Atrium Research

Investor Summary

Atrium Research is a Toronto-based independent equity research firm that specializes in producing company-sponsored research on underfollowed small- and mid-cap public companies. Its core business model involves being paid by listed companies to create institutional-quality research reports, valuation models, and investor-focused content, which are then distributed through financial data platforms and investor networks. The firm positions itself as a bridge between emerging companies seeking visibility and investors looking for new opportunities, particularly in segments where traditional sell-side coverage has declined.

Fund Strategy

Atrium Research’s fund philosophy is built around the idea that the greatest inefficiencies in public markets exist within underfollowed small- and mid-cap companies, where limited analyst coverage creates mispriced opportunities. The strategy focuses on concentrated, high-conviction investments driven by deep fundamental research, combining quantitative valuation work with qualitative assessments such as management credibility, strategic positioning, and scalability of the business model. Capital is allocated with a long-term horizon, typically 3–5 years, allowing time for the market to recognize intrinsic value.

ANNUALIZED SINCE INCEPTION	QUARTERLY	YTD
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Executive Summary

Atrium Research maintains a BUY rating and $3.00 target price on Cannara Biotech following Q3 2026 results that exceeded estimates with revenue of $31.8M (+16% YoY) and Adjusted EBITDA of $8.5M (+11% YoY). The company rebounded from seasonally soft Q2 performance while maintaining 42% gross margins above management's 40% target. National retail market share held at 4.4% with continued gains in Ontario (3.7% in June) and Alberta (2.9% in June), offsetting modest Quebec share decline. Cannara activated two additional grow zones and entered its first international supply agreement with Curaleaf worth up to $21M, accelerating capacity expansion by roughly one year to reach 75,000kg by end of FY27. The company ended the quarter with $21.8M in cash and $35.3M in debt. Atrium values LOVE at 10.0x FY26E Adjusted EBITDA, noting the stock trades at 6.5x FY26E EBITDA versus large-cap LPs at 6.0x-10.1x despite superior growth and margins. The analyst views the discount as unwarranted given the company's $250M purpose-built Valleyfield facility acquired for $33M, Quebec's lowest-in-Canada electricity costs, and clear path to $300M revenue at full 100,000kg capacity.

Core Thesis

Cannara Biotech is a vertically integrated cannabis producer with significant capacity expansion potential trading at a discount to large-cap peers despite superior growth and margins, with a clear path to 75,000kg annual production capacity by FY27 driven by low-cost Quebec operations and expanding national market share.

Forward Outlook

Atrium Research maintains a BUY rating and $3.00 target price on Cannara Biotech, implying 60% upside. The firm expects FY26 revenue of $121.9M (+14% YoY) and FY27 revenue of $149.5M (+23% YoY), with the acceleration driven by the fast-tracked capacity expansion plan now targeting 75,000kg by end of FY27 versus the original FY28 timeline. The analyst views the Curaleaf international supply agreement and continued market share gains in Ontario and Alberta as validation of the company's operational excellence and growth trajectory.

Date	Letter	Tickers	Keywords	Pitches	Quick Takes
Jul 15 2026	2026 Q2	CURA.TO, LOVE.TO	Cannabis, Capacity Expansion, growth, international, Market share, Quebec	LOVE.TO	Cannara Biotech delivered Q3 results ahead of estimates with revenue up 16% and EBITDA up 11%, maintaining strong margins while expanding market share in Ontario and Alberta. The company secured its first international supply deal with Curaleaf worth up to $21M and accelerated capacity expansion to 75,000kg by FY27. Trading at 6.5x forward EBITDA versus peers at 6-10x despite superior growth, the stock offers 60% upside to Atrium's $3.00 target.
Jan 5 2026	2025 Q4	ARG.TO, BQE.TO, CAPT.TO, CUU.TO, DNG.TO, DRX.TO, EDG.TO, FCLI.TO, FRG.TO, GIGA.TO, LVG.TO, MSA.TO, MTT.TO, NFLD.TO, NKG.TO, OGO.TO, REG.TO, RIO.TO, SCZ.TO, SPA.TO	Canada, commodities, Copper, Exploration, gold, Mining, Silver, Small-cap	-	Atrium Research's small-cap mining coverage delivered exceptional Q4 performance with 21% quarterly gains and 170% annual returns, significantly outperforming Canadian markets. Broad-based strength across gold, copper, and silver miners was driven by supportive commodity prices and improving small-cap sentiment, with multiple companies advancing toward key development milestones in 2026.

Date

Letter

Tickers

Keywords

Pitches

Quick Takes

Jul 15 2026

2026 Q2

CURA.TO, LOVE.TO

Cannabis, Capacity Expansion, growth, international, Market share, Quebec

LOVE.TO

Cannara Biotech delivered Q3 results ahead of estimates with revenue up 16% and EBITDA up 11%, maintaining strong margins while expanding market share in Ontario and Alberta. The company secured its first international supply deal with Curaleaf worth up to $21M and accelerated capacity expansion to 75,000kg by FY27. Trading at 6.5x forward EBITDA versus peers at 6-10x despite superior growth, the stock offers 60% upside to Atrium's $3.00 target.

Jan 5 2026

2025 Q4

ARG.TO, BQE.TO, CAPT.TO, CUU.TO, DNG.TO, DRX.TO, EDG.TO, FCLI.TO, FRG.TO, GIGA.TO, LVG.TO, MSA.TO, MTT.TO, NFLD.TO, NKG.TO, OGO.TO, REG.TO, RIO.TO, SCZ.TO, SPA.TO

Canada, commodities, Copper, Exploration, gold, Mining, Silver, Small-cap

Atrium Research's small-cap mining coverage delivered exceptional Q4 performance with 21% quarterly gains and 170% annual returns, significantly outperforming Canadian markets. Broad-based strength across gold, copper, and silver miners was driven by supportive commodity prices and improving small-cap sentiment, with multiple companies advancing toward key development milestones in 2026.

QUARTER	THEMES	TAGS
2026 Q2	Cannabis Cannara Biotech reported record Q3 revenue of $31.8M (+16% YoY) and Adjusted EBITDA of $8.5M (+11% YoY), rebounding from seasonally soft Q2. The company maintained 4.4% national retail market share with continued gains in Ontario (3.7% in June) and Alberta (2.9% in June). Cannara activated two additional grow zones and entered its first international supply agreement with Curaleaf worth up to $21M, accelerating its capacity expansion timeline by roughly one year.	Cannabis Cultivation Retail Market Share Capacity Expansion
	Capacity Expansion Cannara activated two additional cultivation zones in Q3, bringing production to 14 of 24 grow zones at its Valleyfield facility. The company expects to activate four more zones by the end of FY27, lifting annual production capacity to 75,000kg and reaching targeted capacity roughly a year ahead of the original FY28 timeline. This expansion is supported by both domestic demand growth and the new Curaleaf international supply agreement.	Production Capacity Valleyfield Growth Infrastructure
	Market Share Cannara maintained 4.4% national retail market share in Q3, with Quebec leadership at 14.1%. The company achieved continued out-of-province gains with Ontario reaching 3.7% in June and Alberta hitting a record 2.9% in June. Product distribution exceeded 49,000 points nationally, representing 3.3% of total cannabis product retail listings, demonstrating continued outperformance relative to product listings.	Retail Distribution Quebec Ontario Alberta
2025 Q4	Gold Gold miners delivered exceptional performance with multiple companies posting gains exceeding 100% during the quarter. Strong gold prices supported revenue growth and cash flow generation across the coverage universe, with companies like Santacruz Silver up 988% and Andean Precious Metals up 708% over the year.	Gold Miners Precious Metals Mining
	Copper Copper-focused companies led quarterly performance with Copper Fox Metals up 127% in Q4. Strong copper price trends and technical progress at major projects like Schaft Creek supported positive momentum across copper miners and developers in the coverage universe.	Copper Base Metals Mining
	Silver Silver miners showed strong performance with companies like Capitan Silver up 613% over the year. High-grade silver discoveries and expanding resources at projects like Cruz de Plata demonstrated the potential for significant value creation in the silver space.	Silver Precious Metals Mining
	Lithium Full Circle Lithium emerged as a new coverage addition with its proprietary FCL-X fire suppression technology for lithium-ion batteries. The company is building strong sales channels across multiple end markets with expectations for rapid sales scaling from $0.9M to $7.8M by FY27E.	Lithium Battery Technology Fire Safety
	Small Caps Small-cap sentiment improved significantly during Q4/25, with the TSXV gaining 45% during the quarter and 61% year-over-year. The coverage universe materially outperformed broader indices, with covered stocks up 170% over the past year versus 28% for the TSX.	Small Cap TSXV Performance

QUARTER

THEMES

Cannabis

Cannara Biotech reported record Q3 revenue of $31.8M (+16% YoY) and Adjusted EBITDA of $8.5M (+11% YoY), rebounding from seasonally soft Q2. The company maintained 4.4% national retail market share with continued gains in Ontario (3.7% in June) and Alberta (2.9% in June). Cannara activated two additional grow zones and entered its first international supply agreement with Curaleaf worth up to $21M, accelerating its capacity expansion timeline by roughly one year.

Cannabis Cultivation Retail Market Share Capacity Expansion

Capacity Expansion

Cannara activated two additional cultivation zones in Q3, bringing production to 14 of 24 grow zones at its Valleyfield facility. The company expects to activate four more zones by the end of FY27, lifting annual production capacity to 75,000kg and reaching targeted capacity roughly a year ahead of the original FY28 timeline. This expansion is supported by both domestic demand growth and the new Curaleaf international supply agreement.

Production Capacity Valleyfield Growth Infrastructure

Market Share

Cannara maintained 4.4% national retail market share in Q3, with Quebec leadership at 14.1%. The company achieved continued out-of-province gains with Ontario reaching 3.7% in June and Alberta hitting a record 2.9% in June. Product distribution exceeded 49,000 points nationally, representing 3.3% of total cannabis product retail listings, demonstrating continued outperformance relative to product listings.

Retail Distribution Quebec Ontario Alberta

2025 Q4

Gold

Gold miners delivered exceptional performance with multiple companies posting gains exceeding 100% during the quarter. Strong gold prices supported revenue growth and cash flow generation across the coverage universe, with companies like Santacruz Silver up 988% and Andean Precious Metals up 708% over the year.

Gold Miners Precious Metals Mining

Copper

Copper-focused companies led quarterly performance with Copper Fox Metals up 127% in Q4. Strong copper price trends and technical progress at major projects like Schaft Creek supported positive momentum across copper miners and developers in the coverage universe.

Copper Base Metals Mining

Silver

Silver miners showed strong performance with companies like Capitan Silver up 613% over the year. High-grade silver discoveries and expanding resources at projects like Cruz de Plata demonstrated the potential for significant value creation in the silver space.

Silver Precious Metals Mining

Lithium

Full Circle Lithium emerged as a new coverage addition with its proprietary FCL-X fire suppression technology for lithium-ion batteries. The company is building strong sales channels across multiple end markets with expectations for rapid sales scaling from $0.9M to $7.8M by FY27E.

Lithium Battery Technology Fire Safety

Small Caps

Small-cap sentiment improved significantly during Q4/25, with the TSXV gaining 45% during the quarter and 61% year-over-year. The coverage universe materially outperformed broader indices, with covered stocks up 170% over the past year versus 28% for the TSX.

Small Cap TSXV Performance

Date	Pitch Type	Author	Ticker	Company	Industry	Sub Industry	Bull / Bear	Exchange	Keywords	Action
Jul 15, 2026	Fund Letters	Atrium Research	LOVE.TO	Cannara Biotech Inc.	Drug Manufacturers - Specialty & Generic	Agricultural Products	Bull	-	Agricultural Products, Canadian, Cannabis, capacity expansion, consumer staples, Cultivation, Equity, growth, International Supply Agreement, market share expansion, product innovation, Quebec, valuation discount, vertically integrated	Login

Date

Pitch Type

Author

Ticker

Company

Industry

Sub Industry

Bull / Bear

Exchange

Keywords

Action

Jul 15, 2026

Fund Letters

Atrium Research

LOVE.TO

Cannara Biotech Inc.

Drug Manufacturers - Specialty & Generic

Agricultural Products

Bull

Agricultural Products, Canadian, Cannabis, capacity expansion, consumer staples, Cultivation, Equity, growth, International Supply Agreement, market share expansion, product innovation, Quebec, valuation discount, vertically integrated

TICKER	COMMENTARY
LOVE.TO	This morning, Cannara Biotech Inc. (LOVE:TSX, LOVFF:OTCQX, FRA:8CB0) reported its Q3/26 earnings that came in ahead of our estimates, with revenue of $31.8M (+16% YoY) and Adjusted EBITDA of $8.5M (+11% YoY). The quarter marked a rebound from the seasonally soft Q2, as the Company posted record gross cannabis revenue, maintained strong margins, and continued to expand national distribution while accelerating its Valleyfield expansion. We are maintaining our BUY rating and $3.00/share target price on LOVE. Q3/26 revenue came in at $31.8M (+16% YoY), above our estimate of $31.2M and consensus of $31.2M (as per Capital IQ). Gross revenue rose 16% YoY to a record $44.1M, driven by deeper penetration in existing markets, product innovation, and expanded product formats. Estimated national retail market share was 4.4% in Q3/26 (flat QoQ, +50 bps YoY), with Quebec market share of 14.1% (vs. 14.3% in Q2/26). Cannara maintained its leadership position in Quebec, while Ontario rose to 3.5% (3.7% in June) and Alberta reached a record 2.9% in June. Gross margin for the quarter was 42%, above our 41% estimate and management's >40% target, though down from 44% in Q3/25 on product mix. Adjusted EBITDA for Q3 came in at $8.5M (27% margin), up 11% YoY vs. our estimate of $7.1M and $7.6M in Q3/25. Net income for the quarter was $4.8M (+17% YoY) vs. our estimate of $3.4M; basic EPS was $0.05 (flat YoY) vs. our $0.03 estimate. Cannara ended the quarter with $21.8M in cash and drew $2.0M on its $10.0M credit facility. LOVE trades at 6.5x/5.3x FY26E/FY27E EBITDA compared to large-cap LPs at 6.0x/10.1x and small-cap LPs at 4.6x/3.0x. We continue to see a discount to large-cap LPs that is not warranted given LOVE's growth, margins, and balance sheet, and we note that Canopy's acquisition of MTL Cannabis implied 11.6x LTM EBITDA, supporting meaningful re-rating potential. Our target price remains unchanged at $3.00/share, based on 10.0x FY26E Adjusted EBITDA.
CURA.TO	Yesterday, Cannara announced its first long-term international supply commitment, a bulk cannabis flower agreement with Curaleaf (CURA:TSX, $3.2B mkt cap) for international markets. If fully realized, the agreement carries a potential aggregate value of up to $21.0M over its term based on committed supply volumes and commences at the beginning of August. Curaleaf will also support Cannara's pursuit of EU-GMP certification at Valleyfield, and in the interim, all flower supplied under the agreement will be dried and processed under EU-GMP conditions at Curaleaf's certified Canadian facility. Curaleaf serves markets including Europe, the UK, and Australasia. The fact that CURA is coming down market to work with a small-cap speaks to the quality of LOVE's assets, product, and operational excellence. On the Curaleaf agreement, because the flower is sold in bulk (avoiding drying, trimming, and packaging costs) and the lack of excise taxes, management expects margins similar to or better than domestic. Curaleaf wants more volume than committed, but Cannara is prioritizing Canada at the moment.

TICKER

COMMENTARY

LOVE.TO

This morning, Cannara Biotech Inc. (LOVE:TSX, LOVFF:OTCQX, FRA:8CB0) reported its Q3/26 earnings that came in ahead of our estimates, with revenue of $31.8M (+16% YoY) and Adjusted EBITDA of $8.5M (+11% YoY). The quarter marked a rebound from the seasonally soft Q2, as the Company posted record gross cannabis revenue, maintained strong margins, and continued to expand national distribution while accelerating its Valleyfield expansion. We are maintaining our BUY rating and $3.00/share target price on LOVE. Q3/26 revenue came in at $31.8M (+16% YoY), above our estimate of $31.2M and consensus of $31.2M (as per Capital IQ). Gross revenue rose 16% YoY to a record $44.1M, driven by deeper penetration in existing markets, product innovation, and expanded product formats. Estimated national retail market share was 4.4% in Q3/26 (flat QoQ, +50 bps YoY), with Quebec market share of 14.1% (vs. 14.3% in Q2/26). Cannara maintained its leadership position in Quebec, while Ontario rose to 3.5% (3.7% in June) and Alberta reached a record 2.9% in June. Gross margin for the quarter was 42%, above our 41% estimate and management's >40% target, though down from 44% in Q3/25 on product mix. Adjusted EBITDA for Q3 came in at $8.5M (27% margin), up 11% YoY vs. our estimate of $7.1M and $7.6M in Q3/25. Net income for the quarter was $4.8M (+17% YoY) vs. our estimate of $3.4M; basic EPS was $0.05 (flat YoY) vs. our $0.03 estimate. Cannara ended the quarter with $21.8M in cash and drew $2.0M on its $10.0M credit facility. LOVE trades at 6.5x/5.3x FY26E/FY27E EBITDA compared to large-cap LPs at 6.0x/10.1x and small-cap LPs at 4.6x/3.0x. We continue to see a discount to large-cap LPs that is not warranted given LOVE's growth, margins, and balance sheet, and we note that Canopy's acquisition of MTL Cannabis implied 11.6x LTM EBITDA, supporting meaningful re-rating potential. Our target price remains unchanged at $3.00/share, based on 10.0x FY26E Adjusted EBITDA.

CURA.TO

Yesterday, Cannara announced its first long-term international supply commitment, a bulk cannabis flower agreement with Curaleaf (CURA:TSX, $3.2B mkt cap) for international markets. If fully realized, the agreement carries a potential aggregate value of up to $21.0M over its term based on committed supply volumes and commences at the beginning of August. Curaleaf will also support Cannara's pursuit of EU-GMP certification at Valleyfield, and in the interim, all flower supplied under the agreement will be dried and processed under EU-GMP conditions at Curaleaf's certified Canadian facility. Curaleaf serves markets including Europe, the UK, and Australasia. The fact that CURA is coming down market to work with a small-cap speaks to the quality of LOVE's assets, product, and operational excellence. On the Curaleaf agreement, because the flower is sold in bulk (avoiding drying, trimming, and packaging costs) and the lack of excise taxes, management expects margins similar to or better than domestic. Curaleaf wants more volume than committed, but Cannara is prioritizing Canada at the moment.

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Atrium Research

Investment Summary

Investor Summary

Fund Strategy

FUND PERFORMANCE AS OF 30th June 2026

Investor Letters

Latest Executive Summary:

Executive Summary

Core Thesis

Forward Outlook

Investment Themes

Cannabis

Capacity Expansion

Market Share

Gold

Copper

Silver

Lithium

Small Caps

Investor Pitches

Current Portfolio as of ( 30th June 2026 )

Key Risks identified by Manager:

Key catalysts include:

Portfolio Implications

Ticker Commentary

Top Holdings

Recent Buys (13F)

Recent Sells (13F)

13F Sector Summary

Portfolio Distribution

Latest 13D & 13G Filings

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