Christina Lake Cannabis Corp. (the “Company” or “CLC” or
“Christina Lake Cannabis”) (CSE:CLC) (FRANKFURT: A2QEGJ)
is pleased to announce that after a successful inaugural harvest
from the 2020 growing season which exceeded production targets by
over 44%, it is planning to expand its grow operations in 2021 to
capitalize on the several unique advantages that can be had by
growing cannabis outdoors in Christina Lake, BC. The contemplated
expansion includes the utilization of up to approximately 85 acres
of arable land in addition to the 18 acres on which CLC’s 2020
harvest was grown, as well as timing strategies that could allow
certain strains grown by the Company to be “turned over” twice in a
growing season. The Company’s production methodology, which is
built around using natural methods such as growing with sunlight
and abstaining from the use of pesticides or fungicides, will be
kept the same in any potential expansion of CLC’s growing
activities under the leadership of its master growers who recognize
the importance of growing cannabis naturally.
With approximately CAD $20 million
raised to date, CLC has realized favourable financial outcomes in
its first operating year on account of the exceptionally low fixed
costs of growing cannabis outdoors. In comparison to indoor and
greenhouse cultivation of cannabis, which represent the vast
majority of domestic cannabis production, outdoor growers of
cannabis such as CLC benefit from limited expenses and maximum
utilization of sunlight which is proven to contribute to superior
growth results. As a result, with its current treasury CLC believes
it is well-positioned to carry out an expansion for the 2021
growing season which could further strengthen the Company’s market
position.
In 2018, the Company began to build
out its fully integrated site for growing, drying, processing, and
extracting outdoor-grown cannabis. In 2020, the site became fully
operational with a staff of more than 30 full-time employees and
seasonal personnel. With over 130 acres of land owned by CLC in the
Christina Lake region of British Columbia, the Company used only 18
acres to grow its first crop which yielded 32,500 kg / 71,650 lb of
dried cannabis. The Company benefits from several competitive
advantages to include low overhead costs from growing outdoors, an
excellent climate in which to grow cannabis using natural sunlight,
and seamless integration of agriculture, extraction, and sales
operations. To preserve the integrity of CLC’s crops, natural
methods of pest control (e.g., beetles in the coccinellidae family)
are utilized in place of more common methods such as fungicides or
pesticides.
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/ecdea0a5-8869-4a9a-8d58-37770b44f745
Readers using news aggregation services
may be unable to view the media above. Please access SEDAR or
the Investor Relations section of
the Company’s website for a version of this press release
containing all published media.
Greater detail regarding the Company’s
plans to expand its production activities in 2021 and beyond are
provided below.
Use of Additional
Land: Between its principal 32-acre plot of land and an
adjoining 99-acre plot of land, the Company owns more than 100
acres of arable land on which cannabis can be grown with optimal
properties for cannabis cultivation. CLC also has an option to
purchase an additional 200 acres nearby. Based on usage of just 18
acres for the Company’s 2020 growing season, the use of additional
land could increase CLC’s agricultural footprint by nearly
sixfold.
Grow Timing
Strategy: Based on the Company’s observations of the
performance of certain strains during the 2020 growing season,
CLC’s master growers have determined that plants consisting of
these strains could potentially be “turned over” twice in a given
season by planting slightly earlier and harvesting slightly later.
The Company intends to integrate this strategy as part of its
growing activities in 2021.
With an ample allotment of additional
land on which cannabis can be grown as well as insights from the
performance of CLC’s crops in the 2020 growing season that can
allow for effectively doubled production of certain strains in
future years, the Company believes it possesses several
unparalleled advantages in the cannabis industry. Being fully
funded and debt-free, CLC has the ability to make capital
investments towards its expansion initiatives without the need to
incur debt or raise additional funds through equity financing.
Additionally, the Company is pleased
to announce that as of this week its common shares are trading on
the Frankfurt Stock Exchange (Börse Frankfurt) under the ticker
symbol A2QEGJ, complementing its listing on the
Canadian Securities Exchange under the ticker symbol
CLC.
Joel Dumaresq, CEO and Director of CLC
commented, “I am proud of the results we had in our first year, and
it is inspiring to discover just how significantly we could scale
our operations upward. Aside from the desirable quality of cannabis
grown outdoors, the low overhead costs allow us to operate very
efficiently and expand with only a negligible increase in fixed
expenses. There were many learnings from the 2020 growing season
that we intend to leverage in subsequent years to further increase
our productivity, and we are excited to put those learnings into
action.”
“Although our next growing season is a
matter of months away from now, we are already hard at work
creating our playbook for scaling upward,” said Nicco Dehaan, Chief
Operating Officer of CLC. “With an abundance of land on which we
can grow additional cannabis plants, we intend to utilize some of
this additional capacity to expand our pipeline for 2021, which
could raise our output considerably. Further, a major factor in the
quality of our product is the fact that we do not use pesticides or
fungicides of any kind. I believe we have aligned many favourable
elements in terms of the crops we grow and how efficiently we grow
them, which could position us well to gain additional market share
as we enter our second year of operation.”
About Christina Lake Cannabis
Corp.
Christina Lake Cannabis Corp. is a
licensed producer of cannabis under the Cannabis Act. It has
secured a standard cultivation licence and corresponding
processing/sales amendment from Health Canada (March 2020 and
August 2020, respectively) as well as a research and development
licence (early 2020). CLC’s facility consists 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. CLC also
owns a 99-acre plot of land adjoining its principal 32-acre site,
which enables the Company to grow at a much larger scale. CLC
cultivates cannabis using strains specifically developed for
outdoor cultivation and in its inaugural harvest year produced
32,500 kg (71,650 lb) from its existing facility before developing
an adjacent 99 acre expansion property, which will ultimately bring
its annual cultivation footprint to over 4.35 million square feet
or over 88,000 kg (194,007 lb) of low-cost, high-quality, sun-grown
cannabis.
On behalf of Christina Lake
Cannabis Corp.:
“Joel Dumaresq”
Joel Dumaresq, CEO and Director
For more information about CLC, please
visit: www.christinalakecannabis.com
Jamie FrawleyInvestor
Relationsjamie@clcannabis.com 416-268-9432
Robyn RabinovichMedia
Inquiriesrobyn.rabinovich@hkstrategies.ca 416-413-4775
THE CANADIAN SECURITIES EXCHANGE
(“CSE”) HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE
ACCURACY OR ADEQUACY OF THIS RELEASE.
Forward-Looking Information: This news
release includes certain statements that may be deemed
“forward-looking statements.” The use of any of the words
“anticipate,” “continue,” “estimate,” “expect,” “may,” “will,”
“would,” “project,” “should,” “believe” and similar expressions are
intended to identify forward-looking statements. Although the
Company believes that the expectations and assumptions on which the
forward-looking statements are based are reasonable, undue reliance
should not be placed on the forward-looking statements because the
Company can give no assurance that they will prove to be correct.
Since forward-looking statements address future events and
conditions, by their very nature they involve inherent risks and
uncertainties. These statements speak only as of the date of this
News Release. Actual results could differ materially from those
currently anticipated due to a number of factors and risks
including various risk factors discussed in the Company’s
disclosure documents which can be found under the Company’s profile
on www.sedar.com.
Statement Regarding Third-Party Investor Relations
Firms
Disclosures relating to investor relations firms retained by
Christina Lake Cannabis Corp. can be found under the Company's
profile on http://sedar.com.
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