Cannara Biotech Inc. Enters into an Automatic Share Purchase Plan

Rhea-AI Summary

Cannara Biotech Inc. (TSXV: LOVE, OTCQB: LOVFF) announced on February 28, 2023 the establishment of an Automatic Share Purchase Plan (ASPP) with Raymond James Ltd. to facilitate the repurchase of common shares under its previously approved Normal Course Issuer Bid (NCIB). This NCIB allows Cannara to buy back up to 1,500,000 shares, representing approximately 1.7% of the outstanding common shares as of November 30, 2022. The ASPP permits share purchases during periods when the company may not trade due to insider rules. This measure aims to enhance shareholder value while adhering to Canadian securities regulations.

Positive

• Establishment of an Automatic Share Purchase Plan (ASPP) to repurchase shares.
• Approval to buy back up to 1,500,000 shares under the Normal Course Issuer Bid (NCIB).
• Repurchase represents approximately 1.7% of the total outstanding shares, which could benefit shareholders.

Negative

• None.

News Market Reaction

-7.75%

1 alert

-7.75% News Effect

On the day this news was published, LOVFF declined 7.75%, reflecting a notable negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

MONTREAL, Feb. 28, 2023 /PRNewswire/ - Cannara Biotech Inc. ("Cannara" or the "Company") (TSXV: LOVE) (OTCQB: LOVFF) (FRA: 8CB), a vertically integrated producer of premium-grade cannabis and derivative products with one of the largest indoor cannabis cultivation facilities in Canada and the largest in Quebec, today announced that it has entered into an automatic share purchase plan ("ASPP") with Raymond James Ltd. ("Raymond James"), acting as Cannara's broker, in order to facilitate repurchases of the Company's common shares ("Common Shares") under its previously announced normal course issuer bid ("NCIB").

Cannara previously announced on November 30, 2022, that it had received approval from the TSX Venture Exchange (the "TSX-V") to, during the 12-month period commencing December 3, 2022 and terminating December 2, 2023, purchase up to 1,500,000 of its common shares (post-consolidation) (the "Shares") representing approximately 1.7% of the total 87,748,132 common shares (post-consolidation) of Cannara issued and outstanding as at November 30, 2022, by way of a NCIB to be effected by means of open market transactions or otherwise as permitted by the TSX-V.

During the effective period of Cannara's ASPP, Raymond James may purchase Common Shares at times when Cannara would not be active in the market due to insider trading rules and its own internal trading blackout periods. Purchases will be made by Raymond James based upon parameters set by Cannara when it is not in possession of any material non-public information about itself and its securities, and in accordance with the terms of the ASPP. Outside of the effective period of the ASPP, Common Shares may continue to be purchased in accordance with Cannara's discretion, subject to applicable law. The ASPP has been entered into in accordance with the requirements of applicable Canadian securities laws.

About Cannara Biotech Inc.

Cannara Biotech Inc. (TSXV: LOVE) (OTCQB: LOVFF) (FRA: 8CB) is a vertically integrated producer of premium-grade cannabis and cannabis-derivative products for the Québec and Canadian markets. Cannara owns two mega facilities based in Québec spanning over 1,650,000 sq. ft., providing the Company with 125,000kg of potential annualized cultivation output. Leveraging Québec's low electricity costs, Cannara's facilities produce premium-grade cannabis products at an affordable price. For more information, please visit cannara.ca.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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SOURCE Cannara Biotech Inc.

FAQ

What is Cannara Biotech's recent announcement on share repurchase?

Cannara Biotech announced an Automatic Share Purchase Plan with Raymond James to facilitate the repurchase of shares under its Normal Course Issuer Bid.

How many shares can Cannara Biotech repurchase under the NCIB?

Cannara can buy back up to 1,500,000 common shares, representing approximately 1.7% of its total outstanding shares.

When was the share repurchase plan announced?

The share repurchase plan was announced on February 28, 2023.

What is the purpose of the Automatic Share Purchase Plan?

The ASPP is designed to facilitate share repurchases when Cannara is restricted from trading due to insider rules.

Is the share repurchase plan compliant with regulations?

Yes, the ASPP complies with applicable Canadian securities laws.