Cannara Biotech Enhances Financial Flexibility Through Strategic Asset Sale
Cannara Biotech (OTCQB: LOVFF), a vertically integrated cannabis producer with two mega facilities in Qu茅bec, has completed the sale of a non-core building under construction and land at its Valleyfield site for $5.5 million. The assets, previously classified as "held for sale" with a carrying value of $4,951,165, were part of the company's asset optimization plan announced in January 2024.
The net proceeds of $5.45 million will be used to reduce the principal balance of Cannara's existing term loan. The transaction aligns with the company's strategy to unlock value from underutilized assets while maintaining focus on its core cannabis operations.
Cannara Biotech (OTCQB: LOVFF), produttore di cannabis verticalmente integrato con due mega strutture in Qu茅bec, ha completato la vendita di un edificio non core in costruzione e del terreno nel suo sito di Valleyfield per $5.5 million. Gli asset, precedentemente classificati come "held for sale" con un valore contabile di $4,951,165, facevano parte del piano di ottimizzazione degli asset annunciato nel gennaio 2024.
I proventi netti di $5.45 million saranno utilizzati per ridurre il saldo capitale del prestito a termine esistente di Cannara. L'operazione 猫 coerente con la strategia dell'azienda di liberare valore da attivit脿 sottoutilizzate mantenendo il focus sulle sue operazioni core nel settore della cannabis.
Cannara Biotech (OTCQB: LOVFF), productor de cannabis integrado verticalmente con dos mega instalaciones en Qu茅bec, ha completado la venta de un edificio no esencial en construcci贸n y del terreno en su emplazamiento de Valleyfield por $5.5 million. Los activos, previamente clasificados como "held for sale" con un valor en libros de $4,951,165, formaban parte del plan de optimizaci贸n de activos anunciado en enero de 2024.
Los ingresos netos de $5.45 million se destinar谩n a reducir el saldo principal del pr茅stamo a plazo existente de Cannara. La transacci贸n se alinea con la estrategia de la compa帽铆a de desbloquear valor de activos infrautilizados mientras mantiene el enfoque en sus operaciones principales de cannabis.
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靾滊Г臧侂寑旮� $5.45 million鞚� Cannara鞚� 旮办〈 旮绊暅攵� 雽�於� 鞗愱笀 靸來櫂鞐� 靷毄霅� 鞓堨爼鞛呺媹雼�. 鞚措矆 瓯半灅電� 鞝�頇滌毄 鞛愳偘鞐愳劀 臧�旃橂ゼ 鞁ろ槃頃橂┐靹� 頃奠嫭鞚� 雽�毵� 靷梾鞐� 歆戩頃橂牑電� 須岇偓 鞝勲灥瓿� 鞚检箻頃╇媹雼�.
Cannara Biotech (OTCQB: LOVFF), producteur de cannabis int茅gr茅 verticalement disposant de deux m茅ga-installations au Qu茅bec, a finalis茅 la vente d'un b芒timent non essentiel en construction et d'un terrain sur son site de Valleyfield pour $5.5 million. Les actifs, auparavant class茅s "held for sale" avec une valeur comptable de $4,951,165, faisaient partie du plan d'optimisation des actifs annonc茅 en janvier 2024.
Le produit net de $5.45 million sera utilis茅 pour r茅duire le solde du capital du pr锚t 脿 terme existant de Cannara. La transaction s'inscrit dans la strat茅gie de la soci茅t茅 visant 脿 lib茅rer de la valeur d'actifs sous-exploit茅s tout en maintenant l'accent sur ses activit茅s principales dans le secteur du cannabis.
Cannara Biotech (OTCQB: LOVFF), ein vertikal integrierter Cannabisproduzent mit zwei Mega-Anlagen in Qu茅bec, hat den Verkauf eines nicht zum Kerngesch盲ft geh枚renden, sich im Bau befindlichen Geb盲udes und eines Grundst眉cks an seinem Standort in Valleyfield f眉r $5.5 million abgeschlossen. Die Verm枚genswerte, zuvor als "held for sale" mit einem Buchwert von $4,951,165 klassifiziert, waren Teil des im Januar 2024 angek眉ndigten Asset-Optimierungsplans des Unternehmens.
Die Nettoerl枚se von $5.45 million werden verwendet, um den Kapitalbetrag des bestehenden Terminkredits von Cannara zu reduzieren. Die Transaktion entspricht der Strategie des Unternehmens, Wert aus untergenutzten Verm枚genswerten freizusetzen und gleichzeitig den Fokus auf das Kerngesch盲ft Cannabis beizubehalten.
- Sale of non-core assets generated $5.5 million in proceeds
- Transaction results in $5.45 million debt reduction
- Sale price represents a premium over the $4.95 million carrying value
- Strategic move improves operational efficiency and balance sheet strength
- Reduction in total real estate footprint and assets
MONTREAL, Aug. 14, 2025 (GLOBE NEWSWIRE) -- (鈥�Cannara鈥�, 鈥渢he Company鈥�, 鈥�us鈥� or 鈥�we鈥�) () () (), a vertically integrated producer of premium-grade cannabis products at affordable prices with two mega facilities based in Qu茅bec spanning over 1,650,000听sq. ft., today announced the successful completion of the sale of a non-core building under construction and a related parcel of land located at its Valleyfield site for total proceeds of
This transaction represents a meaningful milestone in the Company鈥檚 ongoing focus on capital discipline and operational efficiency. As part of Cannara鈥檚 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鈥檚 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 鈥渉eld for sale鈥� as at May 31, 2025, with a carrying value of
As a result of the transaction, the net proceeds of
鈥淭his transaction reflects our disciplined execution of Cannara鈥檚 long-term strategy to unlock value from underutilized assets while preserving financial flexibility,鈥� said Zohar Krivorot, President and Chief Executive Officer of Cannara. 鈥淏y 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.鈥�
鈥淩educing our debt by
The sale represents another step forward in Cannara鈥檚 broader plan to create long-term shareholder value by aligning resources with its core business and growth trajectory.
CONTACT
| Nicholas鈥疭osiak, CPA, CA Chief Financial Officer 苍颈肠办蔼肠补苍苍补谤补.肠补鈥� | 窜辞丑补谤鈥疜谤颈惫辞谤辞迟鈥� President & Chief Executive Officer鈥� 锄辞丑补谤蔼肠补苍苍补谤补.肠补鈥� |
| 听 | 听 |
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ABOUT CANNARA
Cannara Biotech Inc. () () (), 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 Qu茅bec spanning over 1,650,000 sq. ft., providing the Company with 100,000 kg of potential annualized cultivation output. Leveraging Qu茅bec鈥檚 low electricity costs, Cannara鈥檚 facilities produce premium-grade cannabis products at an affordable price. For more information, please visit鈥�.
CAUTIONARY STATEMENT REGARDING 鈥淔ORWARD-LOOKING鈥� INFORMATION
This news release may contain 鈥渇orward-looking information鈥� within the meaning of Canadian securities legislation (鈥�forward-looking statements鈥�). These forward-looking statements are made as of the date of this MD&A and the Company does not intend, and does not assume any obligation, to update these forward-looking statements, except as required under applicable securities legislation. Forward-looking statements relate to future events or future performance and reflect Company management鈥檚 expectations or beliefs regarding future events and include, but are not limited to, statements related to the use of sale proceeds, reduction in debt, and strategic objectives.
In certain cases, forward-looking statements can be identified by the use of words such as 鈥減lans,鈥� 鈥渆xpects鈥� or 鈥渄oes not expect,鈥� 鈥渋s expected,鈥� 鈥渂udget,鈥� 鈥渟cheduled,鈥� 鈥渆stimates,鈥� 鈥渇orecasts,鈥� 鈥渋ntends,鈥� 鈥渁nticipates鈥� or 鈥渄oes not anticipate,鈥� or 鈥渂elieves,鈥� or variations of such words and phrases or statements that certain actions, events or results 鈥渕ay,鈥� 鈥渃ould,鈥� 鈥渨ould,鈥� 鈥渕ight鈥� or 鈥渨ill be taken,鈥� 鈥渙ccur鈥� or 鈥渂e achieved鈥� or the negative of these terms or comparable terminology. In this document, certain forward-looking statements are identified by words including 鈥渕ay,鈥� 鈥渇uture,鈥� 鈥渆xpected,鈥� 鈥渋ntends鈥� and 鈥渆stimates.鈥� By their very nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance, or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements.
Forward-looking information is based upon a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from those that are disclosed in, or implied by, such forward-looking information. These risks and uncertainties include, but are not limited to, the risk factors which are discussed in greater detail under 鈥淩isk Factors鈥� in the Company鈥檚 AIF available on SEDAR+ at and under the 鈥淚nvestor Area鈥� section of our website at .
Other risks not presently known to the Company or that the Company believes are not significant could also cause actual results to differ materially from those expressed in its forward-looking statements. Although the forward-looking information contained herein is based upon what we believe are reasonable assumptions, readers are cautioned against placing undue reliance on this information since actual results may vary from the forward-looking information. Certain assumptions were made in preparing the forward-looking information concerning the availability of capital resources, business performance, market conditions, as well as customer demand. Consequently, all of the forward-looking information contained herein is qualified by the foregoing cautionary statements, and there can be no guarantee that the results or developments that we anticipate will be realized or, even if substantially realized, that they will have the expected consequences or effects on our business, financial condition or results of operation. Unless otherwise noted or the context otherwise indicates, the forward-looking information contained herein is provided as of the date hereof, and we do not undertake to update or amend such forward-looking information whether as a result of new information, future events or otherwise, except as may be required by applicable law.
FAQ
What assets did Cannara Biotech (LOVFF) sell in August 2025?
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