Christina Lake Cannabis Announces Credit Facility and Lease Agreement

Executive Summary

• Christina Lake Cannabis Corp. entered into a secured revolving credit facility with a director‑controlled lender for up to $1,500,000 at 15% annual interest, maturing in two years and repayable on demand with 30‑day notice.
• The facility is secured by a second mortgage on the Company’s primary property (775 Highway 395, Christina Lake, BC) and a general security agreement; it is non‑convertible and not subject to minority shareholder approval under MI 61‑101.
• Concurrently, the Company signed an 18‑month equipment lease with the same lender at a monthly fee of $4,683.39 plus GST, with an option for the Company to purchase the equipment after the lease term.

Key Details

• Facility Amount: Up to $1,500,000 (revolving line of credit).
• Interest Rate: 15% per annum on outstanding balances.
• Term: 2 years from the agreement date; repayable on demand with 30‑day notice.
• Security: Second mortgage on property at 775 Highway 395, Christina Lake, BC and a general security agreement.
• Conversion Rights: Facility is non‑convertible into any Company securities.

• Related Party Transaction: Lender controlled by Director Mervin Boychuk; transaction exempt from formal valuation and minority approval because it does not exceed 25% of market capitalization.

• Equipment Lease Agreement

• Lease Term: 18 months.
• Monthly Fee: $4,683.39 plus GST.

• Purchase Option: Company may purchase the leased equipment at lease end.

• Use of Proceeds (Implied): Not explicitly disclosed; typical uses include working capital, operational financing, and equipment acquisition for cultivation/processing activities.

Notable Quotes

“On behalf of Christina Lake Cannabis: ‘Mark Aiken’, CEO”

(No additional substantive quotes were provided in the release.)