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Christina Lake Cannabis Announces Delay in Filing its 2024 Annual Financial Statements

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Christina Lake Cannabis (CSE: CLC) has announced a delay in filing its annual financial statements for the year ended February 28, 2025. The company will miss the June 30, 2025 filing deadline due to extended audit requirements and resource constraints.

The delay is primarily attributed to increased testing needs for inventory and biological assets, complicated by higher production levels and new product lines following the Midway acquisition. The company expects to file by July 14, 2025 and has applied for a Management Cease Trade Order (MCTO) that would restrict trading by the CEO and CFO until the filings are complete.

Christina Lake Cannabis (CSE: CLC) ha annunciato un ritardo nella presentazione del bilancio annuale relativo all'esercizio chiuso al 28 febbraio 2025. La società non riuscirà a rispettare la scadenza del 30 giugno 2025 a causa di requisiti di revisione più estesi e limitazioni delle risorse.

Il ritardo è principalmente dovuto a maggiori esigenze di verifica per l'inventario e le attività biologiche, complicate da livelli di produzione più elevati e nuove linee di prodotto conseguenti all'acquisizione di Midway. La società prevede di presentare il bilancio entro il 14 luglio 2025 e ha richiesto un Management Cease Trade Order (MCTO) che limiterà le operazioni di trading del CEO e CFO fino al completamento delle presentazioni.

Christina Lake Cannabis (CSE: CLC) ha anunciado un retraso en la presentación de sus estados financieros anuales correspondientes al año cerrado el 28 de febrero de 2025. La compañía no cumplirá con la fecha límite del 30 de junio de 2025 debido a requerimientos de auditoría extendidos y limitaciones de recursos.

El retraso se atribuye principalmente a mayores necesidades de pruebas para inventarios y activos biológicos, complicadas por niveles de producción más altos y nuevas líneas de productos tras la adquisición de Midway. La empresa espera presentar los estados financieros antes del 14 de julio de 2025 y ha solicitado una Orden de Suspensión de Comercio para la Dirección (MCTO) que restringirá las operaciones de trading del CEO y CFO hasta que se completen las presentaciones.

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Christina Lake Cannabis (CSE : CLC) a annoncé un retard dans le dépôt de ses états financiers annuels pour l'exercice clos le 28 février 2025. La société ne respectera pas la date limite du 30 juin 2025 en raison d'exigences d'audit prolongées et de contraintes de ressources.

Ce retard est principalement dû à des besoins accrus de vérification des stocks et des actifs biologiques, compliqués par des niveaux de production plus élevés et de nouvelles gammes de produits suite à l'acquisition de Midway. La société prévoit de déposer ses états financiers d'ici le 14 juillet 2025 et a demandé une ordonnance de suspension de négociation de la direction (MCTO) qui restreindra les transactions du PDG et du directeur financier jusqu'à la finalisation des dépôts.

Christina Lake Cannabis (CSE: CLC) hat eine Verzögerung bei der Einreichung des Jahresabschlusses für das zum 28. Februar 2025 endende Geschäftsjahr angekündigt. Das Unternehmen wird die Frist zum 30. Juni 2025 aufgrund erhöhter Prüfungsanforderungen und Ressourcenengpässen nicht einhalten können.

Die Verzögerung ist hauptsächlich auf den erhöhten Prüfungsaufwand für Inventar und biologische Vermögenswerte zurückzuführen, der durch höhere Produktionsmengen und neue Produktlinien nach der ²Ñ¾±»å·É²¹²â-ܲú±ð°ù²Ô²¹³ó³¾±ð erschwert wird. Das Unternehmen plant die Einreichung bis zum 14. Juli 2025 und hat einen Management Cease Trade Order (MCTO) beantragt, der den Handel durch den CEO und CFO bis zum Abschluss der Einreichungen einschränkt.

Positive
  • None.
Negative
  • Delay in filing annual financial statements beyond regulatory deadline
  • Management Cease Trade Order (MCTO) application restricting CEO and CFO trading
  • Resource constraints affecting audit completion
  • Increased complexity in financial reporting due to Midway acquisition

VANCOUVER, British Columbia, July 03, 2025 (GLOBE NEWSWIRE) -- Christina Lake Cannabis Corp. ("CLC" or the "Company") (CSE: CLC) announced today that it will not be filing its annual financial statements, accompanying management's discussion and analysis and related chief executive officer ("CEO") and chief financial officer ("CFO") certifications for the financial year ended February 28, 2025 (collectively, the "Annual Filings"), within the period prescribed for the filing of such documents under Parts 4, 5 and 6 of National Instrument 51-102 Continuous Disclosure Obligations and pursuant to National Instrument 52-109 Certification of Disclosure in Issuers' Annual and Interim Filings, namely within 120 days of year-end, being June 30, 2025 (the "Filing Deadline").

The delay at CLC is due to the audit taking longer than expected, primarily because of the high level of testing required and the limited availability of staff resources. The Company's material item on its balance sheet is inventory and biological assets. Given the increased production levels over the past year and the introduction of additional product lines following the Midway acquisition, the process of costing and inventory allocation is taking longer than originally anticipated. Further, the financings completed in connection with the Midway acquisition earlier in 2024 have added to the workload, requiring additional time to ensure accuracy of the financial statements.

CLC is working closely with its auditor DMCL LLP and is making every effort to submit the Annual Filings in a timely fashion and expects to file no later than July 14, 2025, and will issue a news release announcing the completion of such filings at that time.

CLC CEO Mark Aiken stated, "We support the provision of extra time to allow auditors to satisfactorily complete the 2024 audit and ensure that the financial statements are accurate in all respects."

The Company is providing this default announcement in accordance with National Policy 12-203 Management Cease Trade Orders ("NP 12-203"). The Company has made an application to the British Columbia Securities Commission, as principal regulator of the Company, a management cease trade order ("MCTO") under NP 12-203 in respect of the default regarding the Annual Filings. The MCTO will prohibit the CEO and the CFO from trading in securities of CLC for so long as the Annual Filings are not filed. The issuance of the MCTO, if issued, does not affect the ability of persons other than the CEO and the CFO of the Company to trade in the Company's securities. The application for the MCTO remains subject to the risk factors described in "Forward Looking Information and Risk Factors" below, including the risk that the MCTO application may not be successful or may not be completed prior to a securities commission issuing a failure-to-file cease trade order against the Company following the Filing Deadline.

The Company confirms that it intends to satisfy the provisions of the alternative information guidelines found at sections 9 and 10 of NP 12-203 respecting Cease Trade Orders for Continuous Disclosure Defaults for so long as it remains in default as a result of the late filing of the Annual Filings. During the period of default, the Company will issue biweekly default status reports in the form of further news releases, which will also be filed on SEDAR. The Company confirms that there are no insolvency proceedings against it as of the date of this news release. The Company also confirms that there is no other material information concerning the affairs of the Company that has not been generally disclosed as of the date of this news release.

ABOUT CLC

Christina Lake Cannabis is a licensed producer of cannabis under the Cannabis Act. It has secured a standard cultivation license and corresponding processing amendment from Health Canada (March 2020 and August 2020, respectively) as well as a research and development license (early 2020). Christina Lake Cannabis' 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. Christina Lake Cannabis also owns a 99-acre plot of land adjoining its principal site. CLC focuses its production on creating high quality extracts and distillate for its B2B client base with proprietary strains specifically developed for outdoor cultivation to enhance extraction quality.

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

Jennifer Smith
Investor Relations and Media Inquiries

902-229-7265

Forward Looking Information and Risk Factors

This news release contains statements and information that may constitute "forward-looking information" within the meaning of applicable securities legislation, including statements identified by the use of words such as "will", "expects", "positions", "believe", "potential" and similar words, including negatives thereof, or other similar expressions concerning matters that are not historical facts.

Such forward-looking information is not representative of historical facts or information or current condition, but instead represent only the Company's beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of the Company's control. Generally, such forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or may contain statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "will continue", "will occur" or "will be achieved". The forward-looking information contained herein may include, but is not limited to, information concerning the estimated filing date of the Annual Filings, and whether the British Columbia Securities Commission will grant the Company's application for an MCTO.

By identifying such information and statements in this manner, the Company is alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such information and statements. Some of these risks include, but are not limited to, the risk that the Annual Filings are filed later than anticipated, the risk that the Company's application for an MCTO is not successful for any reason, in which case there is a risk that trading in the Company's securities may halted by the Canadian Securities Exchange and/or cease traded temporarily by the Canadian securities commissions after the Filing Deadline until such time as the Annual Filings are filed on SEDAR.

Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended.

In connection with the forward-looking information contained in this news release, the Company has made certain assumptions. Although the Company believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements. The forward-looking information contained in this news release are made as of the date of this news release, and the Company does not undertake to update any forward-looking information and/or forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws. All subsequent written and oral forward-looking information and statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by this notice.


FAQ

Why is Christina Lake Cannabis (CLCFF) delaying its 2024 annual financial statements?

The delay is due to extended audit requirements, primarily caused by increased testing needs for inventory and biological assets, higher production levels, and additional complexity from the Midway acquisition.

When will Christina Lake Cannabis (CLCFF) file its delayed 2024 annual financial statements?

The company expects to file its annual financial statements no later than July 14, 2025, approximately two weeks after the original deadline.

What is the impact of the MCTO on Christina Lake Cannabis (CLCFF) shareholders?

The Management Cease Trade Order (MCTO) only restricts the CEO and CFO from trading company securities. Other shareholders and investors can continue trading normally.

What caused the audit delay for Christina Lake Cannabis (CLCFF)?

The audit delay is due to limited staff resources, complex inventory costing related to increased production, new product lines from the Midway acquisition, and additional financings requiring thorough review.

Is Christina Lake Cannabis (CLCFF) facing insolvency or other undisclosed issues?

The company has explicitly confirmed there are no insolvency proceedings and no other material information that hasn't been generally disclosed as of the news release date.
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