Cannara Expands Financing to an $80 Million Syndicated Credit Facility with BMO and TD Bank, Further Strengthening Its Financial Foundation for Continued Growth

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Postmedia has not reviewed the content. by GlobeNewswire Cannara Expands Financing to an $80 Million Syndicated Credit Facility with BMO and TD Bank, Further Strengthening Its Financial Foundation for Continued GrowthAuthor of the article:The new financing structure provides greater financial flexibility through an expanded $40 million revolving credit facility, reduced borrowing costs and an extended maturity to December 31, 2029THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountMONTREAL, Sept. 10, 2026 (GLOBE NEWSWIRE) — Cannara Biotech Inc. (“Cannara”, the “Company”, “us” or “we”) (TSX: LOVE) (OTCQX: LOVFF) (FRA: 8CB0), a vertically integrated producer of premium-grade cannabis products at affordable prices with two mega facilities in Québec spanning over 1,600,000 sq. ft., today announced that its operating subsidiary, Cannara Biotech (OPS) Inc., has entered into an amended and restated syndicated credit agreement (the “Restated Credit Facility“) with Bank of Montreal (“BMO“) and The Toronto-Dominion Bank (“TD“). The Restated Credit Facility provides Cannara with $80 million of total committed borrowing capacity, representing a $30 million increase from the approximately $50 million accessible immediately prior to refinancing. The new structure primarily refinances existing borrowings while providing additional liquidity for working capital and strategic capital investments.BMO will continue to serve as administrative agent, syndication agent and sole bookrunner and, together with TD, will act as co-lead arranger. TD joins the lending syndicate as part of the expanded financing, broadening Cannara’s banking relationships and institutional lending support.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againThe Restated Credit Facility refinances Cannara’s existing secured credit facilities, increases the Company’s committed revolving capacity from $10 million to $40 million and extends the maturity date from December 31, 2027, to December 31, 2029. The expanded financing is intended to provide additional liquidity for working capital and general corporate requirements while supporting continued capital investment at Cannara’s Valleyfield facility.“The establishment of an $80 million syndicated credit facility with two leading Canadian banks is a strong endorsement of the business we have built and the disciplined, profitable growth we continue to deliver,” said Zohar Krivorot, Founder and Chief Executive Officer of Cannara. “Adding TD alongside our longstanding relationship with BMO expands our banking platform and provides Cannara with the financial capacity to execute on our next phase of growth in Canada and internationally.”“This refinancing meaningfully strengthens our capital structure by increasing our revolving capacity to $40 million, extending our maturity to December 2029 and consolidating our existing facilities into a more flexible financing package,” said Niko Sosiak, Chief Operating Officer of Cannara. “I am pleased to be joining Cannara at this important stage in its growth,” said Nicholas Fozard, Cannara’s recently appointed Acting Chief Financial Officer. “With the Restated Credit Facility now in place, I look forward to working alongside the leadership team as we continue to invest with discipline in the Company’s growth priorities and build upon Cannara’s strong financial foundation.”RESTATED CREDIT FACILITY HIGHLIGHTSThe key changes represented by the Restated Credit Facility are described below.$40 million term loan: The term loan will refinance amounts outstanding under Cannara’s existing term loan, capital expenditures facility and revolving credit facilities, with the remaining proceeds available to fund capital expenditures at the Valleyfield facility.$40 million revolving credit facility: The committed revolver, increased from $10 million, is available through multiple draws for ordinary working capital and general corporate requirements.Extended maturity: Both facilities mature on December 31, 2029, extending the Company’s debt maturity by two years.Updated Financial Covenants: The Restated Credit Facility also reflects revised financial covenants that provide the Company with flexibility and liquidity to advance its previously announced expansion program at its Valleyfield facility. The program includes the development of the Company’s new post-processing centre, which is being designed to support EU-GMP certification, and the activation of additional cultivation zones required to meet growing demand. The Restated Credit Facility amends and restates the Company’s original credit agreement in a single, consolidated document, and the Company’s obligations under the original agreement continue uninterrupted under the new terms. All other original terms and conditions of the Restated Credit Facility remain in full force and effect. For a full description of the original credit agreement, please refer to the Company’s Annual Information Form for the fiscal year ended August 31, 2025. A redacted copy of the Restated Credit Facility will be filed under the Company’s profile on SEDAR+ at www.sedarplus.ca.This advertisement has not loaded yet.This advertisement has not loaded yet, but your article continues below.Scott Carroll, PhD, MBAVice President, Investor Relations & Commercial Strategyscott.carroll@cannara.caCannara Biotech Inc. (TSX: LOVE) (OTCQX: LOVFF) (FRA: 8CB0), is a vertically integrated producer of affordable premium-grade cannabis and cannabis-derivative products. Cannara owns two mega facilities based in Québec spanning over 1,600,000 sq. ft., providing the Company with 100,000 kg of potential annualized cultivation output. Leveraging Québec’s favourable energy costs, Cannara maintains an efficient, low-cost production model. For more information, please visit cannara.ca.CAUTIONARY STATEMENT REGARDING “FORWARD-LOOKING” INFORMATIONThis news release may contain “forward-looking information” within the meaning of Canadian securities legislation (“forward-looking statements”). These forward-looking statements are made as of the date of this press release and the Company does not intend, and does not assume any obligation, to update these forward-looking statements, except as required under applicable securities legislation. Forward-looking statements relate to future events or future performance and reflect Company management’s expectations or beliefs regarding future events and include, but are not limited to, not limited to, statements regarding the intended use of proceeds from the expanded financing, including additional liquidity for working capital and general corporate requirements and continued capital investment at the Valleyfield facility; the advancement of Cannara’s previously announced expansion program at Valleyfield, including the development of the Company’s new post-processing centre and the activation of additional cultivation zones and the Company’s ability to support growing demand. In certain cases, forward-looking statements can be identified by the use of words such as “plans,” “expects” or “does not expect,” “is expected,” “budget,” “scheduled,” “estimates,” “forecasts,” “intends,” “anticipates” or “does not anticipate,” or “believes,” or variations of such words and phrases or statements that certain actions, events or results “may,” “could,” “would,” “might” or “will be taken,” “occur” or “be achieved” or the negative of these terms or comparable terminology. In this document, certain forward-looking statements are identified by words including “may,” “future,” “expected,” “intends” and “estimates.” By their very nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance, or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements.Forward-looking information is based upon a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from those that are disclosed in, or implied by, such forward-looking information. These risks and uncertainties include, but are not limited to, the risk factors which are discussed in greater detail under “Risk Factors” in the Company’s AIF available on SEDAR+ at www.sedarplus.ca and under the “Investor Area” section of our website at https://www.cannara.ca/en/investor-area.Other risks not presently known to the Company or that the Company believes are not significant could also cause actual results to differ materially from those expressed in its forward-looking statements. Although the forward-looking information contained herein is based upon what we believe are reasonable assumptions, readers are cautioned against placing undue reliance on this information since actual results may vary from the forward-looking information. Certain assumptions were made in preparing the forward-looking information concerning the availability of capital resources, business performance, market conditions, as well as customer demand. Consequently, all of the forward-looking information contained herein is qualified by the foregoing cautionary statements, and there can be no guarantee that the results or developments that we anticipate will be realized or, even if substantially realized, that they will have the expected consequences or effects on our business, financial condition or results of operation. Unless otherwise noted or the context otherwise indicates, the forward-looking information contained herein is provided as of the date hereof, and we do not undertake to update or amend such forward-looking information whether as a result of new information, future events or otherwise, except as may be required by applicable law.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.