Cannara Secures Upgraded $80M Credit Line

MONTREAL – Cannara Biotech Inc. announced that its operating subsidiary has entered into an amended and restated syndicated credit agreement with Bank of Montreal (BMO) and The Toronto-Dominion Bank (TD), establishing $80 million in committed borrowing capacity, a $30 million increase from the approximately $50 million accessible before refinancing.

The new structure splits the facility equally: a $40 million term loan and a $40 million revolving credit line – the latter a fourfold increase from the previous $10 million cap. The maturity date has been extended from December 31, 2027, to December 31, 2029, and borrowing costs were also reduced under the restated terms.

BMO retains its role as administrative agent, syndication agent, and sole bookrunner. TD enters the lending syndicate for the first time as co-lead arranger, broadening Cannara’s institutional base beyond a single-lender structure.

The refinancing consolidates existing secured borrowings while providing additional liquidity for working capital and capital investment at the Valleyfield facility. That site anchors Cannara’s near-term expansion, including a new post-processing center engineered to support EU-GMP certification [a standard required to serve European medical Cannabis markets] and the activation of additional cultivation zones to meet rising domestic demand.

“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,” said Zohar Krivorot, Founder and CEO, in the company’s press release.

The credit expansion arrives on the heels of Cannara’s strongest financial run to date. The company posted record fiscal 2025 net revenues of C$107.3 million, adjusted EBITDA of C$28.1 million, and net income of C$13.1 million – its first year closing with positive retained earnings. National retail market share reached 3.81% in fiscal 2025, up 32% year-over-year, and climbed further to 4.1% in October 2025. By Q1 fiscal 2026, Cannara ranked first in Québec, driven in part by a successful vape category launch. In Q3 fiscal 2026, the company reported adjusted EBITDA of C$8.5 million at a 27% margin and net income of C$4.8 million, extending its streak to 21 consecutive quarters of positive adjusted EBITDA.

For a sector where access to traditional bank credit has long separated viable operators from struggling ones, Cannara’s ability to attract a second chartered bank to its lending syndicate represents something the Canadian Cannabis industry has rarely seen before: a producer that has earned its banking relationships rather than simply needed them. With EU-GMP certification in its sights and a structured expansion underway at Valleyfield, the company enters the back half of fiscal 2026 carrying more balance-sheet firepower than at any prior point in its history

The runway is clear.
Execution is what’s left.