Cannara Biotech (LOVE) investor relations material

Company overview and operational strategy

• Upgraded to TSX in 2026, with a focus on scaling operations and leveraging internal expertise in cannabis cultivation.

• Operates over 1.6 million sq ft of cultivation assets, aiming to double production from 50,000 kgs to 100,000 kgs in 2–3 years.

• Holds top market share in Quebec and is expanding in Ontario, Alberta, and BC, with a disciplined, phased approach to facility expansion.

• Vertically integrated with three flagship brands targeting different market segments and a strong focus on genetics and product innovation.

• Internal ownership exceeds 50%, with recent capital raised from institutional investors to support growth.

Financial performance and capital allocation

• Achieved 20 consecutive quarters of positive adjusted EBITDA and 14 quarters of operating cash flow.

• FY2025 gross revenue was CAD 150 million, with CAD 107 million net after excise tax; gross margins consistently above 40%.

• Adjusted EBITDA reached CAD 28.1 million, with CAD 20 million in cash flow; May 2026 marked the highest sales month to date.

• Owns facilities acquired at significant discounts, generating additional revenue from non-cannabis tenants.

• Over CAD 20 million in cash and CAD 16 million in credit lines available to fund ongoing CapEx and expansion.

Expansion plans and innovation

• Plans to invest CAD 12 million to activate 12 more grow rooms and CAD 20 million in 2027 to complete processing capacity.

• Focused on scaling within Canada, with international opportunities (e.g., Germany) being explored but not prioritized.

• Growth in new provinces driven by product quality, innovation, and gradual build-out of sales and marketing teams.

• R&D and IP development in genetics and yield optimization are central to maintaining profitability and market share.

• Sees potential for international expansion and platform licensing once Canadian build-out is complete in 2–3 years.