Cannara Claims Québec Cannabis Crown with Dominant Vape Launch

MONTREAL, QC – January 02, 2026 – Cannara Biotech has ascended to the top of Québec's cannabis market, securing the number one market share position in its home province as of December 2025. The achievement was largely propelled by the explosive success of the newly introduced vape cartridge category, where the company immediately established a commanding presence.

The Montréal-based producer announced it captured 14.7% of all cannabis retail sales in Québec for December, representing a significant 100-basis point increase from the previous month. This milestone solidifies a period of aggressive growth for the company, which has steadily climbed the provincial rankings over the past year and a half. This market leadership arrives concurrently with significant corporate governance updates, including a correction of stock option grants and proposed changes to its employee compensation plans.

The Vape Revolution in La Belle Province

The catalyst for Cannara's surge to the top was the long-awaited launch of cannabis vape products in Québec, a category that went live in the final months of 2025. Cannara capitalized on the opportunity, capturing an estimated 29.7% of the vape category's retail sales value across November and December.

This immediate success highlights the significant pent-up demand within the province. Despite being unavailable legally until late last year, a 2024 survey from the Institut de la statistique du Québec indicated that roughly a quarter of the province's cannabis consumers were already using vape products, likely sourced from illicit or out-of-province markets. Cannara's ability to quickly meet this established demand with regulated, tested products proved to be a decisive strategic advantage.

The company managed this feat despite Québec's stringent regulations, which cap THC content in vapes at 30% and prohibit any added flavors, permitting only naturally occurring cannabis-derived terpenes. Cannara entered the market with five of the initial 25 stock-keeping units (SKUs) approved by the Société québécoise du cannabis (SQDC), representing 20% of the initial product assortment. The offerings included both its nationally recognized premium live resin vapes and its first-ever rosin vape cartridges.

"The vape cartridge category launch in our home province of Québec has been a valuable opportunity to further expand our position as Canada’s #1 premium vape producer," said Zohar Krivorot, President & CEO of Cannara. "I am encouraged at the strong initial consumer demand for our premium vapes."

A Strategy for Market Leadership

Cannara's rise is not an overnight success but the result of a long-term strategy centered on vertical integration and leveraging regional advantages. The company operates two massive facilities in Québec spanning over 1.65 million square feet, benefiting from the province's low electricity costs to produce what it markets as "premium-grade cannabis at affordable prices."

This model has fueled a steady climb. Publicly reported data shows the company's market share in Québec grew from approximately 11.8% in mid-2024 to 12.8% by early 2025, before hitting the 14.7% peak that secured its number one spot. This growth is backed by robust financial performance, with the company reporting consecutive quarters of record revenue and a shift to profitability in the 2025 fiscal year.

The company's ability to rapidly scale and innovate has been key. "Our highly advanced, vertically-integrated platform enabled the creation of truly premium, best-in-class products for Québec’s newly launched vape category," stated Nicholas Sosiak, Chief Financial Officer. "We are pleased to see strong reception to the launch of our first-ever rosin vape cartridge offerings, alongside our already nationally leading premium live resin vapes."

A Governance Overhaul Amidst Growth

As Cannara celebrates its market success, it is also undertaking significant housekeeping to mature its corporate governance. The company announced it had cancelled and re-issued 544,600 stock options on December 31, 2025, to correct what it termed an "administrative oversight."

The original grants, issued in late 2025, inadvertently caused the company to exceed the limits permitted under its equity compensation plans. The re-issuance was designed to rectify the error without changing the economic terms for the recipients, which include 515,000 options held by company directors and officers. According to the company, the move did not result in any net increase of stock options outstanding.

In a related move, Cannara is seeking shareholder approval to convert its Stock Option Plan and Restricted Share Unit (RSU) Plan from "rolling" plans to "fixed" security-based plans. This change is significant for investors. Rolling plans typically allow a company to issue options up to a percentage of its total outstanding shares, meaning the pool of available options can grow as the company issues more equity, creating potential for ongoing dilution. A fixed plan, by contrast, sets a hard cap on the number of shares reserved for compensation, providing shareholders with greater certainty about maximum potential dilution.

The company stated these changes are part of a review to align its policies with "governance practices applicable to senior Canadian stock exchanges." This signals a move towards greater transparency and more conservative compensation practices as the company grows in scale and market influence. Shareholders are scheduled to vote on the proposed amendments at a meeting on January 29, 2026.

Looking Ahead: Capacity, Innovation, and Compliance

Cannara's recent success appears to be built on a scalable foundation. While it recently activated two new grow rooms to increase its annual production capacity, the company is still operating at well below the full potential of its massive cultivation footprint. This leaves significant room to increase output to meet growing demand in Québec and other provinces without immediate, large-scale capital expenditure.

The company's focus on product innovation continues, with plans to launch over 20 new products in the coming year, including new all-in-one vape devices under its popular Tribal and Nugz brands. The successful entry into Québec's vape market serves as a powerful proof of concept for its product development and market-entry capabilities.

Simultaneously, the proposed overhaul of its compensation structure suggests Cannara is preparing for its next phase of corporate life. By tightening its governance and improving transparency, the company appears focused on building long-term investor confidence to match its rapidly growing market power. The board also approved the accelerated vesting of 15,000 RSUs previously granted to the late Jack Kay, a former director, ensuring compliance with its plan following his passing in late 2025. This combination of aggressive market strategy and maturing corporate oversight positions Cannara at a pivotal moment in its history.