Author: Atrium Research October 05, 2026
Nicholas Cortellucci, CFA | Equity Research Analyst | [email protected] | 647-391-3314
Luca Perna | Equity Research Associate | [email protected] | 647-969-1027
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What you need to know:
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Cannara expanded its long-term international supply agreement with Curaleaf, lifting the potential contract value to $34M over a two-year term, up from $21M under the original July agreement (+62%).
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The upsizing comes just two months after supply began on August 1ˢᵗ, which we view as a strong validation of LOVE’s flower quality.
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The Company now has 15 of 24 grow rooms active at Valleyfield (vs. 14 at Q3/26), with a fully funded buildout plan through FY29.
This morning, Cannara Biotech Inc. (LOVE:TSX, LOVFF:OTCQX, FRA:8CB0) announced the expansion of its international supply agreement with Curaleaf (CURA:TSX, $3.8B mkt cap). The potential aggregate contract value increases to $34M over its two-year term, compared to $21M previously (+62%). We remain highly impressed by the management team’s execution on the demand side (international agreements and domestic market share gains), while progressing on opening new grow zones steadily, leading us to increase our estimates. We are maintaining our BUY rating and $3.00/share target price on LOVE.
The original agreement was signed on July 21ˢᵗ, 2026, and our note on the topic can be read here. The contract allows Cannara to take advantage of CURA’s distribution network overseas (Europe, the UK, and Australasia), while focusing on its core strength of growing quality flower. Management frames the agreement as an opportunity to continue growing together as partners, while continuing to execute on its market share gains in Canada. The Company also updated investors that 15 of its 24 grow rooms are active (+1 since Q3 financials) and it is fully funded for the remaining buildout. Management previously stated that the margins on this contract are similar to its domestic business, benefiting from the lack of excise taxes but are reduced by the orders being sold in bulk (no processing).
Curaleaf continues to support Cannara’s pursuit of EU-GMP certification for its processing centre at Valleyfield, but in the interim, flower will be dried and processed at Curaleaf’s EU-GMP certified facility in Canada. We remind investors that the EU-GMP certification should take 1–2 years, being streamlined by Curaleaf’s sponsorship.
Our Take We believe that the expanded agreement speaks to the quality of the product being produced by Cannara, with Curaleaf already being impressed and wanting more. Given the scale and capacity of the Valleyfield facility, Cannara’s main limiting factor is demand, rather than supply; the Company has a clear plan to reach its capacity by FY29 and today’s announcement brings that one step closer. The demand side is becoming more of a reality via today’s announcement, but also through market share gains in Canada, specifically outside of Quebec, which we wrote about in our last note here. Cannara plans to open four grow zones in FY27 (weighted more towards H2) which take 5–6 months to generate revenue.
We have decided to move up our FY28 estimates due to the announcement (see Figure 3), now expecting revenue of $178.6M (+19% YoY) vs. $174.2M previously and adjusted EBITDA of $47.4M (+24% YoY) vs. $46.0M previously. Our FY26 and FY27 estimates remain unchanged. We also want to highlight that Curaleaf could one day be an acquirer of Cannara as the relationship strengthens; CURA trades at a significant premium of 10.9x 2027E EBITDA vs. LOVE at 6.0x.
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