Zenabis Faucets Tilray for $30 Million Advance Towards Hashish to be Provided – New Hashish Ventures


Zenabis Arranges $30 Million Non-Dilutive Financing through Provide Settlement with Tilray®

VANCOUVER, July 2, 2019 /CNW/ – Zenabis International Inc. (TSX:ZENA) (“Zenabis” or the “Firm”) as we speak introduced that its wholly-owned subsidiary, Zenabis Ltd., has entered into an settlement with Excessive Park Holdings Ltd. (“Excessive Park”) (the “Provide Settlement”), a wholly-owned subsidiary of Tilray, Inc. (NASDAQ:TLRY) (“Tilray”), pursuant to which Excessive Park will advance CAD $30 million to Zenabis (the “pay as you go quantity”) in return for a provide of dried cannabis from Zenabis.

Underneath the phrases of the Provide Settlement, Zenabis will ship a month-to-month amount of dried cannabis to Excessive Park commencing in October 2019. Zenabis expects the pay as you go quantity to be retired inside a yr. Zenabis doesn’t count on supply commitments to Excessive Park to impression its skill to provide current prospects. The wholesale pricing underneath the Provide Settlement will range relying on the product kind and format Excessive Park elects to order.

Zenabis is well-positioned to provide high-quality cannabis to Excessive Park through this non-dilutive financing association that capitalizes on our quickly rising annual cultivation capability, which we count on to achieve 131,200 kg of dried cannabis earlier than deliveries to Excessive Park are scheduled to begin.

Andrew Grieve, Chief Govt Officer of Zenabis

This Provide Settlement demonstrates the boldness of high-quality counterparties in our skill to provide constant, premium cannabis product and we’re trying ahead to fulfilling our commitments to Excessive Park, in addition to to our provincial counterparties and the communities during which we function.

Mr. Grieve continued, “This association considerably reduces the requirement for potential additional attracts on our $60 million unsecured convertible debenture facility.”

Brownstone Advisors Inc. (“Brownstone”) acted as strategic advisors to Zenabis in reference to the Provide Settlement. Zenabis can pay a strategic advisory price to Brownstone, which price will embrace (topic to receipt of all required regulatory approvals) 319,148 frequent shares of Zenabis.

About Zenabis

Zenabis is a big Canadian licensed cannabis cultivator of medical and leisure cannabis, and a propagator and cultivator of floral and vegetable merchandise. Zenabis employs workers coast-to-coast, throughout services in Atholville, New Brunswick; Delta, Aldergrove, Pitt Meadows and Langley, British Columbia; and Stellarton, Nova Scotia. Along with gaining technologically superior information of plant propagation, the current addition of state-of-the-art greenhouses in Langley, Pitt Meadows and Aldergrove gives Zenabis with 3.5 million sq. ft of facility area that may, if totally transformed, be devoted to cannabis manufacturing.

If all facility area at Zenabis Atholville, Zenabis Stellarton, Zenabis Delta and Zenabis Langley is totally transformed and devoted to manufacturing, Zenabis will personal, and have entry to 660,000 sq. ft of top quality indoor cannabis manufacturing area, in addition to 2.1 million sq. ft of greenhouse cannabis manufacturing area at its Langley facility, with this manufacturing strategically positioned on Canada’s coasts. Zenabis expects these services to have an annual design capability of 131,200 kg of dried cannabis by the third quarter of 2019. These services, if totally constructed out and transformed for cannabis manufacturing, would have an annual design capability to yield roughly 478,800 kg of dried cannabis yearly, for each nationwide and worldwide market distribution. An extra 700,000 sq. ft of greenhouse area shall be used to proceed the present propagation enterprise and produce industrial hemp, and might be transformed to cannabis manufacturing at such a time that’s helpful to the strategic place of the Firm. The Zenabis model title is used within the cannabis medical market, whereas the Namaste and Blazery model names are used within the cannabis adult-use leisure market, and the True Büch model title is used for Zenabis’ kombucha merchandise.

Authentic press launch

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