Zenabis Announces the Establishment of an At-the-Market Equity Offering Program

Zenabis Announces the Establishment of an At-the-Market Equity Offering Program

 

Vancouver, British Columbia February 9, 2021 – Zenabis Global Inc. (TSX:ZENA) (“Zenabis” or the “Company”) today announced that it has established an at-the-market equity program (the “ATM Program”) that allows the Company to issue up to C$15,000,000 of common shares in the capital of the Company (the “Common Shares”) from treasury to the public from time to time, at the Company’s discretion. Any Common Shares sold through the ATM Program will be sold through the Toronto Stock Exchange (the “TSX”) or any other marketplace on which the Common Shares are listed, quoted or otherwise traded, at the prevailing market price at the time of sale.

Distributions of the Common Shares through the ATM Program will be made pursuant to the terms of an equity distribution agreement dated February 9, 2021 between the Company and Echelon Wealth Partners Inc. (the “Agent“).

The volume and timing of distributions under the ATM Program, if any, will be determined in the Company’s sole discretion. The ATM Program will be effective until the earlier of the issuance and sale of all of the Common Shares issuable pursuant to the ATM Program and May 10, 2021, unless terminated prior to such date by the Company or the Agent. As Common Shares sold in the ATM Program will be issued and sold at the prevailing market price at the time of the sale, prices may vary among purchasers during the period of the distribution. The Company expects to use the net proceeds from the ATM Program for general corporate purposes and working capital needs.

The offering under the ATM Program will be made pursuant to a prospectus supplement dated February 9, 2021 (the “Prospectus Supplement“) to the Company’s amended and restated final base shelf prospectus dated December 9, 2020 filed with the securities commissions in each of the provinces of Canada except Québec and the Company’s final base shelf prospectus dated December 9, 2020 filed with the Autorité des marchés financiers in Québec (the “Base Shelf Prospectus“). The Prospectus Supplement and the Base Shelf Prospectus are available on the SEDAR website maintained by the Canadian Securities Administrators at www.sedar.com.

Alternatively, the Agent will send copies of the Prospectus Supplement and the Base Shelf Prospectus, as applicable, upon request to Echelon Wealth Partners Inc., 1 Adelaide St. East, Suite 2100, Toronto, ON M5C 2V9, or by telephone at (647) 484-8285, or by email at ecm@echelonpartners.com.

No securities regulatory authority has either approved or disapproved of the contents of this press release. This press release is for information purposes only and does not constitute an offer to sell or the solicitation of an offer to buy the Common Shares, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Zenabis

Zenabis is a significant Canadian licensed cultivator of medical and recreational cannabis. Zenabis employs staff coast-to-coast, across facilities in Atholville, New Brunswick; Langley, British Columbia; and Stellarton, Nova Scotia. Zenabis currently has 111,200 kg of licensed cannabis cultivation space across three licensed facilitiesin Canada, together with its cannabis import, export and processing joint venture, ZenPharm, operating from Birżebbuġa, Malta.

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 statements regarding the future offering of the Common Shares pursuant to the ATM Program and the expected use of proceeds to be raised, if any. 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 as supplemented by a prospectus supplement dated September 18, 2020 and the annual information form dated March 30, 2020, copies of which are 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. Forward-looking statements or information involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements or information contained in this news release. 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
Email: media@zenabis.com
Phone: 1-855-936-2247

Investor Relations
E-mail: invest@zenabis.com
Phone: 1-855-936-2247

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