Note 9. Bank indebtedness

Aphria Inc., a subsidiary of the Company, has an operating line of credit in the amount of C$1,000, which bears interest at the lender’s prime rate plus 75 basis points. As of August 31, 2026, the Company has not drawn on this line of credit. The operating line of credit is secured by a security interest on certain real property located at 265 Talbot St. West, Leamington, Ontario.

CC Pharma GmbH, a subsidiary of the Company, has two operating lines of credit in the amounts of €7,000 and €500. These lines bear interest at Euro Short-Term Rate (“ESTR”) plus 2.50% and Euro Interbank Offered Rate (“EURIBOR”) plus 4.00%, respectively. As of August 31, 2026, a total of €7,490 ($8,688) was drawn down from the total available credit of €7,500. The operating line of credit for €7,000 is secured by an interest in the inventory of CC Pharma GmbH as well as the Densborn, Germany production facility and underlying real property. The operating line of credit for €500 is unsecured.

On  July 24, 2026, American Beverage Crafts Group Inc. (“ABC Group”), a wholly-owned subsidiary of the Company, entered into a Sixth Amendment to Credit Agreement (the “Sixth Amendment”) with Bank of America, N.A., in its capacity as Administrative Agent, and certain other guarantors and lenders which are a party thereto. Specifically, the Sixth Amendment amends the Credit Agreement dated June 30, 2023 and, among other things, reflects revisions to the Company's credit facilities, including a reduction in the revolving commitments from $25,000 to $15,000 and modifications to certain financial covenants. As of  August 31, 2026, the Company has drawn $nil on the revolving line of credit under the ABC Group Credit Agreement.

See Note 26 (Subsequent events) for additional details after the period, with respect to the Seventh Amendment. As a result of this, the Company does not have the ability to draw on the revolving line of credit of $15,000 until covenant tests are once again tested.