Licensed Producer Zenabis signs LOI with Paracanna
Licensed producer Zenabis Ltd. – which is merging with Bevo Agro to become Zenabis Global – signs LOI with Paracanna Foods Inc., a Canadian company that manufactures dosing kits for use in the medical and impending adult-use cannabis markets.
VANCOUVER, Oct. 26, 2018 /CNW/ – Bevo Agro Inc. (TSXV: BVO) (“Bevo”) and Sun Pharm Investments Ltd. “Sun Pharm” are pleased to announce that Zenabis has signed an LOI with Paracanna Foods Inc. (“Paracanna”) to provide high quality cannabis-free dosing kits to the medical and adult-use markets. A definitive agreement outlining Zenabis’ role in distributing Paracanna’s kits and refills is expected to be entered into shortly.
Paracanna is a Vancouver Island, BC, company that creates cannabis-free dosing kits that are ideal for consumers looking to consume cannabis oil (and concentrates once regulated for sale) in a gummy. Paracanna’s kits allow consumers to safely create their own unique cannabis consumption experience, in their own kitchen, in under ten minutes. Current products include ready-to-make gummy kits in four distinct flavours. Paracanna will be releasing other products shortly.
“Zenabis is pleased to partner with Paracanna as we continue to diversify our product offerings as part of our go-to-market strategy,” said Rick Brar, CEO of Zenabis. “These dosing kits represent a significant growth opportunity for Zenabis and our consumer brands, and we look forward to bringing our expertise in consumer packaged goods to this partnership with Paracanna.
“We are happy to work with Zenabis on the distribution of our products. Their reach, expertise, and position in Canadian and global markets make them a great fit for us,” said Paracanna CEO, Andrea Butterworth. “Together, with Zenabis, we will provide Canadians with the opportunity to create safe experiences with legal cannabis oil products.”
With a track record providing Canadians with safe, high quality medical cannabis, and now adult use cannabis products, Zenabis is actively engaged in research, education and raising awareness around the safe consumption of cannabis, including cannabis oil and future post-extraction classes of cannabis.
As previously announced on announced October 4, 2018, Bevo and Sun Pharm have entered into an arrangement agreement with respect to a reverse take-over of Bevo (the “Bevo-Sun Pharm Transaction”), and announced that the resulting issuer will change its name to Zenabis Global Inc. (“Zenabis”). Through Sun Pharm’s subsidiary licensed producer Zenabis Ltd. (“Zenabis”), Zenabis Global Inc. will have nearly 3.5 million square feet of available production space.1 Completion of the Bevo-Sun Pharm Transaction remains subject to receipt of shareholder and all required regulatory approvals.
Zenabis Key Milestones
- On October 4, 2018 Bevo and Sun Pharm announced the RTO and the intent of Bevo to change their name to Zenabis Global Inc. upon completion of the amalgamation
- On October 5, 2018, Zenabis released a presentation introducing the combined business
- On October 25, 2018, Bevo resumed trading under the ticker “BVO”
- As of October 26, 2018, Zenabis has secured purchase orders from government and third party retailers/distributors in New Brunswick, Nova Scotia, British Columbia, and the Yukon Territory
About Bevo Agro
Bevo Agro is North America’s leading supplier of propagated agricultural plants, operating approximately 53 acres of state-of-the-art greenhouse facilities on 98 acres of land in Langley, BC and 20 acres of land in Pitt Meadows, BC. The company has entered into a binding agreement to acquire 10.4 acres of greenhouse space on 50 acres of land in Aldergrove, British Columbia (the “Greenhouse Acquisition”). The Company’s main products have been the propagation of vegetable plants such as tomatoes, peppers, cucumbers, and other plants such as bedding plants, flowers and grasses. The Company markets its products to established greenhouse growers, nurseries and retail outlets throughout North America. Zenabis intends to convert the Bevo Langley greenhouse (2.1 million square feet) by March 2020. Zenabis will build and/or acquire additional propagation greenhouse space over the coming year in order to maintain all of Bevo’s current food/floral propagation capacity while the current Langley facility is being converted.
About Sun Pharm
Sun Pharm has significant experience in agriculture, technology, pharmaceutical sales, consumer packaged goods, international distribution and brand marketing, with cannabis and cannabis-related purchase orders from the provinces of New Brunswick, British Columbia, Nova Scotia, and Yukon Territory. Sun Pharm is currently a privately-held cannabis company which has one of the largest, federally licensed indoor medical cultivation footprints in Canada, operating two licensed production facilities in British Columbia and New Brunswick, with a third expected to be coming online shortly in Nova Scotia. These facilities encompass 660,000 square feet of indoor pharmaceutical grade cannabis production space, strategically positioned on Canada’s coasts, facilitating national distribution and access to international markets. Sun Pharm is currently working towards globally recognized EU GMP certifications. Sun Pharm has a management team with decades of experience in the industry, with expertise in retail consumer packaged goods, global pharmaceutical sales and manufacturing, quality assurance, and commercialized cultivation. The growing team has more than two decades of experience in organic cultivation and distribution of herbs and nutraceutical products throughout the Americas, North Africa, and the Middle East. Sun Pharm’s sales team has more than two decades in product development, commercialization, and retail and pharmaceutical sales including international distribution.
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 Bevo, 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. 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, including the completion of the Transaction. 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 Bevo’s control. These risks, uncertainties and assumptions include, but are not limited to, those described Bevo’s Management’s Discussion & Analysis for the fiscal year ended June 30, 2018, 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. Bevo does not intend, nor does Bevo 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.
1 After completion of planned expansions
For more information, visit: https://www.zenabis.com.