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Christina Lake Completes Third Tranche of Non-Brokered Private Placement for Secured Convertible Notes

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Christina Lake Cannabis Closes Third Tranche of Non-Brokered Private Placement

Christina Lake Cannabis Corp. (CLC) has successfully completed the third and final tranche of its non-brokered private placement of secured convertible promissory notes. The offering, which raised CDN$294,000, will be used for repayment of outstanding debentures, working capital, and general corporate purposes. All securities issued as part of the offering are subject to a statutory hold period of four months and one day. The total gross proceeds from all three tranches of the private placement amount to $4,238,000.

Insider Participation and MI 61-101 Disclosure

Insiders of CLC participated in the third tranche of the offering, contributing a total of $298,000. This participation is considered a "related-party transaction" under Multilateral Instrument 61-101. The company has relied on exemptions from formal valuation and minority shareholder approval requirements, as the fair market value of the notes acquired by the insiders does not exceed $2,500,000. The participation of related parties was settled shortly before the closing of the first tranche, prompting the company to expedite the closing process.

About Christina Lake Cannabis Corp.

Christina Lake Cannabis is a licensed producer of cannabis under the Cannabis Act, with a focus on creating high-quality extracts and distillates. The company's facility includes over 950,000 square feet of outdoor grow space, research facilities, and a processing and extraction facility. CLC owns a 99-acre plot of land adjacent to its principal site. With a standard cultivation license and research and development license from Health Canada, CLC is committed to enhancing extraction quality through outdoor cultivation. In conclusion, the completion of the non-brokered private placement by Christina Lake Cannabis Corp. marks another milestone in the company's growth and expansion plans. The funds raised will support the company's operations, including the repayment of outstanding debentures, and position CLC for continued success in the cannabis industry.

Implications of Christina Lake Cannabis' Successful Private Placement

The successful completion of the third tranche of the non-brokered private placement by Christina Lake Cannabis Corp. (CLC) provides a significant lesson for new businesses in the cannabis industry, and beyond. This strategic financial move, which raised CDN$294,000, demonstrates the potential of private placements as a viable funding option for businesses seeking to raise capital without going public.

Private Placements: A Strategic Move

Private placements allow companies to raise funds without the regulatory scrutiny and costs associated with public offerings. For new businesses, this could mean faster access to capital, and an opportunity to establish a solid financial foundation for growth and expansion.

Insider Participation: A Vote of Confidence

The participation of insiders in CLC's offering not only contributed to the funds raised but also serves as a strong vote of confidence in the company's direction and potential. This could enhance the company's reputation among potential investors and partners, further strengthening its market position.
Investing in Growth and Expansion
CLC's decision to use the funds raised for repayment of outstanding debentures, working capital, and general corporate purposes underscores the importance of financial management in supporting business growth. This could inspire new businesses to consider similar strategies to secure their financial future. In conclusion, CLC's successful private placement offers valuable insights for new businesses. It highlights the potential of private placements as a funding strategy, the importance of insider participation, and the need for strategic financial management to support business growth and expansion.
Story First Published at: https://financialpost.com/globe-newswire/christina-lake-closes-third-tranche-of-non-brokered-private-placement-of-secured-convertible-notes
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