Cannara Biotech Conference Summary Company Overview - **Company Name**: Cannara Biotech Inc. - **Stock Symbol**: LOVE (TSXV) - **Industry**: Canadian Cannabis - **Founded**: 2018 - **Headquarters**: Quebec, Canada - **Facilities**: Operates over 1.6 million square feet across two fully owned facilities in Quebec [2][5] Core Business and Market Position - Cannara Biotech is a vertically integrated cannabis company focused on producing premium-grade cannabis at scale, emphasizing profitability, innovation, and long-term value creation [2][4] - Currently the **seventh largest producer** in Canada by sales and **second largest** in Quebec, with a **12.8% market share** in Quebec, up from 9.7% a year ago [5][17] - Annualized production run rate is approximately **50,000 kilograms** (50 million grams) [5][6] Financial Performance - **Q3 2025**: Best quarterly financial results in the company's history - **Nine months of 2025**: - Net revenue: **$80 million** - Gross profit: **$32.7 million** - Gross margin: **41%**, with steady quarter-over-quarter increases [9][10] - Adjusted EBITDA: **$20.7 million** (26% of revenues) [10] - Net income: **$9.8 million**, a **53% increase** from the previous year [10] - **Cash Flow**: Generated **$17.2 million** in operating cash flow and **$12.3 million** in free cash flow in the first nine months of 2025 [11] Operational Highlights - Achieved a **26% increase** in capacity over the past year without additional capital costs [6][9] - Vertical integration allows full control over the cannabis supply chain, enhancing quality and efficiency [7][24] - Upcoming launch of a new vape category in Quebec, with **20% retail shelf space** already secured [8][17] Competitive Advantages - Strong operational platform with a focus on premium quality, scalable operations, and cost leadership [8][9] - Access to Quebec's low electricity rates of **$0.059 per kilowatt**, significantly lower than other provinces [26] - High barriers to entry in Quebec due to strict regulations on sales and marketing, allowing Cannara to thrive without heavy promotional activities [26][27] Strategic Initiatives - Plans for a **$10 million investment** in a new dedicated processing center to support growth and expand capacity to **100,000 kilograms** annually [16][24] - Focus on internal growth rather than external acquisitions, emphasizing operational discipline and quality [25][27] Market Trends and Outlook - The Canadian cannabis market is experiencing a shift, with a **41% surge** in estimated retail sales year-over-year, positioning Cannara as a leader in growth [16][17] - The company is well-prepared to meet unserved demand and capitalize on upcoming market opportunities, particularly in the vape segment [8][17] Conclusion - Cannara Biotech is positioned as a dominant player in the Canadian cannabis market, with a strong financial performance, operational efficiencies, and a clear growth strategy focused on quality and innovation [2][9][27]