MONTREAL, July 24, 2025 (GLOBE NEWSWIRE) -- Cannara Biotech Inc. ("Cannara", "the Company", "us" or "we") (TSXV: LOVE) (OTCQB: LOVFF) (FRA: 8CB0), a vertically integrated producer of premium- grade cannabis products at disruptive prices with two mega facilities based in Québec spanning over 1,650,000 sq. ft., is proud to announce the preliminary acceptance by the Société Québécoise du Cannabis ("SQDC") of five vape cartridge products to be distributed across all Québec retail stores in November 2025 (Q1 FY2 ...

Group 1 - The article discusses the potential catalysts that could disrupt the recent market rally as it begins the second half of 2025 [1] - It highlights the importance of rotating investments in response to market conditions [1] - The author, Gary Alexander, has extensive experience in technology companies and has been a contributor to Seeking Alpha since 2017 [1] Group 2 - Gary Alexander has served as an adviser to several seed-round startups, indicating his deep involvement in the technology sector [1] - His insights are shared widely, as his articles are syndicated to popular trading apps like Robinhood [1]

Core Points - Cannara Biotech Inc. is hosting a webcast investor presentation on June 25, 2025, at 2:00 PM ET, led by CFO Nicholas Sosiak [1] - The presentation will cover key areas of Cannara's business, followed by an interactive Q&A session for investors [1] - An archived version of the webcast will be available on the company's website [1] Company Overview - Cannara Biotech Inc. is a vertically integrated producer of affordable premium-grade cannabis and cannabis-derivative products for the Canadian markets [2] - The company operates two mega facilities in Québec, covering over 1,650,000 sq. ft., with a potential annualized cultivation output of 100,000 kg [2] - Cannara leverages Québec's low electricity costs to produce premium-grade cannabis products at competitive prices [2]

Core Insights - Cannara Biotech Inc. has been recognized with two awards at the 2025 Grow Up Awards Gala, including Brand of the Year for its Tribal brand and Accessory of the Year for its Nugz Happle product, highlighting its commitment to product excellence and innovation in the Canadian cannabis industry [1][2][3] Financial Management - The company has made a $1 million repayment against its Olymbec convertible debenture, which was originally issued on June 21, 2021, reflecting a disciplined approach to capital management and a commitment to reducing leverage while maintaining financial flexibility [4] - Cannara has achieved a total reduction of 50 basis points in the interest rate spread on its BMO Credit Facility, resulting in an overall cost of debt now below 6%, underscoring its strong financial performance and disciplined capital structure management [6] Industry Recognition - The Grow Up Conference and Expo is recognized as one of Canada's leading industry events, with the Grow Up Awards being one of the industry's highest honors, selected through open voting by industry participants and the public [3]

Group 1 - The article introduces Turtle Bay Research as a new contributing analyst on Seeking Alpha, inviting others to share investment ideas [1] - The analyst emphasizes a long-term, fundamentals-focused investment approach, prioritizing businesses with competitive differentiation and long-term earnings potential [2] - The analyst's experience includes analyzing public equities across the global consumer landscape, covering sectors such as consumer products, retail, food & beverage, leisure, media, and industrials [2] Group 2 - The analyst holds beneficial long positions in specific companies, indicating a personal investment interest in LOVE, ARHS, and HVT [3] - Seeking Alpha clarifies that past performance does not guarantee future results and that the views expressed may not reflect the platform's overall stance [4]

Core Insights - The Lovesac Company celebrates the one-year anniversary of its PillowSac Chair by introducing two new wood frame finishes: Brown and Black, enhancing customization options for consumers [1][2] - The PillowSac Chair is designed to be adaptable, reflecting the diverse lifestyles of customers, and now offers three frame options along with over 150 machine-washable PillowSac Covers [2] - The new frame finishes are priced starting at $675, while the complete PillowSac Chair starts at $1,350, available online and in Lovesac showrooms [3] Company Overview - The Lovesac Company, based in Stamford, Connecticut, is a technology-driven furniture brand known for its innovative and sustainable designs, including modular couches, premium foam beanbag chairs, and the PillowSac Chair [4] - The company emphasizes responsible production and innovation, having received multiple awards for sustainability and product design [4] - Products are marketed primarily online, supported by a network of physical showrooms and retail partnerships [4]

Core Viewpoint - The Lovesac Company has reached a settlement in a shareholder derivative action related to breaches of fiduciary duty and financial statement restatements, which is subject to court approval [2][3]. Group 1: Settlement Details - The settlement agreement includes corporate governance reforms that Lovesac will implement and maintain for at least four years [4]. - Lovesac will pay a total of $335,000 in attorneys' fees and expenses to the plaintiffs' co-lead counsel, pending court approval [5]. - Each plaintiff will receive a Service Award of $2,500 from the attorneys' fees and expenses award, also subject to court approval [5]. Group 2: Legal Context - The derivative action asserts claims against the defendants for breaches of fiduciary duty and other legal violations, distinct from a separate securities class action [2]. - Defendants deny all claims and wrongdoing but have opted to settle the action to avoid further litigation [3]. Group 3: Court Proceedings - A fairness hearing is scheduled for October 1, 2025, to determine the approval of the proposed settlement and the attorneys' fees [6]. - Securities holders are not entitled to individual compensation from the settlement, except for the Service Award to plaintiffs [7].

Core Viewpoint - Lovesac is emerging from legal issues and is positioned for a potential rebound in share price driven by growth, operational quality, and a shift towards sustainable profitability, despite existing risks [1][2]. Financial Performance - Lovesac reported Q1 net revenue of $138.4 million, reflecting a growth rate of 4.4%, outperforming competitors like Ethan Allen and La-Z-Boy, which are growing at slower rates or experiencing declines [4]. - The company has increased its store count by 21 compared to the previous year, with sales in that channel up by 18%. However, digital and other categories saw declines of 9% and 40.5%, respectively [5]. - Operational quality improvements led to a contraction in gross margin by 60 basis points and a reduction in SG&A expenses by 310 basis points, resulting in a significant contraction of GAAP losses by over 1,600 basis points [5][6]. Guidance and Analyst Outlook - Management has increased guidance for the year, expecting revenue around $725 million and EPS of approximately $1.05, both exceeding consensus forecasts [6]. - Analysts maintain a bullish outlook on Lovesac, with a consistent "Buy" rating and a price target of $31.67, indicating a potential upside of 88.27% from the current price of $16.82 [7][9]. Share Buyback and Risks - Lovesac initiated a share buyback program, significantly reducing share count, but faces risks of ceasing or reversing this program due to decreased cash position and assets [8][9]. - The expected average share count is projected to increase by 11.6% between Q2 and the full year, which may offset the impact of buybacks [10]. - Short interest remains elevated at over 20%, posing a risk of further stock price decline if shorts re-enter the market [11].

Core Insights - Investors in the Retail - Home Furnishings sector may consider Lovesac (LOVE) and Somnigroup International (SGI) as potential undervalued stocks [1] Group 1: Zacks Rank and Earnings Outlook - Lovesac currently holds a Zacks Rank of 1 (Strong Buy), indicating a positive earnings outlook, while Somnigroup International has a Zacks Rank of 4 (Sell) [3] - The Zacks Rank system favors stocks with positive revisions to earnings estimates, suggesting that LOVE has an improving earnings outlook [3] Group 2: Valuation Metrics - Lovesac has a forward P/E ratio of 24.26, compared to Somnigroup International's forward P/E of 26.18 [5] - Lovesac's PEG ratio is 0.69, indicating better value relative to its expected earnings growth, while SGI has a PEG ratio of 1.70 [5] - Lovesac's P/B ratio is 1.46, significantly lower than SGI's P/B of 4.95, suggesting that LOVE is undervalued compared to its book value [6] Group 3: Value Grades - Lovesac has received a Value grade of A, while Somnigroup International has a Value grade of D, indicating that LOVE is viewed more favorably by value investors [6] - The combination of Zacks Rank and Style Scores suggests that value investors may prefer Lovesac over Somnigroup International at this time [6]

Core Viewpoint - The article emphasizes the importance of value investing and highlights Lovesac (LOVE) as a strong value stock based on its financial metrics and Zacks Rank [1][2][7] Company Analysis - Lovesac (LOVE) currently has a Zacks Rank of 1 (Strong Buy) and a Value grade of A, indicating strong potential for value investors [4] - The stock has a P/E ratio of 19.93, which is lower than the industry average of 20.83, suggesting it may be undervalued [4] - LOVE's Forward P/E has fluctuated between 62.22 and 11.65 over the past year, with a median of 18.76, indicating volatility but also potential for value [4] - The P/S ratio for LOVE is 0.45, significantly lower than the industry average of 1.24, reinforcing the notion of undervaluation [5] - LOVE's P/CF ratio stands at 13.14, which is attractive compared to the industry's average of 13.82, further supporting its undervalued status [6] - Over the past 52 weeks, LOVE's P/CF has ranged from 27.69 to 7.84, with a median of 15.10, indicating variability in cash flow performance [6] - Overall, the financial metrics suggest that Lovesac is likely undervalued, making it an appealing option for value investors [7]