporation” or “Cannara“) (CSE: LOVE) (FRA: 8CB) (OTCMKTS: LOVFF), an emerging vertically integrated cannabis company focused on cultivation, and cannabis-infused products, is pleased to announce that it has raised $2,160,000 by way of non-brokered private placement of common shares of the Corporation (each a “Common Share” and collectively, the “Common Shares”) at a price of $0.18 per Common Share (the “Offering”). The net proceeds from the Offering shall be used for general corporate purposes including the ongoing build-out at Cannara’s facility and to provide additional working capital.

The Offering is expected to close on or about July 20, 2019 (the “Closing Date”) and remains subject to approval of the Canadian Securities Exchange.

About Cannara Biotech
Cannara Biotech (CSE:LOVE) is building one of the largest indoor cannabis cultivation facilities (625,000 square feet) in Canada and the largest in Quebec. Leveraging Quebec’s low electricity costs, Cannara Biotech’s facility will produce premium-grade indoor cannabis and cannabis-infused products for the Canadian and international markets.

The CSE nor its Regulation Services Provider 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.

7/12/2019 7:30:00 AM