MONTREAL, Québec — January 2, 2026 — Leads & Copy — Cannara Biotech Inc. (TSXV: LOVE) (OTCQB: LOVFF) (FRA: 8CB0) has announced preliminary success in the Québec provincial vape cartridge category launch.
The vertically integrated producer of premium-grade cannabis products at affordable prices, with two mega facilities based in Québec spanning over 1,650,000 sq. ft., reported estimated retail sales data indicating multiple leadership positions across the nascent category for November and December 2025, with a 29.7% category share by retail sales value.
The success of the vape category launch also advanced Cannara to a #1 market share position by retail sales in Quebec for December 2025, with a 14.7% share of cannabis retail sales in the province, a 100-basis point improvement month over month.
“The vape cartridge category launch in our home province of Québec has been a valuable opportunity to further expand our position as Canada’s #1 premium vape producer. With 5 of the 25 total SKUs approved, we successfully positioned our business for the largest product category launch in recent Canadian cannabis history, and I am encouraged at the strong initial consumer demand for our premium vapes,” said Zohar Krivorot, President & CEO of Cannara.
The company also announced that on December 31, 2025, its board of directors approved the cancellation and re-issuance of certain previously granted stock options to certain officers, directors and employees of the Company in connection with the administration of the Company’s equity compensation plans. The grant of the Affected Options was originally announced in news releases issued by the Company on September 1, 2025, and November 24, 2025.
The Company determined that, due to an administrative oversight, the issuance of the Affected Options resulted in the Company exceeding the limits permitted under its stock option plan and restricted share unit compensation plan, each of which is currently a rolling plan permitting the issuance of up to 10% of the Company’s issued and outstanding common shares. The Affected Options were cancelled and are to be re-issued on January 2, 2026, with substantially the same terms and conditions, including the same exercise prices, with vesting schedules and expiry dates intended to remain unchanged and to continue as if originally granted.
A total of 544,600 stock options were cancelled and re-issued, including 515,000 stock options held by directors and officers of the Company. Amongst the cancelled and re-issued options held by insiders of the Company, 500,000 have an exercise price of $1.44 expiring on August 27, 2035, and 15,000 have an exercise price of $1.80 expiring on November 20, 2032. The cancellation and re-issuance were undertaken solely to address the administrative oversight and did not result in any net increase of stock options outstanding under the Stock Option Plan.
As disclosed in the Company’s management proxy circular dated December 18, 2025, in connection with a review of the Company’s security-based compensation arrangements and certain housekeeping changes undertaken to align the Stock Option Plan with governance practices applicable to senior Canadian stock exchanges, the Company is seeking shareholder approval at its annual general and special meeting to be held on January 29, 2026, to amend and convert the Stock Option Plan and the RSU Plan from rolling plans to fixed security-based compensation plans. The proposed amendments are intended to provide greater administrative clarity and facilitate ongoing compliance with plan limits.
Following implementation of the proposed amendments, the aggregate number of listed shares issuable under both plans will be fixed at 15% of the Company’s issued and outstanding listed shares as at the date of shareholder approval. The TSX Venture Exchange has provided conditional approval of the amended Stock Option Plan and amended RSU Plan, subject to shareholder approval. Copies of the amended plans are appended to the Circular.
In addition, the Company announced that, on December 31, 2025, its board of directors approved the accelerated vesting of 15,000 restricted share units previously granted to the late Jack Kay, a former director and officer of the Company, effective December 31, 2025, to ensure compliance with the terms of the RSU Plan following his passing on November 8, 2025.
“Our highly advanced, vertically-integrated platform enabled the creation of truly premium, best-in-class products for Québec’s newly launched vape category. We are pleased to see strong reception to the launch of our first-ever rosin vape cartridge offerings, alongside our already nationally leading premium live resin vapes. We look forward to the continued consumer adoption of the category,” said Nicholas Sosiak, Chief Financial Officer of Cannara.
Nicholas Sosiak, CPA, CA
Chief Financial Officer
nick@cannara.ca
Zohar Krivorot
President & Chief Executive Officer
zohar@cannara.ca
Source: Cannara Biotech Inc.
