Christina Lake Cannabis Corp. announced a non-brokered private placement to issue 15% convertible promissory notes for the gross proceeds of CAD 5,000,000 on September 7, 2023. The note bears interest at a rate of 15% per annum over a term of 36 months from the date of closing.

The repayment of the note shall be in the form of interest only payments for the first 15 months and a blended principal and interest payment for the remaining term. Outstanding principal and interest from the notes will be convertible into common shares at a conversion price of CAD 0.06 per common share during the term. The first tranche of the offering is expected to close on or about September 11, 2023, or such other date or dates that the company may determine, subject to the receipt of all required regulatory approval, including acceptance of the CSE.

All securities issued in connection with the offering will be subject to a hold period of four months and one day from the closing date, in accordance with applicable Canadian securities laws. The transaction may include participation from Certain directors and officers for CAD 2,500,000.