Cannara Biotech approved for DTC electronic clearing

Executive Summary

• Cannara Biotech’s common shares have become eligible for electronic clearing and settlement through the Depository Trust Company (DTC), expanding U.S. investor access and liquidity.
• Completed a debt‑to‑equity conversion by issuing 3,462,763 common shares to Olymbec Investments Inc. at $1.80 per share, fully retiring approximately $6.2 million of indebtedness (principal and accrued interest).
• Clarified the expiration date for 40,000 stock options granted to Bristol Capital Ltd., extending the expiry to April 25 2029.

Key Details

• DTC Eligibility: Cannara’s common shares are now eligible for electronic clearing/settlement in the U.S. via the Depository Trust Company, facilitating faster trades and broader brokerage access.
• Debt‑to‑Equity Conversion: Issuance of 3,462,763 common shares to Olymbec Investments Inc. at $1.80 per share (total gross consideration ≈ $6.2 million).
• Repayment includes $4.7 million principal and ~$1.5 million accrued interest on the convertible debenture previously issued to Olymbec.
• Proceeds were originally used to purchase Cannara’s megaproduct‑ion facility in Valleyfield, Quebec.
• Balance Sheet Impact: The conversion reduces debt leverage and interest obligations, preserving liquidity for long‑term growth initiatives.
• Option Grant Clarification: 40,000 stock options granted to Bristol Capital Ltd. on April 25 2025 now expire on April 25 2029 (48 months from grant), correcting the previously misstated expiry date of April 25 2028; all other terms unchanged.

Notable Quotes

• “Achieving DTC eligibility marks an important milestone in our capital markets strategy… broadens our potential shareholder base and further enhances Cannara's visibility in the United States.” – 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