LOVFF Overview

Sale of Non-Core Assets: Cannara Biotech Inc. successfully sold a non-core building and land for $5.5 million, as part of its asset optimization plan aimed at enhancing operational efficiency and reducing long-term debt.

Strategic Focus on Core Operations: The transaction is aligned with Cannara's strategy to streamline its real estate footprint and focus on profitable growth within its core cannabis operations, ultimately aiming to create long-term shareholder value.

Financial Performance: Cannara Biotech reported a Q2 2025 GAAP EPS of $0.04, with net revenues increasing by 35% to $26.6 million compared to Q2 2024, attributed to brand growth and product innovations.

Profit Growth: The company's gross profit before fair value adjustments rose 52% to $10.8 million in Q2 2025, leading to an improvement in gross margins to 41%.

Cannara Biotech's Product Launch: Cannara Biotech Inc. has received preliminary acceptance from the Société Québécoise du Cannabis for five vape cartridge products, set to be distributed in all Québec retail stores and online starting November 2025, marking a significant entry into the province's cannabis market.

Market Potential and Innovations: The launch includes live resin and live rosin vape cartridges, reflecting Cannara's commitment to high-quality, additive-free products, as well as tapping into a growing market where 25% of Québec consumers reported vaping in the past year.

Recent Developments in Cannabis Legislation: Maryland has legalized cannabis consumption lounges with restrictions, Hawaii has expanded medical access but raised privacy concerns, and the Cayman Islands showed support for decriminalization through a referendum.

Market Trends and Financial Updates: Cannara Biotech reported record revenues, SNDL is undergoing a strategic review after missing revenue expectations, and new cannabis products like THC cocktails and pre-rolls are being launched by celebrities.

Record Financial Performance: Cannara Biotech Inc. reported a 35% increase in net revenues to $26.6 million for Q2 2025, alongside a 52% rise in gross profit and a record Adjusted EBITDA of $7.1 million, marking the sixteenth consecutive quarter of positive results.

Market Expansion and Growth Strategy: The company expanded its national market share to 3.9%, with significant gains in Québec, Ontario, and Alberta, while activating two new grow zones to enhance production capacity and support ongoing product innovation.

Cannara Biotech Presentation: Cannara Biotech Inc. will present at the Ventum Capital Markets Canadian Cannabis conference on March 12, showcasing its financial performance and market growth, while emphasizing its cost advantages from operations in Québec.

Company Overview: Cannara is a vertically integrated cannabis producer with two large facilities in Québec, capable of producing 100,000 kg of cannabis annually, leveraging low electricity costs to maintain affordable pricing for premium-grade products.