MONTREAL, July 14, 2026 (GLOBE NEWSWIRE) -- Cannara Biotech Inc. (“Cannara”, the “Company”, “us” or “we”) (TSX: LOVE) (OTCQX: LOVFF) (FRA: 8CB0), a vertically integrated producer of premium-grade cannabis products at affordable prices with two mega facilities in Québec spanning over 1,600,000 sq. ft., is pleased to announce that it has entered into a long-term international supply agreement (the “Agreement”) with Curaleaf International Limited (“Curaleaf”) for the production and supply of bulk cannabis flower destined for international markets. The Agreement, if fully realized, has a potential aggregate contract value of up to C$21 million over the term of the Agreement, based on committed supply volumes and the terms and conditions of the Agreement.

The Agreement represents Cannara’s first long-term supply commitment for international markets. In connection with this opportunity, Cannara has activated two additional cultivation zones at its Valleyfield facility during fiscal Q3 2026, bringing its total zones in production to 14 out of 24 grow zones of 25,000 ft² each. To meet anticipated commercial demand, the Company expects to activate four additional cultivation zones by the end of fiscal 2027, which would bring the total number of activated cultivation zones to 18 out of 24. Once complete, this expansion is projected to increase annual production capacity to 75,000 kg, enabling Cannara to reach its targeted production capacity approximately one year ahead of its original fiscal 2028 timeline.

Curaleaf is a leading international provider of consumer cannabis products, with an established distribution network across Europe, the United Kingdom, Canada and Australasia. The Agreement provides Cannara with access to international medical cannabis markets through a commercial relationship with one of the sector’s leading global operators, further validating the Company’s cultivation platform, product quality and ability to scale.

The Agreement is long-term, commencing August 1, 2026, with a provision for renewal upon mutual agreement. As part of the Agreement, Curaleaf will support Cannara’s pursuit of EU-GMP certification of its processing center at the Valleyfield facility. In the interim, all cannabis flower supplied under the Agreement will be fully dried and processed under EU-GMP conditions at Curaleaf’s EU-GMP certified facility in Canada prior to release into international medical markets. EU-GMP certification is widely recognized across European medical cannabis markets and is expected to further facilitate Cannara’s ability to supply products into Europe.

“We are pleased to enter into this supply relationship with Cannara, a company that has built an impressive cultivation platform supported by a strong operating team and a clear commitment to quality,” said Boris Jordan, Chairman and Chief Executive Officer of Curaleaf.

“This agreement represents a key milestone in our growth strategy and our first long-term supply commitment for international markets,” said Zohar Krivorot, Founder and Chief Executive Officer of Cannara. “Partnering with a global leader like Curaleaf validates the quality of our cultivation, the strength of our team and the foundation we have built at Valleyfield. Building on the leading position we have established in Canada, this opportunistic agreement allows us to leverage our existing cultivation platform to deliver premium Québec-grown cannabis to international patients and consumers, while we continue to expand our growth in Canada, and we look forward to a long and productive relationship with Curaleaf.”

“Securing a long-term international supply agreement with a partner of Curaleaf’s scale provides Cannara with a strong commercial framework to access international demand while remaining focused on our core Canadian growth strategy,” commented Nicholas Sosiak, Chief Operating Officer and Interim Chief Financial Officer of Cannara. “Importantly, this opportunity accelerates our Valleyfield expansion plan by approximately one year, allowing us to activate additional cultivation capacity ahead of schedule while creating a clear pathway to incremental revenue growth and long-term shareholder value.”

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ABOUT CANNARA

Cannara Biotech Inc. (TSX: LOVE) (OTCQX: LOVFF) (FRA: 8CB0), is a vertically integrated producer of affordable premium-grade cannabis and cannabis-derivative products. Cannara owns two mega facilities based in Québec spanning over 1,600,000 sq. ft., providing the Company with 100,000 kg of potential annualized cultivation output. Leveraging Québec’s favourable energy costs, Cannara maintains an efficient, low-cost production model. For more information, please visit cannara.ca.

ABOUT CURALEAF

Curaleaf Holdings, Inc. (TSX: CURA) (OTCQX: CURLF) is a leading international provider of consumer products in cannabis with a mission to enhance lives by cultivating, sharing and celebrating the power of the plant. Curaleaf International’s unique distribution network throughout Europe, Canada and Australasia brings together pioneering science and research with cutting-edge cultivation, extraction and production. For more information, please visit ir.curaleaf.com

CAUTIONARY STATEMENT REGARDING “FORWARD-LOOKING” INFORMATION

This news release may contain “forward-looking information” within the meaning of Canadian securities legislation (“forward-looking statements”). These forward-looking statements are made as of the date of this press release and the Company does not intend, and does not assume any obligation, to update these forward-looking statements, except as required under applicable securities legislation. Forward-looking statements relate to future events or future performance and reflect Company management’s expectations or beliefs regarding future events and include, but are not limited to, statements regarding the anticipated benefits of the Agreement and the strategic partnership with Curaleaf, the expected supply of cannabis flower, the potential aggregate contract value of the Agreement and the extent to which such value is realized, the parties’ performance of their respective obligations, the pursuit and potential receipt of EU-GMP certification, anticipated entry into and expansion within international markets, and the Company’s expansion strategy.

In certain cases, forward-looking statements can be identified by the use of words such as “plans,” “expects” or “does not expect,” “is expected,” “budget,” “scheduled,” “estimates,” “forecasts,” “intends,” “anticipates” or “does not anticipate,” or “believes,” or variations of such words and phrases or statements that certain actions, events or results “may,” “could,” “would,” “might” or “will be taken,” “occur” or “be achieved” or the negative of these terms or comparable terminology. In this document, certain forward-looking statements are identified by words including “may,” “future,” “expected,” “intends” and “estimates.” By their very nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance, or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements.

Forward-looking information is based upon a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from those that are disclosed in, or implied by, such forward-looking information. These risks and uncertainties include, but are not limited to, the risk factors which are discussed in greater detail under “Risk Factors” in the Company’s AIF available on SEDAR+ at www.sedarplus.ca and under the “Investor Area” section of our website at https://www.cannara.ca/en/investor-area.

Other risks not presently known to the Company or that the Company believes are not significant could also cause actual results to differ materially from those expressed in its forward-looking statements. Although the forward-looking information contained herein is based upon what we believe are reasonable assumptions, readers are cautioned against placing undue reliance on this information since actual results may vary from the forward-looking information. Certain assumptions were made in preparing the forward-looking information concerning the availability of capital resources, business performance, market conditions, as well as customer demand. Consequently, all of the forward-looking information contained herein is qualified by the foregoing cautionary statements, and there can be no guarantee that the results or developments that we anticipate will be realized or, even if substantially realized, that they will have the expected consequences or effects on our business, financial condition or results of operation. Unless otherwise noted or the context otherwise indicates, the forward-looking information contained herein is provided as of the date hereof, and we do not undertake to update or amend such forward-looking information whether as a result of new information, future events or otherwise, except as may be required by applicable law.