Cannara Biotech, a vertically integrated producer of premium-grade cannabis products, entered into an amended and restated syndicated credit agreement with Bank of Montreal (BMO) and The Toronto-Dominion Bank (TD). The restated credit facility provides Cannara with $80 million of total committed borrowing capacity, representing a $30 million increase from the approximately $50 million accessible immediately prior to refinancing. The new structure primarily refinances existing borrowings while providing additional liquidity for working capital and strategic capital investments.
BMO will continue to serve as administrative agent, syndication agent and sole bookrunner and, together with TD, will act as co-lead arranger. TD joins the lending syndicate as part of the expanded financing.
The restated credit facility refinances Cannara’s existing secured credit facilities, increases the company’s committed revolving capacity from $10 million to $40 million and extends the maturity date from Dec. 31, 2027, to Dec. 31, 2029. The expanded financing is intended to provide additional liquidity for working capital and general corporate requirements while supporting continued capital investment at Cannara’s Valleyfield facility.
“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,” Zohar Krivorot, founder and CEO of Cannara, said. “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.”
Niko Sosiak, chief operating officer of Cannara, added, “This refinancing meaningfully strengthens our capital structure by increasing our revolving capacity to $40 million, extending our maturity to December 2029 and consolidating our existing facilities into a more flexible financing package.”
Nicholas Fozard, who was recently appointed acting chief financial officer for Cannara, said, “I am pleased to be joining Cannara at this important stage in its growth. 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 and build upon Cannara’s strong financial foundation.”
The key changes represented by the Restated Credit Facility are described below.
- $40 million term loan: The term loan will refinance amounts outstanding under Cannara’s existing term loan, capital expenditures facility and revolving credit facilities, with the remaining proceeds available to fund capital expenditures at the Valleyfield facility.
- $40 million revolving credit facility: The committed revolver, increased from $10 million, is available through multiple draws for ordinary working capital and general corporate requirements.
- Extended maturity: Both facilities mature on Dec. 31, 2029, extending the company’s debt maturity by two years.
