Good morning, everyone. We are now presenting a Q&A with Nick Sosiak from Cannara, with Nick Cortellucci from Atrium Research. Good morning, everyone. My name is Nick Sosiak, we are going to talk about cannabis today. Our company is Cannara Biotech, I will first go into a little bit about myself and how I started at the company. I joined the company just right about when it went public in 2019. We went on to the Canadian Securities Exchange, eventually onto the TSXV, just recently, in 2026, we upgraded to the TSX. I was previously the CFO since 2019. Built the company finance, accounting, every duty that a CFO has to do, in addition to building the sales and marketing and the operations of the company. I am a very passionate individual about cannabis ever since I was a teenager, my position today allowed me to merge my career path of being a CPA with my passion for the cannabis plant. Recently, I got promoted to Chief Operating Officer. We are looking for a Chief Financial Officer, if anyone is interested. Yeah, we got a lot of runway, which I am going to go through our slides. I also want to mention, our CEO couldn't be here, Zohar Krivorot. Zohar founded the company. He is the president of the company. He is still in the facility every single day from Monday to Monday. He is actually the master grower. In cannabis, growing cannabis, it is a weed, people think it is really easy, most companies failed and closed up their cultivation assets because they couldn't learn how to grow cannabis at scale. The reason why is there is no consultant out there that can give us guidance on how to grow this plant. We are the ones gaining this experience, building this experience. There is a lot of IP that is unseen in these cannabis companies, in our cannabis company, that has a lot of value for the future. Does the remote work? Thanks. All right. Cannara, who we are. We are a Canadian licensed producer based out of Quebec. We are amongst the top 10 Canadian cannabis companies. We have 450 employees, we are a large company. We have three flagship brands, Tribal, Nugz, and Orchid. I am going to go into our facility, we have over 1.6 million square feet of owned cultivation assets, that is super important for the scalability of our operations. We can produce today 50,000 kgs or 50 million grams of cannabis, in the next two to three years, our project is going to scale double that number. We are going to go to 100,000 kgs, our average cost per gram is about CAD 2.75. That's CAD 275 million that this company can generate in our phase one in focusing on Canada. We're in eight of the 10 provinces. The two provinces that we don't operate are small maritime provinces. We're 94% of retail stores with only a 3% penetration into those markets. We still have a lot of room to grow within our existing markets in Canada. We're the number one licensed producer in Quebec. That's our home province. A bit different in Canada. What's really cool about being a cannabis company is our client is the government. We sell to the Quebec government, which is the SQDC. We sell to Ontario OCS, Alberta AGLC, and BC as well. We're number one in Quebec, which is our home province. We started our operation in Quebec. We focused on Quebec to carve out and prove ourselves out that we can be number one in our own market. Over the past three years, we've been scaling over into Ontario, Alberta, and BC and slowly gaining market share in those provinces. On top of all that, though, we are actually profitable. We're cash flow positive, and it's not just a one-shot. It's 20 consecutive quarters of positive adjusted EBITDA and 14 consecutive quarters of operating cash flow. I'm going to go into our financials here. This is our yearly financials. Last year, our year end is August 31, 2025. Last year, we generated CAD 150 million of gross revenue. We had to give a big chunk of change. The difference between our gross revenue and our net revenue, CAD 107 million, is excise tax. As a cannabis company, we get charged CAD 1+ on every gram of cannabis we sell, and we pay that in a form of excise tax. That left us with a net of CAD 107 million. We have been generating consistently, of course, a couple of quarters up and down, but we are consistently going forward generating over 40% gross margins. I believe as we scale up, we can achieve 50% gross margins, and we'll meet in the middle at 45%. Adjusted EBITDA for the year was CAD 28.1 million, and we also generated CAD 20 million of cash flow. This was last year, where Q2 2026 was February. In February, we had a little bit of seasonality. February Q2 is December, January, and February. The stores load up for December, they buy all in November, they degrade December month at the store level, it slowly gets replenished January and February, and it kicks off again in March. That's our Q3, and I'm happy to report, it's public information. We haven't released it officially, but you could see it in the public databases that May 2026 was our highest month ever of sales. The trend for us still continues. We're about CAD 170 million market cap, CAD 180 million enterprise value, 100 million shares outstanding. Again, we have a lot of skin in the game. Zohar, our CEO, who's at the facility every single day, has 25% ownership in our company, so he's extremely invested in making sure this works, as well as the Stern family, which is in Olymbec. They're a Montreal-based real estate company. They were the ones that sold us our first facility, which I'll show you, the Farnham facility. We bought it in 2019 for CAD 12 million. Although they've never ventured outside of real estate, they saw the potential of what we are building, they are also 25% owners. Between Zohar and Derek, who's also a board member, we have internal ownership of over 50%. We also recently did a raise, it was back in February, with Phoenician Capital. We did a raise of CAD 6 million at CAD 2.10 when we were trading out at CAD 1.70. No warrants, just a clean, straight private deal. We brought them on because they had institutional experience. They were ready to pay a premium, Phoenician Capital is a type of institution that continues to buy in-market once they do their initial load. Great partner, that's our equity stack at the bottom right. These are our facilities. Left one is the first one, 625,000 sq ft. That was the original facility that the board member sold us. We built out 200,000 sq ft of cannabis operation, we leased out the other 400-odd sq ft to long-term tenants that generate over CAD 4 million a year. These are non-cannabis tenants, we use that revenues to reinvest into the cannabis operation. In 2021, we landed on an opportunity of a lifetime, our 1 million square feet purpose-built facility. Purpose-built is extremely important in cannabis because to grow cannabis is extremely hard and you need to control every single variable of that cannabis plant if you want quality for your end product. Taking an old tomato greenhouse or a lettuce greenhouse and reconverting into cannabis, it is extremely hard to get that quality and control it. Valleyfield was built for over CAD 250 million, purpose-built for cannabis production. In 2021, we bought it off our competitor for CAD 27 million. CAD 0.10 on the dollar. If you look at my balance sheet, I have only CAD 27 million of value for this CAD 250 million asset that we acquired. That's what scaled us. We've turned on, there's 24 rooms in this facility, 25,000 sq ft. We turned on 12 rooms as of today, half of the facility. We produce 50,000 kgs. We have another 12 rooms, 100,000 kgs. Very simple math. We own the assets. We've executed for the past seven years, we have three years left to finish the project. Important, being in Quebec, access to low-cost electricity and low-cost labor. Those two cost inputs represent 70% of the cost of cultivating a gram of cannabis. Being in Quebec provides us huge price advantage, we pass that on to our customer. Our three brands, Tribal, Nugz, and Orchid CBD. Tribal is our flagship house of genetics brand. In cannabis, unlike any other agricultural product, we have to find what we call genetics. Of course, there's tomato genetics and lettuce genetics, as soon as a agriculture grower finds their genetics, they produce that for pretty much a lifetime. They don't change the type of lettuce they're growing. For cannabis, our consumer wants a different lettuce every six months. Every six months, we have to go back to our operation and figure out what is this new type of cannabis plant that we have to grow. From the flavor, from the high, from the overall experience, from the look. There's over thousands of thousands of genetics. I tie our industry to agriculture and fashion. We're a high-pace fashion industry, but we have an agricultural product, which makes growing weed extremely difficult. That's why we've invested significant amount of money in our assets and our IP on how to do this at a commercial scale. Tribal is always hunting those new genetics. We are fully vertically integrated, so we do dry flower, we do pre-rolls. We do about three million pre-rolls a month. We do live resin vape carts, rosin, all kinds of different products. Nugz is more bulk, so there's smaller formats under Tribal. Nugz has bigger bulk, so we pass down even more savings to our customer. Orchid CBD is our wellness brand. CBD, more focused on the CBD component, which is more of your wellness body versus THC, which is a psychedelic high. All that, we wrap that up. This is a slide that shows how we are successful. As I said, we have two mega facilities. We can produce, and we proved it Even if we had the facilities, you still have to prove that you can grow cannabis at scale. The amount of time that our team is putting, and the CEO and myself, in the grow to understand the plant and then refine it and ensure consistency and the quality of the product is huge. Because of our price of electricity and labor, we're disruptive. Right from the beginning, we made sure that we're not value, but we're in that between value and medium, and we're playing right in there, but with a high-tiered quality product. We're disciplined. We bought this CAD 250 million asset for CAD 27 million. We didn't just start it right away and turn on all 24 rooms and plant everything and cross our fingers to hope everything works. No. We're turning on every room one by one to make sure that we can sell the product, and we can turn it over and sell it again and sell it again consistently with the same quality. Over the past three years, we've been doing that to 12 rooms, and now we think over the next two years, we can turn on the next 12 rooms as well. Fully vertically integrated. We do cultivation, packaging, everything. Till the end product ships to the government's door. We get paid on the 30-day net 30. The government sells it to the private retails. Genetics and products, key. We have a whole team. I'm super involved in genetics and product innovation, which helps propel the innovation from the top down the organization. The amount of R&D and IP that we're building within the organization. We can single-handedly change our financials by continuing to focus on the grow. A biggest factor of cannabis growing is yield. If I grow plants and I find genetics that give me 60 g a plant, I also have genetics that give me 120 g a plant. Right now, my blend is about 80 g a plant. As time goes by, we're looking for those high-yielding genetics. All that results in a very profitable company, cash flow positive. We're one of the, I think, the only retained earnings cannabis company in Canada. We have number one market share in Quebec. We're number four, five in the rest of Canada. We're building this to be profitable. That's my presentation, and I'll open up for Nick to ask me some questions. Can you guys hear me? Yeah. My name's Nick Cortellucci. I'm with Atrium Research. We are a research firm that covers Cannara. They are a paying client of the firm, for full disclosure. I'll go through some questions here, and we'll pause for some audience questions as well. Cannara has some of the highest margins in the group here. What do you attribute that to? Is that the facility, the brands, the genetics, kind of a combination of everything? It's definitely a combination of everything, for sure. Valleyfield. The advantage in the synergies of having 24 rooms of 25,000 sq ft. These are individual. You can look at 25,000 sq ft as an individual grow on its own. We have 24 of them right next to each other. The scales of economy add up every room that I turn on. I turn on a room, I need one more person to turn on the room, and that room generates every harvest around CAD 3 million, CAD 10 million-CAD 12 million a year. We can scale that up. As well as our genetics and our pheno hunting program. Like I said, having a genetic in the early days, we didn't have You're trying to build a company, and you're trying to pheno hunt and find these genetics at the same time. You have to choose, do I make revenue, or do I invest in the research and development? At the beginning, it was hard to invest in research and development. We had to go with genetics that were great for us, but they don't have the highest yielding. As we develop and continue pheno hunting, we can find these, what I call unicorn genetics, that actually produce high yields. Then you have that across your whole portfolio. That's not even factored in my margin profile. Right. Okay. Remind us, what are the CapEx plans from maybe a Canadian dollar perspective, and how does that translate to annual growth? Yeah. We have this CAD 250 million facility. If we were to spend CAD 250 million on this facility, I would close my doors. We could not operate at that level, but we are successful at acquiring that CAD 250 million for CAD 27 million. How does the CapEx plan work? It's a CAD 1 million. If you come by our booth, we have virtual goggles that you can go through our facility. Every room was built. We have the tables, we have the lights. There's about a CAD 1 million spend for each room, which is mostly chilling capacity. A CAD 1 million spend. I have 12 rooms to turn on, so that's CAD 12 million. Attached to this 24-zone greenhouse is we have a 200,000 sq ft processing center. Yes, you grow cannabis, and you can open rooms and invest to grow the actual plant. You can spend two, three months growing a plant, and then you harvest it, and you go through the post-harvest cycle too fast, you're going to ruin your plant. You're going to ruin all the hard work and all the money that you spent over the past three months growing that plant. Post-harvest is equally as important as cultivation. Post-harvest is we have a 200,000 sq ft warehouse. We're building drying rooms, trimming rooms, freezing capacity, the storage, and all that stuff. That processing building, we invested CAD 12 million this year in 2026, and we're investing another CAD 20 million in 2027 to complete the processing building, and that will allow us to process all 24 rooms that we have at Valleyfield. Are you guys all cashed up for that, or do you foresee having to go back to the market? We have over CAD 20 million in the bank. We have open lines of credits of close to CAD 16 million. Last year generated CAD 20 million of cash flow. May is my highest month ever, you can kind of extrapolate to that. We're cashed up. Good. Okay. What is the growth playbook for the other provinces? You kind of won in Quebec, how do you look at expanding elsewhere? Yeah. I think we're expanding. Quebec, we're number one. Do I see us doubling Quebec? No. We're already 15% margin. Sorry, 15% market share. Could I get to 20? Possibly, there will be a cap that the government will put on us. We're focusing on Ontario, Alberta, BC. It's the same playbook. We focus on the product. We make sure the product is quality, consistent, and priced right, then it becomes distribution and marketing. Over the past two years, we've been investing in our sales and marketing. Quebec is extremely important. There's no sales and marketing allowed. Why we're successful in Quebec is just because of product quality. I cannot go into a store and show a banner. When you go into an SQDC, it's just wall-to-wall, no branding, just the products. Even the budtender behind the retailer behind the counter can't recommend a product. They make it extremely hard to operate if you don't have a good product or you're priced right. We never built a robust sales team and distribution. We really focused on Quebec and our product. Over the past two years, we've been really just slowly building up that sales and marketing team and penetrating those markets. Ontario is our highest market share in May as well, our plan's working, we're just scaling up. What fuels our growth is innovation. If you're static on your products for more than six months a year, you're going to start seeing market share decreases. We always have to be on top of the innovation. We invest a huge amount of money in innovation, that's going to propel the growth across Canada. Fantastic. Okay. We'll pause my questions here because I think there were some in the audience. Yes, sir. You basically took a trip to Germany. Yes. Yes, I did. Is there a lot to do there? Just to repeat the question, Cannara recently took a trip to Germany and asking for more color on that. We've always said Cannara is a Canadian. We're focused on Canada, and we still are 100% focused on Canada. Canada is the market. We have to focus on it, and it's a slow and steady approach to building up that market. We still have 12 rooms available. My plan is next two, three years is to turn on the 12 rooms for Canada. That is still my plan. Between then and now, is there an opportunity to generate additional revenue that doesn't compete with the plans in Canada? That was part of my trip in Berlin, is understanding the international markets. Canada's one of the only hubs to export cannabis to international markets. A lot of companies have decided to move their operation or move their sales from Canada and internationally. You get better margins. For us, we're still focused on Canada, but we still have to be open-minded and look at all the different opportunities that are available. Germany is a huge, huge market. It's growing every quarter that goes by. It's something that's interesting but doesn't deviate from our main plan. In other words. [audio distortion] That's correct. Okay. Can you walk us through, I think you said a little bit, but maybe go a bit deeper on why Q2 was weaker than your typical results and then how Q3 is shaping up. Q2, like I said before, is seasonality. Our Q2 is the way, because we're an August year-end, is December, January, February. It is the biggest hit on seasonality. Plus, we didn't have an innovation pipeline, which we're going to correct for next year. We had most of our innovation pipeline coming in the previous quarters. We're going to move our innovation pipeline to have a lot of it or focus on that quarter to offset the seasonality aspect. We saw that jump right back up in March. The lack of orders or the lack of sales, we got preloaded in Q1. Q1 was our best quarter ever. Then we took that little hit of seasonality in Q2, then in Q3 it's resuming. Great. How do you view the supply-demand dynamic right now, given that the international markets can now kind of suck out some of that excess supply? Yeah. It's been like that for a while. We saw that shift of Canadian operators and Canadian supply going overseas. We're seeing price compression or a lot of competition internationally. I think it's not going to affect Canada so much because we've reduced our cultivation assets. There's not a lot of growth left in Canada. To compete in Canada is still super competitive, right? I think the competitors realize, "We have to stop fighting, and we're fighting ourselves on price. We have to build our market." We're starting to see price increases. I don't see these crazy SKU coming at these prices that I know that they can't make margin on. I'm seeing our competitors increase prices on certain categories and kind of leveling it off. Overseas, I think it's still going to be a little bit of competition. Okay. One last question from the audience, if there are any. If not, maybe just tell us what you think the end game is for Cannara. Do you want to grow this into a top five, top three LP, or do you think someone else will swallow you guys up? We want to be here. We're so vested into it, and we see so much opportunity for Cannara. The next two, three years is going to complete our Canadian project. There's international opportunities, U.S. opportunities. After three years, we've built a platform of large-scale cannabis growing. At the beginning, I said people closed up their shops because they couldn't call a company to understand how to grow, which genetics to grow. How do I do my branding? How do I build this cannabis company? Well, those questions are going to come internationally and U.S. when we open up, and we're going to have that plan. Amazing. Well, thanks for the time, Nick. Thank you, Nick. Feel free to check out their company's website. Thank you.