Zenabis Announces Increase in Licensed Capacity by More Than 30% and Provides Date for Next Operational Update
VANCOUVER, May 13, 2019 /CNW/ - Zenabis Global Inc. (TSXV:ZENA) ("Zenabis" or the "Company") is pleased to announce the licensing of Phase 2A at its Zenabis Atholville facility (an additional 3,200kg of cannabis cultivation capacity) and disclose the date of its next operational update: May 21, 2019 (for the month of April 2019).
Phase 2A Licensing Amendment
- Amendment received May 10, 2019 added 3,200 kg of licensed cultivation capacity at its indoor Zenabis Atholville facility;
- This amendment increases total Zenabis licensed cultivation capacity by more than 30%, from 10,200 kg to 13,400 kg, and Zenabis Atholville licensed cultivation capacity from 9,300 kg to 12,500 kg; and
- This amendment increases licensed operating space from the existing 136,800 square feet at Zenabis Atholville to 174,900 square feet.
We are pleased to announce this most recent license amendment, which demonstrates that we are maintaining our timelines from a construction and licensing standpoint
stated Andrew Grieve, Chief Executive Officer of Zenabis.
Since the creation of Zenabis in January of 2019, we have more than doubled our licensed cultivation capacity from approximately 6,000 kg to 13,400 kg, and we have an additional 9,800 kg of cultivation capacity at Zenabis Atholville submitted and awaiting licensing approval. We are currently converting facility space for cultivation and production that will add 108,100 kg of cultivation capacity once licensed. Construction and conversion completion dates for this cultivation capacity are scheduled between June and the third quarter of 2019. As always, we would like to thank our regulatory affairs and production teams for their rapid progress. As a result of their efforts, we are currently achieving our target construction and licensing timelines for both our Zenabis Atholville and Zenabis Langley facilities
Date of Next Operational Update
Zenabis will provide its next operational update on May 21, 2019 (for the month of April 2019). This update will include the actual harvest weight for Zenabis Atholville for April 2019, the monthly Performance Ratio for Zenabis Atholville for 2019, and an update on construction and licensing progress for all relevant facilities (Zenabis Atholville, Zenabis Langley, Zenabis Pitt Meadows, Zenabis Aldergrove, and Zenabis Delta).
Zenabis is a significant licensed cannabis cultivator of medical and recreational cannabis, and a propagator and cultivator of floral and vegetable products. Zenabis employs staff coast-to-coast, across facilities in Atholville, New Brunswick; Delta, Aldergrove, Pitt Meadows, and Langley, British Columbia.; and Stellarton, Nova Scotia. In addition to gaining technologically advanced knowledge of plant propagation, the recent addition of state-of-the-art greenhouses in Langley, Pitt Meadows, and Aldergrove provides Zenabis with 3.5 million square feet of facility space that can, upon full conversion, be dedicated to cannabis production.
If all facility space at Zenabis Atholville, Zenabis Stellarton, Zenabis Delta, and Zenabis Langley is fully converted and dedicated to production, Zenabis will own, and have access to, 660,000 square feet of high quality indoor cannabis production space, as well as 2.1 million square feet of greenhouse cannabis production space at its Langley facility, with this production strategically positioned on Canada's coasts. Zenabis expects these facilities to have production capacity of 131,300 kg of dried cannabis annually by the third quarter of 2019. These facilities, if fully built out and converted for cannabis production, would have a design capacity to yield approximately 479,300 kg of dried cannabis annually, for both national and international market distribution. An additional 700,000 square feet of greenhouse space will be used to continue the existing propagation business and produce industrial hemp, and can be converted to cannabis production at such a time that is beneficial to the strategic position of the company. The Zenabis brand name is used in the cannabis medical market, while the Namaste and Blazery brand names are used in the cannabis adult-use recreational market, and the True Buch brand name is used for Zenabis' kombucha products.
Forward Looking Information
This news release contains statements that may constitute "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information may include, among others, statements regarding the future plans, costs, objectives or performance of Zenabis, or the assumptions underlying any of the foregoing. In this news release, words such as "may", "would", "could", "will", "likely", "believe", "expect", "anticipate", "intend", "plan", "estimate" and similar words and the negative form thereof are used to identify forward-looking statements. In this news release, forward-looking statements relate, among other things, to: the projected kilogram yield of recently licensed facility space and facility space under, or scheduled for, construction, the expected timing and completion of current and planned conversion, expansion and optimization of our facilities, the licensing of our facilities and projected timing thereof; the adequacy of our financial resources to achieve the conversion and expansion of our facilities; and the expected timing and content of future operational updates. Forward-looking statements should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether, or the times at or by which, such future performance will be achieved. No assurance can be given that any events anticipated by the forward-looking information will transpire or occur. Forward-looking information is based on information available at the time and/or management's good-faith belief with respect to future events and are subject to known or unknown risks, uncertainties, assumptions and other unpredictable factors, many of which are beyond Zenabis' control. These risks, uncertainties and assumptions include, but are not limited to, those described in the Shelf Prospectus, a copy of which is available on SEDAR at www.sedar.com and could cause actual events or results to differ materially from those projected in any forward-looking statements. Furthermore, any forward-looking information with respect to available space for cannabis production is subject to the qualification that management of Zenabis may decide not to use all available space for cannabis production, and the assumptions that any construction or conversion would not be cost prohibitive, required permits will be obtained and the labour, materials and equipment necessary to complete such construction or conversion will be available. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release. Zenabis does not intend, nor undertake any obligation, to update or revise any forward-looking information contained in this news release to reflect subsequent information, events or circumstances or otherwise, except if required by applicable laws.
SOURCE Zenabis Global Inc.