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Cannara Biotech Enhances Financial Flexibility Through Strategic Asset Sale

Core Viewpoint - Cannara Biotech Inc. successfully completed the sale of a non-core building and land for $5.5 million, aligning with its asset optimization strategy and enhancing its financial position [1][2][4]. Group 1: Transaction Details - The sale involved a building under construction and a related parcel of land at the Valleyfield site, which had a carrying value of approximately $4.95 million as of May 31, 2025 [2]. - The net proceeds from the sale amount to $5.45 million, which will be used to reduce the principal balance of Cannara's existing term loan, thereby decreasing long-term debt [3]. Group 2: Strategic Implications - This transaction is part of Cannara's broader strategy to unlock value from underutilized assets while maintaining financial flexibility [4]. - The reduction of debt by $5.45 million is expected to enhance Cannara's capital structure and support future margin expansion [4]. - The company aims to create long-term shareholder value by aligning resources with its core business and growth trajectory [4].