Cannara Announces Extension of BMO Credit Facility and Convertible Debenture to Enhance Financial Flexibility and Support Execution of its Long-Term Strategy

Core Viewpoint - Cannara Biotech Inc. has announced the extension and amendments to its credit agreement with the Bank of Montreal and the Olymbec Convertible Debenture, aimed at optimizing its financial position and supporting long-term strategic goals [1][2]. Credit Facility Amendments - The maturity date of the Restated Credit Facility has been extended to December 31, 2027 [6]. - The Restated Credit Facility consolidates the Company's borrowing facilities, including a term loan facility of $34.8 million, a $10 million revolving credit facility, and a $5.6 million letter of credit [6]. - Updated financial covenants in the Restated Credit Facility provide the Company with enhanced flexibility and liquidity [6]. Convertible Debenture Amendments - The maturity date of the Olymbec Convertible Debenture has been extended to March 31, 2028 [7]. - Olymbec has the right to demand partial repayments of up to $1 million, subject to BMO's approval, with a second partial repayment due on September 30, 2025 [7]. - A new Javaa Convertible Debenture is anticipated to be issued to satisfy Olymbec's demand for the second partial repayment [8]. Interest Rates and Payment Terms - The Olymbec Convertible Debenture bears an interest rate of 10.75% per annum, compounded semi-annually effective January 31, 2025 [8]. - Interest incurred prior to September 30, 2025, can be paid in cash or common shares at a conversion price of $1.80 per share [8]. Market Maker and Investor Relations Engagement - Cannara has retained Integral Wealth Securities to provide market-making services to enhance liquidity and contribute to an active market for its shares [11][12]. - The Company has entered into a consulting agreement with Impaq Capital Inc. for investor relations services, with a monthly fee of $7,500 [15][16]. Shareholder Meeting Outcomes - The number of directors was set at five, with all nominees elected by a majority of shareholders [18][19]. - MNP LLP was appointed as auditors for Fiscal 2025, receiving 99.95% approval from shareholders [20]. - Shareholders approved the Company's rolling stock option plan and RSU plan, both required annually by TSXV policies [21][23].