Christina Lake Cannabis Closes First Tranche of Non-Brokered Private Placement

LOS ANGELES- Christina Lake Cannabis Corp. has completed the first tranche of its non-brokered private placement, issuing 22,778,211 units at a price of CAD $0.05 per unit, totaling approximately CAD $1.14 million. Each unit comprises one common share and one-half of one common share purchase warrant. The proceeds were utilized to settle existing convertible debenture obligations, encompassing both principal and accrued interest .

Notably, company insiders, including directors and officers, subscribed for 21,524,011 units, amounting to CAD $1.08 million of the total raised. This participation is classified as a related-party transaction under Multilateral Instrument 61-101. The company is relying on exemptions from minority shareholder approval and formal valuation requirements, as the fair market value and consideration involved do not exceed CAD $2.5 million .

All securities issued are subject to a hold period of four months and one day, in accordance with Canadian securities laws. The private placement remains subject to regulatory approvals, including acceptance by the Canadian Securities Exchange. Christina Lake Cannabis anticipates completing additional tranches on or before May 30, 2025 .

Christina Lake Cannabis operates as a licensed producer under the Cannabis Act, with facilities encompassing over 950,000 square feet of outdoor cultivation space, processing and extraction facilities, and research and development capabilities. The company focuses on producing cannabis extracts and distillates for its business-to-business clientele, utilizing proprietary strains developed for outdoor cultivation.