CANADA — Christina Lake Cannabis Corp. has announced that it is beginning to produce ultra-high potency cannabis distillate oils from its the sun-grown cannabis cultivated during the Company’s inaugural growing season.

Christina Lake said that the production of the cannabis distillates would enable the Company to form supplier relationships with consumer-packaged goods manufacturers.

Distillate oils, which typically contain tetrahydrocannabinol (“THC”) concentrations in excess of 90%, are generally used to add THC to consumable products as opposed to being directly consumed by a legal-aged end user.

As an ingredient in a finished product, distillates can be likened to flour or granulated sugar in that they are not utilized as a standalone cannabis product, whereas products such as dried flower or winterized oil would commonly be used independently.

 “I anticipate many producers of CPG products will have an interest in distillates in 2021, and I look forward to exploring the many possible use cases for our distillate oils in the CPG industry,” Milan Stefancik, Director of Sales for the Company commented.

As a start, the company y stated that it will be producing commercial quantities of winterized cannabis oil, as well as full-spectrum winterized cannabis oil derived from crude oil which was extracted from biomass grown by the Company in 2020.

Winterized cannabis oils are often used in medicinal products, especially if the oils have specific terpene profiles that are well-suited to a particular purpose.

Winterized cannabis oils can be further distilled to attain a higher potency level, thereby creating a distillate which is a significantly more transparent liquid due to its purity.

Given the growing popularity of products under “Cannabis 2.0” that are made with cannabis oils, the Company anticipates that its ability to produce oils in commercial quantities could create opportunities to supply distillate to CPG manufacturers in Canada on a wholesale basis.

Target CPG segments include food and beverage, cosmetic/personal care products, and vaporizer cartridges.

Additionally, because CLC’s extraction machine is CO2-powered, cannabis oils made by the Company could qualify for GMP certification, thereby potentially allowing its distillates to be sold in the European Union.

Based on projected crop yields for the Company’s growing season in 2021 and the capacity of its Vitalis extraction machine, the Company predicts it can reliably produce commercial quantities of distillate oil that is of a consistent quality and suitable for CPG manufacturers to use in their products.

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