Cannara Announces Proposed Settlement of Convertible Debenture via Share Issuance

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[{"type":"text","content":"Cannara Announces Proposed Settlement of Convertible Debenture via Share Issuance\n\n\n\n MONTREAL, Oct. 02, 2025 (GLOBE NEWSWIRE) --\n \n Cannara Biotech Inc.\n \n (“\n \n Cannara\n \n ”, “the\n \n Company\n \n ”, “\n \n us\n \n ” or “\n \n we\n \n ”) (\n \n TSXV: LOVE\n \n ) (\n \n OTCQB: LOVFF\n \n ) (\n \n FRA: 8CB0\n \n ), a vertically integrated producer of premium-grade cannabis products at disruptive prices with two mega facilities based in Québec spanning over 1,650,000 sq. ft., today announced its intention to settle an aggregate of approximately $6.2 million of indebtedness, consisting of $4.7 million in principal and approximately $1.5 million in accrued interest, under its convertible debenture issued to Olymbec Investments Inc. (“\n \n Olymbec\n \n ”) and subsequently amended on August 31, 2023, January 30, 2024, and February 21, 2025 (the “\n \n Olymbec Convertible Debenture\n \n ”) (the “\n \n Proposed Olymbec Share Issuance\n \n ”).\n \n\n The Olymbec Convertible Debenture was originally issued in the total principal amount of $5.7 million. As previously disclosed on June 18, 2025, the Company repaid $1 million, thereby reducing the outstanding principal to $4.7 million.\n \n\n The Company proposes to satisfy the outstanding indebtedness through the issuance of 3,462,763 common shares of Cannara (“\n \n Common Shares\n \n ”), 851,652 of which represent the repayment of interest owing, at a deemed issuance price of $1.80 per Common Share, in accordance with the terms of the Olymbec Convertible Debenture.\n \n\n The Proposed Olymbec Share Issuance is subject to the terms and conditions set forth in the policies of the TSX Venture Exchange (“\n \n TSXV\n \n ”) and the completion of the shares for debt transaction, as well as the issuance of the Common Shares, remains subject to the review and approval of the TSXV.\n \n\n Mr. Derek Stern, a non-independent director of the Company, holds a significant interest in Olymbec and is a control person of the Company. The Common Shares issued to Olymbec will be deemed a “related party transaction” in accordance with TSXV Policy 5.9 and Multilateral Instrument 61-101 –\n \n Protection of Minority Security Holders in Speci...

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