Cannara and Curaleaf Strengthen Ties Across Global Cannabis Supply Chain

MONTREAL – Cannara Biotech Inc. has broadened its long-term supply agreement with Curaleaf International Limited, raising the contract’s potential aggregate value to roughly CA$34 million across its two-year term. The original deal, first disclosed in July, was valued at up to CA$21 million – a figure the revised terms now exceed by approximately 60%, provided the contract is fully realized.

The expanded relationship builds on Cannara’s first long-term international supply commitment and provides an opportunity to grow international sales through Curaleaf’s established distribution network, while continuing to support the company’s Canadian growth strategy.

The amendment expands committed supply volumes out of Cannara’s Valleyfield facility in Québec, where 15 of 24 grow rooms are currently active. The company holds more than 1.6 million sq. feet of combined production space across its two Québec sites, and management has consistently positioned that surplus capacity as a built-in runway for this kind of demand-driven scale-up.

Cannara CEO Zohar Krivorot attributed the agreement’s growth to product quality and the depth of the commercial relationship rather than to opportunism. COO Niko Sosiak pointed to the company’s fully funded build-out plan as giving Valleyfield the operational flexibility to absorb expanding international commitments without crowding out Canadian sales targets.

Cannabis supplied under the deal is earmarked for international medical markets. Pending EU-GMP certification of Cannara’s Valleyfield processing center [a process Curaleaf is actively supporting] all flower will be dried and processed under EU-GMP conditions at Curaleaf’s own certified Canadian facility before release into international markets. Curaleaf’s distribution network spans Europe, the United Kingdom, Australia, and New Zealand.

That certification path carries real commercial weight. Once Valleyfield clears the EU-GMP standard, Cannara gains operational independence from a third-party processing arrangement, reducing friction and sharpening the unit economics of every kilogram shipped internationally.

The agreement also arrives shortly after Cannara’s broader financial positioning. In September, the company secured an $80 million syndicated credit facility with BMO and TD Bank, extending its liquidity runway through December 2029. That kind of institutional backing matters when a company is simultaneously growing its domestic market share and building an international supply operation from the ground up.

For Curaleaf, the deal reinforces a sourcing strategy built on reliable cultivation partners rather than solely on owned production. With a “proposed integration” with Aurora Cannabis set to add more than 50 tons of annual EU-GMP cultivation capacity to its global footprint, Curaleaf is assembling a layered, multi-supplier international supply chain that this Cannara arrangement reinforces from the Canadian side.

This agreement reads as a structural commitment. When a company upgrades a supply contract barely three months after the original signing, it generally means field performance was solid, and demand outpaced the initial supply model. In Cannara’s case, both appear true. The more telling detail for investors is the EU-GMP certification push at Valleyfield. Once that approval lands, Cannara steps out of the processing arrangement it currently shares with Curaleaf, and the commercial terms of this partnership shift considerably in its favor.