Cannara Completes Acquisition of Medican Organic Inc.

• Cannara Biotech Inc. completed the acquisition of all shares of Medican Organic Inc. for $2.8 million on May 6, 2026.
• The transaction finalizes a prior agreement regarding the Valleyfield cultivation and manufacturing facility originally purchased from Medican in June 2021.
• Nicholas Sosiak transitioned from CFO to Chief Operating Officer (COO) effective April 23, 2026.
• Mr. Sosiak will remain as interim CFO while a permanent successor is sought.
• The acquisition provides incremental operational expertise including unique extract manufacturing processes and refined cultivation practices.
• Medican Organic Inc. was a wholly owned subsidiary of BZAM Ltd., which exited CCAA proceedings prior to this sale.

• Acquisition Size: The $2.8 million purchase price represents approximately 1.7% of the estimated market capitalization ($166.5M), classifying it as immaterial in terms of balance sheet scale.
• Strategic Value: While small financially, the deal consolidates previously announced assets and adds specific extract manufacturing capabilities which may improve product margins long-term.
• Leadership Change: The CFO to COO transition creates a temporary vacancy at the financial helm; reliance on an interim CFO introduces minor governance risk until a permanent appointment is made.
• Market Context: This follows strong Q2 2026 earnings (April 14) showing positive operating cash flow ($2.9M) and #1 market share in Quebec, suggesting the acquisition supports existing momentum rather than pivoting strategy.
• Data Discrepancy Note: The provided transcript context references "Lovesac" (furniture company) and is irrelevant to Cannara Biotech; analysis relies solely on news releases and price data for Cannara.

• Company: Cannara Biotech Inc., trading under ticker "LOVE" on the Toronto Stock Exchange (TSX).
• Flagship Project: Valleyfield cultivation and manufacturing facility in Quebec, which is currently undergoing expansion with additional grow zones fit-out for FY2027.
• Market Position: Holds #1 retail market share in Quebec (estimated 14.3% as of Q2 2026) and national retail market share of 4.4%.
• Brands: Tribal, Nugz, Orchid CBD.
• Operations: Vertically integrated platform enabling premium rosin vape cartridges and live resin vapes.