Cannara Announces Strategic C$6.3 Million Non-Brokered Private Placement Priced at C$2.10 per Common Share

Core Viewpoint - Cannara Biotech Inc. has completed a strategic non-brokered private placement with Phoenician Capital LLC, raising C$6,300,000 through the issuance of 3,000,000 common shares at a price of C$2.10 per share, which is a 16% premium over the closing price prior to the announcement [1][2]. Group 1: Private Placement Details - The proceeds from the private placement will be utilized for working capital and strategic investments, including capital investments in the Valleyfield Facility and operational expansion [2]. - The common shares issued are subject to a statutory hold period of four months and one day, in accordance with Canadian securities laws [3]. Group 2: Management Commentary - The CEO of Cannara, Zohar Krivorot, stated that the investment aligns with the company's expansion strategy and reflects confidence in its operational model [3]. - John Khabbaz, from Phoenician, expressed support for Cannara's focus on operational discipline and long-term value creation [3]. Group 3: Secondary Share Sale - Zohar Krivorot has agreed to sell 333,333 common shares to Phoenician at the same price of C$2.10 per share, which is intended to offset personal tax losses [5]. - Following the secondary share sale, Krivorot's ownership will decrease from approximately 26.99% to 25.83% of the issued and outstanding common shares [6]. Group 4: Company Overview - Cannara Biotech Inc. is a vertically integrated producer of premium-grade cannabis products, operating two facilities in Québec with a total area of over 1,600,000 sq. ft. and a potential annual cultivation output of 100,000 kg [16].