Cannara Announces Amendment and Upsize of BMO Credit Facility to Support Facility Expansion at Valleyfield
MONTREAL, Aug. 21, 2025 (GLOBE NEWSWIRE) -- Cannara Biotech Inc. ("Cannara", "the Company", "us" or "we") (TSXV:LOVE) (OTCQB:LOVFF) (FRA: 8CB0), a vertically integrated producer of premium-grade cannabis products at disruptive prices with two mega facilities based in Québec spanning over 1,650,000 sq. ft., is pleased to announce amendments to its existing credit facility with Bank of Montreal ("BMO") acting as administrative agent, lead arranger, syndication agent and sole bookrunner (the "Restated Credit Facility"), including a $10 million upsize to support strategic capital investments at its Valleyfield facility.
"These amendments to our credit facility with BMO reflect the confidence in Cannara's growth strategy and operational performance," said Zohar Krivorot, President & CEO of Cannara.
"With improved financial flexibility and reduced financing costs, we are well positioned to execute the expansion of our Valleyfield facility and deliver sustained value to our shareholders. Cannara remains committed to maintaining a strong balance sheet while investing in strategic initiatives that support long-term profitable growth," added Nicholas Sosiak, Chief Financial Officer of Cannara.
$10 Million Capital Expenditures Facility
The Restated Credit Facility includes the addition of a $10 million committed delayed capital expenditures debt facility (the "Capital Expenditures Facility"). The Capital Expenditures Facility is available by way of multiple draws until July 2026 with a 10-year amortization schedule, repaid in quarterly instalments of unblended payments of principal and interest, with the remaining balance due on December 31, 2027.
The new Capital Expenditures Facility will fund the initial phase of Cannara's post-harvest expansion at Valleyfield, introducing state-of-the-art hang-drying, freezing, trimming, and packaging capabilities, expanded processing and storage areas, and enhanced butane extraction capacity. By enabling upcoming cultivation room activations beyond the current 12 operating zones, this phase lays the foundation for Cannara's next stage of growth and advances the Company toward its long-term goal of 100,000 kg in annual production capacity.
Previously Disclosed Amendments to the Restated Credit Facility
In addition to the Capital Expenditures Facility announced today, the Company has previously disclosed the following changes to the Restated Credit Facility.
Interest Rate Reduction: On June 18, 2025, the Company announced that it had secured a total 50-basis-point reduction in the interest rate spread under the Restated Credit Facility, achieved in two stages: an initial 25-basis-point decrease through an amendment to the credit agreement, and a further 25-basis-point reduction triggered by meeting certain covenant thresholds as of the second quarter ...
