Christina Lake Cannabis Announces Credit Facility and Lease Agreement

Rhea-AI Summary

Christina Lake Cannabis (OTCQB: CLCFF; CSE: CLC) announced a related‑party secured revolving credit facility and an equipment lease with an entity controlled by director Mervin Boychuk on Oct 20, 2025.

The Facility provides up to $1,500,000, has a two‑year term, bears 15% annual interest, is repayable on demand with 30 days’ notice, is non‑convertible, and is secured by a second mortgage on 775 Highway 395, Christina Lake and a general security agreement.

The Lease Agreement runs 18 months at $4,683.39/month plus GST with a post‑term purchase option. The company relies on MI 61‑101 exemptions for related‑party relief.

VANCOUVER, British Columbia, Oct. 20, 2025 (GLOBE NEWSWIRE) -- Christina Lake Cannabis Corp. (the “Company” or “CLC” or “Christina Lake Cannabis”) (CSE: CLC) (OTCQB: CLCFF) (FRANKFURT: CLB) announces that it has entered into a secured credit facility with an entity controlled by Mervin Boychuk, a director of the Company (the "Lender"). Under the Facility (defined below), the Lender has agreed to make available to the Company a revolving line of credit of up to $1,500,000 (the "Facility"). The Facility has a term of two (2) years from the date of the agreement, bears interest at a rate of 15% per annum on outstanding amounts, and is repayable on demand by the Lender with 30 days’ notice by the Lender to the Company. Additionally, the Company may repay the facility at any time prior to the end of the term without penalty. The Facility is secured through a second mortgage on the Company's property at 775 Highway 395, Christina Lake, British Columbia and a general security agreement. The Facility is not convertible into any other securities of the Company.

The Company has also entered into a equipment lease agreement with the Lender for certain equipment (the "Lease Agreement"). The Lease Agreement has a term of 18 months and has a monthly fee of $4,683.39 plus GST. Following the end of the term of the Lease Agreement, the Company has an option to purchase the equipment.

As Mr. Boychuk is a director of the Company and therefore a related party of the Company pursuant to Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions ("MI 61-101"), the Facility and the Lease Agreement constitute a “related party transaction”. The Company is relying on the exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101 pursuant to Sections 5.5(a) and 5.7(1)(a) respectively, as neither the fair market value of the subject matter of, nor the fair market value of the consideration for, the Facility or the Lease Agreement exceeds 25.0% of the Company’s market capitalization.

About Christina Lake Cannabis Corp.

Christina Lake Cannabis is a licensed producer of cannabis under the Cannabis Act with a standard cultivation license and corresponding processing amendment from Health Canada as well as a research and development license. Christina Lake Cannabis’ facilities consist of a 32-acre property, which includes over 950,000 square feet of outdoor grow space, offices, propagation and drying rooms, research facilities, and a facility dedicated to processing and extraction. A 342-acre property which includes approximately 100-acres of licensed outdoor grow space, green houses, and a dry room. Christina Lake Cannabis also owns a 99-acre plot of land adjoining its principal site. CLC focuses its production on creating high quality outdoor flower, extracts and distillate for its B2B client base.

On behalf of Christina Lake Cannabis:

“Mark Aiken”
Mark Aiken, CEO

For more information about CLC, please visit: www.christinalakecannabis.com
Jennifer Smith
Investor Relations and Media Inquiries
investors@clcannabis.com
902-229-7265

THE CANADIAN SECURITIES EXCHANGE (“CSE”) HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ACCURACY OR ADEQUACY OF THIS RELEASE, NOR HAS OR DOES THE CSE’S REGULATION SERVICES PROVIDER.

This News Release includes certain "forward-looking statements" which are not comprised of historical facts. Forward-looking statements include estimates and statements that describe the Company’s future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as “believes”, “anticipates”, “expects”, “estimates”, “may”, “could”, “would”, “will”, “likely”, “probably”, “often”, or “plan”. Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although these statements are based on information currently available to the Company, the Company provides no assurance that actual results will meet management’s expectations. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward looking information in this news release includes, but is not limited to, the repayment of the Facility, the repayment of the Lease Agreement and any options to purchase the applicable equipment, the Company’s objectives, goals or future plans, statements, harvesting results, and estimates of market conditions. Factors that could cause actual results to differ materially from such forward-looking information include future growth potential of the Company, fluctuations in general macroeconomic conditions, fluctuations in securities markets, expectations regarding the size of the future harvests and cashflow generated from such harvests, fluctuations on pricing within cannabis markets, the ability of the Company to successfully achieve its business objectives, inability to obtain adequate insurance to cover risks and hazards and general market conditions. Additional factors and risks including various risk factors discussed in the Company’s disclosure documents which can be found under the Company’s profile on http://www.sedarplus.ca. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected

Although the forward-looking statements contained in this news release are based upon what management of the Company believes, or believed at the time, to be reasonable assumptions, the Company cannot assure shareholders that actual results will be consistent with such forward-looking statements, as there may be other factors that cause results not to be as anticipated, estimated or intended. Readers should not place undue reliance on the forward-looking statements and information contained in this news release. These statements speak only as of the date of this news release. The Company assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.

FAQ

What are the key terms of the Christina Lake Cannabis credit facility (CLCFF) announced Oct 20, 2025?

The facility is a revolving line up to $1,500,000, 2‑year term, 15% per annum interest, repayable on demand with 30 days’ notice, and secured by a second mortgage and general security agreement.

How does the related‑party nature of the CLCFF facility affect Christina Lake Cannabis (CLCFF)?

The facility and lease are with an entity controlled by director Mervin Boychuk, so they are disclosed as related‑party transactions and rely on MI 61‑101 exemptions.

What are the equipment lease terms Christina Lake Cannabis disclosed on Oct 20, 2025 (CLCFF)?

The lease term is 18 months with a monthly fee of $4,683.39 plus GST, and the company has an option to purchase the equipment at the end of the term.

Is the Christina Lake Cannabis credit facility (CLCFF) convertible into company securities?

No. The announced facility is explicitly stated as not convertible into any securities of the company.

What security backs the CLCFF credit facility announced Oct 20, 2025?

The facility is secured by a second mortgage on property at 775 Highway 395, Christina Lake, British Columbia, plus a general security agreement.

Can Christina Lake Cannabis repay the $1,500,000 facility early (CLCFF)?

Yes. The company may repay the facility at any time prior to the end of the term without penalty.