Group 1 - Christina Lake Cannabis Corp. has amended the terms of its convertible debentures totaling $710,000, with a new maturity date set for September 7, 2026 [1][2] - The interest rate on the debentures will remain unchanged, and repayments will now occur quarterly starting December 7, 2025, ensuring full repayment by the new maturity date [2] - Holders who did not enter into the amending agreements are expected to be repaid according to the original maturity dates of their debentures [2] Group 2 - Christina Lake Cannabis is a licensed cannabis producer under the Cannabis Act, with a standard cultivation license and a research and development license from Health Canada [3] - The company's facilities include a 32-acre property with over 950,000 square feet of outdoor grow space, and a 342-acre property with approximately 100 acres of licensed outdoor grow space [3] - Christina Lake Cannabis focuses on producing high-quality outdoor flower, extracts, and distillate for its B2B client base [3]

Financial Data and Key Metrics Changes - The company reported record-breaking second quarter results with adjusted EBITDA of $23 million, up 100% from the first quarter and approximately 70% year-over-year [6][12] - Consolidated net sales increased by 34.8% compared to 2024, although a net loss of $21.6 million was reported due to planned investments in the Conway facility [12][13] - Consolidated adjusted EBITDA was $15.3 million, which included $7.6 million of scale-up operating costs related to the Conway facility [13][15] Business Line Data and Key Metrics Changes - In the Beverage Solutions segment, net sales increased by 27.9% year-over-year, with adjusted EBITDA growing 48.5% to $19.7 million [13][14] - The SS and T segment saw net sales grow by 60% year-over-year, with adjusted EBITDA rising to $3.3 million from $400,000 in the prior year quarter [14] Market Data and Key Metrics Changes - The company experienced a 13.7% volume increase in core roasting ground coffee and a 21.1% increase in single-serve cups, contributing to overall sales growth [13][14] - Commodity coffee price increases were passed on to customers, contributing to top-line growth [14] Company Strategy and Development Direction - The company aims to become the premier integrated strategic supplier to leading coffee, tea, and energy beverage brands globally, focusing on innovation and sustainable sourcing [10][11] - The company is leveraging its relationship with Palantir for data intelligence and risk mitigation, which has significantly contributed to profitability [24][26] Management's Comments on Operating Environment and Future Outlook - Management acknowledged potential headwinds from elevated tariffs, persistent inflation, and softening consumer confidence, but noted strong demand across all customer segments [19][20] - The company remains on track to meet its guidance for the second half of the year, with no changes expected to forward guidance [20] Other Important Information - Capital expenditures for the quarter totaled approximately $20 million, primarily related to the Conway facility [15] - The company has approximately $72 million in unrestricted cash and liquidity under its revolving credit facility [15] Q&A Session Summary Question: Can you expand on the comment regarding results being different in mix? - Management noted that the mix was better in some profitability categories, with slower volume throughput at Conway being offset by improvements in core business areas [22][23] Question: Can you provide more background on the relationship with Palantir? - The company utilizes Palantir's data analytics to enhance risk management and profitability, with expectations for further improvements in manufacturing [25][26] Question: What is the status of the second RTD can line? - The second RTD can line is expected to be installed in October and in production by early November [28][29] Question: What is the visibility for production over the next six to nine months? - Management indicated good visibility on current customer orders, with potential for additional orders as new lines come online [34][35] Question: How is the market share in single serve coffee evolving? - The company is expanding its capacity and has secured new business, but faces competition from larger players like Keurig [47][48] Question: How does the company manage sourcing in light of tariffs? - The company can sometimes substitute sourcing from different countries, but it depends on contract terms and customer profiles [50][52]