Cannara Biotech Inc. (LOVE:TSX)
Cannara is in the top 10 LP’s in Canada and the leader in Quebec, growing revenue at a 111% CAGR since 2020. Cannara has achieved this with extremely minimal dilution.
The Valleyfield facility was purpose-built for $250M and acquired for just $33M, providing 24 independent grow zones with capacity for 100,000kg annually. With a $30M capex plan over three years, LOVE has a clear and low-risk path to full capacity by FY30, generating ~$300M in revenue.
LOVE benefits from Quebec's lowest electricity rates in Canada and high regulatory barriers limiting competition to just 151 brands vs. 500+ in Ontario.
Quebec launched vape sales in November 2025, a category representing 15-25% of sales in other provinces, and LOVE immediately captured leading market share.
Despite superior growth and margins, LOVE trades at a discount to large-cap LPs. A recent comparable transaction in Canopy's acquisition of MTL Cannabis implied 11.6x LTM EBITDA, underscoring meaningful re-rating potential.
Investment Summary
Cannara is a vertically integrated producer of affordable premium-grade cannabis and cannabis-derivative products for the Canadian markets. Cannara owns two mega facilities based in Québec spanning over 1,600,000 SF, providing the Company with 100,000 kg of potential annualized cultivation output. Leveraging Québec’s low electricity costs, Cannara’s facilities produce premium-grade cannabis products at an affordable price.
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