Christina Lake Closes Non-Brokered Private Placement of Unsecured Convertible Debentures
October 18 2022 - 10:45PM
Christina Lake Cannabis Corp. (the “Company” or “CLC” or
“Christina Lake Cannabis”) (CSE: CLC) (OTCQB: CLCFF) (FRANKFURT:
CLB) is pleased to announce that it has closed the second
tranche of a non-brokered private placement of unsecured
convertible debentures (the “
Debenture”) in the
principal amount of CDN$150,000 (the “
Offering”).
The Company has raised a collective total of $960,000 between the
first and second tranche of the private placement.
The Debenture will mature thirty-six (36) months
from the date of issuance and bear interest at the rate of 15.0%
per annum, with such interest to be accrued on a monthly basis and
paid on a semi-annual basis. Pursuant to the terms of the
Debenture, the subscriber may at any time prior to the Maturity
Date convert the principal amounts of the Debenture and any accrued
but unpaid interest into common shares of the Company
("Common Shares"), at a price of $0.15 per Common
share.
The Debenture (principal and interest) will be
unsecured debt obligations of the Company, and therefore subject to
existing security interests (as applicable) and permitted
encumbrances. The Debenture shall rank pari passu with all other
Debentures, regardless of the date of issuance.
In connection with the issuance of the
Debenture, the Corporation issued an aggregate of 75,000 bonus
warrants (“Bonus Warrants”) to the subscriber of
the Offering. The subscriber received one half of one Bonus Warrant
for each $1 subscribed under the Offering. Each Bonus Warrant is
exercisable until December 31, 2024 to acquire one additional
Common Share per Bonus Warrant at an exercise price of $0.20 per
share. The Bonus Warrants are subject to an acceleration clause,
whereby if the volume weighted average price of CLC's Common Shares
exceeds $0.40 per Common Share for a period of 20 days, the Company
may accelerate the expiry of the Bonus Warrants by providing notice
to the holder.
All securities issued pursuant to the Offering
are subject to a statutory four-month and one day hold period from
the date of issuance pursuant to applicable securities laws of
Canada. In connection with the second tranche of the private
placement, the Company paid a finder’s fee of $9,000 cash to a
qualified party.
Proceeds from the Offering will be used to
finance and repatriate the purchase of processing equipment and
working capital to continue the Company’s ongoing obligations.
Retains LodeRock Advisors for Strategic Investor
Relations
The Company also announces that it has retained
the services of LodeRock Advisors Inc. ("LodeRock") to provide
strategic investor relations and capital markets communication
services to the Company.
LodeRock is a Toronto-based group of senior
capital markets communications executives who develop and execute
communications programs in order to help companies achieve their
capital markets objectives and capture the full potential of their
public listing. Under the terms of the agreement, which will
continue until either party has terminated the agreement upon
ninety (90) days' notice, the Company will pay LodeRock a monthly
fee of $12,000 (plus HST) for ongoing investor relations and
communication services. At the time of this agreement neither
LodeRock, nor its principals, have any direct or indirect interest
in any of the Company’s securities.
About Christina Lake Cannabis
Corp.
Christina Lake Cannabis is a licensed producer
of cannabis under the Cannabis Act. It has secured a standard
cultivation license and corresponding processing amendment from
Health Canada (March 2020 and August 2020, respectively) as well as
a research and development license (early 2020). Christina Lake
Cannabis’ 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. Christina Lake Cannabis
also owns a 99-acre plot of land adjoining its principal site. CLC
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.
On behalf of Christina Lake Cannabis
Corp.:
“Mark Aiken”
Mark Aiken, CEO
For more information about CLC, please visit:
www.christinalakecannabis.com
Jamie FrawleyInvestor Relations and Media
Inquiriesjamie@clcannabis.com 416-268-9432
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 contains statements which
constitute "forward-looking statements", including the anticipated
use of the proceeds of the Offering, statements regarding the
plans, intentions, beliefs and current expectations of the Company
with respect to the future business activities and operating
performance of the Company. The use of any of the words
“anticipate,” “continue,” “estimate,” “expect,” “may,” “will,”
“would,” “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 http://www.sedar.com. 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. The Company does not
intend, and does not assume any obligation, to update these
forward-looking statements except as otherwise required by
applicable law
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