Cannara Announces DTC Eligibility to Facilitate U.S. Investor Access and Strengthens Balance Sheet through completion of Debt-to-Equity Conversion

Executive Summary

• Cannara Biotech’s common shares are now eligible for electronic clearing and settlement in the United States through The Depository Trust Company (DTC), expanding U.S. investor access and liquidity.
• Completed issuance of 3,462,763 common shares to Olymbec Investments at $1.80 per share, fully satisfying approximately $6.2 million of indebtedness (principal and accrued interest) under a convertible debenture.
• Clarified that 40,000 stock options granted to Bristol Capital Ltd. will expire on April 25 2029 (48 months from grant), correcting the previously stated expiration date.

Key Details

• DTC Eligibility:

• Shares now cleared/settled via DTC, a subsidiary of DTCC, enabling faster U.S. brokerage transactions and broader market exposure.

• Olymbec Share Issuance (Financing):

• Quantity: 3,462,763 common shares issued to Olymbec Investments Inc.
• Issue price: $1.80 per share.
• Gross proceeds applied to debt repayment: ≈ $6.2 million (principal $4.7 M + accrued interest ≈ $1.5 M).

• Debt eliminated under convertible debenture previously issued to Olymbec; proceeds originally used to purchase Cannara’s mega production facility in Valleyfield, QC.

• Impact on Balance Sheet:

• Reduction of debt leverage and interest obligations.

• Preservation of liquidity to support long‑term growth strategy.

• Option Grant Clarification:

• 40,000 stock options granted to Bristol Capital Ltd. on April 25 2025 now set to expire April 25 2029 (48 months from grant), correcting earlier misstatement of an 2028 expiry.

• All other option terms remain unchanged.

• Management Comments:

• CEO Zohar Krivorot highlighted DTC eligibility as a “milestone” for the company’s capital markets strategy and U.S. investor outreach.
• CFO Nicholas Sosiak emphasized that the Olymbec share issuance strengthens the balance sheet and enhances financial flexibility.

Notable Quotes

• “Achieving DTC eligibility marks an important milestone in our capital markets strategy,” – Zohar Krivorot, Founder & CEO.
• “The Olymbec Share Issuance … further reduces our debt leverage and interest obligations while preserving liquidity to support the execution of our long‑term growth strategy,” – Nicholas Sosiak, CFO.