Cannara Biotech secures $58M credit facility with BMO and TD
What's the deal? Cannara Biotech, a Québec-based cannabis producer, has entered an amended and restated syndicated credit agreement worth US$58.7M (roughly $58 million). Bank of Montreal (BMO)Dealroom has a profile for this one. Try Dealroom → and The Toronto-Dominion Bank (TD)Dealroom has a profile for this one. Try Dealroom → lead the financing, which primarily refinances existing borrowings while adding liquidity.
The step-up: The US$58.7M facility marks a US$22M increase from the roughly US$36.7M Cannara could access before refinancing. Committed revolving capacity rises from US$7.33M to US$29.3M, and the maturity date extends from December 31, 2027, to December 31, 2029.
What's the endgame? Cannara is a vertically integrated producer running two facilities in Québec spanning over 1,600,000 sq. ft. The added liquidity supports working capital, general corporate needs, and continued capital investment at its Valleyfield facility.
The bank relationships: BMO continues as administrative agent, syndication agent, and sole bookrunner, and joins TD as co-lead arranger. TD's addition broadens Cannara's banking platform beyond its longstanding relationship with BMO.
Chief executive officer and founder Zohar Krivorot called the facility “a strong endorsement of the business we have built and the disciplined, profitable growth we continue to deliver.” Chief operating officer Niko Sosiak said the refinancing “meaningfully strengthens our capital structure.”
The signal: Landing two of Canada's largest banks at expanded terms and reduced borrowing costs signals institutional confidence in a cannabis sector still working to prove sustainable profitability. For Cannara, the deal builds a foundation for what Krivorot describes as its “next phase of growth in Canada and internationally.”
