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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, 2029
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MONTREAL, 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.
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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.
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The 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.
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“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.”
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“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.”
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RESTATED CREDIT FACILITY HIGHLIGHTS
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The key changes represented by the Restated Credit Facility are described below.
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- $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.