Christina Lake Cannabis Announces Delay in Filing its 2023 Annual Financial Statements

VANCOUVER, British Columbia, April 03, 2024 (GLOBE NEWSWIRE) -- Christina Lake Cannabis Corp. ("CLC" or the "Company") (CSE: CLC) announced today that it will not be filing its annual financial statements, accompanying management's discussion and analysis and related chief executive officer ("CEO") and chief financial officer ("CFO") certifications for the financial year ended November 30, 2023 (collectively, the "Annual Filings"), within the period prescribed for the filing of such documents under Parts 4, 5 and 6 of National Instrument 51-102 Continuous Disclosure Obligations and pursuant to National Instrument 52-109 Certification of Disclosure in Issuers' Annual and Interim Filings, namely within 120 days of year-end, being March 31, 2024 (the "Filing Deadline").

The delay at CLC is due to the fact that the audit is taking longer than expected, due to the high level of testing, with limited staff resources. As the Company's material item on its balance sheet is inventory and biological assets, and due to the increased production levels of the past year and additional product lines introduced, the costing and inventory allocation is taking longer than originally anticipated. Further the financings completed by the Company in the fourth quarter of the fiscal year and the property acquisition completed earlier in 2024, have also increased the work level required for the audit, which requires additional time to ensure accuracy for the financial statements.

CLC is working closely with its auditor DMCL LLP, and is making every effort to submit the Annual Filings in a timely fashion and expects to file no later than May 31, 2024.

CLC CEO Mark Aiken made the following statement. “We support the provision of extra time to allow auditors to satisfactorily complete the 2023 audit, and ensure that their financial statements are accurate in all respects.” 

The Company is providing this default announcement in accordance with National Policy 12-203 Management Cease Trade Orders ("NP 12-203"). The Company has made an application to the British Columbia Securities Commission, as principal regulator of the Company, a management cease trade order ("MCTO") under NP 12-203 in respect of the default regarding the Annual Filings. The MCTO will prohibit the CEO and the CFO from trading in securities of CLC for so long as the Annual Filings are not filed. The issuance of the MCTO, if issued, does not affect the ability of persons other than the CEO and the CFO of the Company to trade in the Company's securities. The application for the MCTO remains subject to the risk factors described in "Forward Looking Information and Risk Factors" below, including the risk that the MCTO application may not be successful or may not be completed prior to a securities commission issuing a failure-to-file cease trade order against the Company following the Filing Deadline.