Cannara secures $80M syndicated credit facility with BMO and TD Bank

Cannara Biotech Inc. (TSX: LOVE, OTCQX: LOVFF, FRA: 8CB0) has entered into an amended and restated syndicated credit agreement with Bank of Montreal and The Toronto-Dominion Bank, expanding its total committed borrowing capacity to $80 million, up from approximately $50 million previously accessible.

The restated facility, entered into by Cannara's operating subsidiary Cannara Biotech (OPS) Inc., consists of a $40 million term loan and a $40 million revolving credit facility. The revolving capacity was increased from $10 million. Both facilities mature on December 31, 2029, extending the debt maturity by two years from the prior date of December 31, 2027.

Bank of Montreal will continue as administrative agent, syndication agent, and sole bookrunner. TD Bank joins the syndicate as co-lead arranger alongside BMO as part of the expanded financing.

The term loan will refinance amounts outstanding under Cannara's existing term loan, capital expenditures facility, and revolving credit facilities. Remaining proceeds are intended to fund capital expenditures at the company's Valleyfield facility, including development of a post-processing centre designed to support EU-GMP certification and activation of additional cultivation zones.

"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.

Nicholas Fozard, Cannara's recently appointed Acting Chief Financial Officer, also commented on the facility: "With the Restated Credit Facility now in place, I look forward to working alongside the leadership team as we continue to invest with discipline in the Company's growth priorities."

Cannara operates two cannabis production facilities in Québec totaling over 1,600,000 square feet. The information above is based on a company press release.

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