Cannara Biotech announced that its Bank of Montreal credit facility was extended until December 2027. The company also restructured one of its key loans, providing a longer-term loan for their Quebec operations.
Montreal-based Company said amended credit agreement provided a C$34.8 Million term loan and C$10 Million revolving Credit Line, as well as a C$5.6M letter of credits for electricity supply.
Cannara’s chief financial officers, Nicholas Sosiak and Olymbec said that the credit extension with BMO and Olymbec, two of Cannara’s biggest shareholders, shows their trust in Cannara’s growth strategy over time and its operational excellence.
Also, the company extended repayment terms for its convertible debt with Olymbec Investments. The maturity date of the facility is now March 2028. It includes partial repayment provisions.
Cannara plans to issue new convertible debentures in September of 2025. These will be issued to Javaa Private Equity which is owned Zohar Krisvorot. The transaction is expected to help meet Olymbec’s repayment requirements.
Integral Wealth Securities, which provides market-making and investor relations services, as well as Impaq Capital are also new partners.
Cannara is a large company with two facilities covering more than 1.6 million square feet in Quebec. The company reported in January a 29% increase to C$25,1 million for its quarter-end revenue.
In Quebec it has reached 4,1% of the Canadian Cannabis market. The company’s annual revenue increased by 43% in fiscal 2024 to C$82.2 millions.