Christina Lake Cannabis said it has completed the acquisition of certain assets from a private British Columbia corporation. The previously announced transaction includes acquiring ownership of outdoor cultivation facilities in Midway, British Columbia, related harvesting and manufacturing equipment, and approximately 19,000 kg. of biomass for a total purchase price of CA$3 million.
“This acquisition will solidify our position as a key supplier to the country’s top brands,” said Mark Aiken, Chief Executive Officer of Christina Lake Cannabis. “We are expanding our growing capability to meet rising customer demand. The increased capacity is a catalyst for robust topline growth and improved profitability by harnessing economies of scale. As the demand for our products has continued to grow over the last 2 years, we have had to supplement our own cultivation with tens of thousands of kilos of biomass supply from the wholesale market. The Midway acquisition secures our supply chain providing CLC with cost certainty and solid control over input quality.”
The Midway property represents a total of 342 acres, with slightly over 100 acres of licensed cultivation space. With this acquisition, CLC will expand its total licensed outdoor cultivation footprint to over 120 acres. Potential further expansion of additional acreage is available and could be licensed by the company should the demand arise.
“Over the last 18 months CLC has focused on operational efficiencies and investment in their processing infrastructure,” said Jay McMillan, Chairman of the Christina Lake Cannabis Board of Directors. “This has resulted in increased productivity and expanded capacity. The investment in the Midway property now aligns CLC’s cultivation and processing capability, positioning the company for future growth.”
The first 80-acre crop of propriety CLC strains will be planted in the spring of 2024 with expansion to the full 100 acres planned for 2025. The company will leverage the strength of their genetic development and outdoor cultivation skills to support the additional growth. CLCs products are leveraged by brands across the Canadian Cannabis market to manufacture vapes, edibles, pre-roll and infused pre-roll products for both the recreational and medical markets.