Cannara Wins 2025 Grow Up Brand of the Year, Accessory of the Year

*MONTREAL —* Cannara Biotech Inc., a vertically integrated producer of
cannabis products, was honored with two awards at the 6th Annual Grow Up
Awards Gala held in Toronto May 28. The Company’s Tribal brand was named
Brand of the Year, and its Nugz Happle product was awarded the Accessory of
the Year prize. The Grow Up Awards Gala is a nationally recognized event
celebrating outstanding achievement in the Canadian cannabis industry.

“We are tremendously honored to announce our recognition of Brand of the
Year and Accessory of the Year at the 2025 Grow Up Awards. These awards
highlight our strong and growing brand presence, our leading genetic
strategy, and our focus on delivering premium-quality consumer experiences
across our product portfolio,” said Zohar Krivorot, President and CEO of
Cannara Biotech. “We’re proud to represent Quebec’s cannabis industry with
Tribal, Canada’s leading mass market premium 3.5g cannabis brand.”

“Being awarded Brand of the Year reflects our commitment to delivering
premium cannabis at disruptive pricing while building a leading national
brand. This recognition comes as we continue to strengthen our financial
position through the partial repayment of our Olymbec convertible debenture
and a reduced interest rate on our credit facility—demonstrating
disciplined execution across both operations and capital management,” said
Nicholas Sosiak, CFO of Cannara Biotech.
Olymbec Convertible Debenture Repayment

The Company made a $1 million repayment against the outstanding convertible
debenture originally issued on June 21, 2021, as amended on August 31,
2023, January 30, 2024, and February 21, 2025, to Olymbec. This repayment
aligns with Cannara’s disciplined approach to capital management and
reflects its commitment to reducing leverage while maintaining financial
flexibility.
Reduced Interest Rate on Credit Facility

The Company realized a total reduction of 50 basis points in the interest
rate spread on its BMO Credit Facility. This reduction was achieved in two
stages: an initial 25 basis point decrease secured through an amendment to
the credit agreement, followed by an additional 25 basis point reduction
triggered by the Company’s achievement of certain covenant thresholds as of
Q2 2025 (ended February 28, 2025). As a result, Cannara’s overall cost of
debt is now below 6%.

All other original terms and conditions of the BMO credit facility remain
in full force and effect.
ABOUT CANNARA

Cannara Biotech Inc. (TSXV: LOVE) (OTCQB: LOVFF) (FRA: 8CB0), is a
vertically integrated producer of cannabis and cannabis-derivative products
for the Canadian markets. Cannara owns two mega facilities based in Québec
spanning over 1,650,000 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.