GlobeNewswire Inc | Nov 1, 2021 07:00AM EDT

November 01, 2021

VANCOUVER, British Columbia, Nov. 01, 2021 (GLOBE NEWSWIRE) -- Christina Lake Cannabis Corp. (the Company or CLC or Christina Lake Cannabis) (CSE: CLC) (OTCQB: CLCFF) (FRANKFURT: CLB) is pleased to provide a summary overview of financial and operational results for its fiscal Q3 2021 (three and nine months ended August 31, 2021). During this period, the Company had its highest sales quarter since inception with repeat orders coming from key industry buyers and producers of consumer products including vape and edible manufacturers. For a comprehensive overview of the Companys disclosed developments in its fiscal Q3 2021 including the Managements Discussion and Analysis (MD&A) dated October 29, 2021, please access the Companys profile on SEDAR.

All monetary figures in this press release are in Canadian dollars unless specified otherwise.

Primary Highlights for Christina Lake Cannabis in Q3 of Fiscal 2021 (ended Aug. 31, 2021)

-- Gross Revenue increased +495% in Q3 2021 to $1,290,000 compared to $216,738 in Q2 2021; -- General and Administrative Expenses decreased 10.4% in Q3 2021 to $1,666,031 compared to $1,858,867 in Q2 2021; -- Total of $24,808,196 in assets and a net working capital balance (current assets less current liabilities) of $9,556,801; -- Currently engaged in the processing of its stock of dried cannabis biomass into various extracts including distilled and winterized oils, kief, and additional extracted products for sale to other Licensed Producers; -- Sales in the quarter were primarily derived from distillate and kief as production continued to ramp up for both product lines; -- The gross margin percentage for the three-month period was 59% before fair value adjustment. In the comparative period, the Company was not in a revenue-generating position; and -- On October 26, 2021, the Company successfully completed harvesting its second crop which has already proven to be a higher yield than the inaugural crop with better quality biomass through enhanced harvesting techniques.

Joel Dumaresq, Chief Executive Officer and Director of Christina Lake Cannabis commented, This was a productive quarter for the Company as we continued our revenue growth with the support of steady demand for our cannabis extracts. The needs of Licensed Producers have become increasingly sophisticated as product offerings under Cannabis 2.0 are creating greater demand for both medicinal and recreational use cases. Under CLCs commercial sales leadership, weve been able to align a healthy supply of distillate oils and kief with the needs of a diverse base of Licensed Producer accounts across Canada. Now that our 2021 crop has been completely harvested, our second growing season has proven to have a greater yield than the inaugural crop with a higher quality of biomass that can be attributed to advanced harvesting techniques.

Christina Lake Cannabis Fiscal Q3 2021 Financial Summary

Three months ended Nine months endedThree and nine August 31, August 31, August 31, August 31,months period Notes 2021 2020 2021 2020ended, $ $ $ $ Revenue Revenue from 1,290,722 - 1,569,881 - sale of goodsCost of sales (532,428 ) - (623,933 ) - Gross profit beforefair value 758,294 - 945,948 - adjustments Changes infair value of (742,593 ) - (918,074 ) - inventory soldGross profitfrom sale of 15,701 - 27,874 - goods Fair value change ongrowth of biological 5,430,173 3,046,237 5,430,173 3,046,237 asset General andadministrative expensesAccretion 8,9,11 188,880 79,129 382,214 134,989 Consulting 12 122,133 343,973 328,733 450,367 feesCommunication 1,975 - 69,021 - expenseCorporate - - 365,872 - developmentDepreciation 4 77,080 7,166 381,028 14,331 Foreign (4 ) - (451 ) - exchangeInterest 9 182,066 109,189 452,711 176,902 expenseInsurance 21,478 10,088 62,370 30,422 Management 12 36,000 - 108,000 - feesMarketing 1,574 - 403,884 - Nursery 30,156 (73,385 ) 36,864 65,466 expensesOffice and 49,589 50,227 229,784 236,653 miscellaneousProfessional 240,963 106,941 398,095 222,266 feesProperty taxes - - 30,566 25,144 Salaries 12 318,237 145,431 1,037,998 652,711 Share based 12,13 372,531 1,272,522 924,935 1,429,777 compensationRepairs and 17,475 - 35,579 - maintenanceRegulatory 5,898 117,193 84,155 155,205 feesTotal generaland (1,666,031 ) (2,168,474 ) (5,331,358 ) (3,594.233 )administrativeexpenses Other items Accountspayable write - - (38,528 ) 32,817 downFair valuepreferred 13 - - 510,521 - sharesLoss on sale - - 4,900 - of equipmentTotal other - - (476,893 ) - items Net and comprehensiveincome (loss) for the $ (350,204 ) $ (515,179 )period $ 3,779,843 $ 877,763Gain (loss)per share ? $ 0.03 $ 0.01 $ (0.00 ) $ (0.01 )basic anddilutedWeightedaverage numberof common 112,607,372 81,004,447 105,639,215 78,071,770 sharesoutstanding

Notable Business Updates

Attaining Key Benchmark of Tetrahydrocannabinol (THC) Concentration

In a press release dated June 29, 2021, the Company announced that its distillate oils had attained an average THC concentration of 90.4%, a threshold considered to be desirable in the cannabis industry. With high-concentration distillate oils, Licensed Producers can manufacture a wide variety of goods in categories to include food and beverage, personal care, vaping, and medicinal products.

Performance of Experimental Cannabis Strains Under Natural Sunlight

In addition to the Companys seven proven cannabis strains comprising the majority of its 2021 crop, more than 90 experimental strains have also progressed to the outdoor testing phase and performed exceptionally when grown under natural sunlight. The Company intends to incorporate certain experimental strains grown outdoors this year into its strain selection for the 2022 growing season.

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). CLCs 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. CLC cultivates cannabis using strains specifically developed for outdoor cultivation and in its inaugural harvest year produced 32,500 kg (71,650 lb) on its existing facility before developing an adjacent 99-acre expansion property. Such an expansion will ultimately bring CLCs annual cultivation footprint to over 4.35 million square feet, which could enable at least 150,000 kg (330,693 lb) of low-cost, high-quality, sun-grown cannabis to be produced annually by the Company.

On behalf of Christina Lake Cannabis Corp.:

Joel Dumaresq

Joel Dumaresq, CEO and Director

For more information about CLC, please visit: www.christinalakecannabis.com

Jamie FrawleyInvestor Relations and Media Inquiriesjamie@clcannabis.com416-268-9432

THE CANADIAN SECURITIES EXCHANGE (CSE) HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ACCURACY OR ADEQUACY OF THIS RELEASE, NOR HAS OR DOES THE CSES REGULATION SERVICES PROVIDER.

Forward-Looking Information: This news release includes certain statements that may be deemed forward-looking statements. The use of any of the words anticipate, continue, estimate, expect, may, will, would, project, should, believe and similar expressions are intended to identify forward-looking statements. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. These statements speak only as of the date of this News Release. Actual results could differ materially from those currently anticipated due to a number of factors and risks including various risk factors discussed in the Companys disclosure documents which can be found under the Companys profile on http://www.sedar.com.

Statement Regarding Third-Party Investor Relations Firms

Disclosures relating to investor relations firms retained by Christina Lake Cannabis Corp. can be found under the Company's profile on http://sedar.com.