Christina Lake Cannabis Corp. announced non-brokered private placement of unsecured convertible debentures on October 18, 2022. The Debenture will mature thirty-six months from the date of issuance and bear interest at the rate of 15% 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, at a price of CAD 0.15 per Common share. 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.

On the same day, the company received CAD 960,000 in its first and second tranche closing including second tranche of CAD 150,000. In connection with the second tranche of the private placement, the Company paid a finder's fee of $9,000(CAD 12,387.33) cash to a qualified party. The company also issued aggregate of 75,000 bonus warrants to the subscriber of the Offering. The subscriber received one half of one Bonus Warrant for each CAD 1 subscribed under the Offering. Each Bonus Warrant is exercisable until December 31, 2024 to acquire one additional Share per Bonus Warrant at an exercise price of CAD 0.20 per share. The Bonus Warrants are subject to an acceleration clause, whereby if the volume weighted average price Common Shares exceeds CAD 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.