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

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VANCOUVER, British Columbia, April 30, 2025 (GLOBE NEWSWIRE) — Christina Lake Cannabis Corp. (the “Company” or “CLC” or “Christina Lake Cannabis”) (CSE: CLC) (OTCQB: CLCFF) (FRANKFURT: CLB) further to the press release dated April 23, 2025, the Company is pleased to announce that it has closed the first tranche (the “First Tranche”) of a non-brokered private placement of units (“Units“), with each Unit consisting of one common share in the capital of the Company (each a “Share”) and one half of one common share purchase warrant (each whole warrant a “Warrant“), in the principal amount of CDN $1,138,910.55 (the “Offering”).

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The Company issued 22,778,211 Units at a price of $0.05 per Unit under the closing of the first tranche, which were in the form of a debt settlement of principal and accrued interest due to the existing convertible debenture holders. No finders’ fees were paid in connection with the first closing of the Offering.

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The Offering is subject to the receipt of all required regulatory approval, including acceptance of the CSE. All securities issued in connection with the Offering will be subject to a hold period of four months and one day from the date of issuance, in accordance with applicable Canadian securities laws. The Company expects to complete additional closing or closing on or prior to May 30, 2025.

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Certain directors and officers of the Company subscribed for an aggregate of 21,524,011 of Units and gross proceeds of $1,076,200.55 under the first tranche of 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
(“MI 61- 101”). 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 Shares to be acquired by the participating directors and officers nor the consideration to be paid by such directors and officers is anticipated to exceed $2,500,000.

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The securities issued under the Offering have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and were not to be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in the United States or in any other jurisdiction in which such offer, solicitation or sale would be unlawful.

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About Christina Lake Cannabis Corp.

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Christina Lake Cannabis is a licensed producer of cannabis under the Cannabis Act with a standard cultivation license and corresponding processing amendment from Health Canada as well as a research and development license. Christina Lake Cannabis’ facilities consist 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. A 342-acre property which includes approximately 100-acres of licensed outdoor grow space, green houses, and a dry room. Christina Lake Cannabis also owns a 99-acre plot of land adjoining its principal site. CLC focuses its production on creating high quality extracts and distillate for its B2B client base with proprietary strains specifically developed for outdoor cultivation to enhance extraction quality.