Christina Lake Cannabis Completes Acquisition - Seite 2

The Purchase Price for the acquisition was paid through the issuance of a secured convertible promissory note having a 5-year term (“Note”). The Note is secured by the land and buildings acquired in the Transaction. The Note bears interest at a rate of 10% per annum for year 1, 15% per annum for year 2, and 20% per annum for the remaining 3 years. Repayment of the Note shall be interest only payments paid annually on February 9, 2025 and February 9, 2026, then quarterly interest payments thereafter and $1,000,000 principal repayments on or before each of February 9, 2027, 2028 and 2029 until the remaining principal amount of the Note is satisfied in full. Outstanding principal and unpaid interest from the Note may be convertible into common shares of CLC ("Common Shares") at a conversion price of $0.05 per Common Share during the Term. The Vendor shall have the right to convert the Note at any time, subject to a notice period. Additionally, the Company shall have the right to repay the Note at any time during the Term together with prepayment of any remaining interest payable under the Note. The definitive agreement for the Transaction also provides the Vendor with a right to nominate a member to CLC's board of directors for so long as the conversion of the Note (together with any Common Shares then held by the Vendor) would result in the Vendor holding 10% or more of the Common Shares. No finder’s fee were payable with respect to the Transaction.

A copy of the definitive agreement for the Transaction will be available under the Company's profile on SEDAR+ at www.sedarplus.com.

About Christina Lake Cannabis Corp.

Christina Lake Cannabis is a licensed producer of cannabis under the Cannabis Act. It has secured a standard cultivation license and corresponding processing amendment from Health Canada (March 2020 and August 2020, respectively) as well as a research and development license (early 2020). Christina Lake Cannabis’ 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 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.