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Zenabis Submits Site Evidence Package to Health Canada for Langley Facility

Zenabis Submits Site Evidence Package to Health Canada for Langley Facility


Vancouver, British Columbia – July 9, 2019 – Zenabis Global Inc. (TSX:ZENA) (“Zenabis” or the “Company”) today announced that it has submitted its site evidence package (the “Site Evidence Package”) to Health Canada for the first phase of Site A at Zenabis Langley.

Construction of Zenabis Langley’s first 50,000 square foot flower room is substantially complete, as is 49,000 square feet of support space, which includes drying and trimming rooms, processing rooms, a packaging room, offices, change rooms, and storage space. Construction of the remaining five flower rooms and additional support space (including vegetation room, cloning and mothering space), totaling 380,000 square feet, is on track for substantial completion in August 2019.

The Site Evidence Package submission is expected to be the final step required on the part of Zenabis to obtain a license to cultivate cannabis at Zenabis Langley. Zenabis expects that the facility will have a licensed annual cultivation capacity of 9,900 kg of dried cannabis once the cultivation license is granted (the first flower room is expected to have ~50% canopy coverage due to inclusion of table infrastructure that is not included in the other five flower rooms), at which time Zenabis plans to submit a license amendment for the facility’s remaining five flower rooms representing 86,200 kg of cultivation capacity.

“Zenabis Langley’s design capacity represents more than 70% of the total annual capacity of 131,200 kg of dried cannabis that we plan to reach in the third quarter,” said Andrew Grieve, Chief Executive Officer of Zenabis. “As the expected final step in Health Canada’s cultivation licensing process, submission of the site evidence package is an important milestone. Upon completion of licensing in Zenabis Langley, together with our licensing achievements in Stellarton and Atholville this year, Zenabis expects to be a significant producer of cannabis in Canada. With existing distribution into eight provinces, one territory, a number of medical channels, and meaningful wholesale agreements and opportunities, Zenabis anticipates increased deliveries to such counterparties as harvests commence on its remaining capacity.”


About Zenabis

Zenabis is a significant Canadian 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, if fully converted, 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 an annual design capacity of 131,200 kg of dried cannabis by the third quarter of 2019. These facilities, if fully built out and converted for cannabis production, would have an annual design capacity to yield approximately 478,800 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 Büch 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 anticipated granting of a cultivation license for Zenabis Langley by Health Canada, our plans to submit further license application materials for additional cultivation capacity, the projected kilogram yield of licensed facility space and facility space in the process of, or scheduled for, construction and/or licensing, 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 and the expectation of increased deliveries to commercial counterparties upon commencement of harvests on expected additional capacity. 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 dated April 9, 2019, 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.

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