Christina Lake Cannabis Corp. (the “Company” or “CLC” or “Christina Lake Cannabis”) (CSE: CLC) (OTCQB: CLCFF) (FRANKFURT: CLB) is pleased to announce that it is observing excellent results from the initial harvest of its 2021 growing season. In addition to favourable weather conditions in which CLC’s advanced proprietary genetics have performed especially well, these results can also be attributed to the implementation of optimized harvesting and trimming techniques coordinated under the leadership of the Company’s Master Growers, who have more than 25 years of experience in cultivating cannabis in southeastern British Columbia. These optimized techniques seek to improve process efficiency, reduce operational costs, and increase tetrahydrocannabinol (“THC”) concentration of finished product.
Additionally, by using a new material separation method, Christina Lake Cannabis will be able to enter additional market segments by adding pre-rolled products, kief, premium hashish (commonly referred to as “hash”), and rosin concentrates. Furthermore, the Company has implemented new industrial-grade trimming and destemming equipment with the ability to process up to 2,250 lbs (wet)/450 lbs (dry) and 2,400 lbs (wet)/480 lbs (dry) per hour, respectively. By enhancing its ability to reduce raw biomass (i.e., removing leaves, stems, and other components of cannabis plants not used in processing), the Company expects to realize significant cost efficiencies in producing extracted material and distillate for licensed customers and producers.
As of this writing, Christina Lake Cannabis’ Master Growers have identified the 2021 crop as being more robust than the crop from the previous growing season, with many plants currently exceeding ten feet in height. This performance is expected to surpass that of last year based on climate forecasts for the rest of the growing season, which currently suggest that the optimal conditions will prevail through the balance of the harvest season. More than 90 “experimental” proprietary cannabis strains, which are continuing to perform exceptionally well as detailed in the Company’s July 14, 2021 press release, are being cultivated alongside the seven “proven” strains that comprise the majority of this year’s crop. Several “experimental” strains that have demonstrated a strong natural resistance to mold and pests as well as above-average THC levels, are currently contenders for addition to the Company’s grow profile for its 2022 growing season. This approach to curating proprietary strains of cannabis continues to provide a unique competitive advantage to the Company, which can utilize its ample acreage to conduct extensive research and development to maximize its per-gram THC yield.
Christina Lake Cannabis expects to complete harvesting this year’s crop by the end of October 2021, and intends to begin sales initiatives for its new product ranges in Q4 2021 to complement its existing offerings, for which the Company has already established a strong sales pipeline. CLC is continuing to fulfill orders from its licensed producer accounts as quarter-over-quarter sales continue to grow.
Additional information on sales can be expected in the Company’s soon-to-be-released Q2 2021 quarterly financial statements.
Joel Dumaresq, Chief Executive Officer and Director of Christina Lake Cannabis commented, “As we begin to wrap up our second growing season, we’ve picked up many valuable insights with respect to operating efficiently and ensuring a consistently high-quality output of finished product. With the significant investment we’ve made into our new industrial-grade trimming and destemming machinery, coupled with the more than 100 ‘proven’ and proprietary ‘experimental’ strains with impressive THC yields, we are well-positioned to enter new segments of the cannabis market to further expand our sales pipeline.”
In addition to the above operations update, and in recognition of the progress the Company has made this year in growing sales, it has granted the President of CLC 1,000,000 restricted share units (“RSUs”) under the Company’s shareholder-approved restricted share unit plan (the “RSU Plan“). An allocation of 250,000 of the RSUs vest immediately upon issuance, with the balance to vest in three increments of 250,000 over 18 months. The RSUs entitle the holder to acquire one common share (a “Share”) of the Company underlying each such RSU by delivering a notice of acquisition to the Company in accordance with the RSU Plan. In accordance with the RSU Plan, the RSUs were priced at $0.37 based on the closing price of the Shares on the Canadian Securities Exchange (“CSE”) on September 29, 2021.
About Christina Lake Cannabis Corp.
Christina Lake Cannabis Corp. is a licensed producer of cannabis under the Cannabis Act. It has secured a standard cultivation licence and corresponding processing/sales amendment from Health Canada (March 2020 and August 2020, respectively) as well as a research and development licence (early 2020). CLC’s facility consists of a 32-acre property, which includes over 950,000 square feet of outdoor grow space, offices, propagation and drying rooms, research facilities, and a facility dedicated to processing and extraction. CLC also owns a 99-acre plot of land adjoining its principal 32-acre site, which enables the Company to grow at a much larger scale. For more information about CLC, please visit: www.christinalakecannabis.com