Christina Lake Cannabis Corp. (CSE: CLC) (OTCQB: CLCFF) is buying certain assets from a private British Columbia corporation for a total purchase price of C$3 million. The deal will be paid for by the issuance of a secured convertible promissory note that will be secured by the land and buildings acquired in the transaction. The deal is expected to close on February 9, 2024.
The proposed transaction includes acquiring ownership of outdoor cultivation facilities in Southern British Columbia, related harvesting and manufacturing equipment, and approximately 19,000 kg. of biomass. With this acquisition, Christina Lake said in its statement that it will expand its licensed outdoor cultivation footprint by approximately 100 acres. The company also said, “The first crop of propriety CLC strains will be planted in the spring of 2024. Enhancements to the company’s processing infrastructure over the last 12 months ensure that the Company will be able to meet growing customer demand and handle the expanded cultivation capacity.”
Separate from the acquisition notes, Christina Lake said it is also going to complete non-brokered financing with gross proceeds of up to C$2,500,000. The company said it expects to close the initial tranche of the 0ffering on or about February 26, 2024. The proceeds of the offering are expected to be used for upgrades to the equipment and facilities acquired in the acquisition and for new site preparation and development.
In December the company reported that its 2023 harvest yielded more than 37,000 kg of dry outdoor flower and biomass. Christina Lake said at the time, “The flower and biomass are expected to be processed to create multiple product offerings such as flower, kief, hash, and distillate, all of which are highly sought after ingredients that are critical components to the production of finished goods by our customers.”
Christina Lake also said that it was actively processing the 2023 material into multiple product streams.
With exciting new genetics, the Master Growers are busy prepping Mother Plants in anticipation of our 2024 outdoor grow season.
Christina Lake 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.