Cannara talks up vape launch in Quebec

Executive Summary

• Cannara Biotech reports achieving a #1 market share position in Quebec for cannabis retail sales in December 2025, with a 14.7% share, driven by strong initial demand in the newly launched vape cartridge category.
• The company announced the cancellation and reissuance of 544,600 stock options due to an administrative oversight that caused the company to exceed limits under its rolling stock option and RSU plans; the reissuance maintains original terms and does not increase the total options outstanding.
• The company is seeking shareholder approval at its upcoming AGM on Jan. 29, 2026, to convert its stock option and RSU plans from rolling to fixed plans, with TSX Venture Exchange having provided conditional approval.

Key Details

• Market Share Performance:
  • Achieved 29.7% category share by retail sales value in the Quebec vape cartridge category for November and December 2025.
  • Achieved 14.7% share of total cannabis retail sales in Quebec for December 2025, representing a 100-basis point month-over-month improvement.
  • Five of the 25 total SKUs approved for the vape category launch.
• Stock Option Correction:
  • 544,600 stock options were cancelled and reissued on Dec. 31, 2025, to correct an administrative oversight regarding plan limits.
  • 515,000 of these options were held by directors and officers.
  • Specifics of insider options: 500,000 options at an exercise price of $1.44 expiring Aug. 27, 2035; 15,000 options at an exercise price of $1.80 expiring Nov. 20, 2032.
  • The reissuance occurred on Jan. 2, 2026, with substantially the same terms, exercise prices, vesting schedules, and expiry dates as originally granted.
  • No net increase in stock options outstanding under the stock option plan resulted from this action.
• Plan Amendments & Governance:
  • Shareholder approval sought at the Annual General and Special Meeting on Jan. 29, 2026.
  • Proposal to convert stock option and RSU plans from "rolling" to "fixed" security-based compensation plans.
  • Proposed fixed limit: Aggregate number of listed shares issuable under both plans will be fixed at 15% of issued and outstanding listed shares as of the date of shareholder approval.
  • TSX Venture Exchange has provided conditional approval of the amended plans, subject to shareholder approval.
• RSU Acceleration:
  • 15,000 Restricted Share Units (RSUs) previously granted to late director/officer Jack Kay were accelerated to vest on Dec. 31, 2025, following his passing on Nov. 8, 2025, to ensure compliance with RSU plan terms.

Notable Quotes

• "The vape cartridge category launch in our home province of Quebec has been a valuable opportunity to further expand our position as Canada's No. 1 premium vape producer... I am encouraged at the strong initial consumer demand for our premium vapes," said Zohar Krivorot, President and CEO.
• "Our highly advanced, vertically integrated platform enabled the creation of truly premium, best-in-class products for Quebec's newly launched vape category. We are pleased to see strong reception to the launch of our first-ever rosin vape cartridge offerings, alongside our already nationally leading premium live resin vapes," said Nicholas Sosiak, CFO.