Cannara completes Valleyfield building sale for $5.5M

Mr. Zohar Krivorot reports CANNARA BIOTECH ENHANCES FINANCIAL FLEXIBILITY THROUGH STRATEGIC ASSET SALE Cannara Biotech Inc. has completed the sale of a non-core building under construction and a related parcel of land located at its Valleyfield site for total proceeds of $5.5-million. This transaction represents a meaningful milestone in the company's continuing focus on capital discipline and operational efficiency. As part of Cannara's previously announced asset optimization plan, management had committed in January, 2024, to divest a parcel of unused land and an adjacent building under construction that was initially intended for lease. As previously disclosed in the company's interim condensed consolidated financial statements for the three and nine-month periods ended May 31, 2025, the building under construction and the land on which it is being constructed had been actively marketed for sale and were classified as held for sale as at May 31, 2025, with a carrying value of $4,951,165. As a result of the transaction, the net proceeds of $5.45-million will be applied toward reducing the principal balance of Cannara's existing term loan, effectively decreasing the company's long-term debt. There will be no other changes to the terms of the company's existing credit facilities. "This transaction reflects our disciplined execution of Cannara's long-term strategy to unlock value from underutilized assets while preserving financial flexibility," said Zohar Krivorot, president and chief executive officer of Cannara. "By streamlining our real estate footprint, we are not only strengthening our balance sheet but also sharpening our focus on scalable, profitable growth within our core cannabis operations." "Reducing our debt by $5.45-million further enhances Cannara's capital structure and supports future margin expansion," added Nicholas Sosiak, chief financial officer of Cannara. "This transaction underscores our commitment to strategic asset management and operational efficiency as we continue to drive sustainable profitability." The sale represents another step forward in Cannara's broader plan to create long-term shareholder value by aligning resources with its core business and growth trajectory. About Cannara Biotech Inc. Cannara Biotech is a vertically integrated producer of affordable premium-grade cannabis and cannabis-derivative products for the Canadian markets. Cannara owns two mega facilities based in Quebec spanning over 1.65 million square feet, providing the company with 100,000 kilograms of potential annualized cultivation output. Leveraging Quebec's low electricity costs, Cannara's facilities produce premium-grade cannabis products at an affordable price. We seek Safe Harbor.