Christina Lake Cannabis said it has entered into a non-binding letter of intent with a private Alberta corporation to reach terms of a proposed transaction to acquire all of the issued and outstanding common shares of the company.
The final structure of the proposed transaction has not been determined and, if the parties agree to proceed, will be set out in a definitive agreement. But Christina Lak said it expects that the proposed deal would be carried out by way of a court-approved plan of arrangement.
The purchaser, who was unnamed in a press release regarding the deal, has proposed an offer with an aggregate transaction value of $15 million.
The deal comes after Christina Lake last year looked to complete a non-brokered private placement with gross proceeds of up to $2.5 million.
It said it intended to use proceeds from the offering for construction of a new secured storage facility on premises, equipment purchases and for general working capital purposes.
Christina Lake Cannabis is a licensed producer of cannabis with a standard cultivation license and corresponding processing amendment from Health Canada as well as a research and development license. Its facilities consist of a 32-acre property, which includes more than 950,000 square feet of outdoor grow space, offices, propagation and drying rooms, research facilities along with a facility dedicated to processing and extraction and a 342-acre property which includes approximately 100 acres of licensed outdoor grow space, green houses and a dry room. CLC focuses its production on creating outdoor flower, extracts and distillate for its B2B client base.
