Another Canadian cannabis firm will begin trading on public markets soon. Quebec-based Cannara Biotech, a firm that focuses on cannabis derivative products, announced today that it would begin trading on the Canadian Securities Exchange (CSE) under the ticker “LOVE” as of January 14, 2019.
Since July, the company succeeded in securing two private financing rounds that brought over $55 million collectively for the firm. Additionally, the company also boasts a strong cash position with over $40 million, along with a newly completed 625,000 square foot indoor facility in Farnham, Quebec.
“Since early 2017, we have been quietly assembling and advancing the necessary infrastructure to build Canada’s premier cannabis company. Today, with one of the largest indoor facilities in Canada and the largest in Quebec, we are all positioned to execute on a strategic plan including cultivation, product branding, derivative products and development of intellectual property,” said Cannara CEO Zohar Krivorot. “We are excited to begin our next phase as a public company and to continue our growth trajectory.”
At the time of the original financing rounds back last year, Krivorot said that the firm intends to expand by acquiring additional properties through M&A activity. Additionally, the firm would place emphasis on product branding to help stand out in the cannabis marketplace. Cannara’s initial product portfolio included seven brands, such as “Cannabar” as it’s edibles brand, “Floragel” for oils and tinctures, “Nativa” for flower and vape cartridges, “PetLeaf” for animal wellness, “Gummyz” for candy, “Earth Magic” for cosmetics and “Liquid CBD” for their CBD infused beverage line.
“Underpinning our public listing are two strong fundamentals, our healthy cash position which provides sufficient funding to execute on our business plan and provides us great flexibility in our business model moving forward,” added CFO Lennie Ryer. “And two, our one-of-kind facility in Quebec, which is already attracting significant interest from industry leaders to partner with us in a host of joint venture type relationships to develop cannabis-infused products.”
According to Cannara Biotech’s website, the firm has also filed 15 patents, 8 of which being dermal, 4 oral, and 3 for household pets. At the same time, the company also holds 35 separate trademarks and also maintains a partnership with FV Pharma. As a major medical cannabis producer, the company owns a 25 percent stake in the company, as well as operates a partial 102,000 square foot out of Cannara’s 625,000 square foot facility.
While Cannara might be a relatively obscure company as far as cannabis cultivators go, it does have a couple of advantages going in its favor. Most notably, the firm operates largely in Quebec, the province with the lowest electricity rates in all of North America. This helps make producing cannabis cheaper than in other areas. Quebec also has the second largest population in the country, meaning that it’s also close to a significant market and won’t require lengthy transportation and supply chains to ship.
Cannara Biotech Company Profile
Cannara Biotech is building the largest indoor cannabis cultivation facility in Quebec, a modern and secure 625,000 square foot facility located in Farnham, less than 45 minutes from downtown Montreal. Leveraging Quebec’s low electricity costs, Cannara will produce high-grade indoor cannabis and derivative products for the Canadian and international markets. Working with partners from various industries, Cannara will generate licensing revenues, rental revenues and revenue streams from joint-venture arrangements leveraging this highly valuable property. – Cannara Biotech