Mr. Mark Aiken reports

CHRISTINA LAKE CANNABIS PROVIDES FINANCING ANNOUNCEMENT

Christina Lake Cannabis Corp. has provided details regarding a proposed non-brokered private placement.

The company announces that it intends to complete a non-brokered private placement with gross proceeds of up to $5-million. The company will be issuing convertible promissory notes secured by land and buildings. The note bears interest at a rate of 15 per cent per annum over a term of 36 months. Repayment of the note shall be in the form of interest-only payments for the first 15 months and a blended principal and interest payment for the remaining term. Outstanding principal and interest from the notes will be convertible into common shares at a conversion price of six cents per common share during the term. The company shall also have the right to redeem or repay the notes at any time during the term. The proceeds from the offering are expected to be used for repayment of outstanding debentures, working capital and general corporate purposes. The first tranche of the offering is expected to close on or about Sept. 11, 2023, or such other date or dates that the company may determine, subject to the receipt of all required regulatory approval, including acceptance of the Canadian Securities Exchange. All securities issued in connection with the offering will be subject to a hold period of four months and one day from the closing date in accordance with applicable Canadian securities laws.

Certain directors and officers of the company may acquire notes under the offering. Such participation will be considered to be a related-party transaction as defined under Multilateral Instrument 61-101 (Protection of Minority Security Holders in Special Transactions). The company anticipates relying on exemptions from the minority shareholder approval and formal valuation requirements applicable to the related-party transactions under sections 5.5(b) and 5.7(1)(b), respectively, of MI 61-101, as neither the fair market value of the notes to be acquired by the participating directors and officers, nor the consideration to be paid by such directors and officers is anticipated to exceed $2.5-million.

The company has also entered into an agreement for the purchase of additional processing equipment to fulfill growing demand for its high-quality outdoor flower. Under the agreement, the company will purchase $277,675 (plus HST) worth of equipment, with monthly repayments extending for 36 months, beginning on Oct. 15, 2023. Payments for the first 15 months of the term are interest only, with blended principal and interest payments commencing after Dec. 15, 2024.

About Christina Lake Cannabis Corp.

Christina Lake is a licensed producer of cannabis under the Cannabis Act with a standard cultivation licence and a corresponding processing amendment from Health Canada, as well as a research and development licence. Christina Lake's facility consists of a 32-acre property, which includes over 950,000 square feet of outdoor grow space, offices, propagation and drying rooms, research facilities, and a facility dedicated to processing and extraction. Christina Lake also owns a 99-acre plot of land adjoining its principal site. Christina Lake focuses its production on creating high-quality extracts and distillate for its business-to-business client base with proprietary strains specifically developed for outdoor cultivation to enhance extraction quality.

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