Christina Lake Cannabis Secures $1.5 Million Credit Facility

VANCOUVER, British Columbia, Nov. 03, 2026 /CourierPR/ -- Christina Lake Cannabis Corp., a licensed producer of cannabis, has secured a new credit facility to bolster its operations. The company, based in Christina Lake, British Columbia, has entered into a secured credit facility with an entity controlled by Salvatore Milia, a director of the company. This new facility, known as the "New Facility," allows the company to borrow up to $1,500,000.

The New Facility carries an interest rate of 14% per annum on outstanding amounts and is repayable on demand by the lender, with 90 days’ notice. The agreement has a term of two years from the date of the agreement. The company can repay the New 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, and a general security agreement.

According to the press release, the New Facility is not convertible into any other securities of the company. The company has also repaid its previous secured credit facility of up to $1,500,000, which was with an entity controlled by Mr. Boychuk, a director of the company.

The New Facility constitutes a related party transaction as Mr. Milia is a director of the company. The company is relying on the exemptions from the formal valuation and minority shareholder approval requirements of Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions (MI 61-101) pursuant to Sections 5.5(b) and 5.7(1)(b), respectively, as the fair market value of the New Facility does not exceed $2,500,000, and the transaction was approved by at least two-thirds of the independent directors of the company.

Christina Lake Cannabis Corp. operates from 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. Additionally, the company has a 342-acre property that includes approximately 100 acres of licensed outdoor grow space, greenhouses, and a dry room. The company focuses on producing high-quality outdoor flower, extracts, and distillate for its business-to-business (B2B) client base.

The company did not file a material change report more than 21 days before entering into the New Facility, as the details of the facility were not settled until shortly prior to closing and the company wished to complete the transaction on an expedited basis for sound business reasons.