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Zenabis Closes Previously Announced Public Offering and Exercise of Over-allotment Option

Zenabis Closes Previously Announced Public Offering and Exercise of Over-allotment Option

VANCOUVER, BC, April 17, 2019 – Zenabis Global Inc. (TSXV:ZENA) (“Zenabis” or the “Company”) announces today that it has closed its previously announced fully-marketed, “best efforts” offering (the “Offering”) of 12,777,777 units of the Company (each, a “Unit”), which includes the exercise of the agents’ over-allotment option in full, at a price of $2.25 per Unit, for aggregate gross proceeds to the Company of approximately $28.75 million, before deducting commissions and expenses of the Offering.

Andrew Grieve, Chief Executive Officer of Zenabis, stated, “We are grateful to both existing and new shareholders for their support as the completion of this offering provides us with the financial flexibility needed to execute on the expansion of our total cultivation capacity to over 131,000 kilograms of cannabis production by early Q3 2019.”

Each Unit consists of one common share of the Company (each, a “Common Share”) and one common share purchase warrant (each, a “Warrant”) to purchase a Common Share at a price of $2.75 for a period of 36 months from today’s date. The Warrants have been approved for listing on the TSX Venture Exchange (“TSXV”), under the symbol “ZENA.WT”, and trading of the Warrants on the TSXV is expected to commence on April 22, 2019.

The Company intends to use the net proceeds of the Offering to fund the cost of conversion of its facilities to cannabis production and for working capital. The Units were offered pursuant to a prospectus supplement dated April 12, 2019 (the “Supplement”) to the Company’s short form base shelf prospectus dated April 9, 2019 (the “Shelf Prospectus”).

The Offering was made through a syndicate of agents co-led by Eight Capital and GMP Securities L.P. (who also acted as joint book-runners), and including Canaccord Genuity Corp., Haywood Securities Inc. and Laurentian Bank Securities Inc. (collectively, the “Agents”).

This news release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any province, state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such province, state or jurisdiction.

Note: Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

About Zenabis

Zenabis is a significant licensed cannabis cultivator of medical and recreational cannabis, and employs staff coast-to-coast, across facilities in Atholville, New Brunswick; Delta and Langley, B.C.; 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 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 is fully built out 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 space at its Langley facility (an additional 700,000 square feet of greenhouse space will be used to continue the existing propagation business, to be converted at such a time that is beneficial to the strategic position of the company), strategically positioned on Canada’s coasts. These facilities, if fully converted for cannabis production, would have the design capacity to yield approximately 479,300 kg of dried cannabis annually, for both national and international market distribution. The Zenabis brand name is used in the medical market, while Namaste is used in the adult-use recreational market.

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: pricing and completion of the Offering, the use of the proceeds thereof, and the design capacity, conversion, expansion and optimization of our facilities. 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.


For more information, visit: https://www.zenabis.com.

Media Relations

Investor Relations
Shobana Thaya
Zenabis Global Inc.

Andrew Grieve
Chief Executive Officer