Cannara Biotech Inc. (TSX: LOVE, OTCQX: LOVFF, FRA: 8CB0) has entered into a long-term international supply agreement with Curaleaf International Limited to produce and supply bulk cannabis flower for international markets, according to a press release from the Montreal-based company.

The agreement, which begins August 1, 2026, carries a potential aggregate contract value of up to C$21 million over its term, based on committed supply volumes and contract conditions. Cannara describes it as the company's first long-term supply commitment for international markets.

In connection with the deal, Cannara activated two additional cultivation zones at its Valleyfield facility during fiscal Q3 2026, bringing total active zones to 14 out of 24 available grow zones of 25,000 sq. ft. each. The company expects to activate four more zones by the end of fiscal 2027, reaching 18 active zones and a projected annual production capacity of 75,000 kg — approximately one year ahead of its original fiscal 2028 target.

Under the agreement, Curaleaf will support Cannara's pursuit of EU-GMP certification for its Valleyfield processing center. In the interim, cannabis flower supplied under the deal will be processed under EU-GMP conditions at Curaleaf's EU-GMP certified facility in Canada before release into international medical markets.

Curaleaf Holdings, Inc. (TSX: CURA, OTCQX: CURLF) operates a distribution network across Europe, the United Kingdom, Canada, and Australasia.

"This agreement represents a key milestone in our growth strategy and our first long-term supply commitment for international markets," said Zohar Krivorot, Founder and Chief Executive Officer of Cannara.

Boris Jordan, Chairman and Chief Executive Officer of Curaleaf, said the company is "pleased to enter into this supply relationship with Cannara."