Net revenue, increased to $19.7 million in Q2 2024 from $13.0 million in Q2 2023, a 51.0% increase. Gross profit, before fair value adjustments, increased to $7.1 million in Q2 2024 from $4.0 million in Q2 2023, a 77.2% increase. Delivered a twelfth consecutive quarter of positive Adjusted EBITDA1 of $3.5 million. All financial results are reported in Canadian dollars, unless otherwise stated. MONTREAL, April 29, 2024 /CNW/ - Cannara Biotech Inc. ("Cannara" or the "Company") (TSXV:LOVE) (OTCQB:LOVFF) (FRA: 8CB0), a vertically integrated producer of premium-grade cannabis and derivative product offerings at affordable prices with two mega facilities based in Quebec spanning over 1,650,000 sq. ft., today announced its fiscal second quarter 2024 financial and operating results for the three and six-month periods ended February 29, 2024. The full set of condensed interim consolidated financial statements for the three and six-month periods ended February 29, 2024, and the accompanying management's discussion and analysis can be accessed by visiting the Company's website at investors.cannara.ca, and/or accessing its profile pages on SEDAR+ at www.sedarplus.ca. "This past quarter, despite a challenging market environment, Cannara continued to demonstrate continued positive execution towards becoming one of the leading cannabis companies in Canada. With our tenth grow zone now operational, our annual production capability has increased to 33,500 kg, underlining our dedication to increasing capacity to meet the growing market demand for our product," expressed Zohar Krivorot, President & CEO. "Our footprint is expanding robustly across Alberta and BC, bolstered by the introduction of new SKUs and the approval from the Manitoba Liquor & Lotteries Corporation, paving the way for a stronger market presence in Q3 2024. The outpouring of positive feedback from our diverse clientele across Canada reaffirms our success in delivering unparalleled premium quality at affordable pricing. My gratitude goes to our dedicated team, whose relentless pursuit of operational excellence positions Cannara on our strategic objective of becoming Canada's premier cannabis producer." "I am thrilled to share a remarkable 68% surge in our year-over-year revenues for the six months ended February 29, 2024, a testament to our growing influence in the Quebec, Ontario, Alberta, and BC markets," noted Nicholas Sosiak, CFO. " With a sharp focus on efficiency, we've seen our gross profit margin increase to 36.3% from 30.9%, alongside a notable 8.7% increase in adjusted EBITDA to $3.5 million and free cash flow2 of $1.2 million in Q2 2024 compared to the negative cash flow in the same period of prior year. Some headwinds were faced this quarter, including a net loss of $3.4 million primarily due to non-cash fair value changes, which is expected to reverse next quarter following improvements in our cultivation yields, in addition to a minimum adjusted EBITDA covenant breach on our term loan, for which a waiver was successfully obtained in addition to removing this EBITDA covenant from our term loan conditions for future periods. Our proactive steps towards streamlining assets align with our ambition to fortify our financial foundation as we relentlessly stay focused on gaining market share and becoming the leader in Canada, the second largest cannabis market in the world. As for our long-term vision, we do see our future extend beyond our borders where Cannara is a globally recognized brand synonymous with excellence and value in cannabis." _____________________________ 1 Free cash flow is a non-GAAP financial measure. For more details see the see the Non-GAAP Measures, Non-GAAP Ratios and Segment Measures section of this news release. 2 Free cash flow is a non-GAAP financial measure. For more details see the see the Non-GAAP Measures, Non-GAAP Ratios and Segment Measures section of this news release. Fiscal Second Quarter Financial Highlights Gross cannabis revenues before excise taxes increased to $26.3 million in Q2 2024 from $15.9 million in Q2 2023, a $10.4 million or 65.4%, increase. The increase is attributable to increase in market share across Canada, as a result of continued growing demand for its products and launch of new SKUs. Total revenues, net of excise taxes, increased to $19.7 million in Q2 2024 from $13.0 million in Q2 2023, a $6.7 million or 51.0% increase. Gross profit, before fair value adjustments, increased to $7.1 million in Q2 2024 from $4.0 million in Q2 2023, a 77.2% increase. Gross profit percentage before fair value adjustments in Q2 2024 was 36.3% compared to 30.9% in Q2 2023. Operating loss of $2.0 million in Q2 2024 compared to an operating income of $631,335 in Q2 2023, mainly due to a $3.0 million non-cash net impact of the change in fair value of inventory sold and an unrealized gain on change in fair value of biological assets. Net loss was $3.4 million in Q2 2024 compared to a net loss of $618,055 in Q2 2023. Adjusted EBITDA increased by 8.7%, from $3.2 million in Q2 2023 to $3.5 million in Q2 2024. As at February 29, 2024, the Company breached a minimum adjusted EBITDA covenant on its term loan, which was subsequently waived in addition to amending its credit facility to remove the minimum EBITDA requirement on a going forward basis. The Company generated positive operating cash flow amounting to $2.3 million in Q2 2024 compared to $376,962 in Q2 2023. Free cash flow for ...