• Delivered strong Q2 financial results: Generated $27.2 million in total net revenues, $11.6 million in gross profit before fair value adjustments or 43% of revenues, $6.0 million in adjusted EBITDA¹, and $2.9 million in operating cash flow.
• Extended retail market share gains nationally: Estimated national retail market share increased to 4.4% in Q2 2026, up from 4.1% in Q1 2026, driven primarily by continued strength in Québec, supported in part by the successful launch of vape products in the province, as well as growth in other key provinces².
• Reached the #1 retail sales market share position in Québec: Cannara captured an estimated 14.3% retail market share in Québec in Q2 2026, ranking as the province’s #1 cannabis company by retail sales market share².
  
  

All financial results are reported in Canadian dollars, unless otherwise stated.

MONTREAL, April 14, 2026 (GLOBE NEWSWIRE) -- Cannara Biotech Inc. (“Cannara”, “the Company”, “us” or “we”) (TSX: LOVE) (OTCQX: LOVFF) (FRA: 8CB0), a vertically integrated producer of premium-grade cannabis products at affordable prices with two mega facilities based in Québec spanning over 1,600,000 sq. ft., today announced its financial and operating results for the fiscal quarter ended February 28, 2026. The condensed interim consolidated financial statements and related notes thereto and the accompanying Management’s Discussion and Analysis can be accessed by visiting the Company’s website at investors.cannara.ca, or by accessing the Company’s SEDAR+ profile at www.sedarplus.ca. The Company’s latest investor presentation is available at www.cannara.ca/investors/investor-deck/.

Management Commentary:

“Our Q2 2026 results reflect continued progress against our growth strategy and a stronger presence across the Canadian cannabis market,” said Zohar Krivorot, Founder and Chief Executive Officer of Cannara. “While the quarter reflected normal post-holiday seasonality in provincial board purchasing patterns and a normalization of vape sales in Québec following the initial launch period, our in-market performance remained strong. We increased retail market share nationally, reached the #1 retail sales market share position in Québec, and continued to advance our portfolio with new genetics and formats that are resonating with consumers. With additional cultivation zones now active and construction progressing at Valleyfield, we are reinforcing the foundation for our next phase of profitable growth.”

“Our Q2 2026 financial results highlight the strength of our operating model and disciplined execution,” commented Nicholas Sosiak, Chief Financial Officer of Cannara. “Quarterly gross cannabis revenues increased 3% year-over-year to $37.8 million, despite softer quarter-over-quarter board load-in patterns following the holiday period, lower wholesale revenues and the normalization of Québec vape sales after launch. Following the expected seasonal slowdown after the holiday period, our brands continued to outperform, driving meaningful retail market share gains in Québec and British Columbia while maintaining stable performance in Ontario. We also generated $2.9 million of operating cash flow in the quarter, a significant improvement from Q2 2025, while continuing to invest in Valleyfield and the capabilities required to support future growth.”

Q2 2026 EARNINGS WEBCAST

Cannara Biotech’s CEO, Zohar Krivorot, and CFO, Nicholas Sosiak, will host an earnings webcast today, Tuesday April 14, 2026, at 10:00 a.m. ET consisting of prepared remarks followed by a question-and-answer session.

Participants may register to attend the earnings webcast through the webcast link or by using the local dial-in registration link below:

Analysts wishing to participate in the Q&A and ask questions may do so by registering through the dial-in link and following the instructions provided. Investors may also be permitted to ask questions live, time permitting, and are encouraged to submit questions in advance to investors@cannara.ca to help ensure they are addressed if time does not allow for all live questions. For those unable to join, the webcast will be archived on the Company’s website.

Q2 2026 FINANCIAL HIGHLIGHTS

Q2 2026 vs Q2 2025 Comparable Period Highlights

• Gross cannabis revenues before excise taxes increased 3% to $37.8 million, driven by a $2.5 million, or 7%, increase in retail revenues, which more than offset a $1.4 million decrease in wholesale revenues. Notably, Cannara achieved this growth despite overall national cannabis retail sales remaining essentially flat year-over-year;
• Total net revenues increased 2% to $27.2 million from $26.6 million;
• Gross profit before fair value adjustments increased 7% to $11.6 million from $10.8 million, while gross margin before fair value adjustments improved to 43% from 41%, driven by increased production capacity and continued cultivation and post-processing optimization;
• Operating income was $3.3 million, compared to $5.9 million in Q2 2025, primarily reflecting planned investments in sales and marketing, R&D, public company initiatives, talent added to support future growth, and a higher non-cash share-based compensation expense as a result of stock options granted in Q4 2025;
• Adjusted EBITDA was $6.0 million, compared to $7.1 million in Q2 2025³;
• Operating cash flow improved to $2.9 million, compared to negative $2.6 million in Q2 2025;
• Free cash flow improved to negative $0.3 million, compared to negative $4.0 million in Q2 2025, driven by stronger operating cash flow generation despite $3.2 million of capital expenditures in Q2 2026 versus $1.5 million in the same period of the prior year, mainly related to the Valleyfield Facility construction project³;
• Net income totaled $1.7 million, or $0.02 per share, compared to $3.3 million, or $0.04 per share, in Q2 2025.
  
  

Q2 2026 vs Q1 2026 Quarter over Quarter (“QoQ”) Highlights

• Gross cannabis revenues before excise taxes decreased 10% to $37.8 million from $41.8 million, primarily due to normal post-holiday seasonality in provincial board purchasing patterns, particularly in Québec, together with a $0.9 million decline in wholesale revenues. This timing-related decrease did not reflect weaker consumer demand, as Cannara increased national retail market share from 4.1% to 4.4% and grew in-market retail sales by 5%, while the overall Canadian cannabis retail market declined by 4%;
• Total net revenues decreased 10% to $27.2 million from $30.1 million, reflecting lower board load-ins following the holiday period, lower wholesale revenues and normalization of vape sales in Québec following the initial launch period;
• Gross profit before fair value adjustments decreased to $11.6 million from $13.5 million, while gross margin before fair value adjustments was 43% compared to 45% in Q1 2026;
• Operating income increased to $3.3 million from $2.7 million, and net income increased to $1.7 million from $1.0 million. In Q1 2026, higher gross profit before fair value adjustments was offset by the impact of fair value adjustments and higher non-cash share-based compensation expense;
• Adjusted EBITDA was $6.0 million, compared to $8.8 million in Q1 2026⁴;
• Operating cash flow was $2.9 million, compared to $8.0 million in Q1 2026, primarily reflecting changes in non-cash working capital items;
• Free cash flow was negative $0.3 million, compared to positive $3.3 million in Q1 2026, primarily reflecting lower operating cash flow and continued capital investment at Valleyfield⁴.
  
  

Q2 2026 vs Q2 2025 Year to Date (“YTD”) Highlights

• Gross cannabis revenues before excise taxes increased 11% to $79.6 million, driven by an $8.3 million, or 12%, increase in retail sales, supported by deeper market penetration in existing provinces, expansion into new markets, and the addition of new genetics and SKUs across the Company’s portfolio. This retail growth was achieved while total national cannabis retail sales increased only 1.2% over the same period. Wholesale revenues declined modestly by $0.4 million year-over-year;
• Total net revenues increased 11% to $57.3 million from $51.7 million;
• Gross profit before fair value adjustments increased 21% to $25.0 million from $20.6 million, while gross margin before fair value adjustments expanded to 44% from 40%, driven by increased production capacity, economies of scale and continued improvements across cultivation and post-processing operations;
• Operating income was $6.0 million, compared to $10.1 million in the prior year period, primarily reflecting the impact of fair value adjustments, increased investment in sales and marketing, research and development, additional G&A, and higher non-cash share-based compensation expense;
• Adjusted EBITDA increased 14% to $14.9 million from $13.1 million⁴;
• Operating cash flow increased to $10.9 million in Q2 2026 YTD from $3.3 million in Q2 2025 YTD;
• Free cash flow increased to $3.1 million from $0.6 million, despite a significant increase in capital expenditures, which rose to $7.9 million from $2.7 million in the prior year period⁴;
• Net income totaled $2.7 million, or $0.03 per share, compared to $5.6 million, or $0.06 per share, in the prior year period.
  
  

Q2 2026 OPERATIONAL HIGHLIGHTS

Cannara achieved an estimated national retail market share of 4.4% in Q2 2026, up from 4.1% in Q1 2026, driven primarily by continued strength in Québec, supported in part by the successful launch of vape products in the province, as well as growth in other key provinces. As of March 2026, Cannara maintained strong momentum with an estimated national retail market share of 4.3%, supported by its continued #1 retail sales market share position in Québec and continued expansion in Ontario, where provincial market share increased from 3.1% to 3.7% in March 2026⁵.

Innovating for Market Leadership

Cannara continues to strengthen its portfolio through disciplined innovation and targeted product development across key categories, supporting ongoing retail market share gains. In Q2 2026, the Company expanded its presence in the infused pre-roll category with the launch of Porto Leche Trifecta infused pre-rolls under Tribal. The Company also introduced Flavour Bomb, a new liquid diamond sub-brand under Nugz, with the launch of the Flavour Bomb Fruit Blast Taster Pack (5 x 0.5g). Since launch, this product has consistently ranked among the top three infused pre-roll products by wholesale sales dollars in Ontario. Cannara expects to expand the Flavour Bomb platform further through the remainder of Fiscal 2026, supporting continued growth in the infused pre-roll category.

Cannara continues to invest in new genetics through its rigorous pheno-hunting program, screening hundreds of phenotypes to identify a select group of cultivars based on brand fit, potency, yield and market appeal. This innovation was reflected in Q2 2026 through the launch of Gran Turismo under Tribal and Florida Oranges under Nugz. The Company’s Fiscal 2026 pheno-hunt remains underway and is expected to support a pipeline of new exotic genetics for Fiscal 2027 launches.

Strengthening Market Share Across Canada

Cannara’s performance in Q2 2026 reflects continued momentum across its national footprint, with market share gains in several key provinces, including Québec, British Columbia, Saskatchewan and Manitoba, while maintaining stable share in Ontario, Nova Scotia and Newfoundland.

Q2 2026 vs Q1 2026 Market Share⁶

The table below presents the Company’s market share for the most recently completed quarter compared to the previous quarter, with QoQ changes expressed in percentage points (“pp”):

Q2 2026 OPERATIONAL HIGHLIGHTS (CONT’D)

Q2 2026 vs Q2 2025 Market Share⁷

The table below presents the Company’s market share for the most recently completed quarter compared to the corresponding quarter in the prior year, with year-over-year (“YoY”) changes expressed in percentage points:

CAPITALTRANSACTIONS

• Common Shares: In Q2 2026, in connection with its non-brokered private placement with Phoenician Capital LLC, the Company issued 3,000,000 common shares at a price of $2.10 per share.
  
• Share options: In Q2 2026, Cannara’s board approved the cancellation and re-issuance of certain previously granted stock options to address an administrative oversight that resulted in the Company temporarily exceeding issuance limits under its Share Option Plan and RSU Plan. A total of 544,600 share options were cancelled and re-issued with substantially identical terms, including exercise prices, vesting schedules, and expiry dates, resulting in no net increase in outstanding options. Subsequent to quarter-end, the Company granted 10,000 stock options at an exercise price of $1.87 to employees, vesting in one year and expiring after seven years.
  
• Restricted share units (“RSU”) and Performance share units (“PSU”): In Q2 2026, the Company issued 90,000 common shares in settlement of vested RSUs. In addition, performance conditions attached to certain restricted share unit awards were satisfied, resulting in vesting above the original target level. As a result, the Company issued 781,250 common shares in settlement of vested PSUs. The Company also approved the acceleration of vesting for 15,000 RSUs for which common shares were issued upon vesting.
  
  

SELECTED FINANCIAL HIGHLIGHTS

NON-GAAP MEASURES AND OTHER FINANCIAL MEASURES

The Company reports its financial results in accordance with International Financial Reporting Standards (“IFRS”). Cannara uses a number of financial measures when assessing its results and measuring overall performance. Some of these financial measures are not calculated in accordance with IFRS. National Instrument 52-112 respecting Non-GAAP and Other Financial Measures Disclosure (“NI 52-112”) prescribes disclosure requirements that apply to the following types of measures used by the Company: (i) non-GAAP financial measures (ii) non-GAAP and other supplementary financial ratios and (iii) total of segments measures. In this news release, the following non-GAAP measures, non-GAAP and other supplementary financial ratios and segment measures are used by the Company are used by the Company: adjusted EBITDA, free cash flow, working capital, segment gross profit before fair value adjustments as a percentage of segment net revenue, segment gross profit as a percentage of segment net revenue, segment operating income as a percentage of segment net revenue, and adjusted EBITDA as a percentage of net revenue. There are no total of segments measures included in this press release. Additional details for these non-GAAP and other financial measures can be found in the section entitled “Non-GAAP and Other Financial Measures” of Cannara’s MD&A for the fiscal quarter ended February 28, 2026, which is posted on Cannara’s website at www.cannara.ca and filed on SEDAR+ at www.sedarplus.ca. Reconciliations of non-GAAP financial measures and non-GAAP ratios to the most directly comparable IFRS measures are provided below. Management believes that these non-GAAP financial measures and non-GAAP ratios provide useful information to investors regarding the Company’s financial condition and results of operations as they provide key metrics of its performance. These measures are not recognized under IFRS, do not have any standardized meanings prescribed under IFRS and may differ from similar computations as reported by other issuers, and accordingly may not be comparable. These measures should not be viewed as a substitute for the related financial information prepared in accordance with IFRS.

Reconciliation of Adjusted EBITDA

Adjusted EBITDA is a non-GAAP Measure and can be reconciled with net income, the most directly comparable IFRS financial measure, as detailed below.

Adjusted EBITDA as a percentage of total revenues is a non-GAAP financial ratio, determined as adjusted EBITDA divided by total revenues.

*Non-GAAP financial measure
**Non-GAAP financial ratio

NON-GAAP MEASURES, NON-GAAP RATIOS AND SEGMENT MEASURES

Reconciliation of free cash flow

Free cash flow is a non-GAAP measure and can be reconciled with Cash from operating activities, the most directly comparable IFRS financial measure, as detailed below.

*Non-GAAP financial measure

Reconciliation of working capital

Working capital is a non-GAAP Measure and can be reconciled with total current assets and total current liabilities, the most directly comparable IFRS financial measure, as detailed below.

*Non-GAAP financial measure

CONTACT

ABOUT CANNARA

Cannara Biotech Inc. (TSX: LOVE) (OTCQX: LOVFF) (FRA: 8CB0), is a vertically integrated producer of affordable premium-grade cannabis and cannabis-derivative products for the Canadian markets. Cannara owns two mega facilities based in Québec spanning over 1,600,000 sq. ft., providing the Company with 100,000 kg of potential annualized cultivation output. Leveraging Québec’s low electricity costs, Cannara’s facilities produce premium-grade cannabis products at an affordable price. For more information, please visit cannara.ca.

CAUTIONARY STATEMENT REGARDING “FORWARD-LOOKING” INFORMATION

This news release may contain “forward-looking information” within the meaning of Canadian securities legislation (“forward-looking statements”). These forward-looking statements are made as of the date of this press release and the Company does not intend, and does not assume any obligation, to update these forward-looking statements, except as required under applicable securities legislation. Forward-looking statements relate to future events or future performance and reflect Company management’s expectations or beliefs regarding future events and include, but are not limited to, the Company and its operations, its projections or estimates about its future business operations, its planned expansion activities, anticipated product offerings, the adequacy of its financial resources, the ability to adhere to financial and other covenants under lending agreements, future economic performance, and the Company’s ability to become a leader in the field of cannabis cultivation, production, and sales.

In certain cases, forward-looking statements can be identified by the use of words such as “plans,” “expects” or “does not expect,” “is expected,” “budget,” “scheduled,” “estimates,” “forecasts,” “intends,” “anticipates” or “does not anticipate,” or “believes,” or variations of such words and phrases or statements that certain actions, events or results “may,” “could,” “would,” “might” or “will be taken,” “occur” or “be achieved” or the negative of these terms or comparable terminology. In this document, certain forward-looking statements are identified by words including “may,” “future,” “expected,” “intends” and “estimates.” By their very nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance, or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements.

Forward-looking information is based upon a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from those that are disclosed in, or implied by, such forward-looking information. These risks and uncertainties include, but are not limited to, the risk factors which are discussed in greater detail under “Risk Factors” in the Company’s AIF available on SEDAR+ at www.sedarplus.ca and under the “Investor Area” section of our website at https://www.cannara.ca/en/investor-area.

Other risks not presently known to the Company or that the Company believes are not significant could also cause actual results to differ materially from those expressed in its forward-looking statements. Although the forward-looking information contained herein is based upon what we believe are reasonable assumptions, readers are cautioned against placing undue reliance on this information since actual results may vary from the forward-looking information. Certain assumptions were made in preparing the forward-looking information concerning the availability of capital resources, business performance, market conditions, as well as customer demand. Consequently, all of the forward-looking information contained herein is qualified by the foregoing cautionary statements, and there can be no guarantee that the results or developments that we anticipate will be realized or, even if substantially realized, that they will have the expected consequences or effects on our business, financial condition or results of operation. Unless otherwise noted or the context otherwise indicates, the forward-looking information contained herein is provided as of the date hereof, and we do not undertake to update or amend such forward-looking information whether as a result of new information, future events or otherwise, except as may be required by applicable law.

¹ Please refer to the Non-GAAP and Other Financial Measures section of this news release for corresponding definitions.
² Based on retail market sales dollar estimates for the periods of September to November 2025 and December 2025 to February 2026, calculated using dataset from Weedcrawler for Quebec retail sales contributions, NSLC for Nova Scotia retail sales, and Hifyre dataset for the rest of Canada.
³ Please refer to the Non-GAAP and Other Financial Measures section of this news release for corresponding definitions.
⁴ Please refer to the Non-GAAP and Other Financial Measures section of this news release for corresponding definitions.
⁵ As reported by Hifyre data for the periods of September to November 2025, December 2025 to February 2026 and March 2026 in all listed provinces excluding Quebec where Weed Crawler was deemed more accurate, and Nova Scotia where NSLC wholesale data was deemed to be more accurate.
⁶ As reported by Hifyre data for the periods of September to November 2025 and December 2025 to February 2026 in all listed provinces excluding Quebec where Weed Crawler was deemed more accurate, and Nova Scotia where NSLC wholesale data was deemed to be more accurate.
⁷ As reported by Hifyre data for the periods of December 2024 to February 2025 and December 2025 to February 2026 in all listed provinces excluding Quebec where Weed Crawler was deemed to be more accurate, and Nova Scotia where NSLC wholesale data was deemed to be more accurate.