VANCOUVER, British Columbia, Aug. 21, 2026 (GLOBE NEWSWIRE) — Christina Lake Cannabis Corp. (the “Company” or “CLC” or “Christina Lake Cannabis”) (CSE: CLC) (OTCQB: CLCFF) (FRANKFURT: CLB) announces that it has entered into a non-binding letter of intent dated August 20, 2026 (the “LOI”) with a private Alberta corporation (the “Purchaser”), to engage in due diligence and negotiations regarding the terms of a proposed transaction (the “Proposed Transaction”) whereby the Purchaser would acquire all of the issued and outstanding common shares (the “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 (the “Definitive Agreement”), although the Company currently expects that the Proposed Transaction would be carried out by way of a court-approved plan of arrangement.
The Company’s Board of Directors (the “Board”), after an extensive period of negotiation and consideration of various alternatives, has approved entry into the LOI, pursuant to which the Purchaser proposes to acquire all of the issued and outstanding Shares of the Company. The LOI contemplates an aggregate transaction value of $15,000,000 for 100% of the equity of the Company on a fully-diluted, cash-free, debt-free basis (the “Transaction Value”). The Transaction Value is not a per-Share purchase price. The cash consideration payable to shareholders would be the amount by which the Transaction Value exceeds the aggregate of all outstanding debt of the Company (including convertible debentures) and transaction expenses, distributed on a pro rata basis among shareholders. Accordingly, the per-Share consideration cannot be determined at this time and will be calculated and disclosed in the Circular (as defined below) prior to the Special Meeting. Prior to closing of the Proposed Transaction, the Company would also be required to retire all existing debt facilities and convertible debentures. The LOI is non-binding and there can be no assurance that the Proposed Transaction contemplated by the LOI, or any other transaction, will be completed. Closing is subject to a number of conditions and uncertainties described below.
