Research from Atrium Research, Atrium Research Corporation

Atrium Research

Research from Atrium Research

Atrium Research Corporation

Atrium Research provides institutional quality issuer paid research on public equities in North America. Our investment philosophy takes a 3-5 year view on equities currently being overlooked by the market. Our research process emphasizes understanding the key performance metrics for each specific company, trustworthy management teams, unit economics, and an in-depth valuation analysis. 

Our research product includes in-depth initiation reports, research notes, thematic research pieces, and company fact sheets.

Equity Bottom-Up

<ul>
<li>Cannara expanded its long-term international supply agreement with Curaleaf, lifting the potential contract value to $34M over a two-year term, up from $21M under the original July agreement (+62%).</li>
<li>The upsizing comes just two months after supply began on August 1st, which we view as a strong validation of LOVE’s flower quality.</li>
<li>The Company now has 15 of 24 grow rooms active at Valleyfield (vs. 14 at Q3/26), with a fully funded buildout plan through FY29.</li>
</ul>


Cannara expanded its long-term international supply agreement with Curaleaf, lifting the potential contract value to $34M over a two-year term, up from $21M under the original July agreement (+62%).
The upsizing comes just two months after supply began on August 1st, which we view as a strong validation of LOVE’s flower quality.
The Company now has 15 of 24 grow rooms active at Valleyfield (vs. 14 at Q3/26), with a fully funded buildout plan through FY29.


LOVE: Deepening Strategic Relationship with Curaleaf

<ul>
<li>Cannara continues to defend and grow its position amongst LPs throughout geographies and segments, highlighting management execution.</li>
<li>We see several opportunities for Cannara to further penetrate the market as additional grow rooms activate and new products launch.</li>
<li>LOVE is expected to report its Q4 and FY26 financials in late November, for which we expect 17% revenue growth and 11% Adj. EBITDA growth.</li>
</ul>


Cannara continues to defend and grow its position amongst LPs throughout geographies and segments, highlighting management execution.
We see several opportunities for Cannara to further penetrate the market as additional grow rooms activate and new products launch.
LOVE is expected to report its Q4 and FY26 financials in late November, for which we expect 17% revenue growth and 11% Adj. EBITDA growth.


LOVE: Q4 Preview and Hifyre Data Review; Staying Bullish

Research from Water Tower Research, Water Tower Research

Water Tower Research

Research from Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

Equity Research Firm

<ul><li>Cannara Biotech, Inc. (TSX: LOVE, OTCQX: LOVFF, Frankfurt: 8CB0) is a vertically integrated producer of affordable, premium-grade cannabis and cannabis-derivative products, operating two mega-facilities in Quebec with 100,000 kg of potential annualized cultivation output.</li><li>Products reach ~50,000 points of distribution across Canada and the company now ranks #8 nationally with ~4% retail market share and is gaining quickly.</li><li>On the latest WTR Small-Cap Spotlight, we were joined by Nick Sosiak, COO and Interim CFO of Cannara, and our host Tim Gerdeman, WTR’s Vice Chair &amp; Co-Founder and Chief Marketing Officer, to discuss market dynamics, the new Curaleaf (CURLF) supply deal, capital allocation, the Geely-aligned board, and the North American strategy.</li></ul>

Cannara Biotech, Inc. (TSX: LOVE, OTCQX: LOVFF, Frankfurt: 8CB0) is a vertically integrated producer of affordable, premium-grade cannabis and cannabis-derivative products, operating two mega-facilities in Quebec with 100,000 kg of potential annualized cultivation output.Products reach ~50,000 points of distribution across Canada and the company now ranks #8 nationally with ~4% retail market share and is gaining quickly.On the latest WTR Small-Cap Spotlight, we were joined by Nick Sosiak, COO and Interim CFO of Cannara, and our host Tim Gerdeman, WTR’s Vice Chair &amp; Co-Founder and Chief Marketing Officer, to discuss market dynamics, the new Curaleaf (CURLF) supply deal, capital allocation, the Geely-aligned board, and the North American strategy.

WTR Small-Cap Spotlight Recap (LOVFF) : Gaining Share in the Canadian Cannabis Market

<ul>
<li>Cannara reported record Q3/26 revenue of $31.8M (+16% YoY) and Adjusted EBITDA of $8.5M (+11% YoY), both ahead of our estimates, marking a rebound from the seasonally soft Q2.</li>
<li>Gross revenue reached a record $44.1M (+16% YoY), gross margin was 42%, and net income was $4.8M (+17% YoY).</li>
<li>Cannara activated two additional grow zones (14 of 24), lifting annualized capacity above 58,000kg, and entered into its first international supply agreement with Curaleaf (up to $21M) plus exclusive Canadian rights to Blue River’s Ampersand technology.</li>
</ul>


Cannara reported record Q3/26 revenue of $31.8M (+16% YoY) and Adjusted EBITDA of $8.5M (+11% YoY), both ahead of our estimates, marking a rebound from the seasonally soft Q2.
Gross revenue reached a record $44.1M (+16% YoY), gross margin was 42%, and net income was $4.8M (+17% YoY).
Cannara activated two additional grow zones (14 of 24), lifting annualized capacity above 58,000kg, and entered into its first international supply agreement with Curaleaf (up to $21M) plus exclusive Canadian rights to Blue River’s Ampersand technology.


<ul>
<li>Cannara completed the acquisition of Medican Organic for $2.8M, building on its 2021 acquisition of the Valleyfield assets from the same company.</li>
<li>LOVE also announced that Nicholas Sosiak has been appointed COO from his role of CFO (which he held since 2020) and will begin an executive search for a new CFO.</li>
<li>Statistics Canada FY24/25 data shows Quebec’s per capita cannabis spend at $105, the lowest of any province, supporting our view that LOVE’s home market has significant growth ahead.</li>
</ul>


Cannara completed the acquisition of Medican Organic for $2.8M, building on its 2021 acquisition of the Valleyfield assets from the same company.
LOVE also announced that Nicholas Sosiak has been appointed COO from his role of CFO (which he held since 2020) and will begin an executive search for a new CFO.
Statistics Canada FY24/25 data shows Quebec’s per capita cannabis spend at $105, the lowest of any province, supporting our view that LOVE’s home market has significant growth ahead.


Canada

Cannara Biotech Inc. provides biomedical products. The Company offers organic cannabis for medical purposes. Cannara Biotech serves customers in Canada.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Cannara Biotech (LOVE CN)

LOVE: Deepening Strategic Relationship with Curaleaf

Cannara expanded its long-term international supply agreement with Curaleaf, lifting the potential contract value to $34M over a two-year term, up...

Atrium Research

LOVE: Q4 Preview and Hifyre Data Review; Staying Bullish

Cannara continues to defend and grow its position amongst LPs throughout geographies and segments, highlighting management execution.

Atrium Research

LOVE: Back on Track with Q3 Financials

Cannara reported record Q3/26 revenue of $31.8M (+16% YoY) and Adjusted EBITDA of $8.5M (+11% YoY), both ahead of our estimates, marking a rebound...

Atrium Research

LOVE: Couple Solid Updates

Cannara completed the acquisition of Medican Organic for $2.8M, building on its 2021 acquisition of the Valleyfield assets from the same company.

Atrium Research

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

LOVE: Deepening Strategic Relationship with Curaleaf

Cannara expanded its long-term international supply agreement with Curaleaf, lifting the potential contract value to $34M over a two-year term, up...

Atrium Research

LOVE: Q4 Preview and Hifyre Data Review; Staying Bullish

Cannara continues to defend and grow its position amongst LPs throughout geographies and segments, highlighting management execution.

Atrium Research

WTR Small-Cap Spotlight Recap (LOVFF) : Gaining Share in the Canadian Cannabis Market

Products reach ~50,000 points of distribution across Canada and the company now ranks #8 nationally with ~4% retail market share and is...

Water Tower Research

LOVE: Back on Track with Q3 Financials

Cannara reported record Q3/26 revenue of $31.8M (+16% YoY) and Adjusted EBITDA of $8.5M (+11% YoY), both ahead of our estimates, marking a rebound...

Atrium Research

LOVE: Couple Solid Updates

Cannara completed the acquisition of Medican Organic for $2.8M, building on its 2021 acquisition of the Valleyfield assets from the same company.

Atrium Research