Christina Lake Cannabis Provides Operations Update

VANCOUVER, British Columbia, March 11, 2024 (GLOBE NEWSWIRE) -- Christina Lake Cannabis Corp. (CSE: CLC) (OTCQB: CLCFF) (FRANKFURT:CLB), (the "Company" or "Christina Lake Cannabis" or "CLC"), a leading producer of high quality extracts and sun grown cannabis, is pleased to announce following its acquisition of outdoor cultivation facilities in Midway, British Columbia, which closed in February 2024, it has entered into a lease agreement to acquire new harvesting equipment (the "Equipment") to address both the expanded cultivation footprint and growing demand for its products (the "Lease Agreement").

The Lease Agreement is for a term of 36 months beginning on September 1, 2024 (the "Term"), following the delivery of the Equipment to the Company. The monthly payment for the Lease Agreement shall be $13,363.11 per month, plus GST, payable on the 1^st of each month, and $4,000 per month plus GST for standby rent for the months of April – August 2024, payable on the 15^th of each month. Should the Company make all payment on time during the first 18 months of the Lease Agreement, the Company shall have the option to purchase the Equipment at any time following month 18 up to the end of the Term (the "Option").

The Lease Agreement is between CLC and an entity 50% owned by a director of the Company. Accordingly, the Lease Agreement may be deemed 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 Lease Agreement is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 (pursuant to subsections 5.5(d) and 5.7(1)(f)) as the Lease Agreement was a lease of repeal property under reasonable commercial terms made in the ordinary course of business and does not contain any voting or equity component. The Company’s independent board of directors reviewed and approved the Lease Agreement.

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.