Cannara Locks In $80 Million Credit Package Led by BMO and TD

Cannara Biotech Inc. (LOVE.TO ) announced on September 10, 2026, that its operating subsidiary, Cannara Biotech (OPS) Inc., has entered into an amended and restated syndicated credit agreement with Bank of Montreal and The Toronto-Dominion Bank, providing the Montreal-based cannabis producer with $80 million of total committed borrowing capacity.

The agreement, which the company calls the Restated Credit Facility, represents a $30 million increase from the approximately $50 million accessible immediately prior to refinancing. The company said the new structure primarily refinances existing borrowings while providing additional liquidity for working capital and strategic capital investments.

Cannara describes itself as a vertically integrated producer of premium-grade cannabis products at affordable prices, with two mega facilities in Québec spanning over 1,600,000 square feet.

Bank of Montreal will continue to serve as administrative agent, syndication agent and sole bookrunner and, together with TD, will act as co-lead arranger. TD joins the lending syndicate as part of the expanded financing, a shift the company characterized as broadening its banking relationships and institutional lending support.

“The establishment of an $80 million syndicated credit facility with two leading Canadian banks is a strong endorsement of the business we have built and the disciplined, profitable growth we continue to deliver,” said Zohar Krivorot, founder and chief executive officer of Cannara. “Adding TD alongside our longstanding relationship with BMO expands our banking platform and provides Cannara with the financial capacity to execute on our next phase of growth in Canada and internationally.”

Niko Sosiak, Cannara’s chief operating officer, said the refinancing “meaningfully strengthens our capital structure by increasing our revolving capacity to $40 million, extending our maturity to December 2029 and consolidating our existing facilities into a more flexible financing package.” Nicholas Fozard, identified in the announcement as the company’s recently appointed acting chief financial officer, said he is pleased to be joining Cannara at this stage of its growth and looks forward to working alongside the leadership team as it invests with discipline in the company’s growth priorities.

Terms of the Restated Credit Facility

The facility comprises a $40 million term loan and a $40 million committed revolving credit facility. The term loan will refinance amounts outstanding under Cannara’s existing term loan, capital expenditures facility and revolving credit facilities, with the remaining proceeds available to fund capital expenditures at the company’s Valleyfield facility. The committed revolver, increased from $10 million, is available through multiple draws for ordinary working capital and general corporate requirements.

Both facilities mature on December 31, 2029, extending the previous maturity date of December 31, 2027, by two years. The agreement also reflects revised financial covenants that, according to the company, provide flexibility and liquidity to advance its previously announced expansion program at Valleyfield. That program includes the development of a new post-processing centre, which is being designed to support EU-GMP certification, and the activation of additional cultivation zones the company said are required to meet growing demand.

The restated agreement amends and restates Cannara’s original credit agreement in a single, consolidated document, and the company’s obligations under the original agreement continue uninterrupted under the new terms. A redacted copy of the Restated Credit Facility will be filed under the company’s profile on SEDAR+, and a full description of the original credit agreement is available in the company’s Annual Information Form for the fiscal year ended August 31, 2025.

Credit Facility History

In fiscal third-quarter 2022 results released July 27, 2022, Cannara disclosed that it had closed a non-dilutive $50 million credit facility led by BMO Commercial Banking. That facility included a three-year term loan for $39.3 million with an accordion for up to an additional $10 million, a $5 million line of credit and $5.7 million for the issuance of a letter of credit, with funding received subsequent to quarter-end.

The company reported in the same release that it received $39.3 million from the term loan in June 2022, used in part to repay an existing $21.8 million loan with CIBC and $5.7 million for the issuance of a letter of credit to cover certain deposit requirements.

In a June 18, 2025, announcement, Cannara said it had reduced the interest rate spread on its BMO credit facility by a total of 50 basis points in two stages: an initial 25 basis point decrease secured through an amendment to the credit agreement, followed by an additional 25 basis point reduction triggered by the company’s achievement of certain covenant thresholds as of the second quarter of fiscal 2025, which ended February 28, 2025. The company said its overall cost of debt fell below 6% as a result.

The same release disclosed a $1 million repayment against the outstanding convertible debenture originally issued to Olymbec on June 21, 2021, as amended on August 31, 2023, January 30, 2024, and February 21, 2025.