Cannara Achieves #1 Market Share Position in Quebec as of December 2025 and Provides Update on Quebec Vape Category Launch

Executive Summary

• Cannara Biotech reports a strong preliminary performance in Quebec’s newly launched vape cartridge category, achieving a 29.7% share of retail sales value and securing the #1 market‑share position by total cannabis retail sales in December 2025 (14.7% share).
• The board cancelled and re‑issued 544,600 stock options (including 515,000 held by insiders) to correct an administrative oversight; no net increase in outstanding options resulted.
• Accelerated vesting of 15,000 RSUs for the late former director Jack Kay was approved, effective Dec 31 2025.

Key Details

• Vape Category Launch Performance
• Estimated retail sales data (Nov‑Dec 2025) show Cannara holding a 29.7% share of category sales value.

• December 2025 market‑share: #1 in Quebec by total cannabis retail sales, 14.7% share (up 100 basis points month‑over‑month).

• Executive Comments

• Zohar Krivorot, President & CEO – highlighted the launch of 5 SKUs and strong consumer demand for premium vapes.

• Nicholas Sosiak, CFO – emphasized the vertically integrated platform enabling premium rosin vape cartridges and live resin vapes.

• Stock Option Cancellation & Re‑Issuance

• Board approval date: Dec 31 2025; re‑issuance to occur on Jan 2 2026.
• Total options affected: 544,600 (including 515,000 held by directors/officers).
• Exercise prices & expiries: 500,000 options at $1.44 expiring Aug 27 2035; 15,000 options at $1.80 expiring Nov 20 2032.

• No net increase in outstanding options; terms (exercise price, vesting schedule, expiry) remain unchanged.

• Shareholder Proposal

• At the Annual General & Special Meeting (Jan 29 2026), shareholders will be asked to approve conversion of the rolling Stock Option Plan and RSU Plan to fixed‑percentage plans (15% of outstanding shares).

• TSX Venture Exchange has given conditional approval, pending shareholder vote.

• Accelerated Vesting of RSUs

• Board approved accelerated vesting of 15,000 restricted share units previously granted to the late Jack Kay, effective Dec 31 2025, to comply with plan terms after his passing on Nov 8 2025.

Notable Quotes

• “The vape cartridge category launch in our home province of Québec has been a valuable opportunity to further expand our position as Canada’s #1 premium vape producer.” – Zohar Krivorot, President & CEO
• “We are pleased to see strong reception to the launch of our first‑ever rosin vape cartridge offerings… we look forward to the continued consumer adoption of the category.” – Nicholas Sosiak, CFO