Expanded credit facility to fund initial post-harvest buildout at Valleyfield, supporting the Company's long-term goal of reaching 100,000 kg annual capacity MONTREAL, Aug. 21, 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 pleased to announce amendments to its ex ...

Core Viewpoint - Auxly Cannabis Group Inc. has entered into two significant agreements aimed at strengthening its balance sheet, reducing debt, and supporting long-term growth [1][2] Group 1: Financial Transactions - The company has amended its credit facility, which will enhance liquidity and provide flexibility for capital allocation towards strategic growth initiatives [1][3] - The settlement of the Imperial Brands convertible debenture through equity issuance will eliminate over $21 million of debt from the balance sheet, improving capital structure and reducing interest obligations [1][2][5] Group 2: Credit Facility Details - The amended credit facility will consist of a total of $50.7 million, including a term loan of $36.2 million and a revolving facility of $10 million for working capital [6] - The term of the facility is two years with an option to extend for an additional year, and it will be secured by substantially all assets of the company and its subsidiaries [6] Group 3: Imperial Brands Settlement - The exchange agreement with Imperial Brands will convert approximately $1 million principal and $1.39 million of accrued interest into shares, resulting in Imperial owning approximately 19.9% of the company post-settlement [8][15] - The total consideration for the shares and warrants issued to Imperial Brands is approximately $9.8 million, reflecting the settlement of the indebtedness owed under the debenture [15]