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Christina Lake Cannabis provides operations update

(Globe Newswire) Vancouver — Christina Lake Cannabis Corp., 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 to address both the expanded cultivation footprint and growing demand for its products.

The lease agreement is for a term of 36 months beginning on September 1, 2024, 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 lease agreement is between CLC and an entity 50 per cent 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. 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.