Christina Lake Cannabis Corp. has received its first purchase order for a commercial quantity of distillate oil valued at CAD $129,000 from a Canadian licensed producer whose products are distributed in several provinces (the “Purchaser”). Under the terms of the purchase order, the identity of the Purchaser cannot be publicized for competitive reasons. The distillate oils are to be used for the production of vape formulation, a category in which the Purchaser is an established player. As the Company has now consistently maintained potency levels in the 90% range for the distillate oils it produces, CLC’s management is confident that it could continue supplying to the Purchaser on an ongoing basis, with the opportunity to provide greater quantities as needed.
In the 2020 growing season, Christina Lake Cannabis’ inaugural crop grown naturally under sunlight amounted to nearly double its initial forecasts, with 32,500 kg / 71,650 lb of dried cannabis ultimately harvested. In a press release dated January 13, 2021, the Company announced it was beginning to produce its first ultra-high potency distillate oils, which typically contain tetrahydrocannabinol (“THC”) concentrations of 90% or greater and are used as ingredients in a product formulation as opposed to being used as a standalone cannabis product. In a March 31, 2021 press release, the Company also announced it had nearly tripled its capacity for extraction with the cannabis industry’s first installation of the Vitalis Cosolvent Injection System. This enhancement enables the Company to consistently process more than 250 kg / 551 lb of biomass per day, which is an important consideration in light of CLC’s pivot towards fully integrated production from cultivation to extraction.
As part of the Company’s sales efforts following its inaugural harvest last year, CLC has recently delivered product samples along with corresponding certificates of analysis to prospective buyers who currently have open dialogues with CLC’s experienced sales team. In addition to distillate oils, the Company’s sales team has also been offering winterized oil and kief to prospective buyers.
Christina Lake Cannabis Chief Executive Officer Joel Dumaresq commented, “Distillates are in demand in the Canadian cannabis market because of their versatility. There are possible applications in medicinal products, food and beverage, personal care, vaping, and many other categories. The Purchaser has a broad reach in various cannabis segments to include vaping, for which they are an esteemed player. Through our industry relationships, we were able to come to an agreement with the Purchaser in which they recognized the value in both our product and our fully integrated operations, which can enable them to receive a consistent supply of high quality distillates grown under sunlight using our unique cannabis strains made with proprietary genetics. We look forward to getting feedback from the Purchaser and their end-user clientele, and aspire to form a long-term supplier relationship with them as we begin to build a market position as a supplier of cannabis extracts with complete visibility ‘from soil to oil’ to ensure top-notch quality of our finished product.”
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). For more information about CLC, please visit: www.christinalakecannabis.com
