Christina Lake Cannabis taps director for $1.07M revolving credit line
What's the deal? Christina Lake CannabisDealroom has a profile for this one. Try Dealroom → has secured a revolving credit facility of up to US$1.1M from an entity controlled by director Salvatore Milia. The two-year facility carries 14% annual interest and is repayable on demand with 90 days' notice.
The fine print: The line is secured by a second mortgage on the company's property at Christina Lake, British Columbia, and a general security agreement. It is not convertible into other securities, and the company can repay it at any time without penalty.
Why now? The new facility replaces a prior US$1.1M line from an entity controlled by another director, Mervin Boychuk, which has now been repaid in full. The move keeps working capital available as the company weighs its options.
The bigger picture: Christina Lake Cannabis, a licensed outdoor cannabis producer serving B2B clients, is fielding takeover interest. In August 2026, it signed a non-binding letter of intent valuing its equity at US$11M; a September offer from Medical Saints proposed buying substantially all assets for US$13.2M. A special committee is still evaluating both.
What could go wrong? As a director, Milia is a related party, making the deal a related-party transaction under Canadian securities rules. The company relied on exemptions from formal valuation and minority-shareholder approval, citing its unlisted status and the facility's size. The loan's callable terms also leave the company exposed to short-notice repayment demands.
The signal: For a small-cap producer navigating buyout talks and a history of private placements and related-party debt, the facility reads less as a sign of improved financing access than as a costly bridge to keep the lights on while a sale is decided.
Read more: centralcharts.com
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