Christina Lake Cannabis said it intends to complete a non-brokered private placement with gross proceeds of up to $2.5 million.
The first tranche of the offering is expected to close on or about April 30, 2025.
Proceeds from the offering will be used towards construction of a new secured storage facility on premises, equipment purchases, and for general working capital purposes.
The company earlier this completed the acquisition of certain assets including an 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 CAD $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.”
